AWS Cloud Kata | Taipei - Getting to Profitability

1,590 views

Published on

Published in: Technology, Business
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,590
On SlideShare
0
From Embeds
0
Number of Embeds
780
Actions
Shares
0
Downloads
0
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

AWS Cloud Kata | Taipei - Getting to Profitability

  1. 1. Getting to Profitability
  2. 2. The Infamous Hockey Stick Usage Page Views Revenue Etc. Time
  3. 3. The Infamous Hockey Stick Usage Page Views Revenue Etc. Costs Time
  4. 4. You want only 3 things
  5. 5. Revenue to go Up Unit Costs to go Down Margin to go Up
  6. 6. The Infamous Hockey Stick Usage Page Views Revenue Etc. Costs Time
  7. 7. How does AWS help here?
  8. 8. Economies of Scale Pricing Models Cost Aware Architecting
  9. 9. What does this look like in the real world?
  10. 10. An example ! ! ! ! ! !             Enterprise  so+ware  provider  in  APAC   Focused  on  SaaS  for  storage,  security,  collabora=on,  etc.   Backed  by  leading  VC’s  in  the  region   Strong  growth  –  winning  customers  globally   Focused  on  profitability  &  reducing  unit  costs   Worked  closely  with  the  AWS  team  to  op=mize  its  architecture  
  11. 11. “Based on a True Story” Margin Growth 54% reduction in unit costs -20% -10% price drop RI purchase in S3 -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25%
  12. 12. Idea MVP Scale Profitability 01 02 03 04
  13. 13. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
  14. 14. Cost Optimization using different purchase models Free Tier On-Demand Reserved Spot Get Started on AWS with free usage & no commitment Pay for compute capacity by the hour with no long-term commitments Make a low, one-time payment and receive a significant discount on the hourly charge Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand For POCs and getting started For spiky workloads, or to define needs For committed utilization For time-insensitive or transient workloads
  15. 15. aws.amazon.com/activate
  16. 16. Reserved Instance Pricing Make a low, one-time payment and receive a significant discount on the hourly charge For committed utilization 3 Versions • Light Utilization RI • Medium Utilization RI • High Utilization RI 2 Terms • 1-year • 3-year
  17. 17. Reserved Instance Pricing U"liza"on   RI  op"on   Savings  over  On-­‐Demand   <10%   On-­‐Demand   10%  -­‐  40%   Light  U=liza=on  RI   Up  to  56%   40%  -­‐  75%   Medium  U=liza=on  RI   Up  to  66%   >75%   Heavy  U=liza=on  RI   Up  to  71%  
  18. 18. •  Most traffic happens in the afternoons and evenings, so they reduce the number of instances at night by 40%. •  At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as little as $15 an hour. Saving per hour = 71%
  19. 19. Save more money by using Spot Instances Spot  market  for  under-­‐ u=lized  capacity     Requested  Bid  Price  and   Pay  as  you  go   Spot  Price  <  On-­‐Demand  Price       Up  to  85%  savings  over  On  Demand  pricing  
  20. 20. Use Cases for Spot Pricing Use  Case   Batch  Processing   Types  of  Applica"ons   Generic  background  processing  (scale  out  compu=ng)   Hadoop   Hadoop/MapReduce  processing  type  jobs  (e.g.  Search,  Big  Data,  etc.)     Scien"fic  Compu"ng   Scien=fic  trials/simula=ons/analysis  in  chemistry,  physics,  and  biology   Video  and  Image  Processing/ Rendering   Tes"ng   Transform  videos  into  specific  formats   Web/Data  Crawling   Financial   HPC   Analyzing  data  and  processing  it   Hedgefund  analy=cs,  energy  trading,  etc   U=lize  HPC  servers  to  do    embarrassingly  parallel  jobs   Cheap  Compute   Backend  servers  for  Facebook  games   Provide  tes=ng  of  so+ware,  web  sites,  etc  
  21. 21. Optimizing Video Transcoding Workloads for a FREEMIUM model Premium Offering Free Offering Optimize for reducing cost Acceptable Delay Limits Optimized for Faster response No Delays   Implementation –  –  –  –  Leverage spot pricing Maximum Bid Price < On-demand Rate Use on-demand Instances, if delay Get strongly reduced price for your workload Implementation –  Invest in Reserved Instances –  Use on-demand for Elasticity Get Instant Capacity for higher price
  22. 22. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
  23. 23. “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
  24. 24. Cost optimization through ‘Cost Aware Architecting’ Reduce Cost of… Compute …by leveraging: 1. S3 & CloudFront for Caching & Offloading 2. Auto-Scaling done Right Storage 3. Storing derivative objects in S3 ‘Reduced Redundancy’ Database 4. Read Replicas and/or ElastiCache Test & Dev 5. Rapid proto-typing & Lean Dev/Test
  25. 25. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading •  Reduce your compute demand and costs •  Improve end-user experience •  Increase reliability and durability
  26. 26. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
  27. 27. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
  28. 28. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
  29. 29. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
  30. 30. Static content Dynamic calls
  31. 31. Cost Aware Architecting to Reduce costs of EC2 2. 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)
  32. 32. Buuuk for Singapore Press Holding (SPH)
  33. 33. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response Buuuk Straits Times
  34. 34. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
  35. 35. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
  36. 36. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
  37. 37. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
  38. 38. Cost Aware Architecting to Reduce costs of S3 3. Storing derivative objects in S3 ‘Reduced Redundancy’ •  Original vs. derived assets : 33% savings •  Single reference and consistency •  Control, accurate logs and tracking Reduced Redundancy Storage ‘RRS’
  39. 39. Cost Aware Architecting to Reduce costs of DB 4. Read Replicas and/or ElastiCache (‘Database Smarts’) •  •  •  •  Scale out and share work Optimal performance, minimize load Enhance reliability, ensure data safety Cost reduction
  40. 40. 90% of calls
  41. 41. Cost Aware Architecting to Reduce costs of Test/Dev 5. Rapid proto-typing & Lean Dev/Test •  Inexpensive idea validation •  Seamless switch over and versioning •  Rapid dev / test agility
  42. 42. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
  43. 43. When  calcula"ng  TCO…   #1  Start  by  understanding  your  use  cases  &  usage  paUerns  
  44. 44. Tradi=onal  HW  /  Hos=ng   WASTE On and Off Fast Growth Variable peaks Predictable peaks CUSTOMER DISSATISFACTION
  45. 45. AWS  =  Elas=c  Capacity   On and Off Fast Growth Variable peaks Predictable peaks
  46. 46. When  calcula"ng  TCO…   #1  Start  by  understanding  your  use  cases  &  usage  paUerns   #2  Apples  to  Apples  –  Take  all  the  fixed  costs  into  considera"on  
  47. 47. When  calcula"ng  TCO…   #1  Start  by  understanding  your  use  cases  &  usage  paUerns   #2  Apples  to  Apples  –  Take  all  the  fixed  costs  into  considera"on   #3  Leverage  ‘Cost  Aware  Architec"ng’  to  reduce  resources  
  48. 48. Tradi"onal  Hos"ng  vs  AWS   # of (virtual) servers 60   50   40   30   20   10   0   Hos=ng   Hosting Offload to S3 Caching with CF AutoScaling Etc.
  49. 49. When  calcula"ng  TCO…   #1  Start  by  understanding  your  use  cases  &  usage  paUerns   #2  Apples  to  Apples  –  Take  all  the  fixed  costs  into  considera"on   #3  Leverage  ‘Cost  Aware  Architec"ng’  to  reduce  resources   #4  Include  pricing  models  (RI,  Spot)  and  economies  of  scale  
  50. 50. “Based on a True Story” Margin Growth 54% reduction in unit costs -20% -10% price drop RI purchase in S3 -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25%
  51. 51. When  calcula"ng  TCO…   #1  Start  by  understanding  your  use  cases  &  usage  paUerns   #2  Apples  to  Apples  –  Take  all  the  fixed  costs  into  considera"on   #3  Leverage  ‘Cost  Aware  Architec"ng’  to  reduce  resources   #4  Include  pricing  models  (RI,  Spot)  and  economies  of  scale   #5  Take  a  look  at  what’s  included:  Intangible  Cost  Savings  !  
  52. 52. Did you know? Free Usage Tier Free Services Data Transfer AWS Elastic Beanstalk AWS CloudFormation AWS IAM Auto Scaling Consolidated Billing No Charge for New Customers Amazon EC2 Amazon RDS Amazon ELB Amazon S3 Amazon EBS For All Customers Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more… Inbound Data Transfer Data Transfer between Instances within an Availability Zone
  53. 53. Trusted Advisor
  54. 54. A premium security spec at non-premium prices •  VPC •  Direct connect and VPC •  Dedicated instances Network ACL •  Identity & Access •  Multi-Factor Authentication Management •  CloudHSM S3 Encryption •  RDS Oracle transparent •  •  Security groups for EC2 encryption
  55. 55. DEMO   Gegng  to  Scale   Off-loading of static content to CloudFront to reduce required server capacity
  56. 56. So what does this mean in terms of costs? Standard Architecture Month Medium EC2 instances 4 $ 485 AWS Data Transfer Out 1Tb $ 194 TOTAL $ 679 Optimized Architecture Month Medium EC2 instances 1 $ 121 CloudFront Data Transfer Out 1Tb $ 168 CloudFront Requests $1.89 TOTAL $ 291 57% lower cost – 6 x faster
  57. 57. Thank You aws.amazon.com/start-­‐ups   aws.amazon.com/ac"vate  
  58. 58. Taipei 台北 WhosCall a trusted contact experience AWS Cloud Kata for Start-Ups and Developers
  59. 59. Gogolook at a glance Gogolook is a mobile App start-up in a rapid growth based in Taipei, Taiwan. Our App – WhosCall provides real-time phone number lookup, search, caller identification and blocks services for smartphone. Gogolook’s vision is to create a trusted contact experience. WhosCall has helped millions of people to recognize unidentified phone calls with our phone number cloud database, which synchronizes data from the Taiwan, Japan, Korea, Hong Kong, South East Asia, and the Middle East. Our cloud database has over 600 million numbers, and is still growing at a fast pace. WhosCall had received public praise as Taiwan’s new innovation model by Google CEO, Eric Schmidt, and has reach 4 million downloads within 1 year. The daily page view of calls is over 10 million. AWS Cloud Kata for Start-Ups and Developers
  60. 60. Google Play Ranking Taiwan No. 4 Communication Japan South Korea Singapore Saudi Arabia No. 11 No. 13 No. 10 No. 7 AWS Cloud Kata for Start-Ups and Developers
  61. 61. iOS App Store Ranking Hong Kong No. 1 Paid App Japan Taiwan No.1 No.1 Paid App Paid App AWS Cloud Kata for Start-Ups and Developers
  62. 62. Objectives !   Collect trustworthy information of phone numbers via •  Phone number search engine •  Crowdsourcing (collaborative phonebook) !   Provide to everyone of the trustworthy information •  Smartphone Apps •  Open APIs AWS Cloud Kata for Start-Ups and Developers
  63. 63. Solution - Mobile App WhosCall helps identify calls in seconds through Internet searching and community reporting. No matter what kind of calls you receive, from malicious phone frauds, disturbing telemarketing calls, or just random calls from stores, you are able to know “Who’s Calling” at a glance. If you have missed calls, check before you call back! WhosCall saves you from all the embarrassing communication! ★ Global Caller ID ★ Real-time Searching ★ Block Calls & SMS ★ Temporary Contact Management AWS Cloud Kata for Start-Ups and Developers
  64. 64. Solution - Trusted Partners of WhosCall Trust Gain trust in a glance Bind Missing Call Connection AWS Cloud Kata for Start-Ups and Developers Engage Add to Favorite Contact
  65. 65. AWS Services to talk Amazon EC2 Elastic Load Balancing Auto Scaling CloudWatch AWS Cloud Kata for Start-Ups and Developers Amazon SQS Route 53
  66. 66. All Server Side in AWS Mobile Client AWS Cloud Kata for Start-Ups and Developers
  67. 67. WhosCall and AWS !   Objective •  Provide service to the global users with WhosCall strategy !   Benefit from Flexible •  Deploy WhosCall server cross multi regions •  Reserved Instance: some of AP servers and Database •  RI for basic loading and On-Demand instance for peak (Auto Scaling) •  Save more than 25% cost AWS Cloud Kata for Start-Ups and Developers
  68. 68. Route 53 ELB Auto scaling Group AP server on Instance DB1 on Reserved Instances Region 1 ELB Auto scaling Group AP server on Instance DB2 on Reserved Instances Region 2 DB3 (master) on RI AWS Cloud Kata for Start-Ups and Developers Region 3 Database Replication
  69. 69. Cron Job Data Computing Instance PythonProcess AMI Use boto libiary Data Computing Process on Spot Instances DB3 on RI AP Server Job Queue Message Processes on Spot Instances AWS Cloud Kata for Start-Ups and Developers Auto scaling Group Messages Amount Alert
  70. 70. WhosCall and AWS (cont.) !   Objective •  Provide better service base on large amount of log !   Benefit from Spot •  Log data process job •  Computing and analyzing data •  Trying EMR now. •  Can launch more instances and process data faster AWS Cloud Kata for Start-Ups and Developers
  71. 71. Spot Instance !   Temporarily computing resource, everyone could bid it. !   Processing log data in SQS: •  •  Use spot to process messages in queue. Save Money: m1.small from $0.065 / hr to $0.01 / hr !   Computing and analyzing log data: •  •  Need lots of temporary Computing instance at same time Save Time: faster over 5 times than before AWS Cloud Kata for Start-Ups and Developers
  72. 72. Contact Network of Trust AWS Cloud Kata for Start-Ups and Developers

×