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Modifying Your AWS Reserved Instances

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Introduction

Today’s Topics1. Understanding RIs

2. Understanding Modifications

3. Practical Examples

4. Modification Strategies

Aaron Kaffen Director of Marketing

TODAY’S SPEAKER

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Poll

Is your company currently modifying reservations?

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Infrastructure analytics for scaled web businesses and enterprises.

Cloud Infrastructure AnalyticsAbout Us

$1.5B+ in tracked cloud costs. 14,000+ Users

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Our SolutionHow It Works

1 2 3

4 5

Spend Management Spending visibility via monthly forecasts, dash-board, budget alerts, and daily email digests.

Cost Analytics Dig into your operating costs with detailed costs by tag, service, and usage type.

EC2 Usage Analytics Spot under-utilized resources w/ instance level usage metrics.

RI Purchase Analytics Understand the exact combination of Reserved Instances that will maximize your savings.

Enterprise Enablement Organizational group views/filtering/rollups, multi-user access.

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Stage I: Cost visibility for all (emails, alerts, dashboards)

Stage II: Allocating costs to departments (tags, linked accounts)

Stage III: Using only what you need (underutilized, unneeded)

Stage IV: Lowering Cost Per Hour (i.e. Reserved Instances)

Stage V: Tying spending to the bottom line (unit cost)

The Five Stages of Cloud EfficiencyCloudability

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Stage I: Cost visibility for all (emails, alerts, dashboards)

Stage II: Allocating costs to departments (tags, linked accounts)

Stage III: Using only what you need (underutilized, unneeded)

Stage IV: Lowering Cost Per Hour (i.e. Reserved Instances)

Stage V: Tying spending to the bottom line (unit cost)

The Five Stages of Cloud EfficiencyCloudability

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Why Modify?

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Reservations represent sunk cost. Modifications let you move those reservations to maximize savings as your infrastructure changes

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RI Modifications - Save $100k+

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Why Modify?

RI Modification Cycle

Infrastructure Changes

RI Modifications

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Understanding Reservations

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Understanding Reservations

What Makes Up a ReservationReserve a particular type of infrastructure:

Instance Family Size OS Location

m1 large Linux us-east-1a

r3 8xlarge RHEL us-west-2b

1 year 3 yearOR

light medium heavyOR OR

For a particular time:

With an expected usage level

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Understanding Reservations

What Makes Up a ReservationReserve a particular type of infrastructure:

Instance Family Size OS Location

m1 large Linux us-east-1a

r3 8xlarge RHEL us-west-2b

1 year 3 yearOR

all upfront

partial upfront

no upfrontOR OR

Instance class

Term

RI type

For a particular time:

With a payment type

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Reservations are applied each hour

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Reservations have two parts

Cost Savings Capacity Reservation

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

RI

RI

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

$ c

$ c

$ csavings capacity

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

$ c

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

$

c

$

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t RI

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Understanding Reservations

Reservations in Linked Accounts

Master Payer

Linked Acc’t

Linked Acc’t

$

$

c

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Understanding Modifications

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Understanding Modifications

What can you modify?

Reservations for instances running Linux … ๏ Instance size (within a family) ๏ Availability zone (within a region) ๏ Network (VPC or Classic)

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Understanding Modifications

About Availability Zones

Region Code Region Name

ap-northeast-1 Asia Pacific (Tokyo) Region

ap-southeast-1 Asia Pacific (Singapore) Region

ap-southeast-2 Asia Pacific (Sydney) Region

eu-west-1 EU (Ireland) Region

sa-east-1 South America (Sao Paulo) Region

us-east-1 US East (Northern Virginia) Region

us-west-1 US West (Northern California) Region

us-west-2 US West (Oregon) Region

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Understanding Modifications

What can you modify?

For instances running Linux … ๏ Instance type (within a family) ๏ Availability zone (within a region) ๏ Network (VPC or Classic)

For instances running a licensed OS or without a family … ๏ Availability zone (within a region) ๏ Network (VPC or Classic)

Reservations cannot be moved between accounts

We Are FamilyM1* M2* M3 C1* C3 C4 R3 i2 t2

smallmedium

largexlarge

xlarge2xlarge4xlarge

mediumlargexlarge

2xlarge

mediumxlarge

largexlarge

2xlarge4xlarge8xlarge

largexlarge

2xlarge4xlarge8xlarge

largexlarge

2xlarge4xlarge8xlarge

xlarge2xlarge4xlarge8xlarge

microsmall

medium

* LEGACY FAMILY

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Understanding Modifications

Instance types without a family

• t1.micro

• cc1.4xlarge

• cc2.8xlarge

• cg1.8xlarge

• cr1.8xlarge

• hi1.4xlarge

• hs1.8xlarge

• g2.2xlarge

Modifying Instance TypeInstance Size Normalization Factor

micro 0.5

small 1

medium 2

large 4

xlarge 8

2xlarge 16

4xlarge 32

8xlarge 64

2xlarge

Modifying Instance Type

=16 PTS

2xlarge

xlarge xlarge

Modifying Instance Type

168 8+ =

2xlarge

xlarge xlarge

large large large large

Modifying Instance Type

medium medium medium medium medium medium medium medium

2xlarge

xlarge xlarge

large large large large

Modifying Instance Type

small small small small small small small small small small small small small small small small

medium medium medium medium medium medium medium medium

2xlarge

xlarge xlarge

large large large large

Modifying Instance Type

small small small small small small small small small small small small small small small small

medium medium medium medium medium medium medium medium

2xlarge

xlarge xlarge

large large large large

Modifying Instance Type

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Understanding Modifications

Follow the money

Instance Type On-Demand Hourly Rate

m3.medium $0.070 per Hour

m3.large $0.140 per Hour

m3.xlarge $0.280 per Hour

m3.2xlarge $0.560 per Hour

2x

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Understanding Modifications

Follow the money

๏ There is no cost for modifications as instance types within a family are equally divisible

๏ After a modification your original reservation is retired, and “new” reservations are created with the same end date

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Modifications do not happen automatically

Your reservation will retired and NEW reservations created

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Put it into practice!

(demo time)

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Modification Recommendations

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Modification Recommendations

Recap

๏ Only reservations for instances with Linux OS can have instance type modified

๏ All reservations can be modified for Availability Zone and Network

๏ Reservations cannot be moved between accounts

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Modification Recommendations

Strategy

๏ Modifications help align RIs to infrastructure and de-risk RI purchases for instances in a family

๏ First check if existing RIs apply to instances in other accounts if capacity is not a concern

๏ Optimize modifications around: - Moving reservations to a different AZ

- Merging smaller instances into larger instances

- As a last step break reservations apart

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Thank You!

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