aws enterprise summit netherlands - cost optimisation at scale
TRANSCRIPT
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Mario ThomasSenior Consultant EMEA
AWS Professional Services
21 September 2016
Cost Optimisation at ScaleReducing the cost of using AWS
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What We’ll Cover Today
• A quick overview of TCO• Does “at scale” apply to you?• Applying “architecting for cost” principles to your TCO
analysis and your AWS account(s)• Recap
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What is TCO?
Definition: Comparative total cost of ownership analysis (acquisition and operating costs) for running an infrastructure environment end-to-endon-premises vs. on AWS.
Used for:
1) Comparing the costs of running an entire infrastructure environment or specific workload on-premises or in a co-location facility vs. on AWS
2) Budgeting and building the business case for moving to AWS
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AWS Includes Everything In It’s Price
Hardware in a Data Center
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Cost is Rarely the Only Reason to Choose AWS
Pay-as-you Go Model
Lower Overall Costs
StopGuessing Capacity
Agility / Speed / Innovation
Avoid Undifferentiated
Heavy LiftingGo Global in
Minutes
✔ ✔ ✔ ✔ ✔ ✔On-
Premise/ Co-Location
X X X X X X
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Businesses are migrating IT to cloud
I'm not going to sell another aircraft engine because I run a global data center operation really well. That's
AWS's differentiator in the environment.
Jim Fowler, CIO General Electric (2015)
2014 201734 Data Centers
4 Data Centers
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Cloud can be a better solution that build
We work closely with AWS to develop a security model, which we believe
enables us to operate more securely in the public cloud than we can in our
own data centers.
Rob Alexander, CIO Capital One (2015)
2014 20178 Data Centers
3 Data Centers
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Trend: Retirement of Legacy Technology DebtFrom 6 Data Centers to 2. Time to market reduced by 6 months.
Productivity up 100% in front end-processes; up 40% in back-end processes.
Closed 8 Data Centers.Queries 98% faster, 80% cheaper than previous data warehouse solution.
Data Center server footprint cut 91%. $ 3.5M saved over 5 years.
75% ops migrated to AWS. $ 20M annual savings.
Saved 50% in CAPEX by exiting Data Centers.
From 40 Data Centers to 6. 25% cost savings vs. colo.30% faster development
Migrated 500+ servers, closed Data Centers, cut costs by 40%, grew productivity over 30%.
(Italy) Reduced CAPEX 30%. PCI-DSS compliant within 3 months.
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Traditional Data Centers are costly and inefficient…
Initial Fixed Capacity
Utilization
Unused Capacity = Wasted $
Downtime, Lost Customers, Lost Revenue (Impossible to measure)
More Wasted $
Time
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TCO = acquisition costs + operations costs
Hardware – Server, Rack Chassis PDUs, ToR
Switches (+Maintenance)
Software - OS, Virtualization Licenses
(+Maintenance)
Facilities Cost
Hardware – Storage Disks, SAN/FC Switches Storage Admin costs
Network Hardware – LAN Switches, Load Balancer
Bandwidth costsNetwork Admin costs
Server Admin / Virtualization Admin4
Diagram doesn’t include every cost item. For example, software costs can include database, management, and middle-tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes, etc. IT laborcosts can include security admin and application admin costs.
Space Power Cooling
Facilities Cost
Space Power Cooling
Facilities Cost
Space Power Cooling
Server Costs
Storage Costs
Network Costs
IT Labor Costs
1
2
3
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EfficiencyCategory Efficiencyp/app %ofTotalBusinessProductivity 181,669.00$ 41%ITStaffProductivity 133,389.00$ 30%ITInfrastructureCostReduction 131,073.00$ 29%
Total 446,131.00$ 100%
Source:2015StudyonAWSValue
The opportunity cost of on-premise IT
• Only 29% of the benefits of AWS Cloud are from IT cost reduction
• 41% of the AWS Cloud opportunity is increased productivity
IDC projects that organizations using AWS will realize increased revenue and productivity benefits worth an average of $173,003 per application per year over five years, or $7.04 million per organization
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…and that these benefits increase over time
Source: IDC Business Value of AWS Accelerates over time
According to IDC, this relationship between length of time using AWS and return is due to customers leveraging the more optimized environment to generate more applications along a learning curve.
$1 Investment in AWS
$8.40 in benefits
At 60 Months of using AWS
~8X$3.50 in benefits
$1 Investment in AWS
At 36 Months of using AWS
~3X
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The TCO Window
$
1 2 3 4 50
TCO
Migration Cost
Cost Optimising / BAU
Current / Do Nothing
AWS Environment
Payback Period
Time (Months)
Cost
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Cost Optimisation
$ $
Paying for whatyou use
Paying for whatyou need
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The four pillars of cost optimisation
Right sizing Reserved Instances
Increase elasticity
Measure, monitor, and
improve
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Cost Optimisation
Simple Stimulating Stretching
Consolidated BillingPermissionsTaggingIdle Resources
Design for Elasticity
Instance Right SizingStoragePurchasing Options
OS LicencingOffloading Architecture
Higher Level Services
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Consolidated Billing
• Receive a single bill for all charges incurred across all linked accounts‒ Share RI discounts‒ Combine tiering benefits
• View & manage linked accounts• Add additional accounts
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Permissions
How are you controlling the provisioning of
resources?
Control who canprovision resources
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Tagging
• Use tagging to identify resources• Use tags to audit resources• Turn off untagged resources
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Idle Resources
• Dev/Test (Non-Prod) instances• Use simple instance start/stop, or• Tear down/build up altogether• Instances are disposable
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Instance 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).
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Use Amazon CloudWatch to collect and track metrics
CloudWatch
Match resources to workload
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Amazon CloudWatch monitoring
Basic• 7 metrics for Amazon EC2
including:• CPU utilization• Data transfer• Disk usage and more
• 5-minute frequency• Metrics for Amazon EBS,
Amazon DynamoDB, Amazon RDS, etc.
Detailed• 1-minute frequency• Aggregation by instance type and
AMI
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Instance families: Example
Instance vCPU Mem(GiB)
Monthly price(3-yr AURI )
Ideal use case
c4.2xlarge 8 15 $125.44 Best price-compute performance
m4.2xlarge 8 32 $137.25 Balanced
r3.2xlarge 8 61 $179.25 Lowest cost per GiB RAM
r3.xlarge 4 30.5 $89.61 Lowest cost per GiB RAM
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t2.medium
4 GiB RAM Baseline performance: 40%Bursts beyond this based on CPU creditsLess than $18 per monthDetails: http://amzn.to/1sl2bKaWeb servers, dev, small databases
t2
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t2 vs m3.medium or c4.large
Instance vCPU Mem(GiB)
Monthly price(3-yr AURI )
Ideal use case
m3.medium 1 3.75 $19.08 Always available, balanced
c4.large 2 3.75 $31.36 Always available, compute
t2.medium 2 4 $16.86 Bursty workloads
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Savings potential
If t2 works for you• 11%: Switch from m3.medium to t2.medium• 46%: Switch from c3.large to t2.medium
Instance optimization• 9%: Switch to c4 for compute-intensive apps
(m4.2xl -> c4.2xl)• 35%: Switch to r3 for memory-intensive apps
(m4.2xl -> r3.xlarge)
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Storage
AWS Cloud
Amazon Glacier
Gateway Appliance/ AWS Storage Gateway
Amazon S3
Block File
On-premises Data Center
Archive Backup Disaster Recovery
Amazon EBS
• Amazon S3 Standard Infrequent Access‒ Lower cost of storage
• Amazon S3 Reduced Redundancy‒ 99.99% durability vs. 99.999999999%‒ Up to 20% savings‒ Great for files that are easy to reproduce
• Amazon Glacier‒ Same durability as S3‒ 3 to 5 hours restore time‒ Up to 89% savings‒ Great for archiving, long-term backups and
old data
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Instance Purchasing Options
On-Demand
Pay for compute capacity by the hour
with no long-term commitments
For spiky workloads, or to define needs
Reserved
Make a low, one-time payment and receive a significant discount on the hourly charge
For committed utilization
Spot
Bid for unused capacity, charged at a
Spot Price which fluctuates based on supply and demand
For time-insensitive or transient workloads
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Reserved Instances
Commitment Level1 Year3 Year
AWS Services Offering RIsAmazon EC2 Amazon RDSAmazon DynamoDBAmazon RedshiftAmazon ElastiCache
* Dependent on specific AWS service, size/type, and region
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Reserved Instances
Step 1: RI Coverage• Cover always on resources
Step 2: RI Utilization• Leverage RI flexibility to increase utilization• Merge and split RIs as needed
Rule of thumb: Target 70-80% always on coverage and 95% RI utilization rate.
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• Be Fault Tolerant• Workloads should be Stateless• Loosely Coupled workloads preferred • If possible, deploy to Multiple AZs • Instant Flexibility is king• Take advantage of the 2 minutes warning • There is always Spot capacity available ¢
Save up to 90% compared to On-Demand¢
What could your team do with a 10,000 core data center that costs $100 per hour, with one click?
Spot Instances
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Spot InstancesPricing• Up to 90% discount
Elastic• Minimum Commitment
• Commit to 1 hour• Tradeoff
• Potential for interruption
Picking the right Spot Bid Price - Tolerance for interruptions, % likelihood of termination
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0
2
4
6
8
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
/Spot
Mixed Use Instances
Reserved Instances enable you to reserve capacity for one or three years by paying a low, one-time fee for the capacity reservation and receiving a significant discount on the hourly charge for your instances
AWS Services Offering RIs • Amazon EC2 • Amazon RDS• Amazon DynamoDB• Amazon Redshift• Amazon ElastiCache
On DemandSpotRI
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OS Licensing
• Utilise Amazon Linux• Supported by Amazon• No licence fees• Regularly updated• Savings of up to 30% over other options*
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Offload Your Architecture
Standard Setup• 4 x Medium Instances
$485• AWS Data Transfer 1 TB
$194• Total = $679
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Offload Your Architecture
+
Standard Setup• 4 x Medium Instances
$485• AWS Data Transfer 1 TB
$194• Total = $679
Optimized• 1 x Medium Instance
$121• CloudFront Data 1 TB
$168• CloudFront Requests
$1.89• Total = $291
57%
6X
Cheaper
Faster
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Design for Elasticity
Turn off non-production instances• Look for dev/test, non-prod instances that are
running always-on and turn off
Autoscale production• Use Auto Scaling to scale up and down based
on demand and usage (e.g., spikes)
Rule of thumb: Shoot for 20-30% of EC2 instances running on demand to be able to handle elasticity needs.
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Use Auto Scaling or queue-based approaches to add resources when needed, and turn them off when not
Amazon SQS Queue
Auto Scaling
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Automatic resizing of compute clusters based on demand
Trigger autoscaling policy
Feature DetailsControl Define minimum and maximum instance pool
sizes and when scaling and cool down occurs.
Integrated to Amazon
CloudWatch
Use metrics gathered by CloudWatch to drive scaling.
Instance types Run Auto Scaling for On-Demand and Spot Instances. Compatible with VPC.
AWS autoscaling create-autoscaling-group— Auto Scaling-group-name MyGroup— Launch-configuration-name MyConfig— Min size 4— Max size 200— Availability Zones us-west-2c
Use Auto Scaling
Amazon CloudWatch
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Utilization and Auto-Scaling: GranularityMore small instances vs. less large instances
29 Large @ $0.32/hr= $9.28
59 Small @ $0.08/hr= $4.72
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Utilization and Auto-Scaling: Lost $ / Lost Customers
Initial Fixed Capacity
Utilization
Unused Capacity = Wasted $
Downtime, Lost Customers, Lost Revenue (Impossible to measure)
More Wasted $
Time
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Higher Level Services
AWSLambda
Elastic Load Balancing
Amazon ECR Amazon CloudFront
Amazon EFS Amazon Glacier
AmazonS3
AmazonDynamoDB
Amazon ElastiCache
AmazonRDS
Amazon Redshift
Amazon VPC
AmazonRoute 53
AWS KMS
AWS WAF Amazon Elasticsearch Service
Amazon EMR
Amazon Kinesis
Amazon Machine Learning
AWS IoT AmazonWorkSpaces
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Higher Level Services
Amazon RDS Multi-AZ
High availability with a mouse click
Set up primary and standby instancesSet up identical volumesCreate synchronous replicationCreate and manage DNS entriesDetect instance failure conditionsDetect network failure conditionsDetect storage failure conditions…......Decide when to fail overRe-establish primary secondary connections
Do-it-yourself MySQL replication
Potentially ~100+ manual steps
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Detailed billing reports and
cost insights
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Detailed Billing Reports
http://amzn.to/1swNwLV
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AWS Well Architected
• Security• Reliability• Performance• Cost Optimisation
https://d0.awsstatic.com/whitepapers/architecture/AWS_Well-Architected_Framework.pdf
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Creating a culture of cost transparency
Targets and Metrics Cloud Competency Center
AWS Enterprise Support
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Metrics & targets
% Instances turned off daily% of Instances Right-Sized% Always on Resources Covered by RIs% RI Utilization
✔✔✔✔✘
✘
✘
✘
Set up metrics to define success and track progress
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Recap
Simple Stimulating Stretching
Consolidated BillingPermissionsTaggingIdle Resources
Design for Elasticity
Instance Right SizingStoragePurchasing Options
OS LicencingOffloading Architecture
Higher Level Services
© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS Professional Services
• A global team of consultants across EMEA, APAC and the Americas
• Work with Enterprise and mid-market customers across many industries
• Specialists in IT Transformation, Security, DevOps, Big Data and Infrastructure
• Medium to long-term engagements of one month or more
• Provide guidance, advice, best practice and accelerates adoption
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Resources to get you startedAWS TCO Calculatorhttps://awstcocalculator.com
AWS Economics Centrehttp://aws.amazon.com/economics/
Case Studies & Researchhttp://aws.amazon.com/economics/
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Email me if you have any questions about today’s presentation:[email protected]
Thank You!