How to Lower TCO and Avoid Cloud Lock-in 

1© Cloudera, Inc. All rights reserved.
How to Lower TCO and
Avoid Cloud Lock-in
Jim Fisher, Director of Systems Engineering at Cloudera
Ifi Derekli, Systems Engineer at Cloudera
Susan Greslik, Systems Engineer at Cloudera

● Moving from on-prem to Cloud: Best practices for lowering your TCO
● Portability and selecting the right Cloud provider
● Demo of using multiple Cloud providers
● Bringing it all together with Cloudera Altus
Agenda

Big Data deployments in cloud are
accelerating
● Increased agility through end-user self-
service
● Organization focused on higher value
items
● Perceived lower overall TCO by
optimizing infrastructure usage
Benefits of the Cloud

Three Types of Deployment Models in Cloud
1hr
SPIN UP SPIN
DOWN
24/7
24/7
1hr
SPIN UP SPIN
DOWN
Persistent
Transient
Elastic

Characteristics are Different for Each
Usage Requirements Example Workloads
Persistent ● Runs 24/7
● Only expands when
new capacity is
needed
● High availability & disaster
recovery
● Cluster operational management
● Resource management
● Security
● NoSQL
● Streaming
● BI analytics
● Multi-user
Transient ● Runs on an
intermittent basis
(e.g.: daily, weekly,
hourly)
● Object store integration
● Fast cluster provisioning
● Cluster metadata persistence
● Usage-based pricing
● ETL workflows
● Model training
● Ad hoc analytics
● Dev/Test workflows
Elastic ● Some nodes run 24/7
● Others added &
removed as needed
(e.g.: daily, weekly,
monthly, quarterly)
● Combination of requirements
from persistent and transient
clusters
● BI analytics during
peak hours
● End of week, month,
quarter processing

Cost Models are Different
Cost Structure Cost Optimization Option
Persistent Yearly “rental” of infrastructure Multi-year agreements (e.g.: Reserved
Instances)
Transient Hourly “rental” of infrastructure Preemptible VMs (e.g.: Spot Instances)
Elastic Yearly “rental” for persistent nodes and
hourly “rental” for transient nodes
Multi-year agreements for persistent nodes
and preemptible VMs for transient nodes
On-Premise Purchase of infrastructure that is
typically depreciated over 3 years
Limited

● Utilizing publicly available list pricing with no discounts
● AWS pricing used since they are the market leader but same concepts apply
to other Cloud providers
● Your mileage may vary - These are going to be different for every
organization but the concepts and numbers are directionally correct
● Only using infrastructure costs since they are often the majority of TCO
Some Assumptions

How Much Does a Server Cost?
Component Details Cost Estimates
Server 20 cores, 256GB
RAM, 12 4TB disks
$18,000
Data Center Power, cooling, and
data center space*
$4,000
Networking Switches &
networking equip.
$5,000
Administrator One person who
manages 100 servers
$6,000
TOTAL (3 Years) $33,000
TOTAL
(Annually)
$11,000
* https://ongoingoperations.com/data-center-pricing-credit-unions/

How Much is a Similar Server in the Cloud?
Component Details
d2.8xlarge 36 vCPUs, 244 GB RAM,
12 4TB disks
Option Unit
Cost
Total
(3 Years)
Total
(Annual)
On-Premise Server $33,000 / 3 years $33,000 $11,000
On-Demand Pricing $5.52 / hour $145,065 $48,355
Reserved Instance (1-Year) $23,616 / year $70,848 $23,616
Reserved Instance (3-Year) $41,560 / 3 years $41,560 $13,853

Benefits of using object storage
● Create a data lake in object store for multiple
clusters and eliminate data silos
● Provides durability for the data, so you don’t
have to worry about replication.
● Allows you to separate compute and storage so
you can grow independently.
● ..which leads to less costs than local storage
Except when…
● Performance is critical. Each attached disk is
roughly 100Mb/s and that’s rough estimate per
server to object storage
What if You Want to Use Object Storage?
Object Store

How Does Object Storage Affect the Costs?
Component Details
r4.8xlarge 32 vCPUs, 244 GB RAM
EBS Disks 640GB
S3 Storage 12 TB* (no replication required)
Option Compute Storage Total (Annual)
On-Premise Server $11,000 $0 $11,000
d2.8xl Reserved Instance (3-
Year)
$13,853 $0 $13,853
r4.8xl Reserved Instance (3-
Year)
$7,009 $5,458 $12,467
Object Store
* Object Storage costs may be less since you pay for what you use

Benefits of Transient Clusters
● Pay only for what you use
● Right-size cluster based on
workload needs
● Better isolation between different
users and groups
Cloud Workloads are often Transient

What if you only needed 6 Hours per Day?
Component Details
r4.8xlarge 32 vCPUs, 244 GB RAM, 6 hours/day
EBS Disks 640GB, 6 hours/day
S3 Storage 12 TB*, 24x7
Reserved Instance (3-Year) $7,009 $5,458 $12,467
On Demand Pricing (6
hours/day)
$4,648 $4,728 $9,376

What are Preemptible Instances?
Spare computing capacity that you can bid on a significant discount levels as
compared to on-demand pricing. AWS suggests that costs can be 50-90% less
than On-Demand and Google says they can be up to 80% cheaper.
Known as Spot pricing in AWS and Preemptible VMs in Google.
Preemptible Instances can be used to lower costs

How much can you save with Spot at 70% Discount?
Component Details
r4.8xlarge 32 vCPUs cores, 244 GB RAM, 6
hours/day
EBS Disks 640GB, 6 hours/day
S3 Storage 12 TB*, 24x7
On Demand Pricing (6
hours/day)
$4,648 $4,728 $9,376
Spot Pricing - 70% (6 hours/day) $1,3941 $4,728 $6,122

25 Servers cost about $275,000 per year
35 Servers cost about $385,000 per year
Let’s Walk through a Scenario
Workload Requirements
ETL ● SLAs to complete within 6 hours
● Need 20 servers to meet SLAs
BI ● 15 servers to meet minimum workload
● 25 servers needed during business hours

Two Clusters in the Cloud
Component Details
r4.2xlarge 100, with 8 vCPUs cores, 61 GB RAM
EBS Disks 15.6 TB, 24 hours/day
S3 Storage 300 TB
Object Store
BI - Persistent running 24/7
Component Details
r4.2xlarge 80 with 8 vCPUs, 61 GB RAM, 6 hours/day
EBS Disks 12.8 TB, 6 hours/day
S3 Storage (included with BI workload)
ETL - Transient Running 6 hrs/daily

● Cloud can be less when on-
premise is not as highly utilized
and more when on-premise is
efficiently utilized
● Cloud TCO best practices used
● Cloud provides benefits of
isolation and on-demand flexibility
How Do the Costs Compare?
On-Premise (25 Servers) $275,000 $0 $275,000
On-Premise (35 Servers) $385,000 $0 $385,000
Cloud (ETL) $27,888 $4,853 $32,741
Cloud (BI) $175,233 $136,395 $311,628

General
● Don’t look as Cloud as infrastructure hosted in another data center
● Understand the workloads so you use the right tool to optimize the TCO
Best Practices on How to Lower Cloud TCO
Storage
● Utilize object storage when possible to eliminate data silos
● Use local storage when performance SLAs are more critical
Persistent
● Use Reserved Instances when workloads are
known and can be committed to for multiple
years
Transient
● Use Preemptible instances when possible
but you may have to re-design application

Portability and selecting the right Cloud
provider

Why is portability important?
Financial considerations
• Price negotiation position
• Instance pricing fluctuation
• Project type can dictate cost
(storage, processing power)
Conflict of Interest
• Competition with cloud vendors
• Freedom to have choices for
given projects is critical
Maximize Capabilities
• Freedom to leverage all
features available across
vendors
Diversify Risk
• Eliminate 100% dependency on
vendor’s technology
• Ensure uptime of your
environment despite Cloud
vendor potential issues

What to consider?
Questions to ask
Pricing model ● Does the vendor round to nearest minute? Hour? Do
they offer discounts for upfront commitment?
Variety of services provided ● Does the vendor provide enough options for
instances (e.g. dense disk, memory-optimized, cpu-
optimized), storage options (e.g. local disk, object-
store), or network capabilities to meet your needs?
Ease of Use ● Do you have an existing skill-set for a particular
vendor?
● Is the platform simple to deploy and easy to learn?
Support & Management ● What type of assistance will the vendor provide?
● How easy is it to troubleshoot your cloud
environment?

Orchestration tool for deploying, monitoring and scaling Cloudera EDH on cloud
infrastructure
Characteristics:
• Embodies Cloudera best-practices and reference
Architectures
• Complements on-prem offerings for IaaS users
• Extends capabilities of Cloudera Manager
• Grows and shrinks clusters via single pane of glass
Main Goals:
• Reduce time-to-value
• Enable new usage patterns (on-demand clusters,
self-service)
• Facilitate portability amongst cloud vendors
• Allow predictability of workloads
What is Cloudera Director?
Cloudera Director

• Re-usability
• Cluster configuration files
• Node templates (Master,
Workers, Edge)
• “Standard” cluster configs ->
predictable project costs
• Only Pay for What You Use
• Automatic billing
• Flexible SKUs based on use
case
Cloudera Director Economics

How Does Director Help with Portability?
IFI TODO: Screenshot of director

How Does Director Help with Portability?

Demo

● Brand for Cloudera PaaS
offerings
● Foundation acts as framework
for building services.
● Altus for data engineers is first
user-facing service.
Cloudera Altus is a PaaS for big data analytics

● Understand your workloads so you use the right tools and right vendor to
optimize the TCO
● Plan for portability to reduce risk and costs and enable options
● Cloudera can help you plan and architect efficiently
● Cloudera Altus - PaaS offering so you can focus on your applications
Key Takeaways

Thank you

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How to Lower TCO and Avoid Cloud Lock-in

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