AMSTERDAM. 2015, Amazon Web Services, Inc. or its affiliates. All rights reserved

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1 AMSTERDAM 2015, Amazon Web Services, Inc. or its affiliates. All rights reserved

2 Manage Your Cost, Govern Your Usage on AWS Guy Kfir, Account Manager BeNeLux, AWS Leon Backbier, ICT Manager, Endemol Shine Nederland 2015, Amazon Web Services, Inc. or its affiliates. All rights reserved

3 You re using AWS.

4 BEST PRACTICES Use Consolidated Billing Turn off underutilized or unused instances Use Reserved and Spot Instances Use managed services Control who can provision resources Design for elasticity rather than deploy for peak Monitor your spend, create Billing Alerts

5 LOWER COSTS WITH THE AWS CLOUD Trade capital expense for variable expense Economies of scale allow AWS to continually lower costs Price #49 reductions Pricing model choice to support variable & stable workloads Save more money as you grow bigger

6 Use Consolidated Billing

7 Consolidated Billing Company Master Account ( Payer Account) Department Accounts ( Linked Accounts) Operation A Division B Business Unit C Dev/Test

8 Consolidated Billing & Tagging Company Master Account ( Payer Account) Department Accounts ( Linked Accounts) Operation A Division B Business Unit C Dev/Test TAGS Cost Center (Tag) = Application (Tag) = General Ledger Catalog Workflow Order Pipeline Inventory 3 way match Proxy fleet Stack (Tag) = Jeroen Janneke Antoon Prod

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10 Cost Allocation Report sample

11 Cost Explorer

12 BEST PRACTICE Use Consolidated Billing to reflect your own cost structure, to benefit from volume discounts and to share RIs across accounts Use Cost Allocation tags to gain deeper granularity into your cost structure As a minimum tag with Name, Owner, Cost Centre, Application, Environment Use Cost Explorer to have customized visualization of your spend broken down by services, tags, etc Consolidated Billing and tags are offered at no additional charge. Storage fees may apply for storing the cost allocation.csv report (minor, $0.0300/GB)

13 Turn off underutilized or unused instances

14 *31 days month Hours in a month*

15 Only Working hours *31 days month, 23 business days, 9 hours per day

16 Non working hours *31 days month, 23 business days, 9 hours per day

17 Customer dev/test example Monday Friday End of Vacation Season 35% saved

18 How to Identify Underutilized Instances?

19 AWS Trusted Advisor runs 100+ configuration checks and recommends savings

20 AWS Trusted Advisor

21 Since 2013, customers have viewed over 2.6 million recommendations and realized over $350 million in estimated cost reductions.

22 Turn off underutilized instances method #2

23 BEST PRACTICE Locate underutilized instances using AWS Trusted Advisor or Amazon Cloudwatch. and turn them off. Amazon CloudWatch Basic Monitoring metrics for EC2 instances are with no additional charge. 10 metrics, 10 alarms, and 1 million API requests each month at no additional charge. AWS Trusted Advisor service is available if you have business or enterprise support.

24 Use Reserved and Spot Instances

25 Fit your payment model to your business model: EC2 pricing plans On-Demand Instances Pay as you go for computing power Flat hourly rate, no up-front commitments Reserved Instances Pay an up-front fee for a capacity reservation and a lower hourly rate (up to 75% savings) 1-year or 3-year terms RI Marketplace: Buy RIs with short remaining terms Spot Instances Pay what you want for spare EC2 capacity: your instances run if your bid exceeds the Spot price Potential for large scale at low cost: When they re available, take advantage of 1,000s of Spot Instances at up to 90% savings

26 Savings potential 58%: 1-Year Reserved Instances 75%: 3-Year Reserved Instances

27 On Demand Instance Reserved Instance 8% 13% 38% 58% 75% 100% 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

28 AWS Trusted Advisor identifies savings attainable via Reserved Instances

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31 Amazon EC2 Instance Usage Report

32 Fit your payment model to your business model: EC2 pricing plans On-Demand Instances Pay as you go for computing power Flat hourly rate, no up-front commitments Reserved Instances Pay an up-front fee for a capacity reservation and a lower hourly rate (up to 75% savings) 1-year or 3-year terms RI Marketplace: Buy RIs with short remaining terms Spot Instances Pay what you want for spare EC2 capacity: your instances run if your bid exceeds the Spot price Potential for large scale at low cost: When they re available, take advantage of 1,000s of Spot Instances at up to 90% savings

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35 BEST PRACTICE Use Amazon EC2 Reserved Instances if possible: get up to 75% savings + capacity reservation Consult AWS Trusted Advisor to identify reservations opportunities or use Amazon EC2 Instance Usage Report If not sure, start with the instances that are used 24/7 Use Spot Instances for stateless workloads - pricing starts at 90% off On Demand AWS Trusted Advisor service is available if you have business or enterprise support.

36 DynamoDB Amazon EMR Amazon RDS ElastiCache Amazon WorkSpaces AWS s higher-level services automate your work and save time and money CloudFront Amazon Kinesis Amazon Redshift

37 Cost optimization by using AWS workspaces Leon Backbier Manager IT Endemol Shine Nederland 38 Amsterdam,

38 Who We Are Endemol Shine Group: New joint venture bringing together Endemol, Shine and CORE Media, Portfolio of international hits. Creative operations in over 30 markets, portfolio of over 600 formats. Across scripted and non-scripted genres, digital, gaming, and distribution. Cost optimization by using AWS workspaces 39

39 Endemol IT challenge Endemol IT couldn t keep up with the business needs. - More flexibility (Organization) More flexibility and agility Focus on applications & functional improvements Faster time to market - Higher quality (Technical) State of the art scalable IT infrastructure Unlimited scaling Constant innovation Availability - Lower cost (Financial) No more investments on hardware Pay as we go / use Lower risk no- upfront investments on hardware in case uncertain business projects Clear allocation of IT cost to the business Invest in functionality and talent, not in IT hardware Cost optimization by using AWS workspaces 40

40 Why AWS Workspaces Media productions are mainly driven by temporary employees Change rate on personnel and media projects On boarding and off- boarding is challenging and time consuming Setup time for a new employee Moving / dealing with hardware BYOD Just in time delivery Cost allocation Perfect fit Cost optimization by using AWS workspaces 41

41 Architecture West-1a West-1b West-1c Internet Amazon Route 53 Amazon EC2 Amazon S3 Amazon Glacier AWS Storage Gateway Elastic Transcoder Amazon SES Workspaces Amazon VPC Amazon EBS Amazon SQS Elastic Load Balancing CloudFront VPC peering Amazon RDS Ireland IAM AWS Direct Connect VPN connection Remote Production Location Remote Production Location Remote Production Location Endemol Headquarter Cost optimization by using AWS workspaces 42

42 Outcome Cost savings 70% capex, 30% opex No more unnecessary moving around, dealing with outdated hardware or specific platform issues Setup time: We are now talking about hours instead of days Pay as we go / use Lower risk no- upfront investments on hardware in case uncertain business projects Clear allocation of IT cost to the business Invest in functionality and talent, not in IT hardware Cost optimization by using AWS workspaces 43

43 Thank You! L.H.M. (Leon) Backbier Manager ICT Endemol Shine Nederland Mob

44 BEST PRACTICE Consider using higher level services, to take away time-consuming tasks, allowing you to pursue higher value tasks Consider Amazon Relational Database Service (RDS), that handles backups, patch management, and replication for you. Consult with Simple Monthly calculator to estimate your monthly costs

45 Control provisioning of resources

46 Control who can provision resources

47 Require tagging

48 No tags? No instance Large financial services customer in Boston

49 BEST PRACTICE Control who can provision resources via AWS IAM Once an instance is running, tag it. Consider policy to stop instances without tags Identity and Access Management offered at no additional charge. You will be charged only for use of other AWS services by your users.

50 Design for elasticity rather than deploy for peak

51 Use Auto Scaling to add resources when Auto Scaling needed, and turn them off when not

52 On Demand Instance Reserved Instance 8% 13% 38% 58% 75% 100% 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

53 BEST PRACTICE Design to scale up and scale down using Auto Scaling Use Auto Scaling to add resources when needed, and turn them off when not Auto Scaling carries no additional fees. Amazon EC2 and Amazon CloudWatch service fees apply and are billed separately.

54 Understanding your spend

55 The Billing Console

56 The Billing Console Dashboard

57 Current Month s Spend Previous month comparison Include/exclude subscriptions - Reserved Instances - Premium Support charges

58 Notification Center Status of Billing Alerts Alarm on spending threshold Issues with payment methods Outstanding charges Free Tier eligibility General notices regarding your account or bill

59 Mobile Support Dashboard looks nice on mobile devices Quick view on how you are trending

60 Monitor and Alert

61 BEST PRACTICE Create billing alerts to be notified automatically via when estimated charges reached a limit Get familiar with the billing console, use it to monitor your spend Use the mobile Application to monitor your spend on the go you get 10 Amazon CloudWatch alarms and 1,000 Amazon SNS notifications per customer per month without additional charges

62 BEST PRACTICES Use Consolidated Billing to share volume discounts/ RIs across accounts Turn off underutilized instances Use Reserved and Spot Instances to save up to 90% over on demand Use managed services to free you to pursue higher value tasks Control who can provision resources Design for elasticity rather than deploy for peak Create billing alerts to be notified when estimated charges reached a limit

63 AMSTERDAM

64 With 3 years Reserved Instances we ve been able to reduce the cost for active users from 20 cents to less than 1

65 We are using AWS Trusted Advisor to improve cost efficiency and to audit the configurations of service platforms