The document provides tips for optimizing costs on AWS by replacing upfront capital expenses with lower variable costs, effectively utilizing auto-scaling, and leveraging various pricing models such as reserved and spot instances. Key strategies include selecting appropriate instance types, turning off unused instances, offloading architecture components, and using consolidated billing for better financial management. Additionally, it emphasizes the benefits of AWS's economies of scale, which lead to continuous price reductions and enhanced service offerings.

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

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 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

5. 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
51PRICE
REDUCTIONS
We pass the savings along to our
customers in the form of low
prices and continuous reductions

6. Flipboard Example: Handling objection AWS gets expensive as you grow big…

7. COST OPTIMISATION TIPS & TRICKS

8. 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

9. 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 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

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
UTILISATION & AUTO SCALING GRANULARITY

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
41 Instance Hours
m3.large @ $0.154/hr
= $6.314/day

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
70 Instance Hours
t2.small @ $0.028/hr
= $1.96/day
69%SAVING

13. 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

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
4. USE RESERVED INSTANCES
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance

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 WORKLOADSC
ase
Study
Building a Top500 HPC Cluster on AWS
0
18
35
53
70
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
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 Reduced Redundancy
• 99.99% durability vs. 99.999999999%
• Up to 20% savings
• Great for everything that is easy to
reproduce
Amazon Glacier
• Same durability as S3
• 3 to 5 hours restore time
• Up to 67% savings
• Great for archiving, long-term
backups and cold or old 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 S3
• Introduce Caching
No
CDN
ResponseTime
InstanceLoad
ResponseTime
Instance
Load
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/
Spark
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 AWS EC2 Usage Reports

24. 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