AWS Cost Optimization - JLM

© 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman
AWS Cost Optimization
Boaz Ziniman
Principal Technical Evangelist - Amazon Web Services
@ziniman
boaz.ziniman.aws
bziniman
boaz.work
t.me/CloudNewsIsrael

Today’s focus
Tools and approaches
that you can use to
optimize AWS costs

© 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates.
Before we start…

AWS allows you to eliminate waste and match
capacity and demand
Traditional hardware spend
Demand
for IT
AWS
Peak business
demand met
Avoided
waste
Avoided waste
LargeCapex
Cost optimization

How do you pay for AWS?
Pay as you go Save when you reserve Use more, save more

Different services are priced differently
Amazon EC2
Amazon EBS
Amazon S3
AWS CloudFormation

Amazon EC2 purchase options
Spot Instances
Spare EC2 capacity at
savings of up to 90%
off On-Demand prices
Fault-tolerant, flexible,
stateless workloads
Savings Plan/ Reserved
Instances
Make a 1 or 3-year commitment
and receive a significant discount
off On-Demand prices
Committed &
steady-state usage
On-Demand
Pay for compute capacity
the second with no
long-term commitments
Spiky workloads,
to define needs
To optimize EC2, combine all three purchase options!

Cost management is more than just cost optimization
… and it requires evolving capabilities to embrace the cloud
Managing access to
on-demand resources
Understanding cloud
pricing options
Selecting optimal services
and resource types/sizes
Predicting the cost associated
with variable usage
Awareness of resource costs Cost governance in a
continuous manner

Cloud Financial Management
Manage, optimize, and plan AWS cost and usage
PlanSave RunSee
Planning and
forecasting
Cost
optimization
Cloud financial
operations
Measurement and
accountability

AWS services and features to support your
Cloud Financial Management needs
Planning &
forecasting
Measurement &
accountability
Cost
optimization
Cloud financial
operations
AWS Cost Explorer
AWS Budgets / Budgets Reports

Explore Costs and Usage

AWS Budgets

AWS services and features to support your
Cloud Financial Management needs
Planning &
forecasting
Measurement &
accountability
Cost
optimization
Cloud financial
operations
AWS Cost Explorer
AWS Budgets / Budgets Reports
Amazon EC2 Spot
AWS Fargate (Serverless, Spot)
AWS Trusted Advisor
AWS Pricing Calculator
AWS Pricing Pages
AWS Cost Allocation Tags
AWS Cost Explorer
AWS Organizations

Use AWS
Reserved
Instances
5
the six ways
6
Stop paying
for idle EC2
and RDS
instances
2
Choose
Amazon EC2
Spot for
containers
3
Use AWS
Compute
Savings Plans
4
Cleanup
underutilized
resources
6
Enable S3
Intelligent-
Tiering
1

Enable S3
Intelligent-Tiering
Implementation time: Minutes
1

Scenario
• You are using S3 standard storage class
• You might be paying for S3 storage you
don’t use
Solution: S3 Intelligent-Tiering

Your choice of Amazon S3 storage classes
Access FrequencyFrequent Infrequent
• Active, frequently
accessed data
• Milliseconds access
• > 3 AZ
• $0.0210/GB
• Data with changing
access patterns
• > 3 AZ
• $0.0210 to
$0.0125/GB
• Monitoring fee per
Obj.
• Min storage duration
• Infrequently
accessed data
• > 3 AZ
• $0.0125/GB
• Retrieval fee per GB
• Min object size
S3 Standard S3 S-IA S3 Z-IA Amazon Glacier
• Re-creatable, less
accessed data
• 1 AZ
• $0.0100/GB
• Min object size
• Archive data
• Select minutes or
hours
• > 3 AZ
• $0.0040/GB
• Min object size
S3 INT

S3 Intelligent-Tiering automates cost savings

Enable S3 Intelligent-Tiering for
infrequently accessed objects
Minutes 20% – 30%
(for S3 Standard
objects transitioned
to S3 Intelligent-
Tier)
30 days None
Implementation
time
Savings
potential
Time to realize
savings
Commitment
required

Get started
Upload objects directly
into S3 Intelligent-Tier
(API)
Create Lifecycle Rules that make
use of Intelligent-Tiering (UI)
https://aws.amazon.com/blogs/aws/new-automatic-cost-optimization-for-amazon-s3-via-intelligent-tiering/

Stop paying for idle
EC2 and RDS instances
Implementation time: Minutes to hours
2

Scenario
• You leave instances running during
evenings, weekends, and holidays
• You might be paying for EC2 and RDS
instances even when they are idle
Solution: AWS Instance Scheduler

800
700
600
500
400
300
200
100
0
TotalEC2Hours
EC2 Hours vs Time
Days of the week
MondayFriday
Weds Thurs Fri Sat Sun Mon Tues Weds
Pay for what you need
Thurs Fri Sat Sun Mon Tues
MondayFriday

Schedule EC2 and RDS instances in
non-production environments
Minutes to hours Reduce On-
Demand costs by
up to 35%*
Minutes None
Implementation
time
Savings
potential
Time to realize
savings
Commitment
required
* Instance scheduling starts on Friday at 6pm and ends Monday at 6am

Get started
https://aws.amazon.com/solutions/instance-scheduler/
1
2
Install the AWS Instance Scheduler
Create schedule based on business
requirements
Tag non-production EC2 and RDS
instances to be scheduled
1
2
3

Choose Amazon EC2
Spot for containers
Implementation time: Hours/days to weeks
3

Scenario
• You are running containerized workloads on EC2, or
using managed services such as ECS, EKS, and Fargate
• You are paying the default On-Demand pricing
Solution: Amazon EC2 Spot

Choose Spot for containerized workloads that
are stateless, fault-tolerant, and loosely-coupled
Hours/days
to weeks
Up to 90% cheaper
than On-Demand
Hours/days
to weeks
None
Implementation
time
Savings
potential
Time to realize
savings
Commitment
required

Getting started
ECS on Spot
https://aws.amazon.com/ec2/spot/containers-for-less/get-started/
EKS on Spot
https://aws.amazon.com/blogs/compute/run-your-kubernetes-workloads-on-amazon-ec2-spot-instances-with-amazon-eks/
Fargate on Spot
https://docs.aws.amazon.com/AmazonECS/latest/developerguide/fargate-capacity-providers.html
AWS Spot workshops for other workloads
https://ec2spotworkshops.com/
1
2
3
4
Self-service container references

Use AWS Compute
Savings Plans
Implementation time: Hours
4

Scenario
• You have EC2 or Fargate workloads that are always on
• You are leveraging Lambda in your architecture
Solution: AWS Compute Savings Plans

Save when you reserve
Amazon EC2 Reserved Instances (RI) & Saving Plans Pricing
Steady state usage
Savings up to
72% off the
On-Demand price
Customers saved billions and over time
we rolled out several innovations
RI Marketplace
2012
Regional RIs
2016
Convertible RIs
2016
Instance size flexibility
2017
1- and 3-year
terms
Saving Plans
2019

Introducing Savings Plans
A new flexible pricing model which
helps you save up to 72% on EC2 and
Fargate usage. Customers simply
commit to a consistent amount of
usage (e.g. $10/hour) over 1 or 3
years, and in exchange they will
receive a lower price for that usage.
Every type of compute usage has an On
Demand rate and a Savings Plans price.
If a customer commits to $10/hour of
compute usage, then they will get
Savings Plans prices on all usage up to
$10. Any usage beyond the
commitment will be charged at regular
On-Demand rates.
How it works?What is it?

Why Savings Plans?
Flexible purchase option that offers savings of up to 72% on Amazon EC2 and AWS Fargate usage
Easy to use
Receive lower rates automatically
in exchange for a monetary
commitment
Flexible
Make a single commitment that
applies across multiple AWS
Compute Services, even as your
requirements change
Significant Savings
Select from two types of savings
plans to access prices of up to 66%
off on Compute Savings Plans and
72% off on EC2 Instance Plans
Significant savings just like EC2 RIs, with more flexibility

Types of Savings Plans
Provide the lowest prices, up to 72% off (same as
Standard RIs) on the selected instance family (e.g.
C5 or M5), in a specific AWS region
Offer the greatest flexibility, up to 66% off (same
prices as Convertible RIs)
FLEXIBLE
ACROSS
ü Instance family: E.g. Move from C5 to M5
ü Region: E.g. change from EU (Ireland) to EU
(London)
ü OS: E.g. Windows to Linux
ü Tenancy: E.g. switch Dedicated tenancy to
Default tenancy
ü Compute options: E.g. move from EC2 to
Fargate or Lambda
FLEXIBLE
ACROSS
ü Size: E.g. move from m5.xl to
m5.4xl
ü OS: E.g. change from m5.xl
Windows to m5.xl Linux
ü Tenancy: E.g. modify m5.xl
Dedicated to m5.xl Default tenancy
Compute
Savings Plans
EC2 Instance
Savings Plans

Choose 1 year, No Upfront
Compute Savings Plans
Hours Up to
54% (EC2),
20% (Fargate),
12% (Lambda)
cheaper than
On-Demand
Hours 1 year, No Upfront
costs
Savings
potential
Time to realize
savings
Commitment
required
Implementation
time

Get started
AWS Cost Explorer will provide you
with Savings Plans recommendations
Review your Savings Plans
recommendations in the AWS Cost
Explorer
Customize recommendations based on
your needs (Term Length: 1 Year,
Payment Option: No Upfront)
Add preferred Savings Plans amount to
cart and purchase
1
2
3
https://docs.aws.amazon.com/savingsplans/latest/userguide/get-started.html

Use AWS
Reserved Instances
Implementation time: Hours
5

Scenario
• You have RDS, Redshift, ElastiCache and
Elasticsearch workloads that are always on
Solution: AWS Reserved Instances

How RI Pricing Works?
Instance
Attributes
Term
Commitment
Payment Option Offering Class
Type (family+size)
Scope (region/AZ)
Tenancy
Platform
1yr
3yr
All Upfront
Partial Upfront
No Upfront
Standard
Convertible

Choose 1 year, No Upfront
Reserved Instances
Hours Up to
42% (RDS),
32% (ElastiCache),
31% (Elasticsearch),
30% (Redshift)
cheaper than
On-Demand
Hours 1 year, No Upfront
costs
Savings
potential
Time to realize
savings
Commitment
required
Implementation
time

Get started
AWS Cost Explorer will provide you with
Reserved Instance recommendations
Review your Reserved Instance
recommendations in the AWS Cost Explorer
Customize recommendations based on your needs
(Term Length: 1 Year, Payment Option: No Upfront)
Purchase Reserved Instances from the specific
service page in the AWS console
1
2
3
https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/ri-recommendations.html

Cleanup underutilized
resources
Implementation time: Hours/days
6

Scenario
• You created RDS, Redshift, Route 53, ELBs, EIPs,
and EBS resources that are now underutilized
• You are paying for the resources as if they are still
being fully used
Solution: AWS Trusted Advisor

Cost Optimization
$1,092.56
Potential monthly savings
AWS Trusted Advisor
For Business Support Plan subscribers

Cleanup underutilized resources
identified by AWS Trusted Advisor
Hours to days $100s to $1000s Hours to days None
Implementation
time
Savings
potential
Time to realize
savings
Commitment
required

Getting started
Refresh all of your Cost
Optimization checks
Review recommended actions and
potential savings provided by the checks
Prioritize resource cleanup based
on greatest savings
https://aws.amazon.com/premiumsupport/technology/trusted-advisor/
https://aws.amazon.com/premiumsupport/pricing/
1
2
3
Cost Optimization Checks

Final thoughts

To understand
your costs
AWS
Cost Explorer
To control
your costs
AWS Budgets
To optimize
your costs
AWS
Recommendations
use use use

Every solution is different
You may not have seen your particular
scenario in this presentation. If you didn’t,
there are other AWS resources available.
We’re here to help.

We don’t want to make money from
customers that aren’t getting value
from us… How many of your
partners call you up and say ‘stop
spending money with us’?
Andy Jassy
CEO, AWS

Thank You
Boaz Ziniman
Principal Technical Evangelist - Amazon Web Services
@ziniman
boaz.ziniman.aws
bziniman
boaz.work
t.me/CloudNewsIsrael

AWS Cost Optimization - JLM

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