Amazon Web Services Fredrik Rapp, Partner Manager 2015, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Amazon History Jeff Bezos Incorporated the Company Amazon.com Launched Online Bookstore Amazon Publishing Amazon Web Services (AWS) Launched Kindle Launches Amazon Games Amazon Art 1994 1995 2005 2006 2007 2012 2013 AWS Technical Essentials 3.7 ILT 2015 Amazon Web Services, Inc. and its affiliates. All rights reserved. 2
Amazon - känntecken Customer obsessed Innovation Long-term AWS Technical Essentials 3.7 ILT 2015 Amazon Web Services, Inc. and its affiliates. All rights reserved. 3
How did Amazon Services? Deep experience in building and operating global web get into cloud computing?
What Is Cloud Computing? The on-demand delivery of IT resources via the Internet with pay-as-you-go pricing 5
Why Are Customers Adopting Cloud Computing? Seven main benefits experienced by customers in virtually every industry 1. It replaces up-front capital expense with low variable cost. 2. It offers lower variable costs than companies can achieve themselves. 3. It provides pricing-model choice to support variable and stable workloads. 4. It drives down IT labor costs, both up-front and ongoing. 5. It offers a premium security spec at non-premium prices. 6. It supports highly available workloads for a fraction of the cost. 7. It saves you more money as you grow bigger. 7
Cloud has become the New Normal
Creating a New Normal is a Journey Executive Sponsorship Experiment Making it Real Engage Partners Cloud Center of Excellence Educate Staff Hybrid Adoption Cloud-First Standard
AWS Cloud Adoption Framework Business Perspective Platform Perspective Maturity Perspective People Perspective Process Perspective Operating Perspective Security Perspective
Gartner Magic Quadrant for Cloud Infrastructure as a Service, Worldwide Gartner Magic Quadrant for Cloud Infrastructure as a Service, Worldwide, Lydia Leong, Douglas Toombs, Bob Gill, May 18, 2015. This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The Gartner report is available at http://aws.amazon.com/resources/analyst-reports/. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Customers Want to Use The Leading Platform 9 Most functionality Largest customer & partner community Longest experience
Why Do Customers Use AWS? Agility Platform Breadth Innovation @ Scale Cost Savings and Flexibility
Key Components of Agility Quick to provision + Vast infrastructure technology platform = Agility
You Don t Need to Guess Capacity Self Hosting Waste Customer Dissatisfaction Actual demand Predicted Demand AWS Actual demand Rigid Elastic
Get Rid of Undifferentiated Heavy Lifting We take care of it Data Centers Racks Power Servers Cooling Storage Cabling Labor Networking So you don t have to Buy and install new hardware Setup and configure new software build or upgrade data centers
In 2014: Friends don t let friends build data centers. Charles Philips, CEO
More Functionality Than Any Other Infrastructure Provider AWS Marketplace Enterprise Applications Platform as A Service Administration & Security Core Services Infrastructure
35 Categories 2300 Listings 800 ISVs 143M EC2 Instance Hours
AWS Trusted Advisor: Automated Cost Optimization and Advice To: AWS Customer From: Amazon Web Services Subject: Potential Cost Savings To: AWS Customer From: To: AWS Amazon Customer Web Services From: Amazon Web Subject: Dear Services Customer, Potential Cost Subject: Dear Customer, Savings Potential Cost Savings We have identified $49,000 of potential savings in your current Dear Customer, We have identified $49,000 of potential savings in your current AWS deployment. -Amazon Web Services 2,600,000+ recommendations $350M+ in cost reductions
Not Just the Expansive Services Much Deeper Features Compute Storage Relational Databases Data Warehouse General Purpose (M3) Glacier RDS for MySQL Customer-provided keys Compute Optimized (C3) EBS RDS for SQL Server Snapshot sharing Memory Optimized (R3) Magnetic RDS for Oracle PCI and FedRAMP compliance GPU Optimized (G2) Storage Optimized (HS1) General Purpose SSD PIOPS SSD RDS for PostgreSQL Cross-region backup IO Optimized (I2) Low cost, burst-able performance (T2)
AWS History of Innovation AWS has been continually expanding its services to support virtually any cloud workload, and it now has more than 50 services. Amazon Elastic Transcoder Amazon SES AWS OpsWorks AWS Elastic Beanstalk Amazon CloudHSM Amazon Simple DB Elastic Load Balancing Auto Scaling Amazon VPC Amazon RDS AWS CloudFormation Amazon Elasticache AWS Direct Connect AWS GovCloud Amazon AppStream Amazon CloudTrail Amazon WorkSpaces Amazon Kinesis Amazon EFS Amazon WorkMail Amazon Machine Learning 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Amazon S3 Amazon SQS Amazon EC2 Amazon EBS Amazon CloudFront Amazon SNS Amazon IAM Amazon Route 53 AWS Storage Gateway Amazon DynamoDB Amazon CloudSearch Amazon ECS Amazon Lambda Amazon Config Amazon SWF AWS CodeDeploy Amazon Glacier Amazon RDS for Aurora Amazon Redshift AWS KMS AWS Data Pipeline Amazon Cognito Amazon WorkDocs AWS Directory Service Amazon Mobile Analytics April 9, 2015
AWS Rapid Pace of Innovation In the last five years, AWS launched 1,203 new features and/or services for a total of 1,376 since inception in 2006. 516 280 159 +203 (As of 9 April) 82 2011 2012 2013 2014 2015 April 9, 2015
AWS Global Infrastructure 11 Regions 30 Availability Zones 53 Edge Locations Region Edge Location
Trusted by Enterprises Around the World
Used by Government Agencies & Educational Institutions Worldwide
Who is Using AWS in the Nordics?
Lower Costs with AWS Upfront and Increase Savings as Your Usage Grows 1 2 3 4 Replace upfront capital expense with low variable cost Economies of scale have allowed us to consistently lower costs Pricing model choice to support variable & stable workloads Save more money as you grow bigger No minimum commitments or long-term contracts required 50 Price Reductions On-demand Reserved Spot Tiered Pricing Volume Discounts
The AWS Pricing Philosophy Driven by a virtuous cycle More AWS customers drive more AWS usage More AWS usage drives greater infrastructure spend AWS experiences significant economies of scale This lowers infrastructure cost The resulting cost savings is passed on to our customers
Security and Compliance are Becoming Reasons to Move to the Cloud
AWS Customer Shared Responsibility AWS Customer Data Platform, Applications, Identity & Access Management Operating System, Network & Firewall Configuration Client-side Data Encryption & Data Integrity Authentication Server-side Encryption (File System and/or Data) Network Traffic Protection (Encryption/Integrity/Identity) Foundation Services Compute Storage Database Network AWS Global Infrastructure Availability Zones Regions Edge Locations AWS Technical Essentials 3.7 ILT 2015 Amazon Web Services, Inc. and its affiliates. All rights reserved. 33
Architected for Enterprise Security Requirements Certifications and accreditations for workloads that matter AWS CloudTrail - AWS API call logging for governance & compliance Log and review user activity Stores data in Amazon S3, or archive to Amazon Glacier
A Broad Set of Services to Secure Applications In The Cloud Networking Encryption Virtual Private Cloud Web Application Firewall Key Management Service CloudHSM Server-side Encryption Identity Compliance IAM Active Directory Integration SAML Federation Service Catalog CloudTrail Config
Cloud for Development & Test Environments SAP Oracle Enterprise Applications SAP Reduced deployment time from weeks to days Reduced test environment costs 70% reduction in operational costs
Altogether New Applications Global Deals Engine Online Software Distribution SIM Card Credit Smart Hub Application Health Care Diagnostics Creative Cloud
Websites & Digital Transformation Marketing Microsites New Products Sites 1,700 Marketing Websites University Website Corporate Websites Media & Entertainment Sites WSJ.com Online Magazines
Analytics Analytics on 450k subscribers using Amazon Redshift Ad campaign effectiveness analysis platform Financial Simulations Platform Improved drug quality through big data Trading history analytics Large scale clinical data analytic platform Financial market analytics
Mobile Enterprise video creation and sharing app Mobile services and analytics Cloud-connected trucks Mobile services & streaming Apps for cabin crew staff App store Streaming video Web and mobile site
Business Critical Production Applications SAP HANA HR and legal apps National retail bank Solvency simulations SAP business intelligence SAP business suite
Migrating Datacenters Migrated 1 Data Center Migrated 1 Data Center Migrated 1 Data Center Migrating 34 Data Centers over the next 3 years Migrated 6 of 13 Data Centers
All-in Migrations Enterprises ISVs
All-In Netflix 100s of applications supporting 33M+ global members 10,000s of EC2 instances in multiple regions & zones At peak consumes 1/3 of US Internet bandwidth
What about hybrid? On-premise? Cloud
Services For Hybrid IT Integrated Networking Integrated Identity Integrated Management Deployment Backups On premise Virtual Private Cloud Direct Connect Directory Service Identity Federation vcenter & System Center Plugins AWS Config OpsWorks CodeDeploy Storage Gateway AWS AWS CloudTrail
Hybrid IT is Part of the Journey, Not the Destination
Amazon Quicksight Fast, easy to use, cloud powered business intelligence Available in preview now
Bringing Business Intelligence to All, With Amazon QuickSight First analysis in Less than 60 seconds Blazing fast queries with a new inmemory query engine (Spice) Dynamic, beautiful data visualizations Share live and snapshot analyses with everyone Integrate with data sources on AWS 1/10 th the cost of Old-guard BI tools
Amazon Snowball Highly secure, storage appliance Shipping now, starting at 50TB
Snowball Petabyte Scale Data Transport Service 50 TB E Ink Shipping Label Ruggedized Case 8.5G Impact Rain & Dust Resistant Tamper Resistant Case & Electronics All Data Encrypted End-to-end Encryption Keys Managed Off-Device
AWS Database Migration Ser vice Easily migrate production databases to AWS with minimal downtime Available in preview now
Amazon RDS On-Premises Databases
AWS IoT Securely connect and manage devices, at any scale Beta available now
Introducing AWS IoT 1 Devices Network Security Data Collection Smarts Connect Billions of Devices Lightweight Communication Protocol X509 Certificates DynamoDB, Kinesis, and S3 Trigger Lambda Functions
Comparing TCO isn t easy (But we re going to try) Traditional Data Center & Co-Location AWS Cloud
Typical cost drivers for on-premises deployments are often overlooked or not counted in comparisons 1 Server Costs Hardware Server, Rack Chassis PDUs, ToR Switches (+Maintenance) Software - OS, Virtualization Licenses (+Maintenance) Overhead Cost Space Power Cooling 2 Storage Costs Hardware Storage Disks, SAN/FC Switches Storage Admin costs Overhead Cost Space Power Cooling 3 Network Costs Network Hardware LAN Switches, Load Balancer Bandwidth costs Network Admin costs Overhead Cost Space Power Cooling 4 IT Labor Costs Server Admin Virtualization Admin Diagram doesn t include every cost item. E.g. software costs can include database, management, middle tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.
Traditional Capacity Planning Limitations of traditional data centers: Inflexible physical assets Costs are never in sync Migration and expansion costs are high Cost of unexpected inefficiencies
Initial questions to consider when exploring TCO 1 How do you plan for capacity? Capacity How many servers have you added in the past year? Anticipating next year? Planning Can you switch your hardware on and off and only pay for what is used? 2 What is your average server utilization? Utilization How much do you overprovision for peak load? 3 Will you run out of data center space some time in the future? Operations What was your last year power utility bill for the Data Center(s)? Have you budgeted for both average and peak power requirements? 4 Are you on AWS today? Optimization Is your architecture cost-optimized (Auto Scaling, RIs, Spot, Instances turn on/off)?
How does AWS help lower TCO? By enabling customers to reduce both up-front and variable costs VARIABLE COSTS Running internal IT more efficiently Moving to a lower variable-cost structure Reducing or eliminating capital-intensive investments in infrastructure hardware Reducing costs for monitoring, maintenance and license spend Eliminating data center and co-location overhead costs UPFRONT COSTS VARIABLE COSTS UPFRONT COSTS Cost savings from moving to AWS VARIABLE COST UPFRONT COSTS Paying only for what you use Reducing excess, unused capacity Shifting from a forecast-driven model to a customer demand-driven model Moving to an agile cost base for expansion (or contraction) of the business Increased automation and productivity Reducing or eliminating IT management activities that waste time and resources Moving staff into differentiated, value-enhancing activities Traditional Data Center Virtualized Data Center AWS
Analysts have shown that AWS reduces costs IT Productivity Average savings per applications: $518,990 increase: 52% In early 2012, AWS commissioned IDC to interview 11 organizations that deployed applications on AWS. Since this study was conducted in early 2012, AWS has introduced price reductions nearly 20 times across Amazon EC2 and Amazon S3. IDC estimated what the impact of AWS's fee restructuring would be on the organizations that participated in the 2012 study and determined that the overall fees would drop by 21% lowering the five year TCO from $909,000 to $846,000. Source: IDC Business Value of AWS Accelerates over time
and that these benefits increase over time At 36 Months of using AWS At 60 Months of using AWS $8.40 in benefits ~3X $3.50 in benefits ~8X $1 Investment in AWS $1 Investment in AWS According to IDC, this relationship between length of time using AWS and return is due to customers leveraging the more optimized environment to generate more applications along a learning curve. Source: IDC Business Value of AWS Accelerates over time
Our customers are realizing lower overall TCO Decreased monthly operating costs by 75% $34 million saved in the first two years Reduced analytics cost by over 50%
Summary AWS is more cost-effective than on-premises environments in both short-term and long-term, and at scale, for both variable and steady-state workloads, while also delivering return on agility and enabling new experiences
TCO example: VM Farm On-premises vs. AWS
Where do customers typically see savings? EXAMPLE Category Server Hardware Refresh $ Impact over 60 mos. (excl. labor) Cost Driver 32% of total Bare metal servers and Virtual Machine physical hosts will need to be refreshed Data Center Facilities Costs 20% of total Monthly operational costs (space lease, power and cooling costs) and maintenance costs (generators, electrical equip.) Storage Hardware Refresh 25% of total Storage hardware will need to be refreshed Server Hardware Maintenance 9% of total Annual maintenance costs,15% of purchase price/yr. Network Hardware Refresh 7% of total Network equipment in the data center (routers, arrays, switches, cabling) will require refresh
AWS Pricing Principles No up-front investment Pay as you go Pay less when you reserve Pay less by using more Pay per use Pay less when AWS grows