AWS Summit 2013 | Auckland - Opening Keynote

Auckland
Transformation Powered by the AWS Cloud
Dr. Werner Vogels
CTO, Amazon.com
@werner
Thursday, June 6, 13

Our largest AWS Summit series, ever.
Auckland
Over 20,000 people registered

Seven years young
Amazon S3 launched: March 14th 2006

33 services spanning
compute, storage, database
and application management

100,000s of customers,
across 190 countries.

Here and
abroad

Over 14,000 AWS customers in Australia & New Zealand …

Customers in New Zealand …

A wide range of technologies

Consulting Partners Technology Partners

AWS Marketplace: Buy Software Pre-Configured to Run on AWS
Growth since Jan 1, 2013
25 categories
778 product listings
Active customers
Usage per customer
102%
53%

Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
More AWS
Usage
More
Infrastructure
Economies
of Scale
Lower
Infrastructure
Costs
Reduced
Prices
More
Customers

34 Price
Reductions
Since 2006
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
More AWS
Usage
More
Infrastructure
Economies
of Scale
Lower
Infrastructure
Costs
Reduced
Prices
More
Customers

Customer Infrastructure Audits:
Saves money
Improves availability
Closes security gaps
Increases performance
Recent Performance:
329,000 recommendations
$22M in annualized savings
AWS Trusted Advisor

2007 2008 2009 2010 2011 2012
159
82
61
48
24
9
Including:
AWS Oregon Region
Elastic Beanstalk (Beta)
Amazon SES (Beta)
AWS CloudFormation
Amazon RDS for Oracle
AWS Direct Connect
AWS GovCloud (US)
Amazon ElastiCache
VPC Virtual Networking
VPC Dedicated Instances
SMS Text Notification
Including:
Amazon SNS
Amazon CloudFront
Amazon Route 53
S3 Bucket Policies
RDS Multi-AZ Support
RDS Reserved Databases
AWS Import/Export
Including:
Amazon RDS
Amazon VPC
Amazon EMR
EC2 Auto Scaling
EC2 Reserved Instances
Including:
6 new Direct Connect Sites
DynamoDB
RDS in VPC
AWS Trusted Advisor
CloudFormation in VPC
AWS Storage Gateway
Amazon Glacier
Cost Allocation Tagging
CloudFront Live Streaming
Amazon CloudSearch
AWS Marketplace
Red Hat Reserved Instances
New EC2 Instance Types
Multi-AZ Oracle RDS
RDS SQL Server
EC2 RI Marketplace
VM Export
Multiple IPs in VPC
Provisioned IOPS
Oracle Data Pump
New APAC Region - Sydney
AWS Data Pipeline
AWS Pace of Innovation

AWS Pace of Innovation
January February March April May
2019
21
18
14
Including:
AWS Management Console
Tablet and Mobile Support
Elastic Transcoder
Price reduction for Amazon
EC2, global expansion of M3
Standard Instances, and
reduced data transfer pricing.
92 New Service Announcements
and Updates so far in 2013
Including:
Amazon Redshift Available to
All Customers
AWS OpsWorks
IAM Role and Auto Scaling
Support for Amazon
CloudWatch Monitoring
Scripts for Linux
Amazon SQS and SNS
Announce Lower Prices and
Expanded Free Tiers - 50%
price drop for SQS
Including:
New Lower Pricing for
Amazon EC2 Reserved
Instances
AWS Free Usage Tier
Now Includes Amazon
ElastiCache
Amazon DynamoDB
Reduces Prices
AWS Elastic Beanstalk for
Node.js
Amazon RDS now
supports 3TB and 30,000
Provisioned IOPS per
database instance
Announcing EBS-
Optimized Support for
Additional Instance Types
Including:
Amazon Redshift and EC2
High Storage instances in
US West (Oregon)
Lower request pricing for S3
EC2 tags console page
Price reduction for Windows
On-Demand EC2 instances
AWS Elastic Beanstalk
supports VPC and IAM Roles
Secondary Indices for
DynamoDB
Global Certification Program
Including:
New Edge Location in Seoul,
Korea
GA of Node.js SDK
4000 IOPS per EBS volume
AWS Direct Connect in
Seattle
OpsWorks launches
CloudWatch metrics and ELB
support
Parallel scan and lower cost
reads for DynamoDB
7 new features for Elastic
Transcoder

Amazon S3: Over 2 Trillion Total Objects
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
1.1M peak
requests/sec

Amazon Elastic MapReduce: Clusters launched by customers
5.5 M clusters
launched since May 2010

0
1,500,000
3,000,000
4,500,000
6,000,000
5/22/2010
7/3/2010
8/14/2010
9/25/2010
11/6/2010
12/18/2010
1/29/2011
3/12/2011
4/23/2011
6/4/2011
7/16/2011
8/27/2011
10/8/2011
11/19/2011
12/31/2011
2/11/2012
3/24/2012
5/5/2012
6/16/2012
7/28/2012
9/8/2012
10/20/2012
12/01/2012
1/12/2013
2/23/2013
4/6/2013
Amazon Elastic MapReduce: Clusters launched by customers
5.5 M clusters
launched since May 2010

Amazon DynamoDB
Consistent, high performance with unlimited scale
Managed non-relational database

Hash key Attribute 1 Attribute 2 Attribute n
Attributes indexed by a primary hash key.

Range keys for additional flexibility.
Hash key Range key Attribute 1 Attribute n

Range keys for additional flexibility.
Customer ID Date
Delivery
postcode
Total value

Customer ID Date
Delivery
postcode
Total value
Improve query flexibility and efficiency, while reducing read cost.
Announcing: Local Secondary Indexes
for Amazon DynamoDB

Amazon DynamoDB
Transforming architectures

The most radical and transformative of
inventions are those that empower
others to unleash their creativity -
to pursue their dreams
“
”
Jeff Bezos, Letter to Shareholders, 2012

Transformation:
What drives it?
Who is doing it?
What is next?

Economic drivers Abundance of products
Intensifying competition
Growing consumer power
Reduced customer loyalty
Limited capital
Q
$
D
S

Uncertainty

Addressing Uncertainty Acquire resources on demand
Release resources when no
longer needed
Pay for what you use
Leverage other’s core
competencies
Turn fixed cost into variable

The benefits of cloud computing.

1. Trade Capital Expense for Variable Expense
$0 to get started
Pay as you go
Saved $34M on
SmartHub app

2. Lower Variable Expense Than Companies Can Do Themselves
Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.” July 2012
70% lower 5 year TCO per app
AWS
On-
premises
$3.01M
$0.90M
50% reduction in
analytics costs

3. You Don’t Need to Guess Capacity
Self
Hosting
Waste
Customer
Dissatisfaction
Actual demand
Predicted Demand
Rigid
Actual demand
Elastic

Typical Weekly Traffic to Amazon.com
Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Typical Weekly Traffic to Amazon.com
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
39%
61%

November Traffic for Amazon.com

November Traffic for Amazon.com
76%
24%

November 10th, 2010
October 31, 2011

Old World:
Infrastructure in Weeks
4. Dramatically Increase Speed And Agility
AWS:
Infrastructure in Minutes
# of Instances 1,000
Instance Type M3 X-Large
Availability Zone US-West-2b
Launch
aws.amazon.com/managementconsole

Increase Innovation When The Cost of Failure Approaches Zero
Old world: AWS:
Experiment infrequently
Failure is expensive
Less innovation
Near $0
Experiment often
Fail quickly at a low cost
More innovation

5. Stop Spending Money on Undifferentiated Heavy Lifting
so you don’t have to...We take care of...
Data Centers
Power
Cooling
Cabling
Networking
Racks
Servers
Storage
Labor
buy and install new hardware
set up and conﬁgure new software
build new data centers

6. Go Global In Minutes

1. Trade capital expense for variable expense
2. Lower variable expense than companies can do themselves
3. You don’t need to guess capacity
4. Dramatically improved speed and agility
5. Stop spending money on undifferentiated heavy lifting
6. Go global in minutes
The Benefits of Cloud Computing

The Foundation for
21st Century Architectures

awsofa.info

Old world
Development
Experimentation
Flexibility
Years
$$$
Rigid
Availability Scarce

Old world
Development
Experimentation
Flexibility
Years
$$$
Rigid
Availability Scarce
AWS
Minutes
$0.00
Elastic
Plentiful

Nathan Smith
Senior Architect

Humble Beginnings
21/11/2005

Rich Internet Applications

Launched in 2009
Investors include:
Sam Morgan
35 staff in K Road
25 million registered
players

20 - 100 ec2 instances
15,000 memcached ops/
second
5,000 database ops/second
75 terabytes of traffic/month

20 - 100 ec2 instances
15,000 memcached ops/
second
5,000 database ops/second
75 terabytes of traffic/monthx2

Dedicated hosting was failing
Slow to add capacity
Poor utilization
Lack of automation and control
Outages L

Migration to AWS
High I/O requirements
Software RAID
Database sharding
Provisioned iops
DB Cluster
DB Cluster

Management Node
/ Shared NFS
App Servers World Servers
DB Cluster Simple DB
Memcached
Cluster
UsersAdministrators
CloudFront
S3

Auto Scaling
Scale with conﬁdence
Cut daily costs

2011$05&2011$06&2011$07&2011$08&2011$09&2011$10&2011$11&2011$12&2012$01&2012$02&2012$03&2012$04&2012$05&2012$06&2012$07&2012$08&2012$09&2012$10&2012$11&2012$12&2013$01&2013$02&2013$03&2013$04&
Infrastructure Cost Per MAU May 2011 - April 2013
68%

What's next?
Architecture improvements
Logging and EMR
Enhanced monitoring
Reserved instances
New games

Every industry.

Every industry.
TRANSFORMED

Media & Advertising
TRANSFORMED

1950 1960 1970 1980 1990 2000 2010
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Print Only
Including Online
Millions of 2012 Dollars
Newspaper Advertising Revenue
Adjusted for Inflation, 1950 to 2012
Source: Newspaper Association of America
Carpe Diem Blog

Media and Advertising
New ways to monetize content
Competitive landscape changing
Highly competitive
Driven by data

Financial Services
TRANSFORMED

Financial Services
Extreme competition
New products and instruments daily
Rapid development and delivery
Rapid experimentation

Stringent regulatory, compliance
and security requirements.

Peter Fletcher
Chief Information Officer
Westpac

:
92
Westpac on AWS

:
93
Business Challenges
• Leading banking in New Zealand
• Digital technologies are changing the shape of our industry:
• Mass adoption of smart mobile technology
• New competitors into financial services
• Customer preference to use digital channels continues to grow
• Expectations are evolving rapidly for simple, easy, yet functionality rich and
secure applications
• Innovating and speed of delivery to match customer transition to digital self serve
and sales

:
• Delivering to innovation and customer demand without expensive / long re-
platforming programmes
• Cultural transformation to agile and innovation without losing the focus on security
and risk
• Maximising capital investment
• Embracing new technologies which challenge conservatism within our industry
Opportunities
94

:
What we have been doing
95
Cash Tank (NZ first) New public website
(monthly innovation)
HomeClub (NZ first)
NZ’s Home buying club World leading, customer
centric security (NZ first)
NZ’s first and only dedicated
iPad banking app
Simple, friendly Mobile
banking Apps
In 2013, a new way to bank
with Westpac is on its way …

:
• Starting with a world leader
• Maximizing value from our technical investment
• Speed of innovation
Why Amazon Web Services?
96

:
What we did
97
We stood up a new instance our Content
Management System for the www.westpac.co.nz in
under 2 weeks

:
• Finding the right AWS tools to use and working out how to use them
• Getting auto-scaling triggered in a reliable and effective manner
• Optimising latency
• Working with variable operating costs
• Ability to automate more of the process
Outcomes / Learnings
98

:
• Understand how to manage cloud based services
• Explore and test the proof-of-concept implementation
• Work with Silverstripe & Amazon on challenges
• Understanding Westpac’s information security posture within Amazon
• Cost out the productionisation of SilverStripe CMS for www.westpac.co.nz
• How to integrate the capability into the rest of Westpac’s capabilities
• Get on with leading our industry!
Where to from here?
99

:
100
9
Thanks …..
and have you made a donation to the chopper appeal?

Research & Health Care
TRANSFORMED

Health care & biotechnology
Huge impact
Rapid innovation
Collaborative on a global scale

1000 Genomes Project
250 TB of data
~2000 complete genomes
Available to all, via S3

Energy
TRANSFORMED

Energy, oil and gas
Huge organizations
Strive for agility
Hundreds of developers
IT is a fundamental component

Environmental Science
TRANSFORMED

POWERFUL
WEATHER
INTELLIGENCE.POWERFUL
WEATHER
INTELLIGENCE.
Cloud
CompuMng
with
a
golden
lining
–
growing
IT

Alistair Vickers
CIO, Information Services Group
Craig Roach
Enterprise Solutions Architect
Meteorological Service of New Zealand Limited

POWERFUL
WEATHER
INTELLIGENCE.
MetService
is
unique
as
a
NaMonal
Meteorological
Service
that

is
able
to
balance
being
a
fully
commercial
operaMon
with

provision
of
second-‐to-‐none
public
weather
services.
We
leverage
our
unique
combinaMon
of
scienMﬁc
rigour
and

inquisiMve
agility
to
fuel
on-‐going
innovaMon
across
the

business
and
proﬁtably
grow
revenue.
MetService
-‐
a
unique
balance

POWERFUL
WEATHER
INTELLIGENCE.

POWERFUL
WEATHER
INTELLIGENCE.
Computer
models
(objecMve
numerical
forecasts)
ObservaOons
(what’s
happening
now?)
The
Forecast
Weather
ForecasMng
101
Skilled
people
(Expert
interpretaMon,
informaMon
synthesis,
experience,
tailored
presentaMon)

POWERFUL
WEATHER
INTELLIGENCE.
How
we
compare
to
other
NMS

POWERFUL
WEATHER
INTELLIGENCE.
• SupporMng
a
growing
global
business
• MeeMng
and
delivering
to
customer
needs
• Managing
a
rapidly-‐changing
environment
• Controlling
IT
spend
to
maximise
value
to
the

business
• InnovaMng
market-‐leading
soluMons
Business
Challenges

POWERFUL
WEATHER
INTELLIGENCE.
• Ensuring
public
safety
in
NZ
• CompeMng
internaMonally
with…
ØNear
real-‐Mme
user
experience
ØLow
latency
trading
data
ØSuperior
forecast
accuracy
• Weather
model
research
and
development
Current
AWS
iniMaMves

POWERFUL
WEATHER
INTELLIGENCE.
Ensuring
public
safety:
Web
Backups

Tropical
cyclone
guidance
Aviation
Volcanic ash
Land, marine &
mountain warnings

POWERFUL
WEATHER
INTELLIGENCE.
Amazon
CompeMng
InternaMonally:
User
Experience
International
Weather Sensing
Network
WebSocket
Connectors
Lightning: ~250msRadar: ~15s
Surface: ~5s
MetService NZ
Forecasts: 5m

POWERFUL
WEATHER
INTELLIGENCE.
• The
two
premier
global-‐scale
weather
models
(ECMWF
and

GFS)
move
the
demand-‐side
energy
market.
• MetraWeather
competes
to
translate
global
model
output
into

decision
making
tools
for
energy
traders
faster
than
any
other

commercial
supplier.
• 100ms
is
a
long
Mme.
• Simply
cannot
play
in
the
market
from
NZ.
• Need
fast
connecMons
and
lots
of
compuMng
power.
• Amazon
EC2
is
a
key
component
of
our
architecture.
CompeMng
InternaMonally:
Low
Latency
Trading


POWERFUL
WEATHER
INTELLIGENCE.
• MetService
uses
mulMple
high-‐resoluMon
global

ensembles.
• A
single
global
model
generates
tens
of
GB/hr.
• Currently
using
Amazon
EC2
to
pre-‐process
data
close
to

supercompuMng
centre.
Reduces
volume
by
factor
of
10.
• Research
into
doing
operaMonal
meso-‐scale
modelling
and

staMsMcal
processing
on
Amazon
EC2
is
under
way.
CompeMng
InternaMonally:
Superior
Accuracy

POWERFUL
WEATHER
INTELLIGENCE.
• Unlike
operaMonal
forecasMng,
this
means
conducMng
lots
of

long-‐running
experiments
in
parallel
as
cost-‐eﬀecMvely
as

possible.
• MetService
recently
completed
an
8
week
research
project
to

increase
temperature
forecast
accuracy
in
an
internaMonal

market.
Used
135
days
of
computaMon
over
an
elapsed
56
days.

With
hardware
available
in
house,
project
would
have
taken
two

or
three
Mmes
longer.
• Mainly
used
Spot
pricing
for
project.
EsMmate
this
provided
a

factor
of
ten
saving
over
On-‐Demand,
with
minimal
Mme
penalty.
Weather
Model
Research
&
Development

POWERFUL
WEATHER
INTELLIGENCE.
The
future
for
MetService
and
AWS
What else should
we move from
our data centres
to the cloud ?
Are there good
reasons why this
project shouldn’t
deploy to the
cloud ?
Preliminary answers:
• A few systems need Kelburn instances.
• Many systems must run in the cloud to be competitive.
• For most of the others, AWS looks very promising.

POWERFUL
WEATHER
INTELLIGENCE.
POWERFUL
WEATHER
INTELLIGENCE.

Hospitality
TRANSFORMED

Hospitality
Rapid growth
Cost conscious
IT is undifferentiated heavy lifting
A ‘long tail’ from B&B to boutiques

Rapid growth and huge opportunities
for online engagement.

Focus on the customer

Big Data
The move to real time information
Deeper integration
Vertical application of analytics
Hadoop will become invisible

Amazon Redshift
Fast, fully managed, petabyte scale
data warehouse service.

Amazon Redshift
Fast query and IO performance
Encrypted data and backups. Supports VPC.
Compatible with existing SQL and BI tools.
24 spindle instances for parallel data access.
< $1000 per TB per year.

Connected Devices
Incredible data generators
Device and content are independent
Increasing workforce mobility

Security & Privacy

Readily available encryption services
to protect your customers.

Readily available encryption services
to protect your customers.
Hardware security modules
AES-256 encryption
SSL for data in transit
IAM federation
Private subnets
VPC by default Key rotation
Multi-factor authentication
SOC 1 & 2
SAS70 Type II
FISMA moderate
ITAR
HIPAA
DIACAP
FedRAMP
PCI DSS Level 1
ISO 27001

AWS CloudHSM - Hardware Security Module in the Cloud
AWS
CloudHSM

AWS CloudHSM Service Highlights
• Secure Key Storage – customers retain control of their own keys and
cryptographic operations on the HSM
• Contractual and Regulatory Compliance – helps customers comply with
the most stringent regulatory and contractual requirements for key
protection
• Reliable and Durable Key Storage – AWS CloudHSMs are located in
multiple Availability Zones and Regions to help customers build highly
available applications that require secure key storage
• Simple and Secure Connectivity – AWS CloudHSMs are in the
customer’s VPC
• Better Application Performance – reduce network latency and increase
the performance of AWS applications that use HSMs

Continually extend our
security options.

Amazon RDS for Oracle
Transparent Data Encryption and
Native Network Encryption.

Thank you.
werner@amazon.com

Morning Agenda
10:40
–
11:20 Morning
TeaMorning
TeaMorning
Tea
11:20
–
12:00 Breakout
Session
1
Your
First
Week
with
Amazon

EC2

Case
Study:
Bio
MaFers
Breakout
Session
2
Stripping
the
Cost
of
Travel

(and
IT)
through
a
robust
eCommerce

Architecture
in
the
Cloud
Breakout
Session
3

Big
Data
AnalyOcs
Case
Study:
PikPok

12:10
–
12:50 Extending
your
Datacenter
with

Amazon
VPC

NetApp
Private
Storage
for
AWS:

Presented
by
NetApp
Technical
Lessons
on

How
to
Do
Backup
and
Disaster

Recovery
in
the
Cloud

12:50
–
1:50 Lunch
and
SoluOons
PavilionLunch
and
SoluOons
PavilionLunch
and
SoluOons
Pavilion

2.00
–
2:40 Breakout
Session
1
ConOnuous
Development

PracOces,
with
ProducMon,
Test

and
Development
Environments

Running
on
AWS.
Case
Study:
CricHQ
Breakout
Session
2
Archiving
SoluOons
on
AWS,

Presented
by
Iconz
Webvisions
Breakout
Session
3

Understanding
AWS
Storage
OpOons
2:50
–
3:30 Scalable
Media
Processing

on
the
Cloud
Case
Study:
FutureTech
10
AWS
Black
Belt
Tips ArchitecOng
for
High
Availability
3:30
–
4:00 Tea
BreakTea
BreakTea
Break
4:10
–
4:50 OpOmizing
Your
AWS

ApplicaOons
and
Usage

to
Reduce
Costs

Case
Study:
Fishpond
Powering
Start-‐ups
with
AWS Building
Web
Scale
ApplicaOons
with

AWS

Case
Study:
EROAD
5.00
–
7.00 Cocktail
FuncMon
in
the
SoluMons
PavilionCocktail
FuncMon
in
the
SoluMons
PavilionCocktail
FuncMon
in
the
SoluMons
Pavilion
Afternoon Agenda

AWS Summit 2013 | Auckland - Opening Keynote

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