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Justifying capacity management by demonstrating the return on investment

Justifying capacity management by demonstrating the return on investment.Showing the value of capacity management is critical for success.

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Justifying capacity management by demonstrating the return on investment

  1. 1. Justifying capacity management by demonstrating the ROI Metron Showing value is critical for success
  2. 2. www.metron-athene.com Metron-Athene • Established 1986 • Stable ownership • Consistent Focus on CM • Industry Leadership • Growing US team
  3. 3. Athene Control Center Capacity Database Data Source FrameworkAcquire DB/Application Virtual Server Custom z/OS, HP-UX, AIX, Solaris, Linux
  4. 4. Objectives • ROI definition • Systems infrastructure sprawl • Indicators of unmanaged capacity • Scope and direction • Variables and information gathering • ROI models and cost benefit analysis
  5. 5. Return on Investment One definition of ROI... "For a given use of money in an enterprise, the ROI (return on investment) is how much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal.”
  6. 6. Capacity Management ROI Infrastructure Sprawl • How much of it is being used efficiently? • How do you define efficient, and does it apply uniformly? • Which systems will run out of capacity? • What visibility is required to make it run efficiently?
  7. 7. Capacity Management ROI Indicators of unmanaged capacity • Capacity related incidents • Reactive mode of operation for capacity incidents • Lack of visibility into system resource utilization • Poor performance that is the norm • No ownership of capacity concerns • Using excessive hardware to ensure capacity
  8. 8. Capacity Management ROI Scope to deliver high value returns
  9. 9. Capacity Management ROI More components to look at now Firewall Proxy Virtual Web Servers Directory Server Load Balancer App Servers DB Server Mainframe Partner App Web Services Msg. Broker Firewall Virtual Web Servers App Servers Shared Service Shared Database Clients SLAs Clients SLAs
  10. 10. Capacity Management ROI What variables are key to determine ROI? • Resource utilizations • Growth in resource utilizations • Count of hardware/software assets • Cost of hardware/software assets • Maintenance cost for hardware • Capacity related incidents • Average cost of incidents • Risk of capacity related incidents • Capacity related labor costs
  11. 11. Capacity Management ROI Component ROI model and cost benefit analysis
  12. 12. Capacity Management ROI ROI model and cost benefit analysis
  13. 13. Summary and Final Thoughts Justification for doing capacity management many times will involve showing a return on investment. Doing this can be difficult with so many variables involved. We outlined some key variables that should be included in the analysis, and presented two spreadsheet models that utilizes those variables. • Doing capacity management is worth the effort, and demonstrating that argument with numbers can help to show it quantitatively.
  14. 14. Thank you for attending Dale Feiste Metron-Athene Inc. dale@metron-athene.com Justifying capacity management by demonstrating the ROI The End