GOOGLE COMMITTED USE DISCOUNTS VS.

AWS RESERVED INSTANCES AND MORE WAYS TO SAVE WITH

GOOGLE

• Manish Dalwadi • Product Manager, Google

•Michael Crandell

• CEO, RightScale

Panelists

• Google’s approach to cloud pricing • Ways to save money on Google • New Committed Use Discounts • Real-World Examples

• AWS Reserved Instances vs. Google Committed Use • Preemptible Virtual Machines • Custom VMs

•Q&A

Agenda

Cost Optimization is Top Initiative in 2017

RightScale Helps you Save Money

Typical Savings

30-45%

SAVINGS IN PRACTICE

Self-Estimated

Wasted Spend

Additional Wasted

Spend Typically

Found by RightScale

30-45% of Cloud Spend Is Wasted

Source: RightScale 2017 State of the Cloud Report

The Three Biggest Areas for Waste

Not Leveraging Discounts

Running Dev Instances 24x7

Oversized Instances

How Google Helps

Committed Use and Sustained Use

Discounts

Preemptible VMs

Custom Machine Types

USE CASE 1: OPTIMIZING YOUR

DISCOUNTS

• We know we can save with RIs, BUT: • We have underutilized instances that I need to downsize

• We are moving to Docker and that will change what I need

• We have dev instances that are changing all the time

• We need to re-architect that system

• We may need to change our instance families

• There may be new instance types coming

• …and more

The “Yeah, Buts” of Reserved Instances

Your Reality Is Constant Change

2 vCPU 4 GB

8 vCPU 8 GB

Now

2 vCPU 4 GB

2 vCPU 8 GB

2 vCPU 8 GB

2 vCPU 4 GB

4 vCPU 8 GB

Future

2 vCPU 4 GB

2 vCPU 8 GB

1 vCPU 4 GB

1 vCPU 4 GB

2 vCPU 4 GB

2 vCPU 4 GB

Example Usage/Cost Pattern

Production and 24x7 dev usage

Weekday dev usage

* Data from real (anonymous) customer use cases

90%** coverage of steady-state for Convertible RIs

Example: Reserved Instances AWS

*65% coverage provides for flexibility to change VM families and sizes used over time.

65%* coverage of steady-state for Standard RIs

**Ability to change VM families and sizes enables higher coverage.

Example: Google Pricing

*Ability to automatically change VM families and sizes enables higher coverage.

*90% Committed Use Discount coverage of steady-state

Sustained Use Discount coverage

AWS Customer Example with RIs

Applied Rate Monthly Hours Monthly Spend % Savings

RI (1 Yr Standard, No upfront) 65% coverage

650,000 $41,800 31%

On-Demand 350,000 $37,800 0%

Total 1,000,000 $85,900 21%

RI (3 year Standard, Partial upfront) 65% coverage

650,000 $27,950 60%

On-Demand 350,000 $37,800 0%

Total 1,000,000 $65,750 39%

RI (3 year Convertible, No upfront) 90% coverage

900,000 $60,300 38%

On-Demand 100,000 $10,800 0%

Total 1,000,000 $71,100 34%

*Assumes all m4.large

Applied Rate Monthly Hours Monthly Spend % Savings

Committed Use (1 year, no upfront) 90% coverage

900,000 $53,865 37%

Sustained Use (100% usage level) 50,000 $3,325 30%

Sustained Use (25-50% usage level) 25,000 $1,900 20%

On-Demand 25,000 $2,375 0%

Total Spend 1,000,000 $61,465 35%

Committed Use (3 year, no upfront) 90% coverage

900,000 $38,475 55%

Sustained Use (100% usage level) 50,000 $3,325 30%

Sustained Use (25-50% usage level) 25,000 $1,900 20%

On-Demand 25,000 $2,375 0%

Total Spend 1,000,000 $46,075 52%

GCP Customer Example with Discounts

*Assumes all n1-standard-2 = $.095/hr

28% less than AWS 1 yr

Standard RIs

35% less than AWS 3 yr

Convertible RIs

Summary of AWS RI vs. Google Pricing

USE CASE 2: DEV/TEST WORKLOADS

Development Environment Usage Hours

Mon Tue

Wed Thu Fri Sat Sun

00:00

11:59

24x7 168 hours

12x5 60 hours

35%

Sustained only

Committed + Sustained

50/50 Committed + PVM

100% PVM

Monthly Spend $67,450 $61,465 $40,733 $20,000

Additional savings vs. “Sustained only”

9% 40% 70%

PVM Example

*1M hrs/month; *95% of hrs at 100% usage, *2.5% at 50% usage *2.5% at On-Demand *Assumes all n1-standard-2 = $.095/hr

USE CASE 3: RIGHTSIZING WITH

CUSTOM MACHINE TYPES

Underutilization Is Rampant

Memory utilization

CP

U u

tiliz

ati

on

Underutilization Is Rampant

High CPU utilization Low memory utilization

Low CPU and memory utilization

Custom VMs

Downsize

CP

U u

tiliz

ati

on

Memory utilization

Rightsizing

4 vCPU 20 GB

You Need Standard VM Custom VM

GCE Cost = $.266/hr AWS Cost = $.431/hr

GCE Cost = $.155/hr Savings vs GCE std VM = 42% Savings vs AWS std VM = 64%

8 vCPU 30 GB

4 vCPU 20 GB

*GCE Cost includes Sustained Use Discounts

Optimizing Google Cloud for ROI

Committed Use and Sustained Use

Discounts

Preemptible VMs

Custom Machine Types

See the blog: https://www.rightscale.com/blog/cloud-cost-analysis/aws-reserved-instances-vs-google-committed-use-discounts Contact: sales@rightscale.com Learn about Google: cloud.google.com/compute

cloud.google.com/pricing/innovation

Q&A