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!