SEPTEMBER 01,2023

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Cost optimization on AWS
Satheesh Kumar Kapil Talreja
Principal Solutions Architect, Senior Vice President,
AWS India Head of Enterprise Architecture & Cloud,
Axis Bank

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Agenda
• Cost challenges

• Cost optimization pillar – Design principles

• Strategies & tools for cost optimization

• Customer story – How Axis Bank optimized their cloud spend

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Cost challenges

How to enable How do we gain Are we using How do we forecast

teams to architect better visibility? resources efficiently? cloud spend?
for cost?

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Cost optimization design principles
• Practice Cloud Financial Management (CFM)

• Adopt a consumption model

• Measure overall efficiency

• Stop spending on undifferentiated heavy-lifting

• Analyze and attribute expenditure

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AWS cloud financial management portfolio
Plan Run See Save

AWS Pricing Calculator AWS IAM AWS Cost Explorer Savings Plans
AWS Budgets Billing Console AWS Cost & Usage Reports Reserved Instances
AWS Purchase Order Management AWS Cost Categories Recommendations
AWS Budgets (Actions) AWS Billing Conductor Compute Optimizer
AWS Cost Anomaly Detection AWS Application Cost Profiler

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Cost optimization
Tools and strategies

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AWS Pricing Calculator
• Model your solutions

• See the math behind the pricing

• Find instances to match your needs

• Save and share estimates

• Export to .CSV

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Right Sizing
Right sizing is the process of matching instance types and sizes
to your workload performance and capacity requirements at Decrease
the lowest possible cost

✓ Amazon EC2 instance types Increase

✓ Amazon S3 storage classes

✓ Amazon RDS instance types

9
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AWS Compute Optimizer
Delivers recommendations for selected types of EC2 instances, EC2 Auto Scaling groups, EBS
volumes, and Lambda functions

Lower costs insights from Saves time

millions of workloads
performance

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Increase elasticity: Amazon EC2 Auto Scaling
Amazon EC2 Auto Scaling allows you to
• React dynamically to changes in load
Auto Scaling adjusting
capacity as needed
• Schedule regular workloads Capacity

• Optimize your instance usage

• Reduce over-provisioning
• No additional fees beyond the service fees for
Amazon EC2, Amazon CloudWatch (for scaling
policies), and the other AWS resources that you
use

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AWS Instance Scheduler
AWS-provided solution
• Custom start & stop schedules
• Works with Amazon EC2 & Amazon RDS
instances
• Deploy using AWS CloudFormation

Selectively tag instances to schedule

• Multiple schedules per instance
• 5-minute granularity

https://aws.amazon.com/answers/infrastructure-management/instance-scheduler/

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Lower TCO with AWS Graviton-powered instances

Highest performance Lower cost Up to 40% better

in their instance vs same-sized comparable price-performance
families instances vs comparable
instances

Best price-performance within their instance families

https://aws.amazon.com/ec2/graviton/

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Select the right purchase models

the second a significant savings of up to 90%

discount more flexibility

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AWS Trusted Advisor

• Underutilized Amazon EC2

instances
• Underutilized Amazon EBS volumes
• Idle Amazon RDS instances
• Idle Elastic Load Balancing (ELB)

Reserved Instances

Savings Plans

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Optimizing AWS Lambda functions
Cost factors
• Number of invocations
• Duration and memory used
(combined as GB-seconds)
• Data transfer

Optimization techniques
• Choose the correct memory allocation
• Set realistic function timeout
• Use AWS Graviton for AWS Lambda
• Validate function size using AWS Lambda Power Tuning

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Cost optimization - Containers
• Right size your container instances

• Optimize your container images

• Use auto scaling – make sure to scale on the right metric!

– Application scaling (scale ECS tasks or EKS pods - HPA)

– Instance auto scaling to accommodate new tasks/pods – Karpenter/Cluster Autoscaler

• Use Graviton & Spot instances

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General purpose SSD volume recommended for most
workloads: gp3
• Ideal for relational and non-relational databases, enterprise
applications, containerized workloads, big data, file system,
media workflows

• 3,000 baseline IOPS (versus 3 IOPS/GiB in gp2) and 1,000 MiB/s

(versus 250 MiB/s in gp2); provision throughput and IOPS
separately from capacity

• Up to 20% lower storage price than previous gp2 volumes

gp3
General purpose SSD

https://aws.amazon.com/about-aws/whats-new/2020/12/introducing-new-amazon-ebs-general-purpose-volumes-gp3/

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 Optimize storage: Amazon S3 storage classes

S3 Standard S3 Intelligent-Tiering S3 Standard-IA S3 One Zone-IA S3 Glacier S3 Glacier

Deep Archive

Frequent Access Frequency Infrequent

• Active, frequently • Data with changing access • Infrequently accessed • Re-creatable, less accessed • Archive data • Archive data
accessed data patterns data data • Select minutes or hours • Select 12 or 48 hours
• Milliseconds access • Milliseconds access • Milliseconds access • Milliseconds access

Amazon S3 Glacier Instant Retrieval

Lowest cost archive storage with millisecond
retrieval for rarely accessed data

https://aws.amazon.com/s3/storage-classes/glacier/instant-retrieval/

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Axis Bank’s journey to cost
optimization and operational
excellence

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Axis Bank overview

The overseas operations is

Axis Bank offers the entire spread over 8 international
spectrum of financial Axis Bank has a large offices with branches at
Axis Bank is the third services to customer footprint of 4,594 domestic Singapore, Dubai and Gift
largest private sector bank segments covering large branches with 11,333 ATMs City-IBU; representative
in India. and mid-Corporate, MSME, & 5,710 cash recyclers offices at Dhaka, Dubai, Abu
agriculture and retail spread across the country. Dhabi, Sharjah and an
businesses. overseas subsidiary in
London, UK.

Asia’s best in infrastructure modernization at the IDC Financial Insights Innovation

Award

BT-KPMG Best bank award for best talent and workforce in banks in India
2022

AWARDS IBS intelligence Global FinTech Innovation Award for best CRM system
implementation

IFR Asia's Asian Bank of the year and India Bond House award

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Axis Bank – Cloud Journey

Axis Bank chose to support its

strategy along with a multi- 15% workloads are already
year agreement to partner in on cloud.
their journey.

Includes over 25+ mission-critical Axis Bank plans to migrate 70%

applications on AWS, including a of its on-premises data center
Buy Now Pay Later product, loan infrastructure in the next 36
management systems, Account months to improve agility and
Aggregator, Video-Know Your resilience.
Customer (V-KYC), and WhatsApp
Banking.

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Axis Bank – Cloud Journey
Axis Bank’s Cloud Enablement team assists the internal teams with their cloud journey

AWS supports Axis Bank with review and setup of the various best practices and automation

Axis Bank focuses on a cloud-first agenda for all their new applications

Axis Bank’s focus is to ensure existing applications are re-engineered to be cloud-optimized to take advantage
of the op-ex model and reliability

Today, many of Axis Bank’s channel apps leverage the cloud scale infrastructure on AWS using managed
services such as Amazon EKS, Amazon EMR, AWS Lambda, Amazon RDS, Amazon DocumentDB,
Amazon DynamoDB & Amazon CloudFront to enhance their customer experience

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Cost optimization at Axis Bank
• Use of Amazon EC2 Auto Scaling

• Right sizing Amazon EC2 Instances

• Automation to turn-off DEV/UAT test instances during off-peak hours

• Savings plan for compute steady state usage

✓ Savings plan coverage over 90%

• Increased adoption of AMD-powered EC2 instances by more than 80%

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Storage & databases - Cost optimization
• Right-sizing of Amazon DocumentDB and Amazon RDS

• Reserved Instances for Amazon RDS steady usage

• Graviton adoption for all AWS managed services such as Amazon DocumentDB, Amazon RDS and
Amazon OpenSearch Service

• All Amazon EBS volumes are now gp3

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Network & operations - Cost optimization
• Centralized VPC endpoint design

• Consolidation of VPC endpoints

• Centralized VPC endpoint policy management
• Optimized network costs

• Amazon CloudWatch log consolidation

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FinOps at Axis Bank
Dedicated Cloud FinOps team at Axis Bank to track the cloud costs

• AWS Budgets

✓ Set budgets
✓ Alert mechanisms

• Cost Usage Report (CUR) dashboard

• Prevent sprawl of cloud spend

• Monthly review of cloud budgets & forecasting

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Key takeaways
✓ Practice cloud financial management

✓ Right sizing and EBS modernization

✓ Savings Plans and Reserved Instances

✓ Use budgets & monitor your costs

Get started with AWS Cost Optimization:

https://aws.amazon.com/aws-cost-management/cost-optimization/

Try out AWS cost optimization labs: https://www.wellarchitectedlabs.com/cost/

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