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© 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Evan Crawford
Commercial Optimization - APAC Lea...
What to Expect from the Session
All of our customers…
Only pay for what they use
What to Expect from the Session
Some of our customers…
Only pay for what they need
What to Expect from the Session
we will share tips from our largest and most
innovative customers who only pay for what
th...
Example 1
Financial Services Enterprise
A Financial Services Enterprise
In twelve months…
A Financial Services Enterprise
Increased its
CPU usage
nine-fold
A Financial Services Enterprise
Only increased
its spend
four-fold
$260k saving per month!
Example 2
Technology Company
A Technology Company
In the last three
months…
A Technology Company
Doubled the CPU
and traffic used by
its Web servers
A Technology Company
Reduced its
instance spend
by 33%
$72k saving per month!
What levers did they pull?
Commercial Optimization Levers
Elasticity Step 1
Turn off Non
Production
Step 2
Auto Scale
Production
Commercial Optimization Levers
Right-Sizing Step 1
Use the Cheapest
Available Instance
Commercial Optimization Levers
Reserved Capacity Step 1
Cover always on
resources.
Target = 70%
always on covered
Step 2
L...
Example 1
Financial Services Enterprise
Elastic Compute Unit (ECU)
A consistent measure of CPU
processing power
Financial Services Enterprise
What Apr ‘14 Apr ‘15 Δ
Peak Compute
Usage
1,601k
ECU
13,957k
ECU
+772%
Instance Costs $59k p...
Financial Services Enterprise
Unit Cost:
Elastic Compute Unit
Per Hour
60% Reduction
in Unit Cost
Financial Services Enterprise
Apr 1 2014 Apr 30 2014
Consistent 1,000 to
1,100 ECUs provisioned
Financial Services Enterprise
Apr 1 2015 Apr 30 2015
Financial Services Enterprise
40% Reduction
in Unit Cost
Financial Services Enterprise
30% Reduction
in Unit Cost
Financial Services Enterprise
Financial Services Enterprise
Example 2
Technology Company
Technology Company
What June Aug Δ
Data Out (TB) 36 95
+163%
Compute
584k
ECU
1,192k
ECU
+104%
Instance Costs $36k pm $24k...
Technology Company
Cost:
Elastic Compute Unit
Per Hour
70% Reduction
in Unit Cost
Technology Company
C4 On Demand
= $0.02 / ECU
m1 On Demand
= $0.07 / ECU
Technology Company
Technology Company
60% Reduction
in Unit Cost
Technology Company
30% Reduction
in Unit Cost
Technology Company
How to use those levers
at scale?
Automation
Understand Opportunities
Automation
What we need to do
1. Auto-tag resources
2. Identify ‘always on’ Non Prod
3. Identify ...
Action Changes
1. Allocate costs by tag &
account
2. Turn off Non-Prod instances
daily
3. Quickly change instance
sizes
4....
How to set up Automated Tools
Dashboards
https://github.com/evancraw/AWSOptimizationTemplates
A Reasonably Optimized Dashboard
A Dashboard ripe with opportunity
Reserved Instances and Right-Sizing
Build Your Own
Reserved Capacity Recommendations
Right-Sizing Recommendations
https://github.com/evancraw/AWSOptimizationTemplates
From
Automatic Tagging
To
Automatic Tagging
http://ape.gs/AWSAutoTag
Tagging Governance with AWS Config
Right-size with cloud native provisioning
AWS CloudFormation
AWS OpsWorks
Handy Tools
Move RIs automatically
https://github.com/jros2300/reservedinstances
Tableau Templates
https://github.com/evan...
$
$
$
$
$
$
$
$
Something missing?
Unit
Cost
Why will those levers be used?
A Lean Culture
What Lean Culture Looks Like
Users: • Understand
• Take responsibility for
• Act to lower
The costs of their usage
as a no...
Build a Lean Culture
Targets and Metrics Cloud Competency
Center
AWS Enterprise
Support
A Cycle of Cost Optimization
✔
✔
✔
✔✘
✘
✘
✘
$
$
$
$
$
Metrics
1. % Instances turned off daily
2. % Instances right-sized
3. % Always On Resources Covered by RI
4. % RI Utilizat...
What Works
Think Big
Start Small
Learn Fast
Trust and Verify
Lean Culture
Watch out for
Wait until you get Big
Analysis Pa...
How do we explain the costs?
How do we allocate the charges to the right team?
How do we save money?
Whose responsibility ...
2 Years Ago
How do we explain the costs?
How do we allocate the charges to the right team?
How do we save money?
Whose responsibility ...
Cloud Engineering Team
1UP
Finance
Team
Track Down AWS Accounts
Consolidated Billing
Account A
Account B
Account C
Total
$$
$$$$
$$$
$$$$$$$
Single Monthly Invoice
Centralize AWS Account Creation
What is in the Accounts?
TAGS
Create a Tagging Policy
CSV
JSON
?
Our Tags
Cost Center
Responsible
Owner
Service
Name
Number of Tags vs Enough Information
Report on Tagging Progress
Tag at Resource Creation
Automate Tagging
Build Reports from the Tags
How do we Allocate the Charges to the Right Team?
Untagged Costs
How do we explain the costs?
How do we allocate the charges to the right team?
How do we save money?
Whose responsibility is it to save money?
Reserved Instances
Reserved Instances without Statistics
Statistics on Usage and Costs
Statistics on Usage and Costs
EC2 Usage by Hour
Always-On Load
Elastic Load
Convert Always-On into Elastic Load
Convert Always on to Elastic
EC2 Instance (M4.Large) Running Cost Savings
4 Weeks On Demand 24/7 $85 $0
Convert Always on to Elastic
EC2 Instance (M4.Large) Running Cost Savings
4 Weeks On Demand 24/7 $85 $0
4 Weeks Reserved I...
Convert Always on to Elastic
EC2 Instance (M4.Large) Running Cost Savings
4 Weeks On Demand 24/7 $85 $0
4 Weeks Reserved I...
Scheduled Run
Times
Scheduled Run Times
Scheduled Run
Times
(Batch Jobs)
Autoscaling
Rightsizing
Reserved Instances
Reserved Instances
Reserved Instances
Results
How do we Explain the Costs?
Tags Reports
How do we Allocate the Charges to the Right Team?
Reports
$
$
$
How do we Save Money?
Volume
Discounts
Reserved
Instances
Elastic
Load
Rightsizing
Whose Responsibility is it to Save Money?
$
Whose Responsibility is it to Save Money?
$
Thank you!
What to do next
Next Steps
Set up a Cloud
Competency Center
Bring in the right
tools
Use metrics to
reinforce behavior
Use partners to
acc...
Remember
There is a lot of money to save
Thank you!
Remember to complete
your evaluations!
Related Sessions
ISM206 - Modern IT Governance Through Transparency
and Automation
ISM207 - The Lean Enterprise: How the P...
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
(ISM402) Cost Optimization at Scale
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(ISM402) Cost Optimization at Scale

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Intended for customers who have (or will have) thousands of instances on AWS, this session is about reducing the complexity of managing costs for these large fleets so they run efficiently. Attendees will learn about common roadblocks that prevent large customers from cost optimizing, tools they can use to efficiently remove those roadblocks, and techniques to monitor their rate of cost optimization. The session will include a case study that will talk in detail about the millions of dollars saved using these techniques. Customers will learn about a range of templates they can use to quickly implement these techniques, and also partners who can help them implement these templates.

Published in: Technology

(ISM402) Cost Optimization at Scale

  1. 1. © 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Evan Crawford Commercial Optimization - APAC Lead Michael Fuller Principal Systems Engineer - Atlassian October 8, 2015 | Las Vegas, NV Cost Optimization at Scale ISM 402
  2. 2. What to Expect from the Session All of our customers… Only pay for what they use
  3. 3. What to Expect from the Session Some of our customers… Only pay for what they need
  4. 4. What to Expect from the Session we will share tips from our largest and most innovative customers who only pay for what they need. Your business can save lots with these tips!
  5. 5. Example 1 Financial Services Enterprise
  6. 6. A Financial Services Enterprise In twelve months…
  7. 7. A Financial Services Enterprise Increased its CPU usage nine-fold
  8. 8. A Financial Services Enterprise Only increased its spend four-fold $260k saving per month!
  9. 9. Example 2 Technology Company
  10. 10. A Technology Company In the last three months…
  11. 11. A Technology Company Doubled the CPU and traffic used by its Web servers
  12. 12. A Technology Company Reduced its instance spend by 33% $72k saving per month!
  13. 13. What levers did they pull?
  14. 14. Commercial Optimization Levers Elasticity Step 1 Turn off Non Production Step 2 Auto Scale Production
  15. 15. Commercial Optimization Levers Right-Sizing Step 1 Use the Cheapest Available Instance
  16. 16. Commercial Optimization Levers Reserved Capacity Step 1 Cover always on resources. Target = 70% always on covered Step 2 Leverage RI flexibility to increase utilization Target = 95% RI Utilization
  17. 17. Example 1 Financial Services Enterprise
  18. 18. Elastic Compute Unit (ECU) A consistent measure of CPU processing power
  19. 19. Financial Services Enterprise What Apr ‘14 Apr ‘15 Δ Peak Compute Usage 1,601k ECU 13,957k ECU +772% Instance Costs $59k pm $244k pm +313% $270k saving per month!
  20. 20. Financial Services Enterprise Unit Cost: Elastic Compute Unit Per Hour 60% Reduction in Unit Cost
  21. 21. Financial Services Enterprise Apr 1 2014 Apr 30 2014 Consistent 1,000 to 1,100 ECUs provisioned
  22. 22. Financial Services Enterprise Apr 1 2015 Apr 30 2015
  23. 23. Financial Services Enterprise 40% Reduction in Unit Cost
  24. 24. Financial Services Enterprise 30% Reduction in Unit Cost
  25. 25. Financial Services Enterprise
  26. 26. Financial Services Enterprise
  27. 27. Example 2 Technology Company
  28. 28. Technology Company What June Aug Δ Data Out (TB) 36 95 +163% Compute 584k ECU 1,192k ECU +104% Instance Costs $36k pm $24k pm -33% $72k saving per month!
  29. 29. Technology Company Cost: Elastic Compute Unit Per Hour 70% Reduction in Unit Cost
  30. 30. Technology Company C4 On Demand = $0.02 / ECU m1 On Demand = $0.07 / ECU
  31. 31. Technology Company
  32. 32. Technology Company 60% Reduction in Unit Cost
  33. 33. Technology Company 30% Reduction in Unit Cost
  34. 34. Technology Company
  35. 35. How to use those levers at scale?
  36. 36. Automation
  37. 37. Understand Opportunities Automation What we need to do 1. Auto-tag resources 2. Identify ‘always on’ Non Prod 3. Identify instances to down-size 4. Recommend RIs to purchase 5. Dashboard our status 6. Report on savings
  38. 38. Action Changes 1. Allocate costs by tag & account 2. Turn off Non-Prod instances daily 3. Quickly change instance sizes 4. Move underutilized RIs Automation What we need to do
  39. 39. How to set up Automated Tools
  40. 40. Dashboards https://github.com/evancraw/AWSOptimizationTemplates
  41. 41. A Reasonably Optimized Dashboard
  42. 42. A Dashboard ripe with opportunity
  43. 43. Reserved Instances and Right-Sizing Build Your Own
  44. 44. Reserved Capacity Recommendations
  45. 45. Right-Sizing Recommendations https://github.com/evancraw/AWSOptimizationTemplates
  46. 46. From Automatic Tagging To
  47. 47. Automatic Tagging http://ape.gs/AWSAutoTag
  48. 48. Tagging Governance with AWS Config
  49. 49. Right-size with cloud native provisioning AWS CloudFormation AWS OpsWorks
  50. 50. Handy Tools Move RIs automatically https://github.com/jros2300/reservedinstances Tableau Templates https://github.com/evancraw/AWSOptimizationTemplates (Dashboards, right-sizing, reserved capacity) Start / Stop Non-Prod Daily ape.gs/PowerCycleReInvent
  51. 51. $ $ $ $ $ $ $ $ Something missing? Unit Cost
  52. 52. Why will those levers be used?
  53. 53. A Lean Culture
  54. 54. What Lean Culture Looks Like Users: • Understand • Take responsibility for • Act to lower The costs of their usage as a normal part of their day
  55. 55. Build a Lean Culture Targets and Metrics Cloud Competency Center AWS Enterprise Support
  56. 56. A Cycle of Cost Optimization ✔ ✔ ✔ ✔✘ ✘ ✘ ✘ $ $ $ $ $
  57. 57. Metrics 1. % Instances turned off daily 2. % Instances right-sized 3. % Always On Resources Covered by RI 4. % RI Utilization All weighted by ECU
  58. 58. What Works Think Big Start Small Learn Fast Trust and Verify Lean Culture Watch out for Wait until you get Big Analysis Paralysis Try to do it all at once Constrain innovation by making teams wait
  59. 59. How do we explain the costs? How do we allocate the charges to the right team? How do we save money? Whose responsibility is it to save money?
  60. 60. 2 Years Ago
  61. 61. How do we explain the costs? How do we allocate the charges to the right team? How do we save money? Whose responsibility is it to save money?
  62. 62. Cloud Engineering Team
  63. 63. 1UP
  64. 64. Finance Team Track Down AWS Accounts
  65. 65. Consolidated Billing
  66. 66. Account A Account B Account C Total $$ $$$$ $$$ $$$$$$$ Single Monthly Invoice
  67. 67. Centralize AWS Account Creation
  68. 68. What is in the Accounts?
  69. 69. TAGS
  70. 70. Create a Tagging Policy
  71. 71. CSV JSON
  72. 72. ? Our Tags
  73. 73. Cost Center
  74. 74. Responsible Owner
  75. 75. Service
  76. 76. Name
  77. 77. Number of Tags vs Enough Information
  78. 78. Report on Tagging Progress
  79. 79. Tag at Resource Creation
  80. 80. Automate Tagging
  81. 81. Build Reports from the Tags
  82. 82. How do we Allocate the Charges to the Right Team?
  83. 83. Untagged Costs
  84. 84. How do we explain the costs? How do we allocate the charges to the right team?
  85. 85. How do we save money? Whose responsibility is it to save money?
  86. 86. Reserved Instances
  87. 87. Reserved Instances without Statistics
  88. 88. Statistics on Usage and Costs
  89. 89. Statistics on Usage and Costs
  90. 90. EC2 Usage by Hour
  91. 91. Always-On Load
  92. 92. Elastic Load
  93. 93. Convert Always-On into Elastic Load
  94. 94. Convert Always on to Elastic EC2 Instance (M4.Large) Running Cost Savings 4 Weeks On Demand 24/7 $85 $0
  95. 95. Convert Always on to Elastic EC2 Instance (M4.Large) Running Cost Savings 4 Weeks On Demand 24/7 $85 $0 4 Weeks Reserved Instance 24/7 $50 $35
  96. 96. Convert Always on to Elastic EC2 Instance (M4.Large) Running Cost Savings 4 Weeks On Demand 24/7 $85 $0 4 Weeks Reserved Instance 24/7 $50 $35 4 Weeks On Demand Mon-Fri 10hrs/day $25 $60
  97. 97. Scheduled Run Times
  98. 98. Scheduled Run Times
  99. 99. Scheduled Run Times (Batch Jobs)
  100. 100. Autoscaling
  101. 101. Rightsizing
  102. 102. Reserved Instances
  103. 103. Reserved Instances
  104. 104. Reserved Instances
  105. 105. Results
  106. 106. How do we Explain the Costs? Tags Reports
  107. 107. How do we Allocate the Charges to the Right Team? Reports $ $ $
  108. 108. How do we Save Money? Volume Discounts Reserved Instances Elastic Load Rightsizing
  109. 109. Whose Responsibility is it to Save Money? $
  110. 110. Whose Responsibility is it to Save Money? $
  111. 111. Thank you!
  112. 112. What to do next
  113. 113. Next Steps Set up a Cloud Competency Center Bring in the right tools Use metrics to reinforce behavior Use partners to accelerate!
  114. 114. Remember There is a lot of money to save
  115. 115. Thank you!
  116. 116. Remember to complete your evaluations!
  117. 117. Related Sessions ISM206 - Modern IT Governance Through Transparency and Automation ISM207 - The Lean Enterprise: How the Principles of Lean Are Transforming Corporate Innovation ISM208 - The Science of Saving with AWS RIs ARC307 - Infrastructure as Code

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