Cost Optimisation on AWS

ianmas@amazon.com@IanMmmm

Ian Massingham — Technical Evangelist

How to make your funding go further

LOWER COSTS WITH THE AWS CLOUD

2 31 4Replace up-front

capital expense with low variable cost

Save more money as you grow bigger

Economies of scale allow AWS to continually

lower costs

Pricing model choice to support variable &

stable workloads

LOWER COSTS THAN ON-PREMISES

On-PremisesTraditional

Data Centre

On-PremisesVirtualised

Data Centre

AWS

CAPEXCAPEX

OPEX

OPEX

OPEX

Cost savings from running internal IT more efficiently

Cost savings from moving to a cloud provider

AWS Scale • Multiple new data centres built each year• Volume purchasing, highly automated

supply chain optimisation

Utilisation fundamentally higher in the AWS Cloud

• Aggregating non-correlated workloads, scale, spot market

Amazon specific hardware designs • OEM acquisition of custom servers and

networking equipment• Direct purchasing of memory, disk & CPU• AWS controlled hypervisor and network

protocol layers

AWS PRICING PHILOSOPHY

More AWS Usage

More Infrastructure

More Customers

Lower Infrastructure

Costs

Economies of Scale

Reduced Prices

EcosystemGlobal Footprint

New FeaturesNew Services

InfrastructureInnovation

59PRICE REDUCTIONS

We pass the savings along to our customers in the form of low

prices and continuous reductions

£1.2M annual savings

By using Amazon Redshift, FT is supporting the same business functions with costs that are 80 percent lower than before.

Headcount has not increased, and queries run much faster.

Reduced costs to operate the systems supporting UK MoT Testing by £100M over 10-years

COST OPTIMISATION TIPS & TRICKS

1. CHOSE THE RIGHT INSTANCE TYPES

Choose an instance that best meets your basic

requirements

Start with memory & then choose closest virtual cores

Assess peak IOPS storage requirements

Run multiple instances in multiple Availability Zones

Change instance size up or down based upon

monitoring

Use CloudWatch & Trusted Advisor to assess

START DEPLOY & SCALETUNE

2. USE AUTO SCALING

LAUNCH CONFIGURATION

Describes what Auto Scaling will create when adding Instances

Only one active launch configuration at a time

as-create-launch-config --image-idami-54cf5c3d --instance-typem4.medium --keymykey --groupwebservers --launch-config101-launch-config

AUTO SCALING GROUP

Auto Scaling managed grouping of EC2 instances

Automatically scale the number of instances by policy

as-create-auto-scaling-group101-as-group --availability-zonesus-east-1aus-east-1b --launch-configuration101-launch-config --load-balancersmyELB --max-size5 --min-size1

AUTO SCALING POLICY

Parameters for performing an Auto Scaling action

Scale Up/Down and by how much

as-put-scaling-policy101ScaleUpPolicy --auto-scaling-group101-as-group --adjustment=1 --typeChangeInCapacity --cooldown300

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

UTILISATION & AUTO SCALING GRANULARITY

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

UTILISATION & AUTO SCALING GRANULARITY

41 Instance Hoursm4.large @ $0.108/hr

= $4.428/day

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

UTILISATION & AUTO SCALING GRANULARITY

70 Instance Hourst2.medium @ $0.047/hr

= $3.29/day

~26% SAVING

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

UTILISATION & AUTO SCALING GRANULARITY

70 Instance Hourst2.small @ $0.023/hr

= $1.61/day

~63% SAVING

3. TURN OFF UNUSED INSTANCES

Development/test instances

Simple instance stop/start Tear down & build rapidly

Treat resources as disposable

Deployment & Management

Containers

Dev/ops Tools

Resource Templates

Usage Tracking

Monitoring and Logs

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

4. USE RESERVED INSTANCES

100%

75%

58%

38%

13%

8%

On Demand Instance

Reserved Instance

RI PRICING | T2.SMALL IN EUROPE (LONDON)

AWS SERVICES OFFERING RESERVATIONS

Amazon EC2

up to 75% savings

Amazon RDS

up to 76% savings

Amazon DynamoDB

up to 76% savings

Amazon Redshift

up to 73% savings

Amazon ElastiCache

up to 70% savings

5. USE SPOT INSTANCES

Pricing Up to 92% discount

Elastic Capacity not otherwise available

Tradeoff Potential for interruption

USING SPOT INSTANCES FOR HPC WORKLOADS

Case Study

Building a Top500 HPC Cluster on AWS

0

18

35

53

70

On-Premises AWS

$68M

$33K

Cost Comparison

1.21 PFLOPS, 16,788 EC2 Instances in 8 Regions, 264 years of computing in 18 hours

6. MAKE USE OF APPROPRIATE STORAGE CLASSES

AWS Cloud

Amazon Glacier

Gateway Appliance/ AWS Storage Gateway

Amazon S3

Block File

On-premises Data Center

Archive Backup Disaster Recovery

Amazon EBS

Amazon S3 Standard - Infrequent Access • Same durability as S3 Standard • Up to 45.4% savings • $0.01 per GB retrieval fee

Amazon Glacier • Same durability as S3 • 3 to 5 hours restore time • Up to 81.3% savings • Great for archiving, long-term backups

and cold or old data

7. OFFLOAD FROM YOUR ARCHITECTUREThe more you can offload, the less infrastructure you need to maintain, scale and pay for

• Offload traffic to Amazon CloudFront and S3

• Introduce Caching

No CDN

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CDN for Static

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CDN for Static & DynamicContent

8. USE SERVICES, DON’T REINVENT THE WHEEL

HYBRID ARCHITECTURE

Data Backups

Integrated App Deployments

Direct Connect

Identity Federation

Integrated Resource Management

Integrated Networking

VMware Integration

MARKETPLACE

Business Apps DatabasesDevOps Tools NetworkingSecurity StorageBusiness Intelligence

INFRASTRUCTURE

Availability Zones

Points of Presence

Regions

CORE SERVICESCompute VMs, Auto-scaling, Load Balancing, Containers, Cloud functions

Storage Object, Blocks, File, Archivals, Import/Export

Databases Relational, NoSQL, Caching, Migration

CDN Networking VPC, DX, DNS

Access ControlIdentity Management Key Management & StorageMonitoring & Logs

SECURITY & COMPLIANCE

Resource & Usage AuditingConfiguration Compliance Web application firewall Assessment and reporting

TECHNICAL & BUSINESS SUPPORT

Support Professional Services Account ManagementPartner Ecosystem Solutions ArchitectsTraining & Certification Security & Billing Reports

Optimization Guidance

ENTERPRISE APPS

Backup

Corporate Email

Sharing & Collaboration

Virtual Desktops

IoT

Rules Engine

Registry

Device Shadows

Device Gateway

Device SDKs

DEVOPSMOBILE SERVICESAPP SERVICESANALYTICS

Data Warehousing

Hadoop/Spark

Streaming Data Collection

Machine Learning

Elastic Search

Push Notifications

Identity

Sync

Resource Templates

One-click App Deployment

Triggers

Containers

DevOps Resource Management

Application Lifecycle Management

API Gateway

Transcoding

Queuing & Notifications

Email

Workflow

Search

Streaming Data Analysis

Business Intelligence

Mobile Analytics

Single Integrated Console

Mobile App Testing

Data Pipelines

Petabyte-Scale Data Migration

Database Migration

Schema Conversion

Application Migration

MIGRATION

AVOID UNDIFFERENTIATED HEAVY LIFTING

Amazon Relational Database Service (RDS)

Elastic Load Balancing

Amazon Simple Queue Service (SQS)

Amazon ElastiCache Amazon Elastic MapReduce

Amazon Simple Notification Service (SNS)

9. USE CONSOLIDATED BILLING

• Receive a single bill for all charges incurred across all linked accounts• Share RI discounts• Combine tiering benefits

10. TAKE ADVANTAGE OF AWS TOOLS

AWS Trusted Advisor AWS EC2 Usage ReportsAWS Cost Explorer

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@IanMmmmIan Massingham — Technical Evangelist