Optimizing your cloud spend the right way
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These days, too many Ops/IT/Dev managers are dealing with frustration and organizational discord around their cloud spending. In my Cloud Connect talk titled "How to become a Cloud Hero in 5 easy steps", I walked through some of the reasons that cloud budgets and spending management have been so tough for tech managers to tackle and how they can use tools like Cloudability to get it under control. Want to try Cloudability free? Head over to https://cloudability.com and sign up for a 30-day trial.
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Optimizing your cloud spend the right way
- 1. Mat Ellis, CEO & Founder
- 2. • Portland, OR • 20 employees • 2 years old tomorrow • Everything you need to make better decisions about your cloud
- 3. $400M+ of real cloud spending by 6,000+ companies in 107 countries It’s big …
- 4. $400M+ of real cloud spending by 6,000+ companies in 107 countries Real big …
- 5. • They don’t get what we do • Our budget is too small! • Too much fire fighting • We need a bigger <x>!! • Finance are tightwads • I could build it in the time we’ve spent talking about it
- 13. • Make sure you have all the data • Don’t: – accept “oh, we don’t use the cloud much” – focus only on AWS – other clouds can overage too • Do: – Implement policies around PO’s + expense claims – Cross check against finance – Measure continuously
- 14. • Software Company $350k overage • Online Media Company $110k overage • Devops provider $60k/yr spend • Seed funded Media Firm $25k in 3 days • Slideshare $5k in 3 days • Mat Ellis $1650 overage
- 16. • Are you using all the things? • Look for all low CPU + disk + bandwidth over time – e.g. < 10% CPU utilization + 5GB disk & bandwidth – last 10 days • Exclude short lived instances • Add server names + other attributes • Review regularly
- 18. • Consider Consolidated Billing – CloudFront $0.12 (10TB) to $0.02 (5PB) – S3 $0.095 (1TB) to $0.055 (5PB) – Bandwidth $0.12 (10TB) to $0.05 (0.35PB) • Work with other business units and try to bump up a tier
- 21. • Measure actual use for a few months • Use a tool to help you make the best decisions • Experiment with 12 month leases • Check out the RI Marketplace Beta & CloudOptions • Don’t forget to watch out for lease expiration • Most importantly: measure & communicate ROI
- 23. • Look for variances over time – High CPU/low disk and RAM – Low CPU/high disk or RAM – Autoscale stuff like web servers – Experiment with different size instances: m1.large & c1.xlarge are the most popular
- 25. • Tag everything you can • Hold techs accountable for using what they buy and also for tidying up after themselves • Hold managers accountable against unit costs • Charge back to budget holders – do it! • Daily/weekly updates to everyone
- 26. Tag all the things! Eliminate all the deviants who don’t tag their instances!
- 27. Keep an eye on both of these
- 28. 100% It’s really worth doing: folks typically 75% save 20% right away just by reviewing their cloud spend CPU Utilization 50% 25% There’s a lot of fat that can be cut… Average CPU Utilization ≈ 12% 0% Nov 2012 – Apr 2013 Approx. 220,000 instances
- 29. Before: “We spend $x per month on the cloud!” After: “System y costs us $z per <something>!”
Notes de l'éditeur
- Everything in this presentation is based on actual data.What would the bills look like if they were stacked on top of each other? 100’ tall. Here’s an artist’s rendition of what it would look like.
- But’s nothing compared to what $400M looks like. Laid out in $100 bills, it would be as tall as the Empire State Building. Here’s another rendition to help you visualize this.So we have a lot of data. And some very big artist bills. But before we take a look at the hard data, we need to remind ourselves: why are we even interested in this?
- Why is this all important? If you fly too high too quickly in the clouds you will come crashing to earth: your bosses will clip your wings, and you’ll be under a huge weight of bureacracy.
- Why is this all important? If you fly too high too quickly in the clouds you will come crashing to earth: your bosses will clip your wings, and you’ll be under a huge weight of bureacracy.
- Would love to have some animated computer graphics showing this expand but we blew the budget on godzilla
- 62% of all Cloud spending is compute
- Would love to have some animated computer graphics showing this expand but we blew the budget on godzilla
- Why is this all important? If you fly too high too quickly in the clouds you will come crashing to earth: your bosses will clip your wings, and you’ll be under a huge weight of bureacracy.