Moving to the cloud is one of the best decisions you can make for your business. The low startup costs, instant elasticity, and near endless scalability have lured many organizations from traditional datacenters to the cloud. Although cloud startup costs are extremely low, over time the burgeoning use of resources within an AWS account can slowly increase the cost of operating in the cloud.
One service AWS provides to help with watching the costs of an AWS environment is AWS Trusted Advisor. AWS touts the service as “your customized cloud expert” that helps you monitor resources according to best practices. Trusted Advisor is a service that runs in the background of your AWS account and gathers information regarding cost optimization, security, fault tolerance, and performance. Trusted Advisor can be accessed proactively through the support console or can be setup to notify you via weekly email.
The types of Trusted Advisor notifications available for Cost Optimization are Amazon EC2 Reserved Instance Optimization, Low Utilization Amazon EC2 Instances, Idle Load Balancers, Underutilized Amazon EBS Volumes, Unassociated Elastic IP Addresses, and RDS Idle DB Instances. Within these service types, Trusted Advisor gives you four types of possible statuses; “No problems detected,” “Investigation recommended,” “Action recommended,” and “Not available.” Each one of these status types give insight to how effectively you are running your account based on the best-practice algorithm the service uses. In the below example, AWS Trusted Advisor points out $1,892 of potential savings for this account.
Each one of these notifications adds up to the total potential monthly savings. Here is one “Investigation recommended” notification from the same account. It says “3 of 4 DB instances appear to be Idle. Monthly savings of up to $101 are available by minimizing idle DB Instances.”
Clicking the drop down button reveals more:
The full display tells you exactly what resource in your account is causing the alert and even gives you the estimated monthly savings if you were to make changes to the resource. In this case the three RDS instances are running in Oregon and Ireland. This particular service is basing the alert on the “Days since last connection,” which is extremely helpful because if there have been no connections to the database in 14+ days, there’s a good chance it’s not even being used. One of the best things about Trusted Advisor is that it gives the overview broken down by service type and gives just enough information to be simple and useful. We didn’t have to login to RDS and navigate to the Oregon region or the Ireland region to find this information. It was all gathered by Trusteed Advisor and presented in an easy to read format. Remember, not all of the information provided may need immediate attention, but it’s nice to have it readily available. Another great feature is each notification can be downloaded as a Microsoft Excel spreadsheet that allows you to have even more control over the data the service provides.
Armed with the Trusted Advisor tool you can keep a closer eye on your AWS resources and gain insight to optimizing costs on a regular basis. The Trusted Advisor covers the major AWS services but is only available to accounts with Business or Enterprise-level support. Overall, it’s a very useful service for watching account costs and keeping an eye on possible red flags on an account. It definitely doesn’t take the place of diligent implementation and monitoring of resources by a cloud engineer but can help with the process.
– Derek Baltazar, Senior Cloud Engineer
Cloud has been positioned as the panacea for all of the ills in the world. The hype often leaves experienced IT professionals skeptical of the benefits of leveraging public clouds. The most common objection to public cloud I hear is, “Wait until you get your first bill from (public cloud).” I can understand the fear and consternation of suddenly having a huge monthly bill that no one budgeted. However, there are great 3rd party tools available that allow you to forecast and track your budget and usage, like 2W Insight, which make that uncomfortable situation avoidable.
With the recent price cuts by Amazon Web Services, Microsoft and Google, the TCO argument from the traditional hardware manufacturers is losing steam. When is the last time any major hardware vendor cut its prices to its customers by 40-60% overnight? There is no better time to begin evaluating and leveraging the cloud, and a great place to start is with a TCO analysis.
2nd Watch has a services practice that can assist your organization in building an accurate monthly forecast of your estimated cloud costs while also providing a full TCO analysis.
-Matt Whitney, Cloud Sales Executive
Hello Cloud fans,
Today I’d like to talk to you about some commonly perceived cloud myths that I’ve encountered in my travels, helping to solve the challenges of getting to the cloud.
It’s simple to use the cloud to SaaS-i-fy my software platform.
A common misconception is that it’s immediately cheaper and easier to provide a software product or service as a subscribed cloud based service over the Internet. However, what some teams can often under-estimate is the operational dependencies it takes to support an application that was built under the assumption that it was being installed into an environment that had all its security, authentication, storage, backup, and recovery already taken care of.
There is no magic support staff in the cloud for all the operational components your software still requires. While you may gain efficiency in dynamically scaling your environment and better streamlining individual client support costs, the real cloud savings come in better understanding all the options available to you in the AWS services catalog and how best to leverage them to reduce costs as you refactor your software platform. All coding is not evil!
Deploying enterprise apps in the cloud is just about pressing some buttons.
When most customers considering deploying their first application into the cloud, they tend to underestimate the effort that is involved in actually building, ing, and deploying that solution. Typically, in a co-lo type deployment there is a great deal of time taken up in the procurement and logistics with getting environments setup, which can cause support challenges and shortcuts to be taken.
Because cloud environments are more dynamic, resources can be created in a much shorter timeframe, but it requires synchronized activity over a more compressed timeframe from a number of different parties including your IaaS provider, your internal application team, and your 3rd party software ISV. Depending on your 3rd party’s relative experience with the AWS cloud, this can be a rewarding or sometimes frustrating and drawn out process. The good news is that once you figure out how to deploy that app, you can easily repeat the process with automated cloud formation and auto-scaling benefits. Fortunately here at 2nd Watch, we’ve done quite a few application deployments in our cloud life!
Becoming cloud savvy is as easy as opening an Amazon account and getting to work spinning up instances.
One of the most expensive mistakes I see with companies approaching the cloud for the first time is having no plan on how to design and create their first environments on the AWS cloud. I mean, how hard could it be? This is Amazon after all. Well, the truth is Amazon Web Services has continued to innovate over the 10 or so years they’ve been doing this cloud thing, and as a result they now have hundreds of services catering to a vast universe of data-center needs.
Properly recognizing both the good design elements of your current IT environment and how best to take advantage of these AWS services is critical to achieving the phenomenal benefits you can realize in operational efficiency, high-availability, and designing best practice environments. Like many other significant choices in life, you can save yourself a lot of pain by getting the advice of a pro you trust before plunging into an unknown subject. Those that just jump in and start turning (and leaving!) stuff on 24×7 without a game plan can wake up with a nasty surprise when they see their first bill.
Let me know what you think in the comments!
-C. Caleb Carter, Solutions Architect
Cloud computing continues to redefine itself as more customers begin their “Journey to the cloud.” There are many value propositions between different cloud providers, including, but are not limited to; agility, cost savings, time to market, increased security, flexibility, elasticity, economies of scale, a more effective support model, and the list continues.
As we start to understand the cloud provider landscape and take a snapshot into who is going to be the market leaders in the future, it is easy to see that Amazon Web Service (AWS) will be amongst that leader board. AWS is not only defining the IT infrastructure as a Service market, but it is also changing the consumption model for IT.
Due to the drastic changes in the procurement process of infrastructure, more business level executives (CFO, COO, CEO) are being pulled into the strategic decision making process of acquiring infrastructure as a service. For those executives that are not familiar with cloud services, I would like to offer a few tips that will not only support your overall corporate goals, but will allow you to make informed decisions in this highly evolving landscape of cloud computing.
- Train yourself on the new model – Changing your company’s IT spend from a capital expenditure model to an operational model can be challenging. Consult with your AWS account manager on best practices. Discuss your goals with a Premier Partner within AWS’ ecosystem. Converse freely within your company to understand how you can address potential roadblocks before they happen. The procurement department and the finance teams within your organization will have great insight on how to help with this process.
- Be cautious of jumping in with two feet – Many organizations are starting their journey with a hybrid model (on-premise + cloud). Test/DEV, disaster recovery, or non-production applications are all great candidates for moving to the cloud. Your ERP system and your mission critical applications may still have some lifecycle on their existing infrastructure and should remain on-premise until an evolutionary plan can be developed. Start small, think big and enable your staff to learn the technology, while still supporting your organization’s goals and business objectives.
- Leverage the free tier – AWS offers a free usage tier and has no restrictions on your particular use-case. Spin up a new application, train your engineers on the new platform, or simply an existing application. The choices are yours to make, and it will not affect your bottom line.
- Reserve Instances – For the applications that are running in a steady state or have a consistent operating floor, purchase reversed capacity. This will immediately give you cost efficiency between 40%-70% off your on-demand billing.
- Get rid of excess capacity – Many organizations are accustomed to procuring IT infrastructure that has been over provisioned to meet the demand of peaks and spikes in their business. With cloud computing, you do not need to allocate excess capacity. With the proper architecture, it will be waiting for you when you need it. Optimize your environment(s) and leverage one of the grea advantages of cloud computing.
- Tiered Pricing – For heavy users of cloud services, AWS offers tiered pricing to customers that consume web services up to certain thresholds. Review these tiers and forecast your roadmap to meet these levels before reporting deadlines (fiscal year ends).
If you follow these guidelines, your business will be sure to reach cost efficiency in the cloud.
-Blake Diers, Alliance Manager
Last week, AWS announced their 42nd price reduction since 2008. This significant cut impacts many of their most popular services including EC2, S3, EMR, RDS and ElastiCache. These savings range from 10% to 65%, depending on the service you use. As you can see from the example below, this customer scenario results in savings of almost $150,000 annually, which represents a 36% savings on these services!!!
This major move not only helps existing AWS users but makes the value proposition of shifting from on-premise to the AWS cloud even greater. If you are not on AWS now, contact us to learn how we can help you take advantage of this new pricing and everything AWS has to offer.
As an AWS Premier Consulting Partner, our mission is to get you migrated to and running efficiently in the Amazon Web Services (AWS) cloud. The journey to get into the AWS cloud can be complicated, but we’ll guide you along the way and take it from there, so you can concentrate on running your business rather than your IT infrastructure.
2nd Watch provides:
- Fast and Flawless enterprise grade cloud migration
- Cloud IT Operations Management that goes beyond basic infrastructure management
- Cloud cost/usage tracking and analytics that helps you control and allocate costs across your enterprise
Yes, I know, everyone is tired of hearing about the Cloud. It seems like talk about the cloud happens all day, every day, and you know that it’s hit the mainstream when your mom asks you about it. The reality is that we’re still so early in “The Journey” (yes, we call it that because it truly is one.) that it can be impossible to distill the tremendous amount of noise that exists around the topic. Let’s spend a few precious moments identifying the cloud myths that are swirling about and try to myth bust a bit.
Legacy – I have too much invested in my legacy systems, tools and processes that makes moving to the cloud too hard or just not worth it.
That’s partly true. Many companies have a lot of legacy systems and infrastructure out there. So much so that it clouds (no pun intended) their view on what’s possible. It’s like quicksand; the more time and money invested in legacy systems and architectures, the deeper and deeper you get, and it just seems impossible to get out. There is a way out though, and the first step forward is actually to take a step back and understand where you are today. From there, we’d suggest taking stock of what’s in your environment and seeing what’s ready to move to the cloud.
Security – It’s not secure. I’ll be sharing my data with everyone else.
That’s absolutely not true. The public cloud is extremely secure. These environments have been built to adhere to the most stringent security standards on the planet. Cloud providers take an in depth approach, going above and beyond to ensure that security permeates throughout the environment.
Agility – What am I really gaining? There can’t really be as much benefit as people are saying.
When we talk to any business person, lack of agility is typically their number one challenge. Traditional legacy, or even co-location infrastructure, is designed and built so that it doesn’t allow for the flexibility companies need in the constantly changing world. The need to continually evolve and the ability to “fail fast” are so important to businesses today, and the cloud enables you to do just that. You can literally create a global infrastructure in a matter of minutes that runs only when you need it. The benefits are dizzying.
Cost – I hear that it will actually cost me more to run in the cloud.
There are tremendous economies of scale to be gained by building out the massive footprint that the existing public cloud providers have built. It’s enabled them to get such a head start that it’s downright unbelievalbe what you can do today at a fraction of the cost of doing it in a traditional IT world. There are a number of TCO calculators out there that will show you the cost of running infrastructure on-prem vs in the cloud. Take a look at the calculator we built for AWS and see for yourself by plugging in your own numbers.
Best of Breed – I can use any cloud provider. They’re all the same.
There is an entire body of knowledge dedicated to the cloud landscape, how mature each company’s offerings are and where they fit in the overall landscape. I am a firm believer that you build your company to be as agile as possible, trying to eliminate brittle and hard linkages. Please check out the following link for an independent analyst’s view of today’s cloud landscape.
See what Gartner is Saying about the Cloud
Org Structure – I can use cloud as I see fit and keep things the way they’ve normally been internally.
True innovation is happening here. The industry is attracting the absolute best and brigh talent, and the pace of innovation will only accelerate. I’m not saying you need to stay ahead of it. The goal is to keep pace and not fall behind. We can help you do that!
-Mike Triolo, General Manager – Eastern US