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News: Paradigm Shift in Cost Structure and its Risk in Public Cloud Environments

  1. Today, many decision makers tend to favor public cloud environments over their own data centers. Often, the reason is easier and quicker scaling to cover daily or seasonal peaks and it sounds promising to be the cheaper way. However, it’s just different means of paying the bill, which is at first glance financially attractive. If we have a closer look, it turns out to be quite an issue, especially for financially responsible folks: it becomes more complex and less predictable. Let’s have a look at the paradigm shift and how the current approach in enterprise data centers compares to running your business in the Public Cloud: read the full article...

  2. Those familar with cost mgmt (my first area of study before switching to computer science) will release that with such a fundamental shift in "cost structure" that one also needs a fundamentally different way of managing such cost. Today that is activity based costing. But that is still not sufficient because we want to not only manage cost but performance and capacity and this is where activity based metering comes in which delivered in 2008!!!

    This article gives you a glimpse into what it means to apply activity based metering to software execution.

    http://www.jinspired.com/wp-content/uploads/2011/11/HowToMeterAnythingAPrelude.pdf

    In JXInsight/OpenCore 6.3 release in Jan of this year we went far beyond metering by offering an usage detail record (UDR) metering extension that integrates with various billing backends (remember billing != metering). We even extended UDR's to metrics as well as metering. This article fleshes this out further.

    http://www.jinspired.com/wp-content/uploads/2012/01/UDRProbesAndMetricsProviders.pdf

    Well after 5 years pushing for greater cost and control to be more integrated into the management of applications and services in the cloud its nice to see that dynaTrace is again following our lead and confirming our vision was indeed right along though admitedly it was far ahead of its time.