Software Licensing for Grid and IT Utility Presentation Title Software Licensing for Grid and IT Utility Kosmas Kitsos Hewlett Packard Greece Customer Solutions Group April 2005

How does one buy an IT Utility? Presentation Title How does one buy an IT Utility? What do I buy, who from, and how much? How do I buy/pay for it? What happens behind the scenes? (Or do I want to know?) Should it matter how/why I consume the “utility”? Where’s the meter? IT Tap IT Switch Will IT look like this…? April 2005 Hewlett-Packard - EGEE

Buying Holistic Utility Computing (cont) Presentation Title Buying Holistic Utility Computing (cont) ? …or THIS? ? With so many IT vendor participants, it could be very confusing! April 2005 Hewlett-Packard - EGEE

The Utility Computing Spectrum (IDC) – there isn’t only one type of “Utility” Presentation Title Utility Services; Managed Services Purchase Virtual Computing iCAP/TiCAP Lease/PPU On Demand, Metered Computing capacity “Partial,” Transitional Utility Computing Model Unforecast usage: (Unplanned extra capacity) Forecast usage: (Planned extra capacity) Flexibility Lease Externalize “Comprehensive,” Mature Utility Computing Model Purchase Insourcing Complexity IDC: European Utility Computing, Forecast and Analysis, 2003-2008 (Aug 2004) #RIO8L April 2005 Hewlett-Packard - EGEE

Gartner Infrastructure Maturity Model (2004) Presentation Title So what does licensing look like here? April 2005 Hewlett-Packard - EGEE

Licensing Nirvana This industry is probably not ready for this Presentation Title Own nothing Pay only for what’s used Tariffs for usage Auction for peak loads Metered usage based on: Business processes Rush-hour pricing Locale discounts Over-forecast penalties Simple and automated payments This industry is probably not ready for this April 2005 Hewlett-Packard - EGEE

Dimensions of an Agile Licensing Model Presentation Title Agile or Flexible licensing could get complicated – so start simple April 2005 Hewlett-Packard - EGEE

Simple economics – manufacturing fixed vs. variable costs Presentation Title Revenue Variable Costs Fixed Costs Net: Lower costs. Now, let’s apply to licensing… April 2005 Hewlett-Packard - EGEE

License provisioning vs. peak loads Presentation Title Does this look familiar? Expensive “Idleware” or SLA How do licenses map to grid use? CPU/Resources Time April 2005 Hewlett-Packard - EGEE

Example Hybrid Licensing model – flexibility to begin the journey Simple approach & economics Proposal: Buy the right number of perpetual CPU licenses for steady-state usage (fixed-costs) Buy a pre-paid shared pool of CPU licenses (e.g. 30 CPU-days) for peak loads and/or unpredictable usage. (variable-cost allocation) Not “pure utility”, but flexible and “good enough” Provide cost benefit to the user -> “pull” effect April 2005 Hewlett-Packard - EGEE

Fixed vs. variable licensing: A combination for Agility Permanent licenses for steady-state usage Pooled or floating licenses for temporary use or peak loads CPU/Resources Time This is how hardware virtualization works, why not software? Could this work for you? April 2005 Hewlett-Packard - EGEE

It’s a journey – where to begin? Mostly steady usage, with some peak loads Ratio (steady to peak) Sharable resources – across partitions, servers, cluster, “grid” Examples: Software development, monthly roll-ups Mostly steady usage, with unpredictable peaks Steady Growth or high usage? More fixed Share across partitions Low usage? Use “soft partitions” or VMs Ask your ISV to recognize them Utilize WLM for SLO Do you know what resources are being used and how much? During steady-state versus peak loads? April 2005 Hewlett-Packard - EGEE

Hewlett-Packard - EGEE Going forward… HP is a leader in the Adaptive Enterprise, Utility Computing, and Grid solutions, and… …is socializing “Utility” Licensing with customers and partners… …to deliver the best holistic and agile solutions. April 2005 Hewlett-Packard - EGEE

Hewlett-Packard - EGEE Summary It’s all about economics Not all IT needs to be a fixed cost – it’s variable too! “Utility” Licensing can get complex for both customers and vendors alike Consider flexible licensing that’s “good enough” and provides value It’s not for Grid only, but other computing styles as well. Begin the journey What’s next for you? Tell us (HP and partners) what you need April 2005 Hewlett-Packard - EGEE

Hewlett-Packard - EGEE Presentation Title END April 2005 Hewlett-Packard - EGEE