Supporting Spreadsheet How to replace your datacenter with Amazon Web Services
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  • 1. Year 1 - Q1 Year 1 - Q2 Year 1 - Q3 Year 1 - Q4 Total Y1 Year 2 - Q1 Own servers and colo Servers # 250 250 250 250 1000 0 cost/server $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 Server cost $ 625,000 $ 625,000 $ 625,000 $ 625,000 $ 2,500,000 $ - Network Gear $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 500,000 Colo costs $ 21,000 $ 39,000 $ 57,000 $ 75,000 $ 192,000 $ 75,000 Admin $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 150,000 $ 50,000 Total Cost $ 796,000 $ 814,000 $ 857,000 $ 875,000 $ 3,342,000 $ 125,000 Use AWS Instances 125 250 375 500 500 Server Hours 2190 2190 2190 2190 2190 Admin $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 100,000 $ 25,000 Price 0.45 0.45 0.45 0.45 0.4 Total AWS Cost $ 148,188 $ 271,375 $ 394,563 $ 517,750 $ 1,331,875 $ 463,000 AWS vs Colo $ $ (2,010,125) AWS vs Colo % -60.1 Notes: This example does not include storage, data transfer or network gear costs. 1) Assumes use of reserverd AWS images 2) Assumes AWS elastic load balancing to lower required # of servers 3) Assumes Admin costs for colo are 2X due to AWS automation 4) Assumes avg colo server utilization of 25% 5) Assumes cost of AWS instances drop 10% Y over Y
  • 2. Year 2 - Q2 Year 2 - Q3 Year 2 - Q4 Total Y2 Year 3 - Q1 Year 3 - Q2 year 3 - Q3 Year 3 - Q4 0 0 0 0 0 0 0 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ - $ - $ - $ - $ - $ - $ - $ - $ 75,000 $ 75,000 $ 75,000 $ 300,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 50,000 $ 50,000 $ 50,000 $ 200,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 125,000 $ 125,000 $ 125,000 $ 500,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 500 500 500 500 500 500 500 2190 2190 2190 2190 2190 2190 2190 $ 25,000 $ 25,000 $ 25,000 $ 100,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 0.4 0.4 0.4 0.35 0.35 0.35 0.35 $ 463,000 $ 463,000 $ 463,000 $ 1,852,000 $ 408,250 $ 408,250 $ 408,250 $ 408,250 AWS vs Colo $ $ 1,352,000 AWS vs Colo $ AWS vs Colo % 270.4 AWS vs Colo %
  • 3. Total Y3 Year 4 - Q1 Year 4 - Q2 Year 4 - Q3 Year 4 - Q4 Total Y4 250 250 250 250 1000 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ - $ 625,000 $ 625,000 $ 625,000 $ 625,000 $ 2,500,000 $ 125,000 $ 125,000 $ 125,000 $ 125,000 $ 500,000 $ 300,000 $ 21,000 $ 39,000 $ 57,000 $ 75,000 $ 192,000 $ 200,000 $ 25,000 $ 25,000 $ 50,000 $ 50,000 $ 150,000 $ 500,000 $ 796,000 $ 814,000 $ 857,000 $ 875,000 $ 3,342,000 500 500 500 500 2190 2190 2190 2190 $ 100,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 100,000 0.3 0.3 0.3 0.3 $ 1,633,000 $ 353,500 $ 353,500 $ 353,500 $ 353,500 $ 1,414,000 AWS vs Colo $ $ 1,133,000 AWS vs Colo $ $ (1,928,000) AWS vs Colo % 226.6 AWS vs Colo % -57.7
  • 4. Totals after $ years of operation $ 5,000,000 $ 1,000,000 $ 984,000 $ 700,000 $ 7,684,000 $ - $ - $ - $ - $ - $ 400,000 $ - $ 6,230,875 $ (1,453,125) -18.9