How to implement a Profitable Chargeback Model in the Cloud

Session Date and Time: Day 2 March 24 13:00pm EST (10:00am PST) (30min)
Keywords: chargeback, cost visibility, utility computing, chargeback models, cloud hosting.
Authors: Alex Bakman, VKernel.
Abstract: In the cloud, you really want to charge your customers on utilization of resources. Customer needs are very dynamic so it has to be run like utility computing. Old paradigm of charging customers per physical box or per VM really no longer applies. The old model is not going to scale. Customers do not want to pay for resources that they do not use. The fundamental promise of the cloud is that customers can dynamically request more resources, and allocate and de-allocate resources. At the end of day, a model that charges people for the actual resource utilization is the only sane business model.

In this session you will learn about how to:
• calculate the cost of resources
• gain resource consumption visibility
• gain cost visibility
• allocate expenses
• measure utilization of resources
• create a profitable cost recovery model

Several models for doing chargeback such as capacity utilization and capacity allocation types of models that facilitate dynamic metering will be explored. It will outline how to create a chargeback model that produces a predictable profit margin.

Alex Bakman Founder and Chief Techinology Officer Alex is the founder and CTO of VKernel, providing the leadership and direction for the company. He is a serial entrepreneur with interests in Information Security and Audit, Compliance, Virtualization, and Online Marketing. Prior to VKernel, Alex founded Ecora Software (over 3,500 customers) and CleverSoft ($12 million in revenue), a software company acquired by Candle Corporation. Alex is a recognized expert in computer security, virtualization, and systems management. He holds many US and international patents and is a frequent speaker at VMWorld, ISACA, TechEd, ITSMF, and ITExpo. Alex graduated magna cum laude with a Bachelor of Science degree in computer science and a minor in business administration from the American University in Washington D.C.