Finding and eliminating unnecessary EC2 usage can drastically reduce your AWS costs. But it's not always clear where to start looking. Join us for this free webinar and learn how to identify opportunities for cutting costs and how to unlock those savings in a step-by-step process. Topics will include: - Where to look for likely waste in your infrastructure - Identifying and downsizing underutilized instances - Reducing needless on-demand spending using Reserved Instances

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2. @cloudability
Finding Hidden Waste In
Your AWS Infrastructure
February 10, 2016

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Introduction
Today’s Topics
Aaron Kaffen
Director of Marketing
TODAY’S SPEAKER
1. Finding waste
2. Reducing wasted usage
3. Reducing hourly cost
4. Q&A

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Cloud Infrastructure Analytics
About Us
$2B+
in tracked AWS costs

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Our Solution
How It Works
1 2 3
4 5
Spend
Monitoring
Spending visibility via custom
dashboards, budget alerts,
and daily email digests.
Cost
Allocation
Segment your cloud
costs with detailed
reports by tag, service,
usage type, etc..
Usage
Optimization
Spot under-utilized
resources w/ instance
level usage metrics.
RI Portfolio
Optimization
Get recommendations to
buy, modify and sell the
right RIs. Then see their
impact on your spending.
Company-Wide
Governance
Organizational group
views/filtering/rollups,
multi-user access.

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Stage I: Cost visibility for all (emails, alerts, dashboards)
Stage II: Allocating costs to departments (tags, linked accounts)
Stage III: Using only what you need (underutilized, unneeded)
Stage IV: Lowering Cost Per Hour (i.e. Reserved Instances)
Stage V: Tying spending to the bottom line (unit cost)
The Five Stages of Cloud Efficiency
Cloudability

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Stage I: Cost visibility for all (emails, alerts, dashboards)
Stage II: Allocating costs to departments (tags, linked accounts)
Stage III: Using only what you need (underutilized, unneeded)
Stage IV: Lowering Cost Per Hour (new families, Reserved Instances)
Stage V: Tying spending to the bottom line (unit cost)
The Five Stages of Cloud Efficiency
Cloudability

8. 0
45
90
135
180
Dev/Test
POC
App#1
App#3
App#2
Exec team starts
really caring
Loadtest
A story of growth

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Finding waste
You’ve got a sense that you could be spending less …
and you’re probably right.
๏ Not using what you’re paying for
๏ Buying instances that are too large
๏ Not turning off things at night
๏ Paying more than you should
The problem you’re solving

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The pieces
Finding waste
๏ Multiple major business units
๏ Lots of products or cost centers
๏ Dedicated and shared AWS
resources
๏ Distributed teams using AWS

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where should I start
looking?

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Spending
Look at Totals First

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Compare time periods

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See what LOBs, Services, Resources drive changes

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Soending
15
Find which services are impacting your bill

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Soending
16
Find which services are impacting your bill

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Soending
17
Dig deeper into the AWS service

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what’s driving my costs?

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cost = usage x rate

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cost = usage x rate

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Reducing Usage
Underutilized EC2 Instances

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Reducing Usage
Key metrics to look at:
๏ CPU utilization
๏ Bandwidth
๏ Disk I/O
๏ Days running
๏ Estimated Cost
๏ Current state
๏ Utilization hours
Finding underutilized EC2 instances

24. Low cpu, low bandwidth, low disk i/o, >1 day old
This example: Save $1,682 per week

25. Low cpu, low bandwidth, low disk i/o, >1 day old
This example: Save $1,682 per week

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Reducing Usage
Underutilized EC2 Hours

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168hours in a week

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108nights & weekends

29. Don’t run the cloud like a datacenter:
65% of the hours in a month are nights and
weekends

31. Testing account cost $2500 for each hour of June
Turn off 50% of Testing Instances for 4 hours per day
This example: Save $5,000 per month

32. Testing account cost $2500 for each hour of June
Turn off 50% of Testing Instances for 4 hours per day
This example: Save $5,000 per month

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How to turn off non-prod on nights/weekends
1. Confirm idle instance times
2. Assign instance schedules with tags
3. Run a crontab scheduler like“Valet”
- For more Google“Cloudability Valet”
Fine print: IP addresses change, need to re-tag items

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cost = usage x rate

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Reducing Rate
Reserved Instances

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Reservations represent sunk cost.
Modifications let you move those reservations to
maximize savings as your infrastructure changes

38. Modifying Reserved Instances
• Instances with Linux OS
Instance size (within family)
Availability Zone (within region)
Network (VPC or Classic)
• Instances with a licensed OS or without a family
Availability Zone (within region)
Network (VPC or Classic)
• Reservations cannot be moved between accounts

39. We Are Family
M1* M2* M3 M4 C1* C3 C4 R3 I2 T2 D2 G2
small
medium
large
xlarge
xlarge
2xlarge
4xlarge
medium
large
xlarge
2xlarge
2xlarge
4xlarge
10xlarge
medium
xlarge
large
xlarge
2xlarge
4xlarge
8xlarge
large
xlarge
2xlarge
4xlarge
8xlarge
large
xlarge
2xlarge
4xlarge
8xlarge
xlarge
2xlarge
4xlarge
8xlarge
micro
small
medium
large
xlarge
2xlarge
4xlarge
8xlarge
2xlarge
8xlarge
* LEGACY FAMILY

40. Modifying Instance Type
Instance Size Normalization Factor
micro 0.5
small 1
medium 2
large 4
xlarge 8
2xlarge 16
4xlarge 32
8xlarge 64

41. 2xlarge
Modifying Instance Type
=16PTS

42. 2xlarge
xlarge xlarge
Modifying Instance Type
168 8+ =

43. 2xlarge
xlarge xlarge
large large large large
Modifying Instance Type

44. medium medium medium medium medium medium medium medium
2xlarge
xlarge xlarge
large large large large
Modifying Instance Type

45. small small small small small small small small small small small small small small small small
medium medium medium medium medium medium medium medium
2xlarge
xlarge xlarge
large large large large
Modifying Instance Type

46. small small small small small small small small small small small small small small small small
medium medium medium medium medium medium medium medium
2xlarge
xlarge xlarge
large large large large
Modifying Instance Type

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RI Modifications - Save $100k+

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RI Purchases
m3-* in us-east-* - safe buy, highly modifiable - Save ~$193k

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RI Purchases
m3-* in us-east-* - safe buy, highly modifiable - Save ~$193k

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RI Purchases
i2.8xlarge - Single buy, big savings

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RI Process
1. RI Modifications
2. Small uncontroversial purchases (e.g., m2.4xlarge and m3.*)
3. Resize to newer instance families
4. Monthly purchase of new reservations

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Reducing Rate
Instance Families

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Reducing Rate
Migrating m1 to m3
๏ Newer instance families are cheaper & faster
(but don’t have hard drives)
๏ Look for instances that have EBS devices attached
๏ Move M1 to M3 to save $0.03-$0.10 (~15%) an hour

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Instance Type Migration Paths
Legacy Instance Type Modern Instance Type
T1
T2
M1
M1
M3
M4
C1
C3
C4
H1
I2
D2
M2
R3
CR1

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Cost Savings
Move from M1 to M3 — Save $25k to $35k/mo

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Old Instance Families
Migration Strategy
•Proactively plan instance type migrations
Finance and Ops have to talk on this one to understand when
upgrades should happen and what impact it has on reservations
•Tactically renew reservations on legacy instances
If you’re going to run a legacy instance for a while you might as well
cover it with an RI, but only renew what you have to
High frequency reservation purchases make this transition easier

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cost = usage x rate

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Going Further
- Turn off instances that are not being used
- Autoscale resources down when load decreases
-Turn off dev/test/stage resources at night
- Rightsize the instance size/type to the load
- Migrate from old instance families to new ones (e.g., m1 to m3)
- Consider moving older S3 resources to Glacier
- Employ a‘stopinator’or Janitor Monkey
- Use Spot Instances for asynchronous workloads
- To learn more…
Many ways to increase efficiency…

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