AWS	
  201	
  
Rightsizing	
  and	
  Cost-­‐op6mizing	
  
Your	
  Deployment	
  
Markku	
  Lepistö	
  -­‐	
  Technology	
 ...
Housekeeping
• 
• 
• 
• 

Presentation ~45mins
Post Questions Online
Q&A at the end
Reminder – Fill in the survey!
What You’ll Get out of this Session
• A lower AWS bill
• A more scalable, robust, dynamic architecture
• More time to inno...
TCO IN THE CLOUD
Why do customers care about TCO?
Pay-as-you
Go Model

Stop
Guessing
Capacity

Agility / Speed /
Innovation

Avoid
Undiffer...
Analysts	
  have	
  shown	
  AWS	
  reduces	
  costs	
  

In early 2012, AWS commissioned IDC to interview 11 organization...
Replace up-front capital expense with low variable cost
On-Premise
(or “Private Cloud”)

Capital Expense Model
High upfron...
Economies of scale allow AWS to continually lower costs

We build IT at higher
scale than most any
operator of data
center...
Typical cost drivers for on-premises deployments
1	
  
Server	
  
Costs	
  

2	
  

3	
  

4	
  

Hardware	
  –	
  Server,...
AWS offers a service that includes everything in the price
Server
Network
Hardware

Software
OS +
VMs

DC/Co-lo
Floor
Spac...
Samsung Powers Smart Hub Service with AWS, Reducing
Costs by 85% and Saving $34 Million

• 

Samsung uses AWS platform of
...
Increased	
  agility	
  has	
  become	
  the	
  
#1	
  reason	
  businesses	
  use	
  the	
  AWS	
  
cloud	
  
Enterprises	
  Can’t	
  Afford	
  to	
  be	
  Slow	
  
Old World:
Infrastructure in Weeks

AWS:
Infrastructure in Minutes
A...
A	
  culture	
  of	
  InnovaFon:	
  Experiment	
  OKen	
  &	
  Fail	
  without	
  Risk	
  

On-Premises

$ Millions

Nearl...
Shell uses AWS to Develop Software Faster and Cheaper

Core	
  Development	
  
Team	
  

Extra	
  Development	
  
Resource...
Cost-aware Architectures

6 STEPS TO COST SAVINGS
Compute

AMAZON EC2
#1: Use Auto Scaling
#1: Use Auto Scaling
Auto Scaling Tips
• Scale up like a rocket
• Scale down like a feather
• Find the right instance type
• Leave headroom for...
#2: Turn off Unused Instances
#2: Turn off Unused Instances
• Developer/test/training instances
• Use simple instance start/stop, or
• Tear down/build u...
Customer Dev/Test Example

35%	
  saved	
  

Monday	
   Friday	
   End	
  of	
  vaca6on	
  season	
  
#3: Use Reserved Instances
#3: Use Reserved Instances

3y	
  RI	
  
Break	
  even	
  

1y	
  RI	
  
Break	
  even	
  
Less	
  instances	
  at	
  night	
  	
  
Peak	
  traffic	
  	
  $52	
  /	
  hr	
  
Night	
  traffic	
  $15	
  /	
  hr	
  
71%	...
#4: Use Spot Instances
#4: Use Spot Instances
• You choose your maximum price/hour
• Price based on supply/demand
• Your instance is started if S...
#4: Use Spot Instances

$3.28	
  
(1367%)	
  
On-­‐demand:	
  
$0.24	
  
$0.028	
  	
  (11.7%)	
  

$0.026	
  	
  (10,8%)	...
#4: Use Spot Instances
• Very dynamic pricing
• Opportunity to save 80%-90% cost
•  But there are risks

• Different price...
3000 Cores for risk management processes

Number of Cores

3000 -

300 Cores on
weekends

300 -

Wed

Thu

Fri

Sat

Sun

...
Storage

AMAZON S3
#5: Leverage Storage Classes
• Amazon S3 Reduced Redundancy
•  99.99% durability vs. 99.999999999%
•  Up to 20% savings
• ...
OVERALL ARCHITECTURE
#6 Offload Your Architecture
• The more you can offload, the less infrastructure
you need to maintain, scale, and pay for....
Offload Popular Traffic to Amazon S3, CloudFront
Offload Databases Through Caching
Simplify and Outsource to Managed Services
30%	
  
On-­‐Premise	
  
Infrastructure	
  

70%	
  

Your	
  
Business	
  

Ma...
Simplify and Outsource to Managed Services
30%	
  
On-­‐Premise	
  
Infrastructure	
  

AWS	
  
Cloud-­‐Based	
  
Infrastr...
Deployment &
Management	
  

Deployment & Management

AWS	
  Global	
  Infrastructure	
  
BeanStalk

CloudWatch

OpsWork

...
Global Blue Saves Nearly $1M Moving to the Cloud

•  Global Blue is a multi-national firm
specializing in tax free shoppin...
TOOLS
TCO Calculator
aws.amazon.com/tco-­‐calculator/	
  
AWS Trusted Advisor
aws.amazon.com/premiumsupport/trustedadvisor/	
  

Free	
  with	
  Business	
  or	
  Enterprise	
  Sup...
Hungama Uses AWS Trusted Advisor to Optimize Usage and Save
33% on Monthly Costs

• 

Hungama, a Mumbai, India provider of...
Let’s Recap
1.  Use Auto Scaling
2.  Turn off unused instances
3.  Use Reserved Instances
4.  Use Spot Instances
5.  Lever...
Thank	
  you	
  
Markku	
  Lepistö	
  -­‐	
  Technology	
  Evangelist	
  
@markkulepisto	
  
Your	
  feedback	
  is	
  important	
  

Please	
  complete	
  the	
  
Survey!	
  
What’s	
  good,	
  what’s	
  not	
  
Wh...
Q&A
AWS 201 Webinar Series - Rightsizing and Cost Optimizing your Deployment
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AWS 201 Webinar Series - Rightsizing and Cost Optimizing your Deployment

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Leveraging the AWS Cloud can help you further lower your overall IT costs and avoid fixed, upfront IT investments. Learning how to right-size your environments can help you to go from capacity guessing to meeting QoE targets for your customers. The session will also cover best practices on how to Architect for Cost from real world customer use cases and ultimately how the AWS Cloud can help you increase revenue by focusing on Innovation and Return on Agility.

Key takeaways
- Replace up-front capital expenses with low variable costs
- Outsource undifferentiated IT tasks to useful services
- Evaluate the total Cost of (Non) Ownership
- Build Cost-aware architectures
- AWS features that help you reduce your spend
- Different purchasing options available with AWS

Who should attend
- Technical Users: Developers, engineers, system administrators and architects
- Decision Makers: IT Managers, directors and business leaders

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AWS 201 Webinar Series - Rightsizing and Cost Optimizing your Deployment

  1. 1. AWS  201   Rightsizing  and  Cost-­‐op6mizing   Your  Deployment   Markku  Lepistö  -­‐  Technology  Evangelist   @markkulepisto  
  2. 2. Housekeeping •  •  •  •  Presentation ~45mins Post Questions Online Q&A at the end Reminder – Fill in the survey!
  3. 3. What You’ll Get out of this Session • A lower AWS bill • A more scalable, robust, dynamic architecture • More time to innovate • Real-world customer examples • All in 6 easy to implement sections
  4. 4. TCO IN THE CLOUD
  5. 5. Why do customers care about TCO? Pay-as-you Go Model Stop Guessing Capacity Agility / Speed / Innovation Avoid Undifferentiated Heavy Lifting Go Global in Minutes ✔ On-Premises/ Co-Location Lower Overall Costs ✔ ✔ ✔ ✔ ✔ X X X X X X Lower  Costs  is  not  the  only  reason  customers  choose  AWS,   but  is  significant  …  
  6. 6. Analysts  have  shown  AWS  reduces  costs   In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS.
  7. 7. Replace up-front capital expense with low variable cost On-Premise (or “Private Cloud”) Capital Expense Model High upfront capital cost, high cost of ongoing support Inflexible Metered, Pay As You Go Model Use only what you need, using on-demand, reserved, spot or dedicated Flexible
  8. 8. Economies of scale allow AWS to continually lower costs We build IT at higher scale than most any operator of data centers in the world We are comfortable running a high volume, low margin business We pass the savings along to our customers in the form of low prices and continuous reductions
  9. 9. Typical cost drivers for on-premises deployments 1   Server   Costs   2   3   4   Hardware  –  Server,  Rack   Chassis  PDUs,  ToR  Switches   (+Maintenance)   SoQware  -­‐  OS,   Virtualiza6on  Licenses   (+Maintenance)   Storage   Costs     Hardware  –  Storage  Disks,   SAN/FC  Switches       Storage  Admin  costs     Network   Costs   Network  Hardware  –  LAN   Switches,  Load  Balancer   Bandwidth  costs     Network  Admin  costs     IT  Labor   Costs   illustra6ve   Facili6es  Cost   Space   Power   Cooling   Facili6es  Cost   Space   Power   Cooling   Facili6es  Cost   Space   Power   Cooling   Server  Admin   Virtualiza6on  Admin   Diagram  doesn’t  include  every  cost  item.  E.g.  soQware  costs  can  include  database,  management,  middle  6er  soQware  costs.  Facili6es  cost  can  include  costs  associated  with   upgrades,  maintenance,  building  security,  taxes  etc.  IT  labor  costs  can  include  security  admin  and  applica6on  admin  costs.      
  10. 10. AWS offers a service that includes everything in the price Server Network Hardware Software OS + VMs DC/Co-lo Floor Space Powering Cooling Internet Bandwidth Personnel Admins HW Maint. Storage Redundancy Resource Mgmt. /SW Automation ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Hardware   Vendor   Offering   ✔
  11. 11. Samsung Powers Smart Hub Service with AWS, Reducing Costs by 85% and Saving $34 Million •  Samsung uses AWS platform of technology infrastructure services to build Smart Hub application •  Smart Hub application runs on AWS Cloud for users of Smart TV and Blu-ray players to access content of 3rd party providers •  With every user’s request, Smart Hub application authenticates devices, delivers apps and content, and pushes notifications across multiple devices
  12. 12. Increased  agility  has  become  the   #1  reason  businesses  use  the  AWS   cloud  
  13. 13. Enterprises  Can’t  Afford  to  be  Slow   Old World: Infrastructure in Weeks AWS: Infrastructure in Minutes Add New Dev Environment Add New Prod Environment Add New Environment in Japan Add 1,000 Servers Remove 1,000 Servers Deploy 1 PB Data Warehouse Shut down 1 PB Data Warehouse Everything changes with this kind of agility
  14. 14. A  culture  of  InnovaFon:  Experiment  OKen  &  Fail  without  Risk   On-Premises $ Millions Nearly $0 Experiment Infrequently Experiment Often Failure is expensive Fail quickly at a low cost Less Innovation More Innovation
  15. 15. Shell uses AWS to Develop Software Faster and Cheaper Core  Development   Team   Extra  Development   Resources   Contractor  Team   Remote  Team  
  16. 16. Cost-aware Architectures 6 STEPS TO COST SAVINGS
  17. 17. Compute AMAZON EC2
  18. 18. #1: Use Auto Scaling
  19. 19. #1: Use Auto Scaling
  20. 20. Auto Scaling Tips • Scale up like a rocket • Scale down like a feather • Find the right instance type • Leave headroom for peaks • Bonus: Better fault-tolerance • Bonus: Better scalability
  21. 21. #2: Turn off Unused Instances
  22. 22. #2: Turn off Unused Instances • Developer/test/training instances • Use simple instance start/stop, or • Tear down/build up altogether • Instances are disposable • Automate, automate, automate: •  AWS CloudFormation •  Weekend/off-hours scripts •  Use tags
  23. 23. Customer Dev/Test Example 35%  saved   Monday   Friday   End  of  vaca6on  season  
  24. 24. #3: Use Reserved Instances
  25. 25. #3: Use Reserved Instances 3y  RI   Break  even   1y  RI   Break  even  
  26. 26. Less  instances  at  night     Peak  traffic    $52  /  hr   Night  traffic  $15  /  hr   71%  savings!  
  27. 27. #4: Use Spot Instances
  28. 28. #4: Use Spot Instances • You choose your maximum price/hour • Price based on supply/demand • Your instance is started if Spot Price is lower • Your instance is terminated if Spot Price is higher • But: You did plan for fault-tolerance, didn’t you?
  29. 29. #4: Use Spot Instances $3.28   (1367%)   On-­‐demand:   $0.24   $0.028    (11.7%)   $0.026    (10,8%)  
  30. 30. #4: Use Spot Instances • Very dynamic pricing • Opportunity to save 80%-90% cost •  But there are risks • Different prices per AZ • Leverage Auto Scaling! •  One group with Spot instances •  One group with On-Demand •  Get the best of both worlds
  31. 31. 3000 Cores for risk management processes Number of Cores 3000 - 300 Cores on weekends 300 - Wed Thu Fri Sat Sun Mon Tue
  32. 32. Storage AMAZON S3
  33. 33. #5: Leverage Storage Classes • Amazon S3 Reduced Redundancy •  99.99% durability vs. 99.999999999% •  Up to 20% savings •  Great for everything that is easy to reproduce • Amazon Glacier •  Same 99.999999999% durability as S3 •  3 to 5 hours restore time •  Up to 89% savings •  Great for archiving, long-term backups and old data
  34. 34. OVERALL ARCHITECTURE
  35. 35. #6 Offload Your Architecture • The more you can offload, the less infrastructure you need to maintain, scale, and pay for. • Three easy ways to offload: •  Use Amazon CloudFront •  Introduce Caching •  Leverage existing AWS services
  36. 36. Offload Popular Traffic to Amazon S3, CloudFront
  37. 37. Offload Databases Through Caching
  38. 38. Simplify and Outsource to Managed Services 30%   On-­‐Premise   Infrastructure   70%   Your   Business   Managing  All  of  the     “Undifferen6ated  Heavy  LiQing”  
  39. 39. Simplify and Outsource to Managed Services 30%   On-­‐Premise   Infrastructure   AWS   Cloud-­‐Based   Infrastructure   70%   Your   Business   Managing  All  of  the     “Undifferen6ated  Heavy  LiQing”   More  Time  to  Focus  on   Your  Business   70%   Configuring  Your   Cloud  Assets   30%  
  40. 40. Deployment & Management   Deployment & Management AWS  Global  Infrastructure   BeanStalk CloudWatch OpsWork Cloud Formation CloudTrail IAM Support Federation Interaction   Application Services   Web Console AWS  Global  Infrastructure   SES SNS Elastic Transcoder SQS CloudSearch Databases Foundation Services   Human Interaction   Identity & Access RDS Dynamo WorkSpaces AppStream Analytics   ElastiCache RedShift Compute   EC2 SWF API   Application Services   Monitoring EMR DataPipeline Content Delivery Kinesis Storage   S3 Regions EBS Glacier Command Line Libraries, SDK’s   CloudFront Networking   Storage Gateway VPC Direct Connect Availability Zones ELB Route53 Edge Locations
  41. 41. Global Blue Saves Nearly $1M Moving to the Cloud •  Global Blue is a multi-national firm specializing in tax free shopping and refund points for merchants and international travelers •  Needed to create capacity for their business intelligence (BI) tool that handles merchant reporting •  Saved $800,000/year in CapEx and $78,000/year in OpEx costs
  42. 42. TOOLS
  43. 43. TCO Calculator aws.amazon.com/tco-­‐calculator/  
  44. 44. AWS Trusted Advisor aws.amazon.com/premiumsupport/trustedadvisor/   Free  with  Business  or  Enterprise  Support  
  45. 45. Hungama Uses AWS Trusted Advisor to Optimize Usage and Save 33% on Monthly Costs •  Hungama, a Mumbai, India provider of mobile and Internet entertainment to customers in more than 47 countries, has used AWS for server and storage management since 2008 •  As the company grew rapidly, more departments used AWS for development causing an increase in monthly costs •  By using AWS Trusted Advisor to identify ways to optimize its environment on AWS, Hungama reduced monthly costs by 33%
  46. 46. Let’s Recap 1.  Use Auto Scaling 2.  Turn off unused instances 3.  Use Reserved Instances 4.  Use Spot Instances 5.  Leverage Amazon S3 storage classes 6.  Offload your architecture
  47. 47. Thank  you   Markku  Lepistö  -­‐  Technology  Evangelist   @markkulepisto  
  48. 48. Your  feedback  is  important   Please  complete  the   Survey!   What’s  good,  what’s  not   What  you  want  to  see  at  these  events   What  you  want  AWS  to  deliver  for  you  
  49. 49. Q&A
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