AWS Summit Benelux 2013 - 'Transformation Powered by the AWS Cloud' Keynote

Dr. Werner Vogels

CTO, Amazon.com

@werner

Transformation Powered by the AWS Cloud

Our largest AWS Summit series, ever. Over 39,000 people registered

Stockholm San Francisco

Amsterdam

7 Years Young Amazon S3 launched: March 14th 2006

30+ services spanning

compute, storage, database

and application management

100,000s of customers,

across 190 countries.

Used by the Hottest Startups in the Netherlands

And by the Largest Enterprises

Here and

abroad

Broad ecosystem of consulting partners..

A wide range of technologies

Thriving Partner Ecosystem

Consulting Partners Technology Partners

AWS Marketplace: Buy Software Pre-Configured to Run

on AWS

Growth since Jan 1, 2013

25 categories

977 product listings

Active customers

Usage per customer

308%

152%

The AWS Price Reduction Philosophy

Ecosystem

Global Footprint

New Features

New Services Infrastructure Innovation

More AWS Usage

More Infrastructure

Economies of Scale

Lower Infrastructure

Costs

Reduced Prices

More Customers

Customer Infrastructure Audits Saves money Improves availability Closes security gaps Increases performance

Recent Performance 329,000 recommendations $22M in annualized savings

AWS Trusted Advisor

AWS Service Launches and Feature Updates

2007 2008 2009 2010 2011 2012

9

24

48

82

61

159

AWS Service Launches and Feature Updates

2007 2008 2009 2010 2011 2012 2013

9

24

48

82

61

159 154

AWS Service Launches and Feature Updates

2007 2008 2009 2010 2011 2012 2013

9

24

48

82

61

159

Amazon S3: Over 2 Trillion Total Objects

1.1M peak requests/sec

Amazon Elastic MapReduce: Clusters launched by customers

5.5 M clusters launched since May 2010

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.”

Amazon DynamoDB Amazon Redshift Amazon Glacier

The most radical and transformative of

inventions are those that empower

others to unleash their creativity -

to pursue their dreams

“

”

Jeff Bezos, Letter to Shareholders, 2012

The most radical and transformative of

inventions are those that empower

others to unleash their creativity -

to pursue their dreams

“

”

Jeff Bezos, Letter to Shareholders, 2012

Transformation:

What drives it?

Who is doing it?

What is next?

Transformation:

What drives it?

Who is doing it?

What is next?

Economic drivers Abundance of products

Intensifying competition

Growing consumer power

Reduced customer loyalty

Limited capital Q

$ D

S

Uncertainty

Addressing Uncertainty Acquire resources on demand

Release resources when no

longer needed

Pay for what you use

Leverage other’s core

competencies

Turn fixed cost into variable

The benefits of cloud

computing

1. Trade Capital Expense for Variable Expense

On-Premises

$0 to get started

Pay as you go

Saved $34M on SmartHub app

Reduced IT costs

by 40% over a five

year period

Reduced web

infrastructure cost

by 50%

2. Lower Variable Expense Than Going it Alone

Saved $1.6M-$2.4M

on capital

expenditure

3. You Don’t Need to Guess Capacity

Self Hosting

Waste

Actual demand

Predicted Demand

Rigid

Actual demand

Elastic

The Cloud

Typical Weekly Traffic to Amazon.com

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Typical Weekly Traffic to Amazon.com

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

39%

61%

November Traffic for Amazon.com

November Traffic for Amazon.com 76%

24%

November 10th, 2010

October 31, 2011

November Traffic for Amazon.com

4. Dramatically Increase Speed & Agility

Add New Dev Environment

Add New Production Environment

Add New Environment in Japan

Add 1,000 Servers

Remove 1,000 servers

Number of Instances 1,000

Instance Type M3 Extra Large

Availability Zone US-West-2b

Launch

aws.amazon.com/managementconsole

AWS: Infrastructure in Minutes Old World: Infrastructure in Weeks

Increase Innovation When The Cost of Failure Approaches Zero

Old world: AWS:

Experiment infrequently

Failure is expensive

Less innovation

Near $0 Experiment often

Fail quickly at a low cost

More innovation

5. Stop Spending Money on Undifferentiated Heavy Lifting

buy and install new hardware

set up and configure new software

build new data centers

so you don’t have to...

Data Centers

Power

Cooling

Cabling

Networking

Racks

Servers

Storage

Labor

We take care of...

6. Go Global in Minutes

1. Trade capital expense for variable expense

2. Lower variable expense than companies can do themselves

3. You don’t need to guess capacity

4. Dramatically improved speed and agility

5. Stop spending money on undifferentiated heavy lifting

6. Go global in minutes

The Benefits of Cloud Computing

Peter Moeykens Technical Fellow

WORLD LEADER IN LOCATION AND

NAVIGATION PRODUCTS

AND SERVICES

3,500 EMPLOYEES WORLDWIDE

HEADQUARTERED IN AMSTERDAM

What did we do?

Engineers concentrating on core competencies, not infrastructure True Agility

The right tools Encourage R&D with resources on demand “Fail Early”

Accountability as a job role

How did AWS ensure engineering success?

Empowerment

AWS tools for high availability means plenty of 9’s in the SLA

AWS global deployment

EC2 instant scaling to meet the most demanding customers

Cost transparency – no hidden surprises

Reserved instances for more cost savings

The Amazon name inspires customer confidence

AWS for Enterprise Success A Sure Bet

Millions of transactions a day – right now!

No fear of success – bring them on!

2013 – 2014 will be years of growth

Services, SDKs, availability zones, etc.

Improve, inspire and never stop innovating!

LBS Today and Tomorrow

Thank You!

The Foundation for

21st Century Architectures

awsofa.info

Old world

Development

Experimentation

Flexibility

Years

$$$

Rigid

Availability Scarce

AWS

Minutes

$0.00

Elastic

Plentiful

Old world

Development

Experimentation

Flexibility

Years

$$$

Rigid

Availability Scarce

AWS

Minutes

$0.00

Elastic

Plentiful

Transformation:

What drives it?

Who is doing it?

What is next?

Transformation:

What drives it?

Who is doing it?

What is next?

Every industry.

Financial Services

Financial Services

Extreme competition

New products and instruments daily

Rapid development and delivery

Rapid experimentation

Stringent regulatory, compliance

and security requirements.

Media & Advertising

1950 1960 1970 1980 1990 2000 2010 $10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Print Only

Including Online

Millions of 2012 Dollars

Newspaper Advertising Revenue Adjusted for Inflation, 1950 to 2012

Source: Newspaper Association of America

Carpe Diem Blog

Media and Advertising

New ways to monetize content

Competitive landscape changing

Highly competitive

Driven by data

Jan Willem Eshuis Chief Technology Officer

Health Care & Biotechnology

Health care & biotechnology

Huge impact

Rapid innovation

Collaborative on a global scale

1000 Genomes Project

250 TB of data

~2000 complete genomes

Available to all, via S3

Hospitality

Hospitality

Rapid growth

Cost conscious

IT is undifferentiated heavy lifting

A ‘long tail’ from B&B to boutiques

Rapid growth and huge opportunities

for online engagement

Focus on the customer

Energy

Energy, oil and gas

Huge organizations

Strive for agility

Hundreds of developers

IT is a fundamental component

106

Menno Abbink Senior Enterprise Architect menno.abbink@essent.nl

The road to a ‘Cloud Unless’ strategy

How we have been using AWS technologies over the last 4 years

who is Essent

Since 2009 part of RWE Group

The largest energy company in the Netherlands

2.516 M electricity customers

2.187 M gas customers

2.539 employees

3.770 M net turnover

272 M operating result

(results 2012)

cloud on our radar Cloud Computing was mentioned in Gartner’s Magic Quadrant for Emerging Technologies for the first time in 2008 and has been on our radar ever since. We have been investigating and using the possibilities of Cloud Computing from that moment on, being a front runner from an enterprise point of view.

cloud adoption Cost reduction programs thrived several pilots , e.g. Google Apps and Office365, and the need for low-cost and flexible solutions led to ongoing usage of platforms like Yammer, SalesForce and Amazon Web Services. AWS has been used extensively and continuously ever since and is currently the IaaS platform of choice.

Launch

of 1

st EC2 In

stance

in U

S fo

r google

landin

g p

ages

Imple

menta

tion o

f

Virtu

al P

rivate

Clo

ud

Hostin

g e

ssent.n

l and

custo

mer se

lf serv

ice p

orta

ls

Experim

ents w

ith H

adoop

for B

ig D

ata

analy

sis

Imple

menta

tion o

f billin

g e

ngin

e

for su

pport S

mart E

nerg

y in

itiativ

es

Intra

net e

nviro

nm

ents

hoste

d w

ithin

VPC

Q3 2008 Q2 2010

Vario

us P

roof o

f Conce

pts

and p

ilots fo

r Conte

nt H

ostin

g

2009 Q4 2011 Q3 2012 Q4 2012 Q1 2013Q3 2011

Imple

menta

tion o

f syste

ms

to su

pport E

-mobility

offe

ring

AWS usage @ Essent In 2008 first experiments – hosting of Google adWords landing pages – initiated, leading to hosting of corporate websites and customer self service applications in 2010. In 2011 started with implementation of application stacks and at the end of 2012 a Virtual Datacenter using the AWS VPC solution.

example: Charging stations Customers can search – Online and via mobile apps – for nearby charging stations to ‘fuel’ their electric vehicle. They can differentiate on type and availability and even monitor the status during charging. All data is fetched and stored dynamically via our internal services within an AWS RDS database.

Challenges we experienced

“We fear what we don’t know” – especially in 2009

Finding a suitable outsourcing partner

Constant evolving cloud offerings

Dialogue with software vendors

Identity Management

Maintenance mindset

our next steps in AWS

Create basic application components

Create Business Self Service Portal

Implement our Essent API in VPC together with Axway

Create solution to capture and analyze data

Hire own technical personnel

@mennoabbink

www.linkedin.com/in/mennoabbink

menno.abbink@essent.nl

www.werkenbijessent.nl

Let’s keep in touch

Retail & E-Commerce

Transformation:

What drives it?

Who is doing it?

What is next?

Who is your customer really?

What do people really like?

What is happening socially with your

products?

How do people really use your

product?

Big Data

The move to real time information

Deeper integration

Vertical application of analytics

Hadoop will become invisible

Connected Devices

Incredible data generators

Device and content are independent

Increasing workforce mobility

Security & Privacy

Readily available encryption services

to protect your customers.

Readily available encryption services

to protect your customers.

Hardware security modules

AES-256 encryption

SSL for data in transit

IAM federation

Private subnets

VPC by default Key rotation

Multi-factor authentication

SOC 1 & 2

SAS70 Type II

FISMA moderate

ITAR

HIPAA

DIACAP FedRAMP

PCI DSS Level 1

ISO 27001

AWS CloudHSM - Hardware Security Module in the Cloud

AWS CloudHSM

Continually extend our

security options.

Amazon RDS for Oracle

Transparent Data Encryption and

Native Network Encryption.

The most radical and transformative of

inventions are those that empower

others to unleash their creativity -

to pursue their dreams

“

”

Jeff Bezos, Letter to Shareholders, 2012

Thank you.

werner@amazon.com