Amazon web services,

Group 9 Ankur Chetan Shashank Srivathsan Shriram

Viral can also create Headaches

What IT wants to do?

Develop Test Operate

What gets in the way??

Undifferentiated
heavy lifting
•Hardware failure
• Vendor delays
Develop Test • Personnel issues Operate
• Capacity issues
• Scaling
• Utilization
management
• Data center
outages
• Bandwidth issues

The dirty little secret!!

30% 70%

On-premise
Infrastructure

Cloud-based
infrastructure

70% 30%

Welcome to Amazon Web Services
Cloud About Amazon Services Pricing Case Study


What is Cloud ?

Cloud is a metaphor for the
internet, based on how it is
depicted in computer
network, diagrams and is
abstraction for complex
infrastructure it conceals


What is Cloud Computing?
From Engineering View
 Provide services on virtual machine
provided on lap of large physical machine

From Business View
 A method to address scalability for large
scale applications


What are its components?
CLIENT

INFRASTRUCTURE SERVICE

STORAGE APPLICATION

PLATFORM


Why cloud?
 Faster

 Scalable

 Available

 Productive


Who are using IT?


Who are offering IT?


Future..
Annual Global Market (USD billion)

51

16 14
7

Merrill Lynch: 2012 =
Microsoft Google Amazon Yahoo
the annual global
market for cloud
“There’s a whole industry computing will surge
emerging,” says Marc to $95 billion
Benioff, Salesforce.com’s CEO


About Amazon
• US Based multi-national electronic commerce company

• Launched by Jeff Bezos in 1994 and went online in 1995

• Headquartered in Seattle, Washington – largest American online
retailer
• Started as an online store, diversified to sell other products/services


What are Web services?
A web service is programmable application logic accessible via
standard Web protocols

 Available to a variety of clients (platform independent)

 Examples: stock quote, weather, and workflow, team
collaboration

 Makes building distributed applications easy

 They are self-contained modular applications that can be
published, located and invoked across the web


Web Services


Characteristics
Platform &
Language
independent

Dynamic
Interopera
application
bility integration
Web
services

Internet to
Machine- exchange
readable data and
description access
services


Why Web Services from Amazon
Retail Web infrastructure in 2003
• Was always available
• Had rock-solid reliability
• Enjoyed simple-APIs and conceptual models
• Was cost-effective
• Could scale up on demand to any level possible
• Could handle any spike level in usage

Werner Vogels, CTO and VP, Amazon


Seasonal Spikes


The ‘Risky Bet’


Business Verticals


Capacity Management
Challenge
 Difficult to predict how many new customers will come
 Client unsure of demand in initial phase
 Capacity needed for both new and existing customers
 Manage excess capacity

Measures:
 limited public beta releases
 Control number of user by opening up gradually
 Limited beta release used for EC2

AWS Start-Up Challenge & other
initiatives
 Use of Viral marketing to promote AWS

 Start-Up Challenge: A contest targeted at entrepreneurs and
developers.

 Partnership with companies like Facebook to increase visibility
of its offerings in developer community

 Blog and media coverage added credibility and increased
awareness


Infrastructure as a Service
Customer Applications and Services

Isolated
Monitoring Management Tools
Network Virtual
Cloud Watch Console .NET and Eclipse
Private Cloud

Messaging Content Payment On Demand
Simple Queue Delivery Flexible Work force
System (SQS) Cloud Front Payment Service Mechanical Turk

Compute Storage
Database
Elastic Compute Cloud Simple Storage Service
Simple DB
(EC2) (S3)


Simple Storage Service (S3)
 Interface for data storage and retrieval from Web.
• Content Storage and Distribution
• Storage for Data Analysis
• Backup, Archiving and Disaster Recovery

 Secured Storage

 Growth in 2 years : (2006 – 2008 )
• Unique objects : 800 million - 29 billion
• S3 processed 70000 requests/second


Datacenters


Elastic Compute Cloud (EC2)
 On Demand Resizable Cloud Computing Services.

 Easily scalable and works in conjunction with S3.

 Time required to obtain and boot servers reduced
to few minutes.


Simple DB
 Web service which provides real time look up and
querying of structured data.

 Easy to use when compared to sophisticated
relational database.

 Works in conjunction with S3 and EC2.

 Burden on individual organization to have a
database admin is reduced


Simple Queue Service (SQS)
 Intermediate Data message storage system

 Developers were able to move data between
distributed application components in a reliable
manner

 Eliminated the need of the components to be
available always


Flexible Payment Services (FPS)
 Designed for developers to collect funds electronically from
customers.

 Leveraged upon the negotiation power that Amazon.com had
with the credit card providers and bank processors.

 More features compared to PayPal:
AFPS allowed developers to define ,create and attach their own
payment instruction to be followed for each transaction.


AWS Premium Support
Silver Plan
 Technical support with response time within 4 hours to 2 business
days.
 Pricing : 0.1$ / $ of total amount spent on AWS services or
100$/month.

Gold Plan
 24 * 7 technical support with response time within 1 hour for
urgent issues.
 Pricing : 0.2$ / $ of total amount spent on AWS services or 400
$/month.


Amazon Virtual Private Cloud
Provides a seamless bridging between the
existing IT infrastructure and Amazon cloud.
Flexible : Allows user to define their own Virtual
Private Network.
- Security services
- Firewalls
- Intrusion Detection systems
Best of both worlds : User Datacentre + Cloud


Amazon Virtual Private Cloud


Interaction between components


Pricing Strategy
 Grow fast even at the expense of profitability
 Patience for free cash flow to generate
 Penetrate market as quickly as possible
• Develop infrastructure
• Commodity pricing; Price aggressively
 Free Usage Tier
 No upfront fee
 Flexible pricing models


EC2 Pricing Model
 Free standard service for one year for new customers

 On-Demand Instances - pay for compute capacity by the
hour with no long-term commitments

 Reserved Instances - low, one-time payment for each
instance you want to reserve

 Spot Instances - bid for unused Amazon EC2 capacity;
Instances are charged the Spot Price


SQS Pricing Model
 Free Tier for every customer

 Requests

 Data Transfer


S3 Pricing Model

 Data Transfer

 Requests


Simple DB Pricing Model

 Machine Utilization

 Data Transfer

 Structured Data Storage


Premium Support Pricing
• Silver Plan
– Pricing : 0.1$ / $ of total amount spent on
AWS services or 100$/month.
• Gold Plan
– Pricing : 0.2$ / $ of total amount spent on
AWS services or 400 $/month.


AWS Price Calculator


EC2 Price Comparison

CPU Memory DISK I/O Hourly Cost

Microsoft 1 x 1.6 GHz 1.75 GB 225 GB Moderate $0.12
Small Class
Amazon 1 x 1.6 GHz 1.70 GB 160 GB Moderate $0.12
Microsoft 4 x 1.6 GHz 7.00 GB 1000 GB High $0.48
Large Class
Amazon 4 x 1.6 GHz 7.50 GB 850 GB High $0.48
Microsoft 8 x1.6 GHz 14.0 GB 2048 GB High $0.96

XL Class Amazon 4 x 2.2 GHz 15.0 GB 1690 GB High $0.62
Amazon 2 x 3.2 GHz 17.1 GB 420 GB High $0.62


Total Cost of Running


New York Times
Challenge :
Convert the papers from 1851 to 1980 in digital format in
less time.

Method :

- Simple code on EC2 to read the data and store it in S3.

- 1.5 terabytes of data in S3 for public use.

Time taken < 24 hrs with AWS.


Windows Vista
• Microsoft used S3 to distribute copies of its
Vista Software.
• Distribution of Windows Vista beta instances
• Server Crashes due to high load
• More than a million copies downloaded a
day


Intuit
• Faces sudden surges of activity
• Compliance and Legal issues
"Every year, we take the busiest minute of the busiest hour of the
busiest day and build capacity on that, We built our systems to (handle
that load) and we went above and beyond that."


Animoto
• Animoto : Online Video Making Application from Your Photos.
• Viral growth from 2008 when available on Facebook .
• Peak Traffic Rate surged to 250,000 users /hour.
• Moved to AWS and added 750,000 new sign up in just 3 days.


SmugMug
• Small Startup Service
- Start up Online photo sharing and
storage services.
– Used S3 to back up stored images.
– SmugMug currently stores 2 PetaByte
(10^15 B) of photos in S3.


Network Diagram

Cloud Businesses
Service /Develope
Providers rs

End User


Conclusion
From Amazon’s point of view
 It’s all about long-term
 To maintain leadership position in cloud
computing

From Startups, SME business’s point of view
 Lower computing costs
 Scalable
 Improved performance
 Unlimited Storage capacity


Thank You

Amazon web services,

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