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Cloud Optimization and Cost Control

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Presentation on theme: "Cloud Optimization and Cost Control"— Presentation transcript:

1 Cloud Optimization and Cost Control

2 Introduction https://www.twitter.com/rvackooij/

3 Cloud Service Models DESKTOP INFRASTRUCTURE DISASTER RECOVERY PLATFORM
AS A SERVICE Applications Applications Applications INFRASTRUCTURE AS A SERVICE Customer Data Data Data Customer DISASTER RECOVERY AS A SERVICE Operating System Operating System Operating System PLATFORM AS A SERVICE Virtualization Virtualization Virtualization Provider BACKUP AS A SERVICE Servers Servers Servers Provider Provider SOFTWARE AS A SERVICE Storage Storage Storage ANYTHING …….. AS A SERVICE Networking Networking Networking

4 Customer Customer Provider Provider Provider Applications Applications
Data Customer Data Data Operating System Operating System Operating System Virtualization Virtualization Virtualization Provider Servers Servers Provider Servers Provider Storage Storage Storage Networking Networking Networking

5 Moving to the Cloud - I Moving to the Cloud is not per definition cheaper IT Expenditure will not decrease the next 10 years It is not just moving your VM’s (IaaS) It is not a single Project It is not even a Program It is an organization-wide journey

6 Moving to the Cloud - II Initially Microsoft never planned to do VMs on Azure (IaaS) But it is not the way to go By now, IaaS is by far the largest Service on Azure Lift and Shift tools are all over the place And still, it is not the way to go (or at least, not where you want to end up)

7 Moving to the Cloud - III
From the Business Perspective (and Requirements): Preferred solutions is a SaaS Solution If not available, a PaaS Solution is 2nd best Last Resort = IaaS Solution To optimize TCO and ROI, Effectiveness

8 Customer Customer Provider Provider Provider Applications Applications
Data Customer Data Data Operational cost per IT Service will decrease Operating System Operating System Operating System Virtualization Virtualization Virtualization Provider IT Expenditure will probably not decrease anywhere in the future Servers Servers Provider Servers Provider Storage Storage Storage Networking Networking Networking

9 Let’s compare Service models
0.00 hrs - TIME hrs COSTS IaaS IaaS Scale PaaS PaaS Scale Serverless

10 Cost Saving – Case Scenario

11 Cost Saving – Case Scenario
Azure Website Auto scaling, including Load Balancing SQL Database as a Service Results in lean PaaS Deployment, isolated per client/app

12 Cost Reporting I The Azure Subscription Invoice specifies only Resources being used based on their meters. Not very insightful

13 Cost Reporting II Subscription is the highest level of Cost Aggregation Multiple Subscriptions gain some Insights Within Subscriptions use Tags and Resource Groups Reconciliation between Invoice and Reports remains tough.

14 Cost Reporting III But it get’s better, through continuous improvements.

15 Cost Saving, Reserved Instances
CPU/RAM ratio (Balanced, CPU+, RAM+) A, B, D, E, F and G Series Storage Speed (heavy Database Transactions) L Series GPU Rendering (heavy Graphics Rendering) N Series HPC (High Performance Computing) H Series Reserved Instance is bought for VM Compute (CPU + RAM) in one of those series

16 Cost Saving, Reserved Instances II
Enterprise Agreement In Azure Management Portal, comes out of Monetary Commitment Pay-As-You-Go In Azure Management Portal, billed immediately CSP Ask your Microsoft CSP Partner

17 Azure Reserved Instances, how it works
The Bucket $$$ leaks, it will be empty after 1 year. 8,760 hourly drops If no VMs are running, the $$$ goes down the drain If VMs are running the $$$ reduce cost up to 2 Cores and 8 GB of RAM

18 Etcetera for all the other hours
Azure Virtual Machine, Reserved Instances Azure VM Reserved Instance covers CPU+RAM (not Storage, not Networking, not Licensing) Running a VM “Standard_D2-V3” from till 24/7 Will deplete the Reservation 100%, calculated on an HOURLY basis -> Most cost savings (EA, CSP, Pay-As-You-Go) Running TWO VMs “Standard_D1-V3” (1 Core, 4 GB RAM) Running TWO VMs “Standard_D2-V3” (2 Core, 8 GB RAM) from till 24/7 Will deplete the Reservation in 1 hour for VM1 and VM2 will be chardged as EA, CSP, Pay-As-You-Go Etcetera for all the other hours

19 Cost Saving, Features Reserved Instances: For VMs (CPU+RAM, Iaas)
For SQL Databases (PaaS) For CosmosDB (PaaS) Hybrid Licensing Requires Software Assurance on Windows/SQL Server Licenses through Volume Licensing Purchase Windows/SQL Server through CSP Channel Combining these 2 can save up to 80% in costs

20 Governance Azure Blueprints Stay in (Cost) Control: Azure Policy
ARM Templates Management Groups Role Based Access Subscriptions Resource Groups Tags Azure Blueprints

21 Governance Managing Subscriptions and Privileges/Constraints to deploy Resources Management Groups Blueprints ARM Templates Azure Policy

22 Learning I Note from the Field; Most Organizations:
did “Lift & Shift” resulting in plain IaaS have no insights in Cost, no Tags, have no Governance, no Blueprints Why? Discussion

23 Thank you!


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