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Maintaining Performance & 
Availability While Lowering Costs 
with AWS 
Nam Je Cho
What You’ll Get Out of This Session 
• A lower AWS bill 
• Maintain high performance while minimising v 
cost 
• A more scalable, robust, dynamic architecture 
• More time to innovate 
• Real-world customer examples 
• Easy to implement
Cloud Computing Benefits 
v 
• Pay as you go, no up-front investments 
• Low ongoing cost 
• Flexible capacity 
• Speed, agility, and innovation 
• Focus on your business 
• Go global in minutes
Cloud Computing Benefits 
v 
• Pay as you go, no up-front investments 
• Low ongoing cost 
• Flexible capacity 
• Speed, agility, and innovation 
• Focus on your business 
• Go global in minutes
Strategy 1: Do Nothing
AWS Pricing Philosophy 
v 
Ecosystem 
Global Footprint 
New Features 
New Services 
More AWS 
Usage 
More 
Infrastructure 
Lower 
Infrastructure 
Costs 
Reduced 
Prices 
More 
Infrastructure Customers 
Innovation 
45 price reductions 
since 2006 
Economies 
of Scale
Strategy 2: Do Almost Nothing
v 
AWS Trusted Advisor 
https://aws.amazon.com/premiumsupport/trustedadvisor/ 
Free with Business or Enterprise Support
Strategy 3: Optimise Architecture
v 
The Basic Process
Architecting for Low Cost 
… in seven easy steps!
1. Turn Off Unused Instances 
v
1. Turn Off Unused Instances 
• Developer, test, training instances on evenings/weekends 
• Use simple instance start and stop 
v 
• Tear down and build up all together 
• Instances are disposable 
• Automate, automate, automate!!! 
• AWS CloudFormation 
• Weekend/off-hours scripts 
• Use resource tags
Customer Dev/Test Example 
v 
Monday Friday End of Vacation Season 
35% saved
v 
2. Use Auto Scaling
v 
Auto Scaling
AWS CloudFormation: Launch Configuration 
v 
"LaunchConfig": { 
"Type" : "AWS::AutoScaling::LaunchConfiguration", 
"Metadata" : { 
"AWS::CloudFormation::Init" : { 
"config" : { 
… packages, sources, files, services … 
} 
} 
}, 
"Properties": { 
"ImageId" : "ami-149f7863", 
"InstanceType" : "m1.small", 
"SecurityGroups" : [ {"Ref" : "WebServerSecurityGroup"} ], 
"KeyName" : "MySSHKey", 
"UserData" : { "Fn::Base64" : { "Fn::Join" : ["", [ 
"#!/bin/bash -vn", 
… your user data script … 
]]}} 
} 
}
AWS CloudFormation: Auto Scaling Group 
v 
"WebServerGroup" : { 
"Type" : "AWS::AutoScaling::AutoScalingGroup", 
"Properties" : { 
"AvailabilityZones" : [ 
"us-east-1a", 
"us-east-1b", 
"us-east-1c", 
], 
"LaunchConfigurationName" : { "Ref" : "LaunchConfig" }, 
"MinSize" : “3", 
"MaxSize" : “6", 
"DesiredCapacity" : “3", 
"LoadBalancerNames" : [ { "Ref" : "ElasticLoadBalancer" } ] 
} 
}
Align Your Resources With Demand 
v 
http://aws.amazon.com/autoscaling/
3. Use Reserved Instances 
v
v 
Calculate RI Savings 
3y RI 
Break even 
1y RI 
Break even 
http://calculator.s3.amazonaws.com/index.html
Reserved Instances Are Flexible 
• Can be moved between AZs 
• Can be moved between EC2-Classic and EC2-v 
VPC platforms 
• Size can be modified within the same instance family 
http://aws.amazon.com/ec2/purchasing-options/reserved-instances/
v 
4. Use Spot Instances
v 
Spot Instance Rules 
• Price based on supply/demand 
• You choose your maximum price/hour 
• Your instance is started if the Spot price is lower 
• Your instance is terminated if the Spot price is higher 
• But, you did plan for fault tolerance, didn’t you? 
• We provide guide on architecting applications to use Spot Instances
v 
Spot Instance Example 
$0.028 (11.7%) $0.026 (10.8%) 
$3.28 
(1367%) 
On-Demand: 
$0.24
Spot Instance Use Cases 
• Analytics 
• Batch Processing 
v 
• Big Data - Amazon Elastic MapReduce 
• Web crawlers 
• Testing 
• Image & media encoding 
• High Performance Computing 
• Financial modeling and analysis – Monte Carlo analysis
v 
Spot Instances Recap 
• Very dynamic pricing 
• Opportunity to save 80-90% cost 
• But there are risks & you need to design around it! 
• Different prices per AZ 
• Leverage Auto Scaling! 
• One group with Spot Instances 
• One group with On-Demand 
• Get the best of both worlds
Spot Instances: Customer Case Study 
Cycle Computing 
“HGST buys 70,000-core cloud HPC Cluster, breaks record, returns it 8 hours later” 
v
5. Use Amazon S3 Storage Classes 
v 
• Reduced redundancy storage class 
• 99.99% durability vs. 99.999999999% 
• Up to 20% savings 
• Everything that is easy to reproduce 
• Use Amazon SNS lost object notifications 
• Amazon Glacier storage class 
• Same 99.999999999% durability 
• 3 to 5 hours restore time 
• Up to 64% savings 
• Archiving, long-term backups, and old data 
• Use S3 Lifecycle rules 
• Archive objects to Glacier after x days 
• Delete objects after y days
6. Optimize Amazon DynamoDB capacity units 
• Read/write capacity units (CUs) determine most of DynamoDB cost 
• By optimizing CUs, you can save a lot of money 
v 
• But: 
• Need to provision enough capacity to not run into capacity errors 
• Need to prepare for peaks 
• Need to constantly monitor/adjust
DynamoDB Optimisation 
v 
• Use caching to save read capacity units 
• Local RAM caches at app server instances 
• Check out Amazon ElastiCache 
• Think of strategies for optimizing CU use 
• Use multiple tables to support varied access patterns 
• Understand access patterns for time series data 
• Compress large attribute values 
• Use Amazon SQS to buffer over-capacity writes
Amazon SQS Can Buffer Requests 
v
v 
Dynamic DynamoDB
DynamoDB Optimisation Example 
v 
Caching/Optimization: 
80% saved 
Dynamic 
DynamoDB: 
20% saved 
Cache 
flush 
Growth + 
new features
7. Offload Your Architecture 
• More you can offload, the less infrastructure you need to maintain, scale, 
and pay for 
v 
• Three easy ways to offload: 
• Use CDN - Amazon CloudFront 
• Introduce Caching – Amazon ElastiCache 
• Leverage existing Amazon Web Services
Offload Popular to Amazon S3 & CloudFront 
v
Offload Databases Through Caching 
v
Leverage Existing Services 
• Amazon RDS, Amazon DynamoDB or Amazon ElastiCache for Redis, Amazon Redshift 
v 
• Instead of running your own database 
• Amazon CloudSearch 
• Instead of running your own search engine 
• Amazon Elastic Transcoder 
• Amazon Elastic MapReduce 
• Amazon Cognito, Amazon SQS, Amazon SNS, Amazon Simple Workflow Service, Amazon 
SES, Amazon Kinesis, and more … 
Simple, more reliable, lower cost
Cost Monitoring & Analysis
Introducing Amazon EC2 
v 
https://awstcocalculator.com/
AWS Simple Monthly Calculator 
v 
http://calculator.s3.amazonaws.com/index.html
v 
AWS Billing Console
v 
AWS Cost Explorer
v 
AWS Billing Alerts
Let’s Recap 
1. Turn off unused instances 
2. Use Auto Scaling 
v 
3. Use Reserved Instances 
4. Use Spot Instances 
5. Leverage Amazon S3 storage classes 
6. Optimize Amazon DynamoDB capacity units 
7. Offload your architecture
And Remember to Iterate! 
Architect 
v 
Monitor Build
v
AWS Training & Certification 
AWS offers Training and Certification to help you develop your skills and gain recognition for your technical experience 
with AWS services and solutions. 
v 
Online Training 
Gain confidence and hands-on 
experience with AWS. Watch free 
Instructional Videos and explore Self- 
Paced Labs 
Instructor Led Classes 
Learn how to design, deploy and operate 
highly available, cost-effective and secure 
applications on AWS in courses led by 
qualified AWS instructors 
AWS Certification 
Validate your technical expertise with 
AWS and use practice exams to help you 
prepare for AWS Certification 
http://aws.amazon.com/training
v 
Thank You

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Day 3 - Maintaining Performance & Availability While Lowering Costs with AWS

  • 1. Maintaining Performance & Availability While Lowering Costs with AWS Nam Je Cho
  • 2. What You’ll Get Out of This Session • A lower AWS bill • Maintain high performance while minimising v cost • A more scalable, robust, dynamic architecture • More time to innovate • Real-world customer examples • Easy to implement
  • 3. Cloud Computing Benefits v • Pay as you go, no up-front investments • Low ongoing cost • Flexible capacity • Speed, agility, and innovation • Focus on your business • Go global in minutes
  • 4. Cloud Computing Benefits v • Pay as you go, no up-front investments • Low ongoing cost • Flexible capacity • Speed, agility, and innovation • Focus on your business • Go global in minutes
  • 5. Strategy 1: Do Nothing
  • 6. AWS Pricing Philosophy v Ecosystem Global Footprint New Features New Services More AWS Usage More Infrastructure Lower Infrastructure Costs Reduced Prices More Infrastructure Customers Innovation 45 price reductions since 2006 Economies of Scale
  • 7. Strategy 2: Do Almost Nothing
  • 8. v AWS Trusted Advisor https://aws.amazon.com/premiumsupport/trustedadvisor/ Free with Business or Enterprise Support
  • 9. Strategy 3: Optimise Architecture
  • 10. v The Basic Process
  • 11. Architecting for Low Cost … in seven easy steps!
  • 12. 1. Turn Off Unused Instances v
  • 13. 1. Turn Off Unused Instances • Developer, test, training instances on evenings/weekends • Use simple instance start and stop v • Tear down and build up all together • Instances are disposable • Automate, automate, automate!!! • AWS CloudFormation • Weekend/off-hours scripts • Use resource tags
  • 14. Customer Dev/Test Example v Monday Friday End of Vacation Season 35% saved
  • 15. v 2. Use Auto Scaling
  • 17. AWS CloudFormation: Launch Configuration v "LaunchConfig": { "Type" : "AWS::AutoScaling::LaunchConfiguration", "Metadata" : { "AWS::CloudFormation::Init" : { "config" : { … packages, sources, files, services … } } }, "Properties": { "ImageId" : "ami-149f7863", "InstanceType" : "m1.small", "SecurityGroups" : [ {"Ref" : "WebServerSecurityGroup"} ], "KeyName" : "MySSHKey", "UserData" : { "Fn::Base64" : { "Fn::Join" : ["", [ "#!/bin/bash -vn", … your user data script … ]]}} } }
  • 18. AWS CloudFormation: Auto Scaling Group v "WebServerGroup" : { "Type" : "AWS::AutoScaling::AutoScalingGroup", "Properties" : { "AvailabilityZones" : [ "us-east-1a", "us-east-1b", "us-east-1c", ], "LaunchConfigurationName" : { "Ref" : "LaunchConfig" }, "MinSize" : “3", "MaxSize" : “6", "DesiredCapacity" : “3", "LoadBalancerNames" : [ { "Ref" : "ElasticLoadBalancer" } ] } }
  • 19. Align Your Resources With Demand v http://aws.amazon.com/autoscaling/
  • 20. 3. Use Reserved Instances v
  • 21. v Calculate RI Savings 3y RI Break even 1y RI Break even http://calculator.s3.amazonaws.com/index.html
  • 22. Reserved Instances Are Flexible • Can be moved between AZs • Can be moved between EC2-Classic and EC2-v VPC platforms • Size can be modified within the same instance family http://aws.amazon.com/ec2/purchasing-options/reserved-instances/
  • 23. v 4. Use Spot Instances
  • 24. v Spot Instance Rules • Price based on supply/demand • You choose your maximum price/hour • Your instance is started if the Spot price is lower • Your instance is terminated if the Spot price is higher • But, you did plan for fault tolerance, didn’t you? • We provide guide on architecting applications to use Spot Instances
  • 25. v Spot Instance Example $0.028 (11.7%) $0.026 (10.8%) $3.28 (1367%) On-Demand: $0.24
  • 26. Spot Instance Use Cases • Analytics • Batch Processing v • Big Data - Amazon Elastic MapReduce • Web crawlers • Testing • Image & media encoding • High Performance Computing • Financial modeling and analysis – Monte Carlo analysis
  • 27. v Spot Instances Recap • Very dynamic pricing • Opportunity to save 80-90% cost • But there are risks & you need to design around it! • Different prices per AZ • Leverage Auto Scaling! • One group with Spot Instances • One group with On-Demand • Get the best of both worlds
  • 28. Spot Instances: Customer Case Study Cycle Computing “HGST buys 70,000-core cloud HPC Cluster, breaks record, returns it 8 hours later” v
  • 29. 5. Use Amazon S3 Storage Classes v • Reduced redundancy storage class • 99.99% durability vs. 99.999999999% • Up to 20% savings • Everything that is easy to reproduce • Use Amazon SNS lost object notifications • Amazon Glacier storage class • Same 99.999999999% durability • 3 to 5 hours restore time • Up to 64% savings • Archiving, long-term backups, and old data • Use S3 Lifecycle rules • Archive objects to Glacier after x days • Delete objects after y days
  • 30. 6. Optimize Amazon DynamoDB capacity units • Read/write capacity units (CUs) determine most of DynamoDB cost • By optimizing CUs, you can save a lot of money v • But: • Need to provision enough capacity to not run into capacity errors • Need to prepare for peaks • Need to constantly monitor/adjust
  • 31. DynamoDB Optimisation v • Use caching to save read capacity units • Local RAM caches at app server instances • Check out Amazon ElastiCache • Think of strategies for optimizing CU use • Use multiple tables to support varied access patterns • Understand access patterns for time series data • Compress large attribute values • Use Amazon SQS to buffer over-capacity writes
  • 32. Amazon SQS Can Buffer Requests v
  • 34. DynamoDB Optimisation Example v Caching/Optimization: 80% saved Dynamic DynamoDB: 20% saved Cache flush Growth + new features
  • 35. 7. Offload Your Architecture • More you can offload, the less infrastructure you need to maintain, scale, and pay for v • Three easy ways to offload: • Use CDN - Amazon CloudFront • Introduce Caching – Amazon ElastiCache • Leverage existing Amazon Web Services
  • 36. Offload Popular to Amazon S3 & CloudFront v
  • 38. Leverage Existing Services • Amazon RDS, Amazon DynamoDB or Amazon ElastiCache for Redis, Amazon Redshift v • Instead of running your own database • Amazon CloudSearch • Instead of running your own search engine • Amazon Elastic Transcoder • Amazon Elastic MapReduce • Amazon Cognito, Amazon SQS, Amazon SNS, Amazon Simple Workflow Service, Amazon SES, Amazon Kinesis, and more … Simple, more reliable, lower cost
  • 39. Cost Monitoring & Analysis
  • 40. Introducing Amazon EC2 v https://awstcocalculator.com/
  • 41. AWS Simple Monthly Calculator v http://calculator.s3.amazonaws.com/index.html
  • 42. v AWS Billing Console
  • 43. v AWS Cost Explorer
  • 44. v AWS Billing Alerts
  • 45. Let’s Recap 1. Turn off unused instances 2. Use Auto Scaling v 3. Use Reserved Instances 4. Use Spot Instances 5. Leverage Amazon S3 storage classes 6. Optimize Amazon DynamoDB capacity units 7. Offload your architecture
  • 46. And Remember to Iterate! Architect v Monitor Build
  • 47. v
  • 48. AWS Training & Certification AWS offers Training and Certification to help you develop your skills and gain recognition for your technical experience with AWS services and solutions. v Online Training Gain confidence and hands-on experience with AWS. Watch free Instructional Videos and explore Self- Paced Labs Instructor Led Classes Learn how to design, deploy and operate highly available, cost-effective and secure applications on AWS in courses led by qualified AWS instructors AWS Certification Validate your technical expertise with AWS and use practice exams to help you prepare for AWS Certification http://aws.amazon.com/training

Editor's Notes

  1. Hello everyone, welcome to another webinar in the AWS APAC Webinar Week. My name is Nam Je Cho and I’m a Solutions Architect with AWS. I also have my colleague, Connor McNamara joining us for the session as a panelist and he’ll be answering any questions you’ll have throughout today’s webinar. If you have any questions, please post in the chat window anytime. In this session, I’ll be taking you through the topic of “Maintaining Performance & Availability While Lowering Costs with AWS”
  2. So, what will you get out of this session? Well, I am going to tell you how you can lower your AWS Bill while maintaining high performing and fault tolerant applications on the AWS Cloud. We are going to learn how to deploy highly scalable, robust and dynamic architectures in the cloud and how you can optimise your cost of running in the cloud. This will release you from the traditional approach of application deployment and allow you to spend more time on things that matter to your business by giving you more time to innovate, not be bogged down in things that don’t add value, like maintaining hardware. I’ll be showing you real life examples and case studies where hundreds of thousands of customers are around the world are already taking advantage of AWS cloud to add value to their business.
  3. For the benefit of the audience who are at the start of their cloud journey, let start by telling you about some the key benefits of cloud computing. Amazon Web Services provides highly scalable computing infrastructure that enables organizations around the world to requisition compute, storage, and other on-demand services in the cloud. Customers access the services when they need them and pay for only what they use.  One of the primary benefits of the AWS cloud is that it enables companies of all sizes to focus on the differentiating factors of their business as opposed to the infrastructure required to run it.     One way to think about cloud computing is that instead of buying, owning, and maintaining your own datacenters or servers, businesses and developers can acquire technology resources such as compute, storage and databases on an as-needed basis. AWS manages and maintains the technology infrastructure in a secure environment and users interact with resources via the web services and APIs. Capacity can grow or shrink instantly.    And to summarize, AWS believes cloud computing offers the following core characteristics: No upfront capital expenditure Pay as you go services True elastic capacity; scale up and down Allows you to move very quickly and provision servers in minutes Allows you to focus and allocate resources on the areas that differentiate your business instead of the infrastructure required to run it.
  4. In today’s webinar, we’ll be focusing on first 3 benefits of cloud computing; Pay as you go with no upfront costs Low ongoing costs; and Flexible capacity and agility that cloud that bring to your business. But you do not have to sacrifice performance and availability. I’ll tell you how you can maintain high performance and availability in your applications running on the AWS cloud while minimising your cost. SO, what are some of the strategies available for customers to reduce their running cost in the AWS cloud?
  5. The first strategy is, ‘Do Nothing’. Yes you heard that correctly. By taking no action at all, our customers have managed to lower their cost of running applications in the AWS cloud? You may ask, how did they do that?
  6. Since 2006, there has been 45 price reductions on AWS and on a dozen occasions over the last few years with no competitive pressure to do so. This is a very different business than traditional IT and we think we’re quite good at running high volume – low margin business. We have a virtuous circle which is illustrated by the diagram in front of you. "As we have more customers using AWS, we buy more infrastructure, and as we buy more infrastructure, we’ve been lowering costs, which in turn attracts more customers.” As we achieve greater economies of scale, we can pass the savings onto our customers in form of price reductions and the cycle continuous. So this is one way our customers have been able to save cost of running on AWS.
  7. Our next strategy is ‘Do Almost Nothing’, by taking advantage of AWS Trusted Advisor.
  8. AWS Trusted Advisor acts like your customized cloud expert, and it helps you provision your resources by following best practices. Trusted Advisor inspects your AWS environment and finds opportunities to save money, improve system performance and reliability, or help close security gaps. Since 2013, customers have viewed over 1.7 million best-practice recommendations and realized over $300 million in estimated cost reductions. You can start with a free version of AWS Trusted Advisor in the AWS Management Console with four of the most popular performance and security recommendations, and access to these checks never expires. All of the AWS Trusted Advisor checks are available to customers with Business-level and Enterprise-level support, and the best-practice recommendations can be integrated into your application through the AWS Support API. AWS Trusted Advisor provides best practices in four categories: cost optimization, security, fault tolerance, and performance improvement. You can use over 30 Trusted Advisor checks to monitor and improve the deployment of Amazon EC2, Elastic Load Balancing, Amazon EBS, Amazon S3, Auto Scaling and more… You can view the overall status of your AWS resources and savings estimations on the Trusted Advisor dashboard. Start using AWS Trusted Advisor today to save money, optimise performance and improve security.
  9. This brings us to the third and final strategy for minimising costs while maintaining performance and availability. ‘Optimise your application architecture’ running in the cloud.
  10. When you look at the old world process of how an application is designed and deployed in a traditional datacenter, it can often takes weeks or even months to go through from Planning through to the Run phase of your deployment. However, in the new world of cloud computing, our customers are achieving rapid application deployment by utilising a combination of feature rich cloud services from AWS, automation, DevOps, continuous integration and continuous delivery frameworks.
  11. So how do we architect for low cost on the AWS Cloud while maintaining high performance and availability in your applications? Well, let me tell you how you can architect for low cost on AWS cloud in 7 easy steps.
  12. And the first one is, turn off your unused instances. This may seem like an obvious one for saving costs on AWS and it is. At AWS, our philosophy is that customers should only pay for what they use but at the same, the services should always be available to the customers on demand whenever they want to use our cloud services. What many of our new customers don’t realise is that our EC2 service is an On Demand service that you can switch on and off at any time. And when you switch off your instances, as long as you save your data on AWS EBS storage, your data will be persisted next time you restart the instance.
  13. Typically, customers who run non-production environments such as test & training, they do not need the systems to be online 100% of the time. You can use simple start/stop scripts using the AWS SDKs or AWS command line interface to automate the starting and stopping of your EC2 instances. For example, if you assign a tag to identify instances that are in your development, test, training and production environments, you can schedule your start / stop scripts to only stop the EC2 instances with tags other not equal to ‘production’. As customer’s usage of cloud matures, we have customers who use DevOps and CI/CD framework to perform complete tear down and rebuild up of environments as and when they’re needed. Remember that EC2 instances are disposable. Tear and rebuild anytime by using Amazon Machines Images.
  14. This chart shows a real life example of a customer who is actively starting/stopping their EC2 instances to save the running costs on AWS. Vertical axis on the chart shows the total number of instances running and horizontal axis shows the timeline in hours. As you can see from chart, customer’s total running instances fluctuates especially on weekends and holiday season, which allows them to achieve a cost saving of 35%.
  15. This is one of my favourite services on AWS and it’s Auto Scaling. WHY? Because for a service that so simple to use, it delivers so many important functions to achieve scalability and availability for applications running in the AWS Cloud. Auto Scaling helps you maintain application availability and allows you to scale your Amazon EC2 capacity up or down automatically according to conditions you define. You can use Auto Scaling to help ensure that you are running your desired number of Amazon EC2 instances. Auto Scaling can also automatically increase the number of Amazon EC2 instances during demand spikes to maintain performance and decrease capacity during lulls to reduce costs. Auto Scaling is well suited both to applications that have stable demand patterns or that experience hourly, daily, or weekly variability in usage.
  16. Here’s an example of a 2-tier web application with Auto Scaling on the web server layer. By using Elastic Load Balancer within your Auto Scaling Group, any instances which are launched by the Auto Scaling event will be automatically added to the Elastic Load Balancer and traffic will be routed to the newly launched instance. It also works in reverse. When instances are terminated by Auto Scaling event, the instance will be automatically removed from the ELB and traffic will stopping getting routed to the terminated server.
  17. And Auto Scaling is simple to deploy. Here’s an example of AWS CloudFormation template with an Auto Scaling Launch Configuration. In addition to CloudFormation, you can also use the AWS SDK, Command Lind Tool or the AWS Management Console to configure and manage your Auto Scaling Groups.
  18. Here’s an example of CloudFormation template for the Auto Scaling Group itself. When setting up Auto Scaling, you need to configure the Auto Scaling Group and the Launch Configuration together, as per the previous slide.
  19. Auto Scaling enables you to follow the demand curve for your applications closely, reducing the need to manually provision Amazon EC2 capacity in advance. For example, you can set a condition to add new Amazon EC2 instances in increments to the Auto Scaling group when the average utilization of your Amazon EC2 fleet is high; and similarly, you can set a condition to remove instances in the same increments when CPU utilization is low. If you have predictable load changes, you can set a schedule through Auto Scaling to plan your scaling activities. You can use Amazon CloudWatch to send alarms to trigger scaling activities and Elastic Load Balancing to help distribute traffic to your instances within Auto Scaling groups. Auto Scaling enables you to run your Amazon EC2 fleet at optimal utilization.
  20. Reserved Instances is a pricing model which can save you up to 60% over On-Demand prices Reserved Instances provide you the ability to maximize your level of savings by purchasing the Reserved Instance that meets your business’s needs. AWS offers Reserved Instances for 1 or 3 year terms. Reserved Instances are available in three different types: Light, Medium, and Heavy Utilization that enable you to balance the amount you pay upfront with your effective hourly price. Reserved Instances are available in all AWS regions. Reserved Instances are also available in Amazon VPC and Dedicated Instances. Reserved Instances can be purchased for Amazon EC2 running Linux/UNIX, SUSE Linux, Red Hat Enterprise Linux, Microsoft Windows Server, and Microsoft SQL Server platforms.
  21. Here is a chart comparing the cost of running EC2 instance using On-Demand vs 1-Year and 3-Year Reserved Instance Pricing. If you know that you’re going to be running a workload that requires consistent workload over a period of 1 or 3 years, please consider using Reserved Pricing to save. You can use the AWS Pricing Calculator available online to calculate the costs of On Demand vs Reserved Instance pricing.
  22. Please remember that Reserved Instances are flexible. Instances can be moved between Availability Zones and instances sizes can also be modified within the same instance family. We have a wealth of information on our website so please visit the micro page on Reserved Instances for more information.
  23. Next cost saving tip while maintaining high performance is the use of Spot Instances. Spot Instances allow you to name your own price for Amazon EC2 computing capacity. You simply bid on spare Amazon EC2 instances and run them whenever your bid exceeds the current Spot Price, which varies in real-time based on supply and demand. Spot Instance pricing model complements the On-Demand and Reserved Instance pricing models, providing potentially the most cost-effective option for obtaining compute capacity, depending on your application. Spot Instances can significantly lower your computing costs for time-flexible and interruption-tolerant tasks. Additionally, for some distributed, fault-tolerant tasks (like web-crawling or Monte Carlo applications), you may be able to simultaneously accelerate your computational task and reduce its overall cost by opportunistically incorporating Spot Instances.
  24. So what are rules for Spot Instances? It’s actually quite simple. Pricing is based on supply and demand, so you are effectively bidding for the spare capacity that’s available at any point in time across all AWS Availability Zones. You choose the maximum price per hour that you want to pay and your instance is started if the Spot Instance pricing goes below your bid price. But remember that if the Spot Instance pricing goes above your bid price after launch, your EC2 instance will be terminated. So you need to architect your solution to withstand and handle the Spot Instance terminating instantaneously.
  25. Here’s an actual example of the Spot Instance pricing history of the m1.large instance type in the 3 Availability Zones in the US East Region between 18 to 24 October. As you can see from the chart, the spot pricing actually differ significantly at times between the 3 Availability Zones even though they are all within the same AWS Region. It also demonstrates that the Spot Instance pricing fluctuate well below as well as above the On-Demand pricing.
  26. So here are some of the use case for Spot Instances. Using Amazon Elastic MapReduce for big data processing is a great use case for Spot Instances. We have many customer taking advantage Spot Instance pricing on their EMR clusters and we’ll show you some customer case studies later in this presentation. It’s also great for Web Crawling and Financial Data Modelling such as Monte Carlo analysis.
  27. So just to recap; Spot instance pricing is very dynamic and there is an opportunity to save 80-90% of the cost when compared to On Demand pricing. However, please bear in mind that NOT ALL applications running in the cloud are suitable for Spot Instance and I would highly recommend that you design around it up front. Finally, you can take advantage of Spot Instances with Auto Scaling using the Auto Scaling Launch Configuration and get the best of both worlds of Spot and On Demand Instance Pricing.
  28. This is a case study from our good partners at Cycle Computing who deployed a 70,000-core compute cluster across 3 AWS Regions. As you can see from the stats, they managed to get through almost 71 years of compute in just 8 hours by utilising the power of AWS Cloud and taking advantage of the Spot Instances, in this case 5689 Spot Instances were up and running at it’s peak. All this compute and processing was completed at an amazingly low cost of $5,594. You can read the entire blog on Cycle Computing’s website.
  29. Next up is Amazon Simple Storage Service or S3 and Amazon Glacier. What many people forget about Amazon S3 is that it actually comes with 2 different durability options; default option comes with 11x 9’s of durability. However, if you’re storing a lot of objects and data in S3 but don’t require the high level of durability, you can save cost of storing the object while still maintaining the same read/write performance by choosing the S3 Reduced Redundancy. This provide 4x 9’s of durability and comes at 20% lower cost. You can also use the Lifecycle Management rules in S3 to either; Archive objects to Amazon Glacier or delete the objects after predefined number of days.
  30. Recommendation number 6 is optimise Amazom DynamoDB Capacity Units. Read/write capacity units (CUs) determine most of DynamoDB cost and by optimizing Capacity Units, you can save a lot of money But be careful as you; Need to provision enough capacity to not run into capacity errors Need to prepare for peaks Need to constantly monitor/adjust
  31. Also some DynamoDB Optimisation suggestions; Use Caching on local app servers to save on read capacity units & check out Amazon Elasticache Think of strategies for optimizing CU use which could include; Using multiple tables to support varied access patterns & compressing large attribute values You can even use Amazon SQS to buffer over-capacity writes and perform post processing
  32. AWS customer, Shazam have written a very good technical blog about using Amazon SQS to buffer requests and throttle DynamoDB throughput. I’d highly recommend that you check it out.
  33. And if you want to get even more sophisticated, check out the Dynamic DynanoDB project on Github which provides a solution for automatic read and write provisioning for DynamoDB.
  34. Let’s have a look at a chart of real life customer example on how they managed to save 80% of cost of running DynamoDB by using the caching and optimisation recommendations I mentioned in my previous slides. By using Caching and Dynamic DynamoDB, customer only pays for around 2000 Capacity Units as constant load but can automatically scale up to much higher Capacity Units only when it’s needed.
  35. The final recommendation for optimising cost while maintaining high performance is to offload your architecture as much as possible. More you can offload, the less infrastructure you need to maintain, scale, and pay for Three easy ways to offload include; Using a Content Deliver Network such as Amazon CloudFront Introduce Caching with Amazon ElastiCache. We currently support Memcached & Redis. And leverage other existing Amazon Web Services
  36. As you can see from the chart on the left, offloading your dynamic and static content to a Content Delivery Network can improve the performance of your web application as the response time is reduced and the your customer gets a much better user experience on your website. In addition, you will reduce your AWS running costs as you’ll need less backend web servers as the CDN is taking care of delivering the static and dynamic content directly to the user.
  37. Amazon ElastiCache is a web service that makes it easy to deploy, operate, and scale an in-memory cache in the cloud. The service improves the performance of web applications by allowing you to retrieve information from fast, managed, in-memory caches, instead of relying entirely on slower disk-based databases. ElastiCache supports two open-source in-memory caching engines: Memcached & Redis Amazon ElastiCache automatically detects and replaces failed nodes, reducing the overhead associated with self-managed infrastructures. It also provides a resilient system that mitigates the risk of overloaded databases, which slow website and application load times. Through integration with Amazon CloudWatch, Amazon ElastiCache provides enhanced visibility into key performance metrics associated with your Memcached or Redis nodes.
  38. Leveraging existing services has the added advantage that you’ll need less people in your organisation to manage infrastructure and instead, divert their efforts to things that matter to your business. I would highly recommend that you take the time to check out all the services we have available on AWS and study our reference architectures available on our website to learn how to architect a solution on AWS cloud.
  39. This brings us to last section in this webinar and I’m going spend some time taking you through tools which are available to monitor and analyse your spend on AWS.
  40. We have an online TCO calculator which you can access via the URL at the bottom of the page. By providing the some inputs about your existing server and storage into the calculator, we can provide you with a TCO comparison of running the same capacity on AWS cloud.
  41. AWS Simple Monthly Calculator is also available online and you don’t need an AWS account to access the calculator. The calculator helps you to estimate the cost of running your application on AWS cloud before you start consuming the service so you have a good idea of how much it’s going to cost you to run your applications in the cloud. At AWS, we publish all our pricing online and we are completely transparent on our pricing so there are no hidden costs. AWS Simple Monthly Calculator already reflects the latest pricing so you can simply input the services you want to use and the pricing calculator will provide a pricing estimate output.
  42. When you open an AWS Account and start using the different services, you will receive a bill every month which provides a detailed breakdown of all the services you consumed during thatb month. You can access the AWS Billing Console via the AWS Management Console from your browser. The data on the Billing Console is updated every 4-6 hours so you can actively monitor your AWS spend throughout the month.
  43. As part of the AWS Billing Console, you also have access to the Cost Explorer. The Cost Explorer is a Dashboard that shows your month-on-month spend on your AWS Account across the different services. Using the Cost Explorer together with Trusted Advisor is very useful in understanding your AWS spend and the actions you can take to optimise spend.
  44. This is my final slide and if you only remember one thing from today’s Webinar, I would like you to remember the Billing Alerts. In your AWS Account, you can setup an automated Billing Alerts which can send you a message when the spend on your AWS account reaches your predefined alarm amount. By setting Billing Alerts at different amounts, you can avoid bill shock at the end of month. Also, if you or someone in your team forget to terminate a large cluster of EC2 instances, Billing Alerts will send you automated messages that tell you the spend on your account has reached the threshold and you can take corrective action to terminate the instances.
  45. So let’s recap what we learnt in our session today….
  46. And remember to iterate. Through this continuous improvement cycle, you’ll be able to achieve greater performance and cost saving in the long run.