azure cloud governance deck

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

How to Get Help

CONTACT YOUR ACCOUNT MANAGER OR EMAILluke.black@softchoice.com

Q&A