Samir Mehra, Director of Products, CloudHealth Technologies AWS provides significant benefits in agility, responsiveness, simplified operations, and improved innovation. But it can also lead to increased costs if you don't manage it proactively. In this session, we will discuss ways to reduce your spend in AWS and optimize your environment, including purchasing Reserved Instances, rightsizing EC2 instances and EBS volumes, and terminating unused infrastructure. We will also share pro-tips and best practices from our in-house and customer cloud experts.

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TECHNOLOGIES INC.© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How to Reduce Spend and Improve
Efficiency in your AWS Environment
Samir Mehra
Director of Products, CloudHealth Technologies

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TECHNOLOGIES INC.
CloudHealth Technologies At A Glance
• $86 Million in Venture Capital Raised
- Sigma Prime, .406, Scale Venture Partners,
Sapphire Ventures, Kleiner Perkins Partners,
& Meritech Capital
• 700+ Direct Customers
• 2100+ Channel Customers through
100+ Partners
• 250+ Employees
• Headquartered in Boston, MA
• Offices located in San Francisco,
Washington DC, London, Amsterdam,
Tel Aviv, Sydney & Singapore

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Driving Success
Enterprises MSPs

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Cost remains a top driver of
public cloud adoption….
§ Many people move to the cloud looking for cost
savings….
§ …. However, according to Gartner, it is not
uncommon for public cloud service bills to be
two to three times higher than expectations!
§ Cloud growth is not bad, but you need to know
how to keep it under control

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• Not spinning down unused EC2 instances
• Over-provisioning EC2 instances
• Not choosing the right storage tier for workloads
• Automated scripts that accidently cause high transfer costs (i.e., for S3)
• Not factoring in Appliance charges (load balancers, network, etc.)
Common reasons cloud bills may be higher than
expected

6. 1. Delete Unused Infrastructure

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Delete Unused Infrastructure
• What are common
causes of unused
infrastructure?
- Forgetting to turn off
resources
- Unsuccessful launch of
instances
- De-provisioning scripts fail
• Who are the culprits?
- Unattached EBS Volumes
- Aged Snapshots
- Unused Resources
- Disassociated ElasticIP
Addresses
• How you can fix this?
Start your unused
infrastructure hunt!
- Find compute that has a
max CPU < 5% over the
past 30 days
- Delete EBS volumes when
unattached for two weeks
or more
- Set an organizational
standard for number of
snapshots per machine &
retention period
One leading publisher keeps a lookout for instances
that have less than 5% utilization, so they can
investigate terminating them. They estimate they find
at least one unused instance per month.

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How CloudHealth can help: Health Check Pulse
Evaluate opportunities to optimize, govern and secure your cloud

9. 2. Rightsize Your Environment

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Rightsize Your Environment
§ Why is rightsizing so important?
– Difficult to gain visibility into how IT is provisioning resources
– Over-provisioning assets can lead to exponentially higher costs. Here’s a quick
example:
One online image sharing
company rightsizes 400+
instances across CPU,
memory and disk every year.
Original
Resource
New
Resource
Savings
(25 -
50% of
original
cost)
• How can you fix this?
– A good starting place for rightsizing is to look for instances
that have an Avg CPU < 5% and Max CPU < 20% for 30 days

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How CloudHealth can help: Performance-Based
Rightsizing Recommendations
§ Evaluate EC2 instances across CPU,
memory, disk & network utilization for
recommendations on when to downgrade
– Metrics collected via CloudHealth
agent, or existing tools
§ Evaluate EBS volumes too!
– Evaluate capacity and read/write
throughput

12. 3. Automate to Reduce Waste

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Automate to Reduce Waste
§ How many of your instances do you
really need to run 24x7?
– Test, development, QA, batch processes
are not used all the time
§ How you can fix this: Set a weekly
target
– Leverage governance policies to
automate turning off unused resources.
– For example: Spin down non-production
assets when not in use (i.e. nights,
weekends, holidays).
One large publishing company
set a target at less than 80 hours
per week, which is saving them
thousands of dollars a month.

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How CloudHealth can help: Active Policy
Management
§ Define a set of policy rules and associated actions, such as:
– Find unattached volumes and delete them or notify admin
– Look for snapshots older than 30 days and delete them or notify admin
– Identify disassociated IP addresses and release them or notify admin
– Flag instances with max CPU, memory or disk utilization for 1 week terminate them
or notify admin
§ Send all tasks through approval workflows:
Defining governance rules and automating tasks
IF: A volume is
unattached for
more than 1
week
THEN: Email
Susan for
approval
THEN: Email Bob
for authorization
THEN: Terminate
instance

15. 4. Leverage Reservations

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§ What are Reservations?
– Hourly discount compared to On-Demand
– Three purchasing options: All upfront,
Partial upfront, No upfront
– 1 or 3 year terms
– Some capacity assurance
– Can be modified in limited ways
§ Why buy Reservations?
– Saves up to 75% compared to on-demand
– Best practice is to aim for at least 70%
reservation coverage
– You must keep them continuously
optimized through modification
Offer Type Commitment Discount Range
No Upfront 1 Year 27%–50%
Partial Upfront 1 Year 32%–53%
All Upfront 1 Year 34%–53%
No Upfront 3 Year 32%-55%
Partial Upfront 3 Year 38%-74%
All Upfront 3 Year 38%-75%
Think vouchers, not instances
AWS Reserved Instance Management
One consumer travel website is now
running more than 90% of its EC2
instances covered by RIs, saving the
company millions of dollars a year.

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How CloudHealth can help: AWS Reserved Instance
Management
1. Easily model out standard or
convertible reservation purchases
to understand ROI and make the
best decisions
2. Continuously and automatically
modify reservations so you always
get the maximum value from your
investment
3. Get alerts on underutilized
reservations and opportunities for
purchasing new reservations so
your environment is continuously
optimized

18. Thank you for attending!
Learn more about CloudHealth by visiting www.cloudhealthtech.com.