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How do organizations ensure that they maintain control over their costs when adopting Cloud? Ultimately, the key to controlling cost for cloud infrastructure is to ensure that the organization has visibility over resources that are being provisioned — a task that is easier said than done when developers can provision resources in a single API Call. This talk was presented at the 2014 OpenStack Summit in Atlanta.
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CLOUD INFRASTRUCTURE COSTSUnderstanding and Controlling
About me
• Thomas Orozco
• Developer Advocate at Scalr
• Cloud Management company
Image Credit: Samuel Q. Green
Why talk about cost?
• Our mission is to help enterprises drive successful cloud adoption
• Cost-effectiveness is an integral dimension of that success
Image Credit: Stephen JB. Thomas
About you
• DevOps?
• IT?
• Finance?
• Other?
Image Credit: Wilson Joseph
What this talk is about
• Understanding the implications of cloud adoption from a cost perspective
• Understanding what works, what doesn’t
Cloud: what changes?
• Developer-centric provisioning process
• IT no longer owns the provisioning process
• No way back
Image Credit: Tommy Lau
WHAT IS THE PROBLEM?Cost Tracking for Cloud Resources
Two key problems
• Visibility Problem: Understanding costs
• Saving Problem: Reducing costs
Image Credit: Marcio Duarte
3 Key Audiences
• DevOps teams
• Enterprise IT
• Finance
Image Credit: Stephen Copinger
THE VISIBILITY PROBLEMWhy is it hard to account for usage of cloud resources
DevOps on Visibility
• Tasked with sticking to a budget
• “How much is this going to cost me? How do I use my budget responsibly?”
Image Credit: Joe Harrison
Enterprise IT on Visibility
• Tasked with minimizing waste and optimizing usage
• “How do I tell who owns this resource?”
Image Credit: Matthew Hawdon
Finance on Visibility
• Tasked with breaking down the cloud bill and allocating it across business units
• “How do I tell which business unit is responsible for these costs?”
Image Credit: Roy Verhaag
Overall the same problem
• Understanding cloud cost requires visibility on:– The use case– The resources– Their associated costs
• Neither DevOps, IT, nor Finance have that visibility
Existing Solution
• Use metadata (tags) to track resources and link them to their use case and cost
Image Credit: Baabullah Hasan
Tags = extra workload
• Adding tags is more work
• Processing tags is more work
Image Credit: Wayne Middleton
Tags = inherently imperfect
• People forget
• Mandatory tagging is easily circumvented
Image Credit: Maurizio Carpani
THE SAVING PROBLEMWhy is it hard to reduce cloud costs?
Finance on Saving
• Tasked with planning budgets according to cash flows
• With visibility, finance can define budgets for organizational units
Enterprise IT on Saving
• Tasked with enforcing that business units stay on budget
• With visibility, IT can track effective usage against budgets, and enforce those
DevOps on Saving
• Ultimately, DevOps engineers control the usage of cloud resources
• With visibility on their budget usage, DevOps engineers can identify areas for improvement
Overall, the same solution
• Solving the visibility problem enables saving
THANK YOU!