The webinar based on this presentation discussed strategies that you can adopt to help you save money in the AWS Cloud. From turning systems off at night, to implementing bidding strategies on the spot market, there are many ways in which you can manage and reduce your costs with AWS. Dive into the differences between instance types; explain how you can reduce costs with Reserved Instances, the spot market and by architecting to reduce costs. We'll discuss how to combine on-demand pricing with spot pricing to perform cost effective big data analysis, and introduce customer examples to illustrate how AWS customers gain the most from AWS whilst at the same time managing their spend. Topics include: • Understand different cost optimisation strategies you can employ in the AWS Cloud • Learn how to take advantage of different instance types • Discover architectural principles behind cost optimisation in AWS • Learn about tools to help you keep on top of your AWS spend You can find a recording of this webinar on YouTube here: http://youtu.be/kId90Q7b6kY

1. Cost Optimisation on AWS
ianmas@amazon.com
@IanMmmm
Ian Massingham — Technical Evangelist

2. How to make your funding go further

3. LOWER COSTS WITH THE AWS CLOUD
2 31 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
Infrastructure
More
Customers
Lower
Infrastructure
Costs
Economies of
Scale
Reduced
Prices
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
47PRICE
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…

7. COST OPTIMISATION TIPS & TRICKS

8. 1. CHOSE THE RIGHT INSTANCE TYPES
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
START DEPLOY & SCALETUNE

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
AUTO SCALING
POLICY
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. 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

11. 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

12. 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
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. 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
4. USE RESERVED INSTANCES
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance

15. AWS SERVICES OFFERING RESERVATIONS
Amazon EC2
up to 75% 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 WORKLOADSC
ase
Study
Building a Top500 HPC Cluster on AWS
0
18
35
53
70
On-Premises AWS
$68M
$33K
Cost Comparison
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
AWS Cloud
Amazon
Glacier
Gateway Appliance/
AWS Storage Gateway
Amazon
S3
Block File
On-premises Data Center
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
ResponseTime
InstanceLoad
ResponseTime
Instance
Load
CDN for
Static
Content
ResponseTime
Instance
Load
CDN for
Static &
Dynamic
Content

20. 8. USE SERVICES, DON’T REINVENT THE WHEEL
Infrastructure Regions Availability Zones Points of Presence
Enterprise
Applications
Virtual Desktops Sharing & Collaboration
Core Services Storage
(Object, Block
and Archival)
Compute
(VMs, Auto-scaling
and Load Balancing)
Databases
(Relational, NoSQL,
Caching)
Networking
(VPC, DX, DNS)
CDN
Access
Control
Usage & Resource
Tracking
Monitoring
and Logs
Administration &
Security
Key Storage &
Management
Identity
Management
Service
Catalog
Platform
Services
Deployment & Management
One-click web app
deployment
Dev/ops resource
management
Resource Templates
Push
Notifications
Mobile Services
Identity
Sync
Mobile
Analytics
App Services
Queuing &
Notifications
Workflow
App streaming
Transcoding
Email
Search
Analytics
Hadoop
Data
warehouse
Data
Pipelines
Real-time
Streaming Data
Code Deploy
Code Pipeline
Code Commit

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. Follow
us
for m
ore
events
&
w
ebinars
@AWScloud for Global AWS News & Announcements
@AWS_UKI for local AWS events & news
@IanMmmm
Ian Massingham — Technical Evangelist