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AWS Financial Governance Practice
- 1. PUBLIC CLOUD FINANCIAL GOVERNANCE Meetup 1.0 Amir Arama June 2018 Cloud Center of Excellence INTRO
- 2. ABOUT ME Amir Arama – Sr. Director Operation Engineering @ Perion Networks Cloud Center of Excellence Worked 17 years @ HPE and past 4 years as AWS evangelist, establishing the AWS practice, both financially & technically. Involved & engaged with AWS leadership in all levels including contracts, financial tools, technical leadership & partners ecosystem 20+ years experience in software organizations with background in RnD, Product Mgmt., SaaS Operations , Architect, Biz Operation & AWS CCoE
- 3. PUBLIC CLOUD – WHY? Cloud Center of Excellence
- 4. Run efficiently on Public Cloud STEP 1: DEFINE YOUR END GOAL Cloud Center of Excellence Technical Framework Financial Practice
- 5. UNDERSTAND CLOUD FINANCIAL CHALLENGES Cloud Center of Excellence Challenge Solution
- 6. WHAT CLOUD FINANCIAL GOVERNANCE MEANS? Cloud Center of Excellence Methodology to gain financial directives, visibility, predictability, control & cost savings capabilities into organizations that wants to run workloads in the public cloud.
- 7. UNDERSTAND FINANCIAL GOVERNANCE BENEFITS Cloud Center of Excellence Monetary - Volume & special discounts under one umbrella - Drives cost optimization tools (RI, Spot, Lambda, config rules…) - Favorable contract terms with AWS - Financial support from AWS for cloud migrations Control & Visibility - Provide Biz eyes to cloud spend per BU, product & intent of use - Provide Biz controls and alerts on spend anomalies - Provide Biz controls on budgets and forecasting tools Security Baseline - Allows covering mandate security Aspects - Protect consumption abuse by unauthorized personals - Aligns over unified access control standards
- 8. Establish relationship, contracts with AWS & Partners ecosystem (EAP, EDP, Resellers …) Cloud Center of Excellence BUILD YOUR FINANCIAL GOVERNANCE PLAN Plan accounts structure & shared services strategy Establish hooks with BizOps/CFO for budgets & allocation controls Enroll existing cloud accounts workloads Qualify & on-board new workloads Ongoing mgmt. & reporting OPTIMIZE
- 9. Cloud Center of Excellence Past Experience: Central financial governance lowers your costs while preserving flexibility How? - Centrally manage your AWS relationship & programs - Plan your cloud structure - Centrally manage budgets reports & alerts using relevant organizational hooks - Centrally drive execution of AWS financial best practices ** Outcome Realistic targeted effort together with executive sponsorship should result in between 30% to 40% annual cost reduction PUBLIC CLOUD FINANCIAL GOVERNANCE - SUMMARY ** AWS financial best practices: RI’s, Spot, Rightsizing, Tagging, Config rules automations, unattached disks, aging cleanup policies, scheduled shutdowns…
- 10. PUBLIC CLOUD FINANCIAL GOVERNANCE Meetup 1.0 Amir Arama June 2018 Cloud Center of Excellence Q & A
- 11. PUBLIC CLOUD FINANCIAL GOVERNANCE Meetup 1.0 Amir Arama June 2018 Cloud Center of Excellence PLAN DRILL DOWN
- 12. STEP 1: AWS & PARTNERS ECHO SYSTEM Cloud Center of Excellence • Work with your AWS Account Manager to understand how can you both collaborate and what assistance he can provide. • Find out if there are “weight” opportunities by working with your AWS account team • Plan contractual approach together with your AWS Account Manager: EAP, EDP, Resale? • Identify (inherit) your suitable cost management tool Establish relationship & contracts with AWS & Partners ecosystem (EAP, EDP, Resellers …)
- 13. STEP 2: ACCOUNTS STRUCTURE Cloud Center of Excellence Plan accounts structure & shared services strategy Master Billing SandboxShared Services Production Non Production
- 14. STEP 3: FINANCE TEAM HOOKS Cloud Center of Excellence Establish hooks with BizOps/CFO for budgets & allocation controls Visibility Control Projections • Provide CFO/BizOps spend reports per BU, Product, intent of use • Provide Dashboard for spend, budgets, and actuals • Align budgets with CFO/BizOps per BU, Product, intent of use • Generate approval flow process in collaboration with CFO/BizOps • Establish projection reports capabilities for quarter & annual spend • Provide projection vs. actuals reports to increase spend visibility
- 15. COST MANAGEMENT TOOLS Cloudyn CloudHealth Cost Explorer Israeli startup bought by Azure Cost reporting & chargebacks Dashboard & restricted views Supports RI’s management Budgets allocations & alerts Supports cost allocation Supports custom tags Multi-dimensional approach Provides cost optimization recommendations Immature ‘actions’ automations “Azure first” shop Not very intuitive GUI Leading Cost Mgmt. technology Cost reporting & chargebacks Dashboard & restricted views Supports RI’s management Budgets allocations & alerts Supports cost allocation No support for custom tags Two dimensional approach Provides cost optimization recommendations Mature ‘actions’ automations “AWS first” shop Slick GUI AWS Cost Mgmt. utility Cost reporting Limited Dashboards Budgets allocations & alerts No support for cost allocation No support for custom tags No OOTB cost optimization recommendations No ‘actions’ automations Good enough tool to start with Its free
- 16. STEP 4: EXISTING ACCOUNTS ENROLLMENT Cloud Center of Excellence Enroll existing cloud accounts workloads Account naming convention & primary contacts Auditing via CloudTrail Root User Credentials & API’s Keys Accounts separation/segregation (Prod vs. Non Prod) Tagging of resources Linkage to company master payer account Federation with company AD Example of AWS account enrollment steps:
- 17. STEP 5: NEW ACCOUNTS ENROLLMENT Cloud Center of Excellence Qualify & on-board new workloads
- 18. STEP 6: ON-GOING MGMT. & REPORTING Cloud Center of Excellence Ongoing mgmt. & reporting Setup users & PDLs subscribers from both finance and engineering Setup budget & budget alerts Create a customized default dashboard Provide basic education within enrollment phase Setup a monthly cost report
- 19. STEP 7: OPTIMIZE YOUR COSTS Cloud Center of Excellence Optimize Delete stopped instances & their storage Delete unattached volumes Stop/Image & Terminate Delete aged snapshots Remove unused Elastic IPs Set shutdown automation per schedule Right size your instances Reserve instances Move to Spot where possible Minor Minor Minor Minor Minor Moderate Moderate Moderate Moderate
- 20. STEP 7: OPTIMIZE YOUR COSTS Cloud Center of Excellence Optimize On-Demand Pay for compute capacity by the second or hour with no long- term commitments For spiky workloads, or apps being developed or tested on EC2 for the first time Reserved Reserved Instances provide you with significant discount compared to On-Demand instance pricing. For applications that have steady state or predictable usage, Reserved Instances can provide significant savings compared to using On-Demand instances. Spot Spot instances allow you to request spare Amazon EC2 computing capacity for up to 90% off the On- Demand price. For fault tolerant, instance flexible or time-insensitive workloads
- 21. CCOE – WHY AND WHAT? Cloud Center of Excellence Generate the cloud services roadmap & best practices Establish cloud standard & best practices Automate All, CI/CD pipelines, landing zones & shared services Be Integral part of R&D and their agile practice AWS requires different range of expertise than what traditionally exists in IT/Delivery teams. AWS requires mainly developing skillsets and methodologies as its very API & automation driven Expertise Traditional way of working with tickets and siloed teams are adding a lot of overhead and slows down the organization. There needs to be tight relationship with R&D teams and their agile practice. Agility & Pace Working on multiple agenda’s simultaneously: public cloud, private cloud, production and labs creates a huge focus challenge to the IT/Delivery teams Focus
- 22. PUBLIC CLOUD FINANCIAL GOVERNANCE Meetup 1.0 Amir Arama June 2018 Cloud Center of Excellence Q & A
Editor's Notes
- Pay Per use: Variable workloads: time limited workload & breathing application scale in and out Practically endless capacity on demand Cheap to start/revise/retire new solutions Mature cost framework - know exactly how much solution costs OpEx vs. CapEx spend New Markets: Standard AWS capabilities across all locations, with rapid expansion into new countries provides cost effective access to new markets Nimble expansion to new countries Resiliency: The use of multi AZ deployments allows greater resiliency capabilities & built in AA DR capabilities. Operational Cost Hundreds of API’s ready to be used programmatically AWS managed services significantly reduce operational costs. Focus Infrastructure talent on more strategic activities
- Master Billing account – all accounts would be child of this account. Typically No charges in this account and only used for billing proposes. When working through reseller this account belongs to the reseller and not to the company. Shared Services account – Typically managed by the CCoE team of an organization. Used to provide shared services across multiple accounts. Examples: EPO service, DC service, cross accounts monitoring tools, security services.. Sandbox account – used to provide engineering the freedom to try.. Engineering teams to use when needed to try new solutions, innovations, experimenting … Non Prod account – can hold multiple Non Prod environments, i.e. QA, Staging, Performance, Security… anything that is not production yet. Staging/Pre-Prod typically assigned with a separate single VPC that is aligned in structure to production. Strict privileges but with more ownership of engineering team. Production account – where your customers are being served from. Sterile account with very strict privileges. Typically access is granted via tools & automations (i.e Jenkins) and not directly to the account. Typically full privileges are granted to the CCoE team only.