Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 1Insight Presentation

Cost saving practices for AWS, Azure and Google Cloud PlatformSverre van Straaten

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 2

Sverre van Straaten

Work background and experience:

Background in cloud, professional

services industry and sales

At Insight since 2018

• EMEA Cloud Optimization Senior Consultant

• 11 years of experience in software, cloud and services

• Previously worked for IBM & worked with companies in banking, e-commerce, staffing & recruiting

• Multinational cloud optimization projects across Azure and AWS

Introduction

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 3

Agenda

What is the cost of Infrastructure as a Service, Platform as a Service comprised of

On-demand vs reserved pricing

Differences between Reserved Instances on AWS, Azure and Use Discounts on Google Cloud Platform

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 4

What is the cost of Infrastructure as a Service, Platform as a Service comprised of

11%

10%

79%

COSTS

Infrastructure Cost

Operating System Cost

Third-party Software Cost

Component

Azure VM Standard D32 v3 (32 vCPUs, 128

GB RAM)Ireland

AWS EC2m4.10xlarge

(32 vCPUs, 128 GB RAM) Ireland

GCPn1-standard-32(32 vCPUs, 120

GB RAM)Belgium

Compute Only $1 249.76 $1 519.64 $855.21including SUD

Windows Server Licensing

$1 074.56 $1 077.50 $934.40

SQL Server Enterprise

$8 760.0 $8 784.0 $9 320.64

Total $11 084.32 $11 381.14 $11 110.25

Example: Microsoft SQL Server on Windows Server Virtual Machine

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 5

On-demand vs reserved pricing

RP RP RP RP RP RP RP

OD OD OD OD

Hour 1 Hour 2 Hour 3 Hour 4 Hour 5 Hour 6 Hour 7

1 x ReservationPrice o

f in

sta

nces r

unnin

g

OD OD

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 6

Azure Reservations

Applicable to

Reserved Virtual Machine Instance

SQL Database reserved vCore

Azure Cosmos DB reserved capacity

Programs

Enterprise Agreement and Subscription (EA/EAS)

Server and Cloud Enrollment (SCE)

Cloud Solution Provider (CSP)

Pay-As-You-Go (PAYG)

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 7

Azure Reservations

Commitment: 1 or 3 years

Range of discount: up to 72%

Payment options: Upfront, Monthly for duration of reservation

Exchange or Cancellation options

Can be changed to different region

Prorated refund based on the remaining term of the RI minus a 12 percent early termination fee

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 8

AWS Reserved Instances

Applicable to

AWS Virtual Machines (EC2)

AWS Relational Database Service (RDS)

Bare metal instances

Programs

Purchase from AWS

RI Marketplace

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 9

AWS Reserved Instances

Commitment: 1 or 3 years

Range of discount:Standard: 1 year (40%), 3 year (60%)

Convertible: 1 year (31%), 3 year (54%)

Payment options: All Upfront, Partial Upfront, No Upfront

Exchange or Cancellation options:

Convertible RI can only be exchanged for other Convertible RIs

Region cannot be changed

RI can be sold on RI Marketplace for sell price minus AWS 12% seller fee

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 10

GCP Sustained Use Discount

Applied Automatically

Usage Level (% of month) % at which incremental is charged

0%-25% 100% of base rate

25%-50% 80% of base rate

50%-75% 60% of base rate

75%-100% 40% of base rate

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 11

GCP Committed Use Discount

Commitment: 1 or 3 years

Range of discount:1 year: 37%

3 year: 55%

Payment options: No Upfront

Exchange or Cancellation options: cannot be cancelled

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 12

Example: Reservation Compute only

ComponentAzure VM

Standard D32 v3AWS EC2

h1.8xlargeGCP

n1-standard-32

On-demand price (month) $1 249.76 $1 519.64 $855.21

1 year reservationeffective monthly price (1 year)

$819.00 ($9 828.02) $1024.34 ($12 280.00) $786.08 ($9 433.05)

3 year reservationeffective monthly price (3 year)

$540.22 ($19 447.99) $683.14 ($24 593.00) $561.48 ($20 213.31)

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 13

Example: Reservation including Microsoft SQL Server and Windows Serveras a VM

ComponentAzure VM

Standard D32 v3AWS EC2

h1.8xlargeGCP

n1-standard-32

On-demand price (1 year) $133 011.84 $136 573.68 $133 323.00

1 year reservation $126 842.74 $130 295.00 $132 493.50

3 year reservation $373 492.15 $378 637.00 $389 394.90

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 14

Notes and best practices

Reservations do not apply to a specific VM, they are shared within account / subscription / region – purchase regularly in bulk instead of single ad-hoc purchases

Instances get changed over time – communicate with IT about instance life cycle

Prices can drop within 3 year period - making a 3 year commitment is not always the best idea

Instances can become outdated – purchase for new instance types

Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved. 15Insight Proprietary & Confidential. Do Not Copy or Distribute. © 2018 Insight Direct USA, Inc. All Rights Reserved.Insight Presentation 15

Questions?

THANK YOU!