Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.
Próximo SlideShare
What to Upload to SlideShare
What to Upload to SlideShare
Cargando en…3
×
1 de 43

Reducing the Total Cost of IT Infrastructure with AWS Cloud Economics

6

Compartir

AWS offers you a pay-as-you-go approach for pricing for over 70 cloud services. With AWS you pay only for the individual services you need, for as long as you use them, and without requiring long-term contracts or complex licensing.

This webinar will cover a deep-dive into the above stated AWS Pricing Principles and how you can estimate your AWS bill by using the AWS Simple Monthly Calculator. Furthermore, it will highlight the best practices that are at your disposal to help you lower your AWS costs.

We will cover:

Understand how the TCO calculator matches your current infrastructure to the most cost-effective AWS offering.
Learn how volume based discounts and realize important savings as your usage increases.
Discover how services such as S3 and data transfer OUT from EC2, pricing is tiered, meaning the more you use, the less you pay per GB. In addition, data transfer IN is always free of charge. As a result, as your AWS usage needs increase, you benefit from the economies of scale that allow you to increase adoption and keep costs under control.

Reducing the Total Cost of IT Infrastructure with AWS Cloud Economics

  1. 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Lim, Tow Wei, towwei@amazon.com Solution Architect 8th of Feb 2018 Reducing the Total Cost of IT Infrastructure with AWS Cloud Economics ASEAN Webinar Series
  2. 2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Ask the AWS Experts Our Experts are online to answer any questions you have during the presentation. Ask your questions via the Questions Window on the GoToWebinar Control Panel
  3. 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Agenda 2. AWS Pricing Philosophy 3. AWS Pricing Models 4. Inputs Required to Estimate Your Bill 5. Using the Simple Monthly Calculator 1. Introduction to Cloud Economics 6. Q & A
  4. 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Introduction to Cloud Economics
  5. 5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Benefit Categories of Cloud Computing Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility • Reduced Risk Profile/Reduced cost of Risk Mitigation • Revenue & margin improvements due to reduced outages • Reduced Time to Market • Increased operational agility (new market penetration, divestiture, acquisition) • Reduced cost & increased Pace of Experimentation • Elimination of hardware refresh programs • Elimination of maintenance programs • Unit Price of Infrastructure • Ability to match supply & demand • Reinvention is continuous – a true efficiency dividend • A pathway to optionality • An elastic Cost Base • Transparency drives a lean mindset • Automation drives maintenance efficiencies • Reduced cost of planned and unplanned outages • Increased Developer Productivity
  6. 6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. GE Oil & Gas experienced business benefits across all categories Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility • 98% reduction in P1/P0’s • 77% faster to deliver business applications • 52% average TCO savings • 35% reduction in compute assets (792) • 15 automated bots developed • 80% cloud first adoption • 15 cloud services created • 50 applications decommissioned • 8 cloud migration parties • Improved security posture • Shift to self-service culture • Rapid experimentation • Reduced technical debt • 14M YOY Savings • Improved Performance • Streamlined M&A Activity • DevOps in Practice Progress 14.2M Investment Focus 18 Months 311 Apps in Cloud & 14M YOY Savings
  7. 7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Typical cost drivers for on-premises deployments, including overhead costs Network costs Storage costs Server costs Hardware – server, rack chassis PDUs, ToR switches (+maintenance) Software - OS, virtualization licenses (+maintenance) Overhead cost Space Power Cooling Hardware – storage disks, SAN/FC switches Overhead cost Storage admin costs Network hardware – LAN switches, load balancer bandwidth costs Network admin costs Overhead cost IT labor costs Server admin Virtualization admin 1 2 3 4 Space Power Cooling Space Power Cooling illustrative Diagram doesn’t include every cost item. E.g., software costs can include database, management, middle tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.
  8. 8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Choose your hardware/ software vendor Server network hardware OS + Virtuali- zation software DC/colo floor space Power cooling Software- defined networking Data center personnel HW maint. Storage redundancy Resource mgmt. /SW automation AWS pricing includes overhead costs
  9. 9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Upgrades are your responsibility Upgrades happen automatically On-premises infrastructure VPC support
  10. 10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Pricing Philosophy
  11. 11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do customers lower their Costs with AWS? Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013 1 “Customers will have spent 63.4% more on average on- prem or in co-location” Remove over provisioning and move to pay for what you use model 2 63 Price Reductions Economies of scale allow AWS to continually lower costs 3 Pricing model choice to support variable & stable workloads 4 Save more money as you grow bigger On-Demand Reserved Spot Tiered Pricing Volume Discounts
  12. 12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Continually lowering prices for customers is in our DNA Reduced Prices More Customers More AWS Usage More Infrastructure Economies of Scale Lower Infrastructure Costs Ecosystem Global Footprint New Features New Services Infrastructure Innovation We pass the savings along to our customers in the form of low prices and continuous reductions
  13. 13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Pricing Principles Pay as you go Pay less by using more Pay less when you reserve Pay less when AWS grows No up-front investment Pay per use
  14. 14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Pricing Principles Pay-as-you-go Pay less as you use more Save when you reserve
  15. 15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Pricing Models
  16. 16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Pricing Models • Users that prefer the low cost and flexibility of Amazon EC2 without any up-front payment or long-term commitment • Applications with short-term, spiky, or unpredictable workloads that cannot be interrupted • Applications being developed or tested on Amazon EC2 for the first time • Applications with steady state usage • Applications that may require reserved capacity • Customers that can commit to using EC2 over a 1 or 3 year term to reduce their total computing costs • Applications that have flexible start and end times • Applications that are only feasible at very low compute prices • Users with urgent computing needs for large amounts of additional capacity On Demand Reserved Instances Spot
  17. 17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Reserved Instances for Always-On Instances 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
  18. 18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Introducing Convertible Reserved Instances With a Convertible Reserved Instance, you can modify your existing reservation across: Instance families Instance sizes Operating Systems Tenancy
  19. 19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 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
  20. 20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How to Effectively leverage on these pricing models?
  21. 21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Traditional Capacity Planning Limited Value, Wasted $, Increasing Cost Initial Fixed Capacity Utilization Unused Capacity = Wasted $ Downtime, Lost Customers, Lost Revenue (Impossible to measure) More Wasted $ Increased Capacity again New Purchase after “Don’t let it happen again” Time
  22. 22. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What levers are available to customers to drive down costs? Matching Supply and Demand – Right-sizing (Compute and Storage) Matching Supply and Demand – Elasticity Lowering the Unit Price – Reserved and SPOT Instances
  23. 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Inputs Required to Estimate Your Bill
  24. 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pricing Metrics of Core AWS services Most native AWS security features are free. i.e IAM, Security Groups, NACL and encryption Data transfer In has no cost, while data transfer out is charged by GB. Fixed public IP incurs cost similar to NAT Gateway or Bastion host which has its own cost EC2 is priced by instance family and type, OS and running time Storage cost varies based on types of AWS storage servies used. All storage services such as EBS and S3 charge based on capacity used in GB. Different AWS Region has different pricing. Many AWS service offer free tier
  25. 25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Free Tier
  26. 26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. For Compute on EC2 For each server/instance, you will need: • Peak vCPU • Peak RAM • Operating System • Usage per month • Target Region
  27. 27. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Let’s take a sample… vCPU Peak CPU Utilization (%) Peak vCPU RAM (GB) Peak RAM Utilization (%) Peak RAM OS Environment Usage Per Month 2 50% 4 100% Windows Production 100% 8 60% 32 80% RHEL Dev/Test 30%* 32 40% 64 50% Linux DR 1%** 64 50% 128 45% SLES Staging 24%% 128 75% 1024 75% Linux Production 100% Compute: All servers will be hosted in the Asia Pacific (Singapore) region. * Dev/test environments are typically required 10 hours a day, 5 days a week. Hence, 30% of the time. ** DR environments are typically required only in case of a DR (active-passive DR strategy) or when testing the DR capabilities. We have assumed this to be 5 hours per month. Hence, 1% of the time. When building for high-availability, many customers do not require DR servers.
  28. 28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. For Storage For storage, you will needs: • Amount of Used SSD Primary Storage • Amount of Used Magnetic Primary Storage • Amount of Back-up Storage • Amount of Archive Storage
  29. 29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Let’s take a sample… Storage: • Amount of Used SSD Primary Storage – 150 GB • Amount of Used Magnetic Primary Storage – 450 GB • Amount of Back-up Storage – 1,200 GB • Amount of Archive Storage – 7,200 GB All storage will be hosted in the Asia Pacific (Singapore) region.
  30. 30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Using the Simple Monthly Calculator
  31. 31. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Demo of the SMC
  32. 32. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Alternate Way to Consume AWS for Simple Workloads
  33. 33. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Lightsail: the easiest way to get started on AWS § Bundled compute, storage, networking § Fully configured server § Low, predictable price § Intuitive Lightsail console § Access to AWS services
  34. 34. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What do Lightsail plans include? CPU core(s) SSD block storage Networking & data transfer DNS management 1 Static IP/instance Access to AWS services
  35. 35. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Predictable pricing starting at $5 per month
  36. 36. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. • Websites • Web apps • Testing environment • Line-of-business software Lightsail versus EC2 use cases • Multi-tier applications (dozens of instances) • Anything requiring instances that are workload optimized, highly configurable, or resource intensive. • E.g., Big data analytics, High performance computing, Scientific computing EC2
  37. 37. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. In Conclusion…
  38. 38. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The move to AWS provides a platform to transform your IT cost base 100% 30% Today Lift & Shift Right-sizing AWS Optimized Apps Move to Higher Level Services Move to Open Source Corporate Apps aaS on AWS Migration to Workspaces True AWS Optimized Focus of initial migration Path forward
  39. 39. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Summary Lowering prices for customers is in the DNA of Amazon and AWS AWS Pricing Philosophy helps take the guess work out of capacity planning AWS Pricing Models offer the flexibility you need to optimize costs AWS provides you with the tool to estimate your AWS bill Let’s work together to help you make the Right decision
  40. 40. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 10 minutes open Q&A (English Session)
  41. 41. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Follow Us on Social Media @AmazonWebServices @AWSCloud @AWSCloudSEAsia
  42. 42. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Feedback A feedback form will pop up when you exit the Webinar Console. Please help us to complete in order for us to improve our program.
  43. 43. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Thank You You will receive today’s webinar recording and presentation deck, look out for it in your inbox.

×