CO-4

TOPICS
AWS billing and Dealing with disaster:
Managing costs
Utilization and tracking

Dr P Yellamma
11/1/2021 1
 What is cloud cost management?

Cloud cost management (also known as cloud

•cost optimization) is the organizational planning that
allows an enterprise to understand and manage the
costs and needs associated with its cloud technology.
• In particular, this means finding cost-effective ways
to maximize cloud usage and efficiency.

Dr P Yellamma
11/1/2021 2
As cloud infrastructure becomes more complex, cloud costs
become more opaque and difficult to track.
• The “pay for what you use” model used by most public cloud providers
adds to the difficulty: If usage is monitored and managed appropriately, this
model can result in a significant savings, but it’s also easy for costs to spiral
out of control.
• This is doubly true if decision making is decentralized across an
organization, with individuals able to spin up instances (and accrue costs)
with little or no accountability.
• Thus, it’s important for enterprises to employ a cloud cost management
strategy to make the most of their infrastructure and keep costs down

Dr P Yellamma
11/1/2021 University. ALL RIGHTS RESERVED 3
Why cloud cost management?
•Cloud costs are constantly shifting, and decision-making is often decentralized
in large organizations, making visibility into expenses difficult.
• Rapid scalability is one of cloud computing major strengths, but it also makes
it easy for IT staff to spin up services without considering the cost.
• Implementing a cloud cost management strategy can help an organization plan
for future costs and consumption.
• For companies that use multi-cloud combinations, it’s also important to
practice effective multi-cloud cost management that takes the costs of several
different public cloud providers into account.
• With a better understanding of costs and usage, a business can more effectively
enforce accountability across the company and improve the performance and
efficiency of its cloud technology

Dr P Yellamma
11/1/2021
Cloud cost management strategies
There are a number of strategies businesses can use to manage cloud costs. Some of these
include:
• Right-sizing: Ensure that the public cloud instances you choose are the right fit for your
organization’s needs.
• Automatic scaling: This allows organizations to scale up resources when needed and scale
down the rest of the time, rather than planning for maximum utilization at all times (which
can be needlessly expensive).
• Power scheduling: Not all instances need to be used 24/7. Scheduling non-essential
instances to shut down overnight or on weekends is more cost effective than keeping them
running constantly.
• Removing unused instances: If you’re not using an instance, there’s no need to keep it
around (or pay for it). Removing unused instances is also important for security, since unused
resources can create vulnerabilities.
• Discount instances: Since discount instances usually do not guarantee availability, they’re
not
appropriate for business-critical workloads that must run constantly—but for occasional use,
they can result in a significant cost savings.
• Organizational strategies: In addition to the IT strategies outlined above, creating budgets
and setting policies around cloud usage is also important to cloud cost management.

© 2020 KL University – The contents

Dr of this presentation are an intellectual and copyrighted
P Yellamma
11/1/2021 property of KL 5
University. ALL RIGHTS RESERVED
 Factors
There are many factors that contribute to cloud
costs, and not all of them are obvious upfront.
Costs can include:
– Virtual machine instances
– Memory
– Storage
– Network traffic
– Training and support
– Web services
– Software licenses

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11/1/2021 6
AWS offers a range of cloud computing services. For each service, you pay
for exactly the amount of resources that you actually need. This utility style
pricing model includes
.
•Pay for what you use
•Pay less when you reserve
•Pay less when you use more
•Pay even less as AWS grows

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 PAY FOR WHAT YOU USE

Dr P Yellamma
11/1/2021
PAY LESS WHEN YOU RESERVE
For certain services like Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Relational
Database Service (Amazon RDS), you can invest in reserved capacity. With Reserved Instances, you
can save up to 75 percent over equivalent on demand capacity. Reserved Instances are available in
three options:

All Upfront Reserved Instance (or AURI)

Partial Upfront Reserved Instance (or PURI)
No Upfront Payments Reserved Instance (or NURI)

Dr P Yellamma
11/1/2021
Pay less when you use more

With AWS, you can get volume based discounts and realize important savings as your
usage
increases. For services like Amazon Simple Storage Service (Amazon S3), pricing is
tiered, which means that you pay less per GB when you use more. In addition, data
transfer in is always free. Multiple storage services deliver lower storage costs based on
your needs. As a result, as your AWS usage needs increase, you benefit from the
economies of scale that enable you to increase adoption and keep costs under control.

Dr P Yellamma
11/1/2021
Pay even less as AWS grows

Dr P Yellamma
11/1/2021
 The purpose of cloud cost management
• Cloud cost management helps businesses control their
spending on cloud services while also maximizing
their resources.
• Most cloud providers offer basic cloud cost management
tools to help achieve this, and there are also more
specialized third-party solutions that provide
additional visibility and insight into cloud costs.
• By making cloud cost management a priority, an
enterprise can control its costs and practice good
governance while also ensuring that it has the cloud
resources it needs to stay competitive.
• In addition, cloud cost management best practices also
support other business objectives and cloud best
practices, such as security, visibility, organization,
and accountability.
• Thus, cloud cost management is important for reasons
beyond simple cost control. In particular, good cloud
cost management gives businesses the ability to plan
for the future, reduce waste, and forecast both their
costs and their resource needs.
Dr P Yellamma
11/1/2021
 Advantages of cloud cost management
Decreased costs: This is the most obvious benefit of cloud cost management.: Businesses that take a
proactive approach to planning for cloud costs can ensure they don’t overspend on unused resources,
and they’re able to take advantage of discounts based on volume or advance payment.
• Predictability: A business that properly forecasts its cloud computing needs won’t: be surprised by a
sudden increase in costs.
• Efficient usage: Taking a close look at spending also helps enterprises reduce :waste and make the
most of the resources they do pay for with techniques like automatic scaling and load balancing.
• Better performance: An important cloud cost management tactic is right-sizing, or: ensuring that the
public cloud instances you choose are the right fit for your organization’s needs. Over provisioning
means over paying; under provisioning can cause performance to suffer—but with careful planning,
businesses can ensure smooth performance without increasing costs.
• Visibility: It’s impossible to practice good cloud cost management without detailed
visibility into your organization’s usage and cloud architecture. Fortunately, this visibility also serves
many other business needs besides cloud cost management, including governance and security.

Dr P Yellamma
11/1/2021
 UTILIZATION AN TRACKING

Dr P Yellamma
11/1/2021
 What Is Cloud Monitoring? Why Do We Need It?
• Cloud monitoring is the process of reviewing and managing the operational
workflow and processes within a cloud infrastructure or asset. It’s generally
implemented through automated monitoring software that gives central access
and control over the cloud infrastructure.
• Admins can review the operational status and health of cloud servers and
components.
• Concerns arise based on the type of cloud structure you have, and your strategy
for using it. If you’re using a public cloud service, you tend to have limited
control and visibility for managing and monitoring the infrastructure. A private
cloud, which most large organizations use, provides the internal IT department
more control and flexibility, with added consumption benefits.
• Regardless of the type of cloud structure your company uses, monitoring is
critical to performance and security.

Dr P Yellamma
11/1/2021
 How Cloud Monitoring Works?
The cloud has many moving parts, and it’s important to ensure everything works together
seamlessly to optimize performance. Cloud monitoring primarily includes functions
such as:
– Website monitoring: Tracking the processes, traffic, availability and
resource utilization of cloud-hosted websites
– Virtual machine monitoring: Monitoring the virtualization
infrastructure and individual virtual machines
– Database monitoring: Monitoring processes, queries, availability, and
consumption of cloud database resources
– Virtual network monitoring: Monitoring virtual network resources,
devices, connections, and performance
– Cloud storage monitoring: Monitoring storage resources and their
processes provisioned to virtual machines, services, databases, and applications

Dr P Yellamma
11/1/2021
 Cloud Monitoring Capabilities

Dr P Yellamma
11/1/2021
Best Practices for Cloud Monitoring

Dr P Yellamma
11/1/2021
 Data Security and APIs

Dr P Yellamma
11/1/2021
Application Workflow & Allocating cloud server and
storage

Dr P Yellamma
11/1/2021