AWS Enabling the Startup Ecosystem - AWS India Summit 2012

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AWS Enabling the Startup Ecosystem presentation for the AWS Summit in India Startup Track.

AWS Enabling the Startup Ecosystem presentation for the AWS Summit in India Startup Track.

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  • http://www.flickr.com/photos/scobleizer/3985020876/You created a great webapp and you're proud of it
  • Remember your great app ? Well, everyone loves it …
  • Oracle database licenses, UNIX servers, a Sun Solaris operating system, web servers, load balancers, EMC storage1-3 year fixed hosting agreements
  • LAMP stack:Linux (instead of UNIX), Apache (web server software), MySQL (instead of Oracle) and PHP. Open source became a movement. We paid 10% of the normal costs - for software support (e.g. Red Hat)
  • Started with Storage & Virtual Servers in the Cloud – then database, tools, etcRetail mentality – large volumes, low margins. Driving scale economies to lower prices continuouslyAmazon allowed 22-year-old tech developers to launch companies without even raising capital. Amazon sped up the pace of innovation because in addition to not having to raise capital to start I also didn’t need to wait for hosting to be set up, servers to arrive, software to be provisioned.
  • Angels: Manu Kumar (K9), Dave McLure, 500Startups, Ram Shriram, SherpaloIncubators: TechStars, Ycombinator, Morpheus, Startmate, Innovation Works, etc.VC’s: True Ventures, First Round Capital
  • TIME TO MARKETNeed to launch the business quicklyLong development cycles and high costsInability to experiment and test the hypotheses that underpin the businessSCALABILITYUnpredictable demandNeed to deal with spiky traffic or sudden increase in usersNeed to scale out to cover new markets / regionsCOST & REVENUENo CAPEX budget Inability to forecast demand & commit long term contractsNeed to run a lean business & focus on generating revenue
  • Pinterest - The cloud supports easy and low cost experimentation. New services can be tested without buying new servers, no big up front costs.
  • “Minimum Viable Product”Launch fast & iterate quicklyContinuous development - speed, user experience, reliabilityServer team of 3 managed 100+ billion files
  • Gartner 2012 Cool VendorWinning against companies like Box, with customers like PWC, Deloitte, Xerox, DHL, and NASA
  • Indian mobile and online games company that publishes and develops games across a variety of platforms, including online, TV, and mobileKey partners include UTV, Adobe, and Cisco Holds exclusive gaming rights for the Indian Premier League (IPL)Initially ran on own physical infrastructure but due to growth, was looking for a cloud solution to enable them to scale quickly with minimal costs. Hosts database and games like Cricket T20 Fever on t20fever.com on AWSPlans to release more social online games on AWS solutionsVishal Gondal, CEO of Indiagames:“We were able to reduce time to market for our games from weeks to days as the ability to procure infrastructure became an enabler, not a blocker to launching our products.”“AWS is great for scalable requirements, whether you need to scale up quickly, or even to scale down quickly, if required.”
  • ■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.Andreessen Horowitz, Bessemer, etc.
  • ■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.
  • Indian travel agency that specializes in bus travel by selling bus tickets and offering software (SaaS) to bus operatorsSold > 2 million bus tickets and has >100 bus operators using the software to manage their operations. Previously ran its operations from a traditional data center by purchasing its systems & infrastructure. Currently uses Amazon’s…Elastic Compute Cloud (EC2) & Load BalancingRelational Database Service (RDS)Simple Storage Service (Amazon S3)Elastic Block Store (Amazon EBS)CloudWatch.
  • TIME TO MARKETNeed to launch the business quicklyLong development cycles and high costsInability to experiment and test the hypotheses that underpin the businessSCALABILITYUnpredictable demandNeed to deal with spiky traffic or sudden increase in usersNeed to scale out to cover new markets / regionsCOST & REVENUENo CAPEX budget Inability to forecast demand & commit long term contractsNeed to run a lean business & focus on generating revenue

Transcript

  • 1. AWS Enabling theStartup Ecosystem Pieter Kemps AWS Business Development & Venture Capital
  • 2. You begin your startup in a garage…
  • 3. …and build a fantastic app
  • 4. people love it!
  • 5. and everyone wants to use it… Now what?!
  • 6. Which company……grew to 14 million users in just over a year…reached 150 million photos & terabytes of data…signed up 10 million users in 12 hours after launching an Android app …with only 3 engineers?
  • 7. HOW?
  • 8. =“Cloud is like a fertilizer that creates Startups” Eric Ries, author of NY Times bestseller “The Lean Startup”
  • 9. Impact of Cloud on Venture Capital Impact of Cloud on StartupsAWS enabling the Startup Ecosystem
  • 10. Impact of Cloud on Venture Capital
  • 11. “Amazon changed the VC industry. This ismind boggling. That online book company. Notany of the other large technology providers.Amazon. 100% of the credit.” Mark Suster, serial entrepreneur and MD at GRP Partners
  • 12. 1995 – .com Technology Startups require physical hardware and proprietary software to build their business Typical Series A Spent on… Innovation •$2.5M: marketing, •Not a lot, since sales, etc. experimentation was 5-10M •$2.5M on costly infrastructure1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 13. 2000: Rise of Open Source Open source software drove technology costs down by 90%, which spurred innovation in technology Typical Series A Spent on… Innovation •Less on Software – •A lot more, as 3-5M LAMP •More on development experimentation is less costly now •Still on infrastructure1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 14. 2005: Enter the Cloud Public Cloud led by Amazon drove total operating costs down significantly Typical Series A Spent on… Innovation •Staff – the battle for •Explosion in 500K- talent experimentation, •Customer Acquisition innovation, and 3M Startups1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 15. 2007: Micro VC / Seed Public Cloud led to explosion in the number of Startups and the emerging of “micro VCs” Angels Incubators VC‟s Angels unite in „Super Boom in incubator GP-LP structured Angels‟ for Seed programs, with micro funds to back early- investments thru VC- investments, stage startups with like setup mentoring, etc. $500k E.g. Manu Kumar (K9), Ram Shriram E.g. TechStars, YC, The Morpheus, E.g. True Ventures, A16H, (Sherpalo) The Startup Company First Round Capital1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 16. “Amazon Web Services is probably the mostimportant thing that has happened to mobileand web app developers that the press justmisses. Jeff Bezos has accidentally or maybeon purpose powered a whole generation ofapplications.” Steve Blank, author of “The Four Steps to Epiphany”
  • 17. Impact of Cloud on Startups
  • 18. TIME TO MARKET SCALABILITY COST & REVENUE• Get to revenue • Demand is • Limited budgets• Development unpredictable • Need to run lean cycles too long • Spikey traffic • Focus on growth• High cost of • How to scale up experimentation & scale out
  • 19. Experiment More & Develop FasterLaunch your infrastructure in a few clicks so you can ReduceTime to MarketPay only what for you use, with no commitment and lock in, so youcan Experiment More at Lower CostsLeverage community support, SDK‟s, libraries, and more toachieve Shorter Development Cycles
  • 20. Code, Libs, SDK‟s, Architecturesaws.amazon.com/code aws.amazon.com/architecture
  • 21. “AWS was the clear choice for us. They enabled us tolaunch our cloud solution quickly with reliable, uninterrupted,secure service to our customers.” Jaspreet Singh, Founder & CEO
  • 22. Full Elasticity for Maximum ScalabilityScale to 1000s of servers in minutesFully automate the process of scaling up & downAdd billions of objects with Amazon S3Globally distribute petabytes of dataSelect any level of desired throughput
  • 23. “AWS is great for scalable requirements, whether you need to scaleup quickly, or even to scale down quickly, if required.” Vishal Gondal, CEO of Indiagames
  • 24. "Once we decided on AmazonWeb Services, it took us oneday to move all of our workloadon AWS Cloud. We couldn‟tscale with our other providersbut with AWS, there is nolimitation.”John Fearon, CEO
  • 25. Reduce Costs & Grow revenue Pay only what for you use, with no commitment and lock in, so No Up-Front Capital Expense Leveraging our large scale, we have reduced our prices 19 times in the last years, leading to Low Costs70:30 AWS removes undifferentiated heavy lifting – allowing you to focus on your business and Generate Revenue
  • 26. Pinterest attracted almost 18 million visitors in March, a 50% increase from February (ComScore). One of the fastest growing sites in the history of the web…• 80 million objects stored in S3 with 410 terabytes of user data• 150 EC2 instances in the web tier• 90 instances for in-memory caching• 35 instances used for internal purposes• 70 master databases with a parallel set of backup databases in different regions around the world for redundancy
  • 27. • Pay for what you use = saving money• Most traffic happens in the afternoons and evenings, so they reduce the number of instances at night by 40%.• At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as little as $15 an hour. The difference is an amazing 71%
  • 28. "With the time savings that the IT and development staffs obtain fromthe solution, AWS gives us an overall cost benefit of about 30-40%.”
  • 29. Agile Developing The Total CostDevelopment for your of (Non)on the Cloud Target Market: Ownership in Social, Games the Cloud & Mobile Apps Architecting your Killer App on AWS
  • 30. AWS enabling the Startup Ecosystem
  • 31. 3rd Party Startup Events
  • 32. AWS Startup Events
  • 33. Training & Enablement
  • 34. Supporting Incubators & Accelerators
  • 35. Supporting Venture Capital firms