cost-estimation-oci.pdf

UNCLASSIFIED // FOR OFFICIAL USE ONLY

UNCLASSIFIED // FOR OFFICIAL USE ONLY

June 2022

Version 1.0

ORACLE CLOUD INFRASTRUCTURE

(OCI) COST ESTIMATION

Introduction

The objective of this document is to provide Mission System Owners with a basic understanding of how to leverage the Oracle Cloud Infrastructure (OCI) cost calculator to accurately project cloud hosting costs. Topics that will be covered include:

• How to access the OCI cost calculator tool

• Basic usage ‘best practices’ for estimating costs in Cloud One

• Baseline costs: Managed services that are required for all Cloud One hosted systems

• Mission System resource cost estimation

• Predicting and optimizing annual operational cost

OCI Cost Calculator: The Basics

The OCI Cost Calculator is a tool that provides the following:

• Web-based UI for estimating monthly costs and extrapolating to annual cost estimates.

• Up-to-date pricing rates for OCI services and their various cost models.

• Allows for estimating temporary usage of resources – estimating autoscaling and/or other resources that are not provisioned 100% of the time.

• Saving, exporting and sharing cost profiles - providing the capability to save progress, collaborate with other team members, and objectively evaluate the cost impact associated with changes to architecture or service consumption.

Key points to remember when using the Cost Calculator tool for a Cloud One hosted Mission System:

• The OCI Cost Calculator is located at: https://www.oracle.com/cloud/costestimator.html

• Detail Instructions are provided by Oracle for the Gen 2 Calculator here:

https://docs.oracle.com/en-us/iaas/Content/GSG/Tasks/signingup_topic-Estimating_Costs.htm

• Tool limitation to note: OCI Marketplace charges are not able to be estimated within the tool. To estimate OCI Marketplace charges, the underlying computes charges can be estimated using the tool. Additional charges (software licenses, etc.) must be estimated separately (using the AWS marketplace provided pricing pages).

https://www.oracle.com/cloud/costestimator.html

Import/Export/Favorites is a powerful OCI cost calculator capability that allows a Mission System team to pre-configure a baseline configuration and share it with others. Many of the examples later in this presentation leverage save/share to provide reusable examples of common Cloud One configurations.

• “Export” generates a either an Excel file, .csv file or .json file can be used in the future or shared.

• “Import” loads the configuration which was shared.

• Add to Favorites saves the configuration – locally - to the OCI calculator.

OCI Cost Calculator: Baseline Costs Overview

Cloud One provisions several resources within every system’s OCI Account. AF-CCE maintains these services with no action required by the MSO, however the compute/store costs associated with these resources is the responsibility of the mission team. In the event these services are changed or updated in the future, MSO’s will be notified in advance so they can plan and budget accordingly.

• The services provisioned by the Cloud One team are:

• Bastion hosts – Major Cost Driver

• Deployment Tooling - Major Cost Driver

• OCI VCN Flow Logs – Minor Cost Driver

• OCI Events/Notifications – Minor Cost Driver

Egress Firewalls are provided to MSO’s but are in the C1 Common Service Tenancies.

OCI Cost Calculator: Baseline Costs

Major Cost Drivers (Major Impact on Cost):

• Bastion hosts – Each Mission System environment is provisioned with 2 bastion hosts. Bastion hosts are Windows servers accessed by the Common Gateway Service within Cloud One. These hosts are used for management plane traffic to securely access resources within the MSO’s OCI account. Estimated Cost: $192/month

• Deployment Tooling – Jenkins is used to execute automation code to deploy resources and systems within the MSO’s OCI account.

Jenkins is accessed by the MSO’s privileged users while logged into the Bastion Hosts. Estimated Cost: $55/month

OCI Cost Calculator: Baseline Costs

Minor Cost Drivers (Minor Impact on Cost, and not estimated via cost calculator):

• Logging – Logging provides event history of your OCI account activity, including actions taken through the OCI Management Console, OCI SDKs, command line tools, and other OCI services.

• OCI VCN Flow Logs– OCI service to alert on suspicious activity leveraging Flow Logs.

• OCI Vault – OCI Vault is a service to manage encryption keys for OCI resources. This service is integrated with other OCI services.

• For estimation purposes, the total cost of all these services is typically less than $150/month for Integration, Test and Production combined ($50/month/environment).

OCI Cost Calculator: Cost Calculator Template

The following pre-built cost calculator template can be used by mission teams to account for all ‘Cloud One-required’ hosting costs. They can be further extended to include Mission System specific costs.

Beyond the baseline services required for all Cloud One systems, MSOs must also account for the components that are specific to their system (application servers, databases, etc.). Leveraging the OCI Cost Calculator (and extending the baseline service templates), a MSO can accurately estimate annual costs. In this section, we will provide examples of how to account for these variable costs, including sample templates, considerations and instructions for estimation.

This JSON Example can be loaded into OCI Cloud Calculator

OCI Cost Calculator: Cost Calculator Template

Compute and Block Volume represent the primary building blocks for most OCI-hosted systems. Compute is OCI’s service providing elastic compute capability. Block Volume is OCI’s service for persistent, scalable storage. Estimating these components is fairly straightforward (input the quantity and type of each instance used by the Mission System), but there are several considerations that must be taken into account:

• What Performance Level of of Block Volume Storage will be needed?

• Will there be temporary resources only running periodically?

• The Operating System to be used on the Compute Instance? As Oracle Linux is significantly cheaper than Windows in OCI.

• Will some instances be running 24x7x365 for the next several years? If so, can the compute instances use a different capacity type? https://docs.oracle.com/en-us/iaas/Content/Compute/Concepts/capacity-types.htm https://docs.oracle.com/en-us/iaas/Content/Compute/Concepts/capacity-types.htm

Major Cost Driver: Compute

Estimating cost for Compute resources requires the following information:

• Instances: The number of instances in use by the Mission System.

• Utilization: The Number and amount of time these instances will be running. The options for the unit of measure is Hrs/day and Days/month

• Shape: The Processor type, Compute Shape, # of OCPUs (note an OCPU is dual threaded, so 1 OCPU is equivalent to 2 vCPUs in AWS), Memory and OS Image

• Pricing Options: Capacity Type with options available per the selected Capacity Type; such as Burstable Instances: https://docs.oracle.com/en-us/iaas/Content/Compute/References/burstable-instances.htm

Major Cost Driver: Block Volume

Estimating cost for Block Volume resources requires the following information:

• Storage Capacity: The amount of Gigabytes being estimated.

• Performance Level: The required performance level for the volume:

https://docs.oracle.com/en-us/iaas/Content/Block/Concepts/blockvolumeperformance.htm

• Volume Performance Unit (VPU): You can purchase more VPUs to allocate more resources to a volume, increasing IOPS/GB and throughput per GB.

Starting at 10 VPUs (Balanced performance level), for each 10 VPU/GB increment, performance scales as follows:

+ 15 IOPS/GB scale + 25K IOPS for Max IOPS/Volume limit (up to maximum 300K IOPS for 120 VPU/GB) + 120 KBPS/GB scale + 200 Max MBPS/Volume limit https://docs.oracle.com/en-us/iaas/Content/Block/Concepts/blockvolumeperformance.htm

Major Cost Driver: Compute and Block Volume

The following is an example that represents a typical Mission System configuration. This system leverages 2 Linux Compute instances on a VM.Standard.E3.Flex Shape with an AMD processor running 24x7x365 (for High Availability) with a single 10 GB Block Volume with Balanced Performance.

Major Cost Driver: Object Storage

Object storage service that is extremely durable and infinitely scalable. Objects stored in Object Storage are accessed via HTTP verbs to the OCI service.

• Storage Type: The type of storage being used.

• Object Storage: The Storage Type used

• Object Storage Requests: The number of requests per month

Major Cost Driver: Database

Oracle Autonomous Database (ADB) is OCI’s fully managed RDMS offering: Estimating ADB

• License Type: License Included or BYOL (Note: USAF systems can leverage Oracle BYOL due to the USAF Enterprise Oracle License.)

• Deployment Type: Shared or Dedicated

• Workload Type: Transaction Process or Analytics and Data Warehousing

• Workload Details (OCPU, % of Time at Peak and Storage in Terabytes)

System Overview for Example Budget

The most straight-forward to estimate the cost for a Cloud One-migrated system is to simply take the pre-migration compute and store resources and enter them into the OCI cost calculator directly. This is the simplest approach, but does not take advantage of any cloud-based elasticity and subsequently has the highest operational cost. The following example demonstrates this configuration for a typical Cloud One system

System Overview for Example Budget

Reviewing the template for the Non-Autoscaling application, the monthly cost is estimated at $1,515.74/month. If this application is not expecting significant changes to usage or architecture over the next year, the annual estimate for application-specific components is:

12 months * $1,515.74 = $18,188.88 per year

If we assume that this is one environment, the normal pattern for Cloud One is 4 zones (Zone C, Zone B, Zone A and Prod)

12 months * ($1515.74*4) = $72,755.52

Adding in the required Cloud One Baseline Services and the 4 additional zones: (Dev, Int, Test and Prod)

($297 *3) = $891 per year

Note – the Common Services from Cloud One are in Int, Test and Prod, therefore ($297*3) is capturing the Bastions and Jenkins costs.

Total Budget = $72,755.52 + 891 = $73,646.52 This JSON Example can be loaded into OCI Cloud Calculator

Optimizing the forecast

One of the major benefits to cloud hosting is the ability to only pay for the resources you need. Taking the previous example, here are a number of optimizations which impact the over-all cost:

1. Modify the configuration to run only during the work day (this would deliver a cost savings for the Non Production Zones)

2. Use of Burstable instances

3. Switch from an Autonomous Database to a VMDB – another Oracle Provided Database system.

All the scenarios above can be analyzed using the provided template to create different OCI configurations.