vRealize Business

Pricing Policies in vRealize Business for Service Costing, Service Pricing & Showback in a Hybrid Cloud

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Once you know your “Cloud Services Cost” then people who are responsible for marketing or promoting the private cloud with in organisation will be tasked with setting up “Cloud Service Price” to present the “Showback” to the internal “Business Units” based on their consumption. Showback not only helps business to become more accountable and aware of their cloud spending but also makes it easier for the IT to recover its cost in private cloud investment.

vRBC allow you to achieve this using “Pricing Policies”. The polices are very flexible & can be uniquely configured for each infrastructure provider or application in your hybrid cloud environment.

For example, every cluster/resource pool in vCenter or a reservation/blueprint in vRealize Automation or a service in AWS can have a different pricing policy.

Service pricing (VM Charge) in vRealize Business is based on consumption i.e. business is only charged only for the uptime of their services or virtual machines in each month.

Also, it is important to note that by default pricing is based on fixed hardware configuration of the virtual machines and does not vary with utilization. But with vRBC 7.3 you can also modify pricing method based on “Allocation” or “Utilization”.

Go to Administration–> Business Management to modify your pricing strategy

Allocation or Utilization based Pricing

Let’s see how these pricing policies work.

Once you integrate vRBC with your vCenter, vRealize Automation or public cloud service accounts, it does an initial inventory collection. Post which, all the virtual machines discovered by vRBC are first analyzed and matched to an existing pricing policy. How each virtual machine will be mapped to a pricing policy bucket is decided by the rank of the policy.

vRBC Pricing Policies

vRealize Business “Pricing Polices” are ranked according to the following order of precedence for each end-point type.

Pricing Policies Ranking

vRBC Policy Ranking

Polices ranking is used whenever there is a conflict and a VM can be mapped to 2 or more policies. For example, a “vCenter Cluster” may also be a “Reservation” in vRA, in this a case VM which is provisioned by vRA on this reservation/cluster can be part of both “vCenter” as well “vRealize Automation” pricing policy.  But as vRealize Automation pricing policies take higher precedence in ranking it will be grouped as part of vRealize Automation pricing policy.

Custom Policies

For each of the endpoint type “Custom Policies” takes highest precedence, and they are used when you do not want to use the default grouping done by the vRBC, for instance as in the above case if wish to group all your virtual machines on a vCenter Cluster into a single policy it will not be possible by default as some VM will be captured by vRealize Automation policy because cluster is also part of a reservation in vRA. In such situation, you can create a custom policy for the given cluster and it will take precedence over the vRA policy.

Add a New Custom Policy

 

Modify the Identification for the Custom Policy
Select Infrastructure Type as vCenter Cluster

Catch All Policies

Usually you will not see any VM under this policy but in specifics scenarios if a VM is not covered by any of active policies then it will be captured by “Catch All Policies”, for instance if you make the previously created custom policy “Inactive” then all the virtual machines belonging to the policy will become part of a “Catch All Polices”

Cross Infrastructure Policies

 If you want to include some additional charges across all the polices you are actively using in your environment then this policy can be used. For example if you want to include a server antivirus fee across all the VM irrespective of whether they are provisioned by vRA or vCenter

Creating a Cross-Infrastructure Policy

You can add  the ” Additional Charges” as a fixed cost or % of any of the existing costs.

Policies Group Configuration

Once a VM is attached to a policy based on its rank, it is then grouped inside the policy based on the supported groping or categorization. You can  modify how you want to group your workload within those policies, for example you can charge your customer in vRealize Automation either based on the type of Blueprints (SQL Database, Apache Web server) they are consuming or type of Reservation they are using (Gold, Silver etc).

vRealize Automation Compute Grouping Options.

vRealize Automation Storage Grouping Options.

vCenter Grouping options.

Depending on the number and type of private and public cloud end points you are using you can have following grouping choices for your environment

Policy Grouping Options in vRBC

Modifying Cloud Service Price.

vRBC calculates and uses a default per vCPU and per GB of RAM price for you based on the Running cost. But you can modify these daily prices based on your pricing strategy and recovery margin you want for your cloud services. Again, you can change your price calculation preferences.

Go to Administration–> Business Management –>Calculation Preferences–> Price Update Strategy

Pricing Policies Updation Preference

The default option is “Manual” which means the first-time prices are based on running cost and can be modified as desired. In the “Auto” mode prices are auto-populated every day based on the changes in running cost and cannot be manually modified.

CPU & Memory daily running cost.

If you edit any of the pricing policy, you will notice that there is a default running cost for CPU and Memory. It is daily cost of running single vCPU and per GB of RAM on a cluster or a reservation.

Modifying Running Cost in a Pricing Policy

This is calculated using CPU and Memory base rate we calculated previously for each cluster while also considering the uptime of the virtual machines on that cluster.

vCPU Running Cost = (CPU Cost of all VM’s/Total No of vCPUs of all VM)*uptime of VM in a month

Memory Running Cost = (Memory Cost of all VM’s/Total amount of RAM for all VM)*uptime of VM in a month

Because VM uptime is multiplied for calculating running cost, you may notice if currently there are no VM’s running on a cluster/reservation this cost will be zero

But as I said in a manual mode you can modify these daily prices based on your pricing you want to showback or charge from your consumers.

Prices can be modified for each policy

  • Per vCPU daily
  • Per GB RAM daily
  • Per GB Storage daily

Additional Charges

You will notice that there are additional charges apart from the CPU, RAM and Storage.

Adding Additional Charges in a Pricing Policy

These additional charges are the “Labor Cost” for OS and Virtual Infrastructure, which we have defined during the “Private Cloud Expense” calculation.

vRBC computes the average VM labor costs and OS labor costs for all VMs in a cluster, and add then these additional charges for that cluster. You may also define any additional charges apart from these 2 labor cost.

Public Cloud AWS EC2 & Amazon Web Services & Azure

Any VM which is provisioned by vRA on AWS will be priced as per the “vRealize Automation Policy”. But for native AWS and EC2 instances, AWS pricing policies can be modified based on

  • Amazon Account
  • Amazon Instance Type
  • Amazon Service Name
Modifying Pricing Policies for Amazon EC2 Instances

 

Modifying Pricing Policies for Amazon Web Services

Similarly, for Azure pricing policies can be defined and modified based on.

  • vRealize Automation: For virtual machines deployed by vRA
  • Azure VM: For virtual machines which are deployed directly under each service account/contract.
  • Azure Service:

In Summary vRealize Business for Cloud by default uses auto-generate pricing policies to increase your time to value and these policies are based on your overall Private Cloud Expense and Running Cost calculations. But if you wish to price your cloud services with specific recovery targets and recovery time then you can modify these pricing policies for both private as well as public cloud services you are providing to your business.

vRealize Business for Cloud 7.3.1

Introduction

Private Cloud Expense Calculation

Virtual Machine Unit Cost Calculation

Pricing Policies

Cloud Consumption & Showback

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