Cost Optimisation on AWS
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Find out about how to optimize your cost infrastructure on the AWS platform.
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Cost Optimisation on AWS
- 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Cost Optimisation on AWS tuomas@amazon.com Tuomas Mäkinen– Manager Enterprise, Nordics
- 2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How to make your funding go further
- 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. LOWER COSTS WITH THE AWS CLOUD 2 31 4 Replace up-front capital expense with low variable cost Save more money as you grow bigger Economies of scale allow AWS to continually lower costs Pricing model choice to support variable & stable workloads
- 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. THE PRICING JOURNEY CONTINUES
- 5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. LOWER COSTS THAN ON-PREMISES On-Premises Traditional Data Centre On-Premises Virtualised Data Centre AWS CAPEX CAPEX OPEX OPEX OPEX Cost savings from running internal IT more efficiently Cost savings from moving to a cloud provider AWS Scale • Multiple new data centres built each year • Volume purchasing, highly automated supply chain optimisation Utilisation fundamentally higher in the AWS Cloud • Aggregating non-correlated workloads, scale, spot market Amazon specific hardware designs • OEM acquisition of custom servers and networking equipment • Direct purchasing of memory, disk & CPU • AWS controlled hypervisor and network protocol layers
- 6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. OPTIMIZE FOR FURTHER SAVINGS
- 7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS PRICING PHILOSOPHY More AWS Usage More Infrastructure More Customers Lower Infrastructure Costs Economies of Scale Reduced Prices Ecosystem Global Footprint New Features New Services Infrastructure Innovation 62PRICE REDUCTIONS We pass the savings along to our customers in the form of low prices and continuous reductions
- 8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. COST OPTIMISATION TIPS & TRICKS
- 9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 1. CHOSE THE RIGHT INSTANCE TYPES Choose an instance that best meets your basic requirements Start with memory & then choose closest virtual cores Assess peak IOPS storage requirements Run multiple instances in multiple Availability Zones Change instance size up or down based upon monitoring Use CloudWatch & Trusted Advisor to assess START DEPLOY & SCALETUNE
- 10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 2. USE AUTO SCALING LAUNCH CONFIGURATION Describes what Auto Scaling will create when adding Instances Only one active launch configuration at a time as-create-launch-config --image-id ami-54cf5c3d --instance-type m1.small --key mykey --group webservers --launch-config 101-launch-config AUTO SCALING GROUP Auto Scaling managed grouping of EC2 instances Automatically scale the number of instances by policy as-create-auto-scaling-group 101-as-group --availability-zones us-east-1a us-east-1b --launch-configuration 101-launch-config --load-balancers myELB --max-size 5 --min-size 2 AUTO SCALING POLICY Parameters for performing an Auto Scaling action Scale Up/Down and by how much as-put-scaling-policy 101ScaleUpPolicy --auto-scaling-group 101-as-group --adjustment=1 --type ChangeInCapacity --cooldown 300
- 11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 UTILISATION & AUTO SCALING GRANULARITY
- 12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 UTILISATION & AUTO SCALING GRANULARITY 41 Instance Hours m4.large @ $0.108/hr = $4.428/day
- 13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 UTILISATION & AUTO SCALING GRANULARITY 70 Instance Hours t2.medium @ $0.047/hr = $3.29/day
- 14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 3. TURN OFF UNUSED INSTANCES Development/test instances Simple instance stop/start Tear down & build rapidly Treat resources as disposable Deployment & Management Containers Dev/ops Tools Resource Templates Usage Tracking Monitoring and Logs
- 15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 4. USE RESERVED INSTANCES 100% 75% 58% 38% 13% 8% On Demand Instance Reserved Instance
- 16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RI PRICING | T2.SMALL IN EUROPE (LONDON)
- 17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS SERVICES OFFERING RESERVATIONS Amazon EC2 up to 75% savings Amazon RDS up to 76% savings Amazon DynamoDB up to 76% savings Amazon Redshift up to 73% savings Amazon ElastiCache up to 70% savings
- 18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 5. USE SPOT INSTANCES Pricing Up to 92% discount Elastic Capacity not otherwise available Tradeoff Potential for interruption
- 19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. USING SPOT INSTANCES FOR HPC WORKLOADS 0 18 35 53 70 88 On-Premises AWS $68M $33K Cost Comparison 1.21 PFLOPS, 16,788 EC2 Instances in 8 Regions, 264 years of computing in 18 hours
- 20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 6. MAKE USE OF APPROPRIATE STORAGE CLASSES Amazon S3 • 99.999999999% durability • Great for data that is used often • $0.023 per GB Amazon S3 Standard - Infrequent Access • Same durability as S3 • $0.0125 per GB Amazon Glacier • Same durability as S3 • 3 to 5 hours restore time • Up to 67% savings • Great for archiving, long-term backups and cold or old data
- 21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 7. OFFLOAD FROM YOUR ARCHITECTURE The more you can offload, the less infrastructure you need to maintain, scale and pay for • Offload traffic to Amazon CloudFront and S3 • Introduce Caching No CDN ResponseTime InstanceLoad ResponseTime InstanceLoad CDN for Static Content ResponseTime Instance Load CDN for Static & Dynamic Content
- 22. 8. USE SERVICES, DON’T REINVENT THE WHEEL ENTERPRISE APPS DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS Data Warehousing Hadoop/S park Streaming Data Collection Machine Learning Elastic Search Virtual Desktops Sharing & Collaboration Corporate Email Backup Queuing & Notifications Workflow Search Email Transcoding One-click App Deployment Identity Sync Single Integrated Console Push Notifications DevOps Resource Management Application Lifecycle Management Containers Triggers Resource Templates TECHNICAL & BUSINESS SUPPORT Account Management Support Professional Services Training & Certification Security & Pricing Reports Partner Ecosystem Solutions Architects MARKETPLACE Business Apps Business Intelligence DatabasesDevOps Tools NetworkingSecurity Storage Access Control Identity Management Key Management & Storage Monitoring & Logs Assessment & Reporting Resource & Usage Auditing SECURITY & COMPLIANCE Configuration Compliance Web Application Firewall HYBRID ARCHITECTURE Data Backups Integrated App Deployments Direct Connect Identity Federation Integrated Resource Management Integrated Networking API Gateway IoT Rules Engine Device Shadows Device SDKs Registry Device Gateway Streaming Data Analysis Business Intelligence Mobile Analytics Regions Availability Zones Points of Presence INFRASTRUCTURE CORE SERVICES Compute VMs, Auto-scaling, & Load Balancing Storage Object, Blocks, Archivals, Import/Export Databases Relational, NoSQL, Caching, Migration Networking VPC, DX, DNS CDN
- 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AVOID UNDIFFERENTIATED HEAVY LIFTING Amazon Relational Database Service (RDS) Elastic Load Balancing Amazon Simple Queue Service (SQS) Amazon ElastiCache Amazon Elastic MapReduce Amazon Simple Notification Service (SNS)
- 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 9. USE CONSOLIDATED BILLING • Receive a single bill for all charges incurred across all linked accounts • Share RI discounts • Combine tiering benefits
- 25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 10. TAKE ADVANTAGE OF AWS TOOLS AWS Trusted Advisor
- 26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 10. TAKE ADVANTAGE OF AWS TOOLS AWS EC2 Usage Reports AWS Cost Explorer
- 27. © 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Marketplace Accelerating Innovation and Reducing Cost Using Cloud-based Software Procurement
- 28. • Ongoing catalog additions • Version updates* • Vendor supply portal • Centralize digital assets *Vendor dependent • Sunset older versions • Add instance type/region • Actively monitor health and expansion • 7/24 scanning • Vulnerability notifications and removal/work-rounds • MCO team AWS Marketplace: A Public Managed Catalog
- 29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. ENTERPRISE APPSDEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS Data Warehousing Hadoop/Spark Streaming Data Collection Machine Learning Elastic Search Virtual Desktops Sharing & Collaboration Corporate Email Backup Queuing & Notifications Workflow Search Email Transcoding One-click App Deployment Identity Sync Single Integrated Console Push Notifications DevOps Resource Management Application Lifecycle Management Containers Triggers Resource Templates MARKETPLACE Business Apps Business Intelligence Databases DevOps Tools Networking Security Storage Regions Availability Zones Points of Presence INFRASTRUCTURE CORE SERVICES Compute VMs, Auto-scaling, & Load Balancing Storage Object, Blocks, Archival, Import/Export Databases Relational, NoSQL, Caching, Migration Networking VPC, DX, DNS CDN Access Control Identity Management Key Management & Storage Monitoring & Logs Assessment and reporting Resource & Usage Auditing SECURITY & COMPLIANCE Configuration Compliance Web application firewall HYBRID ARCHITECTURE Data Backups Integrated App Deployments Direct Connect Identity Federation Integrated Resource Management Integrated Networking API Gateway IoT Rules Engine Device Shadows Device SDKs Registry Device Gateway Streaming Data Analysis Business Intelligence Mobile Analytics Operating Systems Market Software Augments the AWS Platform
- 30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Marketplace Discover, Procure, Deploy, and Manage Software in the Cloud • 135,000+ active customers • 3,800+ software listings • Over 1,200 participating ISVs • Open source and commercial software • Bring-your-own-license • Procure new • Available in all new regions • Over 370 M of deployed EC2 instances per month
- 31. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. • Buying software has been historically slow, difficult, and resource-intensive • A lot of “shelf ware” with capital tied up and under-utilized • Customers have urgent and short-term need of software for a project What Do Customers Tell Us About Software Procurement and Management?
- 32. What’s the Value for Customers? Tie software costs to actual usage, deploy in minutes, consolidate IT expenses Rapidly deployPay-as-you-go Easily procure
- 33. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. @AWScloud for Global AWS News & Announcements Thank you
Editor's Notes
- * Mention prior episode and other series * Materials Download * Questions + our SA team * Social Media * Feedback & Rate at the end
- Little story about my past and cost optimisation In-platform tools to let you optimise your cost —> topic of this session
- James Hamilton talk reference reInvent 2016
- Standard Reserved Instances provide you with a significant discount (up to 75%) compared to On-Demand instance pricing, and can be purchased for a 1-year or 3-year term. Customers have the flexibility to change the Availability Zone, the instance size, and networking type of their Standard Reserved Instances. Purchase Convertible Reserved Instances if you need additional flexibility, such as the ability to use different instance families, operating systems, or tenancies over the Reserved Instance term. Convertible Reserved Instances provide you with a significant discount (up to 45%) compared to On-Demand and can be purchased for a 3-year term.
- Spot Instance Pricing History for m4.large in us-east over the dec 16/jan 17 period. Max price in this period is $0.0229/hour, which is 21% of the on-demand price, so a 79% saving.
- Database vs CDN vs S3 Static HTML CDN Connection between CDN and DB is faster than browser-region
- Find these tools and more in the console via the My Billing Dashboard option on the account drop down menu
- Hallo and DANK VOOR Y KOMST! Today we’re going to talk about how software procurement is changing in the cloud. By the end of this presentation you will learn the answers to the following questions: How can I use AWS to reduce my time and effort to purchasing and managing software? How can I eliminate software waste in my organization? What are the specific next steps I need to take in order to start using AWS Marketplace?
- AWS Marketplace is a public managed catalog. The word managed is underlined there for a reason – this is not just a free for all catalog. We have teams the spend a ton of time vetting the n Vendor supply portal - you have a repository of all your software (single source of truth with the EULA, Your Software Subscriptions).
- How does it work AMIs, Pay as you Go, Annual, Metered, Private Pricing Deals Customer Benefits Deploy software on demand Curated software from trusted vendors Rapidly innovate Familiar technologies Simplified procurement and deployment Billed through AWS account Retire EDP commitments Lower TCO
- But not only the software portfolio is changing. As cloud computing become more widespread, customers want to not only simplify the way they consume Hardware but also simply the way the consume software
- 1. MP general benefits – pay as you go and per use, consolidate IT expenses on your AWS bill, deploy 3rd party products onto your own environment in few minutes. Which allow you to : (1) reduce Software waste, (2) tie Software costs to actual usage and (3) eliminate the need to maintain multiple billing relationships with 3rd party Software vendors.