Why is controlling cost and performance in the cloud so hard?
According to most organizations the biggest drivers to cloud are elasticity and agility. In other words, it allows you to instantly provision and de-provision resources based on the needs of the business. You no longer have to build the church for Sunday. Once in the cloud though 80% of companies report receiving bills 2-3 times what they expected. The truth is, that while the promise of cloud is that you only pay for what you use, the reality is that you pay for what you allocate. The gap between consumption and allocation is what causes the large and unexpected bills.
Cost isn’t the only challenge. While most organizations report cost being their biggest problem in managing a public cloud environment, you cannot truly separate performance from cost, the two are tightly coupled. If an organization was optimizing for cost alone, moving all applications to the smallest instance type would be the way to go, but no one is willing to take the performance hit. In the cloud, more than ever, cost and performance are tied together.
To guarantee their SLAs, applications require access to all the resources they need. Developers, in an effort to make sure their applications behave as expected, allocate resources based on peak demand to ensure they have access to those resources if they need them. Without constantly monitoring and adjusting the resources allocated to each application, over-allocation is the only way to assure application performance. Over provisioning of virtualized workloads is so prevalent, that it’s estimated that more than 50% of data centers are over-allocated.
On-premises, over-allocation of resources, while still costly, is significantly less impactful to the bottom line. On-premises the over provisioning is masked by over-allocated hardware and hypervisors that allow for sharing resources. In the cloud, where resources are charged by the second or minute, this over provisioning is extremely costly, resulting in bills much larger than expected.
The only way to solve this problem is to find a way to calibrate the allocation of resources continuously based on demand, or in other words, match supply and demand. This would result in TRULY only paying for the resources you need when you need them, the holy grail of cost efficiency. The ideal state is to have the right amount of resources at the right time, no more, and the only way to achieve that is through automation.
Read the entire article here, Why is controlling cost and performance in the cloud so hard?
via the fine folks at Turbonomic!