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© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Keith Jarrett, AWS Business Development Manager,...
You’re using AWS
and you like it!
But maybe you are spending more
than you planned…
Or you’d just like to spend less
With the AWS
cloud, you only
pay for what you
use.
How do you
ensure that you
only pay for what
you need?
What to expect
We will introduce our framework for
optimizing your AWS bill by focusing on
paying only for what you need.
...
Chapter I: Build With Cost In Mind
(Well Architected)
Analysts have shown AWS reduces cost over the long term
Source: IDC, Quantifying the Business Value of Amazon Web Services...
And we’ve heard it from our customers…
“We’ve seen a 52% total cost of
ownership reduction.”
Ben Wilson
CTO GE Oil & Gas
But it doesn’t just happen.
Best Practice Framework for Architecting on AWS
Performance
Ensure a system delivers maximum
performance for a set of reso...
Limit
Provisioning
Target
Setting
Automation
Periodic
Review
Charge-
backs
Pricing
Model
Autoscaling
Turn off
unused
Cost
...
Where do you start?
The Five Pillars of Cost Optimization
Right-sizing your
instances
Pick the right
pricing model
Increase elasticity
Measuri...
Pillar 1: Right-Sizing
Right-sizing
• Selecting the cheapest instance available
while meeting performance requirements
• L...
Pillar 2: Increase Elasticity
Turn off nonproduction instances
• Look for dev/test, nonproduction instances that
are runni...
Pillar 3:
Leveraging the Right
Pricing Model
Reserved Instances
Spot Instances
On-Demand
Reserved Instances for Always-On Instances
Commitment level
1 year
3 year
AWS services offering
Reserved Instances
Amazon ...
What’s New?
Introducing New Benefits to
Reserved Instances
EC2 Instance Growth
2007 2008 201120102009 20162013 2014 2015
3
60+
Increasing customer choice through accelerating
Instan...
How to take advantage of
Reserved Instances while
maximizing flexibility?
Introducing Convertible Reserved Instances
With a Convertible Reserved Instance, you can modify
your existing reservation ...
Using Convertible Reserved
Instances to Unlock Savings
6x
increase
17%
M-1
15%
M0
91%
M1
92%
M2
RI
OD
SPOT
Key
16%
M-2
93%
M3
Improving EC2 RI Usage with Convertible Reserved In...
39%
Unit Cost
Decrease
17%
M-1
15%
M0
91%
M1
92%
M2
RI
OD
SPOT
Key
16%
M-2
93%
M3
Improving EC2 RI Usage with Convertible ...
Reserved Instances
Step 1: Reserved Instance Coverage
• Cover always-on resources with standard or
convertible Reserved In...
Options
• Spot Fleet to maintain instance
availability
• Spot Block durations (1-6 hours)
for workloads that must run
cont...
Spot Rules
50% of OD
75% of OD
25% of OD
You pay the market price
87% discount!
You’ll Never Pay More Than Your Bid
Strike a Balance
Finding balance between pricing options
Reserved
Instances
On-Demand Spot
Pillar 4:
Leveraging the Right
Storage Class
Block Storage
Object Storage
Object Storage is Foundational
And it’s even easier to get data
into S3
But are you optimizing your
object storage?
Object Storage Classes on Amazon S3
Active data Archive dataInfrequently accessed data
Standard
Hot
Standard - Infrequent ...
Running the Numbers: S3 or S3-IA
Comparing 1 PB of object storage*
1PB Monthly
S3 S3-IA Savings %
$24,117 $14,116 41%
Rule...
Case Study: Putting it Together
A Technology Company
In three months…
A Technology Company
Doubled CPU and
traffic used by its
Web servers
A Technology Company
While reducing
EC2 spend by
33%
$72k saving per month!
How did they do it?
Solving the growth challenge
Step 1: Right-size and update instances
m1 on demand
$0.07 per ECU
c4 on demand
$0.02 per ECU
The impact of right-sizing
70% reduction
in unit cost
Step 2: Reserve
The impact of reservations
30% reduction
In unit cost
Putting it together
85% reduction
in unit cost!
Sounds pretty easy, right?
Not really.
In reality, it is very complex.
• Scale
• Behavioral change
• Visibility
• Ownership
Chapter II: Implement & Maintain
(Well Operated)
How do you implement those
best practices at scale?
(Spoiler Alert: Remember the 5th Pillar of Cost Optimization?)
Pillar 5: Measure & Monitor
Automation.
1. Identify always on instances.
2. Identify instances to downsize.
3. Identify warm / cold storage.
4. Recomm...
Enabling Cost Transparency
Enabling Cost Transparency
Must have tagging:
• Cost center
• Application or workload
• User
• Expiration date
• Automatio...
Tools for Measuring &
Monitoring
Option 1: DIY
Build your own custom dashboard
We’ve helped customers set up their own
dashboards and tools.
Metric tracking
savings
Spend & metrics
by account
EC2 usage...
Option 2: Use a Partner
And partners have been successful helping
customers monitor & manage cost
Leveraging Partners to Drive Optimization
21%
Savings
Automated policies and tasks for:
• Termination of unused volumes
• ...
Option 3: AWS Tools
Trusted Advisor
AWS Trusted Advisor
Helping customers automate best practices (checks) across
cost optimization, security, fault tolerance...
“We estimate an average
33% monthly savings on our
total AWS spend.”
Amit Vora, CTO for Hungama
Idle Test Instances Running in us-west-1
Automating Trusted Advisor
with AWS Lambda
AWS Trusted
Advisor
AWS
Lambda
Actions on AWS resources
Amazon
CloudWatch
event...
Creating a Culture of Cost
Accountability
People & Process
Solving the
“Principle-Agent Problem”
If you were going to buy a car
tomorrow, what kind of car
would you buy?
Now imagine that someone else
was footing the bill.
Does your answer change?
Bridging the Gap Between Agents & Principles
Principles Agents
CoE
Questions your COE Should be Asking
1. How much of our workloads are “steady state”?
2. What’s keeping us from reserving c...
• Aligning Incentives (Carrots & Sticks)
• Automation
• Reporting
• Control & Governance
• Metrics / KPIs
Cloud Center of ...
Establish Clear Targets & Metrics
Metrics and Targets
% instances turned off daily
% of instances right-sized
% always-on resources covered by Reserved
Inst...
Value Based Optimization Metrics
A company’s overall AWS cost should be evaluated as a unit cost ratio with
respect to ano...
Chapter III: Getting Started
(We can help)
Where to start
Set up a Cloud
Competency Center
Bring in the right
tools
Use metrics to
reinforce behavior
Use partners to...
Cycle of cost optimization
✔
✔
✔
✔✘
✘
✘
✘
$
$
$
$
$
How to start your Cost
Optimization Program:
Learnings from Intuit’s cloud journey
Time: Thursday December 1st 1pm
Room: T...
Support Programs
Well Architected Bootcamp:
Wednesday @ 1 - 5 pm
Cost Optimization Whitepaper:
We’re Here to Help
http://a...
Trusted Advisor Free Trial
Everyone attending today’s session will get
free access to Trusted Advisor for 30 days.
How it ...
Thank you!
Remember to complete
your evaluations!
AWS re:Invent 2016: Cost Optimization at Scale (ENT209)
AWS re:Invent 2016: Cost Optimization at Scale (ENT209)
AWS re:Invent 2016: Cost Optimization at Scale (ENT209)
AWS re:Invent 2016: Cost Optimization at Scale (ENT209)
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AWS re:Invent 2016: Cost Optimization at Scale (ENT209)

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Organizations where cloud adoption has matured into broader enterprise deployment are facing the need to better manage and control their costs and expenditures. Cost optimization at scale is a process that involves a number of changes across the business, including technical, organizational and cultural transformation. In this session, you will learn the fundamentals of cost optimization and how this can be used to help your organization drive costs down and still being able to meet capacity, demand and organizational requirements. Key topics being discussed are right sizing services, optimizing purchase models and implementing a culture of cost management.

Publicado en: Tecnología

AWS re:Invent 2016: Cost Optimization at Scale (ENT209)

  1. 1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Keith Jarrett, AWS Business Development Manager, Cloud Economics & Cost Optimization November 29, 2016 ENT209 Cost Optimization at Scale
  2. 2. You’re using AWS and you like it!
  3. 3. But maybe you are spending more than you planned…
  4. 4. Or you’d just like to spend less
  5. 5. With the AWS cloud, you only pay for what you use.
  6. 6. How do you ensure that you only pay for what you need?
  7. 7. What to expect We will introduce our framework for optimizing your AWS bill by focusing on paying only for what you need. Share lessons learned from our most successful customers. And leave you with actionable ideas to take back to the office to implement immediately.
  8. 8. Chapter I: Build With Cost In Mind (Well Architected)
  9. 9. Analysts have shown AWS reduces cost over the long term Source: IDC, Quantifying the Business Value of Amazon Web Services (May, 2015)
  10. 10. And we’ve heard it from our customers… “We’ve seen a 52% total cost of ownership reduction.” Ben Wilson CTO GE Oil & Gas
  11. 11. But it doesn’t just happen.
  12. 12. Best Practice Framework for Architecting on AWS Performance Ensure a system delivers maximum performance for a set of resources. Cost Optimization Achieve the lowest price for a workload taking into account fluctuating needs. Reliability Ensuring a given system is architected to meet operational thresholds during a specific period of time. Security Review definitions and compliance best practices.
  13. 13. Limit Provisioning Target Setting Automation Periodic Review Charge- backs Pricing Model Autoscaling Turn off unused Cost Optimized Direct Inputs Indirect Inputs Key Cost Optimization Drivers at Scale
  14. 14. Where do you start?
  15. 15. The Five Pillars of Cost Optimization Right-sizing your instances Pick the right pricing model Increase elasticity Measuring & monitoring Match usage to storage class
  16. 16. Pillar 1: Right-Sizing Right-sizing • Selecting the cheapest instance available while meeting performance requirements • Looking at CPU, RAM, storage, and network utilization to identify potential instances that can be downsized • Leveraging Amazon CloudWatch metrics and setting up custom RAM metrics Rule of thumb: Right size, then reserve. (But if you’re in a pinch, reserve first.)
  17. 17. Pillar 2: Increase Elasticity Turn off nonproduction instances • Look for dev/test, nonproduction instances that are running always-on and turn them off. • Lambda + CloudWatch = Automated Scheduling* Autoscale production • Use Auto Scaling to scale up and down based on demand and usage (for example, spikes). * https://aws.amazon.com/premiumsupport/knowledge-center/start-stop-lambda-cloudwatch/
  18. 18. Pillar 3: Leveraging the Right Pricing Model Reserved Instances Spot Instances On-Demand
  19. 19. Reserved Instances for Always-On Instances Commitment level 1 year 3 year AWS services offering Reserved Instances Amazon EC2 Amazon RDS Amazon DynamoDB Amazon Redshift Amazon ElastiCache * Dependent on specific AWS service, size/type, and region
  20. 20. What’s New? Introducing New Benefits to Reserved Instances
  21. 21. EC2 Instance Growth 2007 2008 201120102009 20162013 2014 2015 3 60+ Increasing customer choice through accelerating Instance innovation Instances Launched in 2016: • Accelerated Computing: p2 • Memory Optimized: x1.16xl • General purpose: m4.16xl 5 7 11 12 23 42 52
  22. 22. How to take advantage of Reserved Instances while maximizing flexibility?
  23. 23. Introducing Convertible Reserved Instances With a Convertible Reserved Instance, you can modify your existing reservation across: Instance families Instance sizes Operating systems Tenancy
  24. 24. Using Convertible Reserved Instances to Unlock Savings
  25. 25. 6x increase 17% M-1 15% M0 91% M1 92% M2 RI OD SPOT Key 16% M-2 93% M3 Improving EC2 RI Usage with Convertible Reserved Instances (Bar: EC2 Instances by Purchase Option [count])
  26. 26. 39% Unit Cost Decrease 17% M-1 15% M0 91% M1 92% M2 RI OD SPOT Key 16% M-2 93% M3 Improving EC2 RI Usage with Convertible Reserved Instances (Bar: EC2 Instances by Purchase Option [count]) (Line: Cost per Normalized Instance Hour [usd]) Unit Cost* *Upfront portion amortized over life of RI
  27. 27. Reserved Instances Step 1: Reserved Instance Coverage • Cover always-on resources with standard or convertible Reserved Instances Step 2: Increase Reserved Instance Utilization • Known architectures: Leverage Standard Reserved Instance flexibility to increase utilization. • Growing or changing architectures: Leverage Convertible Reserved Instances across families, sizes, and OS. • Regional Benefit: Consolidated billing, reservation not critical
  28. 28. Options • Spot Fleet to maintain instance availability • Spot Block durations (1-6 hours) for workloads that must run continuously Commitment level • None * Compared to On Demand price based on specific EC2 instance type, region, and Availability Zone Consider Spot for Elastic Workloads
  29. 29. Spot Rules 50% of OD 75% of OD 25% of OD You pay the market price 87% discount! You’ll Never Pay More Than Your Bid
  30. 30. Strike a Balance Finding balance between pricing options Reserved Instances On-Demand Spot
  31. 31. Pillar 4: Leveraging the Right Storage Class Block Storage Object Storage
  32. 32. Object Storage is Foundational
  33. 33. And it’s even easier to get data into S3
  34. 34. But are you optimizing your object storage?
  35. 35. Object Storage Classes on Amazon S3 Active data Archive dataInfrequently accessed data Standard Hot Standard - Infrequent Access Warm Amazon Glacier Cold
  36. 36. Running the Numbers: S3 or S3-IA Comparing 1 PB of object storage* 1PB Monthly S3 S3-IA Savings % $24,117 $14,116 41% Rule of thumb: Breakeven = 105% Retrieved per Month Content Accessed per Month 10% $24,117 $18,350 24%50%1PB Monthly $24,117 $23,593 2%100%1PB Monthly * Based on US-East Prices
  37. 37. Case Study: Putting it Together
  38. 38. A Technology Company In three months…
  39. 39. A Technology Company Doubled CPU and traffic used by its Web servers
  40. 40. A Technology Company While reducing EC2 spend by 33% $72k saving per month!
  41. 41. How did they do it?
  42. 42. Solving the growth challenge
  43. 43. Step 1: Right-size and update instances m1 on demand $0.07 per ECU c4 on demand $0.02 per ECU
  44. 44. The impact of right-sizing 70% reduction in unit cost
  45. 45. Step 2: Reserve
  46. 46. The impact of reservations 30% reduction In unit cost
  47. 47. Putting it together 85% reduction in unit cost!
  48. 48. Sounds pretty easy, right? Not really. In reality, it is very complex. • Scale • Behavioral change • Visibility • Ownership
  49. 49. Chapter II: Implement & Maintain (Well Operated)
  50. 50. How do you implement those best practices at scale? (Spoiler Alert: Remember the 5th Pillar of Cost Optimization?)
  51. 51. Pillar 5: Measure & Monitor
  52. 52. Automation. 1. Identify always on instances. 2. Identify instances to downsize. 3. Identify warm / cold storage. 4. Recommend Reserved Instances to purchase. 5. Dashboard our status. 6. Report on savings.
  53. 53. Enabling Cost Transparency
  54. 54. Enabling Cost Transparency Must have tagging: • Cost center • Application or workload • User • Expiration date • Automation support http://ape.gs/AWSAutoTag
  55. 55. Tools for Measuring & Monitoring
  56. 56. Option 1: DIY Build your own custom dashboard
  57. 57. We’ve helped customers set up their own dashboards and tools. Metric tracking savings Spend & metrics by account EC2 usage by purchase option
  58. 58. Option 2: Use a Partner
  59. 59. And partners have been successful helping customers monitor & manage cost
  60. 60. Leveraging Partners to Drive Optimization 21% Savings Automated policies and tasks for: • Termination of unused volumes • Termination of non-compliant resources • Notifications of possible budget overages • Reserved Instance modifications • And weekend lights-out rules
  61. 61. Option 3: AWS Tools Trusted Advisor
  62. 62. AWS Trusted Advisor Helping customers automate best practices (checks) across cost optimization, security, fault tolerance, and performance improvement Red (action recommended) Orange (investigation recommended) Green (no problem detected)
  63. 63. “We estimate an average 33% monthly savings on our total AWS spend.” Amit Vora, CTO for Hungama
  64. 64. Idle Test Instances Running in us-west-1
  65. 65. Automating Trusted Advisor with AWS Lambda AWS Trusted Advisor AWS Lambda Actions on AWS resources Amazon CloudWatch events Notifications http://docs.aws.amazon.com/awssupport/lates t/user/cloudwatch-events-ta.html
  66. 66. Creating a Culture of Cost Accountability People & Process
  67. 67. Solving the “Principle-Agent Problem”
  68. 68. If you were going to buy a car tomorrow, what kind of car would you buy?
  69. 69. Now imagine that someone else was footing the bill.
  70. 70. Does your answer change?
  71. 71. Bridging the Gap Between Agents & Principles Principles Agents CoE
  72. 72. Questions your COE Should be Asking 1. How much of our workloads are “steady state”? 2. What’s keeping us from reserving capacity? 3. How are we currently handling our elasticity needs? 4. Have we had a Well Architected review with AWS? 5. How can I be more involved in our process?
  73. 73. • Aligning Incentives (Carrots & Sticks) • Automation • Reporting • Control & Governance • Metrics / KPIs Cloud Center of Excellence
  74. 74. Establish Clear Targets & Metrics
  75. 75. Metrics and Targets % instances turned off daily % of instances right-sized % always-on resources covered by Reserved Instances % Reserved Instance utilization ✔ ✔ ✔ ✔ ✘ ✘ ✘ ✘ Define success by establishing metrics and track progress Cost-Based
  76. 76. Value Based Optimization Metrics A company’s overall AWS cost should be evaluated as a unit cost ratio with respect to another defined metric: 𝑈𝑛𝑖𝑡 𝐶𝑜𝑠𝑡 = 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝐼𝑛𝑑𝑖𝑣𝑖𝑑𝑢𝑎𝑙 𝑜𝑟 𝐵𝑢𝑠𝑖𝑛𝑒𝑠𝑠 𝑀𝑒𝑡𝑟𝑖𝑐 Examples • Unit cost per customer or active subscriber • Unit cost per revenue generated • Unit cost per product or business unit • Unit cost per internal user • Unit cost per experiment • Unit cost per FTE Align to Value Drivers
  77. 77. Chapter III: Getting Started (We can help)
  78. 78. Where to start Set up a Cloud Competency Center Bring in the right tools Use metrics to reinforce behavior Use partners to accelerate!
  79. 79. Cycle of cost optimization ✔ ✔ ✔ ✔✘ ✘ ✘ ✘ $ $ $ $ $
  80. 80. How to start your Cost Optimization Program: Learnings from Intuit’s cloud journey Time: Thursday December 1st 1pm Room: Titan 2202 Session: ENT 314
  81. 81. Support Programs Well Architected Bootcamp: Wednesday @ 1 - 5 pm Cost Optimization Whitepaper: We’re Here to Help http://aws.amazon.com/well-architected
  82. 82. Trusted Advisor Free Trial Everyone attending today’s session will get free access to Trusted Advisor for 30 days. How it works: • Trial begins December 6, 2016 • Runs 30 days • Full suite of checks and best practices available for those not already on Enterprise & Business Level Support plans • No action required – Just log in and start using! https://aws.amazon.com/premiumsupport/trustedadvisor/Learn more @
  83. 83. Thank you!
  84. 84. Remember to complete your evaluations!

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