You probably know that Reserved Instances provide one way to save money on AWS, but you might not know that there are many more ways to save money in both public and private clouds. This webinar will provide details on how to optimize all of your cloud costs. We’ll also show you how RightScale can help.

1. TEN WAYS TO
OPTIMIZE COSTS ON
PUBLIC AND PRIVATE CLOUDS

2. • Kim Weins
• VP Marketing, RightScale
• Mitch Gerdisch
• Cloud Solutions Engineer, RightScale
Panelists
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3. POLLS

4. The New Role of IT: Broker Cloud Services
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5. RightScale – Product Overview
Self-Service Cloud Analytics
RightScale
Cloud Management
Design
Virtualized
Environments
Public
Clouds
Private
Clouds
Other
Services
Automate
Multi-Cloud Orchestration
OperateDeploy Report Optimize

6. 1. Pick the right instance size
2. Picking the right cloud and discount options
3. Optimizing storage costs
4. Location matters
5. Leveraging temporary instances
6. When is private cloud right?
7. Scheduling workloads
8. Finding waste
9. Underutilization
10. Budget alerts to avoid surprises
Ten Ways to Optimize Cloud Costs
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7. AWS Instance types
(2 vCPU) RAM (GB) Disk type Hourly cost Annual Cost
t2.medium 4 EBS-only $0.052 $456
t2.large 8 EBS-only $0.104 $911
c3.large 3.75 32GB SSD $0.105 $920
c4.large 3.75 EBS-only $0.110 $964
m4.large 8 EBS-only $0.126 $1,104
m3.large 7.5 32GB SSD $0.133 $1,165
r3.large 15.25 32GB SSD $0.175 $1,533
Instance Costs Vary (A LOT): Choose Wisely
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Highest cost is
more than 3x
lowest cost

8. Benefit of GCE Custom Instance Sizes
AWS
M4.xlarge
4CPU/16GB
$$$$
Effective hourly rates
Linux in US-East
$.200$.186$.100 $.133 $.266
AWS
m4.large
2CPU/8GB
GCE
n1-standard-4
4CPU/15GB
GCE
n1-standard-2
2CPU/7.5GB
GCE
Custom
4CPU/10GB
$.140
GCE
Custom
2CPU/15GB

9. AWS Azure Google
Primary Discount
Method
Reserved Instances
(RI)
Enterprise
Agreements (EA)
Sustained Use
Discounts (SUD)
Range of discount Up to 75% Depends on EA 30% with 100%
utilization (with
inferred instances)
Length of
commitment
1 year or 3 year
options
3 year None
Other ways to save Volume discounts,
spot pricing
Alternatives to EA Pre-emptible
instances
Understanding Clouds and Discount Options
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10. AWS Reserved Instance Savings Vary
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RI price points and discounts are
different for every region, instance type
on OS
!
No Upfront Partial Upfront All Upfront
Terms Available 1 year 1 year or 3 year 1 year or 3 year
Savings for 1-Year RIs
(Linux)
20-50% 25-58% 27-58%
Savings for 3-Year RIs
(Linux)
N/A 41-74% 45-75%
Hours Billed 24 hrs a day 24 hrs a day 24 hrs a day

11. About Google Sustained-Use Discounts
• No commitment. The more you use an instance family during
the month, the higher the discount
Usage Level
% of Billing Cycle
Incremental Rate
% of On-Demand Baseline
Sample Rate
n1-standard-1
Total Cost
0-25% 100% $0.05 $9.00
25-50% 80% $0.04 $7.20
50-75% 60% $0.03 $5.40
75-100% 40% $0.02 $3.60
Monthly Cost
at 100% usage
30% savings $25.20

12. Google SUD uses “Inferred Instances”
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Source: Google

13. Which is Cheaper?
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14. US Windows
13Note: AWS 1yr RI is No upfront

15. $-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
AWS m4.xl Azure D3 GCE n1-standard-4
Impact of Per Minute Billing for <1hr workloads
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16. $0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
0:30
1:30
2:30
3:30
4:30
5:30
6:30
7:30
8:30
9:30
10:30
11:30
12:30
13:30
14:30
15:30
16:30
17:30
18:30
19:30
20:30
21:30
22:30
23:30
0:30
AWS Azure Google
>1hr: Lower Hourly Rate Outweighs Per Minute
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17. Impact of Local Storage
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AWS offers m4
without SSD and m3
with SSD
Azure doesn’t offer
instances without
local storage
Google requires you
to buy Local SSD
storage in unites of
375GB
Note: AWS 1yr RI is No upfront

18. AWS Azure Google
Block storage EBS Page blobs Persistent Disk
SSD (per GB-month) $0.125
128GB@
$17.92/month
$0.17
PIOPS (per GB-month) $0.065
Includes
500 IOPs per disk
Includes 30 IOPs/GB
500GB 2000 IOPs
SSD Volume
$192.50 $71.68 $85.00
Magnetic (per GB-month) $0.05 $0.05 $0.04
500GB
Magnetic Volume
$25.00 $25.00 $20.00
Block Storage
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19. $25.00
$192.50
$25.00
$71.68
$20.00
$85.00
$-
$50.00
$100.00
$150.00
$200.00
$250.00
Magnetic (500GB) SSD (500GB, 2000 IOPs)
AWS EBS Azure Premium Storage Google Persistent Disk
Block Storage Comparison
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20. Location, location, location
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21. Region
Hourly
(m3.xlarge)
Annual
(m3.xlarge)
Upcharge
(vs us-east)
us-east (n va) $0.266 $2,330 0.0%
us-west (oregon) $0.266 $2,330 0.0%
us-west (n ca) $0.308 $2,698 +15.8%
eu (ireland) $0.293 $2,567 +10.2%
eu (frankfurt) $0.315 $2,759 +18.4%
ap (singapore) $0.392 $3,434 +47.4%
ap (tokyo) $0.385 $3,373 +44.7%
ap (sydney) $0.372 $3,259 +39.9%
sa (sao paulo) $0.381 $3,338 +43.2%
gov cloud (us) $0.336 $2,943 +26.3%
AWS: Region Costs
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22. Region Hourly D3 Annual D3 Upcharge (vs South Central)
East US 0.308 $2,698 +14.9%
East US2 0.268 $2,348 0.0%
Central US 0.308 $2,698 +14.9%
North Central US 0.308 $2,698 +14.9%
South Central US 0.268 $2,348 0.0%
West US 0.308 $2,698 +14.9%
North Europe 0.292 $2,558 +8.9%
West Europe 0.336 $2,943 +25.4%
East Asia 0.451 $3,951 +68.3%
Southeast Asia 0.392 $3,434 +46.2%
Japan East 0.442 $3,872 +64.9%
Japan West 0.384 $3,364 +43.3%
Brazil South 0.38 $3,329 +41.8%
Australia East 0.372 $3,259 +38.8%
Australia Southeast 0.372 $3,259 +38.8%
Azure: Region Costs
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23. Region
Hourly
(n1-standard-4)
Annual
(n1-standard-4) Upcharge (vs US)
US $0.20 $1,752 0.0%
Asia $0.22 $1,927 +10.0%
Europe $0.22 $1,927 +10.0%
GCE: Region Costs
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24. Characteristics AWS Google
Service Spot instances Pre-emptible
Pricing Model Variable price based on
supply and demand
Fixed price (no SUD)
Prices You set maximum price 30% of On Demand price
42% of 100% SUD price
Run length Variable Max of 24 hours
Rules -Spot instances shut down
when spot price moves
higher than your max price
-May shut down at any time
-Cannot live migrate or auto-
restart when there is a
maintenance event
Understanding Temporary Instances
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25. • When requirements dictate
• When ROI to relocate is not sufficient
• If a workload can run in public or private, choose private if:
• Private cloud is underutilized (sunk cost)
• Private cloud is cheaper
• Look for waste in private cloud (just like public)
When is private cloud right?
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26. • Compute Hardware
• Storage Hardware
• Network Hardware
• Hardware Maintenance
• Data Center Space
• Power and Cooling
• Personnel
• Hypervisor costs
• Underutilization
Pricing Your Private Cloud
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27. Considerations
• Hours of the Day
• Business hours
• 24x7
• Days of the Week
• Weekdays
• Every day
• End Dates
• Development projects
• Demos
• Training sessions
• Trials
Scheduling your Application
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28. Find waste: Unused (or Underused) RIs
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29. Find Waste: Bad Scripts = Failure to Launch
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30. Find Waste: Terminate Unused Instances
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31. Find Waste: Orphaned Volumes
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32. Uncover Underutilization
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Low CPU and
memory
utilization

33. Find unexpected or
unusual spend
• Human error
• Runaway apps
• Left running
• Mistake selecting
instance sizes
• Spikes in traffic
• Legitimate
• DDOS
Avoid Surprises with Budget Alerts
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34. DEMO

35. • IT as a Cloud Broker
• www.rightscale.com/cloud-broker-white-paper
Q&A
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