AWS Presentation at the 2012 TechSparks Finale

How Cloud ischanging the VC & Startup space Joe Ziegler & Pieter Kemps, Amazon Web Services

“Cloud is like a fertilizer that creates Startups” Eric Ries, author of NY Times bestseller “The Lean Startup”

You begin your Startup in a garage…

…and build a fantastic app

people love it!

and everyone wants to use it… Now what?!

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?

Impact of Cloud on Venture Capital Impact of Cloud on Startups Netscape vs Instagram

“Amazon changed the VC industry. This ismind boggling. That little online bookcompany. Not Google. Not Microsoft. NotIBM, HP, Accenture, Cisco, Salesforce.com oranybody else. Amazon. 100% of the credit.” Mark Suster, serial entrepreneur and MD at GRP Partners

1995 & Before Technology Startups require physical hardware and proprietary software to build their business Typical Series A Spent on… Innovation • $2.5: marketing, • Not a lot, because sales, etc. 5-10M • $2.5M on experimentation is costly infrastructure1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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 technology • A lot more, as 3-5M • More on team, product development, etc experimentation is now less costly1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

2005: Enter the Cloud Public Cloud led by Amazon drove total operating costs down by 90% Typical Series A Spent on… Innovation 500K- • Staff – the battle for • Explosion in talent experimentation, innovation, and 3M • Customer Acquisition Startups1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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, First Round (Sherpalo) Startmate, Innovation Works Capital, Matrix Partners India1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

“Amazon has kind of transformed our abilityto not just do hundreds or thousands, buthundred thousands of startups.” Steve Blank, author of “The Four Steps to Epiphany”

Impact of Cloud on Startups

idea demo scale monetize01 02 03 04 Experiment More Elasticity Reduce Costs & & & Develop Faster Scalability Grow Revenue

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

Full Elas.city for Maximum Scalability Scale up to 1000s of servers in minutesFully automate the process of scaling up & down Store billions of objects Globally distribute petabytes of data

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 Costs AWS removes undifferentiated heavy lifting – allowing you to focus70:30 on your business and Generate Revenue

Economic impact of Elastic CloudInfrastructureCost $ Unable to serve customers Predicted Demand Traditional Opportunity Cost – Hardware Capital locked up in Actual idle resources Demand Elasticity & Autoscaling Time

Old Startup World vs New

Old WorldNew World

•  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%

The Start – Development, Innovation, Iteration •  Manually Install Software on each •  Deploy Globally with a Click server •  Scale Out Instantly •  Costly and Lengthy to Fail •  Not Invented Here •  Build Data Centres •  Scale out Slowly

And then…scaling up and scaling out•  Build Data Centres •  Deploy Globally with a Click •  Scale out Slowly •  Scale Out Instantly •  Unlimited Storage

Result Valuation of 1 Billion Dollars at IPO Currently valuated at 1.5 BillionStaff of 250 People with peak at 2300 during last funding round Staff of 31 In July 2011 valuated at 1 Billion with 130 Employees

Your ApplicationsManagement & Web Interface Identity and Access Deployment & Automation MonitoringAdministration Console IAM Federation Billing Beanstalk CloudFormation CloudWatch CDN Messaging Search Distributed Computing Libraries and SDKsApplication Platform CloudFront SES SNS SQS CloudSearch EMR SWF Compute Storage Networking Database Foundation EC2 EBS S3 ELB Route 53 VPC RDS Dynamo ElastiCache SimpleDB Availability Regions Zones Edge Locations AWS Global Infrastructure

Standing on the Shoulders of Giants

May 8, 2012

Breakout TracksCorporate Track Start up & Developer Track12:45 - 1:25 Planning the Migration to the Cloud 12:45 - 1:20 AWS Enabling the Startup Ecosystem Santanu Dutt, Solutions Architect, AWS Pieter Kemps, Business Development Manager, AWS1:25 - 2:05 CloudFront & Serving Media from the Edge 1:20 - 1:55 Agile Development on the Cloud Kingsley Wood, Business Development Joe Ziegler, Technology Evangelist, AWS Manager, AWS2:05 - 2:40 Security and Privacy in the AWS Cloud 1:55 - 2:30 Partner Presentation by Intel: The Disruption Miles Ward, Solutions Architect, AWS of Big Data Trend Micro Mrittika Ganguli, Platform Software Architect, Intel2:40 - 3:40 Amazon Database Services: DynamoDB: A 2:30- 3:05 Architecting your Killer App on AWS seamlessly scalable NoSQL datastore & Joe Ziegler, Technology Evangelist, AWS Relational Database Services Deep Dive Sundar Raghavan, General Manager, Amazon RDS, AWS 3:05 - 3:40 Developing for your Target Market: Social, Games & Mobile Apps Kingsley Wood, Business Development Manager, AWS3:40 - 4:15 Benchmarking and Performance on AWS 3:40 - 4:15 Best Practices: Microsoft on AWS Robert Barnes, Director, Benchmarking, AWS Miles Ward, Solutions Architect, AWS

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AWS Presentation at the 2012 TechSparks Finale

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AWS Presentation at the 2012 TechSparks Finale Presentation Transcript