AWS Partner Webcast - Improving Your AWS Cost Efficiency with Cloudability


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Reducing your Amazon Web Services (AWS) costs can be as easy as turning off unused resources and buying Reserved Instances. But as your AWS infrastructure grows, finding and acting on those opportunities to save becomes more challenging as the number or complexity of projects grows.

Review this webinar to learn how REA Group uses Cloudability AWS cost management tools to manage their infrastructure and reduce their own TCO, while taking advantage of a large and complex set of global deployments on AWS.

What you'll learn:
- How to find and shut down resources that aren’t being used
- Making decisions about Reserved Instance purchases that are easier, faster and more likely to save you money
- How to communicate those savings to stakeholders in finance and management

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AWS Partner Webcast - Improving Your AWS Cost Efficiency with Cloudability

  1. 1. Increasing Your AWS Cost Efficiency with Cloudability
  2. 2. Webinar Overview  Submit Your Questions using the Q&A tool.  A copy of today’s presentation will be made available on:  AWS SlideShare Channel@  AWS Webinar Channel on YouTube@ ccQXlxjSvJmw
  3. 3. Scott Ward Solution Architect Amazon Web Services J.R. Storment Co-Founder Cloudability Introducing Andrew Midgley Software Testing Lead REA Group
  4. 4.  Overview of AWS tools for resource utilization management  Case study: REA Group’s journey toward AWS cost and usage control using Cloudability  Demo of Cloudability’s cost management tools for AWS  Q&A What We’ll Cover
  5. 5. One of the primary reason businesses are moving so quickly to AWS and the cloud is increased agility.
  6. 6. Enterprises Can’t Afford to be Slow Add New Dev Environment Add New Prod Environment Add New Environment in APAC Add 1,000 Servers Remove 1,000 Servers Deploy 1 PB Data Warehouse Shut down 1 PB Data Warehouse AWS: Infrastructure in Minutes Old World: Infrastructure in Weeks
  7. 7. Global Services * China (Beijing) Region- EC2 Availability Zones: 1 Coming Soon 10 Regions* 26 Availability Zones* 51 Edge Locations
  8. 8. A Culture of Innovation On-Premises Experiment Infrequently Failure is expensive Less Innovation Experiment Often Fail quickly at a low cost More Innovation
  9. 9. Cost Savings and Flexibility
  10. 10. Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013 1 “Average of 400 servers replaced per customer” Replace up-front capital expense with low variable cost 2 42 Price Reductions Economies of scale allow AWS to continually lower costs 4 Save more money as you grow bigger Tiered Pricing Volume Discounts Custom Pricing 3 Pricing model choice to support variable & stable workloads On-Demand Reserved Spot Dedicated How can you achieve lower TCO with AWS?
  11. 11. Pricing Models on AWS On-Demand Pay for compute capacity by the hour with no long- term commitments For spiky workloads, or to define needs Reserved Make a low, one-time payment and receive a significant discount on the hourly charge For committed utilization Spot Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand
  12. 12. Name: Andrew Midgley Date: June 12, 2014 AWS Cost Optimization @
  13. 13. About REA Group • REA Group is a $6 Billion Market Cap online business based in Australia • REA started an aggressive move to AWS in 2010 • I’ve been involved as a core part of that effort since the beginning 14
  14. 14. • Cloud adoption started in Dev/Test • All of our business units shared the same AWS account • Costs were controlled by simply adjusting AWS resources limits (such as ec2 node counts) Humble beginnings 15
  15. 15. • Resource limits created drama among internal users • Significant wins by optimizing EC2 type/size usage • Biggest win was employing the “Stopinator” Ad hoc cost controls were needed 16
  16. 16. • Our cloud adoption grew, increasing the need for detailed cost reporting • We had no way to allocate costs between four large business units • We needed to better understand our usage profile We had to go further 17
  17. 17. • Tagging • Mandatory “Business Unit” tag • Recommended environment/application tag • “Tag or terminate” • required to ensure that tagging was system-wide Step 1: Resource allocation 18
  18. 18. Then we introduced … Step 2: Cost visibility 19 • Satisfied management’s need for spending visibility • Immediately found $5000 in savings • Found a business unit that was actually under utilizing AWS • Cloudability quickly spread throughout the organization via workshops and intranet
  19. 19. Step 2: Cost visibility
  20. 20. Step 2: Cost visibility
  21. 21. • Saving/sharing interesting reports in Cloudability ◆ Underutilized resources: What’s not being used? ◆ Project specific reports on spending or resource usage • Dashboarding simple metrics using Cloudability json API Step 3: Making cost optimization “top of mind”
  22. 22. Costly habits could be clearly shown in dev/test environments ◆ Unused nodes ◆ Underutilized nodes ◆ Unnecessarily expensive nodes ◆ Old nodes ◆ Excessive node uptimes Step 4: The data made things clear
  23. 23. Midge’s Law • Used Cloudability API data to normalize dev/test environment “health” • Developed an algorithm to determine health/sickness of any dev/test environment Step 5: Putting the data to work avg hourly node cost ($) X avg node uptime (%) X sq rt of inverse of CPU utilization (%) X avg node running life (hrs) X avg daily unique nodes^1.3
  24. 24. Step 4: Learning from the data
  25. 25. Step 4: Learning from the data
  26. 26. • More sophisticated dashboarding with d3 and JS • Applying similar optimization principles in production • Further optimizing hourly rate with EC2 Reserved Instances Taking it to the next level
  27. 27. @cloudability
  28. 28. @cloudability Improving TCO on AWS: 5 Takeaways for Savings
  29. 29. @cloudability
  30. 30. @cloudability
  31. 31. @cloudability
  32. 32. ๏ @cloudab ility TCO Takeaways Putting AWS cost efficiency into action • Watch your AWS spending every day • Find what you’re not using so you can stop paying for it •Determine what “underutilized” means for various instance roles •Buy Reserved Instances iteratively and often
  33. 33. @cloudability@cloudability START A FREE 14-DAY TRIAL AT CLOUDABILITY.COM
  34. 34. Contacts and Q&A Contacts: Cloudability Info: AWS Contact: