[MUSIC] Hello, my name is Kevin Blackmann, and I am a Cloud Solution Architect for Intel. The next module is focused around controlling costs in public cloud. There are five categories that I'll be speaking about, starting with centralized versus individual account management, and the pros and cons of both. Next, we will talk about forecasting strategies, this includes how you can get the most cost savings out of public cloud. Next, I will cover how DevOps training and education is an important piece to cost savings, especially influencing the developers that are consuming public cloud to be cost-conscious when building in the cloud. Your education will be a key to your success in reducing your overall cost. Then, we'll talk about alerting and preventative action strategies as a cost savings tool. Here, we will dig into how you can make people aware of how much they're spending, and how that can affect your overall usage in the cloud. And finally, we'll talk about some of the CSP specific guidelines and tooling that can help with controlling costs in the cloud. There are some decisions to be made when it comes to managing costs in public cloud. There are a lot of advantages of doing this centrally. In this next topic, we will walk through some of the pros and the cons of investing in a FinOps team to manage your public cloud provider spends. The role of the FinOps team is to ultimately get the most out of the cloud for your company at the lowest cost. First, we're going to discuss the pros of the centralized management strategy. Centralized management provides the ability to obtain centralized discounts from the cloud providers, that will give you a blanket cost savings across the organization. In a centralized management model, a centralized payment method, think of a PO versus individual teams using credit cards, this is going to be required. This ensures that the cloud provider has a single invoice to apply your discounts towards and simplifies their billing model. What we've seen is that accounts that swipe team credit cards or individually pay for their own cloud bills, they tend to spend a lot more money as a company than if you were to use a centralized payment system. Another benefit of centralized management is that it allows you to get a central view of what all of your cloud consumption actually is, across your organization. Rather than, each individual team trying to manage it on their own, and then you try and piece it together at the end. When looking at purchasing enterprise support, these agreements with the cloud providers, they're going to require that you have a centralized building structure as well. This is because a lot of the cloud providers will charge support fees based on your overall spend. And if it isn't centralized, and then support can actually be extremely costly as well. The more you spend, the cheaper the support is in most cases. Now, looking at some of the disadvantages of centralized management. In order to be successful, you will need to have a person or a team in the FinOps role for your organization. These resources will manage the organizational financial budget, but are also technical enough to evaluate your actual consumption and what the main cost in the cloud actually are. This role will also potentially need to negotiate blanket discounts in the cloud provider contracts. These company-wide discount programs aren't as technical, but we're going to learn about purchasing reserved instances and those can require some more advanced knowledge, as we get into this later in the module. These individuals need to understand what methods are best for each cloud provider you're using, so that they can best choose what cost savings methods to implement for your company. If you were to choose the individually managed strategy, obviously you can leave the management up to the account owners, and avoid them having to resource a FinOps team. However, each one of the owners is going to have to be responsible for learning and understanding cost savings in the cloud. Most of the individuals that get cloud accounts will spend a lot more of that than if you were to use a centralized method. It is very hard to get every individual team up to speed on cost savings and the opportunities that they have, and having company experts like a FinOps team that can do essentially can be very beneficial. In the individually-managed model, you don't have any standardization in terms of cost savings, you will not get enterprise discount programs, and you cannot leverage global savings purchases to reduce your overall spending in the cloud. We'll get more into this in the reserved instances later on in this course. But the biggest benefit to essentially manage strategies is the ability to spend commitments and savings across multiple accounts, and you cannot do that without a centralized management strategy. Lastly, there is great value in having a global view of your spends, as well as, other things like your cloud security score. All of the cloud providers provide a global security service, as well as, cost management. Without centralized management, you cannot do either of these. The choice of letting each business team run their own cloud accounts really is not a great idea. If you want to be able to see a holistic view of your usage and spends for your entire corporation, you should always have a centralized management system and in terms of cost, the finance role is an important component of being successful. Those individuals that make up the FinOps team will understand the cloud, they'll understand what's being used in the cloud, and they can spend the time to research the best cost-savings possible. Now, let's dive into some of the details around cost savings that I've referred to, and what's available to you in your organization. In this next section of controlling cost module, we're going to talk about the best ways to reduce costs, and forecasting is important for making commitments to the cloud providers. This is the most complicated component of the FinOps role, and it's really important to understand all of the what the cloud providers and what they offer. All the main cloud providers that we're covering in this course offer enterprise discounts or a blanket percentage off of your monthly spend. They also provide a way for you to purchase compute savings by committing to spending for a period of time. Forecasting is really important because the discounts of the cloud providers offer is based on your commitment to spend a certain dollar amount over a one year, or more likely a three year commitment. The more money you commit to them over a longer period of time, the higher your overall discount you'll get. The key to your success are not over committing on your spending if you have a volatile consumption history. In a lot of cases, you can be conservative with your long-term commitments, and to ensure that you don't have to pay a lump sum at the end of your contract because you didn't meet that commitment. We'll get into reserve instances later on, but purchasing and managing these will reduce your overall spend. You will want to keep that in mind if you're committing to a three-year spend with a cloud provider, a lower discount commitment for overall spend may not you a lower individual percentage discount, but you can make up for that by investing in more reserve instances. And the perfect world example is that you would have reserved instances for 100% of your compute infrastructure, and that you would know that your spends are going to be exactly what they're going to be for the three year period. This is pretty hard to achieve, but that is what your goal of your fin ops team is to achieve. The cloud providers are continuously making updates to the RI purchasing the commitment length, the convertibility of your commitment etcetera. And AWS is probably the most complex structure out of the three providers but this does offer an awful lot of options. The cloud providers do have some native tools that they will show you some general trends and consumption of your our eyes and you can use those to help with your forecasting as well. Let me open the console for each one of the cloud providers and give you a brief tour of what is available to you. Okay, the first demo meant to run through is the amazon building console. So this is available through your through your menu, through the through the building components of it and then you also just type in building at the top here in your search will bring up this menu, a couple of things that will show you here, so it'll give you your your monthly costs, you will see your spend by service, this account doesn't have much in it. So there won't really show much in here. But there is it'll show you all what you're spending your money, your your monthly bill on and and some some basic details of it what I wanted to show you on. Also on the on here is that you're you're going to see a lot of options in here in terms of reporting. So one of the things that is probably the best thing to to look at is a w s cost, explore this will give you a great detail in how much you're spending and what services you're using on a monthly basis. And this is really the you know the native tools that are available to you. It'll give you some trends. Right? So over in the cost for, I'll give you trending on what you're what you're seeing as your as your spending month to month. You can see the costs the current month obviously it's only the first part of the month. So it's you know the the current monthly cost is really low and it'll give you a forecasting to spend per account on on what you're using. The advantage of doing this at a centralized management level is you will get a view of everybody's account underneath this. So you can do this is an individual account component that I that I have and I'm going to go ahead switch into a centralized account. So if you're one of the benefits of doing centralized accounts as you can see all of the accounts altogether. In this particular case, I can only look at reports for this one account. Right? So if I look at monthly cost by linked account in this report, I'm only going to see this account. Right? So because I don't have any other accounts to view because I'm in this individual account. So it's great for the person that owns this account. They can see their own spends and their own trends and run some of these reports. But If you're managing this from in a fin ops role, you're going to want to see the top level of this. Right? So that's one of the advantages of doing centralized management as you can see reports like this and see all 100 or 200 ceremony sub accounts you you're managing cost savings for. This is a huge huge tool for you. So let me jump over to that account. Okay So now I'm in my this is my master account where I have four or five linked accounts underneath of it. And I'm in the cost cost management tools. So again I can go into cost explorer and I can see my last six months. So here's my my spending for this particular account and you can get into the reporting components of it. Right? So you can click on things like linked account and I'll give you spending based on by your your different links accounts. The you can go into reports and you can go into monthly cost by link accounts and you can see those you know in here as well. Right? So there's lots of reports that are available to you. You can see spending by by service. So I can see here, what are all my accounts and how what are they spending on, you can see that you know, red shift ec two instances is probably going to be the biggest one that's out there and you can plan accordingly to say gosh, I need to reduce my easy to instances. So I'm going to look at doing purchase plans or or reserve instances which we'll get to later on in the module but this is kind of the tool for for being able to see your your services and where they're all at. There's also AWS budgets which is another tool. This allows you to set alerting on any type of spending that's out there. So based on accounts or your overall budget for your entire organization or company you can create that through here. I'll talk about more about this later on in the in the course but that's another this is another place where that's very useful. Okay let's go ahead and jump over into the google console and I'll show you some of the details there. Okay, this is the google cloud console, It's available through through your standard google login, it's just and I just opened the billing components, you can see that they've got a bunch of different components in here. So you can look at just like we did for amazon, you can look at the the reports. So if you go into the reports, you can dig into the amount of spends per month by your by your project account. So you can see and you can do it over time, right? So you can do the current month right now, it always defers to the current month, you can change that to all months or you can choose a range like your to date, for example, right the last or the last 90 days. So this is something you would use to see if you wanted to look at your your cost trending over over time. And if you're going up or down and you can this will use this for planning your reserved instance purchases if you need to the which we'll get to later on in in this course. So you can search by services, you can also reduce your services down to just compute engine for example, And that's that's available through just selecting it through the through the console here. So if you just want to find, find just compute engine only, you can just select that in your report and then it will show you how much you're spending with your compute engine. Right? So and that's where a lot of your cost savings programs, reserve instances, commitments, things like that are, will be applicable for the does show you a lot of that stuff inside of here too, for your commitments. Your commitment analysis will give you some some some budgets and alerting. Again, we'll get into some of the alerting features of this, which is very very useful if you're trying to make sure that certain projects only give a certain dollar figure for. So you're studying a budget for your project, you can do that through the alerting this alerting tool. So that's a quick overview of google. Let me jump into Azure and let's see what I can show you there. Okay, so this is this is your portal, and this is the building components of this. You can find that through your you just search for it up here, cost management, cost management and billing and to select it and that'll bring you into this menu and you can choose your your organization that you're looking for. The cost analysis will give you a breakdown of all of the spends that you're seeing inside of your account or accounts. So if you're running this in a centralized management, you'll, if you, when you run this, you'll see all of your accounts and your, this is just my individual accounts which you don't have anything running in it. There's no cost associated to it. So you won't really see any any reports You can set a cost alerts and you can set budgets which we'll get into later in the course and this is where you would do those, you can set those. It also has some recommendations. So there is an advisor tells you, hey, you're spending so much on this, you can purchase reserve instances, which are down here again, that'll get later on in the course, we'll talk about that. But I just want to get familiarity with where the cost savings and and management of that is all done inside as your subscription so if you have more than one, they'll all show up underneath this section. And all of your invoices and monthly bills will all show up in this area as well. So this is a very useful to know how to get around inside of the cost of management and building section of Azure. To look at your overall spends a month a month, year to year and look and figure out what your commitments or what you're spending ratios are for those commitments. >> Now that you've seen each one of the general consoles for each other cloud providers. Let's dive into the best ways to save money in the cloud, by committing and using reserve instances. As you've learned earlier in this course, reserve instances or our eyes are available in each one of the cloud providers. Let's start with aws, as they have a fairly complex system and it will be useful to understand the differences on which one of these to purchase. Reserve instances, these are a commitment to purchase for compute units based on family type that you're using. If you look at your cost, explorer reports, you can see that many of your accounts are using say an M six extra large instances. Then you can commit to purchase that instance for one or three years, and they will reduce your overall cost by say 30% versus on demand. For example, if you have 25 accounts and in all 25 accounts you have a total of say 300 m 6 extra large instances, you could go and purchase 300 our eyes and immediately say 30% off of your bill. However, you are committing to use all 300 of those instances, 24* 7 for 1 or 3 years. If one of your teams closed the project down and they were using 50 of those instances, then you still have to pay because you committed to have all of those 300 online for the entire chairman of the RI. Ideally you would probably want to avoid this, so you can commit to maybe 50% coverage of the 300 and watch it month to month to see if there's any volatility in your environment. Then slowly increase your coverage if you want to mixing in some 1 year or 3 year commitments, as you're more confident. To add some more complexity RI's has two types, there's the standard and convertible. Standard instances are only available for a region and by instance family M series R series etc. If you buy an M 6 family RI it will only cover the instances that are in the M 6 family. It was also as convertible RI's these allow you to change the RI's between instance families. If you wish, so you can trade in your M 6 and purchase a new R 6 for the remainder of the contract. Now you have to do this manually to this conversion or you can use a third party tool to manage this for you, but it is a nice option to be able to change between families. The cost savings is lower for a convertible RI's than a standard one, say 25% versus 30% it really varies. But you get a lot more flexibility if you aren't sure if you're going to need different compute families during your commitment period. It was also introduce an EC2 instance savings plan. Instead of buying individual instance, bait RI's and families that you have to manage and track you can commit to a certain dollar figure per hour in a region, they offer this option now. This is attractive because you don't have to keep swapping out RI's or converting them from family to family. There are cost savings reductions to doing this so you don't save as much as buying individual RI's, but it's a less overhead to manage and do all the conversions. Lastly, there's one more type plan that AWS offers again at a lower cost savings amount, much less overhead, this is the compute savings plan. Unlike the EC2 instance savings plan, which only covers EC2 instances, the compute savings plan offers any EC2 based service is covered under this. So things like Fargate and lambda RI's included as well. Probably the most attractive thing about this plan is that you don't have to worry about the regions with this option. It is just a commitment to spend for the entire account, you just commit to a dollar per per hour and they give you a discount. This does come at less of a discount, but it is again less overhead to manage it. Let's look at the AWS console to really see what's available to you and how to purchase these options. >> Okay, so this is the Amazon console where we left off in the last demo, we're still in the building management portal here. The reserve instances and the cost savings plans are available through the billing dashboard here, you can see they give you some messages here, most of this is going to be done also from the EC2 service. So I'm probably going to start there, but you can get to it from inside of the console here, so if I just click on the cost savings plans, we can talk about those ones first. The cost savings plans, as I mentioned in the training class, they give you some details about what they are, but you can click on purchase the savings plan, and they give you some options here. So again, the savings plans are geared for global consumption or top level consumption of your organization. So if you have, let's say 100 Amazon accounts and you can purchase a compute savings or an EC2 savings plan for your organization and then your commitments is spread across all 100 accounts. If you were to do this in an individual account, it only counts for that one account that you're in. So there is a huge advantage of doing these compute savings plans at a large centralized management structure, so that you can control costs across your entire organization. So these are really beneficial to the phenomenal person that's running this, and it's a little bit easier than them purchasing individual reserve instances. Individual reserve instances will give you more savings in the long run, it's, minimal, it's between 5 and 6% difference between the two and these ones apply to a much larger compute environment. So, for example, if you've got a bunch of people that are using EC2 instances or using Fargate, which runs on EC2, same with lambda runs on EC2. The compute savings plans they cover all of that. So if you're spending money and all of those other services, not just EC2 then the compute savings is a great way to to save money. The EC2 instance savings plans are they're primarily for instance, families and there's region specific, right? So if you're buying M 5 instances or the new M 6 I instances, for ice lake in Amazon, then you can specifically commit to a term in a region, but you have to select the family. So when you can see that when I select these, right? So this one is select a commitment term 1 or 3 years and it doesn't really matter what region Or what instance family it is when I choose ec two instance family or instance savings plans then asked me for the commitment. Again it's one or three years. Then they want a region. And then in an instant family as well. So and with with each one of these things it's a there's a commitment to an hourly spend, right? So depending on how much you're currently spending, you can tweak these commitments. And and then you'll be able to get more savings over time. So the idea with these savings plans that I've seen that works the best is committing to small dollar amounts and stagger those every month. So for example selecting a one year or a three year term, normally the three year terms are going to give you more savings but that's a larger commitment. If you know that you're going to be in amazon for a long period of time. And a three year commitment is not, there's no risk in that space, then committing that to a small amount of three year plans. Computer savings plans is beneficial, right? So because you can get a better savings and then you just put in a you know, a dollar dollar amount in the savings. You can also choose different payment options. So it's an example, if I choose all upfront, then it's going to say okay I'm going to charge you right now, I'm going to charge you $525,000 because that's my my $20 commitment for for all regions that's what I'm planning on spending, right? And you can do this all the way up to like, you know, point one cent right? So you can commit to small amounts just to see where just to see where you're at, right? So you can commit to any any amount of these things when you look at partial upfront, what they do is they want you to pay half upfront, and then they'll charge you a dollar figure per month in your monthly bill. So this is kind of, it's it's useful because it's you don't have to put a lot of money out of pocket right now. But you'll still have a monthly payment. The all up front one is very, it's very useful, if you've got a budget in a particular quarter or say you get a bunch of money right now, and you want to spend that now in this in this month. And it's good for the entire year of the of the contract. So if I choose three year all up front, I'm going to pay all of that money right now and I'm going to get zero compute bill. For the instances that are using this this plan for the for the term of the of the commitment, so in this case three years, so there is some advantages to doing that. No upfront means you don't pay any money, there's no commitment out of pocket right now, and they just lower your bill, right? So on demand pricing will be X amount. And then whatever this compute savings discount will give you, you know, could be 2025% somewhere in that range. And then you'll just but you're committing to three years on this, so regardless if you use it, the compute let's say you shut everything else down on on the amazon. they're going to charge you regardless, right? So there's no upfront. You're you're committing to three years of this, of this usage. So that's the pros and cons of doing these instant savings plans, same sort of scenario, right? You get your one year, three year commitment. You have to do you do have to choose a region. So you just choose a I'll just choose let's just say Canada central. And then I'll choose an instance type. Not all instances are able to to get in here. So if I just choose the m5 for example, and you can again you can choose your hourly commitment of it and choose your partial upfront, right? So if I want a $10 commitment and I want partial upfront, I'm going to pay upfront. $43,000 right now, and then 3 36 $150 every month for the next which would link to choose one year, right? So that's how that's how this works or if I wanted to do all up front because I have the money right now I can just pay all 87,600 right now and will be charged from my my bill this month. But I'll get to be able to use $10 a month for M5, any M5 instance. So that's micro small, extra large to extra large. Whatever the whatever the instance type is, whatever you're spending spending per month you can do it in that instance family. Now the downside to these instant savings plans is if for example you wanted to use the m6i, which is the the new isolated instance which isn't available here yet. You couldn't you couldn't convert this over to an m6i. So you want to be somewhat cautious with what you're purchasing through this method. So maybe sticking with one year plans is is probably a better idea. But if you know you're going to be using this instance type for a long period of time and you want to commit to that then doing it 23 years is fine. So now let me talk about the reserve instances themselves. So those are available through the EC2 service. So I'm just going to go ahead and open up the Ec two service here and I'll also show you that the savings plans are also that that that menu is also available through the Ec two as well. So you could go and do both. The reserve instances is right here. So underneath here there is a menu for for for using the reserve instances and it's pretty pretty easy. You just click on purchase the instance and it's going to ask you the same types of things but these ones are going to be a lot more specific with the reserve instances. You have to choose the OS type because there's licensing involved with it. So if you choose Windows, the license is associated. You pay for that license inside of the costs for the instance or if you choose the the license, the default licenses free tendency stands for if you want your the instances that your your VM is going to be running on the actual hardware, you're going to be running on their dedicated to you. If you choose dedicated. Most people just choose default because they don't they don't necessarily care if the actual underlying hardware has multiple AWS customers on top of it. The offer's offering class. This is the this is the main difference that are available to you. The standard instances reserved instances are per instance family. So they give you a discount of say, 30% on something but you are stuck with that instance family. So if you choose the t3 instance family, you can do all of these ones. So you can do t3 t3 all the way up to two extra large. You can change your instance types to be used any one of these. If you choose standard, if you choose convertible then they don't give you as much of a discount, let's say 25% versus 30%. So it's it's not significant but it's there is some this allows you to change into this family. So in this example I was showing before if I were using these t3's. And all of a sudden no I want to start using our six eyes, right the new Intel Ice Lake instance types. Then I can convert the reserve instances that I purchased and purchase new reserve instances and get whatever balances remaining on my the ones that I purchased from the t3's. I can get those as credit towards my purchase of the new ones. So it's basically trading it in think of it as a training trading program Again the term is 12 months or one year or three years. And then again as I talked about the no upfront partial upfront is your options, right? So once you select what you want, what you're going to do, you can click on search and then it will go and look to see what's available to your, right? So okay, here's my my RI that's available to me. And I can just click on add to add it to my cart. And it's going to tell me what my monthly recurring costs are. Because I chose no upfront, my monthly recurring costs are going to be $3.74. So let's take a look and see what the actual cost savings are just for. So I'm going to go and choose something that's a little bit larger. So let's go ahead and choose a larger interest type. Let's just say I think you can type it in. Yeah, so I'm just going to choose like an m5 or m6. Let's do the m6. So let's find our instance type here. M6 i16 extra large. So that's a pretty decent sized VM. And let's do a search on that one. Great, so it's going to tell me that my effective rate is $1.55 per hour. Okay, so you can just add that to your cart and or you can just see it here. If you want to really see what how much money you're going to be saving per hour, you can use the Amazon calculator for that. So I have it open here in another another tab. So I'm just going to choose and it does matter by region. So I'm going to look and see what region I'm in. So I am in Virginia. So I got my region, I can click on an instance and I'm going to say I'm going to use this 100% of the month and I'm going to choose Linux. That's my OS that makes a difference because you're you're licensing is going to be put inside here as well. And I'm going to choose the m6 i16 extra large, right? So here's the instance type and I hit close and save. On demand pricing for this, so monthly cost would be 2.248. And then if you wanted to look at your one year, this this table will show you that. So my effective hourly rate remember in my reserve entrance here said effective value rate is going to be $1.55 because I chose three year and no upfront. So and I chose convertible. So if you go up here you can see that. So if I did three year, no upfront convertible, you can see there's my effective, the same effective price. So effective monthly cost savings is going to be $1,100 a month, right? So that's the savings there. If you looked at doing paying for it all up front, you can see the three year old convertible would be a little bit less. I'd save a little bit more, right? So 1,032 versus the 1,137. So it's not significant but there is some, right, by paying all of it up front. The most people will choose the no upfront option because they don't want to put all that money out of pocket right now, right? The monthly bill is just reduced and everything is good there. You can also do do not do the convertible. So if you did want to commit to an actual instance type here, you can see that you can save more money, right? So there's a bigger difference between the partial and let's do the new upfront, right? So here's the no upfront reserve. Not front reserve, not convertible, you're saving 1,000. Your monthly cost is 1,017 versus your 1,137. So you're about $120 less savings by choosing convertible. But this does give you the ability to change in essence family in the future. So that does have quite a bit of value if you're unsure what all of your 100 accounts that are under your master account are going to be doing, right? So if all of a sudden they decide we need to use a different instance type, we want to go from an m6 family to an r6 family something like that, they can't do that. You won't be able, these instances won't cover that. But if you have the convertible, then you can do that. You can convert the the the m6s to the r6s if that's what they needed to do, right? So this gives you more flexibility but less savings. Okay, so that's basically it for the Amazon components. I'm going to go ahead and do another demo for Google and Azure and we'll continue the session. Now let's look at the options that are available to you in Google. There are two types that are available here, the compute engine reservations and the committed use discounts or CUDs for short. The compute engine reservations are just like the standard RIs and AWS that I talked about. They're are regional based and they must be purchased by family type. The CUD is similar to a savings plan as you're just committing to a CPU, memory and disk for a region. Now the biggest difference is that I've seen is that the GCP you can have custom instance sizes and so you can choose your CPU memory and you're not stuck with a one size fits all. And that may be too big or too small for what you need. The CUD covers these custom instances as well which allows you to specifically just get enough compute for what you need for your VMs. As I mentioned before by using centralized management of all of your cloud accounts, you can purchase RIs or CUDs at various levels of your organization. You can buy them for specific projects in GCP or even at a folder level or for a large business group that they can share this discount. Or in most cases you can just buy based on your global consumption of GCP for the entire company. Let's look at a demonstration of the Google console and where these purchasing options are available to you. Okay, this is the Google console and if you go underneath your billing and then you look at commitments, this is where you can purchase your committee use discount. So these are similar to the cost savings plans in Amazon where you're committing to spend a certain dollar figure and which is kind of a global or corporation wide commitment. So you can go in here and choose purchase. You can also go in and choose recommendations. So if you click on recommendations, it's going to give you some very basic recommendations on what they think you should commit to. So in this case, they're saying I should choose the three year commitment with and commit somewhere around $30 an hour with them, right? So if I accept the recommendation, I can just click on it and then I can say continue to purchase and that will purchase it. I can choose one year or three year commitment for those. And this is your dollar figure per hour. So it's very similar to the compute savings plan across amazon. And it's kind of global across the organization because you're just committing to spend a certain dollar figure. And we can look here that it's going to say, I'm going to say for 43% discount. So it's a considerable discount by committing to this. But again you've got to you've got to pay for that upfront and that's sort of the that's sort of the the drawback of it, right? So you can save 43% on your bill but you got to pay for it right? So you can also do this, you can also do the individual reservations as well. So if I go back into the account you can just type in reservations. Just type in reservations and I can do a computer engine reservation. There's other services that you can choose but I'm just going to show you the most common one. So in this case you can give it a reservation description. You're going to choose your region. You're going to want to commit to your the the which which zone. You can select a specific one or you can use the reservation. That's automatic. So how many instances do you want to commit to? Do you want to specify a machine type? These are the different types that you can choose from the list, right? So you'll choose a particular particular type. So if I chose the the end two series, right? It's going to ask me what what type of memory do I want and what not? And you can create that reservation. And then and then that will be set up inside of your account for you. One valuable thing I would do is I would click on the link that's inside of here and that'll open up the the google google help on this and it gets some great detail on what the computer computer use committed use discounts are as well as some of the other components for compute engine, right? So there's spend spend based codes, resource based codes discount sharing across your organization and it shows you how to do that. So it's a very useful links to go dig into if you want more information. All right, so that's for the google console for reserve instances, let's go back to the course. Now let's look at is your and their cost savings options. Azure is similar to both AWS and G C P in that they have reserved instances same commitment length, one or three years. You can also pay all up front or just have a lower monthly bill now. One key difference with the Azure is that reserve instances in Azure are exchangeable for different families and usage? This isn't true in A W S and G C P. Let's look at the as your console and now and see where you can purchase these as well. Okay, so this demo is to show you the is your console and how to purchase reserve instances through that based on some of the recommendations. So inside of the cost of managed building section, you can click on reservations and this will show you all the reservations you may have in your account already. And also show you if they've succeeded expired, if there are expiring, they'll give you some notices as well. I mean you can this is where you would actually go to purchase your reservation. So if you would just click on add, I'm going to add a reservation, you would choose what type of reservation you're looking for. They've got lots of options in here most of the time it's going to be by virtual machine, right? That's the computer is the most common one for their and they and it's going to go off and it's going to search what your inventory is if you're doing this in your master account, that's going to search all of your subscriptions across all of your accounts. So that's one of the advantages of doing this in a centralized manner is that you can you can look at what your capacity is and what your usage is across all of your subscriptions for your entire corporation and buy reservations based on that. So when you when you purchase them, you have an option. So you have an option between purchasing them as a shared. So this would be you would purchase them in one subscription and share those reserve instances across all of your subscriptions. You can also do it by management group. So if you had a specific management group that you wanted to purchase some some resources for, you could tie it by that, you could tie by an individual description or you could do it by a resource group itself. So they give you lots of different options but if you're managing this from a fin ops role you probably want to manage it from a shared a shared level. So this goes across all accounts But if somebody did have their own subscription and they wanted to purchase their own individual ones then they could, those will just be done at an individual basis. So if you look at you can do that. So if I just choose let's go ahead and and build one here. So I'm going to slick on shared and I'm going to choose shared and it does give you some recommendations. So you can choose you know it says hey I need to buy 68 of these so you can either select that and and proceed with it right? And you can say okay I'm going to go ahead and click on add to cart. And it's going to save me you know x. Number of savings per month. So it does give you some some details around what what it would look like. If you if you were to execute some of these components. Now you will have to you know check with all of your different groups to see to see what your what you're going to end up Using over the term life term. These in these cases you can choose three years you can choose one year. Those are your those are your options for the term life. You can choose your region. So you have to choose which region you want to to spend the put these in and then you can choose your bill in frequency, right? So you can do all up front or you can do monthly monthly bills for those and it'll just reduce your reduce your cost by committing to those and you can do this for all different services. So you can do that for you know different Linux licensing if you if you have those but all of the all the features are available there. So if I wanted to I could click on one of these to see the details of what they're what they're recommending. So in this case is yours going to tell me a recommendation of what they think I should purchase? Which could be advantageous, right? You can see this is the usage over time, right? So utilization over time and the recommended quantity. So they're saying I should purchase this many because the the usage has been over this line for such a long period of time. So this is going back looks like it's doing Over time. It looks like it's doing one month. So that may not be the best time. Sometimes it looks like it's a month. So you really don't know but over a month everything's been a bit above the line. So that's the recommended recommendation. You could always break it down right. You can always say I want to buy 10 instead, right? 10 and that's where my utilization level is going to be, you know, my utilization is going to be way down here but it's really safe, right? So you could do, you could do 10% or you could do 30% or 40% this month and then go and run this again next month and see okay. My my utilization yeah, it's still still thinking about the line. I'm going to go ahead and buy another reservation for the for the next month and add a little bit more so you can stagger it over time. Your reservations and it will give you the most savings without paying for our without buying too many reservations that are going to go unused, right? So let's say for example somebody was running a project for two months and half of these VMS are going to go away after two months. Then if you bought all those extra reservations then you've kind of wasted money because you didn't know that that project was going to end. So buying on a monthly basis regardless if it's a what cloud provider you're using is an advantage to getting cost long term cost savings. So you just monitor your overall use utilization of your on demand pricing of what what people are spinning up on demand versus what you have covered with reserve instances and you know, normally a good value to really try and stick to is around 80. Now if you know all of your workloads, you know all of your teams and you can get that, you know, 100% coverage with our eyes, you'll obviously save the most money, but if you don't have that insight into all of your different cloud teams running this in a from a finance team, it's really, you know, it's really hard to get that 100% if you don't have your your your your fingers on the pulse of what your cloud teams are doing. So in this case I would recommend at least shooting for that 85%. And if you're just starting out buying small chunks of resin because these are all these will go for a year or three years or whatever you want to commit for. And you can't, it's hard, it's hard to get rid of them, right? So they have to expire, you're going to pay for them, you're committing to this, you've committed to the CSP so therefore they're going to charge you for it. So you don't want to over commit with reserve instances because you'll end up paying more. But get you know, getting coverage as close as possible, what your real real time coverage is going to be key for this. Thank you for watching this section of the course.
