COST OPTIMIZATIONGlen Robinson– Solutions Architect
Elastic Capacity
Elasticity is a fundamentalproperty of the cloud that drives many of its economic benefits
When you turn off your cloud resources,     you actually stop paying for them
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                    ...
www.MyWebSite.com         (dynamic data)                       Amazon Route 53                                            ...
Auto scaling : Types of Scaling Scaling by Schedule   Use Scheduled Actions in Auto Scaling Service      • Date      • Ti...
Horizontal Scaling       vs. Vertical Scaling
75% Savings   Web Servers                 1   3   5   7   9   11 13 15 17 19 21     23   25   27   29                     ...
End of the month processing Expand the cluster at the end of the month   Expand/Shrink feature in Amazon Elastic MapReduc...
Reserved Instances
Reserved Instances New Reserved instances  Light Utilization  Medium Utilization  Heavy Utilization
Light Utilization RI 15-40% utilization Lower costs up to 33% Use Cases: Disaster Recovery, periodic processing (e.g. EMR)
Medium Utilization RI The old RI 41-79% utilization Lower costs up to 49% Use Cases: Web applications, many heavy processi...
Heavy Utilization RI > 80% utilization Lower costs up to 59% Use Cases: Databases, Large Scale HPC, Always-on infrastructu...
Optimizing Cost with RIs$18,000$16,000$14,000$12,000$10,000                           Heavy                           Medi...
Optimizing Cost with RIs  14  12  10                                                                             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 applic...
Tip – Instance Optimizer             Free Memory              Free CPU        PUT                       2 weeks           ...
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%  ...
What is the tradeoff?              Unused                                           Unused                        Unused  ...
Bidding Strategies
Strategy: Optimize for Cost Engineered application towards a cost Set low maximum bid price to minimize costs Were comfort...
$$$$$$$$$$$$$$$$$$ $$$   $   $   $   $
Strategy: Price History Momentum Price Set 10% above Average Price Last Hour Maximum price threshold of 80% of On-Demand P...
Strategy: Price History Momentum
Strategy: Discount over On-Demand Bid around the On-Demand price Use On-Demand instance when Spot Price exceeds On-Demand ...
Strategy: Discount over On-Demand                      Switch to   Substantial                     On-DemandBack Savings  ...
Strategy: Minimize Interruption                                        ~57%                                       Savings ...
aws.amazon.com/ec2/spot-instances
Complementary  services
$0.028 per hour                   DNS   Elastic Load                                                      Web Servers     ...
Consumers                          Producer     SQS queue$0.01 per10,000 Requests($0.000001 per Request)$0.095     per hou...
Software v/s ServicesSoftware on EC2          SNS, SQS, SESPros                     Pros• Custom features        • Pay as ...
1. Elastic Capacity2. Reserved Instances3. Spot   Instances4. Instance   Types5. Complementary services
aws.amazon.com/calculator
THANK YOUaws.amazon.com
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
Cloud Economics: Optimising for Cost
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Cloud Economics: Optimising for Cost

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The Cloud provides a transparent cost model, with options from on-demand provisioning, to reserved capacity to low cost, spot pricing. This session outlines how to use these pricing models in concert to optimise the running cost of your application on the AWS Cloud. We'll outline new utilisation based reserved instances and bidding strategies when running on spot instances, to cost prediction.

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Transcript of "Cloud Economics: Optimising for Cost"

  1. 1. COST OPTIMIZATIONGlen Robinson– Solutions Architect
  2. 2. Elastic Capacity
  3. 3. Elasticity is a fundamentalproperty of the cloud that drives many of its economic benefits
  4. 4. When you turn off your cloud resources, you actually stop paying for them
  5. 5. 6 am
  6. 6. 10 am
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. Horizontal Scaling vs. Vertical Scaling
  11. 11. 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
  12. 12. 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)
  13. 13. Reserved Instances
  14. 14. Reserved Instances New Reserved instances  Light Utilization  Medium Utilization  Heavy Utilization
  15. 15. Light Utilization RI 15-40% utilization Lower costs up to 33% Use Cases: Disaster Recovery, periodic processing (e.g. EMR)
  16. 16. Medium Utilization RI The old RI 41-79% utilization Lower costs up to 49% Use Cases: Web applications, many heavy processing tasks
  17. 17. Heavy Utilization RI > 80% utilization Lower costs up to 59% Use Cases: Databases, Large Scale HPC, Always-on infrastructure, Baseline
  18. 18. Optimizing Cost with RIs$18,000$16,000$14,000$12,000$10,000 Heavy Medium $8,000 Light O-Demand $6,000 $4,000 $2,000 $-
  19. 19. Optimizing Cost with RIs 14 12 10 On Demand 8 Light Utilization RI Medium Utilization RI 6 Heavy utilization RI 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
  20. 20. http://d36cz9buwru1tt.cloudfront.net/AWS_Pricing_Overview.pdf
  21. 21. Instance Types
  22. 22. 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
  23. 23. Tip – Instance Optimizer Free Memory Free CPU PUT 2 weeks Free HDD At 1-min intervals Alarm Amazon CloudWatch Instance Custom Metrics
  24. 24. Spot Instances Bid on unused Amazon EC2 capacity.Run instances as long as bid exceeds the current Spot Price
  25. 25. 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
  26. 26. What is the tradeoff? Unused Unused Unused Reclaimed Unused Unused Reclaimed Unused Availability Zone Availability Zone Region
  27. 27. Bidding Strategies
  28. 28. 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
  29. 29. $$$$$$$$$$$$$$$$$$ $$$ $ $ $ $
  30. 30. Strategy: Price History Momentum Price Set 10% above Average Price Last Hour Maximum price threshold of 80% of On-Demand Price One time spot requests; one instance per request; across all availability zones Not more than 10 open Spot requests at any time Spot requests expire in 10 minute
  31. 31. Strategy: Price History Momentum
  32. 32. 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
  33. 33. Strategy: Discount over On-Demand Switch to Substantial On-DemandBack Savings Switch to Spot Much lower costs than On-Demand
  34. 34. Strategy: Minimize Interruption ~57% Savings On Average Substantial Savings
  35. 35. aws.amazon.com/ec2/spot-instances
  36. 36. Complementary services
  37. 37. $0.028 per hour DNS Elastic Load Web Servers Balancer Availability Zone$0.095 per hour(small instance) EC2 instance DNS + software LB Web Servers Availability Zone
  38. 38. 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
  39. 39. Software v/s ServicesSoftware on EC2 SNS, SQS, SESPros Pros• Custom features • Pay as you go • ScalabilityCons • Availability• Requires an instance • High performance• SPOF• Limited to one AZ• DIY administration
  40. 40. 1. Elastic Capacity2. Reserved Instances3. Spot Instances4. Instance Types5. Complementary services
  41. 41. aws.amazon.com/calculator
  42. 42. THANK YOUaws.amazon.com

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