Posts Tagged ‘VIC’

This guest blog comes to us from Cloudability, a featured member of the SoftLayer Technology Partners Marketplace. Cloudability is a cloud budget management service that helps companies manage their cloud spending, prevent overages, reduce waste and save money. In this video we talk to Cloudability Founder and CEO Mat Ellis about how the company developed, and we hear examples of how Cloudability is supporting and businesses money.

5 Things You Need to Know to Control Variable Infrastructure Costs

If you have on premise equipment, then your costs are fixed — you paid your money and now you own a fixed amount of hardware and software. The cloud, on the other hand, has variable costs due to two important features — you only pay for the services you use and it’s scalable, providing the resources you need at any given time. By using a cloud infrastructure, you end up with what we call Variable Infrastructure Costs (VICs).

Most of SoftLayer’s services meet the criteria for a VIC. You need an extra cloud server for a few hours? No problem. More disk? Done.

With great power, comes great responsibility, and the biggest problem with VICs is that they are just like a faucet: Leave it running, and the water bill can add up fast … Not to mention all that waste! Unless you keep a close eye on VICs, you could find yourself in front of your CFO, pleading for your budget’s life.

Cloudability was created to keep those costs under control, and in the course of working with our customers, we’ve come up with a simple five-point checklist of best practices:

1. Collation

Make sure you have insight to all your costs, create a single contract database, and review it regularly. Don’t forget to include total cloud spending alongside your fixed contracts. Talk to your finance department, then drill your employees and tech teams to make sure you REALLY know the whole truth. There can be — and usually is — a disconnect in the organization about how much cloud is really being used.

2. Analysis

Get into the weeds to see why each project is spending what they are spending. Try to calculate some tangible metrics like cost per thousand web pages served or cost per new customer, and benchmark these against public data and common sense.

3. Organization and Rebalancing

Put each of your projects into one of four quadrants:

1. High Spend/Low Efficiency
2. High Spend/High Efficiency
3. Low Spend/Low Efficiency
4. Low Spend/High Efficiency.

Read the rest of Cloudability’s blog about best practices in variable cost management. »