Your SlideShare is downloading. ×
0
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Building Cost-Aware Cloud Architectures - Jinesh Varia (AWS) and Adrian Cockcroft (Netflix)

4,442

Published on

5 ways you can build cost-awareness into your cloud architectures and maximize your savings (business-driven auto scaling, mixing and matching reserved/on-demand, iterating and optimizing fungible …

5 ways you can build cost-awareness into your cloud architectures and maximize your savings (business-driven auto scaling, mixing and matching reserved/on-demand, iterating and optimizing fungible resources, follow the customer (run auto scaling web servers) during the day and follow the money (run hadoop and transcoding jobs) at night and soak up your reservations.

0 Comments
25 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
4,442
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
0
Comments
0
Likes
25
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Small incremental investments and faster returns gives you an opportunity to innovate quickly
  • In the old world, Cost of failure is too high,People are afraid to take risks, Innovation suffersTurns out that - we have to be wrong a lot in order to right a lotCloud really helps you to reduce the cost of failure and rapidly iteratingHow many big ticket technology idea can your budget tolerate?
  • In the cloud world, the cost of failure falls dramatically. One of the greatest value proposition You can launching multiple environments in parallel, Just yesterday, I was extremely curious about Play2 framework and whether it will support by new idea, I spun up 3 parallel environments one with a different database flavor to it, and when I was done and know which one I wanted, I was able to kill the other two and run quickly.
  • Turn ideas into businesses quickly, gain competitve advantage and releasing your products quickly and not only increasing revenue but also market share.
  • One of the greatest value proposition is you can start out small risk-free and commitment free with on-demand resources (because you have no clue how your app is going to perform and how much capacity you will need initially) and as you usage grows and you learn about traffic pattern, you reduce your costs by reserving capacity. Dropship your application to new geographies.Since we’ve invested in facilities around the world, we can offer you global reach at a moment’s notice. It’s cost prohibitive to put your own data center where all your customers are, but with AWS, you get the benefit without having to make the huge investment.
  • Only happens in the cloud
  • Shrink your server fleet from 6 to 2 at night and bring back
  • Build websites that sleep at night. Build machines only live when you need it
  • Our strategy of pricing each service independently gives you tremendous flexibility to choose the services you need for each project and to pay only for what you use
  • Personal Optimization Assistant
  • Netflix now serves 2x the customer traffic with the same amount of AWS resources as deployed 10 months ago
  • Reduced TCO remains one of the core reasons why customers choose the AWS cloud. However, there are a number of other benefits when you choose AWS, such as reduced time to market and increased business agility, which cannot be overlooked.
  • They have 2 offerings: free and premium. The free case they want to minimize cost. They have the ability to have some delay in the service while they transcode the data. So, they set a maximum of $x on the amount they would pay for an hour, and use Spot for the task. If they haven’t gotten capacity in a long time, they choose to start in On-Demand. The premium case they want the media encoding to happen immediately. So, they purchase Reserved Instances to optimize their expected level of demand (note breakeven is around 30% utilization, so buying more RIs may make sense). Then, they use On-Demand for elasticity. If they can’t get the On-Demand when they need it, they try in Spot (e.g. you can get capacity not available anywhere else). In all, they have optimized for their SLA for the premium offering, and minimized cost in their free offering. Both are legitimate scenarios, and AWS is the only provider to support the pricing models to allow them to do it.
  • No Enterprise has only Steady State Workloads.In fact, no system is entirely steady state.
  • You should use Consolidated Billing for any of the following scenarios:You have multiple accounts today and want to get a single bill and track each account's charges (e.g., you might have multiple projects, each with its own AWS account).You have multiple cost centers to track.You've acquired a project or company that has its own existing AWS account and you want to consolidate it on the same bill with your other AWS accounts.
  • You should use Consolidated Billing for any of the following scenarios:You have multiple accounts today and want to get a single bill and track each account's charges (e.g., you might have multiple projects, each with its own AWS account).You have multiple cost centers to track.You've acquired a project or company that has its own existing AWS account and you want to consolidate it on the same bill with your other AWS accounts.
  • You should use Consolidated Billing for any of the following scenarios:You have multiple accounts today and want to get a single bill and track each account's charges (e.g., you might have multiple projects, each with its own AWS account).You have multiple cost centers to track.You've acquired a project or company that has its own existing AWS account and you want to consolidate it on the same bill with your other AWS accounts.
  • Cloud is highly cost-effective because you can turn off and stop paying for it when you don’t need it or your users are not accessing. Build websites that sleep at night
  • In addition, Only Use What You Need to Use.
  • Transcript

    • 1. Cost-Aware Cloud ArchitecturesJinesh Varia Adrian Cockcroft@jinman @adriancoTechnology Evangelist Director, Architecture
    • 2. Return on Agility (Agile ROI) = More Revenue
    • 3. Cloud Economics – Agile ROIGet a faster Return by Speeding up Investment Observe Act OrientRapid innovation byspeeding up the DecideOODA loopTry, fail, try again, succeed
    • 4. « Want to increase innovation? Lower the cost of failure » Joi Ito
    • 5. Experiment Often & Adapt Quickly       • Cost of failure falls dramatically • Return on (small incremental) Investments is high • More risk taking, more innovation   • More iteration, faster innovation
    • 6. Accelerate building a new line of business Market Replay (2007)
    • 7. Go Global in Minutes
    • 8. Netflix Examples• Brazilian Proxy Experiment • No employees in Brazil, no “meetings with IT” • Deployed instances into two zones in AWS Brazil • Experimented with network proxy optimization • Decided that gain wasn’t enough, shut everything down• European Launch using AWS Ireland • No employees in Ireland, no provisioning delay, everything worked • No need to do detailed capacity planning • Over-provisioned on day 1, shrunk to fit after a few days • Capacity grows as needed for additional country launches
    • 9. Product Launch Agility - Rightsized Demand Cloud Datacenter
    • 10. Product Launch - Under-estimated Demand Cloud Datacenter
    • 11. Product Launch Agility – Over-estimated $ Demand Cloud Datacenter
    • 12. Key Takeaways on Cost-Aware Architectures…. #1 Business Agility by Rapid Experimentation = Increased Revenue
    • 13. When you turn off your cloudresources, you actually stop paying for
    • 14. Architectures that follows the moneyHow your architecture scales ∝ Customer Traffic
    • 15. www.MyWebSite.com (dynamic data) Amazon Route 53 media.MyWebSite.com (DNS) (static data) Elastic Load Balancer Amazon Auto Scaling group : Web Tier CloudFront Amazon EC2 Auto Scaling group : App Tier Amazon RDS Amazon Amazon S3 RDSAvailability Zone #1 Availability Zone #2
    • 16. Hourly CPU Load 14 12 10 8Load 6 25% Savings 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 24 Hours in a Day Optimize by the time of day
    • 17. Web Servers 50% Savings Weekly CPU Load 1 5 9 13 17 21 25 29 33 37 41 45 49 Weeks in a YearOptimize during a year
    • 18. Architectures that follows the money How your architecture scales ∝ Customer TrafficHow your architecture scales ∝ How you make money
    • 19. Mastering the Trade-offsHow many $/customer are you willing to spend for50% better latency to customers that willincrease in conversion to paid customers (ormore signups) by 10%?How many $/customer are you willing to spend for100 more renders per minute (10% reduction inwait time for customers) resulting in 50% morereach (viral awareness)?How many $/job are you willing to spend for 30%more faster results for your analytics job?
    • 20. Netflix’s use of Custom Metrics Business SLAs Requests Your User Timeout PUT 2 weeks App Latency Resp time Concurrent Alarm Amazon CloudWatch UsersInstance Custom Metrics via Servo “Increase, Decrease, Shrink, Expand your Instances ”
    • 21. Instances Business Throughput
    • 22. 50%+ Cost Saving Scale up/down by 70%+Move to Load-Based Scaling
    • 23. Key Takeaways on Cost-Aware Architectures…. #1 Business Agility by Rapid Experimentation = Increased Revenue #2 Business-driven Auto Scaling Architectures = Savings
    • 24. When Comparing TCO…
    • 25. Cost and wasted wasted Demand capacity capacity 600kMaintainingon-premiseinfrastructure wasted capacityfor peak 300kdemand is wasted lost customers, order ed hardwareexpensive capacity 200k Capacity of resources Actual demand Q1 Q2 Q3 Q4 Q1 Time
    • 26. When Comparing TCO… PlaceMake sure that Poweryou are including Pipesall the cost factorsinto consideration People Patterns
    • 27. Save more when you reserve On-demand Reserved Spot Dedicated Instances Instances Instances Instances• Pay as you go • One time low • Requested Bid • Standard and upfront fee + Price and Pay as Reserved discounted hourly you go • Multi-Tenant costs • Price change Single Customer• Zero commitment • Upto 71% savings every hour based • Ideal for over On-Demand on unused EC2 compliance and capacity regulatory workloads Billing Options
    • 28. Business-aligned Architectures = Savings Free Offering Premium Offering • Optimize for reducing cost  Optimized for Faster response times • Acceptable Delay Limits  No DelaysImplementation Implementation • Use Spot Instances first  Paid Subscriptions ∝ RIs • Use on-demand Instances, if  Use on-demand Instances during Spot is not available in 15 min weekends (high traffic)  Bid higher in spot if On-Demand is not available
    • 29. Save more when you reserve On-demand Reserved Instances Instances Light Utilization RI• Pay as you go • One time low upfront fee + 1-year and Medium discounted 3-year terms Utilization RI hourly costs• Zero Heavy commitment • Upto 71% Utilization RI savings over On- Demand
    • 30. Break-even point Utilization Ideal For Savings over (Uptime) On-Demandds 10% - 40% Disaster Recoveryow Light Utilization RI (>3.5 < 5.5 months/year) (Lowest Upfront) 56% + 40% - 75% Standard Reserved 1-year and 3- year terms Medium Utilization RI (>5.5 < 7 months/year) Capacity 66%s >75% Baseline Servers Heavy Utilization RI (>7 months/year) (Lowest Total Cost) 71%r On-
    • 31. Mix and Match Reserved Types and On-Demand 12 10 On-Demand 8Instances 6 Light RI Light RI Light RI Light RI 4 2 Heavy Utilization Reserved Instances 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Days of Month
    • 32. Netflix Concept of Reserving Capacity for Maximum SavingsOccasional Spikes On-Demand On-Demand Heavy RI Heavy RINormal Usage Light RI Light RI Billing Billing us-west region us-east region
    • 33. Netflix Concept of Reserving Capacity for Maximum SavingsOccasional Spikes On-Demand On-Demand Heavy RI Light RINormal Usage Heavy RI Light RI Billing Billing us-west region us-east region
    • 34. Key Takeaways on Cost-Aware Architectures…. #1 Business Agility by Rapid Experimentation = Increased Revenue #2 Business-driven Auto Scaling Architectures = Savings #3 Mix and Match Reserved Instances with On-Demand = Savings
    • 35. Usage Patterns: Variety of Applications and Environments Every Company has…. Every Application has…. LOB and Products Production Fleet Fleet Dev Fleet Marketing Site Test Fleet Intranet Site Staging/QA BI and DW Perf Fleet CRM DR Site Training Sites
    • 36. 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) Volume Discounts can be reached faster with combined usage Reserved Instances are shared across accounts (including RDS Reserved DBs)
    • 37. Over-Reserve the Production Environment Total Capacity Production Env. 100 Reserved Account QA/Staging Env. 0 Reserved Account Perf Testing Env. 0 Reserved Account Development Env. 0 Reserved Account Storage Account 0 Reserved
    • 38. Consolidated Billing Borrows Unused Reservations Total Capacity Production Env. 68 Used Account QA/Staging Env. 10 Borrowed Account Perf Testing Env. 6 Borrowed Account Development Env. 12 Borrowed Account Storage Account 4 Borrowed
    • 39. Consolidated Billing Advantages• Production account is guaranteed to get burst capacity • Reservation is higher than normal usage level • Requests for more capacity always work up to reserved limit • Higher availability for handling unexpected peak demands• No additional cost • Other lower priority accounts soak up unused reservations • Totals roll up in the monthly billing cycle
    • 40. Key Takeaways on Cost-Aware Architectures…. #1 Business Agility by Rapid Experimentation = Increased Revenue #2 Business-driven Auto Scaling Architectures = Savings #3 Mix and Match Reserved Instances with On-Demand = Savings #4 Consolidated Billing and Shared Reservations = Savings
    • 41. Continuous optimization in your architecture results in recurring savingsas early as your next month’s bill
    • 42. Right-size your cloud: Use only what you needAn instance typefor every purposeAssess yourmemory & CPUrequirements• Fit your application to the resource• Fit the resource to your applicationOnly use a largerinstance whenneeded
    • 43. Reserved Instance Marketplace Buy a smaller term instance Sell your unused Reserved Instance Buy instance with different OS or type Sell unwanted or over-bought capacityBuy a Reserved instance in different region Further reduce costs by optimizing
    • 44. Instance Type OptimizationOlder m1 and m2 families Latest m3 family Slower CPUs Faster CPUs (Sandybridge) Higher response times Lower response times Smaller caches (6MB) Bigger caches (20MB) Oldest m1.xl 15GB/8ECU/$0.48 Even faster for Java vs. ECU Old m2.xl 17GB/6.5ECU/$0.41 New m3.xl 15GB/13 ECU/$0.50 ~16 ECU/$/hr 26 ECU/$/hr – 62% better! Java measured even higher Deploy fewer instances
    • 45. Key Takeaways on Cost-Aware Architectures…. #1 Business Agility by Rapid Experimentation = Increased Revenue #2 Business-driven Auto Scaling Architectures = Savings #3 Mix and Match Reserved Instances with On-Demand = Savings #4 Consolidated Billing and Shared Reservations = Savings #5 Always-on Instance Type Optimization = Recurring Savings
    • 46. Follow the Customer (Run web servers) during the day 16 14 No. of Reserved Instances No of Instances Running 12 10 8 Auto Scaling Servers 6 Hadoop Servers 4 2 0 Mon Tue Wed Thur Fri Sat Sun Week Follow the Money (Run Hadoop clusters) at night
    • 47. Total Instances Reserved Table 14 Types 4 AZ-mappings Web Launch 40 Unused HadoopApplication Reservations Fleet Fleet Calculator Total Instances Running now = 100 Total unused Reservations available = 40 in 2 AZs (5 min interval)
    • 48. Soaking up unused reservationsUnused reserved instances is published as a metricNetflix Data Science ETL Workload (Starts after midnight)• Daily business metrics roll-up• EMR clusters started using hundreds of instancesNetflix Movie Encoding Workload• Long queue of high and low priority encoding jobs• Can soak up 1000’s of additional unused instances
    • 49. Building Cost-Aware Cloud Architectures #1 Business Agility by Rapid Experimentation = Increased Revenue #2 Business-driven Auto Scaling Architectures = Savings #3 Mix and Match Reserved Instances with On-Demand = Savings #4 Consolidated Billing and Shared Reservations = Savings #5 Always-on Instance Type Optimization = Recurring Savings #6 Follow the Customer (Run web servers) during the day Follow the Money (Run Hadoop clusters) at night
    • 50. Thank you!Jinesh Varia and Adrian Cockcroft jvaria@amazon.com @jinman acockcroft@netflix.com @adrianco

    ×