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AMSTERDAM
©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved
©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved
Manage Your Cost,
Govern Your Usage on AWS
Guy Kfir, Account Manager BeNeLux, AWS
kfir@amazon.lu
Leon Backbier, ICT Manager, Endemol Shine Nederland
leon.backbier@enmg.nl
You’re using AWS.
BEST PRACTICES
Use Consolidated Billing1
Turn off underutilized or unused instances2
Use Reserved and Spot Instances3
Use managed services4
Control who can provision resources5
Design for elasticity rather than deploy for peak6
Monitor your spend, create Billing Alerts7
LOWER COSTS WITH THE AWS CLOUD
Trade capital
expense for variable
expense
Save more money as
you grow bigger
Economies of scale
allow AWS to
continually lower costs
Pricing model
choice to support
variable & stable
workloads
Price reductions#49
Use Consolidated Billing
Company Master Account (“Payer” Account)
Operation A Division B Business Unit C Dev/TestDepartment Accounts
(“Linked” Accounts)
Consolidated Billing
Catalog Workflow
Order
Pipeline
Application (Tag) =
Cost Center (Tag) =
Department Accounts
(“Linked” Accounts)
General
Ledger
Inventory
3 way
match
Proxy
fleet
2222 3333 6600
Stack (Tag) = ProdJeroen Janneke Antoon
TAGS
1111 7784
Consolidated Billing & Tagging
Company Master Account (“Payer” Account)
Operation A Division B Business Unit C Dev/Test
Cost Allocation Report sample
Cost Explorer
Use Consolidated Billing to reflect your own cost structure, to benefit from volume
discounts and to share RIs across accounts
Use Cost Allocation tags to gain deeper granularity into your cost structure
As a minimum tag with Name, Owner, Cost Centre, Application, Environment
Use Cost Explorer to have customized visualization of your spend broken down by
services, tags, etc…
Consolidated Billing and tags are offered at no additional charge.
Storage fees may apply for storing the cost allocation .csv report (minor,
$0.0300/GB)
BEST PRACTICE
Turn off underutilized or
unused instances
Hours in a month*
*31 days month
Working hours
*31 days month, 23 business days, 9 hours per day
Only
Non working hours
*31 days month, 23 business days, 9 hours per day
Customer dev/test example
Monday Friday End of Vacation Season
35% saved
How to Identify Underutilized
Instances?
AWS Trusted Advisor runs 100+ configuration
checks and recommends savings
AWS Trusted Advisor
Since 2013, customers have viewed over
2.6 million recommendations and realized
over $350 million in estimated cost
reductions.
Turn off underutilized instances – method #2
Locate underutilized instances using AWS Trusted Advisor or Amazon Cloudwatch.
and turn them off.
Amazon CloudWatch Basic Monitoring metrics for EC2 instances are with no
additional charge. 10 metrics, 10 alarms, and 1 million API requests each month at
no additional charge.
AWS Trusted Advisor service is available if you have business or enterprise
support.
BEST PRACTICE
Use Reserved and Spot Instances
Fit your payment model to your business model: EC2 pricing plans
On-Demand
Instances
Reserved
Instances
Spot
Instances
Pay as you go for computing
power
Flat hourly rate, no up-front
commitments
Pay an up-front fee for a
capacity reservation and a
lower hourly rate (up to 75%
savings)
1-year or 3-year terms
RI Marketplace: Buy RIs with
short remaining terms
Pay what you want for spare
EC2 capacity: your instances
run if your bid exceeds the
Spot price
Potential for large scale at
low cost: When they’re
available, take advantage of
1,000s of Spot Instances at
up to 90% savings
Savings potential
• 58%: 1-Year Reserved
Instances
• 75%: 3-Year Reserved
Instances
http://aws.amazon.com/ec2/pricing/
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
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance
AWS Trusted Advisor
identifies savings
attainable via
Reserved Instances
Amazon EC2 Instance Usage Report
Fit your payment model to your business model: EC2 pricing plans
On-Demand
Instances
Reserved
Instances
Spot
Instances
Pay as you go for computing
power
Flat hourly rate, no up-front
commitments
Pay an up-front fee for a
capacity reservation and a
lower hourly rate (up to 75%
savings)
1-year or 3-year terms
RI Marketplace: Buy RIs with
short remaining terms
Pay what you want for spare
EC2 capacity: your instances
run if your bid exceeds the
Spot price
Potential for large scale at
low cost: When they’re
available, take advantage of
1,000s of Spot Instances at
up to 90% savings
Use Amazon EC2 Reserved Instances if possible: get up to 75% savings +
capacity reservation
Consult AWS Trusted Advisor to identify reservations opportunities or use Amazon
EC2 Instance Usage Report
If not sure, start with the instances that are used 24/7
Use Spot Instances for stateless workloads - pricing starts at 90% off On Demand
AWS Trusted Advisor service is available if you have business or enterprise
support.
BEST PRACTICE
AWS’s higher-level
services automate
your work and save
time and money
CloudFront
DynamoDB
Amazon RDS
ElastiCache
Amazon Redshift
Amazon EMR
Amazon
Kinesis
Amazon
WorkSpaces
38
Cost optimization
by using AWS workspaces
Leon Backbier
Manager IT Endemol Shine Nederland
Amsterdam, 07 2015
Who We Are
Cost optimization by using AWS workspaces 39
Endemol Shine Group:
 New joint venture bringing together Endemol, Shine and CORE Media,
 Portfolio of international hits.
 Creative operations in over 30 markets, portfolio of over 600 formats.
 Across scripted and non-scripted genres, digital, gaming, and distribution.
Endemol IT challenge
Cost optimization by using AWS workspaces 40
Endemol IT couldn’t keep up with the business needs.
- More flexibility (Organization)
 More flexibility and agility
 Focus on applications & functional
improvements
 Faster time to market
- Higher quality (Technical)
 State of the art scalable IT
infrastructure
 Unlimited scaling
 Constant innovation
 Availability
- Lower cost (Financial)
 No more investments on hardware
 Pay as we go / use
 Lower risk no- upfront investments on hardware in case uncertain business projects
 Clear allocation of IT cost to the business
 Invest in functionality and talent, not in IT hardware
Why AWS Workspaces
Cost optimization by using AWS workspaces 41
Media productions are mainly driven by temporary employees
Change rate on personnel and media projects
On boarding and off- boarding is challenging and time consuming
Setup time for a new employee
Moving / dealing with hardware
BYOD
Just in time delivery
Cost allocation
Perfect fit
Architecture
Cost optimization by using AWS workspaces 42
Endemol
Headquarter
Internet
Remote
Production
Location
AWS Direct Connect
VPN connection
Ireland
West-1a
Amazon Route 53 Amazon EC2 Amazon S3 Amazon Glacier AWS Storage Gateway Elastic Transcoder Amazon SES
West-1b West-1c
Workspaces
Amazon VPC Amazon SQS Amazon RDSAmazon EBS
CloudFront
VPC peeringElastic Load Balancing IAM
Remote
Production
Location
Remote
Production
Location
Outcome
Cost optimization by using AWS workspaces 43
Cost savings 70% capex, 30% opex
No more unnecessary moving around, dealing with outdated hardware
or specific platform issues
Setup time: We are now talking about hours instead of days
Pay as we go / use
Lower risk no- upfront investments on hardware in case uncertain
business projects
Clear allocation of IT cost to the business
Invest in functionality and talent, not in IT hardware
L.H.M. (Leon) Backbier | Manager ICT | Endemol Shine Nederland
Mob. +31651591408 | Leon.Backbier@enmg.nl | http://www.endemol.nl
Thank You!
Consider using higher level services, to take away time-consuming tasks, allowing
you to pursue higher value tasks
Consider Amazon Relational Database Service (RDS), that handles backups,
patch management, and replication for you.
Consult with Simple Monthly calculator to estimate your monthly costs
BEST PRACTICE
Control provisioning of
resources
Control who can
provision resources
Require
tagging
“No tags? No instance”
– Large financial services
customer in Boston
Control who can provision resources via AWS IAM
Once an instance is running, tag it.
Consider policy to stop instances without tags
Identity and Access Management offered at no additional charge. You will be
charged only for use of other AWS services by your users.
BEST PRACTICE
Design for elasticity
rather than deploy for
peak
Use Auto Scaling to
add resources when
needed, and turn them
off when not
Auto Scaling
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
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance
Design to scale up and scale down using Auto Scaling
Use Auto Scaling to add resources when needed, and turn them off when not
Auto Scaling carries no additional fees. Amazon EC2 and Amazon CloudWatch
service fees apply and are billed separately.
BEST PRACTICE
Understanding your
spend
The Billing Console
The Billing Console Dashboard
Current Month’s Spend
• Previous month comparison
• Include/exclude subscriptions
- Reserved Instances
- Premium Support charges
Notification Center
• Status of Billing Alerts
• Alarm on spending
threshold
• Issues with payment methods
• Outstanding charges
• Free Tier eligibility
• General notices regarding
your account or bill
Mobile Support
• Dashboard looks nice on mobile devices
• Quick view on how you are trending
Monitor and Alert
Create billing alerts to be notified automatically via e-mail when estimated charges
reached a limit
Get familiar with the billing console, use it to monitor your spend
Use the mobile Application to monitor your spend on the go
you get 10 Amazon CloudWatch alarms and 1,000 Amazon SNS email notifications
per customer per month without additional charges
BEST PRACTICE
BEST PRACTICES
Use Consolidated Billing to share volume discounts/ RIs across accounts1
Turn off underutilized instances2
Use Reserved and Spot Instances to save up to 90% over on demand3
Use managed services to free you to pursue higher value tasks4
Control who can provision resources5
Design for elasticity rather than deploy for peak6
Create billing alerts to be notified when estimated charges reached a limit7
AMSTERDAM
“With 3 years Reserved Instances
we’ve been able to reduce the cost
for active users from 20 cents to
less than 1”
We are using AWS Trusted Advisor to
improve cost efficiency and to audit
the configurations of service
platforms

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ManageYourCostsAndGovernYourUsageOnAWS[1]

  • 1. AMSTERDAM ©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved
  • 2. ©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved Manage Your Cost, Govern Your Usage on AWS Guy Kfir, Account Manager BeNeLux, AWS kfir@amazon.lu Leon Backbier, ICT Manager, Endemol Shine Nederland leon.backbier@enmg.nl
  • 4. BEST PRACTICES Use Consolidated Billing1 Turn off underutilized or unused instances2 Use Reserved and Spot Instances3 Use managed services4 Control who can provision resources5 Design for elasticity rather than deploy for peak6 Monitor your spend, create Billing Alerts7
  • 5. LOWER COSTS WITH THE AWS CLOUD Trade capital expense for variable expense Save more money as you grow bigger Economies of scale allow AWS to continually lower costs Pricing model choice to support variable & stable workloads Price reductions#49
  • 7. Company Master Account (“Payer” Account) Operation A Division B Business Unit C Dev/TestDepartment Accounts (“Linked” Accounts) Consolidated Billing
  • 8. Catalog Workflow Order Pipeline Application (Tag) = Cost Center (Tag) = Department Accounts (“Linked” Accounts) General Ledger Inventory 3 way match Proxy fleet 2222 3333 6600 Stack (Tag) = ProdJeroen Janneke Antoon TAGS 1111 7784 Consolidated Billing & Tagging Company Master Account (“Payer” Account) Operation A Division B Business Unit C Dev/Test
  • 9.
  • 12. Use Consolidated Billing to reflect your own cost structure, to benefit from volume discounts and to share RIs across accounts Use Cost Allocation tags to gain deeper granularity into your cost structure As a minimum tag with Name, Owner, Cost Centre, Application, Environment Use Cost Explorer to have customized visualization of your spend broken down by services, tags, etc… Consolidated Billing and tags are offered at no additional charge. Storage fees may apply for storing the cost allocation .csv report (minor, $0.0300/GB) BEST PRACTICE
  • 13. Turn off underutilized or unused instances
  • 14. Hours in a month* *31 days month
  • 15. Working hours *31 days month, 23 business days, 9 hours per day Only
  • 16. Non working hours *31 days month, 23 business days, 9 hours per day
  • 17. Customer dev/test example Monday Friday End of Vacation Season 35% saved
  • 18. How to Identify Underutilized Instances?
  • 19. AWS Trusted Advisor runs 100+ configuration checks and recommends savings
  • 21. Since 2013, customers have viewed over 2.6 million recommendations and realized over $350 million in estimated cost reductions.
  • 22. Turn off underutilized instances – method #2
  • 23. Locate underutilized instances using AWS Trusted Advisor or Amazon Cloudwatch. and turn them off. Amazon CloudWatch Basic Monitoring metrics for EC2 instances are with no additional charge. 10 metrics, 10 alarms, and 1 million API requests each month at no additional charge. AWS Trusted Advisor service is available if you have business or enterprise support. BEST PRACTICE
  • 24. Use Reserved and Spot Instances
  • 25. Fit your payment model to your business model: EC2 pricing plans On-Demand Instances Reserved Instances Spot Instances Pay as you go for computing power Flat hourly rate, no up-front commitments Pay an up-front fee for a capacity reservation and a lower hourly rate (up to 75% savings) 1-year or 3-year terms RI Marketplace: Buy RIs with short remaining terms Pay what you want for spare EC2 capacity: your instances run if your bid exceeds the Spot price Potential for large scale at low cost: When they’re available, take advantage of 1,000s of Spot Instances at up to 90% savings
  • 26. Savings potential • 58%: 1-Year Reserved Instances • 75%: 3-Year Reserved Instances http://aws.amazon.com/ec2/pricing/
  • 27. 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 23:00 100% 75% 58% 38% 13% 8% On Demand Instance Reserved Instance
  • 28. AWS Trusted Advisor identifies savings attainable via Reserved Instances
  • 29.
  • 30.
  • 31. Amazon EC2 Instance Usage Report
  • 32. Fit your payment model to your business model: EC2 pricing plans On-Demand Instances Reserved Instances Spot Instances Pay as you go for computing power Flat hourly rate, no up-front commitments Pay an up-front fee for a capacity reservation and a lower hourly rate (up to 75% savings) 1-year or 3-year terms RI Marketplace: Buy RIs with short remaining terms Pay what you want for spare EC2 capacity: your instances run if your bid exceeds the Spot price Potential for large scale at low cost: When they’re available, take advantage of 1,000s of Spot Instances at up to 90% savings
  • 33.
  • 34.
  • 35. Use Amazon EC2 Reserved Instances if possible: get up to 75% savings + capacity reservation Consult AWS Trusted Advisor to identify reservations opportunities or use Amazon EC2 Instance Usage Report If not sure, start with the instances that are used 24/7 Use Spot Instances for stateless workloads - pricing starts at 90% off On Demand AWS Trusted Advisor service is available if you have business or enterprise support. BEST PRACTICE
  • 36. AWS’s higher-level services automate your work and save time and money CloudFront DynamoDB Amazon RDS ElastiCache Amazon Redshift Amazon EMR Amazon Kinesis Amazon WorkSpaces
  • 37. 38 Cost optimization by using AWS workspaces Leon Backbier Manager IT Endemol Shine Nederland Amsterdam, 07 2015
  • 38. Who We Are Cost optimization by using AWS workspaces 39 Endemol Shine Group:  New joint venture bringing together Endemol, Shine and CORE Media,  Portfolio of international hits.  Creative operations in over 30 markets, portfolio of over 600 formats.  Across scripted and non-scripted genres, digital, gaming, and distribution.
  • 39. Endemol IT challenge Cost optimization by using AWS workspaces 40 Endemol IT couldn’t keep up with the business needs. - More flexibility (Organization)  More flexibility and agility  Focus on applications & functional improvements  Faster time to market - Higher quality (Technical)  State of the art scalable IT infrastructure  Unlimited scaling  Constant innovation  Availability - Lower cost (Financial)  No more investments on hardware  Pay as we go / use  Lower risk no- upfront investments on hardware in case uncertain business projects  Clear allocation of IT cost to the business  Invest in functionality and talent, not in IT hardware
  • 40. Why AWS Workspaces Cost optimization by using AWS workspaces 41 Media productions are mainly driven by temporary employees Change rate on personnel and media projects On boarding and off- boarding is challenging and time consuming Setup time for a new employee Moving / dealing with hardware BYOD Just in time delivery Cost allocation Perfect fit
  • 41. Architecture Cost optimization by using AWS workspaces 42 Endemol Headquarter Internet Remote Production Location AWS Direct Connect VPN connection Ireland West-1a Amazon Route 53 Amazon EC2 Amazon S3 Amazon Glacier AWS Storage Gateway Elastic Transcoder Amazon SES West-1b West-1c Workspaces Amazon VPC Amazon SQS Amazon RDSAmazon EBS CloudFront VPC peeringElastic Load Balancing IAM Remote Production Location Remote Production Location
  • 42. Outcome Cost optimization by using AWS workspaces 43 Cost savings 70% capex, 30% opex No more unnecessary moving around, dealing with outdated hardware or specific platform issues Setup time: We are now talking about hours instead of days Pay as we go / use Lower risk no- upfront investments on hardware in case uncertain business projects Clear allocation of IT cost to the business Invest in functionality and talent, not in IT hardware
  • 43. L.H.M. (Leon) Backbier | Manager ICT | Endemol Shine Nederland Mob. +31651591408 | Leon.Backbier@enmg.nl | http://www.endemol.nl Thank You!
  • 44. Consider using higher level services, to take away time-consuming tasks, allowing you to pursue higher value tasks Consider Amazon Relational Database Service (RDS), that handles backups, patch management, and replication for you. Consult with Simple Monthly calculator to estimate your monthly costs BEST PRACTICE
  • 48. “No tags? No instance” – Large financial services customer in Boston
  • 49. Control who can provision resources via AWS IAM Once an instance is running, tag it. Consider policy to stop instances without tags Identity and Access Management offered at no additional charge. You will be charged only for use of other AWS services by your users. BEST PRACTICE
  • 50. Design for elasticity rather than deploy for peak
  • 51. Use Auto Scaling to add resources when needed, and turn them off when not Auto Scaling
  • 52. 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 23:00 100% 75% 58% 38% 13% 8% On Demand Instance Reserved Instance
  • 53. Design to scale up and scale down using Auto Scaling Use Auto Scaling to add resources when needed, and turn them off when not Auto Scaling carries no additional fees. Amazon EC2 and Amazon CloudWatch service fees apply and are billed separately. BEST PRACTICE
  • 56. The Billing Console Dashboard
  • 57. Current Month’s Spend • Previous month comparison • Include/exclude subscriptions - Reserved Instances - Premium Support charges
  • 58. Notification Center • Status of Billing Alerts • Alarm on spending threshold • Issues with payment methods • Outstanding charges • Free Tier eligibility • General notices regarding your account or bill
  • 59. Mobile Support • Dashboard looks nice on mobile devices • Quick view on how you are trending
  • 61. Create billing alerts to be notified automatically via e-mail when estimated charges reached a limit Get familiar with the billing console, use it to monitor your spend Use the mobile Application to monitor your spend on the go you get 10 Amazon CloudWatch alarms and 1,000 Amazon SNS email notifications per customer per month without additional charges BEST PRACTICE
  • 62. BEST PRACTICES Use Consolidated Billing to share volume discounts/ RIs across accounts1 Turn off underutilized instances2 Use Reserved and Spot Instances to save up to 90% over on demand3 Use managed services to free you to pursue higher value tasks4 Control who can provision resources5 Design for elasticity rather than deploy for peak6 Create billing alerts to be notified when estimated charges reached a limit7
  • 64. “With 3 years Reserved Instances we’ve been able to reduce the cost for active users from 20 cents to less than 1”
  • 65. We are using AWS Trusted Advisor to improve cost efficiency and to audit the configurations of service platforms