AW1+Course+ +Main+Lecture+Slides+ +for+students
AW1+Course+ +Main+Lecture+Slides+ +for+students
• Over-Provisioned • CapEx-Focused
• Over-Sized • IaaS-Focused
• Orphaned • No Commitments
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
W HAT DOES
CLOUD COST • Organizational changes
MANAGEMENT
• Operating model
INVOLVE ?
( BEYOND • Accountability model
OPTIMIZING ) • Pricing model
• Governance
• Tools
• Design cost-Consciously
• Resource organization
• Computing models
• Purpose-built services
• Commitments
• Anomalies
• Standards & Decision Trees
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
INTRODUCTIONS
ü Why Course is Important C OURSE S UMMARY
ü Course Navigation
ü Course Slides Download 95 Videos, 7 Hours Content, 25 Demos,100 Quiz Questions
ü Why Listen to me
FOUNDATION FOR ALLOCATION OPTIMIZATION STRATEGIES AWS SERVICES & TOOLS COVERED
CLOUD PRICING BASICS ü Accounts ü Optimization Pillars ü EC2, S3
ü AWS Organizations ü Design with Cost in Mind ü Pricing Calculator
ü Pricing Concepts
ü Service Control Policies ü Standards, Decision Trees, Playbooks ü Free Tier
ü Pricing in Cloud vs. On Premise
ü AWS Control Tower ü PaaS vs. IaaS vs. SaaS ü Savings Plans, Reserved Instances,
ü AWS Free Tier
ü Serverless Reservations
ü Autoscaling ü Billing Conductor
PRICING RESEARCH / ESTIMATION COST ALLOCATION / TAGGING ü Spot Instances ü AWS Budgets
ü Pricing Research Methods ü Tags – Using, Viewing, Modifying ü AWS Trusted Advisor ü Accounts, AWS Organizations, AWS
ü Cloud Pricing Models ü Tags – Enforcing, Alerting Control Tower, Landing Zones
ü AWS Pricing Calculator ü AWS Cost Categories ü Tags, Cost Categories
ü AWS Config, Tag Editor, SCPs, Tag
SAVINGS PLANS / RESERVATIONS Policies
BUDGETS AWS Cost Explorer
BILLING & COST CONSOLE ü
ü AWS Savings Plans ü Amazon Quicksight
ü AWS Budgets – Basics
ü AWS Reservations ü AWS Billing & Cost Consoles ü AWS IAM, AWS CloudFormation, AWS
ü AWS Budgets – Creating & Using
ü AWS Reserved Instances ü Billing Alarms Service Catalog, Quotas
ü AWS Billing Console
ORG & CULTURE CHANGE ü Cost & Usage Reports
VISIBILITY / ANALYTICS ü Cost Anomaly Detection
ü 6 Pillars of Successful Cost Mgmt SUPPORTING SERVICES
ü Cost Explorer ü Amazon Cloudwatch, EventBridge
ü Governance
ü Cost Anomaly Detection ü Cloud Intelligence Dashboards
ü Operating Model ü Service Catalog, IAM, Quotas
ü Cost & Usage Reports ü AWS Well Architected Framework
ü CCOE & FinOps
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
CLOUD PRICING BASICS Pricing
•
•
On Demand
Commitment
Models • Spot Instances
• Free Tier
Economic Model Fixed costs, irrespective of use Pay as you go, pay for what you use
Maintenance & Upgrades Must be accounted for Not applicable for hardware, sometimes software
Scalability & Elasticity Planning, Provisioning, Deploying, Overallocation Dynamic Scalability & Elasticity
Cost Predictability Upfront clear. Unforeseen possible. Variability possible from Scalability
Customization & Optimization VMs specs can be optimized. Hardware not. VM customization limits. Hardware no concern.
• Monitor Usage
• Exploration &
• Always Free • Read fine print
Learning
• 12 months Free • Startup Use • Account Age
• Short Term Trials • Small Projects • Multiple services
• Watch for trials
q Determine: What
affects pricing? What
might we be billed
for?
Specifically:
• SQL Queries – per query billing, based on
data scanned
• SQL Queries with Provisioned Capacity –
pay by the hour, flat rate
• Apache Spark – hourly rate based on the
capacity (size of DPUs)
• Possible additional charges
EC2 Instance:
• Region: Europe (Ireland) eu-west-1
• Operating System: Windows Server
• Instance: r5.xlarge
• Payment: On Demand, 100% usage
• Other Values: Shared Tenancy, Constant
Usage
• Commit to a type of usage, • Commitment term (1 or 3-yr.) • Services with Discount Plans:
• Payment option o EC2, Fargate, Lambda,
• …an amount of usage,
• SP or RI type Sagemaker, RDS,
• …for specific AWS services, • Instance family (sometimes) ElastiCache, OpenSearch,
• …over a 1–3 year period. Redshift, DynamoDB
• In Exchange for a Discount OTHER KEY POINTS • Payment Options
o No Upfront
• SP & RIs are billing discounts
o Partial Upfront
only – nothing technically
o All Upfront (best discount)
HIGHEST DISCOUNT? different.
• Reservations can be Scoped to
• Expirations or Overages fall certain Resources (example:
• More specific commitment
back to on-demand pricing. select accounts)
• Longer commitment
• Use it or Lose it! No carry- • No action needed to “use” the
• Early payment
over. SP or RI after purchasing
Instructions
• From:
https://aws.amazon.com/savingsplans/compu
te-pricing/
• Lookup pricing and discount information for
each of the 4 scenarios
• Fill out PDF template with answers (PDF is
attached as Resource to this lecture)
• Compare answers against expected results
§ Infrastructure layer
§ Application layer
Maturity Path
Custom
Solution
3rd Party
Fundamental Solutions Tool
AWS Cost
Categories
Flat Rate
1. Central IT Cost Center Allocation
Leave
2. Shared Allocation Solution shared costs
centrally
charged
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
AWS BILLING CONDUCTOR
ENABLE…
1. Customized Reporting
2. Cost Allocation
3. Budgeting & Forecasting
4. Analyzing Trends
5. Shared Cost Splitting
6. Anomaly Detection
• Informed Decision-Making
• Detailed Cost Breakdown • Budgeting & Forecasting
• Accountability
• Usage Patterns • Efficient Resource • Optimizing Cost Models
Utilization
• Allocation & Chargeback • Operational Efficiency
• Early Detection of Cost
• Anomalies & Irregularities Anomalies • Transparency & Reporting
Web Server
• IIS on Windows VM
• Elastic Beanstalk / Lightsail IaaS Choose IaaS if:
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
S POT I NSTANCES
A Z U R E C O S T O P T IM IZ A T IO N M A S T ER C L A S S
AWS TRUSTED ADVISOR COST RECOMMENDATIONS
• Limit Regions
• RI & SP Permissions
• Mistake Protection