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How serverless changes the cost paradigm
The document discusses the concept of serverless computing, emphasizing its benefits like cost savings, reduced management overhead, and scalability. It highlights the importance of total cost of ownership and operational efficiency in business models, particularly regarding serverless architectures. The content also touches on the challenges of accurately attributing costs to specific features in a serverless environment, alongside advice on optimizing both engineering and financial decisions.
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How serverless changes the cost paradigm
- 2. Yan Cui http://theburningmonk.com @theburningmonk Developer Advocate@ Independent Consultant AWS user since 2009 since 2018 yan@lumigo.io
- 3. Uri Parush @uri82042753 System Architect@ uri@lumigo.io
- 4.
- 6. Gojko Adzic It isserverless the same way WiFi is wireless. http://bit.ly/2yQgwwb
- 7. Serverless means… don’t payfor it if no-one uses it don’t need to worry about scaling don’t need to provision and manage servers
- 8. in other words,it’s a lot like taking a cab
- 9. Ownership Fuel Navigate To get there! Focuson getting there!
- 11. API Gateway IOTCore SNS SQS S3
- 12. HW Ownership OS Runtime &Scale Code Focus on business logic! Physical Servers Virtual Machines Containers Serverless
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- 18. scales to zero don’tpay for idle
- 19. Serverless means… don’t payfor it if no-one uses it don’t need to worry about scaling don’t need to provision and manage servers
- 20.
- 21.
- 22.
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- 24.
- 25. idea production choose language +framework master language + framework figure out deployment configure AMI configure ELB configure autoscaling capacity planning over-provision for launch are we doing microservices? configure CI/CD
- 26. idea production choose language +framework master language + framework figure out deployment configure AMI configure ELB configure autoscaling capacity planning over-provision for launch are we doing microservices? configure CI/CD
- 27. idea production greater Velocityfrom idea to product
- 28. youtube.com/watch?v=evsz__BDprs It used totake me longer to configure infrastructure for my application!
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- 34. what used totakes teams of engineers to achieve over months can now be done by individuals over a matter of weeks
- 36. Yan Cui I’m nota great programmer; I just build my app on services that great programmers built.
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- 39. Thinking about serverless costs theright way
- 41. Model Training Low-latency Prediction Servingvia Batching
- 43. yes, some workloadswill be more expensive to run on serverless
- 44. yes, some workloadswill be more expensive to run on serverless from the infrastructure cost perspective
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- 47. what businesses care about whatwe can easily measure
- 48. what businesses care about whatwe can easily measure what most of our budget is spent on
- 49. AWS bill permonth serverless containers $500 $100
- 50. Staffing cost permonth $10000 $0 AWS bill per month serverless containers $500 $100
- 51. Don’t be “penny-wise,pound foolish”
- 52. Always think ofcost in terms of Total Cost of Ownership
- 53.
- 54. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html the newbusiness models around worth based development and the collision of finance and development will literally knock your socks off. Which is why the moniker "FinDev". Beyond the initial investment in coding, I can create an almost variable cost business model and redirect investment to maximise returns in ways that most of you have never experienced. I know, I’ve been there.
- 55. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html and redirectinvestment to maximise returns in ways that most of you have never experienced.
- 56. “what’s the ROIfor a feature X?”
- 58. how much timedoes it take to build? how many engineer does it take to build?
- 59. how much doesit cost to run it?
- 60. $5/hr $5/hr 1 TPS 1000 TPS $0.00138888888per transaction $0.00000138888 per transaction actual cost per transaction depends on usage, which is outside your control
- 61. TPS Cost/Transaction add server addserver add server add server
- 62. $5/hr ? TPS runs multiple services/features howdo you attribute the cost for each feature?
- 63. understanding the operationalcost for individual features are very difficult
- 64. unless you knowexactly how much each transaction would cost you
- 65.
- 66. API Gateway LambdaDynamoDB $0.0000035 $0.0000004083 $0.00000125 cost per transaction: $0.0000051583
- 68.
- 69. more CPU more network moreexpensive
- 70. Donald Knuth We shouldforget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil.
- 71. We should forgetabout small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Yet we should not pass up our opportunities in that critical 3%. Donald Knuth
- 72. input output engineering time loweroperational cost to run the feature
- 73. input output engineering time loweroperational cost to run the feature this is pretty $$$
- 75. cost of theconversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month
- 76. cost of theconversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month break-even time for conversation: $400 ÷ $10/month = 40 months!!!
- 77. Donald Knuth We shouldforget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Yet we should not pass up our opportunities in that critical 3%.
- 78. optimization is asmuch an engineering decision as it is a financial decision
- 79.
- 91. lumigo-cli powertune-lambda -rus-east-1 -n cpu-bound-example -s balanced
- 92. lumigo-cli powertune-lambda -rus-east-1 -n cpu-bound-example -s balanced
- 96. more CPU =shorter execution time
- 97. shorter execution time= cheaper
- 99.
- 100. IO-bound functions don’tsee drastic improvements with more memory
- 105. In 2019, thetourism industry in the UK generated 9% of its GDP and employed 2.6 million jobs
- 107. consumers have less disposibleincome B2C businesses have less revenue
- 108. consumers have less disposibleincome B2C businesses have less revenue B2B businesses have less revenue
- 109. consumers have less disposibleincome B2C businesses have less revenue B2B businesses have less revenue job losses/furloughed
- 110. consumers have less disposibleincome B2C businesses have less revenue B2B businesses have less revenue job losses/furloughed
- 112. Businesses have tobecome more efficient or die
- 113. “get more donewith less”
- 114.
- 115.
- 116. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html the newbusiness models around worth based development and the collision of finance and development will literally knock your socks off. Which is why the moniker "FinDev". Beyond the initial investment in coding, I can create an almost variable cost business model…
- 117. API Gateway LambdaDynamoDB $0.0000035 $0.0000004083 $0.00000125 cost per transaction: $0.0000051583
- 120.
- 121.
- 122. £ subscription fee percentile what thecustomer has cost you
- 123. £ subscription fee percentile 80% profit! loss… what thecustomer has cost you
- 124.
- 125. £ time your premium what youcharge your customer what the customer has cost you
- 127. A pure pay-per-useplay is difficult to pull off
- 128. Not everything inyour stack is pay-per-use
- 129.
- 130. Factor fixed-cost componentsinto your margin
- 131. Mix subscription withpay-per-use
- 132. time your profit what youcharge your customer what the customer has cost you subscription fee £
- 133. £ time your profit what youcharge your customer what the customer has cost you subscription fee competitor’s subscription fee
- 135. Enterprises want predictablepricing
- 136. Offer enterprise pricingoptions
- 139. what businesses care about whatwe can easily measure what most of our budget is spent on
- 140. Always think ofcost in terms of Total Cost of Ownership
- 141.
- 142.
- 143. optimization is asmuch an engineering decision as it is a financial decision
- 144. We should forgetabout small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Yet we should not pass up our opportunities in that critical 3%. Donald Knuth
- 145. £ time your premium what youcharge your customer what the customer has cost you