1. Cloud Economics – Finding Your ROI
Sharon Wagner, Founder & CEO, Cloudyn

2. Cloudyn manages and optimizes the
cost of cloud services
“You can learn more about your use of
cloud by subscribing to Cloudyn… It will
help you continually get a clearer picture
of real cloud use.”
James Staten, VP Infrastructure and Operations

3.  SaaS solution, zero-integration
 Cloud analytics
 Real-time controls
 Consumption management
 Cloud optimization
 Resources rightsizing
 Price optimization
 Deployment reallocation
 Simulation & planning

4. • AWS product launch: Feb 2012
• Support: Compute, Database & Storage
• 300+ active customers
• 1,250,000+ servers monitored
• $250,000+ average customer cloud spend
• 41% cost savings

5. Our Agenda
Cloud Customer Use Case
Some Interesting Cloud
Research and Data
Best Practices and Solutions

6. Customer Case Study
Meet Jim, IT Director of Energy & Co,
a leading, global energy company.
Energy & Co has a significant IaaS footprint
• Multiple business units
• Development, testing and production
• Over 100 cloud accounts, 2000+ servers
• Fluctuating environment

7. Customer Case Study
When we first met Jim…
• Everything is under control
• Cloud resources are perfectly provisioned
• On-Demand offers optimal combo of cloud flexibility
and ROI
• Cloud costs cannot be reduced any further

8. Customer Case Study
• 32 Extra Large servers running idle for 2 months
• 3852 similar snapshots of a single volume
• 11 reservations with no associated instances
• 3 MySQL servers running Max 4.3% CPU utilization
• 80% predicted growth in annual cost

9. Something is wrong!

10. Introducing CloudynDex™

11. While Monitoring ~1M Instances we noticed:
• >50% of all instances run for less than 2 hours
• ~30% run between 2 and 12 hours

12. • Average utilization < 17%
• As instance size increases, utilization decreases
• Many servers can be safely downscaled!
Size % Instances Utilization (weighted) % Spend
Small 74.4% 16.7% 36.0%
Medium 18.1% 11.9% 31.3%
Large 6.4% 7.8% 22.7%
Extra Large 1.1% 3.9% 10.0%

13. Spot OnDemand Reserved
70000
60000
50000
40000
30000
20000
10000
0
15-Apr-2012 15-May-2012

14. Use of Reservations Options
Actual Break-Even
3% 2% 3%
Light Utilization - 1 year 2.5 months
26% Light Utilization - 3 years 3 months
35%
Medium Utilization - 1 year 4 months
Medium Utilization - 3 years 5-6 months
31%
Heavy Utilization - 1 year 5-7 months
Heavy Utilization - 3 years 11-13 months

15. You should seriously avoid…

16. New cloud vendor?
Won’t work, transition is too expensive
Change pricing plan?
You don’t really know what you need
Negotiate terms with your vendor?
You probably will get a $50 voucher

17. Best Practices

18. Real-time Analytics
1 View and control usage, consumption, inefficiencies and cost drivers
Right-sizing
2 Downscale, shut-down and clean resources - avoid over-provisioning
Price Optimization
3 Select price plans and contract term changes to reduce cloud cost
Plan & Simulation
4 Realize, simulate and optimize the true cost of a business service

19. • Each environment is different
• Define your underutilization threshold: Average, Spikes and Standard Dev.
• It will become very economical when out-scaling

20. 3Y-term, m1.large
instance, Virginia
“Light Utilization”
break-even vs. on-
demand = end of
lock-in at 3 months

21. Monitor your deployment
To know your cloud
Avoid traditional capacity allocations
For fine-tuned control
Over-provision to the right extent
Leverage usage trends to right-size consumption
Your environment is dynamic
Your solution should be dynamic too

22. Thank You.
sharon@cloudyn.com