ten ways to optimize costs on public and private clouds

TEN WAYS TO

OPTIMIZE COSTS ON

PUBLIC AND PRIVATE CLOUDS

• Kim Weins

• VP Marketing, RightScale

• Mitch Gerdisch

• Cloud Solutions Engineer, RightScale

Panelists

1

POLLS

The New Role of IT: Broker Cloud Services

3

RightScale – Product Overview

Self-Service Cloud Analytics

RightScale

Cloud Management

Design

Virtualized

Environments

Public

Clouds

Private

Clouds

Other

Services

Automate

Multi-Cloud Orchestration

Operate Deploy Report Optimize

1. Pick the right instance size

2. Picking the right cloud and discount options

3. Optimizing storage costs

4. Location matters

5. Leveraging temporary instances

6. When is private cloud right?

7. Scheduling workloads

8. Finding waste

9. Underutilization

10. Budget alerts to avoid surprises

Ten Ways to Optimize Cloud Costs

5

AWS Instance types

(2 vCPU) RAM (GB) Disk type Hourly cost Annual Cost

t2.medium 4 EBS-only $0.052 $456

t2.large 8 EBS-only $0.104 $911

c3.large 3.75 32GB SSD $0.105 $920

c4.large 3.75 EBS-only $0.110 $964

m4.large 8 EBS-only $0.126 $1,104

m3.large 7.5 32GB SSD $0.133 $1,165

r3.large 15.25 32GB SSD $0.175 $1,533

Instance Costs Vary (A LOT): Choose Wisely

6

Highest cost is

more than 3x

lowest cost

Benefit of GCE Custom Instance Sizes

AWS

M4.xlarge

4CPU/16GB

$$$ $

Effective hourly rates Linux in US-East

$.200 $.186 $.100 $.133 $.266

AWS

m4.large

2CPU/8GB

GCE

n1-standard-4

4CPU/15GB

GCE

n1-standard-2

2CPU/7.5GB

GCE

Custom

4CPU/10GB

$.140

GCE

Custom

2CPU/15GB

AWS Azure Google

Primary Discount

Method

Reserved Instances

(RI)

Enterprise

Agreements (EA)

Sustained Use

Discounts (SUD)

Range of discount Up to 75% Depends on EA 30% with 100%

utilization (with

inferred instances)

Length of

commitment

1 year or 3 year

options

3 year None

Other ways to save Volume discounts,

spot pricing

Alternatives to EA Pre-emptible

instances

Understanding Clouds and Discount Options

8

AWS Reserved Instance Savings Vary

9

RI price points and discounts are

different for every region, instance type

on OS !

No Upfront Partial Upfront All Upfront

Terms Available

1 year 1 year or 3 year 1 year or 3 year

Savings for 1-Year RIs (Linux)

20-50% 25-58% 27-58%

Savings for 3-Year RIs (Linux)

N/A 41-74% 45-75%

Hours Billed

24 hrs a day 24 hrs a day 24 hrs a day

About Google Sustained-Use Discounts

• No commitment. The more you use an instance family during

the month, the higher the discount

Usage Level % of Billing Cycle

Incremental Rate % of On-Demand Baseline

Sample Rate n1-standard-1

Total Cost

0-25% 100% $0.05 $9.00

25-50% 80% $0.04 $7.20

50-75% 60% $0.03 $5.40

75-100% 40% $0.02 $3.60

Monthly Cost at 100% usage

30% savings $25.20

Google SUD uses “Inferred Instances”

11

Source: Google

Which is Cheaper?

12

US Windows

13 Note: AWS 1yr RI is No upfront

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

AWS m4.xl Azure D3 GCE n1-standard-4

Impact of Per Minute Billing for <1hr workloads

14

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.000

:30

1:3

0

2:3

0

3:3

0

4:3

0

5:3

0

6:3

0

7:3

0

8:3

0

9:3

0

10:3

0

11:3

0

12

:30

13

:30

14:3

0

15:3

0

16:3

0

17:3

0

18:3

0

19:3

0

20:3

0

21:3

0

22:3

0

23:3

0

0:3

0

AWS Azure Google

>1hr: Lower Hourly Rate Outweighs Per Minute

15

Impact of Local Storage

16

AWS offers m4

without SSD and m3

with SSD

Azure doesn’t offer

instances without

local storage

Google requires you

to buy Local SSD

storage in unites of

375GB

Note: AWS 1yr RI is No upfront

AWS Azure Google

Block storage EBS Page blobs Persistent Disk

SSD (per GB-month) $0.125 128GB@

$17.92/month $0.17

PIOPS (per GB-month) $0.065 Includes

500 IOPs per disk Includes 30 IOPs/GB

500GB 2000 IOPs

SSD Volume $192.50 $71.68 $85.00

Magnetic (per GB-month) $0.05 $0.05 $0.04

500GB

Magnetic Volume $25.00 $25.00 $20.00

Block Storage

17

$25.00

$192.50

$25.00

$71.68

$20.00

$85.00

$-

$50.00

$100.00

$150.00

$200.00

$250.00

Magnetic (500GB) SSD (500GB, 2000 IOPs)

AWS EBS Azure Premium Storage Google Persistent Disk

Block Storage Comparison

18

Location, location, location

19

Region

Hourly

(m3.xlarge)

Annual

(m3.xlarge)

Upcharge

(vs us-east)

us-east (n va) $0.266 $2,330 0.0%

us-west (oregon) $0.266 $2,330 0.0%

us-west (n ca) $0.308 $2,698 +15.8%

eu (ireland) $0.293 $2,567 +10.2%

eu (frankfurt) $0.315 $2,759 +18.4%

ap (singapore) $0.392 $3,434 +47.4%

ap (tokyo) $0.385 $3,373 +44.7%

ap (sydney) $0.372 $3,259 +39.9%

sa (sao paulo) $0.381 $3,338 +43.2%

gov cloud (us) $0.336 $2,943 +26.3%

AWS: Region Costs

20

Region Hourly D3 Annual D3 Upcharge (vs South Central)

East US 0.308 $2,698 +14.9%

East US2 0.268 $2,348 0.0%

Central US 0.308 $2,698 +14.9%

North Central US 0.308 $2,698 +14.9%

South Central US 0.268 $2,348 0.0%

West US 0.308 $2,698 +14.9%

North Europe 0.292 $2,558 +8.9%

West Europe 0.336 $2,943 +25.4%

East Asia 0.451 $3,951 +68.3%

Southeast Asia 0.392 $3,434 +46.2%

Japan East 0.442 $3,872 +64.9%

Japan West 0.384 $3,364 +43.3%

Brazil South 0.38 $3,329 +41.8%

Australia East 0.372 $3,259 +38.8%

Australia Southeast 0.372 $3,259 +38.8%

Azure: Region Costs

21

Region

Hourly

(n1-standard-4)

Annual

(n1-standard-4) Upcharge (vs US)

US $0.20 $1,752 0.0%

Asia $0.22 $1,927 +10.0%

Europe $0.22 $1,927 +10.0%

GCE: Region Costs

22

Characteristics AWS Google

Service Spot instances Pre-emptible

Pricing Model Variable price based on

supply and demand

Fixed price (no SUD)

Prices You set maximum price

30% of On Demand price

42% of 100% SUD price

Run length Variable Max of 24 hours

Rules -Spot instances shut down

when spot price moves

higher than your max price

-May shut down at any time

-Cannot live migrate or auto-

restart when there is a

maintenance event

Understanding Temporary Instances

23

• When requirements dictate

• When ROI to relocate is not sufficient

• If a workload can run in public or private, choose private if:

• Private cloud is underutilized (sunk cost)

• Private cloud is cheaper

• Look for waste in private cloud (just like public)

When is private cloud right?

24

• Compute Hardware

• Storage Hardware

• Network Hardware

• Hardware Maintenance

• Data Center Space

• Power and Cooling

• Personnel

• Hypervisor costs

• Underutilization

Pricing Your Private Cloud

25

Considerations

• Hours of the Day

• Business hours

• 24x7

• Days of the Week

• Weekdays

• Every day

• End Dates

• Development projects

• Demos

• Training sessions

• Trials

Scheduling your Application

26

Find waste: Unused (or Underused) RIs

27

Find Waste: Bad Scripts = Failure to Launch

28

Find Waste: Terminate Unused Instances

29

Find Waste: Orphaned Volumes

30

Uncover Underutilization

31

Low CPU and

memory

utilization

Find unexpected or

unusual spend

• Human error

• Runaway apps

• Left running

• Mistake selecting

instance sizes

• Spikes in traffic

• Legitimate

• DDOS

Avoid Surprises with Budget Alerts

32

DEMO

• IT as a Cloud Broker

• www.rightscale.com/cloud-broker-white-paper

Q&A

34