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Cloud Provider Portfolio Selection
1. 11/10/14
Cloud Provider Portfolio
Selection
Selecting a set of providers to support the
full application portfolio
Ilyas Iyoob, PhD
Director, Advanced Analytics
Gravitant, Inc.
Aaron Yan, M.S.
Operations Research Analyst
Gravitant, Inc.
2. 2
11/10/14
Case Study
Large IT Services Company
• Revenue > € 3,500 million (2013)
• Employees > 18,000 worldwide
• Markets Legal
Tax and Accounting
Finance and Audit
Risk and Compliance
Healthcare Operations
• Operations Over 35 countries across
Europe
Asia Pacific
North America
Latin America
Question
1
5. 11/10/14
Question1
Which apps should be moved to the cloud?
5
Apps
http://www.gravitant.com/product-features/cloud-application-assessment/
… ~ 500 apps
Gravitant’s Cloud Screener helps answer this question
6. 11/10/14
Question1
Which apps should be moved to the cloud?
6
Apps
… ~ 500 apps
Turns out TyMetrix and BankOrion should not be moved to the cloud because
- TyMetrix is a core business app for this company, so it should be kept in-house
- BankOrion has financial data that is subject to very high compliance requirements
7. 11/10/14
Question1
Which apps should be moved to the cloud?
7
Apps
… ~ 500 apps
Turns out TyMetrix and BankOrion should not be moved to the cloud because
- TyMetrix is a core business app for this company, so it should be kept in-house
- BankOrion has financial data that is subject to very high compliance requirements
More on this some other time.
Let’s focus on the next question which is the focus of this talk…
Question
2
10. …
11/10/14
Question2
Which provider should be selected for each app?
10
… ~ 450 apps
Apps
Providers
8 regions 2 regions 13 regions 4 regions
~ 20
providers
11. …
11/10/14
Question2
Which provider should be selected for each app?
11
… ~ 450 apps
Apps
Providers
8 regions 2 regions 13 regions 4 regions
~ 20
providers
Solution
Methodology
12. 11/10/14
Question2
Which provider should be selected for each app?
12
• Current Solution: Solve each app by itself
Gravitant’s Cloud Compare
http://tools.gravitant.com/cloud-compare-for-cloud-applications/
13. 11/10/14
Question2
Which provider should be selected for each app?
13
• Current Solution: Solve each app by itself
Gravitant’s Cloud Compare
http://tools.gravitant.com/cloud-compare-for-cloud-applications/
• Suggested Solution: Solve for entire application portfolio simultaneously
To account for
- Dependent apps that should be placed together
- Conflicting apps that should be placed apart
- DR environments that should be placed apart from Prod environments
- Volume discounts from providers
14. • Suggested Solution: Solve for entire application portfolio simultaneously
11/10/14
Question2
Which provider should be selected for each app?
14
Problem
Statement
• Current Solution: Solve each app by itself
Gravitant’s Cloud Compare
http://tools.gravitant.com/cloud-compare-for-cloud-applications/
To account for
- Dependent apps that should be placed together
- Conflicting apps that should be placed apart
- DR environments that should be placed apart from Prod environments
- Volume discounts from providers
Tradeoff
Few providers
(high vulnerability)
Many providers
(low tractability)
vs
16. 11/10/14
Problem Statement
16
Apps
⋮
Providers Assign providers to apps
so the constraints are
satisfied while
minimizing cost
Constraints
• Coverage
• Performance
• Apps together
• Apps apart
17. 11/10/14
Problem Statement
17
Apps
⋮
Providers Assign providers to apps
so the constraints are
satisfied while
minimizing cost
Constraints
• Coverage
• Performance
• Apps together
• Apps apart
In other words,
fill this table out so
nothing breaks!
and maybe save
some money too…
Formulation
19. 11/10/14
Mathematical Formulation
19
similar to weighted set cover problem…
Minimize cost of operating
in the cloud
Satisfy performance
requirements of every app
Meet coverage needs for every
app
Group apps that need to be on
the same infrastructure
Split up apps that need to be on
separate infrastructures
Assign every app to some
provider
Result
21. 11/10/14
Result
21
Apps
⋮
Providers
Most apps can be in
AWS except for a
few.
22. 11/10/14
Result
22
Apps
⋮
Providers
Most apps can be in
AWS except for a
few.
MarkLogic and
IntelliConnect have
been put in Azure
because its
incremental VM
sizes are better
than AWS.
23. Most apps can be in
AWS except for a
few.
MarkLogic and
IntelliConnect have
been put in Azure
because its
incremental VM
sizes are better
than AWS.
Oracle needs to be
apart from others
for data security, so
it ends up in
Google.
11/10/14
Result
23
Apps
⋮
Providers
Impact
24. 11/10/14
Impact
24
Radical Approach
(everything on AWS)
$571k/month
87% coverage
Customer had
significant
shadow IT with
AWS
25. 11/10/14
Impact
25
Radical Approach
(everything on AWS)
Customer had
significant
shadow IT with
AWS
Conservative Approach
(everything on Azure)
$571k/month
87% coverage
$684k/month
100% coverage
Customer’s
existing
environments were
Windows based
26. 11/10/14
Impact
26
Radical Approach
(everything on AWS)
Conservative Approach
(everything on Azure)
Optimal
(80% AWS, 7% Google, 13% Azure)
$571k/month
87% coverage
$684k/month
100% coverage
$553k/ month
100% coverage
Conclusion
Customer had
significant
shadow IT with
AWS
Customer’s
existing
environments were
Windows based
27. 11/10/14
Conclusions
27
• Practical conclusions
▫ Realized savings of 15-20% per year
This equates to
$1.5M saved per year
(from just 15 apps).
Replicate this exercise
for the rest of the 450
apps to realize much
more savings!
28. 11/10/14
Conclusions
28
• Practical conclusions
▫ Realized savings of 15-20% per year
• Theoretical conclusions
▫ Coverage constraints simplify the problem
▫ Performance constraints simplify the problem
▫ Apps together constraints simplify the problem
▫ Apps apart constraints complicate the problem
This equates to
$1.5M saved per year
(from just 15 apps).
Replicate this exercise
for the rest of the 450
apps to realize much
more savings!
29. 11/10/14
Conclusions
29
• Practical conclusions
▫ Realized savings of 15-20% per year
• Theoretical conclusions
▫ Coverage constraints simplify the problem
▫ Performance constraints simplify the problem
▫ Apps together constraints simplify the problem
▫ Apps apart constraints complicate the problem
A full survey of OR problems in Cloud Computing
http://www2.isye.gatech.edu/~adieker3/publications/cloudOR.pdf
This equates to
$1.5M saved per year
(from just 15 apps).
Replicate this exercise
for the rest of the 450
apps to realize much
more savings!