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Top 5 Ways to Optimize for Cost Efficiency with the Cloud Nam Je Cho Solutions Architect

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What You’ll Get Out of This Session •  A lower AWS bill •  Maintain high performance while minimising cost •  A more scalable, robust, dynamic architecture •  More time to innovate •  Real-world customer examples •  Easy to implement

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Cloud Computing Benefits •  Pay as you go, no up-front investments •  Low ongoing cost •  Flexible capacity •  Speed, agility, and innovation •  Focus on your business •  Go global in minutes

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Cloud Computing Benefits •  Pay as you go, no up-front investments •  Low ongoing cost •  Flexible capacity •  Speed, agility, and innovation •  Focus on your business •  Go global in minutes

Do Nothing

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AWS Pricing Philosophy

Ecosystem Global Footprint New Features New Services

More AWS Usage

More Infrastructure

Lower Infrastructure

Costs

Reduced Prices

More Customers Infrastructure

Innovation

45  price  reduc+ons  since  2006  

Economies of Scale

Do Almost Nothing

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AWS Trusted Advisor h$ps://aws.amazon.com/premiumsupport/trustedadvisor/  

Free with Business or Enterprise Support

Optimise Architecture

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The Basic Process

Architecting for Low Cost

… in seven easy steps!

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1. Turn Off Unused Instances

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1. Turn Off Unused Instances •  Developer, test, training instances on evenings/weekends •  Use simple instance start and stop •  Tear down and build up all together •  Instances are disposable •  Automate, automate, automate!!!

•  AWS CloudFormation •  Weekend/off-hours scripts •  Use resource tags

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Customer Dev/Test Example

Monday   Friday   End  of  Vaca=on  Season  

35% saved

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Customer Case Studies

Pfizer’s  high  performance  compu=ng  (HPC)  soGware  and  systems  for  worldwide  research  and  development  (WRD)  support  large-­‐scale  data  analysis,  research  projects,  clinical  analy=cs,  and  modeling.  “We  accomplished  this  by  customizing  the  job  scheduler  in  our  HPC  environment  to  recognize  workload,  and  start  and  stop  instances  as  needed  to  address  the  workflow”  

RunE2E  for  Kenneth  Cole  leverage  several  AWS  APIs  for  star=ng/stopping  the  system,  increasing  system  capacity  based  on  demand  needs,  and  changing  security  profiles  providing  a  low  cost  but  scalable  environment  to  run  its  business.  

“Instance  ac=ons,  such  as  create,  stop,  start,  and  terminate,  can  very  easily  be  scheduled  as  an  event.  For  example,  now  we  can  terminate  all  instances  automa=cally  aGer  a  training  class,  thereby  elimina=ng  the  genera=on  of  unnecessary  cost”  

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2. Use Auto Scaling

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Auto Scaling

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AWS CloudFormation: Launch Configuration "LaunchConfig": {

"Type" : "AWS::AutoScaling::LaunchConfiguration",

"Metadata" : {

"AWS::CloudFormation::Init" : {

"config" : {

… packages, sources, files, services …

}

}

},

"Properties": {

"ImageId" : "ami-149f7863",

"InstanceType" : "m1.small",

"SecurityGroups" : [ {"Ref" : "WebServerSecurityGroup"} ],

"KeyName" : "MySSHKey",

"UserData" : { "Fn::Base64" : { "Fn::Join" : ["", [

"#!/bin/bash -v\n",

… your user data script …

]]}}

}

}

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Align Your Resources With Demand

h$p://aws.amazon.com/autoscaling/  

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Customer Case Studies

“We  believe  auto  scaling  greatly  improves  the  availability  of  our  services  and  provides  an  excellent  means  of  op=mizing  our  cloud  costs.”    h$p://techblog.neYlix.com/2012/01/auto-­‐scaling-­‐in-­‐amazon-­‐cloud.html    

Siemens  Healthcare  Diagnos=cs  helps  advance  human  health  through  innova=on.  By  using  services  such  as  ELB,  Amazon  SQS,  Amazon  EC2,  Amazon  RDS,  Auto  Scaling,  Amazon  Elas=Cache,  and  AWS  CloudTrail,  Siemens  has  built  a  secure,  HIPAA-­‐compliant,  and  scalable  plaYorm  on  AWS.  

The  array  of  AWS  products  offers  TicketLeap  a  potent  solu=on.  The  company  uses  Amazon  EC2,  Amazon  RDS,  Amazon  CloudFront,  Amazon  S3,  ELB,  Auto  Scaling,  and  cloud  monitoring  services  as  the  founda=on  for  its  plaYorm.  

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3. Use Reserved Instances

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Calculate RI Savings

1y  RI  Break  even  

3y  RI  Break  even  

h$p://calculator.s3.amazonaws.com/index.html  

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Reserved Instances Are Flexible •  Can be moved between AZs •  Can be moved between EC2-Classic and EC2-VPC platforms •  Size can be modified within the same instance family

h$p://aws.amazon.com/ec2/purchasing-­‐op=ons/reserved-­‐instances/  

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Simplifying the EC2 Reserved Instance Model

•  Simplified Reserved Instance model •  Single type of Reserved Instance and three payment options;

•  All Upfront •  Partial Upfront •  No Upfront

h$p://aws.amazon.com/ec2/purchasing-­‐op=ons/reserved-­‐instances/  

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Customer Case Studies

As  one  of  the  world’s  largest  dance  fitness  programs,  Zumba  Fitness  needed  a  scalable  and  high  performance  website.  When  Zumba  migrated  its  website  to  AWS  in  2009,  the  company  saved  39%  on  compu+ng  resources  by  using  Amazon  Reserved  Instances.  Zumba  could  also  scale  easily  to  serve  up  7  TB  of  images  to  its  customers  each  month.      

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4. Use Spot Instances

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Spot Instance Rules •  Price based on supply/demand •  You choose your maximum price/hour •  Your instance is started if the Spot price is lower •  Your instance is terminated if the Spot price is higher •  But, you did plan for fault tolerance, didn’t you?

•  We provide guide on architecting applications to use Spot Instances

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Spot Instance Example

$0.028    (11.7%)   $0.026    (10.8%)  

$3.28  (1367%)  

On-­‐Demand:  $0.24  

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Spot Instance Use Cases •  Analytics •  Batch Processing •  Big Data - Amazon Elastic MapReduce •  Web crawlers •  Testing •  Image & media encoding •  High Performance Computing •  Financial modeling and analysis – Monte Carlo analysis

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Spot Instances Recap •  Very dynamic pricing •  Opportunity to save 80-90% cost

•  But there are risks & you need to design around it! •  Different prices per AZ •  Leverage Auto Scaling!

•  One group with Spot Instances •  One group with On-Demand •  Get the best of both worlds

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Customer Case Study Cycle Computing “HGST buys 70,000-core cloud HPC Cluster, breaks record, returns it 8 hours later”

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5. Use Amazon S3 Storage Classes •  Reduced redundancy storage class

•  99.99% durability vs. 99.999999999% •  Up to 20% savings •  Everything that is easy to reproduce •  Use Amazon SNS lost object notifications

•  Amazon Glacier storage class •  Same 99.999999999% durability •  3 to 5 hours restore time •  Up to 64% savings •  Archiving, long-term backups, and old data

•  Use S3 Lifecycle rules •  Archive objects to Glacier after x days •  Delete objects after y days

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6. Optimize Amazon DynamoDB capacity units •  Read/write capacity units (CUs) determine most of DynamoDB cost •  By optimizing CUs, you can save a lot of money •  But:

•  Need to provision enough capacity to not run into capacity errors •  Need to prepare for peaks •  Need to constantly monitor/adjust

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DynamoDB Optimisation •  Use caching to save read capacity units

•  Local RAM caches at app server instances •  Check out Amazon ElastiCache

•  Think of strategies for optimizing CU use •  Use multiple tables to support varied access patterns •  Understand access patterns for time series data •  Compress large attribute values

•  Use Amazon SQS to buffer over-capacity writes

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Amazon SQS Can Buffer Requests

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Customer Case Studies

During  the  2012  Super  Bowl,  the  Shazam  App  ran  on  Amazon  DynamoDB,  Amazon  EMR,  and  Amazon  EC2  Cluster  Compute  Quadruple  Extra  Large  Instances  with  Elas=c  Load  Balancing.  This  infrastructure  helped  to  support  the  processing  of  millions  of  transac=ons  during  this  high-­‐traffic  event.    

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Dynamic DynamoDB

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DynamoDB Optimisation Example

Caching/Op=miza=on:  80%  saved  

Cache  flush  

Dynamic  DynamoDB:  20%  saved  

Growth  +  new  features  

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7. Offload Your Architecture •  More you can offload, the less infrastructure you need to maintain, scale,

and pay for •  Three easy ways to offload:

•  Use CDN - Amazon CloudFront •  Introduce Caching – Amazon ElastiCache •  Leverage existing Amazon Web Services

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Offload Popular to Amazon S3 & CloudFront

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Customer Case Studies

Airbnb  is  a  community  marketplace  for  unique  vaca=on  spaces  around  the  world.  Airbnb  benefits  from  the  scalability,  agility  and  reliability  provided  by  Amazon  Web  Services,  including  Amazon  EC2,  Elas=c  Load  Balancing,  Amazon  S3,  Amazon  EMR,  Amazon  CloudFront,  Amazon  CloudWatch,  and  Amazon  RDS.  

The  Internet  Movie  Database  (www.imdb.com)  is  one  of  the  world’s  most  popular  and  authorita=ve  sources  for  movie,  TV  and  celebrity  content  with  more  than  100  million  unique  visitors  per  month.  IMDb  uses  AWS  and  Amazon  CloudFront  to  host  search  data,  making  the  search  experience  the  fastest  possible  by  distribu=ng  the  content  physically  close  to  IMDb's  worldwide  user  base.  

PBS,  a  private,  non-­‐profit  corpora=on,  provides  content  through  television,  the  Web  and  mobile  applica=ons.  PBS  Interac=ve,  the  department  responsible  for  PBS’  Internet  and  mobile  presence,  improved  its  video  streaming  performance  by  migra=ng  to  AWS  to  u=lize  the  content  delivery  service  Amazon  CloudFront  and  increase  its  exis=ng  usage  of  Amazon  S3.  

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Offload Databases Through Caching

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Customer Case Studies

PlaceIQ,  a  loca=on-­‐based  intelligence  company  in  New  York  City,  provides  loca=on  intelligence  for  mobile  adver=sing.  The  company  uses  Amazon  Elas=Cache  and  AWS  to  improve  its  web  service  response  =me  by  83%.  

Sanoma  Games  designs  casual  online  gaming  and  fantasy  sports  leagues  as  part  of  the  Sanoma  diversified  media  group.  The  business  unit  recently  closed  its  local  datacenter  in  order  to  build  a  scalable,  service-­‐based  architecture  that  can  facilitate  expansion  into  addi=onal  markets  and  gaming  categories.  Cloud  management  specialist  Nordcloud  was  appointed  to  create  and  manage  the  new  environment,  which  now  includes  Amazon  RDS,  Amazon  EC2,  Amazon  S3,  Amazon  Elas+Cache,  and  Amazon  CloudWatch.  

SpareFoot.com  helps  self-­‐storage  facili=es  market  their  extra  space,  and  helps  consumers  make  educated  decisions  on  which  storage  unit  is  best  for  their  needs.  In  order  to  manage  a  network  of  consumer  facing  sites,  the  company  uses  several  AWS  products—including  Amazon  RDS,  Amazon  ELB,  Amazon  S3,  Amazon  Elas+Cache,  Amazon  CloudWatch,  and  Amazon  CloudFront—to  create  a  stable  system  and  reduce  =me,  costs,  and  labor.  

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Leverage Existing Services •  Amazon RDS, Amazon DynamoDB or Amazon ElastiCache for Redis, Amazon Redshift

•  Instead of running your own database

•  Amazon CloudSearch •  Instead of running your own search engine

•  Amazon Elastic Transcoder

•  Amazon Elastic MapReduce

•  Amazon Cognito, Amazon SQS, Amazon SNS, Amazon Simple Workflow Service, Amazon SES, Amazon Kinesis, and more …

Simple, more reliable, lower cost

Cost Monitoring & Analysis

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Introducing Amazon EC2

https://awstcocalculator.com/

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Customer Case Studies

Learn  how  media  giant,  Dow  Jones  &  Company,  plans  to  save  over  $100  million  over  3  years  by  migra=ng  its  data  centers  to  AWS.    h$ps://www.youtube.com/watch?v=xS8Ha0Q6_CY    

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AWS Simple Monthly Calculator

http://calculator.s3.amazonaws.com/index.html

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AWS Billing Console

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AWS Cost Explorer

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AWS Billing Alerts

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Let’s Recap 1.  Turn off unused instances 2.  Use Auto Scaling 3.  Use Reserved Instances 4.  Use Spot Instances 5.  Leverage Amazon S3 storage classes 6.  Optimize Amazon DynamoDB capacity units 7.  Offload your architecture

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And Remember to Iterate!

Architect  

Build  Monitor  

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Thank You!