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Author(s) David Friedlander, Product Marketing, dfriedlander@vmware.com Catherine Fan, Product Management, cfan@vmware.com Overview of VMware vCenter Chargeback July 11, 2009 External Customer, Partner All Server team: managers, directors IT architects, business analysts IT Finance manager Intermediate (product overview) 30-40 minutes, 60 minutes with screenshot demo [Link to VMvault location] [List and links] General description Last updated Distribution and Audience Type For customer presos: Intended target audience

Technical level Time required to present Current version Related materials

VMware vCenter Chargeback

Cost Accounting for the Virtual Environment

Agenda
VMwares Vision for Virtualization Management Why Chargeback is Important in the Virtual Datacenter Introducing VMware vCenter Chargeback VMware vCenter Chargeback Demo

The Goal

Just like..

IT as Service Provider

Inexpensive, pay as you go, pay for what you use Ubiquitously available Reliable Choice of providers

The Management Challenge Today

IT manages infrastructure components IT is measured on business outcomes

Server Storage Network etc

Reliable email service

Component-Level Management

Service-Level Management

VMware Uniquely Enables Service-Level Management

vCenter Product Family

Unified control center for SLA-driven management across dynamic infrastructure

VMware vSphere 4
The industrys leading virtualization platform

The Only Complete Stack for the Private Cloud

vCenter Management Product Family

VMware vCenter Product Family Delivers

Drives operational efficiencies and savings Reduces opex by 50% Leverages power of virtualization Delivers broadest and deepest capabilities for service-level management Enables IT to change and respond quickly Works with all ESM tools for seamless end-to-end datacenter management

EFFICIENCY

CONTROL

FLEXIBILITY

Virtualization Fundamentally Changes the Game

ew Considerations


New items rel ti shi s t resent in hysi l envir nment ynami and fast r wing envir nment
VMs Templates

Has anyone seen my VM?

and New Opportunities!

 

Snapshots / Clones

Enables greater automation Properties solve IT management problems in a new way

Agenda
VMwares Vision for Virtualization Management Why Chargeback is Important in the Virtual Datacenter Introducing VMware vCenter Chargeback VMware vCenter Chargeback Demo

10

Shared Infrastructure Requires New Accounting Model

Physical Model
New application = new hardware Business owners budget covers hardware expenses Business owns the hardware

Virtualization Model
New application = virtual machine(s) Hardware already available through internal cloud IT owns the hardware; makes it available to the business
1 Server : Many Apps

1 Server : 1 App

Why Is A New Model Needed?

What has changed? New virtualization paradigm Ease of VM provisioning makes it simple to deploy new machines Virtual machines are cheaper than physical machines but are not free IT still needs the ability to: Monitor and control server deployments Create accountability, as sprawl can occur Manage IT priorities by using costs to influence customer behavior

Server virtualization and the virtual machine (VM) sprawl it's creating will force most IT organizations to re-evaluate their chargeback positions. The speed and flexibility of virtualization makes some form of chargeback mandatory; otherwise, demand could skyrocket and more low-priority workloads could be deployed that dont justify their costs. Gartner, 2008

Virtualization Increases the Need for Chargeback

What is your biggest challenge with respect to managing server virtualization environments? Only 5% specified chargeback in June 2007 56% specified chargeback in February 2008

Number of respondents = 115 Source: Gartner (June 2007)

Number of respondents = 102 Source: Gartner (February 2008)

Chargeback Requirements
General
Transparency between IT and the Business

Business
Understanding the costs of rolling out new VMs Ability to understand the costs of running & maintaining their services

IT
Determine costs depending on required tier of service A way to automatically track and report on resource usage across the organization

Agenda
VMwares Vision for Virtualization Management Why Chargeback is Important in the Virtual Datacenter Introducing VMware vCenter Chargeback VMware vCenter Chargeback Demo

vCenter Chargeback
Account, monitor, and report on costs associated with your virtual infrastructure

Benefits
Improve Resource Utilization: By associating costs to VMs many of the free VMs will go away, freeing up resources for higher priorities Optimization of Budgets: Business units can understand how much they are paying for resources and how much goes to unused, allowing them to optimize resource consumption & costs

Key Features
Fixed, allocation, and utilization based costing Charge different amounts for tiers of infrastructure Schedule reports & email results

vCenter Chargeback Overview

Chargeback Hierarchy
Flexible model for determining cost accounting structure
Cost Centers, Organizations, Business Units, VM Types, etc

Single chargeback hierarchy spans multiple vCenters for enterprise-wide management Hierarchy model provides the basis for determining costing structures and delivery reports

Drag-n-drop

Costing Models
Start simple and move to a advanced chargeback model over time Compare between models by configuring different reporting options Ensure the chargeback model can align with organizational requirements Flexible costing options mix & match between models

Fixed Costing Fixed cost for a VM instance Allocation Based Costing Variable costs per VM based on allocated resources Utilization Based Costing Variable costs per VM based on actual resources utilized

Cost Accounting
Metering Element CPU GHz Used Memory GB Used Disk GB Used Disk I/O GB used Network I/O GB used Cost per Hour (Examples) $ .30 $ .64 $ .15 $ .05 $ 0.0

Base rates define costs associated with tracked metering elements Costing rates can be applied to different costing models at runtime Disable metering elements not needed

Not sure what your costs are? Use the VMware cost model calculator

Multiple Rate Factors

Multiple rates can be added to account for use of higher cost storage, servers, etc. Distinguish between costs of development vs. production systems
Metering Element CPU GHz Used Memory GB Used Disk GB Used Disk I/O GB used Network I/O GB used
Cost per Hour (Examples) $ .30 $ .64 $ .15 $ .05 $ 0.0

Multiple Rate 1.5 1.8 2.0 1.4 0

Increase rates to account for additional services such as backup, disaster recovery, etc

Applying Fixed Costs

Add fixed costs to the hierarchy to account for non-compute attributes Automatically propagate costs down the organization structure or apply directly at the VM level Ability to add any number of fixed costs

Software Licenses

Power/Cooling

People

Custom Fixed Costs

Cost Templates
Production VM

Simplify the process of adding costs for VMs in a consistent way Combines a combination of multiple rates and fixed costs into a single template

Fixed Cost per VM Real Estate = $20 HA Enabled = $10 Software = $200 Power = $3 Custom Fixed Costs

Metering Element CPU GHz Used Memory GB Used Disk GB Used Disk I/O GB used Network I/O GB used

Multiple Rate 1.5 1.8 2.0 1.4 0

Create any number of cost templates to address different VM costing plans

Reporting & Billing

Build reports at any level: High level (organization) Low level (per VM w/details) Reports can be customized with headers/footers, icons, etc to fit company look-n-feel Scheduled reports can be sent as PDF to email recipients or made available through Web UI

Chargeback Roles and User Interfaces

VI Client Plug-in Web Console

Consistent look-and-feel for VI administrator ease of use Integrated capabilities for configuring costing model & viewing reports

Data center wide cost reporting across VC instances Delegated report access to non-VI Administrators Integrated permissions model

Summary
VMware vCenter Chargeback delivers cost accounting for the entire virtual infrastructure in 3 steps:
1. 2. 3.

Create the hierarchy that makes sense for IT and the business Enter costs (variable and fixed) Report and bill back to the business

Features
x x x

Fixed, allocation, and utilization-based costing Charge different amounts for tiers of infrastructure Schedule reports & email results

Benefits
x x

Improve resource utilization Optimization of budgets

Agenda
VMwares Vision for Virtualization Management Why Chargeback is Important in the Virtual Datacenter Introducing VMware vCenter Chargeback VMware vCenter Chargeback Demo

Design

your chargeback hierarchy based on organizations, VM Types, applications, etc VMs from one or more existing vCenters into chargeback hierarchy

Drag-n-drop

Define multiple

cost models for various time periods & billing policies

Cost

models are associated with the chargeback hierarchy during report generation

Define timeframes

for the period that the costing model will be in affect from billing policies covering fixed costs, allocation, utilization, or a combination

Select

Determine

the costs associated with individual computing resources unneeded computing resources as needed Calculator spreadsheet will help determine these costs

Disable any

Chargeback

Templates

allow you to set up costs associated with common VM types

Cost

templates allow you to set costing rate factors and fixed costs associated with each VM deployment

Rate

factors allow you to increase the costs for different deployment types

Production VMs cost more since they are running on high end servers, tier 1 storage, etc
Example:

Fixed

costs allow you to charge for power, software, availability services, etc associated with each VM deployment

Production VMs have additional monthly costs for HA, DR, and power consumption
Example:

Cost Templates

can be

quickly added to chargeback hierarchy through cost configuration

Custom

cost configurations can also be set up manually

Generate

a chargeback report at any level of the hierarchy

Create

high level summary or detailed costing reports

Compare

two cost models side by side to determine differences between allocation and utilization based costing

Set

up individual reports for each organization in the hierarchy

Reports

can be scheduled and archived for later viewing

Configure

reports to determine which resources to display

Costing

model will automatically determine the default options based on enabled computing resources

Instantly

generate reports or schedule them to run on an ongoing basis reports are automatically archived for viewing, exporting, emailing, etc

Schedule

Reports

become instantly available through the report interface to export reports in PDF, word, excel, or email them out

Availability

Thank You!