AWS Cost optimization at scale

©2017,AmazonWebServices,Inc.oritsAffiliates.Allrightsreserved.

HeatherMatson,SeniorAccountExecutiveEducation

RandyRidgley,SolutionsArchitect

February2017

CostOptimizationatScale

WhattoexpectWewillintroduceourframeworkforoptimizingyourAWSbillbyfocusingonpayingonlyforwhatyouneed.

Sharelessonslearnedbasedonexamplesfromsomeofourmostsuccessfulcustomers.

Andleaveyouwithactionableideas totakebacktotheofficetoimplementimmediately.

ChapterI:BuildWithCostInMind(WellArchitected)

BestPracticeFrameworkforArchitectingonAWS

PerformanceEnsureasystemdeliversmaximumperformanceforasetofresources.

CostOptimizationAchievethelowestpriceforaworkloadtakingintoaccountfluctuatingneeds.

ReliabilityEnsuringagivensystemisarchitectedto

meetoperationalthresholdsduringaspecificperiodoftime.

SecurityReviewdefinitionsandcompliancebest

practices.

HowdocustomerslowertheirTCO withAWS?

1

Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates

Over Time.” December 2013

“Average of 400 servers replaced per

customer”

Replaceup-frontcapitalexpensewithlower“payforwhatyouuse”variablecost

model

3

59 Price Reductions since 2006

EconomiesofscaleallowAWSto

continuallylowercosts

2

Pricingmodelchoicetosupportvariable&stable

workloads

On-DemandReserved

SpotDedicated

LoweringTCOthroughcloudoptimization

LiftandShift Optimized fortheCloud Designedforthecloud

Micro-services&Serverless

ManagedServicesInfrastructureServices

TCO:upto30%* TCO:upto58%* TCO:upto75%*

*https://aws.amazon.com/economics/learn-more/

Ex:AmazonEC2,AmazonEBS,AmazonEFS,AmazonVPC,VMImport/export…

Ex:AmazonRDS,AmazonAurora,AmazonElasticache,AmazonRedshift,AmazonOpsWorks,AmazonElasticSearch,AmazonEMR

Ex:AmazonS3,AmazonSQS,AWSLambda,AmazonKinesis,AmazonDynamoDB,AmazonCognito,AWSDMS,AWSWAF,AWSIOT

Where do you start?

TheFivePillarsofCostOptimization

Right-sizingyourinstances

Picktherightpricingmodel

Increaseelasticity

Measuring&monitoring

Matchusagetostorageclass

Pillar1:Right-SizingRight-sizing• Selectingthecheapestinstanceavailablewhile

meetingperformancerequirements• LookingatCPU,RAM,storage,andnetwork

utilizationtoidentifypotentialinstancesthatcanbedownsized

• LeveragingAmazonCloudWatchmetricsandsettingupcustomRAMmetrics

Ruleofthumb:Rightsize,thenreserve.(Butifyou’reinapinch,reservefirst.)

Pillar2:IncreaseElasticityTurnoffnonproductioninstances• Lookfordev/test,nonproductioninstancesthatare

runningalways-onandturnthemoff.

• Lambda+CloudWatch =AutomatedScheduling*

Autoscaleproduction• UseAutoScalingtoscaleupanddownbasedon

demandandusage(forexample,spikes).

*https://aws.amazon.com/premiumsupport/knowledge-center/start-stop-lambda-cloudwatch/

Pillar3:LeveragingtheRightPricingModel

On-DemandInstancesReservedInstancesSpotInstances

On-DemandInstances

Short-term, spiky and unpredictable

Low cost and flexible

Develop and test

ReservedInstancesforAlways-On Instances

Commitmentlevel• 1year• 3year

AWSservicesofferingReservedInstances• AmazonEC2• AmazonRDS• AmazonDynamoDB• AmazonRedshift• AmazonElastiCache

*DependentonspecificAWSservice,size/type,andregion

EC2InstanceGrowth

2007 2008 201120102009 20162013 2014 2015

3

60+

IncreasingcustomerchoicethroughacceleratingInstanceinnovation

InstancesLaunchedin2016:

• AcceleratedComputing:p2• MemoryOptimized:x1.16xl• Generalpurpose:m4.16xl

57

11 12

23

42

52

…ConvertYourReservedInstancesWithaConvertible ReservedInstance,youcanmodify yourexistingreservationacross:

Instancefamilies

Instancesizes

Operatingsystems

Tenancy

ConvertibleReservedInstancedetails

Commitmentlevel• 3year

AWSservicesofferingReservedInstances• AmazonEC2

*DependentonspecificAWSservice,size/type,andregion

ReservedInstancesStep1:ReservedInstanceCoverage• Coveralways-onresourceswithstandardor

convertibleReservedInstances

Step2:IncreaseReservedInstanceUtilization• Knownarchitectures:LeverageStandardReserved

Instanceflexibilitytoincreaseutilization.• Growingorchangingarchitectures: Leverage

ConvertibleReservedInstancesacrossfamilies,sizes,andOS.

• RegionalBenefit: Consolidatedbilling,reservationnotcritical

SpotInstances

Userswithurgentcomputingneedsorlargeamountsofadditionalcapacity

Timeorinstanceflexible

Experimentand/orbuildcost-sensitivebusinesses

ConsiderSpot for Elastic Workloads

Options• SpotFleettomaintaininstanceavailability

• SpotBlockdurations(1-6hours)forworkloadsthatmustruncontinuously

Commitmentlevel• None

*ComparedtoOnDemandpricebasedonspecificEC2instancetype,region,andAvailabilityZone

SpotRules

50%ofOD

75%ofOD

25%ofOD

You pay the market price87% discount!

You’llNeverPayMoreThanYourBid

WhichEC2purchasingmodelisrightforme?

StrikeaBalance

Findingbalancebetweenpricingoptions

ReservedInstances

On-Demand Spot

“Butmyapplicationsaretoosmall

forAutoScaling!”

AmazonEC2Container Service

• EasilymanageDockercontainers• Flexiblecontainer placement• DesignedforusewithotherAWSservices• Extensible• PerformanceatScale• Secure

10%

15%

7%

12%

20%

9%

ConsolidatewithAmazonECS

App1 App2

App3 App4

App5 App6

6

12 345

AmazonECScluster

GetridofidletimewithAWSLambda• Automaticscaling• Automaticprovisioning• Noneedtomanageinfrastructure• Justbringyourcode• $0.20permillionrequests,1Mfree• 100mspaymentgranularity• Neverpayforidle

Lessthan40%utilization?ConsiderusingAWSLambdainstead!

Usecase:Serverlesswebapps

• AmazonS3forservingstaticcontent• AWSLambdafordynamiccontent• AmazonAPIGatewayforhttpsaccess• AmazonDynamoDBforNoSQLdatastorage

DynamiccontentinAWSLambda

DatastoredinAmazonDynamoDBAPIGatewayStaticcontentin

AmazonS3 Browser

Pillar4:LeveragingtheRightStorageClass

BlockStorageObjectStorage

AWSImport/ExportSnowball• AcceleratePBswithAWS-provided

appliances• 80TBmodel,globalavailability

AWSStorageGateway• Instanthybridcloud• Upto120MB/sclouduploadrate

(4ximprovement),and

DataingestionintoAWSstorageservices

AmazonKinesisFirehose• Ingestdevicestreamsdirectlyinto

AWSdatastores

AWSDirectConnect• COLOtoAWS

ISVConnectors• CommVault• Veritas• etcetera

AmazonS3TransferAcceleration• Movedataupto300%faster

usingAWS’sprivatenetwork

AWSImport/ExportSnowball• AcceleratePBswithAWS-provided

appliances• 80TBmodel,globalavailability

AWSStorageGateway• Instanthybridcloud• Upto120MB/sclouduploadrate

(4ximprovement),and

DataingestionintoAWSstorageservices

AmazonKinesisFirehose• Ingestdevicestreamsdirectlyinto

AWSdatastores

AWSDirectConnect• COLOtoAWS

ISVConnectors• CommVault• Veritas• etcetera

AmazonS3TransferAcceleration• Movedataupto300%faster

usingAWS’sprivatenetwork

Butareyouoptimizing yourobjectstorage?

Activedata ArchivedataInfrequentlyaccesseddata

Milliseconds MultipleRetrievalRatesMilliseconds

$0.023/GB/mo* $0.004/GB/mo$0.0125/GB/mo

ObjectStorageClassesonAmazonS3

*First50TB,Next450TB$0.022/GB,Over500TB$0.021/GB

Standard

Hot

Standard- InfrequentAccess

Warm

AmazonGlacier

Cold

RunningtheNumbers:S3orS3-IAComparing1PBofobjectstorage*

1PBMonthly

S3 S3-IA Savings%

$24,117 $14,116 41%

Ruleofthumb:Breakeven=105% RetrievedperMonth

ContentAccessedperMonth

10%

$24,117 $18,350 24%50%1PBMonthly

$24,117 $23,593 2%100%1PBMonthly

*BasedonUS-EastPrices

CaseStudy:PuttingitTogether

ATechnologyCompany

•Inthreemonths…

ATechnologyCompany

•Doubled CPUandtrafficusedbyitsWebservers

ATechnologyCompany

•WhilereducingEC2spendby33%

$72ksavingpermonth!

Howdidtheydoit?

Solvingthegrowthchallenge

Step1:Right-sizeandupdateinstancesm1ondemand$0.07perECU

c4ondemand$0.02perECU

Theimpactofright-sizing

70%reductioninunitcost

Step2:Reserve

Theimpactofreservations

30%reductionInunitcost

Puttingittogether

85%reductioninunitcost!

Soundsprettyeasy,right?Notreally.

Inreality,itisverycomplex.• Scale• Behavioralchange• Visibility• Ownership

ChapterII:Implement&Maintain(WellOperated)

Howdoyouimplementthosebestpracticesatscale?(SpoilerAlert:Rememberthe5th PillarofCostOptimization?)

Pillar5:Measure&Monitor

Automation.

1. Identify always on instances.2. Identify instances to downsize.3. Identify warm / cold storage.4. Recommend Reserved

Instances to purchase.5. Dashboard our status.6. Report on savings.

EnablingCostTransparency

EnablingCostTransparencyMust have tagging:• Cost center• Application or workload • User• Expiration date• Automation support

ToolsforMeasuring&Monitoring

Option1:DIYBuildyourowncustomdashboard

We’vehelpedcustomerssetuptheirowndashboardsandtools.

Metrictrackingsavings

Spend&metricsbyaccount

EC2usagebypurchaseoption

Option2:UseaPartner

Andpartnershavebeensuccessfulhelpingcustomersmonitor&managecost

Option3:AWSToolsTrustedAdvisor

AWSTrustedAdvisorHelping customers automate best practices (checks) across cost optimization, security, fault tolerance, and performance improvement

Red (action recommended)Orange (investigation recommended)Green (no problem detected)

IdleTestInstancesRunninginus-west-1

AutomatingTrustedAdvisorwithAWSLambda

AWSTrustedAdvisor

AWSLambda

ActionsonAWSresources

AmazonCloudWatchevents

Notifications

http://docs.aws.amazon.com/awssupport/latest/user/cloudwatch-events-ta.html

AWSBillingalerts

AWSBillingconsole

Leveragemanagedservices

• UseAmazonRDS,DynamoDB,ElastiCacheforRedisorAmazonRedshift

• Insteadof runningyourowndatabase

• AmazonEMR,Elasticsearch Service• Insteadof runningyourowncluster

• AmazonSQS• AmazonKinesis,

AmazonKinesisFirehose,Analytics,AmazonSNS,andmore…

AWS has experts for each service

RDSAmazonRedshift

AmazonElasticsearch

Service

AmazonKinesisSQS

EstablishClearTargets&Metrics

MetricsandTargets

• %instancesturnedoffdaily• %ofinstancesright-sized• %always-onresourcescoveredbyReservedInstances

• %ReservedInstanceutilization

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Definesuccessbyestablishingmetricsandtrackprogress

Cost-Based

Cycleofcostoptimization✔✔✔✔✘

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Thankyou!

HeatherMatson– matsonh@amazon.comRandyRidgley– rridgley@amazon.com