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THE ECONOMICS OF AZURE
MANAGEMENT
Your Presenter
Skip PurdySr Solutions Architect
Microsoft Practice
Welcome/Agenda
• The problem of cloud cost governance• How governance is different with Azure• Taking Control• Tools to Leverage• Caveats• Q&A
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)
Financial Governance is Different in Azure
Unmanaged deployments have direct, immediate impact to operational expenditure
Financial Governance is Different in Azure
Extended Cost and Amount
Amount
Extended Cost
270%
Financial Governance is Different in Azure
IMPROPERLY SIZED
Financial Governance is Different in Azure
IMPROPERLY CONFIGURED
Financial Governance is Different in Azure
UNCLEAR OWNERSHIP
Financial Governance is Different in Azure
INVISIBLE
Financial Governance is Different in AzureCHARACTERISTIC 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
OWNERSHIPDifficult 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
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 benefitso Measure cost-effectiveness prior to deploymento Predictability of costs to operateo Identify where costs scale with organizational benefits
The Importance of Financial Governance
• Information is empowermento What is runningo What are the normal/expected costso Proper planning for avoiding unpleasant surprises
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
Stakeholders
I.T. FinanceLine of Business
Taking Control
Understand Ownership
Taking Control
• Accountability for costso Identify the business owner
• Accountability for provisioning/deprovisioning resourceso Process controlso Technical controlso Auditing
• Additional considerationso Sensitivity of datao Regulatory obligations
Taking Control
OTHER
COST
PROVISIONING
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
EA
Enrollment
I’ll come to these shortly
The Cool Stuff
Management and Governance
What you create
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
Enrollment
I’ll come to these
Subscriptions
Management and Governance
What you create the cool stuff
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
Enrollment
Departments and Accounts
Subscriptions
Management and Governance
What you create the cool stuff
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
Enrollment
Departments and Accounts
Subscriptions
Management and Governance
What you create the cool stuff
Enterprise Azure Roles and Portals
Enrollment
Department A
Account A
Subscription 1
Subscription 2
Account B
Subscription 3
Department B
Account C
Subscription 4
EA Portal
Account Portal
Management portal
EA Admins
Department Admins
Account Owners
Service Admins and Co-Admins
Department/Account Setup Methodology
Enrollment
AerospaceAuto
Application 1
Application 2
Application 3
Proj New Car
Proj New
Plane
Enrollment
EuropeNorth
America
Project 1 Project 2 Project 3
Ted Bear
Grace Ma
Enrollment
MarketingFinance
Enterprise
Project 1 Dev
Project 1 Test
Production Web Sites
Functional
Project 1
Production
Subscriptions
Business Division GeographicFunctional
Accounts
Departments
Tools from Softchoice
Microsoft Azure TechCheck
File Sys. Cap (GB) File Sys. Util (%) Disk Used (GB) Read(KB/sec) Write(KB/sec) Peak IOPS
14015 34.38% 4818 367.74 196.25 2571.17
Microsoft Azure TechCheck
Tools to Leverage
Softchoice Azure Dashboard
Softchoice Azure Dashboard
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
Caveats
• Investment Requiredo Planningo Timeo Resources
• Changes Requiredo Processo Technical Controls
• Capital to Operational expenditure move can be culturalo Approvalso Depreciationo EBITDA
Q&A
