Dr. Werner Vogels CTO, Amazon.com @werner Transformation Powered by the AWS Cloud
AWS Summit Benelux 2013 - 'Transformation Powered by the AWS Cloud' Keynote
Oct 19, 2014
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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 [email protected]
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
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
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