AWS Partner Webcast - AWS Cost Management with CloudCheckr


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Even with the low cost of cloud computing, DevOps and finance teams need to continuously manage their costs. With the availability of AWS features like resource tagging, detailed billing, and Reserved Instance (RI) purchases, customers can efficiently monitor, allocate, and control their spend. However, making the most of these services requires implementing the right strategies and ongoing monitoring. For most customers, automating that process offers significant advantages.

Review this webinar to learn how CloudCheckr helped DreamBox Learning reduce costs with customizable reports, cost optimization recommendations, and automated best practices implementation. Hear from DreamBox Learning how they were able to reduce their spend by nearly 30% while freeing up internal resources. Learn how to:
- Use tags to track and allocate spend by business unit, department, or team
- Identify idle and underutilized resources
- Evaluate RI purchases and other opportunities for cost savings

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AWS Partner Webcast - AWS Cost Management with CloudCheckr

  1. 1. AWS Cost Management Tracking, Allocating and Controlling Spend in the AWS Environment with CloudCheckr
  2. 2. Welcome Maya Cabassi Partner Marketing Manager Amazon Web Services
  3. 3. Webinar Overview  Submit Your Questions using the Q&A tool.  A copy of today’s presentation will be made available on:  AWS SlideShare Channel@  AWS Webinar Channel on YouTube@ nPlVzJI-ccQXlxjSvJmw
  4. 4. Kyle Lichtenberg Solutions Architect Amazon Web Services Aaron Newman Founder CloudCheckr Inc. Introducing J.B Krewson Dir. Technical Operation DreamBox Learning
  5. 5.  Intro to Amazon Web Services and Cost Management  Overview of CloudCheckr cost optimization tools for AWS  Case study: how DreamBox Learning reduced spend by nearly 30%  Q&A What We’ll Cover
  6. 6. One of the primary reason businesses are moving so quickly to AWS and the cloud is increased agility.
  7. 7. Enterprises Can’t Afford to be Slow Add New Dev Environment Add New Prod Environment Add New Environment in APAC Add 1,000 Servers Remove 1,000 Servers Deploy 1 PB Data Warehouse Shut down 1 PB Data Warehouse AWS: Infrastructure in Minutes Old World: Infrastructure in Weeks
  8. 8. Global Services * China (Beijing) Region- EC2 Availability Zones: 1 Coming Soon 10 Regions* 26 Availability Zones* 51 Edge Locations
  9. 9. A Culture of Innovation On-Premises Experiment Infrequently Failure is expensive Less Innovation Experiment Often Fail quickly at a low cost More Innovation
  10. 10. Cost Savings and Flexibility
  11. 11. Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013 1 “Average of 400 servers replaced per customer” Replace up-front capital expense with low variable cost 2 42 Price Reductions Economies of scale allow AWS to continually lower costs 4 Save more money as you grow bigger Tiered Pricing Volume Discounts Custom Pricing 3 Pricing model choice to support variable & stable workloads On-Demand Reserved Spot Dedicated How can you achieve lower TCO with AWS?
  12. 12. Pricing Models on AWS On-Demand Pay for compute capacity by the hour with no long- term commitments For spiky workloads, or to define needs Reserved Make a low, one-time payment and receive a significant discount on the hourly charge For committed utilization Spot Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand
  13. 13. AWS Cost Management Tracking, Allocating, and Collaborating Spend in the AWS Environment Aaron C. Newman Founder, CloudCheckr
  14. 14. Reserved Usage Best Practices • Different type, regions, sizes, time frames • All offer different ROIs • Calculate Return on Investment • Total Savings / Upfront cost • ROI highly dependent on your usage • How many hours, transactions, requests, etc… Use EC2 spot instances when possible
  15. 15. Different Strategies for Buying RIs • Analyze Usage by Instance • Look at how many hours each instance is running • Analyze Usage by Frequency • Look at number of hours running by hour and instance type • Track your expected usage • Use tagging strategies • How likely to keep running an instance? • Can you reassign unused Reserved Instances?
  16. 16. Types of Reserved Usage EC2 Reserve Instances Most commonly used, a lot of factors to understand RDS Reserved DB Instance Often a better option for purchase, database are more stable ElastiCache Reserved Nodes DynamoDB Reserved Capacity CloudFront Reserved Capacity Pricing
  17. 17. Best Practices for Resource Utilization • Locate and eliminate idle resources • Right-size resources • Don’t under or over-utilize • Use Auto Scaling Groups • Design your applications • to scale up and down Check on ALL your resources: EC2, EBS, ELBs, RDS, DynamoDB, ElastiCache, etc…
  18. 18. Build a Tagging Strategies • Tag your resources so you can allocate costs • Tie costs to applications and resource owners • Provides visibility into what you are spending • Identify and classify costs • So that you can reduce them • Locate and eliminate untagged resources You can’t optimize what you can’t measure
  19. 19. Use Consolidated Billing • Create a master payer account • Link all your accounts from there Advantages includes: • A single view on all costs • Reserved Instance usage • works across consolidated accounts • Pricing tiers are compressed • Overall reduced bill
  20. 20. DreamBox Learning • DreamBox Learning© is an online elementary math program that raises student performance and confidence • DreamBox combines engaging, adaptive lessons with the up-to-date reporting educators need to individualize instruction • Our software and our company are based on agility: rapid adaptation and improvement. We need the same qualities in our infrastructure AWS gives us the agility and services we need, but managing and optimizing choices can be tricky Online Math Education
  21. 21. How We Use AWS • Diverse services • S3, EC2, RDS, ElastiCache, CloudFront, Route53, others • Heavy use of auto- and scheduled scaling • Always adding, changing components • Multiple complex pre-production environments • Our challenge: • Use the right resource for every need • Eliminate cost surprises • Reduce staff time needed to track costs
  22. 22. What We Need To Know • Are we using Reserved Instances effectively? – How to spot opportunities to sell RIs? – How to buy exactly the right type and count of RIs? • Where are costs increasing too fast? – Which services’ costs increase faster than traffic? • Where should we be looking for savings? – Better to save 5% off $100, than 50% of a dime.
  23. 23. How CloudCheckr Helped • Are we using Reserved Instances effectively? – “Best Practices” cost report • Where are costs increasing too fast? – Daily and Weekly reports that highlight big increases • Where should we be looking for savings? – “Top 10 most expensive” report – “Resource Utilization” reports – AWS Billing drill-down tool
  24. 24. What We’ve Learned • Use the right type of instance: – OK if it is interrupted? Not time critical? USE SPOTS – Running all the time, can’t be interrupted? USE HEAVY RIs – Running 2/3 of the time, can’t be interrupted? USE LIGHT RIs – Runs less than 2/3 of the time, can’t be interrupted? DEMAND • Not all RIs are equal: – EC2 reservations can be modified and resold. We are aggressive in buying these – RDS and ElastiCache reservations are a firm commitment. We are much more cautious about buying these • Stay on top of storage, particularly AMIs and Snapshots
  25. 25. Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 EC2 Demand EC2 RI EC2 Other RDS OTHER Traffic CloudCheckr Cost Control Impact CloudCheckr SchoolYearBegins Coststrackwithload CoststrackWORSEthanload Costs DROP while load increases
  26. 26. Contacts and Q&A CloudCheckr: Sign up for a free evaluation at: CloudCheckr Contact: Aaron Newman AWS Contact: