It's Time the Data Center Gets the "Moneyball" Treatment

Copyright © 2012 TeamQuest Corporation. All Rights Reserved.

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It’s Time Your Data Center Gets The Moneyball

TreatmentContinuously operate at the intersection of Business Performance and IT

Efficiency

David Wagner – TeamQuest Director Market Development


• What is“Moneyball” anyway?

• What does this have to do with IT?

• Money-balling IT: Continuous IT Service Optimization

– Challenges and risks of inaction– Desired state and results– Approach: Aligning Business and IT Analytics– Examples/Results

Agenda


• Sports History and Tradition– Player Statistics: 100+ years: “we’ve always done it this way”– Better Individual Statistics Higher Salaries– Poorer Teams couldn’t buy “best” resources Always Lose

• Rogue Team and Idea– Oakland A’s (small market, small $$ team)– Measure/Analyze what REALLY matters, invest accordingly– Result: Won in 2002 and 2003 with 3rd Lowest Player Salaries (out of

30!)

• Results:– Ever more teams adopting approach– Other sports (Football, Hockey, etc.)

• Documented:– A book: “The Art of Winning an Unfair Game”, Michael Lewis, 2003– A movie: “Moneyball”, starring Brad Pitt, 2011

Moneyball Background


• Traditional metrics and Analysis versus “Sabermetrics”

– More Runs (Goals) versus More game-winning Runs (Goals)

– Least Errors (Fouls) versus Least game-losing Errors (Fouls)

– More Hits (Assists) versus Run (Goal) scoring Hits (Assists)

– “Measure and Analyze what Matters!”

• Democratization of Information– More access by everyone to all information– Victory comes to those who look at EVERYTHING (first)!

• Ruthless Drive for Efficiency– Size of investment no guarantee, you MUST also be

more efficient!– If you don’t, your competition will; spend more AND

lose!

Moneyball Overarching Themes


• Traditional metrics and Analysis versus “Sabermetrics”

– Resource Utilization versus Work Efficiency and Cost– Availability versus Work Accomplished– Technology Metrics versus Application, Service and

Workloads– …– “Measure and Analyze what Matters!”

• Democratization of Information– Software Defined Data Centers: Big Data, Cloud,

Virtualization, Dynamism, etc…– Spanning ALL silos: Technology, Business, Financial,

etc…

• Ruthless Drive for Efficiency– If you don’t do it, you’ll be “done” by others who do!

Moneyball For IT!


• Merge Business and IT Processes and Tools - Alignment

– IT Technology data into Business Analytics– Business data into IT Analytics

• Ruthless Drive for Efficiency– Use Analytics– Use Automation– Adopt ever-increasing proactivity

• Continuous Optimization = Alignment+ Analytics+ Automation+ Proactivity

Moneyball For IT! How?

Copyright © 2012 TeamQuest Corporation. All Rights Reserved.© 2013 Forrester Research, Inc. Reproduction Prohibited

7

Source: Forrsights Business Decision-Makers Survey, Q4 2012; Base: 1,170 EMEA business decision-makers

Improve the use of data analytics to improve business decision making

19% 40%

The business values analytics…


• Inclusion of legacy or non-virtualized hardware resources?

• Interoperability of multiple vendors’ converged infrastructure systems?

• Management remains a mystery– Lack of real time data– Lack of global optimization strategies

Forrester content

Challenges and Obstacles


SDDC• Asset Management• Smart Devices• Virtualized Storage• Virtualized Servers• Virtualized NW• VDI• Etc….

Customer• Call Center Operations• POS Optimization• Demand Response• Campaign Management• Credit & Collections• Billing• Etc….

Busi

ness

Ser

vice

s/Ap

plic

ation

s

Cloud, Virtualization and SDDC -> Changing Demands on

Enterprise IT


Busi

ness

Ser

vice

s/Ap

plic

ation

s

SDDC• Asset Management• Smart Devices• Virtualized Storage• Virtualized Servers• Virtualized NW• VDI• Etc….

Customer• Call Center Operations• POS Optimization• Demand Response• Campaign Management• Credit & Collections• Billing• Etc….

Increasing Planning and Optimization Challenges


• SDDC management will place a premium on new management models

– Real time data collections– Embedded Analytics– Ability to span multiple data source domains

intelligently

• Analytics will have different goals – efficiency, cost, root cause analysis

• Goals include workload-centric optimization, global cost and energy efficiency, global availability … very tough challenges for traditional management vendors

Source: Forrester Research, September 2013

Management is WAY more than monitoring


• Existing tools don’t accept it– ETL into acceptable format(s) is a lot of work, cost– Manual efforts cannot scale– Don’t adapt to dynamic, virtual everything realities

• IT has no expertise in business data– It isn’t easily presented or understood– We’ve never had the time to deal with it

• What can we really DO with it?– Where do we start?– What is the value?

“IT doesn’t analyze business data because…”


• Lack of understanding of relationship of dynamic technology to services

– Over and under provisioning – High Costs– Service risks– Market risks

• Too many disparate tools and processes– Expensive and in silos– Error prone impacting service delivery

• Vendor dependence and “lock in”– High costs– Reduced agility

Negative consequences of the current state


• Continuously financially optimized IT environment

– Always know where and when performance problems will affect the bottom line

– Identify cost and performance inefficiencies in support of business processes and eliminate them

• Continuously optimized customer experience

– Understand when, where and why customer experiences fail

– Resolve, predict and prevent customer dissatisfaction issues

Desired state: Continuous Optimization


“What is the health of the

infrastructure?”

“How efficiently are we using the infrastructure? What does it

cost?”

“How many of those do we have? Need?

When?”

“Changes compared to the

last reporting period?”

“What’s the capacity

forecast? What should/will it

cost?”

“What were the exceptions? Do

we Care?”

“What’s the risk

assessment?”

Desired State: Answer the Questions!


• Significantly Reduce initial CapEx, and ongoing OpEx– Make, and keep making, more money!

• Optimize resources for systems of customer engagement

• Deploy and refresh new applications faster– E.g Retailers need to capture their share of mobile

commerce as it grows from $6 to $31b (2016)

• Respond faster to business spikes

• Prevent business impacting outages and slowdowns

Result: Continuous IT Optimization


Underlying IT

Infrastructure

Outage Manageme

nt

Customer Operations

Distribution Automation

Asset Manageme

nt

17

Services

Applications

Server/OS

Big Data Collection

Business Intelligence

Aligned Business and IT Intelligence

Enterprise IT Optimization

• Correlate business & IT performance

• Insight into how business process changes impact IT

• Understand and optimize IT costs by business unit/process and technology

• Insight into business performance across technology stack

Network

Storage

Methodology: Aligned Business and IT

Analytics


• Federates existing data into purpose-designed optimization process

– Technology data (e.g. server, network, storage, etc.)

– Service data (catalog, metrics, tickets, etc.)– Financial data– Business data (Analytics, KPIs, plans, TXNs,

etc.)

• Automates analytics across all data sources

– Flexible and adaptive to dynamic SDDC environments

– Predictive analytics aligning to applications/services

• Single-pane-of-glass IT Optimization– Raw (commodity) data -> actionable

information for IT

Federated IT Analytics


• Analysis to optimize decision making

• Integration to align to the business

• Automation to drive efficiency and repeatability

Automated, Aligned IT Analytics


• Continuous Optimization

– Pre-purchase validation– Re-purposing– Consolidation

• Fully Automated, low cost

• Integrates with Risk and Service Management

• Changed new VMwareClusters from every 6 weeks to:

– None for 18+ months…– Consolidated 1000’s of

VM’s (Saving $M)

Federated Analysis: Example Automated Financial

Optimization


Get Aligned: Service Risks

Copyright © 2012 TeamQuest Corporation. All Rights Reserved. 22

• Proactively measure what matters! Continuous Prediction

– Complete Components of Response Time (latency)– Which services run out of resources, when, and why

• Automated• Business-aligned

Get Proactive: Predictive Analytics


• Proactive Power Optimization

– Actual versus DC Limits– Power by Application/Service– Project Savings via

optimization efforts

• Data Sources– Server/Virtual Server

performance– Power Consumption from

DCIM power management– Service Catalog and CMDB– Asset Database

IT Power Capacity Optimization


• Service Level RCA– Measured versus SLA– Span Servers, Virtual

Servers, Network, Storage, etc

• Data Sources– TeamQuest CMIS (VMware)– TeamQuest CMIS for

Storage– Application RT tools– Service Catalog and CMDB

Automated Root Cause Analytics


• Automatically Balance– Current and Future Costs– Performance– Capacity

• Data Sources– Server/Virtual Server

performance– Asset Costing (CapEx/OpEx)– Service Catalog and CMDB– Power Costing Database

Financial Optimization Reports


“I know the performance

and costs of my infrastructure!”

“I know how efficient my IT environment is and can be and what it will cost”

“I know what we have, what we need, and when we need

it!”

“I know what has changed and why from

the last period!”

“I have a Capacity and

Financial Plan!”

“I understand the exceptions

and their importance!”

“I know what my risks to

performance are and will

be!”

TeamQuest: Insight Automated. Optimization

Achieved


• Fortune 200 Financial Services Provider– Saved $7Million in first year– Saved $15 Million in second year, significant power cost

reduction– Eliminated new server spend for 24 months, all new projects

continued

• Top 5 US Financial Services Provider– 70% of ALL operational analysis automatically delivered in

exception-oriented, human readable fashion – 95% reduced staff time per analysis 4x more staff

productivity– Avoided purchase of 100’s of physical servers,

simultaneously virtualizing thousands of servers in 2013 alone, saving $Millions

• Leading Banks, Telecoms, Retailers, and many more…– Bank of America, Barclays, gkv Informatik, HSBC, Safeway, T-

Systems, Telefonica, Vodafone, Verizon, Visa, Wells Fargo, …

Join the Winning Team


• Read (or watch) Moneyball and map to YOUR situation

• Inventory IT processes and ALL your tools/metrics– Data collection?– Data storage?– Capacity Analysis/Reporting?

• Inventory your business KPIs, factor your BI analytic initiatives

• Identify “low hanging fruit”– By Service?– By BU?– By Platform?– By Technology/silo?

• Get started bringing it together, don’t wait

Summary and Recommended Steps


• Uses modern, appropriate metrics– Utilizations don’t cut it anymore– Sabermetrics for IT!

• Democratizes ALL your information– Leverage both Federation and Centralization– Fully align Business, Service and IT Performance

• Ruthlessly (and continuously) drives for efficiency

– Performance/throughput (business)– Capacity– Cost

A Moneyballed Data Center…


• Continuous IT Optimization– Peak IT Performance– Ideal Resource Capacity– Optimized Resource Costs

• Automated IT Analytics– Predictive– Federated

• Aligned IT and Business Management– Performance– Capacity– Financial

IT Optimized... Future Assured

Date post:	21-Oct-2014
Category:	Technology
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