Tricks, tips and tools that you can use to minimise the costs of running your applications and IT services on AWS.

1. Cost Optimisation on AWS
ianmas@amazon.com
@IanMmmm
Ian Massingham — Technical Evangelist

2. 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

3. 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 data centres built each year
• Volume purchasing, highly automated
supply chain optimisation
Utilisation fundamentally higher in the AWS
Cloud
• Aggregating non-correlated workloads,
scale, spot market
Amazon specific hardware designs
• OEM acquisition of custom servers and
networking equipment
• Direct purchasing of memory, disk & CPU
• AWS controlled hypervisor and network
protocol layers

4. AWS PRICING PHILOSOPHY
More AWS
Usage
More
Infrastructure
More
Customers
Lower
Infrastructure
Costs
Economies of
Scale
Reduced Prices
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
62PRICE
REDUCTIONS
We pass the savings along to our
customers in the form of low
prices and continuous reductions

5. £1.2M annual savings

6. By using Amazon Redshift, FT is
supporting the same business
functions with costs that are 80
percent lower than before.
Headcount has not increased,
and queries run much faster.

7. Reduced costs to operate the
systems supporting UK MoT
Testing by £100M over 10-
years

8. COST OPTIMISATION TIPS & TRICKS

9. 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

10. 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 m4.medium
--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 1
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

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
UTILISATION & AUTO SCALING GRANULARITY

12. 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
UTILISATION & AUTO SCALING GRANULARITY
41 Instance Hours
m4.large @ $0.108/hr
= $4.428/day

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
UTILISATION & AUTO SCALING GRANULARITY
70 Instance Hours
t2.medium @ $0.047/hr
= $3.29/day
~26%SAVING

14. 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
UTILISATION & AUTO SCALING GRANULARITY
70 Instance Hours
t2.small @ $0.023/hr
= $1.61/day
~63%SAVING

15. 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

16. 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

17. RI PRICING | T2.SMALL IN EUROPE (LONDON)

18. 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

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

20. 6. MAKE USE OF APPROPRIATE STORAGE CLASSES
AWS Cloud
Amazon
Glacier
Gateway Appliance/
AWS Storage Gateway
Amazon
S3
Block File
On-premises Data Center
Archive Backup Disaster
Recovery
Amazon
EBS
Amazon S3 Standard - Infrequent Access
• Same durability as S3 Standard
• Up to 45.4% savings
• $0.01 per GB retrieval fee
Amazon Glacier
• Same durability as S3
• 3 to 5 hours restore time
• Up to 81.3% savings
• Great for archiving, long-term backups
and cold or old data

21. 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 S3
• Introduce Caching
No
CDN
ResponseTime
InstanceLoad
ResponseTime
InstanceLoad
CDN for
Static
Content
ResponseTime
Instance
Load
CDN for
Static &
Dynamic
Content

22. 8. USE SERVICES, DON’T REINVENT THE WHEEL
HYBRID
ARCHITECTURE
Data Backups
Integrated App
Deployments
Direct
Connect
Identity
Federation
Integrated Resource
Management
Integrated Networking
VMware Integration
MARKETPLACE
Business Apps DatabasesDevOps Tools NetworkingSecurity StorageBusiness Intelligence
INFRASTRUCTURE
Availability
Zones
Points of
Presence
Regions
CORE SERVICES
Compute
VMs, Auto-scaling, Load Balancing, Containers, Cloud
functions
Storage
Object, Blocks, File, Archivals, Import/
Export
Databases
Relational, NoSQL, Caching,
Migration
CDN Networking
VPC, DX, DNS
Access ControlIdentity Management Key Management & Storage
Monitoring
& Logs
SECURITY & COMPLIANCE
Resource & Usage AuditingConfiguration Compliance Web application firewall Assessment and reporting
TECHNICAL & BUSINESS SUPPORT
Support Professional Services Account ManagementPartner Ecosystem Solutions ArchitectsTraining & Certification
Security & Billing
Reports
Optimization Guidance
ENTERPRISE APPS
Backup
Corporate Email
Sharing &
Collaboration
Virtual Desktops
IoT
Rules Engine
Registry
Device Shadows
Device Gateway
Device SDKs
DEVOPSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousing
Hadoop/Spark
Streaming Data
Collection
Machine Learning
Elastic Search
Push
Notifications
Identity
Sync
Resource Templates
One-click App Deployment
Triggers
Containers
DevOps Resource
Management
Application Lifecycle
Management
API Gateway
Transcoding
Queuing &
Notifications
Email
Workflow
Search
Streaming Data
Analysis
Business Intelligence
Mobile
Analytics
Single Integrated Console
Mobile App Testing
Data Pipelines
Petabyte-Scale Data
Migration
Database Migration
Schema Conversion
Application Migration
MIGRATION

23. 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)

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

25. 10. TAKE ADVANTAGE OF AWS TOOLS
AWS Trusted Advisor AWS EC2 Usage ReportsAWS Cost Explorer

26. Follow
us for m
ore
events &
w
ebinars
@AWScloud for Global AWS News & Announcements
@AWS_UKI for local AWS events & news
@IanMmmm
Ian Massingham — Technical Evangelist