Cashflow, Customer Experience & Risk, originally presented at AWS re:Invent Comes to London on January 24, 2019.

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Cashflow, Customer Experience & Risk
John Enoch

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https://www.forbes.com/sites/joemckendrick/2018/05/24/many-cloud-business-cases-need-more-depth-aws-executive-advises/2/#5e20c387314a
http://urn.kb.se/resolve?urn=urn:nbn:se:hig:diva-25560

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http://www.informationisbeautiful.net/visualizations/million-lines-of-code
14 Million lines
10 Million Lines
2 Million Lines

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Your developments
Why -> How -> Where do
you develop?(to get infinite scale and flexibility in
storage, compute and IT services)
AWS Cloud
vs.
On-premise
IT Objectives: Global consistency in ops (easy to run), infra (use) and talent (keep)

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How can you transform your
IT operations faster than
your customers & suppliers
are transforming theirs?

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Amazon and Cashflow

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Finance
• Capex & Opex ↓↓
• Opportunity cost ↓↓
• Risk premium ↓↓
• Revenues ↑↑
• Cashflow ↑↑
Productivity Quality & Risk
• Cycle Times ↓↓
• POC Delivery ↓↓
• Innovation ↑↑
• Speed to Market ↑↑
• Complexity ↓↓
• Defects ↓↓
• Outages ↓↓
• Support overhead ↓↓
• Governance/Controls↑↑
• Customer Experience↑↑
• BI quality ↑↑

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Collective Customer objectives & concerns
Financial
23%
Risk (GRC)
25%
Productivity
31%
Performance
21%
Objectives by Preference
Financial
11%
RISK GRC
25%
Performance
13%
Supplier
Management
14%
Organisational
37%
Challenges / Inhibitors by Impact
Main objectives:
CX and Simplification
Possible inhibitors:
Org. Readiness
Double running costs
Data Protection

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3 Sequential Decisions
Which IT
Platform?
Purpose of
IT?
How to exit
legacy IT?
Cost
Reduction
Agility
IT
Performance
Productivity
Customer
Needs
Business
Case
Innovation
Operate &
Optimise
Decision
Outcome
Uncertainty
Change Project
(suppliers, discovery, plan,
design, build)
illustrative

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0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Total in-house cost per year Total AWS cost per year
Total in-house cost to date Total AWS cost to date
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Total in-house cost per year Total AWS cost per year
Total in-house cost to date Total AWS cost to date
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7
Total in-house cost per year Total AWS cost per year
Total in-house cost to date Total AWS cost to date
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
RESERVED
INSTANCES
SPOT
INSTANCES
Illustrative
TCO Range & Tipping Point

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Some Decision dependencies
Cost: Switching stuff off, Controls & Risk Register
Consensus: Inclusive case for change i.e. what & why?
Skill sets: Staff retention, partners, training
Complexity: Change to process e.g. FinOps & optimisation
Vision: Transformation vs. transactional IT

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Next steps

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