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© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Spencer Marley, APAC BD
November 2018
AWS
Cost Optimization
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Who are you?
Maths Geek Data & Analytics
Finance & Accounting Developer
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Right-sizing
Right-sizing
• Selecting the cheapest
instance while meeting
performance needs
• Look at CPU, RAM,
storage, and network
utilization to identify
instances that could be
right-sized
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Right-sizing
m4.4xlarge
$1.72
per hour
m4.large
$0.215
per hour
2. Check (CPU,
RAM, network, disc)
1.
Migrate/Provision
and Run
3. Right-size
87%
Saving
5. Save!4. Review Performance
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Right-sizing
• AWS Trusted Advisor (Business/Enterprise Support) and AWS CloudWatch
• AWS EC2 Right-sizing Solution
• Netflix Janitor Monkey
• 3rd party paid tools (including but not limited to):
• Densify
• STAX
• CloudHealth
• Cloudability
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Elasticity
Elasticity
• Scale up and down to meet
capacity requirements
based upon CPU, RAM,
network etc.
• Automatically turn non-
production off outside of
working hours
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Elasticity
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Elasticity
• AWS Auto Scaling and EC2 Fleet
• AWS CloudWatch
• AWS Instance Scheduler
• 3rd party paid tools (including but not limited to):
• GorillaStack
• Skeddly
• ParkMyCloud
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Pricing Models
Pricing Models
• On Demand, Spot and
Reserved Instances
• RIs are like bulk discount
coupon booklets – one
coupon every hour, which
expires and does not
accrue
• RIs are a financial construct
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Pricing Models
Less discount Greater discount
Payment option No upfront Partial upfront All upfront
Duration 1 year 3 year
Operating system Others e.g.
Windows
Linux/UNIX
Instance type Previous
generation
Current
generation
Class Convertible Standard
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Pricing Models
• AWS Cost Explorer
• RI Recommendations
• RI Coverage/Utilization
• AWS Budgets for RI Coverage/Utilization SNS/SES notifications
• 3rd party paid tools (including but not limited to):
• CloudHealth
• Cloudability
• CloudCheckr
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Storage Classes
Hot
Amazon S3
Warm
Infrequent Access
Cold
Amazon Glacier
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Storage Classes
Provisioned IOPS
SSD (io1)
General Purpose
SSD (gp2)
Throughput
Optimized HDD
(st1)
Cold HDD (sc1)
$0.125/GB-month $0.10/GB-month
(20% cheaper)
$0.045/GB-month
(64% cheaper)
$0.025/GB-month
(80% cheaper)
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Storage Classes
• Amazon S3 Analytics
• AWS Trusted Advisor
• 3rd party paid tools (including but not limited to):
• CloudHealth
• Cloudability
• CloudCheckr
• STAX
• Cloud Conformity
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture and Mechanisms
• As well as technical and
financial constructs, it is
important to have a culture
and mechanisms to support
Cost Optimization
• Tagging resources and
defining cost metrics (e.g.
unit cost) are key to driving
responsibility and efficient
behavior
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture and Mechanisms
Analyze spend by
BU, account,
service, etc.
What has changed
and why?
Instance utilization
metrics.
Are the instances of
the right size and
well utilized?
Peak vs. off-peak
cost and usage.
Are instances
turned off when they
are not needed?
RI coverage and
utilization, Spot
usage.
Are RIs and Spot
being used?
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Culture and Mechanisms
• AWS Cost Explorer
• AWS Budgets
• AWS Cost and Usage Reports
• AWS Config and Lambda
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Designing for Cost
Spot instances can be used for:
• Production & non-production
workloads
• Queue and batch-based
processing
• Hadoop/Spark/Big Data workloads
• Stateless applications (e.g. web
tiers)
• CI/CD pipelines
• Containerized workloads
• Video transcoding
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Designing for Cost
Consolidated Billing Serverless Unused Elastic IPs
Amazon CloudFront Containerization Open Source
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Designing for Cost
• AWS Organizations
• Spot Bid Advisor
• AWS Step Functions
• 3rd party paid tools (including but not limited to)
• SpotInst
• BidElastic
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The 3 Key Takeaways
Cost Explorer Training on YouTube and
A Cloud Guru
Reserve, Review, Rinse,
Repeat.
© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Thank you!
spmarley@amazon.com
https://www.linkedin.com/in/spencermarley/

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Cost Optimization in AWS

  • 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Spencer Marley, APAC BD November 2018 AWS Cost Optimization
  • 2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Who are you? Maths Geek Data & Analytics Finance & Accounting Developer
  • 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing Right-sizing • Selecting the cheapest instance while meeting performance needs • Look at CPU, RAM, storage, and network utilization to identify instances that could be right-sized
  • 6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing m4.4xlarge $1.72 per hour m4.large $0.215 per hour 2. Check (CPU, RAM, network, disc) 1. Migrate/Provision and Run 3. Right-size 87% Saving 5. Save!4. Review Performance
  • 7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Right-sizing • AWS Trusted Advisor (Business/Enterprise Support) and AWS CloudWatch • AWS EC2 Right-sizing Solution • Netflix Janitor Monkey • 3rd party paid tools (including but not limited to): • Densify • STAX • CloudHealth • Cloudability
  • 8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity Elasticity • Scale up and down to meet capacity requirements based upon CPU, RAM, network etc. • Automatically turn non- production off outside of working hours
  • 10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity
  • 11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity • AWS Auto Scaling and EC2 Fleet • AWS CloudWatch • AWS Instance Scheduler • 3rd party paid tools (including but not limited to): • GorillaStack • Skeddly • ParkMyCloud
  • 12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models Pricing Models • On Demand, Spot and Reserved Instances • RIs are like bulk discount coupon booklets – one coupon every hour, which expires and does not accrue • RIs are a financial construct
  • 14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models Less discount Greater discount Payment option No upfront Partial upfront All upfront Duration 1 year 3 year Operating system Others e.g. Windows Linux/UNIX Instance type Previous generation Current generation Class Convertible Standard
  • 15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Models • AWS Cost Explorer • RI Recommendations • RI Coverage/Utilization • AWS Budgets for RI Coverage/Utilization SNS/SES notifications • 3rd party paid tools (including but not limited to): • CloudHealth • Cloudability • CloudCheckr
  • 16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes Hot Amazon S3 Warm Infrequent Access Cold Amazon Glacier
  • 18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes Provisioned IOPS SSD (io1) General Purpose SSD (gp2) Throughput Optimized HDD (st1) Cold HDD (sc1) $0.125/GB-month $0.10/GB-month (20% cheaper) $0.045/GB-month (64% cheaper) $0.025/GB-month (80% cheaper)
  • 19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Storage Classes • Amazon S3 Analytics • AWS Trusted Advisor • 3rd party paid tools (including but not limited to): • CloudHealth • Cloudability • CloudCheckr • STAX • Cloud Conformity
  • 20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms • As well as technical and financial constructs, it is important to have a culture and mechanisms to support Cost Optimization • Tagging resources and defining cost metrics (e.g. unit cost) are key to driving responsibility and efficient behavior
  • 22. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms Analyze spend by BU, account, service, etc. What has changed and why? Instance utilization metrics. Are the instances of the right size and well utilized? Peak vs. off-peak cost and usage. Are instances turned off when they are not needed? RI coverage and utilization, Spot usage. Are RIs and Spot being used?
  • 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Culture and Mechanisms • AWS Cost Explorer • AWS Budgets • AWS Cost and Usage Reports • AWS Config and Lambda
  • 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost Spot instances can be used for: • Production & non-production workloads • Queue and batch-based processing • Hadoop/Spark/Big Data workloads • Stateless applications (e.g. web tiers) • CI/CD pipelines • Containerized workloads • Video transcoding
  • 26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost Consolidated Billing Serverless Unused Elastic IPs Amazon CloudFront Containerization Open Source
  • 27. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Designing for Cost • AWS Organizations • Spot Bid Advisor • AWS Step Functions • 3rd party paid tools (including but not limited to) • SpotInst • BidElastic
  • 28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do we help customers optimize their costs? Right-sizing Elasticity Pricing Models Storage Classes Culture and Mechanisms Designing for Cost
  • 29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The 3 Key Takeaways Cost Explorer Training on YouTube and A Cloud Guru Reserve, Review, Rinse, Repeat.
  • 30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Thank you! spmarley@amazon.com https://www.linkedin.com/in/spencermarley/