vmworld 2013: tech preview: business management for cloud

Tech Preview: Business Management for Cloud

Chandra Prathuri, VMware

Matthew Ritchart, Health Management Associates

Taka Uenishi, VMware

VCM4885

#VCM4885

2

What is the Cost of Cloud? Cost of VM?

Getting Permission from Scott Adams …

3

What’s Changing: Rise of “Shadow IT”

IaaS

PaaS SaaS

* Source: Gartner, November 2011: “By 2015, 35% of enterprise IT expenditures

for most organizations will be managed outside the IT department's budget."

4

My Challenges as Manager of Cloud Infra

2. Transition to Self Service Hybrid Cloud

1. Offer Competitive IT Infra Services in Hybrid Cloud

3. Manage Costs in Self-Service Cloud

5

About HMA

6

Enabling America’s Best Local Health Care

3

Enabling America’s Best Local Health Care

7

Company Growth and Performance

$4,279 $4,536

$5,092

$5,804

$6,753

2008 2009 2010 2011 2012

Net Revenue(1)

(millions)

(1) Net Revenue is prior to bad debt expense

(2) Adjusted EBITDA is defined as consolidated net income before discontinued operations, net gains (losses) on sales of assets, net interest and other

income, interest expense, income taxes and depreciation and amortization. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net revenue.

Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting principles in the United States, commonly known as GAAP.

Nevertheless, Health Management believes that providing non-GAAP information such as Adjusted EBITDA is important for investors and the readers of Health

Management’s consolidated financial statements as it is commonly used as an analytical indicator within the healthcare industry and Health Management’s

debt facilities contain covenants that use Adjusted EBITDA in their calculations. Because Adjusted EBITDA is a non-GAAP measure and is thus susceptible to

varying calculations, Adjusted EBITDA, as presented, may not be directly comparable to other similarly titled measures used by other companies.

$622 $678

$733

$826

$963

2008 2009 2010 2011 2012

Adjusted EBITDA(2)

(millions)

9

Company Growth and Performance

8

My Challenges as Manager of Cloud Infra

2. Transition to Self Service Hybrid Cloud

1. Offer Competitive IT Infra Services in Hybrid Cloud

3. Manage Costs in Self-Service Cloud

9

Today – I am an XLS Jockey!

Creating Manual

Rate Cards

0

5,000

10,000

15,000

20,000

25,000

30,000

1 2 3 4 5

Am

ou

nt

Year

Sample Impact on Expenditure Physical

Virtual

Cost Analysis Charts

10 10

Took me 15 min to get this Output!

With VMware – I can get costs in 15 min!

11 11

Automatic Rate Card Generation

With VMware – I can get costs in 15 min!

12

The Other Thing That is Changing: Customers Want Choice

13

Today, Very Complex to Compare Services

14

Today, Very Complex to Compare Services

15

With VMW – Out of Box Analysis, Comparison

16 16

With VMW – Out of Box Analysis, Comparison

17

With VMW – Out of Box Analysis, Comparison

18

My Challenges as Manager of Cloud Infra

2. Transition to Self Service Hybrid Cloud

1. Offer Competitive IT Infra Services in Hybrid Cloud

3. Manage Costs in Self-Service Cloud

19

Today – How Do I Map This Data to Business Data

• Who is Using What

Resources?

• How do I Price Self

Service Blueprints?

• How do I plan Costs,

Budgets?

20

With VMW – Out of Box Organized by App, BU

21

With VMW – Out of Box Organized by App, BU

22

My Challenges as Manager of Cloud Infra

2. Transition to Self Service Hybrid Cloud

1. Offer Competitive IT Infra Services in Hybrid Cloud

3. Manage Costs in Self-Service Cloud

23

Today – Variable Bills from Cloud Providers

24

Today – Variable Bills from Cloud Providers

25

With VMW – One Place for All Cloud Costs

26

All Cloud Costs – Organized by BU, App

27 27

With VMW – IT becomes Broker of Cloud Services

Know Your Costs

Total Cost of

Cloud

Loaded Unit

Costs of CPU,

MEM, Storage

Opportunities to

Optimize

Give Choice to Consumers

What If analysis

– Private and

Public Cloud

Compare Costs

& Services

Show Cost and

Usage to

Consumers

Transparency to Business

Showback Cost

& Usage

Manage CapEx,

OpEx Budgets

Broker Services

to Business

28

VMware Business Management for Cloud -

Demo

29

VMware Cloud Business Solutions

Head of Infrastructure

Cloud Director

Cloud Architect

Cloud/VI Admin

CIO

IT CFO/Controller

Business

Management for

Cloud

IT Financial

Management

Service Quality

Management

Capabilities Challenges Leaders

Compare

30

Impact to IT Infrastructure

In Conclusion…

Environmental Changes

Operational Challenges

It’s vital that you gain control over “demand” of Cloud infrastructure resources

Inevitable trend What if you do nothing? Are you ready?

Come to our Booth and check out the Beta!

31 Confidential

Other VMware Activities Related to This Session

HOL:

HOL-SDC-1311

VMware IT Business Management

Group Discussions:

VCM1001-GD

IT Business Management with Chandra Prathuri

Related Breakout Session:

OPT4732 Leveraging IT Financial Transparency to Drive Transformation

Moscone West, Room 2011, Tuesday 27-Aug 4:00 PM

VCM4885

THANK YOU

Tech Preview: Business Management for Cloud

Chandra Prathuri, VMware

Matthew Ritchart, Health Management Associates

Taka Uenishi, VMware

VCM4885

#VCM4885