View stunning SlideShares in full-screen with the new iOS app!Introducing SlideShare for AndroidExplore all your favorite topics in the SlideShare appGet the SlideShare app to Save for Later — even offline
View stunning SlideShares in full-screen with the new Android app!View stunning SlideShares in full-screen with the new iOS app!
Samsung Powers Smart Hub Interactive Content Service with AWS Problem: Needed to reduce IT costs and were looking to create a more flexible IT environment Solution: AWS’s low, pay-as-you-go prices and reliable services. With every request, the application authenticates devices, delivers apps and content, and pushes notifications. Business Benefits: Saved $34M in hardware and maintenance expenses, 85% less than running on-premises
Consumer Seller IT Infrastructure Business Business Business Tens of millions of Sell on Amazon Cloud computing active customer websites infrastructure for accounts hosting web-scale Use Amazon solutions technology for your own retail website Eight countries: Hundreds of US, UK, Germany, Leverage Amazon’s thousands of Japan, France, massive fulfillment registeredCanada, China, Italy center network customers in over 190 countries
About AmazonHow did Amazon…Web Services Deep experience in building and ? operating global web scale systems …get into cloud computing?
Each day AWS adds theequivalent server capacity topower Amazon when it was a global, $5.2B enterprise (circa 2003)
AWS Global InfrastructureGovCloud US West US West US East South EU Asia Asia Asia (US ITAR (Northern (Oregon) (Northern America (Ireland) Pacific Pacific Pacific Region) California) Virginia) (Sao Paulo) (Singapore) (Tokyo) (Sydney) AWS Regions (Multiple Available Zones in each region) AWS Edge Locations
The AWS Cloud Components For Enterprises Tools to access services Cross Service features High-level building blocks Low-level building blocks
Gartner Magic Quadrant for Cloud Infrastructure as a Service (Oct 2012)Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes, October 18, 2012. This Magic Quadrantgraphic 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 upon requestfrom Steven Armstrong (firstname.lastname@example.org). Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technologyusers to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartners research organization and should not be construedas 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 22purpose.
When calculating TCO… #1 Start by understanding your use cases, and the applications that support them
Analyze, Understand and Classify IT assets List all your IT assets Dash board Identify upward and downward dependencies Web CRM Auth Start classifying your IT assets into different categories: • Applications with Top Secret, Secret, LDAP Service or Public data setsDB • Applications with low, medium and Search high compliance requirements OLAP Engine • Applications that are internal-only, partner-only or customer-facing • Applications with low, medium and high coupling ERP Report logs • Applications with strict, relaxed licensing
Stack Rank your IT Assets, looking for: Under-utilized IT assets Applications that have an immediate business need to scale Applications that are running out of capacity Applications that are easy to move today First successes will build support within your organization and create awareness and excitement, so choose carefully!
Pick the low-hanging fruit so you can learn Dash board Web CRM CRM Auth Servic LDAP e DB DB Search OLAP Engine ERP Report logs
When calculating TCO… #1 Start by understanding your use cases, and the applications that support them #2 Take all the fixed costs into consideration(Don’t forget all the hidden costs!)
Personnel Cost: HW Procurement, DC Design,Operations, Networking, Security…
Take all the costs in to considerationFixed Cost Factors One-time Upfront Monthly AWS Co-lo On-Site AWS Co-lo On-SiteServer Hardware 0 $$$ $$ $$ 0 0Network Hardware 0 $$ $$ 0 0 0Hardware Maintenance 0 $$ $$ 0 0 0Software OS 0 $$ $$ $ 0 0Power and Cooling and Data 0 0 $$ 0 0 $Center EfficiencyData Center/co-lo Space 0 $$ $$ 0 0 0Personnel (Administration) 0 $$ $$ $ $$ $$$Storage and Redundancy 0 $$ $$ $ 0 0Bandwidth $ $$ $ $$ $ $Resource Management 0 0 0 $$ $ 0SoftwareTotal
When calculating TCO… #1 Start by understanding your use cases, and the applications that support them #2 Take all the fixed costs into consideration(Don’t forget all the hidden costs!) #3 Use Updated Pricing (compute, storage and net) Price cuts, Tiered Pricing and Volume Discounts
Massive economies of scale andefficiency improvements allow us to continually lower prices
26 price cuts in last 6 years“It makes me look so good in front of my CFO. When he [CFO]sees the savings in our AWS monthly bill, he thinks that it is mewho is working hard on driving the costs down and increasingefficiency of the company’s infrastructure. I get all the credit forall the hard work you guys are putting in.” CIO of F500 company Massive economies of scale and efficiency improvements allow us to continually lower prices.
When calculating TCO… #1 Start by understanding your use cases, and the applications that support them #2 Take all the fixed costs into consideration(Don’t forget all the hidden costs!) #3 Use Updated Pricing (compute, storage and net) Price cuts, Tiered Pricing and Volume Discounts#4 Leverage Reserved Pricing vs. On-Demand Pricing(Amortize Monthly over 1-3 years)
Multiple pricing models allow you to optimize costs for both variable and stable workloadsOn-Demand, Reserved (Light, Medium and Heavy for 1-Year, 3-Year) and Spot
Save more when you reserve On-demand Reserved Instances Instances• Pay as you go • One time low upfront fee + Pay as you go• Starts from • $23 for 1 year $0.02/Hour term and $0.012/Hour 1 and 3 year terms Heavy Util. RI Medium Util. RI Light Util. RI $62 + 0.005/Hr $54 + 0.007/Hr $23 + 0.012/Hr
$14,000 $12,000 m2.xlarge running Linux in US-East Region $10,000 over 3 year period $8,000Cost Heavy Utilization $6,000 Medium Utilization Light Utilization $4,000 On-Demand $2,000 $- 0% 20% 40% 60% 80% 100% Utilization Utilization Sweet Spot Feature Savings over On-Demand <10% On-Demand No Upfront Commitment 10% - 40% Light Utilization RI Ideal for Disaster Recovery Up to 56% (3-Year) 40% - 75% Medium Utilization RI Standard Reserved Capacity Up to 66% (3-Year) >75% Heavy Utilization RI Lowest Total Cost Up to 71% (3-Year) Ideal for Baseline Servers
TCO of Steady State Web Application TCO Web Application - Steady State Usage Pattern On-Premises AWS Option 1 AWS Option 2 AWS Option 3 Option All Reserved Mix of On-Demand All On-Demand Amortized monthly costs over 3 years (3-Year Heavy) and ReservedOption 1: All Reserved Compute/Server CostsRecommended Option (Most Cost-effective) Server Hardware $306.36 $0.00 $0.00 $0.00 Network Hardware $62.04 $0.00 $0.00 $0.00Option 2: Hardware Maintenance Mix of On-Demand and Reserved$47.10 $0.00 $0.00 $0.00 Power and Cooling $172.02 $0.00 $0.00 $0.00 Data Center Space $144.48 $0.00 $0.00 $0.00Option 3:Personnel All On-Demand $1,200.00 $0.00 $0.00 $0.00Commitment-free and Risk-free Option AWS Instances $0.00 $618.33 $1,079.42 $2,138.40 Total - Per Month $1,932.00 $618.33 $1,079.42 $2,138.40 Total - 3 Years $69,552.00 $22,260.00 $38,859.20 $76,982.40 Savings over On-Premises Option 68.0% 44.1% -10.7%
TCO of uncertain unpredictable web application when it fails TCO Web Application - Unpredictable Usage Pattern (Failure case) On-Premises AWS Option 1 AWS Option 2 AWS Option 3 Amortized monthly costs over 3 years Option All Reserved Mix of On-Demand All On-Demand and Reserved Compute/Server CostsOption 1: All Reserved Server Hardware $816.96 $0.00 $0.00 $0.00 Network Hardware $165.44 $0.00 $0.00 $0.00Option 2: Hardware Maintenance Mix of On-Demand and Reserved $125.60 $0.00 $0.00 $0.00 Power and Cooling $458.72 $0.00 $0.00 $0.00Option 3: Data Center or Co-located Space All On-Demand $385.28 $0.00 $0.00 $0.00Commitment-free and Risk-free Option$3,200.00 Personnel $0.00 $0.00 $0.00Recommended Option (Most Cost-effective) AWS Instances $0.00 $1,552.89 $1,275.46 $1,009.80 Total - Per Month $5,152.00 $1,552.89 $1,275.46 $1,009.80 Total - 3 Years $185,472.00 $55,904.00 $45,916.48 $36,352.80 Savings over On-Premises Option 69.9% 75.2% 80.4%
Cost of lost business or disappointed customers Uncertain Unpredictable Usage Pattern (Success Case) 40 36 32 Traffic in Instances 28 24 20 Actual Traffic Expected Traffic 16 Reserved 12 On-Demand 8 Physical 4 0 0 6 12 18 24 30 36 Months
Save more money by using Spot Instances On-demand Reserved Spot Instances Instances Instances• Pay as you go • One time low upfront • Requested Bid Price fee + Pay as you go and Pay as you go • $23 (1 year) • Varying…$0.005/Hour• Starts from $0.012/Hour at 9am today $0.02/Hour 1 and 3 year terms Heavy Medium Light Utilization RI Utilization RI Utilization RI
Save more money by using Spot Instances On-Demand Price = 0.17/hrReserved Hourly Price > Spot Price < On-Demand Price
Spot Use casesUse Case Types of ApplicationsBatch Processing Generic background processing (scale out computing)Hadoop Hadoop/MapReduce processing type jobs (e.g. Search, Big Data, etc.)Scientific Computing Scientific trials/simulations/analysis in chemistry, physics, and biologyVideo and Image Transform videos into specific formatsProcessing/RenderingTesting Provide testing of software, web sites, etcWeb/Data Crawling Analyzing data and processing itFinancial Hedgefund analytics, energy trading, etcHPC Utilize HPC servers to do embarrassingly parallel jobsCheap Compute Backend servers for Facebook games
Typical Spot Bidding Strategies Bid Distribution 20% 18%Percentage of the Distribution 16% 14% 12% 10% 8% 6% 4% 2% 0% Bid Price as Percentage of the On-Demand Price
Optimizing Video Transcoding Workloads Free Offering Premium Offering • Optimize for reducing cost Optimized for Faster response times • Acceptable Delay Limits No DelaysImplementation Implementation • Set Persistent Requests Invest in RIs • Use on-demand Instances, if Use on-demand for Elasticity delay Maximum Bid Price Maximum Bid Price < On-demand Rate >= On-demand Rate Get your set reduced price for Get Instant Capacity for higher price your workload
When calculating TCO… #1 Start by understanding your use cases, and the applications that support them#2 Take all the fixed costs into consideration (Don’t forget all the hidden costs!) #3 Use Updated Pricing (compute, storage and net) Price cuts, Tiered Pricing and Volume Discounts#4 Leverage Reserved Pricing vs. On-Demand Pricing(Amortize Monthly over 1-3 years) #5 Intangible Cost Savings – Take a closer look at what you get as part of AWS
AWS delivers a premium security spec at non-premium pricesCertifications Physical Security HW, SW, Network SOC 1 Type 2 Datacenters in Systematic change (formerly SAS-70) nondescript facilities management ISO 27001 Physical access Phased updates strictly controlled deployment PCI DSS for EC2, S3, EBS, VPC, Must pass two-factor Safe storage RDS, ELB, IAM authentication at decommission least twice for floor FISMA Moderate Automated access Compliant Controls monitoring and self- Physical access audit HIPAA & ITAR logged and audited Compliant Advanced network Architecture protection
Cloud computing 30% 70% On-Premises Your Managing All of theInfrastructure Business “Undifferentiated Heavy Lifting”
Cloud computing 30% 70% On-Premises Your Managing All of theInfrastructure Business “Undifferentiated Heavy Lifting” AWS Configuring More Time to Focus on Cloud-Based Your Cloud Your BusinessInfrastructure Assets 70% 30%
AWS Pricing PhilosophyPay as you go• No minimum commitments or long-term contracts required• Capex -> Opex• Turn off when you don’t need itPay less per unit when you use more• Tiered Pricing and Volume DiscountsPay even less when you reserve• Reserved pricingPay even less as AWS grows• Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricing
TCO Comparison Calculator for Web Applications
How customers are saving money with AWSAWS Economics Center IDC Report: Theaws.amazon.com/economics Business Value ofTCO Whitepapers AWS AcceleratesCalculator Tools Over Timeaws.amazon.com/tco-calculatorCase Studies
Did you know?Free Usage Tier Free Services Data Transfer New Customers AWS Elastic Beanstalk No Charge for AWS CloudFormation Amazon EC2 AWS IAM Inbound Data Transfer Amazon RDS Auto Scaling Amazon ELB Consolidated Billing Data Transfer between Amazon S3 Instances within an Amazon EBS Availability ZoneFor All CustomersAmazon SQS/SNSAmazon DynamoDB Amazon SES Amazon SWF And more…
Jia Woei Lingjwling@amazon.com Thank You ! http://aws.amazon.com