Enterprises are moving to the cloud for more than just saving costs. AWS ever-expanding platform of services delivers business value that extends to Business Agility, Operational Resilience, Increased Staff productivity and an Improved Security posture. Creating a holistic business case that encompasses all these elements is critical, and this session will show how to quantify the other business benefits that your organization can expect with the move to AWS.

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Realizing Business Value through
AWS
Peter Shi
Cloud Financial Management BDM, APAC
AWS

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Agenda
Why do organizations move to AWS?
How do organizations derive costs savings on AWS?
How can AWS help you build a business case?
Getting Started
1
2
3
4

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Customers move to AWS for multiple reasons…
Data Center
Consolidation
Acquisitions
or Divestitures
Large scale compute
intensive workloads
Facility or
Real Estate decisions
Agility/ Dev
Productivity
Cost ReductionInnovation &
Digital
Transformation
Colocation or
outsourcing contract
changes

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… their experiences helped us create a value framework
Cloud Value Framework
Cost savings (TCO)
Example
50%+ reduction in TCO (GE)
What is it?
Infrastructure cost savings/
avoidance from moving to
the cloud
Cost impact
Staff productivity
Example
Over 500 hours per year of
server configuration time
saved (Sage)
What is it?
Efficiency improvement
by function on a task-by-
task basis
Operational resilience
Example
Critical workloads run in
multiple AZs and Regions for
robust DR (Expedia)
What is it?
Benefit of improving
SLAs and reducing unplanned
outage
Business agility
Example
Launch of new products 75%
faster (Unilever)
What is it?
Deploying new features/
applications faster and
reducing errors
Value impact

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The economics of cloud is real
Lost
opportunity
Infrastructure cost $
Time
Large
capital
expenditure
Opportunit
y
cost
Predicted demand
Traditional hardware
Actual demand
AWS
Key:

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Staff productivity
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
Cloud improves efficiency… This value accelerates with AWS maturity
2x
Increase in # of VMs
managed per admin
3.2x
Increase in # of TB
managed per
admin over time
1.8x
Increase in # of TBs
managed per admin
3.3x
Increase in # of VMs
managed per admin
over time
VMs managed on-prem vs. cloud TB managed per administrator TB managed over timeVMs managed over time
On-premises In cloud On-premises In cloud 1–2 years on AWS 3+ years on AWS 1–2 years on AWS 3+ years on AWS
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
Cloud improves efficiency… This value accelerates with AWS maturity
2x
Increase in # of VMs
managed per admin
3.2x
Increase in # of TB
managed per
admin over time
1.8x
Increase in # of TBs
managed per admin
3.3x
Increase in # of VMs
managed per admin
over time
VMs managed on-prem vs. cloud TB managed per administrator TB managed over timeVMs managed over time
On-premises In cloud On-premises In cloud 1–2 years on AWS 3+ years on AWS 1–2 years on AWS 3+ years on AWS
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
Customer Benchmarking Insights

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Operational resilience
Customer Benchmarking Insights
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
43.4%
Reduction total
monthly incidents
# of total monthly incidents
Before AWS After AWS
• High infrastructure availability and durability; multi-
availability zone fail over
• Automatic configuration and resource management;
centrally manage users and credentials
• Built-in DDoS protection and Security Perimeter; 30+
compliance certifications and accreditations

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Every minute of downtime has a
material impact
on your business

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Operational resilience
Cost of Downtime and Security of Incidents
Annual Fortune
1000 application
downtime costs
(IDC)
$1.25 to
$2.5B
Average cost of a
data breach
(Ponemon
Institute)
$3.6M
Cost/hr of a
critical
application
failure (IDC)
$500K to
$1M
Average cost/hr
of downtime
(Ponemon
Institute)
$474K
Average cost per
lost or stolen
record (Ponemon
Institute)
$141

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Business agility
With AWS, you can
innovate faster while reducing failure costs

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Business agility
Simplify requirement design by leveraging built-in
operational solutions (e.g. scaling, security) and hundreds
of AWS and third party services and solutions to deliver
cloud-native products
Increase the speed build and test through with continuous
integration and delivery pipelines, and lower the cost of
experimentation spinning up and by shutting down
environments/services quickly
Reduce maintenance cost and simplify operations with
AWS providing IT infrastructure services, and AWS/3rd party
managed services options
Traditional software delivery lifecycle and
average % of time spent at each step *
22%
15%
23%
17%
12%
Requirements & Analysis
Design
Build
Integration & Test
Deploy
11%Maintain
Cloud benefits
Eliminate deployment “wait time” with automated
application development and smaller deployment batches
* Meta Group / Gartner research

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Business agility
• Shortened finance & procurement cycles
• Accelerated testing processes across
development, deployment and production
• Reduced developer time spent on environment
setup and non-coding tasks
18.8%
Accelerated time to
market
Before AWS After AWS
Time to market for new
applications in months
Customer Benchmarking Insights
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.

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Organizations have achieved
real and tangible outcomes with AWS
across all these pillars

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Case study

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Case study: Globe Telecom
Scale of usage
2,142 9,608 6.7+ PB

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Case study: Globe Telecom
Benefits Realized
30%
TCO savings
15x
increase in
app
performance
99.999%
uptime
3 months to
2 days
reduction in
provisioning
times

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There are many factors that help customers achieve
cost savings on AWS
Source: IDC Whitepaper, sponsored by Amazon, “Fostering Business and Organizational Transformation to
Generate Business Value with Amazon Web Services” February 2018
“51% lower cost
of operations”
Remove over
provisioning and pay
for what you need
69 Price
Reductions
Economies of
scale allow AWS
to continually
lower costs
Pricing model choice
to support variable &
stable workloads
Save more money
as you grow bigger
On-Demand
Reserved
Spot
Tiered Pricing
Volume
Discounts
Programs
1 2 3 4

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What does that mean for you?

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100%
180%
70-80% 50-60%
40-50%
On-Premises Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3 year
RIs)
How does that impact your business case?

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100%
180%
70-80% 50-60%
40-50%
On-Premises Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3 year
RIs)
How does that impact your business case?

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100%
180%
70-80% 50-60%
40-50%
On-Premises Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3 year
RIs)
How does that impact your business case?

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How does that impact your business case?
100%
180%
70-80% 50-60%
40-50%
On-Premises Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3 year
RIs)

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Analysis approach
Action items • Define
analysis scope
• Identify
stakeholders
• Align on key
value drivers
and timeline
• Data request sheet
• Scope and
stakeholders
identified
• Customer receives
quantitative Data
Request form
• Stakeholder
discovery sessions
• Customer provides
data back to AWS
• Data request sheet
and interviews
completed
• Build first pass
financial model
• Clarification
of customer
information
and data
• Customer feedback
and comments
(refinement)
• Financial model
• Draft business case
• Final business case
presentation
• Business case
presentation
Output
First call Data gathering Analysis
Executive
presentation
Refinement

27. TSO Logic quickly delivers an optimized business case
for AWS
It enables business and IT leaders to:
Determine the most cost-effective path to cloud
Maximize Microsoft licenses for even bigger savings

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Migration customer journey
MIGRATION READINESS
ASSESSMENT
MIGRATION READINESS &
PLANNING (MRP)
MIGRATIONS &
OPERATIONS
Migration Readiness
Assessment
TCO AnalysisRapid Discovery
Readiness Briefings &
Workshops
Security &
Compliance
Landing
Zone
Skills / CoE
Operating
Model
Discovery
& Planning
Migrations &
Expertise
Business
Case
Migration
Plan
MRP Timing: 2 - 6 Months, Partner, and/or
ProServe consulting project
Migrate
Operate
Optimize

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Migration customer journey
MIGRATION READINESS
ASSESSMENT
MIGRATION READINESS &
PLANNING (MRP)
MIGRATIONS &
OPERATIONS
Migration Readiness
Assessment
TCO AnalysisRapid Discovery
Readiness Briefings &
Workshops
MRP Timing: 2 - 6 Months, Partner, and/or
ProServe consulting project

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We have a dedicated Business Value team and we are
here to help
If you need help understanding or justifying the
business case to migrate to AWS, reach out to your
account manager or me.

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Resources to get you started
AWS TCO Calculator
https://awstcocalculator.com
AWS Economics Center
aws.amazon.com/economics/
Case Studies and Research
aws.amazon.com/solutions/case-studies
Value Realization Studies
Available Now

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Data Discovery is often the bottleneck – start now!
AWS has tooling, resources and experience to help you – ask us
for support when you need it
Evaluate a business case across the value pillars – Cost Savings,
Staff productivity, Operational Resilience and Business Agility
You have multiple levers available to optimize your costs on AWS
In conclusion…

34. Thank you!
S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Peter Shi
PeterShi@amazon.com