Upload
amazon-web-services
View
599
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Weighing the financial considerations of owning and operating a data center facility versus employing a cloud infrastructure requires detailed and careful analysis. In practice, it is not as simple as just measuring potential hardware expense alongside utility pricing for compute and storage resources. The Total Cost of Ownership (TCO) is often the financial metric used to estimate and compare direct and indirect costs of a product or a service. Given the large differences between the two models, it is challenging to perform accurate apples-to-apples cost comparisons between on-premises data centers and cloud infrastructure that is offered as a service. In this session, we explain the economic benefits of deploying applications in AWS over deploying equivalent applications hosted in an on-premises environment.
Citation preview
© 2014 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified, or distributed in whole or in part without the express consent of Amazon.com, Inc.
Optimizing Total Cost of Ownership for AWS Jean-Pierre LeGoaller Principal Solutions Architect Amazon Web Services
Agenda
• Total Cost of Ownership • Cost Optimization on AWS
Lower costs with AWS
1
“Average of 400 servers replaced per customer”
Replace up-front capital expense with
low variable cost
2
42 Price Reductions
Economies of scale allow AWS to continually
lower costs
3
Pricing model choice to support variable &
stable workloads
4
Save more money as you grow bigger
Tiered Pricing
Volume Discounts
Custom Pricing
On-Demand
Reserved
Spot
Dedicated Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013
Lower costs than on-premises
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 non-correlated workloads, scale,
spot market
Amazon specific hardware designs • OEM acquisition of custom servers & net gear • Direct purchasing of disk, memory, & CPU • AWS controlled hypervisor & net protocol
layers
Diagram is not to scale *For AWS, OPEX costs includes Reserved Instances one-time low, upfront payment, if Reserved Instances are used.
Cost savings from moving to a public cloud provider
AWS Pricing Philosophy
More AWS Usage
More Infrastructure
Economies of Scale
Lower Infrastructure
Costs
Reduced Prices
More Customers Ecosystem
Global Footprint New Features New Services
Infrastructure Innovation
We pass the savings along to our customers in the form of low
prices and continuous reductions
42
Analysts have shown AWS reduces costs
In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS. Since this study was conducted in early 2012, AWS has introduced price reductions nearly 20 times across Amazon EC2 and Amazon S3. IDC estimated what the impact of AWS's fee restructuring would be on the organizations that participated in the 2012 study and determined that the overall fees would drop by 21% lowering the five year TCO from $909,000 to $846,000. Source: IDC Business Value of AWS Accelerates over time
IT PRODUCTIVITY
INCREASE:
52%
5 YEAR TCO SAVINGS:
72%
AWS TCO benefits increase over time…
$3.50 in benefits
$1 Investment in AWS $1 Investment in AWS
$8.40 in benefits
At 36 Months of using AWS… At 60 Months of using AWS…
~3X ~8X
Source: IDC Business Value of AWS Accelerates over time
According to IDC, this relationship between length of time using AWS and return is due to customers leveraging the more optimized environment to generate more applications along a learning curve.
Comparing TCO is not easy (But We’re Going to Try)
≠
Typical cost drivers for on-premises deployments, including overhead costs
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.
AWS services pricing includes overhead costs
Hardware Vendor Offering
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
✔
Server Network Hardware
Software OS + VMs
DC/Co-lo Floor Space
Powering Cooling
Software Defined
Networking
Data Center Personnel
Storage Redundancy
Resource Mgmt. /SW Automation
× × × × × × ×
TCO Example : 100 VMs On-Premises vs. AWS
# of VMs Avg. vCPU
Avg. vRAM
Optimize by? Usage
25 1 2 RAM 5%
35 4 14 RAM 80%
30 8 32 RAM 60%
5 8 68 RAM 40%
5 16 128 Disk I/O 8%
# of Instances Instance vCPU RAM Instance Type
25 m1.small 1 1.7 On Demand
35 m3.xlarge 4 15 3 Yr. Heavy RI
30 m3.2xlarge 8 30 3 Yr. Med. RI
5 m2.4xlarge 8 68.4 3 Yr. Light RI
5 i2.4xlarge 16 122 3 Yr. Light RI
Avg. vCPU
Avg. vRAM
Optimize by?
1 2 CPU
4 14 CPU
8 32 CPU
8 68 CPU
16 128 Disk I/O
Instance vCPU RAM
m1.small 1 1.7
c3.xlarge 4 7
c3.2xlarge 8 15
c3.2xlarge 8 15
i2.4xlarge 16 122
1, 1.7, 0.044 1, 3.75, 0.07
2, 3.75, 0.105 2, 7.5, 0.14 2, 15, 0.41
4, 7, 0.21 4, 15, 0.28
4, 30.5, 0.82
8, 15, 0.42 8, 30, 0.56
8, 61, 1.64
4, 30.5, 0.853
8, 61, 1.705
16, 122, 1.4
16, 30, 0.84
32, 60, 1.68
32, 244, 3.5
16, 122, 3.41 16, 117, 4.6
0
50
100
150
200
250
300
0 5 10 15 20 25 30
On Demand Prices shown (N.Virginia region), only latest generation instances (M3,C3) shown where applicable, GPU and Micro instances not shown above
Memory-Optimized Instances (R3)
Compute-Optimized Instances (C3)
General Purpose Instances (M3)
Storage-Optimized Instances (I2)
vCPU
RA
M
TCO Example : Choosing EC2 instances
TCO Example : 100 VMs On-Premises vs. AWS
NEW: AWS TCO Calculator
• From over 40 data centers down to 6 • Planning to migrate 3000 apps by Jan
2015 • Saving $100M over 3 Years
VS
1. Evaluate infrastructure costs & architecture
2. Make business case 3. Enable decision to move to the cloud
Customer Spotlight: Dow Jones Intl.
7/2011 - ~50GB/day
4/2013 - ~5TB/day
10/2013 - ~20TB/day
03/2014 - ~40TB/day
Customer Spotlight:
AdRoll S3 Usage by the numbers
• 1.5+ PB of compressed data stored • 5-10TB of compressed new data each day • ~5B monthly requests
No engineers spend time on storage
AdRoll EC2 Infrastructure
• ~500 c3.4xlarge in 4 regions • Close to 100% uptime since launch • <100ms max latency • 500K+ requests/second globally on DynamoDB • Operated by 2 engineers
AdRoll estimate that they would need about 20 engineers to design and maintain a similar infrastructure on-site.
AdRoll TCO
AdRoll estimate that they would need about 20 engineers to design and maintain a similar infrastructure on-site.
Their entire AWS cost is less than the cost of such a team
In Your TCO Analysis Power/Cooling (compute, storage, shared network) Data Center Administration (procurement, design, build, operate, network, security personnel) Rent/Real Estate (co-lo charges, building deprecation, taxes) Software Licensing/Maintenance (OS, Virtualization, DCIM, Automation..) RAW vs. USABLE storage capacity (Usable = ~50% Raw) Storage Redundancy (RAID penalty, OS penalty) Storage Backup costs (Tape, backup software) Bandwidth, Network Gear & Redundancy (Routers, VPN, WAN..)
DON’T FORGET
THINK BENEFITS
Additional investment into new initiatives Reduced Procurement Time, Resource sitting on shelf Cost of lost customers Lower down time, increased productivity Focus on your business
Cost Optimization on AWS
1. Choose the right instance types
Start Choose an instance that best meets your basic requirements
Start with memory & then choose closest virtual
cores
Look for peak IOPS storage requirements
Tune Change instance size up
or down based upon monitoring
Use CloudWatch & Trusted Advisor to assess
Roll-Out Run multiple instances in multiple Availability
Zones
2. Use Auto Scaling Describes what Auto Scaling will create when adding Instances
Only one active launch configuration
at a time
Launch Configuration
as-create-launch-config --image-id ami-54cf5c3d --instance-type m1.small --key mykey --group webservers --launch-config 101-launch-config
Auto Scaling managed grouping of EC2 instances
Automatically scale the number of
instances by policy – Min, Max, Desired
Auto Scaling Group
as-create-auto-scaling-group 101-as-group --availability-zones us-east-1a us-east-1b --launch-configuration 101-launch-config --load-balancers myELB --max-size 5 --min-size 1
Parameters for performing an Auto Scaling action
Scale Up/Down and by how much
Auto Scaling Policy
as-put-scaling-policy 101ScaleUpPolicy --auto-scaling-group 101-as-group --adjustment=1 --type ChangeInCapacity --cooldown 300
Utilization and Auto Scaling: Granularity more small instances vs. less large instances
29 m1.large @ $0.240/hr. = $6.96
59 m1.small @ $0.06/hr. = $3.54
3. Turn off un-used instances
• Dev./test instances • Simple instance start/stop • Tear down/build up altogether • Instances are disposable
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
On Demand Light Utilization RI Medium Utilization RI Heavy utilization RI
/Spot Instances
4. Use Reserved Instances Reserved Instances enable you to maximize savings by paying a low, one-time fee for a capacity reservation of 1-3 years in exchange for a significant discount on the hourly rate.
Amazon EC2 up to 65% savings Amazon RDS up to 76% savings Amazon DynamoDB up to 76% savings Amazon Redshift up to 73% savings Amazon ElastiCache up to 70% savings
AWS services offering reservations
Customer Spotlight: Pinterest
AWS Set-up
• 8 billion objects and 400 terabytes of data (May 2012), 10x growth from August 2011; EC2 instances have grown by 3x in the same time period
• 150 EC2 instances ( web tier), 90 instances (in-memory caching), 70 master databases • Reserved instances used for standard traffic; On-demand and spot instances used to handle daily elastic
load. Most services targeted to run at about 50% on-demand and 50% spot
Source: Pinterest AWS Case study, Pinterest Architecture update, 410TB of data, 10X Growth, 12 employees
Source: Return on Agility, Werner Vogels
“Imagine we were running our data center, and we had to go through a process of capacity planning and ordering and racking hardware. It wouldn't have been possible to scale fast enough,"– Ryan Park, Pinterest Operations Engineer
Costs have gone from $54 per hour to $20 per hour
Only 2 weeks of engineering effort was required to achieve this cost savings
5. Use Spot Instances
• Pricing • Up to 92% discount
• Elastic • Capacity not otherwise
available
• Tradeoff • Potential for interruption
Picking the right Bid Price - Tolerance for interruptions, % likelihood of termination
1.21 PFLOPS
264 years of compute in < 18 hours 16,788 instances in 8 regions
Customer Spotlight: Cycle Computing
On-Premises Spot
$68 Million
$33K
6. Leverage Storage Classes
AWS Cloud
Amazon Glacier
Gateway Appliance/ AWS Storage Gateway
Amazon S3
Block File
On-premises Data Center
Archive Backup Disaster Recovery
Amazon EBS
Amazon S3 Reduced Redundancy • 99.99% durability vs.
99.999999999% • Up to 20% savings • Great for everything that is easy to
reproduce
Amazon Glacier • Same durability as S3 • 3 to 5 hours restore time • Up to 67% savings • Great for archiving, long-term
backups and old data
7. Offload your architecture The more you can offload, the less infrastructure you need to maintain, scale, and pay for • Offload popular traffic to Amazon CloudFront and S3 • Introduce Caching
Res
pons
e Ti
me
Ser
ver L
oad
Res
pons
e Ti
me
Ser
ver
Load
Res
pons
e Ti
me
Ser
ver
Load
No CDN CDN for Static
Content
CDN for Static & Dynamic Content 90% of calls
8. Use Application Services
Elastic Load
Balancing
Amazon Relational Database
Service (RDS)
Amazon Simple Queue Service
(SQS)
Amazon Simple Email Service
(SES)
Amazon Elastic
MapReduce
Amazon ElastiCache
Amazon Simple Notification
Service (SNS)
Web Servers Availability Zone
$0.025 per Elastic Load Balancer-hour (or partial hour) $0.008 per GB of data processed by an Elastic Load Balancer 100 GB Data processed, 1 ELB $18 (.025*24*30) + $.008*100 $18.80
Web Servers Availability Zone
EC2 instance + software LB
Elastic Load Balancer
DNS
DNS
VS
Leverage Application Services
$0.060 per hour, m1.small Separate for Software Load Balancer $.060*24*30 = $43.2 (m1.small) + Software LB Cost
On Demand Prices shown (N.Virginia region)
9. Use Consolidated Billing
• Receive a single bill for all charges incurred across all linked accounts • Share RI discounts • Combine tiering benefits
• View & manage linked accounts • Add additional accounts
10. Leverage AWS tools
AWS Trusted Advisor
AWS EC2 Usage Reports
Recap Choose the right Instance type Use Auto Scaling Turn off un-used Instances Use Reserved Instances Use Spot Instances Leverage Storage Classes Offload your architecture Use Application Services Use Consolidated Billing Leverage AWS Tools – Trusted Advisor, EC2 Usage Reports Others…
Summary
TCO • Make reasonable assumptions and leverage industry benchmarks • Know the on-premises hidden costs • Use our new TCO Calculator
Cost Optimization
• Create cost-aware architectures and leverage best practices • Re-evaluate and revisit your architecture often • Leverage Application Services, CloudWatch • Stay up to date – RI modifications, Trusted Advisor
© 2014 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified, or distributed in whole or in part without the express consent of Amazon.com, Inc.
Optimizing Total Cost of Ownership for AWS
Thanks!
Jean-Pierre LeGoaller Principal Solutions Architect Amazon Web Services