Justifying capacity management by demonstrating the ROI - Final thoughts ( 5 of 5)

If you've been following my series then you'll know that more often than not the Justification for doing Capacity Management will involve showing a return on investment.

 

Doing this can be difficult with so many variables involved but is worth the effort as it proves and strengthens your case.

In my last blog I outlined some key variables that should be included in your analysis, and have given you examples of two spread sheet models that utilize those variables.

Doing Capacity Management is worth the effort, and demonstrating your argument with numbers will help you to show the quantifiable gains to the business.

 

Read some of our Client success stories.

http://www.metron-athene.com/_downloads/case-studies/index.html

Dale Feiste
Principal Consultant

Justifying capacity management by demonstrating the ROI - what variables are key to determining ROI? ( 4 of 5)

Today I'd like to look at what variables are the key to determining ROI.

 

Below is a fairly comprehensive list for a cost/benefit analysis:

 

•      Resource utilizations

 

•      Growth in resource utilizations ( need for historical data)

 

•      Count of hardware/software assets

 

•      Cost of hardware/software assets

 

•      Maintenance cost for hardware

 

•      Capacity related incidents

 

•      Average cost of incidents

 

•      Risk of capacity related incidents

 

•      Capacity related labor costs

 

Component ROI model and cost benefit analysis

The examples below show basic spread sheets where you put in your numbers and variables to calculate ROI.

 

 

 

 

On Friday I'll summarize and offer some final thoughts. This topic is available as an on-demand webinar, simply join our community to download your copy.http://www.metron-athene.com/_downloads/on-demand-webinars/index.html

 

Dale Feiste

Principal Consultant

 

 

Justifying capacity management by demonstrating the ROI - why a Capacity Management Tool is necessary ( 3 of 5)

Capacity Management offers scope to deliver high value returns 

Years ago there was the mainframe and life was relatively simple, an example of a mainframe report used to manage resources is shown below.

 

 

 

Nowadays the complexity of environments demands that automated reporting be used as there are so many more components to look at.

 

            

 

Automation of reporting across the environment makes the task of Capacity Management more manageable.

 

A Capacity Management tool should be able to pull data from across all platforms to one central database.

 

It’s important to have the same look and feel to reports and reporting across the Enterprise. Rather than using a myriad of point solutions it is more effective to consolidate your Capacity Management on to one tool.

 

 

Data comes in to our Capacity Management solution athene® from all different data sources and this over-arching view is what adds real value to the business.

On Wednesday I'll be examining what variables are key to determining ROI.

 

Dale Feiste

Principal Consultant

Justifying capacity management by demonstrating the ROI - Unmanaged capacity ( 2 of 5)

Today I'll be talking about indicators of unmanaged capacity, signs to look out for that will help with your justification. 

If you don’t know pro-actively when resources are going to run out of capacity then that capacity is unmanaged.

 

Indicators will manifest in the following ways:

 

•      Capacity related incidents

•      Reactive mode of operation for capacity incidents

 

•      Lack of visibility into system resource utilization

 

•      Poor performance that is the norm

 

•      No ownership of capacity concerns

 

•      Using excessive hardware to ensure capacity

Use these indicators and relate them back to the cost to the business. 

On Monday I'll be discussing why there is a need for a Capacity management tool in modern environments.

Dale Feiste
Principal Consultant

Justifying capacity management by demonstrating the ROI (1 of 5)

When justifying Capacity management being able to show value is critical for success and over this series I'll look at ways in which Capacity Management brings value to the Enterprise.

 

 

Let’s start with a definition of Return on Investment.

 

One definition of ROI...

"For a given use of money in an enterprise, the ROI (return on investment) is how much profit or cost saving is realized. An ROI calculation is sometimes used along with other approaches to develop a business case for a given proposal.”

Capacity Management can help you to prevent Infrastructure Sprawl, it helps you to answer questions such as:

 

 

•      How much of the infrastructure is being used  efficiently?
 

•      How do you define efficient, and does it apply  uniformly?

•      Which systems will run out of capacity?
 

•      What visibility is required to make it run  efficiently?
 

On Friday I'll be looking at indicators of unmanaged capacity, you can use these to help with your cost justification.

 

Dale Feiste

Principal Consultant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FREE Webinars on cutting edge Capacity Management topics

In these cost conscious days it is a blessing to come across something for nothing and we will kick off our new webinar series this Fall, covering a host of new topics and all for free.

Our previous webinar season proved to be extremely popular with 1000’s of attendees from across the globe.

You don’t have to be a client to come along, everyone is welcome and we find that many people attend every event in the series!  The Q&A element of each session provides you with the opportunity to hear first-hand about the Capacity Management concerns of other people and even talk directly with them about their experiences.

Our free webinars focus on current day issues in Capacity and Performance Management covering Big Data, SAP ,Oracle, Virtualization, Storage and much more.  A wide range of topics with a sharp focus purely on Performance and Capacity issues – come and listen to the experts and network with your peers.

The season begins on September 12 with Dale Feiste hosting ‘Capacity Management for Big Data’, the first in a two-part series - registration for all events in the series is open now.
http://www.metron-athene.com/services/training/webinars/index.html

Rich Fronheiser
Chief Marketing Officer