This document provides strategies for AWS partners to be successful, including using consolidated billing to reduce costs across accounts, taking advantage of savings from compressed pricing tiers, understanding reserved instances for significant savings, monitoring budgets for clients, and adding on services to generate additional revenue as a managed service provider. It also discusses invoicing clients accurately based on "as if" costs and predicting resource needs using the AWS pricing calculator.
2. Use Consolidated Billing
• Create a master payer account
• Link all your accounts from there
Advantages includes:
• A single view on all costs
• Reserved Instance usage
• works across consolidated accounts
• Pricing tiers are compressed
• Overall reduced bill
3. Savings from Compressed Tiers
• Tiers are aggregated across payees
• Services
• S3
• CloudFront
• Data Transfer
• Route 53
• Support Costs
• Zocalo (renamed WorkDocs)
4. What are Reserved Instances?
Get started at http://aws.amazon.com/ec2/purchasing-options/reserved-instances/
• Upfront payment and Commitment to pay less overall
– Significant savings (up to 75%)
– Requires planning, predicting, accepting risk
– What if AWS drops prices?
• Factors for picking RIs
• Term – how long you want to commit for
• Region/Availability Zone – where will the resource run
• Operating System – what resource are you going to run
• Payment Options – how do you want to pay
We will try to understand these factors
5. Reserved Usage is more than EC2!
Don’t ignore other Reserved Usage opportunities
• RDS reserved usage very close to EC2
• They continue to support Light, Medium, Heavy Utilization
• Databases are rarely used in Light or Medium
• ElastiCache reserved cache nodes
• Current generation supports Heavy only
• Previous generation support Light, Medium, Heavy
• DynamoDB Reserved Capacity
• Commiting to read and write units capacity
• Redshift Reserved Instances
• 1 and 3 Year Heavy Utilization options, large upfront
• CloudFront reserved bandwidth
• Very attractive discounts if you commit to minimum bandwidth usage
6. EC2 Reserved Instance types (Next Gen.)
• All Upfront
• Same as Fixed Priced
• Full payment upfront, no hourly charges
• Partial Upfront
• Similar to Heavy Utilization RIs
• Pay something upfront plus a monthly usage charge
whether you use or not
• No Upfront
• New idea, don’t pay anything upfront but commit to
hourly usage price for the full term
• Not available under 3-year terms
7. Looking at new RI types
• Linux, c3.2xlarge, in the Sydney Region
Recommendation Term Upfront Monthly Total Usage for Term Total Cost for Term Effective Hourly Rate Total Savings Annual Saving Commit
Medium 1 year 1,165.00 162.72 1,952.64 3,117.64 0.360837963 1,452.92 1,452.92 1,165.00
Partial Heavy 1 year 1,426.00 127.44 1,529.28 2,955.28 0.342046296 1,615.28 1,615.28 2,955.28
No Upfront 1 year 0.00 282.24 3,386.88 3,386.88 0.392 1,183.68 1,183.68 3,386.88
Full Upfront 1 year 2,916.00 0.00 0.00 2,916.00 0.3375 1,654.56 1,654.56 2,916.00
Medium 3 year 1,751.00 144.00 5,184.00 6,935.00 0.267554012 6,776.68 2258.893333 1,751.00
Partial Heavy 3 year 2,153.00 113.04 4,069.44 6,222.44 0.240063272 7,489.24 2496.413333 6,222.44
Full Upfront 3 year 5,902.00 0.00 0.00 5,902.00 0.227700617 7,809.68 2603.226667 5,902.00
OnDemand 1 year 0.00 380.88 4,570.56 4,570.56 0.529 N/A N/A 0
8. Picking Reserved Instances
• Finding safe RIs to purchase
• Know your customers deployments
• 1 versus 3 years?
• Juggling your RIs (only for EC2)
• Resizing instance types (sizes), moving AZs
• How much to invest
• Is “No Upfront” right for you
• Selling on the Marketplace
9. Invoicing Clients
• A process to bill you customer
• Repeatable, efficient, scalable, accurate
• Provide bill based on “as-if” costs
• Costs for the payee stand alone
• Reverse out compressed tiers
• Reverse out RI volume discounts
• “List cost” or “list price”
10. Monitoring Budgets
• Keep track of your budget for the client
• Define budgets, share costs accurately
• Stay within the confines
• Notification earlier is better
• Predict the costs
• Amazon pricing calculator
11. Adding On Services
• Biggest opportunity being an MSP
• managing the AWS environment
• Tack on 5-30% service charge
• Managing security
• Monitoring best practices
• Provisioning and optimizing
• Admin for the OS, database, and HW
14. Thank You for Attending
Sign up today for free evaluation
at http://cloudcheckr.com
Aaron Newman is the Founder
of CloudCheckr (www.cloudcheckr.com)
Please contact me with additional questions at:
aaron.newman@cloudcheckr.com
Notes de l'éditeur
Not huge margins out of the box with reselling AWS. Need to add additional value and be smart to make money off of AWS.
Think about an RI as a coupon to pay a lower price per hour than the on-demand rate. Not cumulative, the coupon can be used once an hour.
For each, if you buy a heavy – you are committing to pay 720 hours per month. If you run 720 instance for 1 hour, you only get to use the coupon once per hour, you lose big time.