Post on 15-Apr-2017
5 Ways to Control Your AWS Spend(or, How to Make Your CFO Happy)
This document is confidential and proprietary not to be copied or otherwise reproduced nor given to parties without prior written
consent. © ParkMyCloud Inc 2016
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AWS Elastic Compute Cloud (EC2)
• AWS has a $10B run rate, growing 70% Y-o-Y
• EC2 makes up almost 70% of that revenue, growing at 88% Y-o-Y (~$7 B)
• Approximately 51% are non-production (~$3.5B)
How can we unlock savings from here?
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AWS Has Reduced Prices To Drive Demand• In 2006 On-Demand (Pay as you go)
introduced as 1st Purchasing Option• AWS now has 40 Instance Types and 13
regions• As adoption increased, so did “sticker shock”• AWS introduced other ways to help customers
save money and accelerate adoption:o Reserved Instances o Spot Instances o Auto Scaling Groups using all options above
*AWS claims up to 75% with 3 year commitment
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1. How Reserved Instances Work• Contract – Pay upfront to reserve capacity for 1 or 3
year commitment*• Pay upfront, partial upfront + monthly or monthly • Use it or lose it: o Managing and tracking RI usage can be very complexo Specific to a Region, Availability Zone, Instance Type,
Platform Type and Tenancyo AWS applies the benefit for instances that match (at
random)o AWS decrements contract amount every hour when not
usedo If users don’t launch matching types, companies pay twice
– for unused RI’s and for the new instances
*There is a market place for unused RI’s where you can get shorter contract periods.
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Reserved Instance Savings
31%41% 43%
60% 63%
• If AWS drops their pricing, then the promised savings evaporate!
• Therefore, the Best Use for Reserved Instances: Production.
• We can do better than that for non-production!
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2. How Spot Instances Work• You bid on AWS spare capacity within Spot Pools, based on
Instance Type, Platform, Availability Zone• The instance keeps running, if:o There is spare capacityo Your bid price > the actual price
• Risks:o Your app might not run immediatelyo Your app might terminate abruptly (after 2 minute warning)
• Mitigations:o Build apps that can withstand interruption and/or run in parallelo Use a mixture of on-demand and spot, with persistent requestso Be flexible in Instance Type (broader choice, lower cost)o Less demand on older Instance Typeso Leverage Spot Fleets (specify a mix of types with a single request)
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Spot Instance Savings
m4.large example:
On-Demand Price: $0.126Bid Price: $0.030Spot Price: $0.0139
Savings: 89%
Savings in the 70% to 90% range are not uncommon for Spot
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Where Are Spot Instances Being Used?Best Uses:
Batch Production Workloads• Scientific research (HPC jobs)• Analytics batch jobs (e.g., Hadoop)• Batch video processing
Non-production Workloads:• Performance and Scalability Testing
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3. How Auto Scaling Groups WorkAuto Scaling Groups:• Leverage any or all of the
Purchasing Options discussed
• Quickly scale up to meet demand
• Scale down to save money• Improve fault tolerance• Best Uses:o Production: Auto Scaling
Groups + Reserved Instanceso Non-Production: Auto
Scaling Groups + Spot Instances
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4. Scheduling "On/Off” Times with Scripting• The simplest way to save money in these non-
production environments: Turn off stuff when not in use* • AWS does not offer a “parked” state has no plans to do
so• Recommended by most cloud analytics platforms, but
many don’t help users actually do it• Some cloud management platforms can do this, but
they are expensive and complicated
Lack of viable options has driven customers to fallback to their comfort zone: Scripting
– How??
*The 10 Biggest Mistakes Made With Amazon Web Services
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The Problem with Scripting
• Scripting is not cost-effective• You have to maintain these scripts as the environment
changes ($$)• If you don’t maintain them, you miss stuff that could have
turned off ($$$)• How do you quantify the savings to your leadership to
justify the effort, without some type of cost tracking or reporting? ($$$)
• How will you add new features? For example, support for other cloud providers: Azure or Google Compute ($$$)
• Maintaining these scripts robs you of time that could be better spent on your company’s main mission ($$$$)
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5. ParkMyCloud: Purpose-Built to Save Money• ParkMyCloud schedules on/off times for EC2
instances (i.e., “Instance Parking”) without scripting
• Think of “Parked” as a new instance “state” between Running and Stopped
• Achieves EC2 Savings of 50 – 73%, without an annual commitment, upfront payment or risk of instance termination
On DemandReservedSpot
FreeFull Price
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Reserved Instance Savings
31%41% 43%
64% 60% 63% 64%
ParkMyCloud Advantages in Non-Production• Better Savings• No Commitment or Upfront Payment• Price Cut Protection
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Create Schedules• You create parking schedules that fit your needs:
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Apply Them To Non-Production Instances
• ParkMyCloud recommends non-production instances, based on criteria you provide)
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Reap the Savings
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Without Breaking the Bank
• Costs about $3 / instance / month to park
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ParkMyCloud Product Demo
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Summary – Unlocking EC2 Non-Production Savings
RISK
SAVI
NG
S
High Low
High
Low
On Demand
SpotSavings: 70-90%Downside: • Delay in Fulfillment• Termination on Short Notice• Complex Mitigation
ReservedSavings: 31-43%Downside: • Locked in for 1 or 3 years• No Price Cut Protection• Use it or Lose it
Savings: 50-73%Downside: • Non-Production Only
Auto Scaling
Non-Production or Production Batch
Real-time or Interactive Production
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Thank you! Questions?Dale Wickizer
Chief Technology Officer & Co-Founderdwickizer@parkmycloud.com
www.parkmycloud.com