Published on March 3, 2014
AWS 201 Rightsizing and Cost-‐op6mizing Your Deployment Markku Lepistö -‐ Technology Evangelist @markkulepisto
Housekeeping • • • • Presentation ~45mins Post Questions Online Q&A at the end Reminder – Fill in the survey!
What You’ll Get out of this Session • A lower AWS bill • A more scalable, robust, dynamic architecture • More time to innovate • Real-world customer examples • All in 6 easy to implement sections
TCO IN THE CLOUD
Why do customers care about TCO? Pay-as-you Go Model Stop Guessing Capacity Agility / Speed / Innovation Avoid Undifferentiated Heavy Lifting Go Global in Minutes ✔ On-Premises/ Co-Location Lower Overall Costs ✔ ✔ ✔ ✔ ✔ X X X X X X Lower Costs is not the only reason customers choose AWS, but is signiﬁcant …
Analysts have shown AWS reduces costs In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS.
Replace up-front capital expense with low variable cost On-Premise (or “Private Cloud”) Capital Expense Model High upfront capital cost, high cost of ongoing support Inflexible Metered, Pay As You Go Model Use only what you need, using on-demand, reserved, spot or dedicated Flexible
Economies of scale allow AWS to continually lower costs We build IT at higher scale than most any operator of data centers in the world We are comfortable running a high volume, low margin business We pass the savings along to our customers in the form of low prices and continuous reductions
Typical cost drivers for on-premises deployments 1 Server Costs 2 3 4 Hardware – Server, Rack Chassis PDUs, ToR Switches (+Maintenance) SoQware -‐ OS, Virtualiza6on Licenses (+Maintenance) Storage Costs Hardware – Storage Disks, SAN/FC Switches Storage Admin costs Network Costs Network Hardware – LAN Switches, Load Balancer Bandwidth costs Network Admin costs IT Labor Costs illustra6ve Facili6es Cost Space Power Cooling Facili6es Cost Space Power Cooling Facili6es Cost Space Power Cooling Server Admin Virtualiza6on Admin Diagram doesn’t include every cost item. E.g. soQware costs can include database, management, middle 6er soQware costs. Facili6es cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and applica6on admin costs.
AWS offers a service that includes everything in the price Server Network Hardware Software OS + VMs DC/Co-lo Floor Space Powering Cooling Internet Bandwidth Personnel Admins HW Maint. Storage Redundancy Resource Mgmt. /SW Automation ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Hardware Vendor Oﬀering ✔
Samsung Powers Smart Hub Service with AWS, Reducing Costs by 85% and Saving $34 Million • Samsung uses AWS platform of technology infrastructure services to build Smart Hub application • Smart Hub application runs on AWS Cloud for users of Smart TV and Blu-ray players to access content of 3rd party providers • With every user’s request, Smart Hub application authenticates devices, delivers apps and content, and pushes notifications across multiple devices
Increased agility has become the #1 reason businesses use the AWS cloud
Enterprises Can’t Aﬀord to be Slow Old World: Infrastructure in Weeks AWS: Infrastructure in Minutes Add New Dev Environment Add New Prod Environment Add New Environment in Japan Add 1,000 Servers Remove 1,000 Servers Deploy 1 PB Data Warehouse Shut down 1 PB Data Warehouse Everything changes with this kind of agility
A culture of InnovaFon: Experiment OKen & Fail without Risk On-Premises $ Millions Nearly $0 Experiment Infrequently Experiment Often Failure is expensive Fail quickly at a low cost Less Innovation More Innovation
Shell uses AWS to Develop Software Faster and Cheaper Core Development Team Extra Development Resources Contractor Team Remote Team
Cost-aware Architectures 6 STEPS TO COST SAVINGS
Compute AMAZON EC2
#1: Use Auto Scaling
#1: Use Auto Scaling
Auto Scaling Tips • Scale up like a rocket • Scale down like a feather • Find the right instance type • Leave headroom for peaks • Bonus: Better fault-tolerance • Bonus: Better scalability
#2: Turn off Unused Instances
#2: Turn off Unused Instances • Developer/test/training instances • Use simple instance start/stop, or • Tear down/build up altogether • Instances are disposable • Automate, automate, automate: • AWS CloudFormation • Weekend/off-hours scripts • Use tags
Customer Dev/Test Example 35% saved Monday Friday End of vaca6on season
#3: Use Reserved Instances
#3: Use Reserved Instances 3y RI Break even 1y RI Break even
Less instances at night Peak traﬃc $52 / hr Night traﬃc $15 / hr 71% savings!
#4: Use Spot Instances
#4: Use Spot Instances • You choose your maximum price/hour • Price based on supply/demand • Your instance is started if Spot Price is lower • Your instance is terminated if Spot Price is higher • But: You did plan for fault-tolerance, didn’t you?
#4: Use Spot Instances $3.28 (1367%) On-‐demand: $0.24 $0.028 (11.7%) $0.026 (10,8%)
#4: Use Spot Instances • Very dynamic pricing • Opportunity to save 80%-90% cost • But there are risks • Different prices per AZ • Leverage Auto Scaling! • One group with Spot instances • One group with On-Demand • Get the best of both worlds
3000 Cores for risk management processes Number of Cores 3000 - 300 Cores on weekends 300 - Wed Thu Fri Sat Sun Mon Tue
Storage AMAZON S3
#5: Leverage Storage Classes • Amazon S3 Reduced Redundancy • 99.99% durability vs. 99.999999999% • Up to 20% savings • Great for everything that is easy to reproduce • Amazon Glacier • Same 99.999999999% durability as S3 • 3 to 5 hours restore time • Up to 89% savings • Great for archiving, long-term backups and old data
#6 Offload Your Architecture • The more you can offload, the less infrastructure you need to maintain, scale, and pay for. • Three easy ways to offload: • Use Amazon CloudFront • Introduce Caching • Leverage existing AWS services
Offload Popular Traffic to Amazon S3, CloudFront
Offload Databases Through Caching
Simplify and Outsource to Managed Services 30% On-‐Premise Infrastructure 70% Your Business Managing All of the “Undiﬀeren6ated Heavy LiQing”
Simplify and Outsource to Managed Services 30% On-‐Premise Infrastructure AWS Cloud-‐Based Infrastructure 70% Your Business Managing All of the “Undiﬀeren6ated Heavy LiQing” More Time to Focus on Your Business 70% Conﬁguring Your Cloud Assets 30%
Deployment & Management Deployment & Management AWS Global Infrastructure BeanStalk CloudWatch OpsWork Cloud Formation CloudTrail IAM Support Federation Interaction Application Services Web Console AWS Global Infrastructure SES SNS Elastic Transcoder SQS CloudSearch Databases Foundation Services Human Interaction Identity & Access RDS Dynamo WorkSpaces AppStream Analytics ElastiCache RedShift Compute EC2 SWF API Application Services Monitoring EMR DataPipeline Content Delivery Kinesis Storage S3 Regions EBS Glacier Command Line Libraries, SDK’s CloudFront Networking Storage Gateway VPC Direct Connect Availability Zones ELB Route53 Edge Locations
Global Blue Saves Nearly $1M Moving to the Cloud • Global Blue is a multi-national firm specializing in tax free shopping and refund points for merchants and international travelers • Needed to create capacity for their business intelligence (BI) tool that handles merchant reporting • Saved $800,000/year in CapEx and $78,000/year in OpEx costs
TCO Calculator aws.amazon.com/tco-‐calculator/
AWS Trusted Advisor aws.amazon.com/premiumsupport/trustedadvisor/ Free with Business or Enterprise Support
Hungama Uses AWS Trusted Advisor to Optimize Usage and Save 33% on Monthly Costs • Hungama, a Mumbai, India provider of mobile and Internet entertainment to customers in more than 47 countries, has used AWS for server and storage management since 2008 • As the company grew rapidly, more departments used AWS for development causing an increase in monthly costs • By using AWS Trusted Advisor to identify ways to optimize its environment on AWS, Hungama reduced monthly costs by 33%
Let’s Recap 1. Use Auto Scaling 2. Turn off unused instances 3. Use Reserved Instances 4. Use Spot Instances 5. Leverage Amazon S3 storage classes 6. Offload your architecture
Thank you Markku Lepistö -‐ Technology Evangelist @markkulepisto
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