Justifying capacity management by demonstrating the ROI
Metron
Showing value is critical for success
www.metron-athene.com
Metron-Athene
• Established 1986
• Stable ownership
• Consistent Focus on CM
• Industry Leadership
• Growing US team
Athene
Control Center
Capacity Database
Data Source
FrameworkAcquire DB/Application
Virtual Server Custom
z/OS, HP-UX, AIX, Solaris, Linux
Objectives
• ROI definition
• Systems infrastructure sprawl
• Indicators of unmanaged capacity
• Scope and direction
• Variables and information gathering
• ROI models and cost benefit analysis
Return on Investment
One definition of ROI...
"For a given use of money in an enterprise, the ROI (return on investment) is how much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal.”
Capacity Management ROI
Infrastructure Sprawl
• How much of it is being used efficiently?
• How do you define efficient, and does it apply uniformly?
• Which systems will run out of capacity?
• What visibility is required to make it run efficiently?
Capacity Management ROI
Indicators of unmanaged capacity
• Capacity related incidents
• Reactive mode of operation for capacity incidents
• Lack of visibility into system resource utilization
• Poor performance that is the norm
• No ownership of capacity concerns
• Using excessive hardware to ensure capacity
Capacity Management ROI
Scope to deliver high value returns
Capacity Management ROI
More components to look at now
Firewall
ProxyVirtualWeb
Servers
DirectoryServer
Load Balancer
App Servers
DB Server
Mainframe
Partner App
Web Services
Msg. Broker
FirewallVirtualWeb
Servers
App Servers
Shared Service
SharedDatabase
Resource Metrics
KPIs
Response
ClientsSLAs
ClientsSLAs
Capacity Management ROI
What variables are key to determine ROI?
• Resource utilizations• Growth in resource utilizations• Count of hardware/software assets• Cost of hardware/software assets• Maintenance cost for hardware• Capacity related incidents• Average cost of incidents• Risk of capacity related incidents• Capacity related labor costs
Capacity Management ROI
Component ROI model and cost benefit analysis
Capacity Management ROI
ROI model and cost benefit analysis
Summary and Final Thoughts
Justification for doing capacity management many times will involve showing a return on investment. Doing this can be difficult with so many variables involved.
We outlined some key variables that should be included in the analysis, and presented two spreadsheet models that utilizes those variables.
• Doing capacity management is worth the effort, and demonstrating that argument with numbers can help to show it quantitatively.
Thank you for attending
Dale Feiste
Metron-Athene Inc.
Justifying capacity management by demonstrating the ROI
The End