This document discusses the business and IT benefits of moving to AWS beyond just cost savings. It identifies several key drivers of value: 1) increased resource efficiency by reducing the time IT staff spend on tasks like maintenance; 2) accelerated application deployment by enabling faster development and release cycles; 3) improved risk mitigation by gaining availability, security and flexibility benefits; 4) ability to attract and retain technical talent; and 5) better support of organizational missions. Case studies are presented highlighting examples of improvements in these areas for various companies using AWS.

1. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Andrew Phillips. ANZ Public Sector Country Manager
The Economics of Innovation
Beyond the Data Centre Cost Savings

2. A Starting Premise
“Moving to AWS is cheaper/more expensive than on-premises”
Three years on, we’ve saved
over $100 million in avoided
capital and are about 65% in
the cloud.
- Dominic Shine, CIO News
Corp1
(1) Geekwire, December 2016
We’ve been able to
seamlessly scale our
infrastructure, better serve our
customers across the globe,
and reduce our fixed costs by
75% and operational costs by
83%.
- Valentino Volonghi, CTO,
AdRoll2
(2) AWS Public Case Study
We’ve realized a 52 percent
reduction in TCO. That stems
from a number of factors... [a
push for self-service, dynamic
storage, using lower cost
VMs] Ultimately these savings
are a byproduct of doing the
right thing.
– Ben Cabanas, CTO, GE
Transportation3
(3) AWS Blog, May 2016
…let’s ignore that for a minute

3. TCO
Resource Efficiency
Mission
Job Role
Speed of Deployment
Attracting and Retaining
Talent
Organisational Mission
Risk Mitigation
Business
Drivers
IT Drivers
Director of IT Executive Level
What are the benefits beyond cost?

4. IDC – Quantifying the Business Value of AWS
https://aws.amazon.com/resources/idc-business-value-learn-more/

5. Driver #1 : TCO
We agreed not to talk about this

6. Driver #2: Resource Efficiency
Definition: a comparison of staff time spent performing functions and tasks in
the legacy IT organisation versus in AWS
Common Measures:
1) Database Administrators eliminating time spent on DB patches and
upgrades
2) Storage Managers no longer required to test or “burn in” additional
object storage arrays before operating them

7. Driver #2: Resource Efficiency Examples
“[Our staff] spends 60% of work
on things like data proliferation,
lack of standards, security
hardening.. AWS is addressing
these needs…”
- Raji Arasu, Senior VP of Platform
and Services, Intuit1
(1) Geekwire, December 2016
Pharma Services
Industry Customer
51%efficiency improvement
in Compute related functions
20%improvement in
Application Development functions

8. Your IT Team is more efficient
“We weren’t capable of responding to an unexpected
change before we began using AWS. Before, if we
needed new capacity, that would be multiple meetings
and procurement efforts taking one week compared
with just one hour now.
“We get more features out with AWS, which makes our
employees up to 80% more productive. To do what
we’re doing with AWS using internal resources, we’d
have to hire a lot more people.”

9. Driver #3: Accelerate Application Deployment
Definition: Shortening the amount of time to deploy new applications &
features. (Hint: Think DevOps as a first step)
Common Measures: “time to deploy to production,” “deployment frequency”
or similar variants.

10. Driver #3: Accelerate Application Deployment

11. Your IT Team moves faster
» Flexibility, ease of deployment, modules drive fast turn-around:
“AWS provides pre-built modules that help us, and we’re
now able to create a dedicated environment to develop
something in that’s a very accurate representation of our
production environment, just smaller. And then we get rid
of it when we’re done with it.”
» Time savings.:
“Our application development team loves the Amazon
environment. . . When it comes to procurement and
standing up these instances, they’re 100% more efficient.”
» Faster, more frequent releases:
“We went from changing our applications two times a
week to ten times a day. That’s the biggest benefit for our
business and our customers.”

12. Driver #4: Risk Mitigation
Definition: qualitative and quantifiable improvements to the
customer’s risk profile and ability to respond to compromising
events.
Common Measures:
1) Elimination or reduction in downtime events
(e.g., website downtime, production application downtime)
2) Reduction in security and compliance costs

13. Your IT Team spends less time in crisis mode
Quote from a Federal Government IT Executive on Weds the 17th of May after WannaCry :
“We patched all our AWS servers (>1,000) in an hour on Sunday. It’s now Weds and we still haven’t
been able to co-ordinate the team to write the plan to patch our on-prem servers”

14. Driver #5 : Attracting and Retaining Talent
5,400 jobs currently advertised seeking “AWS Certification”
Quote from Federal Government CIO after media on his move to AWS :
“I used to train my staff up then lose them to the banks who could pay them
more. Now IT staff from the banks are sending me their CV’s and are willing
to take a pay cut to work on the AWS projects we are working on”

15. Driver # 5 : Organisational Mission
Budget Papers
Virtual Tally Room

16. And there are other benefits according to IDC
1. Better out of the box security
2. Upgrades to solutions are more frequent
3. Opportunity to open up new revenue streams
4. Lower downtime resulting in better user satisfaction
5. Improved decision making ability from faster analytics
6. Faster innovation and time to market
7. Lower risk of getting locked into one vendor

17. And…..it DOES cost less too

18. And the value accelerates over time
Source: IDC Business Value of AWS Accelerates over time
According to IDC, this relationship between length of time using AWS and return is due to customers leveraging the more optimized
environment to generate more applications along a learning curve.
$1 Investment in AWS
$8.40 in benefits
At 60 months of using AWS
~8X
$3.50 in benefits
$1 Investment in AWS
At 36 months of using AWS
~3X

19. Thank you