SlideShare a Scribd company logo
1 of 72
How to Reduce Your Spend
Joe Ziegler
Startup Business Development Manager APAC
@jiyosub
On AWS
APAC Webinar Series | AWS 201
How do the benefits of
AWS help to reduce my
spend?
Elastic On Demand
Pay as you go
Focus on
YOUR
business
Traditional IT
capacity
Capacity
Time
Your IT needs
Elastic Capacity
On and Off Fast Growth
Variable Peaks Predictable Peaks
Elastic Capacity
On and Off Fast Growth
Predictable PeaksVariable Peaks
WASTE
CUSTOMER DISSATISFACTION
Elastic Capacity
When you turn off your cloud resources,
you actually stop paying for them
Elastic cloud capacity
Traditional IT capacity
Your IT needs
Time
Capacity
Elastic Capacity
Fast GrowthOn and Off
Predictable peaksVariable peaks
Elastic Capacity
Hardware, Software, Database, Network :
Procurement, Installation, Maintenance and Administration Costs
Economies of Scale
Pricing Models
Cost Aware Architecting
Economies of Scale
Pricing Models
Cost Aware Architecting
Powering the Most Popular Internet Businesses
Free steak
campaign
Facebook
page
Mars
exploration ops
Consumer
social app
Ticket pricing
optimization
SAP &
Sharepoint
Securities Trading
Data Archiving
Gene
sequencing
Marketing
web site
Interactive TV
apps
Financial
markets
analytics
R&D data
analysis
Consumer
social app
Big data
analytics
Web site &
media sharing
Disaster
recovery
Media
streaming
Web and
mobile apps
Streaming
webcasts
Facebook
app
Consumer
social app
Every Imaginable Use Case
Every Day…
AWS adds the equivalent server
capacity to power Amazon when it was
a global, $5.2B enterprise in 2003
2003
$5.2B retail business
7,800 employees
A whole lot of servers…
The AWS Price Reduction Philosophy
Ecosystem
Global
Footprint
New Features
New Services
Infrastructure
Innovation
More AWS
Usage
More
Infrastructure
Economies
of Scale
Lower
Infrastructure
Costs
Reduced
Prices
More
Customers
Economies of Scale
Pricing Models
Cost Aware Architecting
AWS Pricing Philosophy
• Pay as you go
– No minimum commitments or long-term contracts required
– Capex -> Opex
– Turn off when you don‟t need it
• Pay less per unit when you use more
– Tiered Pricing and Volume Discounts
• Pay even less when you reserve
– Reserved pricing
• Pay even less as AWS grows
– Efficiencies, optimizations and economies of scale result in passing the
savings back to you in the form of lower pricing
Pay less when you use more
On-Demand
Pay for compute
capacity by the
hour with no long-
term commitments
For spiky
workloads,
or to define needs
Cost Optimization using different purchase models
Reserved
Make a low, one-
time payment and
receive a significant
discount on the
hourly charge
For committed
utilization
Spot
Bid for unused
capacity, charged at a
Spot Price which
fluctuates based on
supply and demand
For time-insensitive or
transient workloads
Free Tier
Get Started on
AWS with free
usage & no
commitment
For POCs and
getting started
aws.amazon.com/free
Utilise the Free Tier
Time
Scale
Scenario
Small team with initial idea for Mobile app
3 months to get to launch
Unknown customer/problem/solution
No cash….
• Internal testing with your team
• 2 Tier Web - Database Servers
• Use t1.micro Instances
Dev / Test Environment
Time
Scale
Average Spend
$0
p/m
• Release to small group of ‘core testers’
• 2 Tier Web & Database Servers
• 2 x t1.micro Instances
Alpha Release
Time
Scale
Average Spend
$15
p/m
• First public release – limited audience
• Master / Slave DB setup
• m1.small Instances
• Auto-Scaling Instances (2 Instance minimum)
Beta Release / MVP
Time
Scale
Average Spend
$235
p/m
Getting to MVP for $250
Time
Scale
Total Spend to MVP
$250
$235$15$0
• 3 months dev/test/release
• Serving Beta customers
• Ready for full production
and scale
Reserved Instance Pricing
Make a low, one-time payment and receive a
significant discount on the hourly charge
For committed utilization
•Light Utilization RI
•Medium Utilization RI
•High Utilization RI
•1-year
•3-year
2 Terms3 Versions
Reserved Instance Pricing
Utilization RI option Savings over On-Demand
<10% On-Demand
10% - 40% Light Utilization RI Up to 56%
40% - 75% Medium Utilization RI Up to 66%
>75% Heavy Utilization RI Up to 71%
S3 Storage Volume
EC2 Instance Hours
February 2013
48.7 million users globally
Raised $200M (Total = $338M)
$2.5B valuation
• Most traffic happens in the afternoons and evenings, so they reduce the number of
instances at night by 40%.
• At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as
little as $15 an hour. Saving per hour = 71%
Save more money by using Spot Instances
Up to 85% savings over On Demand pricing
Spot market for under-
utilized capacity
Requested Bid Price and
Pay as you go
Spot Price < On-Demand Price
Use Case Types of Applications
Batch Processing Generic background processing (scale out computing)
Hadoop Hadoop/MapReduce processing type jobs (e.g. Search, Big Data, etc.)
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, web sites, 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
Use Cases for Spot Pricing
Optimizing Video Transcoding Workloads
for a FREEMIUM model
Free Offering
Optimize for reducing cost
Acceptable Delay Limits
Implementation
– Leverage spot pricing
– Maximum Bid Price
– < On-demand Rate
– Use on-demand Instances, if delay
Get strongly reduced price for your
workload
Premium Offering
Optimized for Faster response
No Delays
Implementation
– Invest in Reserved Instances
– Use on-demand for Elasticity
Get Instant Capacity for higher price
Economies of Scale
Pricing Models
Cost Aware Architecting
“Give me 4 fault tolerant algorithms and I can pick
the best one almost with my eyes closed.
If you then ask me which one is best for the
business, in terms of dollar costs, I would be
clueless...”
Werner Vogels, CTO, Amazon
Cost optimization through „Cost Aware Architecting‟
…by leveraging:Reduce Cost of…
Compute
1. S3 & CloudFront for Caching & Offloading
Storage 5. Storing derivative objects in S3 „Reduced Redundancy‟
Database 6. Read Replicas and/or ElastiCache
Test & Dev 7. Rapid proto-typing & Lean Dev/Test
2. Auto-Scaling done Right
3. Leverage Managed Services
4. Sizing your Application for AWS
1. S3 & CloudFront for Caching & Offloading
• Reduce your compute demand and costs
• Improve end-user experience
• Increase reliability and durability
Cost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & Offloading
Cost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & Offloading
Cost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & Offloading
Cost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & Offloading
Cost Aware Architecting to Reduce costs of EC2
2. Auto-Scaling done Right with Real Time reaction response
• Elastic Load Balancing and (event-driven) Auto Scaling
• Notification of pending news flash (with audible alarm)
• On-demand ramp up of capacity (6 mins.)
• Subscriber alert push delivered
• Mass response traffic handled (followed by ramp down)
Cost Aware Architecting to Reduce costs of EC2
BuUuk for Singapore Press Holding (SPH)
2. Auto-Scaling done Right with Real Time reaction response
Cost Aware Architecting to Reduce costs of EC2
Straits TimesBuuuk
2. Auto-Scaling done Right with Real Time reaction response
Cost Aware Architecting to Reduce costs of EC2
2. Auto-Scaling done Right with Real Time reaction response
Cost Aware Architecting to Reduce costs of EC2
2. Auto-Scaling done Right with Real Time reaction response
Cost Aware Architecting to Reduce costs of EC2
2. Auto-Scaling done Right with Real Time reaction response
Cost Aware Architecting to Reduce costs of EC2
3. Leverage Managed Services
Cost Aware Architecting to Reduce costs of EC2
Rabbit MQ, MSMQ
Cron
Running a mail server
Running a NoSQL cluster
Running MySQL on EC2
Memcached
Encoding Server
VS
Simple Queuing Service
Simple Workflow Service
Simple Email Service
Dynamo DB
Relational Database Service
ElastiCache
Elastic Transcoder
4. Sizing your Application for AWS
Cost Aware Architecting to Reduce costs of EC2
256
128
64
32
16
8
4
2
1
1 2 4 8 16 32 64 128 256
High I/O 4XL 60.5 GB
35 EC2 Compute Units
16 virtual cores
2*1024 GB SSD-based local instance storage
EC2 Compute Units
Memory(GB)
Small 1.7 GB,
1 EC2 Compute Unit
1 virtual core
Micro 613 MB
Up to 2 ECUs (for
short bursts)
Large 7.5 GB
4 EC2 Compute Units
2 virtual cores
$0.32/0.46
Hi-Mem XL 17.1 GB
6.5 EC2 Compute Units
2 virtual cores
Hi-Mem 2XL 34.2 GB
13 EC2 Compute Units
4 virtual cores
Hi-Mem 4XL 68.4 GB
26 EC2 Compute Units
8 virtual cores
High-CPU Med 1.7 GB
5 EC2 Compute Units
2 virtual cores
High-CPU XL 7 GB
20 EC2 Compute Units
8 virtual cores
Medium 3.7 GB,
2 EC2 Compute Units
1 virtual core
M3 XL 15 GB
13 EC2 Compute Units
4 virtual cores
EBS storage only
M3 2XL 30 GB
26 EC2 Compute Units
8 virtual cores
EBS storage only
Extra Large 15 GB
8 EC2 Compute Units
4 virtual cores
10 GB
Inter-Instance
Network
Cluster GPU 4XL 22 GB
33.5 EC2 Compute Units,
2 x NVIDIA Tesla “Fermi”
M2050 GPUs
Cluster Compute 4XL 23 GB
33.5 EC2 Compute Units
Cluster Compute 8XL 60.5 GB
88 EC2 Compute Units
High Storage 8XL 117 GB
35 EC2 Compute Units,
24 * 2 TB ephemeral drives
10 GB Ethernet
Hi-Mem Cluster Compute 8XL 244 GB
88 EC2 Compute Units
16 virtual cores
240 GB SSD
5. Storing derivative objects in S3 „Reduced Redundancy‟
• Original vs. derived assets : 33% savings
• Single reference and consistency
• Control, accurate logs and tracking
Cost Aware Architecting to Reduce costs of S3
Reduced Redundancy Storage
„RRS‟
6. Read Replicas and/or ElastiCache („Database Smarts‟)
• Scale out and share work
• Optimal performance, minimize load
• Enhance reliability, ensure data safety
• Cost reduction
Cost Aware Architecting to Reduce costs of DB
7. Rapid proto-typing & Lean Dev/Test
• Inexpensive idea validation
• Seamless switch over and versioning
• Rapid dev / test agility
Cost Aware Architecting to Reduce costs of Test/Dev
Bringing this all Together
Enterprise software provider in APAC
Focused on SaaS for storage, security, collaboration, etc.
Backed by leading VC’s in the region
Strong growth – winning customers globally
Focused on profitability & reducing unit costs
Worked closely with the AWS team to optimize its architecture
Margin
Growth
-10%
price drop
in S3
-20%
RI purchase
-22%
Migration
Cassandra
to Dynamo
-18%
Price drop in
S3 of 25%
54%
reduction in
unit costs
“Based on a True Story”
New Customers
Amazon EC2
Amazon RDS
Amazon ELB
Amazon S3
Amazon EBS
For All Customers
Amazon SQS/SNS
Amazon DynamoDB
Amazon SES
Amazon SWF
And more…
AWS Elastic Beanstalk
AWS CloudFormation
AWS IAM
Auto Scaling
Consolidated Billing
No Charge for
Inbound Data Transfer
Data Transfer between
Instances within an
Availability Zone
Free Usage Tier
Did you know?
Free Services Data Transfer
Trusted Advisor
Survey
Please fill out the survey at the end
for
$25 USD in AWS Credits
Thank You
Joe Ziegler
Startup Business Development Manager
APAC
@jiyosub
APAC Webinar Series | AWS 201

More Related Content

What's hot

Optimising TCO with AWS at Websummit Dublin
Optimising TCO with AWS at Websummit DublinOptimising TCO with AWS at Websummit Dublin
Optimising TCO with AWS at Websummit DublinAmazon Web Services
 
Optimizing Costs and Efficiency of AWS Services
Optimizing Costs and Efficiency of AWS ServicesOptimizing Costs and Efficiency of AWS Services
Optimizing Costs and Efficiency of AWS ServicesAmazon Web Services
 
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...Amazon Web Services
 
Optimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudOptimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudAmazon Web Services
 
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Amazon Web Services
 
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...Amazon Web Services
 
Best Practices for AWS Cloud Cost Optimization
Best Practices for AWS Cloud Cost OptimizationBest Practices for AWS Cloud Cost Optimization
Best Practices for AWS Cloud Cost OptimizationCloudyn
 
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014Amazon Web Services
 
Migrating Enterprise Applications to AWS
Migrating Enterprise Applications to AWSMigrating Enterprise Applications to AWS
Migrating Enterprise Applications to AWSTom Laszewski
 
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...Amazon Web Services
 
Getting Started with Amazon DynamoDB
Getting Started with Amazon DynamoDBGetting Started with Amazon DynamoDB
Getting Started with Amazon DynamoDBAmazon Web Services
 
Optimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudOptimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudAmazon Web Services
 
SRV301 Getting the most Bang for your buck with #EC2 #Winning
SRV301 Getting the most Bang for your buck with #EC2 #WinningSRV301 Getting the most Bang for your buck with #EC2 #Winning
SRV301 Getting the most Bang for your buck with #EC2 #WinningAmazon Web Services
 
Workload-Aware: Auto-Scaling A new paradigm for Big Data Workloads
Workload-Aware: Auto-Scaling A new paradigm for Big Data WorkloadsWorkload-Aware: Auto-Scaling A new paradigm for Big Data Workloads
Workload-Aware: Auto-Scaling A new paradigm for Big Data WorkloadsVasu S
 
2016 Utah Cloud Summit: TCO & Cost Optimization
2016 Utah Cloud Summit: TCO & Cost Optimization2016 Utah Cloud Summit: TCO & Cost Optimization
2016 Utah Cloud Summit: TCO & Cost Optimization1Strategy
 
Using the AWS TCO Calculator - Rogers
Using the AWS TCO Calculator - RogersUsing the AWS TCO Calculator - Rogers
Using the AWS TCO Calculator - RogersAmazon Web Services
 
APN Partner Webinar - Having Effective and Critical TCO Conversations
APN Partner Webinar - Having Effective and Critical TCO ConversationsAPN Partner Webinar - Having Effective and Critical TCO Conversations
APN Partner Webinar - Having Effective and Critical TCO ConversationsAmazon Web Services
 
AWS Cost Optimization Strategy
AWS Cost Optimization StrategyAWS Cost Optimization Strategy
AWS Cost Optimization StrategyRobert Sell
 

What's hot (20)

Optimising TCO with AWS at Websummit Dublin
Optimising TCO with AWS at Websummit DublinOptimising TCO with AWS at Websummit Dublin
Optimising TCO with AWS at Websummit Dublin
 
Cost Optimisation on AWS
Cost Optimisation on AWSCost Optimisation on AWS
Cost Optimisation on AWS
 
Optimizing Costs and Efficiency of AWS Services
Optimizing Costs and Efficiency of AWS ServicesOptimizing Costs and Efficiency of AWS Services
Optimizing Costs and Efficiency of AWS Services
 
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...
The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for th...
 
Optimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudOptimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS Cloud
 
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
 
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...
Optimizing for Cost in the AWS Cloud - 5 Ways to Further Save - AWS Summit 20...
 
Best Practices for AWS Cloud Cost Optimization
Best Practices for AWS Cloud Cost OptimizationBest Practices for AWS Cloud Cost Optimization
Best Practices for AWS Cloud Cost Optimization
 
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014
(ENT301) Understanding Total Cost of Ownership on AWS | AWS re:Invent 2014
 
Migrating Enterprise Applications to AWS
Migrating Enterprise Applications to AWSMigrating Enterprise Applications to AWS
Migrating Enterprise Applications to AWS
 
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...
AWS Summit Auckland 2014 | Moving to the Cloud. What does it Mean to your Bus...
 
Getting Started with Amazon DynamoDB
Getting Started with Amazon DynamoDBGetting Started with Amazon DynamoDB
Getting Started with Amazon DynamoDB
 
Optimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS CloudOptimizing Total Cost of Ownership for the AWS Cloud
Optimizing Total Cost of Ownership for the AWS Cloud
 
SRV301 Getting the most Bang for your buck with #EC2 #Winning
SRV301 Getting the most Bang for your buck with #EC2 #WinningSRV301 Getting the most Bang for your buck with #EC2 #Winning
SRV301 Getting the most Bang for your buck with #EC2 #Winning
 
Workload-Aware: Auto-Scaling A new paradigm for Big Data Workloads
Workload-Aware: Auto-Scaling A new paradigm for Big Data WorkloadsWorkload-Aware: Auto-Scaling A new paradigm for Big Data Workloads
Workload-Aware: Auto-Scaling A new paradigm for Big Data Workloads
 
2016 Utah Cloud Summit: TCO & Cost Optimization
2016 Utah Cloud Summit: TCO & Cost Optimization2016 Utah Cloud Summit: TCO & Cost Optimization
2016 Utah Cloud Summit: TCO & Cost Optimization
 
Using the AWS TCO Calculator - Rogers
Using the AWS TCO Calculator - RogersUsing the AWS TCO Calculator - Rogers
Using the AWS TCO Calculator - Rogers
 
APN Partner Webinar - Having Effective and Critical TCO Conversations
APN Partner Webinar - Having Effective and Critical TCO ConversationsAPN Partner Webinar - Having Effective and Critical TCO Conversations
APN Partner Webinar - Having Effective and Critical TCO Conversations
 
Analytics on AWS - IP Expo 2013
Analytics on AWS - IP Expo 2013Analytics on AWS - IP Expo 2013
Analytics on AWS - IP Expo 2013
 
AWS Cost Optimization Strategy
AWS Cost Optimization StrategyAWS Cost Optimization Strategy
AWS Cost Optimization Strategy
 

Similar to How to Reduce your Spend on AWS

AWS Cloud Kata | Bangkok - Getting to Profitability
AWS Cloud Kata | Bangkok - Getting to ProfitabilityAWS Cloud Kata | Bangkok - Getting to Profitability
AWS Cloud Kata | Bangkok - Getting to ProfitabilityAmazon Web Services
 
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter KempsAWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter KempsAmazon Web Services
 
AWS Cloud Kata | Manila - Getting to Profitability on AWS
AWS Cloud Kata | Manila - Getting to Profitability on AWSAWS Cloud Kata | Manila - Getting to Profitability on AWS
AWS Cloud Kata | Manila - Getting to Profitability on AWSAmazon Web Services
 
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우Amazon Web Services Korea
 
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWS
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWSAWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWS
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWSAmazon Web Services
 
Getting the most Bang for your Buck with #EC2 #Winning
Getting the most Bang for your Buck with #EC2 #WinningGetting the most Bang for your Buck with #EC2 #Winning
Getting the most Bang for your Buck with #EC2 #WinningAmazon Web Services
 
Improve your TCO and Optimise your Cloud Spend
Improve your TCO and Optimise your Cloud SpendImprove your TCO and Optimise your Cloud Spend
Improve your TCO and Optimise your Cloud SpendAmazon Web Services
 
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCO
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCOAWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCO
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCOAmazon Web Services
 
Cloud Economics: The Financial Case for Cloud Migration
Cloud Economics: The Financial Case for Cloud MigrationCloud Economics: The Financial Case for Cloud Migration
Cloud Economics: The Financial Case for Cloud MigrationAmazon Web Services
 
AWS Cost Optimization
AWS Cost OptimizationAWS Cost Optimization
AWS Cost OptimizationMiles Ward
 
Cost optimization at scale toronto v3
Cost optimization at scale toronto v3Cost optimization at scale toronto v3
Cost optimization at scale toronto v3Amazon Web Services
 
AWS Cloud Kata | Taipei - Getting to Profitability
AWS Cloud Kata | Taipei - Getting to ProfitabilityAWS Cloud Kata | Taipei - Getting to Profitability
AWS Cloud Kata | Taipei - Getting to ProfitabilityAmazon Web Services
 
AWS Cloud cost optimization
AWS Cloud cost optimizationAWS Cloud cost optimization
AWS Cloud cost optimizationYogesh Sharma
 
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Amazon Web Services
 

Similar to How to Reduce your Spend on AWS (20)

AWS Cloud Kata | Bangkok - Getting to Profitability
AWS Cloud Kata | Bangkok - Getting to ProfitabilityAWS Cloud Kata | Bangkok - Getting to Profitability
AWS Cloud Kata | Bangkok - Getting to Profitability
 
Achieving Profitability on AWS
Achieving Profitability on AWSAchieving Profitability on AWS
Achieving Profitability on AWS
 
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter KempsAWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps
AWS Summit 2013 | India - Running Lean with Optimized Architecture, Pieter Kemps
 
AWS Cloud Kata | Manila - Getting to Profitability on AWS
AWS Cloud Kata | Manila - Getting to Profitability on AWSAWS Cloud Kata | Manila - Getting to Profitability on AWS
AWS Cloud Kata | Manila - Getting to Profitability on AWS
 
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
 
Cost Optimisation on AWS
Cost Optimisation on AWSCost Optimisation on AWS
Cost Optimisation on AWS
 
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWS
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWSAWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWS
AWS Cloud Kata 2013 | Singapore - Achieving Profitability on AWS
 
Getting the most Bang for your Buck with #EC2 #Winning
Getting the most Bang for your Buck with #EC2 #WinningGetting the most Bang for your Buck with #EC2 #Winning
Getting the most Bang for your Buck with #EC2 #Winning
 
Penny Pinching at Scale
Penny Pinching at ScalePenny Pinching at Scale
Penny Pinching at Scale
 
Improve your TCO and Optimise your Cloud Spend
Improve your TCO and Optimise your Cloud SpendImprove your TCO and Optimise your Cloud Spend
Improve your TCO and Optimise your Cloud Spend
 
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCO
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCOAWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCO
AWS Summit Tel Aviv - Enterprise Track - Cost Optimization & TCO
 
Cloud Economics: The Financial Case for Cloud Migration
Cloud Economics: The Financial Case for Cloud MigrationCloud Economics: The Financial Case for Cloud Migration
Cloud Economics: The Financial Case for Cloud Migration
 
Cloudonomics
CloudonomicsCloudonomics
Cloudonomics
 
AWS Cost Optimization
AWS Cost OptimizationAWS Cost Optimization
AWS Cost Optimization
 
Cost optimization at scale toronto v3
Cost optimization at scale toronto v3Cost optimization at scale toronto v3
Cost optimization at scale toronto v3
 
Optimize Cost Efficiency on AWS
Optimize Cost Efficiency on AWSOptimize Cost Efficiency on AWS
Optimize Cost Efficiency on AWS
 
AWS Cloud Kata | Taipei - Getting to Profitability
AWS Cloud Kata | Taipei - Getting to ProfitabilityAWS Cloud Kata | Taipei - Getting to Profitability
AWS Cloud Kata | Taipei - Getting to Profitability
 
Value, TCO & Cost Optimisation
Value, TCO & Cost OptimisationValue, TCO & Cost Optimisation
Value, TCO & Cost Optimisation
 
AWS Cloud cost optimization
AWS Cloud cost optimizationAWS Cloud cost optimization
AWS Cloud cost optimization
 
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
Get the Most Out of Amazon EC2: A Deep Dive on Reserved, On-Demand, and Spot ...
 

Recently uploaded

DevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenDevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenHervé Boutemy
 
Take control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test SuiteTake control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test SuiteDianaGray10
 
DSPy a system for AI to Write Prompts and Do Fine Tuning
DSPy a system for AI to Write Prompts and Do Fine TuningDSPy a system for AI to Write Prompts and Do Fine Tuning
DSPy a system for AI to Write Prompts and Do Fine TuningLars Bell
 
How AI, OpenAI, and ChatGPT impact business and software.
How AI, OpenAI, and ChatGPT impact business and software.How AI, OpenAI, and ChatGPT impact business and software.
How AI, OpenAI, and ChatGPT impact business and software.Curtis Poe
 
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsScanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsRizwan Syed
 
TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024Lonnie McRorey
 
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)Mark Simos
 
From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .Alan Dix
 
DevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsDevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsSergiu Bodiu
 
"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii Soldatenko"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii SoldatenkoFwdays
 
Human Factors of XR: Using Human Factors to Design XR Systems
Human Factors of XR: Using Human Factors to Design XR SystemsHuman Factors of XR: Using Human Factors to Design XR Systems
Human Factors of XR: Using Human Factors to Design XR SystemsMark Billinghurst
 
Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxArtificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxhariprasad279825
 
How to write a Business Continuity Plan
How to write a Business Continuity PlanHow to write a Business Continuity Plan
How to write a Business Continuity PlanDatabarracks
 
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationConnect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationSlibray Presentation
 
Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024Enterprise Knowledge
 
Developer Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQLDeveloper Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQLScyllaDB
 
Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024Scott Keck-Warren
 
Gen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdfGen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdfAddepto
 
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo DayH2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo DaySri Ambati
 

Recently uploaded (20)

DevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache MavenDevoxxFR 2024 Reproducible Builds with Apache Maven
DevoxxFR 2024 Reproducible Builds with Apache Maven
 
Take control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test SuiteTake control of your SAP testing with UiPath Test Suite
Take control of your SAP testing with UiPath Test Suite
 
DSPy a system for AI to Write Prompts and Do Fine Tuning
DSPy a system for AI to Write Prompts and Do Fine TuningDSPy a system for AI to Write Prompts and Do Fine Tuning
DSPy a system for AI to Write Prompts and Do Fine Tuning
 
How AI, OpenAI, and ChatGPT impact business and software.
How AI, OpenAI, and ChatGPT impact business and software.How AI, OpenAI, and ChatGPT impact business and software.
How AI, OpenAI, and ChatGPT impact business and software.
 
Scanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL CertsScanning the Internet for External Cloud Exposures via SSL Certs
Scanning the Internet for External Cloud Exposures via SSL Certs
 
TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024TeamStation AI System Report LATAM IT Salaries 2024
TeamStation AI System Report LATAM IT Salaries 2024
 
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
Tampa BSides - Chef's Tour of Microsoft Security Adoption Framework (SAF)
 
From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .From Family Reminiscence to Scholarly Archive .
From Family Reminiscence to Scholarly Archive .
 
DevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platformsDevEX - reference for building teams, processes, and platforms
DevEX - reference for building teams, processes, and platforms
 
"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii Soldatenko"Debugging python applications inside k8s environment", Andrii Soldatenko
"Debugging python applications inside k8s environment", Andrii Soldatenko
 
Human Factors of XR: Using Human Factors to Design XR Systems
Human Factors of XR: Using Human Factors to Design XR SystemsHuman Factors of XR: Using Human Factors to Design XR Systems
Human Factors of XR: Using Human Factors to Design XR Systems
 
Artificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptxArtificial intelligence in cctv survelliance.pptx
Artificial intelligence in cctv survelliance.pptx
 
How to write a Business Continuity Plan
How to write a Business Continuity PlanHow to write a Business Continuity Plan
How to write a Business Continuity Plan
 
E-Vehicle_Hacking_by_Parul Sharma_null_owasp.pptx
E-Vehicle_Hacking_by_Parul Sharma_null_owasp.pptxE-Vehicle_Hacking_by_Parul Sharma_null_owasp.pptx
E-Vehicle_Hacking_by_Parul Sharma_null_owasp.pptx
 
Connect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck PresentationConnect Wave/ connectwave Pitch Deck Presentation
Connect Wave/ connectwave Pitch Deck Presentation
 
Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024Designing IA for AI - Information Architecture Conference 2024
Designing IA for AI - Information Architecture Conference 2024
 
Developer Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQLDeveloper Data Modeling Mistakes: From Postgres to NoSQL
Developer Data Modeling Mistakes: From Postgres to NoSQL
 
Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024Advanced Test Driven-Development @ php[tek] 2024
Advanced Test Driven-Development @ php[tek] 2024
 
Gen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdfGen AI in Business - Global Trends Report 2024.pdf
Gen AI in Business - Global Trends Report 2024.pdf
 
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo DayH2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
H2O.ai CEO/Founder: Sri Ambati Keynote at Wells Fargo Day
 

How to Reduce your Spend on AWS

  • 1. How to Reduce Your Spend Joe Ziegler Startup Business Development Manager APAC @jiyosub On AWS APAC Webinar Series | AWS 201
  • 2. How do the benefits of AWS help to reduce my spend?
  • 3. Elastic On Demand Pay as you go Focus on YOUR business
  • 5. On and Off Fast Growth Variable Peaks Predictable Peaks Elastic Capacity
  • 6. On and Off Fast Growth Predictable PeaksVariable Peaks WASTE CUSTOMER DISSATISFACTION Elastic Capacity
  • 7. When you turn off your cloud resources, you actually stop paying for them
  • 8. Elastic cloud capacity Traditional IT capacity Your IT needs Time Capacity Elastic Capacity
  • 9. Fast GrowthOn and Off Predictable peaksVariable peaks Elastic Capacity
  • 10.
  • 11. Hardware, Software, Database, Network : Procurement, Installation, Maintenance and Administration Costs
  • 12. Economies of Scale Pricing Models Cost Aware Architecting
  • 13. Economies of Scale Pricing Models Cost Aware Architecting
  • 14. Powering the Most Popular Internet Businesses
  • 15. Free steak campaign Facebook page Mars exploration ops Consumer social app Ticket pricing optimization SAP & Sharepoint Securities Trading Data Archiving Gene sequencing Marketing web site Interactive TV apps Financial markets analytics R&D data analysis Consumer social app Big data analytics Web site & media sharing Disaster recovery Media streaming Web and mobile apps Streaming webcasts Facebook app Consumer social app Every Imaginable Use Case
  • 16. Every Day… AWS adds the equivalent server capacity to power Amazon when it was a global, $5.2B enterprise in 2003 2003 $5.2B retail business 7,800 employees A whole lot of servers…
  • 17. The AWS Price Reduction Philosophy Ecosystem Global Footprint New Features New Services Infrastructure Innovation More AWS Usage More Infrastructure Economies of Scale Lower Infrastructure Costs Reduced Prices More Customers
  • 18. Economies of Scale Pricing Models Cost Aware Architecting
  • 19. AWS Pricing Philosophy • Pay as you go – No minimum commitments or long-term contracts required – Capex -> Opex – Turn off when you don‟t need it • Pay less per unit when you use more – Tiered Pricing and Volume Discounts • Pay even less when you reserve – Reserved pricing • Pay even less as AWS grows – Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricing
  • 20. Pay less when you use more
  • 21. On-Demand Pay for compute capacity by the hour with no long- term commitments For spiky workloads, or to define needs Cost Optimization using different purchase models Reserved Make a low, one- time payment and receive a significant discount on the hourly charge For committed utilization Spot Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand For time-insensitive or transient workloads Free Tier Get Started on AWS with free usage & no commitment For POCs and getting started
  • 23.
  • 24.
  • 25. Utilise the Free Tier Time Scale Scenario Small team with initial idea for Mobile app 3 months to get to launch Unknown customer/problem/solution No cash….
  • 26. • Internal testing with your team • 2 Tier Web - Database Servers • Use t1.micro Instances Dev / Test Environment Time Scale Average Spend $0 p/m
  • 27. • Release to small group of ‘core testers’ • 2 Tier Web & Database Servers • 2 x t1.micro Instances Alpha Release Time Scale Average Spend $15 p/m
  • 28. • First public release – limited audience • Master / Slave DB setup • m1.small Instances • Auto-Scaling Instances (2 Instance minimum) Beta Release / MVP Time Scale Average Spend $235 p/m
  • 29. Getting to MVP for $250 Time Scale Total Spend to MVP $250 $235$15$0 • 3 months dev/test/release • Serving Beta customers • Ready for full production and scale
  • 30. Reserved Instance Pricing Make a low, one-time payment and receive a significant discount on the hourly charge For committed utilization •Light Utilization RI •Medium Utilization RI •High Utilization RI •1-year •3-year 2 Terms3 Versions
  • 31. Reserved Instance Pricing Utilization RI option Savings over On-Demand <10% On-Demand 10% - 40% Light Utilization RI Up to 56% 40% - 75% Medium Utilization RI Up to 66% >75% Heavy Utilization RI Up to 71%
  • 32.
  • 33.
  • 36. February 2013 48.7 million users globally Raised $200M (Total = $338M) $2.5B valuation
  • 37. • Most traffic happens in the afternoons and evenings, so they reduce the number of instances at night by 40%. • At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as little as $15 an hour. Saving per hour = 71%
  • 38. Save more money by using Spot Instances Up to 85% savings over On Demand pricing Spot market for under- utilized capacity Requested Bid Price and Pay as you go Spot Price < On-Demand Price
  • 39. Use Case Types of Applications Batch Processing Generic background processing (scale out computing) Hadoop Hadoop/MapReduce processing type jobs (e.g. Search, Big Data, etc.) 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, web sites, 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 Use Cases for Spot Pricing
  • 40.
  • 41. Optimizing Video Transcoding Workloads for a FREEMIUM model Free Offering Optimize for reducing cost Acceptable Delay Limits Implementation – Leverage spot pricing – Maximum Bid Price – < On-demand Rate – Use on-demand Instances, if delay Get strongly reduced price for your workload Premium Offering Optimized for Faster response No Delays Implementation – Invest in Reserved Instances – Use on-demand for Elasticity Get Instant Capacity for higher price
  • 42. Economies of Scale Pricing Models Cost Aware Architecting
  • 43. “Give me 4 fault tolerant algorithms and I can pick the best one almost with my eyes closed. If you then ask me which one is best for the business, in terms of dollar costs, I would be clueless...” Werner Vogels, CTO, Amazon
  • 44. Cost optimization through „Cost Aware Architecting‟ …by leveraging:Reduce Cost of… Compute 1. S3 & CloudFront for Caching & Offloading Storage 5. Storing derivative objects in S3 „Reduced Redundancy‟ Database 6. Read Replicas and/or ElastiCache Test & Dev 7. Rapid proto-typing & Lean Dev/Test 2. Auto-Scaling done Right 3. Leverage Managed Services 4. Sizing your Application for AWS
  • 45. 1. S3 & CloudFront for Caching & Offloading • Reduce your compute demand and costs • Improve end-user experience • Increase reliability and durability Cost Aware Architecting to Reduce costs of EC2
  • 46. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  • 47. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  • 48. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  • 49. 1. S3 & CloudFront for Caching & Offloading Cost Aware Architecting to Reduce costs of EC2
  • 50.
  • 51. 2. Auto-Scaling done Right with Real Time reaction response • Elastic Load Balancing and (event-driven) Auto Scaling • Notification of pending news flash (with audible alarm) • On-demand ramp up of capacity (6 mins.) • Subscriber alert push delivered • Mass response traffic handled (followed by ramp down) Cost Aware Architecting to Reduce costs of EC2
  • 52. BuUuk for Singapore Press Holding (SPH)
  • 53. 2. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2 Straits TimesBuuuk
  • 54. 2. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  • 55. 2. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  • 56. 2. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  • 57. 2. Auto-Scaling done Right with Real Time reaction response Cost Aware Architecting to Reduce costs of EC2
  • 58. 3. Leverage Managed Services Cost Aware Architecting to Reduce costs of EC2 Rabbit MQ, MSMQ Cron Running a mail server Running a NoSQL cluster Running MySQL on EC2 Memcached Encoding Server VS Simple Queuing Service Simple Workflow Service Simple Email Service Dynamo DB Relational Database Service ElastiCache Elastic Transcoder
  • 59. 4. Sizing your Application for AWS Cost Aware Architecting to Reduce costs of EC2
  • 60. 256 128 64 32 16 8 4 2 1 1 2 4 8 16 32 64 128 256 High I/O 4XL 60.5 GB 35 EC2 Compute Units 16 virtual cores 2*1024 GB SSD-based local instance storage EC2 Compute Units Memory(GB) Small 1.7 GB, 1 EC2 Compute Unit 1 virtual core Micro 613 MB Up to 2 ECUs (for short bursts) Large 7.5 GB 4 EC2 Compute Units 2 virtual cores $0.32/0.46 Hi-Mem XL 17.1 GB 6.5 EC2 Compute Units 2 virtual cores Hi-Mem 2XL 34.2 GB 13 EC2 Compute Units 4 virtual cores Hi-Mem 4XL 68.4 GB 26 EC2 Compute Units 8 virtual cores High-CPU Med 1.7 GB 5 EC2 Compute Units 2 virtual cores High-CPU XL 7 GB 20 EC2 Compute Units 8 virtual cores Medium 3.7 GB, 2 EC2 Compute Units 1 virtual core M3 XL 15 GB 13 EC2 Compute Units 4 virtual cores EBS storage only M3 2XL 30 GB 26 EC2 Compute Units 8 virtual cores EBS storage only Extra Large 15 GB 8 EC2 Compute Units 4 virtual cores 10 GB Inter-Instance Network Cluster GPU 4XL 22 GB 33.5 EC2 Compute Units, 2 x NVIDIA Tesla “Fermi” M2050 GPUs Cluster Compute 4XL 23 GB 33.5 EC2 Compute Units Cluster Compute 8XL 60.5 GB 88 EC2 Compute Units High Storage 8XL 117 GB 35 EC2 Compute Units, 24 * 2 TB ephemeral drives 10 GB Ethernet Hi-Mem Cluster Compute 8XL 244 GB 88 EC2 Compute Units 16 virtual cores 240 GB SSD
  • 61. 5. Storing derivative objects in S3 „Reduced Redundancy‟ • Original vs. derived assets : 33% savings • Single reference and consistency • Control, accurate logs and tracking Cost Aware Architecting to Reduce costs of S3 Reduced Redundancy Storage „RRS‟
  • 62. 6. Read Replicas and/or ElastiCache („Database Smarts‟) • Scale out and share work • Optimal performance, minimize load • Enhance reliability, ensure data safety • Cost reduction Cost Aware Architecting to Reduce costs of DB
  • 63.
  • 64.
  • 65.
  • 66. 7. Rapid proto-typing & Lean Dev/Test • Inexpensive idea validation • Seamless switch over and versioning • Rapid dev / test agility Cost Aware Architecting to Reduce costs of Test/Dev
  • 67. Bringing this all Together Enterprise software provider in APAC Focused on SaaS for storage, security, collaboration, etc. Backed by leading VC’s in the region Strong growth – winning customers globally Focused on profitability & reducing unit costs Worked closely with the AWS team to optimize its architecture
  • 68. Margin Growth -10% price drop in S3 -20% RI purchase -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25% 54% reduction in unit costs “Based on a True Story”
  • 69. New Customers Amazon EC2 Amazon RDS Amazon ELB Amazon S3 Amazon EBS For All Customers Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more… AWS Elastic Beanstalk AWS CloudFormation AWS IAM Auto Scaling Consolidated Billing No Charge for Inbound Data Transfer Data Transfer between Instances within an Availability Zone Free Usage Tier Did you know? Free Services Data Transfer
  • 71. Survey Please fill out the survey at the end for $25 USD in AWS Credits
  • 72. Thank You Joe Ziegler Startup Business Development Manager APAC @jiyosub APAC Webinar Series | AWS 201

Editor's Notes

  1. Traditional IT capacity planning, by the very nature of the logistics of acquiring hardware, installation, configuration and networking, has to take a forward looking view. Complex estimates of the utilisation of resources are made in order to handle the peaks you anticipate. Shown here in red is the level of resources a business needs to install in order to handle the peak needs of a service. Demand on that service might vary by the time of day, week, month or year, or be driven by exceptional demand driven by promotions or seasonal events.
  2. There are many patterns of usage that make capacity planning a complex science. From on and off usage patterns, where capacity is only needed at fixed times and not at others, fast growth where an online service becomes so successful that step changes in traditional capacity need to be added, variable peaks - where you just don&apos;t know what demand will be when and best guess applies, to predictable peaks such as during commute times as customers use mobile devices to access your service.
  3. Each of these examples is typified by wasted IT resources. Where you planned correctly, the IT resources will be over provisioned so that services are not impacted and customers lost during high demand. In the worst cases, that capacity will not be enough, and customer dissatisfaction will result. Most businesses have a mix differing patterns at play, and much time and resource is dedicated to planning and management to ensure services are always available. And when a new online service is really successful, you often can&apos;t ship in new capacity fast enough. Some say that&apos;s a nice problem to have, but those that have lived through it will tell you otherwise!
  4. Only happens in the cloud
  5. Elasticity with AWS enables your provisioned capacity to follow demand. To scale up when needed and down when not. And as you only pay for what is used, the savings can be significant.
  6. You control how and when your service scales, so you can closely match increasing load in small increments, scale up fast when needed, and cool off and reduce the resources being used at any time of day. Even the most variable and complex demand patterns can be matched with the right amount of capacity - all automatically handled by AWS.
  7. Our strategy of pricing each service independently gives you tremendous flexibility to choose the services you need for each project and to pay only for what you usePay as you goPay less per unit when you use morePay even less when you reserve Pay even less as AWS grows
  8. Personnel costs include the cost of the sizable IT infrastructure teams that are needed to handle the “heavy lifting” – managing heterogeneous hardware and the related supply chain, staying up-to-date on data center design, negotiating contracts, dealing with legacy software, operating data centers, moving facilities, scaling and managing physical growth, etc. These are all the things that an enterprise needs to do well if it wants to achieve low infrastructure costs in the areas discussed above. For example: Hardware procurement teams are needed, who have to spend a lot of time evaluating hardware, negotiating, holding hardware vendor meetings, managing delivery and installation, etc. It’s expensive to have a staff with sufficient knowledge to do this well.Data center design and build teams are needed to create and maintain reliable and cost-effective facilities.Operations staff is needed 24/7/365 in each facility to manage MySQL Databases. This staff is responsible for installing, patching, upgrades, migration, backups, snapshots and recovery of databases, ensuring availability, trouble shooting and performance enhancements.Networking teams are needed for running a highly available network. Expertise is needed to design, debug, scale, and operate the network and deal with the external relationships necessary to have cost-effective internet transit.Security personnel are needed at all phases of the design, build, and operations process.
  9. While the number and types of services offered by AWS has increased dramatically, our philosophy on pricing has not changed: at the end of each month, you pay only for what you use, and you can start or stop using a product at any time. No long-term contracts are requiredPay as you go. No required minimum commitments, no longterm contracts. This flexibility minimizes the need for detailed resource planning.  Pay per use. Pay only for what you use. With AWS, there’s no need to pay up-front for excess capacity or get penalized for under-planning. For compute resources, you pay on an hourlybasis from the time you launch a resource until the time you terminate it. For data storage and transfer, you pay on a per gigabyte basis. We charge based on the underlying infrastructure and services you consume. Pay less by using more. For storage and data transfer, pricing is tiered. The more you use, the less you pay per gigabyte.  Pay even less when you reserve. For certain products, you can invest in reserved capacity. In that case, you pay a one-time low upfront fee, and your on-demand rate is reduced by 28% to 58%. Custom pricing. What if none of our pricing models work for your project? Custom pricing is available for high volume projects with unique requirements. For assistance, contact us to speak with a sales representative.
  10. We have a variety of purchase options that allow you to match your workload to the right model, and we’re happy to help you optimize your bill by working with you to choose the right mix of several of these.
  11. ■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.
  12. Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 35 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
  13. Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 35 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
  14. Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 35 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
  15. Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 35 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
  16. Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 35 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
  17. Perx = mobile loyalty program. iPhone app for loyalty in restaurants, bars etc. Location Based = tells you when you walk around where to get a deal.Logo’s for all the rastaurants is static content. When they changed to S3 + Cloudfront, user experience went up, users loved it. Easier to manage as they only had to manage changes, new ones etc ONCEThen, we started offering CloudFront for Dynamic Content. For Perx, that works for all the different offers that restaurants put out there on a weekly basis. “What is the best deal today at Subway or Starbucks?”. These can now be cached at the edge as well. Offload dynamic calls to your server, thereby again lowering the load on your servers, and your costs!
  18. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  19. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  20. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  21. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  22. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  23. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  24. Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
  25. For many content, media files, etc. derivatives are being created. For examples, thumbnails, versions for iOS, Android, etc.These files can be re-generated from the originalOr: you do have the source files elsewhere.In that case: you can consider S3 Reduced Redundancy. Not 11 9’s, but 4 9’s. Still 99.99% durability, which is 400 times more than a normal harddrive. BUT – 33% cheaper than the standard S3Improved consistency and logging / tracking as you exactly know where the content is, who calls it, how often, etc.
  26. If you can add a number of read replicas, you can offload a number of tasks such as reportingYou do not need to peak your Master and reduce the size of your entire database fleet. You can further offload certain activities to other services such as DynamoDB or ElastiCacheYou can even make your EC2 instances smart, so they know the read replicas are there and when to ping those
  27. A first option = read replicas to deal with API calls to the databaseAll reads go there, not to the Master so you can avoid the Master from needing to grow and growWhen you are really smart, you can even auto-scale the Read Replicas to only have them when usage increases
  28. Additional offload is ElasticCaheSometimes, 90% of calls can be offloaded to ElasticCache as the calls are the same CloudWatch can actually tell you the CPU utilization of your RDS so if its low, you can reduce the size
  29. Copy-paste entire infrastructure &amp; try out bothLeverage CloudFormation to describe a stack and create templates to automate process of spinning up new stacksYou can copy-paste, change a few things in the copied environment to test whether it works betterThis allows for rapid dev &amp; test and is often used for optimization of performance &amp; conversion metrics: A/B TESTINGUsed by Obama in campaign, but also extensively in gaming