(ent301) understanding total cost of ownership on aws | aws re:invent 2014
TRANSCRIPT
November 13, 2014 - Las Vegas, NV
Marc Johnson & Rohit Rahi, Amazon Web Services
Todd Curry, The Boston Consulting Group
Framing the
business case
Developing a
TCO estimate
Customer
example
“We need to focus on our core business — not
building and maintaining infrastructure…”
“Reducing our overall cost is a high priority.”
“We are looking to improve performance and
expand globally in a flexible way.”
Capacity
planning
Business
Demand
Operational
challenges
Can your existing infrastructure flex to meet demand in a cost
effective way?
Capacity
planning
Business
Demand
Operational
challenges
What is your average server utilization?
How much is overprovisioned for peak load?
Capacity
planning
Business
Demand
Operational
challenges
Will you run out of power, cooling, and/or space some time in the future?
Have you budgeted for both average and peak power requirements?
Pay-as-you go model
Lower overall costs
Stopguessing capacity
Agility / speed /
innovation
Avoid undifferentiated
heavy lifting
Go global in minutes
✔ ✔ ✔ ✔ ✔ ✔
On-premise/
colocation x x x x x x
Cost-focused Business value-focused
Used IT Capacity
Idle Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacityTotal
Studies by Gartner, McKinsey and the Uptime Institute have stated that typical
data centers are on averageless than 50% utilized
www.uptimeinstitute.organthesisgroup.com/wp-content/uploads/2014/08/Data-Center-Issue-Paper-final826.pdfwww.nytimes.com/2012/09/23/technology/data-centers-waste-vast-amounts-of-energy-belying-industry-image.html
Application/Workload drivers
Fluctuating/“Spiky” Part-time Cyclical
Peak
PeakPeak
Used IT Capacity
Idle Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacityTotal
Lengthy procurement process
Common IT purchasing behaviors and limitations
Buying everything up-front
No “trade-ins” or “trade-backs”
Used IT Capacity
Idle Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacityTotal
Drastically reduce procurement time
Only pay for what you use
Trade-back — sell your Reserved
Instances
Trade-ins — change instance types
Purchasing IT using AWS
New projects
New application functionality
Research and development
Free up your expensive resources for…
≠
On-premises
traditional
data center
On-premises virtualized
data center
CAPEX
OPEX
OPEX
AWS
CAPEX
OPEX*
Cost savings from running
internal IT more efficiently AWS scale• Multiple new data centers built each year
• Volume purchasing, highly automated, supply
chain optimization
Utilization fundamentally higher in
AWS cloud• Aggregating noncorrelated workloads, scale,
spot market
Amazon specific hardware designs• OEM acquisition of custom servers and
net gear
• Direct purchasing of disk, memory, and CPU
• AWS controlled hypervisor and net protocol
layers
Diagram is not to scale
*For AWS, OPEX costs includes Reserved Instances one-time low, up-front payment, if Reserved Instances are used.
Cost savings from moving
to a public cloud provider
Network
costs
Storage
costs
Server
costs
Hardware – server, rack
chassis PDUs, ToR
switches
(+maintenance)
Software - OS,
virtualization licenses
(+maintenance)
Overhead cost
Space Power Cooling
Hardware – storage disks,
SAN/FC switches
Overhead cost
Storage admin costs
Network hardware – LAN
switches, load balancer
bandwidth costs
Network admin costs
Overhead cost
IT labor
costs
Server admin
Virtualization admin
1
2
3
4
Space Power Cooling
Space Power Cooling
illustrative
Diagram doesn’t include every cost item. E.g., software costs can include database, management, middle tier software costs. Facilities cost can include costs
associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.
Choose
your
hardware/
software
vendor
Server
network
hardware
OS +
Virtuali-
zation
software
DC/colo
floor
space
Power
cooling
Software-
defined
networking
Data center
personnel
HW
maint.
Storage
redundancy
Resource
mgmt. /SW
automation
Upgrades are your responsibility Upgrades happen automatically
On-premises infrastructure
VPC support
Do-it-yourself MySQL replication
Potentially ~100+ manual steps
Set up primary and standby instances
Set up identical volumes
Create synchronous replication
Create and manage DNS entries
Detect instance failure conditions
Detect network failure conditions
Detect storage failure conditions
Decide when to fail over….
Re-establish primary secondary connections.
Amazon RDS Multi-AZ
HA with a mouse click
1 Server for 8 hours 1 Server for 8 hours
1 Server for 8 hours
1 Server for 8 hours
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Serv
er
load
Hour of day
Capacity of 1 Server
Traditional capacity required
Big Data Architecture & Advanced Analytics
Time
constraints
Data
throughputCost, familiarity
and security
http://aws.amazon.com/economics/
http://www.awstcocalculator.com/
