WEBVTT Kind: captions Language: en 1 00:00:00.000 --> 00:00:06.278 In lesson three, we saw why the cloud can cost less than your own data center. 2 00:00:06.278 --> 00:00:13.844 Now we'll see how to keep your cloud bill low, which is also part of cloud economics in Domain 3 00:00:13.844 --> 00:00:20.766 1. We'll cover two ideas. First, rightsizing, and how automation saves time and money. 4 00:00:20.766 --> 00:00:27.285 Second, the two ways to pay for software licenses on AWS: Bring Your Own License, 5 00:00:27.285 --> 00:00:29.700 or BYOL, and License Included. 6 00:00:30.100 --> 00:00:35.965 Our online store launched its web server on a large instance, just to be safe. 7 00:00:35.965 --> 00:00:42.958 Months later, its CPU rarely goes above ten percent. That's capacity the store pays for every 8 00:00:42.958 --> 00:00:50.177 hour but doesn't use. Rightsizing means matching the instance type and size to what the workload 9 00:00:50.177 --> 00:00:57.471 actually needs. Moving to a smaller instance gives the same performance for customers and a lower 10 00:00:57.471 --> 00:00:58.900 bill for the store. 11 00:00:59.300 --> 00:01:05.114 Rightsizing isn't a one-time job. You measure how resources are really used, 12 00:01:05.114 --> 00:01:12.458 with metrics such as CPU, memory and network from Amazon CloudWatch. You look for resources that 13 00:01:12.458 --> 00:01:18.120 are too big or too small, change the type or size, and then keep watching, 14 00:01:18.120 --> 00:01:24.469 because workloads change. A server that fits today may be too big after a redesign, 15 00:01:24.469 --> 00:01:27.300 or too small during the holiday rush. 16 00:01:27.700 --> 00:01:33.759 AWS does the analysis for you. AWS Compute Optimizer uses machine learning on your usage metrics 17 00:01:33.759 --> 00:01:38.681 to recommend better sizes for EC2 instances, Auto Scaling groups, EBS volumes, 18 00:01:38.681 --> 00:01:44.614 Lambda functions, ECS services on Fargate, RDS databases and more. Cost Explorer's rightsizing 19 00:01:44.614 --> 00:01:50.104 recommendations find idle and underused EC2 instances and estimate the monthly savings. 20 00:01:50.104 --> 00:01:56.100 And Trusted Advisor's cost optimization checks flag things like instances with low utilization. 21 00:01:56.500 --> 00:02:02.566 Don't confuse rightsizing with Auto Scaling. Rightsizing fixes the size of each resource, 22 00:02:02.566 --> 00:02:09.041 for example replacing one large server with one smaller server. Auto Scaling changes the number 23 00:02:09.041 --> 00:02:15.380 of resources as demand changes: it adds servers during a busy hour and removes them when it's 24 00:02:15.380 --> 00:02:22.400 quiet. Most workloads use both: right-sized instances, in a group that grows and shrinks automatically. 25 00:02:22.800 --> 00:02:29.128 Auto Scaling is one example of automation, and the exam expects you to know its benefits. 26 00:02:29.128 --> 00:02:35.313 Automated tasks run in minutes instead of weeks. They follow the same steps every time, 27 00:02:35.313 --> 00:02:42.493 so there are fewer human errors. With infrastructure as code, such as an AWS CloudFormation template, 28 00:02:42.493 --> 00:02:48.323 the store can build identical test, staging and production environments on demand. 29 00:02:48.323 --> 00:02:53.300 And staff spend their time on the business instead of repetitive work. 30 00:02:53.700 --> 00:03:00.760 Automation also saves money directly. The store's developers only use their test servers during 31 00:03:00.760 --> 00:03:07.226 office hours, but the servers run all week. A week has a hundred and sixty-eight hours. 32 00:03:07.226 --> 00:03:14.213 Running ten hours a day, five days a week, is only fifty. A schedule that stops the servers at 33 00:03:14.213 --> 00:03:20.084 night and on weekends, for example with the Instance Scheduler on AWS solution, 34 00:03:20.084 --> 00:03:23.800 cuts their running hours by about seventy percent. 35 00:03:24.200 --> 00:03:29.747 Now the second idea: software licenses. Some software, like Windows Server, 36 00:03:29.747 --> 00:03:36.846 SQL Server or Oracle Database, needs a license. With License Included, the license cost is built 37 00:03:36.846 --> 00:03:42.985 into the hourly price of the instance or database. You don't buy anything up front, 38 00:03:42.985 --> 00:03:49.049 AWS takes care of license compliance, and when you stop using it, you stop paying. 39 00:03:49.049 --> 00:03:54.300 Windows Server on EC2 and SQL Server on Amazon RDS are common examples. 40 00:03:54.700 --> 00:04:00.456 With Bring Your Own License, or BYOL, you reuse licenses your company already owns. 41 00:04:00.456 --> 00:04:06.906 Some licenses are counted per physical socket or core, so you may need an EC2 Dedicated Host: 42 00:04:06.906 --> 00:04:13.634 a physical server just for you. Some Microsoft licenses with Software Assurance can run on shared 43 00:04:13.634 --> 00:04:19.460 instances through License Mobility. Either way, you stay responsible for compliance. 44 00:04:19.460 --> 00:04:24.800 AWS License Manager helps by tracking license usage and enforcing your rules. 45 00:04:25.200 --> 00:04:31.003 So which should you choose? License Included fits when you don't own licenses, 46 00:04:31.003 --> 00:04:38.219 the workload is short-term or changes a lot, or you want AWS to handle compliance and start right 47 00:04:38.219 --> 00:04:45.063 away. BYOL fits when you've already paid for licenses, the workload is steady and long-term, 48 00:04:45.063 --> 00:04:52.130 and the vendor's terms allow it. Neither is always cheaper: compare the total cost for your own 49 00:04:52.130 --> 00:04:52.930 workload. 50 00:04:53.200 --> 00:04:59.355 Here's how the exam asks about this. Matching instance size to actual usage is rightsizing, 51 00:04:59.355 --> 00:05:04.428 and machine learning recommendations for it point to AWS Compute Optimizer. 52 00:05:04.428 --> 00:05:10.922 Adding servers when traffic grows is Auto Scaling, not rightsizing. Stopping development servers 53 00:05:10.922 --> 00:05:17.618 at night is automation saving cost. A license cost built into the hourly price is License Included, 54 00:05:17.618 --> 00:05:23.300 reusing licenses you own is BYOL, and tracking license usage is AWS License Manager. 55 00:05:23.700 --> 00:05:30.242 To recap: rightsizing matches each resource to what it really needs, and it's a continuous habit, 56 00:05:30.242 --> 00:05:36.717 helped by Compute Optimizer, Cost Explorer and Trusted Advisor. Automation makes work faster and 57 00:05:36.717 --> 00:05:41.978 more consistent, and it stops you paying for idle resources. And for software, 58 00:05:41.978 --> 00:05:47.644 License Included is simple and flexible, while BYOL reuses licenses you already own. 59 00:05:47.644 --> 00:05:52.500 Next, we'll meet the AWS Well-Architected Framework and its six pillars.