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WEB SUMMIT 
DUBLIN 2014 
#AWS #WEBSUMMIT 
Optimising TCO 
with AWS 
Ian Massingham — Technical Evangelist 
ianmas@amazon.com 
@IanMmmm
How to make your funding go further
LOWER COSTS WITH THE AWS CLOUD 
1 2 3 4 
Replace up-front 
capital expense with 
low variable cost 
Save more money as 
you grow bigger 
Economies of scale 
allow AWS to continually 
lower costs 
Pricing model choice 
to support variable & 
stable workloads
LOWER COSTS THAN ON-PREMISES 
On-Premises 
Traditional 
Data Centre 
On-Premises 
Virtualised 
Data Centre 
AWS 
CAPEX 
CAPEX 
OPEX 
OPEX 
OPEX 
Cost savings from running 
internal IT more efficiently 
Cost savings from moving 
to a cloud provider 
AWS Scale 
• Multiple new data centres built each year 
• Volume purchasing, highly automated 
supply chain optimisation 
Utilisation fundamentally higher in the AWS 
Cloud 
• Aggregating non-correlated workloads, 
scale, spot market 
Amazon specific hardware designs 
• OEM acquisition of custom servers and 
networking equipment 
• Direct purchasing of memory, disk & CPU 
• AWS controlled hypervisor and network 
protocol layers
AWS PRICING PHILOSOPHY 
More AWS 
Usage 
More 
Customers 
More 
Infrastructure 
Lower 
Infrastructure 
Costs 
Reduced 
Prices 
Economies of 
Scale 
Ecosystem 
Global Footprint 
New Features 
New Services 
Infrastructure 
Innovation 
45 
PRICE 
REDUCTIONS 
We pass the savings along to our 
customers in the form of low 
prices and continuous reductions
Flipboard Example: Handling objection AWS gets expensive as you grow big…
COST OPTIMISATION TIPS & TRICKS
1. CHOSE THE RIGHT INSTANCE TYPES 
START TUNE DEPLOY & SCALE 
Choose an instance 
that best meets your basic 
requirements 
Start with memory & then 
choose closest virtual cores 
Assess peak IOPS storage 
requirements 
Run multiple instances 
in multiple Availability Zones 
Change instance size up 
or down based upon 
monitoring 
Use CloudWatch & 
Trusted Advisor to assess
2. USE AUTO SCALING 
LAUNCH 
CONFIGURATION 
Describes what Auto Scaling will 
create when adding Instances 
Only one active launch 
configuration at a time 
as-­‐create-­‐launch-­‐config 
-­‐-­‐image-­‐id 
ami-­‐54cf5c3d 
-­‐-­‐instance-­‐type 
m1.small 
-­‐-­‐key 
mykey 
-­‐-­‐group 
webservers 
-­‐-­‐launch-­‐config 
101-­‐launch-­‐config 
AUTO SCALING 
GROUP 
Auto Scaling managed grouping 
of EC2 instances 
Automatically scale the number 
of instances by policy 
as-­‐create-­‐auto-­‐scaling-­‐group 
101-­‐as-­‐group 
-­‐-­‐availability-­‐zones 
us-­‐east-­‐1a 
us-­‐east-­‐1b 
-­‐-­‐launch-­‐configuration 
101-­‐launch-­‐config 
-­‐-­‐load-­‐balancers 
myELB 
-­‐-­‐max-­‐size 
5 
-­‐-­‐min-­‐size 
1 
LAUNCH 
CONFIGURATION 
Parameters for performing an Auto 
Scaling action 
Scale Up/Down and by how much 
as-­‐put-­‐scaling-­‐policy 
101ScaleUpPolicy 
-­‐-­‐auto-­‐scaling-­‐group 
101-­‐as-­‐group 
-­‐-­‐adjustment=1 
-­‐-­‐type 
ChangeInCapacity 
-­‐-­‐cooldown 
300
UTILISATION & AUTO SCALING GRANULARITY 
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
UTILISATION & AUTO SCALING GRANULARITY 
41 Instance Hours 
m3.large @ $0.154/hr 
= $6.314/day 
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
UTILISATION & AUTO SCALING GRANULARITY 
70 Instance Hours 
t2.small @ $0.028/hr 
= $1.96/day 
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 
69% SAVING
3. TURN OFF UNUSED INSTANCES 
Development/test instances 
Simple instance stop/start 
Tear down & build rapidly 
Treat resources as disposable 
Deployment & Management 
Containers 
Dev/ops Tools 
Resource 
Templates 
Usage 
Tracking 
Monitoring 
and Logs
4. USE RESERVED INSTANCES 
Light Utilisation RI 
Medium Utilisation RI 
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 
8% 
13% 
38% 
58% 
75% 
100% 
On Demand Instance 
Heavy Utilisation RI
AWS SERVICES OFFERING RESERVATIONS 
Amazon EC2 
up to 65% savings 
Amazon RDS 
up to 76% savings 
Amazon DynamoDB 
up to 76% savings 
Amazon Redshift 
up to 73% savings 
Amazon ElastiCache 
up to 70% savings
5. USE SPOT INSTANCES 
Pricing 
Up to 92% discount 
Elastic 
Capacity not otherwise 
available 
Tradeoff 
Potential for interruption
USING SPOT INSTANCES FOR HPC WORKLOADS 
Building a Top500 HPC Cluster on AWS 
Case Study 
70 
53 
35 
18 
0 
Cost Comparison 
$68M 
$33K 
On-Premises AWS 
1.21 PFLOPS, 16,788 EC2 Instances in 8 Regions, 264 years of computing in 18 hours
6. MAKE USE OF APPROPRIATE STORAGE CLASSES 
On-premises Data Center 
AWS Cloud 
Gateway Appliance/ 
AWS Storage Gateway 
Amazon 
Glacier 
Amazon 
S3 
Block File 
Archive Backup Disaster 
Recovery 
Amazon 
EBS 
Amazon S3 Reduced Redundancy 
• 99.99% durability vs. 99.999999999% 
• Up to 20% savings 
• Great for everything that is easy to 
reproduce 
Amazon Glacier 
• Same durability as S3 
• 3 to 5 hours restore time 
• Up to 67% savings 
• Great for archiving, long-term 
backups and cold or old data
7. OFFLOAD FROM YOUR ARCHITECTURE 
The more you can offload, the less infrastructure you need to maintain, scale and pay for 
• Offload traffic to Amazon CloudFront and S3 
• Introduce Caching 
No 
CDN 
Response Time 
Instance Load 
CDN for 
Static 
Content 
Response Time 
Instance 
Load 
CDN for 
Static & 
Dynamic 
Content 
Response Time 
Instance 
Load
8. USE SERVICES, DON’T REINVENT THE WHEEL 
Foundation 
Services 
Infrastructure 
Collaboration and Sharing 
Storage 
(Object, Block and Archive) Security & Networking 
Regions Availability Zones 
Access Control 
Platform 
Services 
Databases 
Relational 
NoSQL 
Caching 
Analytics 
Hadoop 
Real-time 
Data 
warehouse 
App Services 
Queuing 
Orchestration 
App streaming 
Transcoding 
Email 
Search 
Deployment & Management 
Containers 
Dev/ops Tools 
Resource 
Templates 
Mobile Services 
Identity 
Sync 
Mobile 
Analytics 
Notifications 
Enterprise 
Applications Virtual Desktops 
Data 
Workflows 
Usage Tracking 
Monitoring 
and Logs 
Compute 
(VMs, Auto-scaling and Load Balancing) 
CDN and Points of Presence
AVOID UNDIFFERENTIATED HEAVY LIFTING 
Amazon Relational 
Database Service (RDS) 
Elastic Load 
Balancing 
Amazon Simple 
Queue Service (SQS) 
Amazon ElastiCache Amazon Elastic 
MapReduce 
Amazon Simple 
Notification Service (SNS)
9. USE CONSOLIDATED BILLING 
• Receive a single bill for all charges incurred across all linked accounts 
• Share RI discounts 
• Combine tiering benefits
10. TAKE ADVANTAGE OF AWS TOOLS 
AWS Trusted Advisor AWS EC2 Usage Reports
WANT TO LEARN MORE? 
COME TO OUR ARCHITECTURE 
ASK US ANYTHING 
TODAY AT 16:00
WEB SUMMIT 
DUBLIN 2014 
#AWS #WEBSUMMIT 
Ian Massingham — Technical Evangelist 
@IanMmmm 
AWS Global News and Service Launches @AWScloud 
AWS UK & Ireland News, Events & Webinars @AWS_UKI

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Optimising TCO with AWS at Websummit Dublin

  • 1. WEB SUMMIT DUBLIN 2014 #AWS #WEBSUMMIT Optimising TCO with AWS Ian Massingham — Technical Evangelist ianmas@amazon.com @IanMmmm
  • 2. How to make your funding go further
  • 3. LOWER COSTS WITH THE AWS CLOUD 1 2 3 4 Replace up-front capital expense with low variable cost Save more money as you grow bigger Economies of scale allow AWS to continually lower costs Pricing model choice to support variable & stable workloads
  • 4. LOWER COSTS THAN ON-PREMISES On-Premises Traditional Data Centre On-Premises Virtualised Data Centre AWS CAPEX CAPEX OPEX OPEX OPEX Cost savings from running internal IT more efficiently Cost savings from moving to a cloud provider AWS Scale • Multiple new data centres built each year • Volume purchasing, highly automated supply chain optimisation Utilisation fundamentally higher in the AWS Cloud • Aggregating non-correlated workloads, scale, spot market Amazon specific hardware designs • OEM acquisition of custom servers and networking equipment • Direct purchasing of memory, disk & CPU • AWS controlled hypervisor and network protocol layers
  • 5. AWS PRICING PHILOSOPHY More AWS Usage More Customers More Infrastructure Lower Infrastructure Costs Reduced Prices Economies of Scale Ecosystem Global Footprint New Features New Services Infrastructure Innovation 45 PRICE REDUCTIONS We pass the savings along to our customers in the form of low prices and continuous reductions
  • 6. Flipboard Example: Handling objection AWS gets expensive as you grow big…
  • 8. 1. CHOSE THE RIGHT INSTANCE TYPES START TUNE DEPLOY & SCALE Choose an instance that best meets your basic requirements Start with memory & then choose closest virtual cores Assess peak IOPS storage requirements Run multiple instances in multiple Availability Zones Change instance size up or down based upon monitoring Use CloudWatch & Trusted Advisor to assess
  • 9. 2. USE AUTO SCALING LAUNCH CONFIGURATION Describes what Auto Scaling will create when adding Instances Only one active launch configuration at a time as-­‐create-­‐launch-­‐config -­‐-­‐image-­‐id ami-­‐54cf5c3d -­‐-­‐instance-­‐type m1.small -­‐-­‐key mykey -­‐-­‐group webservers -­‐-­‐launch-­‐config 101-­‐launch-­‐config AUTO SCALING GROUP Auto Scaling managed grouping of EC2 instances Automatically scale the number of instances by policy as-­‐create-­‐auto-­‐scaling-­‐group 101-­‐as-­‐group -­‐-­‐availability-­‐zones us-­‐east-­‐1a us-­‐east-­‐1b -­‐-­‐launch-­‐configuration 101-­‐launch-­‐config -­‐-­‐load-­‐balancers myELB -­‐-­‐max-­‐size 5 -­‐-­‐min-­‐size 1 LAUNCH CONFIGURATION Parameters for performing an Auto Scaling action Scale Up/Down and by how much as-­‐put-­‐scaling-­‐policy 101ScaleUpPolicy -­‐-­‐auto-­‐scaling-­‐group 101-­‐as-­‐group -­‐-­‐adjustment=1 -­‐-­‐type ChangeInCapacity -­‐-­‐cooldown 300
  • 10. UTILISATION & AUTO SCALING GRANULARITY 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
  • 11. UTILISATION & AUTO SCALING GRANULARITY 41 Instance Hours m3.large @ $0.154/hr = $6.314/day 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
  • 12. UTILISATION & AUTO SCALING GRANULARITY 70 Instance Hours t2.small @ $0.028/hr = $1.96/day 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 69% SAVING
  • 13. 3. TURN OFF UNUSED INSTANCES Development/test instances Simple instance stop/start Tear down & build rapidly Treat resources as disposable Deployment & Management Containers Dev/ops Tools Resource Templates Usage Tracking Monitoring and Logs
  • 14. 4. USE RESERVED INSTANCES Light Utilisation RI Medium Utilisation RI 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 8% 13% 38% 58% 75% 100% On Demand Instance Heavy Utilisation RI
  • 15. AWS SERVICES OFFERING RESERVATIONS Amazon EC2 up to 65% savings Amazon RDS up to 76% savings Amazon DynamoDB up to 76% savings Amazon Redshift up to 73% savings Amazon ElastiCache up to 70% savings
  • 16. 5. USE SPOT INSTANCES Pricing Up to 92% discount Elastic Capacity not otherwise available Tradeoff Potential for interruption
  • 17. USING SPOT INSTANCES FOR HPC WORKLOADS Building a Top500 HPC Cluster on AWS Case Study 70 53 35 18 0 Cost Comparison $68M $33K On-Premises AWS 1.21 PFLOPS, 16,788 EC2 Instances in 8 Regions, 264 years of computing in 18 hours
  • 18. 6. MAKE USE OF APPROPRIATE STORAGE CLASSES On-premises Data Center AWS Cloud Gateway Appliance/ AWS Storage Gateway Amazon Glacier Amazon S3 Block File Archive Backup Disaster Recovery Amazon EBS Amazon S3 Reduced Redundancy • 99.99% durability vs. 99.999999999% • Up to 20% savings • Great for everything that is easy to reproduce Amazon Glacier • Same durability as S3 • 3 to 5 hours restore time • Up to 67% savings • Great for archiving, long-term backups and cold or old data
  • 19. 7. OFFLOAD FROM YOUR ARCHITECTURE The more you can offload, the less infrastructure you need to maintain, scale and pay for • Offload traffic to Amazon CloudFront and S3 • Introduce Caching No CDN Response Time Instance Load CDN for Static Content Response Time Instance Load CDN for Static & Dynamic Content Response Time Instance Load
  • 20. 8. USE SERVICES, DON’T REINVENT THE WHEEL Foundation Services Infrastructure Collaboration and Sharing Storage (Object, Block and Archive) Security & Networking Regions Availability Zones Access Control Platform Services Databases Relational NoSQL Caching Analytics Hadoop Real-time Data warehouse App Services Queuing Orchestration App streaming Transcoding Email Search Deployment & Management Containers Dev/ops Tools Resource Templates Mobile Services Identity Sync Mobile Analytics Notifications Enterprise Applications Virtual Desktops Data Workflows Usage Tracking Monitoring and Logs Compute (VMs, Auto-scaling and Load Balancing) CDN and Points of Presence
  • 21. AVOID UNDIFFERENTIATED HEAVY LIFTING Amazon Relational Database Service (RDS) Elastic Load Balancing Amazon Simple Queue Service (SQS) Amazon ElastiCache Amazon Elastic MapReduce Amazon Simple Notification Service (SNS)
  • 22. 9. USE CONSOLIDATED BILLING • Receive a single bill for all charges incurred across all linked accounts • Share RI discounts • Combine tiering benefits
  • 23. 10. TAKE ADVANTAGE OF AWS TOOLS AWS Trusted Advisor AWS EC2 Usage Reports
  • 24. WANT TO LEARN MORE? COME TO OUR ARCHITECTURE ASK US ANYTHING TODAY AT 16:00
  • 25. WEB SUMMIT DUBLIN 2014 #AWS #WEBSUMMIT Ian Massingham — Technical Evangelist @IanMmmm AWS Global News and Service Launches @AWScloud AWS UK & Ireland News, Events & Webinars @AWS_UKI