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AWS Cloud economics
- 1. 1© 2019 Amazon Web Services, Inc. or its affiliates. All rights reserved | 1© 2019 Amazon Web Services, Inc. or its affiliates. All rights reserved |
Digital Transformation Day
Kuwait
Cloud Financial Management
Manage, optimize, and predict AWS costs
Santiago Freitas
Head of Technology, AWS MENA
- 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
You’re using AWS
and you like it!
- 3. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
But maybe you are spending more
than you planned …
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Or you’d just like to spend less
- 5. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
With the AWS cloud,
you only pay for what
you use
- 6. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
How do you
ensure that you
only pay for what
you need?
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Not a traditional data center
Sources:
1. RightScale 2019 State of the Cloud Report from Flexera;
2. (451 Research Report) Cost Management in the Cloud Age Enterprise readiness threatens innovation. (451 Research study commissioned by Cloudability)
Poor cloud cost management
impacts the business2
80% of respondents acknowledge that poor
financial management related to cloud costs has
had a negative impact on their business
Slows/halts cloud adoption (53%)
Cripples innovation (25%)
Lowers quality of service (38%)
Leads to sprawl/underutilization of resources (40%)
Increases cost (22%)
Traditional financial management
processes cause up to $10B+ in
excess annual cloud spend1
65%
efficient
cloud spend
35%
excess spend
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Measurement &
accountability (see)
Account & tagging strategy
Cost reporting &
monitoring processes
Cost show/chargeback
Efficiency/value KPIs
Putting it all together:
Cloud Financial Management
Planning &
forecasting (plan)
Budgeting & forecasting
variable cloud usage
POC based cost estimation
Business case/value articulation
Strategic fit
Cost
optimization (save)
Cost aware architecture,
design & service selection
Match capacity with demand
Choose the right pricing model
Identify resource waste
Cloud financial
operations (run)
Secure executive sponsorship
Partnership between Finance
& Technology organizations
Invest in people, governance
& tools
Celebrate accomplishments
- 9. 9© 2019 Amazon Web Services, Inc. or its affiliates. All rights reserved | 9© 2019 Amazon Web Services, Inc. or its affiliates. All rights reserved |
Digital Transformation Day
Kuwait
How do you get hundreds or even
thousands of people to take action?
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Digital Transformation Day
Kuwait
Building a cost conscious culture
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Digital Transformation Day
Kuwait
If I can see it and believe it,
then I can achieve it
Arnold Schwarzenegger
- 12. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
How much does my project and app cost?
How many EC2 RIs or Savings Plans should we
purchase?
Why did our spend go up in region us-east-1 in
September?
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Step 1: Establish your account strategy
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AWS account
Security and
resource boundary
API limits and
throttling
Billing
separation
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Why one account isn’t enough
Billing
Many teams
Security and
compliance controls
Business
process
Isolation
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Start with clean data structure
Cost allocation tags
Environment (DEV)
Project
Team
Application ID
Cost center
AWS Organizations
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AWS Organizations + budgets for monitoring
Alerts can provide
notifications when budget is
reached
Cost allocation tags
Environment
Project
Team
Application ID
Cost center
- 18. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
AWS Control Tower:
Consistent and simple multi-account management
Automated AWS setup
Launch an automated
landing zone with best-
practices blueprints
Policy enforcement
Pre-packaged guardrails
to enforce policies or
detect violations
Dashboard for oversight
Continuous visibility
into workload compliance
with controls
- 19. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Step 2: Establish your tagging strategy
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What’s in a tag?
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Using tags to establish visibility & chargebacks
https://aws.amazon.com/answers/account-management/aws-tagging-strategies/
Stakeholders Examples
• Cost center
• Application or workload
• User
• Expiration date
• Automation support
- 22. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
AWS Tools to help with missing or misspelled tags
2. AWS Config + Lambda1. AWS Tag Editor
https://bit.ly/co17_tag2
https://docs.aws.amazon.com/awsconsolehelpdocs/latest/gsg/scenario-implementing-tagging.html
- 23. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Step 3: Set up cost reports in AWS Cost Explorer
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AWS Cost Explorer
AWS Cost Explorer lets you dive deeper into your
cost and usage data to identify trends, pinpoint
cost drivers, and detect anomalies
Get started quickly!
• Monthly and daily cost by service or linked
account
• Monthly EC2 running hours cost and usage
• Reserved instance reports
• RI utilization
• RI coverage
NOTE: All functionality is also available
programmatically via the AWS Cost Explorer API
- 25. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
The five pillars of cost optimization
Right-sizing your
instances
Pick the right
pricing model
Increase elasticity
Measuring &
monitoring
Match usage to
storage class
- 26. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
New! AWS Cost Explorer: Resource optimization
Amazon EC2 Resource
Rightsizing
recommendation
• Available for payer and
linked account
• All of these features
can also be accessed
through the Cost
Explorer API
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Automate to self-sustain
AWS Instance Scheduler
AWS Auto Scaling
S3 Intelligent-Tiering
AWS Budgets
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Where to start
• Visit cost optimization resource center @
https://aws.amazon.com/pricing/cost-optimization/
• Enable cost explorer for your organization
• Leverage cost management partners
https://aws.amazon.com/products/management-tools/partner-
solutions/
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Thank you!