aws 201 webinar series - rightsizing and cost optimizing your deployment
DESCRIPTION
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 leadersTRANSCRIPT
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
Pay-as-you Go Model
Lower Overall Costs
Stop Guessing Capacity
Agility / Speed / Innovation
Avoid Undifferentiated
Heavy Lifting Go Global in
Minutes
✔ ✔ ✔ ✔ ✔ ✔ On-Premises/ Co-Location X X X X X X
Why do customers care about TCO?
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”)
Metered, Pay As You Go Model
Use only what you need,
using on-demand, reserved, spot or dedicated
Flexible
Capital Expense Model
High upfront capital cost,
high cost of ongoing support
Inflexible
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
Network Costs
Storage Costs
Server Costs
Hardware – Server, Rack Chassis PDUs, ToR Switches
(+Maintenance)
SoQware -‐ OS, Virtualiza6on Licenses
(+Maintenance)
Facili6es Cost
Space Power Cooling
Hardware – Storage Disks,
SAN/FC Switches
Facili6es Cost Storage Admin costs
Network Hardware – LAN Switches, Load Balancer
Bandwidth costs
Network Admin costs
Facili6es Cost
IT Labor Costs
Server Admin Virtualiza6on Admin
1
2
3
4
Space Power Cooling
Space Power Cooling
illustra6ve
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
Hardware Vendor Offering
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
✔
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
• 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
Samsung Powers Smart Hub Service with AWS, Reducing Costs by 85% and Saving $34 Million
Increased agility has become the #1 reason businesses use the AWS cloud
Enterprises Can’t Afford to be Slow
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
AWS: Infrastructure in Minutes
Old World: Infrastructure in Weeks
Everything changes with this kind of agility
A culture of InnovaFon: Experiment OKen & Fail without Risk
On-Premises Experiment Infrequently Failure is expensive Less Innovation
Experiment Often Fail quickly at a low cost More Innovation
$ Millions Nearly $0
Shell uses AWS to Develop Software Faster and Cheaper
Remote Team
Core Development Team
Extra Development Resources
Contractor Team
6 STEPS TO COST SAVINGS Cost-aware Architectures
AMAZON EC2 Compute
#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
Monday Friday End of vaca6on season
35% saved
#3: Use Reserved Instances
#3: Use Reserved Instances
1y RI Break even
3y 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
On-‐demand: $0.24
$0.028 (11.7%) $0.026 (10,8%)
$3.28 (1367%)
#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 N
umbe
r of C
ores
300 Cores on weekends
Thu Fri Sun Mon Tue Sat Wed
3000 -
300 -
AMAZON S3 Storage
#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
OVERALL ARCHITECTURE
#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
Your Business
70%
On-‐Premise Infrastructure
30%
Managing All of the “Undifferen6ated Heavy LiQing”
Simplify and Outsource to Managed Services
AWS Cloud-‐Based
Infrastructure
Your Business
More Time to Focus on Your Business
Configuring Your Cloud Assets
70%
30% 70%
On-‐Premise Infrastructure
30%
Managing All of the “Undifferen6ated Heavy LiQing”
Simplify and Outsource to Managed Services
Storage
S3 EBS Glacier Storage Gateway
API AWS Global Infrastructure
AWS Global Infrastructure Fo
unda
tion
Serv
ices
Appl
icatio
n Se
rvice
s De
ploy
men
t &
Mana
gem
ent
Application Services
Libraries, SDK’s
Networking
VPC Direct Connect
ELB Route53
Databases
RDS ElastiCache Dynamo RedShift
Content Delivery
CloudFront
SES SNS SQS Elastic Transcoder
CloudSearch SWF
IAM Federation
Identity & Access
Web Console
Interaction
Human Interaction
Support
Regions Availability Zones Edge Locations
Analytics
DataPipeline EMR Kinesis
EC2
Compute
WorkSpaces
AppStream
Monitoring
CloudWatch
Deployment & Management
BeanStalk Cloud Formation
OpsWork CloudTrail
Command Line
• 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
Global Blue Saves Nearly $1M Moving to the Cloud
TOOLS
TCO Calculator aws.amazon.com/tco-‐calculator/
AWS Trusted Advisor aws.amazon.com/premiumsupport/trustedadvisor/
Free with Business or Enterprise Support
• 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%
Hungama Uses AWS Trusted Advisor to Optimize Usage and Save 33% on Monthly Costs
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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