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Controlling cloud costs
with analytics	
  
®

Ali Khajeh-Hosseini
@AliKhajeh
Nov 2013, Bristol University

®
I’m here to talk about
How cloud computing…
is changing IT spending
Jan 2009: Started PhD in St Andrews
May ‘10: PlanForCloud v.1 ready
Dec ‘11: Hassan quit his job and joined
Feb ‘12: Launched PlanForCloud (v.2)
May ‘12: Mountain View for YC interview

5min demo video filmed in my flat
with poor lighting and a £10 poster
Jul ‘12: Acquired by RightScale
Nov ‘13: Launched Cloud Analytics (v.3)
What the heck is…
a cloud?
Server
Rack
Container
2500
Servers
Electricity, Water, Internet
Controlling cloud costs with analytics
Controlling cloud costs with analytics
a cloud
Around 60 Staff

30 Megawatts = Perth (Scotland)!

140 Containers
2 = 4 ftbl pitches
38,500 m

360,000 Servers

500,000,000 Dollars
h#p://www.microso/.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx	
  	
  
Cloud Computing	
  
Focus of my talk	
  

Software-as-a-Service

Platform-as-a-Service

Infrastructure-as-a-Service
Why do companies care?
Cloud computing has many benefits
- Elasticity
- Pay-per-use pricing
...
Animoto’s crazy scale-out

Scale-out from 50 to 4,000 servers in 3 days
h#p://blog.rightscale.com/2008/04/23/animoto-­‐facebook-­‐scale-­‐up/	
  
Capacity planning

Images	
  taken	
  from	
  h#p://aws.amazon.com/economics/	
  	
  
Zynga’s Z-Cloud

Launch new games on public clouds
Move to private cloud when usage patterns are understood
h#p://www.rightscale.com/customers/zynga-­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php	
  
h#p://code.zynga.com/2012/02/the-­‐evoluKon-­‐of-­‐zcloud/	
  
There are different purchase options
- On-Demand: fixed rate
- Reserved: pay upfront, lower rate
- Spot: Bid how much you would pay
- Discounts and consolidated bills
AWS Reserved Instances

up-front procurement to pay-per-use
You have to specify: term (1/3 yr), utilization, availability zone,
instance type and OS when buying a RI
Image	
  taken	
  from	
  h#p://aws.typepad.com/aws/2011/12/reserved-­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html	
  
AWS Reserved Instances Marketplace

Buy and sell reservations
AWS Spot Prices

Bid for an instance, it’ll get switched on if bid >= spot price.
You pay spot price, AWS sets it.
h#p://www.cs.technion.ac.il/~ladypine/spotprice-­‐slides-­‐postmortem.pdf	
  
Prices change
(feels like there’s a price war between providers)
Example: a MySQL Database
AWS Relation Database Service (RDS)
- Up-front reservation fee (optional)
- CPU: $X/hour (based on instance type and cloud)
- Storage: $X/GB/month
- Transactions: $X/Millions of I/O ops
- Provisioned IOPS: $X/IOPS/month (has other limitations)
- Redundancy: double the CPU hourly rate
- Data transfer: $X/GB (tiered across cloud)
What the heck?
I just wanted a simple database
It’s starting to get interesting
1. Many clouds worldwide
2. Many pricing models
3. Markets for computing
4. RightScale helps move between clouds
Cost optimisation
The challenge
Cloud spending is growing rapidly
Cloud pricing is complicated…
we scrape over 12,000 prices.
Need to visualize, forecast and optimize cloud spend
h#p://www.gartner.com/newsroom/id/2352816	
  
Cloud Analytics helps users make decisions
Cloud Management helps users take actions
Who buys our products?
Big-ass enterprises…
like Sony, Samsung, EA Games,
Pearson Publishing, PBS, Zynga…
1. Connect to a cloud

2. We regularly collect data
3. Slice and dice the data
4. See historic trends
5. Forecast future costs based on patterns
Other considerations
Availability and disaster recovery
Performance vs. cost trade-off
Security and compliance
Socio-technical factors
…
Working in startups
Startups
 are
 fun
 
Startups

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Controlling cloud costs with analytics

  • 1. Controlling cloud costs with analytics   ® Ali Khajeh-Hosseini @AliKhajeh Nov 2013, Bristol University ®
  • 2. I’m here to talk about How cloud computing… is changing IT spending
  • 3. Jan 2009: Started PhD in St Andrews May ‘10: PlanForCloud v.1 ready Dec ‘11: Hassan quit his job and joined Feb ‘12: Launched PlanForCloud (v.2) May ‘12: Mountain View for YC interview 5min demo video filmed in my flat with poor lighting and a £10 poster
  • 4. Jul ‘12: Acquired by RightScale Nov ‘13: Launched Cloud Analytics (v.3)
  • 5. What the heck is… a cloud?
  • 13. Around 60 Staff 30 Megawatts = Perth (Scotland)! 140 Containers 2 = 4 ftbl pitches 38,500 m 360,000 Servers 500,000,000 Dollars h#p://www.microso/.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx    
  • 14. Cloud Computing   Focus of my talk   Software-as-a-Service Platform-as-a-Service Infrastructure-as-a-Service
  • 15. Why do companies care? Cloud computing has many benefits - Elasticity - Pay-per-use pricing ...
  • 16. Animoto’s crazy scale-out Scale-out from 50 to 4,000 servers in 3 days h#p://blog.rightscale.com/2008/04/23/animoto-­‐facebook-­‐scale-­‐up/  
  • 17. Capacity planning Images  taken  from  h#p://aws.amazon.com/economics/    
  • 18. Zynga’s Z-Cloud Launch new games on public clouds Move to private cloud when usage patterns are understood h#p://www.rightscale.com/customers/zynga-­‐grows-­‐to-­‐1-­‐social-­‐gaming-­‐site-­‐with-­‐rightscale.php   h#p://code.zynga.com/2012/02/the-­‐evoluKon-­‐of-­‐zcloud/  
  • 19. There are different purchase options - On-Demand: fixed rate - Reserved: pay upfront, lower rate - Spot: Bid how much you would pay - Discounts and consolidated bills
  • 20. AWS Reserved Instances up-front procurement to pay-per-use You have to specify: term (1/3 yr), utilization, availability zone, instance type and OS when buying a RI Image  taken  from  h#p://aws.typepad.com/aws/2011/12/reserved-­‐instance-­‐opKons-­‐for-­‐amazon-­‐ec2.html  
  • 21. AWS Reserved Instances Marketplace Buy and sell reservations
  • 22. AWS Spot Prices Bid for an instance, it’ll get switched on if bid >= spot price. You pay spot price, AWS sets it. h#p://www.cs.technion.ac.il/~ladypine/spotprice-­‐slides-­‐postmortem.pdf  
  • 23. Prices change (feels like there’s a price war between providers)
  • 24. Example: a MySQL Database AWS Relation Database Service (RDS) - Up-front reservation fee (optional) - CPU: $X/hour (based on instance type and cloud) - Storage: $X/GB/month - Transactions: $X/Millions of I/O ops - Provisioned IOPS: $X/IOPS/month (has other limitations) - Redundancy: double the CPU hourly rate - Data transfer: $X/GB (tiered across cloud)
  • 25. What the heck? I just wanted a simple database
  • 26. It’s starting to get interesting 1. Many clouds worldwide 2. Many pricing models 3. Markets for computing 4. RightScale helps move between clouds Cost optimisation
  • 27. The challenge Cloud spending is growing rapidly Cloud pricing is complicated… we scrape over 12,000 prices. Need to visualize, forecast and optimize cloud spend h#p://www.gartner.com/newsroom/id/2352816  
  • 28. Cloud Analytics helps users make decisions Cloud Management helps users take actions
  • 29. Who buys our products? Big-ass enterprises… like Sony, Samsung, EA Games, Pearson Publishing, PBS, Zynga…
  • 30. 1. Connect to a cloud 2. We regularly collect data
  • 31. 3. Slice and dice the data
  • 32. 4. See historic trends
  • 33. 5. Forecast future costs based on patterns
  • 34. Other considerations Availability and disaster recovery Performance vs. cost trade-off Security and compliance Socio-technical factors …
  • 37.  are
  • 38.  fun
  • 39.  
  • 41.  are
  • 43.  in
  • 46.  
  • 50.   - Design a new reporting section of the product; designers own the frontend code and we don’t use any frameworks like Bootstrap. - Update our AngularJS-based frontend to let users design their own custom dashboards. - Optimize our DataStore API to respond to within 5 seconds (Ruby, NewSQL backend). - Decipher AWS’ billing algorithms to make our cost estimation engine more accurate. - Develop a testing framework to verify data that’s gathered from major public and private clouds worldwide including AWS, Google Compute Engine, Microsoft Azure, Rackspace, and OpenStack. - Develop tools to start/stop our staging environment on AWS within a few minutes, find a replacement for Jenkins, and change our weekly releases to daily releases.
  • 56.  
  • 58.  
  • 59. Do you have an internship/job for me? PlanForCloud.com/jobs