D3S4 - Cost Control For Multicloud

Cost control for Multicloud
Hernan Vukovic
Data Center Technical Solutions Architect – MCO
Dic / 2019
Global
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What is Solution Selling?
© 2019 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Global
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Save money from the bottom line
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Save money from the bottom line
or
Drive top line revenue
- Carl Eschenbach – Venture Capitalist – Sequoia Capital
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Understanding what costs a customer incurs before

suggesting a product will result in better outcomes…
What can we do to help save money from the bottom line?
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Agenda
Approach to
Cloud Services How can Cisco
Multicloud Cost
Market Facts help you?
Control
© 2018
2019 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Global
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Why do we care about cost
optimization?
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Public Cloud Total Available Market (TAM) $B
2018 2019 2020 2021 2022
Cloud Business Process Services (BPaaS) 45.8 49.3 53.1 57 61.1
Cloud Application Infrastructure Services

(PaaS) 15.6 19 23 27.5 31.8
Cloud Application Services (SaaS) 80 94.8 110.5 126.7 143.7
Cloud Management and Security Services 10.5 12.2 14.1 16 17.9
Cloud System Infrastructure Services (IaaS) 30.5 38.9 49.1 61.9 76.6
Total Market 182.4 214.3 249.8 289.1 331.2
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Repatriation from the cloud
• 80% of respondents to a recent IDC survey report repatriating
workloads from public cloud environments
• On average, organizations expect to move 50% of their public cloud
applications to hosted private or on-premises locations over the
next two years
• Top repatriation drivers
• Security (cited by 19% of respondents)
• Performance (14%)
• Cost (12%)
• Control (12%)
• Centralize or reduce shadow IT (11%)
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Agenda
Approach to
Multicloud Cost
Control
© 2018
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Different factors affected by hybrid and public
cloud
Capital expenses Operational expenses
• Costs associated with procuring • Costs associated with # of
infrastructure services spun up
• Steady consistent costs • Cost spikes are common
HYBRID
PUBLIC
occurrence
• Underutilized infrastructure
minimally increases cost • Zombie infrastructure can
increase cost exponentially
• Budgets are setup in 3-5 year
increments • Budgets are set and tracked
monthly
• Labor, facilities and
maintenance are the only • All costs (except labor) are built
fluctuating costs into the services
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01 Understand
Approach to 02 Optimize
Multicloud Cost
Control 03 Control
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Understanding your cloud spend
Start with the right data
01 Understand Gain full visibility across your entire
organization’s cloud usage and
identify areas of improvement –
leads to informed decisions
Collect accounts & data View on single pane Analyze Data
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Start with the right data
• Compute
• Storage
• Network
• Services – MongoDB, Lambda, etc
• Other
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Collect accounts & data
• Cloud provider
• Regions
• Categories
• Invoice – storage, network, compute, etc
• Cloud Provider-specific - App Engine, Route 53, Cloudwatch, and
subcategories, such as Data Transfer In or Out, Number of Requests, EBS
Volume Usage
• Tags
• Cost breakdown at a deeper granular level
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View on single pane
• Costs
• Forecast
• Projects
• Resource Utilization
• Other
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Analyze Data
• Budget Overspenders
• Budget Underspenders
• Budget by Cloud
• Budget by Cost Group or Tag
• Other
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Optimize your cloud spend
Discounts (RI)
01 Understand Optimize your monthly spend by
using best practices and
recommendations
02 Optimize
S&D for Zombies Rightsizing Check Unused Services
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Discounts
• AWS has over 50 different instance types in multiple
categories across different Availability Zones and
Regions making AWS cost optimization overwhelming
and complex
• Too many options to choose from
• Complexity increases with scale
• No real time decision making
• Inconsistent Manual processes
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Search & Destroy Zombies
• Unused VM
• Unattached Disk
• Disassociated IP address
• Aged Snapshots
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Rightsizing
• Overprovisioned infrastructure
• vCPU
• vMem
• Storage
• Number of instances
• Instance types
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Check Unused Services
• Databases
• Load Balancers
• S3 volumes
• ElastiCache
• MapReduce
• And lots more that you may see in the next presentation!
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Control your cloud spend
Budgeting
01 Understand Control your cloud spend by
implementing policies and
governance
02 Optimize
Suspension Policy Auto-Scaling Alerting & Notification

03 Control
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Budgeting
• Total Budget
• Current Usage
• Forecasted Usage
• Budget by Cost Group or Tag
• Policy & action for over and under budget
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Suspension Policy
• Conserve cloud resources by moving a resource
from Running state to Suspended state
• Prevent a deployment from running during times
that it should not be accessed
• What are the minimum cost savings for policy to be
applied
• What is the minimum amount of time that a
resource has been used before it can be
considered for suspension
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Auto-scaling
• Recommends the right set of actions (up or down
sizing of instances) that results in significant cost
reduction without affecting the application
performance
• Rightsizing may not be supported for custom
instances
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Alerting & Notification
• Send notifications to specified users or user groups
when threshold limits are crossed
• Compare expenses against the budget allocated
• Trend alerts
• Overspend over 100%
• Underspend under 30%
• Cost threshold 90%
• Create policy - ex: verify that every resource
consumed in the cloud must have a tag associated
for reporting
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Agenda
Approach to
Multicloud Cost
Control
© 2018
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CloudCenter Suite
Multicloud management platform securely design, deploy, and optimize anywhere
Data
Center
Private
Cloud
Public
Cloud
End to End Lifecycle

One Integrated New and Existing Container
Platform Applications as Service
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CloudCenter Suite
What’s new
Workload Manager Cost Optimizer Action Orchestrator

Provides existing Provides public and private cloud Enables workflow process
CloudCenter functionality cost visibility and optimization orchestration and automation
Suite Admin
Administers modules, manages cloud personalities,
licensing, logging, RBAC, monitoring, authentication
Modular , microservices architecture
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CloudCenter Suite 5.1 - News
• Add new(old) clouds: vCD, IBM Cloud
• ACI MultiSite
• ServiceNow Integration (CI/CD)
• Backup and Restore (allows migration)
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Optimize across 4 key areas
Cost Availability Time Performance
Dynamically manage Automatically balance Schedule to start and Automatically analyze

instances across Spot, workloads across stop instances and application
RI and On-demand to AZ’s and instance applications based on performance and right
bring deep savings types by predicting tags and application size instances to
availability risks characteristics avoid over
provisioning
Cisco’s unique value is the application of these strategies across a

wide variety of multicloud platforms
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Cost Aggregation
and Analysis
• Public Clouds
• Obtained from cloud provider invoices
• Private Cloud
• Aggregated internally based on usage
• Multiple Cost Views
• By Cloud, By Category
• By Accounts, By Org Hierarchies
• Over Time by Cloud
• Month-end Projections
• Historical Spend
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Cost Groups
• Hierarchical structure to organize
• Billing Units, or
• Tags
• Drag-n-drop controls
• Import CSV
• Share Cost Groups
• Restrict access using ACLs
• Create multiple hierarchies
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Rightsizing
Classification Example Suggestions
Underutilization
Low consumption of allocated VM has been running at 15% CPU Resize to a smaller instance type
resources over an extended period of utilization for the past 90 days
time
Overutilization
High consumption of allocated VM has been running at 90% CPU Resize to a larger instance type
resources over an extended period of utilization for the past 2 months
time
Unused
VMs and Volumes are lying around as VM has been running at 2% CPU Stop or Terminate the VM
zombies utilization for the past week Delete the Volume
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CloudCenter Suite 5.0 & CWOM
Understand the core use cases and users for each
Cisco Workload
Cisco CloudCenter Suite
Optimization Manager
Ideal for customers who need: Ideal for customers who need:
• Policy-based governance • Workload availability and performance

Both products provide: assurance
• Multicloud deployment & management
• Continuous automated workload placement,
• Application lifecycle management Public cloud and sizing, both on-premises and in the
cost analysis and public cloud
• Process orchestration / workflows rightsizing
• Deployment integration with CI/CD • Real-time storage, network and compute
optimization
• Public / private cloud cost reporting
• ”What-if” workload and resource planning
More management focused More optimization focused

Additional information at the slide notes Sales Training
Customer Stories
“We are sending everything to the cloud”
• Unnamed customer started ”shadow IT” workloads in AWS
• After a year, finance determined that $1M/month was being spent
on AWS instances
• Customer repatriated workloads and had resources to purchase 6
Vblocks
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Cost control for Multicloud

Understanding what costs a customer incurs before

Cloud Business Process Services (BPaaS) 45.8 49.3 53.1 57 61.1

Cloud Application Infrastructure Services

Cloud Application Services (SaaS) 80 94.8 110.5 126.7 143.7

Cloud Management and Security Services 10.5 12.2 14.1 16 17.9

Collect accounts & data View on single pane Analyze Data

S&D for Zombies Rightsizing Check Unused Services

Suspension Policy Auto-Scaling Alerting & Notification

End to End Lifecycle

Workload Manager Cost Optimizer Action Orchestrator

Modular , microservices architecture

Cost Availability Time Performance

Dynamically manage Automatically balance Schedule to start and Automatically analyze

Cisco’s unique value is the application of these strategies across a

• Policy-based governance • Workload availability and performance

More management focused More optimization focused

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