This hands-on, instructor led lab will guide you through cost optimization for an organization, as it evolves from a single small account through to a large scale organization. You will use the built in cost management tools within the console, then utilize other AWS services to provide deep analysis and answers at scale. It will also demonstrate how to setup account structures and permissions to facilitate organization wide optimization.

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Cost Optimisation Instructor Led Lab

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Today
• It’s 101 Focused
• I Assume Very Little Knowledge/Experience
• Mix of Information and Exercises
• If You’re Advanced = Train the Trainer
• No Coding or External Tools/Programs
• Everything Must be a few Clicks in the Console
• You can use your own account (need IAMCreate permission)

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Zero to Hero (your type of hero)
• Tools and Knowledge to Gather Information
• Present it with Business and Financial Meaning
• Feedback - 5 Stars Rating?
• Send me Your Savings = Bill in 1 Month, Bill in 3 Months

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Cost of Optimisation
• Cost of Collection, Analysis, Implementation
• You MUST Invest in Time and $ (wisely)
• Short, Fast Cycles of Cost Management
• Look for High Spend & High Return
• Top 10’s

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Well-Architected Approach

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Well-Architected Approach
• Governance
• Pricing Models
• Resource Sizing
• Monitoring Cost and Usage

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Governance

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Governance: Control Who Can do What
• Provide and Control Access
• IAM Policies
• Users
• Groups
• (Limits)

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Exercise #1
Policies, Users and Groups

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Exercise #2
Policies – Access Restriction

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Governance: Inform - Alerts
• Alert for Anomalies
• Alternative to Policies/Restrictions
• AWS Budgets
• Set actual & forecasted budgets
• Track cost, usage & RI utilisation
• Alert when forecasted or actuals exceed pre-defined limits
• Refine by Accounts, Tags, Instances… <~10 billing columns>

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Governance: CloudWatch Billing Alert
• Prefer not to use this…
• Creates an SNS Topic
• Requires additional access
• More Management/Operational Cost

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Exercise #3
Budget - Alerts

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Governance: AWS Budgets
• Usage budget
• Good alternative for limits (notify, don’t restrict)
• Specify Service, Instance Type and Usage Type (10 billing columns)
• RI Budget
• Uses % by hrs, not $ or absolute hrs
• Track forecasted utilisation of high value RI’s
• What % should I use?

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Pricing Models

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Pricing Models
• On Demand
• Reserved Capacity/Instances
• Spot
• Region Cost

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Pricing Models: Reserved & Loss Aversion
• People Prefer to Avoid Losses rather than Acquiring the
Equivalent Win
• What is the Actual Cost of Getting it Wrong?
• Average 18.54 concurrent instances: Cost: $8,060.788
• How Wrong can I go & Still Win?
• 25.99 PUF RI’s
• 26.52 FUF RI’s

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Pricing Models: Reserved – Assess Risk
Break Even
100
%
Fully Paid
Assume 70%
Fully Paid DayRI Utilisation

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Pricing Models: Which Model?
NUF vs PUF vs
FUF
*Prices as at 24th Apr 2018
- Standard vs Convertible

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Exercise #4
Pricing Models – RI Report

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Pricing Models: RI Report
• Purchase the Lower Size When Flexible
• Decide at Speed and Scale
• Max/Min – What’s the spread?
• Average – Close to Max? Close to Min?
• Sort by Break Even (sooner = lower risk)
• Then Sort by Monthly Savings (highest return)

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Pricing Models: RI Reports – Change in Usage

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Exercise #5
Pricing Models – RI Report (Pt2)

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Resource Sizing

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Resource Sizing: Requirements
• Utilise Key Instance Attributes
• CPU
• Memory
• Network
• Additional Metrics: Storage (usage & size)
• Customised/DIY Solutions: https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/mon-
scripts.html
• Enterprise/Company Wide Solution Aligned

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Exercise #6
Resource Sizing – CloudWatch Dashboards

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Resource Sizing: Trusted Advisor
• Requires Business Support ($100/month min, % of bill)
• Currently ~60 checks per account
• Multiple Services Supported (RDS, Redshift)
• Does NOT Check Memory
• 5 categories:
• Cost
• Performance
• Security
• Fault Tolerance
• Service Limits

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Exercise #7
Resource Sizing – Trusted Advisor

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Monitor Cost

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Monitor Cost
• Monitor Your Usage as You Would System Uptime
• Audience, Tooling will Vary
• Higher Level = Cost Explorer
• Lower Level = Cost and Usage Reports

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Exercise #8
Monitor Cost – Cost Explorer

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Monitor Cost: RI Utilisation
• Shows “Hours”, not Cost (t2.micro vs ds2.8xl hours?)
• Need $ - spreadsheet vlookup/conversion
• T, M, C Families: Large = x$0.1, xlarge = x$0.2, 2xl = x$0.4….
• P, G, X, R, I, H, D Families: Add additional multiplier
• Set Utilization Target = Fully Paid Day (100% = unnecessary concerns)

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Monitor Cost: RI Utilisation
• Fully Paid Day – Rough Estimates
Discount Level:
T2’s = 41%
M5’s = 39%
M4’s = 41%
C5’s = 39%
G3’s = 35%
F1’s = 36%
X1’s = 41%
R4’s = 40%
I3’s = 35%
H1’s = 35%
D2’s = 50%
P2’s = 35%
T2, M5, C5, M4, X1, R4 = 40% Discount
G3, F1, I3, H1, P2 = 35% Discount
D2 = 50% Discount
T2, M5, C5, M4, X1, R4 = 60% Utilisation
G3, F1, I3, H1, P2 = 65% Utilisation
D2 = 50% Utilisation

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Monitor Cost With Depth

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Monitor Cost: Billing Reports
• Detailed! (Up to Billions of Lines)
• Data Source for Many 3rd Party Tools
• Hourly Granularity
• Everything, Everyone, Anytime, Anywhere = 1 File

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Exercise #9
Monitor Cost – Billing
Reports

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Monitor Cost: Billing Report Analysis
• Scalable (Over a Billion Lines)
• Repeatable – Columns Change (Especially Tags)
• Low Maintenance (Serverless)
• Familiar/Popular Access Method (ANSI SQL)
• Athena & AWS Glue

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Exercise #10
Monitor Cost – AWS Glue &
Athena

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Monitor Cost: SQL
• SQL – Structured Query Language, databases
• Athena = ANSI SQL (standards based, lots of doco)
• Basic structure:
Select <column name>, <column name> from table
Were <condition>
Group by <column name>
Order by <column name> [asc | desc]
Limit <rows>

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Monitor Cost: Using Athena
• Everything is “string”, must use cast to convert for operations.
• lineitem/unblendedcost = “string”, should be “double”
• sum(lineitem/unblendedcost) = error
• sum(cast("lineitem/unblendedcost" AS DOUBLE)) as cost

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Exercise #11
Monitor Cost – Queries

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Thank you!

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