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Cloud Managed Services | Cloud Cost Optimization | Teleglobal International

We have also observed that a number of companies significantly overspend on their cloud infra. TeleGlobal International can help uncover unused or underused resources, leverage the lowest price regions and instance types while shutting down workloads that donu2019t need to run 24x7, this cutting cost by up to 30%. As an initial step, we can perform an audit to monitor the health of your cloud or on-premise infrastructure and identify areas of improvement.

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Cloud Managed Services | Cloud Cost Optimization | Teleglobal International

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  1. Cloud Optimisation

  2. Agenda 1 The AWS Difference 2 Total Cost of Ownership 3 Addressing TCO in AWS 4 Cost Optimisation 5 Cost-Conscious Design 6 What next?

  3. The AWSDifference

  4. What sets AWSapart? Experience Building and managing cloud since 2006 Service Breadth & Depth 90+ services to support any cloud workload Global Footprint 186 regions, 54 availability zones, 114 edge locations 65 proactive price reductions to date (as of 03/2018) Pricing Philosophy 10,000’s of partners; 4,000+ Marketplace products Community

  5. Why choose AWS? Traditional Infrastructure AWS Cloud Resourcesand Administration No Up FrontExpense Pay for what you Use Improve Timeto Market &Agility Equipment Scale Up and Down Self-Service Infrastructure Contracts Cost

  6. Global Infrastructure 18 Regions 114 Edge Locations 54 AZs Region & No. of AvailabilityZones New Region (comingsoon)

  7. Total Cost of Ownership

  8. What is TCO? Comparative Total Cost of Ownership analysis (acquisition and operating costs) for running an infrastructure environment end-to-end on-premises vs.AWS

  9. Why use TCO? 1. Comparing the costs of running an entire infrastructure environment or specific workload on premises or in a co-location facility versus onAWS. 2. Budgeting and building the business case for moving to cloud 3. Paralleling an existing AWS workload with an on premises or co-location setup

  10. Typical TCOConsiderations Software - OS, Virtualization Licenses (+Maintenance) Hardware – Server,Rack Chassis PDUs,ToR Switches (+Maintenance) FacilitiesCost 1 Server Costs Space Power Cooling FacilitiesCost Hardware – Storage Disks, SAN/FC Switches 2 Storage Costs Software - Backup BusinessValue: Space Power Cooling Cost of delays Risk premium Competitiveabilities Governance Etc. Network Hardware – LAN Switches, Load Balancer Bandwidth costs FacilitiesCost Software –Network Monitoring 3 NetworkCosts Cooling Space Power Server Admin, Virtualization Admin, Storage Admin, Network Admin, Support Team 4 IT LaborCosts Project planning, Advisors, Legal, Contractors, Managed Services, Training, Cost of capital 5 Extras Diagram doesn’t include every cost item. E.g. software costs can include database, management, middle tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.

  11. TCO for On-premises vAWS ≠ Traditional Data Centre & Co-Location Comparing TCO isn’t easy

  12. What’s included in a typicalTCO? Economic Criteria Category Infrastructure Comparison Capacity Planning Benefits Financial Benefits of Innovation Cost Avoidance Workforce Productivity Accelerated Time ToValue/Market Cost to Achieve (Migration, Platform, Training) Legacy Constraints Partially Included Included Not Included

  13. Why is on-premises sounder-utilised? Part of this can be explained by buying for “peak load” requirements with inflexibleinfrastructure Fluctuating/“Spiky” Cyclical Part-time Peak Peak Peak

  14. Initial questions to consider when exploringTCO 1 How do you plan forcapacity? How many servers have you added in the past year? Anticipating next year? Can you switch your hardware on and off and only pay for what is used? Capacity Planning 2 What is your average serverutilisation? How much do you overprovision for peakload? Utilization 3 Will you run out of data center space some time in thefuture? What was your last year power utility bill for the DataCenter(s)? Have you budgeted for both average and peak powerrequirements? Operations 4 Are you on AWStoday? Are you cost-optimised (Auto Scaling, RIs, Spot, Instances turnon/off)? Optimisation

  15. Addressing TCO inAWS

  16. How do customers lower their TCO withAWS? 1 2 3 4 Remove over provisioning and move to a “payfor what you use”model Economies of scale allow AWS tocontinually lowercosts Pricing model choice to support variable & stable workloads Save more money as you growbigger “Customers will have spent 63.4% more on average on-prem or in co-location” Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.”December 2013

  17. Traditional approaches to capacitymanagement Build to peakload Build to averageload

  18. Lower over-provisioning via elasticity Auto Scaling allows youto: • React dynamically tochanges inload • Schedule regularworkloads • Optimise your instanceusage • Reduce over-provisioning • Freeservice!

  19. AWS Economies of Scale Continually lowering prices for customers is in ourDNA Reduced Reduced Prices Prices InfrastructureInnovation More Customers LowerCosts Community Global Footprint New Features &Services Economies ofScale MoreAWS Usage We pass the savings along to our customers in the form of low prices and continuous reductions More Kit (65 reductionsto-date)

  20. Amazon EC2 PricingModels On-demand Reserved Spot

  21. When to use Reserved Instances?

  22. Amazon EC2 ReservedInstances Commitmentlevel 1year 3year AWS services offeringRIs Amazon EC2 Amazon RDS AmazonDynamoDB Amazon Redshift AmazonElastiCache * Dependent on specific AWS service, size/type, andregion

  23. Amazon EC2 SpotInstances Allow you to bid on spare Amazon EC2 computing capacity for up to 90% off the normal On-Demandprice. Applications that have flexiblestart and endtimes Applications that are only feasible at very lowcomputeprices Users with urgent computing needsfor large amounts of additionalcapacity

  24. With spot, the rules aresimple Markets where the price of compute changes based on supply and demand You’ll never pay more than your bid - when the market exceeds your bid you get 2 minutes to wrap up your work

  25. Volume Tiered PricingDiscounts First 50TB permonth Over 500TB permonth Next 450TB permonth 0.024GB/month 0.023GB/month 0.022GB/month

  26. Cost Optimisation

  27. Modelling Cost Optimisation On- Lift& Shift Instance Right-Sizing Improved Elasticity Storage Optimization OptimisedLift andShift Measure Monitorand Improve Serverless Architecture Managed Services Replatformed, AWSOptimised Premises Traditional TCOComparisons

  28. Five Pillars of CostOptimisation IncreaseElasticity Pick theRight PricingModel Right-SizingYour Instances Match usageto storageclass Measuring& Monitoring

  29. Right-sizing instances Selecting the cheapest instance available while meeting performancerequirements Look at CPU, RAM, storage, and network utilisation to identify potential instances that can bedownsized Leveraging Amazon CloudWatch metrics andsetting up custom RAMmetrics Rule of thumb: Right size, then reserve. (But if you’re in a pinch, reserve first.)

  30. Right-sizing & elasticity to reducecost More smaller instances vs. fewer largerinstances 29 m5.large @ $0.111/hr $2,349.87 / mo* 59 t2.medium @$0.052/hr $2,239.64 / mo* *Assumes Linux instances in the EU (London) Region at 730 hours permonth

  31. Match usage to storageclasses Amazon S3 Designed to store and access any type of dataover theInternet AWS StorageGateway Seamlessly links your on-premises environment to Amazon cloudstorage Amazon Glacier Low-cost and highly durable storage service for long-term backup and archive of any type of data Amazon Elastic File System Simple, scalable file storage for use with Amazon EC2 instances in the AWSCloud Amazon CloudFront Amazon CloudFront is a globalcontent delivery network (CDN)service Amazon Elastic BlockStorage Block-level storage that serves as a virtual hard drive for your Amazon EC2instance

  32. Serverless Architecture NoServer Management Flexible Scaling High NoIdle Capacity Availability

  33. Measure, monitor andimprove

  34. Amazon CloudWatch Monitor AWSResources SetAlarms Monitor CustomMetrics View Graphsand Statistics Monitor and Reactto ResourceChanges

  35. Metrics & Targets Set up metrics to define success and trackprogress % Instances turned offdaily % of Instancesright-sized % Always-on Resources covered byRIs % RIutilization ✔✔ ✔✔ What KPI makes sense for thisworkload?

  36. AWS Trusted Advisor

  37. AWS Cost Explorer

  38. Cost Conscious Design

  39. Cost Conscious Design Example: Should I use Amazon S3 or AmazonDynamoDB? AWSSimple Monthly Calculator https://calculator.s3.amazonaws.com/index.html

  40. Amazon S3 or AmazonDynamoDB Request rate (Writes/sec) Objectsize (Bytes) Totalsize (GB/month) Objects per month 300 2,048 1,483 777,600,000

  41. Amazon S3 or AmazonDynamoDB Requestrate (Writes/sec) Objectsize (Bytes) Total size (GB/month) Objects per month 300 2,048 1,483 777,600,000

  42. Amazon S3 or AmazonDynamoDB “…but what happens if I change the object size to 32KB?” Requestrate (Writes/sec) Objectsize (Bytes) Total size (GB/month) Objects per month 300 32,768 23,730 777,600,000

  43. Amazon S3 or AmazonDynamoDB Requestrate (Writes/sec) Objectsize (Bytes) Total size (GB/month) Objectsper month 300 32,768 23,730 777,600,000

  44. Amazon S3 or AmazonDynamoDB Totalsize Request rate (Writes/sec) Objectsize (Bytes) Objects permonth (GB/month) Scenario1 300 2,048 1,483 777,600,000 Scenario2 300 32,768 23,730 777,600,000 use use

  45. What Next?

  46. What benefits do I get by moving toAWS? Trade capital expense for variable expense Increase speed and agility, reduce time-to-market Benefit from massive economies of scale Focus money on product development, not data centres Go global inminutes Stop guessingcapacity

  47. And for existing customers: a call toaction! What benefits could I get from using reserved instances? How manyof my instances need to be running 24x7? How many instancesare configured for auto- scaling? How many instances could I right-size?

  48. Useful Resources AWSPricing  https://aws.amazon.com/pricing/ Online TCOCalculator:  https://awstcocalculator.com AWS Cloud EconomicsCentre:  https://aws.amazon.com/economics/

  49. Thank you!

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