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Building transformational business value through broad organizational engagement in the adoption of AWS
- 1. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Mario Thomas, Global Advisory
Building transformational business value
through broad organizational engagement
in the adoption of AWS
The Hague, 31 May 2018
- 2. The following applies to this document and all other documents, information, data, and responses (written or verbal) provided
by Amazon Web Services, Inc. or any of its affiliates (collectively, "AWS") in connection with responding to this request and
other related requests (collectively, this "Response"): This Response is expressly (a) informational only and provided solely for
discussion purposes, (b) non-binding and not an offer to contract that can be accepted by any party, (c) provided "as is" with
no representations or warranties whatsoever, and (d) based on AWS's current knowledge and may change at any time due to a
variety of factors such as changes to your requirements or changes to AWS's service offerings. All obligations must be set
forth in a separate, definitive written agreement between the parties. Neither party will have any liability for any failure or
refusal to enter into a definitive agreement. All use of AWS's service offerings will be governed by the AWS Customer
Agreement available at http://aws.amazon.com/agreement/ (or other definitive written agreement between the parties
governing the use of AWS's service offerings) (as applicable, the "Agreement"). If the parties have an applicable Nondisclosure
Agreement ("NDA"), then the NDA will apply to all Confidential Information (as defined in the NDA) disclosed in connection
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be based on actual usage of AWS services, which may vary from the estimates provided. Nothing in this Response will modify
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written consent.
Disclaimers
© 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
- 3. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Organisations are embracing the cloud faster than ever
before, but limiting cloud adoption to just addressing
technical debt, IT and digital transformation is a missed
opportunity.
Broad adoption of the cloud across an organisation can lead
to improved productivity, reduced risk and the ability to
innovate at startup speed.
Today, I will share with you some of the tools we use in the
Professional Services Advisory practice each day to build
transformational business value through broad
organisational engagement in the adoption of AWS.
- 4. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• AWS customers and the stages of adoption
• Cloud adoption challenges
• Addressing the challenges
• The Cloud Adoption Framework (CAF)
• Advisory tools
• CAF envisioning
• CAF alignment
• Cloud Journey Simulation
• Business Case
• Business value and the business case
• Wrap up
What we’ll cover in this session
- 5. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
CLOUD TEAM
AWS CLOUD ADOPTION FRAMEWORK
PROJECT
FOUNDATION
MIGRATION
REINVENTION
INNOVATION RETIRE TECH
DEBT
VALUE
TIME
DISCOVERY
- 6. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Goals and business outcomes
MA&D Strategic re-alignment
Meet compliance standards
Improve service availability
Global expansion
Improve security
Increase IT resources
Reduce technical debt
Out-pace disruptors
Grow the business
Increase innovation
Reduce capex and opex
Improve productivity
Cost avoidance
Business agility
Increase resilience
Enter new markets Re-alignment of the role of IT
- 7. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Cloud adoption challenges
Little or no executive
sponsorship
Driven from the IT silo
Cloud adoption not
recognised as
transformational
IT and business
strategies not aligned
The cloud requires
modernisation
Lack of will to
adopt the cloud
Lack of skill to
adopt the cloud
The same can be
achieved in ‘private
cloud’
What will happen to
our people?
On-premise is
cheaper
Cloud isn’t
seen as secure
Too many
governance issues
Regulatory regime
means we can’t use cloud
Perception
that opex will
increase
Adoption requires
cultural change
- 8. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS Cloud Adoption Framework (CAF)
- 9. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS CAF
Business
Value Realisation
People
Role & Readiness
Governance
Prioritisation & Control
BusinessCapability
Focus
CAF2.0
Platform
Applications & Infrastructure
Security
Risk & Compliance
Operations
Hybrid & Dynamic
TechnicalCapability
Focus
- 10. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Business Capability Focussed Technical Capability Focussed
- 11. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS CAF
Business
Value Realisation
People
Role & Readiness
Governance
Prioritisation & Control
BusinessCapability
Focus
CAF2.0
Platform
Applications & Infrastructure
Security
Risk & Compliance
Operations
Hybrid & Dynamic
TechnicalCapability
Focus
• IT Finance
• IT Strategy
• Benefits Realisation
• Business Risk Management
- 12. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS CAF
Business
Value Realisation
People
Role & Readiness
Governance
Prioritisation & Control
BusinessCapability
Focus
CAF2.0
Platform
Applications & Infrastructure
Security
Risk & Compliance
Operations
Hybrid & Dynamic
TechnicalCapability
Focus
• Resource Management
• Incentive Management
• Career Management
• Training Management
• Organisational Change Management
- 13. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
AWS CAF
Business
Value Realisation
People
Role & Readiness
Governance
Prioritisation & Control
BusinessCapability
Focus
CAF2.0
Platform
Applications & Infrastructure
Security
Risk & Compliance
Operations
Hybrid & Dynamic
TechnicalCapability
Focus
• Portfolio Management
• Programme and Project Management
• Business Performance Management
• License Management
- 14. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Advisory tools
- 15. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• CAF envisioning
• CAF alignment
• Cloud Journey Simulation
• Business Case
Socialising cloud in your organization
- 16. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
CAF envisioning
Different
Compliance and
security needs
Different
legacies
Different
risks
Different
workloads
Different
goals
Different
performance and
resilience needs
- 17. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• Use our experience of 100s of other organizations
• Create a shared vision of business outcomes
• Align all stakeholders
CAF envisioning
- 18. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
CAF envisioning
Business Drivers / Outcomes
Enabling
Technologies StakeholdersMetrics
M O
M O
M O
M O
- 19. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
CAF envisioning
Business Drivers / Outcomes
Enabling
Technologies Stakeholders
1. Global scale
3. Business risk
Core
Dev
Security
Compliance
Analytics / Stats
& BI
QA
Customer
support
Benefit owners
HR
Ops
IT Leader
Dev Leader
Sales
CEO
Metrics
2. Talent retention
# countries w / ops
M O
# incident reports
M O
Improved comms
M O
# contract extns
M O
Increase global
scale
Goal 1
Increase
experimentation
Goal 2
Decrease time to
market.
Goal 3
Increase customer
trust
Goal 3
Improve cross-
business working
Goal 1, 3
DEVOPS for feature
acceleration and
quality improvement
Infrastructure as code
for stability and
reduced downtime
Analytics for
governance and
visibility
DEVOPS +
Automation for
improved security
Automation for rapid
provisioning &
deprovisioning of
R&D Environments
- 20. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• CEO
• CIO
• CIO direct reports
• CSO
• Legal
• HR
• Finance
• Risk/Governance
• Procurement
• Business
CAF envisioning
- 21. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
CAF alignment
Learn the capabilities, processes,
skills and Stakeholder
responsibilities that undergo
changes when transforming an
on premise IT environment to a
cloud-based environment.
1
Identify key Stakeholders,
concerns, gaps and blockers
to cloud adoption.
Determine the actions and
dependencies that will be
the focus of your
transitional “Action” plan
Leave the CAF Workshop
with a collaborative,
prescriptive transition plan
that your organization can
begin implementing
immediately
Learn 2 Identify 3 Implement
- 22. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Business
Governance
People
Operations
Security
Platform
CCC
Business
Governance
People
Operations
Security
Platform
Platform Transformation
Business
Governance
People
Operations
Security
Platform
Insource
Business
Governance
People
Operations
Security
Platform
Migration
- 23. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
- 24. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• Head of Cloud,
• CTO and CIO Strategy Leads
• Head of Application Development
• Head of Application Support
• Head of Infrastructure
• Security / InfoSec Lead
• Business Development / IT Lead Representatives from 2-3 business segments IT
Procurement
• Head of IT Operations
• IT Legal / Governance Leads
CAF alignment
- 25. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• CIO
• CIO direct reports
• CSO
• Legal
• HR
• Finance
• Risk/Governance
• Procurement
• Business
Cloud journey simulation
- 26. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Cloud journey simulation
- 27. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
The business case
- 28. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Preparing a business case for cloud adoption is one of
the key tools to driving broad organizational
engagement in the adoption of AWS.
But business cases are often an afterthought, done as a
validation exercise after cloud adoption has begun and
owned entirely by the IT silo.
- 29. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• What the cost of getting into AWS will be
• What the cost of operating in AWS will be
• What the costs of exiting current infrastructure could be
• What the cost of doing nothing is
• What building infrastructure for new workloads costs
• What third–party support is needed
• What value benefits the business will gain from being in AWS
What a business case tells us
- 30. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Isn’t the business case just a TCO?
- 31. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
TCO and the business case
Business
Value
$
1 2 3 4 50
TCO
Migration Bubble
Cost Optimising
Current / Do Nothing
(with growth)
AWS Environment
Payback
Period
Time
Cost
- 32. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
TCO and the business case
Features of a great AWS cloud adoption business case TCO BCA
Like-for-like comparison of AWS vs. on-premise/co-location for same workloads ✓ ✓
A high-level business-focussed analysis of application migration patterns (six R’s) ✗ ✓
A cost for migration to AWS ✗ ✓
A cost of operation (TCO) once landed in AWS ✓ ✓
Alternative TCO’s for higher-level services (e.g. RDS instead of Oracle on EC2) ✗ ✓
Consideration given to current licencing and licencing in AWS some ✓
Resource utilisation cost analysis ✗ ✓
Third party cost analysis ✗ ✓
Identification of value benefits ✗ ✓
Financial cost analysis including balance sheet and budget items ✗ ✓
Apply cost optimisation principles to the TCO’s in the business case maybe ✓
- 33. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
TCO and the business case
Features of a great AWS cloud adoption business case TCO BCA
Show the cost and cashflow of leaving on-premise or co-location and moving to AWS ✗ ✓
Show the cost of doing nothing (i.e. not migrating to cloud) ✗ ✓
Calculates NPV, ROI, MIRR and the payback period ✗ ✓
Provides financial models to the customer so they can amend assumptions ✗ ✓
Provides a presentation which can be used for stakeholders ✗ ✓
Time to execute 3-8h varies*
* Can be as little as 2 hours and as long as 10 weeks, subject to having the data from the customer.
- 34. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Business objectives
• It is important to understand our customer
• Different stakeholders will have different objectives
• Understanding the organization will allow us to
work around competing priorities and goals
• Take the time to understand what is really driving
cloud adoption
• Find out what the blockers will be; knock them out
of the way
• Ensure there is an executive sponsor
- 35. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Existing costs
People
Costs
Third Party
Costs
Infrastructure
Costs
Application
Costs
Migration
Costs
- 36. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Infrastructure costs
Used IT
Capacity
Idle
Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacity
A typical on-premises compute
environments are massively underutilized
A 2017 Study by IDC stated that typical data
centers are 45% utilized.
This is measured in terms of the amount of idle
compute hours and unused storage capacity
for provisioned components.
IDC: Quantifying Datacenter Inefficiency
http://www.integra1.net/uploads/files/IDC%20Making%20the%20Case%20for%20Composable%20Infrastructure.pdf
- 37. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Infrastructure costs
Used IT
Capacity
Idle
Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacity
Part of this can be explained by buying for
“peak load” requirements with inflexible
infrastructure
IDC: Quantifying Datacenter Inefficiency
http://www.integra1.net/uploads/files/IDC%20Making%20the%20Case%20for%20Composable%20Infrastructure.pdf
CyclicalPart-timeFluctuating
- 38. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Infrastructure savings can be significant in the
business case, because of this over-capacity
- 39. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits
• Capex ↓↓
• Opex ↓↓
• Opportunity cost ↓↓
• Risk premium ↓↓
• Revenues ↑↑
Cost Savings Resource Efficiency
• Time saved ↑↑
• Support overhead ↓↓
• MA&D time ↓↓
• Defects ↓↓
• Outages ↓↓
• Security ↑↑
• User satisfaction ↑↑
Operational
Resilience
• Cycle Times ↓↓
• POC Delivery ↓↓
• Innovation ↑↑
• Speed to Market ↑↑
• Complexity ↓↓
Business Agility
- 40. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits
Cost Savings
(TCO/CO)
Resource
Efficiency
Business
Agility
Operational
Resilience
What is it?
Launch of new
products 75% faster
(Unilever)
Critical workloads run
in multiple AZs &
Regions for robust DR
(Expedia)
50%+ reduction in
TCO (GE)
Over 500 hours per year
of server configuration
time saved (Sage)
Examples
Infrastructure cost
savings / avoidance
from moving to the
Cloud.
Efficiency improvement
by function on a task
by task basis.
Benefit of improving
SLAs & reducing
unplanned outage.
Deploying new features /
applications faster and
reducing errors.
Typical
Focus
Most Compelling
Cloud Benefits
- 41. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits: KPIs
Baseline Baseline Baseline Baseline
Infra as a % of IT spend 30% Infra as a % of IT EEs 20% App 1 Uptime % 99.0% Time to Deploy to Production (days) 10
IT spend per EE $9,900 App Dev as a % of IT EEs 35% App 2 Uptime % 98.5% New Applications Launched per Year 3
IT spend as a % of revenue 3.3% IT as a % of Total EEs 5% # P1 and P0 Incidents 25 Time to provision new environment (days) 5
% Server Utilization 20% % of time spent on tactical 60% # of Total Incidents 100 Deployment Frequency (revs / yr) 12
% Storage Utilization 35% Mean Time To Resolution (hrs) 2 Total # of Defects 100
% of total defects found in test 30%
Cost Savings (TCO) Resource Efficiency Operational Resilience Business Agility
* KPIs are baselined and meant to be tracked over time with targets specified. Partial List of KPIs shown above.
- 42. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits: Outputs
Total Annual Business Value
$21.8M
eCommerce1
$8.7M
TCO
$1.9M
Resource
Efficiency
$1.0M
Operational
Resilience
$1.4M
Business
Agility
$4.3M
eCommerce2
$8.9M
TCO
$1.5M
Resource
Efficiency
$0.8M
Operational
Resilience
$3.3M
Business
Agility
$3.4M
Productivity1
$4.2M
TCO
$0.9M
Resource
Efficiency
$0.5M
Operational
Resilience
$0.9M
Business
Agility
$1.9M
- 43. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits: Outputs
Typical Focus Most Compelling Cloud Benefits
Savings Impr Value Before After Value Impr Value
Server $1,093,514 Infrastructure 30% $405,000 eCommerce1 99.00% 99.50% $1,432,343 Time to Deploy 22.0% $656,232
Storage $688,514 Facilities 80% $270,000 Total Defects 35.0% $640,360
Network $154,640 Application 20% $337,500 Customer NPS 50.0% $1,302,274
Employee NPS 33.3% $1,751,055
TOTAL $1,936,668 $1,012,500 $1,432,343 $4,349,922
TOTAL ANNUAL BENEFIT $8,731,433
Cost Savings (TCO) Resource Efficiency Operational Resilience Business Agility
Headcount Uptime KPI
eCommerce1
- 44. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Understanding value benefits: Examples
RESOURCE EFFICIENCYCOST SAVINGS OPERATIONAL RESILIENCE BUSINESS AGILITY
80% reduction in software R&D times
(Apeejay Stya & Svrán)
Time to launch digital campaigns cut from
weeks to 24 hours (91App)
Calc and reporting time cut from 10 days to
10 minutes (Aon Benfield)
Time to market cut from weeks to hours
(FlyDubai)
Clinical simulations 98% faster than on-
premise (Bristol-Myers Squibb)
Time to deploy IT compute reduced to <
5minutes (Alcatel-Lucent)
R&D RFS times reduced from 6 months to 1
day (NewsCorp)
Provisioning time cut from 3-4 weeks to 2
days (ENEL)
Test-run time cut to 10 minutes, from up to
two hours (Yelp)
Launch new products 75% faster (Unilever)
5M financial investment policies
recalculated in minutes instead of
overnight (ABSI)
DC footprint from 13 to 6 (The Weather Co.)
DC footprint reduced from 8 to 3 by 2018
(CapitalOne)
Storage costs reduced by up to 60% (ENEL)
Migrated 500 servers, 1PB storage, &100 DB
servers in 3 months to AWS (Condé Nast)
Over 50% reduction in TCO (GE)
DC footprint from 45 to 6 (News Corp)
50% reduction in app costs (Time Inc)
Cost savings of $20M p.a. (FINRA)
Computational cost reduced by 20%+ (ENEL)
Cloud deployment has saved US$34 million in
CAPEX and reduced OPEX by 85% (Samsung)
Queries run on 450,000 online subscribers 98
percent faster and 80 percent cheaper (FT)
Cost reduction of $40k p.a. (Dow Jones )
Savings of $1.5M p.a. (Trainline)
30% reduction in OPEX (MacMillan)
12% reduction in OPEX (RWE Czech)
Scaled to handle a 400% increase in page
views (Kurt Geiger)
Improved security posture (CapitalOne)
8600 transactions/second (McDonalds)
Transfer of over 750 TB of data from pipeline
inspection machinery (GE)
Processing over 75 billion market events daily
(FINRA)
Critical applications run in multiple AZs, x-
Regions for robust disaster recovery (Expedia)
Supports over 300,000 requests per minute to
its API (Easy Taxi)
60% reduced downtime (Trainline)
Migration of SAP on Oracle to AWS with zero
unplanned downtime across five countries
(Kellogg’s)
SAP availability boosted to 100% (MacMillan)
Over 200 Solutions Architects
trained in cloud (Hitachi)
Energy Marketing business prepared
for acquisition in only 6 months
rather than 12 (Hess Corp)
Performance targets over-achieved
by 43-66% (McDonalds)
IT Infra consolidation completed in
20% of expected time (Hearst)
25,000 Amazon Workspaces cloud-
based desktops deployed (Johnson &
Johnson)
Over 500 hours per year of server
configuration time saved (Sage)
39 years of Computational chemistry
condensed into 9 hours (Novartis)
- 45. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Resource efficiency
0
50
100
150
200
250
Task Hours (Industry Avg.) Task Hours (AWS Cloud)
Reduce administrative
tasks
Hours /
year
Introduce Automated
Services for Coding
Automate Testing &
Defect Discover
Micro-services
Serverless
Architecture
Waiting for Test
Environments
Waiting for Builds
Automated
Testing Defect
Reduction
- 46. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Resource efficiency: methodology
Data Gathering
What is the representative staffing for a given workload
Current Task Effort Estimates
Determine amount of time spent on each task for each resource
Future Task Efficiency Estimates on AWS
Determine amount of efficiency on each task for each resource by
moving to AWS
Deliverable: Productivity Summary
Task and / or cost productivity estimates by resource type
- 47. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Task On-Premise On AWS
Install server, rack, TOR, networking… ✓
Manage physical access ✓
Test power and network fail over ✓
Deal with disk failures ✓
Manage RAID arrays ✓
Hardware procurement and budgeting ✓
Patch management and End of Life issues ✓
Configure services ✓ ✓
- 48. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Resource efficiency: hours saved
Resource Type AWS Notes
O/S engineering Included Client will keep their OS engineering
Server SA Included There should be a reduction in server SA's. The % based on industry is 1 per 100 physical hosts or 1 per 250 virtual
Server Engineering Included Time and labor certifying new server platforms or network gear is significantly reduced if not eliminated completely for AWS workloads.
Server Deployment (IMAC) Included No rack and stack required by Client for AWS infrastructure
Network Administration Included Running work loads on AWS will reduce network administration
Network Engineering Included Time and labor certifying new server platforms or network gear is significantly reduced if not eliminated completely for AWS workloads. Patch management is reduced.
Network Deployment (IMAC) Included No rack and stack required by Client for AWS infrastructure
Virtualization SA Included Reduction average 1/250 instances
Operational support Included Monitoring, patches, etc… will be reduced. Cloud Formation and APIs for all services
Support (L2/L3) Included Enterprise support contracted. L2/L3 support provided by AWS.
Storage Engineering Included Utilizing AWS storage will reduce the administration needed.
Storage Administration Included Administration will be reduced on Client side
Security Engineering Included Should be reduced on Client. AWS offers Encryption Services (KMS).
Security Management Included Should be reduced on Client. AWS offers Encryption Services (KMS).
Facilities management Included Building out data center white space for in scope work loads would be eliminated
Asset Management Included Hardware and Software Lic management will be made easier
Sourcing Included Procurement of hardware and facilities normally includes sourcing
Audit / Compliance Included AWS infrastructure come pre-audited
Legal / Contract Included Not having to deal with co-location space contracts or leases should reduce legal and contract management time.
- 49. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Operational resilience
End User Clients Corporate
Network
Servers Storage Network Storage
The impact of downtime:
• An airline data center outage grounded ~2000 flights over 3 days that cost over $150M
• A major bank suffered prolonged downtime after experiencing a DDoS attack
• A sales forecasting application goes down causing disruption to sales and finance, leading to an inability to report
guidance to the Street
- 50. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Operational resilience
Sources:
IDC: DevOps and the Cost of Downtime: Fortune 1000 Best Practice Metrics Quantified, December 2014
Gartner (July 2014) – $336k/hr (with variance as high as $540k/hr)
Ponemon Institute (December 2013) – $474k/hr
Annual Fortune 1000
application
downtime costs*
$1.25bn
to $2.5bn
Average hourly cost
of an infrastructure
failure
$100k
/ hr
Average cost/hr of a
critical application
failure*
$500k
to $1m
- 51. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Operational resilience
Operations
InfrastructureSoftware
Security
- 52. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• Leverage automation
• Manage services from end to end
• System-wide visibility for utilization, performance, and operational metrics
• Enable security and governance configuration of AWS resources
• Monitor API access
Operational resilience
Operations
- 53. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Security
• Leverage AWS Security Best Practices, automation and tools available to you to
mitigate Security risks
• Built-in DDoS protection and Security Perimeter
• Identity Access Management to centrally manage users and credentials
• Reduce or eliminate the existence of “rogue servers”
• Quickly build compliance ready environments (30+ compliance certifications and
accreditations)
Operational resilience
- 54. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
• Blue/Green deployments allow for quick roll backs (CodeDeploy)
• Automate continuous integration and continuous delivery workflow
(CodePipeline)
• Resources stay current and secure with OS patching (AWS Managed Services)
• Create and manage a collection of related AWS resources (CloudFormation)
Operational resilience
Software
- 55. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Operational resilience
Real Estate
Facilities
Networking
SAN
Servers
Power
Storage
Hypervisor
Operating System
Application
Owned
EBS (Block Storage)
S3 (Object Storage)
EC2 (Servers)
Application
AWS Serverless
Application
~70% Cost
Reduction
~90% Cost
Reduction
Infrastructure
- 56. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Business agility
Tactical (Undifferentiated)
Strategic (Differentiated)
Current State Lift & Shift to AWS DevOps Micro-services & Serverless
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Business agility
Project Funnel
Increase the number of new projects
in the funnel
Increase the speed by which projects
move through the funnel
20
New Projects Proposed
10
Deployed
2
Success
Decrease the downside impacts of project
“failures” and shut them down quickly
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Business agility
• High Performers as compared to Low Performers, 2016 State of DevOps Report, Puppet Labs
• Time to deploy to production: 60 minutes for High Performers vs 3.5 months for Low Performers
• Frequent code deployments: 7 per year vs 4 per day
200x
3x
24x
2,555x
more frequent code deployments
faster time to deploy to production
faster mean time to recover (MTTR)
lower change failure rate %
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Business value benefits are derived from the
discussion around goals and outcomes
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Adoption of the cloud isn’t just about cost savings. Driving
real organizational transformation by improving
productivity, reducing risk and gaining the ability to
innovate at startup speed are the prizes that await
organizations that recognise this.
But cloud adoption doesn’t just happen, it needs broad
support across the organization, moving beyond the IT silo
and into areas which previously avoided involvement in
technology.
Using our Advisory tools, you can gain the support and
traction you need for a successful cloud journey.
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Our goal is to engage the widest possible
number of people in the adoption of cloud from
the outset.
Our tools facilitate this as they address
stakeholders from the c-suite through to the
datacentre and beyond.
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Thank you!
Mario Thomas, Global Advisory
mario@amazon.com
@mariothomas