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