The Doppler Quarterly Winter 2018 | Page 31

scheduler shuts down the machines at 7:00:01 PM, you will now be charged for the 1 second instead of the full hour. Let’s even further assume that ALL these development virtual machines are a good size (C4.4xlarge – 16 vCPUs and 30GB RAM) that costs you $0.796 / hour. In this scenario, you will see daily sav- ings of $557. Here’s the formula: 1 Hour Savings $ $ 0.796 / Hr 700 Instances 557 / Day That adds up to weekly savings of $2,786, and annual savings of $145K. Wow, that’s a lot of money, but let’s dig in a little further. For the numbers above to be true, you would be using all your servers in a pay-as- you-go model (without prepaying for reserved instances). If you prepaid, your hourly costs would have been much lower and so would your potential savings. In addition, prepaying suggests that you expect to use the servers most of the time and not start/stop them a whole lot. If you’re starting and stopping them as described above, something is wrong in the architecture and business models, and you need to rethink your approach. But let’s say the architecture and business models are fine, and you truly need to do what was described. In that case, the actual cost of those servers to you is: 700 Servers 12 Hours (7AM-7PM) 5 Days / Wk $0.796 / Hr 52 Weeks 1,738,500 $ Now, that’s a BIG number, and the savings amount to 8.3% of your total compute spend! But if you’re spend- ing $1.7M a year on simply renting servers from a pub- lic cloud vendor, something else is wrong. You either have not done a proper TCO analysis of your cloud usage, did not architect your applications and envi- ronments to take advantage of cloud capabilities, or simply are not paying attention to where the money goes. If those are all true, I don’t think you’re the type of company that cares about a “mere” $145k in sav- ings–it doesn’t look like it makes that much of a dif- ference to you. By the way, your true cloud bill is most likely much higher because we haven’t even talked about the cost of storage, networking, APIs, etc. Use Case 2: Now let’s look at a more realistic sce- nario than the one above. Something like web servers that need to handle spikes in traffic, or applications that periodically spin up a series of servers to per- form high-intensity computations. Let’s examine the bursty web server scenario. Your company has a very cool website that’s incredibly popular. You have 300 web servers (c4.large – 2 vCPUs with 3.75GB RAM) powering the website, behind a load balancer and an auto-scaling group set up to account for spikes. Each server costs you $0.10/hour. Every day, there’s a spike in activity each morning and then for a couple of hours in the afternoon, where you need to increase the capacity by 40%. That’s actually a lot, but let’s go with it for argument’s sake. Let’s also use the above comparison where shutting down within 1 second saves you the whole hour. So your annual savings now are: 2 Spikes / Day 120 Servers (1 hr savings in the AM shut- down and 1 hr in the PM) (300 servers x 40%) $0.10 $ 365 Days / Yr 8,760 That’s a decent chunk of change that should defi- nitely come in handy for other needs. Now, let’s calculate your total spend: 300 Regular Servers 24 Hrs / Day $ $0.10 / Hr 365 Days / Yr 262,800 120 Scaled-up Servers 2 Hrs / Spike $0.10 / Hr 2 Spikes / Day 365 Days / Yr 17,520 $ Total: $ 280,320 WINTER 2018 | THE DOPPLER | 29