“I wish we would have had this thing five years ago. We would have saved a lot of money and a lot of stress”.
“Zesty automatically scales reservations up and down according to usage so we get all the savings with none of the commitment.”
“Using Zesty, we were able to significantly reduce our EC2 spend, which was pretty transformative for our business”
“Zesty saves us over a million dollars a year. If you’re running a workload on EC2, it’s pretty much free money”.
Heap is a SaaS company the offers a product analytics software that provides insight into the user’s digital journey across company websites and apps. The digital analytics software provides the quickest time to insight on everything users are doing, to enable product and marketing teams to create the best possible digital experiences and accelerate their business. Based in San Francisco, Heap has a user-base of over 8,000 companies around the world.
With new services released every month, Heap’s dynamic workloads made it risky to fully take advantage of 1-3 year commitments.
After implementing Zesty, Heap achieved 95% RI coverage and saved over $1 million within the first year.
Too much planning, too little savings
Heap’s digital analytics software is built on AWS and utilizes hundreds of EC2 instances, adding up to millions of dollars per year. Prior to implementing Zesty, they were purchasing Reserved Instances from AWS, but because they released new services every month, their workloads are extremely dynamic. This made committing to AWS for one to three years in advance extremely risky.
With each new feature release, Heap’s engineers invested in forecasting and planning their reservations in advance. This took a lot of time, yet, despite all these efforts, they were only able to achieve 50% RI coverage because their workloads were too volatile. This resulted in On-Demand costs that were extremely high and hard to account for.
Automated RI savings that match changing workload demand
Zesty was the answer to Heap’s difficulties.
Implementing Zesty was simple and only took a couple minutes to set up with a CloudFormation stack. Once setup was complete, Zesty automatically scaled Heap’s reservations up and down according to their real-time usage so they could take advantage of all the savings of three year Reserved Instances with none of the commitment to AWS.
Zesty’s buyback guarantee meant there’s zero risk of paying for commitments that are not being used. Within minutes of setting up, Heap was able to automate, save, and scale with zero risk, zero planning, and zero predictions.
95% RI Coverage and $1 Million in Savings
With Zesty, Heap now has a 95% reservation coverage on their EC2 workloads. As a result, they save over $1 million dollars per year. Heap gets all the cost savings of three year Reserved Instances for their entire workload with none of the lock-in and none of the upfront payment.
Best of all, with the extra million dollars, Heap can hire four to five more engineers to develop their product. Today, Heap’s engineers no longer have to do the intense actuary work behind forecasting or planning reservations. Instead, RI provisioning is completely automated, highly responsive, and able to adjust to changes in workloads within minutes. Zesty has enabled their engineers to work on projects that create more value for Heap’s client-base and because Zesty only charges a portion of what Heap was saving, the value was indisputable.
Yotpo is a leading E-commerce marketing platform that provides advanced solutions for customer reviews, visual marketing, loyalty, referrals and SMS marketing. They help thousands of e-commerce companies accelerate their brand loyalty and consumer growth. With a $1.4 billion valuation, Yotpo has thousands of global customers and 600 employees worldwide.
Yotpo launched into the Australian market at the end of 2021 following a multi-year platform collaboration with e-commerce giant, Shopify, and a USD$230 million capital raise to drive expansion.
Location: New York, London, Tel Aviv, Sydney
The complexity of forecasting the company’s compute usage was causing engineers to spend a lot of time managing, monitoring, and adjusting cost-saving commitments, but still paying a lot for premium On-Demand Instances.
“It’s completely hands-free and we save 40% each month on our On-Demand costs”
To ensure ongoing production across their user base, Yotpo maintains thousands of AWS EC2 machines on which they run their Kubernetes and Nomad-based applications. Their cloud environment is very dynamic and application needs constantly change as their customer base evolves. This makes the task of buying AWS Reserved Instances three years in advance extremely difficult, forcing them to either buy too many or too few commitments. According to Yair Leshem, DevOps Engineer at Yotpo, “it was impossible to accurately predict and purchase what exact usage is going to be three years out when it’s difficult to predict what it’s going to be 3 weeks out.”
In order to minimize this risk, a lot of time was spent managing Reserved Instances so that they could monitor usage and try to more accurately predict how much future coverage was needed. However, as changes are constant, this quickly became a time-consuming task. Engineers were finding it very difficult to keep up with the scale of managing thousands of computing instances that are each highly dynamic. As a result, Yotpo was using a lot of their instances On-Demand, causing their cloud costs to be very high.
“We are able to focus our time on our clients and not deal with cloud optimization”
95% Reserved Instance Coverage Across All Steady-State Instances
Currently, Yotpo is covering on average 95% of their compute with Reserved Instances. This has cut down their compute costs by just less than 40% equating to hundreds of thousands of dollars every year.
For Leshem, this enormous cost reduction has relieved him and his colleagues from a lot of manual labor that would have otherwise been required. Instead, they are able to focus their efforts on developing Yotpo’s products in line with their client’s wishes, and not get sidetracked with cloud management and optimization tasks. In his own words “We love it”.
Cloud Savings on Auto-pilot
Zesty’s Commitment Manager provides a simple CloudFormation stack that buys and sells Reserved Instances on their customer’s behalf. For Yotpo, this has meant that as they scale down in capacity, Commitment Manager sells their RIs, and when they scale back up, they buy RIs on Yotpo’s behalf.
Commitment Manager achieves this by analyzing the client’s logs on the CUR, CloudWatch and CloudTrail. This real-time data is analyzed and used to train a prediction model based on the specifics of the account. At the same time, the algorithm is analyzing the sale prices of Reserved Instances in the AWS marketplace, so that the most lucrative Reserved Instance discounts can be found. As the client needs more coverage, Commitment Manager grabs very small increments of highly discounted Reserved Instances and as the client uses less compute, these small increments of coverage are shed.
“It’s cloud savings on auto-pilot”
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