modifying your aws reserved instances
DESCRIPTION
AWS Reserved Instance modifications allow you to change the type, size and availability zone of your existing reservations to keep up with changes in your infrastructure. Join us as we walk through the kinds of modifications available and how they work. Then see how Cloudability's Reserved Instance Planner can quickly show you which of your reservations aren't being used and how you should redistribute them.TRANSCRIPT
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@cloudability
Modifying Your AWS Reserved Instances
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@cloudability
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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@cloudability
Poll
Is your company currently modifying reservations?
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@cloudability
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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@cloudability
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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๏ @cloudability
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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๏ @cloudability
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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@cloudability
Why Modify?
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@cloudability
Reservations represent sunk cost. Modifications let you move those reservations to maximize savings as your infrastructure changes
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๏ @cloudability11
RI Modifications - Save $100k+
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@cloudability
Why Modify?
RI Modification Cycle
Infrastructure Changes
RI Modifications
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@cloudability
Understanding Reservations
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@cloudability
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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@cloudability
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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@cloudability
Reservations are applied each hour
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@cloudability
Reservations have two parts
Cost Savings Capacity Reservation
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
RI
RI
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
$ c
$ c
$ csavings capacity
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
$ c
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
$
c
$
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t RI
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@cloudability
Understanding Reservations
Reservations in Linked Accounts
Master Payer
Linked Acc’t
Linked Acc’t
$
$
c
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@cloudability
Understanding Modifications
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@cloudability
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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@cloudability
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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@cloudability
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
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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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@cloudability
Understanding Modifications
Instance types without a family
• t1.micro
• cc1.4xlarge
• cc2.8xlarge
• cg1.8xlarge
• cr1.8xlarge
• hi1.4xlarge
• hs1.8xlarge
• g2.2xlarge
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Modifying Instance TypeInstance Size Normalization Factor
micro 0.5
small 1
medium 2
large 4
xlarge 8
2xlarge 16
4xlarge 32
8xlarge 64
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2xlarge
Modifying Instance Type
=16 PTS
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2xlarge
xlarge xlarge
Modifying Instance Type
168 8+ =
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2xlarge
xlarge xlarge
large large large large
Modifying Instance Type
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medium medium medium medium medium medium medium medium
2xlarge
xlarge xlarge
large large large large
Modifying Instance Type
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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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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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@cloudability
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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@cloudability
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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@cloudability
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@cloudability
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@cloudability
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@cloudability
Modifications do not happen automatically
Your reservation will retired and NEW reservations created
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@cloudability
Put it into practice!
(demo time)
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@cloudability
Modification Recommendations
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@cloudability
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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@cloudability
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