Public Cloud Usage Trends 1Q 2013

DAVID FEINLEIB
PUBLIC CLOUD USAGE TRENDS
450 COMPANIES
165,000 INSTANCES
5.5 PB OF STORAGE
FIRST QUARTER 2013
UNDERWRITTEN BY
thebigdatagroup.com Copyright © 2013 The Big Data Group, LLC bigdatalandscape.com

2
Web Browser Market Share
Public cloud buyers
can achieve
significant savings
by optimizing usage
Key Findings
• Instances are underutilized with average
utilization rates between 8-9%
• 52% of customers use reserved instances, but
only 26% of all instances are reserved and 24%
of instance reservations are unused
• Amazon Glacier, which was introduced in
August of 2012, now accounts for 15% of
storage usage
• Non-EC2 accounts for 38% of cost
Buyers continue to underutilize reserved and spot instances. Nearly a quarter
of instance reservations are unused. Signiﬁcant opportunity for cost-savings
exists across reserved instances, underutilized instances, and shadow version
storage consumption.

3
Study Goals
• Benchmark industry public cloud
costs
• Enable buyers to improve
operational efﬁciency based on
proven ROI model
• Expand on Public Cloud Cost Q3
2012 Benchmark Study to provide
additional market insights

4
Study Data
• 165,000 Amazon EC2 instances
• 6,700,000 instance hours
• 5.5 PB of storage
• Measured Mar 1, 2013 - Mar 31, 2013

5
Customers who spend less than $50K per year make up the largest group of AWS
users, yet account for only 4% of total spend. Just 4% of customers spend more
than $1M per year, yet account for some 52% of total spend.
Just 4% of customers
spend more than $1M
annually, but account
for more than half of
total spend
Customer Distribution by Spend
< $50K $100K - $500K > $1M
4%2%
22%
11%
61%
Percent of Customers by Group
First Quarter 2013
< $50K $100K - $500K > $1M
52%
10%
29%
5%4%
Percent of Spend by Group
First Quarter 2013

6
While EC2 accounts for 62% of total public cloud spend, storage services such as
EBS, RDS, and S3, along with other services, account for more than a third of total
spend.
Public cloud spend
isn’t just on EC2--
non-compute
services account for
38% of total spend
Total Spend by Service Type
EC2
62%
Other services
17%
S3
6%
RDS
7%
EBS
8%
Other services: I/O,API calls, and bandwidth

7
Simple Storage Service (S3) standard remains the most popular and expensive
storage type. Glacier is gaining in popularity, likely due to data lifecycle
management that can move old S3 objects to Glacier automatically.
S3 remains the most
popular and
expensive storage
type
Storage Usage by Type
Glacier
15%
RR
12%
Standard S3
73% $0.01
$0.08
$0.10
Standard
S3
Reduced
Redundancy
Glacier
Cost per GB (First 1 TB per Month)
April 2013
Storage Usage by Type
First Quarter 2013
RR: Reduced Redundancy

8
Shadow versions of ﬁles account for some 8.6% of versioned S3 storage. Shadow
versions refer to multiple versions of objects stored in S3 that are difﬁcult to see
because the original named versions have been deleted, while the other versions
still exist.
Public cloud users
may be consuming
nearly 10% extra
storage without
knowing it
StorageVisibility
Visible
91.4%
Hidden
8.6%
ShadowVersions
First Quarter 2013

9
The m1.Large and m2.4xlarge instance types account for the most spend, followed
by c1.Xlarge, m1.Xlarge, and c1.Medium.
The m1.Large
instance type
accounts for the
biggest spend
Instance Types by Spend
m1.Large
m2.4xlarge
c1.Xlarge
m1.Xlarge
c1.Medum
7.6%
10.0%
11.6%
18.0%18.7%
7.7%
9.9%
7.7%
17.5%
27.5%
Top 5 Instance Types by Spend
Q4 2012 and Q1 2013
*According to Cloudyn benchmarking, two m1.Medium instances
deliver 30% more performance than a single m1.Large instance.
Q4 2012
Q1 2013

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The m1.Small and m1.Large instances are the most popular instance sizes,
followed by t1.Micro, c1.Medium, and m1. Medium.
Small and Large are
the most used
instance types
Instance Usage by Type
Top 5 Runtime Instance Types
First Quarter 2013
m1.Small m1.Large t1.Micro c1.Medium m1.Medium
11.0%11.4%11.8%
19.3%
24.8%

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Customers are actively moving from m1.Large to m1.Medium instances.Two
m1.Medium instances cost the same as one m1.Large, but can produce 30% more
output.*
Customers are
actively moving from
Large to Medium
instances
Usage Trends by Instance Type
m1.Small
m1.Large
t1.Micro
c1.Medium
m1.Medium
11.0%11.4%11.8%
19.3%
24.8%
6.9%
10.5%
14.2%
24.1%
25.3%
Top 5 Runtime Instance Types
Q4 2012 and Q1 2013
*According to Cloudyn benchmarking, two m1.Medium instances
deliver 30% more performance than a single m1.Large instance.
Q4 2012
Q1 2013

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More than half of all customers make some use of Reserved Instances (RIs).Customers can
achieve cost-savings
by putting unused
reservations to work
Reserved Instance Usage
Customer Usage of Reserved Instances in Deployment Mix
First Quarter 2013
Don’t Use RIs
48%
Use RIs
52%

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Reserved Instances account for only 26% and spot instances for only 3% of total
instance runtime usage. Despite their potential cost-saving beneﬁts, customers
remain hesitant to adopt these pricing models.
On-demand
instances remain the
choice of most
customers
Usage by Instance Pricing Model
Runtime Instances
First Quarter 2013
Spot
3%Reserved
26%
On-demand
71%

14
Some 24% of instance reservations are unused. Customers that are purchasing
reserved instances aren’t making use of nearly a quarter of them.
Customers can
achieve cost-savings
by putting unused
reservations to work
Reserved Instance Usage
Instance Reservations
First Quarter 2013
Used
76%
Unused
24%

15
The most common instance types are largely underutilized, with average
utilization rates at just 8-9%.
Most instances are
largely underutilized,
presenting significant
opportunity for cost-
savings
Utilization of Most Common Instance Types
m1.Small m1.Medium m1.Large
91.0%92.0%91.0%
9.0%8.0%9.0%
Utilized
Unutilized

16
Less than half of all m1.Medium and m1.Large instances in the study exceeded
50% CPU usage, making them potential candidates for smaller instances. More
than half of t1.Micro instances had 75% utilization or greater and more than half
of m1.Small and c1.Medium instances had 50% or greater CPU usage, making
them potential candidates for larger instances.
Spiky usage may be
one reason buyers of
larger instances are
reticent to move to
smaller instances
Instance Types by Maximum Utilization
t1.Micro
m1.Small
m1.Medium
c1.Medium
m1.Large 9%
13%
15%
22%
45%
9%
26%
10%
21%
8%
25%
23%
19%
20%
16%
24%
17%
35%
18%
19%
18%
12%
12%
11%
10%
15%
9%
9%
8%
2%
< 10% 10%-24% 25%-49% 50%-74% 75%-89% > 90%

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Emerging Trends
• Despite their potential cost-saving beneﬁts, reserved
instances remain underused
• As the range of AWS services continues to expand,
hidden costs, such as those associated with storage in
the form of shadow versions, can add up to big
dollars
• Amazon Glacier has achieved signiﬁcant traction in a
short amount of time, likely due to its integrated data
lifecycle management

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Customers can
achieve significant
cost savings through
proper public cloud
management
Recommendations For Buyers
• Evaluate
• Instance types relative to utilization
• Unused instance reservations
• Unreserved instances
• Consider
• Switching from Large to Medium instances
• Migrating infrequently-used data to Glacier
• Retiring unattached storage
• Ensure total response time stays within
acceptable range (1.5 - 2.5 seconds)

19
For More Information
David Feinleib
dave@thebigdatagroup.com
The Big Data Group consults with technology vendors and
buyers on marketing strategy and market research.
The Big Data Group produces The Big Data Landscape, Big
Data Trends, Big Data TV, and The Big Data 100.
Cloudyn’s set of power tools helps companies optimize their
cloud deployments. Organizations using Cloudyn have
comprehensive insight and control over their cloud costs
and usage.
www.cloudyn.com
@cloudyn_buzz

21
Customers who spend less than $50K per year make up the largest group of AWS
users, yet account for only 4% of total spend. Just 4% of customers spend more
than $1M per year, yet account for some 52% of total spend.
Customer Distribution by Spend
< $50K $50K - $100K $100K - $500K $500K - $1M > $1M
52%
10%
29%
5%4% 4%2%
22%
11%
61%
Customers by Spend Category
First Quarter 2013
% Customers % Spend

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The most common instance types are largely underutilized, with average
utilization rates at just 8-9%.
Most instances are
largely underutilized,
presenting significant
opportunity for cost-
savings
Utilization of Most Common Instance Types
m1.Small m1.Medium m1.Large
9.0%
8.0%
9.0%

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Instance Deﬁnitions
Type Instances
Micro t1.micro
Small m1.small
Medium c1.medium, m1.medium
Large m1.large
XLarge *.*xlarge
For the purposes of this study, instances were grouped into Micro, Small, Medium,
Large, and XLarge types.The instances included in each type are shown below.

Public Cloud Usage Trends 1Q 2013

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