AWS provides you several pricing options that can help you significantly reduce your overall IT cost, including On-Demand Instances, Spot Instances, and Reserved Instances. This session covers high-level architectures and when to use and not to use each of the pricing models for components of those architectures. We walk through several customer examples to illustrate when to use each pricing option. Additionally, we walk through tools that may be useful to determine when to use each pricing model. This session is aimed at technically savvy managers and engineers who need to reduce their cloud spending

2. aws.amazon.com/webinars/apac/webinar-week | #AWSWebinarWeek

3. Maintaining Performance &
Availability While Lowering Costs
with AWS
Dean Samuels
Solutions Architect Manager

4. v
What You’ll Get Out of This Session
• A lower AWS bill
• Maintain high performance while minimising cost
• A more scalable, robust, dynamic architecture
• More time to innovate
• Real-world customer examples
• Easy to implement

5. Pay as you Go, No Upfront
Investment
Replace capital expenditure with
variable expense
Low ongoing cost
Customers leverage our
economies of scale
Easily Scale Up & Down
No need to guess capacity
requirements and over-
provision
PRICE
REDUCTIONS
Speed, agility and innovation
Infrastructure in minutes not
weeks
Focus on business
Not undifferentiated heavy
lifting
Global Reach
Go global in minutes and
reach a global audience
Cloud Computing Benefits

6. You’re using AWS.
You like it.
A couple assumptions…

7. But maybe you are spending
more than you planned

8. Or you’d just like to spend less

9. v
Or in other words…..
Going From:
• Paying for
what you
use
To:
• Paying for
what you
need

10. What should you do?

11. 1. Limit Resource Provisioning…

12. By Controlling Who Can Provision
Resources…

13. 2. Understand What is Deployed &
What it Costs…

14. By Employing Tags…
• Key (Attribute): 127 Unicode
characters
• Value (Detail/Description): 255
Unicode characters
• Tags per resource: 10 tags
Jane_Doe

15. v
…And Using The Different Types of Tags
Appropriately
Resource Tags
• Provide the ability to organize and search within and across resources
• Filterable and Searchable
• Do not appear in Detail Billing Report
Cost Allocation Tags
• Provide the ability to map AWS charges to organizational attributes for accounting purposes
• Information presented in Detailed Billing Report and Cost Explorer (must be explicitly selected)
• Only available on certain services or limited to components within a service (e.g. S3 bucket but not objects)

16. Tag Key Examples
Cost Center
Business
Unit
Environ. Tier
Owner
Dept./
Group
Product /
Application
Shutdown
Time
Support
Contact
Endpoint
Backup

17. v
AWS Config Rules
• Set up rules to check configuration changes recorded
• Use pre-built rules provided by AWS
• Author custom rules using AWS Lambda
• Invoked automatically for continuous assessment
• Use dashboard for visualizing compliance and identifying offending
changes

18. Customer Example
Large Financial
Services
Customer
“No tags? No
instance”

19. 3. Proactively Monitor Your Account Billing
Usage…

20. By Using Detailed Billing Reports and
Enabling Billing Alerts…

21. …And Configuring Simple…

22. …Or Advanced Alarms in CloudWatch…

23. …Alongside Cost Explorer
http://amzn.to/1zHE2Fj

24. …Or Using an AWS Partner Tool…

25. Customer Example – Kellogg
“CloudWatch helps our people make
better decisions around the capacity
they need, so that they can avoid
waste…”
“We were never able to do that with our
on-premises infrastructure. AWS breaks
down usage and cost to such a granular
level that we can identify which costs
come from which department, like a toll
model.”

26. 4. Identify Idle Resources and Turn Off
Unused Instances…

27. …Using Trusted Advisor…

28. …Or Amazon CloudWatch to Monitor,
Collect and Track Metrics…
Amazon
CloudWatch

29. …Or (Again) Using an AWS Partner Tool…

30. v
Customer Case Studies
Pfizer’s high performance computing (HPC) software and systems for worldwide research and
development (WRD) support large-scale data analysis, research projects, clinical analytics, and
modeling. “We accomplished this by customizing the job scheduler in our HPC environment to
recognize workload, and start and stop instances as needed to address the workflow”
RunE2E for Kenneth Cole leverage several AWS APIs for starting/stopping the system,
increasing system capacity based on demand needs, and changing security profiles providing a
low cost but scalable environment to run its business.
“Instance actions, such as create, stop, start, and terminate, can very easily be scheduled
as an event. For example, now we can terminate all instances automatically after a training
class, thereby eliminating the generation of unnecessary cost”

31. 4. Design for Elasticity Rather Than
Deploy for Peak…

32. v
By Picking the Right Instance Type…
Instance Type vCPU Mem
(GiB)
Monthly
Cost (OD)*
Ideal use case
m3.medium 1 3.75 $48.24 Always available, balanced
m4.large 2 8 $90.72 Latest generation, always
available, balanced
c4.large 2 8 $79.20 Always available, compute
r3.large 2 15 $126.00 Always available, memory
g2.xlarge 8 15 $468.00 Always available, GPU
d2.xlarge 4 30.5 $496.80 Always available, storage
t2.medium 2 4 $37.44 Bursty workloads
* Assumes Amazon Linux Instances in US-East at 720 hours per month

33. Customer Example – Kaplan
We quickly converted a hefty
percentage of our systems to run
under this EC2 Instance type, and
have seen major cost reductions
without affecting performance
whatsoever.
For all instances built for Kaplan
moving forward, the T2 is going to
be the preferred option unless
measured or load-tested computing
needs demand otherwise.

34. Using Autoscaling….
Automatic resizing of compute clusters
based on demand
Trigger autoscaling policy
Feature Details
Control Define minimum and maximum instance pool
sizes and when scaling and cool down occurs.
Integrated to Amazon
CloudWatch
Use metrics gathered by CloudWatch to drive
scaling.
Instance types Run Auto Scaling for On-Demand and Spot
Instances.
AWS autoscaling create-autoscaling-group
— Auto Scaling-group-name MyGroup
— Launch-configuration-name MyConfig
— Min size 4
— Max size 200
— Availability Zones us-west-2c

35. …And Adjusting for Utilization and
GranularityMore smaller instances vs. less larger instances
29 m4.large @ $0.126/hr
$2,630.88 / mo*
59 t2.medium @ $0.052/hr
$2,203.20 / mo*
*Assumes Linux instances in US-East at 720 hours per month

36. v
Customer Case Studies
“We believe auto scaling greatly improves the availability of our services and provides an
excellent means of optimizing our cloud costs.”
http://techblog.netflix.com/2012/01/auto-scaling-in-amazon-cloud.html
Siemens Healthcare Diagnostics helps advance human health through innovation. By using
services such as ELB, Amazon SQS, Amazon EC2, Amazon RDS, Auto Scaling, Amazon
ElastiCache, and AWS CloudTrail, Siemens has built a secure, HIPAA-compliant, and scalable
platform on AWS.
The array of AWS products offers TicketLeap a potent solution. The company uses Amazon
EC2, Amazon RDS, Amazon CloudFront, Amazon S3, ELB, Auto Scaling, and cloud
monitoring services as the foundation for its platform.

37. v
5. Architect Your Workload with Cost in Mind

38. Select Reserved Instances for Steady
State Workloads… Commitment Level
• 1 Year
• 3 Year
AWS Services Offering RIs
• Amazon EC2
• Amazon RDS
• Amazon DynamoDB
• Amazon Redshift
• Amazon ElastiCache
* Dependent on specific AWS Service, size/type and Region

39. Or Spot Instances for Non-Stateful (Time
Insensitive or Fault Tolerant) Workloads…
Minimum Commitment
• Commit to 1 hour
Tradeoff
• Potential for interruption
* Compared to On Demand price based on specific EC2 instance type, region and availability zone

40. …Or A Combination of All Three
1. Start by using RIs for
known/steady-state workloads
2. Set-up multiple autoscaling groups
3. Autoscale first using Spot first
4. If Spot instances are unavailable
(or priced too high), use On-
Demand
0
2
4
6
8
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
/Spot Instances
On Demand
Spot
Reserved Instance

41. v
Customer Case Studies
As one of the world’s largest dance fitness programs, Zumba Fitness needed a scalable and
high performance website. When Zumba migrated its website to AWS in 2009, the company
saved 39% on computing resources by using Amazon Reserved Instances. Zumba could also
scale easily to serve up 7 TB of images to its customers each month.
Project that involved screening 10 million compounds against a common cancer target in less
than a week. They calculated that it would take 50,000 cores and close to a $40 million
investment if they wanted to run the experiment internally. The project ran across 10,600 Spot
Instances (approximately 87,000 compute cores) and allowed Novartis to conduct 39 years of
computational chemistry in 9 hours for a cost of $4,232. Out of the 10 million compounds
screened, three promising compounds were successfully identified.

42. Leverage The Right Storage Classes…
AWS Cloud
Amazon
Glacier
Gateway Appliance/ AWS
Storage Gateway
Amazon S3
Block File
On-premises Data Center
Archive Backup Disaster
Recovery
Amazon EBS
• Reduced redundancy storage class
– 99.99% durability vs. 99.999999999%
– Up to 20% savings
– Everything that is easy to reproduce
– Use Amazon SNS lost object
notifications
• Amazon Glacier storage class
– Same 99.999999999% durability
– 3 to 5 hours restore time
– Up to 64% savings
– Archiving, long-term backups, and old
data
• Use S3 Lifecycle rules
– Archive objects to Glacier after x days
– Delete objects after y days
Amazon EFS

43. …Alongside AWS Managed or Application
Services…
Elastic Load
Balancing
(ELB)
Amazon Relational
Database Service
(RDS)
Amazon ElastiCache
Amazon
DynamoDB
Amazon Simple
Queue Service (SQS)
Amazon Simple Email
Service (SES)
Amazon
Lambda
Amazon Elastic
MapReduce
(EMR)
Amazon Simple
Notification Service
(SNS)
Amazon Kinesis
Amazon
Route 53
Amazon Redshift

44. To Offload Your Architecture…
+
Standard Setup
• 4 x Medium Instances
$193
• AWS Data Transfer 1 TB
$92
• Total = $285
Optimized
• 1 x Medium Instance
$48
• CloudFront Data 1 TB
$87
• CloudFront Requests (10M)
$7.5
• Total = $142.5
50%
6X
Cheaper
Faster

45. v
Customer Case Studies
Airbnb is a community marketplace for unique vacation spaces around the world. Airbnb
benefits from the scalability, agility and reliability provided by Amazon Web Services, including
Amazon EC2, Elastic Load Balancing, Amazon S3, Amazon EMR, Amazon CloudFront, Amazon
CloudWatch, and Amazon RDS.
The Internet Movie Database (www.imdb.com) is one of the world’s most popular and
authoritative sources for movie, TV and celebrity content with more than 100 million unique
visitors per month. IMDb uses AWS and Amazon CloudFront to host search data, making the
search experience the fastest possible by distributing the content physically close to IMDb's
worldwide user base.
PBS, a private, non-profit corporation, provides content through television, the Web and
mobile applications. PBS Interactive, the department responsible for PBS’ Internet and
mobile presence, improved its video streaming performance by migrating to AWS to utilize
the content delivery service Amazon CloudFront and increase its existing usage of Amazon
S3.

46. v
Customer Case Studies
PlaceIQ, a location-based intelligence company in New York City, provides location
intelligence for mobile advertising. The company uses Amazon ElastiCache and AWS to
improve its web service response time by 83%.
Sanoma Games designs casual online gaming and fantasy sports leagues as part of the
Sanoma diversified media group. The business unit recently closed its local datacenter in
order to build a scalable, service-based architecture that can facilitate expansion into
additional markets and gaming categories. Cloud management specialist Nordcloud was
appointed to create and manage the new environment, which now includes Amazon RDS,
Amazon EC2, Amazon S3, Amazon ElastiCache, and Amazon CloudWatch.
SpareFoot.com helps self-storage facilities market their extra space, and helps consumers
make educated decisions on which storage unit is best for their needs. In order to manage
a network of consumer facing sites, the company uses several AWS products—including
Amazon RDS, Amazon ELB, Amazon S3, Amazon ElastiCache, Amazon CloudWatch, and
Amazon CloudFront—to create a stable system and reduce time, costs, and labor.

47. Go Server-less!
Amazon
Lambda
Amazon
S3
Amazon
SES
Amazon
SNS
Amazon
Cognito
Amazon
Mobile Analytics
JavaScript SDK
High Scores
Table
Amazon
Lambda
Web Server
Authentication &
User High Score
Storage
Compare User
High Score to
Global Top 10
DynamoDB
Users
Table
DynamoDB
Notify Top10
On New High
Score
Obtain Top10
Contacts &
Send Messages
Send E-Mail
Record Usage
Statistics

49. v
7. And Remember to Iterate!
Architect
BuildMonitor

50. • New Instance Types/Families
(e.g. m4s)
• New Technologies (e.g.
Amazon RDS for Aurora,
AWS Service Catalog)
New
Prices

51. …And Use Consolidated
Billing
• Receive a single bill for all
charges incurred across all linked
accounts
‒ Share RI discounts
‒ Combine tiering benefits / Volume
discounts
• View & manage linked accounts
• Add additional accounts

52. Let’s Recap
Limit Resource Provisioning
Understand What is Deployed and
What it Costs
Proactively Monitor Your Account
Billing Usage
Design for Elasticity Rather Than
Deploy for Peak
Identify Idle Resources and Turn Off
Unused Instances
Architect Your Workloads with Cost in
Mind
Be Cognizant of Technology Lifecycle
Updates

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