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The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for the Enterprise 2012

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AWS Technology Evangelist Jinesh Varia discusses how to think about TCO of Storage and typical mistakes prospects make when trying to apples to apples comparison between cloud infrastructure service and on-premises storage

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The Total Cost of Ownership of Cloud Storage (TCO) - AWS Cloud Storage for the Enterprise 2012

  1. 1. The Total Cost of (Non) Ownership of Storage In The Cloud Jinesh Varia jvaria@amazon.com Technology Evangelist
  2. 2. The AWS Cloud For Enterprises Tools to access services Cross Service features High-level building blocks Low-level building blocks
  3. 3. Pay as you go
  4. 4. When Comparing TCO…
  5. 5. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization
  6. 6. Report: File Storage Costs Less In The Cloud Than In-House
  7. 7. It’s Easy To Get An Incomplete And Incorrect Comparison Of Cloud And Internal StorageAugust 2011 “File Storage Costs Less In The Cloud Than In-House”
  8. 8. On-Premises Storage Allocation 1 PB Raw Storage 1,048,576 GB Disk storage volumes in a box Usable Storage 80% RAID protection, Formatted Ready Allocated Storage 90% Pre-allocation / Capacity Planning Utilized Storage 70%-80% Disk storage available to the database, Operating system Application Storage 1,820,133 GB Actual storage used by the application Source: Dave Merrill’s Blog
  9. 9. On-Premises Storage Amazon S3 Raw Storage Disk storage volumes in a box Usable Storage RAID protection, Formatted Ready Allocated Storage Pre-allocation 1 PB Utilized Storage Disk storage available to the database, Operating system Application Storage Actual storage used by the application
  10. 10. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store)
  11. 11. Multiple pricing modelsStandard Storage vs. Reduced Redundancy Storage
  12. 12. AWS Regions and Availability Zones
  13. 13. 99.999999999%
  14. 14. 99.99%
  15. 15. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….)
  16. 16. Take all the Fixed Costs in to considerationCost Factors One-time Upfront Monthly AWS On-site On-site AWS On-site On- Backup DR Backup site Archive Archive DRServer Hardware 0 $$$ $$ $$ 0 0Network Hardware 0 $$ $$ 0 0 0Hardware Maintenance 0 $$ $$ 0 0 0Software OS 0 $$ $$ $ 0 0Power and Cooling and Data 0 0 $$ 0 0 $Center EfficiencyData Center/co-lo Space 0 $$ $$ 0 0 0Personnel (Administration) 0 $$ $$ $ $$ $$$Storage and Redundancy 0 $$ $$ $ 0 0Bandwidth $ $$ $ $$ $ $Resource Management 0 0 0 $$ $ 0SoftwareTotal
  17. 17. Storage Administration Costs
  18. 18. Traditional File Storage Systems Are Expensive To Buy And RunAugust 2011 “File Storage Costs Less In The Cloud Than In-House”
  19. 19. Cloud Storage Is More Straightforward And A Lot Cheaper Than Traditional StorageAugust 2011 “File Storage Costs Less In The Cloud Than In-House”
  20. 20. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings)
  21. 21. Pay less per unit when you use more
  22. 22. Massive economies of scale andefficiency improvements allow us to continually lower prices
  23. 23. AutomationDeployment
  24. 24. 19 price cuts in last 5 years“It makes me look so good in front of my CFO. When he [CFO]sees the savings in our AWS monthly bill, he thinks that it is mewho is working hard on driving the costs down and increasingefficiency of the company’s infrastructure. I get all the credit forall the hard work you guys are putting in.” CIO of F500 company Massive economies of scale and efficiency improvements allow us to continually lower prices.
  25. 25. Price cutsCloud Storage Costs of 100 TB $251,600 $195,100 August 2011 “File Storage Costs Less In The Cloud Than In-House”
  26. 26. Did you know?AWS Free Usage Tier Free Services Data Transfer New Customers Amazon EC2 (Linux & Windows) Amazon ELB AWS Elastic Beanstalk No Charge for Inbound Amazon S3 AWS CloudFormation Data Transfer Amazon EBS AWS IAM Auto Scaling No Charge for Data For all customers Consolidated Billing Transfer Between Services within a region Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more…
  27. 27. Expensive Tape Robot Library
  28. 28. TimedStorage-ByteHours = KilowattHour $0.125 GB/Month
  29. 29. When you turn off your cloud resources, you actually stop paying for them
  30. 30. Continuous optimization in your architecture results in recurring savingsas early as your next month’s bill
  31. 31. Individual developer has the power to save a ton of money for the company
  32. 32. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings) #5 Intangible Costs – Take a closer look at what you get as part of AWS
  33. 33. AWS delivers a premium security spec at non-premium pricesCertifications Physical Security HW, SW, Network SOC 1 Type 2 Datacenters in Systematic change (formerly SAS-70) nondescript facilities management ISO 27001 Physical access Phased updates strictly controlled deployment PCI DSS for EC2, S3, EBS, VPC, RDS, Must pass two-factor Safe storage ELB, IAM authentication at decommission least twice for floor FISMA Moderate Automated access Compliant Controls monitoring and self- Physical access audit HIPAA & ITAR logged and audited Compliant Advanced network Architecture protection
  34. 34. Reduced Time to Market = More Revenue
  35. 35. Opportunity Cost
  36. 36. When Comparing TCO…
  37. 37. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings) #5 Intangible Costs – Take a closer look at what you get as part of AWS
  38. 38. How customers are saving money with AWSAWS Economics CenterTCO WhitepapersCalculator ToolsCase StudiesOther Resources
  39. 39. AWS Pricing PhilosophyPay as you go• No minimum commitments or long-term contracts required• Capex -> Opex• Turn off when you don’t need itPay less per unit when you use more• Tiered Pricing and Volume DiscountsPay even less when you reserve• Reserved pricingPay even less as AWS grows• Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricingCustom Pricing
  40. 40. Thank you! Jinesh Variajvaria@amazon.com Twitter:@jinman

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