The Hidden Costs of Cloud Computing with Jack Ellis
Feb 27, 2024
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The podcast covers hidden costs of AWS services, efficient data movement, S3 versioning impact, AWS Compute Optimizer benefits, IPv4 address charges, on-premise data centers consideration, cloud vs on-premise economics, role of consultants, and future of cloud management
Identifying and addressing inefficient AWS spending at a per page view level led Fathom Analytics to protect profits and sustain financial investment.
Streamlining infrastructure by optimizing Lambda usage and CloudWatch practices enhanced Fathom Analytics' cost efficiency and operational performance.
Deep dives
Key Cost Driver - Importance of Addressing AWS Bill Early
Recognizing the big cost driver for their AWS bill, Fathom Analytics proactively addressed inefficient spending on a per page view level. Despite being bootstrapped, they prioritized optimizing costs to protect profits and investment in their business. By identifying potential cost escalation early, they avoided future budget challenges and maintained financial sustainability.
Lambda and CloudWatch Surprises - Inefficient Usage and Cost Impact
The surprising inefficiencies in Lambda usage, triggered by redundant requests and costs stemming from unnecessary functions, motivated Fathom Analytics to refine their infrastructure. CloudWatch expenses were dissected, revealing that old logs were not the primary cost driver, contrary to common assumptions. By eliminating unnecessary logging practices and streamlining operations, they enhanced cost efficiency.
Optimizing Infrastructure - Transition to CloudFront and WAF Logs
In a bid to enhance scalability and cost-effectiveness, Fathom Analytics transitioned their infrastructure to leverage CloudFront and WAF Logs. This strategic shift aimed to streamline data anonymization processes, optimize data processing and storage on S3, and integrate advanced database handling methods. By embracing sophisticated cloud services and process refinements, they paved the way for heightened efficiency and performance.
Strategic Cost Management - Leveraging Managed Services and Consulting
Fathom Analytics embraced a strategic approach to cost management, utilizing managed services like RDS and consulting expertise for optimal infrastructure design. By prioritizing hands-off operation and expert guidance from consultants like Alex DuPree, they navigated complex cost optimization challenges effectively. Balancing cost-saving measures with upfront investments in consultations, they ensured long-term financial sustainability and operational excellence.
On this week’s episode of Screaming in the Cloud, Corey Quinn is joined by Jack Ellis. He is the technical co-founder of Fathom Analytics, a privacy-first alternative to Google Analytics. Corey and Jack talk in-depth about a wide variety of AWS services, which ones have a habit of subtly hiking the monthly bill, and why Jack has moved towards working with consultants instead of hiring a costly DevOps team. This episode is truly a deep dive into everything AWS and billing-related led by one of the best in the industry. Tune in.
Show Highlights
(00:00) - Introduction and Background
(00:31) - The Birth of Fathom Analytics
(03:35) - The Surprising Cost Drivers: Lambda and CloudWatch
(05:27) - The New Infrastructure Plan: CloudFront and WAF Logs
(08:10) - The Unexpected Costs of CloudWatch and NAT Gateways
(10:37) - The Importance of Efficient Data Movement
(12:54) - The Hidden Costs of S3 Versioning
(14:33) - The Benefits of AWS Compute Optimizer
(17:38) - The Implications of AWS's New IPv4 Address Charges
(18:57) - Considering On-Premise Data Centers
(21:05) - The Economics of Cloud vs On-Premise
(24:05) - The Role of Consultants in Cloud Management
(31:05) - The Future of Cloud Management
(33:20) - Closing Thoughts and Contact Information
About Jack Ellis
Technical co-founder of Fathom Analytics, the simple, privacy-first alternative to Google Analytics.