(ism402) cost optimization at scale

© 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Evan Crawford

Commercial Optimization - APAC Lead

Michael Fuller

Principal Systems Engineer - Atlassian

October 8, 2015 | Las Vegas, NV

Cost Optimization at ScaleISM 402

What to Expect from the Session

All of our customers…

Only pay for what they use

What to Expect from the Session

Some of our customers…

Only pay for what they need

What to Expect from the Session

we will share tips from our largest and most

innovative customers who only pay for what

they need.

Your business can save lots with these tips!

Example 1

Financial Services Enterprise

A Financial Services Enterprise

In twelve months…

A Financial Services Enterprise

Increased its

CPU usage

nine-fold

A Financial Services Enterprise

Only increased

its spend

four-fold

$260k saving per month!

Example 2

Technology Company

A Technology Company

In the last three

months…

A Technology Company

Doubled the CPU

and traffic used by

its Web servers

A Technology Company

Reduced its

instance spend

by 33%

$72k saving per month!

What levers did they pull?

Commercial Optimization Levers

Elasticity Step 1

Turn off Non

Production

Step 2

Auto Scale

Production

Commercial Optimization Levers

Right-Sizing Step 1

Use the Cheapest

Available Instance

Commercial Optimization Levers

Reserved Capacity Step 1

Cover always on

resources.

Target = 70%

always on covered

Step 2

Leverage RI

flexibility to

increase utilization

Target = 95% RI

Utilization

Example 1

Financial Services Enterprise

Elastic Compute Unit (ECU)

A consistent measure of CPU

processing power

Financial Services Enterprise

What Apr ‘14 Apr ‘15 Δ

Peak Compute

Usage

1,601k

ECU

13,957k

ECU+772%

Instance Costs $59k pm $244k pm +313%

$270k

saving

per

month!

Financial Services Enterprise

Unit Cost:

Elastic Compute Unit

Per Hour

60% Reduction

in Unit Cost

Financial Services Enterprise

Apr 1 2014 Apr 30 2014

Consistent 1,000 to

1,100 ECUs provisioned

Financial Services Enterprise

Apr 1 2015 Apr 30 2015

Financial Services Enterprise

40% Reduction

in Unit Cost

Financial Services Enterprise

30% Reduction

in Unit Cost

Financial Services Enterprise

Financial Services Enterprise

Example 2

Technology Company

Technology Company

What June Aug Δ

Data Out (TB) 36 95+163%

Compute584k

ECU

1,192k

ECU+104%

Instance Costs $36k pm $24k pm -33%

$72k

saving

per

month!

Technology Company

Cost:

Elastic Compute Unit

Per Hour

70% Reduction

in Unit Cost

Technology Company

C4 On Demand

= $0.02 / ECU

m1 On Demand

= $0.07 / ECU

Technology Company

Technology Company

60% Reduction

in Unit Cost

Technology Company

30% Reduction

in Unit Cost

Technology Company

How to use those levers

at scale?

Automation

Understand Opportunities

Automation

What we need to do

1. Auto-tag resources

2. Identify ‘always on’ Non Prod

3. Identify instances to down-size

4. Recommend RIs to purchase

5. Dashboard our status

6. Report on savings

Action Changes

1. Allocate costs by tag &

account

2. Turn off Non-Prod instances

daily

3. Quickly change instance

sizes

4. Move underutilized RIs

Automation

What we need to do

How to set up Automated Tools

Dashboards

https://github.com/evancraw/AWSOptimizationTemplates

A Reasonably Optimized Dashboard

A Dashboard ripe with opportunity

Reserved Instances and Right-Sizing

Build Your Own

Reserved Capacity Recommendations

Right-Sizing Recommendations

https://github.com/evancraw/AWSOptimizationTemplates

From

Automatic Tagging

To

Automatic Tagging

http://ape.gs/AWSAutoTag

Tagging Governance with AWS Config

Right-size with cloud native provisioning

AWS CloudFormation

AWS OpsWorks

Handy Tools

Move RIs automatically

https://github.com/jros2300/reservedinstances

Tableau Templates

https://github.com/evancraw/AWSOptimizationTemplates(Dashboards, right-sizing, reserved capacity)

Start / Stop Non-Prod Daily

ape.gs/PowerCycleReInvent

$

$

$

$

$

$

$

$

Something missing?

Unit

Cost

Why will those levers be used?

A Lean Culture

What Lean Culture Looks Like

Users: • Understand

• Take responsibility for

• Act to lower

The costs of their usage

as a normal part of their day

Build a Lean Culture

Targets and Metrics Cloud Competency

Center

AWS Enterprise

Support

A Cycle of Cost Optimization

✔

✔

✔

✔✘

✘

✘

✘

$

$

$

$

$

Metrics

1. % Instances turned off daily

2. % Instances right-sized

3. % Always On Resources Covered by RI

4. % RI Utilization

All weighted by ECU

What Works

Think Big

Start Small

Learn Fast

Trust and Verify

Lean Culture

Watch out for

Wait until you get Big

Analysis Paralysis

Try to do it all at once

Constrain innovation by

making teams wait

How do we explain the costs?

How do we allocate the charges to the right team?

How do we save money?

Whose responsibility is it to save money?

2 Years Ago

How do we explain the costs?

How do we allocate the charges to the right team?

How do we save money?

Whose responsibility is it to save money?

Cloud Engineering Team

1UP

Finance

Team

Track Down AWS Accounts

Consolidated Billing

Account A

Account B

Account C

Total

$$

$$$$

$$$

$$$$$$$

Single Monthly Invoice

Centralize AWS Account Creation

What is in the Accounts?

TAGS

Create a Tagging Policy

CSV

JSON

?

Our Tags

Cost Center

Responsible

Owner

Service

Name

Number of Tags vs Enough Information

Report on Tagging Progress

Tag at Resource Creation

Automate Tagging

Build Reports from the Tags

How do we Allocate the Charges to the Right Team?

Untagged Costs

How do we explain the costs?

How do we allocate the charges to the right team?

How do we save money?

Whose responsibility is it to save money?

Reserved Instances

Reserved Instances without Statistics

Statistics on Usage and Costs

Statistics on Usage and Costs

EC2 Usage by Hour

Always-On Load

Elastic Load

Convert Always-On into Elastic Load

Convert Always on to Elastic

EC2 Instance (M4.Large) Running Cost Savings

4 Weeks On Demand 24/7 $85 $0

Convert Always on to Elastic

EC2 Instance (M4.Large) Running Cost Savings

4 Weeks On Demand 24/7 $85 $0

4 Weeks Reserved Instance 24/7 $50 $35

Convert Always on to Elastic

EC2 Instance (M4.Large) Running Cost Savings

4 Weeks On Demand 24/7 $85 $0

4 Weeks Reserved Instance 24/7 $50 $35

4 Weeks On Demand Mon-Fri 10hrs/day $25 $60

Scheduled Run

Times

Scheduled Run Times

Scheduled Run

Times

(Batch Jobs)

Autoscaling

Rightsizing

Reserved Instances

Reserved Instances

Reserved Instances

Results

How do we Explain the Costs?

Tags Reports

How do we Allocate the Charges to the Right Team?

Reports

$

$

$

How do we Save Money?

Volume

Discounts

Reserved

Instances

Elastic

Load

Rightsizing

Whose Responsibility is it to Save Money?

$

Whose Responsibility is it to Save Money?

$

Thank you!

What to do next

Next Steps

Set up a Cloud

Competency Center

Bring in the right

tools

Use metrics to

reinforce behavior

Use partners to

accelerate!

Remember

There is a lot of money to save

Thank you!

Remember to complete

your evaluations!

Related Sessions

ISM206 - Modern IT Governance Through Transparency

and Automation

ISM207 - The Lean Enterprise: How the Principles of

Lean Are Transforming Corporate Innovation

ISM208 - The Science of Saving with AWS RIs

ARC307 - Infrastructure as Code