Introductory+guide+to+AWS+cost+management+and+efficiency AWS+Builders+Online+Series+2020+ PDF

AWS Builders
Online Series
Introductory guide to AWS
cost management and efficiency
Rudi Suryadi, Solutions Architect
AWS
Agenda
The economics of AWS
Using AWS in a cost efficient way
How to manage your spend on AWS
© 2020, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Agenda
Cloud is the new normal with fewer organisations
asking “why” and more asking “how and how fast?”
Industrial Shift to on-demand

Revolution power
Cloud Shift to on-demand

Revolution computing
Customers are adopting AWS at a rapid pace
Agility/ Dev Data Center Innovation & Cost Reduction

Productivity Consolidation Digital
Transform ation
Acq uisit ions Large scale com pute Facility or Colocation or

or Divest it ures intensive workloads Real Estate decisions outsourcing contract
changes
AWS allows you to eliminate waste and meet peak
business demand
AWS
Capex
Large
Avoided
Cloud Waste
Peak
Business
Demand Met
Traditional hardware spend
Demand
Avoided for IT
Waste
AWS allows you to eliminate waste and meet peak
business demand
AWS
Capex
Large
Avoided
Cloud Waste
Peak
Business
Demand Met
Traditional hardware spend
Demand
Avoided for IT
Waste Co
Per st op
iod tim
Vo i i
lum c pric sation
e d e dr ,
isc op
ou s
nts ,
Customers have gained value beyond cost
Cost Savings Staff Operational

(TCO) Productivity Resilience Business Agility
What is it? Savings on

infrastructure, on
Efficiency
improvement, reduced
Better SLAs, reduced
outages and MTTR,
Faster application
deployment, global reach,
licensing, and from wait times and and security and lower cost of
managed services downtime experimentation
Examples 30% reduction in

total cost of
Deploys SAP 93%
faster (Visy)
60% reduction in
downtime
Scaled by 1000 percent
in 1 year and reduced
ownership (Globe) (Trainline) dev project time by
months (iTrueMart)
Typical Most Compelling

Focus Cloud Benefits
Agenda
The Technical Pillars of Optimisation
Right Size & Turn off resources Use Savings Plans Design for
Decommission outside of work and Reserved Cost
unused Resources hours Instances
Right size by picking the right family from the start
General Purpose
Compute Optimized
Memory Optimized
Accelerated Computing
Storage Optimized
For migrations, consider using a tool like TSO Logic, Risc Networks, or Atadata
Sizing resources to fit to usage example
m4.4xl
1. Use Cost Explorer: Resource Optimization 2. Agree when to resize, how

Recommendations to find underutilised EC2 many to resize, and understand
resources and understand savings potential any other constraints
m4.xl
3. Size to what’s needed 4. Review 5. Celebrate

(m4.4xlarge -> m4.xlarge saves 87%) application the savings win
Performance
Cost Explorer: Resource optimization recommendations
Cost Explorer: Resource optimization recommendations
Find unused resources using tools like AWS
Trusted Advisor (available via business support) AWS Trusted
Advisor
Old snapshots Unattached Idle EC2, RDS

Elastic IPs instances
Unattached EBS Idle or unattached

load balancers
Turning off non-production resources outside of work hours saved
$800 per day on weekends and $400 per day on weekdays for this
customer = $15,600 per month saving
RDS can be
turned off too
Monday
Friday
Tools for turning off resources outside of work hours
• AWS Instance Scheduler
https://aws.amazon.com/answers/infrastructure-
management/instance-scheduler/
• 3rd party paid tools (including but not limited to)
Use Savings Plans and Reserved Instances
On-Demand Reserved Instances (RIs) (EC2, RDS,
Redshift, ElastiCache, Elasticsearch)
Capacity with no commitment. 1-3 year commitment for a discount. Up to
72% off vs. on-demand, average 20-50%.
For workloads that are temporary, For committed use and for applications
spiky, or for defining workload that cannot scale horizontally (more or
needs. less quantity).
E.g. non-production
Savings Plans are like
RIs 2.0 (Compute only)
Savings Plans is a $/hour commitment for a discount
$15 per hour
On-Demand Rate
Discounted
$10.00 Savings Plan Rate
per hour
Reserved Instances provide significant savings but
requires planning and management
Significant Savings Requires planning and management

• Standard RI: • Instance family: m4 or c5
up to 72% discount vs. on-demand • Size: .nano or .8xlarge
• Convertible RI: • Operating System: Windows or Linux
up to 66% discount vs. on-demand
• Region: ap-southeast-2 (Sydney)
• Availability zone: ap-southeast-2a
• Tenancy: Shared or Dedicated
EC2 Savings Plans has the same commercial benefits but
significantly less planning and management overhead
$ commitment to an EC2 instance Family (m5) + Region (Sydney). E.g. $5 per hour of c5 in Sydney
Significant Savings Requires less planning and management

• Same discount as Standard • Instance family: m4 or c5
RIs, up to 72% vs. on-demand • Size: .nano or .8xlarge
• Applies to EC2, ECS, EKS, EMR • Operating System: Windows or Linux
Compute Savings Plans requires even less planning and
management
$ commitment to AWS Compute globally. E.g. $10 per hour on AWS Compute
Significant Savings Requires even less planning and management

• Same discount as Convertible • Instance family: m4 or c5
RIs, up to 66% vs. on-demand • Size: .nano or .8xlarge
• Applies to EC2, ECS, EKS, • Operating System: Windows or Linux
EMR, and Fargate
Savings Plans vs. RI scenario comparison
Compute EC2 Instance
Convertible RIs Standard RIs
Savings Plans Savings Plans
I may need to change instance family
(e.g. m4 to m5) J X J+work X
I may need to change instance size
(e.g. large to 2xlarge) J J J+work J+linux
I may need to change OS
(e.g. Windows to Linux) J J J+work X
I want to share my commit across
tenancies (e.g. Shared - Dedicated) J J J+work X
I may use Fargate and want to
leverage existing commits J X X X
I may need to move region J X X X
Purchase Savings Plans via AWS Cost Explorer
Designing for Cost
Amazon EC2 Spot Serverless &
AWS Lambda
Static Web Hosting on S3 ELB to Application Load

and using S3 Select Balancer
Deliver content with

Containerisation (staff productivity
AWS CloudFront and Caching
and compute utilisation)
(lower compute and data
transfer)
AWS CloudFormation Open source platforms &
(developer time saving) databases (reduced licensing cost)
Running resources in a Auto Scaling up and down to

cheaper region match peak demand
Agenda
Estimating spend Measuring & Metrics to know
monitoring spend how efficient
your spend is
Consider optimisation when estimating spend
Tips for new workloads Tips for migrating workloads
• Design for cost upfront • Understand peak utilisation (i.e. peak CPU and RAM)
• Include turn-off time via tools like hypervisor monitoring or TSO Logic
• Include reserved instances • Understand usage pattern (e.g. % of time off)
Self-serve tools Supported options

1) Simple Monthly Calculator 3) Migration Acceleration
Program (MAP)
2) AWS pricing calculator New! 4) Contact AWS Sales

(incl. for TSO Logic)
Cost Savings: Modeling On-Premises Cost
Hardware—Server, Rack Software—OS, Facilities Cost
1 Server Costs Chassis PDUs, ToR Switches
(+Maintenance)
Virtualization Licenses
(+Maintenance) Space Power Cooling
Facilities Cost
2 Storage Costs Hardware—Storage Disks,
SAN/FC Switches
Storage Software Costs
(+Maintenance) Space Power Cooling
Facilities Cost
3 Network Costs Network Hardware—LAN
Switches, Load Balancer
Recurring ISP/Bandwidth
costs Space Power Cooling
4 IT Labor Costs Server Admin, Virtualization Admin, Storage Admin, Network Admin, Support Team
Diagram doesn’t include every cost item. (E.g. software costs can include database,
management, middle tier software costs.) Facilities cost can include costs associated with
upgrades, maintenance, building security, taxes, and others.
To measure your spend, use AWS Cost Explorer
1. AWS Cost Explorer
Move towards
tools with greater
Monthly speed to insight
AWS invoice 2. AWS budgets
3. Use Tags
AWS Budgets send you email or SNS notifications
when spend thresholds are reached
“Email me if my EC2 spend is expected to reach 105% of forecast”

Cost Explorer provides metrics that tell you if you’re
running efficiently
1) Spend against budgets 2) Rightsizing: ratio of right sizing
(split by BU, account, service, etc.), savings vs. EC2 total spend via
and % valid tagging AWS Cost Explorer
In which areas am I spending the Are my resources fit to need?

expected amount?
3) On-off scheduling: ratio of weekday 4) Savings Plan / RI Efficiency:

vs. weekend average spend for EC2 and % Savings Plan/RI coverage,
RDS instances via AWS Cost Explorer % Savings Plan/RI utilisation,
monthly $ saved vs. savings potential
Are non-production costs turning on-off
Am I paying less for the same capacity
as expected outside of work hours?
& am I using that capacity I paid for?
Summary of this session
http://bit.ly/cloudeconintro2020
AWS Digital Training
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when and where it’s typical use cases and understanding how the service provides object
convenient for you. storage for your applications
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Thank you for attending AWS Builders Online Series
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AWS Builders

Using AWS in a cost efficient way

How to manage your spend on AWS

Using AWS in a cost efficient way

How to manage your spend on AWS

Industrial Shift to on-demand

Cloud Shift to on-demand

Agility/ Dev Data Center Innovation & Cost Reduction

Acq uisit ions Large scale com pute Facility or Colocation or

Cost Savings Staff Operational

What is it? Savings on

Examples 30% reduction in

Typical Most Compelling

Using AWS in a cost efficient way

How to manage your spend on AWS

1. Use Cost Explorer: Resource Optimization 2. Agree when to resize, how

3. Size to what’s needed 4. Review 5. Celebrate

Old snapshots Unattached Idle EC2, RDS

Unattached EBS Idle or unattached

Significant Savings Requires planning and management

Significant Savings Requires less planning and management

Significant Savings Requires even less planning and management

Static Web Hosting on S3 ELB to Application Load

Deliver content with

Running resources in a Auto Scaling up and down to

Using AWS in a cost efficient way

How to manage your spend on AWS

Self-serve tools Supported options

2) AWS pricing calculator New! 4) Contact AWS Sales

1. AWS Cost Explorer

“Email me if my EC2 spend is expected to reach 105% of forecast”

In which areas am I spending the Are my resources fit to need?

3) On-off scheduling: ratio of weekday 4) Savings Plan / RI Efficiency:

Using AWS in a cost efficient way

How to manage your spend on AWS

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