Cloud promises a simple pay-as-you-go approach to technology, with cost-savings at the top of the list. As more enterprises adopt the cloud, cost continues to be a major issue with new pricing models, services and features that introduce waste and complexity into the decision-making process. In this webinar, you’ll learn expert strategies that will amplify your cloud performance and maximize your ROI with a level of intricacy that can’t be solved using manual process – tools and expertise are needed.
2. Willy Sennott
Director, Data Science & Optimization
Stefana Muller
Senior Product Manager, Product
Development
2
Chris Garvey
Executive Vice President, Product
3. Housekeeping Items:
Questions?
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4. Original and current AWS
Premier Consulting Partner
AWS Managed Service
Partner
100% certified engineers
and architects
Microsoft Azure Gold
Partner
Competencies:
DevOps
Marketing & Commerce
Life Sciences
Microsoft Workloads
Migration
Financial Services
Breadth and Depth with AWS
& Microsoft
5. The Journey to Cloud Transformation
• Cloud Adoption Drivers and Pitfalls
• Introduction to Optimization
• Tagging & Governance
• Reserved Instances
• Post Optimization
6. Cost is biggest driver
of moving to the cloud
What are the key
factors in building the
business case for
cloud-computing
investments at your
organization?
38.8%
32.2%
32.0%
26.9%
23.5%
Cost savings
Resource scalability based on
application/workload demands
Time to market/agility
Improved availability/uptime
Less to manage internally
n = 490
Source: 451 Research, Voice of the Enterprise:
Cloud Transformation, Organizational Dynamics 2017
7. Cost out of Control
What are the top IT
pain points in your
organization? Please
select up to 3.
53.2%
46.6%
43.3%
29.2%
27.2%
26.0%
24.0%
9.7%
2.6%
Cost/budget
Security issues/concerns
Responding effectively to changing business requirements
Managing legacy infrastructure
Insufficient staff
Dealing with new applications/projects
Skills shortage
Vendor management
Other
n = 534Source: 451 Research, Voice of the Enterprise:
Cloud Transformation, Organizational Dynamics 2017
8. What Does This Tell Us?
• Cost Savings is the key driver of cloud adoption
• Post-Migration to Cloud, Costs spiral out of control
• Policies and Governance can control costs to an extent
• Optimization isn’t a 1-time event
• Multi-cloud increases complexity and accelerates the problem
• Manual optimization is costly and not a viable option
9. • Speed of Change
• Flexible Automation
• Organization-Level
Optimization
• Overlap
CHALLENGES TO DOING
IT WELL
• AWS / Azure Bill
• Trusted / Cloud Advisor
• Agent Metrics (must have
memory)
• Tagging Strategy
DATA SOURCES ADOPTION HURDLES
• Complexity
• Automation
• Correct Audience
• Risk Explanation
• Data Sources
Optimization
10. Budget
• Cash Flow Position
• What is your annual budget for cloud?
• Overall budget, budget by business unit or project, etc.
Growth
• Seasonal Cycles
• Do you expect to migrate additional workloads to the cloud?
• How do you expect your existing workloads to grow or shrink?
• What new workloads are going to be built in the cloud?
Support
• Maturity of Applications
• Can your non-production workloads be turned off overnight and/or on weekends?
• Do you have resources to support application changes required to support
autoscale and spot usage?
Key Considerations Prior to Optimization
11. Optimization: Key Requirements
Optimization out of order leads to sub-optimal results and can
affect application performanceOrder Matters
Not a manual effort, Factors change regularlyData Driven
Culture and Process change, Full buy-in leads to greater successImplementation
Monthly or Quarterly re-checks, Regular audits on processContinuous
Typical entities are “Un-Optimized” at a rate of
25-40% using 1st phase optimization lens.
12. Common Challenges to Fully Realizing Optimization
Opportunities
• Widely Distributed decision groups
• 3rd Party Applications
• Lack of coordination between key decision makers
• Data access
• Large entities built through multiple acquisitions
• Lack of overall governance
• Negative change in underlying business performance
• Lack of defined “patching or change windows”
• Territorial decision makers
13. Define Standards/Strategy
Tag Programmatically
AWS Config Rules
Auto-Owner Tag for Blame/Shame
Standardization
Resource Identification
Programmatic Actions on
Resources
Data from Resources
Alert on Untagged Resources
Tagging Best Practices and Governance
GOVERNANCE BEST PRACTICES
14. Onboarding
Monitoring
Right Sizing Initiative
RI Purchases
Quarterly
Optimization Review
Yearly Optimization
Review
Optimization Methodology
Eliminate
Waste
Reserved
Instance
Purchase
Auto Park Right Size Spot Usage
Reserved
Instances
16. WASTE ELIMINATION
IS SAVING
100%
ON COSTS
RIGHT SIZING
SAVES
50%-75%
REDUCED
RDS COSTS
BY 50%
WITH MULIT AZ
DEPLOYMENTS
64%
SAVINGS
BY REGULARLY
AUTO-PARKING
RESOURCES
FAMILY
REFRESH
BENEFITS
RANGE
5%-30%
RESERVED
INSTANCES
SAVES
35%
17. Optimization – Sample Savings Opportunity
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Savings Opportunity Estimated Adoption Calendar Year 2018
Right Sizing Family Refresh Auto-Park RDS Multi-AZ Dev & Test
Reserved Instances EBS Unattached Volumes Dated Snapshot Idle DB
23. RI Optimization: ROI
ROI
• Operational changes can
cause financial impact
• Break-even is typically
8.0 months
• Portfolio mgmt. creates
capex type model
• Partial upfront RIs still
require monthly spend
• Modifications and changes
require operational
knowledge of applications
• How predictable is instance
demand?
• Fixed pricing for term of RI
Cash
Management
Risk
Operational
Management
Predictability