RightScale Webinar - Tales From the Trenches: Understanding and Managing Cloud Costs

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With the public cloud pricing wars reaching fever pitch, the ROI of cloud continues to increase. But unlike traditional upfront capital approval processes, public cloud requires a new, continuous approach to forecasting and managing costs.

In this webinar, Joe Emison, CTO of BuildFax and RightScale customer, will share how he optimizes cloud costs. We’ll also help you understand cloud pricing trends and learn how to forecast and manage your costs with Cloud Analytics.

Key Topics:

1. Latest cloud pricing trends and what it means for you
2. How BuildFax optimizes cloud spend
3. Tips and best practices for managing cloud costs
4. Live demonstration of forecasting and comparing cloud costs

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RightScale Webinar - Tales From the Trenches: Understanding and Managing Cloud Costs

  1. 1. TALES FROM THE TRENCHES: UNDERSTANDING & MANAGING CLOUD COSTS
  2. 2. • Kim Weins • VP Marketing, RightScale • Joe Emison • CTO, BuildFax • Hassan Hosseini • Product Lead, Cloud Analytics, RightScale Q&A: • David Campos • Sales Development Representative, RightScale Please use the “Questions” window to ask questions at any time Your Speakers Today
  3. 3. • Cloud Cost Trends • Tales from the Trenches • 3 key cost management activities • Cloud cost approach/philosophy • Tips and Tricks • Demo • Q&A Agenda 22
  4. 4. Cloud Management Research Results: Cloud Adoption Reaches Ubiquity Cost Management Increases in Importance
  5. 5. Cloud Usage is Ubiquitous Public Cloud Only Private Cloud Only 94% of Respondents are Using Cloud 58% 7%29% Public and Private Source: RightScale 2014 State of the Cloud Report
  6. 6. Multi-Cloud is the Preferred Strategy Single private 9% Single public 13% No plans 4% Multiple private 11% Multiple public 15% Hybrid cloud 48% 74% Enterprise Cloud Strategy 1000+ employees Multi-Cloud 74% Source: RightScale 2014 State of the Cloud Report
  7. 7. 0% 20% 40% 60% 80% 100% Cloud Beginners Cloud Explorers Cloud Focused %ofRespondents Benefits Grow with Cloud Maturity % of Respondents Reporting these Benefits CapEx to OpEx Business continuity IT staff efficiency Geographic reach Higher performance Cost savings Faster time-to-market Higher availability Faster access to infrastructure Greater scalability Cost Savings is an Important Benefit for Cloud 6 Source: RightScale 2014 State of the Cloud Report
  8. 8. 0% 20% 40% 60% Cloud Beginners Cloud Explorers Cloud Focused %ofRespondents Challenges Decrease with Cloud Maturity % of Respondents Reporting these as Significant Challenges Security Compliance Managing multiple cloud services Integration to internal systems Governance/Control Performance Lack of resources/Expertise Cost Integration to private cloud Lack of support from IT Yet Cost Management is an Ongoing Challenge 7 Source: RightScale 2014 State of the Cloud Report
  9. 9. • Different services and pricing options across clouds • RightScale tracks16,00 unique prices, up from 12,000 in 2013 • AWS pricing and management alone difficult to manage Cost Management is Key – Current Trends 8
  10. 10. 9 On-Demand Cloud Pricing is Complex Google Instance Type CPU Cores RAM AWS Instance Type CPU Cores RAM Google New On-Demand (per hour) AWS NEW On-Demand (per hour) New Google Price vs. New AWS n1-standard-1 1 3.75 m3.medium 1 3.75 $ 0.070 $ 0.070 0.00% n1-standard-2 2 7.5 m3.large 2 7.5 $ 0.140 $ 0.140 0.00% n1-standard-4 4 15 m3.xlarge 4 15 $ 0.280 $ 0.280 0.00% n1-standard-8 8 30 m3.2xlarge 8 30 $ 0.560 $ 0.560 0.00% n1-highmem-2 2 13 r3.xlarge 2 15 $ 0.164 $ 0.175 -6.29% n1-highmem-4 4 26 r3.2xlarge 4 30.5 $ 0.328 $ 0.350 -6.29% n1-highmem-8 8 52 r3.4xlarge 8 61 $ 0.656 $ 0.700 -6.29% n1-highcpu-2 2 1.8 c3.large 2 3.75 $ 0.088 $ 0.105 -16.19% n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $ 0.176 $ 0.210 -16.19% n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $ 0.352 $ 0.420 -16.19% n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $ 0.704 $ 0.840 -16.19% Google vs. AWS On-Demand Pricing
  11. 11. Google Instance Type CPU Cores RAM AWS Instance Type CPU Cores RAM Google 100% Usage ( per year) AWS 1-year Heavy RI New (per year) New Google Price vs. New AWS n1-standard-1 1 3.75 m3.medium 1 3.75 $430 $380 13.10% n1-standard-2 2 7.5 m3.large 2 7.5 $859 $767 11.95% n1-standard-4 4 15 m3.xlarge 4 15 $1,718 $1,535 11.95% n1-standard-8 8 30 m3.2xlarge 8 30 $3,436 $3,052 12.60% n1-highmem-2 2 13 r3.xlarge 2 15 $1,006 $830 21.20% n1-highmem-4 4 26 r3.2xlarge 4 30.5 $2,013 $1,661 21.20% n1-highmem-8 8 52 r3.4xlarge 8 61 $4,025 $3,321 21.20% n1-highcpu-2 2 1.8 c3.large 2 3.75 $540 $554 -2.52% n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $1,080 $1,117 -3.28% n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $2,160 $2,217 -2.56% n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $4,320 $4,440 -2.71% RIs vs. Sustained-Use Adds to Complexity 10 Google Sustained-Use vs. AWS 1-year Heavy Reserved Instance Pricing Source: RightScale
  12. 12. 11 The Big Win is Better Cost Management
  13. 13. Joe Emison Real World Feedback
  14. 14. 13 About Joe • AWS user since 2007, RightScale user since 2009 • CTO of BuildFax, the only real-time provider of property condition data (from only national database of building permits) • Contributor to InformationWeek and Network Computing • Recently conducted IaaS benchmarks across all major CSPs • User of cloud-cost-management tools since 2011
  15. 15. • Purchase Reserved Instances • Make Budgets • Watching Spend Three Main Uses of Cloud Cost Management 1414
  16. 16. • BuildFax usage • Steady-state • Auto-scaling • Dynamic workload (EMR, data pipeline) • Philosophy • Steady-state, newer generation: 3-year heavy • Steady-state, older generation: buy used, upgrade • Move data pipeline to OpenStack • Dubious about value of light/medium • Don’t forget AWS updates, price breaks Uses of Cloud Cost Management: RIs 1515
  17. 17. • Good cloud architecture  Hard to budget • Prerequisites to prediction • Deployment-based calculations • Increasing/decreasing/moving deployments are all common • Understanding historical variable usage • CSP offerings change so frequently that Excel is too painful Uses of Cloud Cost Management: Budgets 1616
  18. 18. Uses of Cloud Cost Management: Spend 1717
  19. 19. • Push (email), not pull (dashboards) • Expect to upgrade (OS, instance type) every 18 months • PIOPS and RDS may not be worth the cost • S3 and EBS snapshots can be expensive; plan accordingly (see Glacier, lifecycle rules) • S3 versioning can cost an enormous amount if done wrong Tips and Tricks 1818
  20. 20. Manage your Costs Now Cloud Analytics in Action
  21. 21. Visualize Cloud Costs 20
  22. 22. 21 Slice and Dice to Analyze Costs
  23. 23. Filter to Drill Down 22
  24. 24. 23 Create Scenarios with Patterns
  25. 25. ..to Forecast Future Costs
  26. 26. Compare Resource Types, Clouds, Etc.
  27. 27. Understand the Impact of Reserved Instances
  28. 28. 27 Track Costs for Private Clouds
  29. 29. 28 Track Costs for Private Clouds
  30. 30. Scheduled Reports
  31. 31. 30 Thank You and Q&A Sign-up for the Cloud Analytics Trial https://www.rightscale.com/cloud-analytics-free-trial Get the Cloud Pricing Trends Report http://www.rightscale.com/lp/cloud-pricing-trends-white-paper Read coverage of Google and Amazon price wars www.rightscale.com/blog

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