Cost Optimisation with Amazon Web Services

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

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

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Cost Optimisation with Amazon Web Services

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