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Understanding cloud 
costs with analytics 
Ali Khajeh-Hosseini 
@AliKhajeh 
Nov 2014, Bristol University 
® 
®
What is a cloud?
Server
Rack
Container
2500 
Servers 
Electricity, Water, Internet
Understanding cloud costs with analytics
Understanding cloud costs with analytics
Taken from one of Dave Cliff ’s talk on Cloud Computing
a cloud
Scale of operations 
Around 60 Staff 
30 Megawatts = Perth (Scotland)! 
38,500 m2 = 4 ftbl pitches 
Microsoft has >1M servers 
h#p://web.archive.org/web/20120224062157/h#p://www.microso;.com/Presspass/emea/presscentre/pressreleases/February2012/23-­‐02DublinDataCentre.mspx 
h#p://news.microso;.com/speeches/steve-­‐ballmer-­‐worldwide-­‐partner-­‐conference-­‐2013-­‐keynote/
Why do companies care? 
Many benefits 
- Elasticity & pay-per-use-pricing 
- On-demand computing 
...
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-­‐evoluNon-­‐of-­‐zcloud/
There are different 
public cloud pricing models 
Rackspace 
IBM SoftLayer 
HP 
…
Amazon Web Services 
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-­‐opNons-­‐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
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
Google’s sustained usage model 
Automatically lower the price of your virtual machines when 
you use them to run sustained workloads 
Images 
taken 
from 
h#ps://cloud.google.com/compute/pricing#sustained_use
Let’s play Tetris 
Images 
taken 
from 
h#p://googlecloudplaRorm.blogspot.co.uk/2014/04/introducing-­‐sustained-­‐use-­‐discounts.html
The challenge 
Cloud spending is growing rapidly 
Cloud pricing is complicated… 
we scrape over 12,000 prices. 
Need to monitor, allocate, forecast & optimize costs 
h#p://www.gartner.com/newsroom/id/2352816
The story so far… 
Jan 2009: Started researching cloud cost forecasting in St Andrews 
Dec ‘11: With Hassan, we launched PlanForCloud 
Jul ‘12: Acquired by RightScale 
Nov ‘13: Launched Private-Beta of Cloud Analytics 
Mar ‘14: Cloud Analytics goes into Public-Beta 
Oct ‘14: Cloud Analytics is Generally Available
Connect to a cloud 
We regularly collect data
Slice and dice the data
See historic trends
Forecast costs based on 
switching clouds or 
increased growth
Who buys our products? 
Enterprises like 
Sony, EA Games, PBS, 
Pearson Publishing, Zynga…
Some
 things
 to
 look
  
for
 when
 looking
 for
  
internships
 or

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Understanding cloud costs with analytics