AWS Presentation at the 2012 TechSparks Finale

How Cloud is changing the VC &

Startup space

Joe Ziegler & Pieter Kemps, Amazon Web Services

“Cloud is like a fertilizer that creates Startups”

Eric Ries, author of NY Times bestseller “The Lean Startup”

You begin your Startup in a garage…

…and build a fantastic app

people love it!

and everyone wants to use it…

Now what?!

Which company…

…grew to 14 million users in just over a year

…reached 150 million photos & terabytes of data

…signed up 10 million users in 12 hours after launching an Android app

…with only 3 engineers?

HOW?

Impact of Cloud on Venture Capital

Impact of Cloud on Startups

Netscape vs Instagram

“Amazon changed the VC industry. This is mind boggling. That little online book company. Not Google. Not Microsoft. Not IBM, HP, Accenture, Cisco, Salesforce.com or anybody else. Amazon. 100% of the credit.”

Mark Suster, serial entrepreneur and MD at GRP Partners

1995          1996          1997          1998          1999          2000          2001          2002          2003          2004          2005          2006          2007          2008          2009          2010          2011  

1995 & Before Technology Startups require physical hardware and

proprietary software to build their business

Typical Series A

Spent on…

Innovation

5-10M • $2.5: marketing, sales, etc.

• $2.5M on infrastructure

• Not a lot, because experimentation is costly

Typical Series A

Spent on…

Innovation

1995          1996          1997          1998          1999          2000          2001          2002          2003          2004          2005          2006          2007          2008          2009          2010          2011  

2000: Rise of Open Source Open source software drove technology costs down by 90%,

which spurred innovation in technology

3-5M • Less on technology

• More on team, product development, etc

• A lot more, as experimentation is now less costly

Typical Series A

Spent on…

Innovation

1995          1996          1997          1998          1999          2000          2001          2002          2003          2004          2005          2006          2007          2008          2009          2010          2011  

2005: Enter the Cloud Public Cloud led by Amazon drove total operating

costs down by 90%

500K-3M

• Staff – the battle for talent

• Customer Acquisition

• Explosion in experimentation, innovation, and Startups

1995          1996          1997          1998          1999          2000          2001          2002          2003          2004          2005          2006          2007          2008          2009          2010          2011  

2007: Micro VC / Seed Public Cloud led to explosion in the number of Startups

and the emerging of “micro VCs”

Angels

Incubators

VC’s

Angels unite in ‘Super Angels’ for Seed

investments thru VC-like setup

Boom in incubator programs, with micro

investments, mentoring, etc.

GP-LP structured funds to back early-stage startups with

$500k

E.g. Manu Kumar (K9), Ram Shriram (Sherpalo)

E.g. TechStars, YC, The Morpheus, Startmate, Innovation Works

E.g. True Ventures, First Round Capital, Matrix Partners India

“Amazon has kind of transformed our ability to not just do hundreds or thousands, but hundred thousands of startups.”

Steve Blank, author of “The Four Steps to Epiphany”

Impact of Cloud on Startups

01 02 03 04

idea demo monetize scale

Experiment More &

Develop Faster

Elasticity &

Scalability

Reduce Costs &

Grow Revenue

Launch your infrastructure in a few clicks so you can Reduce Time to Market Pay only what for you use, with no commitment and lock in, so you can Experiment More at Lower Costs

Leverage community support, SDK’s, libraries, and more to achieve Shorter Development Cycles

Experiment More & Develop Faster

Full  Elas.city  for  Maximum  Scalability  

Scale up to 1000s of servers in minutes

Fully automate the process of scaling up & down

Store billions of objects

Globally distribute petabytes of data

70:30  

Reduce  Costs  &  Grow  revenue  

Pay only what for you use, with no commitment and lock in, so No Up-Front Capital Expense

Leveraging our large scale, we have reduced our prices 19 times in the last years, leading to Low Costs

AWS removes undifferentiated heavy lifting – allowing you to focus on your business and Generate Revenue

Economic impact of Elastic Cloud

Unable to serve customers

Infrastructure Cost $

Time

Opportunity Cost – Capital locked up in

idle resources

Predicted Demand Traditional Hardware

Actual Demand Elasticity & Autoscaling

Old Startup World vs

New

New World

Old World

•  Pay for what you use = saving money

•  Most traffic happens in the afternoons and evenings, so they reduce the number of instances at night by 40%.

•  At peak traffic $52 an hour is spent on EC2 and at night, during off peak, the spend is as little as $15 an hour. The difference is an amazing 71%

The Start – Development, Innovation, Iteration

•  Manually Install Software on each server

•  Costly and Lengthy to Fail •  Not Invented Here

•  Deploy Globally with a Click •  Scale Out Instantly

•  Build Data Centres •  Scale out Slowly

And then…scaling up and scaling out

•  Build Data Centres •  Scale out Slowly

•  Deploy Globally with a Click •  Scale Out Instantly

•  Unlimited Storage

Result

Valuation of 1 Billion Dollars at IPO Staff of 250 People with peak at 2300

Currently valuated at 1.5 Billion during last funding round

Staff of 31

In July 2011 valuated at 1 Billion with 130 Employees

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

AWS Global Infrastructure

Regions Availability

Zones Edge Locations

Foundation

Application Platform

CDN

CloudFront

Messaging

SES SNS SQS

Storage

EBS S3

Database

RDS Dynamo ElastiCache SimpleDB

Networking

ELB Route 53 VPC EC2

Distributed Computing

EMR SWF

Your Applications

Management & Administration

Web Interface

Console

Search

CloudSearch

Identity and Access

IAM Federation Billing

Deployment & Automation

Beanstalk CloudFormation

Monitoring

CloudWatch

Libraries and SDKs

Compute

Standing on the Shoulders of Giants

May 8, 2012

Breakout Tracks Corporate Track Start up & Developer Track 12:45 - 1:25 Planning the Migration to the Cloud

Santanu Dutt, Solutions Architect, AWS 12:45 - 1:20 AWS Enabling the Startup Ecosystem

Pieter Kemps, Business Development Manager, AWS

1:25 - 2:05 CloudFront & Serving Media from the Edge Kingsley Wood, Business Development Manager, AWS

1:20 - 1:55 Agile Development on the Cloud Joe Ziegler, Technology Evangelist, AWS

2:05 - 2:40 Security and Privacy in the AWS Cloud Miles Ward, Solutions Architect, AWS Trend Micro

1:55 - 2:30 Partner Presentation by Intel: The Disruption of Big Data Mrittika Ganguli, Platform Software Architect, Intel

2:40 - 3:40 Amazon Database Services: DynamoDB: A seamlessly scalable NoSQL datastore & Relational Database Services Deep Dive Sundar Raghavan, General Manager, Amazon RDS, AWS

2:30- 3:05 Architecting your Killer App on AWS Joe Ziegler, Technology Evangelist, AWS

3:05 - 3:40 Developing for your Target Market: Social, Games & Mobile Apps Kingsley Wood, Business Development Manager, AWS

3:40 - 4:15 Benchmarking and Performance on AWS Robert Barnes, Director, Benchmarking, AWS

3:40 - 4:15 Best Practices: Microsoft on AWS Miles Ward, Solutions Architect, AWS