© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Heitor Lessa, Technical Account Manager

Mike Arbuzov, CTO @ Gelato

May 2016

Get the Most Out of Amazon EC2A Deep Dive on Reserved, On-Demand,

and Spot Purchasing Models

On-Demand

Pay for compute capacity

by the hour with no long-

term commitments

For spiky workloads,

or to define needs

AWS EC2 Purchasing Options

Reserved

Make a commitment to

receive a significant discount

on the hourly charge and a

capacity commitment

For committed utilization and

capacity reservation

Spot

Bid for unused capacity,

charged at a Spot price

which fluctuates based

on supply and demand

For flexible, fault tolerant

or transient workloads

How is Cloud Compute Helping Enterprise?

Faster Time to ResultsAccess computing

infrastructure in minutes

Lower Total CostPay-as-you-go pricing

Elastic and PowerfulEasily add or remove capacity

Globally AccessibleEasily collaborate with

teams around the world

SecureA collection of tools to

protect data and privacy

ScalableAccess to effectively

limitless capacity

AWS Global Infrastructure

Region

Edge Location

Over 1 million active customers across 190 countries

800+ government agencies

3,000+ educational institutions

12 regions (2016: USA, Canada, India, UK)

33 availability zones

54 edge locations

Example AWS Region

AZ

AZ

AZ AZ AZ

Transit

Transit

Example AWS Availability Zone

AZ

AZ

AZ AZ AZ

Transit

Transit

Example AWS Data Center

Amazon EC2 Instance Types

• Micro (T2)

• General Purpose (M3, M4, T2)

• Compute Optimized (C3, C4)

• Storage Optimized (I2, D2)

• GPU Optimized (G2)

• Memory Optimized (R3, X1*)

Instances to suit your application needs

*We expect to have the X1 available in the first half of 2016

EC2 can help strengthen your security posture

Get native functionality and tools at

no additional charge

Over 30 global compliance

certifications and accreditations

Leverage security enhancements gleaned

from 1M+ customer experiences

Benefit from AWS industry leading

security teams 24/7, 365 days a year

Security infrastructure built to

satisfy military, global banks, and other

high-sensitivity organizations

More accreditations & certifications than anyone

ISO 9001

SOC 3

SOC 2

ISO 27001

ISO 27017

PCI DSS Level 1ISO 27018

SOC 1 / ISAE 3402

GxPHIPAA

ITAR

FERPA

FISMA, RMF, and DIACAP

FedRAMP

Section 508 / VPAT

DoD SRG Levels 2 & 4

FIPS 140-2

CJIS

Cloud Security Alliance

MPAA

NIST

MLPS Level 3

G-Cloud

IT-Grundschutz

MTCS Tier 3

IRAP Cyber Essentials Plus

The Forrester Wave™: Public Cloud Platform Service Providers' Security, Q4 2014

The Forrester Wave™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave™ are trademarks of Forrester

Research, Inc. The Forrester Wave™ is a graphical representation of Forrester's call on a market and is plotted using a

detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or

service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time

and are subject to change.

“We work closely with AWS to developa security model, which we believe enables us

to operate more securely in the public cloud than we can in our own data centers.”

Rob Alexander - CIO, Capital One

Enterprise Customers

Pillars of Performance and Cost Optimization

Right Sizing Purchasing Options

Increase Elasticity

Measure, Monitor, &

Improve

Right Sizing

Right Sizing

• Selecting the cheapest instance available while meeting performance requirements

• Looks at CPU, RAM, storage, and network utilization to identify potential instances that can be downsized

Increase Elasticity

Turn off non-production instances

• Look for dev/test, non-prod instances that are running always-on and turn off

Autoscale Production

• Use Autoscaling to scale up and down based on demand and usage (e.g. spikes)

Measure, Monitor, & Improve - Uncover the Cost Optimization Opportunities

• Auto-tag resources

• Identify ‘always on’ Non Prod

• Identify instances to down-size

• Recommend RIs to purchase

• Dashboard our status

• Report on savings

AWS Pricing Principles

Pay as you go

Pay less by using more

Pay less when you reserve

Pay less when AWS grows

No up-front investment

Pay per use

We completed the equivalent of

thirty-nine years of computational

chemistry in just under 9 hours for

a cost of around $4200.

Steve Litster

Global Head of Scientific Computing, Novartis

”

“

Novartis: Acceleration of pre-clinical R&D

• Existing infrastructure to screen10 million

compounds in a computational model not

available

• New infrastructure would have cost

approximately $40 million to build

Novartis used AWS for HPC computational

chemistry

On-Demand

AWS EC2 Purchasing Options

Reserved Spot

EC2 On-Demand Pricing

Short-term, Spiky and

unpredictable

Low cost and

flexibleDevelop and test

EC2 Reserved Pricing

Upfront payments to

reduce costs

Steady State Reserved Capacity

Reserved Instance details

Options• No upfront

• Partial upfront

• All upfront

Commitment Level• 1 Year

• 3 Year

• RI Marketplace

* Dependent on specific AWS Service, size/type and Region

EC2 Spot Pricing

Users with urgent

computing needs or

large amounts of

additional capacity

Time or instance

flexible

Experiment and/or

build cost sensitive

businesses

Options• Spot fleet to maintain Instance

Availability

• Spot block durations (1-6 hours) for workloads that must run continuously

Commitment level• None

* Compared to On Demand price based on specific EC2 instance type, region and availability zone

Spot Instance details

Spot RulesMarkets where the price of compute changes based on supply and demand

You’ll never pay more than your bid.

50% Bidof OD

75% Bid of OD

25% Bidof OD

You pay the

market price

87% discount!

Which EC2 Consumption Model is right for me?

Have a balanced meal!

Why choose just one business model?

Use a Combination of All Three!

1. Use Reserved Instances for known/steady-state workloads

2. Set-up multiple Scaling groups

3. Scale using Spot, On-Demand or both

0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

/Spot Instances

On DemandSpotReserved Instance

Examples

Example – 3 tier web app

Stateless

Scale based on demand

Web Tier

0

5

10

15

20

25

30

35

40

0 2 4 6 8 10 12 2 4 6 8 10

Web Servers

Reserved Spot On-Demand

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 0 0 0 0 0 0 0 0 0 0 0 0

Web Traffic

App TierStateful

Scale based on demand

0

50

100

150

200

250

300

350

400

450

500

0 2 4 6 8 10 12 2 4 6 8 10

App Requests

0

5

10

15

20

25

30

35

40

45

50

0 2 4 6 8 10 12 2 4 6 8 10

App Servers

Reserved On-Demand Spot block

Database TierHighly Stateful

Static at peak load

0

100

200

300

400

500

600

700

800

900

0 2 4 6 8 10 12 2 4 6 8 10

Database Requests

0

0.5

1

1.5

2

2.5

3

3.5

0 2 4 6 8 10 12 2 4 6 8 10

Database Servers

Reserved On-Demand Spot

Summary – 3 tier web app

0

10

20

30

40

50

60

70

80

90

0 2 4 6 8 10 12 2 4 6 8 10

3 Tier Application Servers

Reserved On-Demand Spot

Summary

Have a balanced meal! Across the three tiers our meal consist of

• Spot 13%• On-Demand 11%• Reserved 76%

Remember!

“No server is easier to manage than no server” -Werner Vogels, CTO, Amazon.com.

Tagging is essential!

• How do we explain the costs?

• How do we allocate the charges to the right team?

• How do we save money?

Tagging is essential!

Ubisoft uses AWS to develop and launch social games quickly

• Ubisoft is a Paris-based gaming company, and creator of

popular gaming titles, including Assassins Creed, Far Cry,

and Just Dance

• Moving games to social and mobile platforms and needed

capacity to scale fast; using a traditional environment

would be an extensive and costly investment

• Using the AWS Cloud to optimize games at the application,

caching, and data layers, improving the user experience

”

“By using the AWS cloud we

were able to launch 10 social

games within 18 months.

Lenin Gali

Senior Director, Ubisoft

EC2 Purchasing Options via Industry

Web scale (e.g. Adtech)

Company

Enterprise SaaS Company

Consumption Model by Industry

Onboarding Enterprise Gaming Company

Consumption Model by Industry

Technology CompanyScientific Research

Consumption Model by Industry

Different Purchasing Options in a single company

Data Science

New app development Test and Development

Internal IT

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API access Routing Optimizations

Prepress

Standard output

• FTP upload

• Color Management

• JDF & PDF/X

Post press

Barcode scanner

Packaging web-app

Visual verification

Matching items

Tracking code Label printer

Production dashboard

• Monitoring

• Reporting

Ganging by attributes

Cut marks Paper utilization

BarcodeStack sizes in

packagingMatching indicators

Cards Variable print Sorting icons

Envelopes CalendarsFront & back info sheets

Optimizations

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c

Dec 5th-6th Hourly

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Let’s Recap

Remember the pillars of optimizationRight Sizing

Increase elasticity (turn stuff off!)

Measure, Monitor and Improve

Use Tags to understand your services

There are 3 core purchasing options – have a balanced meal!

Architect Your Workloads with Performance and Cost in Mind

Thank you!