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AWS Cost Strategies
By John Louis Garcia, Ryan De Castillo and Jeffrey Canas
AWS Architects
Eclaro Business Solutions
6/26/2018
Topics?
Right Sizing AWS Pricing Policy Upgrade your
Ec2 Instance with
the Latest
Generation
EC2
INSTANCE
Right Sizing
• Choosing the right ec2 instances for your workload
• Choosing the cheapest resources while meeting performance requirements
• Always remember, scaling in AWS is very easy
Right Sizing
• Estimated Monthly Savings: $276.48
• Instance Type: m4.xlarge (14 vCPU, 16 GB RAM)
• CPU Utilization: 1.6% for 14 days
ap-southeast-1a i-09aw24jew89qdat32 JL_Eclaro_Test m4.xlarge $276.48 1.6% 2.98MB 14
Right Sizing
• Stop the EC2 Instance (approx. 3 mins)
• Change Instance Type from M5.Xlarge to T2.Small (instant)
• Start the EC2 Instance (instant)
EC2
INSTANCE
EC2
INSTANCE
Downsize
AWS Pricing Policy
• Pay for AWS fundamentals:
• Compute
• Storage
• Outbound data transfer
• No charge:
• Inbound data transfer
• Data transfer between services within the same region
• Charge for aggregated outbound
AWS Fundamentals
AWS Pricing Policy
Pay for what you use
Pay less when you reserve
Pay less when you use more
Pay even less as AWS grows
AWS Pricing Model
AWS Pricing Policy
Pay for what you use
Pay only for the services you consume, with no large
upfront expenses.
• Lower variable costs
• Adapt to changing business needs
Benefits:
• Adapt to changing business needs
• Redirect focus on innovation and invention
AWS Pricing Policy
Pay less when you reserved
Invest in reserved instances
• Save up to 75%
• Options:
• All Upfront (AURI)  largest discount
• Partial Upfront (PURI)  lower discounts
• No Upfront payments (NURI)  smaller discount
Benefits:
• Minimize risk
• Predictably manage budgets
• Comply with policies that require longer-term commitments
AWS Pricing Policy
Pay less By Using More
Realize volume-based discounts
• Savings as usage increases
• Tiered pricing for services (for example, Amazon S3, EBS, EFS) 
the more you use, the less you pay per GB
• Data transfer IN is always free
• Multiple storage services deliver lower storage costs based on
needs
Benefits:
• Choosing the right combination of storage options helps you
reduce cost while preserving performance, security and
durability.
AWS Pricing Policy
Pay Even Less as AWS Grows
As AWS grows:
• AWS is focused on lowering cost of doing business
• Results in AWS passing savings from economies of scale to
you
• Since 2006, AWS has LOWERED PRICING 61 times
• Future higher performing resources replace current resources
for no extra charge.
Leverage on using latest instance generations
Better Costs to Performance Ratio
Simple computation for M3.xlarge to M5.xlarge
Name API Name Memory vCPU Linux On Demand Cost Windows On Demand cost
M1 General Purpose Extra Large m1.xlarge 15.0 GiB 4 vCPUs $0.350000 hourly $0.598000 hourly
M3 General Purpose Extra Large m3.xlarge 15.0 GiB 4 vCPUs $0.266000 hourly $0.518000 hourly
M4 General Purpose Extra Large m4.xlarge 16.0 GiB 4 vCPUs $0.200000 hourly $0.384000 hourly
M5 General Purpose Extra Large m5.xlarge 16.0 GiB 4 vCPUs $0.192000 hourly $0.376000 hourly
Leverage on using latest instance generations
Better Costs to Performance Ratio
Things to consider:
• Upgrading AWS drivers for the operating systems
• EC2 classic vs VPC based environment
AWS Free Tier Services
What is AWS Free tier Service?
The free tier is designed to give you hands-on experience with a
range of AWS services at no charge.
AWS Free Tier Services
How to Maximize Free tier Capabilities?
Charging is based on a per hour:
Option 1: 750 hours = 1 instance running for 750 hours a month
(24x7)
Option 2: 750 hours = 10 instances running 75 hours
Use AMI that is eligible for free tier.
Do not use Images from Market Place which incur licenses.
Use the proper EC2 instance type: t2.nano is not free!
AWS Free Tier Services
How to get Free tier?
Requirements:
1. Email Address
2. Credit Card
Note: If your company creates your AWS account through AWS
Organizations, free tier eligibility for all member accounts begins
on the day the organization is created.
AWS Free Tier Services
How to get Free tier?
Requirements:
1. Email Address
2. Credit Card
Resources
• https://aws.amazon.com/ec2/instance-types/
Thank You for Attending!
• You may reach us in my email address John.Garcia@eclaro.com or drop a
message in the AWS User Group https://www.facebook.com/groups/AWSUGPH/
for any feedbacks.

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Aws cost strategies

  • 1. AWS Cost Strategies By John Louis Garcia, Ryan De Castillo and Jeffrey Canas AWS Architects Eclaro Business Solutions 6/26/2018
  • 2. Topics? Right Sizing AWS Pricing Policy Upgrade your Ec2 Instance with the Latest Generation EC2 INSTANCE
  • 3. Right Sizing • Choosing the right ec2 instances for your workload • Choosing the cheapest resources while meeting performance requirements • Always remember, scaling in AWS is very easy
  • 4. Right Sizing • Estimated Monthly Savings: $276.48 • Instance Type: m4.xlarge (14 vCPU, 16 GB RAM) • CPU Utilization: 1.6% for 14 days ap-southeast-1a i-09aw24jew89qdat32 JL_Eclaro_Test m4.xlarge $276.48 1.6% 2.98MB 14
  • 5. Right Sizing • Stop the EC2 Instance (approx. 3 mins) • Change Instance Type from M5.Xlarge to T2.Small (instant) • Start the EC2 Instance (instant) EC2 INSTANCE EC2 INSTANCE Downsize
  • 6. AWS Pricing Policy • Pay for AWS fundamentals: • Compute • Storage • Outbound data transfer • No charge: • Inbound data transfer • Data transfer between services within the same region • Charge for aggregated outbound AWS Fundamentals
  • 7. AWS Pricing Policy Pay for what you use Pay less when you reserve Pay less when you use more Pay even less as AWS grows AWS Pricing Model
  • 8. AWS Pricing Policy Pay for what you use Pay only for the services you consume, with no large upfront expenses. • Lower variable costs • Adapt to changing business needs Benefits: • Adapt to changing business needs • Redirect focus on innovation and invention
  • 9. AWS Pricing Policy Pay less when you reserved Invest in reserved instances • Save up to 75% • Options: • All Upfront (AURI)  largest discount • Partial Upfront (PURI)  lower discounts • No Upfront payments (NURI)  smaller discount Benefits: • Minimize risk • Predictably manage budgets • Comply with policies that require longer-term commitments
  • 10. AWS Pricing Policy Pay less By Using More Realize volume-based discounts • Savings as usage increases • Tiered pricing for services (for example, Amazon S3, EBS, EFS)  the more you use, the less you pay per GB • Data transfer IN is always free • Multiple storage services deliver lower storage costs based on needs Benefits: • Choosing the right combination of storage options helps you reduce cost while preserving performance, security and durability.
  • 11. AWS Pricing Policy Pay Even Less as AWS Grows As AWS grows: • AWS is focused on lowering cost of doing business • Results in AWS passing savings from economies of scale to you • Since 2006, AWS has LOWERED PRICING 61 times • Future higher performing resources replace current resources for no extra charge.
  • 12. Leverage on using latest instance generations Better Costs to Performance Ratio Simple computation for M3.xlarge to M5.xlarge Name API Name Memory vCPU Linux On Demand Cost Windows On Demand cost M1 General Purpose Extra Large m1.xlarge 15.0 GiB 4 vCPUs $0.350000 hourly $0.598000 hourly M3 General Purpose Extra Large m3.xlarge 15.0 GiB 4 vCPUs $0.266000 hourly $0.518000 hourly M4 General Purpose Extra Large m4.xlarge 16.0 GiB 4 vCPUs $0.200000 hourly $0.384000 hourly M5 General Purpose Extra Large m5.xlarge 16.0 GiB 4 vCPUs $0.192000 hourly $0.376000 hourly
  • 13. Leverage on using latest instance generations Better Costs to Performance Ratio Things to consider: • Upgrading AWS drivers for the operating systems • EC2 classic vs VPC based environment
  • 14. AWS Free Tier Services What is AWS Free tier Service? The free tier is designed to give you hands-on experience with a range of AWS services at no charge.
  • 15. AWS Free Tier Services How to Maximize Free tier Capabilities? Charging is based on a per hour: Option 1: 750 hours = 1 instance running for 750 hours a month (24x7) Option 2: 750 hours = 10 instances running 75 hours Use AMI that is eligible for free tier. Do not use Images from Market Place which incur licenses. Use the proper EC2 instance type: t2.nano is not free!
  • 16. AWS Free Tier Services How to get Free tier? Requirements: 1. Email Address 2. Credit Card Note: If your company creates your AWS account through AWS Organizations, free tier eligibility for all member accounts begins on the day the organization is created.
  • 17. AWS Free Tier Services How to get Free tier? Requirements: 1. Email Address 2. Credit Card
  • 19. Thank You for Attending! • You may reach us in my email address John.Garcia@eclaro.com or drop a message in the AWS User Group https://www.facebook.com/groups/AWSUGPH/ for any feedbacks.