TheCloudCostModel.pptVIP

The Cloud Cost Model Chapter 3 * * AWS Account Activity $2498.42 * * Account Activity Expanded 590 Hrs 50.15 96.66 * * Software Licenses Cloud environments come with costs bundled with the instances for the common operating systems and software packages: Example: Windows, MySQL, Linux versions.. Cloud is an impetus to work with freeware and open source. Open source is ideal for the cloud Flexibility of the open source made amazon cloud possible Beyond, open source best licensing model is the one charges by CPU-hour Amazon has recently introduced a feature where you can compute with licenses you purchased; bring your own license (BYOL) Restricted software licenses are not good for cloud environment: Per user licensing that requires validation against a server, auditing and such Lesson: Make sure you understand the licensing for the products you use * * Simple Cost Model 0.10 c per hour if you leave the Linux instance on: after 10 hours you terminate it, you pay $1.00 /ec2/pricing/ See also /calc5.html On page 49: 0.10/CPU-hour : one load balancer 0.40/CPU-hour: 2 application servers 0.80/CPU-hour: 2 database servers $2.40+ 44.00+38.40 = 84.80 per day for a typical scenario leading to $30,952 per year. This + software licenses (if you use yours) + management tools (cloud monitoring) + labor (who prepares and loads stuff on the cloud). * * A Sample Cloud ROI Analysis Pages 51 -53 Lets go over it. On-demand instances let you pay for compute capacity by the hour with no long-term commitments. This frees you from costs and complexities of planning, purchasing, and maintaining hardware and transforms what are commonly large fixed costs into much smaller variable cost. * * ROI contd. Reserved Instances give you the option to make a one time payment for each instance you want to reserve and in turn receive a significant discount on the hourly usage charge for that instance. Spot instances enable you to bid for unused Amazon Ec2 capacity. Instances are charged the Spot Pri