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AWS Cost Optimization in 5 Perspective
The document outlines a cloud cost optimization methodology by Oblivion Cloud Control, highlighting strategies to reduce cloud spending by over 35% through various approaches like right-sizing, reserved instances, and optimizing service characteristics. It emphasizes the need for accountability in cloud resource management, advocating for a culture where application teams have insights into their costs and are responsible for managing them effectively. The framework includes steps for measuring, analyzing, and optimizing cloud costs while establishing realistic benchmarks to contribute to company-wide goals.
AWS Cost Optimization in 5 Perspective
- 1. 1 COST OPTIMIZATION IN5 PERSPECTIVES REDUCE YOU CLOUD SPEND WITH 35%+ STRUCTURALLY! AWS PREMIER CONSULTING PARTNER
- 2. ABOUT OBLIVION CLOUDCONTROL Premier AWS consulting Partner 5+ years experience in Cloud Cost Management Experienced market leading Cloud Cost management tools: AWS Native, CloudHealth, CloudCheckr and Rightscale. Cloud Cost Optimization scans and Cloud Cost Management services.
- 3. A TYPICAL CLOUDJOURNEY Cloud Operating Model 2 3 Cloud Foundation (Landing zone)Cloud Compliancy Control Framework Cloud Business Case Cloud Discovery & - Strategy 1 Cloud Center of Excellence 4 Training Bootcamp Cloud Capacity (Cost Control) Cloud Migration Plan 5 6 Cloud Migration Factory 7 Cloud Optimization / Innovation Application Discovery and Assessments Well Architected Review(s) Cloud Cost Optimization Scan
- 4. 4 COST OPTIMIZATION IN5 PERSPECTIVES REDUCE YOU CLOUD SPEND WITH 35%+ STRUCTURALLY! AWS PREMIER CONSULTING PARTNER
- 5. Are you incontrol of your cloud spend?
- 6. THE CLOUD BUSINESSCASE PROMISE VS The business case you approved Common reality On- Premises Lift & Shift Instance Right-Sizing Improved Elasticity Measure, Monitor, Improve Optimized EC2 Storage Optimization Serverless Architecture Managed Services True AWS Optimized On- Premises Lift & Shift Post Migration Period
- 7. CLOUD COST CONTROLIS CHALLENGING: 33% WASTED Among Amazon Web Services® (AWS) users only 47 percent use AWS Reserved Instances. Source: RightScale 2019 Source: RightScale 2019 Source: DevOps.com 2019 Source: RightScale 2019 Source: ZDNET 2019 Source :ZDNET
- 8. Traditionally IT spendwas managed via spend boards, and processes. Today code generates the cost
- 9. Make the applicationteams responsible and provide them the insights and tools to take responsibility Drive Accountability Allocate cost to services, applications, departments and more help to understand your costs Understand the Costs Visibility of generated cost by your cloud platform is a fundamental first step Gain visibility The Oblivion Cloud Control Cost Cost Management Methodology approaches in five steps grouped in Cost Analyses, Cost Optimization and Cost Management Measure cloud cost and bring in the ability to take control Measure & Control Analyze Manage Optim ize Establish Benchmarks Define realistic benchmarks that will help groups, on every level, contribute to specific and company wide goals THE CLOUD COST MANAGEMENT CYCLE
- 10. Make the applicationteams responsible and provide them the insights and tools to take responsibility Drive Accountability Allocate cost to services, applications, departments and more help to understand your costs Understand the Costs Visibility of generated cost by your cloud platform is a fundamental first step Gain visibility The Oblivion Cloud Control Cost Cost Management Methodology approaches in five steps grouped in Cost Analyses, Cost Optimization and Cost Management Measure cloud cost and bring in the ability to take control Measure & Control Analyze Manage Optim ize Establish Benchmarks Define realistic benchmarks that will help groups, on every level, contribute to specific and company wide goals THE CLOUD COST MANAGEMENT CYCLE Visibility
- 11. FROM TRANSPARENCY, AWARENESS,ACCOUNTABILITY, OWNERSHIP TO CAPACITY MANAGEMENT Every cloud resource/asset in the cloud is bound to a unique Account that is generated by the Cloud Provider and assigned to one customer. Cloud Resources/Assets Resources/assets are labeled with Application and or project identifiers within the Accounts. Accounts Each one of the accounts is internally associated with a Cost Center. Cost Centers Recharges the Departments/BUs by allocating the costs of the accounts to the respective Cost Centers being able to provide more granularity. IT/Finance Can associate the costs of cloud resources/assets based on business initiatives in addition to accounts Department/BU The Cost Owner is responsible for the Cost Centers and has better visibility to the cost purpose. Cost Owner ACCOUNT BASED AND/OR TAGGING BASED
- 12. DIFFERENT ROLES, DEMANDSDIFFERENT INFORMATION Show BackChargeback Objective OptimizationAwarenessAccounting Purpose DashboardReport Type UserPOCSCCM Target ApplicationProjectServiceAccountTeamBusiness Unit Cost Center Category/Filter
- 13. Make the applicationteams responsible and provide them the insights and tools to take responsibility Drive Accountability Allocate cost to services, applications, departments and more help to understand your costs Understand the Costs Visibility of generated cost by your cloud platform is a fundamental first step Gain visibility The Oblivion Cloud Control Cost Cost Management Methodology approaches in five steps grouped in Cost Analyses, Cost Optimization and Cost Management Measure cloud cost and bring in the ability to take control Measure & Control Analyze Manage Optim ize Establish Benchmarks Define realistic benchmarks that will help groups, on every level, contribute to specific and company wide goals THE CLOUD COST MANAGEMENT CYCLE Visibility
- 14. AWS Resources suchas EC2 Instances, EBS Volumes, Redshift and RDS Clusters are often overprovisioned. With right sizing we focus on bringing your AWS Resources to an efficient level. SERVICE RIGHT SIZING 01 Up to 70% cost savings are achievable on specific AWS Services including EC2, RDS, Redshift by committing your capacity for 1 or 3 years. We define the appropriate strategy for you PURCHASE MODEL OPTIMIZATION 02 Not all cost behavior can be analyzed according to checks from our framework. With a Service Pattern Analyses unexpected cost pattern deviations from your workloads normal patterns will be easily identified and further analyzed. SERVICE PATTERN ANALYSES 05 Each of AWS’s 185+ different services has different pricing characteristics. Oblivion Cloud Control will identify misuse of a service from cost perspective. SERVICE CHARACTERISTICS 03 AWS launches over 1500 innovations yearly. Oblivion Cloud Control will advise you on more efficient services for similar use cases. SERVICE ARCHITECTURE 04 OUR FIVE PERSPECTIVES ON COST OPTIMIZATION
- 15. Amazon Linux ondemand EC2Instances.info Frankfurt 14/02/2020 M5.xlarge (4/16) $ 2.014,80 T3.large (2/8) $ 940,82 M5.large (2/8) $ 1.007,40 -50% -6,6% $ 10.739,80 Per 10 instances Yearly Saving 01 SERVICE RIGHT SIZING
- 16. Things to consider Eliminate‘zombie assets’ Don’t provision for peak capacity Consider ARM / AMD / T series Reevaluate Provisioned capacity Amazon Linux on demand EC2Instances.info Frankfurt 14/02/2020 M5.xlarge (4/16) $ 2.014,80 T3.large (2/8) $ 940,82 M5.large (2/8) $ 1.007,40 -50% -6,6% $ 10.739,80 Per 10 instances Yearly Saving 01 SERVICE RIGHT SIZING
- 17. Ireland - AmazonLinux Simply Monthly Calculator 14/02/2020 1 Year reserved instances $6.519,20 Per 10 instances Yearly Saving -34,7% m5.xlarge (4/16) m5.xlarge (4/16) 02 PURCHASE MODEL OPTIMIZATION
- 18. Things to consider Ireland- Amazon Linux Simply Monthly Calculator 14/02/2020 1 Year reserved instances $6.519,20 Per 10 instances Yearly Saving -34,7% m5.xlarge (4/16) m5.xlarge (4/16) Reserved Instances (up to 75%) Spot Instances (variable up to 90%) Savings plans (25% - 57%) Subscription type (hourly, monthly workspaces) Enterprise Discount Programs (7-15%) Reseller (value added) propositions 02 PURCHASE MODEL OPTIMIZATION
- 19. -3,6% Latest instance typegeneration m4.xlarge (2/8) m5.xlarge (2/8) -50% Availability zone requirements db.r4.xlarge (4/30.5) Region optimization -69% Storage type optimization 500 GB PIOPs 1500 -7% m5.large (2/8) Frankfurt m5.large (2/8) Ireland 500 GB GP SSDdb.r4.xlarge (4/30.5) Yearly Saving $ 708,00 Per 10 instances Yearly Saving $ 46.860,00 Per 10 instances Yearly Saving $ 1.401,60 Per 10 instances Yearly Saving $ 14.640,00 Per 10 Volumes 03 SERVICE CHARACTERISTICS
- 20. -3,6% Latest instance typegeneration m4.xlarge (2/8) m5.xlarge (2/8) -50% Availability zone requirements db.r4.xlarge (4/30.5) Region optimization -69% Storage type optimization 500 GB PIOPs 1500 -7% m5.large (2/8) Frankfurt m5.large (2/8) Ireland 500 GB GP SSDdb.r4.xlarge (4/30.5) Yearly Saving $ 708,00 Per 10 instances Yearly Saving $ 46.860,00 Per 10 instances Yearly Saving $ 1.401,60 Per 10 instances Yearly Saving $ 14.640,00 Per 10 Volumes Things to consider Latest instance type family Storage types / storage tier Multi AZ deployment Evaluation RDS Storage autoscaling Region optimization DynamoDBIndex optimization Scalability TTL and Cache optimization 03 SERVICE CHARACTERISTICS
- 21. OS optimizationContainer workloadoptimization Some examples Amazon Elastic Kubernetes Service $ 1,701.31 EC2 t3.large, 20gb EBS EKS on Fargate $ 1,283.80 0.5 vCPU 1GB ECS on Fargate $ 407.80 0.5 vCPU 1GB Yearly Saving $ 5.255,40 Per 10 instances -38% m5.large (2/8) Amazon Linux $ 840,96 US East m5.large (2/8) RedHat Linux $ 1366,55 US East Things to consider VPC endpoints Apply caching Build in elastisity Offloading logging data Fargate for containers Open Source database engine Amazon Linux Glacier i.s.o. S3 for archives Routing change Query optimization Code optimization FSx i.s.o. ec2 hosted fileserver 04 SERVICE ARCHITECTURE
- 22. OS optimizationContainer workloadoptimization Some examples Amazon Elastic Kubernetes Service $ 1,701.31 EC2 t3.large, 20gb EBS EKS on Fargate $ 1,283.80 0.5 vCPU 1GB ECS on Fargate $ 407.80 0.5 vCPU 1GB Yearly Saving $ 5.255,40 Per 10 instances -38% m5.large (2/8) Amazon Linux $ 840,96 US East m5.large (2/8) RedHat Linux $ 1366,55 US East 04 SERVICE ARCHITECTURE
- 23. Abnormal behavior Unexpected peaks Measuring& Trendlines $ 300 storage vs $ 3.500 requests Inefficient application code Increasing fleet of instances, however website visitors count stable. Account Hacked, Crypto miners in the AMI Example cases 05 SERVICE PATTERN ANALYSES
- 24. A REAL LIFESITUATION OF COMBINING THE PERSPECTIVES M5.xlarge (4/16) $ 2014,80 Frankfurt M5.large (2/8) $ 1007,40 Frankfurt T3.large (2/8) $ 940,82 Frankfurt Rightsize Service Characteristics Reserve T3.large (2/8) $ 883,00 Ireland T3.large (2/8) $ 851,00 Ireland (1-year RI
- 25. Make the applicationteams responsible and provide them the insights and tools to take responsibility Drive Accountability Allocate cost to services, applications, departments and more help to understand your costs Understand the Costs Visibility of generated cost by your cloud platform is a fundamental first step Gain visibility The Oblivion Cloud Control Cost Cost Management Methodology approaches in five steps grouped in Cost Analyses, Cost Optimization and Cost Management Measure cloud cost and bring in the ability to take control Measure & Control Analyze Manage Optim ize Establish Benchmarks Define realistic benchmarks that will help groups, on every level, contribute to specific and company wide goals AUTOMATE YOUR CONTROLS
- 26. GOVERNANCE: COST CONTROLLERS& RESOURCE OWNERS Cost Controller App Team Resource Owner DevOps Team Project Team CCoE Finance
- 27. DEFINE AND AUTOMATEYOUR COST CONTROL FRAMEWORK PREVENTIVE DETECTIVE CORRECTIVE - Documentation - Code Peer reviews - Log everything - Use of restrictive IAM policies (ie. “deny” on creating CloudTrail trails) - … - AWS Config - In combination with use of alarms/alerts/forecasts - Dashboards and reports - Schedule regular reviews of cost and usage metrics - Automated checks (e.g aging snapshots, unattached EBS volumes, old instance generations, …) - … - (automated) resource optimizations - Training - Cost aware culture - …
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- 29. COST OPTIMIZATION FRAMEWORK EC2 ECSEKS Lambda Fargate SNS • R) Apply Right sizing • R) Decommision Zombie instances • P) Savings Plans / Reserved instances • P) Consider Spot instances • S) Latest instance Family generation • S) Use of burstable instances (Tseries) • S) Use of AMD or ARM based instances • A) Apply Scaling Policies • A) Switch to open source OS Versions optimization (amz lin) • R) Optimize Memory • P) Provisioned Concurrency for high traffic • A) Consider offload to step functions • P) Savings Plans / Reserved Instances • P) Consider Spot instances • S) use Capacity Provider to scale efficient • A) Go Serverless with ECS Fargate • P) Consider Savings Plans • A) Consider ECS Fargate • A) Go Serverless with EKS Fargate • P) Consider Savings Plans • P) Use Fargate spot for non prod • R) Delete unrelevant buckets/objects • S) Apply Lifecycle policies with versioning • S) Optimize Storage tier or consider intelligent tiering • S) Choose the right AWS region to reduce inter region traffic or consider CloudFront • A) Consider Glacier for cold data • B) analyse API cost for operation of files EBS S3 FSx for Windows EFS Storage Gateway Backup • R) Right size provisioned EBS volumes • R) Decommision unattached volumes • R) Delete old snapshots • S) Reevaluate prov. IOPS volumes for general purpose EBS volumes • A) Offload cold storage to cheaper storage • R) Right size provisioned capacity • R) Right size toughput volume • S) Single AZ deployment for Non Prod • A) Offload cold storage to cheaper storage • A) Apply dedup/compression AURORA DYNAMO DBRDS ELASTIC CACHEREDSHIFT • Apply Right sizing • …. • Apply Right sizing • Consider reservations • R) Apply Right sizing • P) Consider reservations • S) Single AZ deployment for Non Prod • S) Use RDS storage autoscaling • S) Fit for purpose storage type • A) Switch to open source DB Engines • A) Consider Aurora serverless for MYSQL • Apply Autoscaling iso Provisioned • Capacity Reservation • Usage vs provisioned • Over-provisioning to handle hot partitions • Provisioned throughput • Indexed data storage • Use of caching • Global Tables • On-demand backup • Continuous backups//point-in time recovery • Table restores • Apply Right sizing • …. VPC VPN Transit Gateway CloudFront Route 53 SNS • R )Release Unattached Elastic IP’s • A) Prevent inter AZ / region traffic • A) VPC Endpoints for heavy traffic to S3 and Dynamo DB • A) Reevaluate NAT Gatway setup • S) Optimize Cache TTL and regions • A) Go • P) C • A) Consoliate resolver endpoints • S) Restrict direct S3 access (Origin Access) NAT Gateway • R) API Gateway • P) • R) / • S) g Cloud Watch Guard Duty Inspector Cloud Trail KMS Config • R) R… • R) … Certificate Manager • R) / • S) g • R) Remove the un-necessary logs • S) • A) Offload to alternative logging service • R) / • S) g SQS SNS APPSYNC STEP FUNCTIONS App Stream Workspaces • R) Apply) • R) Right size compute instance • P) reevaluate Monthly vs hourly payment & RI • A) consider App stream for some usecases EMR Athena QuickSight Glue Kinesis Elastic Search EC2 • R) Apply Right sizing • R) Decommision Zombie instances • P) Savings Plans / Reserved instances • P) Consider Spot instances • S) Latest instance Family generation • S) Use of burstable instances (Tseries) • S) Use of AMD or ARM based instances • A) Apply Scaling Policies • A) Switch to open source OS Versions optimization (amz lin) RDS • R) Apply Right sizing • P) Consider reservations • S) Single AZ deployment for Non Prod • S) Use RDS storage autoscaling • S) Fit for purpose storage type • A) Switch to open source DB Engines • A) Consider Aurora serverless for MYSQL Stripped version
- 30. START YOUR CONVERSATION Requestyour set via: jeroen.jacobs@oblcc.com +31 6 29 52 60 92
- 31. TAKE AWAYS Start withcost insights and awareness (Tagging is Key) Focus on the quick wins (right size, zombie asset reduction, reservations) Approach Cloud Cost management from a TCO perspective Drive the full cloud cost management circle Request help, there is always a business case for cost optimizations
- 32. 32 END OF PRESENTATION Requestyour set via: jeroen.jacobs@oblcc.com +31 6 29 52 60 92