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Cloud costs: my 2 cents	            Ali Khajeh-Hosseini       @AliKhajeh, @PlanForCloud              Nov 2012, University ...
Why am I here?Show you how…  cloud is changing IT spending
Global IT spending in 2012:    $3.5 Trillion    h#p://www.gartner.com/technology/research/it-­‐spending-­‐forecast/	  	  
Jan 2009: Started PhD in St Andrews    May 2010: PlanForCloud v.1 ready         Feb 2011: Interned in California for 7 mon...
What the heck is…             a cloud?
Server
Rack
Container
2500                    ServersElectricity, Water, Internet
a cloud
Around 60 Staff       30 Megawatts = Perth (Scotland)!       140 Containers       38,500 m2 = 4 ftbl pitches       360,000...
Cloud Computing	                                        Infrastructure-as-a-Service                                       ...
PlanForCloud helps users make decisions      RightScale helps users do it
How much would it cost to deploy my systems on Cloud X?Would it be cheaper if I use deployment option X or Y?What happens ...
IT managers   Software Engs        Consultants   AccountantsUsers
Why do people care?Cloud computing has many benefits- Elasticity- Pay-per-use pricing...
Capacity planning      Images	  taken	  from	  h#p://aws.amazon.com/economics/	  	  
Animoto’s crazy scale-out     Scale-out from 50 to 4,000 servers in 3 days     h#p://blog.rightscale.com/2008/04/23/animot...
Zynga’s Z-CloudLaunch new games on public cloudsMove to private cloud when usage patterns are understood      h#p://www.ri...
There are many providers   and pricing models
Example: a MySQL DatabaseAWS Relation Database Service (RDS)- Up-front reservation fee (optional)- CPU: $X/hour (based on ...
What the heck?I just wanted a simple database   PlanForCloud simplifies this
around   10,000 prices in PlanForCloud
There are different purchase options- On-Demand: fixed rate- Reserved: pay upfront, lower rate- Spot: Bid how much you wou...
AWS Reserved Instances               up-front procurement to pay-per-use        You have to specify: term (1/3 yr), utiliz...
AWS Reserved Instances Marketplace           Buy and sell reservations
AWS Spot Prices  Bid for an instance, it’ll get switched on if bid >= spot price.                 You pay spot price, AWS ...
Prices change  (feels like there’s a price war between providers)Re-generate cost forecast in PlanForCloud
Ok so that all sounds cool…                but is anyone           doing this for real?
How much would   Pinterest or TripAdvisor cost       to host on the cloud?	  h#p://highscalability.com/blog/2012/11/1/cost...
How much would it cost to deploy     System X on Cloud Y? e.g. TripAdvisor’s 700K requests/min system           on the AWS...
$1.7M/year
Would it be cheaper to use  deployment option X or Y?e.g. reserved instances, different types of instances,             di...
$0.9M/year(using reserved instances)                             1st month: $450K                             After: $38K/...
What happens to costs  if system grows? e.g. start with 410TB of S3 storage,   then grow by 25% every month
Currently: $39K/month1yr from now: $470K/month
It’s starting to get interesting1. Many clouds worldwide2. Many pricing models3. Markets for computing4. RightScale helps ...
But it’s not all about costsCase study:System infrastructure would have cost 37% less in AWS and 21% of supportcalls could...
Other considerations- Socio-technical factors- Security and compliance- Design for failure- Performance vs. cost trade-off...
Yeah ok I get it,the cloud is great…           but do you have a                 job for me?
Why you should join a startup•    Great learning environment•    Informal and fun•    Young people with lots of energy•   ...
RightScale
 Employee
 Meetup
 
Sunny
 Santa
 Barbara
 
Unplanned
 release
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Cloud costs: my 2 cents

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Transcript of "Cloud costs: my 2 cents"

  1. 1. Cloud costs: my 2 cents   Ali Khajeh-Hosseini @AliKhajeh, @PlanForCloud Nov 2012, University of Bristol
  2. 2. Why am I here?Show you how… cloud is changing IT spending
  3. 3. Global IT spending in 2012: $3.5 Trillion h#p://www.gartner.com/technology/research/it-­‐spending-­‐forecast/    
  4. 4. Jan 2009: Started PhD in St Andrews May 2010: PlanForCloud v.1 ready Feb 2011: Interned in California for 7 months Dec 2011: Hassan quit his job and joined Feb 2012: Launched PlanForCloud v.2 May 2012: Mountain View for YC interview
  5. 5. What the heck is… a cloud?
  6. 6. Server
  7. 7. Rack
  8. 8. Container
  9. 9. 2500 ServersElectricity, Water, Internet
  10. 10. a cloud
  11. 11. Around 60 Staff 30 Megawatts = Perth (Scotland)! 140 Containers 38,500 m2 = 4 ftbl pitches 360,000 Servers 500,000,000 Dollarsh#p://www.microso9.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx    
  12. 12. Cloud Computing   Infrastructure-as-a-Service Platform-as-a-Service Focus of my talk   Software-as-a-Service
  13. 13. PlanForCloud helps users make decisions RightScale helps users do it
  14. 14. How much would it cost to deploy my systems on Cloud X?Would it be cheaper if I use deployment option X or Y?What happens to my costs if:-  my system grows?-  cloud provider changes prices?
  15. 15. IT managers Software Engs Consultants AccountantsUsers
  16. 16. Why do people care?Cloud computing has many benefits- Elasticity- Pay-per-use pricing...
  17. 17. Capacity planning Images  taken  from  h#p://aws.amazon.com/economics/    
  18. 18. Animoto’s crazy scale-out Scale-out from 50 to 4,000 servers in 3 days h#p://blog.rightscale.com/2008/04/23/animoto-­‐facebook-­‐scale-­‐up/  
  19. 19. Zynga’s Z-CloudLaunch new games on public cloudsMove to private cloud when usage patterns are understood h#p://www.rightscale.com/customers/zynga-­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php   h#p://code.zynga.com/2012/02/the-­‐evoluKon-­‐of-­‐zcloud/  
  20. 20. There are many providers and pricing models
  21. 21. Example: a MySQL DatabaseAWS Relation Database Service (RDS)- Up-front reservation fee (optional)- CPU: $X/hour (based on instance type and cloud)- Storage: $X/GB/month- Transactions: $X/Millions of I/O ops- Provisioned IOPS: $X/IOPS/month (has other limitations)- Redundancy: double the CPU hourly rate- Data transfer: $X/GB (tiered across cloud)
  22. 22. What the heck?I just wanted a simple database PlanForCloud simplifies this
  23. 23. around 10,000 prices in PlanForCloud
  24. 24. There are different purchase options- On-Demand: fixed rate- Reserved: pay upfront, lower rate- Spot: Bid how much you would pay- Discounts and consolidated bills
  25. 25. AWS Reserved Instances up-front procurement to pay-per-use You have to specify: term (1/3 yr), utilization, availability zone, instance type and OS when buying a RIImage  taken  from  h#p://aws.typepad.com/aws/2011/12/reserved-­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html  
  26. 26. AWS Reserved Instances Marketplace Buy and sell reservations
  27. 27. AWS Spot Prices Bid for an instance, it’ll get switched on if bid >= spot price. You pay spot price, AWS sets it.h#p://www.cs.technion.ac.il/~ladypine/spotprice-­‐slides-­‐postmortem.pdf  
  28. 28. Prices change (feels like there’s a price war between providers)Re-generate cost forecast in PlanForCloud
  29. 29. Ok so that all sounds cool… but is anyone doing this for real?
  30. 30. How much would Pinterest or TripAdvisor cost to host on the cloud?  h#p://highscalability.com/blog/2012/11/1/cost-­‐analysis-­‐tripadvisor-­‐and-­‐pinterest-­‐costs-­‐on-­‐the-­‐aws-­‐clo.html    
  31. 31. How much would it cost to deploy System X on Cloud Y? e.g. TripAdvisor’s 700K requests/min system on the AWS US-East cloud
  32. 32. $1.7M/year
  33. 33. Would it be cheaper to use deployment option X or Y?e.g. reserved instances, different types of instances, different cloud providers…
  34. 34. $0.9M/year(using reserved instances) 1st month: $450K After: $38K/month
  35. 35. What happens to costs if system grows? e.g. start with 410TB of S3 storage, then grow by 25% every month
  36. 36. Currently: $39K/month1yr from now: $470K/month
  37. 37. It’s starting to get interesting1. Many clouds worldwide2. Many pricing models3. Markets for computing4. RightScale helps move between clouds Cost optimisation
  38. 38. But it’s not all about costsCase study:System infrastructure would have cost 37% less in AWS and 21% of supportcalls could have been eliminated, but stakeholders were more concerned withnon-technical issues.  Cloud  MigraKon:  A  Case  Study  of  MigraKng  an  Enterprise  IT  System  to  IaaS.  IEEE  3rd  Int.  Conf.  on  Cloud  CompuKng.  h#p://arxiv.org/pdf/1002.3492v1  
  39. 39. Other considerations- Socio-technical factors- Security and compliance- Design for failure- Performance vs. cost trade-off Don’t just optimise for cost
  40. 40. Yeah ok I get it,the cloud is great… but do you have a job for me?
  41. 41. Why you should join a startup•  Great learning environment•  Informal and fun•  Young people with lots of energy•  Take work seriously, but not themselves•  Move quickly: Just F*ing Do It (JFDI)
  42. 42. RightScale
  43. 43.  Employee
  44. 44.  Meetup
  45. 45.  
  46. 46. Sunny
  47. 47.  Santa
  48. 48.  Barbara
  49. 49.  
  50. 50. Unplanned
  51. 51.  release
  52. 52.  (4AM)
  53. 53.  
  54. 54. We
  55. 55.  like
  56. 56.  to
  57. 57.  eat!
  58. 58.  
  59. 59. Edinburgh
  60. 60.  startup
  61. 61.  party
  62. 62.  
  63. 63. RightScale
  64. 64.  2012
  65. 65.  We’re hiring! www.PlanForCloud.com
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