AWS Business Essentials

Welcome to:

Why Organizations Are Moving

to the Cloud

AWS Customers

Over a million customers running every imaginable use case

900+ Government Agencies

3,400+ Education Institutions

11,200+ Nonprofits

What is Cloud Computing?

"Cloud Computing" refers to the on-demand delivery of IT resources and

applications via the Internet with pay-as-you-go pricing.

Increased Agility

Experimentation

Culture of innovation

Hotels Music Storage Magazines

Agility: Speed

Go global in minutes.

Why Agility Matters: Experimentation

To invent you must experiment often and fail with lower

risk. With AWS you can:

• Spin up servers in minutes for experimenting

• Return or repurpose servers for other experiments

Increase Innovation

Experiment quickly with low cost and low risk.

On-Premises

• Experiment infrequently

• Failure is expensive

• Less Innovation

• Experiment often

• Fail quickly at a low cost

• More Innovation

$ Millions Nearly $0

Agility and Instant Elasticity

Quickly deploy new applications.

Instantly scale up as the workload grows.

Instantly shut down resources that are no

longer required.

Scale down and don’t pay for the infrastructure.

Easily Scale Up and Down

Case Study: Airbnb

150,000 people are hosted on any given night.

A five-person team runs the entire IT operations infrastructure on AWS.

Case Study: Airbnb

Total number of guests

January 2013

4 Million

Mar 2009 Sep 2009 Mar 2010 Mar2011 Sep 2011 Mar 2012 Sep 2012 Mar 2013 Sep 2013 Mar 2014

Case Study: Airbnb

Total number of guests

Up by over 10 million in one year

June 2014

15 Million

Mar 2009 Sep 2009 Mar 2010 Mar2011 Sep 2011 Mar 2012 Sep 2012 Mar 2013 Sep 2013 Mar 2014 Jun 2014

Case Study: Airbnb

Total number of Amazon EC2 instances

2010 2014

Pay For Infrastructure As You Need it, Not Upfront

On-Premises

No upfront cost

Pay as you go

Lower Total Cost of IT

Scale allows AWS to

constantly reduce costs.

AWS is comfortable

running a high volume,

low margin business.

AWS passes the

savings along to

customers in the form

of low prices.

You Don’t Need to Guess Capacity

HostingWaste

Customer

Dissatisfaction

Actual demand

Predicted Demand

Rigid Elastic

Actual demand

Remove Waste – Focus on the Business

Cloud-Based

Infrastructure

Business

More Time to Focus on

Your Business

Configuring

Your Cloud

Assets

30%70%

On-Premises

Infrastructure

Managing All of the

“Undifferentiated Heavy Lifting”

Only 30% of your time should be spent architecting for the cloud and configuring your assets.

Topic Summary

Increase speed and agility.

Go global in minutes.

Benefit from massive economies of scale.

Eliminate guessing on infrastructure capacity needs.

Focus on projects that differentiate your business, not

on managing the assets of your infrastructure.

Why AWS?

AWS Partner Ecosystem

Thousands of consulting, systems

integrator and technology, and

independent software vendor partners.

AWS Marketplace

23 product categories

More than1,900 listings

More than 70 million hours of AWS

Marketplace software per month.

AWS Marketplace allows customers to discover, evaluate and purchase IT and

business software optimized for the AWS Cloud.

AWS Platform Breadth

A broad and deep platform helps

customers build sophisticated,

scalable applications.

Global Infrastructure

AWS Regions

AWS Edge Locations

Support Virtually Every Use Case

Pace of innovation Robust platform and geographic breadth

Continual Iteration and Innovation

AWS continuously upgrades infrastructure, so you don’t have to

On-Premises Infrastructure

Upgrades are the

customer’s responsibilityUpgrades happen

automatically

Cost Savings and Flexibility

Replace up-front

capital expense with

low variable cost

Continual Price

Reductions

Economies of scale

allow AWS to continually

lower costs

Save more money as

you grow bigger

Tiered Pricing

Volume Discounts

Custom Pricing

Pricing model choice

to support variable &

stable workloads

The AWS Price Reduction Philosophy

AWS can take the efficiencies gained

from its global scale and pass that on to

customers in the form of lower prices.

Topic Summary

AWS Partner Ecosystem provides support for customers

to build a successful cloud business.

AWS Marketplace - immediately use software and

services that run on AWS.

AWS Platform is broad and deep and supports virtually

every use case.

AWS Pricing Philosophy takes the efficiencies gained

from its global scale and passes it on to customers in

the form of lower prices.

How Enterprises Are Using

the Cloud

How Enterprises Use AWS

Migrate existing apps &

data to the cloud

Build new apps, sites,

services & lines of

businesses

Augment On-Premises

resources with cloud capacity

(Hybrid Architecture)

Development and Testing

Customers can get comfortable with the AWS platform and business model.

SAP ERP systems, at 70%

savings

Oracle environment

SharePoint and SAP

environment

New apps for faster

provisioningDevelopment & testing of new

software products

Supports 1,000

developers

Altogether New Applications

Product Prototyping & DesignVideo Streaming Hotel Booking

Diagnostics Player Tracking Analytics

Leverage the AWS platform to develop entirely new, innovative applications.

Websites & Digital Transformation

Analytics

Data Analysis

Social Media Campaign Analytics

Hard Drive DesignManufacturing Quality Improvement

Pension Risk AnalysisGame and Social Analytics

Mobile

Mobile push notificationsCloud-connected trucks App store

Mobile services and analytics Web and mobile site Apps for cabin crew staff

Business Critical Production Applications

Solvency simulationsFleet managementNational retail banking

SAP HANA HR and legal apps SAP Business Suite

Migrating Datacenters

Entire data center migration is now happening more and more.

All-In Migrations

Enterprises

Independent Software

Vendors

More Than Two Choices

Enterprises are concerned that there are only two choices.

Build your own datacenter

on-premises

Replace infrastructure

with AWS

The Cloud Isn’t An “All or Nothing” Choice

Corporate Data

Centers

On-Premises

ResourcesIntegration

Resources

AWS Support for Hybrid IT Architectures

Corporate Data

Centers

Your On-Premises Apps Your Cloud Apps

Active Directory

Network Configuration

Encryption

Backup Appliances

Users & Access Rules

Your Private Network

HSM Appliance

Cloud Backups

AWS Identity & Access Mgmt.

Amazon Virtual Private Cloud

AWS Cloud HSM

AWS Storage Gateway

AWS Direct Connect

Integration with On-Premises Resources

Integrated

networking

Integrated

access control

Integrated

cloud backup

Single pane

of glass

What Are Customers Really Looking For?

Private

network

Private

compute

Private

storage

Private key

management

Governance

Customer Testimonial: Mortar

“ Without AWS we

would have needed

to raise $7.1M to

launch instead of

Customer Testimonial: Commonwealth Bank

“We’ve halved

storage costs of

millions of dollars.

Customer Testimonial: U.S. Navy

“ The move could

save the Navy as

much as 60% versus

the cost of hosting

or managing data in

its own data centers.

Topic Summary

Companies use AWS in 3 main ways:

• To augment the IT capacity they run in their own

data center.

• To move existing workloads from their own data

center into the cloud.

• To build entirely new projects, applications, web

apps, and services.

AWS supports hybrid IT architectures.

Customers maintain the control over their resources.

Module 2: Using The AWS Platform

Module Overview

Module 2 establishes a foundational level of

knowledge of the AWS platform, its

capabilities, and how it can be used in different

application scenarios.

Learning Objectives

This module is designed to teach you about:

The AWS global infrastructure

Featured AWS services and service categories.

Ways that many of the service categories are being used.

The AWS Global Infrastructure

AWS Platform

Enterprise

ApplicationsVirtual

Desktop

Sharing and

Collaboration

Platform

Services

Analytics

Hadoop

Real-Time

Streaming

Warehouse

Pipelines

App Services

Queuing and

Notifications

Workflow

Streaming

Transcoding

Search

Deployment and Management

One-Click

Web App

Deployment

Dev/Ops Resource

Management

Resource

Templates

Mobile Services

Identity

Mobile

Analytics

Notifications

Administration

and Security

Identity

Management

Access

Control

Auditing

Storage

Monitoring

And Logs

ServicesCompute Storage CDN Databases Networking

Infrastructure Regions Availability Zones Points of Presence

AWS Global Infrastructure

11 Regions | 28 Availability Zones | 53 Edge Locations

As of March 2015

http://aws.amazon.com/about-aws/globalinfrastructure/

Regions, Availability Zones

US Regions

AZ - A AZ - B

GovCloud (US)

AZ - A AZ - B

AZ - C AZ - D

US East (VA)

AZ - A AZ - B

US West (CA)

AZ - A AZ - B

AZ - C

US West (OR)

Note: Conceptual drawing only. The number of Availability Zones (AZ) may vary.

Global Regions

AZ - A AZ - B

AZ - C

EU (Ireland)

AZ - A AZ - B

South America

(São Paulo)

AZ - A AZ - B

Asia Pacific

(Sydney)

AZ - A AZ - B

Asia Pacific

(Singapore)

AZ - A AZ - B

AZ - C

Asia Pacific

(Tokyo)

China (Beijing)

AZ - A AZ - B

EU (Frankfurt)

AWS Expansion

• $7B retail business

• 7,800 employees

• Lots of servers

2003: Amazon.com 2015:

• Every day, AWS adds

enough server capacity to

power this $7B enterprise.

Topic Summary

The AWS platform is a very broad and robust technology that offers more

functionality than you will find anywhere else.

The AWS data center footprint is global—spanning five continents—with

highly redundant clusters of data centers in each region.

This global infrastructure forms the basis of all other layers of the AWS

cloud computing platform.

AWS Core Services

Amazon Web Services

Services

Platform

Services

Enterprise

Applications

Analytics App Services Deployment and Management Mobile Services

AWS Data

Pipeline

CloudTrailCloudWatch

CloudFormation

Elastic

Beanstalk

ElastiCacheAmazon

Redshift

Amazon

RDSDynamoDB

Amazon

CloudSearch

Amazon

Elastic

Transcoder

Amazon

Kinesis

Amazon

OpsWorks

Compute Networking DatabaseStorage

CloudFront

Amazon

Glacier

Amazon S3

Amazon

Auto ScalingAmazon

Route 53

Elastic Load

BalancingAWS Direct

Connect

Amazon VPC

Amazon EC2

Amazon

WorkSpaces

Amazon

WorkDocs

Amazon

Mobile

Analytics

Amazon

Cognito

AWS Compute Services

Actual

Amazon EC2 Elastic Load BalancingAuto Scaling

Web service

providing resizable

compute capacity

Automatically scale

Amazon EC2

capacity up or down

Automatically distribute

traffic across multiple

Amazon EC2 instances

Broadest Collection of Instance Types

Enabled

General

Purpose

Storage and IO

Optimized

Compute

Optimized

Memory

Optimized

M3 C4 I2 HS1 R3G2

M3 C3 I2 G2

CG1M1 C1 CR1CC2 HI1 HS1 M2

Instance

Instance Types

Type Description

General Purpose (M3) • Balance of compute, memory, and network resources.

Compute Optimized (C4) • Highest performing processors and the lowest price/compute performance.

Memory Optimized (R3) • High speed video encoding. Super fast databases.

GPU (G2) • Graphics and general purpose GPU (Graphics Processing Unit) compute

applications.

Storage Optimized (I2) • Transactional systems, high-performance NoSQL databases.

• Very fast SSD-backed instance. High IOPS at low cost.

High Storage Density (HS1) • Very high storage density.

• Technical computing to grid deployments to analytics workloads.

T2 • Low cost with burstable performance.

• Reduced costs for modest-demand apps that benefit from bursts of power.

Storage

Amazon EBS

Block storage

for use with Amazon

Amazon Glacier

Low cost storage

for archiving and

backup

AWS Storage Gateway

Integrates on-

premises IT and

AWS storage

Images

Videos

Binaries

Snapshots

Glacier

Amazon S3

Images

Videos

Binaries

Snapshots

A durable, scalable

object store

Amazon Simple Storage Service (S3)

Store any amount of data.

Amazon S3 holds trillions of objects.

Highly durable.

99.999999999% of durability.

Amazon Elastic Block Store (EBS)

Consistent performance with the ability to burst

up to 3,000 IOPS

SSD backed: the new default for Amazon EC2

EBS General Purpose Solid State Drive (SSD)

AWS Case Study: Pinterest

Challenge

• Rapidly expanding users

• Dedicate staff to business, not data center

Why AWS?

• Amazon S3 storage capacity

• Amazon EC2 compute power

• Auto Scaling scale up or down

• Amazon EMR big data analysis

Benefits

• Able to scale its business

• Store 8 billion objects; 400 terabytes of data

• 225,000 instance hours a month

• Big data analysis capability

“Being in the cloud and being

able to scale up and down

throughout the day or scale up

very quickly and have that

balanced across multiple

availability zones throughout

the world …that is what makes

AWS very cost-effective.”

Ryan Park

Technical Operations and

Infrastructure Lead

Watch the video

Database Services

Amazon RDS

Managed relational

database service

Amazon ElastiCache

In-memory caching

service

Amazon DynamoDB

Managed NoSQL

database service

Amazon RDS

For Aurora

Newest MySQL-

compatible relational

database engine

Networking Services

Amazon VPC

Private, isolated

section of the AWS

Amazon Route 53

Domain Name

System (DNS) web

service

AWS Direct Connect

Private connectivity

between AWS and your

data center

Availability

Zone BAvailability

Zone A

High Performance Cloud Network

High packets-per-

second performanceLow jitter Amazon EBS–optimized

instances

Physical placement

optimizationVirtual network interfacesHigh throughput,

low latency

Network Case Study: Pfizer

“ Challenge

• To handle peak computing needs beyond the

dedicated high performance computing systems

Why AWS?

• Additional level of security

• Ability to integrate with other aspects of

infrastructure

Benefit

• Cost avoidance: able to scale up without investing

in additional hardware for peak loads

• Able to invest in other business activities

The Amazon Virtual Private

Cloud was a unique option that

offered an additional level of

security and an ability to

integrate with other aspects of

our infrastructure.

Dr. Michael Miller

Head of HPC for R&D

Topic Summary

AWS compute services provide resizable compute capacity that can automatically scale up or down.

AWS storage services provide low-cost data storage with high durability and availability for block store, archiving, and backup that integrates with on-premises IT.

AWS database services provide fully managed relational and NoSQL database services, fully managed in-memory caching as a service, and a fully managed petabyte-scale data-warehouse service.

AWS provides a range of networking services that enable you to create a logically isolated network that you define.

Administration and Security

AWS Case Study: FINRA

Challenge

• To respond to rapidly changing market dynamics

• Analyze and store 30 billion market events every day

Why AWS?

• Level of functionality at the right layers

• Fulfilled security requirements

• Automated infrastructure deployment

• Big Data processing with Amazon Elastic MapReduce and Amazon S3

Benefits

• Agility and speed

• Cost savings: 10-20 million annually

• Transforming technology and culture

Watch the video

Comprehensive Security Capabilities

PHYSICAL

NETWORK

SYSTEM

PEOPLE AND PROCESS

Familiar

security modelCustomer

ecosystemEvery customer

benefits

Partner

ecosystem

AWS Gives You Control

Secure compute Secure storageSecure network Governance

Software-

defined private

network

Fine-grained

access roles

and groups

Encrypted

object storage

Private

encryption key

management

Geographic

data locality

Dedicated

private network

connection

Software-

defined network

isolation

Encrypted

block storage

Integrated with

AWS products

Fine-grained

access control

Dedicated

instances

Single tenant

block storage

Built-in auditing In-depth audits

Secure key

management

Identity and Access Control

CloudHSM

Dedicated

hardware security

module

appliances

AWS IAM (Identity

and Access Mgmt)

Manage users,

groups, and

permissions

AWS Directory

Service

Connect existing

on-premises MS

Directory or set up

new standalone

Monitoring and Usage Auditing

Amazon

CloudWatch

Monitor

resources

AWS CloudTrail

Records AWS API

calls for your

account

Topic Summary

AWS has a broad set of identity and access control services that allow

you to manage users, groups, and permissions, connect or set up

Microsoft directories.

AWS provides on-demand infrastructure while also ensuring the security

isolation that customers are accustomed to in their existing, privately

owned environments.

AWS provides security control and governance across the network,

compute and storage services.

AWS has a number of monitoring and auditing capabilities.

AWS Platform Services

Analytics

Hadoop

Real-Time

Streaming

Warehouse

Pipelines

App Services

Queuing and

Notifications

Workflow

Streaming

Transcoding

Search

One-Click

Web App

Deployment

Dev/Ops Resource

Management

Resource

Templates

Mobile Services

Identity

Mobile

Analytics

Notifications

Analytics

Amazon

Kinesis

Amazon

RedshiftAmazon Elastic

MapReduce

Process large

amounts of data

Fast, powerful,

petabyte-scale data

warehouse

Real-time data

stream processing

Analytics Case Study: Nokia

Challenge

• The volume of data became too large for a

traditional relational database

• Scale the database and generate reports

Why AWS?

• Using Amazon Redshift, run queries twice as

fast as its previous solution

Benefits

• Use business intelligence tools to mine and

analyze big data at a 50% cost savings

“AWS takes a lot of

the burden out of

having to managethe database…a huge

savings in terms of

staff and expertise.”Greg Johnson

Head of Analytics

Nokia’s Xpress Internet Services platform provides mobile Internet services for

emerging global markets.

Analytics Case Study: Major League Baseball

Challenge

• Lots of data to be processed and delivered

• Systems need to evolve quickly

• Ever-increasing data set

Why AWS?

• Push notifications and media tracking running in

• Flexibility and speed to market are critical

• Most reliable and robust cloud provider

Benefits

• Able to spin up compute capacity to process 17 PB

of game data per season

• Reduce capacity to lower costs during off-season

• Flexibility and speed-to-market for Statcast platform

Amazon Kinesis

Amazon Redshift

AWS Direct Connect

Watch the video

Application Services

Amazon Simple Email Service (SES)

Amazon

Simple Queue Service

Amazon Simple

Notification Service

Amazon

AppStream

Amazon

CloudSearchAmazon

Elastic Transcoder

AWS Elastic

Beanstalk

OpsWorksAWS

CloudFormation

Templates to deploy

and manage

DevOps framework

for application

lifecycle management

Automate resource

management

Mobile Services

Amazon

Cognito

Amazon

Mobile Analytics

Amazon

User identity and data

synchronization

service

Collect, visualize,

and understand app

usage data

Fully managed push

messaging service

Mobile Case Study: Concrete Software

Challenge• A seamless user experience across devices

and platforms

• Store and save games in the cloud and

synchronize across all of a user’s devices

without creating or hosting a backend

Benefits• Users securely access AWS resources.

• Flexibility to save data in the cloud, cache it

on a user’s devices, without managing any

backend infrastructure

Concrete Software has been making hit mobile games

like Jellyflop and PBA Bowling Challenge since 2003.

With Amazon Cognito, We

can build games much faster

and provide great user

experience to our customers.

Keith A. Pichelman

CEO, Concrete Software

Enterprise Applications

Amazon

WorkSpaces

Amazon

WorkDocs

Virtual desktop

in the cloud

Secure enterprise

storage and sharing

Amazon

WorkMail

Business email and

calendaring service

in the cloud

Topic Summary

Customers from many different industries are taking advantage of AWS to

perform big data analytics and meet the challenges of the increasing

volume, variety, and velocity of digital information.

Amazon Web Services offers you a variety of managed services to use

with your applications: application streaming, queueing, push notification,

email delivery, searching, and transcoding.

Amazon Web Services provides you with services to help with the

deployment and management of your applications.

Amazon mobile services help you securely manage and synchronize app

data for your users across mobile devices.

Module 3: Cloud Financials

Module Overview

Module 3 discusses the multiple ways AWS helps you

reduce your overall IT costs as well as the financial impact

the AWS cloud can have on an organization’s procurement

cycle, cost management, and contracts.

Learning Objectives

The economic benefits of AWS.

The AWS pricing principles.

The Total Cost of Ownership (TCO) Calculator

The AWS Simple Calculator

The impacts to the procurement cycle change as a result of migration to the cloud.

The impacts to vendors and contract terms.

The Economic Benefits of AWS

Reducing Cost and Increasing Business Value

Pay-as-you go model

Lower overall costs

Stopguessing capacity

Agility / speed /

innovation

Avoid undifferentiated

heavy lifting

Go global in minutes

✔ ✔ ✔ ✔ ✔ ✔

On-premises/

colocation x x x x x x

Cost Reasons Business Value

Reasons

Total Cost of Ownership (TCO)

Acquisition

Operating costs

Decommissioning / retiring systems

Opportunity cost

TCO Definition: the entire set of acquisition and operating costs for running an

infrastructure environment end-to-end.

Replace large upfront

expenditures with pay

as you go and only for

what you use.

Save more money as

you grow bigger

Tiered Pricing

Volume Discounts

Custom Pricing

Pricing model choice

to support variable &

stable workloads

On-Demand

Reserved

How can you achieve lower TCO with AWS?

AWS Enables Lower TCO Than On-Premises Environments

Utilization fundamentally higher in

AWS cloud• Aggregating non-correlated workloads,

scale, spot market

Amazon specific hardware designs• OEM (original equipment manufacturer)

acquisition of custom servers & net gear

• Direct purchasing of disk, memory, & CPU

• AWS controlled hypervisor & net protocol

layers

AWS Immense scale• New data centers built each year

• Volume purchasing, highly automated,

supply chain optimizationTraditional

Data CenterVirtualized

Data Center

UPFRONT

VARIABLECOSTS

VARIABLE COSTS

UPFRONT

VARIABLE COST

Cost savings from running

internal IT more efficiently

Cost savings from moving

to a public cloud provider

Initial Questions to Consider When Exploring TCO

Operations

Utilization

Capacity

Planning

Optimization

• 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?

• What is your average server utilization?

• How much do you overprovision for peak load?

• 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?

• Are you on AWS today?

• Is your architecture cost-optimized (Auto Scaling, Reserved Instances, Spot, Instances turn on/off)?

Traditional Capacity Planning

Limitations of traditional data centers:

Inflexible physical assets Costs are never in sync

Migration and expansion

costs are high

Cost of unexpected

inefficiencies

Inflexible Physical Assets

Large up-front spending

Costs driven by peak, not average

infrastructure requirements

Typically under-utilized environment

Costs are Never In Sync

Many cost elements

Industry technology cycles

Timing of upgrades and refresh

Changes in networking technology

and virtualization

Migration and Expansion Costs

Per rack cost on an unplanned move

Cost of an incremental move, expansion, or

large scale event

Business continuity strategy

New global market

Rapid, unexpected growth

Unexpected Inefficiencies

Under-deployment, over-deployment

Unexpected high demand or low demand

Non-optimal, non-scalable

No Capital Intensive Infrastructure

On-Premises (or Co-location) AWS Cloud

Physical space

Cabling

Cooling

Networking

Servers

Storage

Certification

No infrastructure to

build to get started

TCO CalculatorCompare the cost of running your applications in an on-premises or colocation

environment to AWS

Environment Region Servers Virtual Machines Storage

Three Steps to Comparing TCO

Using the TCO Calculator

1. Describe your existing or

planned on-premises or hosting

infrastructure in four steps, or

enter detailed configurations.

2. Get an instant summary

report which shows you the

three year TCO comparison by

cost categories.

3. Download a full report

including detailed cost

breakdowns or save the report

to share with others.

AWS Customers Are Realizing Lower TCO

“If we were to use the traditional on-premises data center, we would have spent $34

million dollars in hardware and maintenance expenses during the first two years. With

AWS cloud, we met our reliability and performance objectives at a fraction of the cost.”

– Mr. Chun Kang, Principal Engineer, Samsung

“$34 million saved in

the first two years

AWS Customers Are Realizing Lower TCO

The AWS-based infrastructure has decreased the publication’s overall monthly operating costs

by 75%. The publication has also been able to streamline its system administration personnel

by approximately 50%.”

– Nathan Butler of The Newsweek/Daily Beast Company

Decreased monthly

operating costs by 75%

Customer Spotlight: Dow Jones Intl.

TCO analysis is crucial in making a favorable business case

• From over 40 data centers down to 6

• Migration of thousands of applications

• Estimated saving $100M over 3 Years

1. Evaluate infrastructure

costs & architecture

2. Make business case 3. Enable decision to

move to the cloud

Topic Summary – Economic Benefits of AWS

AWS’ economies of scale provide direct cost benefits to customers.

Customers can move away from a traditional emphasis on heavy capital spending on infrastructure to low variable expense.

Customers gain improved flexibility to grow (or contract) with a lower overall TCO.

Use the TCO Calculator to compare the cost of running your applications in an on-premises or colocation environment to AWS.

AWS Pricing Principles

Pay as you go

Pay less by using more

Pay less when you reserve

Pay less when AWS grows

Customers pay for exactly the amount of resources that they actually use

No up-front investment

Pay per use

Demand-driven operating model for IT

Customers pay for exactly what they use

Customers do not pay for unutilized feature or services

Charge is based on infrastructure and services consumed

Customers have control of how they utilize AWS products and services, which leads to control over cost expenditures

Turn cloud resources off and on

Metered, Pay As You Go

Pricing Model

Pay Less Per Unit When You Use More

Volume discounts on overall bill when revenue hits certain thresholds.

$0.030

$0.029

$0.028

<1 TB <50 TB 50-500 TB 500-1000TB

1000-5000TB

>5000 TB

1-10 TB 10- 50 TB 50- 150 TB 150 - 500 TB

Storage (S3)

Tiered Pricing

Data Transfer (Bandwidth)

Tiered Pricing

Pricing as of February 2015

Compute Purchasing Models

On-Demand

Pay for compute

capacity by the hour

with no long-term

commitments

For spiky workloads,

or to define needs

Reserved

Make a low, one-time

payment and receive a

significant discount on

the hourly charge

For committed

utilization

Bid for unused capacity,

charged at a Spot Price

which fluctuates based

on supply and demand

For time-insensitive or

transient workloads

Dedicated

Launch instances within

Amazon VPC that run

on hardware dedicated

to a single customer

For highly sensitive or

compliance related

workloads

Free Tier

Get Started on AWS

with free usage & no

commitment

For POCs and

getting started

Reserved Instances (RI)

For example:

Reserve capacity for one or three years

Pay a low, one-time fee for the capacity reservation

Receive a significant discount on the hourly charge for your instance

Reserved Instance Payment Options Explained

No Upfront option:

• Up to a 55% discount compared to On-Demand

• Does not require upfront payment

• Low hourly rate for the RI on an ongoing hourly basis

Partial Upfront option:

• Balances the payments of an RI between upfront and hourly

• Provides a higher discount (up to 76%) compared to the No Upfront option

• Pay a very low hourly rate upfront for every hour in the term regardless of usage

With the All Upfront option:

• Highest discount compared to On-Demand (up to 77% off).

Reserved Instance vs. On-Demand

$1,000

$1,500

$2,000

$2,500

$3,000

30% 40% 50% 60% 70% 80% 90% 100%

Utilization Over a Year

m3.xlarge 1yr OD/RI Break Even Utilization

On Demand No Upfront Partial Upfront All Upfront

What are the “break-even” points of each of these options in relation to

purchasing instances On-Demand?

Spot instances

What are Spot instances?

• Spare EC2 instances bid on in hourly increments

• One hour at a time

• Behave exactly like a regular instances

Cost Benefits

• Up to 92% off regular on-demand prices per hour

What is the trade-off?

• May be interrupted if that instance is needed for a

EC2 capacity

• No charge for any partial hour due to termination

Spot Pricing Use Case: Honda

AWS Spot Accelerates Innovation

Scalable Materials Simulations at Honda

Before:

80 in-house HPC nodes, 1 year to complete all needed simulations

After:

Scalable, on-demand HPC cluster on AWS

Up to 1000 Spot Instances, 16,000 cores

Able to run more simulations, faster, with more accurate results

“Cloud offers us an opportunity, as we can innovate faster

than before.”

- Ayumi Tada, IT System Administrator, Honda R&D

The Simple Monthly Calculator

Customers can effectively estimate the costs of running their specific project on AWS

http://aws.amazon.com/calculator

Estimate monthly charges based on:

• Architecture

• Usage of each service

• Features for each service in each region

Calculating the Cost of Launching a Web Application• Access the Simple Monthly Calculator

• Choose the right region

Calculating the Cost of Launching a Web Application• Choose the EC2 service from the service options in the left-hand menu of the Simple Monthly Calculator

Calculating the Cost of Launching a Web Application• Add A New Row to add an EC2 server to your estimate

• Determine the number of hours per month the server is likely to run. To determine this, you have a number of choices.

Calculating the Cost of Launching a Web Application

• Select the Instance Type you need and

the Operating System (& Database)

required.

• In this case, we are going to choose an

m3.medium instance packaged with

Windows and Std (Edition) SQL Server.

• We plan on running this server

24x7 so we should choose a

pricing model to minimize the

cost of running it.

• 1yr Heavy Reserved Instance

as we anticipate an upgrade of

the application and database

in 12 months and unsure of

the server requirements at that

point in time.

Calculating the Cost of Launching a Web Application• Add “persistent” storage to your instance, you should add an EBS (Elastic Block Store) to your instance.

• Click on Add New Row under Storage: Amazon EBS Volumes

• Choose the size of your volume. If you’d like to backup this volume to S3, choose the snapshot size you’d like captured

• There are some other inputs/options you need to consider when providing an estimate for

an EC2 instance.

If you want your instance to maintain the

same IP address even after it has stopped or

been terminated, you should use Elastic IP’s.

AWS will charge for Elastic IP’s if they are

not attached to an EC2 instance.

Data transfer into AWS is free, however, data

transfer out of AWS incurs a charge

• Click on the Estimate tab at the top of the screen to check estimate..

• To remove Reserved Instance upfront fee and

reveal ongoing monthly estimates, check the box

at the top of the screen.

• To share this estimate, click on the Save and Share button.

• Once completed, a unique URL of your estimate will be created.

Topic Summary – Pricing Principles

Customers pay for the amount of resources that they

actually use.

Customers pay less per unit the more they use AWS.

AWS offers several purchasing models to support different

needs and cost requirements (e.g., for compute: On-

Demand, RI, Spot).

Estimate your monthly bill using the AWS Simple Monthly

Calculator.

Cost Optimization

Optimizing with AWS

Choose the right

instance types

Instance Utilization Monitor and turn off

unused instances

Offload architecture Leverage AWS

application services

Leverage AWS tools

Choose the Right Instance Types

Amazon

CloudWatch

Auto Scaling Current Generation

Instances

Architecture

Review

Instance Utilization

Stop idle instances Identity

Access Management

(AWS IAM)

Instance Tagging

Reserved Instances and Spot Instances

Reserved

Instances

Spot Instances Reserved Instance

Analysis Tool

Steady State Workloads Time-insensitive

stateless workloads

Compare on-demand

with reserved instances

Offload Your Architecture

Reevaluate

Architecture

Leverage AWS

application services

Leverage

AWS tools

AWS Trusted Advisor

Further reduce costs

• Inspects your AWS environment

• Recommends opportunities to save money

• Eliminates unused and idle resources

Topic Summary

Use our best practices to optimize for cost on AWS, including:

• Choose the right Instance size

• Auto scaling

• Turn off un-used Instances

• Use Reserved Instances

• Use Spot Instances

• Leverage Storage Classes

Offload your architecture and reduce cost by using application services

(SQS, SES, etc.)

Leverage AWS Tools – Trusted Advisor, EC2 Usage Reports

Procurement and Contracts

Simplifying Procurement

AWS empowers customers to be self service

without complex contracts and agreements.

Customers can grow and adapt to their

needs without complex transactions.

AWS provides customers with a flexible set of tools to simplify procurement.

Understand your organization’s

procurement culture.

The Role of Procurement

Govern and control purchasing Rationalize the number of vendors

Manage price negotiations Broker relationships

Contract Simplicity

Simple contractual

Flexibility to tailor

contracts

Continual purchases

without amendments or

contract changes

AWS has a single contract available online

Create a customized enterprise agreement

Single Online Agreement

Customers can move swiftly if they decide to

change direction.

Acquire services directly from the website.

Work with AWS with minimal overhead.

Enterprise Agreements

Flexibility – not limited by purchasing, legal,

and contractual constraints.

Discuss the best agreement model.

Larger customers might prefer an enterprise agreement.

Module 4: Security and Compliance

Module Overview

This module discusses the comprehensive AWS

security best practices, capabilities, controls, and

assurances in place to maintain security and data

protection.

Additionally, it discusses the security measures and

areas that the customer is responsible for, what they

need to do to ensure that they are compliant, and the

support AWS can provide to ensure this outcome.

Learning Objectives

The benefits of the pace of innovation of AWS as it applies to security and compliance.

The shared responsibility model.

The robust built-in security features of the AWS platform and services.

Security Innovation

AWS Platform

Enterprise

ApplicationsVirtual

Desktop

Sharing and

Collaboration

Platform

Services

Analytics

Hadoop

Real-Time

Streaming

Warehouse

Pipelines

App Services

Queuing and

Notifications

Workflow

Streaming

Transcoding

Search

Deployment & Management

1-click Web

Deployment

Dev/Ops Resource

Management

Resource

Templates

Mobile Services

Identity

Mobile

Analytics

Notifications

Administration

and Security

Identity

Management

Access

Control

Auditing

Storage

Monitoring

And Logs

ServicesCompute Storage CDN Databases Networking

Infrastructure Regions Availability Zones Points of Presence

Rapid Pace of Security Innovation

Security, compliance, governance, and audit-related launches and updates

2007 2008 2009 2010 2011 2012 2013 2014

48 6182

Security and Compliance Requirements from Every Industry

A Constantly Improving Security Baseline

Expert Audits: Transparency and Accuracy

Layers of Security Controls in AWS

Managed by

customer

Security of the cloud

Security in the cloud

Request reports at:

aws.amazon.com/compliance/#contact

Cross-Service Controls

Service-Specific Controls

Cloud Service Provider

Controls

Optimized

Network/OS/App Controls

Case Study: Vodafone

Payment Card Industry (PCI) and Data Security

Standard (DSS) compliance was essential.

Launched in three months.

Reduced CapEx by 30%.

Deployed to seven channels, including Facebook.

Amazon Web Services was the

clear choice in terms of security.

Stefano Harak

Online Senior Product Manager

Payments

Vodafone built a mobile payment application.

Topic Summary

A third of the features that AWS launches every year

are directly related to security, governance, compliance,

and auditing.

AWS customers also bring their own auditors, each with

their own perspective on how to meet their individual

compliance objectives.

AWS has a constantly improving security baseline.

Security Controls

Security Shared Responsibility Model

Watch the Video

Security and Compliance is a Shared Responsibility

Client-Side Data

Encryption

Server-Side Data

EncryptionNetwork Traffic

Protection

Platform, Applications, Identity and Access Management

Operating System, Network, and Firewall Configuration

Customer applications and content

AWS Foundation Services

Compute Storage Database Networking

AWS Global

InfrastructureRegions

Availability ZonesEdge

Locations

AWS is

responsible for

the security OF

the cloud

Customers

Customers are

responsible for their

security IN the cloud

You Always Have Full Ownership and Control

AWS makes no secondary use of customer content.

Manage your privacy objectives any way you want.

Keep data in your format and move it or delete it at any time.

There is no automatic replication of data outside of your

chosen AWS region.

Encrypt your content any way you want.

You Decide Where to Put Your Content and Applications

Every Network Has Fine-Grained Security Built In

Virtual Private Cloud

Your section of the AWS cloud

is private and isolated.

Every VPC has a private IP

address space you define.

Create your own subnets and

control all internal and

external connectivity.

AWS Network Security

AWS network will prevent

spoofing and other common

layer 2 attacks.

Every compute instance gets

multiple security groups

(stateful firewalls).

Every subnet gets network

access control lists (NACL).

Create Multi-Tier Architectures

hostEC2App Log

balancing

WebWeb

Database

Connect Privately to Your Existing Data Centers

Create Flexible Multi-VPC Hybrid Environments

Your organization

Project Teams Marketing

Business Units Reporting

Digital/

Websites

Dev and

Redshift

Analytics

Internal

Enterprise

Amazon

Glacier

Storage/

Backup

Encrypt Your Sensitive Information

Amazon Elastic Block Store: Encrypt EBS volumes any

way you like.

Amazon S3: Offers either server or client-side encryption.

Amazon Redshift: 1-click disk encryption as standard.

Amazon RDS: Supports transparent data encryption.

AWS CloudHSM (Hardware Security Module)

You receive dedicated access to HSM

appliances.

HSMs are located in AWS data centers.

HSMs are managed and monitored by AWS.

Only you have access to your keys and

operations on the keys.

HSMs are inside your VPC, isolated from the

rest of the network.

HSMs use SafeNet Luna SA HSM appliances.

CloudHSM

AWS Administrator

Manages the appliance

Control keys and

crypto operations

Virtual Private Cloud

AWS Key Management Service

1-click encryption

Centralized key management

(create, delete, view, set policies)

Enforced, automatic key rotation

Visibility into any changes via AWS CloudTrail

Encryption key management and compliance made easy.

Available, Durable, and Integrated with AWS Products

Keys stored in

Integrated with AWS

products

Highly available and

durable

(e.g., Amazon S3, Amazon EBS,

Amazon RDS, Amazon Redshift)

You Can Enforce Consistent Security on Your Hosts

Use host-based protection software.

• Apply best-practice top five mitigation strategies.

Think about how you will manage administrative users.

• Restrict access as much as you require.

Build out the rest of your standard security environment.

• Connect to your existing services, e.g., SIEM, monitoring, patching.

Control the configuration of your Amazon EC2 compute instances and configure and

harden operating environments to your own specs.

AMI catalogue Running instance

Your instance

Hardening

Audit and logging

Vulnerability management

Malware and HIPS

Whitelisting and integrity

User administration

Operating system

AWS Service Catalog

A service for discovering and provisioning applications in the cloud.

Admins can create

and share product

portfolios.

End users can

launch a product

as a stack of AWS

resources.

Meet compliance

needs by

department, cost

code of globally

Conduct reporting

and auditing via

AWS CloudTrail

Control Access and Segregate Duties Everywhere

With AWS IAM, you get to control who can do

what in your AWS environment, and from

where.

You get fine-grained control of your AWS cloud

with multi-factor authentication.

Integrate with your existing corporate directory

using SAML 2.0 and single sign-on.

AWS account owner

Network management

Security management

Server management

Storage management

AWS Trusted Advisor

Over 1.7 million recommendations

More than $300M in estimated cost

savings

37 checks in 4 categories

Now with Free Tier

Get Consistent Visibility of Logs That You Can Monitor

Full visibility of your AWS environment

• AWS CloudTrail will record access to API calls and save logs in your Amazon S3 buckets, no matter how those API calls were made.

Who did what and when and from where (IP address)

• Support for AWS products

• Easily aggregate all log information

Several log analysis and SIEM tools are available from AWS partners like Splunk and AlertLogic that work with AWS CloudTrail.

Spotlight: AWS CloudTrail

Follow the API activity history and monitor resources.

Review raw JSON output

AWS CloudTrail raw data feeds go into Amazon S3

AWS Config

A new resource dependency and auditing service

• Designed to help ensure compliance with internal policies and regulatory standards by providing visibility into the configuration of a resource at any time.

Audit and compliance

• Continuously monitor the configurations of resources and evaluate these configurations for potential security weaknesses.

Security and incident analysis

Audit and Troubleshoot Configuration Changes

Track a continuous stream of resource

configuration changes.

Review full history of all configuration

changes.

Review configuration change impact across

resources.

Spotlight: AWS Config

Copy an Instance ID from running instances.

Paste the Instance ID in the resource ID field.

View historical data of changes to the Instance.

View the full configuration of changes.

AWS Config data is written to a JSON file format which is maintained in Amazon S3.

Accreditation and Compliance: On-Premises and on AWS

On-Premises

Start with building the data center

Functionally optional

Audits done by an in-house team

Accountable to yourself

Typically check once a year

Workload-specific compliance checks

Must keep pace and invest in security

innovation

On AWS

Start on base of accredited services

Functionally necessary – high standard of

requirements

Audits done by third-party experts

Accountable to everyone

Continuous monitoring

Compliance approach based on all workload

scenarios

Security innovation drives broad compliance

Module Summary

Security and compliance is a shared responsibility

between AWS and customers.

You always have full ownership and control of the content

you place in AWS.

Every network has fine-grained security built in.

You can encrypt your sensitive information.

You can control access and segregate duties everywhere.

You can audit and troubleshooting configuration changes

Module 5: Cloud Migration

Module Overview

This module discusses best practices for successful implementation of an IT environment with AWS components.

The framework helps an organization develop a plan to move from where they are to where they want to be.

The plan provides guidance to teams on changes they will make for successful adoption of AWS solutions.

Learning Objectives

The seven steps to cloud success.

Common use cases on AWS.

Foundational perspectives of the Cloud Adoption Framework.

How to leverage your local AWS team.

What you need to get started with AWS.

AWS Cloud Adoption Journey

The AWS Cloud Adoption Journey

Gain Executive

Sponsorship

Experiment

Educate Staff

Create Hybrid

Architecture

Establish Cloud-First Standard

Develop a Shared Plan

Create a Cloud

Center of Excellence

Steps of the Journey: Executive Sponsorship

Executive

Sponsorship

Educate

Staff Experiment

Develop

a Shared

Create Hybrid

Architecture

Create a

Center

Excellence

Establish

Cloud-

First Standard

g it R

Executive Sponsorship

Follow path of least resistance

Own the business case

Manage the risk

Navigate the internal politics

Start from the bottom if necessary

Align on the Outcome

Executive Priority AWS Value

Competitive advantage

Save money

Business alignment

Move faster, more efficiency

Improved cash flow

Save money

Respond to market changes

Run more experiments

Better analytics

Visibility

Auditability control

Get more products to market

Move faster, more efficiency

Experience

Pace of Innovation

Service Depth and Breadth

Pricing Philosophy

Ecosystem

Global

Steps of the Journey: Educate Staff

Experiment

g it R

Educate

Executive

Sponsorship

Develop

a Shared

Create Hybrid

Architecture

Create a

Center

Excellence

Establish

Cloud-

First Standard

Educate Staff

Invite the AWS team

Attend industry events Talk with industry peers Run workshops

AWS Training and Certification

Certification

aws.amazon.com/certification

Demonstrate your skills,

knowledge, and expertise

with the AWS platform

Self-Paced Labs

aws.amazon.com/training/

self-paced-labs

Try products, gain new

skills, and get hands-on

practice working with

AWS technologies

aws.amazon.com/training

Training

Skill up and gain

confidence to design,

develop, deploy, and

manage your applications

on AWS

Steps of the Journey: Experiment

ExperimentEducate

g it R

Executive

Sponsorship

Develop

a Shared

Create Hybrid

Architecture

Create a

Center

Excellence

Establish

Cloud-

First Standard

Experiment

Identify your first projects:

• Test and Development

• Digital

• Storage

• Backup

Practice on low-risk workloads.

Take advantage of the free tier.

Experiment – Digital

Static Website

Mobile application service

Web application service

Amazon WorkSpaces

Steps of the Journey: Center of Excellence

Educate

StaffExperiment

g it R

Executive

Sponsorship

Create a

Center

Excellence

Develop

a Shared

Create Hybrid

Architecture

Establish

Cloud-

First Standard

Create a Center of Excellence (COE)

COE develops a framework.

Sets the charter.

Acts as the interface back into the

board and technical teams.

Increases agility, decreases risk and

operating costs.

Provides knowledge management.

Cloud Adoption Framework

Whitepaper: http://bit.ly/AWSCAF

People

PerspectiveProcess

Perspective

Security

Perspective

Maturity

Perspective

Platform

Perspective

Operating

Perspective

Business

Perspective Perspectives in planning, creating,

managing, and supporting a modern IT

service.

Guidelines for establishing, developing and

running AWS environments.

Structure for business and IT teams to

work together.

Seven Core Perspectives

Process PerspectiveManaging portfolios, programs, and projects to

deliver expected business outcome on time and

within budget, while keeping risks at acceptable

levels.

People PerspectiveDefining and acquiring the skills needed to adopt the

AWS cloud platform. Examples include guiding

processes of role descriptions, training, certification,

and mentoring.

Maturity PerspectiveDefining the target state architecture of the

organization and creating the required

blueprints and roadmaps.

Platform PerspectiveProviding patterns, guidance, and tools for

optimal use of the technology services to

implement. Represents the technology

services of the AWS cloud platform.

Operating PerspectiveProviding process, guidance, and tools for optimum

operational service management of the AWS

environment. Represents the ongoing management

of the functioning IT environment of AWS.

Security PerspectiveDefining and implementing the required levels of

security, governance, and risk management to

achieve compliance.

Business PerspectiveIdentifying, delivering, and measuring

business impact using architectural

approaches that align technical delivery to

business imperatives.

Steps of the Journey: Develop a Shared Plan

Educate

StaffExperiment

g it R

Executive

Sponsorship

Develop

a Shared

Create Hybrid

Architecture

Establish

Cloud-

First Standard

Create a

Center

Excellence

Build Relationships

AWS Executives

AWS Account Executive

AWS Principal Solution Architect

Inside Sales Manager

Customer Experience Manager

Customer Support

Professional Services

Engage Partners

Consulting Partners

Technology Partners

System Integrators

Specialist Partners

• HPC

• DevOps

• Analytics

Find a suitable partner at http://www.aws-partner-directory.com

Premier Consulting Partners

AWS Specialists

Security and Compliance

Desktop

Big data/HPC

Steps of the Journey: Hybrid Architecture

Educate

StaffExperiment

Create a

Center

Excellence

Establish

Cloud-

First Standard

g it R

Executive

Sponsorship

Develop

a Shared

Create Hybrid

Architecture

Establish Hybrid Architecture

VPC Subnet

Availability Zone

Security group

VPC subnet

Availability Zone

Security group

Corporate

data center

Data center router

Servers

AWS Direct Connect

location

AWS Direct

Connect routers

Backup

Storage

Gateway

Networking

AWS Direct

Connect

Virtual

Private

Access Control

AWS Business Essentials

Software

Transcript of AWS Business Essentials

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