Part 1 – Your application may NOT YET be ready for the Public Commodity Cloud if…

1. Your application demand is very stable and doesn’t fluctuate much
If your servers are not under utilized, then you are better off keeping things the way they are, unless you want to plan for disasters or other unplanned events.  This is because cloud pricing models are geared for elastic computing. It would be more expensive to provision 4 VMs than to run 4 servers in-house.  The benefits of provisioning fewer VMs and using burst capabilities will only be realized if such demand fluctuations are expected.

Alternative: Look for cloud providers (like Terremark) that price by usage (regardless of the number of VMs provisioned).

2. Your application’s licenses can only be tied to physical cores
Many software licenses have not yet made the shift to the world of virtual machines.  For example, Oracle licenses can only operate on a fixed physical core, whereas virtualization technology was developed precisely to separate the physical layer from the software layer.  If Oracle is installed on a VM, the VM would be assigned to certain physical core(s) at one point in time and some other core(s) at some other point in time, which would violate Oracle licensing rules.

Alternative: Look for cloud providers (like Savvis) that have managed hosting servers which share a VLAN with their cloud.  In this way, Oracle can be installed on the managed hosting server while the rest of the application can be deployed on the cloud.

3. Your application stores a very large amount of data on the cloud
With storage disks getting cheaper by the day (1TB for $80), it is becoming increasingly cheaper to store large amounts of data in-house rather than pay for cloud storage every month.  This is because cloud storage is typically priced per GB per hour.

Alternative: Share data storage with other customers using Symform (or any other similar technology) that breaks up the data into a number of encrypted parts and then stores them in the other customer’s data centers.  This gives the benefits of elasticity without paying too much for it.  It also increases security of data in the cloud because no one can use the data without having all the parts and being able to decrypt all of them.

4. Your application transfers a large amount of data in or out of the cloud

Most cloud providers price their bandwidth by GBs transferred per month.  This would be very costly for applications that stream large data files on a regular basis.

Alternative: Look for cloud providers that price by Mbps of dedicated network throughput.  This is typically found in enterprise cloud providers like Savvis and Terremark.

5. You do not have the capability of managing your VMs any better than you do your servers
The ease of provisioning VMs as and when necessary can also lead to VM sprawl if not managed appropriately.

Alternative: Subscribe to a cloud management console that can not only auto provision VMs when necessary, but also schedule VMs to be turned off after use.  Gravitant’s cloudMatrix uses predictive analytics to create dynamic workload schedules that change over time based on historic demand trends.

Go to -> Part 2 – Your application would be a GREAT FIT in the Cloud if…

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Operating in the Cloud – Series Introduction

Infrastructure as a Service (IaaS) is rapidly gaining wide-spread acceptance and adoption due to its promise of cost savings, capacity to rapidly marshal/un-marshal IT resources, and be managed as a service.

However, while the technical issues are being solved at lightning speed, organizations struggle with solving the business and operational issues. Solutions for these issues lag behind and remain as the most glaring obstacle before the cloud option truly can be adopted as ‘enterprise-ready’.

In the coming series, I will discuss our experience in seven key areas related to business and operational issues:

  1. The Strategy and Business Model of Cloud, including setting goals/objectives, pricing, revenue
    distribution.
  2. Demand estimation and translation of business need to IT capacity
  3. Risk assessment criteria, from various perspectives, not only technical risk
  4. Business Operations, including ordering, billing, inventory management and payments
  5. Legal & Contractual Management
  6. Performance Standards & Monitoring, including SLAs
  7. Governance, including provider relationship management

If you’d like to explore additional topics on ‘The Business of Cloud’, send me a note.

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Cloud Sourcing Optimization: A Conceptual Model Discussion

Cloud computing brings up new cost cutting, improved flexibility and increased elasticity opportunities for enterprises. While these are the main marketing features of the cloud, the evaluation and comparison of the vendors has not been straight forward so far. Thanks to CloudWiz of Gravitant, we are able to quantify the features of vendors, evaluate them and compare them in a practical, analytical and user friendly manner. As the cloud space gets larger, and decision making steps become more complicated, we will need to add more intelligence to our decision making in cloud migration.

The potential optimization problems may arise in several parts of the cloud space, such as cloud sourcing problem, enterprise capacity planning problem, vendor capacity planning and scheduling problem, vendor load balance problem, etc. In today’s blog, I will elaborate on how to view cloud sourcing problem as a conceptual optimization model.

After an enterprise intends to move to the cloud, it first needs to translate its current use and needs into cloud requirements. Some  of these requirements are quantifiable while some are not. This task is followed by matching the requirements with multiple cloud vendors for evaluation and comparison. CloudWiz takes care of all these tedious steps in a fast, intelligent and user friendly manner. The optimization of cloud sourcing problem is defined on these steps.

In our problem space, there is one customer against multiple cloud vendors. The decision factor is what portion of a certain computing need to provide from a certain vendor.

What are potential constraints of cloud sourcing problem? Let’s make a list of them.

1- Supply-demand: All demand should be satisfied.

2- Hard capabilities: Selected set of vendors should carry all the unquantifiable capabilities which are core to functioning of the enterprise.

3- Soft capabilities: Selected set of vendors should carry a certain fraction of the unquantifiable capabilities which are secondary to functioning of the enterprise.

4- Quality of service: Each selected vendor should satisfy a certain level of quality of service.

First constraint makes sure there is no lack of supply. Second constraint helps eliminate all infeasible members from the decision set. Third constraint grants some flexibility to  the enterprise in decision making.  Fourth constraint ensures the consistency of quality of service.

What is the objective? It should definitely be measured in dollars since we kept perhaps the most important aspect, cost, out of scope so far. The proposed objective function is the minimization of total procurement cost. Cloud vendors have varying pricing schemes. Therefore, building such an objective function is a tedious task. From determining the constraints to constructing an objective, CloudWiz provides all the inputs for such an optimization model in a smart and clean way.

Let us speculate about how the optimal solution would look like. Obviously, if there is a unique vendor which serves all the hard capabilities and enough soft capabilities with the minimum cost, there is the winner. Otherwise, the customer goes through the feasible vendors and starting with the lowest priced one, picks the ones with all hard capabilities, certain number of soft capabilities and minimum satisfying quality of service, allocating based on cost. Although the model is defined as generic as possible, it can still be customized for any enterprise in any conditions.

Hang on for the future versions of the CloudWiz powered with enhanced intelligence of optimization provided by Advanced Analytics group at Gravitant. I will share potential optimization problems in our coming blogs.

Posted in Capacity Planning, Cloud Vision, Data Driven Decision Support, Operations Research, Think Tank | Tagged , , , , | 2 Comments

Cloud Computing – 58% Average Savings Per Month

Application: CRM
Environment: Production
Capacity: 40 Web/App Servers, 12 DB Servers, 8 VPN Servers, 5TB Storage, 10 Mbps Bandwidth
Demand: 1000 concurrent users, 3.0% growth per year

Scenario results from CloudWiz:

To run additional scenarios (for free), please go to http://www.gravitant.com/cloudwiz-home.html

*Note that these results are simply for comparison and decision support.  All cost and savings results are based on publicly available data, and Gravitant is not responsible for any discrepancies in the numbers shown above.  To increase the accuracy of the results from CloudWiz, please contact us to schedule a calibration meeting with our Professional Services group.

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Top 4 Cloud Providers on CloudWiz

Cloud providers seem to be popping up everyday in some part of the world, but some providers are emerging as the key players by dominating all the others in one or more aspects.  CloudWiz – the free cloud capacity and provider comparison tool – has enabled an apples to apples comparison of a number of providers, thus revealing the winners.

Quality of Service – Savvis
A number of compute, network, and storage benchmarks are run by CloudHarmony.org to evaluate the true performance of cloud providers.  Savvis outperforms all the other providers with a QoS rating of 9.71, with GoGrid following close behind with a QoS rating of 9.64.  The QoS ratings are given in terms of GQU (Gravitant Quality Units) which are explained in Gravitant’s corporate website.

Infrastructure Cost – GoGrid
While many commodity cloud providers price their cloud services at very low on-demand rates, GoGrid offers the best value for money by providing enterprise class services at close-to-commodity prices.  GoGrid started off as a commodity cloud provider but is soon emerging as a strong competitor among enterprise cloud providers.  A large application of 400 GCUs (Gravitant Compute Units) costs $ 22,491 per month at GoGrid, while Rackspace charges $24,744 per month.  All other providers charge $40,000 per month or greater for the same compute capacity.

Total Cost - Rackspace
The total cost includes infrastructure as well as operations and support cost.  While many companies would migrate to the cloud for infrastructure savings, they would end up investing quite a bit on operations and support.  This is where Rackspace truly stands out from all the others due to their ‘fanatical’ customer support.  As a result, the total cost for 400 GCUs of cloud capacity with Rackspace is $80,941/month (for infrastructure as well as operations and support), while GoGrid charges $84,448/month.  Amazon comes in next at $103,928/month and all the others charge $125,000 or more.

Cloud Management - Terremark
We’ve all heard of VM sprawl and how monitoring and governance is of utmost importance in the migration to cloud. Terremark has made a name for itself with a very easy to use management console, as well as its standardization with jcloud APIs.  Furthermore, Terremark’s pricing is package based as opposed to VM based which alleviates the need to scrupulously monitor and govern at the VM level.

So, it seems like GoGrid and Rackspace dominate from a cost perspective, while Savvis and Terremark dominate with QoS and cloud management.  This shouldn’t come as a surprise since GoGrid and Rackspace are commodity cloud providers while Savvis and Terremark are enterprise cloud providers.

Now, what if we could mix and match?  What if we could migrate our mission critical LOB applications to Savvis or Terremark for the QoS and monitoring features, and at the same time deploy email exchange and some of our dev and test environments on GoGrid or Rackspace?  Well, that’s where the CloudWiz tool plugs into Gravitant’s CloudMatrix management console that allows a consumer to provision Virtual Data Centers from different providers and then monitor and govern them across the board.

See press releases at http://businesscloudnews.com/applications/351-cloudwiz-makes-cloud-evaluation-easy.html

For free access to CloudWiz or for more info on CloudMatrix, please email
analytics-support@gravitant.com

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CloudWiz (beta) – A wizard based decision tool for going cloud!

Gravitant announces the release of CloudWiz on June 1st, 2011.  Using this tool, potential customers can evaluate the option of going cloud in less than 5 minutes, thanks to the work of the Advanced Analytics group at Gravitant.  Cloud hosting providers can also use this tool for onboarding new clients, while showing ROI benefits to the office of the CFO.  This tool summarizes the decision of going cloud into a simple three step wizard.

Step 1. Plan Capacity
Step 2. Compare Vendors
Step 3. Analyze ROI

“This tool truly eliminates the mist around the cloud!” – Robert Erickson, EVP of Product Management.

Cloud providers interested in adding themselves to the list are requested to send an email to analytics-support@gravitant.com.  Gravitant is also giving out limited time free access to CloudWiz…

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CEO Blog – A Vision for the Clouds

Clouds are not created equal. No one size fits all. As enterprises embark on the cloud journey, they are looking for a solution that provides them with the confidence, trust, rigor of process, technology choice and intelligent planning and governance. The CIO and IT organizations goal for 2011-2012: Accelerate the adoption of clouds while minimizing the risks associated with cloud services providers and evolving technology.

Gravitant has recently launched cloudMatrix™, a cloud broker and management vision that for the first time enables IT organizations to become lean, agile and business-driven. It provides the first big step towards a phased standardization and centralization of IT to reduce complexity, improve cost structures and drive high quality of service (QoS). Central to the vision is an approach of standardizing and optimizing the IT supply chain (IaaS, PaaS, and SaaS) that continuously meets business and financial goals.

Central to the cloudMatrix vision is a cloud operating environment (COE), a revolutionary cloud broker and management platform.  It enables a first of its kind standard IT transaction engine by unifying hybrid cloud provisioning and resource monitoring with financial management and governance processes.

Using automation, COE delivers efficient cloud planning, sourcing, monitoring, application architecture deployment and governance processes for accelerated adoption and value-based control of cloud business models.  For example, IT organizations can make cloud sourcing decisions by using an Expedia-like interface to identify the best fit cloud services and quickly provision the services, deploy the applications and govern them. All in one connected process.

Gravitant’s cloud broker and management vision is enabled by its founding members that have over a decade of experience in Enterprise IT management. The early adopters of the cloudMatrix vision have found to be easy to use and have realized immediate value. For example: they have realized a savings of 40-50% cost savings and improved agility by over 100%.

In my future blogs, I will outline specific customer case studies and how Gravitant’s cloudmatrix is delivering outstanding value to customers, partners and the industry.  Looking forward to exciting cloud times.

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Reserved Capacity vs Usage based Capacity

As a cloud broker, Gravitant works with clients to match their needs with what different cloud providers have to offer.

In this process, we have noticed that most of our clients have high transaction volumes on their Dev and Test environments.  However, in the Production environment, transaction volume is low with a lot of variability.  This makes sense because transaction volume in the Production environment is customer driven.

And most of the cloud providers we work with have lower rates per hour for dedicated capacity and higher rates per hour for usage based capacity.

Therefore, the lowest cost solution for most of our clients is to go with dedicated capacity for their Dev & Test environments, and usage based capacity for their Prod environment.

However, this may not be the case for all clients.  Therefore, it is important to analyze historical transaction volume and utilization for each environment and application type separately in order to identify the optimal combination.  Eventually, the main objective is to derive the optimal target of reserved capacity for each environment/application.  More on this topic coming soon…

Acknowledgements:
I would like to thank Robert Jenkins, CTO of CloudSigma, for his input to this discussion.

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Free app for Cloud Consulting!

Gravitant has just launched their Cloud Value Planner free app for Cloud Consulting…

Customers can now simulate the capacity and cost impact of replacing their current servers with a private or public cloud.  Consultants can also use this tool to show potential customers the value of going cloud.

Check it out here

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Comparison of Traditional Hosting and Cloud Computing Solutions

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