Upload
misa-ontario-cloud-sig
View
897
Download
0
Embed Size (px)
DESCRIPTION
Citation preview
MISA Cloud Computing SIGEvaluating ROI & TCO of Cloud Computing InitiativesPrepared by: Bill Baldasti | [email protected] | +1-416-524-8310April 11th, 2012 | Waterloo, ON
Agenda Types of Cloud Environments
Optimal Workload Patterns for the Cloud
ROI/TCO Measurements
It’s not just the Financials
Cloud vs. On-Prem Sample + Discussion
• Software as a Service (SaaS)
• Most Mature
• Examples: Salesforce.com, Dynamics CRM Online, SharePoint Online
• Platform as a Service (PaaS)
• Service & Management Layer of the Cloud Platform
• Example: Azure
• Infrastructure as a Service (IaaS)
• Foundational Layer of Cloud Computing, includes raw storage, compute, backup, disaster recovery, databases, security
• Example: Amazon Web Services
Types of Cloud Computing
Capex (or Capital Expenditure) is a business expense incurred to create future benefit i.e. acquisition of assets that will have a useful life beyond the tax year. e.g. expenditure on assets like building, hardware, or software.
Operational Expenditures (Opex) deal with the required day-to-day functioning of the business, like wages, utilities. Opex is the money the business spends in order to turn inventory into throughput.
Aside:Accounting Tutorial
Capex Opex
Accounting
Treatment
Cannot be fully deducted in the
period when they were
incurred. Tangible assets are
depreciated and intangible
assets are amortized over time.
Operating expenses are fully
deducted in the accounting
period during which they were
incurred.
• Cost savings to be realized by avoiding under provisioning and over provisioning
Capacity-Utilization Curve
Workload Patterns for Cloud Computing:Optimizing Costs to embrace these Patterns
Measuring ROI across Categories
Source: The OpenGroup – Building Return on Investment from Cloud Computing
Cloud ROI Cost Savings Models
Source: The OpenGroup – Building Return on Investment from Cloud Computing
1. Resource Availability– Free up critical resources for strategic work
2. Cloud can require less Professional Services
– As cloud matures, it could lower costs required for SI, hardware and/or infrastructure services
• Impact on SDLC
– Budgeting for performance tuning can impact financials in addition to QoS
Additional Value adds / ROI
• The Obvious Stuff
– Hardware
– Networking Infrastructure & Bandwidth
– Software Licensing Costs
• Others to consider
– Professional Services fees: Setup, Support, Integration
– Power Costs
– Hardware Warranty Costs
– Financing Costs
– Helpdesk Costs
– Backups/AV/Patching/Updates
– Time to Market Costs
– etc.
Costs to Consider
• Physical Architecture:
– 3 node Farm: 2 front-end servers (HA), 1 Database
Sample:
Public Portal
Web Front End: Dell PowerEdge R410, 2x Intel CPU,
4GB Ram, 4x RAID 300GB
$5,485 CAD ea.
$10,970
Database Server: Dell PowerEdge R510, 2x CPU, 16GB
RAM, RAID,
$5,756 CAD ea.
$5,756
Other Costs:
• Server maintenance
• Network bandwidth
• Security Infrastructure Requirements
• Network Infrastructure Requirements