• Google’s approach to cloud pricing • Ways to save money on Google • New Committed Use Discounts • Real-World Examples
• AWS Reserved Instances vs. Google Committed Use • Preemptible Virtual Machines • Custom VMs
•Q&A
Agenda
Self-Estimated
Wasted Spend
Additional Wasted
Spend Typically
Found by RightScale
30-45% of Cloud Spend Is Wasted
Source: RightScale 2017 State of the Cloud Report
The Three Biggest Areas for Waste
Not Leveraging Discounts
Running Dev Instances 24x7
Oversized Instances
• We know we can save with RIs, BUT: • We have underutilized instances that I need to downsize
• We are moving to Docker and that will change what I need
• We have dev instances that are changing all the time
• We need to re-architect that system
• We may need to change our instance families
• There may be new instance types coming
• …and more
The “Yeah, Buts” of Reserved Instances
Your Reality Is Constant Change
2 vCPU 4 GB
8 vCPU 8 GB
Now
2 vCPU 4 GB
2 vCPU 8 GB
2 vCPU 8 GB
2 vCPU 4 GB
4 vCPU 8 GB
Future
2 vCPU 4 GB
2 vCPU 8 GB
1 vCPU 4 GB
1 vCPU 4 GB
2 vCPU 4 GB
2 vCPU 4 GB
Example Usage/Cost Pattern
Production and 24x7 dev usage
Weekday dev usage
* Data from real (anonymous) customer use cases
90%** coverage of steady-state for Convertible RIs
Example: Reserved Instances AWS
*65% coverage provides for flexibility to change VM families and sizes used over time.
65%* coverage of steady-state for Standard RIs
**Ability to change VM families and sizes enables higher coverage.
Example: Google Pricing
*Ability to automatically change VM families and sizes enables higher coverage.
*90% Committed Use Discount coverage of steady-state
Sustained Use Discount coverage
AWS Customer Example with RIs
Applied Rate Monthly Hours Monthly Spend % Savings
RI (1 Yr Standard, No upfront) 65% coverage
650,000 $41,800 31%
On-Demand 350,000 $37,800 0%
Total 1,000,000 $85,900 21%
RI (3 year Standard, Partial upfront) 65% coverage
650,000 $27,950 60%
On-Demand 350,000 $37,800 0%
Total 1,000,000 $65,750 39%
RI (3 year Convertible, No upfront) 90% coverage
900,000 $60,300 38%
On-Demand 100,000 $10,800 0%
Total 1,000,000 $71,100 34%
*Assumes all m4.large
Applied Rate Monthly Hours Monthly Spend % Savings
Committed Use (1 year, no upfront) 90% coverage
900,000 $53,865 37%
Sustained Use (100% usage level) 50,000 $3,325 30%
Sustained Use (25-50% usage level) 25,000 $1,900 20%
On-Demand 25,000 $2,375 0%
Total Spend 1,000,000 $61,465 35%
Committed Use (3 year, no upfront) 90% coverage
900,000 $38,475 55%
Sustained Use (100% usage level) 50,000 $3,325 30%
Sustained Use (25-50% usage level) 25,000 $1,900 20%
On-Demand 25,000 $2,375 0%
Total Spend 1,000,000 $46,075 52%
GCP Customer Example with Discounts
*Assumes all n1-standard-2 = $.095/hr
28% less than AWS 1 yr
Standard RIs
35% less than AWS 3 yr
Convertible RIs
Development Environment Usage Hours
Mon Tue
Wed Thu Fri Sat Sun
00:00
11:59
24x7 168 hours
12x5 60 hours
35%
Sustained only
Committed + Sustained
50/50 Committed + PVM
100% PVM
Monthly Spend $67,450 $61,465 $40,733 $20,000
Additional savings vs. “Sustained only”
9% 40% 70%
PVM Example
*1M hrs/month; *95% of hrs at 100% usage, *2.5% at 50% usage *2.5% at On-Demand *Assumes all n1-standard-2 = $.095/hr
Underutilization Is Rampant
High CPU utilization Low memory utilization
Low CPU and memory utilization
Custom VMs
Downsize
CP
U u
tiliz
ati
on
Memory utilization
Rightsizing
4 vCPU 20 GB
You Need Standard VM Custom VM
GCE Cost = $.266/hr AWS Cost = $.431/hr
GCE Cost = $.155/hr Savings vs GCE std VM = 42% Savings vs AWS std VM = 64%
8 vCPU 30 GB
4 vCPU 20 GB
*GCE Cost includes Sustained Use Discounts
Optimizing Google Cloud for ROI
Committed Use and Sustained Use
Discounts
Preemptible VMs
Custom Machine Types
See the blog: https://www.rightscale.com/blog/cloud-cost-analysis/aws-reserved-instances-vs-google-committed-use-discounts Contact: [email protected] Learn about Google: cloud.google.com/compute
cloud.google.com/pricing/innovation
Q&A