built-in guidance: optimizing public cloud costs
TRANSCRIPT
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Built-in Guidance: Public Cloud OptimizationTricia Pattee, VP of Product, HOSTINGMike McCracken, VP of Advanced Solutions, HOSTING
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Housekeeping
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• 85% of organizations have a multi-cloud strategy
• AWS remains in the lead, but competition is growing
• 52% are moving more workloads to the cloud
• Nearly half of organizations are implementing a cloud first strategy
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Public Cloud Adoption
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Implementation Trends:
• Lack of expertise/resources is biggest issue
• Staffing resources is extremely difficult
• Security remains a big concern
• Lack of centralized cloud governance
• Pricing is complicated and difficult to forecast
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Cloud Challenges
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Public Cloud Cost Optimization
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• Architectural Optimization
• Automation
• Resource Lifecycle Management
• Smart Procurement
4 Ways to Optimize Cloud Costs
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• Uncover overprovisioned devices
• Evaluate storage IOPS
• Choose the right instance types
• Choose the right product
• Evaluate licensing
Architectural Optimization
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Automation
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• Infrastructure as Code
• DevOps Automation
• Demand-Based Infrastructure
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Infrastructure as Code
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DevOps Automation
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Demand-Based Infrastructure
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• Automated Scaling
• Time of Day/Week/Month
• Usage Triggers
• On Demand Environments
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• Terminate unused instances
• Identify orphaned storage volumes
• Assign owners to resources & projects
• Just-in-time resource provisioning/de-provisioning
Resource Lifecycle Management
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Smart Procurement
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• The right cloud for the workload
• The right location
• The right resources
• Resource-type standardization
• Purchase commitments
• Billing Alerts
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The Right Cloud
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
AWS OnDemand
AWS 1-YearCommit
Azure OnDemand
Azure Ent.Agreement
Private Cloud
Estimated Single Virtual MachineMonthly Fee by Cloud
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The Right Location
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
United States Europe Asia
Estimated Single Virtual MachineMonthly Fee by Location
AWSOn Demand
AzureOn Demand
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AWS Instance
types (2 vCPU) RAM (GB) Annual Cost
t2.medium 4 $456
t2.large 8 $911
c3.large 3.75 $920
c4.large 3.75 $964
m4.large 8 $1,104
m3.large 7.5 $1,165
r3.large 15.25 $1,533
The Right Resource
3x Cost
Differential
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Resource Standardization
Instances
• 10 @ c3.2xlarge
• 5 @ c3.4xlarge
• 7 @ c4.2xlarge
• 3 @ m1.large
• 25 @ m3.2xlarge
• 17 @ m3.large
• 5 @ m3.medium
• 2 @ m4.2xlarge
• 1 @ m4.xlarge
• 50 @ t2.medium
• 10 @ t2.micro
• 9 @ t2.small
One-Off Instances
• 5 @ c3.4xlarge
• 3 @ m1.large
• 5 @ m3.medium
• 2 @ m4.2xlarge
Business Unit Standard Instances
• 10 @ c3.2xlarge
• 7 @ c4.2xlarge
• 25 @ m3.2xlarge
• 17 @ m3.large
• 10 @ t2.micro
Corporate Standard Instances
• 7 @ c4.2xlarge
• 1 @ m4.xlarge
• 50 @ t2.medium
• 9 @ t2.small
On-DemandInstance Purchase
(No Discount)
1-YearR.I. Purchase
(Base Discount)
3-YearR.I. Purchase
(Maximum Discount)
Amazon Marketplace R.I. Purchase/Sale
Reserved Instance purchase/sale to cover over and under Reserved
Instance purchases
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Purchase Commitments
Workloads
• Relatively standard instance types
• Relatively consistent usage
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10 20 30 40 50 60 70 80 90 100
Number of C4.Large Instances
Mark
Min
Max
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Amazon EC2 Reserved Instances (RI) provide a significant discount (up to 75%) on EC2 Instance costs compared to On-Demand pricing.
AWS Reserved Instance Defined
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AWS Billing automatically applies your RI’s discounted rate when attributes of EC2 instance usage match attributes of an active RI.
Instance Type &Tenancy
Region orAvailability Zone
Platform
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Reserved Instance -v- Instances
Amazon EC2 Reserved Instances (RI) are a COUPON that is applied to a customer’s monthly bill. RI’s are not an actual Instance purchase
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Applying Reserved Instance Credits
Amazon EC2 Reserved Instances (RI) must be applied to Instance purchases of the same instance type, tenancy, region/availability zone and platform
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Reserved Instance Purchasesin Action
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Reserved Instance Pricing
EC2 Instance Type AWS Region Operating System
MonthlyOn Demand
List Price
MonthlyDiscountAmount
MonthlyDiscount
Percentage
MonthlyReserved InstanceDiscounted Price
US East (N. Virginia)
c3.2xlarge US East (N. Virginia) Linux/UNIX $306.60 $80.56 26% $226.04
c3.4xlarge US East (N. Virginia) Linux/UNIX $613.20 $160.08 26% $453.13
c4.2xlarge US East (N. Virginia) Linux/UNIX $290.54 $74.08 25% $216.46
m1.large US East (N. Virginia) Linux/UNIX $127.75 $40.77 32% $86.98
m3.2xlarge US East (N. Virginia) Linux/UNIX $388.36 $92.53 24% $295.83
m3.large US East (N. Virginia) Linux/UNIX $97.09 $22.82 24% $74.27
m3.medium US East (N. Virginia) Linux/UNIX $48.91 $12.14 25% $36.77
m4.2xlarge US East (N. Virginia) Linux/UNIX $314.63 $88.38 28% $226.25
m4.xlarge US East (N. Virginia) Linux/UNIX $156.95 $44.24 28% $112.71
t2.medium US East (N. Virginia) Linux/UNIX $34.31 $5.66 17% $28.65
t2.micro US East (N. Virginia) Linux/UNIX $8.76 $1.57 18% $7.19
t2.small US East (N. Virginia) Linux/UNIX $16.79 $2.52 15% $14.27
US West (Oregon)
t2.small US West (Oregon) Linux/UNIX $16.79 $2.52 15% $14.27
EU (Frankfurt)
c4.2xlarge EU (Frankfurt) Linux/UNIX $331.42 $64.02 19% $267.40
t2.micro EU (Frankfurt) Linux/UNIX $10.22 $2.20 22% $8.02
NOTESAll discounting Assumes 1-year term with no upfront purchase
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HOSTING SERVICES
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Hybrid Infrastructure
on-premise
HOSTING PUBLIC CLOUD SERVICES
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For more information on how HOSTING can help guide your business to the cloud, go to www.HOSTING.com
Q&A