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The Seven Things You Can’t Say at re:Invent: AWS Morning Brief for the week of August 19th, 2019. by AWS Morning Briefratings:
Length:
14 minutes
Released:
Jul 30, 2021
Format:
Podcast episode
Description
Corey: This episode is sponsored in part by our friends at ChaosSearch. You could run Elasticsearch or Elastic Cloud—or OpenSearch as they’re calling it now—or a self-hosted ELK stack. But why? ChaosSearch gives you the same API you’ve come to know and tolerate, along with unlimited data retention and no data movement. Just throw your data into S3 and proceed from there as you would expect. This is great for IT operations folks, for app performance monitoring, cybersecurity. If you’re using Elasticsearch, consider not running Elasticsearch. They’re also available now in the AWS marketplace if you’d prefer not to go direct and have half of whatever you pay them count towards your EDB commitment. Discover what companies like Klarna, Equifax, Armor Security, and Blackboard already have. To learn more, visit chaossearch.io and tell them I sent you just so you can see them facepalm, yet again.Jesse: Hello, and welcome to AWS Morning Brief: Fridays From the Field. I’m Jesse DeRose.Amy: I’m Amy Negrette.Tim: And I’m Tim Banks.Jesse: This is the podcast within a podcast where we talk about all the ways that we’ve seen AWS used and abused in the wild. Today, we’re going to be talking about the relationship between cost optimization work and investing in reservations or private pricing with AWS. This is kind of a situation conversation. Let’s say you’ve got three months left on your EDP, or maybe your spend is reaching the point where you’re starting to think about investing in, or signing an EDP. But you’ve also got some cost optimization opportunities that you want to work on. How do you prioritize those two ideas?Tim: I think when we’re talking about this, first it’s important to talk about what goes into an EDP, like, what it is and what it involves. So, EDP for AWS is Enterprise Discount Program, and what it involves is you making a monetary commitment to AWS to spend a certain amount over a certain amount of time. So, a three year EDP, you’re going to spend X amount in one year, X amount the next year, and X amount the third year for a total of whatever you decide on. So, you know, AWS typically going to want 20% year-over-year growth, so you’re going to say—you’re going to spend a million dollars, and then a million dollars plus 20% is something like $1.2 million; then, you know, 20% of that and so forth and so on.And then so your total commit will be somewhere around, like, $3.6, $3.7 million, we’ll say, right? Once you signed the EDP, that’s how much you’re going to get billed for, minimum. So, it’s important to cost optimize before you make that commitment because if AWS is expecting you and you’re on the hook to make 20% year-over-year growth, but then you optimize and you save 20% of your bill, it won’t matter because you’re still going to owe AWS the same amount of money even if you cost-optimize.Jesse: Yeah, I want to take a step back and talk about EDP—as we mentioned, Enterprise Discount Program—also has—there’s a couple other flavors that give you a variety of different types of discounts. EDP generally focuses on a cross-service discount for a certain annual commit, but there are also private pricing agreements or private pricing addendums, and other private pricing, generally speaking, offered by AWS. All of those basically expect some amount of either spend on a yearly basis or some amount of usage on a yearly basis, in exchange for discounts on that usage. And really, that is something that, broadly speaking, we do recommend you focus on, we do recommend that you invest in those reservations, but it is important to think about that—I agree—I would say after cost optimization work.Amy: The thing is that AWS also provides discounts that are commandment required, that you don’t need an EDP for, namely in reservations and savings plans. So, you would similarly be on the hook if you decide, “I have this much traffic, and I want to savings plan or reservation for it.” And then suddenly you don’t have that requirement anym
Released:
Jul 30, 2021
Format:
Podcast episode
Titles in the series (100)
- 12 min listen