CloudCheckr Aws Economics

7/27/2019 CloudCheckr Aws Economics

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NYC Cloud Computing Group

AWS Economics:Learn how to efficiently optimize your

resource utilization and control your costs

Aaron C. NewmanCEO/Founder, CloudCheckr

[email protected]


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Agenda:

Overview of Costs in AWS

Going Reserved

Going Spot

Optimizing Resources

Economic Denial of Sustainability

Conclusion, Resource, and Questions


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Overview of AWS Costs


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State of Cloud Computing Cost

10 years ago The datacenter was a (mostly) fixed cost High cost for even the most basic data center You paid for your peak capacity

Co-location/ISPs as an alternative Still buying your own equipment/building for peak capacity

High margins were the norm

About 2010 Public Cloud Turns the Corner Technology matures Becomes the de facto for getting a startup off the ground Amazon starts compressing the high margin IT business

Over 20 pri ce reductions in Amazon AWS by 2013Prices continue to drop. But what is the reality of those 20 price reductions?

EC2 Linux Small Instance (On-Demand Per Hour):

Aug 2006 = $0.10, Nov 2009 = $0.085, May 2013 = $0.06

Extrapolate that to 2015 = somewhere between $0.035 and $0.05


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Cost is a product of usage

In old data center, cost was fixed Once you bought the equipment, little could be done to reduce

your cost. No advantage to ever scale down.

The public cloud is heavily weighted to variable costs If you can use less, you spend less

Optimizing Resource Utilization in the Cloud matter Computational engines run as close to 100% as possible

Interactive components need a cushion for peak usage

Auto scaling - important tool for optimizing cloud usage Scale down as much as scaling up


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Cloud Costs

(Bytes of Data Transferred) * Price

+

(Size of Compute Resource) *

(Price of Compute Resource) * (Number of Hours)

+

(Storage Used) * Price * (Time Stored)

+

(Transactions Processed) * Price


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Architecting Applications

In the past, architecture was typically a large, multi-threaded executable talking to a single database runningon the biggest boxes you could afford. Sat idle a lot.

Moving old apps into the cloud Can you resize your resources different times of the day?

Use load balancers or Multi AZ capabilities to resize

Important to design your apps to scale horizontally

Design you application into components That can be added or removed dynamically


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Going Reserved


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What is Reserved?

Pay up front, get a lower variable cost

ROI as high as 500% over 3 years, 60% savings in cost

Types of Reserved Resources Available EC2 Instance

RDS DB Instance Elasticache Node

S3 Reserved Storage (for GovCloud)

Types Utilization light, medium, heavy

Commitments 1 or 3 year


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Calculating ROI on Reserved Instances


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Picking Type of Reserved Instances


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Going Spot


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What is Spot Pricing

Bidding for unused instances Supply and demand dictates current price

Place your max bid, your instance shuts down if max bid exceeded by others

Spot is almost always cheaper

But you need to consider < 99% availability Spot prices spike frequently

Slightly slower to spin up Wait for spot request to be fulfilled before instance can start

More complex to manage Using EBS/Instance store


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What Does Spot Pricing Look Like

This morning spot pricing:

US East, Linux, M1 Small (1 ECU): 0.007 - 0.010 SA, Linux, M1 Small (1 ECU): 0.011 On demand: US East = 0.06, SA = 0.08

US East, Linux, M1 Extra Large (8 ECU): 0.055 - 0.64 SA, Linux, M1 Extra Large (8 ECU): 0.084 On-demand: US East = 0.48, SA = 0.64

US East, Linux, M3 Double Extra Large (26 ECU) 0.115 SA, Linux, M3 Double Extra Large (26 ECU) 0.185

On-demand: US East = 1.00, SA = 1.36

Spo t Pricing is typic al ly 10-20% of On-Demand

Bu t can easi ly sp ike HIGHER than On -Demand


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Spot Strategies

Most people dont understand spot pricing, afraid to use it As more people understand and use it, pricing will be driven up

Very tempting but dangerous to run exclusively on Spot

From GigaOm: A sudden spike in the price of m2.2xlarge servers (normally$.44/hour) drove the price briefly up to $999/hour, causing a site-wise outage.

If you follow this strategy, use a variety of instance sizes, Availability Zones, andeven regions to minimize the risk

Hybrid Reserved/Spot strategies Run as many spot instances as possible

But maintain a base level of Reserved Instances

Switch to On-Demand if Bid Price Exceeds On-Demand Price

This is a manually intensive strategy


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Optimizing Resources


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Overview

Keep track of what you are using Find and eliminate idle instances

Find and reduce under-utilized resources

Unused EBS drives, ELB, multiple snapshots of same EBS drive

Horizontally scale Find smallest instance type that can handle your transactions

Find your bottle necks (network, disk I/O, CPU util, memory util)

Turning off resources when they arent used

Turn off over the weekend, overnight

Use only what you need E.g. dont check multiple copies of buckets in S3


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Optimizing Instance Types

Picking the optimal Instance Type:

Comparing ECU (EC2 Compute Units) M1 Small (1 ECU) On-Demand in US East = $0.06 ($0.06 per ECU)

M3 Double Extra Large (26 ECU) On-Demand in US East = $1.00 ($0.0385 perECU)

Comparing the cost of Memory M1 Small (1.7 GiB memory) On-Demand in US East = $0.06 ($0.035 per GiB)

M3 Double Extra Large (30 GiB memory) On-Demand in US East = $1.00

($0.033 per GiB)

But you need to compare Resource Type, Pricing Type (on-demand/spot/reserved), Region, AZ, etc for your circumstance


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S3, Glacier, and RRS

S3 Pricing about 10 cents per gigabyte (starts at 9.5c in US East)

Reduced Redundancy Storage AWS doesnt store as many copies of your S3 objects

Typically about 20% cheaper (US East $0.095 reduced to $0.076) Ideal if you are storing terabytes or petabytes of songs, movies, documents that

can be recovered

How much of your S3 storage can you convert to RRS?

Glacier Pricing about 1 cent per gigabyte Pricing difference from S3 decreases as the price goes up

Takes up to 4 hours to retrieve files, and cost to retrieve


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S3, Glacier, and RRS

S3 Pricing about 10 cents per gigabyte (starts at 9.5c in US East)

Reduced Redundancy Storage AWS doesnt store as many copies of your S3 objects

Typically about 20% cheaper (US East $0.095 reduced to $0.076) Ideal if you are storing terabytes or petabytes of songs, movies, documents that

can be recovered

How much of your S3 storage can you convert to RRS?

Glacier Pricing about 1 cent per gigabyte Pricing difference from S3 decreases as the price goes up

Takes up to 4 hours to retrieve files, and cost to retrieve


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Economic Denial of

Sustainability Attacks


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EDoS Attacks

Variation of Distributed Denial of Service Attack Goal is not to overload and crash an application

Instead to cause the server hosting costs to overwhelm

the victims budget

the infrastructure allows scaling of service

beyond the economic means of the vendor

to pay their cloud-based service bills-http://rationalsecurity.typepad.com


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Worst Case Scenario AWS CloudFront

http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/

Author calculated maximum possible charge Used default limit of 1000 requests per second and

1000 megabits per second

At the end of 30 days a maximum of 324TB of data

could have been downloaded (theoretically) $42,000 per month for a single edge location

CloudFront has 30 edge locations
http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/http://www.reviewmylife.co.uk/blog/2011/05/19/amazon-cloudfront-and-s3-maximum-cost/


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Stories and Lessons Learned

Anecdotal user experience Personal website hacked by file sharers

Received bill for $10,000

Note: AWS only charges for data out All data transfer in is at $0.000 per GB

Mitigates costsif you dont respond to requests, doesnt costyou anything

Use pre-paid credit cards or credit card with appropriatecredit limit Not sure if this limits your liability legally


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Solutions?

Amazon limits/caps have been in the workssince 2006 Each year Amazon talks about intention of releasing

the feature

May 2012 Amazon announces Billing Alerts http://aws.amazon.com/about-aws/whats-

new/2012/05/10/announcing-aws-billing-alerts/ Helps alert you when this starts happening to you

Could still be a costly few hours
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Misconfigured Security Settings

Scanning Amazon S3 to identify publiclyaccessible buckets http://cloudcheckr.com/2012/05/aws-s3-buckets-

bucket-finder/

Open source tool Bucket Finder script launches a dictionary attack on the names of

S3 buckets and interrogates the bucket for a list ofpublic and private files

Searching out EDoS
http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/http://cloudcheckr.com/2012/05/aws-s3-buckets-bucket-finder/


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Resources, Conclusion,

and Questions


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5 Strategies To Optimize

Keep a close handle on what you are running in the cloud

Measure what you are spending

Calculate Return On Investment

Minimize what you dont need

Protect yourself from EDoS


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Its Not About the Price

Cloud Computing is not about the cost Its about accelerating business, moving faster

IaaS is following in SaaS footstep SalesForce.com pioneered the movement

Hard to imagined a third-party controlling your entire customer list (one of yourmost valuable assets)

They proved it was secure, prudent, and effective

Still see some of the slower moving Corporate types claiming

production work loads cant be run on the cloud While their competitors leveraging the cloud eat their lunch


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Resources

Further reading:

How AWS Pricing Works http://media.amazonwebservices.com/AWS_Pricing_Overview.pdf

AWS Service Pricing Overview http://aws.amazon.com/pricing/

CloudCheckr Whitepaper Cost Series http://www.cloudcheckr.com/whitepapers

AWS Simple Monthly Calculator http://calculator.s3.amazonaws.com/calc5.html


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Questions?

Questions on:

Cloud Computing Resource Utilization

Optimizing Your Costs

CloudCheckr


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Thank You for Attending

Get your FREEMIUM account to

check your public cloudat www.cloudcheckr.com

Aaron Newman is the Founder

of CloudCheckr (www.cloudcheckr.com)

Please contact me with additional questions at:

[email protected]
http://www.cloudcheckr.com/mailto:[email protected]:[email protected]://www.cloudcheckr.com/

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