Re-Inventing IT with Cloud Computing

Heeran Bang

Amazon Web Services

Jan 2015

Agenda

• New Way to Look at Innovation

• How Businesses Use Cloud Computing

• Why Are Many Customers Adopting Cloud?

• What Is AWS Doing to Meet the Needs of Enterprise

Customers?

• Steps to the Cloud Journey

Enabler of Useful Services

Offered On-demand, Self-Service

With Metering, Charge-back Billing

And Compliance

New Role of IT

Startups on AWS

Enterprises on AWS

Public Sector on AWS

System Integrators on AWS

ISVs on AWS

AWS Customers in Korea

Media Sharing Explosive traffic

accommodation

Consumer

social app

Ticket pricing

optimization

SAP &

Sharepoint

Securities Trading

Data Archiving

Marketing

campaign

Marketing

web site

Interactive

TV apps

Fast development

and deployment

R&D data

analysis

Machine Learning

system development

Big data

analytics

Customized

movie

suggestion

Disaster

recoveryMedia streaming

Web and mobile

apps

Streaming

webcasts

Facebook

app

Consumer social

app

Every Imaginable Use Case

Global

game

service

Migrate existing apps &

data to the cloud

Build new apps, sites,

services & lines of businesses

Augment on-premises

resources with cloud capacity

How Enterprises Use AWS

Analytics

Backup

Storage Gateway

Elastic Map Reduce

RedShift

Amazon S3

1. Augment On-Premises Resources with Cloud Capacity

...

Corporate Data

Centers

App 1

App 2

App N

Big Data Analytics

Export operational data to AWS for

analytics processing

Oracle databases

Automated back-up to S3 with Oracle RMAN

Big Data Analytics

50% cost reduction with 2X faster queries

using Amazon Redshift

1. Augment On-Premises Resources with Cloud Capacity

1/3 of servers migrated to AWS

Saved 1-1.5 million GBP

App

Your Data

Center

Migrated 500 web properties in 5 months

New product web sites in 2 days vs. 2 weeks

Migrated clinical trials simulations platform

Simulations in 1.2hrs vs. 60hrs

64% reduction in costs

2. Migrate Existing Apps & Data to the Cloud

AmorePacific uses AWS for Global Deployment and

Saved 80% Cost

• Challenge:

• On-Premises datacenter couldn’t respond fast to

global request for its business apps and websites

• AWS cloud services:

• Uses Amazon EC2, CloudFront, RDS, S3, ELB,

VPC to deploy its business application and

commercial websites to US, APAC and EMEA

• Benefits:

• Reduced global deployment time by 50%, secured

fast performance

• saved cost using AWS-included licenses. Reduced

overall operation cost by 80% in migrating to AWS

cloud.

AmorePacific

saved COST by

80% and reduced

global deploy time

by 50%

Telecommunication Company Migrated Service with Large User Base

• Challenge:

• On-premises datacenter could not handle fluctuating

traffic of over 20 million monthly active users.

• AWS cloud services:

• Uses Amazon EC2, S3, CloudFront, Auto Scaling, ELB,

CloudWatch to handle spiky traffic of service

• Benefits:

• Cloud infrastructure scale up and out to support

unpredictable high user traffic

• Reduced TCO by saving resource and time.

• Improved service performance and response time.

Telco Company

reduced TCO and

TIME handling

heavy and spiky

traffic of 20

million monthly

active users

Faster to build

Facebook App

Global Web Sites

Mobile Streaming

Social Games

Consumer apps

Genetic Sequencing

Marketing Campaigns

Less expensive to run

Distributed architectures for high availability

Easier to manage

Financial record

archiving

3. Build New Apps, Sites, Services & Lines of Businesses

Daum Communication Reduced Time-to-Market by 50%

• Challenge:

• Needed fast and iterative way to develop minimum

viable product with a small team

• AWS cloud services:

• Uses AWS Elastic Beanstalk to develop, iterate,

and test across various regions

• Benefits:

• Saved app development and delivery time by 50%,

global test period reduced from 2-3 months to 1

week.

• Small Dev-ops team handles overall server-side for

its four services that supports 20M users.

Daum saved app

development and

deployment TIME

by 50% with

SMALL team

Moved out of Hong Kong Data Center into AWS for all WSJ.com production

traffic in Asia

Operations, finance and accounting, and training

services in AWS today. Moving entire infrastructure to AWS and closing its Geneva data

center

Currently running tens of thousands of

servers (more than 98% of all resources)

on AWS

25% of servers running on AWS with plans to exceed 75% within the next three

years.

Where This Is Going…Entire Data Centers Are Moving

Why Are Customers Adopting

Cloud Computing?

On-PremisesRequires significant, up-front capital expense

Pay As You Go$0 to get started

1. Trade Capital Expense for Variable Expense

Scale allows us to constantly

reduce our costs

We are comfortable running a high

volume, low margin business

We pass the savings along to

our customers in the form of

low prices

42 Price

Reductions

2. Lower Total Cost of IT

• Samsung uses AWS platform of technology infrastructure services to build Smart Hub application

• Smart Hub application runs on AWS Cloud for users of Smart TV and Blu-ray players to access content of 3rd party providers

• With every user’s request, Smart Hub application authenticates devices, delivers apps and content, and pushes notifications across multiple devices

Samsung Powers Smart Hub Service with AWS

Reducing Costs by 85% and Saving $34 Million

On and Off Fast Growth

Predictable peaksPoor

Service

WASTE

Usage Patterns:

Traditional IT ][

Variable peaks

3. You Don’t Need to Guess Capacity

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Business Challenge (1)

Typical Weekly Traffic to Amazon.com

November

Business Challenge (and 2)

November Traffic to Amazon.com

November Traffic to Amazon.com

Provisioned Capacity

November

76%

24%

November Traffic to Amazon.com

November

Provisioned Capacity

November

November Traffic to Amazon.com

DevSisters Benefiting from Auto-Scaling

Experiment Often

Fail quickly at a low

cost

More Innovation

On-Premises

Experiment Infrequently

Failure is expensive

Less Innovation

Nearly $0

$ Millions

4. Dramatically Increase Speed and Agility

Increase Agility Has Become the

No. 1 Reason Businesses Use

AWS

Storage PhotosMusicHotel

s

Seoul National University – Genomic Medicine

Institute (GMI) Doubles Analysis Performance and

Saved Time by 50%

• Challenge:

• Constraints of on-premises datacenter capacity

became a bottleneck for researchers to analyze

large amounts of human genome datasets

simultaneously

• AWS cloud services:

• Uses Amazon EC2, S3, EMR to process, store, and

share large datasets with academic colleagues

• Benefits:

• Enabled researchers to start analysis quickly,

reduced computing time by more than 50%

GMI saved

analysis time by

50%, DOUBLED

simultaneous

analysis capacity

and removed

BOTTLENECK

Data Centers

Power

Cooling

Cabling

Networking

Racks

Servers

Storage

Labor

Capacity Planning

Buy and install new hardware

Setup and configure new software

Build or upgrade data centers

Repeat investments to go global

Toil with scaling distributed systems

Pay massive margins

So you don’t have to …We take care of it…

5. Remove Undifferentiated Heavy Lifting

What Is AWS Doing to Meet the Needs of Business Customers?

Everything Available via API

10 regions

26 availability zones

51 edge locations

AWS Global Infrastructure

SupportCertificatio

n

Trainin

g

Professional

ServicesTechnology Partners Consulting Partners AWS MarketplaceEcosystem

Elastic Beanstalk for Java, Node.js,

Python, Ruby, PHP and .Net OpsWorks CloudFormationContainers & Deployment

(PaaS)

Management &

AdministrationIAM CloudWatchCloudTrai

lAPIs and SDKsManagement ConsoleCloud HSM Command Line Interface

Direct Connect Route 53VPC

Networkin

g

Analytic

s

Data PipelineRedshiftEMRKinesi

s

SW

FSNS SQS

CloudSearc

hSES AppStrea

m

CloudFront

Application

Services

WorkSpace

s

Regions Availability Zones Content Delivery POPs

Storage

GatewayS3

EB

S

Glacie

rImport/Export

DynamoD

BElastiCach

e

Storag

e

Comput

e

Database

sRD

S

MySQL,

PostgreSQLOracle, SQL

ServerElastic Load

Balancer

EC

2Auto

Scaling

AWS Cloud Platform

Compute Services

Amazon EC2 Auto ScalingElastic Load

Balancing

Actual

EC2

Elastic Virtual servers

in the cloud

Dynamic traffic

distribution

Automated scaling

of EC2 capacity

Storage Services

Amazon EBS

EBS

Block storage for use

with Amazon EC2

Amazon S3

Images

Videos

Files

Binaries

Snapshots

Internet scale

storage via API

AWS Storage Gateway

S3,

Glacier

Integrates on-premises

IT and AWS storage

Amazon Glacier

Images

Videos

Files

Binaries

Snapshots

Storage for archiving

and backup

Database Services

Amazon RDSAmazon

DynamoDB

Managed relational

database serviceManaged NoSQL

database service

DBA

Amazon ElastiCache

In-Memory Caching

Service

Networking Services

Amazon VPC: AWS DirectConnect Amazon Route 53

Availability

Zone BAvailability

Zone A

Private, isolated

section of the AWS

Cloud

Private connectivity

between AWS and your

datacenter

Domain Name System

(DNS) web service.

Big Data Services

Amazon EMR

(Elastic Map Reduce)

AWS Data Pipeline

Hosted Hadoop

frameworkMove data among AWS

services and on-

premises data sources

Amazon Redshift

Petabyte-scale data

warehouse service

Application Services

Amazon CloudFront

distribute content

globally

Amazon

CloudSearch

Managed search

service

Amazon Elastic

Transcoder

Video transcoding

in the cloud

Deployment & Administration

Amazon CloudWatch

AWS IAM (Identity

& Access Mgmt)

AWS OpsWorks

AWS CloudFormation

AWS Elastic Beanstalk

Web App

Enterprise

App

Database

Monitor resources Manage users,

groups &

permissions

Dev-Ops framework

for application lifecycle

management

Templates to deploy &

manageAutomate resource

management

A Rapid Pace of Innovation

24

4861

82

159

2802014: 80 New Features and Services Since January

Infrastructure-as-a-service

Magic Quadrant

2013

“AWS is the overwhelming

market share leader, with

more than five times the

compute capacity in use

than the aggregate total of

the other fourteen

providers.”

Gartner “Magic Quadrant for Cloud Infrastructure as a Service,” Lydia Leong, Douglas Toombs, Bob Gill, Gregor Petri, Tiny Haynes, August 19, 2013.

This Magic Quadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire

report. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select

only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be

construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of

merchantability or fitness for a particular purpose.

Let’s talk about ‘private clouds’…

92% of private clouds are still falling short of the

core requirements: self-service, full automation,

tracking and monitoring.

September 2013 Survey

What are customers really looking for?

Private

computePrivate storagePrivate network

Private key

managemen

t

Governance

What are customers really looking for?

The Good News Is That You Can Get All of This in the

Cloud

Private network Private compute

Private storage

Private key

managemen

t

Governance

AWS Private Network Capabilities

Software-defined

private network

AWS Virtual Private Cloud

(VPC)

Dedicated private network

connection to AWS

AWS Direct Connect

All services

AWS Private Compute CapabilitiesChoose the right level of compute isolation for every

workload

EC2 in a VPC Dedicated instances

Single tenant

infrastructure

Software-defined

network isolation

Physical

isolation

Fine grained access

roles and groups

Identity & Access

Management

AWS Private Storage Capabilities

Encrypted

object

storage

Private

encryption key

management

Single-

tenant block

storage

Amazon

S3

Amazon

EBS

Amazon

CloudHSM

Encrypted

block

storage

EC

2AWS

DirectConnect

Choose the right level of storage isolation for every

workload

AWS Governance

Geographic

data locality

Fine-grained access control over data and resources

Control over regional replication Policies, resource

level permissions,

temporary credentials

Fine-grained

access control

In-depth

audits

AWS

CloudTrail

Certifications and Accreditations for Workloads That

Matter

PHYSICAL

NETWORK

SYSTEM

PEOPLE & PROCESS

Familiar security

modelCustomer ecosystem

Every customer

benefitsPartner

ecosystem

Comprehensive Security Capabilities, Validated by

Experts

Which Is the Better Path?

Spend millions to create a

circa-2010 AWS clone that

is largely frozen in time

Satisfy your isolation requirements

No upfront costs

Continued benefit of economies of scale

100s of new features & services every year

Build a new ‘private’

cloud

Rip everything out and move to

AWS

#1

#2

or

Integration with On-premises Resources

Integrated

networking

Integrated

access control

Integrated

cloud backups

Single

pane of

glass

# 192.168.1.10

# 192.168.1.11

Microsoft Active

Directory

Custom

LDAP

App 1

AWS Storage Gateway

Steps to the Cloud Journey

The Cloud Journey Raises Important Questions

Cu

rre

nt S

tate

Ne

w N

orm

al

Hyb

rid IT

WHAT are the critical changes?

WHY change? What are the

Priorities?

WHO else should be

involved?

WHO on our team is

impacted?

HOW should we structure

the work?

WHAT are the key risks and

mitigations?

HOW can we get quick wins,

proof points?

HOW will we run all this in

the new model?

HOW will we measure

success?

WHERE are we going?

Platform Evaluation

Assessment & Planning

Design and Development

Adoption & Deployment

Production & Operations

The Cloud Journey Brings Fast Learning & Early Wins

Exploring Interfacing Integrated Full

Non-

Production

Existing Web

Workloads

New Capability

Workloads

Legacy

Migration

Next Steps

• Create an AWS Account

• Use the AWS Managemet Console to try out

• No Termination Fees, No Commitments

• Go ahead with Dev/Test and Pilot Project and learn how to use cloud

• Visit AWS Test Drive (aws.amazon.com/testdrive)

• Check out AWS Marketplace

• Perform a TCO analysis (aws.amazon.com/tco-calculator/)

감사합니다!