Software Licensing for Grid and IT Utility Kosmas

Software Licensing for Grid and IT Utility Kosmas Kitsos Hewlett Packard Greece Customer Solutions Group April 2005 © 2005 Hewlett-Packard Development Company, L. P. The information contained herein is subject to change without notice

How does one buy an IT Utility? IT Tap What do I buy, who from, and how much? IT Switch 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? Will IT look like this…? April 2005 Hewlett-Packard - EGEE 2

Buying Holistic Utility Computing (cont) …or THIS? ? ? With so many IT vendor participants, it could be very confusing! April 2005 Hewlett-Packard - EGEE 3

The Utility Computing Spectrum (IDC) – there isn’t only one type of “Utility” Utility Services; Managed Services Purchase Virtual Computing i. CAP/Ti. CAP Lease/PPU On Demand, Metered Computing capacity “Partial, ” Transitional Utility Computing Model Flexibility Unforecast usage: (Unplanned extra capacity) Forecast usage: (Planned extra capacity) Lease “Comprehensive, ” Mature Utility Computing Model Externalize Purchase Insourcing Complexity IDC: European Utility Computing, Forecast and Analysis, 2003 -2008 (Aug 2004) #RIO 8 L April 2005 Hewlett-Packard - EGEE 4

Gartner Infrastructure Maturity Model (2004) So what does licensing look like here? April 2005 Hewlett-Packard - EGEE 5

Licensing Nirvana • • 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 April 2005 Hewlett-Packard - EGEE This industry is probably not ready for this 6

Dimensions of an Agile Licensing Model Agile or Flexible licensing could get complicated – so start simple April 2005 Hewlett-Packard - EGEE 7

Simple economics – manufacturing fixed vs. variable costs Revenue Variable Costs Fixed Costs Net: Lower costs. Now, let’s apply to licensing… April 2005 Hewlett-Packard - EGEE 8

License provisioning vs. peak loads Does this look familiar? CPU/Resources Expensiv e “Idleware” or SLA Time April 2005 Hewlett-Packard - EGEE How do licenses map to grid use? 9

Example Hybrid Licensing model – flexibility to begin the journey • Simple approach & economics • Proposal: 1. Buy the right number of perpetual CPU licenses for steady-state usage (fixed-costs) 2. 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 10

Fixed vs. variable licensing: A combination for Agility CPU/Resources Permanent licenses for steady-state usage Pooled or floating licenses for temporary use or peak loads Time This is how hardware virtualization works, why not software? Could this work for you? April 2005 Hewlett-Packard - EGEE 11

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 • April 2005 Do you know what resources are being used and how much? During steady-state versus peak loads? Hewlett-Packard - EGEE 12

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 13

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 14

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