Unblocking Innovation for Digital Transformation

1. © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.S U M M I T
Unblocking Innovation for Digital
Transformation
Thomas Blood
Enterprise Strategist
AWS
Wim Som de Cerff
Researcher data technology
KNMI

2. OLD WORLD IT
Employees at work
Factories + supply chainSales channels
Marketing analytics

3. Employees at work
Factories + supply chainSales channels
Marketing analytics
OLD WORLD IT
NEW WORLD IT

4. NEW WORLD IT Employees at work
Factories +
supply chain
IoT connected
things
Online
marketing
Continuous supply
tracking
Just in time
production
Online sales
+ delivery
Social media

5. Personalization
Customer tracking
New channels direct to customer
More things, more scale, rapid change
New Needs

6. “Through 2021, 75% of digital leaders will
dominate a disruptive market segment that
did not exist prior to their ascendance…
disruption will become the norm.”
—Gartner Predicts 2018,
21 December 2017

7. AWS: Unblocking
Innovation for Digital
Transformation with
Enterprise Customers

8. AWS Enterprise Customers

9. Digital Transformation Is Key
To Survival For Enterprises

10. Blockers for Innovation
Culture Skills Organization Finance
Leadership
Systems and
Feedback
Training and
Compensation
Move from
Projects
to Product
Teams
Capex
Versus
Opex

11. Centralized decision making
Lack of trust
Inflexible policies and processes
Leadership Systems
and Feedback

12. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Stephen Orban
Ahead in the Cloud
Mark Schwartz
A Seat at the Table
Leadership systems
and feedback

13. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
If you want to build a ship, don’t drum up
the people to gather wood, divide the
work, and give orders. Instead, teach them
to yearn for the vast and endless sea.
Antoine de Saint-Exupéry
Author of Le Petit Prince (The Little Prince)
Culture

14. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Nordstrom Technology NorDNA Culture Deck
Culture

15. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
• Customer
obsession
• Ownership
• Invent and
simplify
• Are right, a lot
• Hire and develop
the best
• Insist on the
highest standards
• Think big
• Bias for action
• Frugality
• Learn and
be curious
• Earn trust
of others
• Dive deep
• Have backbone;
disagree and
commit
• Deliver results
Amazon
leadership
principles
Culture

16. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Intentional
Appropriate
Judgement
Culture

17. Blockers for Innovation
Culture Skills Organization Finance
Leadership
Systems and
Feedback
Training and
Compensation
Move from
Projects
to Product
Teams
Capex
Versus
Opex

18. Train existing staff on cloud tech
Fund pathfinder teams
Be prepared to pay more to keep the
best people after training!
Training and
Compensation

19. Blockers for Innovation
Culture Skills Organization Finance
Leadership
Systems and
Feedback
Training and
Compensation
Move from
Projects
to Product
Teams
Capex
Versus
Opex

20. Move from Projects
to Product Teams
Long term product ownership
Continuous delivery
DevOps and “run what you wrote”
Reduce tech-debt and lock-in

21. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Move from projects
to product teams
The Phoenix Project
The DevOps
Handbook
By Gene Kim and
others

22. Blockers for Innovation
Culture Skills Organization Finance
Leadership
Systems and
Feedback
Training and
Compensation
Move from
Projects
to Product
Teams
Capex
Versus
Opex

23. Datacenter to Cloud
Waterfall to Agile and DevOps
Understand the impact
Plan ahead, don’t surprise the CFO
Capex Versus Opex

25. European Natural Airborne Disaster Information and Coordination System for Aviation.
The EUNADICS-AV project has received funding from the European Union’s Horizon
2020 research programme for Societal challenges - smart, green and integrated
transport under grant agreement no. 723986

26. 26
Goal:
prototype system for providing the
aviation community with tailored
information on volcano eruptions,
forest fires, nuclear accidents and
desert dust.
Objectives data platform:
1) Collect relevant data
2) Harmonize data
3) Provide data to aviation community.
4) Archive data during events
The services include specific domain
protocols to connect to e.g. flight planning
systems, but also visualizations to
provide the information directly to pilots.

27. Need:
Development environment for our team
Blocker: vCloud environment deprecation
Aging, unstable hardware,
high cost of replacement (H/W, Licences)

28. Need:
Deployment environment for our team
Blocker: time needed
3 months for getting a VM
Security
Architect
Linux
VMWare
Access control (Exchange)
VM
Linux
Apache
IT provider departments:
Ticket request
network

29. Starting on AWS, solved these blockers!
…but using not AWS full potential
First version of platform

30. 17 april 2019
Koninklijk Nederlands Meteorologisch Instituut 30
Opportunity: AWS PoC Program!!

31. 31
Next Step:
Outcome:
Data processing: Replaced by Cloud Native
Data visualization: Work around (Storage Gateway)
But also discovered:
- Infrastructure as a code. Easily share configurations
àNo need any more for a own vCloud environment.
- CI/CD
- Developer confidence

32. 32
As presented by our team

34. Pathway for Digital
Transformation
Speed Scale Strategic
Time to
Value
Distributed
Optimized
Capacity
Critical Workloads
Datacenter
Replacement
!

35. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
The fast
companies are 440x faster than
the slow
Months Hours
We found that, compared to low performers, high performers have:
46 times more frequent code deployments
440 times faster lead time from commit to deploy
170 times faster mean time to recover from downtime
5.0 times lower change failure rate (1/5 as likely for a change to fail)
Time to value
https://itrevolution.com/book/accelerate/

36. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Time to value (2018 DORA Report)
The elite
companies are 2555x faster than
the slow
The elite are moving further ahead …
We found that, compared to low performers, high performers have:
46 times more frequent code deployments
2555 times faster lead time from commit to deploy
2604 times faster mean time to recover from downtime
7 times lower change failure rate (1/7 as likely for a change to fail)
https://itrevolution.com/book/accelerate/

37. Pathway for Digital
Transformation
Speed Scale Strategic
!
Time to
Value
Distributed
Optimized
Capacity
Critical Workloads
Datacenter
Replacement

38. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Highly scaled
Distributed for availability
Cost-optimized high utilization
Cloud-native architecture
Distributed optimized capacity

39. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Pay as you go, afterwards
Self service – No waiting
Globally distributed by default
Cross-zone/region availability models
High utilization – Turn idle resources off
Immutable code deployments
Cloud-native principles

40. Cloud Native Architecture
Principles and Practices

41. Datacenter Native
DATACENTER
Architecture

42. Infrastructure
Datacenter Native
Architecture
Lives for years
DATACENTER

43. Cloud Migration
Pay as you go
DATACENTER
Applications and data
Pay up front and
depreciate over
three years
Pay a month later
for the number of
seconds used

44. Cloud Native Principle
Pay for what you used last month
Not what you guess you will
need next year

45. Cloud Native Principle
Self service, API driven, automated
Move from request tickets at every
step to a tracking ticket that records
what happened

46. Cloud Native Principle
Instant globally distributed
deployments and data by default

47. Elasticity
DATACENTER
Hard to get over 10% utilization—
need extra capacity in case of peak
CLOUD
Target over 40% utilization—
no capacity overload issues

48. Autoscaling for predictable heavy workloads
Serverless for spiky workloads with idle periods

49. Cloud Native Principle
Turn it off when it’s idle
Many times higher utilization
Huge cost savings
Avoids capacity overloads

50. Cloud Native Principle
Immutable code
Automated builds
Ephemeral instances, containers, and functions
Blue–Green deployments
Versioned services

51. Pay as you go, afterwards
Self service—no waiting
Globally distributed by default
Cross-zone/region availability models
High utilization—turn idle resources off
Immutable code deployments
Cloud Native Principles

52. Pathway for Digital
Transformation
Speed Scale Strategic
!
Time to
Value
Distributed
Optimized
Capacity
Critical Workloads
Datacenter
Replacement

53. !
Core Banking
Industrial Control Systems
Transport
Healthcare
Critical Workloads
Datacenter Replacement

54. How do you know if you
have a good architecture
for critical systems?
Ask some
awkward questions…

55. What should
your system
do when
something
fails?
Stop?
Carry on with reduced
functionality?

56. How often do you
failover apps to it?
How often do you failover the
whole datacenter at once?
“Availability Theater”
What should
your system
do when
something
fails?
Do you have
a backup
datacenter?

57. A fairy tale…
Once upon a time, in theory, if everything
works perfectly, we have a plan to survive
the disasters we thought of in advanceHow did that
work out?

58. Datacenter flooded in hurricane Sandy… Finance company, Jersey City
Didn’t update security certificate and it expired… Entertainment site
Forgot to renew domain name… SaaS vendor
Whoops! YOU, tomorrow

59. “You can’t legislate against
failure, focus on fast
detection and response.”
—Chris Pinkham

60. How is it
supposed to
recover after
the failure
goes away?
What is
supposed to
happen when
part of the
system fails?

61. Chaos Architecture
A Cloud Native
Availability Model

62. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
A fire drill is a boring
routine where we make
everyone take the stairs
and assemble in the
parking lot
People
training
!

63. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Fire drills save lives in
the event of a real fire,
because people are
trained how to react
People
training

64. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Infrastructure
Switching
Application
People
Who runs the
“fire drill” for IT?

65. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Infrastructure
Switching
Application
People
Chaos
engineering
team

66. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Chaos testing ensures that you have:
Experienced staff
Robust applications
Dependable switching fabric
Redundant service foundation

67. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Expensive and custom disaster recovery
is being replaced by low-cost, portable,
automated chaos engineering

68. Failures are a
system problem—
lack of safety margin
Not something with a root cause
of component or human error

69. Hypothesis testing
We think we have safety margin in this
dimension, let’s carefully test to be sure
In production
Without causing an issue

70. Experienced Staff
Robust Applications
Dependable Switching Fabric
Redundant Service Foundation

71. Pathway for Digital
Transformation
Speed Scale Strategic
!
Time to
Value
Distributed
Optimized
Capacity
Critical Workloads
Datacenter
Replacement

72. Thank you!
S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.
Thomas Blood
@groberstiefel
https://www.linkedin.com/in/thomasblood/
https://aws.amazon.com/blogs/enterprise-strategy/

73. S U M M I T © 2019, Amazon Web Services, Inc. or its affiliates. All rights reserved.