비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
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Getting to Profitability discusses how companies can optimize costs on AWS to achieve profitability. It recommends focusing on three key things: increasing revenue, decreasing unit costs, and increasing margins. It describes how AWS pricing models like reserved instances and spot instances can help reduce costs. It also emphasizes the importance of cost-aware architecting techniques like offloading static content to S3 and CloudFront for caching to optimize compute costs. With the right optimizations, the document shows how one company achieved a 54% reduction in unit costs through various AWS services and pricing strategies.
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비용을 절감하고 수익을 최대화할 수 있는 클라우드 컴퓨팅 운용 노하우
- 2. The Infamous Hockey Stick Usage Page Views Revenue Etc. Time
- 3. The Infamous Hockey Stick Usage Page Views Revenue Etc. Costs Time
- 4. You want only 3 things
- 5. Revenue to go Up Unit Costs to go Down Margin to go Up
- 6. The Infamous Hockey Stick Usage Page Views Revenue Etc. Costs Time
- 7. How does AWS help here?
- 8. Economies of Scale Pricing Models Cost Aware Architecting
- 9. What does this look like in the real world?
- 10. An example Enterprise software provider in APAC Focused on SaaS for storage, security, collaboration, etc. Backed by leading VC’s in the region Strong growth – winning customers globally Focused on profitability & reducing unit costs Worked closely with the AWS team to optimize its architecture
- 11. “Based on a True Story” Margin Growth 54% reduction in unit costs -20% -10% price drop RI purchase in S3 -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25%
- 13. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
- 14. Cost Optimization using different purchase models Free Tier On-Demand Reserved Spot Get Started on AWS with free usage & no commitment Pay for compute capacity by the hour with no long-term commitments Make a low, one-time payment and receive a significant discount on the hourly charge Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand For POCs and getting started For spiky workloads, or to define needs For committed utilization For time-insensitive or transient workloads
- 16. Reserved Instance Pricing Make a low, one-time payment and receive a significant discount on the hourly charge For committed utilization 3 Versions • Light Utilization RI • Medium Utilization RI • High Utilization RI 2 Terms • 1-year • 3-year
- 17. Reserved Instance Pricing Utilization RI option Savings over On-Demand <10% On-Demand 10% - 40% Light Utilization RI Up to 56% 40% - 75% Medium Utilization RI Up to 66% >75% Heavy Utilization RI Up to 71%
- 19. • Most traffic happens in the afternoons and evenings, so they reduce the number of instances at night by 40%. • At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as little as $15 an hour. Saving per hour = 71%
- 20. Save more money by using Spot Instances Spot market for underutilized capacity Requested Bid Price and Pay as you go Spot Price < On-Demand Price Up to 85% savings over On Demand pricing
- 21. Use Cases for Spot Pricing Use Case Batch Processing Types of Applications Generic background processing (scale out computing) Hadoop Hadoop/MapReduce processing type jobs (e.g. Search, Big Data, etc.) Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and biology Video and Image Processing/Rendering Testing Transform videos into specific formats Web/Data Crawling Financial HPC Analyzing data and processing it Hedgefund analytics, energy trading, etc Utilize HPC servers to do embarrassingly parallel jobs Cheap Compute Backend servers for Facebook games Provide testing of software, web sites, etc
- 23. Optimizing Video Transcoding Workloads for a FREEMIUM model Free Offering Premium Offering Optimize for reducing cost Acceptable Delay Limits Optimized for Faster response No Delays Implementation – – – – Leverage spot pricing Maximum Bid Price < On-demand Rate Use on-demand Instances, if delay Get strongly reduced price for your workload Implementation – Invest in Reserved Instances – Use on-demand for Elasticity Get Instant Capacity for higher price
- 24. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
- 25. “Give me 4 fault tolerant algorithms and I can pick the best one almost with my eyes closed. If you then ask me which one is best for the business, in terms of dollar costs, I would be clueless...” Werner Vogels, CTO, Amazon
- 26. Cost optimization through „Cost Aware Architecting‟ Reduce Cost of… Compute …by leveraging: 1. S3 & CloudFront for Caching & Offloading 2. Auto-Scaling done Right Storage 3. Storing derivative objects in S3 „Reduced Redundancy‟ Database 4. Read Replicas and/or ElastiCache Test & Dev 5. Rapid proto-typing & Lean Dev/Test
- 27. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading • Reduce your compute demand and costs • Improve end-user experience • Increase reliability and durability
- 28. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
- 29. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
- 30. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
- 31. Cost Aware Architecting to Reduce costs of EC2 1. S3 & CloudFront for Caching & Offloading
- 33. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response • Elastic Load Balancing and (event-driven) Auto Scaling • Notification of pending news flash (with audible alarm) • On-demand ramp up of capacity (6 mins.) • Subscriber alert push delivered • Mass response traffic handled (followed by ramp down)
- 34. Buuuk for Singapore Press Holding (SPH)
- 35. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response Buuuk Straits Times
- 36. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
- 37. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
- 38. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
- 39. Cost Aware Architecting to Reduce costs of EC2 2. Auto-Scaling done Right with Real Time reaction response
- 40. Cost Aware Architecting to Reduce costs of S3 3. Storing derivative objects in S3 „Reduced Redundancy‟ • Original vs. derived assets : 33% savings • Single reference and consistency • Control, accurate logs and tracking Reduced Redundancy Storage „RRS‟
- 41. Cost Aware Architecting to Reduce costs of DB 4. Read Replicas and/or ElastiCache („Database Smarts‟) • • • • Scale out and share work Optimal performance, minimize load Enhance reliability, ensure data safety Cost reduction
- 45. Cost Aware Architecting to Reduce costs of Test/Dev 5. Rapid proto-typing & Lean Dev/Test • Inexpensive idea validation • Seamless switch over and versioning • Rapid dev / test agility
- 46. Scale Getting to Profitability Profitability 03 04 Pricing Models Cost Aware Architecting Total Cost of Ownership
- 47. When calculating TCO… #1 Start by understanding your use cases & usage patterns
- 48. Traditional HW / Hosting WASTE On and Off Fast Growth Variable peaks Predictable peaks CUSTOMER DISSATISFACTION
- 49. AWS = Elastic Capacity On and Off Fast Growth Variable peaks Predictable peaks
- 50. When calculating TCO… #1 Start by understanding your use cases & usage patterns #2 Apples to Apples – Take all the fixed costs into consideration
- 53. When calculating TCO… #1 Start by understanding your use cases & usage patterns #2 Apples to Apples – Take all the fixed costs into consideration #3 Leverage ‘Cost Aware Architecting’ to reduce resources
- 54. Traditional Hosting vs AWS 60 # of (virtual) servers 50 40 30 20 10 0 Hosting Hosting Offload to S3 Caching with CF AutoScaling Etc.
- 55. When calculating TCO… #1 Start by understanding your use cases & usage patterns #2 Apples to Apples – Take all the fixed costs into consideration #3 Leverage ‘Cost Aware Architecting’ to reduce resources #4 Include pricing models (RI, Spot) and economies of scale
- 56. “Based on a True Story” Margin Growth 54% reduction in unit costs -20% -10% price drop RI purchase in S3 -22% Migration Cassandra to Dynamo -18% Price drop in S3 of 25%
- 57. When calculating TCO… #1 Start by understanding your use cases & usage patterns #2 Apples to Apples – Take all the fixed costs into consideration #3 Leverage ‘Cost Aware Architecting’ to reduce resources #4 Include pricing models (RI, Spot) and economies of scale #5 Take a look at what’s included: Intangible Cost Savings !
- 58. Did you know? Free Usage Tier Free Services Data Transfer AWS Elastic Beanstalk AWS CloudFormation AWS IAM Auto Scaling Consolidated Billing No Charge for New Customers Amazon EC2 Amazon RDS Amazon ELB Amazon S3 Amazon EBS For All Customers Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more… Inbound Data Transfer Data Transfer between Instances within an Availability Zone
- 59. Trusted Advisor
- 60. A premium security spec at non-premium prices • VPC • Direct connect and VPC • Dedicated instances Network ACL • Identity & Access • Multi-Factor Authentication Management • CloudHSM S3 Encryption • RDS Oracle transparent • • Security groups for EC2 encryption
- 61. DEMO Getting to Scale Off-loading of static content to CloudFront to reduce required server capacity
- 62. So what does this mean in terms of costs? Standard Architecture Optimized Architecture Month Month Medium EC2 instances Medium EC2 instances 4 1 $ 121 $ 485 CloudFront Data Transfer Out 1Tb $ 168 AWS Data Transfer Out 1Tb $ 194 TOTAL $ 679 CloudFront Requests TOTAL 57% lower cost – 6 x faster $1.89 $ 291
Editor's Notes
- TIME TO MARKETNeed to launch the business quicklyLong development cycles and high costsInability to experiment and test the hypotheses that underpin the businessSCALABILITYUnpredictable demandNeed to deal with spiky traffic or sudden increase in usersNeed to scale out to cover new markets / regionsCOST & REVENUENo CAPEX budget Inability to forecast demand & commit long term contractsNeed to run a lean business & focus on generating revenue
- Let us see how AWS helps to scale your Web Application to support 10’s of Millions of users. Start Small and grow big, build an architecture that scales at each progressive stage.
- We have a variety of purchase options that allow you to match your workload to the right model, and we’re happy to help you optimize your bill by working with you to choose the right mix of several of these.
- ■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.
- Let us see how AWS helps to scale your Web Application to support 10’s of Millions of users. Start Small and grow big, build an architecture that scales at each progressive stage.
- Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 43 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
- Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 43 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
- Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 43 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
- Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 43 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
- Many companies still have their static content, e.g. pics, at their serverThis means for every user, this requires computational effort as pictures are being called from the serverA better way is to offload all your static content and put it in S3, and have it delivered from our CDN, called CloudfrontThis reduces the number of API calls to your server, and hence, you can lower the number of servers you run, thereby lowering costsCloudFront is fully automated: you don’t have to configured detailed configs, your users just get the content from the nearest of our 43 global Cloudfront POPS – lower latency, means a an improved end-user experienceDurability goes up with S3: 11 9’s. But also: consistency as all your data is in one location, not across all your servers. DRY
- Perx = mobile loyalty program. iPhone app for loyalty in restaurants, bars etc. Location Based = tells you when you walk around where to get a deal.Logo’s for all the rastaurants is static content. When they changed to S3 + Cloudfront, user experience went up, users loved it. Easier to manage as they only had to manage changes, new ones etc ONCEThen, we started offering CloudFront for Dynamic Content. For Perx, that works for all the different offers that restaurants put out there on a weekly basis. “What is the best deal today at Subway or Starbucks?”. These can now be cached at the edge as well. Offload dynamic calls to your server, thereby again lowering the load on your servers, and your costs!
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- Buuuk is the mobile app partner of Singapore Press Holding (SPH), the publisher of Straits Times and much moreThey distribute their mobile app to millions and millions usersThey have Breaking News Alerts, which obviously drive an immediate surge in users and hence in the number of required capacityIn real time, they react to this. When SPH tells the system that there is a Breaking News announcement. When the Buuuk system receives this, they automatically issue a command to increase the number of EC2 instances and delay the news by 5 minutesAfter 5 minutes, the system is fully scaled up and the announcement goes out. People receive it and what do they do? They visit the news site with millions at the same time. The surge in users can then be easily dealt with = customer satisfaction From experience, they know this peak is normally only less than hour, so within an hour, they scale down again so that they only pay for 1 hour of excess capacity
- For many content, media files, etc. derivatives are being created. For examples, thumbnails, versions for iOS, Android, etc.These files can be re-generated from the originalOr: you do have the source files elsewhere.In that case: you can consider S3 Reduced Redundancy. Not 11 9’s, but 4 9’s. Still 99.99% durability, which is 400 times more than a normal harddrive. BUT – 33% cheaper than the standard S3Improved consistency and logging / tracking as you exactly know where the content is, who calls it, how often, etc.
- If you can add a number of read replicas, you can offload a number of tasks such as reportingYou do not need to peak your Master and reduce the size of your entire database fleet. You can further offload certain activities to other services such as DynamoDB or ElastiCacheYou can even make your EC2 instances smart, so they know the read replicas are there and when to ping those
- A first option = read replicas to deal with API calls to the databaseAll reads go there, not to the Master so you can avoid the Master from needing to grow and growWhen you are really smart, you can even auto-scale the Read Replicas to only have them when usage increases
- Additional offload is ElasticCaheSometimes, 90% of calls can be offloaded to ElasticCache as the calls are the same CloudWatch can actually tell you the CPU utilization of your RDS so if its low, you can reduce the size
- Copy-paste entire infrastructure & try out bothLeverage CloudFormation to describe a stack and create templates to automate process of spinning up new stacksYou can copy-paste, change a few things in the copied environment to test whether it works betterThis allows for rapid dev & test and is often used for optimization of performance & conversion metrics: A/B TESTINGUsed by Obama in campaign, but also extensively in gaming
- Let us see how AWS helps to scale your Web Application to support 10’s of Millions of users. Start Small and grow big, build an architecture that scales at each progressive stage.
- Each of these examples is typified by wasted IT resources. Where you planned correctly, the IT resources will be over provisioned so that services are not impacted and customers lost during high demand. In the worst cases, that capacity will not be enough, and customer dissatisfaction will result. Most businesses have a mix differing patterns at play, and much time and resource is dedicated to planning and management to ensure services are always available. And when a new online service is really successful, you often can't ship in new capacity fast enough. Some say that's a nice problem to have, but those that have lived through it will tell you otherwise!
- You control how and when your service scales, so you can closely match increasing load in small increments, scale up fast when needed, and cool off and reduce the resources being used at any time of day. Even the most variable and complex demand patterns can be matched with the right amount of capacity - all automatically handled by AWS.