Built-in Guidance: Public Cloud OptimizationTricia Pattee, VP of Product, HOSTINGMike McCracken, VP of Advanced Solutions, HOSTING

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Housekeeping

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• 85% of organizations have a multi-cloud strategy

• AWS remains in the lead, but competition is growing

• 52% are moving more workloads to the cloud

• Nearly half of organizations are implementing a cloud first strategy

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Public Cloud Adoption

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Implementation Trends:

• Lack of expertise/resources is biggest issue

• Staffing resources is extremely difficult

• Security remains a big concern

• Lack of centralized cloud governance

• Pricing is complicated and difficult to forecast

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Cloud Challenges

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Public Cloud Cost Optimization

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• Architectural Optimization

• Automation

• Resource Lifecycle Management

• Smart Procurement

4 Ways to Optimize Cloud Costs

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• Uncover overprovisioned devices

• Evaluate storage IOPS

• Choose the right instance types

• Choose the right product

• Evaluate licensing

Architectural Optimization

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Automation

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• Infrastructure as Code

• DevOps Automation

• Demand-Based Infrastructure

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Infrastructure as Code

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DevOps Automation

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Demand-Based Infrastructure

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• Automated Scaling

• Time of Day/Week/Month

• Usage Triggers

• On Demand Environments

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• Terminate unused instances

• Identify orphaned storage volumes

• Assign owners to resources & projects

• Just-in-time resource provisioning/de-provisioning

Resource Lifecycle Management

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Smart Procurement

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• The right cloud for the workload

• The right location

• The right resources

• Resource-type standardization

• Purchase commitments

• Billing Alerts

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The Right Cloud

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

AWS OnDemand

AWS 1-YearCommit

Azure OnDemand

Azure Ent.Agreement

Private Cloud

Estimated Single Virtual MachineMonthly Fee by Cloud

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The Right Location

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

United States Europe Asia

Estimated Single Virtual MachineMonthly Fee by Location

AWSOn Demand

AzureOn Demand

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AWS Instance

types (2 vCPU) RAM (GB) Annual Cost

t2.medium 4 $456

t2.large 8 $911

c3.large 3.75 $920

c4.large 3.75 $964

m4.large 8 $1,104

m3.large 7.5 $1,165

r3.large 15.25 $1,533

The Right Resource

3x Cost

Differential

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Resource Standardization

Instances

• 10 @ c3.2xlarge

• 5 @ c3.4xlarge

• 7 @ c4.2xlarge

• 3 @ m1.large

• 25 @ m3.2xlarge

• 17 @ m3.large

• 5 @ m3.medium

• 2 @ m4.2xlarge

• 1 @ m4.xlarge

• 50 @ t2.medium

• 10 @ t2.micro

• 9 @ t2.small

One-Off Instances

• 5 @ c3.4xlarge

• 3 @ m1.large

• 5 @ m3.medium

• 2 @ m4.2xlarge

Business Unit Standard Instances

• 10 @ c3.2xlarge

• 7 @ c4.2xlarge

• 25 @ m3.2xlarge

• 17 @ m3.large

• 10 @ t2.micro

Corporate Standard Instances

• 7 @ c4.2xlarge

• 1 @ m4.xlarge

• 50 @ t2.medium

• 9 @ t2.small

On-DemandInstance Purchase

(No Discount)

1-YearR.I. Purchase

(Base Discount)

3-YearR.I. Purchase

(Maximum Discount)

Amazon Marketplace R.I. Purchase/Sale

Reserved Instance purchase/sale to cover over and under Reserved

Instance purchases

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Purchase Commitments

Workloads

• Relatively standard instance types

• Relatively consistent usage

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10 20 30 40 50 60 70 80 90 100

Number of C4.Large Instances

Mark

Min

Max

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Amazon EC2 Reserved Instances (RI) provide a significant discount (up to 75%) on EC2 Instance costs compared to On-Demand pricing.

AWS Reserved Instance Defined

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AWS Billing automatically applies your RI’s discounted rate when attributes of EC2 instance usage match attributes of an active RI.

Instance Type &Tenancy

Region orAvailability Zone

Platform

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Reserved Instance -v- Instances

Amazon EC2 Reserved Instances (RI) are a COUPON that is applied to a customer’s monthly bill. RI’s are not an actual Instance purchase

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Applying Reserved Instance Credits

Amazon EC2 Reserved Instances (RI) must be applied to Instance purchases of the same instance type, tenancy, region/availability zone and platform

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Reserved Instance Purchasesin Action

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Reserved Instance Pricing

EC2 Instance Type AWS Region Operating System

MonthlyOn Demand

List Price

MonthlyDiscountAmount

MonthlyDiscount

Percentage

MonthlyReserved InstanceDiscounted Price

US East (N. Virginia)

c3.2xlarge US East (N. Virginia) Linux/UNIX $306.60 $80.56 26% $226.04

c3.4xlarge US East (N. Virginia) Linux/UNIX $613.20 $160.08 26% $453.13

c4.2xlarge US East (N. Virginia) Linux/UNIX $290.54 $74.08 25% $216.46

m1.large US East (N. Virginia) Linux/UNIX $127.75 $40.77 32% $86.98

m3.2xlarge US East (N. Virginia) Linux/UNIX $388.36 $92.53 24% $295.83

m3.large US East (N. Virginia) Linux/UNIX $97.09 $22.82 24% $74.27

m3.medium US East (N. Virginia) Linux/UNIX $48.91 $12.14 25% $36.77

m4.2xlarge US East (N. Virginia) Linux/UNIX $314.63 $88.38 28% $226.25

m4.xlarge US East (N. Virginia) Linux/UNIX $156.95 $44.24 28% $112.71

t2.medium US East (N. Virginia) Linux/UNIX $34.31 $5.66 17% $28.65

t2.micro US East (N. Virginia) Linux/UNIX $8.76 $1.57 18% $7.19

t2.small US East (N. Virginia) Linux/UNIX $16.79 $2.52 15% $14.27

US West (Oregon)

t2.small US West (Oregon) Linux/UNIX $16.79 $2.52 15% $14.27

EU (Frankfurt)

c4.2xlarge EU (Frankfurt) Linux/UNIX $331.42 $64.02 19% $267.40

t2.micro EU (Frankfurt) Linux/UNIX $10.22 $2.20 22% $8.02

NOTESAll discounting Assumes 1-year term with no upfront purchase

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HOSTING SERVICES

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Hybrid Infrastructure

on-premise

HOSTING PUBLIC CLOUD SERVICES

For more information on how HOSTING can help guide your business to the cloud, go to www.HOSTING.com

Q&A