aws cost optimization: best practices, tips & tricks optimization... · data & analytics...

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AWS Cost Optimization: Best Practices, Tips & Tricks

Sean Anderson Cloud Business Analyst – Optimizer Team at Onica


Agenda

• Cost Optimization in Context• A Practical Framework for Cost Optimization• CloudHealth Demo


“All in” APN PremierConsulting PartnerFocused, deep expertise

Scaled to take on the most complex projects

Outcomes designed to lastEnsure the cloud keeps delivering value without rework

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AWS COMPETENCIES

Data & AnalyticsDevOpsHealthcareMigrationIoTEducationStorageMicrosoft Workloads

AWSCertifications

400+


A Holistic Approach to Cost Optimization

Cost Optimization should be… • Cross-functional• Part of the product roadmap, not an afterthought• Ongoing


Cloud native [kloud ney-tiv]

adjective

1. Selects the most appropriate cloud technology for each workload.2. Offloads undifferentiated heavy lifting to the cloud provider.3. Avoids both Datacenter Thinking and Excessive Refactoring.

Wondering what’s cost effective?Strive for Cloud Native


A Practical Framework for Cost Optimization

• Transparency• Prioritization • Execution


Transparency

• Reporting• Tagging• Alerting


Reporting Tools & Alerting

• Ability to see high level and granular data

• Dashboards

• See assets and utilization/waste

• Tags

• Alerts

• Track trends


Monitor Trends“The sharks fin”

“The science experiment” “The delayed mistake”

“The climb”


Case StudyClient: Consumer Goods CompanyAWS Use Case: Consumer-facing web application, big data analyticsAnnual spend: $2M+Problem: losing $30k / month on a “limbo” blue/green deployment


Tagging• Have a policy defined, but keep it simple• Common tag keys: CostCenter, Client, Environment, Application, Owner,

Name• Pro-tip: use separate AWS accounts for different environments to keep

things organized• Values: Each key should have a range of applicable values

• Spelling and capitalization matters• “CostCenter” v. “Costcenter”, ”prod” v. “production”

• Use automation where appropriate• For example, EBS volumes inherit tags from instance• Snapshots inherit tags from volumes• Require essential tags (e.g. Owner) on launch


Prioritization• Know your services• Effort/benefit• Decisionmaking


Know Your AWS Services

• Research your options

• Pick the right tool for the job

• Identify use cases for ephemeral and managed services

In short: think Cloud Native!


General Optimization Opportunities

• Appropriate provisioning

• Rightsizing

• Purchasing options: On Demand Instances, Spot Instances, and Reserved Instances

• Geographic selection

• Managed services

• Optimize data transfer

From https://d1.awsstatic.com/whitepapers/architecture/AWS-Cost-Optimization-Pillar.pdf


Key Optimization Opportunities• Vertical and Horizontal Scaling

• Overprovisioning size/quantity of resources• Autoscaling/ephemeral architecture/Spot

• Zombie resources

• Old-gen resources• Moving from m3 to m5 saves 28% savings (EC2, USW2, USE1, USE2)• c4 to c5 15% savings (EC2, USW2, USE1, USE2)

• Using the wrong tool for the job/improper use of resources


Effort/Benefit

• Quantify options – what’s the payoff?

• What’s feasible and what makes business sense?

• Whiteboarding method


Whiteboarding

Action Complexity RewardContainerize and move to ECS High High ($100k savings / y)Deliver consumer data via CloudFront instead of EC2 directly

Moderate Moderate ($30k / y)

Buy RI Easy High ($73k / y)Migrate to new-gen instances Easy Moderate ($24k / y)


Decisionmaking

• Key stakeholders in the loop

• Infrastructure considerations paired with Product,

Design, and Finance

• Data driven


Execution• Make changes• Track and monitor• Governance


Case Study• Client: Tax Service Provider• AWS Use Case: Windows-based consumer-facing web application• Annual spend: $3M+• Problem: Seasonal demand drives sudden increase in load


Case Study


Governance

• Don’t let the same issues you just fixed pop up again!

• Automation• Tagging, rightsizing, and other

policies

Above: A Greek artist’s rendition of the first AWS cost optimization initiative


Common Pitfalls

• Analysis paralysis

• Siloed thinking• Communication

breakdowns and misalignment


Onica’s preferred reporting tool. Let’s take a look at some use-cases.Onica provides this tool to clients free of charge.

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