Learn how can you use YotaScale's Autonomous Cloud Operations platform to: 1) get back engineering time instead of spending it tracking down AWS issues 2) avoid overspending on AWS Use AI to maintain cloud governance, optimize cloud workloads, and simplify cloud operations. Find out more, request a demo, or set up a free trial at www.yotascale.com.

1. Autonomous Cloud Operations
A Gift: Your Time and Your AWS Cloud
Infrastructure Costs, Optimized by AI
Jeff Harris
YotaScale Solutions Architect

2. Agenda
● Time & Dollar Cost of Cloud
● Cost Anomaly Detection
● Rightsizing EC2 Resources
● Reserved Instances Management
○ Planning for Initial Purchase
○ Maintaining RI Utilization/Coverage
○ Automating RI Management
● YotaScale Approach
● Q&A
© YotaScale. CONFIDENTIAL. 2

3. Dollar
Cost of
Cloud
Overspending on cloud is estimated at $10bn/yr
○ 35% of total spend (5% more than self reported)
Why?
○ Complex pricing models
● 70k price points for EC2 instances alone
● Constantly changing options
○ Under-utilization of on-demand resources
● Good for agility, bad for your budget
○ Unplanned infrastructure changes
What can you do?
○ Reduce waste in compute resources through Rightsizing
○ Implement a solid Reserved Instance management strategy
© YotaScale. CONFIDENTIAL. 3

4. Time
Cost of
Cloud
Rightsizing
- Identifying underutilized resources
- Calculate what instances can be used
- Test and implement changes
Reserved Instances
- Calculate historic instance hour usage
- Identify, plan, and execute RI purchases
Dashboard Monitoring
- Track costs of applications over time
- Identify when significant cost changes occur
Budgeting & Forecasting Tasks
© YotaScale. CONFIDENTIAL. 4

5. Cost Anomaly Detection:
Automate Cost Monitoring

6. Cost Anomaly Prevention
● Cost trending ~$4k/day and
starts increasing on Aug 21st
● Anomaly detected on Aug 23 for
an $824 inc over previous day
● 2nd anomaly detected on Aug
24 for $888 increase
Anomaly Identified:
BUFG: SLCP-IIS
App: KAOS Splunk Log
Service: EC2
Region: us-west-2

7. Anomaly Prevention
● Cost trending ~$4k/day and
starts increasing on Aug 21st
● Anomaly detected on Aug 23 for
an $824 inc over previous day
● 2nd anomaly detected on Aug
24 for $888 increase
● Decrease anomaly caught on
Oct 12 as cost returned to
normal
~$150k

8. Anomaly Prevention
Had YotaScale been in
place,
this anomaly would have
been caught early and would
have saved $150,000.
Unknown anomalies are
expensive; get alerted early.
~$150k

9. yotascale Confidential
PREVENT RUNAWAY COSTS
Anomaly Detection Workflow
Finance SRE
Application
Owner
1
2 3
1) YotaScale monitors
AWS for anomalies.
An alert is sent to
Hipchat channels for
visibility
2) Finance can reach
out to SRE with any
questions
3) SRE and App
Owner work together
to remediate

10. GAIN GREATER INSIGHT INTO YOUR SPENDING HABITS
Anomaly Detection Benefits
● Accountability for responsible usage of cloud
computing resources
● Provide visibility into the way your
organization uses on-demand resources
● View your infrastructure spend through
dimensions that fit your org structure
● Facilitate & simplify collaboration between
central and satellite teams

11. ANOMALY DETECTION DEMO

12. What is Rightsizning?

13. Rightsizing is an Ongoing Process
○ Monitor utilization
○ Track new resource types
○ Calculate Financial/Performance tradeoffs
○ Test & implement updates

14. Instance Family Refresher
General
Purpose
Compute
Optimized
Memory
Optimized
Storage
Optimized
Accelerated
Computing
t3, m4, m5 c4, c5 r4, r5, x1 d2, h1, i3 f1, g3, p2, p3

15. Rightsizing Tools
AWS Trusted Advisor AWS CloudWatch
AWS Cost Explorer
EC2 Usage Report

16. Developing Your Own Methodology
○ How long have your instances been running?
○ What is your current RI coverage?
○ What instance types should you consider?
○ What is your cost/performance comfort level?
Rightsizing Tools

17. Rightsizing Tools
AWS Solution
○ CloudFormation Stack
○ Run at each account
○ Blackbox solution

18. Identify Underutilized Resources
○ Old vCPU is <= 50% of the new vCPU
○ Old memory <= New memory
○ Old Net In/Out <= New Network In/Out
Rightsizing Blueprint

19. RIGHTSIZING DEMO

20. Reserved
Instance
Planning
© YotaScale. CONFIDENTIAL. 20

21. Amazon
RIs
● What?
○ Reserved Instances are a commitment to use specific
computing resources for a given time period
● Why?
○ Most impactful way to reduce your cloud bill
■ Reduce costs - up to 75%
○ Reserve capacity (optional)
● How?
○ Make a commitment to AWS
○ Reservations are automatically applied to your bill
○ Multiple purchasing options
© YotaScale. CONFIDENTIAL. 21

22. RI
Attributes
Instance Class
Consists of 4 attributes
● Instance Type
○ m4.2xlarge
● Platform
○ Linux/Windows version
● Tenancy
○ dedicated vs. default
● AZ or Region
© YotaScale. CONFIDENTIAL. 22
Instance Size Flexibility
If your reservation matches:
- Linux/Unix OS
- Region Scoped
- Default tenancy
You automatically take
advantage of ISF which applies
reservations to different size
within families.

23. Instance Size Flexibility for EC2
8xlarge
4xlarge
2xlarge 2xlarge
xlarge xlarge xlarge xlarge
Instance Size Flexibility
If your reservation matches:
- Linux/Unix OS
- Region Scoped
- Default tenancy
You automatically take
advantage of ISF which applies
reservations to different size
within families.

24. RI
Purchasing
Options
● Payment Options
○ 1yr vs 3yr commitments
○ No, Partial, and All-Upfront
● Standard vs Convertible
○ Both allow for modifications via API or console
■ AZ, instance size (Linux only), and networking type
○ Convertible RIs offer additional flexibility
■ Change families, OS, tenancy, and payment options
○ Flexibility isn’t free...
■ Std 1yr - 40% avg discount 3yr - 60% avg discount
■ Conv 1yr - 31% avg discount 3yr - 54% avg discount
● Other Options
○ Scheduled RIs
○ Capacity Reservation
○ Volume Discounts ( $500k - $4 mil - $10 mil+ )
© YotaScale. CONFIDENTIAL. 24

25. Planning an
RI purchase
● Utilization vs Coverage
○ Utilization targets rely on variability or elasticity of workloads
○ Coverage targets rely on organizational practices
■ Capital vs Operational investment
● Work within your budget
● Calculating EC2 Instance Hours
○ Use an hourly frequency distribution
○ Total up hours used for each Instance Class
■ 110 instance types (fam/size combo)
● Find your break-even point
■ Varies based on purchase options
■ 3yr ~ 14.4mos - 1yr ~ 7.2mos
© YotaScale. CONFIDENTIAL. 25

26. Utilization
vs.
Wastage
© YotaScale. CONFIDENTIAL. 26

27. Application
of RIs
● Reservations are not made for specific instance IDs
● Reserved Instances are applied according to their Class
○ Class = [Type x Location x OS]
○ i.e. - m4.xlarge in us-east-1 running Linux
● Floating & Splitting Reservations
○ With consolidated billing reservations purchased in one
account can be shared to other accounts
○ AZ and Size floating w/ ISF
○ Per-second billing
© YotaScale. CONFIDENTIAL. 27

28. Managing the
RI Lifecycle
© YotaScale. CONFIDENTIAL. 28
● Monitor and Optimize Reservation Coverage
○ What percentage of EC2 is running on-demand vs
reserved
● Monitor and Minimize Reservation Waste
○ Rebalance your RI portfolio
● Frequently monitoring and adjusting usage
improves cost savings

29. Converting RIs
• Cost to Converting
• Conversions of Convertible RIs must be >= value
• Converting Standard RIs is free less flexible
• Rebalancing Reservations
• Splitting Convertible RIs
• Exchanging Convertible RIs
• Merging Convertible RIs
© YotaScale, Inc. CONFIDENTIAL. 29

30. Best
Practices
● Eliminate waste through Rightsizing
○ Base your RI commitments on optimally utilized instances
● Centralize decision making and pool risk
○ Make purchases at a Consolidated Billing account
○ Benefit spreads throughout the organization
○ Pool risk and avoid over-purchasing
● Re-balance frequently
○ Identify unutilized RIs
○ Identify On-Demand usage
○ Sell or modify reservations to maintain Utilization
○ Watch for overages when rebalancing!!
© YotaScale. CONFIDENTIAL. 30
minimize On-Demand $$
maximize RI utilization

31. Best
Practices
© YotaScale. CONFIDENTIAL. 31
minimize On-Demand $$
maximize RI utilization
Invest
Rightsize
Manage

32. RI RECOMMENDATION DEMO

33. RI Purchasing:
Purchase Frequency

34. Time
Cost
EC2 On Demand Cost over Time

35. RIsBought
Time
Cost
EC2 On Demand Cost over Time

36. RIsBought
Time
Cost
EC2 On Demand Cost over Time
EC2 On Demand costs drop
after an RI purchase is made

37. RIsBought
Time
Cost
EC2 On Demand Cost over Time

38. ON DEMAND COST
RIsBought
EC2 On Demand Cost over Time
Cost
Time

39. ON DEMAND COST
RIsBought
L = 4 units
H = 2 units
EC2 On Demand Cost over Time
Cost

40. ON DEMAND COST
RIsBought
Area = 4 units
L = 4 units
H = 2 units
EC2 On Demand Cost over Time
Cost

41. EC2 On Demand Cost over Time
Cost
Time

42. EC2 On Demand Cost over Time
Cost
Time
RIsBought

43. EC2 On Demand Cost over Time
Cost
Time
RIsBought
RIsBought

44. RIsBought
EC2 On Demand Cost over Time
Cost
ON DEMAND COST ON DEMAND COST
RIsBought
Time

45. RIsBought
Area = ?
EC2 On Demand Cost over Time
Cost
ON DEMAND COST ON DEMAND COST
RIsBought
Area = ?
Time

46. RIsBought
Area = ?
L = 2 units
H = 1 unit
EC2 On Demand Cost over Time
Cost
ON DEMAND COST ON DEMAND COST
RIsBought
Area = ?
Time

47. RIsBought
Area = 2 units
L = 2 units
H = 1 unit
EC2 On Demand Cost over Time
Cost
ON DEMAND COST ON DEMAND COST
Area = 1 unit x 2 = 2 units
Savings = 2/4 = 50%
RIsBought
Time

48. EC2 On Demand Cost over Time
Cost
Time
RIsBought
RIsBought
Purchases = 2 per period
Savings = 50%

49. EC2 On Demand Cost over Time
Cost
Time

50. EC2 On Demand Cost over Time
Cost
RIsBought
Time

51. EC2 On Demand Cost over Time
Cost
RIsBought
RIsBought
RIsBought
RIsBought
Time

52. L = 1 unit
H = .5 unit
EC2 On Demand Cost over Time
Cost
.25 .25 .25 .25
.5 .5
2
RIsBought
RIsBought
RIsBought
RIsBought
Time

53. Total Area = 3 units
L = 1 unit
H = .5 unit
EC2 On Demand Cost over Time
Cost
Total Area = 1 unit
.25 .25 .25 .25
.5 .5
2
RI
RI
RI
RI
Time
Savings = 3/4 = 75%

54. EC2 On Demand Cost over Time
Cost
RIsBought
RIsBought
RIsBought
RIsBought
Time
Purchases = 4 per period
Savings = 75%

55. EC2 On Demand Cost over Time
Cost
RIsBought
RIsBought
RIsBought
Savings = 75%
Time
AcmeCorp EC2 On-Demand Costs

56. EC2 On Demand Cost over Time
Cost
RIsBought
RIsBought
RIsBought
Savings = 75%
Time
RIsBought
RIsBought
RIsBought
RIsBought
RIsBought
AcmeCorp EC2 On-Demand Costs

57. EC2 On Demand Cost over Time
For 4 months since RI
purchase policy had
been implemented
$99.5k

58. EC2 On Demand Cost over Time
$99.5k * .75 = $74.6k
over 4 months OR
$224k/year
By implementing a more
frequent purchase decision
using YotaScale’s
recommendations with
in-app purchasing.
Purchases = 4 per period
Savings = 75%

59. ONE-YEAR
POTENTIAL
SAVINGS
$274k
POTENTIALMONTHLYSAVINGS
* not including labor saved
Monthly savings in
EC2 RI purchase
optimization
$18.8k
Monthly savings in
RDS RI purchase
opportunities
$4.1k

60. May EC2 On Demand CostRIsBought
RIsBought

61. June EC2 On Demand CostRIsBought
RIsBought

62. July EC2 On Demand Cost

63. July EC2 On Demand Cost
1 UNIT

64. Thank You!
Jeff Harris
Sr. Solutions Architect
jeff@yotascale.com