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AWS Cost Optimisation Best Practices Webinar

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Learn the best practices and considerations for cost optimising your AWS environment. We will cover best practices for right sizing, scheduling instances to reduce costs, and finally, how you can save up to 75% on OnDemand costs using reserved instances.

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AWS Cost Optimisation Best Practices Webinar

  1. 1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. September 2017 AWS Cost Optimisation
  2. 2. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Ask the AWS Experts Our Experts are online to answer any questions you have during the presentation. Ask your questions via the Questions Box on the GoToWebinar Control Panel
  3. 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Peter Shi Commercial Architect Alvin Ong Director Product & Biz Development Today’s Speakers
  4. 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What is the savings potential on AWS?
  5. 5. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. You can significantly reduce your Total Cost of Ownership on AWS compared to on premise infrastructure 52% saving in total cost of ownership across the fleet (GE Oil & Gas) through rightsizing, automation, autoscaling, and storage optimisation Jim Fowler, CIO, General Electric … realized cost savings of 25%, more than $40,000 per year, over the cost of leasing a data center … “We’ll never have to refresh the hardware. That constitutes significant savings for Dow Jones,” Stephen Orban, CTO/CIO, Dow Jones … able to seamlessly scale our infrastructure, better serve our customers across the globe, and reduce our fixed costs by 75% and operational costs by 83%. Valentino Volonghi, CTO, Adroll
  6. 6. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How can I realise these savings? (technical perspective)
  7. 7. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. The Five Pillars of Cost Optimization Rightsizing Pick the Right Pricing Model Increase Elasticity Mechanisms for Optimisation Match usage to storage class
  8. 8. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 87% Saving Pillar 1: Rightsizing m4.4xlarge $1.72 per hr m4.large $0.215 per hr 2. Check (CPU, RAM, network, disc) 1. Run 3. Resize 5. Save!4. Review Performance
  9. 9. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Rightsizing tools Cost Optimization: EC2 Right Sizing https://aws.amazon.com/answers/account- management/cost-optimization-ec2-right- sizing/ AWS trusted advisor Comes with Business and Enterprise support
  10. 10. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pillar 2: Increase Elasticity “Hug your workloads, not your servers”
  11. 11. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Best practice tip for Elasticity Non-production instances are: 1. Automatically turned off at night with manual turn-on in the morning J 2. Have scheduled on-off J 3. Excluded from turn-off by exception due to workload needs Fun fact: RDS can be turned off too
  12. 12. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Elasticity Tools EC2 Instance Scheduler Semi managed option https://aws.amazon.com/answers/infrastructur e-management/ec2-scheduler/ Lambda Start-Stop guide Cheap DIY option https://aws.amazon.com/premiumsupport/kno wledge-center/start-stop-lambda-cloudwatch/ GorillaStack Fully managed 3rd party solution https://aws.amazon.com/documentation/ autoscaling/ Guide to autoscaling
  13. 13. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pillar 3: Leveraging the Right Pricing Model Reserved Instances On-Demand
  14. 14. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. What are Reserved Instances (RIs)? RIs are like discount coupon booklets • Each RI gives one coupon per hour per instance being reserved over the term of the RI (e.g. a 1 year RI provides 24*365 coupons) • The coupon provides a discount in exchange for commitment • Each individual coupon expires at the end of each hour • RIs are a financial construct/layer on top of your AWS infrastructure RI coupon
  15. 15. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RI coverage Total use Key Reserved Instances for one financial services customer resulted in 39% decrease in unit cost Reserved Instance purchase
  16. 16. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RIs are best used for Always-On instances (can still be used to save for non-always on) Commitment level 1 year (approx. payback 7-8 months) 3 year (approx. payback 12-18 months) AWS services offering RIs Amazon EC2 & EC2 Hosts Amazon RDS Amazon Redshift Amazon ElastiCache Amazon DynamoDB (not quite RI) Amazon CloudFront (not quite RI)
  17. 17. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. RIs matching properties • Instance type: m4.xlarge • Operating System: Linux/UNIX, Windows, Windows with SQL Server Standard, etc. • Region: ap-southeast-2 (Sydney) o or AZ: ap-southeast-2a • Tenancy: Shared, dedicated
  18. 18. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Which RIs give greater discount? Greater discountLess discount All upfrontPartial upfrontNo-upfrontPayment option 3 year1 yearDuration LinuxOthers (typically)Operating System Newer generationsOlder generationsInstance type StandardConvertibleClass
  19. 19. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Convertible Reserved Instances With a Convertible Reserved Instance, you can modify your existing reservation across: Instance families Instance sizes Operating Systems Tenancy
  20. 20. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Convertible Reserved Instances You are committing to: 3 years (no change on conversion) Region EC2 on AWS Spend (convert to equal or greater $)
  21. 21. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Understanding Instance Size Flexibility • Effective March 1, your existing Regional RIs are even more flexible! • All Regional Linux/UNIX RIs with shared tenancy now apply to all sizes of instances within an instance family and AWS region. • E.g. 1 m4.xlarge RI can apply to: 2 m4.large instances or ½ a m4.2xlarge instance
  22. 22. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Use Cost Explorer to track your RI utilization (higher utilization = greater savings realization)
  23. 23. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Use Cost Explorer to track your RI coverage
  24. 24. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How do I purchase Reserved Instances? 1. Ask your account manager for a reserved instance recommendation report 2. Decide which reserved instances you’d like to purchase 3. Purchase your reserved instances from the console & start saving If you have >100 EC2 instances, your account manager can help
  25. 25. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Pillar 4: Leveraging the Right Storage Class Elastic Block Store Simple Storage Service
  26. 26. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Use appropriately sized EBS, you can modify if needed with zero downtime* * Decreasing volume size is possible, but requires a different process Some older instances & volumes may not support zero downtime modification
  27. 27. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. S3 Analytics provides additional functionality over standard S3 lifecycle policies http://bit.ly/s3analytics
  28. 28. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Summary: The Five Pillars of Cost Optimization Right-Sizing Your Instances Pick the Right Pricing Model Increase Elasticity Mechanisms for Optimisation Match usage to storage class
  29. 29. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. How can I realise these savings at scale? (strategic perspective)
  30. 30. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Mechanisms for Optimisation
  31. 31. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Assigned optimisation responsibility or Establish a Cloud Center of Excellence • Optimisation strategy (incl. reserved instances) • Supporting optimisation activities • Optimisation reporting
  32. 32. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Organisational Metrics of Optimisation Dimension Target Score (org level or BU level) Savings impact p.m. (justifies investment) Enterprise Programs 100% 100% $100k Reserved Instance Coverage 70% 65% $52k Reserved Instance Utilisation 95% 97% ($2k) EC2 Spot 5% 2% $2k Cloud native services (e.g. Lambda) 5% 1% $9k Tagging and cost allocation 90% 85% N/A Rightsizing % 95% 99% $20k EC2, RDS Elasticity 50% 55% $250k EBS Storage % of EC2 Instances 90% 85% $15k S3-IA % of S3 20% 25% $6k Targets met 5 of 10 $452k (50% of bill)
  33. 33. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Developer targeted dashboards Time (months) % Linux/Unix instances
  34. 34. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Enabling & encouraging teams to architect for cost
  35. 35. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Assign ownership through tagging Tagging -> Allocation -> Chargeback -> Ownership
  36. 36. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. AWS Tooling Demo
  37. 37. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. EdgeProp.my’s Story
  38. 38. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. EdgeProp.my is a property portal in Malaysia with proprietary news, listings and analytic tools • Founded in 2015 • Currently serving >300,000 users per month • Goal is to simplify property search process by empowering its users with proprietary tools and data to make better informed decisions
  39. 39. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Trade-off: cost vs flexibility; Solution: RI • Trade-off decision – cost vs flexibility • Started using RI in August 2017 mainly for production server (which accounts for 80% total server cost) • Achieved cost reduction of ~30% while maintaining reasonable amount of flexibility Cost Flexibility
  40. 40. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Any final words of wisdom for customers on cost optimisation? As new products come out it’s better to try it sooner Use a scheduler to shut down and start Dev and UAT
  41. 41. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. 10 minute open Q&A
  42. 42. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Follow Us on Social Media @AmazonWebServices @AWSCloud @AWSCloudSEAsia
  43. 43. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Feedback A pop up feedback form will appear after you exit the Webinar Console. Please help us to complete in order for us to improve our program.
  44. 44. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.© 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Thank You You will receive today’s webinar recording and presentation deck, look out for it in your inbox.

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