Cost Optimisation Solutions on AWS

3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Ask the AWS Experts Our Experts are online to answer any questions you have during the presentation. Ask your questions via the Questions Window on the GoToWebinar Control Panel

5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Today’s Agenda Cost optimisation levers and tools Commercial Management ?Next steps, Survey, and Q&A Finance team considerations How AWS helps you realise value and save cost

7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What is Cloud Computing? It’s Similar to a Power Grid Labor & Time Intensive We Need To Manage Responsible For Repairs Build Your Own Power Plant

8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What is Cloud Computing? It’s Similar to a Power Grid Labor & Time Intensive We Need To Manage Responsible For Repairs Leverage Established Resources Centrally Managed by 3rd Party Upgrades Provided Build Your Own Power Plant Plug Into A Power Grid

9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Now, in the Context of Today’s IT Investments Large, Upfront Capital Investment We’re Responsible For Upgrades Slow To Get New Capabilities Build Your Own Datacenter

10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Large, Upfront Capital Investment We’re Responsible For Upgrades Slow To Get New Capabilities Pay For What You Use Automatic Upgrades Of Functionality Access To Feature-Rich Platform Plug Into The Cloud Now, in the Context of Today’s IT Investments Build Your Own Datacenter

13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS shares how to save cost on AWS AWS re:Invent 2016: Cost Optimizing Your Architecture: Practical Design Steps For Savings (ARC310)

14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. You can significantly reduce your Total Cost of Ownership on AWS compared to on-premise infrastructure “We’ve realized a 52 percent reduction in TCO … Ultimately these savings are a byproduct of doing the right thing.” Ben Cabanas, CTO, GE Transportation “Three years on, we’ve saved over $100 million in avoided capital and are about 65% in the cloud.” Dominic Shine, CIO News Corp Leveraging the AWS platform, we’ve been able to seamlessly scale our infrastructure, better serve our customers across the globe, and reduce our fixed costs by 75% and operational costs by 83%. Valentino Volonghi, CIO AdRoll

15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. COST SAVINGS Cost savings are only the tip of the iceberg … BUSINESS AGILITY OPERATIONAL RESILIENCE STAFF & RESOURCE EFFICIENCY https://aws.amazon.com/solutions/case-studies/ GLOBAL REACH NEW REVENUE STREAMS

17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Optimisation levers drive down costs over time Owned AWS Serverless Application AWS highly optimised ~90% Less Cost Real Estate Facilities Networking SAN Servers Power Storage Hypervisor Operating System Application EBS (Block Storage) S3 (Object Storage) EC2 (Servers) Application AWS + basic optimisation ~20-50% Less Cost

18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The 4 basic pillars of Cost Optimisation Right Sizing Your Instances Pick the Right Pricing Model Increase Elasticity Match Usage to Storage Class “You can use more efficiently, use less, or pay less”

19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pillar 1: Right Sizing Right Sizing • Selecting the cheapest instance while meeting performance needs • Look at CPU, RAM, storage, and network utilisation to identify instances that could be downsized

20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 87% Saving Right Sizing example m4.4xlarge $1.72 per hr m4.large $0.215 per hr 2. Check (CPU, RAM, network, disc) 1. Migrate/provision & Run 3. Right Size 5. Save!4. Review Performance

21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right Sizing tools Cost Optimisation: EC2 Right Sizing https://aws.amazon.com/answers/account- management/cost-optimisation-ec2-right- sizing/ AWS trusted advisor Comes with Business and Enterprise support. Points out idle resources.

25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity Tools EC2 Instance Scheduler Semi managed option https://aws.amazon.com/answers/infrastructur e-management/ec2-scheduler/ Lambda Start-Stop guide DIY option https://aws.amazon.com/premiumsupport/kno wledge-center/start-stop-lambda-cloudwatch/ GorillaStack Fully managed 3rd party solution https://aws.amazon.com/documentation/ autoscaling/ Guide to autoscaling

28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What are Reserved Instances (RIs)? RIs are like discount coupon booklets • Each RI gives one coupon per hour per instance being reserved over the term of the RI (e.g. a 1 year RI provides 24*365 coupons) • The coupon provides a discount in exchange for commitment • Each individual coupon expires at the end of each hour • RIs are a financial construct/layer on top of your AWS infrastructure RI coupon

29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RI coverage Total use Key Reserved Instances for one financial services customer resulted in 39% decrease in unit cost Reserved Instance purchase

30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RIs are best used for Always-On instances (can still be used to save for non-always on) Commitment level 1 year (approx. payback 7-9 months) 3 year (approx. payback 10-18 months) AWS services offering RIs Amazon EC2 & EC2 Hosts Amazon RDS Amazon Redshift Amazon ElastiCache Amazon DynamoDB* Amazon CloudFront* *Discount for commitment, but not a RI

31. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. EC2 RI matching properties • Instance type: m4.xlarge • Operating System: Linux/UNIX, Windows, Windows with SQL Server Standard, etc. • Region: ap-southeast-2 (Sydney) o or AZ: ap-southeast-2a • Tenancy: Shared, dedicated

32. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding the different EC2 RI types 1 year 3 years Standard Regional (with Linux/Unix Size Flex) Regional AZ-Specific (with capacity reservation) AZ-Specific Convertible Regional (new) Regional AZ-Specific (new) AZ-Specific Note: can easily switch between Regional and AZ-Specific at no cost Shaded items affect pricing

33. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Convertible Reserved Instances With a Convertible Reserved Instance, you can modify your existing reservation across: Instance families Instance sizes Operating Systems Tenancy

34. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Convertible Reserved Instances You are committing to: 3 years (not refreshed on conversion) Region EC2 on AWS Spend (convert to equal or greater $)

35. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Instance Size Flexibility • Effective March 1, your existing Regional RIs are even more flexible! • All Regional Linux/UNIX RIs with shared tenancy now apply to all sizes of instances within an instance family and AWS region. • E.g. 1 m4.xlarge RI can apply to: 2 m4.large instances or ½ a m4.2xlarge instance

36. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RIs have priority to apply to instances in the same account as the RI http://docs.aws.amazon.com/awsaccountbilling/latest/ aboutv2/consolidated-billing.html RI can live here and this account will get priority to use it first RIs can also live here and this account will get priority to use the RI. Be sure to have RI console access to modify RIs if needed & billing console access to check RI utilisation

40. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Use appropriately sized Elastic Block Store (EBS) https://aws.amazon.com/ebs/details/ Provisioned IOPS SDD (io1) General Purpose SDD (gp2) Throughput Optimized HDD (st1) Cold HDD (sc1) Default Even cheaperCheaper

41. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes on Simple Storage Service (S3) Active data Archive dataInfrequently accessed data Standard (default) Hot Standard - Infrequent Access Warm Amazon Glacier Cold

42. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. S3 Analytics provides additional functionality over standard S3 lifecycle policies http://bit.ly/s3analytics Lifecycle policies also clean up incomplete multi-part uploads to S3

43. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Beyond the 4 pillars, there are many more ways to save… Containerization Consolidated billing Automation via AWS CloudFormation Release unused Elastic IPs Serverless & AWS Lambda ELB to Application Load Balancer (typically reduces cost) Architect with AWS CloudFront Migration to open source platforms & databases

49. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Define and agree mandatory (cost) tags with stakeholders from the Business Tagging -> Allocation -> Showback -> Chargeback -> Ownership -> Drive responsibility and efficient behaviour

51. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 3rd party tools can help you accelerate your automation and reporting maturity See: https://aws.amazon.com/aws-cost-management/ for AWS native tools

53. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Mechanisms for Optimisation for new starters Define, agree, and enforce cost allocation tagging Define metrics, set targets, and review Using out-of-the-box tools

55. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Potential solutions used by commercially mature customers Traditional IT Assumption Potential cloud solution Costs are largely static and predictable once they reach the BAU budget 101: Ask for $ forecast from engineers 201: Remove budgets for non-static cost and measure efficiency via $ per revenue, $ per dev.

56. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Potential solutions used by commercially mature customers Traditional IT Assumption Potential cloud solution Costs are largely static and predictable once they reach the BAU budget 101: Ask for $ forecast from engineers 201: Remove budgets for non-static cost and measure efficiency via $ per revenue, $ per dev. Approvals for projects and associated cost occur upfront 101: Put in place approvals for any spend 201: Place approval gate at transition from project spend to BAU spend based on whether business value drivers were met

57. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Potential solutions used by commercially mature customers Traditional IT Assumption Potential cloud solution Costs are largely static and predictable once they reach the BAU budget 101: Ask for $ forecast from engineers 201: Remove budgets for non-static cost and measure efficiency via $ per revenue, $ per dev. Approvals for projects and associated cost occur upfront 101: Put in place approvals for any spend 201: Place approval gate at transition from project spend to BAU spend based on whether business value drivers were met IT is treated as a cost center 101: Tagging & Enforcing tagging 201: Running all reports off the same cost-allocated data and assigning ownership through chargeback

58. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS provides a Total Cost of Ownership calculator to support your business case for migration https://aws.amazon.com/blogs/aws/the-new-aws-tco-calculator/

59. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Join our Commercial Optimisation (CO) Interest group to share CO best practices and learn from industry experts https://www.meetup.com/AWS-Commercial-Optimisation-Interest-Group-ASEAN/

62. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Feedback A feedback form will pop up when you exit the Webinar Console. Please help us to complete in order for us to improve our program.

63. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Webinar Series | More sessions are lined up Webinar Topic Date Language Webinar Time QR Code to Register AWS Artificial intelligence & Machine Learning Wednesday 22 Nov 2017 English 1pm – 2pm (SGT) Build a Website & Mobile App for your first 10 million users Thursday 23 Nov 2017 Thai 9am-10:30am (THT) AWS Cost Optimisation Solutions 1pm-2:30pm (THT) Please register at: https://aws.amazon.com/events/asean/webinars/

64. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Thank You You will receive today’s webinar recording and presentation deck, look out for it in your inbox.

Cost Optimisation Solutions on AWS

Cost Optimisation Solutions on AWS

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