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AWS Cost Optimisation Made Easy
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AWS Cost optimization at scale

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Presented by Amazon Web Services. Provides tips on optimizing the cost of your AWS resources.

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AWS Cost optimization at scale

  1. 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Heather Matson, Senior Account Executive Education Randy Ridgley, Solutions Architect February 2017 Cost Optimization at Scale
  2. 2. What to expect We will introduce our framework for optimizing your AWS bill by focusing on paying only for what you need. Share lessons learned based on examples from some of our most successful customers. And leave you with actionable ideas to take back to the office to implement immediately.
  3. 3. Chapter I: Build With Cost In Mind (Well Architected)
  4. 4. Best Practice Framework for Architecting on AWS Performance Ensure a system delivers maximum performance for a set of resources. Cost Optimization Achieve the lowest price for a workload taking into account fluctuating needs. Reliability Ensuring a given system is architected to meet operational thresholds during a specific period of time. Security Review definitions and compliance best practices.
  5. 5. How do customers lower their TCO with AWS? 1 Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013 “Average of 400 servers replaced per customer” Replace up-front capital expense with lower “pay for what you use” variable cost model 3 59 Price Reductions since 2006 Economies of scale allow AWS to continually lower costs 2 Pricing model choice to support variable & stable workloads On-Demand Reserved Spot Dedicated
  6. 6. Lowering TCO through cloud optimization Lift and Shift Optimized for the Cloud Designed for the cloud Micro-services & Serverless Managed ServicesInfrastructure Services TCO : up to 30%* TCO : up to 58%* TCO : up to 75%* *https://aws.amazon.com/economics/learn-more/ Ex: Amazon EC2, Amazon EBS, Amazon EFS, Amazon VPC, VM Import/export… Ex: Amazon RDS, Amazon Aurora, Amazon Elasticache, Amazon Redshift, Amazon OpsWorks, Amazon ElasticSearch, Amazon EMR Ex: Amazon S3, Amazon SQS, AWS Lambda, Amazon Kinesis, Amazon DynamoDB, Amazon Cognito, AWS DMS, AWS WAF, AWS IOT
  7. 7. Where do you start?
  8. 8. The Five Pillars of Cost Optimization Right-sizing your instances Pick the right pricing model Increase elasticity Measuring & monitoring Match usage to storage class
  9. 9. Pillar 1: Right-Sizing Right-sizing • Selecting the cheapest instance available while meeting performance requirements • Looking at CPU, RAM, storage, and network utilization to identify potential instances that can be downsized • Leveraging Amazon CloudWatch metrics and setting up custom RAM metrics Rule of thumb: Right size, then reserve. (But if you’re in a pinch, reserve first.)
  10. 10. Pillar 2: Increase Elasticity Turn off nonproduction instances • Look for dev/test, nonproduction instances that are running always-on and turn them off. • Lambda + CloudWatch = Automated Scheduling* Autoscale production • Use Auto Scaling to scale up and down based on demand and usage (for example, spikes). * https://aws.amazon.com/premiumsupport/knowledge-center/start-stop-lambda-cloudwatch/
  11. 11. Pillar 3: Leveraging the Right Pricing Model On-Demand Instances Reserved Instances Spot Instances
  12. 12. On-Demand Instances Short-term, spiky and unpredictable Low cost and flexible Develop and test
  13. 13. Reserved Instances for Always-On Instances Commitment level • 1 year • 3 year AWS services offering Reserved Instances • Amazon EC2 • Amazon RDS • Amazon DynamoDB • Amazon Redshift • Amazon ElastiCache * Dependent on specific AWS service, size/type, and region
  14. 14. EC2 Instance Growth 2007 2008 201120102009 20162013 2014 2015 3 60+ Increasing customer choice through accelerating Instance innovation Instances Launched in 2016: • Accelerated Computing: p2 • Memory Optimized: x1.16xl • General purpose: m4.16xl 5 7 11 12 23 42 52
  15. 15. …Convert Your Reserved Instances With a Convertible Reserved Instance, you can modify your existing reservation across: Instance families Instance sizes Operating systems Tenancy
  16. 16. Convertible Reserved Instance details Commitment level • 3 year AWS services offering Reserved Instances • Amazon EC2 * Dependent on specific AWS service, size/type, and region
  17. 17. Reserved Instances Step 1: Reserved Instance Coverage • Cover always-on resources with standard or convertible Reserved Instances Step 2: Increase Reserved Instance Utilization • Known architectures: Leverage Standard Reserved Instance flexibility to increase utilization. • Growing or changing architectures: Leverage Convertible Reserved Instances across families, sizes, and OS. • Regional Benefit: Consolidated billing, reservation not critical
  18. 18. Spot Instances Users with urgent computing needs or large amounts of additional capacity Time or instance flexible Experiment and/or build cost-sensitive businesses
  19. 19. Consider Spot for Elastic Workloads Options • Spot Fleet to maintain instance availability • Spot Block durations (1-6 hours) for workloads that must run continuously Commitment level • None * Compared to On Demand price based on specific EC2 instance type, region, and Availability Zone
  20. 20. Spot Rules 50% of OD 75% of OD 25% of OD You pay the market price 87% discount! You’ll Never Pay More Than Your Bid
  21. 21. Which EC2 purchasing model is right for me?
  22. 22. Strike a Balance Finding balance between pricing options Reserved Instances On-Demand Spot
  23. 23. “But my applications are too small for Auto Scaling!”
  24. 24. Amazon EC2 Container Service • Easily manage Docker containers • Flexible container placement • Designed for use with other AWS services • Extensible • Performance at Scale • Secure
  25. 25. 10% 15% 7% 12% 20% 9% Consolidate with Amazon ECS App 1 App 2 App 3 App 4 App 5 App 6 6 12 34 5 Amazon ECS cluster
  26. 26. Get rid of idle time with AWS Lambda • Automatic scaling • Automatic provisioning • No need to manage infrastructure • Just bring your code • $0.20 per million requests, 1M free • 100 ms payment granularity • Never pay for idle Less than 40% utilization? Consider using AWS Lambda instead!
  27. 27. Use case: Serverless web apps • Amazon S3 for serving static content • AWS Lambda for dynamic content • Amazon API Gateway for https access • Amazon DynamoDB for NoSQL data storage Dynamic content in AWS Lambda Data stored in Amazon DynamoDB API Gateway Static content in Amazon S3 Browser
  28. 28. Pillar 4: Leveraging the Right Storage Class Block Storage Object Storage
  29. 29. AWS Import/Export Snowball • Accelerate PBs with AWS-provided appliances • 80 TB model, global availability AWS Storage Gateway • Instant hybrid cloud • Up to 120 MB/s cloud upload rate (4x improvement), and Data ingestion into AWS storage services Amazon Kinesis Firehose • Ingest device streams directly into AWS data stores AWS Direct Connect • COLO to AWS ISV Connectors • CommVault • Veritas • etcetera Amazon S3 Transfer Acceleration • Move data up to 300% faster using AWS’s private network
  30. 30. AWS Import/Export Snowball • Accelerate PBs with AWS-provided appliances • 80 TB model, global availability AWS Storage Gateway • Instant hybrid cloud • Up to 120 MB/s cloud upload rate (4x improvement), and Data ingestion into AWS storage services Amazon Kinesis Firehose • Ingest device streams directly into AWS data stores AWS Direct Connect • COLO to AWS ISV Connectors • CommVault • Veritas • etcetera Amazon S3 Transfer Acceleration • Move data up to 300% faster using AWS’s private network
  31. 31. But are you optimizing your object storage?
  32. 32. Active data Archive dataInfrequently accessed data Milliseconds Multiple Retrieval RatesMilliseconds $0.023 / GB / mo* $0.004 / GB / mo$0.0125 / GB / mo Object Storage Classes on Amazon S3 * First 50TB, Next 450TB $0.022 / GB, Over 500TB $0.021 / GB Standard Hot Standard - Infrequent Access Warm Amazon Glacier Cold
  33. 33. Running the Numbers: S3 or S3-IA Comparing 1 PB of object storage* 1PB Monthly S3 S3-IA Savings % $24,117 $14,116 41% Rule of thumb: Breakeven = 105% Retrieved per Month Content Accessed per Month 10% $24,117 $18,350 24%50%1PB Monthly $24,117 $23,593 2%100%1PB Monthly * Based on US-East Prices
  34. 34. Case Study: Putting it Together
  35. 35. A Technology Company •In three months…
  36. 36. A Technology Company •Doubled CPU and traffic used by its Web servers
  37. 37. A Technology Company •While reducing EC2 spend by 33% $72k saving per month!
  38. 38. How did they do it?
  39. 39. Solving the growth challenge
  40. 40. Step 1: Right-size and update instances m1 on demand $0.07 per ECU c4 on demand $0.02 per ECU
  41. 41. The impact of right-sizing 70% reduction in unit cost
  42. 42. Step 2: Reserve
  43. 43. The impact of reservations 30% reduction In unit cost
  44. 44. Putting it together 85% reduction in unit cost!
  45. 45. Sounds pretty easy, right? Not really. In reality, it is very complex. • Scale • Behavioral change • Visibility • Ownership
  46. 46. Chapter II: Implement & Maintain (Well Operated)
  47. 47. How do you implement those best practices at scale? (Spoiler Alert: Remember the 5th Pillar of Cost Optimization?)
  48. 48. Pillar 5: Measure & Monitor
  49. 49. Automation. 1. Identify always on instances. 2. Identify instances to downsize. 3. Identify warm / cold storage. 4. Recommend Reserved Instances to purchase. 5. Dashboard our status. 6. Report on savings.
  50. 50. Enabling Cost Transparency
  51. 51. Enabling Cost Transparency Must have tagging: • Cost center • Application or workload • User • Expiration date • Automation support
  52. 52. Tools for Measuring & Monitoring
  53. 53. Option 1: DIY Build your own custom dashboard
  54. 54. We’ve helped customers set up their own dashboards and tools. Metric tracking savings Spend & metrics by account EC2 usage by purchase option
  55. 55. Option 2: Use a Partner
  56. 56. And partners have been successful helping customers monitor & manage cost
  57. 57. Option 3: AWS Tools Trusted Advisor
  58. 58. AWS Trusted Advisor Helping customers automate best practices (checks) across cost optimization, security, fault tolerance, and performance improvement Red (action recommended) Orange (investigation recommended) Green (no problem detected)
  59. 59. Idle Test Instances Running in us-west-1
  60. 60. Automating Trusted Advisor with AWS Lambda AWS Trusted Advisor AWS Lambda Actions on AWS resources Amazon CloudWatch events Notifications http://docs.aws.amazon.com/awssupport/latest/ user/cloudwatch-events-ta.html
  61. 61. AWS Billing alerts
  62. 62. AWS Billing console
  63. 63. Leverage managed services • Use Amazon RDS, DynamoDB, ElastiCache for Redis or Amazon Redshift • Instead of running your own database • Amazon EMR, Elasticsearch Service • Instead of running your own cluster • Amazon SQS • Amazon Kinesis, Amazon Kinesis Firehose, Analytics, Amazon SNS, and more … AWS has experts for each service RDS Amazon Redshift Amazon Elasticsearch Service Amazon Kinesis SQS
  64. 64. Establish Clear Targets & Metrics
  65. 65. Metrics and Targets • % instances turned off daily • % of instances right-sized • % always-on resources covered by Reserved Instances • % Reserved Instance utilization ✔ ✔ ✔ ✔ ✘ ✘ ✘ ✘ Define success by establishing metrics and track progress Cost-Based
  66. 66. Cycle of cost optimization ✔ ✔ ✔ ✔✘ ✘ ✘ ✘ $ $ $ $ $
  67. 67. Thank you! Heather Matson – matsonh@amazon.com Randy Ridgley – rridgley@amazon.com
  • MinshikKim1

    Aug. 29, 2017
  • OmyTrejo

    Feb. 20, 2017

Presented by Amazon Web Services. Provides tips on optimizing the cost of your AWS resources.

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