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Cost Optimization in AWS

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Deep dive session on Cloud Financial Management Fundamentals and Cost Optimization in AWS.

Presented by Spencer Marley, APAC BD at the November 2018 AWSUGBLR Meetup

Published in: Software
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Cost Optimization in AWS

  1. 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Spencer Marley, APAC BD November 2018 AWS Cost Optimization
  2. 2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Who are you? Maths Geek Data & Analytics Finance & Accounting Developer
  3. 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  4. 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  5. 5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing Right-sizing • Selecting the cheapest instance while meeting performance needs • Look at CPU, RAM, storage, and network utilization to identify instances that could be right-sized
  6. 6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing m4.4xlarge $1.72 per hour m4.large $0.215 per hour 2. Check (CPU, RAM, network, disc) 1. Migrate/Provision and Run 3. Right-size 87% Saving 5. Save!4. Review Performance
  7. 7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing • AWS Trusted Advisor (Business/Enterprise Support) and AWS CloudWatch • AWS EC2 Right-sizing Solution • Netflix Janitor Monkey • 3rd party paid tools (including but not limited to): • Densify • STAX • CloudHealth • Cloudability
  8. 8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  9. 9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity Elasticity • Scale up and down to meet capacity requirements based upon CPU, RAM, network etc. • Automatically turn non- production off outside of working hours
  10. 10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity
  11. 11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity • AWS Auto Scaling and EC2 Fleet • AWS CloudWatch • AWS Instance Scheduler • 3rd party paid tools (including but not limited to): • GorillaStack • Skeddly • ParkMyCloud
  12. 12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  13. 13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models Pricing Models • On Demand, Spot and Reserved Instances • RIs are like bulk discount coupon booklets – one coupon every hour, which expires and does not accrue • RIs are a financial construct
  14. 14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models Less discount Greater discount Payment option No upfront Partial upfront All upfront Duration 1 year 3 year Operating system Others e.g. Windows Linux/UNIX Instance type Previous generation Current generation Class Convertible Standard
  15. 15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models • AWS Cost Explorer • RI Recommendations • RI Coverage/Utilization • AWS Budgets for RI Coverage/Utilization SNS/SES notifications • 3rd party paid tools (including but not limited to): • CloudHealth • Cloudability • CloudCheckr
  16. 16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  17. 17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes Hot Amazon S3 Warm Infrequent Access Cold Amazon Glacier
  18. 18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes Provisioned IOPS SSD (io1) General Purpose SSD (gp2) Throughput Optimized HDD (st1) Cold HDD (sc1) $0.125/GB-month $0.10/GB-month (20% cheaper) $0.045/GB-month (64% cheaper) $0.025/GB-month (80% cheaper)
  19. 19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes • Amazon S3 Analytics • AWS Trusted Advisor • 3rd party paid tools (including but not limited to): • CloudHealth • Cloudability • CloudCheckr • STAX • Cloud Conformity
  20. 20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  21. 21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms • As well as technical and financial constructs, it is important to have a culture and mechanisms to support Cost Optimization • Tagging resources and defining cost metrics (e.g. unit cost) are key to driving responsibility and efficient behavior
  22. 22. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms Analyze spend by BU, account, service, etc. What has changed and why? Instance utilization metrics. Are the instances of the right size and well utilized? Peak vs. off-peak cost and usage. Are instances turned off when they are not needed? RI coverage and utilization, Spot usage. Are RIs and Spot being used?
  23. 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms • AWS Cost Explorer • AWS Budgets • AWS Cost and Usage Reports • AWS Config and Lambda
  24. 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  25. 25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost Spot instances can be used for: • Production & non-production workloads • Queue and batch-based processing • Hadoop/Spark/Big Data workloads • Stateless applications (e.g. web tiers) • CI/CD pipelines • Containerized workloads • Video transcoding
  26. 26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost Consolidated Billing Serverless Unused Elastic IPs Amazon CloudFront Containerization Open Source
  27. 27. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost • AWS Organizations • Spot Bid Advisor • AWS Step Functions • 3rd party paid tools (including but not limited to) • SpotInst • BidElastic
  28. 28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  29. 29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The 3 Key Takeaways Cost Explorer Training on YouTube and A Cloud Guru Reserve, Review, Rinse, Repeat.
  30. 30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Thank you! spmarley@amazon.com https://www.linkedin.com/in/spencermarley/

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