Transcript

TALES FROM THE TRENCHES:

UNDERSTANDING & MANAGING

CLOUD COSTS

• Kim Weins • VP Marketing, RightScale

• Joe Emison • CTO, BuildFax

• Hassan Hosseini • Product Lead, Cloud Analytics, RightScale

Q&A:

• David Campos • Sales Development Representative, RightScale

Please use the “Questions” window to ask questions at any time

Your Speakers Today

• Cloud Cost Trends

• Tales from the Trenches

• 3 key cost management activities

• Cloud cost approach/philosophy

• Tips and Tricks

• Demo

• Q&A

Agenda

2 2

Cloud Management

Research Results:

Cloud Adoption Reaches Ubiquity

Cost Management Increases in Importance

Cloud Usage is Ubiquitous

Public Cloud

Only

Private Cloud

Only

94% of Respondents are Using Cloud

58% 7% 29%

Public

and Private

Source: RightScale 2014 State of the Cloud Report

Multi-Cloud is the Preferred Strategy

Single private 9%

Single public 13%

No plans 4% Multiple private

11%

Multiple public 15%

Hybrid cloud 48%

74%

Enterprise Cloud Strategy 1000+ employees

Multi-Cloud

74%

Source: RightScale 2014 State of the Cloud Report

0%

20%

40%

60%

80%

100%

Cloud Beginners Cloud Explorers Cloud Focused

% o

f R

esp

on

de

nts

Benefits Grow with Cloud Maturity % of Respondents Reporting these Benefits

CapEx to OpEx

Business continuity

IT staff efficiency

Geographic reach

Higher performance

Cost savings

Faster time-to-market

Higher availability

Faster access to infrastructure

Greater scalability

Cost Savings is an Important Benefit for Cloud

6

Source: RightScale 2014 State of the Cloud Report

0%

20%

40%

60%

Cloud Beginners Cloud Explorers Cloud Focused

% o

f R

esp

on

de

nts

Challenges Decrease with Cloud Maturity % of Respondents Reporting these as Significant Challenges

Security

Compliance

Managing multiple cloud services

Integration to internal systems

Governance/Control

Performance

Lack of resources/Expertise

Cost

Integration to private cloud

Lack of support from IT

Yet Cost Management is an Ongoing Challenge

7

Source: RightScale 2014 State of the Cloud Report

• Different services and pricing options across clouds

• RightScale tracks16,00 unique prices, up from 12,000 in

2013

• AWS pricing and management alone difficult to manage

Cost Management is Key – Current Trends

8

9

On-Demand Cloud Pricing is Complex

Google

Instance Type

CPU

Cores RAM

AWS

Instance Type

CPU

Cores RAM

Google New

On-Demand

(per hour)

AWS NEW

On-Demand

(per hour)

New Google

Price vs. New

AWS

n1-standard-1 1 3.75 m3.medium 1 3.75 $ 0.070 $ 0.070 0.00%

n1-standard-2 2 7.5 m3.large 2 7.5 $ 0.140 $ 0.140 0.00%

n1-standard-4 4 15 m3.xlarge 4 15 $ 0.280 $ 0.280 0.00%

n1-standard-8 8 30 m3.2xlarge 8 30 $ 0.560 $ 0.560 0.00%

n1-highmem-2 2 13 r3.xlarge 2 15 $ 0.164 $ 0.175 -6.29%

n1-highmem-4 4 26 r3.2xlarge 4 30.5 $ 0.328 $ 0.350 -6.29%

n1-highmem-8 8 52 r3.4xlarge 8 61 $ 0.656 $ 0.700 -6.29%

n1-highcpu-2 2 1.8 c3.large 2 3.75 $ 0.088 $ 0.105 -16.19%

n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $ 0.176 $ 0.210 -16.19%

n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $ 0.352 $ 0.420 -16.19%

n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $ 0.704 $ 0.840 -16.19%

Google vs. AWS On-Demand Pricing

Google Instance

Type

CPU

Cores RAM

AWS

Instance Type

CPU

Cores RAM

Google

100% Usage (

per year)

AWS 1-year

Heavy RI New

(per year)

New Google

Price vs. New

AWS

n1-standard-1 1 3.75 m3.medium 1 3.75 $430 $380 13.10%

n1-standard-2 2 7.5 m3.large 2 7.5 $859 $767 11.95%

n1-standard-4 4 15 m3.xlarge 4 15 $1,718 $1,535 11.95%

n1-standard-8 8 30 m3.2xlarge 8 30 $3,436 $3,052 12.60%

n1-highmem-2 2 13 r3.xlarge 2 15 $1,006 $830 21.20%

n1-highmem-4 4 26 r3.2xlarge 4 30.5 $2,013 $1,661 21.20%

n1-highmem-8 8 52 r3.4xlarge 8 61 $4,025 $3,321 21.20%

n1-highcpu-2 2 1.8 c3.large 2 3.75 $540 $554 -2.52%

n1-highcpu-4 4 3.6 c3.xlarge 4 7.5 $1,080 $1,117 -3.28%

n1-highcpu-8 8 7.2 c3.2xlarge 8 15 $2,160 $2,217 -2.56%

n1-highcpu-16 16 14.4 c3.4xlarge 16 30 $4,320 $4,440 -2.71%

RIs vs. Sustained-Use Adds to Complexity

10

Google Sustained-Use vs. AWS 1-year Heavy Reserved Instance Pricing

Source: RightScale

11

The Big Win is Better Cost Management

Joe Emison

Real World Feedback

13

About Joe

• AWS user since 2007, RightScale user since 2009

• CTO of BuildFax, the only real-time provider of property condition

data (from only national database of building permits)

• Contributor to InformationWeek and Network Computing

• Recently conducted IaaS benchmarks across all major CSPs

• User of cloud-cost-management tools since 2011

• Purchase Reserved Instances

• Make Budgets

• Watching Spend

Three Main Uses of Cloud Cost Management

14 14

• BuildFax usage

• Steady-state

• Auto-scaling

• Dynamic workload (EMR, data pipeline)

• Philosophy

• Steady-state, newer generation: 3-year heavy

• Steady-state, older generation: buy used, upgrade

• Move data pipeline to OpenStack

• Dubious about value of light/medium

• Don’t forget AWS updates, price breaks

Uses of Cloud Cost Management: RIs

15 15

• Good cloud architecture Hard to budget

• Prerequisites to prediction

• Deployment-based calculations

• Increasing/decreasing/moving deployments are all common

• Understanding historical variable usage

• CSP offerings change so frequently that Excel is too painful

Uses of Cloud Cost Management: Budgets

16 16

Uses of Cloud Cost Management: Spend

17 17

• Push (email), not pull (dashboards)

• Expect to upgrade (OS, instance type) every 18 months

• PIOPS and RDS may not be worth the cost

• S3 and EBS snapshots can be expensive; plan accordingly

(see Glacier, lifecycle rules)

• S3 versioning can cost an enormous amount if done wrong

Tips and Tricks

18 18

Manage your Costs Now

Cloud Analytics in Action

Visualize Cloud Costs

20

21

Slice and Dice to Analyze Costs

Filter to Drill Down

22

23

Create Scenarios with Patterns

..to Forecast Future Costs

Compare Resource Types, Clouds, Etc.

Understand the Impact of Reserved Instances

27

Track Costs for Private Clouds

28

Track Costs for Private Clouds

Scheduled Reports