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AWS Webinar Series - Cost Optimisation Levers, Tools, and Strategies

Our Cost Optimisation Best Practices webinar helps you learn how AWS can help you realise value and save costs using the many tools and best practice methods available to you.

This webinar consisted of information to assist with establishing cost visibility, demonstrating optimisation levers and tools, providing strategic optimisation mechanisms, and showing you different avenues of support. Joining us at this webinar was veteran of AWS Cost and Security specialist, Paul Wakeford, who represented Fairfax Media and shared their story.

This was part of the AWS Webinar Series in Australia & New Zealand, presented in September 2018 by Jon Janes.

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AWS Webinar Series - Cost Optimisation Levers, Tools, and Strategies

  1. 1. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Jon Janes – Account Manager AWS Cost Optimisation Levers, Tools, and Strategies Maximising business value through cost savings September 2018
  2. 2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Today’s Speakers Jon Janes Account Manager Sydney, Australia jonjanes@amazon.co m Paul Wakeford Cloud Design, Security and Cos Architect
  3. 3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Contents Technical Optimisation levers and tools How AWS Helps You Realise Value and Save Cost Voice of the Customer Establishing Cost Visibility Strategic Optimisation Mechanisms Survey and Q&A
  4. 4. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark How AWS Helps You Realise Value and Save Cost
  5. 5. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Cloud is the new normal with fewer organisations asking “why” and more asking “how and how fast?” Industrial Revolution Cloud Revolution Shift to on-demand computing Shift to on-demand power
  6. 6. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Data TransferReal Estate Facilities Power On AWS, you simply pay for fewer things and unlock access to Serverless technology On-premises AWS highly optimised ~90% Less Cost Networking SAN Servers Storage Hypervisor Operating System Application AWS + basic optimisation ~20-40% Less Cost EBS (Block Storage) S3 (Object Storage) EC2 (Servers) Application Serverless Application
  7. 7. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark AWS lowers prices over time 66 Price Reductions!
  8. 8. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark What is it? Launch of new products 75% faster (Unilever) 60% reduced downtime (Trainline) 50%+ reduction in TCO (GE) Over 500 hours per year of server configuration time saved (Sage) Examples Infrastructure cost savings / and cost avoidance Efficiency improvement by function on a task by task basis. Improved SLAs & reducing unplanned outage. Deploy new features / applications faster and reduce errors. Typical Focus Further Compelling Cloud Benefits Cost Savings (TCO) Staff Productivity Business Agility Operational Resilience The Economic Benefits of Cloud extends well beyond cost savings
  9. 9. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Establishing Cost Visibility
  10. 10. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Speed, scale, complexity, and value at stake drives the need for visibility and control
  11. 11. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Pick the Cost Tool that provides the visibility you need Simple, Static, small environment Complex, dynamic, large environment 1. Monthly AWS Invoice 2. AWS Billing console 3. AWS Cost Explorer and AWS Budgets 4. 3rd party tools AWS Billing File Analysis, and DIY dashboards
  12. 12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Optimisation levers and tools
  13. 13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark The Technical Pillars of Optimisation Right Size & Decommission unused Resources Use Reserved Instances Increase Elasticity Match Storage to Need Design for Cost
  14. 14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Pillar 1: Right Sizing your Resources Right Sizing is about • Selecting the cheapest instance (size and family) while meeting performance needs • Most commonly based on CPU, RAM, storage, and network needs • Doing this before/during migration via discovery tools reduces overall effort
  15. 15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark 87% Saving Right Sizing example m4.4xlarge $1.72 per hr m4.large $0.215 per hr 2. Check (CPU, RAM, network, disc) 1. Migrate/provision & Run 3. Right Size 5. Save!4. Review Performance
  16. 16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Decommission unused resources such as • Unattached Elastic IPs • Unattached EBS • Idle / unattached load balancers • Incomplete S3 transfers • Idle EC2, RDS, Redshift instances • Clearing old snapshots
  17. 17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark • AWS CloudWatch (manual) • AWS Trusted Advisor • AWS Answers - Cost Optimisation: EC2 Right Sizing https://aws.amazon.com/answers/account-management/cost- optimization-ec2-right-sizing/ • 3rd party paid tools available from the AWS Marketplace, incl. but no limited to: Tools for Right Sizing and finding unused resources
  18. 18. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Pillar 2: Increase Elasticity AWS allows you to fit today’s cost to today’s demand. “Hug your workloads, not your servers!”
  19. 19. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark 1 x 24 hours m5.2xlarge @ $0.48/hr. on Linux in Sydney = $8,294.40 / month Autoscaling 51 m5.large instances @ $0.12/hr. on Linux in Sydney = $4,406.40 / month AWS Auto Scaling helps you match resources to demand Autoscaling 51 m5.large instances across 24 hours instead of running a single m5.2xlarge saves 47%
  20. 20. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Reduce non-prod spend by 70% or more via scheduling Fun fact: RDS can be turned off too Maximise savings via automatically turning off resources at night with manual turn-on in the morning
  21. 21. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark • Guide to Auto Scaling https://aws.amazon.com/documentation/autoscaling/ • AWS Instance Scheduler https://aws.amazon.com/answers/infrastructure- management/instance-scheduler/ • 3rd party paid tools (including but not limited to) Tools for Increasing Elasticity
  22. 22. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark RI coverage Total use Key Reserved Instances for one financial services customer resulted in 39% decrease in unit cost Reserved Instance purchase Pillar 3: Use Reserved Instances
  23. 23. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark What are Reserved Instances (RIs)? • RIs are a commitment in exchange for discount • They behave like discount coupon booklets • Each hourly RI coupon in the booklet tries to match to a running instance, if matched it provides its full discount, if not it expires • RIs are a financial construct/layer on top of your AWS infrastructure RI coupon booklet
  24. 24. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark EC2 RI matching properties • Instance type: m4.xlarge o or Instance Family: m4. • 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, host
  25. 25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark RIs are most often used for always-on instances (can still be used to save for non-always on) Commitment level 1 year (approx. payback 7-10 months) 3 year (approx. payback 10-20 months) AWS services offering RIs Amazon EC2 & EC2 Hosts Amazon RDS Amazon Redshift Amazon ElastiCache Amazon Elasticsearch (new) Amazon DynamoDB* Amazon CloudFront* *Discount for commitment, but not an RI
  26. 26. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark EC2 RI types cater to a range of customer needs 1 year 3 years Standard Regional (e.g. ap-southeast-2) (with Linux/Unix Size Flex) Regional Zonal (e.g. ap-southeast-2a) (with capacity reservation) Zonal Convertible Regional Regional Zonal Zonal Note: You can easily switch between Regional and Zonal at no cost Items shaded in Orange boxes affect pricing
  27. 27. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Which EC2 RIs give greater discount? Greater discountLess discount All upfrontPartial upfrontNo-upfrontPayment option 3 year1 yearDuration Linux/UnixOthers (typically)Operating System Newer genOlder generations (typically)Instance type StandardConvertibleClass
  28. 28. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Convertible RIs offer great flexibility Convertible RIs allow changes in: Instance Families (e.g. m4. -> c5.) Instance Sizes (e.g. .large -> .xlarge) Operating System (e.g. Linux -> Windows) Tenancy (e.g. shared -> dedicated) You can: Take advantage of newer instance types (e.g. m5) Adapt your RIs as business needs change Drastically reduce the likelihood of unused RIs Take advantage of price reductions (maintain commit $, get more instances)
  29. 29. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark The commitment for Convertible RIs includes: 1yr or 3 yrs. (not refreshed on conversion) An AWS Region EC2 on AWS Spend (convert to equal or greater $)
  30. 30. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Examples of conversion m4.xlarge $20 upfront remaining m4.large $10 upfront m4.large $10 upfront No True-up required m4.xlarge $20 upfront remaining m4.2xlarge $40 upfront True-up $20 1. Sizing to smaller instance (same family and OS) 2. Sizing to larger instance (same family and OS)
  31. 31. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Examples of conversion m4.xlarge (Linux) $20 upfront remaining r4.xlarge (Windows) $25 upfront True-up $5 3. Sizing to more expensive instance type r4.xlarge $25 upfront remaining t2.large $9 upfront True-up $2 4. Sizing to cheaper instance type t2.large $9 upfront t2.large $9 upfront
  32. 32. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Instance Size Flexibility reduces the need to match RI size to running instance size If your RI is: • Regional • Linux/UNIX (incl. Amazon Linux, CentOS, Ubuntu), and • Shared tenancy Then the RI will apply to all sizes of instances in the same family (e.g. m4 RIs apply to all other m4’s) in a given region. m4 RIs cannot apply to m3’s, as they are a different family. E.g. 1 m4.xlarge RI (Syd region, shared, Linux/Unix) applies to: 2 m4.large instances (Syd region, shared, Linux/Unix) or ½ a m4.2xlarge instance (Syd region, shared, Linux/Unix) RDS size flexibility applies to MySQL, MariaDB, PostgreSQL, and Amazon Aurora database engines, as well as the “bring your own license” (BYOL) edition of the Oracle DB
  33. 33. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark See RI Coverage via Cost Explorer RI Coverage shows the % of total use that is enjoying a discounted rate
  34. 34. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark See RI Recommendations and Estimated Savings via Cost Explorer accessed here: 1 2
  35. 35. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark This report can also be used to understand what your unused Convertible RIs could be changed into See RI Recommendations and Estimated Savings via Cost Explorer
  36. 36. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark See RI savings and utilisation % via Cost Explorer
  37. 37. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Receive email or SNS notification of low RI Utilisation, RI Coverage, Spend, and Usage via AWS Budgets
  38. 38. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Pillar 4: Reduce Elastic Block Store (EBS) spend by picking the class that fits your need https://aws.amazon.com/ebs/details/ Provisioned IOPS SDD (io1) General Purpose SDD (gp2) Throughput Optimized HDD (st1) Cold HDD (sc1) Default Approx. 75% cheaper than gp2 Approx. 50% cheaper than gp2 Size matters for EBS because you pick the amount of storage provisioned, whereas S3 and EFS scale dynamically
  39. 39. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Storage Classes on Simple Storage Service (S3) Active data Archive dataInfrequently accessed data Standard (default) Hot Standard - Infrequent Access Warm Amazon Glacier Cold
  40. 40. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Pillar 5: Designing for Cost Containerisation (staff productivity and compute utilisation) Amazon EC2 Spot AWS CloudFormation (developer time saving) Serverless & AWS Lambda ELB to Application Load Balancer Deliver content with AWS CloudFront and Caching (lower compute and data transfer) Open source platforms & databases (reduced licensing cost) Low cost security monitoring via AWS GuardDuty Running resources in a cheaper region Static Web Hosting on S3 and using S3 Select
  41. 41. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Architectural Optimisation Quick-win Optimisation Summary of the Technical Levers of Optimisation Right Size & Decommission unused Resources Use Reserved Instances Increase Elasticity Match Storage to Need Design for Cost
  42. 42. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Optimisation Mechanisms and Strategies
  43. 43. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Optimisation Mechanisms and Strategies will help make other optimisation activity easier to achieve Optimisation Mechanisms/ Strategies Establish Cost Visibility Architectural OptimisationQuick-win Optimisation
  44. 44. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Training and on-boarding that considers cost drives cost aware behaviour Resources to get started: 1. AWS Cost Management https://aws.amazon.com/aws-cost-management/ 2. AWS Well Architected - Cost Optimisation whitepaper https://d1.awsstatic.com/whitepapers/architecture/AWS-Cost-Optimization- Pillar.pdf 3. 100 Level –AWS re:Invent 2015 | (ISM402) Cost Optimization at Scale https://www.youtube.com/watch?v=i1Uq8_gt2p4 4. 200 Level – AWS re:Invent 2016: Cost Optimizing Your Architecture: Practical Design Steps For Savings (ARC310) https://www.youtube.com/watch?v=qYHR_V1lvNU
  45. 45. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Tagging resources enhances the value of your cost tools ??? App BU Owner https://docs.aws.amazon.com/awsconsolehelpdocs/latest/gsg/tag-editor.html
  46. 46. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark AWS Enterprise Support, AWS Professional Services, and AWS Partners can guide your Cost Management and Optimisation journey and initiatives, contact your AWS Account Manager for more info. AWS Enterprise Support https://aws.amazon.com/premiumsupport/enterprise-support/ AWS Professional Services https://aws.amazon.com/professional-services/ AWS Partner Network https://aws.amazon.com/partners/
  47. 47. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Summary of how to maximise business value through cost savings Apply optimisation levers and tools AWS helps you realise value and save cost Utilise avenues for support if needed Establish cost visibility on AWS, starting with AWS Cost Explorer Apply optimisation Mechanisms/Strategies
  48. 48. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Voice of the Customer Paul Wakeford Cloud Design, Security and Cost Architect
  49. 49. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Amazon Confidential and Trademark Thank you!
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Our Cost Optimisation Best Practices webinar helps you learn how AWS can help you realise value and save costs using the many tools and best practice methods available to you. This webinar consisted of information to assist with establishing cost visibility, demonstrating optimisation levers and tools, providing strategic optimisation mechanisms, and showing you different avenues of support. Joining us at this webinar was veteran of AWS Cost and Security specialist, Paul Wakeford, who represented Fairfax Media and shared their story. This was part of the AWS Webinar Series in Australia & New Zealand, presented in September 2018 by Jon Janes.

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