1. How much can
your organization
save with AWS?
Dan Rogers
Head of Global Demand Gen.
October 10th 2012

8. How does the IT cost
model change with AWS?

9. Wasted Wasted
Demand Capacity Capacity
Maintaining 600k
on-premise
infrastructure Wasted
Capacity
for peak 300k
demand is Wasted
Lost Customers,
Order Hardware
Capacity
expensive 200k
Capacity of Resources
Actual Demand
Q1 Q2 Q3 Q4 Q1
Time

10. AWS enables Demand
companies to 600k
match resources
to demand
300k
AWS
Demand
200k
Q1 Q2 Q3 Q4 Q1
Time

11. TCO Calculator

13. Towards a more accurate cost model:
Servers • For a 3-5 year time frame, yes
depreciated servers do have a real cost
• Use Heavy Utilization Reserved Instances
for Apples to Apples comparisons
• Maintenance starts at 10%- don’t forget
you software maintenance costs

14. Towards a more accurate cost model:
• Utilization rarely exceeds 60%
Storage • What about backups?
• 3 Copies of your data in 3 different
Datacenters

15. Towards a more accurate cost model:
• Buying for capacity means waste
Network • There are administration costs and
hardware costs for your network
• Using more bandwidth gets less
expensive in AWS

16. Towards a more accurate cost model:
• Renting floor space is a waste of money
Environment • With Colocation providers – you are
buying less than a full rack
• Datacenters were built for last decade’s
equipment – prepare for upcharges

17. Towards a more accurate cost model:
• Hardware requires specialty skillsets at
premium rates
Administration
• Lack of automation options = more labor
• 4X improvement in server to admin ratio
going to AWS