AWS Summit 2013 | Auckland - Optimizing Your AWS Applications and Usage to Reduce Costs

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Many customers choose AWS because they need a highly reliable, scalable, and low-cost platform on which to run their applications. Low “pay only for what you use” pricing and frequent price decreases …

Many customers choose AWS because they need a highly reliable, scalable, and low-cost platform on which to run their applications. Low “pay only for what you use” pricing and frequent price decreases are just the beginning of how AWS can help you optimize your usage and achieve lower costs. In this session, you will learn about a few simple tools for monitoring and managing your AWS resource usage that you can start using right away, as well as some innovative features that can help you operate at lower costs programmatically. Cost allocation reporting, detailed usage reports, billing alerts, EC2 Auto Scaling, Spot and Reserved Instances, and idle resource detection are just a few of the tools and features we will cover.

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  • 1. Boyd McGeachieOptimizing Your AWS Applications and Usage to Reduce CostsAccount Manager, AWSBen PowlesGeneral Manager, FishpondGuest presenter:
  • 2. Agenda• Objective– Review the spectrum of ways to save money on your AWS application• Tenet: Fit the cloud to your product and business model– Use Only What You Need (and pay only for what you use!)– Measure and Manage– Scale Opportunistically• Customer Case Study– Fishpond
  • 3. Use Only What You NeedAnd pay only for what you use!
  • 4. Scale on demandRigid On-Premise ResourcesWasteCustomerDissatisfactionActual demandPredicted DemandCapacityTimeElastic Cloud ResourcesActual demandResources scaled to demandCapacityTimeVS
  • 5. Use only what you need: AWS cost savings opportunities• Right-size your cloud resources– Improve performance: reduce churn, underutilization, bottlenecks– Lower costs: maximize your output per dollar, don’t pay for performance you don’trequire• Fit your payment model to your business model– Is there a level of predictability?– Use a portfolio of payment models• Measure and manage your application and cloud resources– Monitor your applications to identify new savings opportunities
  • 6. Right-size your cloud resources: broad EC2 selection• An instance type forevery purpose• Assess your memory& CPU requirements– Fit your applicationto the resource– Fit the resource toyour application• Only use a largerinstance whenneeded
  • 7. Fit your payment model to your business model: EC2 pricing plansOn-DemandInstancesReservedInstancesSpotInstancesPay as you go for computingpowerFlat hourly rate, no up-frontcommitmentsPay an up-front fee for acapacity reservation and a lowerhourly rate (up to 72% savings)1- or 3-year termsRI Marketplace: sell RIs you nolonger need; buy RIs at adiscountPay what you want for spare EC2capacity: your instances run ifyour bid exceeds the Spot pricePotential for large scale at lowcost: When they’re available,take advantage of 1,000s of SpotInstances at up to 90% savings10:0010:0510:1010:15
  • 8. Use a spectrum of payment modelsFor example:Frontend Applicationson On-Demand/Reserved Instances+Backend Applications*on Spot Instances* e.g., batch video transcoding
  • 9. Reserved Instance Marketplace: Buy and Sell Your RIs• Benefits for Buyers:– Same underlying EC2 hardware– Buy RIs at a discount from AWS price– Increased selection of term lengths &prices• Benefits for Sellers:– Moving to a new AWS region– Changing your instance type– Switching operating systems– Selling capacity when project ends
  • 10. Optimize your storage choice too: S3 & Glacier• S3 and Glacier are both:– Secure– Flexible– Low-cost– Scalable: over 2 trillion customer objects– Durable: 99.999999999% (11 “9”s)AmazonGlacier
  • 11. Difference?Simple Storage Service (S3)– Designed to serve static content at high volumes, low latency, frequent access– 10.5¢ to 5.5¢ depending on volume and regionGlacier– Designed for long-term cold storage: infrequent access, long retrieval times (3-5hrs)– Extremely low-cost: 1¢ per GB-monthIllumina, the leading provider of DNA sequencinginstruments, uses Glacier to store large blocks ofgenomic data all over the world
  • 12. Measure and Manage“If you cannot measure it, you cannot improve it.”- Lord Kelvin
  • 13. Overview of AWS Monitoring and Management Services• AWS provides detailed cloud monitoring and management– Consolidated Billing (see “Account Activity” navigation panel)– CloudWatch (see AWS Management Console)– Billing Alerts (see “Account Activity” navigation panel)– Trusted Advisor (see “Support Center”)– Other APIs: tags, programmatic access, etc.• 3rd party services are also available
  • 14. Consolidated Billing: Single payer for a group of accounts• One Bill for multiple accounts• Easy Tracking of account charges(e.g., download CSV of cost data)• Group Activities by PayingAccount (e.g., Dev, Stage, Test,Prod)• Volume Discounts can be reachedfaster with combined usage• Reserved Instances are sharedacross accounts (including RDSReserved DBs)• AWS Credits are combined tominimize your bill
  • 15. Amazon CloudWatch• Overview– Monitoring for AWS cloud resources and applications• AWS Resources: EC2, RDS, EBS, ELB, SQS, SNS, DynamoDB, EMR, Auto Scaling…• Custom metrics from your application (use Put API call)– Gain insight, set alarms and notifications, react immediately– Start using within minutes, auto-scale with your application• Sophisticated Automation– Use CloudWatch metrics with Auto Scaling to dynamically scale EC2 instances
  • 16. Use CloudWatch to monitor & manage resource usage• Monitor your resource utilization– Are you using the right instance type?– Have you left instances idle?– Is your instance usage level or bursty?• Manage your resource utilization– Move bursty workloads to other instances– Rebalance your worker nodes– Scale nodes automatically with Auto Scaling
  • 17. Use CloudWatch to create Billing Alerts• Billing Alerts notify you when estimated charges reach a given threshold• Use Billing Alerts to track an individual developer, or your whole business• Easily setup your billing alarm and actions
  • 18. Trusted Advisor: Enterprise Strength Monitoring/Optimization• Monitors and recommendsoptimizations for:– Cost– Security– Fault Tolerance– Performance• Available to customers withBusiness and Enterprise-level support
  • 19. Trusted Advisor: Cost Optimization Tips
  • 20. 3rd party services to optimize your AWS usage
  • 21. Scale OpportunisticallyOpportunity favors the prepared application
  • 22. • Auto Scaling auto-sizes your cluster based on preset triggers and schedules• Integrates with CloudWatch metrics• Use Auto Scaling to– Improve customer experience, application performance– Maximize CPU/IO/Memory utilization– Optimize other metricsUse Auto Scaling to dynamically scale your appScale with Real-Time Demand
  • 23. Auto-Scaling Example: Netflix
  • 24. Follow the Money vs. Follow the Customer• Optimize utilization– Auto Scale on utilization metrics: CPU, memory, requests, connections, …• Optimize price paid– Scale with Spot instances when Spot prices are low– e.g., Run batch processes off-peak (nights, weekends) when Spot prices are lower
  • 25. Follow the Money vs. Follow the Customer• Optimize customer experience with Auto Scaling• Example 1: Scale resources to meet customer demand– Video service Auto Scales instances to respond to customer web service requests• Example 2: Scale resources to ensure fresh results– A scientific paper search engine Auto Scales on queue depth (# of new docs to crawl)– 10 instances steady state and up to 5,000+ to ensure minimum throughput time• Example 3: Scale resources preemptively before large demand– A TV show marketing site scales up before the show and back down after
  • 26. Cost-Saving Examples• Achieve potentiallylarge savings byprofiling yourapplication andpaying only forwhat you need:Base Case Savings ExamplesYou run 10 m3.2xlarge’sOn-Demand 24x7:10 instancesX $1.00/inst-hoursX 24 hours/dayX ~30.5 days/month= $7,320/monthIf you need to run 100% of the time, indefinitely:10x 3-yr Heavy RIs @ 100% Utilization= $2,731/month (63% savings)If you can layer RIs and On Demand to meet demand:4x 3-yr Heavy RIs @ 100% Utilization4x 3-yr Light RIs @ 15% Utilization2x On-Demand @ 5% Utilization= $1,843/month (75% savings)If you Auto Scale from 2 to 10 instances aroundprimetime TV (6-11pm, Mon-Fri):2x 3-yr Heavy RIs @ 100% Utilization8x 3-yr Light RIs @ 15% Utilization= $1,683/month (77% savings)If you can use 40x Spot Instances at 25% up-time:= $840/month (89% savings)
  • 27. Time-to-Result Case 1: Value of result quickly diminishesExample:EngineeringsimulationDelay  Loss ofproductivity,project slips
  • 28. Time-to-Result Case 2: Result is valuable…until it’s notExample:Weekendregression testsDelay  Minimalimpact until8:00AM Monday
  • 29. Consider Spot Instances for greater savings and scale• Spot in a nutshell– Spot instances run when Your Bid ≥ Spot Price– Spot instances = Spare EC2 instances– Spot instances might be interrupted at any time• Benefits– Savings: Up to 90% off On Demand– Scale: Access up to 1,000s of EC2 instances• To use Spot– Decide on a bid price– Launch via Console, API, Auto Scaling– Monitor Bid Statuses via Console/API
  • 30. What applications work on Spot?• Good Spot applications are:– Delayable: to balance SLA/cost– Scalable: “embarrassingly parallel”– Fault-tolerant: can be terminated without losing all work– Portable across regions, AZs, instance types• Examples:– MapReduce (Hadoop, Amazon EMR)– Scientific Computing (Monte Carlo simulations)– Batch Processing (video transcoding)– Financial Computing (high-frequency trading algorithm backtesting)– and many others…Lucky Oyster crawled 3.4B Web Pages,building a 400M entry index in around14 hours for $100 (>85% savings)!
  • 31. Ben PowlesGeneral Manager, Fishpond
  • 32. Fishpond today• $100m turnover.• Profitable.• 80% of revenue is exports.• Largest online book retailer in Australasia
  • 33. Fishpond today• Values based organisation.• Team of 75.• Located in Auckland, Europe, and Middlemarch.• Ship to over 100 countries worldwide.
  • 34. Fishpond today• 13 million products available to purchase.• 14 major categories.• Over 350 suppliers.
  • 35. Fishpond today• Sell something every 7 seconds.• Add a new customer every 51 seconds.• 5.3 page views every second
  • 36. Working with AWS - cost
  • 37. Working with AWS - cost
  • 38. Working with AWS - performance
  • 39. Working with AWS - performance
  • 40. Working with AWS - services• We use a number of other AWS services• Import service–– Fasto Cost effectiveo Excellent outcome.
  • 41. Working with AWS - services• Scaling.o Testing/ increased load/ stand aloneo Easy to implemento Cost effective.• Third partieso Clean integrationo Allows for varying levels of expertise.
  • 42. THANK YOU