Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Building the Business Case for Migrating to AWS - AWS Summit Sydney

81 views

Published on

While cloud has become the new normal for organisations of all sizes, many IT executives and budget owners continue to struggle to articulate the business value of moving to the cloud in terms that resonate with the board and c-suite. In this session, we will walk through the impact of cloud computing on the overall IT cost base. We will also cover what the typical non-cost benefits are, and how they can be measured and communicated. Finally, we will provide an overview of the tools and support to help you on the journey.

  • Be the first to comment

  • Be the first to like this

Building the Business Case for Migrating to AWS - AWS Summit Sydney

  1. 1. S U M M I T SYDNEY
  2. 2. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Building the business case for migrating to AWS Sudith Devan ANZ Business Value Lead Amazon Web Services
  3. 3. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T baseline
  4. 4. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T 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 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 Data Center Consolidation Acquisitions or Divestitures Large scale compute intensive workloads Facility or Real Estate decisions Agility/Dev Productivity Innovation & Digital Transformation o Data Center Consolidation Large scale compute intensive workloads Facility or Real Estate decisions Cost ReductionInnovation & Digital Transformation Colocation or outsourcing contract changes Data Center Consolidation Acquisitions or Divestitures Large scale compute intensive workloads Facility or Real Estate decisions Agility/Dev Productivity CInnovation & Digital Transformation outs 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
  5. 5. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Their experiences helped us create a value framework Cloud value framework Cost savings (TCO) Cost impact Business agility Business value impact Staff productivity Operational resilience
  6. 6. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T The economics of cloud are real Infrastructure cost $ Time Large capital expenditure Opportunity cost Predicted demand Traditional hardware Actual demand AWS Key: Lost opportunity
  7. 7. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T There are many factors that help customers achieve cost savings on AWS Source: IDC Whitepaper, sponsored by Amazon, “Fostering Business and Organisational Transformation to Generate Business Value with Amazon Web Services” February 2018 Pricing model choice to support variable & stable workloads On-Demand Reserved Spot 1 Save more money as you grow bigger Tiered pricing Volume discounts Programs 4 72 Price Reductions Economies of scale allow AWS to continually lower costs 3 “51% lower cost of operations” Remove over provisioning and pay for what you need 2
  8. 8. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T There are many factors that help customers achieve cost savings on AWS Source: IDC Whitepaper, sponsored by Amazon, “Fostering Business and Organisational Transformation to Generate Business Value with Amazon Web Services” February 2018 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 4 72 Price Reductions Economies of scale allow AWS to continually lower costs 3 “51% lower cost of operations” Remove over provisioning and pay for what you need 2
  9. 9. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Lever 1: Lever 2: Lever 3: Pick the right pricing model Right size your resources Introduce elasticity What does that mean for you?
  10. 10. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Lever 2: Lever 3: “Right-size” your resources Introduce elasticity What does that mean for you? Example
  11. 11. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Lever 3: Introduce elasticity What does that mean for you?
  12. 12. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T How does that impact your business case? 100% 40-50% 30-40% 20-30% 1 2 3 4
  13. 13. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T How does that impact your business case? 100% 40-50% 30-40% 20-30% 1 2 3 4
  14. 14. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T 100% 40-50% 30-40% 20-30% 1 2 3 4 How does that impact your business case?
  15. 15. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T How does that impact your business case? 100% 40-50% 30-40% 20-30% 1 2 3 4
  16. 16. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T 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. Customer benchmarking insights
  17. 17. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Staff productivity example: server administrator Server Budgeting & Planning Server purchasing process Long term capacity planning 90% 75% 75%
  18. 18. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Software changes Server purchasing process Hardware repair in occasion of failure 50% 75% 100% Staff productivity example: server administrator
  19. 19. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Staff productivity example: server administrator Software changes Hardware purchasing Hardware repair in occasion of failure 50% 75% 100%
  20. 20. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Software changes Hardware purchasing Hardware failure 50% 75% 100% Staff productivity example: server administrator
  21. 21. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Operational resilience Customer benchmarking insights Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018. # of total monthly incidents 43.4% Reduction total monthly incidents Before AWS After AWS
  22. 22. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Every minute of downtime has a material impact on your business
  23. 23. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T 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
  24. 24. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Business agility With AWS, you can innovate faster while reducing failure costs
  25. 25. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Business agility AWS benefits Traditionalsoftware delivery lifecycle and average % of time spent at each step * * Meta Group / Gartner research Simplify requirement design Increase the speed Eliminate deployment “wait time” 15%Design 23%Build 17%Integration & Test 22%Requirements & Analysis 12%Deploy 11%Maintain Reduce maintenance cost
  26. 26. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Organisations have achieved real and tangible outcomes with AWS across all these pillars
  27. 27. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Case study
  28. 28. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Case study: Globe Telecom Scale of usage 2,600+ 7.5+ PB
  29. 29. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Case study: Globe Telecom Benefits Realised 30% TCO savings 15x increase in app performance 99.99% uptime 3 months to 2 days reduction in provisioning times
  30. 30. S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
  31. 31. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Analysis approach First call Data gathering Executive presentation Analysis Refinement
  32. 32. S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
  33. 33. TSO Logic quickly delivers an optimised business case for AWS It enables business and IT leaders to: Determine the most cost-effective path to cloud Maximise Microsoft licenses for even bigger savings
  34. 34. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T
  35. 35. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T 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 Realisation Studies Available now
  36. 36. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T Key learnings • The AWS business case is your baseline • Cloud is a commercial transition: move from “pay for what you have” to “pay for what you need” • There’s more to the business case than cost savings
  37. 37. Thank you! S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved. Sudith Devan

×