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Remediate Tech Debt or Drive Innovation - AWS Summit Sydney 2018

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Remediate Tech Debt or Drive Innovation? Learn How to Do Both With Your Cloud Migration

Learn how to achieve the benefits of moving applications to the AWS platform, by designing a cloud migration model that retires tech debt and sets the platform for innovation. This includes establishing a compelling business case, acquiring new skills, implementing new business processes, and defining the application migration methodology to transform your business model from on-premise to a cloud infrastructure.

Miriam McLemore, Director, Enterprise Strategy & Evangelism, Amazon Web Services

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Remediate Tech Debt or Drive Innovation - AWS Summit Sydney 2018

  1. 1. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Miriam McLemore Director, Enterprise Strategy, Amazon Web Services Remediate Technical Debt or Drive Innovation? Learn how to do both with your cloud migration
  2. 2. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Session Agenda Setting the Stage for Innovation Establishing a Business Case for Cloud Retire Technical Debt Acquiring New Skills Implementing New Business Processes Amazon’s Culture of Innovation Application Migration Methodology AWS Capabilities
  3. 3. Setting the Stage for Innovation
  4. 4. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Cloud Offers Well Known Benefits Focus on differentiation instead of managing a tonne of servers. Innovate faster and solidify your competitive advantage by increasing your agility. Enhance security by leveraging the infrastructure protocols, scale, and compliance requirements already provided.
  5. 5. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. What is Cloud Computing? It’s Similar to a Power Grid Labour & Time Intensive We Need To Manage Responsible For Repairs Build Your Own Power Plant
  6. 6. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. What is Cloud Computing? It’s Similar to a Power Grid Leverage Established Resources Centrally Managed by 3rd Party Upgrades Provided Build Your Own Power Plant Plug Into A Power Grid Labour & Time Intensive We Need To Manage Responsible For Repairs
  7. 7. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Build Your Own Data Centre Now, In The Context Of Today’s IT Investments Large, Upfront Capital Investment We’re Responsible For Upgrades Slow To Get New Capabilities
  8. 8. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Pay For What You Use Automatic Upgrades Of Functionality Access To Feature-Rich Platform Plug Into The Cloud Now, In The Context Of Today’s IT Investments Build Your Own Data Centre Large, Upfront Capital Investment We’re Responsible For Upgrades Slow To Get New Capabilities
  9. 9. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Data Centre Consolidation Digital Transformation Cost Reduction Acquisitions or Divestitures Large scale compute intensive workloads Facility or Real-estate decisions Colocation or outsourcing contract changes Agility/Dev Productivity Common Migration Drivers
  10. 10. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Kellogg Company Overview: • The Kellogg Company, ~$15 B revenue, ~30k employees Scope / Challenge: • Trade Promotion Management System • 16tb of weekly sales data processed (growing to 50tb) • Current on-prem solution allowed for one simulation a day Benefits: • Run dozens of simulations a day • Changes to trade spend analyses went from 30 days to immediate & staff now deploys instances 90% faster • $900k savings in dev/test hardware Source: https://aws.amazon.com/solutions/case-studies/kellogg-company/ “Using AWS lets us develop and deliver business services much more quickly than before, so that we can keep one step ahead of the market.” Stover McIlwain Former Sr. Director of IT Infra. Engineering Business Agility
  11. 11. Establishing a Business Case for Cloud
  12. 12. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Infrastructure cost $ Time
  13. 13. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Infrastructure cost $ Time Predicted demand Key:
  14. 14. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Infrastructure cost $ Time Large capital expenditure Predicted demand Traditional hardware Key:
  15. 15. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Infrastructure cost $ Time Predicted demand Traditional hardware Actual demand Key: Large capital expenditure
  16. 16. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Infrastructure cost $ Time Opportunity cost Predicted demand Traditional hardware Actual demand Key: Large capital expenditure
  17. 17. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. The Economics Of The Cloud Are Compelling Lost opportunity Infrastructure cost $ Time Predicted demand Traditional hardware Actual demand Key: Opportunity cost Large capital expenditure
  18. 18. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Pay as you go Pay less by using more Pay less when you reserve Pay less when AWS grows No up-front investment Pay per use AWS Enables Customers To Pay For Exactly the Amount of Resources They Actually Use
  19. 19. Your Business Case Should Be Driven By Your Organisation’s KPIs, But Here’s Some Common Drivers:
  20. 20. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Unit price of infrastructure Ability to match supply and demand A pathway to optionality An elastic cost base Transparency drives a lean mindset OPERATIONAL COSTS Business Value Drivers
  21. 21. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Automation drives maintenance efficiencies Reduced cost of planned and unplanned outages Increased developer productivity WORKFORCE PRODUCTIVITY OPERATIONAL COSTS Business Value Drivers
  22. 22. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Elimination of hardware refresh programs Elimination of maintenance programs WORKFORCE PRODUCTIVITY COST AVOIDANCE OPERATIONAL COSTS Business Value Drivers
  23. 23. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Reduced risk profile/Reduced cost of risk mitigation Revenue & margin improvements due to reduced outages WORKFORCE PRODUCTIVITY COST AVOIDANCE OPERATIONAL COSTS OPERATIONAL RESILIANCE Business Value Drivers
  24. 24. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. WORKFORCE PRODUCTIVITY COST AVOIDANCE OPERATIONAL COSTS OPERATIONAL RESILIANCE BUSINESS AGILITY Reduced time to market & innovate Increased operational agility (new market penetration, divestiture, acquisition) Business Value Drivers
  25. 25. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. OPERATIONAL COSTSWORKFORCE PRODUCTIVITYCOST AVOIDANCEOPERATIONAL RESILIENCEBUSINESS AGILITY 98% reduction in P1/P0s 77% faster to deliver business applications 52% average TCO savings 35% reduction in compute assets (792) 15 automated bots developed 80% cloud first adoption 15 cloud services created 50 applications decommissioned 8 cloud migration partiesImproved security posture Shift to self-service culture Rapid experimentation Reduced technical debt 14M YOY Savings Improved performanceStreamlined M&A activity DevOps in practice $20M Investment Focus 18 Months 300+ Apps Migrated $14M YOY Savings&
  26. 26. Retire Technical Debt
  27. 27. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Current State of most IT Organisations Time-to Market Inflexible Platform Technical Debt Unplanned Work Customer Experience Collaboration 6+ months per release Months to procure/provision 60 – 80% of effort Outages, bugs, compliance Performance and outages Integrating with other business units is technically difficult High cost, Low productivity, Limited agility
  28. 28. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. New Principles Of Transformational IT 1. Act like a start-up (that is funded and has domain expertise) 2. Embrace cloud computing 3. Use the right tool for the business need 4. Use out-of-box functionality whenever possible 5. Create a microservices architecture 6. Enforce 80/20 or YAGNI (You Aren’t Going to Need It) 7. Cultivate Culture and DevOps model 8. “You build it, you own it!” Think Big, Start Small, Go Fast
  29. 29. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. IT Map - Traditional IT Products & Services CTO/VP Applications Digital Products, Brand Websites, Mobile Applications, Point of Sale Systems, Commerce E-mail, Productivity, Collaboration, HR, Finance, ERP Back Office Systems CIO/VP Corp Systems Desktop Support, Device Management, Telephony, IT Support End User Computing VP IT Support Encryption, Key Management, Identity Management, Firewalls, IDS, DDoS Information Security CISO
  30. 30. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Products & Services CTO/VP Applications Digital Products, Brand Websites, Mobile Applications, Point of Sale Systems, Commerce E-mail, Productivity, Collaboration, HR, Finance, ERP Back Office Systems CIO/VP Corp Systems Desktop Support, Device Management, Telephony, IT Support End User Computing VP IT Support Information Security CISO Encryption, Key Management, Identity Management, Firewalls, IDS, DDoS Infrastructure/Delivery VP Infrastructure IT Map - Traditional IT
  31. 31. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Products & Services CTO/VP Applications Digital Products, Brand Websites, Mobile Applications, Point of Sale Systems, Commerce E-mail, Productivity, Collaboration, HR, Finance, ERP Back Office Systems CIO/VP Corp Systems Desktop Support, Device Management, Telephony, IT Support End User Computing VP IT Support Infrastructure/Delivery VP Infrastructure Information Security CISO Encryption, Key Management, Identity Management, Firewalls, IDS, DDoS PMO Engineering Operations Design IT Map - Traditional IT
  32. 32. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. IT Map - A Cloud-First Tomorrow Information Security Back Office Systems End User Computing Cloud Centre of Excellence (CoE) Products & Services
  33. 33. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Cloud Centre of Excellence Technical Training Hiring People and Partners Communication Plan Landing Zone Security Foundation Operations Tools Operations Model Provisioning Billing Optimisation Security Operations PEOPLE PROCESS TECH Direct Connect Accounts Central Services Security Network Identity & Access Domains Start Build & Iterate Design Ops Apps Infra AWS Managed Services LeadershipInfrastructure Security Operations Applications Foundational Capabilities
  34. 34. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Best Practices Executive Leadership ExperimentEducate Staff Cloud Centre of Excellence Engage Partners
  35. 35. Application Migration Methodology
  36. 36. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Application Migration – The Six R’s 1. Re-host 2. Re-platform 3. Re-purchase 4. Re-architect 5. Retire 6. Retain
  37. 37. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Redesign Application/ Infrastructure Architecture App Code Development Full ALM / SDLC Integration Purchase COTS/ SaaS & licensing Manual Install & Setup Modify underlying Infrastructure Determine new platform Retain / Revisit Manual Config Manual Deploy Manual Install Retire / Decommission Discover/Assess/Prioritise Applications Determine Migration Path Use Migration Tools Transition ProductionValidation Automate Application Migration Patterns
  38. 38. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Migration Process Migration Preparation & Business Case Portfolio Discovery & Planning Application Design Migration & Validation Operate Continually Optimise
  39. 39. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Some Customers Migrating Consolidating 56 data centres down to 6, moving 75% of infrastructure to cloud in the process, and re- allocating more than $100M toward key business drivers Data Centre Consolidation
  40. 40. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Some Customers Migrating Agility/Dev Productivity Cost Reduction Migrated ~5,500 instances in 9 months, reduced storage costs 50%, compute costs 20%, and sped up provisioning by 10x (4 weeks to 2 days)
  41. 41. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Some Customers Migrating “Migrating to AWS provides the scalability, security, and flexibility we need to stay at the forefront of consumer DNA testing as science and technology continues to evolve. We’ve rapidly migrated much of our data and applications to AWS in less than a year and we’re excited to ramp up our innovation engine to help more people discover their family history.” - Nat Natarajan, EVP of Product and Technology Data Centre Consolidation Agility/Dev Productivity
  42. 42. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Some Customers Migrating
  43. 43. Acquiring New Skills and Implementing New Business Processes
  44. 44. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Embrace microservices … and value creation
  45. 45. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Monolith Development Cycle App Delivery Pipelines Build Test Release Developers
  46. 46. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Monolithic vs. SOA vs. Microservices Single Unit Coarse-grained Fine-grained MicroservicesSOAMonolithic
  47. 47. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Build Test Release Build Test Release Build Test Release Build Test Release Developers Services Delivery Pipelines Microservice Development Cycle
  48. 48. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. and move faster How can enterprises devote more resources to the things that matter while being more secure?
  49. 49. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Accelerate Your Developers by Reducing Undifferentiated Work 0 50 100 150 200 250 Series1 Series2 Reduce administrative tasks Hours / year Introduce Automated Services for Coding Automate Testing & Defect Discover Microservices Serverless Architecture Workforce Enablement
  50. 50. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Searching For Talent Companies need cloud expertise now more than ever Indeed Job Postings that include “AWS” 0 100 200 300 400 500 600 700 1 3 5 7 9 111315171921232527293133353739414345474951535557 Relative Percentage *Indeed.com job trends, http://www.indeed.com/jobtrends/q-AWS.html
  51. 51. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Impact Of Training 1st Training Delivered 1400 students trained 11 months Production Applications Time Jan 2015 Sept 2016 0 ~100
  52. 52. AWS Capabilities
  53. 53. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. “We are creating powerful self- service platforms that allow thousands of people to boldly experiment and accomplish things that would otherwise be impossible or impractical." Self-Service Platforms Without Gatekeepers
  54. 54. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. TECHNICAL & BUSINESS SUPPORT MARKETPLACE HYBRID ARCHITECTURE MOBILE SERVICES DEV/OPS IoT MACHINE LEARNING ENTERPRISE APPS MIGRATIONANALYTICS INFRASTRUCTURE CORE SERVICES SECURITY & COMPLIANCE APP SERVICES MANAGEMENT TOOLS Most Robust, Fully Featured Technology Infrastructure Platform
  55. 55. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Most Robust, Fully Featured Technology Infrastructure Platform CORE SERVICES Integrated Networking Rules Engine Device Shadows Device SDKs Device Gateway Registry Local Compute Custom Model Training & Hosting Conversational Chatbots Virtual Desktops App Streaming Schema Conversion Image & Scene Recognition Sharing & Collaboration Exabyte-Scale Data Migration Text to Speech Corporate Email Application Migration Database Migration Regions Availability Zones Points of Presence Data Warehousing Business Intelligence Elasticsearch Hadoop/Spark Data Pipelines Streaming Data Collection ETL Streaming Data Analysis Interactive SQL Queries Queuing & Notifications Workflow Email Transcoding Deep Learning (Apache MXNet, TensorFlow, & others) Server MigrationCommunications MARKETPLACE Business Apps Business Intelligence DevOps Tools Security Networking StorageDatabases API Gateway Single Integrated Console Identity Sync Mobile Analytics Mobile App Testing Targeted Push Notifications One-click App Deployment DevOps Resource Management Application Lifecycle Management Containers Triggers Resource Templates Build & Test Analyse & Debug Identity Management Key Management & Storage Monitoring & Logs Configuration Compliance Web Application Firewall Assessment & Reporting Resource & Usage Auditing Access Control Account Grouping DDOS Protection TECHNICAL & BUSINESS SUPPORT Support Professional Services Optimisation Guidance Partner Ecosystem Training & Certification Solutions Management Account Management Security & Billing Reports Personalised Dashboard Monitoring Manage Resources Data Integration Integrated Identity & Access Integrated Resource & Deployment Management Integrated Devices & Edge Systems Resource Templates Configuration Tracking Server Management Service Catalogue Search MIGRATIONHYBRID ARCHITECTUREENTERPRISE APPSMACHINE LEARNINGIoTMOBILE SERVICESDEV OPSANALYTICS APP SERVICES INFRASTRUCTURE SECURITY & COMPLIANCE MANAGEMENT TOOLS Compute VMs, Auto-scaling, Load Balancing, Containers, Virtual Private Servers, Batch Computing, Cloud Functions, Elastic GPUs, Edge Computing Storage Object, Blocks, File, Archivals, Import/Export, Exabyte-scale data transfer CDN Databases Relational, NoSQL, Caching, Migration, PostgreSQL compatible Networking VPC, DX, DNS Facial Recognition & Analysis Facial Search Patching Contact Centre
  56. 56. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. 24 48 61 82 159 280 516 722 1017 1430 0 250 500 750 1000 1250 1500 1750 1 2 3 4 5 6 7 8 9 10 Launches AWS Pace Of Innovation: New Capabilities Daily
  57. 57. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. AWS Positioned As A Leader In The Gartner Magic Quadrant For Cloud Infrastructure As A Service, Worldwide* AWS is positioned highest in execution and furthest in vision within the Leaders Quadrant *Gartner, Magic Quadrant for Cloud Infrastructure as a Service, Worldwide, Leong, Lydia, Bala, Raj, Lowery, Craig, Smith, Dennis, June 2017 G00315215 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from AWS : http://www.gartner.com/doc/reprints?id=1- 2G2O5FC&ct=150519&st=sb Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organisation and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
  58. 58. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Largest Number Of Startup Customers
  59. 59. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Largest Number Of Enterprise Customers
  60. 60. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Public Sector Customers
  61. 61. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. ISVs Running On AWS “There is no public cloud infrastructure provider that is more sophisticated or has more robust enterprise capabilities for supporting the needs of our growing global customer base.” – Marc Benioff
  62. 62. Amazon’s Culture of Innovation
  63. 63. Invention comes in many forms and at many scales. The most radical and transformative of inventions are often those that empower others to unleash their creativity – to pursue their dreams. Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
  64. 64. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. OUR MISSION We want to be earth’s most customer centric company
  65. 65. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. OUR COMMITMENT We make our customers’ lives easier
  66. 66. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. WHERE INNOVATION STARTS We start with the customer and work backwards
  67. 67. » Customer Obsession “Start every process with the customer and work backwards.” » Long Term Thinking “Be stubborn on the vision but flexible on the details.” » If you want to be inventive, you have to be willing to fail. “We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.” » You have to be willing to be misunderstood for a long time. “We are very comfortable being misunderstood.” Our Culture Of Innovation
  68. 68. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Culture of Experimentation: We Give Our People Freedom To Innovate Joi Ito “Want to increase innovation? Lower the cost of failure” Rapid iteration –
  69. 69. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Hackathons Experimentation Sandboxes Find your threshold for risk… and celebrate it
  70. 70. » Mechanisms Encoded behaviors that facilitate innovative thinking » Architecture Structure that supports rapid growth and change » Culture Customer obsession, hire builders, let them build, support them with a belief system » Organisation Small, empowered teams that own what they create How do we organise for innovation?
  71. 71. Everyone of us is a leader on our mission
  72. 72. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. Drone Development Advanced Shopping Kindle Reader In-house Entertainment Grocery Delivery Video Streaming Home AutomationCloud Computing Innovation Manifested Across So Many Domains…
  73. 73. We had three big ideas at Amazon that we have stuck with for 20+ years, and they are the reason we are successful: put the customer first, invent and be patient. Jeffrey P. Bezos Founder and Chief Executive Officer Amazon.com, Inc.
  74. 74. Thank You

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