AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps

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Once you are at scale, it is even more important to focus on costs and run lean on AWS. This talk with explain the various purchasing models available, and will then address how to size your application for AWS. We will take you through various architectural best practices, such as auto-scaling, caching etc. to save costs and run lean by making the best decisions.

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AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps

  1. 1. Running Lean with Optimized Architecture Pieter Kemps Business Development Manager
  2. 2. Time Usage Page Views Revenue Etc. The Infamous Hockey Stick
  3. 3. Time Usage Page Views Revenue Etc. The Infamous Hockey Stick Costs
  4. 4. You want only 3 things
  5. 5. Revenue to go Up Unit Costs to go Down Margin to go Up
  6. 6. Time Usage Page Views Revenue Etc. The Infamous Hockey Stick Costs
  7. 7. How does AWS help here?
  8. 8. Economies of Scale Pricing Models Cost Aware Architecting
  9. 9. Let’s review AWS’ pricing concepts… Pay as you go Pay less per unit when you use more Pay even less when you reserve • Reserved pricing Pay even less when you architect for cost optimization • Smart architecting and leveraging AWS managed services Pay even less as AWS grows • AWS economies of scale result in continuous price reductions
  10. 10. What does this look like in the real world?
  11. 11. An example Enterprise software provider – global, started in India Focused on SaaS for storage, security, collaboration, etc. Backed by a leading VC Strong growth – winning customers globally Focused on profitability & reducing unit costs Worked closely with the AWS team to optimize its architecture
  12. 12. Margin Growth -10% price drop in S3 -20% RI purchase -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25% 54% reduction in unit costs “Based on a True Story”
  13. 13. 01 02 03 04 Idea MVP ProfitabilityScale
  14. 14. 03 04 ProfitabilityScale Cost Aware Architecting A Case Study - Pinterest This Session
  15. 15. 03 04 ProfitabilityScale Cost Aware Architecting A Case Study - Pinterest This Session
  16. 16. “Give me 4 fault tolerant algorithms and I can pick the best one almost with my eyes closed. If you then ask me which one is best for the business, in terms of dollar costs, I would be clueless...” Werner Vogels, CTO, Amazon
  17. 17. Cost optimization through ‘Cost Aware Architecting’ …by leveraging:Reduce Cost of… Compute 1. S3 & CloudFront for Caching & Offloading 2. Load Balancing from the start Storage 4. Storing derivative objects in S3 ‘Reduced Redundancy’ Data Base 5. Read Replicas and/or ElastiCache Test & Dev 6. A/B Testing for rapid proto-typing 3. Auto-Scaling done Right
  18. 18. 1. S3 & CloudFront for Caching & Offloading • Reduce your compute demand and costs • Improve end-user experience • Increase reliability and durability Cost Aware Architecting to Reduce costs of EC2
  19. 19. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  20. 20. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  21. 21. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  22. 22. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  23. 23. 2. Load Balancing from the start • Ready for massive scale, high reliability • Uninterrupted growth and evolution • Stateless and redundant array Cost Aware Architecting to Reduce costs of EC2
  24. 24. 2. Load Balancing from the start • Ready for massive scale, high reliability • Uninterrupted growth and evolution • Stateless and redundant array Cost Aware Architecting to Reduce costs of EC2
  25. 25. 2. Load Balancing from the start • Ready for massive scale, high reliability • Uninterrupted growth and evolution • Stateless and redundant array Cost Aware Architecting to Reduce costs of EC2
  26. 26. Buuuk for Singapore Press Holding (SPH)
  27. 27. 3. Auto-Scaling done Right with Real Time reaction response • Elastic Load Balancing and (event-driven) Auto Scaling • Notification of pending news flash (with audible alarm) • On-demand ramp up of capacity (6 mins.) • Subscriber alert push delivered • Mass response traffic handled (followed by ramp down) Cost Aware Architecting to Reduce costs of EC2
  28. 28. 3. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2 Straits TimesBuuuk
  29. 29. 3. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  30. 30. 3. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  31. 31. 3. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  32. 32. 4. Storing derivative objects in S3 ‘Reduced Redundancy’ • Original vs. derived assets : 33% savings • Single reference and consistency • Control, accurate logs and tracking Cost Aware Architecting to Reduce costs of S3 Reduced Redundancy Storage ‘RRS’
  33. 33. 5. Read Replicas and/or ElastiCache (‘Database Smarts’) • Scale out and share work • Optimal performance, minimize load • Enhance reliability, ensure data safety • Cost reduction Cost Aware Architecting to Reduce costs of DB
  34. 34. 6. A/B Testing for rapid proto-typing & innovation • Inexpensive idea validation • Seamless switch over and versioning • Rapid dev / test agility Cost Aware Architecting to Reduce costs of Test/Dev
  35. 35. Analytics: A/B test of different characters
  36. 36. Pricing A/B test Magic Wands
  37. 37. 0 10 20 30 40 50 60 Hosting In Summary Traditional Hosting vs AWS # of (virtual) servers Offload to S3 Caching with CF Auto- Scaling Etc.Hosting
  38. 38. 03 04 ProfitabilityScale Cost Aware Architecting A Case Study - Pinterest This Session
  39. 39. S3 Storage Volume
  40. 40. EC2 Instance Hours
  41. 41. February 2013 48.7 million users globally Raised $200M (Total = $338M) $2.5B valuation
  42. 42. Web Application Servers Sharded Database Cache Servers Internal Web Services File Storage • 80 million objects stored in S3 with 410 terabytes of user data • 150 EC2 instances in the web tier • 90 instances for in-memory caching • 35 instances used for internal purposes • 70 master databases with a parallel set of backup databases in different regions around the world for redundancy
  43. 43. • Pinterest really understands its traffic patters • Most traffic happens in the afternoons and evenings • Significant difference between peak and off-peak traffic • They are cost-conscious and very AWS savvy • Which commercial models can we leverage to reduce costs? • Which architectural best practices can be used to reduce costs?
  44. 44. • Reserved Instances– to save on EC2 forbase workload • Auto-scaling – automated shut down of 40% of instances off- peak
  45. 45. Peak: $52/h Off-peak: $15/h Savings/h: 71%
  46. 46. Thank You

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