Leveraging the AWS Cloud can help you further lower your overall IT costs and avoid fixed, upfront IT investments. Learning how to right-size your environments can help you to go from capacity guessing to meeting QoE targets for your customers. The session will also cover best practices on how to Architect for Cost from real world customer use cases and ultimately how the AWS Cloud can help you increase revenue by focusing on Innovation and Return on Agility. Key takeaways - Replace up-front capital expenses with low variable costs - Outsource undifferentiated IT tasks to useful services - Evaluate the total Cost of (Non) Ownership - Build Cost-aware architectures - AWS features that help you reduce your spend - Different purchasing options available with AWS Who should attend - Technical Users: Developers, engineers, system administrators and architects - Decision Makers: IT Managers, directors and business leaders

1. AWS
201
Rightsizing
and
Cost-­‐op6mizing
Your
Deployment
Markku
Lepistö
-­‐
Technology
Evangelist
@markkulepisto

2. Housekeeping
•
•
•
•
Presentation ~45mins
Post Questions Online
Q&A at the end
Reminder – Fill in the survey!

3. What You’ll Get out of this Session
• A lower AWS bill
• A more scalable, robust, dynamic architecture
• More time to innovate
• Real-world customer examples
• All in 6 easy to implement sections

4. TCO IN THE CLOUD

5. Why do customers care about TCO?
Pay-as-you
Go Model
Stop
Guessing
Capacity
Agility / Speed /
Innovation
Avoid
Undifferentiated
Heavy Lifting
Go Global in
Minutes
✔
On-Premises/
Co-Location
Lower Overall
Costs
✔
✔
✔
✔
✔
X
X
X
X
X
X
Lower
Costs
is
not
the
only
reason
customers
choose
AWS,
but
is
significant
…

6. Analysts
have
shown
AWS
reduces
costs
In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS.

7. Replace up-front capital expense with low variable cost
On-Premise
(or “Private Cloud”)
Capital Expense Model
High upfront capital cost,
high cost of ongoing support
Inflexible
Metered, Pay As You Go Model
Use only what you need,
using on-demand, reserved, spot or dedicated
Flexible

8. Economies of scale allow AWS to continually lower costs
We build IT at higher
scale than most any
operator of data
centers in the world
We are comfortable
running a high volume,
low margin business
We pass the savings
along to our customers in
the form of low prices and
continuous reductions

9. Typical cost drivers for on-premises deployments
1
Server
Costs
2
3
4
Hardware
–
Server,
Rack
Chassis
PDUs,
ToR
Switches
(+Maintenance)
SoQware
-­‐
OS,
Virtualiza6on
Licenses
(+Maintenance)
Storage
Costs
Hardware
–
Storage
Disks,
SAN/FC
Switches
Storage
Admin
costs
Network
Costs
Network
Hardware
–
LAN
Switches,
Load
Balancer
Bandwidth
costs
Network
Admin
costs
IT
Labor
Costs
illustra6ve
Facili6es
Cost
Space
Power
Cooling
Facili6es
Cost
Space
Power
Cooling
Facili6es
Cost
Space
Power
Cooling
Server
Admin
Virtualiza6on
Admin
Diagram
doesn’t
include
every
cost
item.
E.g.
soQware
costs
can
include
database,
management,
middle
6er
soQware
costs.
Facili6es
cost
can
include
costs
associated
with
upgrades,
maintenance,
building
security,
taxes
etc.
IT
labor
costs
can
include
security
admin
and
applica6on
admin
costs.

10. AWS offers a service that includes everything in the price
Server
Network
Hardware
Software
OS +
VMs
DC/Co-lo
Floor
Space
Powering
Cooling
Internet
Bandwidth
Personnel
Admins
HW
Maint.
Storage
Redundancy
Resource
Mgmt. /SW
Automation
✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Hardware
Vendor
Offering
✔

11. Samsung Powers Smart Hub Service with AWS, Reducing
Costs by 85% and Saving $34 Million
•
Samsung uses AWS platform of
technology infrastructure services to build
Smart Hub application
• Smart Hub application runs on AWS Cloud
for users of Smart TV and Blu-ray players
to access content of 3rd party providers
• With every user’s request, Smart Hub
application authenticates devices, delivers
apps and content, and pushes notifications
across multiple devices

12. Increased
agility
has
become
the
#1
reason
businesses
use
the
AWS
cloud

13. Enterprises
Can’t
Afford
to
be
Slow
Old World:
Infrastructure in Weeks
AWS:
Infrastructure in Minutes
Add New Dev Environment
Add New Prod Environment
Add New Environment in Japan
Add 1,000 Servers
Remove 1,000 Servers
Deploy 1 PB Data Warehouse
Shut down 1 PB Data Warehouse
Everything changes with this kind of agility

14. A
culture
of
InnovaFon:
Experiment
OKen
&
Fail
without
Risk
On-Premises
$ Millions
Nearly $0
Experiment Infrequently
Experiment Often
Failure is expensive
Fail quickly at a low cost
Less Innovation
More Innovation

15. Shell uses AWS to Develop Software Faster and Cheaper
Core
Development
Team
Extra
Development
Resources
Contractor
Team
Remote
Team

16. Cost-aware Architectures
6 STEPS TO COST SAVINGS

17. Compute
AMAZON EC2

18. #1: Use Auto Scaling

19. #1: Use Auto Scaling

20. Auto Scaling Tips
• Scale up like a rocket
• Scale down like a feather
• Find the right instance type
• Leave headroom for peaks
• Bonus: Better fault-tolerance
• Bonus: Better scalability

21. #2: Turn off Unused Instances

22. #2: Turn off Unused Instances
• Developer/test/training instances
• Use simple instance start/stop, or
• Tear down/build up altogether
• Instances are disposable
• Automate, automate, automate:
• AWS CloudFormation
• Weekend/off-hours scripts
• Use tags

23. Customer Dev/Test Example
35%
saved
Monday
Friday
End
of
vaca6on
season

24. #3: Use Reserved Instances

25. #3: Use Reserved Instances
3y
RI
Break
even
1y
RI
Break
even

26. Less
instances
at
night
Peak
traffic
$52
/
hr
Night
traffic
$15
/
hr
71%
savings!

27. #4: Use Spot Instances

28. #4: Use Spot Instances
• You choose your maximum price/hour
• Price based on supply/demand
• Your instance is started if Spot Price is lower
• Your instance is terminated if Spot Price is higher
• But: You did plan for fault-tolerance,
didn’t you?

29. #4: Use Spot Instances
$3.28
(1367%)
On-­‐demand:
$0.24
$0.028
(11.7%)
$0.026
(10,8%)

30. #4: Use Spot Instances
• Very dynamic pricing
• Opportunity to save 80%-90% cost
• But there are risks
• Different prices per AZ
• Leverage Auto Scaling!
• One group with Spot instances
• One group with On-Demand
• Get the best of both worlds

32. 3000 Cores for risk management processes
Number of Cores
3000 -
300 Cores on
weekends
300 -
Wed
Thu
Fri
Sat
Sun
Mon
Tue

33. Storage
AMAZON S3

34. #5: Leverage Storage Classes
• 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 99.999999999% durability as S3
• 3 to 5 hours restore time
• Up to 89% savings
• Great for archiving, long-term backups and old data

35. OVERALL ARCHITECTURE

36. #6 Offload Your Architecture
• The more you can offload, the less infrastructure
you need to maintain, scale, and pay for.
• Three easy ways to offload:
• Use Amazon CloudFront
• Introduce Caching
• Leverage existing AWS services

37. Offload Popular Traffic to Amazon S3, CloudFront

38. Offload Databases Through Caching

39. Simplify and Outsource to Managed Services
30%
On-­‐Premise
Infrastructure
70%
Your
Business
Managing
All
of
the
“Undifferen6ated
Heavy
LiQing”

40. Simplify and Outsource to Managed Services
30%
On-­‐Premise
Infrastructure
AWS
Cloud-­‐Based
Infrastructure
70%
Your
Business
Managing
All
of
the
“Undifferen6ated
Heavy
LiQing”
More
Time
to
Focus
on
Your
Business
70%
Configuring
Your
Cloud
Assets
30%

41. Deployment &
Management
Deployment & Management
AWS
Global
Infrastructure
BeanStalk
CloudWatch
OpsWork
Cloud
Formation
CloudTrail
IAM
Support
Federation
Interaction
Application Services
Web Console
AWS
Global
Infrastructure
SES
SNS
Elastic
Transcoder
SQS
CloudSearch
Databases
Foundation
Services
Human Interaction
Identity & Access
RDS
Dynamo
WorkSpaces
AppStream
Analytics
ElastiCache
RedShift
Compute
EC2
SWF
API
Application
Services
Monitoring
EMR
DataPipeline
Content Delivery
Kinesis
Storage
S3
Regions
EBS
Glacier
Command Line
Libraries, SDK’s
CloudFront
Networking
Storage
Gateway
VPC
Direct
Connect
Availability Zones
ELB
Route53
Edge Locations

42. Global Blue Saves Nearly $1M Moving to the Cloud
• Global Blue is a multi-national firm
specializing in tax free shopping and
refund points for merchants and
international travelers
• Needed to create capacity for their
business intelligence (BI) tool that
handles merchant reporting
• Saved $800,000/year in CapEx and
$78,000/year in OpEx costs

43. TOOLS

44. TCO Calculator
aws.amazon.com/tco-­‐calculator/

45. AWS Trusted Advisor
aws.amazon.com/premiumsupport/trustedadvisor/
Free
with
Business
or
Enterprise
Support

46. Hungama Uses AWS Trusted Advisor to Optimize Usage and Save
33% on Monthly Costs
•
Hungama, a Mumbai, India provider of
mobile and Internet entertainment to
customers in more than 47 countries, has
used AWS for server and storage
management since 2008
• As the company grew rapidly, more
departments used AWS for development
causing an increase in monthly costs
• By using AWS Trusted Advisor to identify
ways to optimize its environment on AWS,
Hungama reduced monthly costs by 33%

47. Let’s Recap
1. Use Auto Scaling
2. Turn off unused instances
3. Use Reserved Instances
4. Use Spot Instances
5. Leverage Amazon S3 storage classes
6. Offload your architecture

48. Thank
you
Markku
Lepistö
-­‐
Technology
Evangelist
@markkulepisto

49. Your
feedback
is
important
Please
complete
the
Survey!
What’s
good,
what’s
not
What
you
want
to
see
at
these
events
What
you
want
AWS
to
deliver
for
you

50. Q&A