AMSTERDAM
©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved
©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved
Manage Your Cost,
Govern Your Usage on AWS
Guy Kfir, Account Manager BeNeLux, AWS
Leon Backbier, ICT Manager, Endemol Shine Nederland
You’re using AWS.
BEST PRACTICES
Use Consolidated Billing1
Turn off underutilized or unused instances2
Use Reserved and Spot Instances3
Use managed services 4
Control who can provision resources5
Design for elasticity rather than deploy for peak6
Monitor your spend, create Billing Alerts7
LOWER COSTS WITH THE AWS CLOUD
Trade capital
expense for variable
expense
Save more money as
you grow bigger
Economies of scale
allow AWS to
continually lower costs
Pricing model
choice to support
variable & stable
workloads
Price reductions#49
Use Consolidated Billing
Company Master Account (“Payer” Account)
Operation A Division B Business Unit C Dev/TestDepartment Accounts
(“Linked” Accounts)
Consolidated Billing
Catalog WorkflowOrder
PipelineApplication (Tag) =
Cost Center (Tag) =
Department Accounts
(“Linked” Accounts)
General
LedgerInventory
3 way
match
Proxy
fleet
2222 3333 6600
Stack (Tag) = ProdJeroen Janneke Antoon
TAGS
1111 7784
Consolidated Billing & Tagging
Company Master Account (“Payer” Account)
Operation A Division B Business Unit C Dev/Test
Cost Allocation Report sample
Cost Explorer
Use Consolidated Billing to reflect your own cost structure, to benefit from volume
discounts and to share RIs across accounts
Use Cost Allocation tags to gain deeper granularity into your cost structure
As a minimum tag with Name, Owner, Cost Centre, Application, Environment
Use Cost Explorer to have customized visualization of your spend broken down by
services, tags, etc…
Consolidated Billing and tags are offered at no additional charge.
Storage fees may apply for storing the cost allocation .csv report (minor,
$0.0300/GB)
BEST PRACTICE
Turn off underutilized or
unused instances
Hours in a month*
*31 days month
Working hours
*31 days month, 23 business days, 9 hours per day
Only
Non working hours
*31 days month, 23 business days, 9 hours per day
Customer dev/test example
Monday Friday End of Vacation Season35% saved
How to Identify Underutilized
Instances?
AWS Trusted Advisor runs 100+ configuration
checks and recommends savings
AWS Trusted Advisor
Since 2013, customers have viewed over
2.6 million recommendations and realized
over $350 million in estimated cost
reductions.
Turn off underutilized instances – method #2
Locate underutilized instances using AWS Trusted Advisor or Amazon Cloudwatch.
and turn them off.
Amazon CloudWatch Basic Monitoring metrics for EC2 instances are with no
additional charge. 10 metrics, 10 alarms, and 1 million API requests each month at
no additional charge.
AWS Trusted Advisor service is available if you have business or enterprise
support.
BEST PRACTICE
Use Reserved and Spot Instances
Fit your payment model to your business model: EC2 pricing plans
On-Demand
Instances
Reserved
Instances
Spot
Instances
Pay as you go for computing
power
Flat hourly rate, no up-front
commitments
Pay an up-front fee for a
capacity reservation and a
lower hourly rate (up to 75%
savings)
1-year or 3-year terms
RI Marketplace: Buy RIs with
short remaining terms
Pay what you want for spare
EC2 capacity: your instances
run if your bid exceeds the
Spot price
Potential for large scale at
low cost: When they’re
available, take advantage of
1,000s of Spot Instances at
up to 90% savings
Savings potential
• 58%: 1-Year Reserved
Instances
• 75%: 3-Year Reserved
Instances
http://aws.amazon.com/ec2/pricing/
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance
AWS Trusted Advisor
identifies savings
attainable via
Reserved Instances
Amazon EC2 Instance Usage Report
Fit your payment model to your business model: EC2 pricing plans
On-Demand
Instances
Reserved
Instances
Spot
Instances
Pay as you go for computing
power
Flat hourly rate, no up-front
commitments
Pay an up-front fee for a
capacity reservation and a
lower hourly rate (up to 75%
savings)
1-year or 3-year terms
RI Marketplace: Buy RIs with
short remaining terms
Pay what you want for spare
EC2 capacity: your instances
run if your bid exceeds the
Spot price
Potential for large scale at
low cost: When they’re
available, take advantage of
1,000s of Spot Instances at
up to 90% savings
Use Amazon EC2 Reserved Instances if possible: get up to 75% savings +
capacity reservation
Consult AWS Trusted Advisor to identify reservations opportunities or use Amazon
EC2 Instance Usage Report
If not sure, start with the instances that are used 24/7
Use Spot Instances for stateless workloads - pricing starts at 90% off On Demand
AWS Trusted Advisor service is available if you have business or enterprise
support.
BEST PRACTICE
AWS’s higher-level
services automate
your work and save
time and money
CloudFront
DynamoDB
Amazon RDS
ElastiCache
Amazon Redshift
Amazon EMR
Amazon
Kinesis
Amazon
WorkSpaces
38
Cost optimization
by using AWS workspaces
Leon Backbier
Manager IT Endemol Shine Nederland
Amsterdam, 07 2015
Who We Are
Cost optimization by using AWS workspaces 39
Endemol Shine Group:
New joint venture bringing together Endemol, Shine and CORE Media,
Portfolio of international hits.
Creative operations in over 30 markets, portfolio of over 600 formats.
Across scripted and non-scripted genres, digital, gaming, and distribution.
Endemol IT challenge
Cost optimization by using AWS workspaces 40
Endemol IT couldn’t keep up with the business needs.
- More flexibility (Organization)
More flexibility and agility
Focus on applications & functional
improvements
Faster time to market
- Higher quality (Technical)
State of the art scalable IT
infrastructure
Unlimited scaling
Constant innovation
Availability
- Lower cost (Financial)
No more investments on hardware
Pay as we go / use
Lower risk no- upfront investments on hardware in case uncertain business projects
Clear allocation of IT cost to the business
Invest in functionality and talent, not in IT hardware
Why AWS Workspaces
Cost optimization by using AWS workspaces 41
Media productions are mainly driven by temporary employees
Change rate on personnel and media projects
On boarding and off- boarding is challenging and time consuming
Setup time for a new employee
Moving / dealing with hardware
BYOD
Just in time delivery
Cost allocation
Perfect fit
Architecture
Cost optimization by using AWS workspaces 42
EndemolHeadquarter
Internet
RemoteProductionLocation
AWS Direct Connect
VPN connection
Ireland
West-1a
Amazon Route 53 Amazon EC2 Amazon S3 Amazon Glacier AWS Storage Gateway Elastic Transcoder Amazon SES
West-1b West-1c
Workspaces
Amazon VPC Amazon SQS Amazon RDSAmazon EBSCloudFront
VPC peeringElastic Load Balancing IAM
RemoteProductionLocation
RemoteProductionLocation
Outcome
Cost optimization by using AWS workspaces 43
Cost savings 70% capex, 30% opex
No more unnecessary moving around, dealing with outdated hardware
or specific platform issues
Setup time: We are now talking about hours instead of days
Pay as we go / use
Lower risk no- upfront investments on hardware in case uncertain
business projects
Clear allocation of IT cost to the business
Invest in functionality and talent, not in IT hardware
L.H.M. (Leon) Backbier | Manager ICT | Endemol Shine Nederland Mob. +31651591408 | [email protected] | http://www.endemol.nl
Thank You!
Consider using higher level services, to take away time-consuming tasks, allowing
you to pursue higher value tasks
Consider Amazon Relational Database Service (RDS), that handles backups,
patch management, and replication for you.
Consult with Simple Monthly calculator to estimate your monthly costs
BEST PRACTICE
Control provisioning of
resources
Control who can
provision resources
Require
tagging
“No tags? No instance”
– Large financial services
customer in Boston
Control who can provision resources via AWS IAM
Once an instance is running, tag it.
Consider policy to stop instances without tags
Identity and Access Management offered at no additional charge. You will be
charged only for use of other AWS services by your users.
BEST PRACTICE
Design for elasticity
rather than deploy for
peak
Use Auto Scaling to
add resources when
needed, and turn them
off when not
Auto Scaling
00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00
100%
75%
58%
38%
13%
8%
On Demand Instance
Reserved Instance
Design to scale up and scale down using Auto Scaling
Use Auto Scaling to add resources when needed, and turn them off when not
Auto Scaling carries no additional fees. Amazon EC2 and Amazon CloudWatch
service fees apply and are billed separately.
BEST PRACTICE
Understanding your
spend
The Billing Console
The Billing Console Dashboard
Current Month’s Spend
• Previous month comparison
• Include/exclude subscriptions
- Reserved Instances
- Premium Support charges
Notification Center
• Status of Billing Alerts
• Alarm on spending
threshold
• Issues with payment methods
• Outstanding charges
• Free Tier eligibility
• General notices regarding
your account or bill
Mobile Support
• Dashboard looks nice on mobile devices
• Quick view on how you are trending
Monitor and Alert
Create billing alerts to be notified automatically via e-mail when estimated charges
reached a limit
Get familiar with the billing console, use it to monitor your spend
Use the mobile Application to monitor your spend on the go
you get 10 Amazon CloudWatch alarms and 1,000 Amazon SNS email notifications
per customer per month without additional charges
BEST PRACTICE
BEST PRACTICES
Use Consolidated Billing to share volume discounts/ RIs across accounts1
Turn off underutilized instances2
Use Reserved and Spot Instances to save up to 90% over on demand3
Use managed services to free you to pursue higher value tasks 4
Control who can provision resources5
Design for elasticity rather than deploy for peak6
Create billing alerts to be notified when estimated charges reached a limit7
AMSTERDAM
“With 3 years Reserved Instances
we’ve been able to reduce the cost
for active users from 20 cents to
less than 1”
We are using AWS Trusted Advisor to
improve cost efficiency and to audit
the configurations of service
platforms