AWS business essentials - Toronto

Welcome to:
AWS Business Essentials
© 2015 Amazon Web Services, Inc. and its affiliates. All rights reserved.

Module Overview
Organizational agility and how it can accelerate success.
How continuous iteration and innovation by AWS can enable
innovation for its customers.
Why organizations are moving to the cloud.
The ways that AWS provides cost savings and flexibility to customers.
The AWS Partner Ecosystem.

What is Cloud Computing?
"Cloud Computing" refers to the on-demand delivery of IT resources and
applications via the Internet with pay-as-you-go pricing.

Enterprises Public Sectors
Customers
Startups
AWS Customers
Over 1 million Active customers in 190 countries
2000 Government Agencies
5000 Education Institutions
17,500+ Non-profits

Increase Agility
Speed
Experimentation
Culture of innovation

Agility: Speed
Go global in minutes.

Why Agility Matters: Experimentation
To invent you must experiment often and fail with lower
risk. With AWS you can:
• Spin up servers in minutes for experimenting
• Return or repurpose servers for other experiments

Increase Innovation
Experiment quickly with low cost and low risk.
On-Premises
• Experiment infrequently
• Failure is expensive
• Less Innovation
• Experiment often
• Fail quickly at a low cost
• More Innovation
$ Millions Nearly $0

Agility and Instant Elasticity
Quickly deploy new applications.
Instantly scale up as the workload grows.
Instantly shut down resources that are no
longer required.
Scale down and don’t pay for the infrastructure.
Easily Scale Up and Down

Case Study: Airbnb
2008 Launch
80,000,000+
people
2,000,000
homes
190
countries
1300+ EC2
instances

Case Study: Airbnb
Total number of guests
15M
12M
9M
6M
3M
January 2013
4 Million
Mar 2009 Sep 2009 Mar 2010 Mar2011 Sep 2011 Mar 2012 Sep 2012 Mar 2013 Sep 2013 Mar 2014

Case Study: Airbnb

Pay For Infrastructure As You Need it, Not Upfront
On-Premises
No upfront cost
Pay as you go

You Don’t Need to Guess Capacity
Self
Hosting
Waste
Customer
Dissatisfaction
Actual demand
Predicted Demand
Rigid Elastic
Actual demand
AWS

Remove Waste – Focus on the Business
AWS
Cloud-Based
Infrastructure
Your
Business
More Time to Focus on
Your Business
Configuring
Your Cloud
Assets
70%
30%70%
On-Premises
Infrastructure
30%
Managing All of the
“Undifferentiated Heavy Lifting”
Only 30% of your time should be spent architecting for the cloud and configuring your assets.

Topic Summary
Increase speed and agility.
Go global in minutes.
Benefit from massive economies of scale.
Focus on projects that differentiate your business, not
the infrastructure.
Eliminate guessing on infrastructure capacity needs.

Why AWS?

35 Categories
2700 Listings
205,000,000 EC2 Instance Hours
AWS Marketplace

AWS Partner Ecosystem
Thousands of consulting, systems
integrator and technology, and
independent software vendor partners.

AWS Platform Breadth
ENTERPRISE
APPS
DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousing
Hadoop/
Spark
Streaming Data
Collection
Machine
Learning
Elastic
Search
Virtual
Desktops
Sharing &
Collaboration
Corporate
Email
Backup
Queuing &
Notifications
Workflow
Search
Email
Transcoding
One-click App
Deployment
Identity
Sync
Single Integrated
Console
Push
Notifications
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource
Templates
TECHNICAL &
BUSINESS
SUPPORT
Account
Management
Support
Professional
Services
Training &
Certification
Security
& Pricing
Reports
Partner
Ecosystem
Solutions
Architects
MARKETPLACE
Business
Apps
Business
Intelligence
Databases
DevOps
Tools
NetworkingSecurity Storage
Regions
Availability
Zones
Points of
Presence
INFRASTRUCTURE
CORE SERVICES
Compute
VMs, Auto-scaling,
& Load Balancing
Storage
Object, Blocks,
Archival, Import/Export
Databases
Relational, NoSQL,
Caching, Migration
Networking
VPC, DX, DNS
CDN
Access
Control
Identity
Management
Key
Management
& Storage
Monitoring
& Logs
Assessment
and reporting
Resource &
Usage Auditing
SECURITY & COMPLIANCE
Configuration
Compliance
Web application
firewall
HYBRID
ARCHITECTURE
Data Backups
Integrated
App
Deployments
Direct
Connect
Identity
Federation
Integrated
Resource
Management
Integrated
Networking
API
Gateway
IoT
Rules
Engine
Device
Shadows
Device
SDKs
Registry
Device
Gateway
Streaming Data
Analysis
Business
Intelligence
Mobile
Analytics

Global Infrastructure
Infrastructure Region
Edge POP

Support Virtually Every Use Case
Pace of innovation Robust platform and geographic breadth

Continual Iteration and Innovation
AWS continuously upgrades infrastructure, so you don’t have to
On-Premises Infrastructure
Upgrades are the
customer’s responsibility
Upgrades happen
automatically

Cost Savings and Flexibility
1
Replace up-front
capital expense with
low variable cost
2
Continual Price
Reductions
Economies of scale
allow AWS to continually
lower costs
4
Save more money as
you grow bigger
Tiered Pricing
Volume Discounts
Custom Pricing
3
Pricing model choice
to support variable &
stable workloads

Topic Summary
Companies use AWS in 3 main ways:
• Augment their IT capacity
• Move their existing workloads
• Build entirely new projects, applications, web apps, and services
AWS supports hybrid IT architectures.
Customers maintain the control over their resources.

How Enterprises Are Using
the Cloud

How Enterprises Use AWS
Migrate existing apps &
data to the cloud
Build new apps, sites,
services & lines of
businesses
Augment On-Premises
resources with cloud capacity
(Hybrid Architecture)

More Than Two Choices
Enterprises are concerned that there are only two choices.
Build your own datacenter
on-premises
Replace infrastructure
with AWS

The Cloud Isn’t An “All or Nothing” Choice
Corporate Data
Centers
On-Premises
Resources
Integration
Cloud
Resources

AWS Support for Hybrid IT Architectures
Corporate Data
Centers
Your On-Premises Apps Your Cloud Apps
Active Directory
Network Configuration
Encryption
Backup Appliances
Users & Access Rules
Your Private Network
HSM Appliance
Cloud Backups
AWS Identity & Access Mgmt.
Amazon Virtual Private Cloud
AWS Cloud HSM
AWS Storage Gateway
AWS Direct Connect

Integration with On-Premises Resources
Integrated
networking
Integrated
access control
Integrated
cloud backup
Single pane
of glass

What Are Customers Really Looking For?
Private
network
Private
compute
Private
storage
Private key
management
Governance

Module Summary
Increase speed and agility.
Stop spending money on running and maintaining
data centers.
Enterprises use AWS in three main ways.
The AWS Partner Network and Ecosystem provides
support to build a successful cloud business.

Module 2: Using The AWS Platform

Module Overview
The AWS global infrastructure
Featured AWS services and service categories.
Ways that many of the service categories are being used.

The AWS Global Infrastructure

AWS Platform
ENTERPRISE
APPS
DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousing
Hadoop/
Spark
Streaming Data
Collection
Machine
Learning
Elastic
Search
Virtual
Desktops
Sharing &
Collaboration
Corporate
Email
Backup
Queuing &
Notifications
Workflow
Search
Email
Transcoding
One-click App
Deployment
Identity
Sync
Single Integrated
Console
Push
Notifications
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource
Templates
TECHNICAL &
BUSINESS
SUPPORT
Account
Management
Support
Professional
Services
Training &
Certification
Security
& Pricing
Reports
Partner
Ecosystem
Solutions
Architects
MARKETPLACE
Business
Apps
Business
Intelligence
Databases
DevOps
Tools
NetworkingSecurity Storage
Regions
Availability
Zones
Points of
Presence
INFRASTRUCTURE
CORE SERVICES
Compute
VMs, Auto-scaling,
& Load Balancing
Storage
Object, Blocks,
Archival, Import/Export
Databases
Relational, NoSQL,
Caching, Migration
Networking
VPC, DX, DNS
CDN
Access
Control
Identity
Management
Key
Management
& Storage
Monitoring
& Logs
Assessment
and reporting
Resource &
Usage Auditing
SECURITY & COMPLIANCE
Configuration
Compliance
Web application
firewall
HYBRID
ARCHITECTURE
Data Backups
Integrated
App
Deployments
Direct
Connect
Identity
Federation
Integrated
Resource
Management
Integrated
Networking
API
Gateway
IoT
Rules
Engine
Device
Shadows
Device
SDKs
Registry
Device
Gateway
Streaming Data
Analysis
Business
Intelligence
Mobile
Analytics

AWS Global Infrastructure
13 Regions | 35 Availability Zones | 9+Availability Zones & 4+Regions coming
As of June 2016
Infrastructure Region
Edge POP

Regions, Availability Zones
US Regions
AZ - A AZ - B
GovCloud (US)
AZ - A AZ - B
AZ - C AZ - D
AZ - E
US East (VA)
AZ - A AZ - B
AZ - C
US West (OR)
Note: Conceptual drawing only. The number of Availability Zones (AZ) may vary.
South America:São Paulo, 3
Europe: Ireland, 3
Frankfurt, 2
Asia Pacific: Singapore, 2
Tokyo, 3
Sydney, 3
Seoul, 2
Mumbai, 2
China (Beijing), 2
Global
Regions
AZ - A AZ - B
AZ - C
US West (CA)

Topic Summary
The AWS platform is a very broad and robust technology that offers more
functionality than you will find anywhere else.
The AWS data center footprint is global—spanning five continents—with
highly redundant clusters of data centers in each region.
This global infrastructure forms the basis of all other layers of the AWS
cloud computing platform.

AWS Core Services

Amazon Web Services
Core
Services
Platform
Services
Enterprise
Applications
Analytics App Services Deployment and Management Mobile Services
AWS Data
Pipeline
AWS
CloudTrail
CloudWatch
AWS
CloudFormation
ElastiCacheAmazon
Redshift
Amazon
RDS
DynamoDB
Amazon
CloudSearch
Amazon
SES
Amazon
SWF
Elastic
Transcoder
Amazon
Kinesis
Amazon
EMR
IAM
AWS
OpsWorks
Compute Networking DatabaseStorage
CloudFront
Amazon
Glacier
Amazon S3
Amazon
EBS
Auto Scaling
Amazon
Route 53
AWS Direct
Connect
Amazon VPC
Amazon EC2
Amazon
WorkSpaces
Amazon
WorkDocs
Amazon
SNS
Amazon
Cognito
AWS
Lambda
Elastic Load
Balancing
Amazon
Mobile Analytics

AWS Compute Services
Actual
EC2
Amazon EC2 Elastic Load BalancingAuto Scaling
Web service
providing resizable
compute capacity
Automatically scale
Amazon EC2
capacity up or down
Automatically distribute
traffic across multiple
Amazon EC2 instances

EC2 instances: Families and Generations
General-purpose: M1, M3 , M4, T2
Compute-optimized: C1, CC2, C3, C4
Memory-optimized: M2, CR1, R3
Dense-storage: HS1, D2
I/O-optimized: HI1, I2
GPU: CG1, G2
Micro: T1, T2
Broad Collection of Instance Types

T2 Instances
Consistent baseline performance with the ability to burst to
full CPU core performance.
T2 is a newer instance type, purposely built due to evolving customer needs.

Storage
Amazon EBS
Block storage
for use with Amazon
EC2
EBS
Amazon Glacier
Low cost storage
for archiving and
backup
AWS Storage Gateway
Integrates on-
premises IT and
AWS storage
Images
Videos
Files
Binaries
Snapshots
S3,
Glacier
Amazon S3
Images
Videos
Files
Binaries
Snapshots
A durable, scalable
object store

Amazon Simple Storage Service (S3)
Amazon S3 holds trillions of objects.

Amazon Elastic Block Store
Consistent performance with the ability to burst
up to 10,000 IOPS
SSD-backed: default for Amazon EC2
EBS General Purpose Solid State Drive (SSD)

Database Services
Amazon RDS
Managed relational
database service
Amazon ElastiCache
In-memory caching
service
Amazon DynamoDB
Managed NoSQL
database service
DBA
Amazon RDS
For Aurora
Newest MySQL-
compatible relational
database engine

Networking Services
Amazon VPC
Private, isolated
section of the AWS
cloud
Amazon Route 53
Domain Name
System (DNS) web
service
AWS Direct Connect
Private connectivity
between AWS and your
data center
Availability
Zone B
Availability
Zone A

High Performance Cloud Network
High packets-per-
second performance
Low jitter Amazon EBS–optimized
instances
Physical placement
optimizationVirtual network interfaces
High throughput,
low latency

Topic Summary
AWS compute services provide resizable compute capacity that can
automatically scale up or down.
AWS storage services provide low-cost data storage with high
durability and availability for block store, archiving, and backup that
integrates with on-premises IT.
AWS database services provide fully managed relational and NoSQL
database services, fully managed in-memory caching as a service,
and a fully managed petabyte-scale data-warehouse service.
Amazon Web Services provides a range of networking services that
enable you to create a logically isolated network that you define.

Administration and Security

Comprehensive Security Capabilities
PHYSICAL
NETWORK
SYSTEM
PEOPLE AND PROCESS
Familiar
security model
Customer
ecosystem
Every customer
benefits
Partner
ecosystem

AWS Gives You Control
Secure compute Secure storageSecure network Governance
Software-
defined private
network
Fine-grained
access roles
and groups
Encrypted
object storage
Private
encryption key
management
Geographic
data locality
Dedicated
private network
connection
Software-
defined network
isolation
Encrypted
block storage
Integrated with
AWS products
Fine-grained
access control
Dedicated
instances
Single tenant
block storage
Built-in auditing In-depth audits
Secure key
management

Identity and Access Control
AWS
CloudHSM
Dedicated
hardware security
module
appliances
AWS IAM (Identity
and Access Mgmt)
Manage users,
groups, and
permissions
AWS Directory
Service
Connect existing
on-premises MS
Directory or set up
new standalone

Monitoring and Usage Auditing
Amazon
CloudWatch
Monitor
resources
AWS CloudTrail
Records AWS API
calls for your
account

Topic Summary
AWS has a broad set of identity and access control services that allow
you to manage users, groups, and permissions, connect or set up
Microsoft directories.
AWS provides on-demand infrastructure while also ensuring the security
isolation that customers are accustomed to in their existing, privately
owned environments.
AWS provides security control and governance across the network,
compute and storage services.
AWS has a number of monitoring and auditing capabilities.

AWS Platform Services
Analytics
Hadoop
Real-Time
Streaming
Data
Data
Warehouse
Data
Pipelines
App Services
Queuing and
Notifications
Workflow
App
Streaming
Transcoding
Email
Search
Deployment and Management
One-Click
Web App
Deployment
Dev/Ops Resource
Management
Resource
Templates
Mobile Services
Identity
Sync
Mobile
Analytics
Push
Notifications

Analytics
Amazon
Kinesis
Amazon
Redshift
Amazon Elastic
MapReduce
Process large
amounts of data
Fast, powerful,
petabyte-scale data
warehouse
Real-time data
stream processing

Analytics Case Study: Major League Baseball
Challenge
• Lots of data to be processed and delivered
• Systems need to evolve quickly
• Ever-increasing data set
Solution
• Push notifications and media tracking running in
AWS
• Flexibility and speed to market are critical
• Most reliable and robust cloud provider
Results
• Able to spin up compute capacity to process 17 PB
of game data per season
• Reduce capacity to lower costs during off-season
• Flexibility and speed-to-market for Statcast platform
Amazon Kinesis
Amazon Redshift
AWS Direct Connect

App Services
Amazon Simple
Email Service (SES)
Amazon
Simple Queue Service
(SQS)
Amazon Simple
Notification Service
(SNS)
Amazon
AppStream
Amazon
CloudSearch
Amazon
Elastic Transcoder

Deployment and Management
AWS Elastic
Beanstalk
AWS
OpsWorks
AWS
CloudFormation
Templates to deploy
and manage
DevOps framework
for application
lifecycle management
Automate resource
management

Mobile Services
H
i
!
Amazon
Cognito
Amazon
Mobile Analytics
Amazon
SNS
User identity and data
synchronization
service
Collect, visualize,
and understand app
usage data
Fully managed push
messaging service

Enterprise Applications

Amazon
WorkSpaces
Amazon
WorkDocs
Virtual desktop
in the cloud
Secure enterprise
storage and sharing
Amazon
WorkMail
Business email and
calendaring service
in the cloud

Topic Summary
Customers from many different industries are taking advantage of AWS to
perform big data analytics and meet the challenges of the increasing
volume, variety, and velocity of digital information.
Amazon Web Services offers you a variety of managed services to use
with your applications: application streaming, queueing, push notification,
email delivery, searching, and transcoding.
Amazon Web Services provides you with services to help with the
deployment and management of your applications.
Amazon mobile services help you securely manage and synchronize app
data for your users across mobile devices.

Module 3: Cloud Financials

Module Overview
The economic benefits of AWS.
The AWS pricing principles.
The Total Cost of Ownership (TCO) Calculator.
The AWS Simple Calculator.
The impacts to the procurement cycle change as a result of migration to the
cloud.
The impacts to vendors and contract terms.

The Economic Benefits of AWS

Reducing Cost and Increasing Business Value
Pay-as-you
go model
Lower overall
costs
Stop
guessing
capacity
Agility /
speed /
innovation
Avoid
undifferentiated
heavy lifting
Go global
in minutes
✔ ✔ ✔ ✔ ✔ ✔
On-premises/
colocation x x x x x x
Cost Reasons Business Value
Reasons

Total Cost of Ownership (TCO)
Acquisition
Operating costs
Decommissioning / retiring systems
Opportunity cost
TCO Definition: the entire set of acquisition and operating costs for running an
infrastructure environment end-to-end.

1
Replace large upfront
expenditures with pay
as you go and only for
what you use.
3
Save more money as
you grow bigger
Tiered Pricing
Volume Discounts
Custom Pricing
2
Pricing model choice
to support variable &
stable workloads
On-Demand
Reserved
Spot
How can you achieve lower TCO with AWS?

AWS Enables Lower TCO Than On-Premises Environments
Utilization fundamentally higher in
AWS cloud
• Aggregating non-correlated workloads,
scale, spot market
Amazon specific hardware designs
• OEM (original equipment manufacturer)
acquisition of custom servers & net gear
• Direct purchasing of disk, memory, & CPU
• AWS controlled hypervisor & net protocol
layers
AWS Immense scale
• New data centers built each year
• Volume purchasing, highly automated,
supply chain optimizationTraditional
Data Center
Virtualized
Data Center
UPFRONT
COSTS
VARIABLE
COSTS
VARIABLE
COSTS
AWS
UPFRONT
COSTS
UPFRONT
COSTS
VARIABLE
COST
Cost savings from running
internal IT more efficiently
Cost savings from moving
to a public cloud provider

Initial Questions to Consider When Exploring TCO
Operations
Utilization
Capacity
Planning
Optimization
1
2
3
4
• How do you plan for capacity?
• How many servers have you added in the past year? Anticipating next year?
• Can you switch your hardware on and off and only pay for what is used?
• What is your average server utilization?
• How much do you overprovision for peak load?
• Will you run out of data center space some time in the future?
• What was your last year power utility bill for the Data Center(s)?
• Have you budgeted for both average and peak power requirements?
• Are you on AWS today?
• Is your architecture cost-optimized (Auto Scaling, Reserved Instances, Spot,
Instances turn on/off)?

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

Inflexible Physical Assets
Large up-front spending
Costs driven by peak, not average
infrastructure requirements
Typically under-utilized environment

Costs are Never In Sync
Many cost elements
Industry technology cycles
Timing of upgrades and refresh
Changes in networking technology
and virtualization

Migration and Expansion Costs
Per rack cost on an unplanned move
Cost of an incremental move, expansion, or
large scale event
Business continuity strategy
New global market
Rapid, unexpected growth

Unexpected Inefficiencies
Under-deployment, over-deployment
Unexpected high demand or low demand
Non-optimal, non-scalable

No Capital Intensive Infrastructure
On-Premises (or Co-location) AWS Cloud
Physical space
Cabling
Cooling
Power
Networking
Racks
Servers
Storage
Certification
Labor
No infrastructure to
build to get started

TCO Calculator
Compare the cost of running your applications in an on-premises or colocation
environment to AWS
Environment  Region  Servers Virtual Machines  Storage

Three Steps to Comparing TCO
Using the TCO Calculator
1. Describe your existing or
planned on-premises or hosting
infrastructure in four steps, or
enter detailed configurations.
2. Get an instant summary
report which shows you the
three year TCO comparison by
cost categories.
3. Download a full report
including detailed cost
breakdowns or save the report
to share with others.

Customer Spotlight: Dow Jones Intl.
TCO analysis is crucial in making a favorable business case
• From over 40 data centers down to 6
• Migration of thousands of applications
• Estimated saving $100M over 3 Years
1. Evaluate infrastructure
costs & architecture
VS
2. Make business case 3. Enable decision to
move to the cloud

Topic Summary – Economic Benefits of AWS
AWS’ economies of scale provide direct cost benefits
to customers.
Customers can move away from a traditional emphasis
on heavy capital spending on infrastructure to low
variable expense.
Customers gain improved flexibility to grow (or
contract) with a lower overall TCO.
Use the TCO Calculator to compare the cost of running
your applications in an on-premises or colocation
environment to AWS.

AWS Pricing Principles

AWS Pricing Principles
Pay as you go
Pay less by using more
Pay less when you reserve
Pay less when AWS grows
Customers pay for exactly the amount of resources that they actually use
No up-front investment
Pay per use

Demand-driven operating model for IT
Customers pay for exactly what they use
Customers do not pay for unutilized feature
or services
Charge is based on infrastructure and
services consumed
Customers have control of how they utilize
AWS products and services, which leads to
control over cost expenditures
Turn cloud resources off and on
Metered, Pay As You Go
Pricing Model

Pay Less Per Unit When You Use More
Volume discounts on overall bill when revenue hits certain thresholds.
$0.030
$0.030
$0.029
$0.029
$0.028
$0.028
<1 TB <50 TB 50-500 TB 500-1000
TB
1000-5000
TB
>5000 TB
$0.12
$0.09
$0.07
$0.05
1-10 TB 10- 50 TB 50- 150 TB 150 - 500 TB
Storage (S3)
Tiered Pricing
Data Transfer (Bandwidth)
Tiered Pricing
Pricing as of February 2015

Compute Purchasing Models
On-Demand
Pay for compute
capacity by the hour
with no long-term
commitments
For spiky workloads,
or to define needs
Reserved
Make a low, one-time
payment and receive a
significant discount on
the hourly charge
For committed
utilization
Spot
Bid for unused capacity,
charged at a Spot Price
which fluctuates based
on supply and demand
For time-insensitive or
transient workloads
Dedicated
Launch instances within
Amazon VPC that run
on hardware dedicated
to a single customer
For highly sensitive or
compliance related
workloads
Free Tier
Get Started on AWS
with free usage & no
commitment
For POCs and
getting started

Reserved Instances (RI)
For example:
Reserve capacity for one or three years
Pay a low, one-time fee for the capacity reservation
Receive a significant discount on the hourly charge for your instance

Reserved Instance Payment Options Explained
No Upfront option:
• Up to a 55% discount compared to On-Demand
• Does not require upfront payment
• Low hourly rate for the RI on an ongoing hourly basis
Partial Upfront option:
• Balances the payments of an RI between upfront and hourly
• Provides a higher discount (up to 76%) compared to the No
Upfront option
• Pay a very low hourly rate upfront for every hour in the term
regardless of usage
With the All Upfront option:
• Highest discount compared to On-Demand (up to 77% off).

Reserved Instance vs. On-Demand
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
30% 40% 50% 60% 70% 80% 90% 100%
Utilization Over a Year
m3.xlarge 1yr OD/RI Break Even
Utilization
On Demand No Upfront Partial Upfront All Upfront
What are the “break-even” points of each of these options in relation to
purchasing instances On-Demand?

Spot instances
What are Spot instances?
• Spare EC2 instances bid on in hourly increments
• One hour at a time
• Behave exactly like a regular instances
Cost Benefits
• Up to 92% off regular on-demand prices per hour
What is the trade-off?
• May be interrupted if that instance is needed for a
EC2 capacity
• No charge for any partial hour due to termination

Spot Pricing Use Case: Honda
AWS Spot Accelerates Innovation
Scalable Materials Simulations at Honda
Before:
80 in-house HPC nodes, 1 year to complete all needed simulations
After:
Scalable, on-demand HPC cluster on AWS
Up to 1000 Spot Instances, 16,000 cores
Able to run more simulations, faster, with more accurate results
“Cloud offers us an opportunity, as we can innovate faster
than before.”
- Ayumi Tada, IT System Administrator, Honda R&D

The Simple Monthly Calculator

The Simple Monthly Calculator
Customers can effectively estimate the costs of running their specific project on AWS
http://aws.amazon.com/calculator
Estimate monthly charges based on:
• Architecture
• Usage of each service
• Features for each service in each region

Topic Summary – Pricing Principles
Customers pay for the amount of resources that they
actually use.
Customers pay less per unit the more they use AWS.
AWS offers several purchasing models to support different
needs and cost requirements (e.g., for compute: On-
Demand, RI, Spot).
Estimate your monthly bill using the AWS Simple Monthly
Calculator.

Cost Optimization

Optimizing with AWS
Choose the right
instance types
Instance Utilization Monitor and turn off
unused instances
Offload architecture Leverage AWS
application services
Leverage AWS tools

Choose the Right Instance Types
Amazon
CloudWatch
Auto Scaling Current Generation
Instances
Architecture
Review

Instance Utilization
Stop idle instances Identity
Access Management
(AWS IAM)
Instance Tagging

Reserved Instances and Spot Instances
Reserved
Instances
Spot Instances Reserved Instance
Analysis Tool
Steady State Workloads Time-insensitive
stateless workloads
Compare on-demand
with reserved instances

Offload Your Architecture
Reevaluate
Architecture
Leverage AWS
application services
Leverage
AWS tools

AWS Trusted Advisor
Further reduce costs
• Inspects your AWS environment
• Recommends opportunities to save money
• Eliminates unused and idle resources

Topic Summary
Use our best practices to optimize for cost on AWS, including:
• Choose the right Instance size
• Auto scaling
• Turn off un-used Instances
• Use Reserved Instances
• Use Spot Instances
• Leverage Storage Classes
Offload your architecture and reduce cost by using application services
(SQS, SES, etc.)
Leverage AWS Tools – Trusted Advisor, EC2 Usage Reports

Procurement and Contracts

Simplifying Procurement
AWS empowers customers to be self service
without complex contracts and agreements.
Customers can grow and adapt to their
needs without complex transactions.
AWS provides customers with a flexible set of tools to simplify procurement.
Understand your organization’s
procurement culture.

The Role of Procurement
Govern and control purchasing Rationalize the number of vendors
Manage price negotiations Broker relationships

Contract Simplicity
Simple contractual
model
Flexibility to tailor
contracts
Continual purchases
without amendments or
contract changes
AWS has a single contract available online
Create a customized enterprise agreement

Single Online Agreement
Customers can move swiftly if they decide to
change direction.
Acquire services directly from the website.
Work with AWS with minimal overhead.

Enterprise Agreements
Flexibility – not limited by purchasing, legal,
and contractual constraints.
Discuss the best agreement model.
Larger customers might prefer an enterprise agreement.

Module Summary
AWS Enables Lower TCO Than On-Premises
Environments.
AWS offers a simple, consistent, and transparent pay as
you go pricing model.
Leverage tools such as Trusted Advisor and Amazon
CloudWatch to optimize cost.
Choose the right mix of instance types.
AWS provides customers with a flexible set of tools to
simplify the procurement process.

Module 4: Security and Compliance

Module Overview
AWS audits and attestations
Shared responsibility model
Security control framework of the AWS cloud
AWS security services and features
Security and auditing best practices in the AWS cloud

AWS Security: Top Priority
Customer
Data
Integrity
AWS
Infrastructure
Platforms
Controls

AWS Security: Benefits
Build an environment for the most security- sensitive
organizations.
Benefit ALL customers.
Validate design & operational effectiveness through AWS
third party audits.

AWS
Responsible for security
‘of’ the cloud
AWS Shared Responsibility Model
Customer
‘in’ the cloud
Customer Data
Platform, Applications, Identity & Access Management
Operating System, Network & Firewall Configuration
Server-side Encryption
(File System and/or Data)
Client-side Data
Encryption & Data
Integrity Authentication
Network Traffic Protection
(Encryption / Integrity / Identify)
Compute Storage Database Networking
AWS Global
Infrastructure
Edge
Locations
Regions
Availability Zones

Security of the Cloud

‘of’ the cloud
Securing Your AWS Infrastructure
‘in’ the cloud
• AWS Security Services
• Asset Management
• Data Security
• Network Security
• Access Controls
• Physical & Environmental Security
• IT Operations
• Access Controls
• Security Policy & Governance
• Change Management

Physical & Environmental Security: Physical Security
Building
Perimeter and entry
Security staff and surveillance
Two-factor authentication
Escort

Physical & Environmental Security: Environmental Security
Fire detection and suppression
Power
Climate and temperature
Monitoring equipment
Storage device decommissioning

IT Operations Controls
Audit Logging Capacity
Management
Vulnerability
Management
Incident
Management
Prevent unauthorized
access going undetected
Prevent system
outages
Detect unauthorized
access
Recover and reconstitute
incidents quickly and
effectively

IT Operations Controls
Backup &
Recovery
Business
Continuity and
Disaster Recovery
Secure
Communication
Data
Management
Prevent loss of critical
data
Respond to & recover
from major disruptions
Prevent sensitive
information from being
disclosed to unauthorized
parties
Detect suspicious
activities & unauthorized
tampering of the system

Access Controls
Segregation
Account Review &
Audit
Background
Checks
Credentials Policy
Restrict access to
information resources
+
disclosure

Security Policy & Governance Controls
Security
Policy
Risk
Assessment
Training &
Awareness
Guide operations &
information security in the
organization
Mitigate risks & reduce
exposure to
vulnerabilities
Enhance awareness of
AWS policies &
procedures

Security Policy & Governance Controls
Communication Compliance HR Security Third Party
Management
modification or disclosure
of information
Prevent inadvertent
violation of laws &
regulations
Prevent potential security
breaches resulting from
human resource
Prevent potential
compromise of information
due to misuse

Change Management Controls
Document the change
Communicate the change to the business
Test changes in non-production environments
Review changes for both technical rigor and
business impact
Attain approval for the change by authorized team
members

Audits & Attestations
Maintain alignment with thousands of global
requirements and best practices.
Validate a ubiquitous security control
environment.
Enable customers to assess their organization’s
compliance with industry and government
requirements.

Security in the Cloud

AWS Security Services
AWS
CloudHSM
AWS
Config

AWS Security Services
AWS IAM
AWS KMS
AWS
CloudTrail

Logging in AWS
AWS
CloudTrail
• Control access to log files
• Obtain alerts on log file creation & misconfiguration
• Storage of log files
• Generate customized reporting of log data

Asset Management
Asset
Identification
Asset
Inventory
Secure
Management
Change
Mangement
Audit Assets
Amazon
CloudWatch
AWS
Config

Data Security
Understand
where data
resides
Identify key
management
policies
Ensure
appropriate
controls
Review: * Connection methods
* Internal policies and procedures for key management
* Encryption methods

Network Security
Always use security groups
Augment security groups with Network ACLs
Use trusted connections
Design network security in Layers
Best
Practices

Access Controls
 Create individual IAM users
 Use groups to assign permissions to IAM users
 Grant least privilege
 Configure a strong password policy for your users
 Enable MFA for privileged users
 Use roles for applications that run on Amazon EC2 instances

Access Controls
 Delegate by using roles instead of by sharing credentials
 Rotate credentials regularly
 Remove unnecessary credentials
 Use policy conditions for extra security
 Monitor activity in your AWS account

Module Summary
Information security
The cloud environment built for the most security sensitive organizations
A shared responsibility
Security Control Framework on AWS
Key security resources and tools for AWS Customers
Top Priority

Module 5: Cloud Migration

Learning Objectives
The seven steps to cloud success.
Common use cases on AWS.
Foundational perspectives of the Cloud Adoption Framework.
How to leverage your local AWS team.
What you need to get started with AWS.
This module is designed to teach you about:

AWS Cloud Adoption Journey

The AWS Cloud Adoption Journey
Gain
Executive
Sponsorship
Experiment
Educate
Staff
Create
Hybrid
Architecture
Establish
Cloud-First
Standard
Develop a
Shared Plan
Create a
Cloud
Center of
Excellence

Steps of the Journey: Executive Sponsorship
Gain
Executive
Sponsorship
Educate
Staff Experiment
Develop
a Shared
Plan
Create Hybrid
Architecture
Create a
Center
of
Excellence
Establish
Cloud-
First
Standard
MakingitReal

Executive Sponsorship
Follow path of least resistance
Own the business case
Manage the risk
Navigate the internal politics
Start from the bottom if necessary

Align on the Outcome
Executive Priority AWS Value
CEO
CIO
CFO
CMO
CISO
CRO
Competitive advantage
Save money
Business alignment
Move faster, more efficiency
Improved cash flow
Save money
Respond to market changes
Run more experiments
Better analytics
Visibility
Auditability control
Get more products to market
Move faster, more efficiency
Experience
Pace of Innovation
Service Depth and Breadth
Pricing Philosophy
Ecosystem
Global

Steps of the Journey: Educate Staff
Experiment
MakingitReal
Educate
Staff
Gain
Executive
Sponsorship
Develop
a Shared
Plan
Create Hybrid
Architecture
Create a
Center
of
Excellence
Establish
Cloud-
First
Standard

Educate Staff
Invite the AWS team
Attend industry events Talk with industry peers Run workshops

AWS Training and Certification
Certification
aws.amazon.com/certification
Demonstrate your skills,
knowledge, and expertise
with the AWS platform
Self-Paced Labs
aws.amazon.com/training/
self-paced-labs
Try products, gain new
skills, and get hands-on
practice working with
AWS technologies
aws.amazon.com/training
Training
Skill up and gain
confidence to design,
develop, deploy, and
manage your applications
on AWS

Steps of the Journey: Experiment
Experiment
Educate
Staff
MakingitReal
Gain
Executive
Sponsorship
Develop
a Shared
Plan
Create Hybrid
Architecture
Create a
Center
of
Excellence
Establish
Cloud-
First
Standard

Experiment
Identify your first projects:
• Test and Development
• Digital
• Storage
• Backup
Practice on low-risk workloads.
Take advantage of the free tier.

Experiment – Digital
Static Website
Mobile application service
Web application service
Amazon WorkSpaces

Steps of the Journey: Center of Excellence
Educate
Staff
Experiment
MakingitReal
Gain
Executive
Sponsorship
Create a
Center
of
Excellence
Develop
a Shared
Plan
Create Hybrid
Architecture
Establish
Cloud-
First
Standard

Create a Center of Excellence (COE)
COE develops a framework.
Sets the charter.
Acts as the interface back into the
board and technical teams.
Increases agility, decreases risk and
operating costs.
Provides knowledge management.

Cloud Adoption Framework
Whitepaper: http://bit.ly/AWSCAF
People
Perspective
Process
Perspective
Security
Perspective
Maturity
Perspective
Platform
Perspective
Operating
Perspective
Business
Perspective
Perspectives in planning, creating,
managing, and supporting a modern IT
service.
Guidelines for establishing, developing and
running AWS environments.
Structure for business and IT teams to
work together.

Seven Core Perspectives
Process Perspective
Managing portfolios, programs, and projects to
deliver expected business outcome on time and
within budget, while keeping risks at acceptable
levels.
People Perspective
Defining and acquiring the skills needed to adopt the
AWS cloud platform. Examples include guiding
processes of role descriptions, training, certification,
and mentoring.
Maturity Perspective
Defining the target state architecture of the
organization and creating the required
blueprints and roadmaps.
Platform Perspective
Providing patterns, guidance, and tools for
optimal use of the technology services to
implement. Represents the technology
services of the AWS cloud platform.
Operating Perspective
Providing process, guidance, and tools for optimum
operational service management of the AWS
environment. Represents the ongoing management
of the functioning IT environment of AWS.
Security Perspective
Defining and implementing the required levels of
security, governance, and risk management to
achieve compliance.
Business Perspective
Identifying, delivering, and measuring
business impact using architectural
approaches that align technical delivery to
business imperatives.

Steps of the Journey: Develop a Shared Plan
Educate
Staff
Experiment
MakingitReal
Gain
Executive
Sponsorship
Develop
a Shared
Plan
Create Hybrid
Architecture
Establish
Cloud-
First
Standard
Create a
Center
of
Excellence

Build Relationships
AWS Executives
AWS Account Executive
AWS Principal Solution Architect
Inside Sales Manager
Customer Experience Manager
Customer Support
Professional Services

Engage Partners
Consulting Partners
Technology Partners
System Integrators
Specialist Partners
• HPC
• DevOps
• Analytics
Find a suitable partner at http://www.aws-partner-directory.com

Premier Consulting Partners

AWS Specialists
Security and Compliance
Desktop
Big data/HPC
TCO

Steps of the Journey: Hybrid Architecture
Educate
Staff
Experiment
Create a
Center
of
Excellence
Establish
Cloud-
First
Standard
MakingitReal
Gain
Executive
Sponsorship
Develop
a Shared
Plan
Create Hybrid
Architecture

Establish Hybrid Architecture
VPC Subnet
Availability Zone
Security group
VPC subnet
Availability Zone
Security group
Corporate
data center
Users
Data center router
Servers
AWS Direct Connect
location
AWS Direct
Connect routers

Backup
AWS
Storage
Gateway
Networking
AWS Direct
Connect
Virtual
Private
Cloud
Access Control
Directory
Service
AWS IAM
Identity
Federation
Resource
Management
VCenter
Integration
System
Center
Integration
Compliance
AWS
CloudTrail
AWS Config
Set Up the Foundations

Steps of the Journey: Cloud-First Standard
Establish
Cloud-
First
Standard
Educate
Staff
Experiment Create Hybrid
Architecture
Create a
Center
of
Excellence
MakingitReal
Gain
Executive
Sponsorship
Develop
a Shared
Plan

Migration: Recommended Approach
Application Migration/Experiment
Continuous Feedback
Cycles of Learning
Project 1 Project 2 Project 3 Project.
Strategy
Executive
Sponsorship
Educate Staff Foundations
Risk and
Compliance
Center of
Excellence
Operations
Model
Future
State

Example Application Migration Plan
Initiate Discover Design Migrate Integrate Validate OptimizeOperatePhase
Identify, analyze,
profile, summarize
applications
Architect a well-
defined target
environment
Determine best
approach for each
application
Infrastructure,
application, and
operation
Functional and
business criteria
Architecture, design, deployment of apps to
take full advantage of availability, scalability,
and cost benefits

Enterprise Case Study: Condé Nast
Challenge
• Improve organizational creativity, productivity,
agility, flexibility and time to market for digital
content
Why AWS?
• Leverage infrastructure
• Migrate over 500 servers, 1-PB storage, mission
critical applications, and 100 database servers to
the cloud
Benefits
• Reduced costs by 40%
• Increased operational performance by 30–40%
• Closed their own data centerWatch the video

Getting Started

Meet Your Local Sales Team
Account Manager
Inside Sales
Solutions Architects

Partner Introductions
Ecosystem Partners
http://www.aws-partner-directory.com

AWS Account
Get started immediately
Set up an AWS account.
Identify an AWS champion in your organization.
Identify the initial workload to migrate.
Start experimenting.

Module Summary
There are seven steps along the journey to cloud adoption.
There is no one-size-fits-all way that companies are moving to the cloud.
Leverage your local AWS team.
The AWS Cloud Adoption Framework (CAF) separates complex IT
environments into manageable areas of focus.
Get to know the resources that are available to you and reach out to
your local AWS team.

Conclusion
Thank You
Hope you enjoyed the training!
Let us know what you think and email us at:
aws-course-feedback@amazon.com

AWS business essentials - Toronto

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