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Re:81% of IT teams directed to reduce or halt cloud spending by noduerme on Wednesday October 19, 2022 @01:11AM (#33257996)
I manage one midsized company's set of cloud resources that I'm pretty sure could be reduced by 40% in cost or more if they were willing to take a 3 year advanced reserve. The problem is I can't get a handle on how much their infrastructure will or won't need to scale in the next three years, since they themselves don't know. There's always some new deal around the corner that would require scaling up. On top of that, I'm not sure what we have now will even be sufficient for the existing size of the business a year from now, as much depends on new features in the pipeline and how they end up being used. The result is they end up overspending by probably $3k a year, but the upshot is the flexibility. As far as getting completely off the cloud, I migrated them away from dedicated boxes years ago and I don't miss dealing with maintaining those. The extra time for that alone was worth at least $3k a year. Even with a smaller dedicated data center, there are still issues with getting tickets responded to promptly. And there's way less in the way of failover unless you build it yourself.
Re:81% of IT teams directed to reduce or halt cloud spending by abofh on Wednesday October 19, 2022 @02:39AM (#33258514)
So there are three choices, essentially to argue over:

- run on demand instances (maybe mix in spot)

- run fargate instances (maybe mix in spot)

- reserve them.

Every company hates #3, but it's usually the best choice if you can't go spot - you can swap them within the family for size, use them for baseline, it's fine. You're incorporated right? So if you fold, it's just another debt on the pile, stop worrying. Go no upfront if you really want to avoid the cash outlay, or go spot if you can defend limited outages.

Re:81% of IT teams directed to reduce or halt cloud spending by noduerme on Wednesday October 19, 2022 @03:31AM (#33258842)
Really the issue is swapability. The way the system is constructed, there's basically one monolith for customer-facing services and another for internal ops, and some smaller shared databases, services and a bunch of backup. This hews to the company's security profile, and the lack of scattered microservices (which I now consider fortunate) is also a result of that years-ago migration from dedicated servers where these two interconnected systems evolved along separate trajectories [edit: to the point where the customer facing system still only writes to its own mark/sweep DB that's picked up by the internal system, or in rare cases accesses internal APIs by cUrl ... so either could still be anywhere]. Going up a tier on one or both of those monoliths would be more difficult and costly if they're reserved. So in a sense, a long reservation would just be good insurance against the business not growing. But no one wants to pull the trigger on that.
Re:81% of IT teams directed to reduce or halt cloud spending by eb0la on Wednesday October 19, 2022 @06:01AM (#33259854)
IMHO Reservations in AWS are good if you have a US Bank Account. Why? Because there is a secondary market (run by AWS) where you can buy and sell reservations.

If you have a 1-year project that will have a 1-year extension, then get a 3-year reservation (with some amount upfront) that you can sell.

Your second best option is a Savings Plan.

Re:81% of IT teams directed to reduce or halt cloud spending by ethbr0 on Wednesday October 19, 2022 @07:32AM (#33260607)
Neat! Is this via third party services or Amazon itself? Curious about details on the retrade market.
Re:81% of IT teams directed to reduce or halt cloud spending by eb0la on Monday October 24, 2022 @08:18AM (#33315725)
Amazon does the reselling and through their web interface.
Re:81% of IT teams directed to reduce or halt cloud spending by mathattack on Wednesday October 19, 2022 @07:43AM (#33260692)
3 year reserved instances come with hidden costs:

- Engineers may want to switch sizes or go serverless.

- Long term vendor lock-in.

- Miss out on price cuts.

There’s a reason the vendors push them so hard. (No spot market on Azure either)

Re:81% of IT teams directed to reduce or halt cloud spending by throwawaaarrgh on Wednesday October 19, 2022 @08:53AM (#33261395)
In my experience, everyone should be buying RIs or a Savings Plan, right as soon as they start using instances. At the very least it's an incentive to plan to move to cheaper tech after 3 years. But it also takes at least 3 years for businesses to get serious about trying to save on their spend. And you can change instances or types during that time. Most people don't end up changing anything, though, and wish they had been saving.