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Cloud costs: my 2 cents	
  

          Ali Khajeh-Hosseini

       @AliKhajeh, @PlanForCloud
              Nov 2012, University of Bristol
Why am I here?

Show you how…
  cloud is changing IT spending
Global IT spending in 2012:

    $3.5 Trillion
    h#p://www.gartner.com/technology/research/it-­‐spending-­‐forecast/	
  	
  
Jan 2009: Started PhD in St Andrews
    May 2010: PlanForCloud v.1 ready
         Feb 2011: Interned in California for 7 months

             Dec 2011: Hassan quit his job and joined
                  Feb 2012: Launched PlanForCloud v.2
                       May 2012: Mountain View for YC interview
What the heck is…
             a cloud?
Server
Rack
Container
2500
                    Servers


Electricity, Water, Internet
a cloud
Around 60 Staff
       30 Megawatts = Perth (Scotland)!
       140 Containers
       38,500 m2 = 4 ftbl pitches

       360,000 Servers
       500,000,000 Dollars
h#p://www.microso9.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx	
  	
  
Cloud Computing	
  
                                      Infrastructure-as-a-Service

                                                 Platform-as-a-Service
               Focus of my talk	
  




                                                          Software-as-a-Service
PlanForCloud helps users make decisions
      RightScale helps users do it
How much would it cost to deploy my systems on Cloud X?

Would it be cheaper if I use deployment option X or Y?

What happens to my costs if:
-  my system grows?
-  cloud provider changes prices?
IT managers   Software Engs
        Consultants   Accountants
Users
Why do people care?
Cloud computing has many benefits
- Elasticity
- Pay-per-use pricing
...
Capacity planning




      Images	
  taken	
  from	
  h#p://aws.amazon.com/economics/	
  	
  
Animoto’s crazy scale-out



     Scale-out from 50 to 4,000 servers in 3 days
     h#p://blog.rightscale.com/2008/04/23/animoto-­‐facebook-­‐scale-­‐up/	
  
Zynga’s Z-Cloud



Launch new games on public clouds
Move to private cloud when usage patterns are understood
      h#p://www.rightscale.com/customers/zynga-­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php	
  
                       h#p://code.zynga.com/2012/02/the-­‐evoluKon-­‐of-­‐zcloud/	
  
There are many providers
   and pricing models
Example: a MySQL Database
AWS Relation Database Service (RDS)
- Up-front reservation fee (optional)
- CPU: $X/hour (based on instance type and cloud)
- Storage: $X/GB/month
- Transactions: $X/Millions of I/O ops
- Provisioned IOPS: $X/IOPS/month (has other limitations)
- Redundancy: double the CPU hourly rate
- Data transfer: $X/GB (tiered across cloud)
What the heck?
I just wanted a simple database

   PlanForCloud simplifies this
around   10,000 prices in PlanForCloud
There are different purchase options
- On-Demand: fixed rate
- Reserved: pay upfront, lower rate
- Spot: Bid how much you would pay
- Discounts and consolidated bills
AWS Reserved Instances



               up-front procurement to pay-per-use

        You have to specify: term (1/3 yr), utilization, availability zone,
                    instance type and OS when buying a RI
Image	
  taken	
  from	
  h#p://aws.typepad.com/aws/2011/12/reserved-­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html	
  
AWS Reserved Instances Marketplace




           Buy and sell reservations
AWS Spot Prices




  Bid for an instance, it’ll get switched on if bid >= spot price.
                 You pay spot price, AWS sets it.
h#p://www.cs.technion.ac.il/~ladypine/spotprice-­‐slides-­‐postmortem.pdf	
  
Prices change
  (feels like there’s a price war between providers)




Re-generate cost forecast in PlanForCloud
Ok so that all sounds cool…

                but is anyone
           doing this for real?
How much would
   Pinterest or TripAdvisor cost
       to host on the cloud?	
  



h#p://highscalability.com/blog/2012/11/1/cost-­‐analysis-­‐tripadvisor-­‐and-­‐pinterest-­‐costs-­‐on-­‐the-­‐aws-­‐clo.html	
  	
  
How much would it cost to deploy
     System X on Cloud Y?

 e.g. TripAdvisor’s 700K requests/min system
           on the AWS US-East cloud
$1.7M/year
Would it be cheaper to use
  deployment option X or Y?
e.g. reserved instances, different types of instances,
             different cloud providers…
$0.9M/year
(using reserved instances)




                             1st month: $450K
                             After: $38K/month
What happens to costs
  if system grows?
 e.g. start with 410TB of S3 storage,
   then grow by 25% every month
Currently: $39K/month
1yr from now: $470K/month
It’s starting to get interesting
1. Many clouds worldwide
2. Many pricing models
3. Markets for computing
4. RightScale helps move between clouds
             Cost optimisation
But it’s not all about costs
Case study:
System infrastructure would have cost 37% less in AWS and 21% of support
calls could have been eliminated, but stakeholders were more concerned with
non-technical issues.




  	
  Cloud	
  MigraKon:	
  A	
  Case	
  Study	
  of	
  MigraKng	
  an	
  Enterprise	
  IT	
  System	
  to	
  IaaS.	
  IEEE	
  3rd	
  Int.	
  Conf.	
  on	
  Cloud	
  CompuKng.	
  h#p://arxiv.org/pdf/1002.3492v1	
  
Other considerations
- Socio-technical factors
- Security and compliance
- Design for failure
- Performance vs. cost trade-off
         Don’t just optimise for cost
Yeah ok I get it,
the cloud is great…

           but do you have a
                 job for me?
Why you should join a startup
•    Great learning environment
•    Informal and fun
•    Young people with lots of energy
•    Take work seriously, but not themselves
•    Move quickly: Just F*ing Do It (JFDI)
RightScale
 Employee
 Meetup
 
Sunny
 Santa

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Cloud costs: my 2 cents

  • 1. Cloud costs: my 2 cents   Ali Khajeh-Hosseini @AliKhajeh, @PlanForCloud Nov 2012, University of Bristol
  • 2. Why am I here? Show you how… cloud is changing IT spending
  • 3. Global IT spending in 2012: $3.5 Trillion h#p://www.gartner.com/technology/research/it-­‐spending-­‐forecast/    
  • 4. Jan 2009: Started PhD in St Andrews May 2010: PlanForCloud v.1 ready Feb 2011: Interned in California for 7 months Dec 2011: Hassan quit his job and joined Feb 2012: Launched PlanForCloud v.2 May 2012: Mountain View for YC interview
  • 5.
  • 6. What the heck is… a cloud?
  • 10. 2500 Servers Electricity, Water, Internet
  • 11.
  • 12.
  • 14. Around 60 Staff 30 Megawatts = Perth (Scotland)! 140 Containers 38,500 m2 = 4 ftbl pitches 360,000 Servers 500,000,000 Dollars h#p://www.microso9.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx    
  • 15. Cloud Computing   Infrastructure-as-a-Service Platform-as-a-Service Focus of my talk   Software-as-a-Service
  • 16. PlanForCloud helps users make decisions RightScale helps users do it
  • 17. How much would it cost to deploy my systems on Cloud X? Would it be cheaper if I use deployment option X or Y? What happens to my costs if: -  my system grows? -  cloud provider changes prices?
  • 18. IT managers Software Engs Consultants Accountants Users
  • 19. Why do people care? Cloud computing has many benefits - Elasticity - Pay-per-use pricing ...
  • 20. Capacity planning Images  taken  from  h#p://aws.amazon.com/economics/    
  • 21. Animoto’s crazy scale-out Scale-out from 50 to 4,000 servers in 3 days h#p://blog.rightscale.com/2008/04/23/animoto-­‐facebook-­‐scale-­‐up/  
  • 22. Zynga’s Z-Cloud Launch new games on public clouds Move to private cloud when usage patterns are understood h#p://www.rightscale.com/customers/zynga-­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php   h#p://code.zynga.com/2012/02/the-­‐evoluKon-­‐of-­‐zcloud/  
  • 23. There are many providers and pricing models
  • 24. Example: a MySQL Database AWS Relation Database Service (RDS) - Up-front reservation fee (optional) - CPU: $X/hour (based on instance type and cloud) - Storage: $X/GB/month - Transactions: $X/Millions of I/O ops - Provisioned IOPS: $X/IOPS/month (has other limitations) - Redundancy: double the CPU hourly rate - Data transfer: $X/GB (tiered across cloud)
  • 25. What the heck? I just wanted a simple database PlanForCloud simplifies this
  • 26. around 10,000 prices in PlanForCloud
  • 27. There are different purchase options - On-Demand: fixed rate - Reserved: pay upfront, lower rate - Spot: Bid how much you would pay - Discounts and consolidated bills
  • 28. AWS Reserved Instances up-front procurement to pay-per-use You have to specify: term (1/3 yr), utilization, availability zone, instance type and OS when buying a RI Image  taken  from  h#p://aws.typepad.com/aws/2011/12/reserved-­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html  
  • 29. AWS Reserved Instances Marketplace Buy and sell reservations
  • 30. AWS Spot Prices Bid for an instance, it’ll get switched on if bid >= spot price. You pay spot price, AWS sets it. h#p://www.cs.technion.ac.il/~ladypine/spotprice-­‐slides-­‐postmortem.pdf  
  • 31. Prices change (feels like there’s a price war between providers) Re-generate cost forecast in PlanForCloud
  • 32. Ok so that all sounds cool… but is anyone doing this for real?
  • 33. How much would Pinterest or TripAdvisor cost to host on the cloud?   h#p://highscalability.com/blog/2012/11/1/cost-­‐analysis-­‐tripadvisor-­‐and-­‐pinterest-­‐costs-­‐on-­‐the-­‐aws-­‐clo.html    
  • 34. How much would it cost to deploy System X on Cloud Y? e.g. TripAdvisor’s 700K requests/min system on the AWS US-East cloud
  • 35.
  • 37. Would it be cheaper to use deployment option X or Y? e.g. reserved instances, different types of instances, different cloud providers…
  • 38. $0.9M/year (using reserved instances) 1st month: $450K After: $38K/month
  • 39. What happens to costs if system grows? e.g. start with 410TB of S3 storage, then grow by 25% every month
  • 40. Currently: $39K/month 1yr from now: $470K/month
  • 41. It’s starting to get interesting 1. Many clouds worldwide 2. Many pricing models 3. Markets for computing 4. RightScale helps move between clouds Cost optimisation
  • 42. But it’s not all about costs Case study: System infrastructure would have cost 37% less in AWS and 21% of support calls could have been eliminated, but stakeholders were more concerned with non-technical issues.  Cloud  MigraKon:  A  Case  Study  of  MigraKng  an  Enterprise  IT  System  to  IaaS.  IEEE  3rd  Int.  Conf.  on  Cloud  CompuKng.  h#p://arxiv.org/pdf/1002.3492v1  
  • 43. Other considerations - Socio-technical factors - Security and compliance - Design for failure - Performance vs. cost trade-off Don’t just optimise for cost
  • 44. Yeah ok I get it, the cloud is great… but do you have a job for me?
  • 45. Why you should join a startup •  Great learning environment •  Informal and fun •  Young people with lots of energy •  Take work seriously, but not themselves •  Move quickly: Just F*ing Do It (JFDI)
  • 49.  
  • 50. Sunny
  • 53.  
  • 57.  
  • 58. We
  • 60.  to
  • 62.  
  • 66.  
  • 69.   We’re hiring! www.PlanForCloud.com