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COST OPTIMIZATION
Ianni Vamvadelis Solutions Architect
Multiple dimensions of optimization
Cost Performance Response time Time to market High-availability Scalability Security Manageability …….
Elastic Capacity
Elasticity is a fundamental property of the cloud that drives many of its economic benefits
When you turn off your cloud resources, you actually stop paying for them
6 am
10 am
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Web
Serv
ers
Hour
25% Savings
during a day
Availability Zone #2
Availability Zone #1
Auto Scaling group : App Tier
Auto Scaling group : Web Tier
Elastic Load
Balancer
www.MyWebSite.com
(dynamic data)
media.MyWebSite.com
(static content,
streaming media)
Amazon Route 53
(DNS)
Amazon EC2
Amazon RDS Amazon
RDS
Amazon S3
Amazon
CloudFront
Auto scaling options
Scaling base on Policy
Scale up and down base on metrics
Scaling Up policy - Double the group size if avg cpu > 80%
Scaling Down policy - Decrement by 10% if avg cpu < 30%
Scaling by Schedule
Scheduled Actions to meet known demand
Scheduled up to 31 days into the future
Recurring scheduled scaling activities.
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Web
Serv
ers
Days of the Month
75% Savings
during a month
Instance Types
On Demand
Choosing an Instance Type
Start with the EC2 instance type that best matches
memory requirements
virtual cores
Tune your instance type to optimise for cost
No need to get it right first time
Run across AZs
Smaller sizes give more granularity for deploying across AZs
Knowing your usage
Instance
Amazon CloudWatch Alarm
Free Memory
Free CPU
Free HDD
At 1-min
intervals
Custom Metrics
PUT 2 weeks
Horizontal Scaling
and
Vertical Scaling
Reserved Instances
Optimize by using Reserved Instances
Heavy Utilization RI
Medium Utilization RI
Light Utilization RI
1-year and 3-year terms
On-demand Instances
• Pay as you go
• Starts from $0.025/Hour
Reserved Instances
• One time low upfront fee + lower hourly cost
• $23 for 1 year term and $0.015/Hour
Spot Instances
• Requested Bid Price and Pay as you go
• $0.005/Hour as of today at 9 AM
Light Utilization RI
15-40% utilization
Lower costs up to 34%
Use Cases: Disaster Recovery, Weekly / Monthly reporting, Elastic Map Reduce
Medium Utilization RI
41-79% utilization
Lower costs up to 49%
Use Cases: Web applications, many heavy processing tasks, running much of the time
Heavy Utilization RI
> 80% utilization
Lower costs up to 58%
Use Cases: Databases, Large Scale HPC, Always-on infrastructure, Baseline
Best RI for Utilisation
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
Heavy
Medium
Light
O-Demand
Optimizing Cost with RIs
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On Demand
Light Utilization RI
Medium Utilization RI
Heavy utilization RI
http://aws.amazon.com/whitepapers
Spot Instances Bid on unused Amazon EC2 capacity.
Optimize by using Spot Instances
On-demand Instances
• Pay as you go
• Starts from $0.025/Hour
Reserved Instances
• One time low upfront fee + Pay as you go
• $23 for 1 year term and $0.015/Hour
Spot Instances
• Requested Bid Price and Pay as you go
• $0.005/Hour as of today at 9 AM
What are Spot Instances?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Sold at 50% Discount!
Sold at 56% Discount!
Sold at 66% Discount!
Sold at 59% Discount!
Sold at 54% Discount!
Sold at 63% Discount!
What is the tradeoff?
Availability Zone
Region
Availability Zone
Unused
Unused
Unused
Unused
Unused
Unused
Reclaimed
Reclaimed
Architecting for Spot Instances
Decouple Components
Separate interactive and backend processing
Design for interruption
Use SQS, SWF
data in a durable store
save progress regularly
Use Cases for Spot
Analytics Financial Modelling
and Analysis
Media Encoding Geospatial Analysis
Testing Scientific Computing
Web Crawling Big Data
#1: Cost without Spot 4 instances *14 hrs * $0.50 = $28
Job Flow
14 Hours
Duration:
EMR with Spot Instances
#2: Cost with Spot 4 instances *7 hrs * $0.50 = $14 +
5 instances * 7 hrs * $0.25 = $8.75
Total = $22.75
Scenario #1
Duration:
Job Flow
7 Hours
Scenario #2
Time Savings: 50%
Cost Savings: ~22%
Bidding Strategies
Strategy: Optimize for Cost
Engineered application towards a cost
Set low maximum bid price to minimize costs
Comfortable if process takes longer or jobs were re-run
When interrupted, no charge for that hour.
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Strategy: Price History Momentum
Monitor spot market price
Bid 10% above Average Spot Price of the Last Hour
Maximum bid of 80% of On-Demand Price
Expect fewer interruptions than Optimize for Cost
Strategy: Price History Momentum
Strategy: Discount over On-Demand
Bid around the On-Demand price
Use On-Demand instance when Spot Price exceeds On-Demand price (or slightly higher)
May pay more some hours, but on average they pay significantly less
This bidding strategy ensures a discount over On-Demand
Strategy: Discount over On-Demand
Switch to
On-Demand Switch Back
to Spot
Substantial
Savings
Much lower
costs than
On-Demand
Strategy: Minimize Interruption
~57%
Savings
On Average
Substantial
Savings
Complementary
services
Web Servers
$0.095 per hour
(small instance)
Availability Zone
$0.028 per hour
Web Servers
Availability Zone
EC2 instance
+ software LB
Elastic Load
Balancer DNS
DNS
Producer
SQS queue
Consumers
Consumers
Producer
EC2 instance
+ software queue
$0.01 per
10,000 Requests ($0.000001 per Request)
$0.095 per hour
(small instance)
Software v/s Services
SNS, SQS, SES
Pros
• Pay as you go
• Scalability
• Availability
• High performance
Software on EC2
Pros
• Custom features
Cons
• Requires an instance
• SPOF
• Limited to one AZ
• DIY administration
1. Elastic Capacity
2. Instance Types
3. Reserved Instances
4. Spot Instances
5. Complementary services
aws.amazon.com/economics
aws.amazon.com/calculator
Next Steps:
THANK YOU
