When customers think about moving to the cloud, one of their first considerations is cost. AWS helps lower customer costs through its “pay only for what you use” pricing model. In this session, we explain our TCO analysis methodology and explore the financial considerations of owning and operating a traditional data center or managed hosting provider compared with using AWS services. Customers also share their processes for developing the right cost savings and optimization model.

1. © 2015, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Mike Chapple, Ph.D., Senior Director, IT Service Delivery – University of Notre Dame
Bob Micelli, Director of Enterprise Technology Services – King County, Washington
Blake Chism, Professional Services Practice Manager – AWS
ISM205
A Framework for IT and
Business Transformation
October 2015

2. What to Expect from the Session
• Overview of the process for cloud IT and business transformation
• Detailed discussion of the following requirements:
• Business case
• People model
• Cloud architecture
• Migration strategy
• Operating model
• Customer best practices and lessons learned:
 King County, Washington
 University of Notre Dame
• Next steps for your journey to the cloud

3. Transformation
How do we get from this… …to this?

4. AWS Cloud Adoption Framework
Planning, creation, management,
and support for your cloud
environment.
Guidance for establishing,
developing and running AWS
environments.
Structure where business and IT can
work together toward a common
strategy and vision.
People
Perspective
Process
Perspective
Security
Perspective
Maturity
Perspective
Platform
Perspective
Operations
Perspective
Business
Perspective
AWS Cloud Adoption Framework: https://d0.awsstatic.com/whitepapers/aws_cloud_adoption_framework.pdf

5. Cloud Adoption Maturity Model
Stage 1 Stage 4Stage 3Stage 2
Exploration OptimizationImplementationAlignment
LevelofMaturity
• Proofs of
Concept
• Quick Wins
• Scattered
Accounts
• Little
Structure
• Cloud
Operating
Model
• Business
Innovation
From IT
• Cost
Optimization
• Major
Migrations
• Cloud
Native
Workloads
• Full
Business
Alignment
• Cloud
Strategy
• People Model
• Application
Assessment
• Formalized
Agreements

6. Business Case
Build your Business Case for AWS based on:
• Accurate total cost of operation (TCO) data
• Current and future business requirements
• Optimized AWS architecture
• Total cost of migration (TCM)*
*Breaking Down the Economics and TCO of Migrating to AWS - ISM314 | Friday, 9:00AM - Delfino 4002

7. Total Cost of Operation (TCO)
Network
costs
Storage
costs
Server
costs
Hardware – server, rack
chassis PDUs, ToR
switches
(+maintenance)
Software - OS,
virtualization licenses
(maintenance)
Overhead cost
Space Power Cooling
Hardware – storage
disks, SAN/FC switches
Overhead cost
Storage admin costs
Network hardware – LAN
switches, load balancer
bandwidth costs
Network admin costs
Overhead cost
IT labor
costs
Server admin
Virtualization admin
1
2
3
4
Space Power Cooling
Space Power Cooling
illustrative
Diagram doesn’t include every cost item. E.g. software costs can include database, management, middle tier software
costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs
can include security admin and application admin costs.

8. People Model
Organizational
Structure
Roles and Job
Descriptions
Skills and
Competencies
Training and
Certification
Manage Staffing Organizational
Change Management
The way you manage your people model is the single most
important component on the cloud adoption journey.

9. People Model Cloud center of excellence (COE)
• Establish a core “cloud team”
• Membership based on enthusiasm
over role diversity
• Use COE to seed remaining
internal teams
• Build internal competencies and
develop cloud standards

10. Cloud Architecture
Develop your Cloud Architecture to provide the optimal “ILITIES”
for your business needs:
• Availability
• Reliability
• Scalability
• Security
• Cost-ility

11. Migration Strategy
Create an actionable Migration Strategy that includes:
• Planning
• Discovery
• Analysis
• Migration
• Optimization for cost

12. The Migration Bubble
Cost
Time
Planning
Migration bubble
Operation and
optimization
• Duplicate environments
• Staff training
• Migration consulting
• 3rd party tooling
• Lease penalties

13. Application Migration Challenges
People,
Process,
Technology
Migration
Inexperience
Knowledge
and Training
Priority
Attempting
Too Much at
Once
Fear of the
Unknown

14. AWS Migration Patterns (Path to Cloud)
Discover,
Assess (Enterprise
Architecture and
Applications)
Lift and Shift
(Minimal
Change)
Migration and
UAT Testing Operate
Refactor
for AWS
Application
Lift and Shift
Move the App
Infrastructure
Plan Migration
and Sequencing
Determine
Migration Path
Decommission
Do Not Move
Design, Build AWS
Environment
Move the
Application
Determine
Migration
Process
Manually Move
App and Data
3rd Party Tools
AWS VM Import
Refactor
for AWS
Rebuild Application
Architecture
Vendor
S/PaaS
(if available)
3rd Party Migration Tool
Manually Move App and Data
Determine
Migration Process
Replatform
(typically legacy
applications)
Recode App
Components
Rearchitect
Application
Recode
Application
Architect AWS Environment
and Deploy App, Migrate Data
Signoff
Tuning Cutover
Org/Ops
Impact
Analysis
Identify
Ops Changes
Change
Management
Plan

15. Operating Model
Define a cloud Operating Model
with specific attention to:
• Cost optimization
• Continuous improvement
• Security
• Monitoring
continuous improvement and cost optimization

16. Let’s spend some time talking
with two organizations that are
on the journey…

21. #ndcloudfirstwins
#thingspeak

23. Ready to Get Started?

24. Next Steps for Your Journey to the Cloud…
1. Build your
Business
Case for
AWS based
on accurate
data, current
business
requirements
and future
opportunities
for
innovation
3. Develop
your Cloud
Architecture
to provide the
optimal
availability,
reliability,
scalability,
security while
also
addressing
need to
reduce cost
2. Establish
a People
Model that
includes a
cloud center
of
excellence,
training for
existing staff,
sourcing
necessary
skillsets, and
hiring for
need
4. Create an
actionable
Migration
Strategy that
includes
planning,
discovery,
analysis,
migration, and
optimization
5. Define a
cloud
Operating
Model with
specific
attention to
continuous
improvement
and cost
optimization

25. Remember to complete
your evaluations!

26. Thank you!