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©2015,  Amazon  Web  Services,  Inc.  or  its  affiliates.  All  rights  reserved
Cost Optimization
Tom Johnston
Cloud Economics Team
Do you
• Wear green eye-shades?
• Work from the console?
You’re using AWS.
You like it.
But maybe you are spending
more than you planned
Or you’d just like to spend less
What should you do?
How about
some
frameworks
Some
tools
Some best practices
And some examples
from other customers
like you
How are you
controlling the
provisioning of
resources?
Control who can
provision resources
Require
tagging
“No tags? No instance”
– Large financial services
customer in Boston
Best practices:
• Control who can provision
resources via IAM
• Require tagging
– Inspect
– Stop instances without tags
Savings potential
100% if you don’t start
instances you don’t need!
Are you identifying
and terminating idle
resources?
How do I identify idle resources?
AWS Trusted Advisor
runs 100+ configuration
checks and recommends
savings
We are using AWS Trusted Advisor to
improve cost efficiency and to audit
the configurations of service
platforms
Trusted Advisor
How do I handle demand spikes?
Design for
elasticity rather
than deploy for
peak
Use Auto Scaling or
queue-based approaches
to add resources when
needed, and turn them
off when not
Amazon SQS
 Queue
Auto Scaling
Problem: Workloads
arrive asynchronously
and require isolation
Solution: Amazon
Simple Queue Service
and launch/
termination of
instances
Amazon SQS
Problem: How to scale up to
accommodate sudden traffic
spikes?
Solution: Auto ScalingAuto Scaling
Auto Scaling real world example
•  Baseline traffic: 300+ thousand pages / hour
130 TB/month outbound traffic
•  Peak: 2.0+ million pages / hour (~7x baseline)
•  Architectural changes: e.g., move from local
SSDs to provisioned IOPS needed due to this
scale
•  Auto Scaling provides 23% savings over three
years
Best practices
•  Identify idle resources using Trusted
Advisor
•  Turn them off
•  Design to scale up and scale down using
Auto Scaling or a queue-based approach
•  Match your usage and capacity—don’t pay
for idle resources!
Are you using the
most cost-effective
instances or
resources?
Match
resources to
workload
How can I tell if there’s a
match or mismatch?
Use Amazon
CloudWatch to
collect and track
metrics
CloudWatch
Amazon CloudWatch monitoring
Basic
•  7 metrics for Amazon EC2
including:
–  CPU utilization
–  Data transfer
–  Disk usage and more
•  5-minute frequency
•  Metrics for Amazon EBS,
Amazon DynamoDB, Amazon
RDS, etc.
Detailed
•  1-minute frequency
•  Aggregation by instance type and
AMI
Why does this matter?
Different instances cost
different amounts
Instance families: Example
Instance vCPU Mem
(GiB)
Monthly price
(3-yr heavy RI )
Ideal use case
c3.2xlarge 8 15 $121.22 Best price-compute performance
m3.2xlarge 8 30 $161.15 Balanced
r3.2xlarge 8 61 $189.66 Lowest cost per GiB RAM
r3.xlarge 4 30.5 $94.83 Lowest cost per GiB RAM
Do you need
continuous compute
or does bursting work
for you?
t2.medium
•  4 GiB RAM
•  Baseline performance: 40%
•  Bursts beyond this based on CPU
credits
•  Less than $18 per month
•  Details: http://amzn.to/1sl2bKa
•  Web servers, dev, small databases
t2
t2 vs m3.medium or c3.large
Instance vCPU Mem
(GiB)
Monthly price
(3-yr heavy RI )
Ideal use case
m3.medium 1 3.75 $20.16 Always available, balanced
c3.large 2 3.75 $29.95 Always available, compute
t2.medium 2 4 $17.87 Bursty workloads
Demo
t2
CloudWatch
Consider switching to a t2?
Guidance
•  Inspect your workloads (use CloudWatch!)
•  Can your workload run on a t2?
•  If not, is it memory intensive? àr3
•  Is it compute intensive? à c3
•  Others to consider:
–  i2 for storage-optimized
–  g2 for GPU
Savings potential
If t2 works for you
•  11%: Switch from m3.medium to t2.medium
•  40%: Switch from c3.large to t2.medium
Instance optimization
•  25%: Switch to c3 for compute-intensive apps
(m3.2xl -> c3.2xl)
•  41%: Switch to r3 for memory-intensive apps
(m3.2xl -> r3.xlarge)
Best practices:
1. Monitor instances with CloudWatch
2. Switch to t2 as possible
3. Use compute- and memory-focused
instances as needed
Do you need long-
term storage?
Amazon Glacier
Extremely low-cost cloud
storage service
Amazon Glacier
Are you purchasing
in the most cost-
effective way?
Commitment
and spot save $
Use Reserved
Instances if possible:
Up to 60% savings +
capacity reservation
AWS Trusted Advisor
identifies savings
attainable via
Reserved Instancess
Reserved Instance Marketplace
Use Spot Instances for
non-stateful workloads
Pricing starts
at 90% off
Novartis, Cycle Computing &
AWS Spot Instances
Goal:
Screen 10 million compounds
against a common cancer target
in < 1 week
10,600 AWS instances
39 drug design years in 11 hours
3 promising compounds
identified
Cost of $4,232
Savings potential
• 40%: 1-Year Reserved
Instances
• 60%: 3-Year Reserved
Instances
• Up to 90%: Spot Instances
Could you save by
letting AWS do more
work for you?
Focus on what
you do best
Let AWS solve other
problems for you
AWS’s higher-
level services
automate your
work and save
you money
CloudFront
DynamoDB
Amazon RDS
ElastiCache
Amazon Redshift
Amazon EMR
Amazon
Kinesis
Amazon
WorkSpaces
Are you modeling
and monitoring your
spend?
https://
calculator.s3.amazonaws.com/
index.html
Detailed billing
reports and
cost insights
Detailed Billing Reports
http://amzn.to/1swNwLV
Cost Explorer
http://amzn.to/1zHE2Fj
Demo
CloudWatch
•  Control and verify
•  Design for elasticity
•  Match resources and
workload
•  Purchase for savings
•  Use application
services
•  Model and track
Frameworks to remember
Tools to use
•  IAM, AWS console
•  Auto Scaling,
Amazon SQS
•  Amazon CloudWatch
•  AWS Trusted Advisor
•  Detailed billing reports
and Cost Explorer
•  Partners
•  Turn off untagged resources
•  Stop idle instances
•  Use instances matched to task
and less expensive ones
•  Baseload with RIs
•  Use Spot Instances for non-
stateful workloads
•  Model and track spending
Best practices
SAN FRANCISCO
©2015,  Amazon  Web  Services,  Inc.  or  its  affiliates.  All  rights  reserved
Cost Optimization
Tom Johnston
Cloud Economics
SAN FRANCISCO
©2015,  Amazon  Web  Services,  Inc.  or  its  affiliates.  All  rights  reserved
Enterprise Pre-Day
Trusted Advisor
m3.medium
t2.medium (bursting)
Cloudwatch: CPU Utilization

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