AMSTERDAM

©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved

©2015, Amazon Web Services, Inc. or its affiliates. All rights reserved

Manage Your Cost,

Govern Your Usage on AWS

Guy Kfir, Account Manager BeNeLux, AWS

kfir@amazon.lu

Leon Backbier, ICT Manager, Endemol Shine Nederland

leon.backbier@enmg.nl

You’re using AWS.

BEST PRACTICES

Use Consolidated Billing1

Turn off underutilized or unused instances2

Use Reserved and Spot Instances3

Use managed services 4

Control who can provision resources5

Design for elasticity rather than deploy for peak6

Monitor your spend, create Billing Alerts7

LOWER COSTS WITH THE AWS CLOUD

Trade capital

expense for variable

expense

Save more money as

you grow bigger

Economies of scale

allow AWS to

continually lower costs

Pricing model

choice to support

variable & stable

workloads

Price reductions#49

Use Consolidated Billing

Company Master Account (“Payer” Account)

Operation A Division B Business Unit C Dev/TestDepartment Accounts

(“Linked” Accounts)

Consolidated Billing

Catalog WorkflowOrder

PipelineApplication (Tag) =

Cost Center (Tag) =

Department Accounts

(“Linked” Accounts)

General

LedgerInventory

3 way

match

Proxy

fleet

2222 3333 6600

Stack (Tag) = ProdJeroen Janneke Antoon

TAGS

1111 7784

Consolidated Billing & Tagging

Company Master Account (“Payer” Account)

Operation A Division B Business Unit C Dev/Test

Cost Allocation Report sample

Cost Explorer

Use Consolidated Billing to reflect your own cost structure, to benefit from volume

discounts and to share RIs across accounts

Use Cost Allocation tags to gain deeper granularity into your cost structure

As a minimum tag with Name, Owner, Cost Centre, Application, Environment

Use Cost Explorer to have customized visualization of your spend broken down by

services, tags, etc…

Consolidated Billing and tags are offered at no additional charge.

Storage fees may apply for storing the cost allocation .csv report (minor,

$0.0300/GB)

BEST PRACTICE

Turn off underutilized or

unused instances

Hours in a month*

*31 days month

Working hours

*31 days month, 23 business days, 9 hours per day

Only

Non working hours

*31 days month, 23 business days, 9 hours per day

Customer dev/test example

Monday Friday End of Vacation Season35% saved

How to Identify Underutilized

Instances?

AWS Trusted Advisor runs 100+ configuration

checks and recommends savings

AWS Trusted Advisor

Since 2013, customers have viewed over

2.6 million recommendations and realized

over $350 million in estimated cost

reductions.

Turn off underutilized instances – method #2

Locate underutilized instances using AWS Trusted Advisor or Amazon Cloudwatch.

and turn them off.

Amazon CloudWatch Basic Monitoring metrics for EC2 instances are with no

additional charge. 10 metrics, 10 alarms, and 1 million API requests each month at

no additional charge.

AWS Trusted Advisor service is available if you have business or enterprise

support.

BEST PRACTICE

Use Reserved and Spot Instances

Fit your payment model to your business model: EC2 pricing plans

On-Demand

Instances

Reserved

Instances

Spot

Instances

Pay as you go for computing

power

Flat hourly rate, no up-front

commitments

Pay an up-front fee for a

capacity reservation and a

lower hourly rate (up to 75%

savings)

1-year or 3-year terms

RI Marketplace: Buy RIs with

short remaining terms

Pay what you want for spare

EC2 capacity: your instances

run if your bid exceeds the

Spot price

Potential for large scale at

low cost: When they’re

available, take advantage of

1,000s of Spot Instances at

up to 90% savings

Savings potential

• 58%: 1-Year Reserved

Instances

• 75%: 3-Year Reserved

Instances

http://aws.amazon.com/ec2/pricing/

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

100%

75%

58%

38%

13%

8%

On Demand Instance

Reserved Instance

AWS Trusted Advisor

identifies savings

attainable via

Reserved Instances

Amazon EC2 Instance Usage Report

Fit your payment model to your business model: EC2 pricing plans

On-Demand

Instances

Reserved

Instances

Spot

Instances

Pay as you go for computing

power

Flat hourly rate, no up-front

commitments

Pay an up-front fee for a

capacity reservation and a

lower hourly rate (up to 75%

savings)

1-year or 3-year terms

RI Marketplace: Buy RIs with

short remaining terms

Pay what you want for spare

EC2 capacity: your instances

run if your bid exceeds the

Spot price

Potential for large scale at

low cost: When they’re

available, take advantage of

1,000s of Spot Instances at

up to 90% savings

Use Amazon EC2 Reserved Instances if possible: get up to 75% savings +

capacity reservation

Consult AWS Trusted Advisor to identify reservations opportunities or use Amazon

EC2 Instance Usage Report

If not sure, start with the instances that are used 24/7

Use Spot Instances for stateless workloads - pricing starts at 90% off On Demand

AWS Trusted Advisor service is available if you have business or enterprise

support.

BEST PRACTICE

AWS’s higher-level

services automate

your work and save

time and money

CloudFront

DynamoDB

Amazon RDS

ElastiCache

Amazon Redshift

Amazon EMR

Amazon

Kinesis

Amazon

WorkSpaces

38

Cost optimization

by using AWS workspaces

Leon Backbier

Manager IT Endemol Shine Nederland

Amsterdam, 07 2015

Who We Are

Cost optimization by using AWS workspaces 39

Endemol Shine Group:

New joint venture bringing together Endemol, Shine and CORE Media,

Portfolio of international hits.

Creative operations in over 30 markets, portfolio of over 600 formats.

Across scripted and non-scripted genres, digital, gaming, and distribution.

Endemol IT challenge

Cost optimization by using AWS workspaces 40

Endemol IT couldn’t keep up with the business needs.

- More flexibility (Organization)

More flexibility and agility

Focus on applications & functional

improvements

Faster time to market

- Higher quality (Technical)

State of the art scalable IT

infrastructure

Unlimited scaling

Constant innovation

Availability

- Lower cost (Financial)

No more investments on hardware

Pay as we go / use

Lower risk no- upfront investments on hardware in case uncertain business projects

Clear allocation of IT cost to the business

Invest in functionality and talent, not in IT hardware

Why AWS Workspaces

Cost optimization by using AWS workspaces 41

Media productions are mainly driven by temporary employees

Change rate on personnel and media projects

On boarding and off- boarding is challenging and time consuming

Setup time for a new employee

Moving / dealing with hardware

BYOD

Just in time delivery

Cost allocation

Perfect fit

Architecture

Cost optimization by using AWS workspaces 42

EndemolHeadquarter

Internet

RemoteProductionLocation

AWS Direct Connect

VPN connection

Ireland

West-1a

Amazon Route 53 Amazon EC2 Amazon S3 Amazon Glacier AWS Storage Gateway Elastic Transcoder Amazon SES

West-1b West-1c

Workspaces

Amazon VPC Amazon SQS Amazon RDSAmazon EBSCloudFront

VPC peeringElastic Load Balancing IAM

RemoteProductionLocation

RemoteProductionLocation

Outcome

Cost optimization by using AWS workspaces 43

Cost savings 70% capex, 30% opex

No more unnecessary moving around, dealing with outdated hardware

or specific platform issues

Setup time: We are now talking about hours instead of days

Pay as we go / use

Lower risk no- upfront investments on hardware in case uncertain

business projects

Clear allocation of IT cost to the business

Invest in functionality and talent, not in IT hardware

L.H.M. (Leon) Backbier | Manager ICT | Endemol Shine Nederland Mob. +31651591408 | Leon.Backbier@enmg.nl | http://www.endemol.nl

Thank You!

Consider using higher level services, to take away time-consuming tasks, allowing

you to pursue higher value tasks

Consider Amazon Relational Database Service (RDS), that handles backups,

patch management, and replication for you.

Consult with Simple Monthly calculator to estimate your monthly costs

BEST PRACTICE

Control provisioning of

resources

Control who can

provision resources

Require

tagging

“No tags? No instance”

– Large financial services

customer in Boston

Control who can provision resources via AWS IAM

Once an instance is running, tag it.

Consider policy to stop instances without tags

Identity and Access Management offered at no additional charge. You will be

charged only for use of other AWS services by your users.

BEST PRACTICE

Design for elasticity

rather than deploy for

peak

Use Auto Scaling to

add resources when

needed, and turn them

off when not

Auto Scaling

00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

100%

75%

58%

38%

13%

8%

On Demand Instance

Reserved Instance

Design to scale up and scale down using Auto Scaling

Use Auto Scaling to add resources when needed, and turn them off when not

Auto Scaling carries no additional fees. Amazon EC2 and Amazon CloudWatch

service fees apply and are billed separately.

BEST PRACTICE

Understanding your

spend

The Billing Console

The Billing Console Dashboard

Current Month’s Spend

• Previous month comparison

• Include/exclude subscriptions

- Reserved Instances

- Premium Support charges

Notification Center

• Status of Billing Alerts

• Alarm on spending

threshold

• Issues with payment methods

• Outstanding charges

• Free Tier eligibility

• General notices regarding

your account or bill

Mobile Support

• Dashboard looks nice on mobile devices

• Quick view on how you are trending

Monitor and Alert

Create billing alerts to be notified automatically via e-mail when estimated charges

reached a limit

Get familiar with the billing console, use it to monitor your spend

Use the mobile Application to monitor your spend on the go

you get 10 Amazon CloudWatch alarms and 1,000 Amazon SNS email notifications

per customer per month without additional charges

BEST PRACTICE

BEST PRACTICES

Use Consolidated Billing to share volume discounts/ RIs across accounts1

Turn off underutilized instances2

Use Reserved and Spot Instances to save up to 90% over on demand3

Use managed services to free you to pursue higher value tasks 4

Control who can provision resources5

Design for elasticity rather than deploy for peak6

Create billing alerts to be notified when estimated charges reached a limit7

AMSTERDAM

“With 3 years Reserved Instances

we’ve been able to reduce the cost

for active users from 20 cents to

less than 1”

We are using AWS Trusted Advisor to

improve cost efficiency and to audit

the configurations of service

platforms