1. T HE M ETHOD AND T OOL OF C OST A NALYSIS FOR C LOUD C OMPUTING X INHUI L I Y ING L I T IANCHENG L IU J IE Q IU F ENGCHUN W ANG Presented By Sneha Arvind Mani

2. OUTLINE Introduction Calculation of Cloud TCO Calculation of Cloud Utilization Cost Calculation Tool Analysis on Balance Factor Related Work Conclusion

3. I NTRODUCTION This paper aims at formatting suits of metrics and formulas for the calculation of Cloud Total Cost of Ownership (TCO) and Utilization Cost, considering the elastic feature of Cloud Infrastructure and Virtualization in Cloud This provides a foundation for evaluating economic efficiency of Cloud and provides indications for cost optimization of Cloud. Attainment of economic efficiency in Cloud is a two-step process: Resources must be applied in an area in which its benefits outweighs its cost. For maximum efficiency to be achieved, resources must be applied in a way that costs are minimal.

4. I NTRODUCTION (2) Total Cost of Ownership (TCO) is the cost attributed to owning and managing IT infrastructure in a business. For Cloud, it’s not only sufficient to calculate and analyze the TCO but also the cost associated with real resources committed to a particular user or application should also be analyzed, which is the Utilization Cost. Elastic resource utilization: Cloud adopts the architecture which can continuously adapt to the users’ changing requirements automatically. Current cost analysis technologies do not consider the elastic characteristics of Cloud. It mainly depends on each cost item and summary of all cash outlays.

5. W IDE ADOPTED VIRTUALIZATION Virtualization refers to hosting multiple applications on a common set of servers. This allows for consolidation of application workloads on smaller number of servers. Traditional cost calculation mainly takes physical servers as the unit to calculate server cost. With virtualization, the usage of physical server is consolidated. Even the software usage requires calculating the needed software license by VM rather than physical server.

6. C ALCULATION OF CLOUD TCO The items composing the cost of cloud are: Server, Software, facilities, support and maintenance, network, power, cooling and real- estate. With Cloud Cost Amortization model, the monthly depreciation cost is calculated for each metrics item from the initial purchase expense based on the duration over which investment is amortized. Amortizable Rate Paramater is given by Arp = (1+0.05) * time / (30*24*Ap) Ap – Amortization period unit ( default is one month) time – Hours consumed.

7. C ALCULATION M ODEL Server Cost: In Cloud, servers are mounted in racks and constructed into a resource pool. Calculation of TCO takes all these servers into consideration. Software Cost : According to how software is licensed, it is divided into 3 types: Type I : Operating Systems – the license number of this software equals to the number of virtual images applied Type II: Application Server – the license number is calculated as the number of processors where these soft wares run.

8. C ALCULATION M ODEL (2) Type III: Management software – their license number is calculated by the processors they manage. Network Cost: The cost related to networking is caused by switches, NIC and cables which are used to attach physical servers to the network.

9. C ALCULATION M ODEL (3) Network cost: Support and Maintenance Cost: This metric includes software distribution and upgrading, asset management, troubleshooting, traffic management, servers’ configuration, virus protection, disk management and performance.

10. C ALCULATION M ODEL (4) Power Cost: Power consumption in Cloud is primarily caused by Computing Infrastructure including servers, network switches and Network Critical Physical Infrastructure, transformers, fans, ACs, pumps and humidifiers.

11. C ALCULATION M ODEL (5) Cooling Cost: The power consumed at the datacenter is converted to heat. A Cooling Load Factor (L) is defined which represents how much power is consumed by the cooling equipment for every 1W of heat dissipation in the datacenter.

12. C ALCULATION M ODEL (6) Facilities Cost: Facilities are not equipment but necessary for the normal running of equipments, like PDU, KVM cables. They are all wrapped into the rack.

13. C ALCULATION M ODEL (7) Real- Estate Cost : Due to the special infrastructure required like cooling, power, the space required by a Cloud is more expensive. Where Sspace is space taken up by all the racks under utilization. The value of pressure confronted by unit floor cannot be beyond

14. C ALCULATION OF C LOUD UTILIZATION C OST TCO consists of all the servers in resource pool, all facilities to support these servers. However, Cloud uses part of these servers and resources to satisfy users’ workload. Cost of the used part of resources, changing sensitively with various work loads, is important to know the usage efficiency of given resources. This is referred to as Utilization cost. Virtualization – Cloud providers package arbitrary user applications as sets of virtual machines. The basic unit of Cloud consumed is not the physical servers but VMs the users are applied to. A derivation-based approach is required which calculated the Utilization Cost from input VMs without dependency on monitoring or accounting.

15. C ALCULATION M ODEL : The three-layer model to calculate utilization-cost. Adding up all the eight costs gives the utilization cost.

16. C ALCULATION M ODEL (2) VM Density and Number of Physical Servers : VM density is the number of VMs that can be hosted on one physical server. The number of physical servers is given by Nvm – Number of applied VMs. Number of Racks: If we know the space a server needs and the server number Ns, we can calculate the number of racks acquired for providing services

17. U TILIZATION C OST Cloud providers can input derivation rules specific to their infrastructure. There are 2 ways: Assign relationship between two different metrics item Assign relationship between cost of two different metrics items. All aspects of utilization cost is determined by the physical server numbers. So if server cost increase directly, other cost will increase simultaneously. CALCULATION TOOL: The tool presents the users with a tree of metrics parameter. Each branch represents a cost metrics item. Each child label on the branch represents a parameter under the given cost metrics.

18. C ALCULATION T OOL Metrics Tree for TCO calculation: Calculation of Utilization Cost

19. A NALYSIS ON B ALANCE F ACTOR Balance Factor is used to describe the balance extent of all cost items’ utilization and to indicate where potential bottlenecks are being developed. When a bottleneck is discovered, we need to consider the connected utilization changes among various items to balance the bottleneck.

20. R ELATED W ORK Currently, there are some industrial tools for TCO: Alinean’s tool evaluates their Data Backup solution with focus on Data Transferring Cost. PMTC focus on Network Deployment cost Solarrcom focus on evaluation of desktop devices. APC give series calculators for Data Center on the energy cost and carbon footprint and power related capital.

21. C ONCLUSION In this paper, cloud TCO is quantified with a suite of metrics and formulas considering the characters of virtualization and elasticity Utilization Cost leverages the metrics items defined in Cloud TCO and takes workload. These calculation models are developed into a tool which can execute cost calculation without knowing exact data and provides a flexible way to analyze the effect of different metrics on the cost.

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