AWS Cloud Experience Centro América 20 November 2019

1. 2 0 1 9

2. Optimizing Costs as You
Scale on AWS
Daniel Saldarriaga
Enterprise Account Manager
Amazon Web Services

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You’re using AWS
and you like it!

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But maybe you are spending more
than you planned …

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Or you’d just like to spend less

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With the AWS cloud,
you only pay for what
you use

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How do you
ensure that you
only pay for what
you need?

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What to expect
We will introduce our framework for optimizing
and managing your AWS spend by focusing on
paying only for what you need
And leave you with actionable steps to take back
to the office to implement immediately

9. This is not your old fashioned
data center

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The cloud has changed the way
IT and engineering deliver value

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Embracing cloud economics
“We’ve seen a 52% total cost of ownership reduction.”
Ben Wilson,CTO GE Oil & Gas
Regarding their 58% cost reduction,
“People who conclude the cloud is too expensive are
doing it wrong.” Jake Burns, VP of Cloud Services
“40% decrease in usage cost per hour,
while growing usage by 70%.”

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But it doesn’t just happen

13. The five pillars of cost optimization
Right-sizing your
instances
Pick the right
pricing model
Increase elasticity
Measuring &
monitoring
Match usage to
storage class

14. “The trick to optimizing spend?
It starts with a shift in behavior.”
Marco Carrubba,
Vodafone

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The cloud has changed the way
IT & finance operate

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Traditional planning & procurement
The disruption of IT procurement

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Traditional planning & procurement
The disruption of IT procurement
Disruption of procurement process

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Re: Designing the process

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Cloud financial management framework
Cost
optimization
• Cost aware architecture
• Right-sizing & elasticity
• Storage optimization
• Reserved instances
• Spot usage
Measurement &
accountability
• Account strategy
• Tagging strategy &
maintenance
• Cost visibility & analysis
• Metrics tracking &
monitoring
Planning &
forecasting
• Business planning
• Usage forecasting
• Cost forecasting
• Budgeting
Cloud financial
operations
• Governance & controls
• Procurement strategy
• Automation
• Build your cloud team
• Tool adoption & training
• Establish culture of cost
accountability

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Getting started measurement & accountability

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Step 1: Establish your account strategy

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Using AWS Organizations to automate account
creation and consolidated billing
Policy-based management for multiple AWS accounts
Control AWS service
use across accounts
Consolidate billing
and usage reporting
Automate account
creation
https://aws.amazon.com/blogs/security/how-to-use-aws-organizations-to-automate-end-to-end-account-creation/

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Business unit (BU)
AWS Organizations: Account strategies

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AWS Organizations: Account strategies
Environment lifecycle

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AWS Organizations: Account strategies
Project-based

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AWS Organizations: Account strategies
Cost allocation tags
Environment
Project
Team
Application ID
Cost center

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AWS Organizations + budgets for monitoring
Alerts can provide
notifications when budget is
reached
Cost allocation tags
Environment
Project
Team
Application ID
Cost center

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Step 2: Establish your tagging strategy

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What’s in a tag?

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Using tags to establish visibility & chargebacks
https://aws.amazon.com/answers/account-management/aws-tagging-strategies/
Stakeholders Examples
• Cost center
• Application or workload
• User
• Expiration date
• Automation support

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AWS Tools to help with missing or misspelled tags
2. AWS Config + Lambda1. AWS Tag Editor
https://bit.ly/co17_tag2
https://docs.aws.amazon.com/awsconsolehelpdocs/latest/gsg/scenario-implementing-tagging.html

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Step 3: Set up cost reports in AWS Cost Explorer

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Re: Introducing AWS Cost Explorer
AWS Cost Explorer lets you dive deeper into your
cost and usage data to identify trends, pinpoint
cost drivers, and detect anomalies
Get started quickly!
• Monthly and daily cost by service or linked
account
• Monthly EC2 running hours cost and usage
• Reserved instance reports
• RI utilization
• RI coverage
NOTE: All functionality is also available
programmatically via the AWS Cost Explorer API

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Cost and usage report
Group by: Instance type, linked account,
purchase option, region, service, plus
many more …
Select daily or monthly
view and time horizon
Spend (above—here shown grouped by
instance type) and usage (below)
Filters to remove data not
relevant to your analysis
And then export your analysis to CSV
Advanced options to do things
like include or exclude costs
related to credits, refunds,
support, and so on
All functionality is available programmatically via API

35. Using Cost Explorer to understand true cost
It’s an
accrual
world.
– J.R. Storment
Cloudability Co-Founder
Understanding “true” AWS spend:
• Blended (removes cost of RI hours)
• Unblended (shows how RIs were applied)
• Unblended amortized (smooths upfront RI payment)

36. It’s an
accrual
world.
– J.R. Storment
Cloudability Co-Founder
Upfront RI purchase
Non-amortized Amazon EC2 spend
Using Cost Explorer to understand true cost

37. It’s an
accrual
world.
– J.R. Storment
Cloudability Co-Founder
Upfront RI purchase
Non-amortized Amazon EC2 spend
Using Cost Explorer to understand true cost

38. Using Cost Explorer to understand true cost
It’s an
accrual
world.
– J.R. Storment
Cloudability Co-Founder
Upfront RI purchase
Non-amortized Amazon EC2 spend
Amortized Amazon EC2 spend
Amortized
payment

39. AWS Cost Explorer | RI Reporting
Reserved Instance (RI) Reporting
• [New! Reserved Instances dashboard in Cost
Explorer]
• RI savings-related information now available in
the RI utilization and coverage reports
• Availability of amortized RI cost data
• Supports Amazon EC2, Amazon RDS, Amazon
Redshift, Amazon ElastiCache, and Amazon
Elasticsearch reservations
NOTE: All functionality is also available
programmatically via the AWS Cost Explorer API
© 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.

40. AWS Cost Explorer | RI purchase recommendations
Reserved Instance purchase recommendations
• Available to both payer and linked accounts
• RI purchase recommendations for the following
reservation models
• Amazon EC2
• Amazon RDS
• Amazon Redshift
• Amazon ElastiCache
• Amazon Elasticsearch
NOTE: All functionality is also available
programmatically via the AWS Cost Explorer API

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Step 4: Leverage partners to accelerate optimization

42. Resource and cost management competency
Partner solutions designed to provide spend visibility, resource utilization, chargebacks, and workload costs
(Optimize Now)
https://aws.amazon.com/products/management-tools/partner-solutions/

43. Getting started (before you leave)

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Where to start
• Visit cost optimization resource center @
https://aws.amazon.com/pricing/cost-optimization/
• Enable cost explorer for your organization
• Leverage cost management partners
https://aws.amazon.com/products/management-tools/partner-
solutions/

45. Califique nuestra charla

46. ¡Gracias!