Organized by Microsoft Israel R&D Center, this MS cloud event represents the first of its kind for start-ups in Israel. Cloud Day brought thought leaders together, including Cloudyn's CEO, Sharon Wagner, to provide real insights and know-how on all the latest cloud computing.

1. More
Bang
for
your
Buck
Sharon
Wagner
Co-­‐Founder
&
CEO,
Cloudyn
Microso:
Cloud
Day
April
23rd
2013
How
to
get
the
most
out
of
your
cloud

2. Who
am
I?
• Director,
Products,
Oblicore
• Sr.
principal,
Cloud
Business
Unit,
CA
• Co-­‐Founder
&
CEO,
Cloudyn™
Cloud
Economics
@cloudyn_buzz
Cloudyn.com
|
blog.cloudyn.com
sharon@cloudyn.com

3. How
do
you
measure
your
cloud
efficiency?

4. Overwhelming
informaOon
#
of
deployment
cycles,
idle
servers,
costs,
%
u9liza9on,
jobs,
applica9on
performance,
speed,
databases,
network
bandwidth,
server
performance,
end
user
performance,
applica9on
response
9me,
revenue,
green
benefits.

5. Cool.
Now
we
have
a
good
grasp
on
our
cloud!

6. Usage
trend:
compute
uOlizaOon
Most virtual servers are significantly
underutilized.
• Average
yearly
CPU
uHlizaHon
of
17%
• Max
RAM
uHlizaHon
of
64%
By
looking
at
CPU,
Memory,
I/O,
Network:

7. Usage
trend:
pricing
Most customers use the least
economical pricing modules.
• 26% reserve
capacity
upfront
• 71% runs
on-­‐demand
virtual
instances
How
customers
pay
cloud
vendors:
93%
of
the
on-­‐demand
instances
should
be
reserved.

8. Actual
usage,
perfect
and
over
provisioning

9. How
do
you
measure
your
car
efficiency?

10. Keep
it
simple

11. The
only
thing
that
maSers
is
the
business impact!

12. User
Experience
=
Workload
Capacity
OK,
lets
keep
it
really
simple
?

13. Houston,
we
have
a
problem
Cloud
capacity
is
∞

14. Cloud
Value
=
Cost
Compute
Units
The
right
metric

15. What
does
this
mean?
What
should
I
do?

16. 1. Think
small
–
rightsizing
2. Go
green
–
recycle
and
reHre
3. Use
your
cash
–
reserve
capacity
Three
steps
to
get
more
out
of
your
cloud
Nego?a?on
has
zero
impact…

17. How
can
we
find
opOmizaOon
opportuniOes?
Bringing
real
cloud
usage
data
from
500
IaaS
customers
into
the
mix:
~2.5mVirtual
instances,
thousands
of
databases
and
billions
of
storage
objects
monitored
in
the
survey.

18. Recycling
sample:
storage/compute
Surprise! You have storage.
• Typically
represents
15%
of
cloud
spend
• Only
12%
are
using
cheaper
storage
opHons
• 15% of
volumes
are
disconnected
Does
it
make
sense
to
keep
the
light
on
when
you
leave
the
room?

19. Sizing
sample
One large cappuccino with an extra
5GB of RAM please…
Coffee
customizaHon,
Starbucks
@
IaaS
If
you
do
it
to
your
coffee,
why
not
treat
your
instances
the
same?
It’s
20%
of
your
monthly
cost.

20. Sizing
sample:
compute
Comparing large to x-large for
RDBMS workload:
Spec
Large
X-­‐Large
RAM
7.5
GB
15
GB
CPU
4
EC2
CU
8
EC2
CU
Storage
850
GB
1690
GB
I/O
Performance
Moderate
High
Large
instance,
volume-­‐opHmized
with
500
MBPS
provisioned
IOPS
performed
beSer
than
single
x-­‐large
and
cost
less!

21. Pricing
opOmizaOon
*Cloud vendors love charging less
*
Yep,
this
is
not
a
typo,
but
they
have
to
run
a
business
too…
So,
how
does
it
work?

22. Pricing
trend:
reserved,
on-­‐demand
You will have to reserve your capacity
93%
of
the
on-­‐demand
instances
should
be
reserved.
• Requires
one
Hme
payment,
pay
less
for
each
hour
• Resource
availability
is
guaranteed
• 71%
of
instances
runs
on-­‐demand,
26%
runs
reserved

23. Price
opOmizaOon
Why they love charging you less?
• Because
they
have
no
choice
• Customer
saHsfacHon
• The
upfront
payment
• Capacity
projecHon
• The
Jevons
paradox
Hi,
It’s
me,
William
Stanley
Jevons

24. $-­‐
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
VM
Cost
Time
On-­‐Demand
Reserve
X
Month
Reserve
Y
Month
Large
instance:
on-­‐demand
vs.
reserved
capacity
comparison
Savings
Breakeven
aoer
4mon,
30%
RunHme

25. Common
reservaOon
mistake
Safe
ReservaHon
OpHmal
ReservaHon

26. Summary:
the
cycle

27. Cloud
Economics
@cloudyn_buzz
Cloudyn.com
|
blog.cloudyn.com
sharon@cloudyn.com
Thank
you