Startups on AWS:Getting to ProfitabilityPieter KempsBusiness Development, Startups & Venture CapitalAmazon Web Services@p_...
TimeUsagePage ViewsRevenueEtc.The Infamous Hockey Stick
TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
You want only 3 things
Revenue to go UpUnit Costs to go DownMargin to go Up
TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
How does AWS help here?
Economies of ScalePricing ModelsCost Aware Architecting
Some AWS concepts…Pay as you goPay less per unit when you use morePay even less when you reserve• Reserved pricingPay even...
What does this look like inthe real world?
An exampleEnterprise software provider in APACFocused on SaaS for storage, security, collaboration, etc.Backed by leading ...
MarginGrowth-10%price dropin S3-20%RI purchase-22%MigrationCassandrato Dynamo-18%Price drop inS3 of 25%54%reduction inunit...
Getting to ProfitabilitybyRunning Lean on AWS
RECAP
01 02 03 04Idea MVP ProfitabilityScale
Build Apps, Not Infrastructure to do more with less01 02Idea MVP
Your application & Your businessInnovation, not undifferentiated heavy liftingSpending developer time in the right place(D...
Build Apps, Not Infrastructure to do more with lessDevelop Lean, Test Heavy to develop a killer MVP01 02Idea MVP
Build Apps, Not Infrastructure to do more with lessDevelop Lean, Test Heavy to develop a killer MVPFail Forward, Fail Fast...
Getting to MVP for $250TimeScaleTotal Spend to MVP$250$235$15$0• 3 months dev/test/release• Serving Beta customers• Ready ...
01 02Idea MVPwww.slideshare.net/AmazonWebServices/getting-to-mvp-on-aws
02 03MVP Scale
Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon Ap...
Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon Ap...
Go global in minutes to reach a global audienceFast & Easy customer acquisition leveraging AWS regions & CDNApplication
Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon Ap...
Dev / Test Environment
Alpha Release
Beta Release / MVP
Production 1.0Architecture
Production 1.2Architecture
Production 1.3Architecture
Production 1.4Architecture
Production 1.4 ArchitectureBest Practice Scalable ArchitectureWell-designed, 2 Tier architectureHighly Available due to Mu...
02 03MVP Scalewww.slideshare.net/AmazonWebServices/getting-to-scale-on-aws
03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
Economies of Scale truly matter…
Every Day…AWS adds the equivalent server capacityto power Amazon when it was a global,$5.2B enterprise in 20032003$5.2B re...
Economies of ScaleLower variable expense than companies can achieve themselvesReducedPricesMoreCustomersMore AWSUsageMoreI...
03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
On-DemandPay for computecapacity by the hourwith no long-termcommitmentsFor spiky workloads,or to define needsCost Optimiz...
aws.amazon.com/free
aws.amazon.com/free
aws.amazon.com/free
On Demand PricingPay less when you use more
01020304050600 12 24 36DatainTBMonthsActual StorageSavings on Storage
01020304050600 12 24 36DatainTBMonthsActual Storage ProvisionedSavings on Storage
01020304050600 12 24 36DatainTBMonthsActual Storage ProvisionedSavings on StorageUnderutilized= WASTEAWS =NO WASTE
Reserved Instance PricingMake a low, one-time payment and receive asignificant discount on the hourly chargeFor committed ...
Reserved Instance PricingUtilization RI option Savings over On-Demand<10% On-Demand10% - 40% Light Utilization RI Up to 56...
$-$2,000$4,000$6,000$8,000$10,000$12,000$14,0000% 20% 40% 60% 80% 100%CostUtilizationHeavy UtilizationMedium UtilizationLi...
S3 Storage Volume
EC2 Instance Hours
February 201348.7 million users globallyRaised $200M (Total = $338M)$2.5B valuation
Web ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
Python Web Application Servers150 High-CPU EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb Ser...
Python Internal Web Services35 High-CPU EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb Servic...
Memcache and Redis Caches90 High-Memory EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb Servic...
MySQL Database Servers70 Master/Slave Pairs on EC2Web ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesF...
Amazon S3 File Storage8 Billion Objects • 410 TerabytesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb Serv...
Auxiliary Services60 EC2 InstancesDevelopmentLoggingOperational ToolsAsynchronousTask WorkersSearchData AnalysisElastic Ma...
• Most traffic happens in the afternoons and evenings, so they reduce the number ofinstances at night by 40%.• At peak tra...
Save more money by using Spot InstancesUp to 85% savings over On Demand pricingSpot market for under-utilized capacityRequ...
Use Case Types of ApplicationsBatch Processing Generic background processing (scale out computing)Hadoop Hadoop/MapReduce ...
Optimizing Video Transcoding Workloadsfor a FREEMIUM modelFree OfferingOptimize for reducing costAcceptable Delay LimitsIm...
03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
“Give me 4 fault tolerant algorithms and I can pickthe best one almost with my eyes closed.If you then ask me which one is...
Cost optimization through ‘Cost Aware Architecting’…by leveraging:Reduce Cost of…Compute1. S3 & CloudFront for Caching & O...
1. S3 & CloudFront for Caching & Offloading• Reduce your compute demand and costs• Improve end-user experience• Increase r...
1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless...
2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless...
2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless...
Buuuk for Singapore Press Holding (SPH)
3. Auto-Scaling done Right with Real Time reaction response• Elastic Load Balancing and (event-driven) Auto Scaling• Notif...
3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2Straits TimesBuuuk
3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
4. Storing derivative objects in S3 ‘Reduced Redundancy’• Original vs. derived assets : 33% savings• Single reference and ...
5. Read Replicas and/or ElastiCache (‘Database Smarts’)• Scale out and share work• Optimal performance, minimize load• Enh...
6. A/B Testing for rapid proto-typing & innovation• Inexpensive idea validation• Seamless switch over and versioning• Rapi...
Analytics: A/B test of different characters
Pricing A/B test Magic Wands
03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
When calculating TCO…#1 Start by understanding your use cases & usage patterns
On and Off Fast GrowthVariable peaks Predictable peaksUsage Patterns
Traditional HW / HostingOn and Off Fast GrowthPredictable peaksVariable peaksWASTECUSTOMER DISSATISFACTION
AWS = Elastic CapacityFast GrowthOn and OffPredictable peaksVariable peaks
When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed cos...
When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed cos...
0102030405060HostingTraditional Hosting vs AWS# of(virtual)serversOffloadto S3Cachingwith CFAuto-ScalingEtc.Hosting
When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed cos...
MarginGrowth-10%price dropin S3-20%RI purchase-22%MigrationCassandrato Dynamo-18%Price drop inS3 of 25%54%reduction inunit...
When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed cos...
New CustomersAmazon EC2Amazon RDSAmazon ELBAmazon S3Amazon EBSFor All CustomersAmazon SQS/SNSAmazon DynamoDBAmazon SESAmaz...
These Asian startups … are getting the same… as these companies:DURABILITYSECURITYSCALABILITYRELIABILITYAFFORDABILITY
These Asian startups benefit from AWS… just like these companies:E-COMMERCECONSUMER APPSGAMINGENTERPRISE / SaaSMEDIA
03 04ProfitabilityScaleWhat’s Next?This Webinar
Visit aws.amazon.com/startupsSign up for the AWS Summit:Mumbai June 25Delhi June 27Bangalore July 5Singapore July 17 (AWS ...
Questions?Pieter KempsBusiness Development, Startups & Venture CapitalAmazon Web Service@p_kemps
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Achieving Profitability on AWS
Upcoming SlideShare
Loading in...5
×

Achieving Profitability on AWS

1,945

Published on

Getting from scale to profitability, the question is: How to run lean and continue to grow revenue? How to get to profitability? This webinar, the last installment of a four-part webinar series for start-ups, will focus on how to run lean.

Published in: Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,945
On Slideshare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Transcript of "Achieving Profitability on AWS"

  1. 1. Startups on AWS:Getting to ProfitabilityPieter KempsBusiness Development, Startups & Venture CapitalAmazon Web Services@p_kemps
  2. 2. TimeUsagePage ViewsRevenueEtc.The Infamous Hockey Stick
  3. 3. TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
  4. 4. TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
  5. 5. You want only 3 things
  6. 6. Revenue to go UpUnit Costs to go DownMargin to go Up
  7. 7. TimeUsagePage ViewsRevenueEtc.The Infamous Hockey StickCosts
  8. 8. How does AWS help here?
  9. 9. Economies of ScalePricing ModelsCost Aware Architecting
  10. 10. Some AWS concepts…Pay as you goPay less per unit when you use morePay even less when you reserve• Reserved pricingPay even less when you architect for cost optimization• Smart architecting and leveraging AWS managed servicesPay even less as AWS grows• AWS economies of scale result in continuous price reductions
  11. 11. What does this look like inthe real world?
  12. 12. An exampleEnterprise software provider in APACFocused on SaaS for storage, security, collaboration, etc.Backed by leading VC’s in the regionStrong growth – winning customers globallyFocused on profitability & reducing unit costsWorked closely with the AWS team to optimize its architecture
  13. 13. MarginGrowth-10%price dropin S3-20%RI purchase-22%MigrationCassandrato Dynamo-18%Price drop inS3 of 25%54%reduction inunit costs“Based on a True Story”
  14. 14. Getting to ProfitabilitybyRunning Lean on AWS
  15. 15. RECAP
  16. 16. 01 02 03 04Idea MVP ProfitabilityScale
  17. 17. Build Apps, Not Infrastructure to do more with less01 02Idea MVP
  18. 18. Your application & Your businessInnovation, not undifferentiated heavy liftingSpending developer time in the right place(Deep insight alert: Developer Time = Money)AutomationBeanstalk – Developer sandboxes with production ready infrastructureOpsWorks – Control with Chef customizationCloudFormation – Comprehensive control of all aspects of infrastructure= Focus
  19. 19. Build Apps, Not Infrastructure to do more with lessDevelop Lean, Test Heavy to develop a killer MVP01 02Idea MVP
  20. 20. Build Apps, Not Infrastructure to do more with lessDevelop Lean, Test Heavy to develop a killer MVPFail Forward, Fail Faster by lowering the cost of innovation01 02Idea MVP
  21. 21. Getting to MVP for $250TimeScaleTotal Spend to MVP$250$235$15$0• 3 months dev/test/release• Serving Beta customers• Ready for full productionand scaleLow Cost of Iteration Means more Innovation
  22. 22. 01 02Idea MVPwww.slideshare.net/AmazonWebServices/getting-to-mvp-on-aws
  23. 23. 02 03MVP Scale
  24. 24. Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon AppStore for Mobile Apps02 03MVP Scale
  25. 25. Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon AppStore for Mobile AppsScale your Reachreach customers globally in minutes leveraging AWS’ global infrastructure,incl. regions, availability zones, and Content Delivery Network02 03MVP Scale
  26. 26. Go global in minutes to reach a global audienceFast & Easy customer acquisition leveraging AWS regions & CDNApplication
  27. 27. Scale up Demandleverage Amazon in your Go to Market strategy with the AWS PartnerNetwork (APN), Marketplace, and Amazon AppStore for Mobile AppsScale your Reachreach customers globally in minutes leveraging AWS’ global infrastructure,incl. regions, availability zones, and Content Delivery NetworkScale your Architectureuse a range of AWS services to build scalable architectures that serve yourfirst 10 million users02 03MVP Scale
  28. 28. Dev / Test Environment
  29. 29. Alpha Release
  30. 30. Beta Release / MVP
  31. 31. Production 1.0Architecture
  32. 32. Production 1.2Architecture
  33. 33. Production 1.3Architecture
  34. 34. Production 1.4Architecture
  35. 35. Production 1.4 ArchitectureBest Practice Scalable ArchitectureWell-designed, 2 Tier architectureHighly Available due to Multiple Availability ZoneLoad Balancing & Auto-Scaling for full scalabilityStatic content stored in durable, consistent wayImproved end-user experience through CDNOptimal Database set up with ElastiCache or DynamoDBBig Data analytics built in for continuous optimizationCapable of serving 10M+ users
  36. 36. 02 03MVP Scalewww.slideshare.net/AmazonWebServices/getting-to-scale-on-aws
  37. 37. 03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
  38. 38. 03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
  39. 39. Economies of Scale truly matter…
  40. 40. Every Day…AWS adds the equivalent server capacityto power Amazon when it was a global,$5.2B enterprise in 20032003$5.2B retail business7,800 employeesA whole lot of servers…
  41. 41. Economies of ScaleLower variable expense than companies can achieve themselvesReducedPricesMoreCustomersMore AWSUsageMoreInfrastructureEconomies ofScaleLower Cost
  42. 42. 03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
  43. 43. On-DemandPay for computecapacity by the hourwith no long-termcommitmentsFor spiky workloads,or to define needsCost Optimization using different purchase modelsReservedMake a low, one-timepayment and receive asignificant discount onthe hourly chargeFor committedutilizationSpotBid for unused capacity,charged at a Spot Pricewhich fluctuates basedon supply and demandFor time-insensitive ortransient workloadsFree TierGet Started on AWSwith free usage & nocommitmentFor POCs andgetting started
  44. 44. aws.amazon.com/free
  45. 45. aws.amazon.com/free
  46. 46. aws.amazon.com/free
  47. 47. On Demand PricingPay less when you use more
  48. 48. 01020304050600 12 24 36DatainTBMonthsActual StorageSavings on Storage
  49. 49. 01020304050600 12 24 36DatainTBMonthsActual Storage ProvisionedSavings on Storage
  50. 50. 01020304050600 12 24 36DatainTBMonthsActual Storage ProvisionedSavings on StorageUnderutilized= WASTEAWS =NO WASTE
  51. 51. Reserved Instance PricingMake a low, one-time payment and receive asignificant discount on the hourly chargeFor committed utilization•Light Utilization RI•Medium Utilization RI•High Utilization RI•1-year•3-year2 Terms3 Versions
  52. 52. Reserved Instance PricingUtilization RI option Savings over On-Demand<10% On-Demand10% - 40% Light Utilization RI Up to 56%40% - 75% Medium Utilization RI Up to 66%>75% Heavy Utilization RI Up to 71%
  53. 53. $-$2,000$4,000$6,000$8,000$10,000$12,000$14,0000% 20% 40% 60% 80% 100%CostUtilizationHeavy UtilizationMedium UtilizationLight UtilizationOn-DemandReserved Instance Pricing
  54. 54. S3 Storage Volume
  55. 55. EC2 Instance Hours
  56. 56. February 201348.7 million users globallyRaised $200M (Total = $338M)$2.5B valuation
  57. 57. Web ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  58. 58. Python Web Application Servers150 High-CPU EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  59. 59. Python Internal Web Services35 High-CPU EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  60. 60. Memcache and Redis Caches90 High-Memory EC2 InstancesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  61. 61. MySQL Database Servers70 Master/Slave Pairs on EC2Web ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  62. 62. Amazon S3 File Storage8 Billion Objects • 410 TerabytesWeb ApplicationServersSharded DatabaseCache ServersInternalWeb ServicesFile Storage
  63. 63. Auxiliary Services60 EC2 InstancesDevelopmentLoggingOperational ToolsAsynchronousTask WorkersSearchData AnalysisElastic MapReduceData Analysis
  64. 64. • Most traffic happens in the afternoons and evenings, so they reduce the number ofinstances at night by 40%.• At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is aslittle as $15 an hour. Saving per hour = 71%
  65. 65. Save more money by using Spot InstancesUp to 85% savings over On Demand pricingSpot market for under-utilized capacityRequested Bid Price andPay as you goSpot Price < On-Demand Price
  66. 66. Use 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 ImageProcessing/RenderingTransform videos into specific formatsTesting 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 gamesUse Cases for Spot Pricing
  67. 67. Optimizing Video Transcoding Workloadsfor a FREEMIUM modelFree OfferingOptimize for reducing costAcceptable Delay LimitsImplementation– Leverage spot pricing– Maximum Bid Price– < On-demand Rate– Use on-demand Instances, if delayGet strongly reduced price for yourworkloadPremium OfferingOptimized for Faster responseNo DelaysImplementation– Invest in Reserved Instances– Use on-demand for ElasticityGet Instant Capacity for higher price
  68. 68. 03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
  69. 69. “Give me 4 fault tolerant algorithms and I can pickthe best one almost with my eyes closed.If you then ask me which one is best for thebusiness, in terms of dollar costs, I would beclueless...”Werner Vogels, CTO, Amazon
  70. 70. Cost optimization through ‘Cost Aware Architecting’…by leveraging:Reduce Cost of…Compute1. S3 & CloudFront for Caching & Offloading2. Load Balancing from the startStorage 4. Storing derivative objects in S3 ‘Reduced Redundancy’Data Base 5. Read Replicas and/or ElastiCacheTest & Dev 6. A/B Testing for rapid proto-typing3. Auto-Scaling done Right
  71. 71. 1. S3 & CloudFront for Caching & Offloading• Reduce your compute demand and costs• Improve end-user experience• Increase reliability and durabilityCost Aware Architecting to Reduce costs of EC2
  72. 72. 1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
  73. 73. 1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
  74. 74. 1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
  75. 75. 1. S3 & CloudFront for Caching & OffloadingCost Aware Architecting to Reduce costs of EC2
  76. 76. 2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless and redundant arrayCost Aware Architecting to Reduce costs of EC2
  77. 77. 2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless and redundant arrayCost Aware Architecting to Reduce costs of EC2
  78. 78. 2. Load Balancing from the start• Ready for massive scale, high reliability• Uninterrupted growth and evolution• Stateless and redundant arrayCost Aware Architecting to Reduce costs of EC2
  79. 79. Buuuk for Singapore Press Holding (SPH)
  80. 80. 3. Auto-Scaling done Right with Real Time reaction response• Elastic Load Balancing and (event-driven) Auto Scaling• Notification of pending news flash (with audible alarm)• On-demand ramp up of capacity (6 mins.)• Subscriber alert push delivered• Mass response traffic handled (followed by ramp down)Cost Aware Architecting to Reduce costs of EC2
  81. 81. 3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2Straits TimesBuuuk
  82. 82. 3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
  83. 83. 3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
  84. 84. 3. Auto-Scaling done Right with Real Time reaction responseCost Aware Architecting to Reduce costs of EC2
  85. 85. 4. Storing derivative objects in S3 ‘Reduced Redundancy’• Original vs. derived assets : 33% savings• Single reference and consistency• Control, accurate logs and trackingCost Aware Architecting to Reduce costs of S3Reduced Redundancy Storage‘RRS’
  86. 86. 5. Read Replicas and/or ElastiCache (‘Database Smarts’)• Scale out and share work• Optimal performance, minimize load• Enhance reliability, ensure data safety• Cost reductionCost Aware Architecting to Reduce costs of DB
  87. 87. 6. A/B Testing for rapid proto-typing & innovation• Inexpensive idea validation• Seamless switch over and versioning• Rapid dev / test agilityCost Aware Architecting to Reduce costs of Test/Dev
  88. 88. Analytics: A/B test of different characters
  89. 89. Pricing A/B test Magic Wands
  90. 90. 03 04ProfitabilityScaleEconomies of ScaleAWS Pricing ModelsCost Aware ArchitectingA look at TCOThis Webinar
  91. 91. When calculating TCO…#1 Start by understanding your use cases & usage patterns
  92. 92. On and Off Fast GrowthVariable peaks Predictable peaksUsage Patterns
  93. 93. Traditional HW / HostingOn and Off Fast GrowthPredictable peaksVariable peaksWASTECUSTOMER DISSATISFACTION
  94. 94. AWS = Elastic CapacityFast GrowthOn and OffPredictable peaksVariable peaks
  95. 95. When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed costs into consideration
  96. 96. When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed costs into consideration#3 Leverage ‘Cost Aware Architecting’ to reduce resources
  97. 97. 0102030405060HostingTraditional Hosting vs AWS# of(virtual)serversOffloadto S3Cachingwith CFAuto-ScalingEtc.Hosting
  98. 98. When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed costs into consideration#3 Leverage ‘Cost Aware Architecting’ to reduce resources#4 Include pricing models (RI, Spot) and economies of scale
  99. 99. MarginGrowth-10%price dropin S3-20%RI purchase-22%MigrationCassandrato Dynamo-18%Price drop inS3 of 25%54%reduction inunit costs“Based on a True Story”
  100. 100. When calculating TCO…#1 Start by understanding your use cases & usage patterns#2 Apples to Apples – Take all the fixed costs into consideration#3 Leverage ‘Cost Aware Architecting’ to reduce resources#4 Include pricing models (RI, Spot) and economies of scale#5 Take a look at what’s included: Intangible Cost Savings !
  101. 101. New CustomersAmazon EC2Amazon RDSAmazon ELBAmazon S3Amazon EBSFor All CustomersAmazon SQS/SNSAmazon DynamoDBAmazon SESAmazon SWFAnd more…AWS Elastic BeanstalkAWS CloudFormationAWS IAMAuto ScalingConsolidated BillingNo Charge forInbound Data TransferData Transfer betweenInstances within anAvailability ZoneFree Usage TierDid you know?Free Services Data Transfer
  102. 102. These Asian startups … are getting the same… as these companies:DURABILITYSECURITYSCALABILITYRELIABILITYAFFORDABILITY
  103. 103. These Asian startups benefit from AWS… just like these companies:E-COMMERCECONSUMER APPSGAMINGENTERPRISE / SaaSMEDIA
  104. 104. 03 04ProfitabilityScaleWhat’s Next?This Webinar
  105. 105. Visit aws.amazon.com/startupsSign up for the AWS Summit:Mumbai June 25Delhi June 27Bangalore July 5Singapore July 17 (AWS Cloud Kata for Startups)Singapore July 18 (Summit)Sign up here: aws.amazon.com/aws-summit-2013/Fill up your feedback form
  106. 106. Questions?Pieter KempsBusiness Development, Startups & Venture CapitalAmazon Web Service@p_kemps

×