The Lean Cloud for Startups with AWS - Cost Optimisation
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COST OPTIMIZATION
Ianni Vamvadelis Solutions Architect
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Multiple dimensions of optimization
Cost Performance Response time Time to market High-availability Scalability Security Manageability …….
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Elastic Capacity
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When you turn off your cloud resources, you actually stop paying for them
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6 am
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10 am
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
We
b S
erv
ers
Hour
25% Savings
during a day
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Availability Zone #2
Availability Zone #1
Auto Scaling group : App Tier
Auto Scaling group : Web Tier
Elastic Load Balancer
www.MyWebSite.com (dynamic data)
media.MyWebSite.com (static content,
streaming media)
Amazon Route 53 (DNS)
Amazon EC2
Amazon RDS Amazon RDS
Amazon S3
Amazon CloudFront
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Auto scaling options
• Scaling base on Policy – Scale up and down base on metrics
Scaling Up policy - Double the group size if avg cpu > 80%
Scaling Down policy - Decrement by 10% if avg cpu < 30%
• Scaling by Schedule Scheduled Actions to meet known demand
Scheduled up to 31 days into the future
Recurring scheduled scaling activities.
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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Web
Serv
ers
Days of the Month
75% Savings
during a month
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Instance Types
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On Demand
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Choosing an Instance Type
• Start with the EC2 instance type that best matches
– memory requirements
virtual cores
• Tune your instance type to optimise for cost
– No need to get it right first time
• Run across AZs
Smaller sizes => more granularity => deploy across AZs
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Knowing your usage
Instance
Amazon CloudWatch
Alarm
Free Memory
Free CPU Free HDD
At 1-min intervals
Custom Metrics
PUT 2 weeks
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Billing alerts
Dev 1
Dev 2
Test Master Account
Production
Internal Systems
Dev 1 reached $100
Dev 2 reached $250
Test reached $1,000
Prod reached $1,200
Int. reached $400
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Programmatic access
Dev 1
Dev 2
Test Master Account
Consolidated Billing
Data labeled by
source in S3
Production
Internal Systems
Billing Alerts
Bill reached $x
Cost accounting in
favorite package
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Business
Basic
Developer
Enterprise
Offering
24x7x365 ✓
Forum Access ✓
Documentation ✓
Access to support Phone, Chat,
Named Contacts 5
Fastest Response Time 1 Hour
Architecture Support Use Case
Guidance
Best Practice ✓
Diagnostics Tools ✓
Direct Routing ✓
3rd Party Software ✓
Trusted Advisor ✓
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Business
Basic
Developer
Enterprise
Offering
24x7x365 ✓
Forum Access ✓
Documentation ✓
Access to support Phone, Chat,
Named Contacts 5
Fastest Response Time 1 Hour
Architecture Support Use Case
Guidance
Best Practice ✓
Diagnostics Tools ✓
Direct Routing ✓
3rd Party Software ✓
Trusted Advisor ✓
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Horizontal Scaling and
Vertical Scaling
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Reserved Instances
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Optimize by using Reserved Instances
Heavy Utilization RI
Medium Utilization RI
Light Utilization RI
1-year and 3-year terms
On-demand Instances
• Pay as you go
• Starts from $0.02/Hour
Reserved Instances
• One time low upfront fee + lower hourly cost
• $23 for 1 year term and $0.012/Hour
Spot Instances
• Requested Bid Price and Pay as you go
• $0.005/Hour as of today at 9 AM
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Light Utilization RI
• 15-40% utilization
• Lower costs up to 34%
• Use Cases: Disaster Recovery, Weekly / Monthly reporting, Elastic Map Reduce
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Medium Utilization RI
• 41-79% utilization
• Lower costs up to 49%
• Use Cases: Web applications, many heavy processing tasks, running much of the time
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Heavy Utilization RI
• > 80% utilization
• Lower costs up to 58%
• Use Cases: Databases, Large Scale HPC, Always-on infrastructure, Baseline
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Best RI for Utilisation
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Heavy
Medium
Light
O-Demand
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Optimizing Cost with RIs
0
2
4
6
8
10
12
14
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
On Demand
Light Utilization RI
Medium Utilization RI
Heavy utilization RI
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http://aws.amazon.com/whitepapers
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Spot Instances Bid on unused Amazon EC2 capacity.
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Optimize by using Spot Instances
On-demand Instances
• Pay as you go
• Starts from $0.025/Hour
Reserved Instances
• One time low upfront fee + Pay as you go
• $23 for 1 year term and $0.015/Hour
Spot Instances
• Requested Bid Price and Pay as you go
• $0.005/Hour as of today at 9 AM
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What are Spot Instances?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Sold at 50% Discount!
Sold at 56% Discount!
Sold at 66% Discount!
Sold at 59% Discount!
Sold at 54% Discount!
Sold at 63% Discount!
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What is the tradeoff?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Reclaimed
Reclaimed
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Architecting for Spot Instances
Decouple Components Separate interactive and backend processing
Design for interruption Use SQS, SWF
data in a durable store
save progress regularly
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Use Cases for Spot
Analytics Financial Modelling
and Analysis
Media Encoding Geospatial Analysis
Testing Scientific Computing
Web Crawling Big Data
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#1: Cost without Spot 4 instances *14 hrs * $0.50 = $28 Job Flow
14 Hours
Duration:
EMR with Spot Instances
#2: Cost with Spot 4 instances *7 hrs * $0.50 = $14 +
5 instances * 7 hrs * $0.25 = $8.75
Total = $22.75
Scenario #1
Duration:
Job Flow
7 Hours
Scenario #2
Time Savings: 50%
Cost Savings: ~22%
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Bidding Strategies
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Strategy: Optimize for Cost
• Engineered application towards a cost
• Set low maximum bid price to minimize costs
• Comfortable if process takes longer or jobs were re-run
• When interrupted, no charge for that hour.
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$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
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Strategy: Price History Momentum
• Monitor spot market price
• Bid 10% above Average Spot Price of the Last Hour
• Maximum bid of 80% of On-Demand Price
• Expect fewer interruptions than Optimize for Cost
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Strategy: Price History Momentum
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Strategy: Discount over On-Demand
• Bid around the On-Demand price
• Use On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)
• May pay more some hours, but on average they pay significantly less
• This bidding strategy ensures a discount over On-Demand
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Strategy: Discount over On-Demand
Switch to
On-Demand Switch Back
to Spot
Substantial
Savings
Much lower
costs than
On-Demand
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Strategy: Minimize Interruption ~57%
Savings
On Average
Substantial
Savings
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Complementary services
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Web Servers
$0.085 per hour
(small instance) Availability Zone
$0.028 per hour
Web Servers
Availability Zone
EC2 instance
+ software LB
Elastic Load
Balancer DNS
DNS
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Producer
SQS queue
Consumers
Consumers Producer
EC2 instance
+ software queue
$0.01 per
10,000 Requests ($0.000001 per Request)
$0.085 per hour
(small instance)
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Software v/s Services
SNS, SQS, SES, SWF
Pros
• Pay as you go
• Scalability
• Availability
• High performance
Software on EC2
Pros
• Custom features
Cons
• Requires an instance
• SPOF
• Limited to one AZ
• DIY administration
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1. Elastic Capacity
2. Instance Types
3. Reserved Instances
4. Spot Instances
5. Complementary services
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aws.amazon.com/economics
aws.amazon.com/calculator
Next Steps:
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