• 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
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
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
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
• 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
30
Thank You and Q&A
Sign-up for the Cloud Analytics Trial https://www.rightscale.com/cloud-analytics-free-trial
Get the Cloud Pricing Trends Report http://www.rightscale.com/lp/cloud-pricing-trends-white-paper
Read coverage of Google and Amazon price wars www.rightscale.com/blog