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 Cost Optimisation with Amazon Web Services
 

Cost Optimisation with Amazon Web Services

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  • title
  • Enterprise apps also need elasticity, but in a different way
  • Perhaps you expect a lot of traffic as part of a planned announcement and you want to increase the size of your EC2 fleet just ahead of your press release. Maybe your site is busy once a day because you have a daily deal or a daily special, or only on weekends when people are at sporting events. Or maybe you run a college registration site and you want to scale up during day and evening hours for the four-day registration period.
  • Perhaps you expect a lot of traffic as part of a planned announcement and you want to increase the size of your EC2 fleet just ahead of your press release. Maybe your site is busy once a day because you have a daily deal or a daily special, or only on weekends when people are at sporting events. Or maybe you run a college registration site and you want to scale up during day and evening hours for the four-day registration period.
  • http://calculator.s3.amazonaws.com/calc5.html?key=calc-D192C939-B31D-4F29-B84E-F07F8E6190F9http://calculator.s3.amazonaws.com/calc5.html?key=calc-B4C1AD60-742A-401E-B99E-C21862C376AChttp://calculator.s3.amazonaws.com/calc5.html?key=calc-A66897DE-2773-494D-B046-7C7191BC6336
  • http://calculator.s3.amazonaws.com/calc5.html?key=calc-D192C939-B31D-4F29-B84E-F07F8E6190F9http://calculator.s3.amazonaws.com/calc5.html?key=calc-B4C1AD60-742A-401E-B99E-C21862C376AChttp://calculator.s3.amazonaws.com/calc5.html?key=calc-A66897DE-2773-494D-B046-7C7191BC6336
  • 1 or 3 years is our commitment to the customer not theirs to us.  Therefore, if a customer plans on running for at least 8 months the only sensible purchase is the 3 year.
  • 1 or 3 years is our commitment to the customer not theirs to us.  Therefore, if a customer plans on running for at least 8 months the only sensible purchase is the 3 year.
  • For example, if the application always scales 2 larges in each AZ, there is pretty much no difference between this approach and 1 extra large in each AZ.  However it would be safer for the customer to scale 1 large in 2 AZs rather than 1 extra large in 1 AZ (and cheaper than 2 extra larges).
  • Use notification to optimuze
  • Engineered application towards a costSet low maximum bid price to minimize costsWere comfortable if process ran longer or jobs were re-runDid not pay for hour if they are interrupted
  • Bid around the On-Demand priceUse On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)May pay more some hours, but on average they pay significantly lessThis bidding strategy ensures a discount over On-Demand
  • Bid around the On-Demand priceUse On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)May pay more some hours, but on average they pay significantly lessThis bidding strategy ensures a discount over On-DemandHIDE
  • You canwait for resources
  • Show graph – and add in the picsPrice Set 10% above Average Price Last HourMaximum price threshold of 80% of On-Demand PriceOne time spot requests; one instance per request; across all availability zonesNot more than 10 open Spot requests at any timeSpot requests expire in 10 minute
  • Bid around the On-Demand priceUse On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)May pay more some hours, but on average they pay significantly lessThis bidding strategy ensures a discount over On-Demand
  • Bid around the On-Demand priceUse On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)May pay more some hours, but on average they pay significantly lessThis bidding strategy ensures a discount over On-Demand
  • Vimeo is about to come out with a case study. We are pushing for by the Summit, but if not you can remove the name and just use it as an example. 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.
  • AWS lets you lower the cost of innovationAccelerate your speed, be more agile, increase the value of your product.
  • * 2 HDs** 5 HDsNote that you have to pay for sending the device!FedEx: ~30€ from London to Dublin, 3kg, one day.
  • At 10Mbps upload speedConsidering that it takes one day to ship a device from London to Dublin
  • AWS lets you lower the cost of innovationAccelerate your speed, be more agile, increase the value of your product.
  • Use only for staticcontentS3 –Up to 10 TB / month $0.120 per GBNext 40 TB / month $0.090 per GBNext 100 TB / month $0.070 per GBNext 350 TB / month $0.050 per GBCF –United States Europe Hong Kong & Singapore Japan South AmericaFirst 10 TB / month $0.120 / GB$0.120 / GB$0.190 / GB$0.201 / GB$0.250 / GB contact usNext 40 TB / month $0.080 / GB$0.080 / GB$0.140 / GB$0.148 / GB$0.200 / GB contact usNext 100 TB / month $0.060 / GB$0.060 / GB$0.120 / GB$0.127 / GB$0.180 / GB contact usNext 350 TB / month $0.040 / GB$0.040 / GB$0.100 / GB$0.106 / GB$0.160 / GB contact usNext 524 TB / month $0.030 / GB$0.030 / GB$0.080 / GB$0.085 / GB$0.140 / GB contact usNext 4 PB / month $0.025 / GB$0.025 / GB$0.070 / GB$0.075 / GB$0.130 / GB contact us

 Cost Optimisation with Amazon Web Services Cost Optimisation with Amazon Web Services Presentation Transcript

  • COST OPTIMIZATIONJohannes Borch – Solutions Architect
  • When you turn off your cloudresources, you actually stop paying for
  • Elastic Capacity
  • Elasticity is a fundamentalproperty of the cloud that drives many of its economic benefits
  • 6 am
  • 10 am
  • 25% Savings Web Servers 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hourduring a day
  • 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 S3 AmazonAvailability Zone #1 RDS Availability Zone #2
  • Auto scaling : Types of Scaling Scaling by Schedule  Use Scheduled Actions in Auto Scaling Service • Date • Time • Min and Max of Auto Scaling Group Size  You can create up to 125 actions, scheduled up to 31 days into the future, for each of your auto scaling groups. This gives you the ability to scale up to four times a day for a month. Scaling by Policy  Scaling up Policy - Double the group size  Scaling down Policy - Decrement by 1
  • Horizontal Scaling vs. Vertical Scaling
  • 75% Savings Web Servers 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 Days of the Monthduring a month
  • End of the month processing Expand the cluster at the end of the month  Expand/Shrink feature in Amazon Elastic MapReduce Vertically Scale up at the end of the month  Modify-DB-Instance (in Amazon RDS) (or a New RDS DB Instance )  CloudFormation Script (in Amazon EC2)
  • Reserved Instances
  • 3-Year RI Percentage Savings Over On-Demand Comparison Annual Utilization Light Medium Heavy Utilization RI Utilization RI Utilization RI 20% 8% -14% -113% 40% 24% 26% -6% 60% 30% 39% 29% 80% 32% 45% 47% 100% 34% 49% 58%
  • Amazon EC2 Reserved Instances for a 3-year term Usage Fee One-time Fee Total Savings Option 1 $4479.84 - $4479.84 - 100% On-Demand Only Option 2 $3030.48 $700.00 $3730.48 ~17% 50% On-Demand + 50% Reserved (Medium Utilization) Option 3 $1581.12 $1400.00 $2981.12 ~34% 100% Reserved (Medium Utilization) Total Cost for running four m1.small Linux instances at medium utilization (about 366 hours per month) in the US East Region
  • 450 On Demand 1-year RI 3-year RI 400 350 300 250 200 2 150 100 50 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24on-demand vs. medium utilization RI
  • Recommendations Steady State Usage : Use All Reserved  Light Utilization RI: If you plan to use your instance more than 32% of a 1-year term or 17% of a 3-year term.  Medium Utilization RI: If you plan to use your instance more than 49% of a 1-year term or 24% of a 3-year term.  Heavy Utilization RI: If you plan to use your instance more than 43% of a 1-year term or 79% of a 3-year term.
  • on-demand + reserved instances
  • Recommendations Unpredictable Demand : Use combination of Reserved + On-demand  With Reserved Instances, the costs average to an effective hourly rate up to 58% lower than the On-Demand.
  • http://d36cz9buwru1tt.cloudfront.net/AWS_Pricing_Overview.pdf
  • Instance Types
  • Basic recommendations on Instance Type Choose the EC2 instance type that best matches the resources required by the application  Start with memory requirements and architecture type (32bit or 64-bit)  Then choose the closest number of virtual cores required Scaling across AZs  Smaller sizes give more granularity for deploying to multiple AZs
  • Tip – Instance Optimizer Free Memory Free CPU PUT 2 weeks Free HDD At 1-min intervals Alarm Amazon CloudWatch Instance Custom Metrics
  • Spot Instances Bid on unused Amazon EC2 capacity.Run instances as long as bid exceeds the current Spot Price
  • What are Spot Instances? Sold at Sold at 50% Unused 54% Unused Discount! Discount! Sold at Sold at 56% Unused 59% Unused Discount! Discount! Sold at Sold at 66% Unused 63% Unused Discount! Discount! Availability Zone Availability Zone Region
  • What is the tradeoff? Unused Unused Unused Reclaimed Unused Unused Reclaimed Unused Availability Zone Availability Zone Region
  • $$$$$$$$$$$$$$$$$$ $$$ $ $ $ $
  • Strategy: Optimize for Cost• Engineered application towards a cost• Set low maximum bid price to minimize costs• Were comfortable if process ran longer or jobs were re-run• Did not pay for hour if they are interrupted
  • Strategy: Discount over On-Demand• Bid around the On-Demand price• Use On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)• May pay more some hours, but on average they pay significantly less• This bidding strategy ensures a discount over On-Demand
  • Amazon SQS in Spot Architectures VisibilityTimeOut Amazon EC2 Spot Instance
  • Case study: Video Transcoding Workloads(on-demand + spot + reserved instances) Free Offering Premium Offering  Optimize for reducing  Optimized for Faster cost response times  Acceptable Delay Limits  No Delays Implementation Implementation  Persistent Spot Requests  Invest in RIs  Use on-demand  Use on-demand for Instances, if delay Elasticity
  • aws.amazon.com/ec2/spot-instances
  • Bandwidth Costs
  • AWS Import / ExportQuickly move large amounts of data
  • AWS Import/Export vs. S3 costs$1,200$1,000 $800 $600 Import/Export S3 $400 $200 $0 100Gb 500Gb 1 Tb 2 Tb 3 Tb 5 Tb * 10 Tb **
  • AWS Import/Export vs. S3 time savings
  • Amazon CloudFront Cache static content
  • When am I charged? Paris Client Edge Location Client Amazon Simple Singapore Storage Service (S3) Edge Location London Edge Location Client
  • When content is popular… Paris Client Edge Location Client Amazon Simple Singapore Storage Service (S3) Edge Location London Edge Location Client
  • Complementary services
  • $0.028 per hour(small instance) DNS Elastic Load Web Servers Balancer Availability Zone$0.095 per hour(small instance) EC2 instance DNS + software LB Web Servers Availability Zone
  • Consumers Producer SQS queue$0.01 per10,000 Requests($0.000001 per Request)$0.095 per hour (small instance) Producer EC2 instance Consumers + software queue
  • 1. Elastic Capacity2. Reserved Instances3. Spot Instances4. Instance Types5. Bandwidth costs6. Complementary services
  • aws.amazon.com/calculator
  • THANK YOUaws.amazon.com