www.6fusion.com

Changing the Economics of IT

6fusion – Corporate Overview

• Global Headquarters: Raleigh, NC• Company Background:

– 2003 - VMware practice within MSP

– 2008 – IP spun off & incorporated

• Investors: Intersouth Partners & Grotech Venture– $14M raised to date

• FTE’s today: +30

“6fusion started out as a metering,

billing and chargeback expert but has

since rounded out its story into a much

broader play, connecting datacenter

compute providers with channel

partners.”

“This ability to compare and contrast the true cost and

value of different computing solutions is a compelling

piece of utility computing’s promise. Assigning a single

metric (such as 6Fusion’s WAC) to available computing

resources and different tasks means that accurately

managing resources and considering the cost of

competing solutions is possible.”

Tectonic Shifts in Progress

Common Measurement

• Comprehensive, normalized data enables us to do far more valuable things

• Workload classification• IT DNA mapping• Workload matching• Exchange traded compute

Utility Computing

• IaaS is growing rapidly, but true utility computing is still emerging

• Everyone is a service provider including Enterprise IT

The Economics of IT

• This revolution is as much a financial shift as it is a technology shift

• The application of financial principals and methodologies to IT

• Redefining everything we currently think we know about the business of technology delivery

Big Data

• Driving actionable insights from massive amounts of data – both within individual organizations and across industries and markets

Market Landscape

Spend Analytics

Public Cloud Vendors

Private Cloud Vendors

Cloud BrokersInfrastructure Orchestration

$147 billion$9 billion

Global Data Center SpendGlobal IaaS Spend

It More Than Just Cloud, It’s About IT Infrastructure

Source: Gartner IT Spending Forecast, 4Q12 Update; Gartner Forecast Overview: Public Cloud Services, Worldwide, 2011-2016, 4Q12 Update

“IT infrastructure services will not reach it’s true potential until it can be consumed like a true utility and traded on a commodity exchange”

IT infrastructure is the largest sunk cost in most enterprises today and cloud adoption has not reached hyper-adoption rates

• Solves vendor lock in for buyers• Delivers global demand for suppliers• Reduces buyer risk in acquiring IT resources

through hedging• Eliminates vendor silos with open and

transparent participation• Allows suppliers to compete on clear value

to price ratio

6fusion standardizes the economic measurement of IT infrastructure, enabling a global marketplace

for buyers and sellers

The Workload Allocation Cube (WAC) is the industry’s first open standard for measuring infrastructure resource utilization.

UC6 is a SaaS platform that provides open federation of public and private IaaS sellers via a single pane of glass for buyers, brokers and channel intermediaries.

STANDARDIZED METERING OPEN PLATFORM

Connecting IT Infrastructure Buyers and Sellers

InfrastructureMarketplace

IT Operations

SUPPLIER 6

SUPPLIER 5

SUPPLIER 4

SUPPLIER 3

SUPPLIER 2

SUPPLIER 1

BILLING

REPORTING

PROVISIONING

TAGGING

METERING

INTEGRATION6fusion’s SaaS platform connects

buyers and sellers of IT infrastructure

https://console.6fusion.com

METERING

Metering is Foundational

“Managing price certainty separately from physical supplier selection is standard best practice in most other commodities markets, and we are starting to see initiatives in the cloud industry that are finally following this best practice. Independent cloud metering technologies, such as 6fusion … , as they [6fusion] facilitate cloud comparison by using a common unit of measurement.”

CPU in Mhz

MEM in MB

DISK I/O in KBps

LAN I/O in Kbps

WAN I/O in Kbps

STORAGE in GB

WACThe Economic Measure of IT

kWAC

WAC Adoption at an Inflection Point

2011-07

2011-08

2011-09

2011-10

2011-11

2011-12

2012-01

2012-02

2012-03

2012-04

2012-05

2012-06

2012-07

2012-08

2012-09

2012-10

2012-11

2012-12

Total WAC Consumption 2011-2012

Network effects accelerate value:

Increasing WAC adoption increases the value of using the WAC, driving further adoption in a virtuous circle

mCloud

The Business Value of the WAC

Enterprise IT Infrastructure Providers

SPEND OPTIMIZATION REVENUE OPTIMIZATION

UC6 Platform• Universal metering across

heterogeneous environments• Accurate baseline and clear

comparison• Data segmentation by platform,

tags, business units, workloads, and more

• Account tiering, billing and chargeback ready

• Analyze costs along multiple vectors – platforms, accounts, tags, workloads, etc.

• Identify infrastructure utilization waste

• Evaluate internal metering and benchmark against market data

• Match workload profiles with the right private and public infrastructure

• Project optimal baseline pricing with suppliers

• Access global supply for IaaS• Transform IT into private IaaS• Abstract multiple hypervisors

and cloud platforms• Self-service provisioning for

business units and sub-accounts

Outcomes

Act

Data

Meter

PlanEvaluate

6fusion Value

• Standard unit of measure across all environments• Deep insights from IT resource consumption in one view

– Are you operating efficiently?– How do you compare internally and externally?– What’s the right mix of infrastructure for your profile?

• The ability to act on those insights to generate business value

Enterprise IT Infrastructure Providers

• Spend optimization• Operational efficiency• Showback / Chargeback• Optimize infrastructure

profile

• Revenue optimization• Operational efficiency• Competitive advantage• Risk mitigation

Delivering Outcomes

• Are you operating efficiently?

• How do you compare?

• How do you get better?

• What does an open market mean for my business?

6fusion delivers the insights and actions

to achieve your desired outcomes

What We Find

6fusion customers are achieving the following outcomes: ① Drive Cost Allocation② Mitigate Infrastructure Waste③ Benchmark Your Infrastructure④ Tap the Open Market⑤ Create New Revenue Streams

① Drive Cost Allocation

• Driven by input costs• Costs based on

consumption• Provides end users the

visibility and levers to manage costs

• Designed to drive the right infrastructure usage and efficiency

1. Identify infrastructures to cost allocate

2. Meter target infrastructure 3. Complete Capacity Analysis

for each4. Design billing groups and

assign profiles5. Begin showback /

chargeback

Usage transparency and cost allocation of shared resources withshowback / chargeback model

Simple Rollout ProcessOverview

② Mitigate Infrastructure Waste

• We define waste as resources that are deployed but not used – i.e. underutilization

• Most organizations pay more per unit of compute than they realize and can find significant opportunities for savings

1. Identify infrastructures to evaluate

2. Deploy metering3. Complete Capacity Analysis 4. Execute Wastage Reports

by node and aggregate5. Develop optimization plan6. Execute optimization plan

Understanding infrastructure utilization can significantly impact infrastructure footprint and efficiency

Simple Rollout ProcessOverview

③ Benchmark Your Infrastructure

• Single pane of glass view into how your cloud is performing against your internal objectives and the open marketplace

• Influence future infrastructure CAPEX buying patterns while minimizing over/under pricing errors

1. Identify infrastructures to evaluate

2. Deploy metering3. Complete Capacity Analysis 4. Subscribe to benchmark

reporting5. Identify resource

bottlenecks and cost efficiency

Understanding resource bottlenecks in the context of cost efficiency and competitiveness across a public market

Simple Rollout ProcessOverview

④ Tap the Open Market

• 6fusion’s open marketplace exposes resources to financial intermediaries that buy on volume and sell to a distributed audience

• Makes an impact on the top line for cloud service providers

• Delivers below spot-pricing rates for buyers

1. Sellers: Enable UC6 Connector provisioning capability

2. Sellers: Populate UC6 Console with pricing and data about your cloud service

3. Buyers: Enable purchasing capability with 6fusion

4. Buyers/Sellers: Define contract terms for financial brokers to buy or sell resources

Selling/buying on an open market exposes your cloud infrastructure to potential sellers/buyers you would never reach

otherwise.

Simple Rollout ProcessOverview

⑤ Create New Revenue Streams

• 6fusion draws a >$20B captive channel of global buy-side enablement and selling

• Dramatically increases the new business pipeline potential

• Lowers the cost of business acquisition

1. Enable UC6 Connector provisioning capability

2. Populate UC6 Console with pricing and data about your cloud service

3. Make your infrastructure available publically or semi-publically

4. Contract with distributors and integrators to market your services

Enable third party channels and business ecosystems to harvest new business

Simple Rollout ProcessOverview

Enterprise Customer Case Studies

• Challenge• Couldn’t get clear comparison of

efficiencies across environments – public and private – for IT investment decisions

• Solution• 6fusion UC6 Connector and

marketplace

• Results• Accurately managing resources

and comparing competing solutions

University of North

Carolina

The Weather Channel

• Challenge• Lack of clear IT project budgeting • Inability to identify actual cost

and profitability of business initiatives

• Solution• 6fusion Chargeback and

optimization reporting

• Results• IT group has moved from being a

cost center to an internal service provider

Cloud Service Provider Case Studies

• Challenge• Lack of transparency in costing and

usage – internally and customer-facing

• Accessing mid-market demand

• Solution• Connected to 6fusion’s Global UC6

Metered Network

• Results• Net new mid-market pipeline and

revenue • Utility-metered billing and reporting

Broadcloud

• Challenge• Build a profitable cloud services

business around expertise in large scale storage, virtualization and BDR solutions

• Solution• Connected to 6fusion’s Global UC6

Metered Network

• Results• Immediate access to SaaS cloud

platform• Scalability and broader geographic

reach

e-ternity

Channel Partner Case Studies

• Challenge• Provide an international customer

with remote office and BDR services

• Solution• Developed a utility-billed BDR and

hosting solution leveraging the 6fusion UC6 platform

• Results• Utility-based usage platform• Immediate access to federated DC’s• Self-service provisioning &

management

Soto Networks

Inc.

• Challenge• Recognized opportunity in the cloud,

but didn’t want to build and operate cloud platform and infrastructure

• Solution• 6fusion suite of iNode Network,

Cloud Resource Meter and UC6 platform

• Results• Instant access to highly flexible

cloud platform and infrastructure• Avoided vendor lock-in

Alphanumeric Systems

Inc

Next Steps

①Define success criteria and develop your action plan

②Deploy metering!③Engage 6fusion for data evaluation and

action planning

④Let’s get started!

www.6fusion.com

Thank You

UC6 Platform OverviewUC6 Platform

• Data management• Data storage• Reporting • Security• API connections

UC6 CONTROLLER

Secure Internet Connection

Infrastructure Node

UC6 CONNECTOR

CLOUD OF THE DAY

UC6 ADAPTER UC6 ADAPTER

UC6 ADAPTER UC6 ADAPTER

Infrastructure ReportingPrice & Cost Report

• Shows data and trending on price, target cost, and actual cost per WAC

• Improves infrastructure allocation strategy by matching true (actual) costs with other alternatives

• Available in 6fusion platform, downloadable via PDF, CSV

Capacity & Consumption Report• Shows data and trending target infrastructure

capacity and actual consumption• Helps identify infrastructure consumption

patterns and avoid resource constraints• Available in 6fusion platform, downloadable

via PDF, CSV

Cost Allocation Reporting

Chargeback Report• Resource consumption and cost

aggregated by billing groups• Aligns demand for infrastructure

with actual cost to drive better business decisions

• Drill down to detailed data on multiple levels of devices, groups, and budget holders

• Exportable by PDF or CSV

CPU in MHz

WAN I/O in Kb/sec

LAN I/O in Kb/sec

MEM in MB

Storage in GB

DISK I/O in KB/sec

Total WACs Per Month

Total CPU in Mhz

Total MEM in MB

Total STORAGE in GB

Total DISK I/O in KBps

Total LAN I/O in Kbps

Total WAN I/O in Kbps

What is the 6fusion WAC?

Machine Resource Consumption Readings

6fusion Data Integration

Infrastructure Consumption

Data

Accounting

Billing

Reporting/Business

Intelligence/ Dashboards

ERP/Planning Tools

Business Applications

Leverage infrastructure consumption data in business applications to improve business processes such as:

- Internal billing- Chargeback/Showback- Business planning

MuleSoft CloudHubTM

Connectors

Integration with Billing System for Internal Chargeback

Data Pull from 6Fusion

Infrastructure Consumption

Account Validation in CloudHubTM

Invoice Validation in CloudHubTM

Create Invoice in ACME Netsuite

System

Detailed flow chart available in appendixScenario: ACME Company would like to implement chargeback for IT infrastructure usage among it’s business units.

Business Problem:ACME lacks granular usage data to accurately segment usage by business unit.

Solution:6fusion IT resource metering and reporting, combined with MuleSoft CloudHubTM Netsuite Connector

Billing System: Netsuite

How It WorksUse Case

UC6 Connector Secure Design Architecture

• The UC6 Connector collects raw data readings of CPU, memory, storage, and network i/o via the API of the underlying hypervisor or cloud management platform

• Those readings are sent to 6fusion’s UC6 Control Center for computation and display in 6fusion’s web based console