For many organizations, a move to Azure creates issues with managing costs and resource ownership. Why? Cloud-based technologies rely on a different cost model - one based on usage consumption, rather than purchasing hardware and software.
Watch our team of Azure experts and learn how to effectively plan and manage the costs associated with your Azure investment. In this webinar, you'll learn how to:
- Build an Azure cost model based on best practices
- Use chargebacks to assign and track IT usage to specific business units
- Avoid unexpected consumption expenses by seeing what - and who - is consuming data
Our team will also demo the Softchoice Azure Dashboard, a proprietary tool providing our clients with the visibility they need to align resource spend, and control their azure costs.
3. Welcome/Agenda
• The problem of cloud cost governance
• How governance is different with Azure
• Taking Control
• Tools to Leverage
• Caveats
• Q&A
4. Public Cloud Spending Is Up and Growing
IDC Research- Public cloud Computing spending by Cloud types (Paas, laas, Saas)
Worldwide Public IT Cloud Services Spending by Segment (in $ billions)
5. Financial Governance is Different in Azure
Unmanaged deployments
have direct, immediate impact
to operational expenditure
6. Financial Governance is Different in Azure
Extended Cost and Amount
Amount
Extended Cost
270%
11. Financial Governance is Different in Azure
CHARACTERISTIC ON PREMISE AZURE
SIZING Eventual impact on capital expenditure Immediate impact on operational expenditure
CONFIGURATION Eventual impact on capital expenditure Immediate impact on operational expenditure
OWNERSHIP
Difficult to attribute, problematic to measure
(division of capital and operational
expenditure)
Without proper controls, hard to track and
allocate
VISIBILITY
Difficult to even identify, hard to measure
actual impact on expenditure
Easier to identify, immediate impact on
operational expenditure
12. The Importance of Financial Governance
• Costs need to be assigned to the proper area of business
• Understanding consumption patterns enables forecasting,
and some other significant benefits
o Measure cost-effectiveness prior to deployment
o Predictability of costs to operate
o Identify where costs scale with organizational benefits
13. The Importance of Financial Governance
• Information is empowerment
o What is running
o What are the normal/expected costs
o Proper planning for avoiding unpleasant surprises
14. The Importance of Financial Governance
Make upfront monetary
commitment
Upfront commitment
Pay for added usage at same great EA rates
Pay Quarterly if more than
50% beyond commitment
Pay Annually if no
more than 50%
beyond commitment
Burn meters against
that commitment
BUYING THROUGH AN EA OR SCE
17. Taking Control
• Accountability for costs
o Identify the business owner
• Accountability for provisioning/deprovisioning resources
o Process controls
o Technical controls
o Auditing
• Additional considerations
o Sensitivity of data
o Regulatory obligations
19. Taking Control
ENROLLMENT
• A single consolidated bill for all cool things
you create in Azure
• Managed by Enterprise Administrators via the
Azure EA Portal
– ea.azure.com
What you
create
Management
and
Governance
EA
Enrollment
I’ll come to
these shortly
The Cool
Stuff
20. Taking Control
SUBSCRIPTIONS
• You can have multiple Subscriptions
• You may want/need multiple subscriptions for
– Workload/Environment segregation
• Logical and administration boundaries
– Subscription limits
• A subscription is managed by a Service Administrator
– With up to 199 Co-administrators who have full
admin access across the assigned subscription
• You manage/view your subscriptions via the
Management Portal
– Portal.azure.com
What you
create the
cool stuff
Management
and
Governance
Enrollment
I’ll come to
these
Subscriptions
21. Taking Control
ACCOUNTS
• In an EA, Subscriptions are created
under an Azure Account
• This is not a user Account
• Managed via the Account Portal by
a single Account Owner
• account.windowsazure.com
What you
create the cool
stuff
Management
and
Governance
Enrollment
Departments
and Accounts
Subscriptions
22. Taking Control
DEPARTMENTS
• Allows you to set a budget for a ‘Department’
– Email alerts are generated when spend
thresholds are passed
• Accounts can then be associated against
a Department
– Department Administrators can create
Accounts underneaththeir Department
What you
create the
cool stuff
Management
and
Governance
Enrollment
Departments
and Accounts
Subscriptions
23. Enterprise Azure Roles and Portals
Management portal
Account Portal
EA Portal
Enrollment
Department
A
Account A
Subscription
1
Subscription
2
Account B
Subscription
3
Department
B
Account C
Subscription
4
EA Admins
Department
Admins
Account
Owners
Service
Admins and
Co-Admins
31. Softchoice.com Ea.azure.com
Display month-over-month spending
Commitment Analysis with expected end dates X
Graphical displays of spending broken down by
subscription, department, account, etc. X
Ability to track spending to subscription and product X
Graphical view of daily spending by category,
product, subscription, department, etc. X
Usage reports with details down to the instance
level to track spending X
Identify percentages in spending changes
period-over-period X
Predict the date when commitment will be met X
32. Caveats
• Investment Required
o Planning
o Time
o Resources
• Changes Required
o Process
o Technical Controls
• Capital to Operational expenditure move can be cultural
o Approvals
o Depreciation
o EBITDA
33. How to Get Help
CONTACT YOUR ACCOUNT
MANAGER OR EMAIL
luke.black@softchoice.com
Here’s your presenters. Enter questions into the question area and we will be happy to answer.
TADD
At the end of this session, the attendee will:
See the path of financial management for azure and understand that there are tools to help.
TADD
According to IDC research, many companies from varied industries find public cloud as the most adaptable model and its spending reached approx. $70 billion in 2015, up 24% from 2014 to 2015 and could possibly extend to $127.5 bn by 2018 at a five-year compound annual growth rate (CAGR) of 22.8%.
TADD
Unmanaged deployments cost $$
Improperly sized - excessive costs (beyond value to the organization)
Improperly configured
Risk of breach and financial | reputational | regulatory risk
Visibility
Forecasting
Model the cost of running in Azure
Is it cost effective?
Predictability of expenditure
Identify where the costs scale with benefit (revenue or other)
Anticipate potential overages
TADD
In the Softchoice environment alone, our customers are overspending by $2.2m or 270% in comparison to their EA Commitments.
TADD
Too much (or too little)
TADD
Run 24x7 when 9x5 is all that is required
TADD
Who is accountable for the costs?
TADD
No one knows its running…
TADD
TADD
Forecasting
Model the cost of running in Azure
Is it cost effective?
Predictability of expenditure
Identify where the costs scale with benefit (revenue or other)
Anticipate potential overages
MEGAN
Who is involved in the discussion about Financial Governance?:
Line of Business – accountable to finance
You can give your developer group or ecommerce team an azure instance but if you don’t have financial controls, they can easily go over without understanding the impact.
Allocation of finances to Resources – Who is doing the spending and who is going to pay for it?
TADD
Understand ownership
Accountability for the costs
Identify the business owner
Accountability for provisioning and deprovisioning of resources
Process controls
Request -> Approval -> Deployment
Auditability
Identify additional considerations
Sensitivity of data
Regulatory obligations
TADD
Accountability for the costs
Identify the business owner
Accountability for provisioning and deprovisioning of resources
Process controls
Request -> Approval -> Deployment
Auditability
Identify additional considerations
Sensitivity of data
Regulatory obligations
TADD
These considerations do not exist in isolation
They drive and inform each other
Megan
Cloud Techcheck – will mention soon (sizing)
Workload Analyzer (Sizing)
Jumpstart: Configure a new client correctly and assist with defining business objectives. (Configuration)
Accelerator: Moved a defined workload to Azure.
Governance Workshop: How are you using Azure today? What processes and controls are in place and what can be implemented Ownership
Governance model that address controls for Azure resources, specifically:
•Financial reporting
•Spending limits, where applicable
•Identity framework for role based controls to support technical governance and security
Visibility
TADD
Deploy VMWare capacity planner tool to grab on-prem system summaries: SQL, CPU performance, etc. Then execute pricing based on Azure Rate Card. Can optimize pricing based on currency, EA, etc.
Megan
Almost all clients show 50% savings on optimization
Megan
In the past couple of months, since we have been live, we are managing $3.4m in Azure spending.
Continually iterating and adding value
We are using the same data as the Microsoft EA portal, presenting in a more graphical, easy to consume format. You could use the csv data from the EA portal and spend hours every month with Excel, but we do that for you.
Megan
Megan
Megan
While we do use the same data that the EA portal has, we present it in a friendlier, easier to understand manner that helps the user track their spending.
Tadd
Shared
Cloud TechCheck
Workload Analyzer
Accellerator and Jumpstart
Governance Workshop
Customized Consulting
Managed Service
Dashboard
Size, Configuration, Visibility, and Ownership