even

ts.te

chta

rget

.com

even

ts.te

chta

rget

.com

Mod

ern

Infra

stru

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e S

emin

ar

|

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t

Sess

ion

2

Bes

t Bet

s fo

r Clo

ud:

Und

erst

andi

ng C

loud

Cos

ts

Bes

t Bet

s fo

r Clo

ud S

umm

ary

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

Iden

tifyi

ng C

loud

Opp

ortu

nitie

s

Iden

tifyi

ng w

orkl

oads

and

app

licat

ions

that

are

cl

oud-

read

y

Cha

ract

eris

tics

of s

ucce

ssfu

l clo

ud d

eplo

ymen

ts

K

now

the

key

met

rics

of y

our a

pplic

atio

n

Stra

tegi

es fo

r bui

ldin

g yo

ur c

loud

por

tfolio

C

loud

man

agem

ent,

scal

ing

and

auto

mat

ion

M

igra

tion

stra

tegi

es fo

r mov

ing

wor

kloa

ds to

the

clou

d

Und

erst

andi

ng C

loud

Cos

ts

Type

s of

clo

ud s

yste

ms

and

the

serv

ices

/ben

efits

they

re

ally

offe

r

Und

erst

andi

ng th

e hi

dden

cos

ts o

f lon

g-te

rm c

loud

de

ploy

men

ts

How

to b

uild

a tr

ue c

loud

cos

t com

paris

on m

odel

C

loud

RO

I and

cos

t ben

efit

anal

ysis

: “ Is

the

juic

e w

orth

th

e sq

ueez

e?”

A

re y

ou re

ady

for t

he im

pact

of c

loud

ado

ptio

n w

ill h

ave

on y

our b

usin

ess

E

valu

atin

g an

d ch

oosi

ng th

e rig

ht c

loud

pro

vide

r pa

rtner

Type

s of

Clo

ud S

yste

ms

and

Pric

ing

Mod

els

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

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t

App

licat

ion

Clo

uds

(Saa

S)

1.Pe

r use

r bill

ing

2.Pr

icin

g ba

sed

on

feat

ures

3.

Impl

emen

tatio

n pa

rtne

rs4.

Stor

age

capa

city

Plat

form

Clo

uds

(Paa

S)

1.Pr

iced

per

app

/use

r2.

Pric

ed p

er G

B o

f m

emor

y co

nsum

ed

per h

our

Infr

astr

uctu

re

Clo

uds

(IaaS

)

1.Pr

iced

per

GB

of C

P &

m

emor

y al

loca

ted/

hr2.

Pric

ed p

er G

B o

f sto

rage

us

ed p

er h

our

3.Pr

iced

per

DB

tr

ansa

ctio

n4.

Pric

ed p

er G

B tr

ansf

er5.

Pric

ed p

er IO

P

Valu

e Pr

opos

ition

of C

loud

Sys

tem

s

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

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arge

t

Saa

S•

Low

erle

arni

ng c

urve

+ u

nive

rsal

ava

ilabi

lity

= hi

gh a

dopt

ion

•N

o so

ftwar

e lic

ense

s +

no h

ardw

are

infra

stru

ctur

e=

low

er in

itial

cos

ts•

Low

er IT

sta

ff ov

erhe

ad a

s fe

wer

reso

urce

s ar

e re

quire

d to

sup

port

appl

icat

ions

•M

ulti-

tena

ncy

prov

ides

pai

nles

s up

grad

es a

nd lo

wer

cus

tom

er a

cqui

sitio

n co

sts

Paa

S•

Inte

grat

edde

velo

pmen

t env

ironm

ent p

rovi

des

rapi

d de

velo

pmen

t and

re

duce

d tim

e to

mar

ket

•S

cala

bilit

y bu

ilt in

that

redu

ces

incr

emen

tal u

npla

nned

CA

PE

X•

Red

uced

sup

port

cost

s as

ther

e is

no

hard

war

e in

frast

ruct

ure

to

buy/

build

/mai

ntai

n

IaaS

•N

o ha

rdw

are

infra

stru

ctur

e to

buy/

build

/mai

ntai

n re

duce

s su

ppor

t cos

ts•

Util

itypr

icin

g fo

r cap

acity

that

is c

onsu

med

•

Flex

ibilit

y to

gro

w a

nd s

hrin

k as

bus

ines

s re

quire

s•

OP

EX

vs.

CA

PE

X w

ithca

paci

ty o

n de

man

d

The

Dow

nsid

e of

the

Clo

ud V

alue

Pro

posi

tion

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

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arge

t

Saa

S•

Less

flex

ibili

ty to

cus

tom

ize

softw

are

to y

our b

usin

ess

•N

oco

ntro

l ove

r dat

a an

d sy

stem

ava

ilabi

lity

•C

osts

are

not f

ixed

and

OP

EX

mod

el w

ill en

d up

cos

ting

mor

e th

an

tradi

tiona

l sof

twar

e de

ploy

men

ts o

ver a

long

per

iod

of ti

me

•S

ecur

ityris

ks a

s ac

cess

and

dev

ices

are

not

con

trol

led

by th

e bu

sine

ss

Paa

S•

Vend

or a

nd te

chno

logy

lock

in a

s th

e ap

plic

atio

n ca

n on

ly ru

n on

the

prov

ider

s pl

atfo

rm•

No

cont

rol o

veru

nder

lyin

g sy

stem

s, s

ecur

ity o

r env

ironm

ent

•In

tegr

atio

ns w

ith c

urre

nt in

vest

men

ts in

LO

B a

pplic

atio

ns/s

yste

ms

IaaS

•D

epen

ds h

eavi

ly o

n th

e ex

pert

ise

and

capa

bilit

y of

Clo

ud p

rovi

der

•La

ckof

con

trol

and

gov

erna

nce

can

end

up p

laci

ng s

ensi

tive

data

on

an

inse

cure

pla

tform

•In

vest

men

t in

addi

tiona

l sec

urity

, mon

itorin

g an

d au

ditin

g to

ens

ure

apps

an

d da

ta a

re tr

uly

segm

ente

d•

Clo

ud in

stan

ces

ofte

n ar

e un

supp

orte

d, m

anag

ed c

loud

inst

ance

s ar

e of

ten

mor

e ex

pens

ive

than

hos

ted

virtu

al m

achi

nes

whe

n ru

n fo

r a fu

ll m

onth

Und

erst

andi

ng th

e H

idde

n C

osts

of L

ong-

Term

C

loud

Dep

loym

ents

: Bui

ldin

g th

e So

lutio

n

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

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arge

t

•Tr

aditi

onal

(ove

r pro

visi

onin

g) s

yste

m d

esig

n eq

uate

s to

hig

her c

osts

in

IaaS

clou

d en

viro

nmen

ts.

•A

n ap

plic

atio

n’s

requ

irem

ents

sta

tes

8GB

of R

AM

for t

he s

erve

r. A

ctua

l usa

ge

of R

AM

is o

n av

erag

e, 4

GB

. Th

e cl

oud

Ser

ver s

houl

d be

des

igne

d w

ith 4

GB

of

RA

M•

Use

clo

ud s

ervi

ces

vs. i

nsta

nces

(virt

ual s

erve

rs) w

here

ver p

ossi

ble.

•

Des

igni

ng th

e cl

oud

syst

em to

leve

rage

and

ela

stic

LB

ser

vice

, ela

stic

DB

se

rvic

e an

d 2

scal

able

web

inst

ance

s w

ill d

rast

ical

ly re

duce

cos

t vs.

the

tradi

tiona

l per

inst

ance

dep

loym

ent

•C

loud

pla

tform

s ar

e so

ftwar

e ce

ntric

not

har

dwar

e.

•M

ovin

g vi

rtual

ser

ver t

o cl

oud

virtu

al in

stan

ces

does

not

nec

essa

rily

save

m

oney

•IT

mus

t con

sum

e so

ftwar

e ( S

DK

/AP

I) to

max

imiz

e th

e va

lue

and

cost

sav

ings

th

at c

loud

has

to o

ffer

Rig

htsi

zing

You

r Ins

tanc

es C

an S

ave

You

20%

or

Mor

e on

You

r Clo

ud B

ill

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

Opp

ortu

nity

Opp

ortu

nity

Opp

ortu

nity

Und

erst

andi

ng th

e H

idde

n C

osts

of L

ong-

Term

C

loud

Dep

loym

ents

: Mai

ntai

ning

the

Solu

tion

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

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arge

t

Impl

emen

ting

a cl

oud

auto

mat

ion

cont

rol

pane

l tha

t pla

ces

gove

rnan

ce a

nd c

ontro

l on

the

open

clo

ud p

latfo

rm w

ill p

rote

ct

budg

et a

nd e

nsur

e IT

ope

ratin

g m

odel

is

follo

wed

.

•C

loud

spr

awl r

esul

ts in

stic

ker s

hock

•Th

e ea

se o

f clo

ud p

rovi

sion

ing

and

lack

of

cont

rol c

an q

uick

ly re

sult

in o

vers

pend

ing

on c

loud

ser

vice

s•

Unu

sed/

unde

ruse

d se

rver

s re

mai

n on

line

•W

ith m

ultip

le e

ntry

poi

nts

and

clou

d se

lf-se

rvic

e po

rtals

, man

y cl

oud

serv

ers

beco

me

orph

aned

afte

r tes

ting

and/

or th

e pr

ojec

t is

com

plet

e. U

nuse

d se

rver

s bu

rn

clou

d bu

dget

•G

over

nanc

e an

d bu

sine

ss c

ontr

ols

•C

loud

allo

ws

for r

apid

ser

ver p

rovi

sion

ing.

R

apid

pro

visi

onin

g ca

n re

sult

in la

ck o

f co

mpr

ehen

sive

sec

urity

pol

icie

s, p

atch

ed

softw

are

and

over

all i

ncre

ased

atta

ck

surfa

ce•

Clo

ud c

ontr

ol p

anel

and

aut

omat

ion

vend

ors

•S

cale

xtre

me

•R

ight

Sca

le•

Ens

tratu

s (D

ell)

•M

anag

e IQ

(Red

hat)

•Zi

mor

y•

Ser

vice

mes

h•

Sca

lr

Aut

omat

ion

Engi

neA

utom

atio

nEn

gine

Mon

itorin

g En

gine

Mon

itorin

g En

gine

Acc

ess

Con

trol

Sys

tem

Acc

ess

Con

trol

Sys

tem

Ser

ver

Con

nect

ion

Man

agem

ent

Ser

ver

Con

nect

ion

Man

agem

ent

Clo

udM

anag

emen

tC

loud

Man

agem

ent

Wor

kflo

w &

O

rche

stra

tion

Wor

kflo

w &

O

rche

stra

tion

Pat

ch

Man

agem

ent

Pat

ch

Man

agem

ent

Sys

tem

&

App

Mon

itorin

g

Sys

tem

&

App

Mon

itorin

g

Clo

ud

Bud

gets

&

Cos

t Con

trol

Clo

ud

Bud

gets

&

Cos

t Con

trol

Clo

ud

Con

nect

ion

Man

agem

ent

Clo

ud

Con

nect

ion

Man

agem

ent

Clo

ud A

utom

atio

n C

ontr

ol P

anel

Clo

ud A

utom

atio

n C

ontr

ol P

anel

How

to B

uild

a T

rue

Clo

ud C

ost C

ompa

rison

M

odel

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

1. D

eriv

e m

onth

ly c

osts

•

Take

the

tota

l cos

t of a

ll da

tace

nter

, ser

vers

, ne

twor

king

and

sof

twar

e an

d di

vide

by

the

depr

ecia

tion

lifet

ime.

Ty

pica

lly b

etw

een

36

and

60 m

onth

s.

2. C

alcu

late

Stor

age

cost

•

Take

the

tota

l cos

t of

each

tier

of s

tora

ge a

nd

deriv

e a

cost

/GB

per

m

onth

. •

Take

the

tota

l am

ount

of

stor

age

for e

ach

tier a

nd

calc

ulat

e to

tal c

ost/

IOP

s.

Driv

e Co

stCa

pacity

Driv

e Co

unt

Total 

Capa

city

Raid Cost

Total C

ost

Avail 

Capa

city

Cost/A

vail 

GB

LifeSpan

Cost/G

B/Mon

th

Tier 1

$1,200.00 

400

250

100000

50%$300,000.00 

50000

$6.00 

24$0.25

Tier 2

$400.00 

600

500

300000

33%$200,000.00 

99000

$2.02 

36$0.06

Tier3

$250.00 

4000

200

800000

33%

$50,000.00

 26

4000

$0.19 

36$0.01

Driv

e Co

stIOP 

Capa

city

Driv

e Co

unt

Total 

Capa

city

Raid Cost

Total C

ost

Avail 

Capa

city

Cost/A

vail 

IOP

LifeSpan

Cost/G

IOP/Mo

nth

Tier 1

$1,200.00 

20000

250

5000000

50%$300,000.00 

2500000

$0.12 

24$0.01

Tier 2

$400.00 

180

500

90000

33%$200,000.00 

29700

$6.73 

36$0.19

Tier 3

$250.00 

90200

18000

33%

$50,000.00

 59

40$8

.42 

36$0.23

OS Co

stHW Cost

Server 

Cost

SVR 

Coun

tNTW

K Co

stNetwork 

Cost/Server

DC Mon

thly 

Cost

DC 

Costs/Se

rver

Tota Server 

Cost

Server 

Life

Svr

Cost/M

ont

h

Server 

Type

 1$3,000.00 $12,000.00

 $22,000.00 

250

$33,333 

$133.33 

9375

37.5

$22,170.83

 48

$461.89 

Server 

Type

 2$2,000.00 

$6,000.00 $15,000.00

 300

$33,333 

$111.11 

11250

37.5

$15,148.61

 48

$315.60 

Server 

Type

 3$1,500.00 

$3,000.00 

$8,500.00 

500

$33,333 

$66.67

 18750

37.5

$8,604.17 

48$179.25 

How

to B

uild

a T

rue

Clo

ud C

ost C

ompa

rison

M

odel

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

Cap

ture

util

izat

ion

met

rics

•A

ssig

n cl

oud

inst

ance

s th

at b

est m

atch

act

ual

utili

zatio

n.

Con

solid

ate

•A

pp s

erve

r ins

tanc

e be

low

20%

RA

M

utili

zatio

n co

nsol

idat

e to

80

% u

tiliz

atio

n

Der

ive

Clo

ud C

ost

•A

lign

cons

olid

ated

in

stan

ces

to C

loud

In

stan

ces

base

d on

m

emor

y ut

iliza

tion

•M

ultip

ly p

er h

our c

osts

X

# ho

urs

requ

ired

to ru

n (m

ax 7

20)

Instan

ce 

Size

Total M

onthly Cost w

/ au

tomation

Instan

ce  Cou

ntClou

d Instan

ce 

cost

m1.large

$313

.53 

125

$39,19

1.55

 m1.xlarge

$512

.78 

270

$138

,450

.34 

m1.xlarge

$512

.78 

450

$230

,750

.57 

$408

,392

.46 

Instan

ce 

Size

Total M

onthly Cost w

/ au

tomation

Server Cou

ntStorage GB

Storage Co

stsTo

tal Server 

Cost

Curren

tm1.large

$461

.89 

250

2000

$500

.00 

$961

.89 

$240

,473

.09 

m1.xlarge

$315

.60 

300

1500

$84.18

 $3

99.77 

$119

,931

.34 

m1.xlarge

$179

.25 

500

1000

$5.26 

$184

.51 

$92,25

7.21

 $4

52,661

.64 

Server Cou

ntCo

nsolidated

Server Type 1

250

125

Server Type 2

300

270

Server Type 3

500

450

Clo

ud R

OI a

nd C

ost B

enef

it A

naly

sis:

“Is

the

Juic

e W

orth

the

Sque

eze?

”

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

In th

is e

xam

ple,

th

e cl

oud

stra

tegy

in

clud

ed re

duct

ion

of s

erve

r ins

tanc

e co

unt,

right

sizi

ng

and

auto

scal

ing .

E

xplo

iting

clo

ud

feat

ures

sav

ed

$10k

/mon

th w

hen

com

pare

d to

tra

ditio

nal

host

ing.

Cos

t Sav

ings

are

th

eore

tical

unl

ess

ther

e is

go

vern

ance

in

plac

e to

con

trol

spra

wl,

man

age

auto

scal

ing

and

repo

rt ag

ains

t a

budg

et.

Cur

rent

spe

nd &

fu

ture

hos

ting

spen

d lik

ely

to o

verla

p fo

r a

perio

d of

tim

e,

resu

lting

in d

oubl

e sp

end

Web

link

envi

ronm

ent

Cur

rent

: ~$9

,000

99.9

99%

-R

acks

pace

Hos

ting:

$11

,638

99.9

9% -

Peer

1 H

ostin

g: $

8,85

3

99.9

% -

Rac

kspa

ce C

loud

: $1,

796

Are

You

Rea

dy fo

r the

Impa

ct T

hat C

loud

A

dopt

ion

Will

Hav

e on

You

r Bus

ines

s?

Mod

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k Yo

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uest

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?

Mod

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Infra

stru

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emin

ar

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© T

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arge

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Con

tact

me:

Rob

ert G

reen

Rgr

een@

enfin

itum

.com

210-

365-

0289

ww

w.e

nfin

itum

.com

Mod

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Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t

Mod

ern

Infra

stru

ctur

e S

emin

ar

|

© T

echT

arge

t