Welcome!

Containers Expo Blog Authors: Liz McMillan, Pat Romanski, Yeshim Deniz, Elizabeth White, Zakia Bouachraoui

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, @DXWorldExpo, SDN Journal

@CloudExpo: Blog Feed Post

IT Metrics Drive Enterprise IT Cost Visibility

The IT organization is moving toward a centralized internal IT service provider model

Many organizations are focusing on IT metrics and metering to generate IT cost savings. Here's a quick summary of how one organization is using metering of IT resource consumption to improve IT cost visibility and move from being a cost center to an internal service provider.

Company and IT Overview
The Company operates a 24-hour cable network that reaches about 100 million US homes and a web site that has more than 60 million users per month. The Company is divided into two primary business units, each with their own P&L.

The IT organization is moving toward a centralized internal IT service provider model that supports both lines of business. The IT infrastructure is owned and operated by the Company with approximately 400 physical servers and 700 virtual servers across the business. The majority of the virtual servers are running open source Xen Server, but the Company also uses VMware vSphere for virtualizing Windows workloads.

Challenges
The Company was challenged with a lack of accurate IT metrics, cost data and visibility into consumption across a highly diverse infrastructure, hypervisor, and application environment.

  • Limited IT resource metrics
  • Because the Company was running a highly virtualized infrastructure with multiple hypervisors, getting accurate and comprehensive data on how the IT resources were being consumed was extremely difficult. The IT group knew they could improve the business value they delivered to the Company through utility metering their infrastructures, but they didn't have a mechanism to get a complete view of how their IT resources were being consumed by virtual machines or even how much a particular department or user was consuming.

    • Inefficient project budgeting

    As an IT-intensive organization, the Company's business initiatives required a significant amount of IT resources - compute, storage, networking, etc. As projects were requested IT resources were provisioned. When a project was requested for which there wasn't sufficient resources, that project was saddled with the entire cost of the next infrastructure investment.

    • Inaccurate cost and profitability data

    After numerous iterations of project challenges because of IT cost misallocation, the Company recognized their methodology heavily skewed IT and business initiative costs, making accurate costing and project profitability determinations nearly impossible.

    Solutions
    The Company adopted 6fusion's innovative SaaS based UC6 platform and Cloud Resource Meter to meter all machines in the Company's IT environment, both physical and virtual across multiple hypervisors. Their infrastructure now includes Cloud Resource Meter for VMware and Cloud Resource Meter for Xen, and they plan to deploy Cloud Resource Meter for Linux on their physical machine environments to expand visibility across that infrastructure as well.

    Results

    • Shift to an Internal Service Provider

    Cloud Resource Meter has been a key component in the IT group's move from being a cost center to an internal service provider.

    • IT Project Budgeting Transformation

    Using this technology has enabled the Company to deliver accurate IT metrics, cost and business initiative profitability, transforming their business process and putting IT in a leadership role in the Company.

    • Detailed IT metric reporting

    The Company now has the ability to provide detailed real time and historical reports on IT resource consumption, from the department level down to the individual VM level.

    • Workload orchestration

    6fusion's platform gives the Company the ability to provide end-user self-service for deploying and managing workloads across private and public cloud environments.

    • Built-In Hybrid Cloud

    Because 6fusion provides access to a federated network of public cloud providers using the same technology, the Company now has the ability to leverage a hybrid or public cloud model when the Company is ready.

     

    The post IT metrics drive enterprise IT cost visibility appeared first on 6fusion.

    Read the original blog entry...

    More Stories By John Cowan

    John Cowan is co-founder and CEO of 6fusion. John is credited as 6fusion's business model visionary, bridging concepts and services behind cloud computing to the IT Service channel. In 2008, he along with his 6fusion collaborators successfully launched the industry's first single unit of meausurement for x86 computing, known as the Workload Allocation Cube (WAC). John is a 12 year veteran of business and product development within the IT and Telecommunications sectors and a graduate of Queen's University at Kingston.

    IoT & Smart Cities Stories
    The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
    Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
    The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
    René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
    Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
    Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
    Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
    Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
    Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
    As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...