Deep dive session on Cloud Financial Management Fundamentals and Cost Optimization in AWS. Presented by Spencer Marley, APAC BD at the November 2018 AWSUGBLR Meetup

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Spencer Marley, APAC BD
November 2018
AWS
Cost Optimization

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Who are you?
Maths Geek Data & Analytics
Finance & Accounting Developer

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Right-sizing
Right-sizing
• Selecting the cheapest
instance while meeting
performance needs
• Look at CPU, RAM,
storage, and network
utilization to identify
instances that could be
right-sized

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Right-sizing
m4.4xlarge
$1.72
per hour
m4.large
$0.215
per hour
2. Check (CPU,
RAM, network, disc)
1.
Migrate/Provision
and Run
3. Right-size
87%
Saving
5. Save!4. Review Performance

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Right-sizing
• AWS Trusted Advisor (Business/Enterprise Support) and AWS CloudWatch
• AWS EC2 Right-sizing Solution
• Netflix Janitor Monkey
• 3rd party paid tools (including but not limited to):
• Densify
• STAX
• CloudHealth
• Cloudability

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Elasticity
Elasticity
• Scale up and down to meet
capacity requirements
based upon CPU, RAM,
network etc.
• Automatically turn non-
production off outside of
working hours

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Elasticity

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Elasticity
• AWS Auto Scaling and EC2 Fleet
• AWS CloudWatch
• AWS Instance Scheduler
• 3rd party paid tools (including but not limited to):
• GorillaStack
• Skeddly
• ParkMyCloud

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Pricing Models
Pricing Models
• On Demand, Spot and
Reserved Instances
• RIs are like bulk discount
coupon booklets – one
coupon every hour, which
expires and does not
accrue
• RIs are a financial construct

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Pricing Models
Less discount Greater discount
Payment option No upfront Partial upfront All upfront
Duration 1 year 3 year
Operating system Others e.g.
Windows
Linux/UNIX
Instance type Previous
generation
Current
generation
Class Convertible Standard

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Pricing Models
• AWS Cost Explorer
• RI Recommendations
• RI Coverage/Utilization
• AWS Budgets for RI Coverage/Utilization SNS/SES notifications
• 3rd party paid tools (including but not limited to):
• CloudHealth
• Cloudability
• CloudCheckr

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Storage Classes
Hot
Amazon S3
Warm
Infrequent Access
Cold
Amazon Glacier

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Storage Classes
Provisioned IOPS
SSD (io1)
General Purpose
SSD (gp2)
Throughput
Optimized HDD
(st1)
Cold HDD (sc1)
$0.125/GB-month $0.10/GB-month
(20% cheaper)
$0.045/GB-month
(64% cheaper)
$0.025/GB-month
(80% cheaper)

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Storage Classes
• Amazon S3 Analytics
• AWS Trusted Advisor
• 3rd party paid tools (including but not limited to):
• CloudHealth
• Cloudability
• CloudCheckr
• STAX
• Cloud Conformity

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Culture and Mechanisms
• As well as technical and
financial constructs, it is
important to have a culture
and mechanisms to support
Cost Optimization
• Tagging resources and
defining cost metrics (e.g.
unit cost) are key to driving
responsibility and efficient
behavior

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Culture and Mechanisms
Analyze spend by
BU, account,
service, etc.
What has changed
and why?
Instance utilization
metrics.
Are the instances of
the right size and
well utilized?
Peak vs. off-peak
cost and usage.
Are instances
turned off when they
are not needed?
RI coverage and
utilization, Spot
usage.
Are RIs and Spot
being used?

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Culture and Mechanisms
• AWS Cost Explorer
• AWS Budgets
• AWS Cost and Usage Reports
• AWS Config and Lambda

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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Designing for Cost
Spot instances can be used for:
• Production & non-production
workloads
• Queue and batch-based
processing
• Hadoop/Spark/Big Data workloads
• Stateless applications (e.g. web
tiers)
• CI/CD pipelines
• Containerized workloads
• Video transcoding

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Designing for Cost
Consolidated Billing Serverless Unused Elastic IPs
Amazon CloudFront Containerization Open Source

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Designing for Cost
• AWS Organizations
• Spot Bid Advisor
• AWS Step Functions
• 3rd party paid tools (including but not limited to)
• SpotInst
• BidElastic

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How do we help customers optimize their costs?
Right-sizing Elasticity Pricing Models
Storage Classes Culture and Mechanisms Designing for Cost

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The 3 Key Takeaways
Cost Explorer Training on YouTube and
A Cloud Guru
Reserve, Review, Rinse,
Repeat.

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Thank you!
spmarley@amazon.com
https://www.linkedin.com/in/spencermarley/