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Consumption Analytics Documentation

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Billing model overview

The general FC billing model operates as follows:

  1. An FC customer commits to consuming a resource and paying for a minimum level of that resource each month. This is the committed capacity.
  2. HP installs resources to satisfy the committed capacity and also provides buffer capacity to accommodate bursts. The total initially delivered capacity is referred to as requested capacity.
  3. HP meters billable resources at a customer’s site one or more times per day and sends this information to Cloud Cruiser.
  4. Cloud Cruiser computes the monthly average utilization of billable resources by dividing the total daily usage in that month by the number of days in that month. 
  5. Cloud Cruiser compares the average utilization to the committed capacity, and charges for the greater of the two values. This charge action is run daily. The charged amount is carried forward to the next billing period, as defined by the FC customer’s deal (Basic or Premium).

Cloud Cruiser computes the average utilization on a daily basis by prorating the daily usage by the number of days in the relevant billing period. Consequently, a resource that comes online mid-month has its usage calculated as if it were present for the full month, with zero usage for the month-to-date. Cloud Cruiser accounts for months with different numbers of days, including February in leap years.

Basic deal

With a Basic deal, billing only changes if it needs to grow. If an FC customer’s average usage for the period exceeds their committed capacity in a billing period, the consumed amount becomes the new committed capacity permanently, starting with the current billing period.

Premium deal

With a Premium deal, committed capacity can both grow and shrink, according to actual usage.

If an FC customer exceeds committed capacity in a billing period, the consumed amount becomes the new committed capacity starting with the current billing period, just as with a Basic deal.

In the next billing period, if the FC customer does not use all of the new committed capacity, the committed capacity will be automatically adjusted lower, toward the original value. However, any downward reduction to the committed capacity is gradual. The reduction is based on the maximum invoiced amount for the past three months and the max_shrink property (typically 10%).

Month-to-month, if average utilization is less than committed capacity, the committed capacity for the next billing period will be the greater of the original committed capacity or the max_shrink percentage of the maximum utilization during the prior three months.

The following table is an example of a 12-month cycle where committed capacity for storage changes over time based on actual usage. In this example, 500 GB is requested and the committed capacity % is 70%, so the the initial committed capacity is 350 GB. The max_shrink property is 10%. In this example, a three-month high is used in calculations to determine downward-adjusted committed capacity.

Month Usage (in GB) Invoiced capacity (in GB) Notes
1 450  450 Initial committed capacity is 350 GB.  However, the usage in month 1 is higher than the committed capacity, so invoiced capacity is based on this usage, not committed capacity.
2 100 405

Usage is well below the committed capacity, so the committed capacity for period 2 will be the maximum invoiced capacity from the previous three months (in this case, just month 1), reduced by the value of the max_shrink property (10%).

10% of 450 is 45
450 - 45 = 405

3 100 405 Usage is below the committed capacity. However, the maximum invoiced capacity from the previous 3 months (in this case, months 1 and 2) is 450, so the committed capacity for period 4 remains the same (10% of 450).
4 100 405 The previous three-month high for invoiced capacity is still 450, so although usage is below the committed capacity for period 4, the committed capacity for period 5 remains the same (10% of 450).
5 100 365

Usage remains low, and the three-month high for invoiced capacity is now 405. The committed capacity for period 6 will be adjusted downward.

10% of 405 is 40.5
405 - 40.5 = 364.5 (rounded to 365)

6 100 365 Usage remains below the committed capacity. However, the maximum invoiced capacity from the previous 3 months is 405, so the committed capacity for period 6 remains the same (10% of 405).
7 100 365 The previous three-month high for invoiced capacity is still 405, so although usage is below the committed capacity for period 6, the committed capacity for period 7 remains the same (10% of 405).
8 100 350 Usage remains low, and the committed capacity is adjusted downward to the minimum (350).  It will not go below the original committed capacity based on requested * committed capacity%.
9 100 350 The minimum committed capacity remains in place.
10 1200 1200

The minimum committed capacity (350) remains in place.  However, the usage in month 10 is higher than the committed capacity, so invoiced capacity is based on this usage, not committed capacity.

11 200 1080

Usage is again low, so the committed capacity is reduced by 10% of the three-month high.

10% of 1200 is 120
1200 - 120 = 1080

12 200 1080 Though usage is low, the maximum reduction of 10% per three-month period has been reached, so the committed capacity for period 12 remains the same.

Non-standard services

Although most services in the FC environment operate on the requested capacity model, not all are bound by minimum monthly commitments. These can be accounted for in the charging process by omitting committed capacity parameters, as described in Creating rate plans.

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