Wahrscheinlich betreibt Ihre Organisation keine eigenen Datenzentren – dennoch wird viel Zeit und Geld in genau diese Aufgabe investiert. Amazon Web Services bietet On-Demand-Lösungen für den Aufbau und die Nutzung von Infrastrukturen, sodass Sie nur zahlen, was Sie wirklich verbrauchen. Dadurch können Sie Kosten reduzieren und das gesparte Kapital in Ihre Organisation investieren. So werden Sie innovativer, expandieren schneller und sind gut aufgestellt für neue Chancen und Möglichkeiten. Sprecher: Christian Elsenhuber, Solutions Architect - AWS

2. © 2018, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Christian Elsenhuber, Solutions Architect
Mach 13th, 2018
The Financial Case for Cloud Migration

3. Agenda
What Makes the
Cloud Different?
AWS Cloud Benefits
Categories
Introduction to Cost
Optimization
AWS Differentiation
and Global
Infrastructure

4. AWS Differentiation and
Global Infrastructure

5. What sets AWS apart?
Building and managing cloud since 2006
100+ services to support any cloud workload;
rapid customer driven releases
19 regions, 54 availability zones, 110+ edge locations
Tens of thousands of partners; 4,200+ Marketplace products
Experience: millions of customers
Service breadth & depth; pace of innovation
Global footprint
Community
Fine-grained controlSecurity
Fully integrated in AWSArtificial intelligence
Gartner Magic quadrant recognizing AWS for its 7th
year
Enterprise leader

6. AWS Global Infrastructure
19 Regions – 54 Availability Zones – 110+ Edge Locations
US East
N. Virginia (6),
Ohio (3)
US West
N. California (3),
Oregon (3)
Asia Pacific
Mumbai (2),
Seoul (2),
Singapore (3),
Sydney (3),
Tokyo (4),
Osaka-Local (1)
Canada
Central (2)
China
Beijing (2),
Ningxia (2)
Europe
Frankfurt (3),
Ireland (3),
London (3),
Paris (3)
South America
São Paulo (3)
AWS GovCloud
(US-West) (2)
Bahrain, Hong Kong SAR, China,
Sweden, AWS GovCloud (US-East)

7. What Makes the Cloud
Different?

8. Cloud Benefit Categories
Operational
Costs
Workforce
Productivity
Cost
Avoidance
Operational
Resilience
Business
Agility
• Reduced Risk
Profile/Reduced cost of
Risk Mitigation
• Revenue & margin
improvements due to
reduced outages
• Reduced Time-to-
Market
• Increased operational
agility (new market
penetration,
divestiture, acquisition)
• Reduced cost &
increased Pace of
Experimentation
• Elimination of hardware
refresh programs
• Elimination of
maintenance programs
• Unit Price of Infrastructure
• Ability to match supply &
demand
• Reinvention is continuous
– a true efficiency
dividend
• A pathway to optionality
• An elastic cost case
• Transparency drives a
lean mindset
• Automation drives
maintenance efficiencies
• Reduced cost of planned
and unplanned outages
• Increased Developer
Productivity

9. AWS Cloud Benefits Categories

10. AWS Cloud Benefits Categories
TCO
Resource Efficiency
Business
Value
Specificity
Accelerate Application
Deployment
Global Expansion
M&A or Divestures
Risk Mitigation
Business
Drivers
IT Drivers
Director of IT Executive Level

11. Driver #1:TCO - What is TCO and how do we do
it?
≠
Comparing TCO isn’t easy
Traditional Data Center
& Co-Location

12. Driver #1: TCO
Definition: Comparative total cost of ownership analysis (acquisition
and operating costs) for running an infrastructure environment end-to-end
on-premises versus on AWS.
Used for:
1) Comparing the costs of running an entire infrastructure environment or
specific workload on premises or in a co-location facility versus on AWS.
2)Budgeting and building the business case for moving to cloud
3) Paralleling an existing AWS workload with an on-premises or co-location setup

13. How do customers lower their TCO with AWS?
Source: IDC Whitepaper, sponsored
by Amazon, “The Business Value of
Amazon Web Services Accelerates
Over Time.” December 2013
“Customers will have spent
63.4% more on average
on-prem or in co-location”
Remove over-provisioning
and move to pay-for-what-
you use model
• 64 Price Reductions
Economies of scale allows
AWS to continually lower costs
Pricing model choice to
support variable &
stable workloads:
• On-Demand
• Reserved
• Spot
Save more money as
you grow bigger:
• Tiered Pricing
• Volume discounts
1
2 3
4

14. Continually lowering prices for customers
is in our DNA
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
We pass the savings along
to our customers in the
form of low prices and
continuous reductions
Reduced
Prices
More
Customers
More AWS
Usage
Economies
of Scale
Lower
Infrastructure
Costs
More
Infrastructure

15. A typical on-premises compute environment is
massively underutilized
Used IT
Capacity
Idle
Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacity
Total
Studies by Gartner, McKinsey, and the
Uptime Institute have stated that typical
data centers are on average
less than 50% utilized
www.uptimeinstitute.org
anthesisgroup.com/wp-content/uploads/2014/08/Data-Center-Issue-Paper-final826.pdf
www.nytimes.com/2012/09/23/technology/data-centers-waste-vast-amounts-of-energy-belying-industry-image.html

16. Part of this can be explained by buying for
“peak load”
Application/Workload drivers
Fluctuating/“Spiky” Part-time Cyclical
Peak
Peak
Peak
Used IT
Capacity
Idle
Capacity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On-Premises IT
Compute capacityTotal

17. Typical TCO considerations
Hardware – Server, Rack
Chassis PDUs, ToR
Switches (+Maintenance)
Software - OS,
Virtualization Licenses
(+Maintenance)
Facilities Cost
Hardware – Storage
Disks, SAN/FC Switches
Software - Backup
Network Hardware – LAN
Switches, Load Balancer
Bandwidth costs
Software – Network
Monitoring
Server Admin, Virtualization Admin, Storage Admin, Network Admin, Support Team
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.
Space Power Cooling
Project planning, Advisors, Legal, Contractors, Managed Services,
Training, Cost of capital
Business Value:
Cost of delays
Risk premium
Competitive abilities
Governance
Etc.
IT Labor Costs
Network Costs
Storage Costs
Server Costs
4
1
2
3
Extras5
Facilities Cost
Space Power Cooling
Facilities Cost
Space Power Cooling

18. Traditional Capacity Planning
Limited Value, Wasted $, Increasing Cost
Initial Fixed
Capacity
Utilization
Unused Capacity = Wasted $
Downtime, Lost Customers, Lost Revenue (Impossible to measure)
More Wasted $
Increased Capacity again
New Purchase after
“Don’t let it happen again”
Time

19. Initial questions to consider for TCO
Capacity
Planning
1 How do you plan for capacity?
How many servers have you added in the past year? Anticipating next year?
Can you switch your hardware on and off and only pay for what is used?
Utilization
2 What is your average server utilization?
How much do you overprovision for peak load?
Operations
3 Will you run out of data center space some time in the future?
What was your last year power utility bill for the data center(s)?
Have you budgeted for both average and peak power requirements?
Optimization
4 Are you on AWS today?
Is your architecture cost-optimized (Auto Scaling, RIs, Spot, Instances turn
on/off)?

20. Commercial Levers

21. What levers are available to customers to drive
down costs?
Matching Supply and Demand – Right-sizing
Matching Supply and Demand – Elasticity
Lowering the Unit Price – Reserved and Spot Instances

22. We have identified additional AWS savings by
modeling both optimization and re-platforming
On-
Premises
Lift & Shift Instance Right-
Sizing
Improved
Elasticity
Storage
Optimization
Optimized Lift
and Shift
Measure
Monitor and
Improve
Serverless
Architecture
Managed
Services
Replatformed
AWS
Optimized
Economic Case Improves through Optimization
Traditional TCO Comparisons

23. Driver #1: TCO Examples
Three years on, we’ve saved
over $100 million in avoided
capital and are about 65
percent 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 percent and operational
costs by 83 percent.
- 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

24. Driver #2: Resource Efficiency
Definition: a comparison of staff time spent performing functions and
tasks in the legacy IT organization versus on 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

25. “[Our staff] spends 60 percent 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
Driver #2:
Resource Efficiency
Examples
improvement in
application
development
functions
efficiency improvement
in compute-related
functions51%
Pharma Services
Industry Customer
20%

26. 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.

27. Driver #3: Accelerate Application Deployment
• GE Aviation deployment cycle time
reduced: 4 days to hours
• +240% improvement in speed-to-market
• Customer functionality delivered 5x
faster
• Shortened its build phase by 90 days
Pharmaceutical
Services Provider

28. “…we don’t make money
when we sell things. We
make money when we help
customers make purchase
decisions.”
Jeff Bezos (HBR 2013)
Photo by Michael Shane / The Verge

29. Driver #4: Risk Mitigation
• Heightened security
• In the event of power failure
• Natural disaster
• Quick data recovery on AWS
• Greater administrative and security control using
IAM, CloudWatch and CloudTrail
• Greater security and performance improvements
by using Amazon VPC and Direct Connect.
https://aws.amazon.com/solutions/ca
se-studies/seaco/

30. Driver #5:
Global
Expansion
Definition: Improved capability to
experiment rapidly with new products or
to expand in new regions/markets.
What’s the value?
• Rapid entry into a new market
• Lower cost of expansion
• Minimize exit costs

31. $(2.000.000)
$(1.000.000)
$-
$1.000.000
$2.000.000
$3.000.000
$4.000.000
$5.000.000
1 2 3 4 5
On-Prem v. AWS Global Expansion
AWS 5-year Forecast On-Prem 5-year Forecast
Driver #5: Global Expansion
• Expansion down time
reduced in half
• Eliminated $2.4M in
global expansion costs
• Recognized additional
$5M in revenue
Net financial impact of leveraging AWS was $8.4M over base case
Automotive Services Provider

32. Driver #6: M&A or Divestitures
Definition: Accelerating the value of bringing on new businesses or shedding
of assets to accelerate a customers’ business goals.
What’s the value?
• Speed-to-market
• Faster transition time
• Lower transition costs

33. Driver #6: Divestiture Example
1. Accelerate focus on
upstream business.
2. Reduce transition timeline
from 12 to 6 months
3. Sold the business for $2.6b
to reinvest in upstream
business.
“We had an obligation to Hess to make
sure that infrastructure could be
handed off in short order, both legally
and physically. Using the cloud enabled
us to meet these requirements and we
are thrilled with the results.”
- Jim McDonald, Lead Architect
Customer Benefits Impact

34. Introduction to Cost Optimization

35. So you’re feeling pretty good.

36. Until your CFO shows
up with the bill

37. Cost optimization is…
going from…
to…
pay for what you provision
pay for what you need

38. The Five Pillars of Cost Optimization
Right-Sizing Your
Instances
Pick the Right
Pricing Model
Increase
Elasticity
Measuring &
Monitoring
Match usage to
storage class

39. Bonus: Useful Sources

40. Video Resources (found on YouTube)
Ø re:Invent 2015 | (ISM402) Cost Optimisation at Scale
bit.ly/co17_video1
Ø re:Invent 2016 | (ARC310) Cost Optimising Your Architecture:
Practical Design Steps For Savings
bit.ly/co17_video2
Ø re:Invent 2016 | (ENT202) Driving AWS Cost Efficiency at Your Company
https://youtu.be/D3uRBcb81uE
Ø re:Invent 2014 | (ARC201) Cloud-Native Cost Optimisation
bit.ly/co17_video3
Ø re:Invent 2015 | (ISM309) Efficient Innovation:
High-Velocity Cost Management at Netflix
bit.ly/co17_video4

41. Other TCO and CO Resources
1. Online TCO Calculator: https://awstcocalculator.com
2. AWS Economics Center:
http://aws.amazon.com/economics/
3. Slide share: Value, TCO & Cost Optimization
https://www.slideshare.net/AmazonWebServices/value-tco-cost-optimisation-
on-aws

42. Thank You!

43. Thank you