Azure cloud governance deck
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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.
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Azure cloud governance deck
- 2. Your Presenter Skip Purdy Sr Solutions Architect Microsoft Practice
- 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%
- 7. Financial Governance is Different in Azure IMPROPERLY SIZED
- 8. Financial Governance is Different in Azure IMPROPERLY CONFIGURED
- 9. Financial Governance is Different in Azure UNCLEAR OWNERSHIP
- 10. Financial Governance is Different in Azure INVISIBLE
- 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
- 15. Stakeholders I.T. FinanceLine of Business
- 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
- 26. 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
- 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
- 34. Q&A
Editor's Notes
- 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