Rightsizing – Performance vs Pricing (with Customer Use Cases)

Simarpreet Arora Cloudwiry Written by Simarpreet Arora

According to a Bain & Company report, 84% of on-premise workloads are overprovisioned. This implies that when companies migrate a workload to the cloud, they’re sending excess computing and storage capacity right along with it. Instead of becoming more efficient, they’re merely transferring their existing inefficiencies to a new location.

Source: Bain & Company

According to AWS, companies that take rightsizing seriously save  36% on their cloud IaaS costs. To regularly identify underutilized resources and make thoughtful decisions, right-sizing must become an ongoing process within an organization.

However, enablement is tough. To regularly identify underutilized resources, take decisions that may impact production environments, hand-pick among 350+ instance types, and carry out the execution, can be challenging. At Cloudwiry, we believe it is not the best use of anyone’s time and resources – “Time spent optimizing, is time missed on innovation.”


Customer Use Cases:

Here’s a peek into the monthly percentage savings leveraged by our customers monthly giving Cloudwiry the necessary permissions to handle the rightsizing:

Customer EC2 cost EC2 Rightsized Cost Savings Savings %
1 $350,000 $249,000 $101,000 29%
2 $1,124,527 $635,154 $489,373 43.52%
3 $319,458 $206,630 $112,828 35.32%
4 $4,500 $2,280 $2,220 49.33%
5 $35,467 $23,654 $11,813 33.31%

Data-Driven Approach to Rightsizing 

TSO Logic conducted a wide-scale rightsizing identification for around 100,000 instances in the North America region and identified a saving opportunity of around $55 Million dollars annually – roughly 36% of the cloud bill.

At this moment, a question comes to mind. What are the numbers behind it? Can my organization incur similar savings? 

Here are 4 simplified real-world examples from our analysis:


Example 1:

Name Instance Type Avg CPU Max CPU Avg Memory Max Memory Recommended Savings
Prod-1 c4.8xlarge 5% 17% 40% 80% r5.2xlarge 68%
36 vCPU, 60 GB 8 vCPU, 64GB Monthly – $782
$1.591/hr $0.504/hr Annual – $9400

The client was facing performance issues and decided to upgrade in the same family to fix the same. However, analysis showed that the CPU utilization was very low compared to memory. In this scenario, the client achieved 68% of savings by migrating to memory-optimized series.


Example 2:

Name Instance Type Avg CPU Max CPU Avg Memory Max Memory Recommended Savings
Prod-2 r5.xlarge 35% 80% 5% 17% c5.large 32.65%
4 vCPU, 32 GB 4 vCPU, 8GB Monthly – 62$
$0.267/hr $0.18/hr Annually – 740$

This client was similarly facing performance issues and was upgrading in the same memory-optimized family. However, data-driven analysis showed that the issue was with the CPU and not with the memory. Moving to a Compute Optimized series, they were able to achieve savings of around 33% without any performance impact. 


Example 3:

Name Instance Type Avg CPU Max CPU Avg Memory Max Memory Recommended Savings
Prod-3 r5.xlarge 15% 90% 20% 45% t3.xlarge 33.97%
4 vCPU, 32 GB 4 vCPU, 16GB Monthly – $65
$0.267/hr $0.1763/hr Annual – $780

This instance was rightsized on CPU and a bit oversized on Memory. But, according to our ML and AI algorithms, the average CPU was very low and max CPU peaked only at certain times of the day, which made this a perfect candidate for burstable instances. The client was able to see around 34% of the savings after moving to the burstable series.


Example 4:

Name Instance Type Avg CPU Max CPU Avg Memory Max Memory Recommended Savings
Prod-4 r5.24xlarge 4% 20% 7% 8% c5.9xlarge 73.69%
96 vCPU, 768 GB 36 vCPU, 72GB Monthly – 309$
$6.048/hr $1.622/hr Annual – 3600$

This client made a blunder in provisioning this instance. Although this instance was utilized only 10% of the time, the savings were huge once realized.

These examples are of course, simplified and barely scratch the surface of the entire process. For a more nuanced perspective for your business, feel free to reach out to me on my email. Hope this was useful!

For more strategies on how to optimize your cloud, schedule a call with our cloud experts or drop us an email at hello@cloudwiry.com