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© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Joshua Burgin, General Manager EC2 Spot
Get the Most Out of Amazon EC2A Deep Dive on Reserved, On-Demand,
and Spot Purchasing Models
On-Demand
Pay for compute capacity
by the hour with no long-
term commitments
For spiky workloads,
or to define needs
Amazon EC2 Purchasing Options
Reserved
Make a commitment to
receive a significant discount
on the hourly charge and a
capacity commitment
For committed utilization and
capacity reservation
Spot
Bid for unused capacity,
charged at a Spot price
which fluctuates based
on supply and demand
For flexible, fault tolerant
or transient workloads
How is Cloud Compute Helping Enterprise?
Faster Time to ResultsAccess computing
infrastructure in minutes
Lower Total CostPay-as-you-go pricing
Elastic and PowerfulEasily add or remove capacity
Globally AccessibleEasily collaborate with
teams around the world
SecureA collection of tools to
protect data and privacy
ScalableAccess to effectively
limitless capacity
AWS Global Infrastructure
Region
Edge Location
Over 1 million active customers across 190 countries
800+ government agencies
3,000+ educational institutions
12 regions (2016: USA, Canada, India, UK)
33 Availability Zones
54 edge locations
Amazon EC2 Instance Types
• Micro (T2)
• General Purpose (M3, M4, T2)
• Compute Optimized (C3, C4)
• Storage Optimized (I2, D2)
• GPU Optimized (G2)
• Memory Optimized (R3, X1*)
Instances to suit your application needs
*We expect to have the X1 available in the first half of 2016
EC2 Can Help Strengthen Your Security Posture
Get native functionality and tools at
no additional charge
Over 30 global compliance
certifications and accreditations
Leverage security enhancements gleaned
from 1M+ customer experiences
Benefit from AWS industry leading
security teams 24/7, 365 days a year
Security infrastructure built to
satisfy military, global banks, and other
high-sensitivity organizations
More Accreditations & Certifications Than Anyone
ISO 9001
SOC 3
SOC 2
ISO 27001
ISO 27017
PCI DSS Level 1ISO 27018
SOC 1 / ISAE 3402
GxPHIPAA
ITAR
FERPA
FISMA, RMF, and DIACAP
FedRAMP
Section 508 / VPAT
DoD SRG Levels 2 & 4
FIPS 140-2
CJIS
Cloud Security Alliance
MPAA
NIST
MLPS Level 3
G-Cloud
IT-Grundschutz
MTCS Tier 3
IRAP Cyber Essentials Plus
The Forrester Wave™: Public Cloud Platform Service Providers' Security, Q4 2014
The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester
Research, Inc. The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a
detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or
service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time
and are subject to change.
“We work closely with AWS to developa security model, which we believe enables us
to operate more securely in the public cloud than we can in our own data centers.”
Rob Alexander - CIO, Capital One
Pillars of Performance and Cost Optimization
Right sizing Purchasing options
Increase elasticity
Measure, monitor, &
Improve
Right Sizing
Right Sizing
• Selecting the cheapest instance available while meeting performance requirements
• Looks at CPU, RAM, storage, and network utilization to identify potential instances that can be downsized
Increase Elasticity
Turn off non-production instances
• Look for dev/test, non-prod instances that are running always-on and turn off
Autoscale Production
• Use Auto Scaling to scale up and down based on demand and usage (e.g., spikes)
Measure, Monitor, & Improve - Uncover the Cost Optimization Opportunities
• Auto-tag resources
• Identify ‘always on’ Non Prod
• Identify instances to down-size
• Recommend RIs to purchase
• Dashboard our status
• Report on savings
AWS Pricing Principles
Pay as you go
Pay less by using more
Pay less when you reserve
Pay less when AWS grows
No up-front investment
Pay per use
We completed the equivalent of
thirty-nine years of computational
chemistry in just under 9 hours for
a cost of around $4200.
Steve Litster
Global Head of Scientific Computing, Novartis
”
“
Novartis: Acceleration of pre-clinical R&D
• Existing infrastructure to screen10 million
compounds in a computational model not
available
• New infrastructure would have cost
approximately $40 million to build
Novartis used AWS for HPC computational
chemistry
Reserved Instance Details
Options• No upfront
• Partial upfront
• All upfront
Commitment Level• 1 Year
• 3 Year
• RI Marketplace
* Dependent on specific AWS service, size/type, and region
EC2 Spot Pricing
Users with urgent
computing needs or
large amounts of
additional capacity
Time or instance
flexible
Experiment and/or
build cost sensitive
businesses
Options• Spot Fleet to maintain instance
availability
• Spot Block durations (1-6 hours) for workloads that must run continuously
Commitment level• None
* Compared to On Demand price based on specific EC2 instance type, region, and Availability Zone
Spot Instance Details
Spot RulesMarkets where the price of compute changes based on supply and demand
You’ll never pay more than your bid.
50% bidof OD
75% bid of OD
25% bidof OD
You pay the
market price
87% discount!
ironSource + Amazon AWS EC2 Spot - Case Study Video Linked Here
Use a Combination of All Three!
1. Use Reserved Instances for known/steady-state workloads
2. Set up multiple scaling groups
3. Scale using Spot, On-Demand, or both
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/Spot Instances
On DemandSpotReserved Instance
Tagging is essential!
• How do we explain the costs?
• How do we allocate the charges to the right team?
• How do we save money?
Stateless
Scale based on demand
Web Tier
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Web Servers
Reserved Spot On-Demand
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Web Traffic
App TierStateful
Scale based on demand
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App Requests
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App Servers
Reserved On-Demand Spot block
Database TierHighly stateful
Static at peak load
0
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900
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Database Requests
0
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Database Servers
Reserved On-Demand Spot
Summary – 3 tier web app
0
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3 Tier Application Servers
Reserved On-Demand Spot
Summary
Have a balanced meal! Across the three tiers, our meal consists of:
• Spot 13%• On-Demand 11%• Reserved 76%
Remember!
“No server is easier to manage than no server” -Werner Vogels, CTO, Amazon.com.
Ubisoft uses AWS to develop and launch social games quickly
• Ubisoft is a Paris-based gaming company, and creator of
popular gaming titles, including Assassins Creed, Far Cry,
and Just Dance
• Moving games to social and mobile platforms and needed
capacity to scale fast; using a traditional environment
would be an extensive and costly investment
• Using the AWS Cloud to optimize games at the application,
caching, and data layers, improving the user experience
”
“By using the AWS cloud we
were able to launch 10 social
games within 18 months.
Lenin Gali
Senior Director, Ubisoft
The Old Way: Low Utilization, High Costs
Time
Typical server utilization rates are low due to need to deploy for peak needs…
Time
The Old Way: Managing Utilization with GridsHigher grid utilization rates result in hidden costs: longer queue wait times,
and delayed results
The World as Seen by Central ITHigher utilization can reduce IT spending…
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Grid Utilization
The World as Seen by the BusinessBut higher utilization also creates IT constraints…
Every job in the
queue represents
business impact
But grid utilization
looks great!
-600%
-500%
-400%
-300%
-200%
-100%
0%
100%
0
200
400
600
800
1000
1200
1400
Jobs in the Queue
Grid Utilization
Reduced Time
The Cloud Way: Scalability When Needed
Project
Acceleration
Scale higher to reduce time-to-results: shorter wait times, greater agility,
faster innovation cycles
The New Way: In the Cloud!
?0
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Optimizing for cost and business results
3 year Reserved Instances On-Demand Spot
The New Way: In the Cloud!
?0
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Going a step further with Spot blocks!
3 year Reserved Instances On-Demand Spot block Spot
“We constantly understate what our capabilities are to solve problems. The
biggest constraint is never the constraint of time or money, it’s generally the constraint of thought.”
– Jeff Smith, CEO, Suncorp Business Services
Founded: 1996 • Employees: 15,000+ • Headquarters: Brisbane, Australia
Accelerating Transformation
Different Purchasing Options in a Single Company
Data Science
New app development Test and Development
Internal IT
Let’s Recap
Remember the pillars of optimizationRight sizing
Increase elasticity (turn stuff off!)
Measure, monitor, and improve
Use tags to understand your services
There are 3 core purchasing options – have a balanced meal!
Architect your workloads with performance and cost in mind
Summary
Freedom to build
unfettered
Freedom to get real
value from dataFreedom to say yes
AWS is more cost-effective than on-premises environments in both short term
and long term. By leveraging the EC2 consumption models, you gain the…