Narrator: All right, let's talk about the last pillar 2 2
in the Well-Architecture framework. 3 3
That is cost optimization. 4 4
So, what it is, it's the ability to run systems 5 5
to deliver business value 6 6
but at the lowest price point possible 7 7
that makes a lot of sense. 8 8
Now, design principles we'll adopt a consumption mode. 9 9
So, pay for only what you use. 10 10
So, for example, AWS Lambda is one of these services, 11 11
if you don't use AWS Lambda you don't pay for it, 12 12
where as RDS, if you don't use your database 13 13
you still pay for it because 14 14
you've provisioned your database. 15 15
So it's a really interesting trade off here. 16 16
Measure overall efficiency, use CloudWatch, 17 17
are you using your resources effectively? 18 18
Then we have a small ad for AWS, 19 19
but the idea is that if you move to the cloud 20 20
then you stop spending money on data center operations 21 21
because AWS has the infrastructure for you, 22 22
and they just allow you to focus on 23 23
your applications, your systems, 24 24
and you need to analyze and attribute expenditure, 25 25
so that means if you don't use tags on your AWS resources, 26 26
you're going have a lot of trouble figuring out 27 27
which application is costing you a lot of money, 28 28
so using tags insures that you are able to track the cost 29 29
of each application and optimize them over time 30 30
and get a ROI 31 31
based on how much money you generate from your business. 32 32
Finally, use managed and application level services to 33 33
reduce the cost of ownership. 34 34
So that means that because managed services operate 35 35
a cloud scale, they can offer such a lower cost 36 36
per transaction or service 37 37
and that's really something you have to remember about 38 38
the cloud, they operate at cloud scale, 39 39
I've read news, about people, like three engineers, 40 40
only three of them, AWS engineers 41 41
and they manage an application 42 42
that serves five million people, 43 43
I mean imagine that, 44 44
three people manage a global application on AWS 45 45
for five million people, 46 46
just because they are able to leverage the cloud 47 47
and operate at cloud scale. 48 48
So in terms of cost optimization, what do we get? 49 49
Making sure we know what costs us something, 50 50
so Budgets, Cost and Usage Reports, Cost Explorer 51 51
and for example Reserved Instance Reporting, 52 52
making sure that if we do reserve and instance, 53 53
we're actually using them and not just paying for 54 54
unused reserved instances. 55 55
Cost-Effective Resources, are we using the right stuff, 56 56
for example can we use Spot Instances, 57 57
they are considerably cheaper, 58 58
yes they do have some trade offs 59 59
but can we use them? 60 60
Can we use cost-effective resources? 61 61
Or if we know we're using a EC2 instance for over a year, 62 62
maybe three years because we provisioned a database on it. 63 63
Can we use reserved instances? 64 64
That'll be a great way of saving money. 65 65
AWS Glacier, so are we basically putting our archives 66 66
in the lowest price point possible 67 67
and Glacier is the lowest price point possible. 68 68
Are we matching supply and demand? 69 69
So are we not over provisioning. 70 70
So again, auto scaling or maybe AWS Lambda 71 71
if you're using serverless infrastructure 72 72
and are we optimizing over time, 73 73
so getting information from trusted advisor, 74 74
or again looking at our cost and usage report, 75 75
or even reading the news blog. 76 76
So let me just share with you a small story. 77 77
There was this ELB feature 78 78
and it allowed to use HTTP and HTTPS traffic going in 79 79
but you couldn't do redirect of HTTP to HTTPS before 80 80
and so you have to spin up an application that was doing 81 81
the redirect behind the scenes 82 82
and that application was costing me a little bit of money, 83 83
but then reading the news blog 84 84
they said now you can straight from the ELB 85 85
configure redirect of HTTP to HTTPS 86 86
and that was great, it saved me a bit of money every month 87 87
just for that one feature, 88 88
so reading the news does allow you to optimize your costs 89 89
and make sure you have the right price point. 90 90
Last story is for example, 91 91
if you're running an application on DynamoDB, 92 92
but it's really inactive, it's really slow application 93 93
or you don't need to use a lot of operations. 94 94
Maybe you're way better of using 95 95
the on demand feature of DynamoDB 96 96
instead of using the reserved capacity that'll use you RCU 97 97
and so on, okay. 98 98
So that's it just for small anecdotes but I hope that helps, 99 99
we've seen all the pillars now 100 100
and I hope you understand better 101 101
the AWS Well-Architecture framework, 102 102
again the exam will not ask you deep questions on it, 103 103
but it's good as a solution architect 104 104
to understand it overall 105 105
and if you're really curious about it, 106 106
I encourage you to read the white paper. 107 107
Okay, that's it I will see you in the next lecture.