Cloud promises a simple pay-as-you-go approach to technology, with cost-savings at the top of the list. As more enterprises adopt the cloud, cost continues to be a major issue with new pricing models, services and features that introduce waste and complexity into the decision-making process. In this webinar, you’ll learn expert strategies that will amplify your cloud performance and maximize your ROI with a level of intricacy that can’t be solved using manual process – tools and expertise are needed.

1. Cloud Optimization
Filling in the Gaps

2. Willy Sennott
Director, Data Science & Optimization
Stefana Muller
Senior Product Manager, Product
Development
2
Chris Garvey
Executive Vice President, Product

3. Housekeeping Items:
Questions?
A copy of the presentation will be
provided to all attendeesPresentation Slides
Feedback
To ask a question, click on the question
button
Don’t forget to leave feedback at the
end of the webinar

4. Original and current AWS
Premier Consulting Partner
AWS Managed Service
Partner
100% certified engineers
and architects
Microsoft Azure Gold
Partner
Competencies:
DevOps
Marketing & Commerce
Life Sciences
Microsoft Workloads
Migration
Financial Services
Breadth and Depth with AWS
& Microsoft

5. The Journey to Cloud Transformation
• Cloud Adoption Drivers and Pitfalls
• Introduction to Optimization
• Tagging & Governance
• Reserved Instances
• Post Optimization

6. Cost is biggest driver
of moving to the cloud
What are the key
factors in building the
business case for
cloud-computing
investments at your
organization?
38.8%
32.2%
32.0%
26.9%
23.5%
Cost savings
Resource scalability based on
application/workload demands
Time to market/agility
Improved availability/uptime
Less to manage internally
n = 490
Source: 451 Research, Voice of the Enterprise:
Cloud Transformation, Organizational Dynamics 2017

7. Cost out of Control
What are the top IT
pain points in your
organization? Please
select up to 3.
53.2%
46.6%
43.3%
29.2%
27.2%
26.0%
24.0%
9.7%
2.6%
Cost/budget
Security issues/concerns
Responding effectively to changing business requirements
Managing legacy infrastructure
Insufficient staff
Dealing with new applications/projects
Skills shortage
Vendor management
Other
n = 534Source: 451 Research, Voice of the Enterprise:
Cloud Transformation, Organizational Dynamics 2017

8. What Does This Tell Us?
• Cost Savings is the key driver of cloud adoption
• Post-Migration to Cloud, Costs spiral out of control
• Policies and Governance can control costs to an extent
• Optimization isn’t a 1-time event
• Multi-cloud increases complexity and accelerates the problem
• Manual optimization is costly and not a viable option

9. • Speed of Change
• Flexible Automation
• Organization-Level
Optimization
• Overlap
CHALLENGES TO DOING
IT WELL
• AWS / Azure Bill
• Trusted / Cloud Advisor
• Agent Metrics (must have
memory)
• Tagging Strategy
DATA SOURCES ADOPTION HURDLES
• Complexity
• Automation
• Correct Audience
• Risk Explanation
• Data Sources
Optimization

10. Budget
• Cash Flow Position
• What is your annual budget for cloud?
• Overall budget, budget by business unit or project, etc.
Growth
• Seasonal Cycles
• Do you expect to migrate additional workloads to the cloud?
• How do you expect your existing workloads to grow or shrink?
• What new workloads are going to be built in the cloud?
Support
• Maturity of Applications
• Can your non-production workloads be turned off overnight and/or on weekends?
• Do you have resources to support application changes required to support
autoscale and spot usage?
Key Considerations Prior to Optimization

11. Optimization: Key Requirements
Optimization out of order leads to sub-optimal results and can
affect application performanceOrder Matters
Not a manual effort, Factors change regularlyData Driven
Culture and Process change, Full buy-in leads to greater successImplementation
Monthly or Quarterly re-checks, Regular audits on processContinuous
Typical entities are “Un-Optimized” at a rate of
25-40% using 1st phase optimization lens.

12. Common Challenges to Fully Realizing Optimization
Opportunities
• Widely Distributed decision groups
• 3rd Party Applications
• Lack of coordination between key decision makers
• Data access
• Large entities built through multiple acquisitions
• Lack of overall governance
• Negative change in underlying business performance
• Lack of defined “patching or change windows”
• Territorial decision makers

13. Define Standards/Strategy
Tag Programmatically
AWS Config Rules
Auto-Owner Tag for Blame/Shame
Standardization
Resource Identification
Programmatic Actions on
Resources
Data from Resources
Alert on Untagged Resources
Tagging Best Practices and Governance
GOVERNANCE BEST PRACTICES

14. Onboarding
Monitoring
Right Sizing Initiative
RI Purchases
Quarterly
Optimization Review
Yearly Optimization
Review
Optimization Methodology
Eliminate
Waste
Reserved
Instance
Purchase
Auto Park Right Size Spot Usage
Reserved
Instances

15. Optimization – Pillar Overlap
RI’s
Right
Sizing
Family
Refresh
Auto
Park
Spot

16. WASTE ELIMINATION
IS SAVING
100%
ON COSTS
RIGHT SIZING
SAVES
50%-75%
REDUCED
RDS COSTS
BY 50%
WITH MULIT AZ
DEPLOYMENTS
64%
SAVINGS
BY REGULARLY
AUTO-PARKING
RESOURCES
FAMILY
REFRESH
BENEFITS
RANGE
5%-30%
RESERVED
INSTANCES
SAVES
35%

17. Optimization – Sample Savings Opportunity
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
Savings Opportunity Estimated Adoption Calendar Year 2018
Right Sizing Family Refresh Auto-Park RDS Multi-AZ Dev & Test
Reserved Instances EBS Unattached Volumes Dated Snapshot Idle DB

18. Optimization Process

19. Optimization Savings Overlap - Example

20. ENTERPRISE
APPS
DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousin
g
Hadoop/
Spark
Streaming Data
Collection
Machine
Learning
Elastic
Searc
h
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
Intelligenc
e
Databases
DevOps
Tools
Networking
Securit
y
Storage
Regions
Availability
Zones
Points of
Presence
INFRASTRUCTURE
CORE SERVICES
Compute
VMs, Auto-scaling,
& Load Balancing
Storage
Object, Blocks,
Archival, Import/Export
Databases
Relational,
NoSQL, Caching,
Migration
Networking
VPC, DX, DNS
CDN
Access
Control
Identity
Management
Key
Management
& Storage
Monitoring
& Logs
Assessment
and 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

21. Reserved Instance Pricing Universe
625k
Total RI SKUs
59k
On-Demand
SKUs
20
Sizes
23
Operating
Systems
63
Families
17
Regions

22. Generating Savings Through RIs – A Portfolio Approach

23. RI Optimization: ROI
ROI
• Operational changes can
cause financial impact
• Break-even is typically
8.0 months
• Portfolio mgmt. creates
capex type model
• Partial upfront RIs still
require monthly spend
• Modifications and changes
require operational
knowledge of applications
• How predictable is instance
demand?
• Fixed pricing for term of RI
Cash
Management
Risk
Operational
Management
Predictability

24. After Optimization, Then What?
• Re-architect
• Multi-cloud
• Continued innovation

25. Q&A

26. Thank you
Contact us
2ndwatch.com
888-317-7920
info@2ndwatch.com