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The new dimensions of cloud IT infrastructure resource planning, optimization and cost ‐ Karen Huges
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About speaker

Karen Hughes
Principal Software Consultant Specialist Capacity Optimization for on-premise and Public Cloud at BMC Software

Experienced Principal Software Consultant with a demonstrated history of working in the information technology and services industry. Skilled in Systems Management, IT Strategy, Professional Services, Data Center, Cloud, and Software Industry. Strong information technology professional with over 25 years’ experience in the Software industry and technical sales with strong value-based selling skills as well as consistent track record of leadership and closing deals. Tremendous presenter, multi-tasker, and able to solve complex business and technical challenges by using creative problem solving, analytical and decision-making skills, and the ability to acquire new knowledge rapidly.

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About the talk

Capacity managers have been helping organizations plan and optimize the use of on-premises infrastructure resources for years. Cloud is adding a new dimension and new challenges to IT infrastructure resource planning, optimization and cost.

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First of all, thank all of you for attending the session. Hopefully you'll be smiling. It will be somewhat interactive. I will ask the number of questions to make sure that what I'm saying is also on par with some what's happening with your organization's so please don't be shy cuz clearly are not and I hope that you'll find some of this information informative. It is pretty much based on my experiences with customers as they move to the cloud and some of the challenges that they have had and some of the issues and concerns they've had two or three main

topics that we are going to go through for this is lovely 40-some on next minutes. Why should organizations such as you move to the cloud, how do I get there? What public cloud provider should I move to and finally what challenges do I have trying to get to where I want to be so I have Isometrics I have some studies. I have some customer experiences, but I want to share with all you for the for the next 47 minutes. Yeah, baby. Yeah, Karen come on people. We're going to get that momentum flower. So first things first who here works for an organization that is

considering moving to the cloud. Who is Knox? It's either. Yes. So yes. I know right? That's a little better now. I got to complete participation. So there are a number of reasons why customers or companies are considering moving to the cloud but analysts are saying that roughly 90% of companies are well, we actually a little bit more than 90% participation saying that they they definitely are so this metric is still valid at least from from what the analysts are sent. So

why are you guys moving to the cloud? anyone Yes agility great answer anyone else anyone else? Data center space all valid reasons why companies are moving and it's facts the top three are cost agility or speed and the scale number of companies out there that are fall into one or more of these categories. So it depending on your business you have different reasons why you need to get to the club. I will also offer that sometimes it's just political but for the most part what I'm

seeing companies are trying to close down data centers, or at least the Datacenter footprint cuz it really is starting to cost a lot of money to keep up all of these resources in the on Prime environments and a lot of them already or feel. I can't tell you how many customers I deal with that have data centers that are completely full so they can't even bring a new servers and so their business is growing so much. Stephanie more resources and the only way to do that is to try and become a little bit more agile and to go into the public lot but there's other challenges without referral

table for a second one company actually a gas company that we probably all leverage putting gas in our cars and less were completely hybrid these days but they were concerned about security they're very conservative and they wanted to get sensors on a lot of their systems. They wanted their pumps on reservoirs on refineries and they started getting all of this data and they wanted a process all of this deed up but they didn't have enough resources compute power to do the analytics and they didn't have enough storage to actually keep all of that day.

So they move to the cloud because they need to be able to get the horsepower and the storage in 4 large amounts of data and analytics in the public library. So what are the analysts say why people most moved to the public loud as although the servers that were buying for on-prem are getting less and less expensive. The reality is it's not just about the server self and who here actually has servers that are completely maximized from a resource perspective. Right even today utilizations are so low that you're not even maximizing your investment. So why are we spending all

this money on on Prime resources? We're not maximizing the resources we spend and we're not getting you know where we're we're wasting all of our money and stock the analysts say that the minute you buy storage in the minute you buy Hardware. Assertive it is wasted from a computer perspective and 40% is wasted from a storage perspective to think about that for a second. If you buy a million dollars worth of storage, you can take $400,000 of it and throw it right away who wants to do that? Grab it. You can give me the

$400,000 but that's an astronomical number cuz that's the companies that we're dealing with are growing their trying to buy more and more and when companies have billion dollar storage cost for the storage. They need that's just doesn't make sense. Right? So the reality is everybody's trying to figure out other ways to be able to leverage compute and resources that are not on front. Okay, let's take an example of a bank on the East Coast for you guys. I coverall North America and I cover all technology vertical so I have a nice cross-section

different types of companies cuz like I said, everybody's companies difference, right but some of the things are the same to this company in the east coast. They they do a lot of tea processing didn't have enough workload are they I'm sorry. They didn't have enough resources to handle their Peak processing as they were growing. So they would burst into the clap because for them economically a Converse in the cloud lovers of resources, and then once they're done they come back to just completely on-prem to the model works perfectly because you're not overspending on those resources for

on-prem, but they're still getting all the processing that they need done and the annex done in a short. Of time. So that's a crass example of how they're able to reduce or keep cost low from there on Prime perspective. So let's talk about we're going to migrate to the clap. How do we do that? Where do we even start when it comes to migrating? Right? Well, there are some different options to actually migrate to the cloud the first and usually what companies jump to is known as lift and shift. So in essence you have resources identified

on-prem and no say let's just take you have for 5 p.m. And their to buy forthright to CP is 4 gig of memory or whatever and that exact same resource it move it from on-prem into the clown. So you just listening what you have moving to class. However, this doesn't always be cost-effective because you might not be leveraging all the resources the two-by-fours when you're on from so if you go to the cloud with sometimes it's more expensive. What are you doing? You're wasting money cuz now you're have to pay by hour, right?

Alternately, you may not be running on the same piece of hardware. So now you got to worry about if I'm on Prem I know what kind of performance benchmarks are running. I know what kind of hardware on running but when I go to the cloud on dependent on the cloud provider, so you might not necessarily be optimized and you might have lower cost or higher pus, so be careful when you're doing Lyft and shoes because you might not be optimized need to be wasting money. The other one is more you want to optimize first. So you optimize it on Prem and then you move the

cloud which is obviously a little bit more cost-effective but potentially can take a little time and third is well. I don't even care. I'm just going to go and I'm just going to guess but I will tell you as most of you know, depending on what cloud provider you have and most companies try and look at a hybrid Cloud Model. You'll find that it's very different instant sizes and very different performance depending on which cloud provider you're in so there's all kinds of things to worry about when you're doing a migration to let's think about how companies have already started to try and do

migrations. What's actually happening. Companies are being forced to go to the cloud or want to go to the cloud. They think we got to do it. It's the next five. Let's go. Let's go. Let's go. I want that new iPhone. I want that new Galaxy. I want I'm going to go grab it. But how many times do you have situations where you know you go you go upgrade and get the new phone and then it's not compatible with an app or something like that. Right? So when they when they go to the cloud they realize that their you don't know really what they're doing and it's not really

cost-effective and now I might not be I might be in a little over my head. So they rushed to get to the Cloud and then once they're in the cloud the kind of stall right because they're like this isn't what we thought we're not getting the performance. We thought maybe our bills are coming to her. Maybe we should slow down a little bit and rethink what we're doing. So there's a number of reasons why Companies have seen that their movement and migration to the cloud starts up fast and then slows down significantly and or they stop and actually come back

on front or they never recover and they just have to throw in the towel. So let's think about some analysts that say the ID says roughly 40% of companies will actually migrate their applications back from the cloud to on-prem. Alright, so here's the scary truth right by 2020 which ironically is now next year. Can we believe that 45% of organizations that perform our lift and shift to Cloud iaas without proper cost off of nation will be over prison by 55% over spend by 70% in their first 18 months.

So when you're start dealing with millions of dollars, that's a lot of money. And in fact we have I think it's my next light. I hope it's my next life. We have companies. Nope, Netflix slide. I have we have companies that we've dealt with multiple companies where they go to the cloud and they think they have a handle on what to expect and then all of a sudden they get a cloud Bill and they almost go out of business. So I'm stealing my own Thunder, but later on I actually have a slide that talks a little about that but it's not just like one company is becoming more and more

prolific throughout the number of organizations in the US. Okay. So how do we solve some of these problems right trying to be a good team player here. You should leverage a solution that actually can focus on doing the optimization of your environment prior to moving to the cloud and or you can accurately size the right instance types when you migrate to the public low. Or you can accurately size do instance types when you go to the public Cloud so that way you can get a better handle on what the cost will be. No, you are in the public

Cloud optimization is still something that you're going to need to continue to do but you have to think about about it not just in terms of on a day or week or month basis. Now, you're going to have to start looking at things on a power schedule or hourly basis because a lot of the public library writers will start charging you by the hour. And if you have resources that are idle that I getting charged by the idle, they're getting compounding and you're wasting a lot of money. So ideally you're going to want to start looking to get to a public La Pryor to look at

a number of different things. You're not used to looking at on front in addition, you know different if you specifically was Amazon. Yeah, you can have reserved instances spot instances on-demand instances at all cost different amounts. So make sure that you can leverage the different types of technologies that are offered you and to try and figure out a way to save money. So let's give an example of a cloud migration simulation. And in this particular case, we're not just moving resources. We're actually moving or trying to migrate

an entire business service or application. So instead of just individual infrastructure all this VM this via right you're saying my bill pay service my online in-store customer. Com online application business, right? And what we're doing here is the application might have a number of different servers and instance types down here and you could understand the instance type and the performance currently on Prem. In what we shall is for the top three major Cloud providers, which of the cloud

providers is economically better for you and more importantly what kind of type should I expect to leverage in the cloud to optimize my spend and make sure I can guarantee performance. So this way you now no hey if I go from on-prem to the cloud, I know it's going to be more cost-effective and I'm going to guarantee my performance. Then once it's in there, then you can have to worry about continuing. make sense Awesome. Okay. So what kind of value can Solutions like this bring to your organization? Right for one Ideal World is you have some type of

Discovery Solution that's discovering your applications and mapping them back to the business services in which case you get that concept of a business service that you can do or storical trending modeling pasty planning on and more importantly doing that migration and by having a solution like that. You can reduce by 80% the effort that you have in trying to classifier to find an application. You also can can reduce the amount of resources needed for those applications because you're now able to understand the mapping you now under

able to understand the performance and what to expect if it goes to the cloud and finally you're going to be streamlining your people's time to make them much more efficient because they can actually act on the data versus trying to leverage spreadsheets and correlate all kinds of data from different sources. It's all going to be together. So what other challenges do I have in the public loud? So one migrate to be or not to be that is the question the answer

not all applications really should be migrated to the public lap. So it's important to understand what the applications are and whether or not even moving to the public cloud is going to be cost-effective or impact your performance. And when I say cost-effective there are hitting cost from going to the cloud which include storage and accessing data and pulling data back down from the clouds. Right? So make sure you understand what those applications are doing because the Amazons of the world have hidden charges that you might not really know. There's a company

that works a government agency in in the East that they got a very large built from a cloud provider and they said I want to know what he does why this bill is so high give me details about what this pill is. So Amazon gives them 800 Pages. There you go. It's all in there. But you look at the bill and you're trying to dissect a bill and he's little tiny line items of .01 sent here and whatever and it takes a long. Of time to try and figure out another company did that same thing and it took two people two weeks to

actually decipher what that the 800 Pages were. Does that sound like that's something you want to do? I certainly don't want to do that. So evil to one get visibility into your sponges in for him, but also understanding, you know, what are these applications and should they migrate to the club? So cost is also a big factor. Like I mentioned, you know, we could be hidden costs the actual cost just get a handle on what you're actually signing up for when you go to the cops. Yes, sir. Hold on one second.

Okay, what I don't understand is that I thought that Outsourcing and cloud services should be the same thing. So when someone goes and Outsourcing he doesn't agreement he knows he has to pay for what the service live is has to be so there's really no surprise with the bill. So I don't understand why this should be a surprise here. Well in my experience my customers experience in theory you're correct. The reality is not so much as more and more cloud services get spun up and if more more ways of accessing the data come up you're going to find

they're going to start charging for more things. In fact, you know oracle has their own version of a clap right auricle is starting to try and increase the cost of running their on-prem instances to try and force companies to move to the cloud and historical instances are not in the Oracle Cloud. They're going to charge a premium for it. So there's all kinds of scheming ways a different Public public Cloud providers are trying to go out and in charge more things for the resources. That should be just a flatline Baseline cost

and all I'm trying to say is be aware of it and get some visibility into it cuz it's really important. I think my next wife will see I have an example of a company that that got a shocking bill. But it's not the next like so we'll get there eventually like that dangling little carrot question. Hold on. Hold on to me to meet someone I can do need to do some research because I like when I got my mortgage I had a choice between fixed rate and variable-rate and in the cloud you had such a choice you can have you can have it by you said you can

have your bike fixed amount to wind up paying a little bit more for fix because you don't have the flexibility and now they would go Burnett is you can have hearing a heck of a no more flexibility. So he likes to me like you have to do some homework before you even make the decision as to who you going to go with. I told you cuz it'll be entertaining I should be stand up comedian not so that's a great great statement and absolutely an end to make sure to try and do your research or be

informed and get visibility into your class is really important the challenges that seems to me that a lot of these costs keep changing. A lot of new services are being offered and you know, there's so much competition for your dollars and your son that you know, anything's possible. But you're right try and stay informed but it's not easy. That's why it's cool is helpful because we take care of that for you. Plus we can translate the bill to make sure you know what to expect. All right. So cool down the screen scary truth

organizations were initially overshoot their Cloud infrastructure budgets due to lack of optimization governance or Cloud spend commitments. Latest technology / education company they were spending two to $300 230 230 202 300% more than they anticipated spending in the public lap. so is there a small company this means not so much right, but they expected a 3 million dollar bill and I got a $32 bill that's going to hurt your wallet. Sing about that 3 million to 30 minutes to put companies out of business, right? So you think about rushing to the cloud you probably really

have to focus on what is this mean to my organization? And how much is this going to cost me? It's not just going over there would be fine. It's kind of like, oh we're going to be aware cuz we're going to fix our server problem and then all of a sudden we had service crawl now, so let's go to the cloud. Well, guess what a whole bunch of BMS in the cloud is going to create a lot of bills that's going to cost a lot of money and you want to keep your job. Don't you? We don't want to waste all our money on Amazon.

So just be aware of the fact that the cloud is definitely a jewel. I'm not saying don't go there but you certainly have to keep up with what is possible and what it's going to cost with the opportunity cost is going to the cloud. So answer that ask yourself this question. Should I go to the cloud or should I keep some of my applications on Prince not saying they all have to stay on from I'm not saying don't go to Cloud would just be educated and knowledgeable about what you're thinking of migrating. Okay. So

how do you control your spend and your budgets right now that were in the cloud now that were trying to understand what is being utilized in the clouds? Right? Let's get some perspective get some visibility into what I have out there how it's being leveraged and my optimizing my investment right to be able to control my spending. So I don't run into any type of issue now ways you can do that is tying. Budgets to the applications and business services that you have running in the cloud and tracking those budgets from quarter-to-quarter to make sure that you don't

have overspending going on or on your spending going on. And so you can make sure you keep ahead of your Cloud spent. So arrogantly, you know, certainly you can make sure to get View and visibility into your business services and the cost that those business services are happening in the cloud to identify potential other optimization opportunities. I have seen by a lot of in particular one very large retail company that they go to the cloud right and they have these business services in the cloud but then all of a

sudden something changes and some of the resources that they migrated are no longer being used some are so save my business service has 10 different DM's on it. Are now under 5% Idol the other two are still carrying a load. Well, the reality is you're still spending the same amount whether or not all 10 of those we were going to use your not so maybe you could consider either reclaiming or re allocating resources to those look to those ATMs in order to maximize your dollar from a class perspective, but

getting that visibility in understanding how things are changing over time is important because once you get to the club, it's not like on Prime. We're okay you paid for the server. So whether or not you have it you can easily turn on and off Liam's in the cloud and more important. If you know, you're going to be leveraging resources for long. Of time start buying some reserved instances for instance, but again track them overtime to make sure you're getting me actual value out of those reserved instances you bought So there's all kinds of things to look at when were talking about

cost optimization itself. This is where like I mentioned, you know looking at those beams that are now idle and reclaiming look at the ones that are now over-allocated and resizing you can leverage different types of automation tools to help you with that. Also again start looking power schedule. So if I have the atoms that are only running back UPS at night, but doing nothing during the day for a wolf during the day turn back on an hour before you going to need them or whatever, you know, if you have apps that are running during the day and not at night

because they're only used by employees turn off because you're paid by the hour. So think about if I can turn off Liam's even half the time I can see if my costs. And that's a pretty large number if you're talking to a couple thousand gems in the car, right? Yes, yes. So how does look kind of value of this is all for all of you one. If you can see a reduction in Cloud spend that means you saving money when our experience and leveraging a solution like ours will help you reduce your public Cloud spend much of the 40%

percent. Do we had that 32? Million-dollar Cloud Bill? I just realized I'm going to do math in my head that I might not know 40% of 32 and 40% Yes. Thanks Doug. Appreciate that 12.8. Squirrel we can help save you 40% of class. So what else would you we also can help increase staff efficiency be cut by 50% because one you're now able to get a better handle of what you currently are spending and we can project forward and forecast for what your spend will

be based on how your growing because you'll have that you'll be able to be much more efficient on the other things you need to do for your day job. And finally it's going to take roughly the effort to analyze a lot of your Cloud bills and utilization by 70% because we have all that information at your fingertips. So it's very easy to get a handle on what's going on in your organization. The performance of the applications that are running the cloud and how much they're costing you. So governance the problem

with the cloud is that anyone can spend up things anytime they want right? So unless you have some set policies in place to say you could only leverage these ties VM Azure these size servers. Then you run the risk of having people spend a much larger VM using your environment and then you're going to have a premium to pay when the bill comes through even BMC it all organization and we limit the size of some of the VM that are developers can then can leverage in the cloud because if you go over what we specify it means it's we're going to have much

more astronomical numbers. Then what we really need and a lot of times has been off and then need to spend them down. But still you want to control your sperm still having policies to govern what you want to leverage. The organization is also very important. What other issue that companies worry about especially, you know, perhaps the IRS government agencies banks are worried about migraine to the cloud is security right if I can get hacked on a server if I can get you know

exposed to a number of different types of viruses to my on-prem environment who's to say someone can't find some back door into AWS and then corrupt all my servers in the cloud. So security is another big topic that you want to worry about when you go into the public allowed. In fact, a lot of cloud providers, they'll do something sick security, but they won't do scans or they won't do a lot of monitoring. See you want to make sure that you're evil to understand what the security implications might be if you were going to go to the clouds and take

actions to To try and secure your Cloud whether it's internal or external so you don't get hacked and you don't have potential vulnerabilities. So it's important to you. No have some technologies or software out there that can do golden berries and understand, you know where you put actually have some weaknesses. So there was a company that did a scan with our solution and they looked at one AWS account and they identified 1100 different services and they identified 233

servers that had high risk policy violations. They had 148 cloud services that were non-compliant and they they They were able to only have four remediations in under 10 minutes. So pretty scary that this company has that many potential problems and they didn't even realize it until they ran a solution or ran a product or just be careful. So let's let's talk. Let's just summarize a little bit of what we discussed so far right when you're going to go to the cloud cuz I'm sure these 90% of you are if not all Be prepared do

your research sir? Like you said do your research understand? What options do you have for public Cloud providers understand? What implications it is to go to the cloud understand what different what the cost is to move to different cup of public life is complicated to go to the public cloud or you're not alone and there are a number of tools by a number of different Cloud providers and vendors that can help you get there. Just make sure you get the right tool for your needs, right? There's a lot of marketing collateral that says the same thing make sure you look

at the solution and know what the tool can actually do, but you're not alone and we're all in this together. Yes duck. All right. So what are the Kickbacks and we're getting from solution architect says they don't want us collecting data because it cost dollars to move data back and forth between the cloud so your customers using like cloudwatch data using that or ideally that we've had read a number of white papers that suggest we should just do the same kind of monitoring same kind of performance that we do on

prom for anything. We put the club we're getting a lot of kick back for that. I mean, I'd like to put an agent out there. Great question. So cloudwatch. If you turn cloudwatch on then you can get some additional memory metrics and storage metrics by default. I believe CPU metrics come through without turning in a navel hanging on. If you don't turn on cloudwatch, which cuz that is a cost then leverage one of your other technology monitoring Technologies, like our agent or

someone else's agent the check your contract because certain public Cloud providers will let you collect performance data. It's not it's like a one-time transfer is fine. It's the multiple transfers that actually called. I have the hidden cost. So that's something to eat in my chair. They they let you do it once but once you do multiple times, it's a problem. So he's doing once a day with my feet it's fine. It's when you keep transferring data back or a large chunks of data that you run is from that's my friends. Any

I don't think I think I think summarizing symetrix. Remember the industry outside today roughly 90% of companies are leveraging some type of public Cloud 40% have migrated act applications back from the public cloud and most companies moved to the cloud because of costs because the higher the skyrocketing khonsavanh from don't rush if you don't have to do what's best for your organization and don't be afraid to challenge your organization to tell them why they should wait or why they should do go to a public health provider versus another

And that is all any questions. Well, you guys are tough crowd. I thought I was at least entertaining you little best. Well, if you do have other questions cuz you're shy and you don't want to ask in the big group. That's okay. We will be at the booth II boot to the right. I think you've seen us there, you know most of the week. So feel free to come stop by and I'll answer any of the questions you ask.

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