Managing Your Hybrid Cloud

July 14, 2017 / G C Network / Comments Off

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Federal Cloud Computing Strategy Officially Launched

By G C Network | February 14, 2011

Federal CIO Vivek Kundra officially launched the Federal Cloud Computing Strategy today. While this is clearly not new news, the document does state the government’s position in a very succint manner.…

GEOINT’s Future is in the Cloud

By G C Network | January 31, 2011

Recently, Geospatial Intelligence Forum Magazine asked me for my thoughts on the role of cloud computing in the future of geospatial intelligence.My response was recently published in their December 2010…

eTechSuccess: Patterns of Success – Kevin Jackson

By G C Network | January 27, 2011

My sincere appreciation to John Baker for the eTechSuccess: Patterns of Success interview. John and I worked together IBM as part of the Wireless Emerging Business Organization. His team and…

USBE&IT Winter Issue Focuses on Cyber Security

By G C Network | January 19, 2011

Thank You USBE&IT Publisher Mr Tyrone Taborn for such an inspiring issue and my sincere appreciation to Mr. Frank McCoy for my inclusion in his list of Cyber visionaries! The Homeland…

Global GovCloud with Cisco and VCE

By G C Network | January 18, 2011

Last week I had the awesome experience of participating in a global telepresence conference on government cloud computing. Joining me as presenters were Blake Salle, Senior Vice President of VCE,…

NIST Cloud Computing Collaboration Twiki Launches

By G C Network | December 30, 2010

Today I received my credentials for the NIST Cloud Computing Collaboration Site. “The National Institute of Standards and Technology (NIST) has been designated by Federal Chief Information Officer Vivek Kundra…

GovCloud Predicitons for 2011

By G C Network | December 30, 2010

Happy New Year All!! 2011 will be the breakout year for GovCloud! Pressure to reduce budget, pressure to manage I resources better and the political pressure of the next presidential…

Vivek Kundra Unveils 25-Point IT Management Reform Program

By G C Network | December 10, 2010

Yesterday the US Federal CIO, Vivek Kundra, unveiled an ambitious 25-point implementation plan for delivering more value to the American taxpayer. This plan focuses on execution and is designedto establish…

GSA and Unisys/Google Marks GovCloud Watershed

By G C Network | December 4, 2010

As widely reported this week, the United States General Services Administration (GSA) has awarded a contract to Unisys to create a secure cloud-based email and collaboration platform. The solution will…

NIST Moves Forward on Cloud Computing

By G C Network | November 8, 2010

Last week the National Institute of Standards and Technology (NIST) held their second Cloud Computing Forum and Workshop. Skillfully shepherded by Ms. Dawn Leaf, the agency’s senior executive of cloud computing,…

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Runaway cloud computing cost may be causing an information technology industry crisis. Expanding requirements, extended transition schedules and misleading marketplace hype have made “Transformation” a dirty word. Questions about how to manage cost variances and deviations with assets and cost across different suppliers abound. A recent Cloud Tech article explained that while public cloud offers considerable cost savings in comparison to private or on-premises based alternatives, there may also be significant hidden costs. Operational features like auto-scaling can cause costs to soar in line with demand for resources, making predicting costs difficult and budgeting even harder. There is also an acute need for a holistic and heterogeneous system that can track the costs of cloud services from the point of consumption (e.g., an application or business unit) down to the resources involved (e.g., storage or compute service).

Sitting at the apex of all of these issues is the CFO or corporate Vice President of Finance. As the key budget manager for most organizations, it is where many of the key financial decisions are made. This is also where the spectrum of IT cost responsibility extends from the pure financial analytics tasks of:

Optimization;
Forecasting and projection; and
Financial reporting

To the pedestrian but crucial accounting tasks like:

Show-backs and charge-backs
Charge reconciliation; and
Budgeting policy management

The most prevalent cause of these financial problems is a failure to keep track of virtual assets in the cloud. Many companies have lost complete visibility and control of cloud computing cost simply because they failed to tag and track these assets. Unfortunately, this error is typically realized after hundreds or even thousands of cloud based assets have been instantiated.

Experts have also outlined a five-step process that help enterprises bring control and governance to hybrid cloud IT cost.

Step 1: Establish governance thresholds and policies for services

Step 2: Access your cloud service provisioning accounts

Step 3: Track the costs of the services, including recurring and usage-based costs

Step 4: Enforce compliance on the costs and asset usage using the purpose built cost analytics engines; initiate and track changes

Step 5: Simulate and optimize the control and compliance actions and better control your costs

Managing spend and assets across hybrid clouds also requires the availability of actionable data. This will help the CFO focus on which assets are performing as expected and which are not. Predictive analytics and insight-based recommendations can also help to drive the prioritization of changes that can have the most effective impact.

These sort of challenges can certainly be acute but the solution for helping organizations gain control of these issues will typically include holistic hybrid cloud management. In fact, financial organizations are just now realizing their critical role in managing the operational expenditure model embraced by cloud computing. Services specifically designed to address the financial management aspects of cloud metering, billing, workload management and service provisioning policies are just now hitting the marketplace.

One of these leading financial management services is provided by IBM. Their newly launched Cost and Asset Management application helps companies address escalating cloud costs and complexity while offering guidance into the next steps of hybrid cloud transformation. Through the use of predictive analytics to monitor and provide recommendations on a single dashboard, this service can provide finance and IT on one system of reference for hybrid cloud governance. This particular service can establish and enforce governance control points using financial and technical policies. Its ability to easily combine asset tags with policies can help the CFO identify and respond to financial variances before they become problems. Through the innovative use of Watson Cognitive services, this particular application can tap into a years of IBM experience to offer recommendations using built-in advanced analytics and cognitive capabilities. Acting on these suggestions can streamline cloud usage, predict future trends and identify waste.

If your company is currently experiencing these digital transformation challenges, learn more about managing hybrid IT finances at ibm.biz/ExploreCloudBrokerage. Establishing a focus on cloud governance, cost and asset management is a truly essential step towards expanding the operational benefits of hybrid cloud.