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Cloud costs: my 2 cents


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  • 1. Cloud costs: my 2 cents   Ali Khajeh-Hosseini @AliKhajeh, @PlanForCloud Nov 2012, University of Bristol
  • 2. Why am I here?Show you how… cloud is changing IT spending
  • 3. Global IT spending in 2012: $3.5 Trillion h#p://­‐spending-­‐forecast/    
  • 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. What the heck is… a cloud?
  • 6. Server
  • 7. Rack
  • 8. Container
  • 9. 2500 ServersElectricity, Water, Internet
  • 10. a cloud
  • 11. Around 60 Staff 30 Megawatts = Perth (Scotland)! 140 Containers 38,500 m2 = 4 ftbl pitches 360,000 Servers 500,000,000 Dollarsh#p://­‐02DublinDataCentre.mspx    
  • 12. Cloud Computing   Infrastructure-as-a-Service Platform-as-a-Service Focus of my talk   Software-as-a-Service
  • 13. PlanForCloud helps users make decisions RightScale helps users do it
  • 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. IT managers Software Engs Consultants AccountantsUsers
  • 16. Why do people care?Cloud computing has many benefits- Elasticity- Pay-per-use pricing...
  • 17. Capacity planning Images  taken  from  h#p://    
  • 18. Animoto’s crazy scale-out Scale-out from 50 to 4,000 servers in 3 days h#p://­‐facebook-­‐scale-­‐up/  
  • 19. Zynga’s Z-CloudLaunch new games on public cloudsMove to private cloud when usage patterns are understood h#p://­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php   h#p://­‐evoluKon-­‐of-­‐zcloud/  
  • 20. There are many providers and pricing models
  • 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. What the heck?I just wanted a simple database PlanForCloud simplifies this
  • 23. around 10,000 prices in PlanForCloud
  • 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. 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://­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html  
  • 26. AWS Reserved Instances Marketplace Buy and sell reservations
  • 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://­‐slides-­‐postmortem.pdf  
  • 28. Prices change (feels like there’s a price war between providers)Re-generate cost forecast in PlanForCloud
  • 29. Ok so that all sounds cool… but is anyone doing this for real?
  • 30. How much would Pinterest or TripAdvisor cost to host on the cloud?  h#p://­‐analysis-­‐tripadvisor-­‐and-­‐pinterest-­‐costs-­‐on-­‐the-­‐aws-­‐clo.html    
  • 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. $1.7M/year
  • 33. Would it be cheaper to use deployment option X or Y?e.g. reserved instances, different types of instances, different cloud providers…
  • 34. $0.9M/year(using reserved instances) 1st month: $450K After: $38K/month
  • 35. What happens to costs if system grows? e.g. start with 410TB of S3 storage, then grow by 25% every month
  • 36. Currently: $39K/month1yr from now: $470K/month
  • 37. It’s starting to get interesting1. Many clouds worldwide2. Many pricing models3. Markets for computing4. RightScale helps move between clouds Cost optimisation
  • 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://  
  • 39. Other considerations- Socio-technical factors- Security and compliance- Design for failure- Performance vs. cost trade-off Don’t just optimise for cost
  • 40. Yeah ok I get it,the cloud is great… but do you have a job for me?
  • 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. RightScale
  • 43.   Employee
  • 44.   Meetup
  • 45.   
  • 46. Sunny
  • 47.   Santa
  • 48.   Barbara
  • 49.   
  • 50. Unplanned
  • 51.   release
  • 52.   (4AM)
  • 53.   
  • 54. We
  • 55.   like
  • 56.   to
  • 57.   eat!
  • 58.   
  • 59. Edinburgh
  • 60.   startup
  • 61.   party
  • 62.   
  • 63. RightScale
  • 64.   2012
  • 65.   We’re hiring!