Capacity Planning and Cost Control by z Cost

Agenda • Context • Needs of a Company • Solutions • Answer to the

Context (1) • Acquisition • Merger • Companies Pooling Companies: a perpetually evolving world Globalization COMPANIES EVOLUTION Economic Context Human Context Users’ Context 3 • Service Obligation • SLA /SLR • Cost Control • Rationalization • Outsourcing • Organizational Changes • Split and Compartmentalization of the Activity • Loss of Knowledge (job change) • Staff Demotivation • Rivalry between Entities © 2012 z. Cost Management

Context (2) Hardware : between Consolidation and Disengagement Budget Share SERVERS EVOLUTION • 14% of the budget • Natural • New Workload Activity Increase • Externalization of Applications • Mainframe Disengagement Activity Decrease Technological • New Generation Evolution Capacity Increase 4 • Consolidation • Means put in common © 2012 z. Cost Management

Context (3) Budget Share Software : an Optimization Potential • 75% of the budget Customer References Evolution SOFTWARE EVOLUTION Pay for What you Use Number of Software Products & Suppliers 5 • Rationalization • Software Mapping Type of Contract • Less Customers • Bigger • More Complex • VWLC/AWLC • Peaks Analysis • Behaviors Analysis • Sub-capacity (MLC & OTC) • ESSO • OIO • ISV © 2012 z. Cost Management

Needs and Challenges of Companies § Evaluate the capacity needed on the mid-term (3 years) – – – § Define the architecture and configuration of the target server(s) – – – § Implement monitoring and consumption control tools Follow up regularly in order to identify and anticipate deviations. Comply with SLAs – – – 6 Which consumption level per product per month? What cost for the products invoiced on usage? Consistent and optimized Software Contracts. Control the budget – – § Which model, which capacity, when and for what cost? Value each product’s consumption and optimize the associated contracts – – – § Server(s) architecture (mono server, multi servers dedicated, multi servers pooled) Server(s) capacity (type, model) PSLC aggregation. Plan the evolutions of the servers and the associated investment budget – § From past records By taking into account the evolution hypothesis of the user It needs to be in line with the End Users’ Business Plan (service level required). Adapt resources at the right time Take into account the evolutions of the activity Follow –up performances and take actions at the right time © 2012 z. Cost Management

Which Solutions ? Services Performance Management EVOLUTION Management Capacity des LOGICIELS COMPANY Capacity Planning

Define Solutions § Capacity Management – Definition: • • Process making sure the IT is provided at the right time, for the right cost and in sufficient quantity Process ensuring that the IT is used as efficiently as possible. – Includes 3 sub-processes : • • • § Component Capacity Management : analyses the capacity, the use and the performances of the technical components of the IT. Helps building the Capacity Plan. Service Capacity Management : manages the current services’ capacity, control s and plans if the SLAs are or will be respected. Business Capacity Management : consists in understanding business requirements and translating them into resources and IT services. Capacity Planning – Definition: • • § Includes all the required information to size and provide the resources the current and future services will need, and the associated costs Plan used to manage the resources required to provide the IT service. Cost Control – Definition: • • 8 Process to optimize costs depending on resource usage Process which guarantees the compliance with budget commitments. © 2012 z. Cost Management

Capacity & Cost Planning • End Users’ Business Plan (activity evolution hypothesis) taken into account • Elaboration of a capacity plan • Elaboration of servers evolution scenarios • Servers capacity optimization • Verification of PSLC aggregation compliance • Forecast of Software billing levels Complementary Solutions to: • • • Control Costs Optimize Resources Comply with Commitments • Elaboration of IT investment budgets • Elaboration of optimized Software contracts • Follow-up and verification of compliance with commitments PAST • • FUTURE TODAY Activity data collection and inductive analysis Reporting on resources usage Reporting on performances, workloads, applications Alerts Management • Control and optimization of Software consumption levels (softcapping) • Software bill control and compliance with commitments • Evolution projection possible with a linear approach and based on past observations • Relevant for technical teams in charge with daily infrastructure management. Capacity & Perf. Management 9 Cost Control © 2012 z. Cost Management

Answers to Companies Needs (1) § Capacity Management & Performance Management – Tools available on the market – Dimension managed by companies… only this one though (usually) – Managed by technical experts and not very accessible by the other departments of the company – Technically-oriented. § Capacity Planning – Excel or “homemade ” tool managed by an expert – Transverse processes which require cooperation between several departments of the company – Necessary element, federative and accepted by all – Business-oriented. § Cost Control – – 10 Soft-Capping Standard features (DC, GCL, …) or Software solution (ASC) Necessary for budget optimization and compliance with commitments Finance-oriented. © 2012 z. Cost Management

Answers to Companies Needs (2) Services Performance Management EVOLUTION Management Capacity des LOGICIELS COMPANY

Capacity & Cost Planning z. Cost Management Software Solutions Expertise Service CCP Tool PAST Standard Products • • • ASC BMC – CMM CA Technologies - MICS Resource Management METRON – Athenes Perf. Tech. Pro – PTP for z/OS etc … Capacity & Perf. Management 12 FUTURE TODAY Cost Control © 2012 z. Cost Management