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Six ways to reduce your AWS bill

Your spend on AWS should always be optimized. Whether you are seeing usage increase because your customers are relying more on your services, or you just want to dial-in your spending for the road ahead, there are things you can and should do to optimize your cloud costs. In this session we will highlight six quick cost optimizations every startup should consider depending on workloads and the patterns you are seeing. We will give you the tools and approaches that can have a significant impact on your startup right now and moving forward. Some of which you can implement right after this session.

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Six ways to reduce your AWS bill

  1. 1. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Six ways to reduce your AWS bill Boaz Ziniman Principal Technical Evangelist - Amazon Web Services @ziniman boaz.ziniman.aws bziniman
  2. 2. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman • We’ve talked with startup customers like you around the globe • This is not business as usual • Usage patterns are changing We hear you What you spend on AWS should always be optimized.
  3. 3. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Today’s focus Tools and approaches that startups can use to optimize AWS costs
  4. 4. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Before we start…
  5. 5. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman How do you pay for AWS? Pay as you go Save when you reserve Use more, save more
  6. 6. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Amazon EC2 purchase options Spot Instances Spare EC2 capacity at savings of up to 90% off On-Demand prices Fault-tolerant, flexible, stateless workloads Savings Plan/ Reserved Instances Make a 1 or 3-year commitment and receive a significant discount off On-Demand prices Committed & steady-state usage On-Demand Pay for compute capacity the second with no long-term commitments Spiky workloads, to define needs To optimize EC2, combine all three purchase options!
  7. 7. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Use AWS Reserved Instances 5 the six ways 6 Stop paying for idle EC2 and RDS instances 2 Choose Amazon EC2 Spot for containers 3 Use AWS Compute Savings Plans 4 Cleanup underutilized resources 6 Enable S3 Intelligent- Tiering 1
  8. 8. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Enable S3 Intelligent-Tiering Implementation time: Minutes 1
  9. 9. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You are using S3 standard storage class • You might be paying for S3 storage you don’t use Solution: S3 Intelligent-Tiering
  10. 10. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Your choice of Amazon S3 storage classes Access FrequencyFrequent Infrequent • Active, frequently accessed data • Milliseconds access • > 3 AZ • $0.0210/GB • Data with changing access patterns • Milliseconds access • > 3 AZ • $0.0210 to $0.0125/GB • Monitoring fee per Obj. • Min storage duration • Infrequently accessed data • Milliseconds access • > 3 AZ • $0.0125/GB • Retrieval fee per GB • Min storage duration • Min object size S3 Standard S3 S-IA S3 Z-IA Amazon Glacier • Re-creatable, less accessed data • Milliseconds access • 1 AZ • $0.0100/GB • Retrieval fee per GB • Min storage duration • Min object size • Archive data • Select minutes or hours • > 3 AZ • $0.0040/GB • Retrieval fee per GB • Min storage duration • Min object size S3 INT
  11. 11. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman S3 Intelligent-Tiering automates cost savings
  12. 12. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Enable S3 Intelligent-Tiering for infrequently accessed objects Minutes 20% – 30% (for S3 Standard objects transitioned to S3 Intelligent- Tier) 30 days None Implementation time Savings potential Time to realize savings Commitment required
  13. 13. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Get started Upload objects directly into S3 Intelligent-Tier (API) Create Lifecycle Rules that make use of Intelligent-Tiering (UI) https://aws.amazon.com/blogs/aws/new-automatic-cost-optimization-for-amazon-s3-via-intelligent-tiering/
  14. 14. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Stop paying for idle EC2 and RDS instances Implementation time: Minutes to hours 2
  15. 15. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You leave instances running during evenings, weekends, and holidays • You might be paying for EC2 and RDS instances even when they are idle Solution: AWS Instance Scheduler
  16. 16. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman 800 700 600 500 400 300 200 100 0 TotalEC2Hours EC2 Hours vs Time Days of the week MondayFriday Weds Thurs Fri Sat Sun Mon Tues Weds Pay for what you need Thurs Fri Sat Sun Mon Tues MondayFriday
  17. 17. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Schedule EC2 and RDS instances in non-production environments Minutes to hours Reduce On- Demand costs by up to 35%* Minutes None Implementation time Savings potential Time to realize savings Commitment required * Instance scheduling starts on Friday at 6pm and ends Monday at 6am
  18. 18. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Get started https://aws.amazon.com/solutions/instance-scheduler/ 1 2 Install the AWS Instance Scheduler Create schedule based on business requirements Tag non-production EC2 and RDS instances to be scheduled 1 2 3
  19. 19. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Choose Amazon EC2 Spot for containers Implementation time: Hours/days to weeks 3
  20. 20. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You are running containerized workloads on EC2, or using managed services such as ECS, EKS, and Fargate • You are paying the default On-Demand pricing Solution: Amazon EC2 Spot
  21. 21. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Choose Spot for containerized workloads that are stateless, fault-tolerant, and loosely-coupled Hours/days to weeks Up to 90% cheaper than On-Demand Hours/days to weeks None Implementation time Savings potential Time to realize savings Commitment required
  22. 22. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Getting started ECS on Spot https://aws.amazon.com/ec2/spot/containers-for-less/get-started/ EKS on Spot https://aws.amazon.com/blogs/compute/run-your-kubernetes-workloads-on-amazon-ec2-spot-instances-with-amazon-eks/ Fargate on Spot https://docs.aws.amazon.com/AmazonECS/latest/developerguide/fargate-capacity-providers.html AWS Spot workshops for other workloads https://ec2spotworkshops.com/ 1 2 3 4 Self-service container references
  23. 23. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Use AWS Compute Savings Plans Implementation time: Hours 4
  24. 24. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You have EC2 or Fargate workloads that are always on • You are leveraging Lambda in your architecture • You are paying the default On-Demand pricing Solution: AWS Compute Savings Plans
  25. 25. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman AWS Compute Savings Plans Provides the most flexibility across… • Instance family: e.g. Move from C5 to M5 • Region: e.g. change from EU (Ireland) to EU (London) • OS: e.g. Windows to Linux • Tenancy: e.g. switch Dedicated tenancy to Default tenancy • Compute options: e.g. move from EC2 to Fargate or Lambda
  26. 26. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Choose 1 year, No Upfront Compute Savings Plans Hours Up to 54% (EC2), 20% (Fargate), 12% (Lambda) cheaper than On-Demand Hours 1 year, No Upfront costs Savings potential Time to realize savings Commitment required Implementation time
  27. 27. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Get started AWS Cost Explorer will provide you with Savings Plans recommendations Review your Savings Plans recommendations in the AWS Cost Explorer Customize recommendations based on your needs (Term Length: 1 Year, Payment Option: No Upfront) Add preferred Savings Plans amount to cart and purchase 1 2 3 https://docs.aws.amazon.com/savingsplans/latest/userguide/get-started.html
  28. 28. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Use AWS Reserved Instances Implementation time: Hours 5
  29. 29. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You have RDS, Redshift, ElastiCache and Elasticsearch workloads that are always on • You are paying the default On-Demand pricing Solution: AWS Reserved Instances
  30. 30. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Choose 1 year, No Upfront Reserved Instances Hours Up to 42% (RDS), 32% (ElastiCache), 31% (Elasticsearch), 30% (Redshift) cheaper than On-Demand Hours 1 year, No Upfront costs Savings potential Time to realize savings Commitment required Implementation time
  31. 31. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Get started AWS Cost Explorer will provide you with Reserved Instance recommendations Review your Reserved Instance recommendations in the AWS Cost Explorer Customize recommendations based on your needs (Term Length: 1 Year, Payment Option: No Upfront) Purchase Reserved Instances from the specific service page in the AWS console 1 2 3 https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/ri-recommendations.html
  32. 32. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Cleanup underutilized resources Implementation time: Hours/days 6
  33. 33. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman© 2020, Amazon Web Services, Inc. or its Affiliates. Scenario • You created RDS, Redshift, Route 53, ELBs, EIPs, and EBS resources that are now underutilized • You are paying for the resources as if they are still being fully used Solution: AWS Trusted Advisor
  34. 34. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Cost Optimization $1,092.56 Potential monthly savings AWS Trusted Advisor For Business Support Plan subscribers
  35. 35. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Cleanup underutilized resources identified by AWS Trusted Advisor Hours to days $100s to $1000s Hours to days None Implementation time Savings potential Time to realize savings Commitment required
  36. 36. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Getting started Refresh all of your Cost Optimization checks Review recommended actions and potential savings provided by the checks Prioritize resource cleanup based on greatest savings https://aws.amazon.com/premiumsupport/technology/trusted-advisor/ https://aws.amazon.com/premiumsupport/pricing/ 1 2 3 Cost Optimization Checks
  37. 37. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Final thoughts
  38. 38. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman To understand your costs AWS Cost Explorer To control your costs AWS Budgets To optimize your costs AWS Recommendations use use use
  39. 39. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Every startup is different You may not have seen your particular scenario in this presentation. If you didn’t, there are other AWS resources available. We’re here to help.
  40. 40. © 2020, Amazon Web Services, Inc. or its Affiliates. @ziniman Thank You Boaz Ziniman Principal Technical Evangelist - Amazon Web Services @ziniman boaz.ziniman.aws bziniman

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