Amazon EC2 provides you several pricing options that can help you significantly reduce your overall AWS bill, including On-Demand Instances, Spot Instances, Reserved Instances, and the Reserved Instance Marketplace. This session covers high-level architectures and when to use and not to use each of the pricing models for components of those architectures. We walk through several customer examples to illustrate when to use each pricing option. Additionally, we walk through tools that may be useful to determine when to use each pricing model. This session is aimed at technically savvy managers and engineers who need to reduce their cloud spending.

2. Elasticity Scale
CapEx Datacenter
On- (0 to costs as I
moves in the
Premises 1000’s in scale my
to OpEx cloud
minutes) compute
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3. Part I:
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4. Lever I:
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5. Turn off your cloud resources
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6. Tip:
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7. Tip:
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9. www.MyWebSite.com
(dynamic data)
Amazon Route 53
media.MyWebSite.com
(DNS)
(static data)
Elastic Load
Balancing
Amazon
Auto Scaling group : Web Tier CloudFront
Amazon EC2
Auto Scaling group : App Tier
Amazon RDS Amazon S3
Amazon
Availability Zone #1 RDS
Availability Zone #2
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12. Load
Minutes of the Hour
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13. Free Memory
PUT
Free CPU
Free HDD
At 1-min intervals
Amazon CloudWatch
Instance
Custom Metrics
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14. Lever 2:
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15. $0.025
per hour
DNS Elastic Load
Web Servers
Balancing
Availability Zone
$0.065
per hour
(small instance)
EC2 instance
DNS + software LB Web Servers
Availability Zone
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16. Consumers
Producer Amazon SQS queue
$0.01 per
10,000 Requests ($0.000001
per Request)
$0.065
per hour
(small instance) Producer
EC2 instance Consumers
+ software queue
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17. Lever 3:
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18. © 2012 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.

19. On-Demand Reserved Spot
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20. Heavy
Utilization RI
1-year or Medium
3-year terms Utilization RI
Light
Utilization RI
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21. 14
12
On-Demand
10
8
Load
Light Utilization RIs
6
4
2 Heavy Utilization RIs
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hour
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22. $14,000
$12,000
$10,000
Heavy Utilization m2.xlarge running Linux
$8,000
in US-East Region over 3
Cost
$6,000 Medium Utilization Year period
$4,000
$2,000 Light Utilization
$-
On-Demand
Utilization
Utilization Sweet Spot Feature Savings over On-Demand
<10% On-Demand No Upfront Commitment
10% - 39% Light Utilization RI Ideal for Disaster Recovery Up to 56% (3-Year)
40% - 74% Medium Utilization RI Standard Reserved Capacity Up to 66% (3-Year)
>75% Heavy Utilization RI Lowest Total Cost. Ideal for Baseline Servers Up to 71% (3-Year)
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25. Enable you to bid on unused EC2 capacity
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26. Use Case Types of Applications
Batch Processing Generic background processing (scale out computing)
Hadoop Hadoop/MapReduce processing type jobs (e.g., Search, Big
Data, etc.)
Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and
biology
Video and Image Transform videos into specific formats
Processing/Rendering
Testing Provide testing of software, websites, etc.
Web/Data Crawling Analyzing data and processing it
Financial Hedgefund analytics, energy trading, etc.
HPC Utilize HPC servers to do embarrassingly parallel jobs
Cheap Compute Backend servers for Facebook games
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27. CycleCloud runs 57%
a HPC
Cluster with 30000 cores at
Lucky Oyster crawled 3.4B
$1279/Hour at peak (57%
63% web pages, building a 400M
savings)! 50%
entry index in around 14
50%
hours for $100 (>85%
Some say the 30th fastest
savings)!
super computer with 1 GiB 66%
50%
interconnect
50%
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29. Part II:
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30. www.MyWebSite.com
(dynamic data)
Amazon Route 53
media.MyWebSite.com
(DNS)
(static data)
Elastic Load
Balancing
Amazon
Auto Scaling group : Web Tier CloudFront
Amazon EC2
Auto Scaling group :
App Tier Spot
Instances
Amazon
RDS
Amazon RDS Amazon S3
Availability Zone #1
Availability Zone #2
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31. Description Option 1 Option 2 Option 3 Option 4
2 Web servers 2 On- 2 On- 1 On-Demand and 1 On-Demand and
Demand Demand 1 Reserved 1 Reserved Light
Medium Utilization Utilization
2 App servers 2 On- 2 On- 1 On-Demand and 1 On-Demand and
Demand Demand 1 Reserved 1 Reserved Light
Medium Utilization Utilization
2 Database 2 On- 2 Reserved 2 Reserved 2 Reserved Heavy
servers Demand Medium Medium Utilization Utilization
Utilization
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32. Savings Option 1 Option 2 Option 3 Option 4
Calculator Calculator Calculator Calculator
Monthly Cost $702.72 $374.78 $256.20 $238.63
One-Time Cost 1 Year Term - $1280.00 $1600.00 $1698.00
3 Year Term - $2000.00 $2500.00 $2612..60
Total Cost 1 Year Term $8432.64 $5777.36 $4674.40 $4561.56
(x12)
3 Year Term $25297.92 $15492.08 $11723.20 $11203.28
(x36)
Savings 1 Year Term n/a 32% 44% 45%
(Over Option 1) 3 Year Term n/a 39% 54% 54%
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33. Auto Scaling group : Application Tier
Auto Scaling group: Application Tier
Auto Scaling group : Application Tier
Auto Scaling group : Application Tier
Amazon VPC Amazon RDS
Availability Zone #1
On-Premises
Amazon VPC Amazon RDS
Availability Zone #2
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35. Amazon S3
Upload large datasets
or log files directly Amazon S3
Data Input
Source Data
OutputData
Task
Amazon Elastic Node
MapReduce Amazon SimpleDB
Mapper
Code/ Reducer Name Task
Service Metadata
Scripts HiveQL
Node Node
Pig Latin
Cascading Runs multiple
JobFlow Steps Core HiveQL
Node Pig Latin
Query
Core
Node
HDFS
BI Apps
Amazon Elastic MapReduce JDBC/ODBC
Hadoop Cluster
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36. Scenario #1
#1: Cost without Spot
Job Flow 4 instances *14 hrs * $0.45 = $25.20
Duration:
14 Hours #2: Cost with Spot
4 instances *7 hrs * $0.45 = $12.60 +
5 instances * 7 hrs * $0.225 = $7.875
Scenario #2 Total = $20.475
Job Flow
Time Savings: 50%
Cost Savings: ~19%
Duration:
7 Hours
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37. Auto Scaling group: Amazon EC2 On-Demand Instances
Application
that
generates
work
Amazon SQS Queue
Auto Scaling group: Amazon EC2 Spot Instances
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38. Free Offering Premium Offering
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39. Amazon S3 Amazon S3
Amazon
Elastic Compute Cloud
Input Output
Bucket Bucket
Amazon EC2
Amazon SQS Amazon SQS
Job Completed Reports
Job Website
Input Queue Output
Website Queue Amazon EC2
(Job Manager)
On-demand + Spot
Amazon
Amazon SimpleDB
CloudWatch
Amazon SimpleDB
Amazon EC2
Intranet
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40. Traditional Methods On-Premise
Sold at Sold at
Unused
90% Unused
64%
Discount! Discount!
Sold at Sold at
Unused
86% 79%
Unused
Discount! Discount!
Availability Zone Availability Zone
Region
Amazon EC2 running Spot
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41. Traditional Methods On-Premise
Unused Unused
Unused Unused
Availability Zone Availability Zone
Region
Amazon EC2 running Spot
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42. Spotbet weis get
I Price can
lower, socompute
this let’s
cheaper later, so
scale out… Unused
scale down…
Unused
Unused
Availability Zone
Region
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43. Unused
Unused
Unused
Availability Zone
Region
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45. We are sincerely eager to
hear your feedback on this
presentation and on re:Invent.
Please fill out an evaluation
form when you have a
chance.
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