Capacity Planning is a key business service enabling the understanding and management of costs related to IT enabled functions. By profiling the performance of business applications in terms of the systems resources they consume, it is possible to establish the current costs of services provided. Building on the baseline understanding of current costs and combining this understanding with business metrics describing forecast and proposed systems demand, it is possible to forecast future costs of systems services. Timely projection of systems demand and costs early into the business development cycle enables “right sizing” of systems technology to support proposed business initiatives in the most cost effective manner. The introduction of cloud computing changes the method of capacity planning but not the goal. Detailed understanding of systems utilization and business demand enables the determination of costs at the transaction level, regardless of implementation technology. With internal systems, the combination of the understanding of systems resource status with the “all in” cost of systems ownership provides the factors needed to provide decision support to the business. For example, the reduction of systems operations to “cost per transaction per technology” may be used to place future development efforts into the “least cost” environment. Cloud computing as an external service offers a system resource with a cost attribute but without the responsibility of tracking all costs associated with providing the service. It is still important to understand the capacity of the subscribed cloud service in relation to the proposed demand on that service along with service attributes such as transaction response times and transaction populations to enable a calculation of “cost per transaction per technology” with an acceptable service level. This enables decision support for the business as transactions costs for internal and cloud systems can be made. This webinar will cover: •Applying capacity planning for internal systems as well as cloud resources •Understanding costs per transaction for both internal systems and cloud resources •Providing the business with decision support via cost metrics for the business transaction •Discuss using “cost per transaction per technology” in the context of business decision support

1. Metron-Athene, Inc.
Capacity Planning, Cloud Computing, and Costs
Using cost metrics from IT to provide
decision support to the business
1/3/2012 1

2. Capacity Planning, Cloud Computing, and Costs
D
System R
Domains
S
Internal
Provider A
DRS
warm failover
External VDI
Provider A
Gold Service
Provider B Application
Silver Service Servers Database
Provider C
Provider B
Bronze Service
Test Internal
www.metron-athene.com

3. Capacity Planning, Cloud Computing, and Costs
Business Domain
Different Perspectives • Business Functionality Complete
• Client satisfaction
• SLA
• Useability
• Cost Effective
transaction
Internal
• Facilities
• Platform
• Infrastructure
• Staff
External
• Provider A Services Systems
• Provider B Services Domain
• Provider C Services
1/3/2012 3

4. All Systems
Transaction – the service to the business
• Counts and utilization patterns
• Demand profile by transaction type
• Type of user and class of service
Capacity – accommodate present performance needs and forecast
demand
SLA – performance to goals
• Capacity, availability, response times
• Quality of service
• DRS strategy
1/3/2012 4

5. Internal/External Domains – Transaction Metrics
Market1
time login online oracle18 count total cpu
8:00 11 11 264 2
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8:20 31 71 1491 14
Oracle18 transaction count 8:25 83 150 4200 27
8:30 107 249 4482 12
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8. Capacity Planning, Cloud Computing, and Costs
D
System R
Domains S
Internal
Provider A
DRS
warm failover
External VDI
Provider A
Gold Service
Provider B Application
Silver Service Servers Database
Provider C
Provider B
Bronze Service
Test Internal
www.metron-athene.com

9. Origin of Costs by Domain
Internal Systems
• All costs related to the ownership and operation of physical systems
• Facilities – floor space, power, air, facilitization, insurance
• Platforms
• Hardware - systems, SAN, components
• Software - OS, applications, utilities
• Infrastructure
• Network fabric
• Monitor and alerting
• Staff
• Admin
• Support
• Development
• Operations
• Production, Development, Test, Staging, QA + DRS
1/3/2012 9

10. Internal Domain - System Configurations
SystemID Vendor Model Component Component Model Component Cost Component Count Install Date Max Power Rating Benchmark Total Cost
SPECpower_ssj200
vmHonda Dell M915 blade BL680c G7 $2,316.19 2 20110415 46628 $4,632.38
SPECpower_ssj200
vmLexus Dell M915 blade BL680c G7 $2,417.14 4 20100110 46628 $9,668.56
SPECpower_ssj200
vmRRoyce IBM Hx5 blade HX5 (7873) $3,147.17 8 20100801 52008 $25,177.36
SPECpower_ssj200
xenHino HP c7000 blade BL890c i2 $6,315.00 4 20110201 34008 $25,260.00
SPECpower_ssj200
xenBenx HP c7000 blade BL890c i2 $6,315.00 8 20110201 34008 $50,520.00
SPECpower_ssj200
xenCitroen HP c7000 blade BL890c i2 $6,315.00 12 20110201 34008 $75,780.00
1/3/2012 10

11. Internal Domain - Platform Hardware Costs
System ID Vendor Model Cost Installed Current Value Daily Cost cpu count per cpu
$23,816.0 22.0518518 11.02592
vmHonda Dell M915 0 20110315 $19,846.67 5 2 6
$34,512.0 31.9555555 7.988888
vmLexus Dell M915 0 20100110 $17,256.00 6 4 9
$45,809.0 42.4157407 5.301967
vmRRoyce IBM HX5 0 20100801 $17,814.61 4 8 6
$25,260.0 23.3888888 5.847222
xenHino HP c7000 0 20110201 $18,945.00 9 4 2
$50,520.0 46.7777777 5.847222
xenBenx HP c7000 0 20110201 $37,890.00 8 8 2
$75,780.0 70.1666666 5.847222
xenCitroen HP c7000 0 20110201 $56,835.00 7 12 2
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12. Internal Domain - Data Center Costs
East Data square
Center Floor Space Zone B meter 200.000000vmLexus 0.5 $3.33
East Data
Center Power Zone B watt 0.021603 8600.0 $4.46
East Data
Center Air Zone B btu 8.600000 8.6 $5.75
East Data
Center Facilitization Zone B drop 0.000000 0.0 $0.00
East Data
Center Insurance Zone B zone 2.750000 0.137500 $0.46
East Data square
Center Floor Space Zone C meter 250.000000vmRRoyce 0.5 $4.17
East Data
Center Power Zone C watt 0.021603 41600.0 $21.57
East Data
Center Air Zone C btu 41.600000 41.6 $134.59
East Data
Center Facilitization Zone C drop 0.000000 0.0 $0.00
East Data
Center Insurance Zone C zone 2.750000 0.137500 $0.57
South Data square
Center Floor Space Zone X meter 150.000000xenHino 0.7 $3.50
South Data
Center Power Zone X watt 0.017603 13600.0 $5.75
South Data
Center Air Zone X btu 13.600000 13.6 $11.72
South Data
Center Facilitization Zone X drop 0.000000 0.0 $0.00
South Data
Center Insurance Zone X zone 4.700000 0.329000 $1.15
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13. Internal Domain - Total Daily Costs
Sum of Daily
Row Labels Cost
East Data Center $181.41
Air $141.78
Facilitization $0.00
Floor Space $10.00
Insurance $1.38
Power $28.26
South Data Center $180.32
Air $128.93
Facilitization $0.00
Floor Space $16.33
Insurance $6.33
Power $28.73
Grand Total $361.73
1/3/2012 13

14. External Domain – Costs of Service
Cost considerations
• Service Level Agreement
• Service Tier
• Service Acquisition
• Base cost
• Max capacity available
• Cpu
• Memory
• Storage
• Network
• Fixed base plus overage costs
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15. Transaction Cost
Market1
time login onilne oracle18 count total cpu
8:00 11 11 176 2
8:05 7 18 270 8
8:10 15 31 496 7
Derive the cost of a 8:15 14 40 840 11
transaction 8:20
8:25
31
83
71
150
1988
1800
14
3
8:30 107 249 4980 15
8:35 117 349 9772 27
Combine 8:40
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214
477
670
9540
10720
15
9
transaction metrics with 8:50
8:55
215
211
862
1047
12930
12564
7.5
3
resource utilization metrics 9:00 200 1214 33992 27
9:05 199 1376 16512 3
9:10 182 1515 31815 16.5
9:15 104 1571 43988 27
SystemID ApplicationID ProcessID UserID StartTime Stoptime Duration Destination
marketGW1 login 99311 market27 14:09:17.934 14:09:18.365 431 shopper
marketGW1 shopper 103917 market27 14:09:19.104 14:09:19.155 51 shopper
marketGW1 shopper 103917 market27 14:09:43.157 14:09:43.290 133 orderPlace
Market4 orderPlace 394701 market27 14:09:43.291 14:09:43.505 214 oracle18
Market1 oracle18 187632 market27 14:09:43.506 14:09:44.823 1317
…
marketGW1 shopper 103917 market27 14:11:07.132 14:11:09.083 1951 cloud_a
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16. Transaction Cost
Derive the cost of a transaction
• External
• Combine transaction metrics with costs of services
• Internal
• Combine transaction metrics with resource utilization metrics
and costs of domain components
1/3/2012 16

17. Cost Metrics
Metrics must be sufficiently granular to allow comparisons
• Transaction to transaction
• Between alternative components:
• Internal vs External Service
• Physical vs Virtual System
• SAN vs Local Storage
• .Net vs Java application development effort
1/3/2012 17

18. Cost Metrics
Must have the means to collect usage metrics for each
reporting point
• Transactions
• Service Times
• Frequencies
• Usage profiles (frequency by time period)
• Components
• Utilization
• Service time

19. Reporting Goal
To enable the valid comparison of various types and
classes of service, use the same units to describe costs
from each systems domain
Costs
• per transaction
• per application
• per process
1/3/2012 19

20. Using Cost Comparison as Effective Decision Support
Understand how to build the comparison of any one system
to any other on the basis of costs.
• Internal
• External
• Hybrid
Report costs in the context of the business decision being
supported.

21. Capacity Planning, Cloud Computing, and Costs
Questions
1/3/2012 21