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Innovation,
Cloud Powered
Dr. Werner Vogels
CTO, Amazon.com
Hotels Music Storage
Photos Magazines
150,000
people are hosted
on any given night
Total # AirBnB Guests
Up by over 5 million since
the beginning of the year
Total # AirBnB Guests
0"
200"
400"
600"
800"
1000"
2010" 2011" 2012" 2013"
24 48
432
1,000
Total # EC2 Instances
0"
5"
10"
15"
20"
25"
30"
35"
40"
45"
50"
284GB
4TB
23TB
50TB
Total Photos Stored in Amazon S3
Why AWS?
“We have a 5-people
operations team
AWS allows us to devote our resources
and mindshare to the core business.”
Remove Waste
Your
Business
70%
On-Premise
Infrastructure
30%
Managing All of the
“Undifferentiated Heavy Lifting”
Waste is...
AWS
Cloud-Based
Infrastructure
Your
Business
More Time to Focus on
Your Business
Configuring
Your Cloud
Assets
70%
30%70%
...
STOP
WASTING
TIME
2014: 80 new features and services since January
2008 2009 2010 2011
Amazon EBS
Amazon EC2
Amazon SNS
AWS Identity
& Acces...
56 releases
since Feb 2013
Regional expansion to US West (Oregon)
Support for temporary credentials when loading data from...
Small, autonomous teams
Roadmap ownership
Decoupled launch schedules
Get Core Functionality in the
Hands of Customers, Qui...
Amazon
DynamoDB
Amazon
Redshift
Amazon
Glacier
No hardware or virtualization software
Access through any tablet device
Monthly pricing—no long-term commitments
Pre-insta...
42 Price
Reductions
Since 2006
The AWS Price Reduction Philosophy
Ecosystem
Global Footprint
New Features
New Services
Inf...
Trade CapEx for
Variable Expense
1
Economies of Scale
Provide Lower Costs
than Companies can
do on their Own
2
Pricing Mod...
“The move could save the Navy
as much as 60% versus the cost
of hosting of managing data data
in its own data centers”
“We...
Customer Infrastructure Audits
Saves money
Improves availability
Closes security gaps
Increases performance
Recent Perform...
Infrastructure as a Service Magic Quadrant
2013
“AWS is the overwhelming market
share leader, with more than five
times th...
Forces Driving New Resource Models!
Increasing Uncertainty!
Growing Abundance!
Intensifying Competition!
Growing Power of ...
UNCERTAINTY!
Addressing Uncertainty!
Acquire resources on demand!
Release resources when no longer needed!
Pay for what you use!
Levera...
STARTUP!



An organization designed to deliver a
new product or service under
conditions of extreme uncertainty!
ENTERPRISE!


An organization designed to
deliver new products or services
under conditions of extreme
uncertainty!
If you want to increase
Innovation,
you have to lower the
cost of failure
Joi Ito
Director MIT Media Lab
REDUCE THE COST OF
EXPERIMENTATION
Telegraph Media Group
Eliminate
Capital
Lower
Operational
Costs
Stop
Guessing
Capacity
Agility
Speed
Innovation
Avoid
Undifferentiated
Heavy Lif...
Eliminate
Lower
Operational
Costs
Stop
Guessing
Capacity
Agility
Speed
Innovation
Avoid
Undifferentiated
Heavy Lifting
Go ...
Every industry.
TRANSFORMED
Financial Services
TRANSFORMED
Stringent regulatory, compliance
and security requirements.
Media & Advertising
TRANSFORMED
1950 1960 1970 1980 1990 2000 2010
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Print Only
Including Online
Mil...
Health Care & Biotechnology
TRANSFORMED
How are enterprises thinking about
and using the cloud in 2014?
70% reduction in
operational costs
#1: Development and Testing
Do more dev and
test work, faster
Sharepoint and SAP SAP
Re...
#2: New Workloads
Product prototyping
& design
Audience
management &
creative design
Hotel booking
engine
Biological
data ...
#3: Supplement Existing Workloads with the Cloud
Export operational data to
Amazon Redshift for analysis
2X faster queries...
#4: Supplement Workloads with Existing
On-premises Infrastructure
AWS serves up application
content & data
Integration bac...
#5: Migrating Existing Applications
Migrated 500 web
properties in 5 months
1,700 web properties
New product websites
in 2...
#6: Data Center Migration
From 40 data
centers, down to 6
9X increase in
AWS usage
APIs help govern
usageand control cost
...
#7: All-in — IT Entirely in the Cloud
“We have to be great at a
number of things…
operating data centers is
not one of tho...
Companies Worry that These are the Only Two Choices
Build a
“private” cloud Rip and replace
with AWS
#1 #2
#1 #2
On-Premises
Resources
Cloud
Resources
Integration
The Cloud Isn’t An ‘All Or Nothing’ Choice
Corporate
Data Centers
Active Directory
Network Configuration
Encryption
Back-up Appliances
Users & Access Rules
Your Private Network
HSM Applian...
Integration with On-Premises Resources
Integrated
networking
Integrated access
control
Integrated cloud
backups
Single pan...
AWS is the place to be to
protect your information
from unauthorized access
Private Resources to Maintain Control
Private compute Private storagePrivate network
Private key
management
Governance
Sof...
4 cloud-driven Innovation
trends for 2014
The Cloud will enable
your content to follow
you where ever you go
Cloud-based analytics
enhances the off-line world
Dropcam is the biggest inbound
video service on the Web
•  More data uploaded per
minute than YouTube
•  Petabytes of data...
The Cloud allows everyone to
become a Media company
Faster and faster, the
Cloud moves data
processing to Real-time
What was happening
yesterday?
What right now?
trades are executing
is the exception rate
is the ad click-through
topics are trending
inventory remains
q...
Sometimes the most
powerful innovation
focuses on the
Things Never Change
werner@amazon.com
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
Innovation, Cloud Powered - Dr Werner Vogels
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  • Can you post the actual presentation from the Amsterdam Summit 2014? This is close - but some of the details have changed. Also, will the video of the presentation be made available?
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Transcript of "Innovation, Cloud Powered - Dr Werner Vogels"

  1. 1. Innovation, Cloud Powered Dr. Werner Vogels CTO, Amazon.com
  2. 2. Hotels Music Storage Photos Magazines
  3. 3. 150,000 people are hosted on any given night
  4. 4. Total # AirBnB Guests
  5. 5. Up by over 5 million since the beginning of the year Total # AirBnB Guests
  6. 6. 0" 200" 400" 600" 800" 1000" 2010" 2011" 2012" 2013" 24 48 432 1,000 Total # EC2 Instances
  7. 7. 0" 5" 10" 15" 20" 25" 30" 35" 40" 45" 50" 284GB 4TB 23TB 50TB Total Photos Stored in Amazon S3
  8. 8. Why AWS?
  9. 9. “We have a 5-people operations team AWS allows us to devote our resources and mindshare to the core business.”
  10. 10. Remove Waste Your Business 70% On-Premise Infrastructure 30% Managing All of the “Undifferentiated Heavy Lifting” Waste is anything that does not lead to direct value for the customer
  11. 11. AWS Cloud-Based Infrastructure Your Business More Time to Focus on Your Business Configuring Your Cloud Assets 70% 30%70% On-Premise Infrastructure 30% Managing All of the “Undifferentiated Heavy Lifting” Remove Waste with Cloud
  12. 12. STOP WASTING TIME
  13. 13. 2014: 80 new features and services since January 2008 2009 2010 2011 Amazon EBS Amazon EC2 Amazon SNS AWS Identity & Access Management AWS Import & Export Amazon CloudWatch Amazon EMR Amazon RDS Amazon VPC Auto Scaling Elastic Load Balancing Amazon ElastiCache Amazon SES AWS CloudFormation AWS Direct Connect AWS Elastic Beanstalk GovCloud Amazon SWF Amazon Route 53 Amazon Redshift Amazon Glacier Amazon Dynamo DB Amazon CloudSearch Amazon EC2 AWS Storage Gateway Amazon CloudTrail Amazon CloudHSM Amazon WorkSpaces Amazon Kinesis Amazon Elastic Transcoder Amazon AppStream AWS OpsWorks AWS Data Pipeline 20132012 A Rapid Pace of Innovation
  14. 14. 56 releases since Feb 2013 Regional expansion to US West (Oregon) Support for temporary credentials when loading data from Amazon S3 Regional expansion to EU West (Dublin) SOC1/2/3 Compliance certification Ability to UNLOAD encrypted files in parallel to Amazon S3 Regional expansion to Asia Pacific (Tokyo) Support for JDBC fetch size to enable extraction of large data sets over JDBC/ODBC Enable logging of UNLOAD statements New built-in function to compute the SHA1 hash of a value Added support for UTF-8 characters up to 4 bytes in size Ability to share snapshots between accounts to simplify manageability. Support for statement timeouts to automatically terminate queries that exceeded allotted execution time Added support for timezone conversion in SQL Added support for datetime values expressed in milliseconds since EPOCH to simplify ingestion Simplified ingestion by automatically detecting date and time formats. Added support for automatic query timeouts to workload management queues. Enabled the use of wildcards when assigning queries to workload management queues. New built-in function to enable customers to calculate the CRC32 checksum of a value Console improvements to show progress bars for backup and restore operations. Added the ability to support IAM at the resource level allowing tight control of who can take what actions on which resources. Obtained PCI compliance Added the ability to substitute a customer chosen character for invalid UTF-8 characters to simplify ingestion Allowed customers to store JSON data in VARCHAR columns and added built-in functions to enable data extraction Added support for POSIX regex expressions when using SIMILAR to in SQL queries Added Cursor support to enable extraction of large data sets over ODBC connections Built-in function to enable splitting a string using a supplied delimiter to make parsing values easier Added system tables to enable logging of database activity for auditing Regional expansion to Asia Pacific (Singapore, Sydney) Enable customers to control cluster encryption keys by using an on premises hardware security module (HSM) or Amazon CloudHSM Enable customers to receive alerts via SNS for informational or error-related events for cluster monitoring, management, configuration and security. Integration with Canal to enable streaming data ingestion Copy from an arbitrary SSH connection enabling direct copy from Amazon EMR, HDFS, or any other database that supports SSH access and script execution Enable distributing tables to all compute nodes to speed up queries, especially those involving star or snowflake schemas Logging of database logins, failed logins, SQL execution and data loads to S3 and integration with CloudTrails for control plane events Enabled caching of database blocks to speed up access to frequently queried data Increase cluster concurrency limits from 15 to 50 to enable higher concurrent query execution Optimizations to resize code that lead to 2-4x improvement in resize performance Approximate COUNT DISTINCT using HyperLogLog giving 10-20x performance improvements with less than 1% error Enable customers to continuously, automatically and incrementally back up data to a second AWS region for DR On track to obtain Fedramp certification Deliver Redshift on SSD instances enabling a lower-cost, high performance entry point IAM Redshift Elastic Map Reduce Data Pipeline Route 53CloudFront CloudFormation Elastic Load BalancerEC2 S3 EBS DynamoDB AppStream Kinesis Rapid delivery and interation based on customer feedback
  15. 15. Small, autonomous teams Roadmap ownership Decoupled launch schedules Get Core Functionality in the Hands of Customers, Quickly Small, “Two Pizza” Teams Operational stability High scale Limited initial feature set Iterate Based on Customer Feedback
  16. 16. Amazon DynamoDB Amazon Redshift Amazon Glacier
  17. 17. No hardware or virtualization software Access through any tablet device Monthly pricing—no long-term commitments Pre-installed software or bring your own licenses Easy integration with MS Active Directory Amazon WorkSpaces
  18. 18. 42 Price Reductions Since 2006 The AWS Price Reduction Philosophy Ecosystem Global Footprint New Features New Services Infrastructure Innovation More AWS Usage More InfrastructureEconomies of Scale Lower Infrastructure Costs Reduced Prices More Customers
  19. 19. Trade CapEx for Variable Expense 1 Economies of Scale Provide Lower Costs than Companies can do on their Own 2 Pricing Model Choice to Support Variable & Stable Workloads On-demand Reserved Spot 3 Save More Money as You Grow Bigger Tiered pricing Volume discounts Custom Pricing 4 Cost Savings and Flexibility
  20. 20. “The move could save the Navy as much as 60% versus the cost of hosting of managing data data in its own data centers” “We've halved storage costs. We're looking forward to saving hundreds of millions of dollars” “Without AWS we would have needed to raise $7.1M to launch instead of $1.8M” “Migrating data centers to AWS contributes to a global savings of $100 million in infrastructure costs”
  21. 21. Customer Infrastructure Audits Saves money Improves availability Closes security gaps Increases performance Recent Performance 1,000,000 recommendations $207M in annualized savings AWS Trusted Advisor
  22. 22. Infrastructure as a Service Magic Quadrant 2013 “AWS is the overwhelming market share leader, with more than five times the compute capacity in use than the aggregate total of the other fourteen providers.”
  23. 23. Forces Driving New Resource Models! Increasing Uncertainty! Growing Abundance! Intensifying Competition! Growing Power of Customers! Decreasing Brand Loyalty! Limited access to Capital!
  24. 24. UNCERTAINTY!
  25. 25. Addressing Uncertainty! Acquire resources on demand! Release resources when no longer needed! Pay for what you use! Leverage other’s core competencies! Turn fixed cost into variable! !
  26. 26. STARTUP!
 
 An organization designed to deliver a new product or service under conditions of extreme uncertainty!
  27. 27. ENTERPRISE! 
 An organization designed to deliver new products or services under conditions of extreme uncertainty!
  28. 28. If you want to increase Innovation, you have to lower the cost of failure Joi Ito Director MIT Media Lab
  29. 29. REDUCE THE COST OF EXPERIMENTATION
  30. 30. Telegraph Media Group
  31. 31. Eliminate Capital Lower Operational Costs Stop Guessing Capacity Agility Speed Innovation Avoid Undifferentiated Heavy Lifting Go Global in Minutes ✔ ✔ ✔ ✔ ✔ ✔ The Benefits of Cloud Computing!
  32. 32. Eliminate Lower Operational Costs Stop Guessing Capacity Agility Speed Innovation Avoid Undifferentiated Heavy Lifting Go Global in Minutes ✔ ✔ ✔ ✔ ✔ ✔ “Private” Cloud X X X X X X The Benefits of Cloud Computing!
  33. 33. Every industry. TRANSFORMED
  34. 34. Financial Services TRANSFORMED
  35. 35. Stringent regulatory, compliance and security requirements.
  36. 36. Media & Advertising TRANSFORMED
  37. 37. 1950 1960 1970 1980 1990 2000 2010 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Print Only Including Online Millions of 2012 Dollars Newspaper Advertising Revenue Adjusted for Inflation, 1950 to 2012 Source: Newspaper Association of America Carpe Diem Blog
  38. 38. Health Care & Biotechnology TRANSFORMED
  39. 39. How are enterprises thinking about and using the cloud in 2014?
  40. 40. 70% reduction in operational costs #1: Development and Testing Do more dev and test work, faster Sharepoint and SAP SAP Reduced dev and test environment costs Oracle
  41. 41. #2: New Workloads Product prototyping & design Audience management & creative design Hotel booking engine Biological data research Global deals engine Video streaming SIM card credit News distribution App streaming Firmware upgrades Mobile games Mobile music discovery
  42. 42. #3: Supplement Existing Workloads with the Cloud Export operational data to Amazon Redshift for analysis 2X faster queries at 1/2 the cost Analytics Disaster recovery SSAE 16- compliant to restore all data within 2 hours Equipment leasing app Operational applications Export data to AWS for analytics processing
  43. 43. #4: Supplement Workloads with Existing On-premises Infrastructure AWS serves up application content & data Integration back to Samsung Data Centers for financial transactions Existing systems
  44. 44. #5: Migrating Existing Applications Migrated 500 web properties in 5 months 1,700 web properties New product websites in 2 days vs. 2 weeks Migrated clinical trials simulations platform Simulations in 1.2hrs vs. 60hrs 64% reduction in costs
  45. 45. #6: Data Center Migration From 40 data centers, down to 6 9X increase in AWS usage APIs help govern usageand control cost Enabling global collaboration 3,000 applications by January 2015
  46. 46. #7: All-in — IT Entirely in the Cloud “We have to be great at a number of things… operating data centers is not one of those things” “We are a hospitality management organization, not an IT services company” 2000 applications migrating to AWS in 18 months
  47. 47. Companies Worry that These are the Only Two Choices Build a “private” cloud Rip and replace with AWS #1 #2 #1 #2
  48. 48. On-Premises Resources Cloud Resources Integration The Cloud Isn’t An ‘All Or Nothing’ Choice Corporate Data Centers
  49. 49. Active Directory Network Configuration Encryption Back-up Appliances Users & Access Rules Your Private Network HSM Appliance Cloud back-ups AWS Direct Connect Your On-Premise Apps Your Cloud Apps AWS Support For Hybrid IT Architectures AWS Storage Gateway Amazon Virtual Private Cloud AWS Identity & Access Mgmt AWS Cloud HSM Corporate Data Centers
  50. 50. Integration with On-Premises Resources Integrated networking Integrated access control Integrated cloud backups Single pane of glass
  51. 51. AWS is the place to be to protect your information from unauthorized access
  52. 52. Private Resources to Maintain Control Private compute Private storagePrivate network Private key management 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 Fine-grained access control Dedicated instances Single Tenant Block Storage In-depth audits
  53. 53. 4 cloud-driven Innovation trends for 2014
  54. 54. The Cloud will enable your content to follow you where ever you go
  55. 55. Cloud-based analytics enhances the off-line world
  56. 56. Dropcam is the biggest inbound video service on the Web •  More data uploaded per minute than YouTube •  Petabytes of data processed every month •  Billions of motion events detected
  57. 57. The Cloud allows everyone to become a Media company
  58. 58. Faster and faster, the Cloud moves data processing to Real-time
  59. 59. What was happening yesterday?
  60. 60. What right now? trades are executing is the exception rate is the ad click-through topics are trending inventory remains queries are slow are the high scores
  61. 61. Sometimes the most powerful innovation focuses on the Things Never Change
  62. 62. werner@amazon.com

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