Running Lean on AWS

이수형 (niclee@amazon.com) Solutions Architect / AWS Korea

What is Cloud Computing? An analogy: think of electricity services…

Power is a utility service - available

to you on-demand and you pay

only for what you use.

You simply plug into a vast electrical grid managed

by experts to get a low cost, reliable power supply

– available to you with much greater efficiency

than you could generate on your own.

Cloud Computing is a utility service - giving you access to technology

resources managed by experts and available on-demand, available to

you with much greater efficiency than you could generate on your own.

You simply access these services

over the internet, with no up-front costs and

you pay only for the resources you use.

AWS Global

Infrastructure

Components

Regions An independent collection of AWS resources in a

defined geography

A solid foundation for meeting location-dependent

privacy and compliance requirements

Availability Zones (AZ) Designed as independent failure zones

Physically separated within a typical metropolitan region

Edge Locations To deliver content to end users with lower latency

A global network of edge locations supports global DNS

infrastructure (Route53) and Cloud Front CDN

On a global footprint

Region

US-WEST (Oregon) EU-WEST (Ireland)

ASIA PAC (Tokyo)

ASIA PAC (Singapore)

US-WEST (N. California)

SOUTH AMERICA (Sao Paulo)

US-EAST (Virginia)

GOV CLOUD

ASIA PAC (Sydney)

Availability Zone

On a global footprint

Edge Locations

Dallas(2)

St.Louis

Miami

Jacksonville Los Angeles (2)

Palo Alto

Seattle

Ashburn(2)

Newark New York (2)

Dublin

London(2)

Amsterdam Stockholm

Frankfurt(2) Paris(2)

Singapore(2)

Hong Kong

Tokyo

Sao Paulo

South Bend

San Jose

Osaka Milan

Sydney

On a global footprint

US West Region (Oregon)

Availability Zone A

Availability Zone B

Singapore

Availability Zone A

Availability Zone B

EU West Region

Availability Zone A

Availability Zone C

Availability Zone B

Each Region has multiple Availability Zones. Availability Zones are distinct locations that are engineered to be insulated from failures in other Availability Zones and provide inexpensive, low latency network

connectivity to other Availability Zones in the same Region.

Cloud Computing Characteristics

All Clouds are NOT created equally

You begin your Startup in a garage…

…and build a fantastic app

people love it!

and everyone wants to use it…

Now what?!

Which company…

…grew to 14 million users in just over a year

…reached 150 million photos & terabytes of data

…signed up 10 million users in 12 hours after launching an Android app

…with only 3 engineers?

HOW?

“Cloud is like a fertilizer that creates

Startups”

Eric Ries, author of NY Times

bestseller “The Lean Startup”

=

Benefits for Startups across the Lifecycle

Why Launch on the Cloud?

Lowering Costs with Smart Pricing

Lowering Costs with Architecture

Benefits for Startups across the Lifecycle

“Amazon Web Services is probably the most

important thing that has happened to mobile

and web app developers that the press just

misses. Jeff Bezos has accidentally or maybe

on purpose powered a whole generation of

applications.”

Steve Blank, author of “The Four

Steps to Epiphany”

“a whole generation of application…on AWS”

E-commerce Social Media

Media Sharing SaaS

Gaming

Mobile Apps

Big Data – Hadoop, HPC, etc Ad hosting and analytics

Storage, backup, and disaster recovery Life Sciences (sequencing, simulation, etc.)

01 02 03 04

idea demo monetize scale

How do I

develop fast

and get to

market faster?

How do I

deal with

unpredictable

demand & scale

up easily?

How do I run

lean and

continue to grow

my revenue?

Launch your infrastructure in a few clicks so you can Reduce

Time to Market

Pay only what for you use, with no commitment and lock in, so you

can Experiment More at Lower Costs

Leverage community support, SDK’s, libraries, and more to

achieve Shorter Development Cycles

Experiment More & Develop Faster

aws.amazon.com/code aws.amazon.com/architecture

Code, Libs, SDK’s, Architectures

“AWS was the clear choice for us. They enabled us to launch our cloud

solution quickly with reliable, uninterrupted, secure service to our customers.”

Jaspreet Singh, Founder & CEO

Getting Started = FREE

“AWS Free Usage Tier = more startups. Awesome”

Tweet by Eric Ries

Elastic Compute Cloud (EC2)

Simple Storage Service (S3)

DynamoDB & SimpleDB

Simple Workflow (SWF)

Simple Queue Service (SQS)

Simple Notification Service (SNS)

Relational Database Service (RDS)

CloudWatch

Data Transfer

Full Elasticity for Maximum Scalability

Scale to 1000s of servers in minutes

Add billions of objects with Amazon S3

Globally distribute petabytes of data

Select any level of desired throughput

Fully automate the process of scaling up & down

“AWS is great for scalable requirements, whether you need to

scale up quickly, or even to scale down quickly, if required.”

Vishal Gondal, CEO of Indiagames

70:30

Reduce Costs & Grow revenue

Pay only what for you use, with no commitment and lock in, so

No Up-Front Capital Expense

Leveraging our large scale, we have reduced our prices 19 times

in the last years, leading to Low Costs

AWS removes undifferentiated heavy lifting – allowing you to focus

on your business and Generate Revenue

"With the time savings that the IT and development staffs obtain from

the solution, AWS gives us an overall cost benefit of about 30-40%.”

Why Launch on the Cloud?

Pay as you go

When calculating TCO…

#1 Start by understanding your use cases & usage patterns

On and Off Fast Growth

Variable peaks Predictable peaks

Usage Patterns

Traditional HW / Hosting

On and Off Fast Growth

Predictable peaks Variable peaks

WASTE

CUSTOMER DISSATISFACTION

AWS = Elastic Capacity

Fast Growth On and Off

Predictable peaks Variable peaks

When calculating TCO…

#1 Start by understanding your use cases & usage patterns

#2 Apples to Apples – Take all the fixed costs into consideration

When calculating TCO…

#1 Start by understanding your use cases & usage patterns

#2 Apples to Apples – Take all the fixed costs into consideration

#3 Leverage economies of scale & price cuts

Each day AWS adds the

equivalent server capacity to

power Amazon when it was a

global, $5.2B enterprise

(circa 2003)

Massive economies of scale and efficiency improvements allow us to continually lower

prices – 26 price cuts in last 6 years

When calculating TCO…

#1 Start by understanding your use cases & usage patterns

#2 Apples to Apples – Take all the fixed costs into consideration

#3 Leverage economies of scale & price cuts

#4 Take a look at what’s included: Intangible Cost Savings !

New Customers

Amazon EC2

Amazon RDS

Amazon ELB

Amazon S3

Amazon EBS

For All Customers

Amazon SQS/SNS

Amazon DynamoDB

Amazon SES

Amazon SWF

And more…

AWS Elastic Beanstalk

AWS CloudFormation

AWS IAM

Auto Scaling

Consolidated Billing

No Charge for

Inbound Data Transfer

Data Transfer between

Instances within an

Availability Zone

Free Usage Tier

Did you know?

Free Services Data Transfer

With AWS…

…standing on the shoulder of giants.

These Indian companies… are getting the same… as these companies:

DURABILITY

SECURITY

SCALABILITY

RELIABILITY

AFFORDABILITY

These Indian companies benefit from AWS… just like these companies:

E-COMMERCE

CONSUMER APPS

GAMING

ENTERPRISE / SaaS

MEDIA

Lowering Costs with Smart Pricing

Multiple pricing models allow you to optimize costs for both variable and stable workloads

Save more when you reserve

On-demand Instances

• Pay as you go

• Starts from $0.02/Hour

Reserved Instances

• One time low upfront fee + Pay as you go

• $23 for 1 year term and $0.01/Hour

Utilization RI option Savings over On-Demand

<10% On-Demand

10% - 40% Light Utilization RI Up to 56%

40% - 75% Medium Utilization RI Up to 66%

>75% Heavy Utilization RI Up to 71%

3 versions:

• Light Utilization RI

• Medium Utilization RI

• Heavy Utilization RI

2 terms:

• 1-year

• 3-year

• 80 million objects stored in S3 with 410 terabytes of user data

• 150 EC2 instances in the web tier

• 90 instances for in-memory caching

• 35 instances used for internal purposes

• 70 master databases with a parallel set of backup databases in

different regions around the world for redundancy

Pinterest attracted almost 18 million visitors in March, a 50% increase from

February (ComScore). One of the fastest growing sites in the history of the web…

• Most traffic happens in the

afternoons and evenings, so

they reduce the number of

instances at night by 40%.

• At peak traffic $52 an hour is

spent on EC2 and at night,

during off peak, the spend is

as little as $15 an hour. The

difference is an amazing 71%

On-demand Instances

• Pay as you go

• Starts from $0.02/Hour

Reserved Instances

• One time low upfront fee + Pay as you go

• $23 (1 year) $0.01/Hour

Spot Instances

• Requested Bid Price and Pay as you go

• Varying…$0.005/Hour at 9am today

Save more money by using Spot Instances

Up to 85% savings over On Demand pricing

Spot Use cases

Use Case Types of Applications

Batch Processing Generic background processing (scale out computing)

Hadoop Hadoop/MapReduce processing type jobs (e.g. Search, Big Data, etc.)

Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and biology

Video and Image Processing/Rendering

Transform videos into specific formats

Testing Provide testing of software, web sites, etc

Web/Data Crawling Analyzing data and processing it

Financial Hedgefund analytics, energy trading, etc

HPC Utilize HPC servers to do embarrassingly parallel jobs

Cheap Compute Backend servers for Facebook games

Lowering Costs with Architecture

“Give me 4 fault tolerant algorithms and I can pick the

best one almost with my eyes closed.

If you then ask me which one is best for the business,

in terms of dollar costs, I would be clueless.”

An engineer named

Werner Vogels, CTO, Amazon

1. CACHE at the edge to offload static and dynamic content

2. DRY (‘Don’t Repeat Yourself’)

3. LOAD BALANCE from the start

4. AUTO SCALING done right

5. PILOT LIGHT for smart & cost effective DR

6. DATABASE smarts

7. A/B TEST for rapid prototyping & innovation

Lowering Costs with “Best Practice Architecting”

Overview of Services

Compute Content

Delivery

Storage Database Application

Services

Networking

Deployment &

Management

CACHE at the edge to offload static & dynamic content • reduce your compute demand and costs • improve end-user experience • increase reliability and durability

+

Reduce EC2 Costs by Caching & Off-loading

DRY (don’t repeat yourself) • original vs. derived assets : 33% savings • single reference and consistency • control, accurate logs and tracking

S3 (or Glacier) RRS

Reduce Costs of Storage by using S3 “RRS”

LOAD BALANCE from the start • ready for massive scale, high reliability • uninterrupted growth and evolution • stateless and redundant array

Availability Zone

Availability Zone

Lowering Costs with “Best Practice Architecting”

Buuk for Singapore Press Holding (SPH)

AUTO-SCALING done right with Real Time reaction response • Elastic Load Balancing and (event driven) Auto Scaling • notification of pending news flash (with audible alarm) • on-demand ramp up of capacity (6 mins.) • subscriber alert push delivered • mass response traffic handled (followed by ramp down)

Lowering Costs with “Best Practice Architecting”

Reduce Costs of DR with “Pilot Light” design

PILOT LIGHT for smart & cost effective DR • In traditional IT, Disaster Recovery (DR) is an after-thought • Costs of DR site are often an additional 80% of main DC • Problems occur in Layer 8 of OSI-model (anyone?) • With AWS, DR can be built into your architecture • Example: ‘Pilot Light’ design, which is cost effective and provides

fast Recovery Time Objective / Recovery Point Objective

It looks like this…

Basic level EC2

Provisioned yet

Dormant

Singapore Region US East Region

Auto scaling Group

Resize to production

Capacity and/or add

read replicas

Start up in minutes,

Auto scale up in

minutes

Singapore Region US East Region

Auto scaling Group

Best Practices

DATABASE smarts • scale out and share work • optimal performance, minimize load • enhance reliability, ensure data safety • cost reduction

Availability Zone

Availability Zone

Reduce Costs of Test/Dev and A/B Testing

A/B TEST for rapid prototyping & innovation • inexpensive idea validation • seamless switch over and versioning • rapid dev / test agility

In Summary…

AWS Pricing Philosophy

Pay as you go

Pay less per unit when you use more

Pay even less when you reserve • Reserved pricing

Pay even less when you architect for cost optimization • Smart architecting and leveraging AWS managed services

Pay even less as AWS grows • AWS economies of scale result in continuous price reductions

What does this look like in practice?

An example

Enterprise software provider in APAC

Focused on SaaS for storage, security, collaboration, etc.

Backed by leading VC’s in the region

Strong growth – winning customers globally

Focused on profitability & reducing unit costs

Worked closely with the AWS team to optimize its architecture

Profit

Growth

-10%

price drop

in S3

-20%

RI purchase

-22%

Migration

Cassandra

to Dynamo

-18%

Price drop in

S3 of 25%

54%

reduction in

unit costs

Questions?

이수형 (niclee@amazon.com) Solutions Architect / AWS Korea