|By Bryan Semple||
|July 14, 2011 08:00 AM EDT||
Organizations that are seeking to deploy cloud-based business models for their infrastructure face unique capacity management challenges. This article will review these challenges to enable cloud providers, either public or private, to avoid the pitfalls of improper capacity management. While the article discusses both types of clouds, the needs of private cloud providers will be especially highlighted due to the unique challenges they face with this business model.
IT Becomes a Business within a Business
For years, we have been hearing "IT must behave more like a business." A hypervisor's ability to deliver utility computing moves this vision closer to reality. Using hypervisors to deploy an infrastructure cloud fundamentally changes the relationship between IT and their customers. Application portability combined with competing cloud offerings from companies like Amazon change the dynamic between application owners and corporate IT. If end users can't explicitly move their applications between cloud providers, they can at least compare prices and service levels between providers. Right or wrong, Amazon S3 becomes a measuring stick in price, performance and service for IT organizations.
To deliver an Amazon S3 experience requires significant retooling in IT processes. Capacity management is one of the areas requiring retooling. Virtualization alone causes changes to capacity management (for more information, see http://www.vkernel.com/solutions/capacity-planning). But virtualization deployed as an infrastructure cloud adds nuances to the capacity management problem. Capacity management for cloud providers is unique for the following five reasons:
- Capacity monitoring in addition to planning
- Chargeback is mandatory
- Efficiency drives return on assets
- Tenant reporting requirements are unique
- Optimization is a value add
Variable Demand Drives Criticality of Capacity Monitoring
Cloud deployments of virtualization technology introduce many operational changes for IT administrators. The first is a change in the amount of control IT has over the loads deployed on their hardware. With cloud deployments, either public or private, end users deploy applications using self-service portals as they see fit, load them as they desire and consume resources at whatever pace they need.
Hence, unlike the careful P2V sizing process undertaken for the first wave of virtualization where applications are sized, scheduled and deployed in a methodical manner, clouds have no careful sizing or timing that the cloud operator is aware of. Applications of unknown sizes appear, consume resources, and may just as quickly disappear. Without adequate capacity, these applications will fail to perform to customer expectations. Without real-time capacity monitoring, application deployment can dramatically impact other applications.
Hence capacity planning, a well-thought-out process for making sure there is sufficient capacity en masse, must be supplemented with capacity monitoring. Capacity monitoring is a real-time process that takes raw performance and utilization data and transforms it into actionable information concerning system-level capacity requirements. Without capacity monitoring, system administrators are left to interpret real-time utilization metrics from individual virtual machines. VKernel's research has shown that properly monitoring capacity in real time involves collecting over 20 metrics per VM at least 10 times per hour, and keeping this information for at least 30 days. A 100 VM environment would require about 17 million data points to accurately monitor capacity in the environment. This capacity monitoring, however, is a must-have to augment standard capacity planning and prevent performance issues from impacting the cloud.
For any cloud where resources can be deployed in a self-service fashion, charging back for resources becomes a necessity. Without a method to chargeback or show back, self-service clouds would quickly find themselves at capacity since resources are essentially free.
But chargeback is a tricky area. For commercial cloud and private cloud operators, charging back for allocated resources is fairly straightforward. But, since the private chargeback operator is simply shifting costs insides the company and not impacting the bottom line, the motivations for chargeback are different. The public cloud operator is indifferent to allocated resources and utilized resources. If the public cloud operator is charging for an allocated resource pool, they make money. In fact, the higher the ratio between allocated and utilized, the more over allocation of resources is possible and the higher the profit margins. For private cloud operators, however, the goal is to actually lower the costs for the company. Hence, the private cloud operator wants the allocated resource usage to be very close to actual usage to drive resource efficiency. Highlighting the difference between actual resource usage and allocated resource usage shows internal business units the amount of corporate resources they are wasting. This motivation can then be used to right size environments and reduce overall IT spend.
While chargeback is important, cloud operators need to be mindful of what they charge. For public operators, there are competitive pressures. For private operators, charging provides a way to directly compare internal IT costs vs. external costs such as Amazon.
Is a simple $/CPU comparison between internal clouds and Amazon a fair comparison? Does Amazon contain the same level of compliance? Of control? Is the company comfortable with data outside the company firewall?
More important, chargeback for private cloud operators is primarily a means to minimize the difference between allocated and utilized resources to drive up efficiencies and VM densities. Chargeback or showback becomes a control mechanism as opposed to an actual financial transfer mechanism. Hence the rate of chargeback is not as important as the difference between allocated and actual usage.
Even here, the challenges for private cloud operators are greater. Let's assume a private cloud operator hosts 200 internal customers. Assume each of these internal customers is wasting 50% of their resource allocation. On an individual basis, the absolute value of the wasted resources may be insignificant. But across all 200 customers, the magnitude of the IT spend could be quite large. The greater good theory for IT would require that IT actually reduce resource usage for all the internal customers to claim additional savings for the company despite what the internal customers want. Private cloud operators must operate not only for their internal customers' needs, but also for the company's needs.
Setting rates for chargeback is the final tricky area for cloud operators. For a public cloud operator, the rate needs to be competitive, provide some profit margin and match customer's value. Easy enough. But what about private cloud operators? Once again, being a private operator makes things difficult. What are the rates for chargeback for a private cloud operator? Is the goal to set rates to make an internal profit when 50% of the VMs slots are filled? 75%? But if the internal cost center is making a profit, is that the right thing to do from a budgeting standpoint? Is the goal cost reclamation or efficiency?
The net of this is that for cloud operators, chargeback is critical. For private cloud operators, chargeback's purpose needs to be clearly defined to align IT not only with their customer's goals, but also the broader corporate goals.
Capacity Planning Impacts Revenue and Cost
Customers expecting to use a cloud service have high expectations with regards to time to deploy a service. For public clouds, this expectation will be a nearly instant deployment after the service request. Private cloud operators may not have quite an instantaneous expectation for their customers. Either way, the "acceptable" wait time of several weeks to deploy a new server is gone. Immediate is the word, not days.
To enable this immediate capability, sufficient capacity must be on hand to deploy new virtual machines based on both steady state and unexpected increases in demands. To meet this accelerated time duration, a high degree of capacity planning must take place to predict future capacity needs ahead of demand and allow for the slower process of procuring and installing physical servers, networks and storage.
It's easy to meet rapid deployment expectations by over procuring hardware. The danger here is that over procurement impacts cash flows and profitability for a cloud. Having large amounts of depreciating assets sitting around is not a sound business strategy. If these assets are plugged in and configured, the added power costs worsen an already bad situation. Under procuring hardware is just as bad since cloud operators will be unable to meet customer needs should their systems not have available capacity. Hence the goal is to have a solid understanding of consumption and then apply a safety factor to allow for unexpected demand.
Understanding capacity needs across the entire IT infrastructure is important. But it's just as important to understand where there are available VM slots for the best placement of VMs from a performance and a capacity standpoint. Utilizing available VM slot reporting ensures the performance of the running VMs and increases the VM density per host, which is critical to achieving a high return on assets.
Capacity planning is critical to cloud operators to generate a high return on assets while also meeting customer demand for near instantaneous deployment requests.
With a standard virtualized environment, the IT organization may report on environment status to a few senior IT leaders. Not so with an infrastructure cloud. For public clouds and private clouds, there is a greater expectation of visibility into the environment. Reporting for cloud tenants could involve availability, resource allocation, resource utilization, current charges, and pricing plan. The amount of information revealed to a customer could depend on the business philosophy or type of cloud. For a private cloud, revealing differences between allocated resources and utilized resources and the savings a customer could achieve by reducing their resources allocation makes sense for a company trying to save money. For a public cloud provider, however, suggesting ways to reduce resource allocations may not be in the provider's interest.
Beyond questions around what type of information to provide is the manner in which information is provided. For public cloud operators, online portals are most likely the reporting distribution mechanism of choice. For private clouds, however, information needs to flow seamlessly into the enterprises existing reporting infrastructure. This could involve connections with SharePoint, with IT service management frameworks, internal portals, or simple email distribution of reports on an ongoing basis.
Optimization Is a Value Add
Many times, when virtual machines are first deployed, they are over allocated CPU, memory and storage. In a cloud deployment, this over allocation does not cost the cloud operator revenue. In fact, just the opposite occurs. The cloud operator deploys the requested resources, but despite not being used, the cloud operator still collects the revenue. As discussed earlier, the cloud operator can decide whether to reveal this to the tenant or not.
While the cloud operator may not care about wasted resources to an application, the end customer does as does the firm's CFO. Decreasing requested CPU, memory and storage reduces monthly tenant costs. Hence, optimization becomes an optional value-add service for the provider to offer tenants to reduce spending. This would be the equivalent of your cell phone company contacting you to suggest a lower monthly plan. While it lowers the monthly revenue of the cloud operator, it dramatically improves customer loyalty.
Because of the increased need for chargeback, monitoring, capacity planning, and reporting, capacity management takes on added urgency for cloud operators. Capacity management performed correctly enables cloud operators to maximize compute cycles delivered to a customer at the lowest possible cost and, thus, capacity management is a key building block for any cloud implementation.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
Apr. 28, 2015 10:15 AM EDT Reads: 2,068
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
Apr. 28, 2015 10:00 AM EDT Reads: 3,052
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
Apr. 28, 2015 10:00 AM EDT Reads: 1,994
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Apr. 28, 2015 10:00 AM EDT Reads: 4,209
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...
Apr. 28, 2015 10:00 AM EDT Reads: 1,820
Deploying and operating cloud technology is difficult and falls outside the core competencies of most organizations. As a result, many on-premises private cloud installations falter, casting doubt on private cloud as a solution in general. Yet private clouds come with a unique set of benefits that continue to drive widespread interest. There must be a better way. This session will give participants a clear roadmap of private cloud implementation challenges and offer actionable ideas for...
Apr. 28, 2015 10:00 AM EDT Reads: 1,243
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
Apr. 28, 2015 10:00 AM EDT
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Apr. 28, 2015 10:00 AM EDT Reads: 2,204
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
Apr. 28, 2015 10:00 AM EDT Reads: 2,234
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Apr. 28, 2015 10:00 AM EDT Reads: 6,231
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Apr. 28, 2015 10:00 AM EDT Reads: 3,273
Docker, Inc., has been included in the list of "Cool Vendors" in the April 21, 2015 report by Gartner, Inc, Cool Vendors in DevOps, 2015. In the report, Gartner notes, “As virtualization and cloud applications grow beyond being single images run on premise to being comprised of multiple tiers that can be run and scaled in a hybrid cloud, new approaches are needed to reduce complexity.” “Docker has gained great traction within the developer community for how efficient it makes the individual de...
Apr. 28, 2015 09:27 AM EDT
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
Apr. 28, 2015 09:15 AM EDT Reads: 2,446
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
Apr. 28, 2015 09:15 AM EDT Reads: 4,372
BlueBox bridge the chasm between development and infrastructure. Hosting providers are taking standardization and automation too far. For many app developers it does nothing but spawn mayhem and more work. They have to figure out how their creations live on a pre-fab infrastructure solution full of constraints. Operations-as-a-Service is what BlueBox does. BlueBox utilizes development tools such as OpenStack, EMC Razor, Opscode’s Chef and BlueBox's proprietary tools give the power to do the unor...
Apr. 28, 2015 09:00 AM EDT Reads: 1,305
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
Apr. 28, 2015 09:00 AM EDT Reads: 5,308
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
Apr. 28, 2015 09:00 AM EDT
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Apr. 28, 2015 08:45 AM EDT Reads: 5,139
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Apr. 28, 2015 08:45 AM EDT Reads: 2,473
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make sm...
Apr. 28, 2015 08:15 AM EDT Reads: 3,905