Mastering the fundamentals of AWS billing 8-20-15
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Transcript of Mastering the fundamentals of AWS billing 8-20-15
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180D
ev/T
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App
#1 App
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App
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Exec team starts really caring
Load
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A story of growth
@cloudability
Dashboards Spend Alerts
API Reports
Cloudwatch EC2 Usage API
Detailed Billing Report Files
We generate custom dashboards, reports, recommendations and alerts
We retrieve your data using read only IAM credentials
AWS provides complex billing and usage data
We organize & analyze your cost & usage data
How It Works
Visibility Allocation
Efficiency
Savings
Unit Cost
Cloud Cost Management Lifecyle
Stage I: Visibility (No Surprises)
Stage II: Allocation (Where are the dollars going?)
Stage III: Efficiency (Don’t run cloud like a datacenter)
Stage IV: Savings (Lower hourly rate with RIs)
Stage V: Unit Cost (Tying spending to margins)
@cloudability11
cost = usage x ratePay for instances “by _________” Instance Hour … data transfer per “GB”
Pay for EBS per “_______” GB Month … IO per “I/O requests” …Snapshots per “GB Month”
Pay for S3 storage per “________” Byte (GB) Hour … put, copy, post, list per “request” … data transfer per “GB”
Requires Engineering/Ops work
@cloudability12
EC2 (compute) spending generally accounts for80%+ of the bill…
(Followed by EBS, S3, RDS, etc.)
@cloudability15
cost = usage x ratePay as you go with On-demand or “BoxUsage”
Commit to lower rates with Reserved Instances “HeavyUsage” Architect for instability with Spot Instances “SpotUsage”
Single tenancy with Dedicated Instances “DedicatedUsage” etc
Can be autonomously controlled by Finance without engineering work
๏ @cloudability
Originating account for the charges
Linked Account
Data Sources
AWS Product Name e.g. Amazon Elastic Compute Cloud
Product NameThe type of usage charge applied e.g. heavyusage:m3.large
Usage TypeA human readable field showing the resource type used as well as the rate applied
Item Description
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Key Dimensions in the DBR
๏ @cloudability
Total Blended Cost for the time period, represented in Cloudability as “Total Invoiced Cost”
Blended Cost
Data Sources
Total Unblended Cost for the time period
Unblended CostAmount of individual units used of that resource type
Usage QuantityUnblended rate for a single unit of the resource type
Unblended Rate
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Key Metrics in the DBR
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Data Sources
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More info on data sources:
1. http://blog.cloudability.com/aws-101-data-sources/
๏ cloudability.com
Data Sources
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More info on unblended rates:
1. https://support.cloudability.com/hc/en-us/articles/206972637-Vlog-How-to-calculate-AWS-blended-and-unblended-rates
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Transaction Types in Your BillStage I: Basic Cost Visibility
Usage On-demand instances Storage Data Transfer
Recurring Charges Prepaid Monthly RI Hours Support Charges
One-Time Charges RI Sign-Up Charges Direct Connect
@cloudability
@cloudability
1. Tags are key value pairs (key = value) 2. You can apply up to 10 tags per resource 3. Tag keys and values are case sensitive
#1: TagsTools for splitting costs
@cloudability
@cloudability
#2: Linked AccountsUse linked accounts to split up things that really matter
Tools for splitting costs
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Don’t run the cloud like a data center: 65% of the hours in a month
are nights and weekends
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Reserved Instances “Reservations” require no engineering work, enabling finance to autonomously reduce costs by 30-60% over on-demand
@cloudability @cloudability
An RI gives you 744 coupons that can be applied a relevant instance in any given hour
@cloudability
RI Mechanics
What Makes Up a Reservation?
InstanceRI Term RI Type
Instance Family Size OS Location (AZ)
m1 large Linux us-east-1a 1 year No upfront
r3 8xlarge RHEL us-west-2b 3 years Partial upfront
m3 medium Windows ap-northeast-1b 1 year All upfront
@cloudability
RI Mechanics
The difference is in the payment structure
Upfront Fee Monthly Fee Savings
No upfront NO YES 28.6%
Partial upfront YES YES 38.1%
All upfront YES NO 39.4%
m3.medium:us-east:linux
@cloudability @cloudability
All RI types are a commitment to pay for full utilization (even if you don’t use it)
Why does unit cost matter?
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Hic
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An increasing bill isn’t necessarily a bad thing
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The bill still goes up!
Stag
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Efficiency
Stag
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RIs
Visibility Allocation
Efficiency
Savings
Unit Cost
Cloud Cost Management Lifecyle
Stage I: Visibility (No Surprises)
Stage II: Allocation (Where are the dollars going?)
Stage III: Efficiency (Don’t run cloud like a datacenter)
Stage IV: Savings (Lower hourly rate with RIs)
Stage V: Unit Cost (Tying spending to margins)
๏ @cloudability
The Road Ahead
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1) AWS data is complex. Get your hands on your DBR file to start understanding what’s in it.
2) Tagging is hard. Sit down with key stakeholders and agree a basic taxonomy (3-5 required tags), consider linked accounts for most important items.
3) Instances are easy to spin up. Start sharing reports of underutilized instances to spark a conversation about potential waste.
4) RIs are frequently misunderstood. Educate yourself then make a small, uncontroversial purchase. Buy, Measure, Learn each month.
5) The bill going up may not be a bad thing. Start setting expectations with your team that more apps & more traffic mean more dollars. That may be OK in the context of margins.
Things to remember (and do) after this webinar