Cloud Cost Management

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1 Cloud Cost Management

2 Through 2020, 80% of organizations will overshoot their cloud IaaS budgets due to a lack of cost optimization approaches. Infrastructure & Operations Public Cloud Challenges Don t understand spend and usage across multiple providers Labor, security, and software costs aren t factored into TCO Tagging quality is inconsistent and lacks governance Spend not linked to infra, app & business unit consumption How to Identify Solutions for Managing Costs in Public Cloud IaaS, Jan 2018 Too many idle & underutilized instances including RI s 1

3 Understand public cloud costs & usage to avoid surprises Manage consumption by infra, app & business units in real-time to make good decisions through shared accountability Optimize public cloud costs & usage to take action on underutilized & idle resources 2

4 Key Benefits Proactively Manage Public Cloud Investments Understand cloud cost & usage across AWS & Azure with cloud billing automapped to standard IT service categories like Compute, Storage & Database Fully burden cloud costs with labor, security & other costs for allocation to apps & BU s driving consumption Make good decisions & forecast variable spend with real-time analytics, reporting & analysis of spend & consumption tagged by infra, app & business unit Visibility into tagging to improve data quality to drive tagging governance Drive optimization & accountability by identifying underutilized & idle cloud instances including reserved instances Quick time to value with easy setup and hands-on configuration Leverage your investment by extending to hybrid IT & on-premise use cases 3

5 Real Results with Apptio Cloud Cost Management Fact-based decisions Justified migrating 60% of back office workloads to public cloud Without Apptio, we d lose sight of the context of our cloud spend & scramble through spreadsheets to come up with an answer. Avoid surprises Provides internal stakeholders with daily cost & usage reports We ve integrated Apptio with two of our cloud providers to bring data back on a daily basis into Apptio. This allows our internal stakeholders to see usage & proactively manage consumption of cloud services. Quantify impact Tracks cloud consumption by business unit & applications With Apptio we understand cloud costs & what drives those costs. & that s what our business customers want too. Drive accountability Saved $350K a month driving business unit accountability It s important to track costs of public cloud because consumption is so easy. With Apptio consumption is mapped back to business units & their products so we can drive accountability. 4

6 Apptio Cloud Cost Management: Product Demo Understand Total Cost of Public Cloud Spend Real-time reporting & analysis to monitor usage & spend AWS and Azure bills auto-mapped to standard IT service categories like compute, storage & database Understand Manage Manage Consumption of Public Cloud Spend & Tagging Fully burdened cloud costs with labor, security & network More accurate cost & consumption allocations by infra, app & business unit with improved tagging data quality Optimize Optimize Public Cloud Purchases & Usage Easy identification of underutilized & idle cloud instances Ability to optimize reserved instances & forecast future capacity needs & variable spend 5

7 Apptio has made hundreds of customers successful managing the business of hybrid IT Proven Results. Fast Value. From the Market Leader. Go live in minutes with login credentials for AWS & Azure Billing detail auto-mapped to Apptio s standard tag schema Hands-on configuration No additional data sources required Start with public cloud and extend to on-premise infrastructure 6

8 Start with Cloud Cost Management & Expand to Hybrid 1 Optimize Public Cloud Spend Make Informed Hybrid IT Decisions Manage Supply & Demand of Hybrid IT Cloud Cost Management AWS & Azure Spend RI Optimization Cost Transparency Hybrid Infrastructure Costs App & Service TCO Bill of IT Influence Demand Chargeback Showback Infrastructure Insights Capacity Utilization Optimization 7

9 GOAL: Enable the rapid adoption of public cloud and make better decisions and forecasts through better cost visibility, transparency, and accountability HOW? Used Apptio for multi-cloud, real-time insights on spend and usage in the cloud Drove accountability by charging-back app owners for the TCO of public cloud & providing daily visibility RESULTS: Optimizing public cloud workloads on a daily basis Empowered app owners and business units for ownership of controlling public cloud costs Incorporating full TCO when making migration decisions Validating cost savings from on premise to cloud Reducing the cost curve for public cloud through better accountability, visibility, and optimization Building trust in IT by providing more visibility & transparency into public cloud costs Fewer errors & less time spent costing & optimizing public cloud Driving business value through cloud visibility and optimization at MetLife Industry: Insurance Headquarters: New York, NY Revenue: $70B Employees: 58,000 Through Apptio, we have empowered application owners to make better cloud decisions by providing ownership of controlling costs. The conversation has changed from why is IT so expensive, to how do I help to control expenses, and what lever can I pull? Application owners now have that lever with Apptio cloud reporting. We ve seen fewer errors and spend less time costing and optimizing cloud. Rick Eckoff, Director, Technology Business Management, MetLife 8

10 GOAL: Support the CIO-led cloud first mandate and resulting surge in cloud spend by providing real-time reporting & insights and driving shared accountability for cloud spend across application owners and business units. HOW? Leverage Apptio cloud analytics to understand real-time consumption across application owners Show-back cloud costs and support/maintenance costs to application owners and business units to increase transparency and accountability, moving to full a chargeback model by mid-2018 Budget owners review reports weekly instead of monthly, moving towards daily reviews Apptio s tagging quality & governance reports identified gap in tagging that could be quickly remedied DESIRED OUTCOMES: Drive organizational change of accountability for cloud costs; Keep cloud costs under control and within budget Create benchmarks & business case for strategic decisions about workload placement and migration Understand & predict cloud spend; give visibility to app owners & business units on budget available to spend Support the organizational move to cloud with a well-aligned service delivery model / internal pricing Cloud analytics drives business value at Premera Blue Cross Industry: Insurance Headquarters: Mountlake Terrance, WA Cloud Spend in Azure: $1M Employees: 3,200 Apptio s cloud analytics provides us with the guardrails and the framework to ensure we understand our cloud consumption and costs across applications. Leveraging the cloud reports has also been a major driver to increase user adoption now that budget owners are accountable for aligning spend to budget. Chris Anderson, IT Program Manager, Premera Blue Cross 9

11 THANK YOU

12 Apptio Hybrid IT & Cloud Offerings Capability Apptio Use Case Cloud Cost Management Cost Transparency Infra Insights & Bill of IT Optimize Public Cloud Spend Public Cloud Spend Visibility Public Cloud TCO of Apps & Services Public Cloud Purchase Optimization Budget & Labor Variance Management Make Informed Hybrid IT Decisions Infrastructure & Application Cost Transparency Project CapEx & OpEx Management Business Unit Consumption & Cost Manage Supply & Demand of Hybrid IT Chargeback & Showback of IT Costs Infrastructure Utilization & Capacity Optimization 11