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Improve your TCO and Optimise your Cloud Spend


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Improve your TCO and Optimise your Cloud Spend

  1. 1. Improve your TCO and Optimise your Cloud Spend Peter “Dr Pete” Stanski Principal Solution Architect <>
  2. 2. Agenda What would it cost to run on AWS? How can I reduce my AWS Spend? Total Cost of Ownership Cost Optimization SATechTipstoReduce$
  3. 3. Lower Costs with AWS 1 Replace up-front capital expense with low variable cost 2 42 Price Reductions Economies of scale allow AWS to continually lower costs 3 Pricing model choice to support variable & stable workloads 4 Save more money as you grow bigger On-Demand Reserved Spot Tiered Pricing Volume Discounts Custom Pricing Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” Dec 2013
  4. 4. AWS Pricing Philosophy More AWS Usage More Infrastructure Economies of Scale Lower Infrastructure Costs Reduced Prices More Customers Ecosystem Global Footprint New Features New Services Infrastructure Innovation We pass the savings along to our customers in the form of low prices and continuous reductions 42
  5. 5. Lower Costs than on-premises On-Premises Traditional Data Center On-Premises Virtualized Data Center CAPEX OPEX OPEX AWS CAPEX OPEX* Cost savings from running internal IT more efficiently AWS Scale •  New data centers built each year •  Volume purchasing, highly automated, supply chain optimization Utilization fundamentally higher in AWS cloud •  Aggregating non-correlated workloads, scale, spot market Amazon specific hardware designs •  OEM acquisition of custom servers & net gear •  Direct purchasing of disk, memory, & CPU •  AWS controlled hypervisor & net protocol layers Diagram is not to scale *For AWS, OPEX costs includes Reserved Instances one-time low, upfront payment, if Reserved Instances are used. Cost savings from moving to a public cloud provider
  6. 6. AWS TCO benefits increase over time… $3.50 in benefits $1 Investment in AWS $1 Investment in AWS $8.40 in benefits At 36 Months of using AWS… At 60 Months of using AWS… ~3X ~8X Source: IDC Business Value of AWS Accelerates over time According to IDC, this relationship between length of time using AWS and return is due to customers leveraging the more optimized environment to generate more applications along a learning curve.
  7. 7. Comparing TCO is not easy (But We’re Going to Try) ≠
  8. 8. Typical cost drivers for on-premises deployments, including overhead costs Network Costs Storage Costs Server Costs Hardware – Server, Rack Chassis PDUs, ToR Switches (+Maintenance) Software - OS, Virtualization Licenses (+Maintenance) Overhead Cost Space Power Cooling Hardware – Storage Disks, SAN/FC Switches Overhead Cost Storage Admin costs Network Hardware – LAN Switches, Load Balancer Bandwidth costs Network Admin costs Overhead Cost IT Labor Costs Server Admin Virtualization Admin 1 2 3 4 Space Power Cooling Space Power Cooling illustrative Diagram doesn’t include every cost item. E.g. software costs can include database, management, middle tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.
  9. 9. AWS offers services that include overhead costs in the price Hardware Vendor Offering ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Server Network Hardware Software OS + VMs DC/Co-lo Floor Space Powering Cooling Software Defined Networking Personnel Admins HW Maint. Storage Redundancy Resource Mgmt. /SW Automation × × × × ××× ×
  10. 10. In Your TCO Analysis Power/Cooling (compute, storage, shared network) Data Center Administration (procurement, design, build, operate, network, security personnel) Rent/Real Estate (building deprecation, taxes) Software (OS, Virtualization Licensing & Maintenance) RAW vs. USABLE storage capacity Storage Redundancy (RAID penalty, OS penalty) Storage Backup costs (Tape, backup software) Bandwidth, Network Gear & Redundancy (Routers, VPN, WAN..) DON’T FORGET THINK BENEFITS Procurement Time, Resource sitting on self Cost of lost customers Less down time, increased productivity
  11. 11. Agenda What would it cost to run on AWS? How can I reduce my AWS Spend? Total Cost of Ownership Cost Optimization
  12. 12. 1. Choose the right Instance types Start Choose an instance that best meets your basic requirements Start with memory & then choose closest virtual cores Look for peak IOPS storage requirements Tune Change instance size up or down based upon monitoring Use CloudWatch & Trusted Advisor to assess Roll-Out Run multiple instances in multiple Availability Zones
  13. 13. 1, 1.7, $0.060 1, 3.75, $0.113 2, 3.75, $0.145 2, 7.5, $0.225 2, 17.1, $0.410 4, 7, $0.300 4, 15, $0.450 4, 34.2, $0.820 8, 15, $0.600 8, 30, $0.900 8, 68.4, $1.640 4, 30.5, $0.853 8, 61, 1.705 16, 30, $1.200 32, 60, $2.400 32, 244, $3.500 16, 122, $3.410 16, 117, $4.600 32, 244, $6.820 0 50 100 150 200 250 300 0 5 10 15 20 25 30 Choosing EC2 Instances On Demand Prices shown (N.Virginia region), only latest generation instances (M3,C3) shown where applicable, GPU and Micro instances not shown above Memory-Optimized Instances Compute-Optimized Instances General Purpose Instances Storage-Optimized Instances vCPU RAM
  14. 14. Automatic resizing of compute clusters based on demand Trigger autoscaling policy Feature   Details   Control   Define  minimum  and  maximum  instance  pool   sizes  and  when  scaling  and  cool  down  occurs.   Integrated  to  Amazon   CloudWatch   Use  metrics  gathered  by  CloudWatch  to  drive   scaling.   Instance  types   Run  Auto  Scaling  for  On-­‐Demand  and  Spot   Instances.  CompaEble  with  VPC.   AWS autoscaling create-autoscaling-group — Auto Scaling-group-name MyGroup — Launch-configuration-name MyConfig — Min size 4 — Max size 200 — Availability Zone(s) ap-southeast-2a & 2b 2. Use Auto Scaling Amazon CloudWatch
  15. 15. Utilization and Auto-Scaling: Granularity more small instances vs. less large instances
  16. 16. 3. Turn Off un-used Instances •  Dev./test/training instances •  Use simple instance start/stop, or •  Tear down/build up altogether •  Instances are disposable
  17. 17. 0 2 4 6 8 10 12 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 On Demand Light Utilization RI Medium Utilization RI Heavy utilization RI /Spot Instances 4. Use Reserved Instances Reserved Instances enable you to reserve capacity for one or three years by paying a low, one-time fee for the capacity reservation and receiving a significant discount on the hourly charge for your instances Amazon EC2 Amazon RDS Amazon DynamoDB Amazon Redshift Amazon ElastiCache AWS Services offering Reservations
  18. 18. 5. Use Spot Instances •  Pricing •  Up to 92% discount •  Elastic •  Capacity not otherwise available •  Tradeoff •  Potential for interruption Picking the right Spot Bid Price - Tolerance for interruptions, % likelihood of termination
  19. 19. 6. Leverage Storage Classes AWS Cloud Amazon Glacier Gateway Appliance/ AWS Storage Gateway Amazon S3 Block File On-premises Data Center Archive Backup Disaster Recovery Amazon EBS •  Amazon S3 Reduced Redundancy •  99.99% durability vs. 99.999999999% •  Up to 20% savings •  Great for everything that is easy to reproduce •  Amazon Glacier •  Same durability as S3 •  3 to 5 hours restore time •  Up to 67% savings •  Great for archiving, long-term backups and old data
  20. 20. 7. Offload your Architecture + Standard Setup •  4 x Medium Instances $485 •  AWS Data Transfer 1 TB $194 •  Total = $679 Optimized •  1 x Medium Instance $121 •  CloudFront Data 1 TB $168 •  CloudFront Requests $1.89 •  Total = $291 57% 6X Cheaper Faster
  21. 21. 8. Leverage Application Services Elastic Load Balancing Amazon Relational Database Service (RDS) Amazon Simple Queue Service (SQS) Amazon Simple Email Service (SES) Amazon Elastic MapReduce Amazon ElastiCache Amazon Simple Notification Service (SNS)
  22. 22. 9. Consolidated Billing •  Receive a single bill for all charges incurred across all linked accounts •  Share RI discounts •  Combine tiering benefits •  View & manage linked accounts •  Add additional accounts
  23. 23. 10. Leverage AWS Tools AWS Trusted Advisor AWS EC2 Usage Reports
  24. 24. AWS Cost Explorer Monthly Spend by service AWS Monthly Spend
  25. 25. TCO Calculator
  26. 26. Dr Pete’s Black Belt Tip #1 Auto-scaling with Spot Instances Design Pattern RI Instance Elastic Load Balancer Auto scaling Group (Bid $) Virtual Private Cloud Auto scaling Group (Max:1 Min: 1) Spot Instance Spot Instance
  27. 27. Dr Pete’s Black Belt Tip #2 The floating EBS Volume Pattern Auto scaling Group (Bid $) Spot Instance Spot Instance Data Volume (Tag: Spot1) Data Volume (Tag: Spot2) Auto scaling Group (Bid $) Spot Instance Spot Instance Data Volume (Tag: Spot1) Data Volume (Tag: Spot2) UserData: On boot Attach available EBS volume starting with “Spot*” Data Volume (Tag: SpotX)
  28. 28. ….AWS Support
  29. 29. AWS Support - 24 7 365 = Current Support Engineering Teams
  30. 30. More than simple ‘Break – Fix’ Support q  Access to Highly Skilled engineers from All industries •  Telco | Public Sector | Banking | AV | ISP | … q  Traditional Reactive and Trouble Shooting Support q  Proactive Support & Design Assistance •  Help you get started with AWS •  Design Support: Best Practices, Cost Optimization •  Assistance with Security & Best Practices •  Migration assistance: Transition from legacy system to the Cloud •  Configuration help for a growing list of 3rd Party Software •  Support your promotions and Events, Go Live!
  31. 31. Access to Support Tools YES Customer Service 24/7/365 YES YES YES YES Support forums YES YES YES YES Documentation, guides YES YES YES AUTO
 HEALTH CHECKS Access to Technical support E P/C/E P/C/E/TAM - Named contacts 1 5 Unlimited - Response time 12 hours 1 hour 15 minutes - Architecture Guidance Building blocks Guidance App / Architecture - Trusted Advisor - YES YES
  32. 32. Access to Support Tools: Trusted Advisor q  Cost Optimization q  Security q  Fault Tolerance q  Performance
  33. 33. Why Support? Traditional-to-Cloud Migrations Security, Cost Optimization & Design Guidance Engineer Assistance with ANY service
  34. 34. … AWS Training & Certification
  35. 35. AWS Training and Certification - Overview AWS Training and Certification is designed to help individuals delivering cloud- based solutions to gain proficiency with AWS services and solutions. AWS Instructor Led Training includes courseware, hands on labs and live classroom environment. Candidates learn to design, develop, and operate available, efficient, and secure applications on the AWS cloud delivered directly by AWS knowledge experts. Visit for a list of courses, locations and dates.
  36. 36. Learning Paths
  37. 37. Benefits of AWS Certifications AWS certifications certify the technical skills and knowledge associated with best practices for building secure and reliable cloud-based applications using AWS technology. Earning AWS Certification enables you to •  Demonstrate that you have skills, knowledge, and expertise to design, deploy, and manage projects applications on the AWS platform •  Gain recognition and visibility for your proven skills and proficiency •  Foster credibility with your employer and peers
  38. 38. AWS Certification Roadmap
  39. 39. AWS Certification
  40. 40. Summary •  TCO •  Not always apples to apples comparison •  Make reasonable assumptions and leverage benchmarks •  Know the on-premises hidden costs •  Cost Optimization •  Create cost-aware architectures and leverage AWS Best Practices •  Re-evaluate and revisit your architecture often •  Leverage Managed Services, CloudWatch •  Stay up to date – RI modifications, Trusted Advisor
  41. 41. What’s New to the Sydney Region •  Amazon Workspaces – fully managed desktop computing service •  EBS Encryption – EBS volume & snapshot encryption support •  S3 to Glacier for Versioned objects - Versioned Objects Lifecycle Rules support •  AWS CloudTrail - AWS API call logging for governance & compliance •  EC2 - Amazon EC2 G2 instances now available
  42. 42. Presenter Thank  you  for  your  =me  today