AWS 201 Webinar Series - Rightsizing and Cost Optimizing your Deployment

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Information about AWS 201 Webinar Series - Rightsizing and Cost Optimizing your Deployment

Published on March 3, 2014

Author: AmazonWebServices



Leveraging the AWS Cloud can help you further lower your overall IT costs and avoid fixed, upfront IT investments. Learning how to right-size your environments can help you to go from capacity guessing to meeting QoE targets for your customers. The session will also cover best practices on how to Architect for Cost from real world customer use cases and ultimately how the AWS Cloud can help you increase revenue by focusing on Innovation and Return on Agility.

Key takeaways
- Replace up-front capital expenses with low variable costs
- Outsource undifferentiated IT tasks to useful services
- Evaluate the total Cost of (Non) Ownership
- Build Cost-aware architectures
- AWS features that help you reduce your spend
- Different purchasing options available with AWS

Who should attend
- Technical Users: Developers, engineers, system administrators and architects
- Decision Makers: IT Managers, directors and business leaders

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


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‐calculator/  

AWS Trusted Advisor   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  

Your  feedback  is  important   Please  complete  the   Survey!   What’s  good,  what’s  not   What  you  want  to  see  at  these  events   What  you  want  AWS  to  deliver  for  you  


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