With the public cloud pricing wars reaching fever pitch, the ROI of cloud continues to increase. But unlike traditional upfront capital approval processes, public cloud requires a new, continuous approach to forecasting and managing costs. In this webinar, Joe Emison, CTO of BuildFax and RightScale customer, will share how he optimizes cloud costs. We’ll also help you understand cloud pricing trends and learn how to forecast and manage your costs with Cloud Analytics. Key Topics: 1. Latest cloud pricing trends and what it means for you 2. How BuildFax optimizes cloud spend 3. Tips and best practices for managing cloud costs 4. Live demonstration of forecasting and comparing cloud costs

1. TALES FROM THE TRENCHES:
UNDERSTANDING & MANAGING
CLOUD COSTS

2. • Kim Weins
• VP Marketing, RightScale
• Joe Emison
• CTO, BuildFax
• Hassan Hosseini
• Product Lead, Cloud Analytics, RightScale
Q&A:
• David Campos
• Sales Development Representative, RightScale
Please use the “Questions” window to ask questions at any time
Your Speakers Today

3. • Cloud Cost Trends
• Tales from the Trenches
• 3 key cost management activities
• Cloud cost approach/philosophy
• Tips and Tricks
• Demo
• Q&A
Agenda
22

4. Cloud Management
Research Results:
Cloud Adoption Reaches Ubiquity
Cost Management Increases in Importance

5. Cloud Usage is Ubiquitous
Public Cloud
Only
Private Cloud
Only
94% of Respondents are Using Cloud
58% 7%29%
Public
and Private
Source: RightScale 2014 State of the Cloud Report

6. Multi-Cloud is the Preferred Strategy
Single private
9%
Single public
13%
No plans
4% Multiple private
11%
Multiple public
15%
Hybrid cloud
48%
74%
Enterprise Cloud Strategy
1000+ employees
Multi-Cloud
74%
Source: RightScale 2014 State of the Cloud Report

7. 0%
20%
40%
60%
80%
100%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Benefits Grow with Cloud Maturity
% of Respondents Reporting these Benefits
CapEx to OpEx
Business continuity
IT staff efficiency
Geographic reach
Higher performance
Cost savings
Faster time-to-market
Higher availability
Faster access to infrastructure
Greater scalability
Cost Savings is an Important Benefit for Cloud
6
Source: RightScale 2014 State of the Cloud Report

8. 0%
20%
40%
60%
Cloud Beginners Cloud Explorers Cloud Focused
%ofRespondents
Challenges Decrease with Cloud Maturity
% of Respondents Reporting these as Significant Challenges
Security
Compliance
Managing multiple cloud services
Integration to internal systems
Governance/Control
Performance
Lack of resources/Expertise
Cost
Integration to private cloud
Lack of support from IT
Yet Cost Management is an Ongoing Challenge
7
Source: RightScale 2014 State of the Cloud Report

9. • Different services and pricing options across clouds
• RightScale tracks16,00 unique prices, up from 12,000 in
2013
• AWS pricing and management alone difficult to manage
Cost Management is Key – Current Trends
8

10. 9
On-Demand Cloud Pricing is Complex
Google
Instance Type
CPU
Cores
RAM
AWS
Instance Type
CPU
Cores
RAM
Google New
On-Demand
(per hour)
AWS NEW
On-Demand
(per hour)
New Google
Price vs. New
AWS
n1-standard-1 1 3.75 m3.medium 1 3.75 $ 0.070 $ 0.070 0.00%
n1-standard-2 2 7.5 m3.large 2 7.5 $ 0.140 $ 0.140 0.00%
n1-standard-4 4 15 m3.xlarge 4 15 $ 0.280 $ 0.280 0.00%
n1-standard-8 8 30 m3.2xlarge 8 30 $ 0.560 $ 0.560 0.00%
n1-highmem-2 2 13 r3.xlarge 2 15 $ 0.164 $ 0.175 -6.29%
n1-highmem-4 4 26 r3.2xlarge 4 30.5 $ 0.328 $ 0.350 -6.29%
n1-highmem-8 8 52 r3.4xlarge 8 61 $ 0.656 $ 0.700 -6.29%
n1-highcpu-2 2 1.8 c3.large 2 3.75 $ 0.088 $ 0.105 -16.19%
n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $ 0.176 $ 0.210 -16.19%
n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $ 0.352 $ 0.420 -16.19%
n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $ 0.704 $ 0.840 -16.19%
Google vs. AWS On-Demand Pricing

11. Google Instance
Type
CPU
Cores
RAM
AWS
Instance Type
CPU
Cores
RAM
Google
100% Usage (
per year)
AWS 1-year
Heavy RI New
(per year)
New Google
Price vs. New
AWS
n1-standard-1 1 3.75 m3.medium 1 3.75 $430 $380 13.10%
n1-standard-2 2 7.5 m3.large 2 7.5 $859 $767 11.95%
n1-standard-4 4 15 m3.xlarge 4 15 $1,718 $1,535 11.95%
n1-standard-8 8 30 m3.2xlarge 8 30 $3,436 $3,052 12.60%
n1-highmem-2 2 13 r3.xlarge 2 15 $1,006 $830 21.20%
n1-highmem-4 4 26 r3.2xlarge 4 30.5 $2,013 $1,661 21.20%
n1-highmem-8 8 52 r3.4xlarge 8 61 $4,025 $3,321 21.20%
n1-highcpu-2 2 1.8 c3.large 2 3.75 $540 $554 -2.52%
n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $1,080 $1,117 -3.28%
n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $2,160 $2,217 -2.56%
n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $4,320 $4,440 -2.71%
RIs vs. Sustained-Use Adds to Complexity
10
Google Sustained-Use vs. AWS 1-year Heavy Reserved Instance Pricing
Source: RightScale

12. 11
The Big Win is Better Cost Management

13. Joe Emison
Real World Feedback

14. 13
About Joe
• AWS user since 2007, RightScale user since 2009
• CTO of BuildFax, the only real-time provider of property condition
data (from only national database of building permits)
• Contributor to InformationWeek and Network Computing
• Recently conducted IaaS benchmarks across all major CSPs
• User of cloud-cost-management tools since 2011

15. • Purchase Reserved Instances
• Make Budgets
• Watching Spend
Three Main Uses of Cloud Cost Management
1414

16. • BuildFax usage
• Steady-state
• Auto-scaling
• Dynamic workload (EMR, data pipeline)
• Philosophy
• Steady-state, newer generation: 3-year heavy
• Steady-state, older generation: buy used, upgrade
• Move data pipeline to OpenStack
• Dubious about value of light/medium
• Don’t forget AWS updates, price breaks
Uses of Cloud Cost Management: RIs
1515

17. • Good cloud architecture  Hard to budget
• Prerequisites to prediction
• Deployment-based calculations
• Increasing/decreasing/moving deployments are all common
• Understanding historical variable usage
• CSP offerings change so frequently that Excel is too painful
Uses of Cloud Cost Management: Budgets
1616

18. Uses of Cloud Cost Management: Spend
1717

19. • Push (email), not pull (dashboards)
• Expect to upgrade (OS, instance type) every 18 months
• PIOPS and RDS may not be worth the cost
• S3 and EBS snapshots can be expensive; plan accordingly
(see Glacier, lifecycle rules)
• S3 versioning can cost an enormous amount if done wrong
Tips and Tricks
1818

20. Manage your Costs Now
Cloud Analytics in Action

21. Visualize Cloud Costs
20

22. 21
Slice and Dice to Analyze Costs

23. Filter to Drill Down
22

24. 23
Create Scenarios with Patterns

25. ..to Forecast Future Costs

26. Compare Resource Types, Clouds, Etc.

27. Understand the Impact of Reserved Instances

28. 27
Track Costs for Private Clouds

29. 28
Track Costs for Private Clouds

30. Scheduled Reports

31. 30
Thank You and Q&A
Sign-up for the Cloud Analytics Trial
https://www.rightscale.com/cloud-analytics-free-trial
Get the Cloud Pricing Trends Report
http://www.rightscale.com/lp/cloud-pricing-trends-white-paper
Read coverage of Google and Amazon price wars
www.rightscale.com/blog