Webinar: Leveraging AWS Data to Manage Spend and Allocate Costs
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Amazon Web Services provides users with detailed utilization metrics, an unparalleled choice of resource sizes and types, multiple purchasing options, and advanced tagging capabilities. The question is how do you best leverage the rich data into actionable information? Join CloudCheckr CTO Aaron Newman and AWS Solutions Architect Scott Ward to learn how a customer who is a leading image content company has controlled spend and satisfied finance across a complex environment with multiple consolidated billing accounts. This company was even able to identify $38k in monthly savings just by upgrading to optimal Amazon EC2 instance types across their 31 accounts! The discussion will focus upon implementing cost management strategies such as: • Purchasing Amazon EC2 Reserved Instances (RIs) and other reserved resources • Using tags to track and allocate spend by business unit, department, or team • Identifying orphaned, idle, and underutilized resources • Creating budget alerts to ensure budget and cost discipline
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Webinar: Leveraging AWS Data to Manage Spend and Allocate Costs
- 1. Leveraging AWS Data to Manage Spend and Allocate Costs
- 2. Scott Ward Solutions Architect Amazon Web Services
- 5. Pricing Models on AWS On-Demand Pay for compute capacity by the hour For spiky workloads, or to define needs Reserved Use No Upfront, Partial, or All Upfront payment options to receive a significant discount on the hourly charge For committed utilization Spot Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand For time-insensitive or transient workloads Dedicated Launch instances within Amazon VPC that run on hardware dedicated to a single customer For highly sensitive or compliance related workloads Free Tier Get Started on AWS with free usage & no commitment For POCs and getting started
- 6. Why Reserved Instances? Scaling out - Ensure that capacity you need to support your applications is there when you need to scale out. Failing over - Ensure that the capacity you need to support your applications is there when you need to fail over from your primary architecture. Steady state - You have a good understanding on your long term compute needs to commit to the appropriate resources in exchange for reduced cost.
- 7. Reserved Instance Payment Options No Upfront – 1 year term only - Obtain reserved instance capacity with no upfront payments - Discounted hourly rate for duration of term - Up to 50% off compared to on-demand Partial Upfront – 1 or 3 year term - Balances payments between upfront and hourly - Pay some money upfront and then pay low hourly rate for the rest of the term - Up to 74% off compared to on-demand All Upfront – 1 or 3 year term - Pay all up front and no hourly fees - Up to 75% off compared to on-demand
- 8. Reserved Instance Benefits Capacity is reserved - Confidence that instances can be launched when you need them Discounts over on-demand workloads - Up to 75% over on-demand - Greater discounts on Reserved Instance Marketplace Flexibility to modify Reserved Instance configuration based on current needs Share pricing benefits, but not capacity reservation, among linked accounts Resell unused/unwanted capacity in Reserved Instance Marketplace
- 10. What is resource tagging? • Ability to add custom metadata to your AWS resources • Allows you to categorize your AWS resources – Purpose – Owner – Environment – Project – Cost Center – Etc
- 11. Why is tagging important? • Tool to organize resources for your customers – Especially if you have customers with multiple linked accounts • Run reports on specific tags across multiple accounts • Use tags to control access to AWS resources • Track project resources for a customer • Track utilization across cost center • Enhanced search capabilities • Greater level of information in the detailed billing report
- 12. Uses for Tagging • Searching for resources in the Management Console and APIs • Grouping matching tags across AWS resources into Resource Groups – Allows you to view details about all resources at once. – Track resources tied to a particular project • Detailed billing information – Detailed Billing Report – Cost Explorer • Controlling access policies based on tags – Enhance IAM access policies to be fine grained
- 13. Billing Alerts
- 14. Billing Alerts • Allow you to be notified when your estimated monthly spend reaches a certain amount. • Define alerts for your overall estimated charges or for specific services.
- 17. AWS at Leading Image Content Company Current • In use for many years, but with no centralized standards, insight or focus (many accounts came from different subsidiaries and/or companies we acquired) • Some very large projects • ~30 accounts to date Future • New projects appear about once or twice a month
- 18. Implementing CloudCheckr History • CloudCheckr brought in for evaluation in summer ’14 • Became corporate standard in Dec ‘14 • Account collection into AWS Master Billing • CloudCheckr began in November ‘14 through April ’15 Focus • Reduce cost • Increase visibility • Centralize and standardize analytics
- 19. CloudCheckr Strategy (so far…) We’ll discuss each of these in the next few slides • Understand and reduce cost and utilization across enterprise • Leverage Best Practice reports to optimize usage • Support charge-backs within projects and customer base
- 20. Identify Cost/Usage Across the Enterprise • Identified all AWS accounts Moved to Consolidated Billing and monitor using CloudCheckr • Understand overall spend Who’s spending what and where in one report • Understand usage Number of resources used Identify defunct resources and accounts What’s stored in S3 today
- 21. Utilize Best Practices to Optimize Usage Best Practice Cost • Identified $38k/year in immediate cost savings (new generation instances) • Identified another potential $20k/year in potential savings (under-utilized instances) • Identified ~$10k/year in a few accounts of accounts that were deprecated (they were cancelled)
- 22. Migrate Previous Generation Instances How much can you save? http://aws.amazon.com/ec2/pricing/ http://aws.amazon.com/ec2/previous-generation/ Examples: m1.large : vCPU:2 / ECU:4 / Memory(GiB) 7.5 / 2 x 420 $0.175 per Hour m3.large : vCPU:2 / ECU:6.5 / Memory(GiB) 7.5 / 1 x 32 SSD $0.133 per Hour 24% savings - Do you need the extra storage? What about m4?
- 23. Support Charge-backs Within Projects AWS accounts that "host" small projects that don’t want to be bothered by infrastructure costs and support • Using tags on AWS resources • Run custom cost reports to charge back costs based on tags AWS accounts that support paid customer access (in progress) • Using tags on AWS resources • Manually invoicing right now after running a report similar to above • Planning to leverage CloudCheckr invoicing
- 26. CloudCheckr: Making AWS Cost Management Easy
- 27. Building a Tagging Strategy Determine the Tags you want - E.g. Department, Owner, ProductLine, Expiration Define your Tagging Rules - https://app.cloudcheckr.com/#Report/ImproperlyTaggedResources Monitoring for Improperly Tagged Resources - Check daily or push emails - Terminate instances that violate your policy
- 31. Creating Advanced Budget Alerts - Enhances the Billing Alarms in CloudWatch - Build budget alerts from tags, project times, multiple thresholds, etc…
- 32. Best Practice Checks 350+ Best Practice Checks around Cost, Security, Availability, Usage - Complete integration with Trusted Advisor
- 33. Identifying Unused Reserved Instances For EC2, RDS, Redshift, and ElastiCache
- 34. Drilling down into more details Best practice checks drilldown into complete details, history, etc…
- 35. Rebalancing Reserved Instances Adjust your Reserved Instances to best utilize what you have running Modify the instance type and Availability Zone from the Console - http://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ri-modifying.html
- 36. 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
- Start out
- Scott Ward is a solutions architect with Amazon Web Services (AWS). Based out of Seattle, WA, Scott is part of a team that supports AWS's global network of technology and consulting partners. For AWS partners Scott’s focus is on existing AWS architecture validation and improvements, planning new architectures for workloads on AWS, providing guidance on how to use new AWS services, and providing general technical enablement. Scott has a deep background in supporting, enhancing, and building global financial solutions to meet the needs of large companies, including many, many years supporting the global financial systems for Amazon.com
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- AWS has a variety of purchase options that allow you to match your workload to the right model, and can help you optimize your bill by working with you to choose the right mix of several of these. Let’s look at three models here; on-demand, reserved, and spot instances. With on-demand instances, customers pay for compute capacity by the hour with no minimum commitments required. These instances free you from the costs and complexities of planning, purchasing, and maintaining hardware and transforms what are commonly large fixed costs into much smaller variable costs. Reserved instances give you the option to make a one-time payment for each instance you want to reserve. This provides you with a significant discount (up to 75%) compared to On-Demand Instance pricing. In addition, Reserved Instances provide you with a capacity reservation, so you can have confidence that you will be able to launch the instances you have reserved when you need them. With spot instances, you can bid for unused Amazon EC2 capacity. Instances are charged the Spot Price, which is set by Amazon EC2 and fluctuates periodically depending on the supply of and demand for Spot Instance capacity. To use Spot Instances, you place a Spot Instance request, specifying the instance type, the Availability Zone desired, the number of Spot Instances you want to run, and the maximum price you are willing to pay per instance hour. On-Demand allows you to start and stop EC2 instances and you only pay for the time that the instances are running. This is great for the initial experimentation phase as well as systems that do not need high availability and may just be there to provide business support on on an occasional basis, or are a DR solution. Reserved instances offer you the lowest hourly rates for a one time up front fee. Reserved instances are a way to drive value to our customers who have more of a steady state workload on their instances. They are available for 1 or three year terms and have pricing models to meet Light, Medium, or Heavy utilization workloads. With Spot instances there is an opportunity to take advantage of un-used capacity in AWS. Since we have a large amount of infrastructure at AWS it stands to reason that at any point in time there are some boxes sitting idle waiting for customers. The spot market lets users take advantage of market-set pricing on those instances, which often results in an incredibly deep discount. Two points to keep in mind for spot instances: The market constantly fluctuates with no guarantee of capacity availability or price. When someone is willing to pay more for your instance than you are, we will abruptly terminate your instance and sell it to them. You are not locked in for any specific duration. 4) Dedicated instances are instances available within an AWS VPC for customers having workloads that require that their application run on hardware dedicated to a single customer. This is a good use case for highly sensitive or compliance related workloads.
- Reserved instance types -All Upfront – pay all up front and then get the lowest hourly rate. -Partial Upfront – Pay partial upfront fee and then pay the rest as a regular monthly amount for each instance. -No upfront – Pay nothing up front and pay a regular monthly fee for each instance for the duration of the RI term. Great way to get into using Ris without having to commit all up front right away. These different payment options are here to help you make a purchase decision based on what you are able to support from a financial perspective.
- You can do this for any service that you are using in your AWS account