the total cost of (non) ownership of storage in t he cloud
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The Total Cost of (Non) Ownership of Storage In T he Cloud. Jinesh Varia [email protected] Technology Evangelist. The AWS Cloud For Enterprises. Your Application. Tools to access services. Libraries and SDKs .NET/Java etc. Web Interface Management Console. Tools - PowerPoint PPT PresentationTRANSCRIPT
The AWS Cloud For Enterprises
ComputeAmazon EC2Auto Scaling
NetworkAmazon VPC
ELB, DirectConnectAmazon Route 53
Amazon Global Physical Infrastructure (Geographical Regions, Availability Zones, Edge Locations)
StorageAmazon S3
Amazon EBS
Content DeliveryAmazon
CloudFront
SearchAmazon
CloudSearch
Your Application
TransferImport Export
VM ImportStorage Gateway
Parallel Processing
Amazon Elastic MapReduce
DatabaseAmazon RDS
Amazon DynamoDBAmazon ElastiCache
MessagingAmazon SNSAmazon SQSAmazon SES
Libraries and SDKs.NET/Java etc.
Web InterfaceManagement Console
ToolsAWS Toolkit Eclipse, VS
Command Line Interface
Auth, Authorization, Federation
AWS IAM, MFA
MonitoringAmazon CloudWatch
Deployment and AutomationAWS Elastic BeanstalkAWS CloudFormation
Low-level building blocks
High-level building blocks
Tools to access services
Cross Service features
Pay as you go
When Comparing TCO…
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
When calculating TCO…
Report: File Storage Costs Less In The Cloud Than In-House
It’s Easy To Get An Incomplete And Incorrect Comparison Of Cloud And Internal Storage
August 2011 “File Storage Costs Less In The Cloud Than In-House”
On-Premises Storage
Raw StorageDisk storage volumes in a box
Usable StorageRAID protection, Formatted Ready
Allocated StoragePre-allocation / Capacity Planning
Utilized StorageDisk storage available to the database, Operating system
Application StorageActual storage used by the application
Allocation
1 PB
1,048,576 GB
80%
90%
70%-80%
1,820,133 GB
Source: Dave Merrill’s Blog
On-Premises Storage
Raw StorageDisk storage volumes in a box
Usable StorageRAID protection, Formatted Ready
Allocated StoragePre-allocation
Utilized StorageDisk storage available to the database, Operating system
Application StorageActual storage used by the application
Amazon S3
1 PB
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
#2 Compare the redundancy and durability levels(Different classes of storage : Reduced Redundancy Store)
When calculating TCO…
Multiple pricing models
Standard Storage vs. Reduced Redundancy Storage
AWS Regions and Availability Zones
99.999999999%
99.99%
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
#2 Compare the redundancy and durability levels(Different classes of storage : Reduced Redundancy Store)
#3 Take all the fixed costs into consideration(Don’t forget people, power, space, ….)
When calculating TCO…
Cost Factors One-time Upfront Monthly AWS On-site
BackupArchive
On-siteDR
AWS On-siteBackupArchive
On-siteDR
Server Hardware 0 $$$ $$ $$ 0 0
Network Hardware 0 $$ $$ 0 0 0
Hardware Maintenance 0 $$ $$ 0 0 0
Software OS 0 $$ $$ $ 0 0
Power and Cooling and Data Center Efficiency
0 0 $$ 0 0 $
Data Center/co-lo Space 0 $$ $$ 0 0 0
Personnel (Administration) 0 $$ $$ $ $$ $$$
Storage and Redundancy 0 $$ $$ $ 0 0
Bandwidth $ $$ $ $$ $ $
Resource Management Software
0 0 0 $$ $ 0
Total
Take all the Fixed Costs in to consideration
Storage Administration Costs
Traditional File Storage Systems Are Expensive To Buy And Run
August 2011 “File Storage Costs Less In The Cloud Than In-House”
Cloud Storage Is More Straightforward And A Lot Cheaper Than Traditional Storage
August 2011 “File Storage Costs Less In The Cloud Than In-House”
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
#2 Compare the redundancy and durability levels(Different classes of storage : Reduced Redundancy Store)
#3 Take all the fixed costs into consideration(Don’t forget people, power, space, ….)
#4 Use updated pricing and optimize(Price cuts, Tiered Pricing, Recurring Savings)
When calculating TCO…
Pay less per unit when you use more
Massive economies of scale and efficiency improvements allow us to
continually lower prices
Mr. Automate
Development
Monitoring
ManagementLogistics
Deployment
Automation
“It makes me look so good in front of my CFO. When he [CFO] sees the savings in our AWS monthly bill, he thinks that it is me who is working hard on driving the costs down and increasing efficiency of the company’s infrastructure. I get all the credit for all the hard work you guys are putting in.”
CIO of F500 company
19 price cuts in last 5 years
Massive economies of scale and efficiency improvements allow us to continually lower prices.
Price cuts
August 2011 “File Storage Costs Less In The Cloud Than In-House”
$195,100
$251,600
Cloud Storage Costs of 100 TB
New Customers
Amazon EC2 (Linux & Windows)
Amazon ELBAmazon S3
Amazon EBS
For all customers
Amazon SQS/SNSAmazon DynamoDB
Amazon SESAmazon SWFAnd more…
AWS Elastic BeanstalkAWS CloudFormation
AWS IAMAuto Scaling
Consolidated Billing
No Charge for Inbound Data Transfer
No Charge for Data Transfer Between
Services within a region
AWS Free Usage Tier
Did you know?
Free Services Data Transfer
Expensive Tape Robot Library
TimedStorage-ByteHours = KilowattHour
$0.125 GB/Month
When you turn off your cloud resources, you actually stop paying for them
Continuous optimization in your architecture results in
recurring savings as early as your next month’s bill
Individual developer has the power to save a ton of money for the company
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
#2 Compare the redundancy and durability levels(Different classes of storage : Reduced Redundancy Store)
#3 Take all the fixed costs into consideration(Don’t forget people, power, space, ….)
#4 Use updated pricing and optimize(Price cuts, Tiered Pricing, Recurring Savings)
#5 Intangible Costs – Take a closer look at what you get as part of AWS
When calculating TCO…
Certifications
SOC 1 Type 2 (formerly SAS-70)
ISO 27001
PCI DSS for EC2, S3, EBS, VPC, RDS, ELB, IAM
FISMA Moderate Compliant Controls
HIPAA & ITAR Compliant Architecture
Physical Security
Datacenters in nondescript facilities
Physical access strictly controlled
Must pass two-factor authentication at least twice for floor access
Physical access logged and audited
HW, SW, Network
Systematic change management
Phased updates deployment
Safe storage decommission
Automated monitoring and self-audit
Advanced network protection
AWS delivers a premium security spec atnon-premium prices
Reduced Time to Market = More Revenue
Opportunity Cost
When Comparing TCO…
#1 Understand the difference between useable vs. raw storage capacity and know your utilization
#2 Compare the redundancy and durability levels(Different classes of storage : Reduced Redundancy Store)
#3 Take all the fixed costs into consideration(Don’t forget people, power, space, ….)
#4 Use updated pricing and optimize(Price cuts, Tiered Pricing, Recurring Savings)
#5 Intangible Costs – Take a closer look at what you get as part of AWS
When calculating TCO…
How customers are saving money with AWS
AWS Economics CenterTCO WhitepapersCalculator ToolsCase StudiesOther Resources
AWS Pricing Philosophy
Pay as you go• No minimum commitments or long-term contracts required• Capex -> Opex• Turn off when you don’t need it
Pay less per unit when you use more• Tiered Pricing and Volume Discounts
Pay even less when you reserve • Reserved pricing
Pay even less as AWS grows• Efficiencies, optimizations and economies of scale result in passing the
savings back to you in the form of lower pricing
Custom Pricing
