KGC 2013 AWS session

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2013년 9월 25-27일간 열린 KGC에서 AWS의 정진 이사가 발표한 "AWS 비용 이해"의 자료입니다.

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  • It is very important to know your costs. Most organizations get TCO calculations but they don’t know what the TCO of the indivual App is because central IT had cut a big fat check earlier in the past. In order to do real TCO analysis of App-level, you have to know that there are costs of Power, cooling, real estate system administration costs in case of on-premise data center and co-lo which is not in that of the cloud. I am even taking into account the value of “Headache” and cost of this undifferentiated heavy lifting. When you use AWS, all these costs are already baked in to your costs. You really don’t have to worry about all these costs. The other very important item that customers miss is Reserved Instances when doing long-term TCO calculations. Reserved instances can save you upto 50% for a 3-year term. Its our commitment to you and not your commitment to us. Andy took this into two things into consideration : know what he is currently paying for the app and understanding the reserved instance pricing
  • 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.
  • Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
  • Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
  • Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
  • To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.
  • To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.
  • The best study so far!
  • The best study so far!
  • The best study so far!
  • 23% price reduction
  • Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
  • KGC 2013 AWS session

    1. 1. AWS 비용 이해 정진, 영업이사 Asia Pacific Sales and Business Development Sep 26th, 2013
    2. 2. Top 4 TCO (Total Cost of Ownership) Questions 1. “My total cost of hardware is cheaper than AWS” 2. “Will AWS be expensive in a long run?” 3. “Cloud is not cost-effective for steady state workloads” 4. “My administration costs are insignificant”
    3. 3. Make sure that we are including all the cost factors into consideration Place Power Pipes People Patterns
    4. 4. We offer a service that includes everything in the price Hardware Vendor Offering Server Network Hardware Software OS + VMs DC/Colo Floor Space Powering Cooling Internet Bandwidth Personnel Admins HW Maintenance Storage Redundancy Resource Mgmt SW Automation
    5. 5. Fixed Cost Factors One-time Upfront Monthly AWS Co-lo On-Site AWS Co-lo On-Site Server Hardware 0 $$$ $$ $$ 0 0 Network Hardware 0 $$ $$ 0 0 0 Hardware Maintenance 0 $$ $$ 0 0 0 Software OS 0 $$ $$ $ 0 0 Power and Cooling and Data Center Efficiency 0 0 $$ 0 0 $ Data Center/co-lo Space 0 $$ $$ 0 0 0 Personnel (Administration) 0 $$ $$ $ $$ $$$ Storage and Redundancy 0 $$ $$ $ 0 0 Bandwidth $ $$ $ $$ $ $ Resource Management Software 0 0 0 $$ $ 0 Total Take all the costs in to consideration
    6. 6. The TCO of Cloud Compute
    7. 7. A TCO Conversation with your customer? When you turn off your cloud resources, you actually stop paying for them
    8. 8. Cost and Demand Q1 Q2 Q3 Q4 Q1 wasted capacity lost customers, ordered hardware wasted capacity wasted capacity wasted capacity 200k 300k 600k Time Capacity of resources Actual demand Maintaining on-premise infrastructure for peak demand is expensive
    9. 9. Demand AWS AWS enables companies to match resources to demand Q1 Q2 Q3 Q4 Q1 200k 300k 600k Demand Time
    10. 10. 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 Scale By Hand • Not so auto, but still better than nothing!
    11. 11. 11 StyleShare, Feb 2013 Typical Mobile Game Traffic
    12. 12. 12 StyleShare, Sep 2013 Cost Optimization during a day
    13. 13. 1 5 9 13 17 21 25 29 33 37 41 45 49 WebServers Week Weekly CPU Load Cost Optimization during a year
    14. 14. 14 쿠키런, DevSisters, Sep 2013 Elasticity == Savings in Costs
    15. 15. On-Demand Pay for compute capacity by the hour with no long-term commitments For spiky workloads, zero upfront Reserved Make a low, one- time payment and receive a significant discount on the hourly charge For committed workloads Spot Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand For transient workloads Dedicated Launch instances within Amazon VPC that run on hardware dedicated to a single customer For highly sensitive or compliance- related workloads Free Tier Get Started on AWS with free usage & no commitment For POCs and getting started $ AWS Offers Options that Fit the Needs
    16. 16. Annual Utilization On Demand Light Utilization RI Medium Utilization RI Heavy Utilization RI 10% $234 77.95% 210.43% 479.49% 20% $468 18.97% 73.68% 189.74% 30% $702 0.68% 28.09% 93.16% 40% $936 10.51% 5.30% 44.87% 50% $1,170 16.41% 8.38% 15.90% 60% $1,404 20.34% 17.49% 3.42% 70% $1,638 23.15% 24.00% 17.22% 80% $1,872 25.26% 28.89% 27.56% 90% $2,106 26.89% 32.69% 35.61% 100% $2,340 28.21% 35.73% 42.05% Optimal Savings Sub-Optimal Savings Least Savings RI Cost Savings over On Demand M1.large – Linux– 1 Year RI
    17. 17. The breakeven for RIs is surprisingly quick Sample Cash Flow Summary from RI Analysis
    18. 18. 0 2 4 6 8 10 12 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 On Demand Light Utilization RI Medium Utilization RI Heavy utilization RI Optimizing costs with RIs
    19. 19. AWS customers use Spot for even greater savings Best Spot use-cases include any batch-oriented, fault-tolerant application
    20. 20. What are Spot Instances? Availability Zone Region Availability Zone Unused Unused Unused Unused Unused Unused Sold at 50% Discount! Sold at 56% Discount! Sold at 66% Discount! Sold at 59% Discount! Sold at 54% Discount! Sold at 63% Discount!
    21. 21. What is the tradeoff? Availability Zone Region Availability Zone Unused Unused Unused Unused Unused Unused Reclaimed Reclaimed
    22. 22. Customers Can Save Up to 92% Off the On-Demand Price 50% 50% 57% 63% 50% 66% 50% CycleCloud runs a HPC Cluster with 30000 cores at $1279/Hour (57% savings)! Some say the 30th fastest super computer with 1 GiB interconnect Lucky Oyster crawled 3.4B Web Pages, building a 400M entry index in around 14 hours for $100 (>85% savings)!
    23. 23. Spot Instance Use Cases Use Case Types of Applications Batch Processing Generic background processing (scale out computing) Hadoop Hadoop/MapReduce processing type jobs (e.g., Search, Big Data) Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and biology Video and Image Processing/Rendering Transform videos into specific formats Testing Provide testing of software, websites, etc. Web/Data Crawling Analyzing data and processing it Financial Hedgefund analytics, energy trading, etc. HPC Utilize HPC servers to do embarrassingly parallel jobs Cheap Compute Backend servers for Facebook games
    24. 24. Optimal Combination of the Pricing Options Start out risk-free and commitment- free On-Demand Instances POCs, Companies that need to preserve cash, Apps constrained by capital Savings - Purchase Reserved for your Baseline capacity Reserved + On-Demand Apps with committed usage Baseline: Use Heavy Peak: On-Demand More Savings - Convert On-Demand to Light RIs More Light RI Apps with predictable usage Spikes: On-Demand
    25. 25. Steady State Usage Pattern (Example: Corporate Website) Spiky Predictable Usage Pattern (Example: Marketing Promotions Website) Uncertain unpredictable Usage Pattern (Example: Social game or Mobile Website) What if …?
    26. 26. http://media.amazonwebservices.com/AWS_TCO_Web_Applications.pdf AWS offers significant savings in each scenario over an equivalent solution deployed on-premises.
    27. 27. The TCO of Cloud Storage
    28. 28. On-Premises Storage Raw Storage Disk storage volumes in a box Usable Storage RAID protection, Formatted Ready Allocated Storage Pre-allocation / Capacity Planning Utilized Storage Disk storage available to the database, Operating system Application Storage Actual storage used by the application Allocation 1 PB 1,048,576 GB 80% 90% 70%-80% 1,820,133 GB
    29. 29. On-Premises Storage Raw Storage Disk storage volumes in a box Usable Storage RAID protection, Formatted Ready Allocated Storage Pre-allocation Utilized Storage Disk storage available to the database, Operating system Application Storage Actual storage used by the application Amazon S3 1 PB
    30. 30. It’s Easy to Get an Incomplete and Incorrect Comparison of Cloud and Internal Storage August 2011 “File Storage Costs Less In The Cloud Than In-House”
    31. 31. The Real Comparison: On-Premises
    32. 32. The Real Comparison: Cloud
    33. 33. 25 Price cuts (8 of them related to Storage and Data Transfer) August 2011 “File Storage Costs Less In The Cloud Than In-House” $165,840 $251,600 Cloud Storage Costs of 100 TB 35% savings
    34. 34. Use Provisioned IOPS Provisioned IOPS is cheaper than standard IOPS steady state
    35. 35. Proactive cost optimization with Trusted Advisor
    36. 36. Intangible Cost Savings – Take a closer look at what you get Standardization and Consistency of HW/SW Global Footprint and Expansion Automation and Operational Excellence Rate of Innovation Security and ComplianceReturn on Agility
    37. 37. http://aws.amazon.com/tco-calculator/
    38. 38. Analysts Whitepapers and Resources on TCO of AWS AMAZON CLOUD INFRASTRUCTUR E REPRESENTS A 70% SAVINGS SAP applications on AWS provides infrastructure savings of up 71% AWS is a Price Leader
    39. 39. IDC TCO Study – Business Value Highlights 39 Source IDC Whitepaper, sponsored by Amazon, “The Business Value of
    40. 40. 감사합니다! info-kr @amazon.com aws.amazon.com/ko/economics
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