As more and more private clouds are deployed, organizations will face the
requirement to implement chargeback or at least show back. Key to
implementing chargeback is setting the chargeback rate. Much as pricing
significantly impacts a public cloud provider, for the private cloud
provider, the chargeback rate has significant implications. This article
examines three strategies for setting prices for private cloud operators.
Setting Prices
Public cloud operators, or for that matter any business selling a product,
set pricing based on the pricing triangle. The triangle contains three key
balance points for pricing a product:
Product or Service Cost - unless you are selling something as a loss leader,
price is generally set above cost. The greater the delta between cost and
price, the higher the margins. Determining the cost of IT services can be
challenging but, in ge... (more)
Organizations that are seeking to deploy cloud-based business models for
their infrastructure face unique capacity management challenges. This article
will review these challenges to enable cloud providers, either public or
private, to avoid the pitfalls of improper capacity management. While the
article discusses both types of clouds, the needs of private cloud providers
will be especially highlighted due to the unique challenges they face with
this business model.
IT Becomes a Business within a Business
For years, we have been hearing "IT must behave more like a business." A
... (more)
Any data center with a virtualized environment has a real need for effective
capacity management. This article discusses the reasons why capacity
management is critical to achieving the benefits of server virtualization and
outlines the three key requirements to consider when evaluating capacity
management systems.
Why Capacity Management in Virtualized Environments
A major advantage of virtualized environments is their ability to improve
resource utilization by running multiple virtual machines (VMs) on the
physical servers in a shared infrastructure. With such an architecture, ... (more)