AWS Cost optimization at scale
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This document provides an overview of cost optimization strategies when using AWS. It discusses building cloud architectures with cost in mind by following best practices like right-sizing instances, using the appropriate pricing model, and matching usage to the proper storage class. It also covers implementing and maintaining cost optimization at scale through automation, measurement, and monitoring. Key recommendations include tagging resources, using tools like AWS Trusted Advisor, and potentially working with partners to help manage costs across accounts and metrics.
AWS Cost optimization at scale
- 5. How do customers lower their TCO with AWS? 1 Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” December 2013 “Average of 400 servers replaced per customer” Replace up-front capital expense with lower “pay for what you use” variable cost model 3 59 Price Reductions since 2006 Economies of scale allow AWS to continually lower costs 2 Pricing model choice to support variable & stable workloads On-Demand Reserved Spot Dedicated
- 6. Lowering TCO through cloud optimization Lift and Shift Optimized for the Cloud Designed for the cloud Micro-services & Serverless Managed ServicesInfrastructure Services TCO : up to 30%* TCO : up to 58%* TCO : up to 75%* *https://aws.amazon.com/economics/learn-more/ Ex: Amazon EC2, Amazon EBS, Amazon EFS, Amazon VPC, VM Import/export… Ex: Amazon RDS, Amazon Aurora, Amazon Elasticache, Amazon Redshift, Amazon OpsWorks, Amazon ElasticSearch, Amazon EMR Ex: Amazon S3, Amazon SQS, AWS Lambda, Amazon Kinesis, Amazon DynamoDB, Amazon Cognito, AWS DMS, AWS WAF, AWS IOT
- 7. Where do you start?
- 9. Pillar 1: Right-Sizing Right-sizing • Selecting the cheapest instance available while meeting performance requirements • Looking at CPU, RAM, storage, and network utilization to identify potential instances that can be downsized • Leveraging Amazon CloudWatch metrics and setting up custom RAM metrics Rule of thumb: Right size, then reserve. (But if you’re in a pinch, reserve first.)
- 10. Pillar 2: Increase Elasticity Turn off nonproduction instances • Look for dev/test, nonproduction instances that are running always-on and turn them off. • Lambda + CloudWatch = Automated Scheduling* Autoscale production • Use Auto Scaling to scale up and down based on demand and usage (for example, spikes). * https://aws.amazon.com/premiumsupport/knowledge-center/start-stop-lambda-cloudwatch/
- 11. Pillar 3: Leveraging the Right Pricing Model On-Demand Instances Reserved Instances Spot Instances
- 12. On-Demand Instances Short-term, spiky and unpredictable Low cost and flexible Develop and test
- 13. Reserved Instances for Always-On Instances Commitment level • 1 year • 3 year AWS services offering Reserved Instances • Amazon EC2 • Amazon RDS • Amazon DynamoDB • Amazon Redshift • Amazon ElastiCache * Dependent on specific AWS service, size/type, and region
- 14. EC2 Instance Growth 2007 2008 201120102009 20162013 2014 2015 3 60+ Increasing customer choice through accelerating Instance innovation Instances Launched in 2016: • Accelerated Computing: p2 • Memory Optimized: x1.16xl • General purpose: m4.16xl 5 7 11 12 23 42 52
- 17. Reserved Instances Step 1: Reserved Instance Coverage • Cover always-on resources with standard or convertible Reserved Instances Step 2: Increase Reserved Instance Utilization • Known architectures: Leverage Standard Reserved Instance flexibility to increase utilization. • Growing or changing architectures: Leverage Convertible Reserved Instances across families, sizes, and OS. • Regional Benefit: Consolidated billing, reservation not critical
- 19. Consider Spot for Elastic Workloads Options • Spot Fleet to maintain instance availability • Spot Block durations (1-6 hours) for workloads that must run continuously Commitment level • None * Compared to On Demand price based on specific EC2 instance type, region, and Availability Zone
- 20. Spot Rules 50% of OD 75% of OD 25% of OD You pay the market price 87% discount! You’ll Never Pay More Than Your Bid
- 24. Amazon EC2 Container Service • Easily manage Docker containers • Flexible container placement • Designed for use with other AWS services • Extensible • Performance at Scale • Secure
- 25. 10% 15% 7% 12% 20% 9% Consolidate with Amazon ECS App 1 App 2 App 3 App 4 App 5 App 6 6 12 34 5 Amazon ECS cluster
- 26. Get rid of idle time with AWS Lambda • Automatic scaling • Automatic provisioning • No need to manage infrastructure • Just bring your code • $0.20 per million requests, 1M free • 100 ms payment granularity • Never pay for idle Less than 40% utilization? Consider using AWS Lambda instead!
- 27. Use case: Serverless web apps • Amazon S3 for serving static content • AWS Lambda for dynamic content • Amazon API Gateway for https access • Amazon DynamoDB for NoSQL data storage Dynamic content in AWS Lambda Data stored in Amazon DynamoDB API Gateway Static content in Amazon S3 Browser
- 29. AWS Import/Export Snowball • Accelerate PBs with AWS-provided appliances • 80 TB model, global availability AWS Storage Gateway • Instant hybrid cloud • Up to 120 MB/s cloud upload rate (4x improvement), and Data ingestion into AWS storage services Amazon Kinesis Firehose • Ingest device streams directly into AWS data stores AWS Direct Connect • COLO to AWS ISV Connectors • CommVault • Veritas • etcetera Amazon S3 Transfer Acceleration • Move data up to 300% faster using AWS’s private network
- 30. AWS Import/Export Snowball • Accelerate PBs with AWS-provided appliances • 80 TB model, global availability AWS Storage Gateway • Instant hybrid cloud • Up to 120 MB/s cloud upload rate (4x improvement), and Data ingestion into AWS storage services Amazon Kinesis Firehose • Ingest device streams directly into AWS data stores AWS Direct Connect • COLO to AWS ISV Connectors • CommVault • Veritas • etcetera Amazon S3 Transfer Acceleration • Move data up to 300% faster using AWS’s private network
- 32. Active data Archive dataInfrequently accessed data Milliseconds Multiple Retrieval RatesMilliseconds $0.023 / GB / mo* $0.004 / GB / mo$0.0125 / GB / mo Object Storage Classes on Amazon S3 * First 50TB, Next 450TB $0.022 / GB, Over 500TB $0.021 / GB Standard Hot Standard - Infrequent Access Warm Amazon Glacier Cold
- 33. Running the Numbers: S3 or S3-IA Comparing 1 PB of object storage* 1PB Monthly S3 S3-IA Savings % $24,117 $14,116 41% Rule of thumb: Breakeven = 105% Retrieved per Month Content Accessed per Month 10% $24,117 $18,350 24%50%1PB Monthly $24,117 $23,593 2%100%1PB Monthly * Based on US-East Prices
- 42. Step 2: Reserve
- 45. Sounds pretty easy, right? Not really. In reality, it is very complex. • Scale • Behavioral change • Visibility • Ownership
- 49. Automation. 1. Identify always on instances. 2. Identify instances to downsize. 3. Identify warm / cold storage. 4. Recommend Reserved Instances to purchase. 5. Dashboard our status. 6. Report on savings.
- 51. Enabling Cost Transparency Must have tagging: • Cost center • Application or workload • User • Expiration date • Automation support
- 58. AWS Trusted Advisor Helping customers automate best practices (checks) across cost optimization, security, fault tolerance, and performance improvement Red (action recommended) Orange (investigation recommended) Green (no problem detected)
- 66. Leverage managed services • Use Amazon RDS, DynamoDB, ElastiCache for Redis or Amazon Redshift • Instead of running your own database • Amazon EMR, Elasticsearch Service • Instead of running your own cluster • Amazon SQS • Amazon Kinesis, Amazon Kinesis Firehose, Analytics, Amazon SNS, and more … AWS has experts for each service RDS Amazon Redshift Amazon Elasticsearch Service Amazon Kinesis SQS
- 68. Metrics and Targets • % instances turned off daily • % of instances right-sized • % always-on resources covered by Reserved Instances • % Reserved Instance utilization ✔ ✔ ✔ ✔ ✘ ✘ ✘ ✘ Define success by establishing metrics and track progress Cost-Based