1. AWS 비용 이해
정진, 영업이사
Asia Pacific Sales and Business Development
Sep 26th, 2013
2. Top 4 TCO (Total Cost of Ownership) Questions
1. “My total cost of hardware is cheaper than AWS”
2. “Will AWS be expensive in a long run?”
3. “Cloud is not cost-effective for steady state
workloads”
4. “My administration costs are insignificant”
3. Make sure that
we are including
all the cost
factors into
consideration
Place
Power
Pipes
People
Patterns
4. We offer a service that includes everything in the price
Hardware
Vendor
Offering
Server
Network
Hardware
Software
OS +
VMs
DC/Colo
Floor Space
Powering
Cooling
Internet
Bandwidth
Personnel
Admins
HW
Maintenance
Storage
Redundancy
Resource
Mgmt SW
Automation
5. Fixed Cost Factors One-time Upfront Monthly
AWS Co-lo On-Site AWS Co-lo On-Site
Server Hardware 0 $$$ $$ $$ 0 0
Network Hardware 0 $$ $$ 0 0 0
Hardware Maintenance 0 $$ $$ 0 0 0
Software OS 0 $$ $$ $ 0 0
Power and Cooling and Data Center
Efficiency
0 0 $$ 0 0 $
Data Center/co-lo Space 0 $$ $$ 0 0 0
Personnel (Administration) 0 $$ $$ $ $$ $$$
Storage and Redundancy 0 $$ $$ $ 0 0
Bandwidth $ $$ $ $$ $ $
Resource Management Software 0 0 0 $$ $ 0
Total
Take all the costs in to consideration
10. Auto scaling : Types of Scaling
Scaling by Schedule
• Use Scheduled Actions in Auto Scaling Service
• Date
• Time
• Min and Max of Auto Scaling Group Size
• You can create up to 125 actions, scheduled up to 31 days into the future, for each of your auto
scaling groups. This gives you the ability to scale up to four times a day for a month.
Scaling by Policy
• Scaling up Policy - Double the group size
• Scaling down Policy - Decrement by 1
Scale By Hand
• Not so auto, but still better than nothing!
15. On-Demand
Pay for compute
capacity by the hour
with no long-term
commitments
For spiky
workloads, zero
upfront
Reserved
Make a low, one-
time payment and
receive a significant
discount on the
hourly charge
For committed
workloads
Spot
Bid for unused
capacity, charged at
a Spot Price which
fluctuates based on
supply and demand
For transient
workloads
Dedicated
Launch instances
within Amazon VPC
that run on
hardware dedicated
to a single customer
For highly sensitive
or compliance-
related workloads
Free Tier
Get Started on AWS
with free usage &
no commitment
For POCs and
getting started
$
AWS Offers Options that Fit the Needs
16. Annual
Utilization
On Demand
Light Utilization
RI
Medium
Utilization RI
Heavy Utilization
RI
10% $234 77.95% 210.43% 479.49%
20% $468 18.97% 73.68% 189.74%
30% $702 0.68% 28.09% 93.16%
40% $936 10.51% 5.30% 44.87%
50% $1,170 16.41% 8.38% 15.90%
60% $1,404 20.34% 17.49% 3.42%
70% $1,638 23.15% 24.00% 17.22%
80% $1,872 25.26% 28.89% 27.56%
90% $2,106 26.89% 32.69% 35.61%
100% $2,340 28.21% 35.73% 42.05%
Optimal Savings
Sub-Optimal Savings
Least Savings
RI Cost Savings over On Demand
M1.large – Linux– 1 Year RI
17. The breakeven for RIs is surprisingly quick
Sample Cash Flow Summary from RI Analysis
18. 0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
On Demand
Light Utilization RI
Medium Utilization
RI
Heavy utilization RI
Optimizing costs with RIs
19. AWS customers use Spot for even greater savings
Best Spot use-cases include any batch-oriented, fault-tolerant application
20. What are Spot Instances?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Sold at
50%
Discount!
Sold at
56%
Discount!
Sold at
66%
Discount!
Sold at
59%
Discount!
Sold at
54%
Discount!
Sold at
63%
Discount!
21. What is the tradeoff?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Reclaimed
Reclaimed
22. Customers Can Save Up to 92% Off the On-Demand Price
50%
50%
57%
63%
50%
66%
50%
CycleCloud runs a HPC
Cluster with 30000 cores at
$1279/Hour (57% savings)!
Some say the 30th fastest
super computer with 1 GiB
interconnect
Lucky Oyster crawled 3.4B
Web Pages, building a 400M
entry index in around 14
hours for $100 (>85%
savings)!
23. Spot Instance Use Cases
Use Case Types of Applications
Batch Processing Generic background processing (scale out computing)
Hadoop Hadoop/MapReduce processing type jobs (e.g., Search, Big Data)
Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and
biology
Video and Image
Processing/Rendering
Transform videos into specific formats
Testing Provide testing of software, websites, etc.
Web/Data Crawling Analyzing data and processing it
Financial Hedgefund analytics, energy trading, etc.
HPC Utilize HPC servers to do embarrassingly parallel jobs
Cheap Compute Backend servers for Facebook games
24. Optimal Combination of the Pricing Options
Start out risk-free
and commitment-
free
On-Demand
Instances
POCs, Companies
that need to
preserve
cash, Apps
constrained by
capital
Savings - Purchase
Reserved for your
Baseline capacity
Reserved +
On-Demand
Apps with
committed usage
Baseline: Use Heavy
Peak: On-Demand
More Savings -
Convert On-Demand
to Light RIs
More Light
RI
Apps with
predictable usage
Spikes: On-Demand
25. Steady State
Usage Pattern
(Example: Corporate Website)
Spiky Predictable
Usage Pattern
(Example: Marketing
Promotions Website)
Uncertain unpredictable
Usage Pattern
(Example: Social game or
Mobile Website)
What if …?
28. On-Premises Storage
Raw Storage
Disk storage volumes in a box
Usable Storage
RAID protection, Formatted Ready
Allocated Storage
Pre-allocation / Capacity Planning
Utilized Storage
Disk storage available to the database,
Operating system
Application Storage
Actual storage used by the application
Allocation
1 PB
1,048,576 GB
80%
90%
70%-80%
1,820,133 GB
29. On-Premises Storage
Raw Storage
Disk storage volumes in a box
Usable Storage
RAID protection, Formatted Ready
Allocated Storage
Pre-allocation
Utilized Storage
Disk storage available to the database,
Operating system
Application Storage
Actual storage used by the application
Amazon S3
1 PB
30. It’s Easy to Get an Incomplete and Incorrect Comparison
of Cloud and Internal Storage
August 2011 “File Storage Costs Less In The Cloud Than In-House”
33. 25 Price cuts (8 of them related to Storage and Data Transfer)
August 2011 “File Storage Costs Less In The Cloud Than In-House”
$165,840
$251,600
Cloud Storage Costs of 100 TB
35%
savings
36. Intangible Cost Savings – Take a closer look at what you get
Standardization and
Consistency of
HW/SW
Global Footprint
and Expansion
Automation and
Operational
Excellence
Rate of
Innovation
Security and ComplianceReturn on Agility
38. Analysts Whitepapers and Resources on TCO of AWS
AMAZON CLOUD
INFRASTRUCTUR
E REPRESENTS A
70%
SAVINGS
SAP applications
on AWS provides
infrastructure
savings of up
71%
AWS is a
Price
Leader
39. IDC TCO Study – Business Value Highlights
39
Source IDC Whitepaper, sponsored by Amazon, “The Business Value of
It is very important to know your costs. Most organizations get TCO calculations but they don’t know what the TCO of the indivual App is because central IT had cut a big fat check earlier in the past. In order to do real TCO analysis of App-level, you have to know that there are costs of Power, cooling, real estate system administration costs in case of on-premise data center and co-lo which is not in that of the cloud. I am even taking into account the value of “Headache” and cost of this undifferentiated heavy lifting. When you use AWS, all these costs are already baked in to your costs. You really don’t have to worry about all these costs. The other very important item that customers miss is Reserved Instances when doing long-term TCO calculations. Reserved instances can save you upto 50% for a 3-year term. Its our commitment to you and not your commitment to us. Andy took this into two things into consideration : know what he is currently paying for the app and understanding the reserved instance pricing
Perhaps you expect a lot of traffic as part of a planned announcement and you want to increase the size of your EC2 fleet just ahead of your press release. Maybe your site is busy once a day because you have a daily deal or a daily special, or only on weekends when people are at sporting events. Or maybe you run a college registration site and you want to scale up during day and evening hours for the four-day registration period.
Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.
To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.
To get 1 PB of actual application storage, you actually need to account for 1.820133 PB of storage.
The best study so far!
The best study so far!
The best study so far!
23% price reduction
Overall, the organizations interviewed recognized annual financial benefits averaging over $518,000 per application. The most significant benefit comes from moving applications onto AWS infrastructure due to lower capital and operational costs. This reduction in capex and opex accounted for over 50% of the overall benefits found in the study. IDC observed significantly increased developer productivity on Amazon cloud infrastructure services compared with prior implementations. The companies interviewed experienced greater developer productivity across all of the key software development life-cycle activities, which was a direct result of the extensive development and runtime services that are provided by Amazon cloud infrastructure services. Developer and IT staff productivity accounted for nearly 30% of overall financial benefits. The remaining benefits were driven by the flexibility and agility of Amazon cloud infrastructure services, which make it easier to trial new business models, support revenue-generating applications, and provide more reliable services to end users. These other benefits included:Benefits increase over time. There is a definite correlation between the length of time customers have been using Amazon cloud services infrastructure and their returns. At 36 months, the organizations are realizing $3.50 in benefits for every $1.00 invested in AWS; at 60 months, they are realizing $8.40 for every $1.00 invested. This relationship between length of time using Amazon cloud infrastructure services and the customers' accelerating returns is due to customers leveraging the more optimized environment to generate more applications along a learning curve. The five-year total cost of ownership (TCO) of developing, deploying, and managing critical applications in Amazon cloud infrastructure represents a 70% savings compared with deploying the same resources on-premise or in hosted environments. The findings showed a 626% ROI over five years.End users benefited from fewer service disruptions and quicker recovery on Amazon cloud infrastructure services, reducing downtime by 72% and improving application availability by an average of 3.9 hours per user per year.IT staff productivity increased by 52%. IT staff are thus able to improve support of mission-critical operations. Amazon cloud infrastructure services had significant impact on application development and deployment, reducing overall developer hours by 80%.The five-year ROI analysis shows that on average, the companies saw a payback period of seven months and realized a five-year ROI of 626%.