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Estimating the Total
Costs of Your Cloud
Analytics Platform
Presented by: William McKnight
“#1 Global Influencer in Cloud Computing” Thinkers360
President, McKnight Consulting Group
A 2-time Inc. 5000 Company
@williammcknight
www.mcknightcg.com
(214) 514-1444
Second Thursday of Every Month, at 2:00 ET
With William McKnight
Image Goes
Here
Know Better™
ChaosSearch helps modern organizations
Know Better™ by activating the data lake for
analytics.
The ChaosSearch Data Lake Platform indexes customers’ cloud
data, rendering it fully searchable and enabling analytics at scale
with massive reductions of time, cost and complexity.
© 2021 ChaosSearch, Inc.
The Data Analytics Challenge
3
Promise vs. Reality
Efficiently manage data growth Rapid time to insights
The Promise:
Self-service access to
all data for instant
insights that maximize
operational efficiency,
security posture, and
the user experience.
Single repository for all data
Dev
Ops
Sec
Ops
IT
Ops
LOB
The Reality:
Complex data swamp
that increases costs
and inhibits actionable
insights.
Data growth and variety
exceeds infrastructure and
resource capabilities
Gaps in data access, time to
access and loss of insights
Complex data silos
Dev
Ops
Sec
Ops
IT
Ops
LOB
© 2021 ChaosSearch, Inc. 4
What if:
You could analyze
any and all your data?
1
2
Automated and massive scale
3
Dramatically reduce time to insight
and save up to 80%
You would
Know Better™
→ Insights at scale
→ Immediate time to insight
→ Free up critical resources
→ See the world the way you want it
Without changing the way your users work
© 2021 ChaosSearch, Inc.
Cloud Data Lake Platform
5
ChaosSearch helps modern organizations Know Better™ by activating the data lake for analytics.
* This is a roadmap item and subject to change.
Beneficial Outcomes
✔ One unified Data Lake for analytics at scale
✔ Log, BI and Product-led growth insights
✔ Game changing simplicity and automation
✔ No more data pipelines or data movements
✔ No more schema management, sharding or
managing server clusters and their uptime
✔ All while using the same set of analytic tools
✔ Scale and performance for analytic workloads with up to
80% cost savings
Your Cloud Object Storage
DevOps/SecOps
Kibana
SecOps
Elastic API
CXO
Tableau/Looker
Business Analyst
Tableau/Looker
Data Scientist
TensorFlow/PyTorch
ChaosSearch Data Platform
Chaos Refinery®
Chaos Fabric ®
Chaos Index®
Elastic API Elastic API SQL API* SQL API* ML APIs*
Data Consumers
PUBLISHED
OPEN APIs
© 2021 ChaosSearch, Inc.
Insights at Scale
6
Easy as 1,2,3
Step 1
Store
Step 2
Connect
Step 3
Analyze
Store any/all
data in your
cloud storage
• AWS S3 and GCP have
industry leading reliability,
resiliency, scalability, cost
effectiveness and security
built in…. simply use it
• No transformation required
Connect in less
than 5 minutes
Analyze data using
existing tools
• Click to configure S3 or GCP connectivity
– Read-only access to bucket data
– Location to write indices into bucket
• Click to Index (Chaos Index)
– Static, Live or Real-time data indexing
– Built-in schema detection/normalization
• Click to create a view (Chaos Refinery)
– Instant/Virtual Aggregation and
Transformation of Indices
– Relational Joins for Correlations
– Advanced JSON exploitation
– Full RBAC controls
• Use the Open APIs that
ChaosSearch publishes to
analyze/visualize the data.
• Data Consumers use their
existing tools.
© 2021 ChaosSearch, Inc.
Log Analytics Transformed
Before: Elasticsearch (ELK stack)
DevO
ps
SecO
ps
LOB
???
• Limited retention
• Expensive to scale
• Management and
configuration
challenges
• Downtime created by
instability at scale
• Multiple data silos
created due to the
limits above
Cloud Object Storage
i.e., Google GCS, AWS S3
Dev
Ops
Sec
Ops
LOB ???
PUBLISHED
ELASTIC API
One unified data lake
Unlimited scale and retention.
Save up to 80% on Managed Service with 99.99% uptime.
With ChaosSearch
© 2021
ChaosSearch, 7
Image Goes
Here
Our SRE teams used to struggle with managing
the vast amount of logs it takes to support
millions of users in real time in a consistent
manner across all our product lines. With
ChaosSearch, we are able to use a singular
solution for our various logs without the hassle
of managing the logging tools as well.”
Joel Snook, Director, DevOps Engineering
ChaosSearch Replaces Elasticsearch for Log Analytics
Activate your cloud object storage to become a hot, analytical data lake.
Thank you
© 2021 ChaosSearch, Inc.
Log Analytics at Scale
10
Optimizing cloud services and applications and mitigating persistent threats relies on complete log coverage
IT & Cloud Ops
Optimization
DevOps
Efficiency
• Efficiently capture all logs
across distributed
architecture, microservices,
containers, etc. to prevent
incidents and improve
troubleshooting
• Eliminate pipelines and
process and join multiple
logs virtually for in-depth
analysis in minutes instead
of days/weeks
• Faster root cause analysis
and troubleshooting
• Instant feedback into CI/CD
pipeline to identify potential
issues prior to production
• Minimize data filtering and
prep – capture all log data
efficiently and join multiple
sources
SecOps & Threat
Hunting
• Unlimited data retention -
Keep logs indefinitely to
thwart persistent threats and
meet compliance mandates
• Centralize all logs for greater
visibility, hunting, and threat
mitigation
• Built-in alerts to tag and
automate response to
threats in near real time.
William McKnight
President, McKnight Consulting Group
• Consulted to Pfizer, Scotiabank, Fidelity, TD
Ameritrade, Teva Pharmaceuticals, Verizon, and many
other Global 1000 companies
• Frequent keynote speaker and trainer internationally
• Hundreds of articles, blogs and white papers in
publication
• Focused on delivering business value and solving
business problems utilizing proven, streamlined
approaches to information management
• Former Database Engineer, Fortune 50 Information
Technology executive and Ernst&Young Entrepreneur
of Year Finalist
• Owner/consultant: Data strategy and implementation
consulting firm
William McKnight
The Savvy Manager’s Guide
The
Savvy
Manager’s
Guide
Information
Management
Information Management
Strategies for Gaining a
Competitive Advantage with Data
2
Data is Under Management when it is…
• In a leveragable platform
• In an appropriate platform for its profile and
usage
• With high non-functionals (availability,
performance, scalability, stability, durability,
secure)
• Data is captured at the most granular level
• Data is at a data quality standard (as
defined by Data Governance)
3
Analytic Architecture
Total Cost of Ownership is More Than Just
Cloud Costs
• Autonomous Administration
• Lack of Platform Features Leads to Increased
Configuration and Management
– stored procedures, referential integrity and uniqueness capabilities
– mission critical options for backup and disaster recovery, which
typically includes a standby database
– full ANSI-SQL compliance
• Performance
Cost Predictability and Transparency
• The cost profile options for cloud databases are straightforward
if you accept the defaults for simple workload or proof-of-
concept (POC) environments
• Initial entry costs and inadequately scoped environments can
artificially lower expectations of the true costs of jumping into a
cloud data warehouse environment.
• For some, you pay for compute resources as a function of time,
but you also choose the hourly rate based on certain enterprise
features you need.
• With some platforms, you pay for bytes processed and the
underlying architecture is unknown. The environment is scaled
automatically without affecting price. There is also a cost-per-
hour flat rate where you would need to calculate how long it
would take to run your queries to completion to predict costs.
• Customers need to analyze current workloads, performance,
and concurrency and project those into realistic pricing in
alternative platforms.
6
Cost Consciousness and Licensing Structure
• Be on the lookout for cost optimizations like not
paying when the system is idle, compression to save
storage costs, and moving or isolating workloads to
avoid contention.
• Look for the ability to directly operate on compact
open file formats Parquet and ORC
• Also, costs can spin out of control if you have to pay
a separate license for each deployment option or
each machine learning algorithm.
• Finally, also consider if you will be paying per user,
per node, per terabyte, per CPU, per hour, etc..
7
Cloud Data Warehousing
Data professionals who used to be valued for tuning
queries are now valued for tuning costs.
What is a Node?
• Azure SQL Data Warehouse is scaled by Data Warehouse Units (DWUs) which
are bundled combinations of CPU, memory, and I/O. According to Microsoft,
DWUs are “abstract, normalized measures of compute resources and
performance.”
• Amazon Redshift uses EC2-like instances with tightly-coupled compute and
storage nodes which is a “node” in a more conventional sense.
• Snowflake “nodes” are loosely defined as a measure of virtual compute
resources. Their architecture is described as “a hybrid of traditional shared-
disk database architectures and shared-nothing database architectures.” Thus,
it is difficult to infer what a “node” actually is.
• Google BigQuery does not use the concept of a node at all, but instead refers
to “slots” as “a unit of computational capacity required to execute SQL
queries,” which is also a vague and abstract concept.
Understanding Pricing 1/2
• The price-performance metric is dollars per query-hour ($/query-hour).
– This is defined as the normalized cost of running a workload.
– It is calculated by multiplying the rate offered by the cloud platform vendor times the number of computation
nodes used in the cluster and by dividing this amount by the aggregate total of the execution time
• To determine pricing, each platform has options. Buyers should be
aware of all their pricing options.
• For Azure SQL Data Warehouse, you pay for compute resources as a
function of time.
– The hourly rate for SQL Data Warehouse various slightly by region.
– Also add the separate storage charge to store the data (compressed) at a rate of $
per TB per hour.
• For Amazon Redshift, you also pay for compute resources (nodes) as a
function of time.
– Redshift also has reserved instance pricing, which can be substantially cheaper than
on-demand pricing, available with 1 or 3-year commitments and is cheapest when
paid in full upfront.
Understanding Pricing 2/2
• For Snowflake, you pay for compute resources as a function of time—
just like SQL Data Warehouse and Redshift.
– However you chose the hourly rate based on certain enterprise features you need
(“Standard”, “Premier”, “Enterprise”/multi-cluster, “Enterprise for Sensitive Data”
and “Virtual Private Snowflake”)
• With Google BigQuery, one option is to pay for bytes processed at $
per TB
– There’s also BigQuery flat rate
• Azure SQL Data Warehouse pricing is found at https://azure.microsoft.com/en-us/pricing/details/sql-
data-warehouse/gen2/.
• Amazon Redshift pricing is found at https://aws.amazon.com/redshift/pricing/.
• Snowflake pricing is found at https://www.snowflake.com/pricing/.
• Google BigQuery pricing is found at https://cloud.google.com/bigquery/pricing.
Pricing Gotchas: Memory Pressure on Scale
Out Compute
• Whenever a data warehouse does not have enough memory to build a
join hash table and keep it in memory, it has to spill it to disk
– This is costly in terms of performance, because the DBMS has to do
double work writing, sorting, and reading the hash table information all on
disk—rather than in memory
• If you want to provision a medium-sized cluster and let it scale up to
two medium clusters during the busy hours to handle the higher
concurrency, a large JOIN would spill to disk on one of the clusters
Pricing Gotchas: Scale Out Impact on Cost
• If an additional identical cluster is deployed
to handle the additional user queries, the
cost doubles for the time period the
additional cluster is up and running
Technology Stacks
Enterprise Analytic Platforms
Category
01-Dedicated Compute Azure Synapse Amazon Redshift ra3.4xlarge Google BigQuery Annual Slots Snowflake
02-Storage Azure Synapse SQL Pool Amazon Redshift Managed Storage
Google BigQuery Active
Storage Snowflake
03-Data Integration Azure Data Factory AWS Glue Google Dataflow Batch Talend Cloud Data Integration
04-Streaming Azure Stream Analytics Amazon Kinesis Google Dataflow Streaming Kafka Confluent Cloud
05-Spark Analytics Azure Databricks Premium Tier Amazon EMR + Kinesis Google Dataproc Azure Databricks Premium Tier
06-Data Exploration Azure Synapse Amazon Redshift Spectrum Google BigQuery On-Demand Snowflake
07-Data Lake Azure HDInsight Amazon EMR Google Dataproc Cloudera Data Hub + S3
08-Business Intelligence Power BI Professional Amazon Quicksight Google BigQuery BI Engine Tableau
09-Machine Learning Azure Machine Learning Amazon SageMaker Google BigQuery ML Amazon SageMaker
10-Identity Management Azure Active Directory P1 Amazon IAM Google Cloud IAM Amazon IAM
11-Data Catalog Azure Purview AWS Glue Data Catalog Google Data Catalog Alation Data Catalog
Sample Stack Cost Breakout
Dedicated Compute
Data Integration
Data Lake
Data Exploration
Technology Stack Costs
Stack Cost by Use Case for Midsize Projects
22
Stack Cost by Use Case for Large Projects
23
2-Year Enterprise Total Cost of Ownership
24
Project ROI & TCO
25
ROI =
Benefit
TCO Infrastructure Software
+
FTE
+
Consulting
+
Design Your Benchmark
• What are you benchmarking?
– Query performance
– Load performance
– Query performance with concurrency
– Ease of use
• Competition
• Queries, Schema, Data
• Scale
• Cost
• Query Cut-Off
• Number of runs/cache
• Number of nodes
• Tuning allowed
• Vendor Involvement
• Any free third party, SaaS, or on-demand software (e.g., Apigee or SQL
Server)
• Any not-free third party, SaaS, or on-demand software
• Instance type of nodes
• Measure Price/Performance!
26
Line Item Pricing (AWS)
Lookup CostCenter Category Platform Product Size UnitNode
Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure
01-Dedicated
Compute AWS Amazon Redshift ra3.4xlarge 1-Medium ra3.4xlarge
Amazon Redshift ra3.16xlarge-Infrastructure Infrastructure
01-Dedicated
Compute AWS Amazon Redshift ra3.16xlarge 2-Large ra3.16xlarge
Amazon Redshift Managed Storage-Storage Storage 02-Storage AWS
Amazon Redshift Managed
Storage 1-Medium GB-month
Amazon Redshift Managed Storage-Storage Storage 02-Storage AWS
Amazon Redshift Managed
Storage 2-Large GB-month
AWS Glue-Software Software 03-Data Integration AWS AWS Glue 1-Medium DPU-Hour
AWS Glue-Software Software 03-Data Integration AWS AWS Glue 2-Large DPU-Hour
Amazon Kinesis Data Analytics-Infrastructure Infrastructure 04-Streaming AWS Amazon Kinesis Data Analytics 1-Medium KPU-Hour
Amazon Kinesis Data Analytics-Infrastructure Infrastructure 04-Streaming AWS Amazon Kinesis Data Analytics 2-Large KPU-Hour
Amazon Kinesis Data Analytics-Storage Storage 04-Streaming AWS Amazon Kinesis Data Analytics 1-Medium GB-month
Amazon Kinesis Data Analytics-Storage Storage 04-Streaming AWS Amazon Kinesis Data Analytics 2-Large GB-month
Amazon EMR-Infrastructure Infrastructure 05-Spark Analytics AWS Amazon EMR 1-Medium r5.4xlarge
Amazon EMR-Software Software 05-Spark Analytics AWS Amazon EMR 1-Medium EMR on r5.4xlarge
Amazon EMR-Infrastructure Infrastructure 05-Spark Analytics AWS Amazon EMR 2-Large r5.4xlarge
Amazon EMR-Software Software 05-Spark Analytics AWS Amazon EMR 2-Large EMR on r5.4xlarge
Amazon Kinesis-Shards Shards 05-Spark Analytics AWS Amazon Kinesis 1-Medium Shard-hour
Amazon Kinesis-Shards Shards 05-Spark Analytics AWS Amazon Kinesis 2-Large Shard-hour
Amazon Redshift Spectrum-Software Software 06-Data Exploration AWS Amazon Redshift Spectrum 1-Medium TB-month
Amazon Redshift Spectrum-Software Software 06-Data Exploration AWS Amazon Redshift Spectrum 2-Large TB-month
Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure 06-Data Exploration AWS Amazon Redshift ra3.4xlarge 1-Medium ra3.4xlarge
Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure 06-Data Exploration AWS Amazon Redshift ra3.4xlarge 2-Large ra3.4xlarge
Amazon EMR-Infrastructure Infrastructure 07-Data Lake AWS Amazon EMR 1-Medium r5.4xlarge
Amazon EMR-Software Software 07-Data Lake AWS Amazon EMR 1-Medium EMR on r5.4xlarge
Amazon EMR-Infrastructure Infrastructure 07-Data Lake AWS Amazon EMR 2-Large r5.4xlarge
Amazon EMR-Software Software 07-Data Lake AWS Amazon EMR 2-Large EMR on r5.4xlarge
Amazon Quicksight Readers-Licenses Licenses
08-Business
Intelligence AWS Amazon Quicksight Readers 1-Medium User-month
Amazon Quicksight Readers-Licenses Licenses
08-Business
Intelligence AWS Amazon Quicksight Readers 2-Large User-month
Amazon Quicksight Authors-Licenses Licenses
08-Business
Intelligence AWS Amazon Quicksight Authors 1-Medium User-month
Amazon Quicksight Authors-Licenses Licenses
08-Business
Intelligence AWS Amazon Quicksight Authors 2-Large User-month
Amazon SageMaker-Infrastructure Infrastructure 09-Machine Learning AWS Amazon SageMaker 1-Medium ml.r5.2xlarge
Amazon SageMaker-Software Software 09-Machine Learning AWS Amazon SageMaker 1-Medium ml.r5.2xlarge
Amazon SageMaker-Infrastructure Infrastructure 09-Machine Learning AWS Amazon SageMaker 2-Large ml.r5.2xlarge
Amazon SageMaker-Software Software 09-Machine Learning AWS Amazon SageMaker 2-Large ml.r5.2xlarge
Amazon IAM-Licenses Licenses
10-Identity
Management AWS Amazon IAM 1-Medium Included
Amazon IAM-Licenses Licenses
10-Identity
Management AWS Amazon IAM 2-Large Included
AWS Glue Data Catalog-Software Software 11-Data Catalog AWS AWS Glue Data Catalog 1-Medium 100K objects
AWS Glue Data Catalog-Software Software 11-Data Catalog AWS AWS Glue Data Catalog 2-Large 100K objects
27
Summary
• Large Project Stack costs between $7M-$23M (to get full ML-based project to
production) and $19M-$43M over 2 years for the enterprise.
• Buyer Beware
– The total cost of ownership of cloud analytics platforms scales up too. Demand for
analytics at your company will only increase in the coming years.
• Hardware (CPU, memory, and input/output) is often the biggest performance
bottleneck of a database management system.
– Most cloud analytical products scale hardware in powers of 2
– In many systems, you can add more memory here or more CPU there at a more
fractional cost.
• Remember “only pay for what you use” is a two-sided coin.
• The true gauge of value is price-performance. Thus, we recommend that you
demand reliable performance at a predictable price from your analytical
platform.
• The true gauge of project efficacy is ROI.
Estimating the Total
Costs of Your Cloud
Analytics Platform
Presented by: William McKnight
“#1 Global Influencer in Cloud Computing” Thinkers360
President, McKnight Consulting Group
A 2 time Inc. 5000 Company
@williammcknight
www.mcknightcg.com
(214) 514-1444
Second Thursday of Every Month, at 2:00 ET
#AdvAnalytics

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Estimating the Total Costs of Your Cloud Analytics Platform

  • 1. Estimating the Total Costs of Your Cloud Analytics Platform Presented by: William McKnight “#1 Global Influencer in Cloud Computing” Thinkers360 President, McKnight Consulting Group A 2-time Inc. 5000 Company @williammcknight www.mcknightcg.com (214) 514-1444 Second Thursday of Every Month, at 2:00 ET With William McKnight
  • 3. ChaosSearch helps modern organizations Know Better™ by activating the data lake for analytics. The ChaosSearch Data Lake Platform indexes customers’ cloud data, rendering it fully searchable and enabling analytics at scale with massive reductions of time, cost and complexity.
  • 4. © 2021 ChaosSearch, Inc. The Data Analytics Challenge 3 Promise vs. Reality Efficiently manage data growth Rapid time to insights The Promise: Self-service access to all data for instant insights that maximize operational efficiency, security posture, and the user experience. Single repository for all data Dev Ops Sec Ops IT Ops LOB The Reality: Complex data swamp that increases costs and inhibits actionable insights. Data growth and variety exceeds infrastructure and resource capabilities Gaps in data access, time to access and loss of insights Complex data silos Dev Ops Sec Ops IT Ops LOB
  • 5. © 2021 ChaosSearch, Inc. 4 What if: You could analyze any and all your data? 1 2 Automated and massive scale 3 Dramatically reduce time to insight and save up to 80% You would Know Better™ → Insights at scale → Immediate time to insight → Free up critical resources → See the world the way you want it Without changing the way your users work
  • 6. © 2021 ChaosSearch, Inc. Cloud Data Lake Platform 5 ChaosSearch helps modern organizations Know Better™ by activating the data lake for analytics. * This is a roadmap item and subject to change. Beneficial Outcomes ✔ One unified Data Lake for analytics at scale ✔ Log, BI and Product-led growth insights ✔ Game changing simplicity and automation ✔ No more data pipelines or data movements ✔ No more schema management, sharding or managing server clusters and their uptime ✔ All while using the same set of analytic tools ✔ Scale and performance for analytic workloads with up to 80% cost savings Your Cloud Object Storage DevOps/SecOps Kibana SecOps Elastic API CXO Tableau/Looker Business Analyst Tableau/Looker Data Scientist TensorFlow/PyTorch ChaosSearch Data Platform Chaos Refinery® Chaos Fabric ® Chaos Index® Elastic API Elastic API SQL API* SQL API* ML APIs* Data Consumers PUBLISHED OPEN APIs
  • 7. © 2021 ChaosSearch, Inc. Insights at Scale 6 Easy as 1,2,3 Step 1 Store Step 2 Connect Step 3 Analyze Store any/all data in your cloud storage • AWS S3 and GCP have industry leading reliability, resiliency, scalability, cost effectiveness and security built in…. simply use it • No transformation required Connect in less than 5 minutes Analyze data using existing tools • Click to configure S3 or GCP connectivity – Read-only access to bucket data – Location to write indices into bucket • Click to Index (Chaos Index) – Static, Live or Real-time data indexing – Built-in schema detection/normalization • Click to create a view (Chaos Refinery) – Instant/Virtual Aggregation and Transformation of Indices – Relational Joins for Correlations – Advanced JSON exploitation – Full RBAC controls • Use the Open APIs that ChaosSearch publishes to analyze/visualize the data. • Data Consumers use their existing tools.
  • 8. © 2021 ChaosSearch, Inc. Log Analytics Transformed Before: Elasticsearch (ELK stack) DevO ps SecO ps LOB ??? • Limited retention • Expensive to scale • Management and configuration challenges • Downtime created by instability at scale • Multiple data silos created due to the limits above Cloud Object Storage i.e., Google GCS, AWS S3 Dev Ops Sec Ops LOB ??? PUBLISHED ELASTIC API One unified data lake Unlimited scale and retention. Save up to 80% on Managed Service with 99.99% uptime. With ChaosSearch © 2021 ChaosSearch, 7
  • 9. Image Goes Here Our SRE teams used to struggle with managing the vast amount of logs it takes to support millions of users in real time in a consistent manner across all our product lines. With ChaosSearch, we are able to use a singular solution for our various logs without the hassle of managing the logging tools as well.” Joel Snook, Director, DevOps Engineering ChaosSearch Replaces Elasticsearch for Log Analytics Activate your cloud object storage to become a hot, analytical data lake.
  • 11. © 2021 ChaosSearch, Inc. Log Analytics at Scale 10 Optimizing cloud services and applications and mitigating persistent threats relies on complete log coverage IT & Cloud Ops Optimization DevOps Efficiency • Efficiently capture all logs across distributed architecture, microservices, containers, etc. to prevent incidents and improve troubleshooting • Eliminate pipelines and process and join multiple logs virtually for in-depth analysis in minutes instead of days/weeks • Faster root cause analysis and troubleshooting • Instant feedback into CI/CD pipeline to identify potential issues prior to production • Minimize data filtering and prep – capture all log data efficiently and join multiple sources SecOps & Threat Hunting • Unlimited data retention - Keep logs indefinitely to thwart persistent threats and meet compliance mandates • Centralize all logs for greater visibility, hunting, and threat mitigation • Built-in alerts to tag and automate response to threats in near real time.
  • 12. William McKnight President, McKnight Consulting Group • Consulted to Pfizer, Scotiabank, Fidelity, TD Ameritrade, Teva Pharmaceuticals, Verizon, and many other Global 1000 companies • Frequent keynote speaker and trainer internationally • Hundreds of articles, blogs and white papers in publication • Focused on delivering business value and solving business problems utilizing proven, streamlined approaches to information management • Former Database Engineer, Fortune 50 Information Technology executive and Ernst&Young Entrepreneur of Year Finalist • Owner/consultant: Data strategy and implementation consulting firm William McKnight The Savvy Manager’s Guide The Savvy Manager’s Guide Information Management Information Management Strategies for Gaining a Competitive Advantage with Data 2
  • 13. Data is Under Management when it is… • In a leveragable platform • In an appropriate platform for its profile and usage • With high non-functionals (availability, performance, scalability, stability, durability, secure) • Data is captured at the most granular level • Data is at a data quality standard (as defined by Data Governance) 3
  • 15. Total Cost of Ownership is More Than Just Cloud Costs • Autonomous Administration • Lack of Platform Features Leads to Increased Configuration and Management – stored procedures, referential integrity and uniqueness capabilities – mission critical options for backup and disaster recovery, which typically includes a standby database – full ANSI-SQL compliance • Performance
  • 16. Cost Predictability and Transparency • The cost profile options for cloud databases are straightforward if you accept the defaults for simple workload or proof-of- concept (POC) environments • Initial entry costs and inadequately scoped environments can artificially lower expectations of the true costs of jumping into a cloud data warehouse environment. • For some, you pay for compute resources as a function of time, but you also choose the hourly rate based on certain enterprise features you need. • With some platforms, you pay for bytes processed and the underlying architecture is unknown. The environment is scaled automatically without affecting price. There is also a cost-per- hour flat rate where you would need to calculate how long it would take to run your queries to completion to predict costs. • Customers need to analyze current workloads, performance, and concurrency and project those into realistic pricing in alternative platforms. 6
  • 17. Cost Consciousness and Licensing Structure • Be on the lookout for cost optimizations like not paying when the system is idle, compression to save storage costs, and moving or isolating workloads to avoid contention. • Look for the ability to directly operate on compact open file formats Parquet and ORC • Also, costs can spin out of control if you have to pay a separate license for each deployment option or each machine learning algorithm. • Finally, also consider if you will be paying per user, per node, per terabyte, per CPU, per hour, etc.. 7
  • 18. Cloud Data Warehousing Data professionals who used to be valued for tuning queries are now valued for tuning costs.
  • 19. What is a Node? • Azure SQL Data Warehouse is scaled by Data Warehouse Units (DWUs) which are bundled combinations of CPU, memory, and I/O. According to Microsoft, DWUs are “abstract, normalized measures of compute resources and performance.” • Amazon Redshift uses EC2-like instances with tightly-coupled compute and storage nodes which is a “node” in a more conventional sense. • Snowflake “nodes” are loosely defined as a measure of virtual compute resources. Their architecture is described as “a hybrid of traditional shared- disk database architectures and shared-nothing database architectures.” Thus, it is difficult to infer what a “node” actually is. • Google BigQuery does not use the concept of a node at all, but instead refers to “slots” as “a unit of computational capacity required to execute SQL queries,” which is also a vague and abstract concept.
  • 20. Understanding Pricing 1/2 • The price-performance metric is dollars per query-hour ($/query-hour). – This is defined as the normalized cost of running a workload. – It is calculated by multiplying the rate offered by the cloud platform vendor times the number of computation nodes used in the cluster and by dividing this amount by the aggregate total of the execution time • To determine pricing, each platform has options. Buyers should be aware of all their pricing options. • For Azure SQL Data Warehouse, you pay for compute resources as a function of time. – The hourly rate for SQL Data Warehouse various slightly by region. – Also add the separate storage charge to store the data (compressed) at a rate of $ per TB per hour. • For Amazon Redshift, you also pay for compute resources (nodes) as a function of time. – Redshift also has reserved instance pricing, which can be substantially cheaper than on-demand pricing, available with 1 or 3-year commitments and is cheapest when paid in full upfront.
  • 21. Understanding Pricing 2/2 • For Snowflake, you pay for compute resources as a function of time— just like SQL Data Warehouse and Redshift. – However you chose the hourly rate based on certain enterprise features you need (“Standard”, “Premier”, “Enterprise”/multi-cluster, “Enterprise for Sensitive Data” and “Virtual Private Snowflake”) • With Google BigQuery, one option is to pay for bytes processed at $ per TB – There’s also BigQuery flat rate • Azure SQL Data Warehouse pricing is found at https://azure.microsoft.com/en-us/pricing/details/sql- data-warehouse/gen2/. • Amazon Redshift pricing is found at https://aws.amazon.com/redshift/pricing/. • Snowflake pricing is found at https://www.snowflake.com/pricing/. • Google BigQuery pricing is found at https://cloud.google.com/bigquery/pricing.
  • 22. Pricing Gotchas: Memory Pressure on Scale Out Compute • Whenever a data warehouse does not have enough memory to build a join hash table and keep it in memory, it has to spill it to disk – This is costly in terms of performance, because the DBMS has to do double work writing, sorting, and reading the hash table information all on disk—rather than in memory • If you want to provision a medium-sized cluster and let it scale up to two medium clusters during the busy hours to handle the higher concurrency, a large JOIN would spill to disk on one of the clusters
  • 23. Pricing Gotchas: Scale Out Impact on Cost • If an additional identical cluster is deployed to handle the additional user queries, the cost doubles for the time period the additional cluster is up and running
  • 25. Enterprise Analytic Platforms Category 01-Dedicated Compute Azure Synapse Amazon Redshift ra3.4xlarge Google BigQuery Annual Slots Snowflake 02-Storage Azure Synapse SQL Pool Amazon Redshift Managed Storage Google BigQuery Active Storage Snowflake 03-Data Integration Azure Data Factory AWS Glue Google Dataflow Batch Talend Cloud Data Integration 04-Streaming Azure Stream Analytics Amazon Kinesis Google Dataflow Streaming Kafka Confluent Cloud 05-Spark Analytics Azure Databricks Premium Tier Amazon EMR + Kinesis Google Dataproc Azure Databricks Premium Tier 06-Data Exploration Azure Synapse Amazon Redshift Spectrum Google BigQuery On-Demand Snowflake 07-Data Lake Azure HDInsight Amazon EMR Google Dataproc Cloudera Data Hub + S3 08-Business Intelligence Power BI Professional Amazon Quicksight Google BigQuery BI Engine Tableau 09-Machine Learning Azure Machine Learning Amazon SageMaker Google BigQuery ML Amazon SageMaker 10-Identity Management Azure Active Directory P1 Amazon IAM Google Cloud IAM Amazon IAM 11-Data Catalog Azure Purview AWS Glue Data Catalog Google Data Catalog Alation Data Catalog
  • 26. Sample Stack Cost Breakout
  • 32. Stack Cost by Use Case for Midsize Projects 22
  • 33. Stack Cost by Use Case for Large Projects 23
  • 34. 2-Year Enterprise Total Cost of Ownership 24
  • 35. Project ROI & TCO 25 ROI = Benefit TCO Infrastructure Software + FTE + Consulting +
  • 36. Design Your Benchmark • What are you benchmarking? – Query performance – Load performance – Query performance with concurrency – Ease of use • Competition • Queries, Schema, Data • Scale • Cost • Query Cut-Off • Number of runs/cache • Number of nodes • Tuning allowed • Vendor Involvement • Any free third party, SaaS, or on-demand software (e.g., Apigee or SQL Server) • Any not-free third party, SaaS, or on-demand software • Instance type of nodes • Measure Price/Performance! 26
  • 37. Line Item Pricing (AWS) Lookup CostCenter Category Platform Product Size UnitNode Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure 01-Dedicated Compute AWS Amazon Redshift ra3.4xlarge 1-Medium ra3.4xlarge Amazon Redshift ra3.16xlarge-Infrastructure Infrastructure 01-Dedicated Compute AWS Amazon Redshift ra3.16xlarge 2-Large ra3.16xlarge Amazon Redshift Managed Storage-Storage Storage 02-Storage AWS Amazon Redshift Managed Storage 1-Medium GB-month Amazon Redshift Managed Storage-Storage Storage 02-Storage AWS Amazon Redshift Managed Storage 2-Large GB-month AWS Glue-Software Software 03-Data Integration AWS AWS Glue 1-Medium DPU-Hour AWS Glue-Software Software 03-Data Integration AWS AWS Glue 2-Large DPU-Hour Amazon Kinesis Data Analytics-Infrastructure Infrastructure 04-Streaming AWS Amazon Kinesis Data Analytics 1-Medium KPU-Hour Amazon Kinesis Data Analytics-Infrastructure Infrastructure 04-Streaming AWS Amazon Kinesis Data Analytics 2-Large KPU-Hour Amazon Kinesis Data Analytics-Storage Storage 04-Streaming AWS Amazon Kinesis Data Analytics 1-Medium GB-month Amazon Kinesis Data Analytics-Storage Storage 04-Streaming AWS Amazon Kinesis Data Analytics 2-Large GB-month Amazon EMR-Infrastructure Infrastructure 05-Spark Analytics AWS Amazon EMR 1-Medium r5.4xlarge Amazon EMR-Software Software 05-Spark Analytics AWS Amazon EMR 1-Medium EMR on r5.4xlarge Amazon EMR-Infrastructure Infrastructure 05-Spark Analytics AWS Amazon EMR 2-Large r5.4xlarge Amazon EMR-Software Software 05-Spark Analytics AWS Amazon EMR 2-Large EMR on r5.4xlarge Amazon Kinesis-Shards Shards 05-Spark Analytics AWS Amazon Kinesis 1-Medium Shard-hour Amazon Kinesis-Shards Shards 05-Spark Analytics AWS Amazon Kinesis 2-Large Shard-hour Amazon Redshift Spectrum-Software Software 06-Data Exploration AWS Amazon Redshift Spectrum 1-Medium TB-month Amazon Redshift Spectrum-Software Software 06-Data Exploration AWS Amazon Redshift Spectrum 2-Large TB-month Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure 06-Data Exploration AWS Amazon Redshift ra3.4xlarge 1-Medium ra3.4xlarge Amazon Redshift ra3.4xlarge-Infrastructure Infrastructure 06-Data Exploration AWS Amazon Redshift ra3.4xlarge 2-Large ra3.4xlarge Amazon EMR-Infrastructure Infrastructure 07-Data Lake AWS Amazon EMR 1-Medium r5.4xlarge Amazon EMR-Software Software 07-Data Lake AWS Amazon EMR 1-Medium EMR on r5.4xlarge Amazon EMR-Infrastructure Infrastructure 07-Data Lake AWS Amazon EMR 2-Large r5.4xlarge Amazon EMR-Software Software 07-Data Lake AWS Amazon EMR 2-Large EMR on r5.4xlarge Amazon Quicksight Readers-Licenses Licenses 08-Business Intelligence AWS Amazon Quicksight Readers 1-Medium User-month Amazon Quicksight Readers-Licenses Licenses 08-Business Intelligence AWS Amazon Quicksight Readers 2-Large User-month Amazon Quicksight Authors-Licenses Licenses 08-Business Intelligence AWS Amazon Quicksight Authors 1-Medium User-month Amazon Quicksight Authors-Licenses Licenses 08-Business Intelligence AWS Amazon Quicksight Authors 2-Large User-month Amazon SageMaker-Infrastructure Infrastructure 09-Machine Learning AWS Amazon SageMaker 1-Medium ml.r5.2xlarge Amazon SageMaker-Software Software 09-Machine Learning AWS Amazon SageMaker 1-Medium ml.r5.2xlarge Amazon SageMaker-Infrastructure Infrastructure 09-Machine Learning AWS Amazon SageMaker 2-Large ml.r5.2xlarge Amazon SageMaker-Software Software 09-Machine Learning AWS Amazon SageMaker 2-Large ml.r5.2xlarge Amazon IAM-Licenses Licenses 10-Identity Management AWS Amazon IAM 1-Medium Included Amazon IAM-Licenses Licenses 10-Identity Management AWS Amazon IAM 2-Large Included AWS Glue Data Catalog-Software Software 11-Data Catalog AWS AWS Glue Data Catalog 1-Medium 100K objects AWS Glue Data Catalog-Software Software 11-Data Catalog AWS AWS Glue Data Catalog 2-Large 100K objects 27
  • 38. Summary • Large Project Stack costs between $7M-$23M (to get full ML-based project to production) and $19M-$43M over 2 years for the enterprise. • Buyer Beware – The total cost of ownership of cloud analytics platforms scales up too. Demand for analytics at your company will only increase in the coming years. • Hardware (CPU, memory, and input/output) is often the biggest performance bottleneck of a database management system. – Most cloud analytical products scale hardware in powers of 2 – In many systems, you can add more memory here or more CPU there at a more fractional cost. • Remember “only pay for what you use” is a two-sided coin. • The true gauge of value is price-performance. Thus, we recommend that you demand reliable performance at a predictable price from your analytical platform. • The true gauge of project efficacy is ROI.
  • 39. Estimating the Total Costs of Your Cloud Analytics Platform Presented by: William McKnight “#1 Global Influencer in Cloud Computing” Thinkers360 President, McKnight Consulting Group A 2 time Inc. 5000 Company @williammcknight www.mcknightcg.com (214) 514-1444 Second Thursday of Every Month, at 2:00 ET #AdvAnalytics