Cloud Cost Optimisation: A Primer

Cloud Cost Optimisation A Primer Daniel Maher Engineer (Community Team) at Datadog @phrawzty Kerim Satirli Sr. Developer Advocate at HashiCorp @ksatirli 6 October 2021

Daniel Maher Engineer (Community Team) at Datadog he/him @phrawzty

Kerim Satirli Sr. Developer Advocate at HashiCorp he/him @ksatirli

01 Challenge Let’s talk about… The Cloud

Cloud Market revenue (USD) market share (%) YoY growth (%) Amazon Web Services 26,20 40.8 28.7 Microsoft Azure 12,69 19.7 59.2 Alibaba Cloud 6,12 9.5 52.8 Google Cloud Platform 3,93 6.1 202.8 Others 15,34 24 25.6 Source: gtnr.it/3B9xxhE

Cloud Market $64B Annual spend on public cloud Source: gtnr.it/3B9xxhE

Cloud Market $64B 41% Annual spend on public cloud Annual growth of public cloud Source: gtnr.it/3B9xxhE

Cloud Waste $64B Annual spend on public cloud Source: devops.com/the-cloud-is-booming-but-so-is-cloud-waste $17.6B Annual public cloud waste

Cloud Waste $64B Annual spend on public cloud $17.6B Annual public cloud waste 20-30% Spend attributed to cloud waste Source: flexera.com/blog/cloud/cloud-computing-trends-2021-state-of-the-cloud-report

Cloud Waste “Between idle and over-provisioned resources alone, that’s $17.6B in cloud spend that will be completely wasted this year. And the potential is even higher […] That’s a minimum of about $5M wasted per day, every day this year, that could be reallocated toward other areas of the business.” $11B Annual public cloud waste $6.6B Wasted from over-sized resources Source: devops.com/the-cloud-is-booming-but-so-is-cloud-waste

Cloud Waste Side - Effects

Cloud Waste Side - Effects Reduced Productivity Wasted spend is correlated with poor standardisation, or worse yet: anti-patterns. If there’s no easy way for developers to re-use patterns, then everybody re-invents the wheel, over and over again.

Cloud Waste Side - Effects Reduced Productivity Risk Wasted spend is correlated with poor standardisation, or worse yet: anti-patterns. Lack of governance and oversight across the enterprise results in an increased risk surface. If there’s no easy way for developers to re-use patterns, then everybody re-invents the wheel, over and over again. Validated models are easier to reason about, which is part of a heightened security posture.

Cloud Waste Side - Effects Reduced Productivity Risk Misallocation Wasted spend is correlated with poor standardisation, or worse yet: anti-patterns. Lack of governance and oversight across the enterprise results in an increased risk surface. Literally: money that could and should - be spent on other things. If there’s no easy way for developers to re-use patterns, then everybody re-invents the wheel, over and over again. Validated models are easier to reason about, which is part of a heightened security posture. Brass tacks: wasted cloud spend is basically a vampire that is making your organisation weaker.

02 Opportunity Let’s talk about… Opportunity

Shift-left on Cloud Spend Engineers as the new cloud financial controllers

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae ▪ Billing data is just that: data

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae ▪ Billing data is just that: data ▪ Programmatic access to that data

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae ▪ Billing data is just that: data ▪ Programmatic access to that data ▪ Wait a minute… an API full of metrics?

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae ▪ Billing data is just that: data ▪ Programmatic access to that data ▪ Wait a minute… an API full of metrics? ▪ That can be correlated with deployments?

Shift-left on Cloud Spend Engineers as the new cloud financial controllers ▪ Availability of billing minutiae ▪ Billing data is just that: data ▪ Programmatic access to that data ▪ Wait a minute… an API full of metrics? ▪ That can be correlated with deployments? ▪ This sounds like a job for dashboards!

Shift-left on Cloud Spend …y tho?

Shift-left on Cloud Spend …y tho? ▪ Get involved in product discussions

Shift-left on Cloud Spend …y tho? ▪ Get involved in product discussions ▪ Bring insight to business decisions

Shift-left on Cloud Spend …y tho? ▪ Get involved in product discussions ▪ Bring insight to business decisions ▪ Increase your capacity to generate value

Shift-left on Cloud Spend …y tho? ▪ Get involved in product discussions ▪ Bring insight to business decisions ▪ Increase your capacity to generate value ▪ Level-up your career

Demo

🔒 app.terraform.io/app/ksatirli/workspaces/minimise-cloud-waste

🔒 app.datadoghq.com/dashboard/aws-ec2-cost-optimiser

Thank You! daniel.maher@datadoghq.com kerim@hashicorp.com