DAVID FEINLEIB

PUBLIC CLOUD USAGE TRENDS

450 COMPANIES165,000 INSTANCES5.5 PB OF STORAGE

FIRST QUARTER 2013

UNDERWRITTEN BY

thebigdatagroup.com Copyright © 2013 The Big Data Group, LLC bigdatalandscape.com

2

Web Browser Market Share

Public cloud buyers can achieve

significant savings by optimizing usage

Key Findings

• Instances are underutilized with average utilization rates between 8-9%

• 52% of customers use reserved instances, but only 26% of all instances are reserved and 24% of instance reservations are unused

• Amazon Glacier, which was introduced in August of 2012, now accounts for 15% of storage usage

• Non-EC2 accounts for 38% of cost

Buyers continue to underutilize reserved and spot instances. Nearly a quarter of instance reservations are unused. Significant opportunity for cost-savings exists across reserved instances, underutilized instances, and shadow version storage consumption.

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Web Browser Market Share Study Goals

• Benchmark industry public cloud costs

• Enable buyers to improve operational efficiency based on proven ROI model

• Expand on Public Cloud Cost Q3 2013 Benchmark Study to provide additional market insights

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Web Browser Market Share Study Data

• 165,000 Amazon EC2 instances

• 6,700,000 instance hours

• 5.5 PB of storage

• Measured Mar 1, 2013 - Mar 31, 2013

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Web Browser Market ShareCustomers who spend less than $50K per year make up the largest group of AWS users, yet account for only 4% of total spend. Just 4% of customers spend more than $1M per year, yet account for some 52% of total spend.

Just 4% of customers spend more than $1M annually, but account for more than half of

total spend

Customer Distribution by Spend

< $50K $100K - $500K > $1M

4%2%

22%

11%

61%

Percent of Customers by GroupFirst Quarter 2013

< $50K $100K - $500K > $1M

52%

10%

29%

5%4%

Percent of Spend by GroupFirst Quarter 2013

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Web Browser Market ShareWhile EC2 accounts for 62% of total public cloud spend, storage services such as EBS, RDS, and S3, along with other services, account for more than a third of total spend.

Public cloud spend isn’t just on EC2--

non-compute services account for

38% of total spend

Total Spend by Service Type

EC262%

Other services17%

S36%

RDS7%

EBS8%

Other services: I/O, API calls, and bandwidth

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Web Browser Market ShareSimple Storage Service (S3) standard remains the most popular and expensive storage type. Glacier is gaining in popularity, likely due to data lifecycle management that can move old S3 objects to Glacier automatically.

S3 remains the most popular and

expensive storage type

Storage Usage by Type

Glacier15%

RR12%

Standard S373% $0.01

$0.08

$0.10

Standard S3

Reduced Redundancy

Glacier

Cost per GB (First 1 TB per Month)April 2013

Storage Usage by TypeFirst Quarter 2013

RR: Reduced Redundancy

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Web Browser Market ShareShadow versions of files account for some 8.6% of versioned S3 storage. Shadow versions refer to multiple versions of objects stored in S3 that are difficult to see because the original named versions have been deleted, while the other versions still exist.

Public cloud users may be consuming

nearly 10% extra storage without

knowing it

Storage Visibility

Visible91.4%

Hidden8.6%

Shadow VersionsFirst Quarter 2013

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Web Browser Market Share

The m1.Large and m2.4xlarge instance types account for the most spend, followed by c1.Xlarge, m1.Xlarge, and c1.Medium.

The m1.Large instance type

accounts for the biggest spend

Instance Types by Spend

m1.Larg

e

m2.4xla

rge

c1.Xlar

ge

m1.Xlar

ge

c1.Med

um

7.6%10.0%

11.6%

18.0%18.7%

7.7%9.9%

7.7%

17.5%

27.5%

Top 5 Instance Types by SpendQ4 2012 and Q1 2013

*According to Cloudyn benchmarking, two m1.Medium instances deliver 30% more performance than a single m1.Large instance.

Q4 2012Q1 2013

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Web Browser Market Share

The m1.Small and m1.Large instances are the most popular instance sizes, followed by t1.Micro, c1.Medium, and m1. Medium.

Small and Large are the most used instance types

Instance Usage by Type

Top 5 Runtime Instance TypesFirst Quarter 2013

m1.Small m1.Large t1.Micro c1.Medium m1.Medium

11.0%11.4%11.8%

19.3%

24.8%

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Web Browser Market ShareCustomers are actively moving from m1.Large to m1.Medium instances. Two m1.Medium instances cost the same as one m1.Large, but can produce 30% more output.*

Customers are actively moving from

Large to Medium instances

Usage Trends by Instance Type

m1.Small

m1.Larg

e

t1.Micr

o

c1.Med

ium

m1.Med

ium

11.0%11.4%11.8%

19.3%

24.8%

6.9%

10.5%

14.2%

24.1%25.3%

Top 5 Runtime Instance TypesQ4 2012 and Q1 2013

*According to Cloudyn benchmarking, two m1.Medium instances deliver 30% more performance than a single m1.Large instance.

Q4 2012Q1 2013

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Web Browser Market Share

More than half of all customers make some use of Reserved Instances (RIs).Customers can achieve cost-savings

by putting unused reservations to work

Reserved Instance Usage

Customer Usage of Reserved Instances in Deployment MixFirst Quarter 2013

Don’t Use RIs48%

Use RIs52%

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Web Browser Market ShareReserved Instances account for only 26% and spot instances for only 3% of total instance runtime usage. Despite their potential cost-saving benefits, customers remain hesitant to adopt these pricing models.

On-demand instances remain the

choice of most customers

Usage by Instance Pricing Model

Runtime InstancesFirst Quarter 2013

Spot3%Reserved

26%

On-demand71%

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Web Browser Market Share

Some 24% of instance reservations are unused. Customers that are purchasing reserved instances aren’t making use of nearly a quarter of them.

Customers can achieve cost-savings

by putting unused reservations to work

Reserved Instance Usage

Instance ReservationsFirst Quarter 2013

Used76%

Unused24%

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Web Browser Market Share

The most common instance types are largely underutilized, with average utilization rates at just 8-9%.

Most instances are largely underutilized,

presenting significant opportunity for cost-

savings

Utilization of Most Common Instance Types

m1.Small m1.Medium m1.Large

91.0%92.0%91.0%

9.0%8.0%9.0%

UtilizedUnutilized

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Web Browser Market ShareLess than half of all m1.Medium and m1.Large instances in the study exceeded 50% CPU usage, making them potential candidates for smaller instances. More than half of t1.Micro instances had 75% utilization or greater and more than half of m1.Small and c1.Medium instances had 50% or greater CPU usage, making them potential candidates for larger instances.

Spiky usage may be one reason buyers of

larger instances are reticent to move to smaller instances

Instance Types by Maximum Utilization

t1.Micro

m1.Small

m1.Medium

c1.Medium

m1.Large 9%

13%

15%

22%

45%

9%

26%

10%

21%

8%

25%

23%

19%

20%

16%

24%

17%

35%

18%

19%

18%

12%

12%

11%

10%

15%

9%

9%

8%

2%

< 10% 10%-24% 25%-49% 50%-74% 75%-89% > 90%

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Web Browser Market Share Emerging Trends

• Despite their potential cost-saving benefits, reserved instances remain underused

• As the range of AWS services continues to expand, hidden costs, such as those associated with storage in the form of shadow versions, can add up to big dollars

• Amazon Glacier has achieved significant traction in a short amount of time, likely due to its integrated data lifecycle management

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Web Browser Market ShareCustomers can

achieve significant cost savings through

proper public cloud management

Recommendations For Buyers

• Evaluate

• Instance types relative to utilization

• Unused instance reservations

• Unreserved instances

• Consider

• Switching from Large to Medium instances

• Migrating infrequently-used data to Glacier

• Retiring unattached storage

• Ensure total response time stays within acceptable range (1.5 - 2.5 seconds)

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Web Browser Market Share For More Information

David Feinleibdave@thebigdatagroup.com

The Big Data Group consults with technology vendors and buyers on marketing strategy and market research.

The Big Data Group produces The Big Data Landscape, Big Data Trends, Big Data TV, and The Big Data 100.

Cloudyn’s set of power tools helps companies optimize their cloud deployments. Organizations using Cloudyn have comprehensive insight and control over their cloud costs and usage.

www.cloudyn.com

@cloudyn_buzz

Appendix

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Web Browser Market ShareCustomers who spend less than $50K per year make up the largest group of AWS users, yet account for only 4% of total spend. Just 4% of customers spend more than $1M per year, yet account for some 52% of total spend.

Customer Distribution by Spend

< $50K $50K - $100K $100K - $500K $500K - $1M > $1M

52%

10%

29%

5%4% 4%2%

22%

11%

61%

Customers by Spend CategoryFirst Quarter 2013

% Customers % Spend

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Web Browser Market Share

The most common instance types are largely underutilized, with average utilization rates at just 8-9%.

Most instances are largely underutilized,

presenting significant opportunity for cost-

savings

Utilization of Most Common Instance Types

m1.Small m1.Medium m1.Large

9.0%

8.0%

9.0%

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Web Browser Market Share Instance Definitions

Type Instances

Micro t1.micro

Small m1.small

Medium c1.medium, m1.medium

Large m1.large

XLarge *.*xlarge

For the purposes of this study, instances were grouped into Micro, Small, Medium, Large, and XLarge types. The instances included in each type are shown below.