The less you spend on infrastructure, the more you can invest in other areas of your business. We'll look at how Spot Instances, Reserved Instances, CloudFront, Billing Alarms, and more can help you lower your spend. Learn how to quickly identify under-utilized resources and what steps to take to remediate those money wasters. You'll build the essential cost savings toolkit that is applicable across all industries and win the admiration of your future finance team.

1. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Keeping Your Infrastructure Costs
Low
Neeraj Verma, Solutions Architect @ AWS
@rajverma

2. How to make your funding go further

3. LOWER COSTS WITH THE AWS CLOUD
2 31 4
Replace up-front
capital expense with
low variable cost
Save more money as
you grow bigger
Economies of scale
allow AWS to continually
lower costs
Pricing model choice
to support variable &
stable workloads

4. LOWER COSTS THAN ON-PREMISES
On-Premises
Traditional
Data Centre
On-Premises
Virtualised
Data Centre
AWS
CAPEX
CAPEX
OPEX
OPEX
OPEX
Cost savings from running
internal IT more efficiently
Cost savings from moving
to a cloud provider
AWS Scale
• Multiple new Availability Zones built each
year
• Volume purchasing, highly automated
supply chain optimization
Utilization fundamentally higher in the AWS
Cloud
• Aggregating non-correlated workloads,
scale, spot market
AWS specific hardware designs
• OEM acquisition of custom servers and
networking equipment
• Direct purchasing of memory, disk & CPU
• AWS controlled hypervisor and network
protocol layers

5. AWS PRICING PHILOSOPHY
More AWS
Usage
More
Infrastructu
re
More
Customer
s
Lower
Infrastructu
re Costs
Economies
of Scale
Reduced
Prices
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
66PRICE
REDUCTIONS
We pass the savings along to our
customers in the form of low
prices and continuous reductions
* as of summer 2018

6. COST OPTIMIZATION TIPS & TRICKS

7. 1. CHOSE THE RIGHT INSTANCE TYPES
Choose an instance
that best meets your basic
requirements
Start with memory & then
choose closest virtual cores
Assess peak IOPS storage
requirements
Run multiple instances
in multiple Availability Zones
Change instance size up
or down based upon
monitoring
Use CloudWatch &
Trusted Advisor to assess
START DEPLOY & SCALETUNE

8. 2. USE AUTO SCALING
LAUNCH
CONFIGURATION
Describes what Auto Scaling will
create when adding Instances
Only one active launch
configuration at a time
as-create-launch-config
--image-id ami-54cf5c3d
--instance-type m1.small
--key mykey
--group webservers
--launch-config 101-launch-config
AUTO SCALING
GROUP
Auto Scaling managed grouping
of EC2 instances
Automatically scale the number
of instances by policy
as-create-auto-scaling-group 101-as-group
--availability-zones us-east-1a us-east-1b
--launch-configuration 101-launch-config
--load-balancers myELB
--max-size 5
--min-size 2
AUTO SCALING
POLICY
Parameters for performing an Auto
Scaling action
Scale Up/Down and by how much
as-put-scaling-policy 101ScaleUpPolicy
--auto-scaling-group 101-as-group
--adjustment=1
--type ChangeInCapacity
--cooldown 300

9. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
UTILIZATION & AUTO SCALING
GRANULARITY

10. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
UTILIZATION & AUTO SCALING
GRANULARITY
41 Instance Hours
m4.large @ $0.108/hr
= $4.428/day

11. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
UTILIZATION & AUTO SCALING
GRANULARITY
70 Instance Hours
t2.medium @ $0.047/hr
= $3.29/day

12. 3. TURN OFF UNUSED INSTANCES
Development/test instances
Simple instance stop/start
Tear down & build rapidly
Treat resources as disposable
Deployment & Management
Containers
Dev/ops Tools
Resource
Templates
Usage
Tracking
Monitoring
and Logs

13. 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
4. USE RESERVED INSTANCES
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance

14. RI PRICING | T2.SMALL IN Canada

15. AWS SERVICES OFFERING
RESERVATIONS
Amazon EC2
up to 75% savings
Amazon RDS
up to 76% savings
Amazon DynamoDB
up to 76% savings
Amazon Redshift
up to 73% savings
Amazon ElastiCache
up to 70% savings

16. 5. USE SPOT INSTANCES
Pricing
Up to 92% discount
Elastic
Capacity not otherwise
available
Tradeoff
Potential for interruption

17. USING SPOT INSTANCES FOR HPC
WORKLOADS
0
18
35
53
70
88
On-Premises AWS
$68M
$33K
Cost Comparison
1.21 PFLOPS, 16,788 EC2 Instances in 8 Regions, 264 years of computing in 18 hours

18. 6. MAKE USE OF APPROPRIATE STORAGE
CLASSES
Amazon S3 One Zone-Infrequent Access
• Data is stored within a single
Availability Zone
• Up to 20% savings
• Great for secondary backups or re-
creatable data
Amazon Glacier
• Archive restore time from minutes to
hours
• Up to 67% savings
• Great for archiving, long-term
backups and cold data

19. 7. OFFLOAD FROM YOUR ARCHITECTURE
The more you can offload, the less infrastructure you need to maintain, scale and pay for
• Offload traffic to Amazon CloudFront and Amazon S3
• Introduce Caching
No
CDN
ResponseTime
InstanceLoad
ResponseTime
InstanceLoad
CDN for
Static
Content
ResponseTime
Instance
Load
CDN for
Static &
Dynamic
Content

20. 8. USE SERVICES, DON’T REINVENT THE
WHEEL
ENTERPRISE
APPS
DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousing
Hadoop/S
park
Streaming Data
Collection
Machine
Learning
Elastic
Search
Virtual
Desktops
Sharing &
Collaboration
Corporate
Email
Backup
Queuing &
Notifications
Workflow
Search
Email
Transcoding
One-click App
Deployment
Identity
Sync
Single Integrated
Console
Push
Notifications
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource
Templates
TECHNICAL &
BUSINESS
SUPPORT
Account
Management
Support
Professional
Services
Training &
Certification
Security &
Pricing
Reports
Partner
Ecosystem
Solutions
Architects
MARKETPLACE
Business Apps
Business
Intelligence
DatabasesDevOps Tools NetworkingSecurity Storage
Access
Control
Identity
Management
Key Management
& Storage
Monitoring
& Logs
Assessment &
Reporting
Resource & Usage
Auditing
SECURITY & COMPLIANCE
Configuration
Compliance
Web Application
Firewall
HYBRID
ARCHITECTURE
Data Backups
Integrated App
Deployments
Direct
Connect
Identity
Federation
Integrated
Resource
Management
Integrated
Networking
API Gateway
IoT
Rules
Engine
Device Shadows
Device SDKs
Registry
Device
Gateway
Streaming Data
Analysis
Business
Intelligence
Mobile
Analytics
Regions
Availability
Zones
Points of
Presence
INFRASTRUCTURE
CORE SERVICES
Compute
VMs, Auto-scaling, &
Load Balancing
Storage
Object, Blocks, Archivals,
Import/Export
Databases
Relational, NoSQL, Caching,
Migration
Networking
VPC, DX, DNS
CDN

21. AVOID UNDIFFERENTIATED HEAVY
LIFTING
Amazon Relational
Database Service (RDS)
Elastic Load Balancing Amazon Simple
Queue Service (SQS)
Amazon ElastiCache Amazon Elastic
MapReduce
Amazon Simple
Notification Service (SNS)

22. 9. USE CONSOLIDATED BILLING
• Receive a single bill for all charges incurred across all linked accounts
• Share RI discounts
• Combine tiering benefits

23. 10. TAKE ADVANTAGE OF AWS TOOLS
AWS Trusted Advisor

24. 10. TAKE ADVANTAGE OF AWS TOOLS
AWS EC2 Usage ReportsAWS Cost Explorer

25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
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