Strategy for cost efficiency, calculation of the adoption cost of the multi-cloud solution through the deliverable-oriented breakdown

Ensuring financial and economic stability in Ukraine during war. Using startups and multi-cloud technologies to develop cooperation, infrastructure and business. Improving the efficiency of cloud service. Calculating the costs of implementing IT systems.

Рубрика Экономика и экономическая теория
Вид статья
Язык английский
Дата добавления 20.09.2024
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Kharkiv National University of Radio Electronics

Strategy for cost efficiency, calculation of the adoption cost of the multi-cloud solution through the deliverable-oriented breakdown

Dudka Oleksandra Associated professor of Radiotechnologies

Information and Communication Systems Department, PhD

Ukraine

Summary

The main reason for usage of multi-cloud solutions is cost effectiveness. The accuracy of the cost benefits analysis that should be used in decision making process is directly related to the approach for the cost of development and cost of operation efforts calculation.

Multi-cloud environments are becoming more and more common nowadays. More and more companies start using different platforms to host their data. As per Gartner, three-quarters of medium and large companies are adopting this type off strategy by the end of this year. IDC too has reported that 90% of all companies globally have adopted a variety of platforms to host their data by 2022.

Keywords: quality attributes, multi-cloud, cost benefit analysis, cost efficiency, WBS.

Introduction

Problem Statement. During cloud solution design stage, the architecture is developed, and quality attributes are defined and prioritised with the usage of attribute trade off analysis method (ATAM).

Fig. 1. Decision Matrix

This method was developed to provide a principled way to evaluate a software architecture's fitness with respect to multiple competing quality attributes: modifiability, security, performance, availability, and so forth. These attributes interact, and improving one often comes at the price of worsening one or more of the others [2]. The popular cloud providers to attract clients drives them to use calculators-like tools for making the decisions. But such tools help only to calculate operational cost of the ownership cloud facilities. To make the decision of achieving quality attribute the cost benefits analysis (CBA) method is used. The prerequisite for accurate CBA is the detailed work breakdown structure (WBS). Such deliverable-oriented breakdown of a project is a key project deliverable that divides the team's work into manageable sections. The problem is that usually such work activities as multi-cloud monitoring and logging setup, multi-cloud orchestration, etc.

And finally, when the system is driven with the cost efficiency it means that this has direct impact on the other important quality, for example portability.

If looking at comparisons between the different perspectives on the decision matrix on the figure 1, it is clear that the management attributes always have negative dependencies on other attributes. This is not very surprising since improving the other attributes always carries some amount of costs [3]. It means that is the main goal is cost efficiency, the portability goal could not be achieved. It breaks the dilution that multi-cloud solution is portable by default.

Strategy for cost efficiency calculation

To make the correct work breakdown structure for multi-cloud solution implementation the product timeline should be split on the three stages discovery, implementation and each stage should be decomposed accordingly (figure 2). During the discovery phase on the initial stage the solution architecture should be developed considering major quality attributes. Driving with the cost efficiency the multi-cloud cost benefits analysis should be conducted and the multi-cloud implementation should be developed. The multi-cloud strategy will help with identification of the logging, monitoring approaches, the required security ad load testing that should be conducted during the implementation stage. There, in the discovery phase scope just after the multi-cloud strategy, the KPIs should be introduced.

Fig/ 2. Strategy of the multi-cloud implementation during product development

The total costs of implementation, configuration, integration and migration (imp) are dependent on the expenditure of time (eot) to fulfill the required tasks like implementation, configuration, integration and migration of services and data. An important cost factor in this category is the need of data porting from the customer to the provider (port). As mentioned, the providers charge their customers for inbound data transfer. The costs of the initial transfer of data to the Cloud for the purpose of system migration belong to this cost type. They are calculated by multiplying the data volume per unit (i.e. gigabyte) by the price of one unit. Some providers offer hard disk shipping services to input the customer's data. However, this approach does not focus on data volume but rather on the number of hard drives and data loading time. The cost factor "porting" is not made dependent on temporal price shifts because it is assumed that the data porting process can be completed within one period t.

Muti-cloud KPIs and optimization cycle.

The KPIs of cloud solutions are the most important metrics to measure the success of any business. They should be monitored regularly to identify any issues that might arise in the future. financial economic startup cost

Price is the first concern and KPI for tracking the effectiveness of usage of the multi-cloud approach. Different cloud providers offer different prices for different sets of features of their services. In addition to basic price of the cloud services, some cloud service providers charge extra for additional features they provide, for example, additional security features like for data storage and transfer, data encryption, firefall, etc. So it's important to carefully identify required features of the target cloud services and their prices from different cloud providers ongoingly for a better comparison [5].

Conclusions

Earlier, multi-cloud was only interesting for enterprise products. The main reason for that was its complexity of orchestration and security issues. Recently, we've started seeing a trend away from the mono-cloud approach. The new cloud-agnostic services make managing and controlling your IT systems easier than ever, and they're perfect for anyone who wants to start with a multi-cloud approach. It makes it possible for startups to start with a multi-cloud approach from day one of the product. Since the main purpose of using the multi-cloud solution is a possibility to reduce the cost of the infrastructure, it's important to start with the price comparison in the discovery stage of the product development. The multi-cloud implementation strategy and KPIs defined at this stage will provide many benefits at the operation stage. The multi-cloud control wheel makes it easy to check the effectiveness of each cloud service and, in case of more favorable pricing, migrate to a new cloud service without losing control of these KPIs.

References

[1] (2022, November 21). The Latest Cloud Computing Technology and Security | Gartner. Gartner. Retrieved November 21,2022, from https://www.gartner.com/en/information- technology/insights/cloud-strategy

[2] Kazman, R. (1998). The Architecture Tradeoff Analysis Method. Carnegie-mellon univ pittsburgh pa software engineering inst.

[3] Berander, P., Damm, L., Eriksson, J., Gorschek, T., Henningsson, K., Jonsson, P., Kagstrom, S., Milicic, D., Martensson, F., Ronkko, K., Tomaszewski, P., Lundberg, L., Mattsson, M., & Wohlin, C. (2005). Software quality attributes and trade-offs.

[4] Nadeem, F. (2022). Evaluating and Ranking Cloud IaaS, PaaS and SaaS Models based on Functional and Non-Functional Key Performance Indicators. IEEE Access, PP, 1-1.

Аннотация

Стратегия экономической эффективности, расчет стоимости внедрения мультиоблачного решения с разбивкой по конечным результатам

Основной причиной использования мультиоблачных решений является экономическая эффективность. Точность анализа затрат и выгод, который должен использоваться в процессе принятия решений, напрямую связана с подходом к расчету затрат на разработку и затрат на эксплуатацию.

В настоящее время все большее распространение получают мультиоблачные среды. Все больше компаний начинают использовать различные платформы для размещения своих данных.

По данным Gartner, к концу этого года три четверти средних и крупных компаний перейдут на такую стратегию. IDC также сообщила, что к 2022 году 90% всех компаний в мире перейдут на различные платформы для размещения своих данных.

Постановка задачи. На этапе проектирования облачного решения разрабатывается архитектура, определяются атрибуты качества и устанавливаются приоритеты с использованием метода анализа компромиссов между атрибутами (ATAM).

Этот метод был разработан для того, чтобы обеспечить принципиальный способ оценки соответствия архитектуры программного обеспечения множеству конкурирующих характеристик качества: модифицируемости, безопасности, производительности, доступности и так далее. Эти атрибуты взаимодействуют, и улучшение одного из них часто происходит за счет ухудшения одного или нескольких других [2]. Популярные облачные провайдеры для привлечения клиентов используют инструменты, похожие на калькуляторы, для принятия решений. Но такие инструменты помогают только рассчитать эксплуатационные расходы на облачные сервисы, которыми они владеют.

Для принятия решения о достижении качества используется метод анализа затрат и выгод (CBA). Необходимым условием для точного определения CBA является подробная структура распределения работ (WBS). Такая разбивка проекта, ориентированная на конечные результаты, является ключевым результатом проекта, который делит работу команды на управляемые разделы. Проблема в том, что обычно такие рабочие действия, как мониторинг и ведение журналов в нескольких облаках, оркестровка в нескольких облаках и т.д.

И, наконец, когда система работает с учетом экономической эффективности, это напрямую влияет на другие важные качества, например, мобильность.

При сравнении различных точек зрения на матрицу принятия решений на рисунке 1 становится ясно, что атрибуты управления всегда отрицательно зависят от других атрибутов. Это не очень удивительно, поскольку улучшение других атрибутов всегда сопряжено с определенными затратами [3]. Это означает, что если основной целью является экономическая эффективность, то цель переносимости не может быть достигнута. Это нарушает представление о том, что мультиоблачное решение по умолчанию является переносимым.

Выводы: Ранее мультиоблачные технологии были интересны только для корпоративных продуктов. Основной причиной этого была сложность их взаимодействия и проблемы безопасности. В последнее время мы начали замечать тенденцию отхода от моно-облачного подхода. Новые сервисы, не зависящие от облачных технологий, упрощают управление вашими ИТ-системами как никогда, и они идеально подходят для тех, кто хочет использовать мультиоблачный подход.

Это позволяет стартапам использовать мультиоблачный подход с первого дня разработки продукта. Поскольку основной целью использования мультиоблачного решения является возможность снизить стоимость инфраструктуры, важно начать со сравнения цен на этапе поиска продукта. Стратегия внедрения мультиоблачных технологий и ключевые показатели эффективности, определенные на данном этапе, обеспечат множество преимуществ на этапе эксплуатации. Колесо управления несколькими облаками позволяет легко проверить эффективность каждого облачного сервиса и, в случае более выгодных цен, перейти на новый облачный сервис, не теряя контроля над этими ключевыми показателями эффективности.

Ключевые слова: показатели качества, мультиоблачные технологии, анализ затрат и выгод, экономическая эффективность, WBS.

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