Given that spring is very much in the air – at least it is here in Northern Virginia – our attention has turned to tidying up the yard and getting things in good shape for summer. While things are not so seasonally-focused in the world of cloud, the metaphor of taking time out to clean things up applies to unused cloud resources as well. We have even seen some call this ‘cloud pruning’ (not to be confused with the Japanese gardening method).
Cloud pruning is important for improving both cost and performance of your infrastructure. So what are some of the ways you can go about cleaning up, optimizing, and ensuring that our cloud environments are in great shape?
Delete Old Snapshots
Let’s start with focusing on items that we no longer need. One of the most common types of unused cloud resources is old Snapshots. These are your old EBS volumes on AWS, your storage disks (blobs) on Azure, and persistent disks on GCP. If you have had some form of backup strategy then it’s likely that you will understand the need to manage the number of snapshots you keep for a particular volume, and the need to delete older, unneeded snapshots. Cleaning these up immediately helps save on your storage costs and there are a number of best practices documenting how to streamline this process as well as a number of free and paid-for tools to help support this process.
Delete Old Machine Images
A Machine Image provides the information required to launch an instance, which is a virtual server in the cloud. In AWS these are called AMIs, in Azure they’re called Managed Images, and in GCP Custom Images. When these images are no longer needed, it is possible to deregister them. However, depending on your configuration you are likely to continue to incur costs, as typically the snapshot that was created when the image was first created will continue to incur storage costs. Therefore, if you are finished with an AMI, be sure to ensure that you also delete its accompanying snapshot. Managing your old AMIs does require work, but there are a number of methods to streamline these processes made available both by the cloud providers as well as third-party vendors to manage this type of unused cloud resources.
With the widespread adoption of containers in the last few years and much of the focus on their specific benefits, few have paid attention to ensuring these containers are optimized for performance and cost. One of the most effective ways to maximize the benefits of containers is to host multiple containerized application workloads within a single larger instance (typically large or x-large VM) rather than on a number of smaller, separate VMs. In particular, this is something you would could utilize in your dev and test environments rather than in production, where you may just have one machine available to deploy to. As containerization continues to evolve, services such as AWS’s Fargate are enabling much more control of the resources required to run your containers beyond what is available today using traditional VMs. In particular, the ability to specify the exact CPU and memory your code requires (and thus the amount you pay) scales exactly with how many containers you are running.
So alongside pruning your trees or sweeping your deck and taking care of your outside spaces this spring, remember to take a look around your cloud environment and look for opportunities to remove unused cloud resources to optimize not only for cost, but also performance.
Whether you’re just getting started on public cloud, or you’ve gotten a bill that blew your budget out of the water, it’s a good idea to research ways to get discounts on cloud resources. There’s no reason to pay list price when so many cost-savings measures are available (and your peers are probably taking advantage of them!) Here are our top five ways to get discounts on cloud.
1. Buy in Advance
By purchasing your compute power in advance, you can get a discounted rate — the notable examples being AWS Reserved Instances, Azure Reserved Instances, and Google Committed Use Discounts.
So will these save you money? Actually, that’s a great question. There are several factors that weigh into the answer:
- How much you pay upfront (for example AWS offers all-upfront, partial-upfront, or no-upfront)
- Contract term: 1-year or 3-year term – the longer term will save more, but there’s risk involved in committing for that long
- If the cloud provider cuts their prices during your contract term (and they probably will), you’ll save less
This blog post about AWS Reserved Instances digs into these issues further. Bottom line: paying in advance can save you money, but proceed with caution.
2. Use Your Resources More
The primary example of “spending more to save more” in the cloud computing world is Google Sustained Use Discounts. This is a cool option for automatic savings – as long as you use an instance for at least 25% of the month, GCP will charge you less than list price.
But just like the advanced purchasing options above, there are several factors to account for before assuming this will really save you “up to 60%” of the cost. It may actually be better to just turn off your resources when you’re not using them – more in this post about Google Sustained Use Discounts.
3. If You’re Big: Enterprise Agreements and Volume Discounts
Anyone who’s shopped at Costco isn’t surprised that buying in bulk can get you a discount. Last week, Twitter announced that it will be using Google Cloud Platform for cold data storage and flexible compute Hadoop clusters — at an estimated list price of $10,000,000/month. Of course, it’s unthinkable that they would actually pay that much – as such a high-profile customer, Twitter is likely to have massive discounts on GCP’s list prices. We often hear from our Azure customers that they chose Azure due to pre-existing Microsoft Enterprise Agreements that give them substantial discounts.
If you have or foresee a large volume of infrastructure costs, make sure to look into:
4. If You’re Small: Startup Credits
Each of the major cloud providers offers free credit programs to startups to lure them and get locked in on their services – but that’s not a bad thing. We’ve talked to startups focused on anything from education to location services who have gotten their money’s worth out of these credits while they focus on growth.
If you work for a startup, check out:
So far, history tells us that if you wait a few months, your public cloud provider will drop their prices, giving you a built-in discount.
If you stick with the existing resource types, rather than flocking to the newer, shinier models, you should be all set. The same AWS m1.large instance that cost $0.40/hour in 2008 now goes for $0.175. We’ll just say that’s not exactly on pace with inflation.
It’s Okay if You Don’t Get Discounts on Cloud
What if you’re not a startup, you’re not an enterprise, and you just need some regular compute and database infrastructure now? Should you worry if you don’t get discounts on cloud list prices? No sweat. Even by paying list price, it’s still possible to optimize your spend. Make sure you’re combing through your bill every so often to find orphaned or unused resources that need to be deleted.
Additionally, right-size your resources and turn them off when you’re not using them to pay only for what you actually need – you’ll save money, even without a discount.
Over the past couple of months, we have seen a lot of articles about the Big Three cloud providers and their efforts to be environmentally friendly and make cloud computing green. What are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) doing to make their IaaS services as green as possible? Does moving to the cloud help enterprises with their green initiatives and use of renewable energy?
It seems the cloud providers are focused on using renewable energy like solar and wind to power their massive data centers and are very actively touting that fact.
For example, Microsoft recently announced a new renewable energy initiative, the Sunseap project. This project, Microsoft’s first Asian clean energy deal, will install solar panels on hundreds of rooftops in Singapore, which they claim will generate 60MW to power Microsoft’s Singapore datacenter — making Microsoft Azure, Office 365 and numerous other cloud services. This deal is the third international clean energy announcement, following two wind deals announced in Ireland and The Netherlands in 2017. That’s pretty cool in my book, so kudos to them.
Google made a similar announcement recently, albeit a little more general, where they tout that Google is now buying enough renewable energy to match the power used in its data centers and offices. Google said that last year its total purchase of energy from sources including wind and solar exceeded the amount of electricity used by its operations around the world. According to a recent blog written by Google, they are the first public cloud, and company of their size, to have achieved that feat, so says Urs Hölzle, Google’s senior vice president of technical infrastructure. Now we can’t verify this but let’s take them at face value given the data in the chart below:
One observation we have in looking at this chart – where are IBM and Oracle? Once again, the Big Three always seem to be several steps ahead.
Speaking of, we’ve looked at Microsoft and Google, what about AWS? According to AWS’s self-reports, it seems that they are behind both Google and Microsoft in terms of relying 100% on renewable energy. AWS states a long-term commitment to achieve 100% renewable energy usage for their global infrastructure footprint, and had set a goal to be powered by 50% renewable energy by the end of 2017 (we could not find a recent 2018 update).
Moving to the cloud has many benefits – time to market, agility, innovation, lower upfront cost, and the commitment to renewable energy.! There’s one other way for cloud computing to be more sustainable – and that’s by all of us using fewer resources. In our small little way, ParkMyCloud helps – we help you turn cloud stuff off when its not being used, kind of like following your kids around the house and shutting off the lights, your at-home green initiative – you know you can automate that using Nest, right? Saving money in the process? That’s a win-win.
We talked with Kurt Brochu, Senior Manager of the Cloud Enablement Team at Sysco Foods, about how his company has been using ParkMyCloud to empower end users to keep costs in check with the implementation of their cloud-only strategy.
Thanks for taking the time to speak with us today. I know we chatted before at re:Invent, where you gave us some great feedback, and we’re excited to hear more about your use of ParkMyCloud since it rolled out to your other teams.
To get started, can your describe your role at Sysco and what you do?
I’m senior manager here in charge of the cloud enablement team. The focus is on public cloud offerings, where we function as the support tier for the teams that consume those services. I also have ownership of ensuring that cost containment and appropriateness of use is being performed, as well as security and connectivity, network services, authentication, and DNS.
We don’t consider ourselves IT, our department is referred to as Business Technology. Our CTO brought us on 3 or 4 years ago with the expectation that we understand the business needs, wants, and desires, to actually service them as they would need versus passively telling them that their server is up or down.
As well as security and the dev team, teams using cloud also include areas that are customer facing, like sales, or internal, like finance, business reporting, asset management, and the list goes on.
Tell us about your company’s cloud usage.
We’ve had our own private cloud since 2003, offered on-prem. We’ve been in public cloud since 2013. Now, our position has gone from a “cloud-first” to a “cloud-only” strategy in the sense that any new workload that comes along is primarily put in public cloud. We primarily use AWS and are adding workloads to Azure as well.
Talk to me about how cost control fits into your cloud-only strategy. How did you realize there was a problem?
We were seeing around 20% month over month growth in expenditure between our two public clouds. Our budget wasn’t prepared for that type of growth.
We realized that some of the teams that had ability to auto-generate workloads weren’t best managing their resources. There wasn’t an easy way to show the expenses in a visual manner to present them to Sysco, or to give them some means to manage the state of their workloads.
The teams were good at building other pipelines for bringing workloads online but they didn’t have day-to-day capabilities.
How did you discover ParkMyCloud as a solution to your cost control problem?
We first stumbled upon ParkMyCloud at the 2016 AWS re:Invent conference and were immediately intrigued but didn’t have the cycles to look into it until this past summer, when when we made the switch from cloud-first to a cloud-only strategy.
We’ve been running ParkMyCloud since the week before re:Invent in 2017. From there, we had our first presentation to our leadership team in December 2017, where we showed that the uptick in savings was dramatic. It’s leveled off right now because we have a lot of new workloads coming in, but the savings are still noticeable. We still have developers who think that their dev system has to be always be on and at will, but they don’t understand that now that we have ParkMyCloud, making it “at will” is as simple as an API call or the click of a button. I expect to see our savings to grow over the rest of the calendar year.
We have 50+ teams and over 500 users on ParkMyCloud now.
That’s great to hear! So how much are you saving on your cloud costs with ParkMyCloud?
Our lifetime savings thus far is $28,000, and the tool has paid for itself pretty quickly.
We have one team who has over 40% savings on their workloads. They were spending on average about $10,000 a month, and now it’s at $5,800 because they leverage ParkMyCloud’s simplified scheduling start/stop capabilities.
What other benefits are you getting from your use of the platform?
What I really like is that we have given most of our senior directors, who actually own the budgets, access to the tool as well. It lets the senior directors, as well as the executives when I present to them, see the actual cost savings. It gives you the ability to shine light in places that people don’t like to have the light shine.
The development team at ParkMyCloud has also been very open to receiving suggestions and capabilities that will help us improve savings and increase user adoption.
That’s great, and please continue to submit your feedback and requests to us! And in that regard, have you tried our SmartParking feature to get recommended schedules based on your usage?
Yes, we have started to. When I’m asked by a team to show them how we suggest they use the tool, they get to decide whether or not to enforce it. I’ll say that they are exceedingly happy by the fact that they can go and see their usage. One developer is telling their team that the feature has to be on at all times.
Are there any other cost savings measures that you use in conjunction with ParkMyCloud or in addition?
We pull numbers and look at Amazon’s best prices guide for sizing. We also take the recommendations from ParkMyCloud and we cross compare those.
Do you have any other feedback for us?
The magic of ParkMyCloud is that it empowers the end user to make decisions for the betterment of business, and gives us the needed visibility to do our jobs effectively. That’s the bottom line. Each user has a decision: I can spend money on wasted resources or I can save it where I can and apply the savings to other projects. Once you start to understand that, then you have that “AHA” moment.
Before using ParkMyCloud, most developers have no awareness of the expense of their workloads. This tool allows me to unfilter that data so they can see, for example: this workload is $293 a month, every month. If you look at your entire environment, you’re spending $17,000 a month, but if you take it down just for the weekend, you could be saving $2-3,000 a month or more depending on how aggressive you want to be, without hurting your ability to support the business. It’s that “AHA” moment that is satisfying to watch.
That’s what we noticed immediately when we looked at the summary reports – the uptick that appears right after you have these presentations with the team makes your heart feel good.
Well thank you Kurt, again we really appreciate you taking the time to speak with us.
In this blog we are going to examine how Microsoft Azure region pricing varies and how region selection can help you reduce cloud spending.
How Organizations Select Public Cloud Regions
There are many comparisons that go into pricing differences between AWS vs Azure vs GCP, etc. At the end of the day, however, most organizations select one primary cloud service provider (CSP) for most of their workloads, plus maybe another for multi-cloud redundancy of critical services. Once selected, organizations then typically put many of their workloads in the region closest to their offices, plus maybe some geographic redundancy in their production systems. In other situations, a certain region is selected because that is the first region to support some new CSP feature. As time goes by, other regions become options because either those new features are propagated through the system, or whole new regions are created.
CSP regions tend to cluster around certain larger geographic regions, that I will call “areas” for the purpose of this blog. Looking at Azure in particular, we can see that Azure has three major US areas (Western, Central, and Eastern). The Western and Eastern US areas each have two Azure regions, and the Central area has four Azure regions. The UK, Europe and Australia areas each have two Azure regions. There are a number of other Azure regions as well, but they are far enough dispersed that I would consider them to be areas with a single region.
How Does Azure Region Pricing Vary?
With this regional distribution as a starting point, let’s look next at costs for instances. Here is a somewhat random selection of Azure region pricing data, looking at a variety of instance types (cost data as of approximately March 1, 2018).
While this graphic is a bit busy, there are a couple things that jump out at us:
- Within most of the areas, there are clearly more expensive regions and less expensive regions.
- The least expensive regions, on average across these instance types are us-west-2, us-west-central, and korea-south.
- The most expensive regions are asia-pacific-east, japan-east, and australia-east.
- Windows instances are about 1.5-3 times more expensive than their Linux-based counterparts
Let’s zoom-in on Azure Standard_DS2_v2 instance type, which comprises almost 60% of the total population of Azure instances customers are managing in the ParkMyCloud platform.
We can clearly see the relative volatility in the cost of this instance type across regions. And, while the Windows instance is about 1.5-2 times the cost of the Linux instance, the volatility is fairly closely mirrored across the regions.
Of more interest, however, is how the costs can differ within a given area. From that comparison we can see that there is some real savings to be gained by careful region selection within an area:
Over the course of a year, strategic region selection of a Windows DS2 instance could save up to $578 for the asia-pacific regions, $298 for the us-east regions, and $228 for the Korean regions.
How to Save Using Regions
By comparing regions within your desired “area” as illustrated above, the savings over a quantity of instances can be significant. Good region selection is fundamental to controlling Azure costs, and for costs across the other clouds as well.
Today, we’re excited to announce the release of SmartParkingTM for Microsoft Azure! SmartParking allows Azure customers to automate cloud cost optimization by creating parking schedules optimized to your actual cloud usage based on Azure Monitor data.
Here’s how it works: ParkMyCloud analyzes your Azure Monitor data to find patterns in the usage for each of your virtual machines (VMs). Based on those patterns, ParkMyCloud creates recommended on/off schedules for each VM to turn them off when they are idle. This maximizes your savings by ensuring that no VM is running when it’s not needed — while also saving you the time and frustration of trying to figure out when your colleagues need their resources running.
We released SmartParking for AWS in January, and customers have had positive feedback — and SmartParking for Google Cloud Platform is coming soon.
Customize Your Recommendations like your 401K
Is it better to park aggressively, maximizing savings, or to park conservatively, ensuring that no VM is parked when a user might need it? Everyone will have a different preference, which is why we’ve created different options for SmartParking recommendations. Like an investment portfolio, you can choose to receive SmartParking schedules that are “conservative”, “balanced”, or “aggressive”. And like an investment, a bigger risk comes with the opportunity for a bigger reward.
An aggressive SmartParking schedule prioritizes the maximum savings amount. You will park instances – and therefore save money – for the most time, with the “risk” of occasional inconvenience by having something turned off when someone needs it. Not to worry, though — users can always “snooze” these schedules to override them if they need to use the instance when it’s parked.
On the other hand, a conservative SmartParking schedule will make it more likely that your instances are never parked when they might be needed. It will only recommend parked times when the instance is never used. Choose “balanced” for a happy medium.
Customer Feedback: Making Parking Better Than Ever
ParkMyCloud customer Sysco Foods has more than 500 users across 50 teams using ParkMyCloud to manage their AWS environments. “When I’m asked by a team how they should use the tool, they’re exceedingly happy that they can go in and see when systems are idle,” Kurt Brochu, Sysco Foods’ Senior Manager of the Cloud Enablement Team, said of SmartParking. “To me, the magic is that the platform empowers the end user to make decisions for the betterment of the business.”
Already a ParkMyCloud user? Log in to your account to try out SmartParking for Azure. Note that you’ll have to update the permissions that ParkMyCloud has to access your Azure data — see the user guide for instructions on that.
Not yet a ParkMyCloud user? Start a free trial here.
Google Cloud Platform user? Not to worry — Google Cloud SmartParking is coming next month. Let us know if you’re interested and we’ll notify you when it’s released.
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