AWS Architecting and SysOps - Session 12

AWS
Architecting and SysOps

Cost Management and Well-Architected Framework
June-July 2019
© 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. 1
Contents
Cost Management
Well-Architected Framework
Cost Management
A guide to cost management in AWS
What is Cost Management in AWS?
 AWS offers tools to understand, control, and optimize your AWS costs and usage
AWS monthly bill
 Up-to-date information on your costs and usage, including a detailed breakdown of services use
Cost management dashboard
 Status of your month-to-date AWS expenditure and trends
Cost explorer
 Visualize, understand, and manage your AWS costs and usage over time
AWS budget
 Custom cost and usage budgets that alert you when those thresholds are exceeded
 The first 2 budgets are free, then $0.02 daily
AWS cost & usage report
 Access most granular data about AWS costs and usage
https://aws.amazon.com/aws-cost-management/
AWS Organizations
 Account management service that lets you consolidate multiple AWS accounts into
a single organization:
Manage and define your organization and accounts
 You can isolate workloads and applications into individual accounts
Control access and permissions
 You can organize those accounts into groups and attach policy-based controls
 Working with AWS Single Sign-On, you can centrally manage access for your employees
Audit, monitor, and secure your environment for compliance with your corporate
policies
Share resources across accounts
Centrally manage costs and billing
 You can consolidate usage across all accounts in your organization into a single bill
Cost optimization
 There are three fundamental drivers of cost with AWS:
Compute
Storage
Data transfer
 These characteristics vary depending on the product and pricing model you choose
 Not all regions cost the same:
https://www.concurrencylabs.com/blog/choose-your-aws-region-wisely/
You have the following tools to calculate pricing:

Simple month calculator (to be replaced):
https://calculator.s3.amazonaws.com/index.html
AWS pricing calculator (beta): https://calculator.aws/
TCO calculator: https://awstcocalculator.com/
Compute and data storage cost optimization
 Compute
 You pay for compute capacity per hour or per second depending on which instances you run
 Time is counted from the time you launch a resource until the time you terminate it, unless you
have made a reservation for which the cost is agreed upon beforehand
 Storage
 You typically pay per GB
To optimize your cost:

Turn off instances you don’t use. You can reduce costs by 70 percent or more
compared to using them 24/7
Clean unused data from your storage or unused storage. You can reduce costs by
10% or more. If necessary, move data to a low-cost storage solution
Data transfer cost optimization
 No charge these
data transfers:
 Inbound
 Between AWS
services within the
same region
 Outbound to
CloudFront
 Data transfer costs

increment in the
following order:
 Within your AZ
 Between AZs within
a region
 Between regions
* US-East region (N.Virginia)
 In most cases, there is no charge for inbound data transfer or for data transfer
between other AWS services within the same region
 There are some exceptions, so be sure to verify data transfer rates before beginning
 Outbound data transfer is aggregated across services and then charged at the
outbound data transfer rate
 This charge appears on the monthly statement as AWS Data Transfer Out
 The more data you transfer, the less you pay per GB
To optimize your cost, whenever possible:
Architect your systems to minimize data transfer outside your AZ
Since different AWS regions have different associated data transfer cost, check
different candidate regions before deciding using a region
Try to use private IP addresses instead of public or elastic IP addresses
Cost optimization five pillars
 Right size
 Ensure that what you provision matches what you need, no more
 Increase elasticity
 You can optimize cost to meet dynamic needs and turn resources off when they are not needed
 Leverage the right pricing model
 Choose the right pricing model (On-Demand and Spot Instances for variable workloads and
Reserved Instances for predictable workloads) to optimize costs
 Optimize storage
 Identify the most appropriate and cost-effective storage destinations for specific types of data to
reduce EBS and S3 while maintaining the required performance and availability
 Measure, monitor, and improve
 Define metrics, set targets, and review at a reasonable cadence
 Assign optimization responsibility to an individual or to a team
Cost optimization guidelines
 Start early with cost optimization
 Adopting cloud services is not just a technical evolution, it requires changes to how
organizations operate
 As you move from IT being treated as a capital investment that happens periodically to a world
where pricing is closely tied to efficient use of resources, it pays to understand what drives cloud
pricing so you can build a strategy for optimizing it
 When it comes to understanding pricing and optimizing your costs, it’s never too
early to start
 It’s easiest to put cost visibility and control mechanisms in place before the
environment grows large and complex
 Managing cost-effectively from the start ensures that managing cloud investments
doesn’t become an obstruction as you grow and scale
If you need extra help…
 AWS offers support plans designed to give you the right mix of tools and access to
expertise so that you can be successful with AWS while optimizing performance,
managing risk, and keeping costs under control
 Basic Support is included for all AWS customers:
Customer Service & Communities
 24x7 access to customer service, documentation, whitepapers, and support forums
AWS Trusted Advisor
 Access to the 7 core checks and guidance to provision your resources following best practices
to increase performance and improve security
AWS Personal Health Dashboard
 A personalized view of the health of AWS services, and alerts when your resources are
impacted
 Paid support plans: Developer, Business, and Enterprise
Cost management documentation
 Billing and cost management
 https://docs.aws.amazon.com/account-billing/?id=docs_gateway
 AWS Organizations
 https://docs.aws.amazon.com/organizations/
 Pricing documentation
 https://d1.awsstatic.com/whitepapers/aws_pricing_overview.pdf
 Cost optimization
 https://aws.amazon.com/pricing/cost-optimization/
 https://docs.aws.amazon.com/whitepapers/latest/cost-optimization-laying-the-foundation/
 Support plans
 https://aws.amazon.com/premiumsupport/plans/
Well-Architected Framework
AWS white paper recommendations
AWS Well-Architected Framework
 The Well-Architected Framework has been developed to help cloud architects build
secure, high-performing, resilient, and efficient infrastructure for their applications
AWS Well-Architected Framework Five Pillars
Security
 Protecting information & systems
 Key topics: confidentiality and integrity of data, identifying and managing who can do
what with privilege management, protecting systems, and establishing controls to
detect security events
Reliability
 The ability to prevent, and quickly recover from failures to meet business and
customer demand
 Key topics: foundational elements around setup, cross project requirements, recovery
planning, and how we handle change.
Cost Optimization
 Avoiding un-needed costs
 Key topics: understanding and controlling where money is being spent, selecting the
most appropriate and right number of resource types, analyzing spend over time, and
scaling to meet business needs without overspending
AWS Well-Architected Framework Five Pillars
Performance Efficiency
 Using IT and computing resources efficiently
 Key topics: selecting the right resource types and sizes based on workload
requirements, monitoring performance, and making informed decisions to maintain
efficiency as business needs evolve
Operational Excellence
 Running and monitoring systems to deliver business value, and continually improving
processes and procedures
 Key topics: managing and automating changes, responding to events, and defining
standards to successfully manage daily operations
The Framework provides a consistent approach to evaluate your architecture, and

implement designs that will scale over time
It includes strategies to help you compare your workload against our best practices, and
obtain guidance to produce stable and efficient systems so you can focus on functional
requirements
AWS Well-Architected Tool
 This tool helps you review the state of your workloads and compares them to the
latest AWS architectural best practices
 Get free architectural guidance
 It gives you access to knowledge and best practices used by AWS architects, whenever you
need it, and delivers an action plan with step-by-step guidance on how to build better workloads
for the cloud
 Review your workloads consistently
 It enables you to monitor the overall status of you workloads and helps you to understand
potential risks.
 Use the results that the tool provides to identify next steps for improvement, drive architectural
decisions, and bring architecture considerations into your corporate governance process
 Identify and implement improvements
 The tool makes it easy to save point-in-time milestones and track changes to your workload.
Whenever you want, initiate a new review process to help ensure your architecture continues to
improve over time
AWS Well-Architected Tool
Free of charge
https://aws.amazon.com/well-architected-tool/
Well-Architected documentation
 Well-Architected Framework White Paper
 https://d1.awsstatic.com/whitepapers/architecture/AWS_Well-Architected_Framework.pdf
 Well-Architected Tool
 https://docs.aws.amazon.com/wellarchitected/
 AWS Well-Architected
 https://aws.amazon.com/architecture/well-architected/

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AWS

Architecting and SysOps

You have the following tools to calculate pricing:

To optimize your cost:

 Data transfer costs

* US-East region (N.Virginia)

The Framework provides a consistent approach to evaluate your architecture, and

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