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© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Yinal Ozkan – Global Technology Lead – Financial Services April 12, 2016 Creating Alternatives for Our Customers Addressing Vendor Lockin, Exit Strategy and Building a Manageable MultiCloud Strategy

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Page 1: journey to the cloud-1350 ... - aws-de-media.s3.amazonaws.comaws-de-media.s3.amazonaws.com/images/AWS_Summit... · ©2016,"Amazon"Web"Services,"Inc."or"its"Affiliates."All"rights"reserved

© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Yinal Ozkan – Global Technology Lead – Financial Services

April 12, 2016

Creating Alternatives for Our CustomersAddressing Vendor Lock-­in, Exit Strategy and Building a

Manageable Multi-­Cloud Strategy

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What Our Customers Tell Us

Our customers tell us that they want the flexibility to build their applications per their own specifications. They don’t want to be locked into a particular programming model, language, or operating system.

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Why?

Painful years with old guard software and hardware companies has taught our customers that they have to be flexible in their information technology decision making. Our customers do not want to be locked into a single provider and face:• Continuous surge in costs• Lower quality in services• Less than optimal solutions• Behind innovation curve classification

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Customers’ View

• Lessons learned from decades of pain with existing toolset – never again

• If there is an open source solution, why aren’t we using it and why are we paying for it?

• We want our solutions to be portable• FUD still exists, and the fear grows• Loss of control feels not right

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Types of Questions

1. Long-­term contracts, cost and pricing

2. Proprietary technology with no alternatives

3. Cost of migration

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About Cost and Pricing

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Customer Goals on Cost Control

• No long-­term contracts• No expensive maintenance contracts• Choose common technologies to access talent faster and easier (reduce people costs)

• Pay-­as-­you-­go consumption based pricing

• Flexible licensing

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AWS Pricing Philosophy

High volume / low margin businesses are in our core DNA

Trade CapEXfor variable expense

Our economies of scale provide us with lower

costs

51 price reductions since 2006

Pricing model choice to

support variable and stable workloads

On-­demand

Reserved Instances

Spot

Save more money as you grow bigger

Tiered pricing

Volume discounts

Custom pricing

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AWS Pricing

Pay-­As-­You-­GoAWS requires no minimum commitments or long-­term contracts. With AWS, you replace your upfront capital expense with low variable costs and pay only for what you use. In essence, you convert your capital expense into variable expense.

Pay Less/Unit by Using MoreWith AWS you save more as you grow bigger. For services such as storage and data transfer, pricing is tiered. The more you use, the less you pay per gigabyte. For compute, you get volume discounts up to 10% when you reserve more.

Pay Less When You ReserveFor certain services, you can invest in reserved capacity. In that case, you pay a low upfront fee and get a significantly discounted hourly rate, which results in overall savings up to 60% over equivalent on-­demand capacity.

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Cost Control and AWS

• Variable spending models• Maintenance?• AWS allows access to talent • Consumption-­based pricing• Flexible licensing

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Proprietary Technology

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TECHNICAL & BUSINESS SUPPORT

Account Management

Support

Professional Services

Solutions Architects

Training & Certification

Security & Pricing Reports

Partner Ecosystem

AWSMARKETPLACE

Backup

Big Data& HPC

Business Apps

Databases

Development

IndustrySolutions

Security

MANAGEMENTTOOLS

Queuing

Notifications

Search

Orchestration

Email

ENTERPRISEAPPS

VirtualDesktops

StorageGateway

Sharing &Collaboration

Email &Calendaring

Directories

HYBRID CLOUDMANAGEMENT

Backups

Deployment

DirectConnect

IdentityFederation

IntegratedManagement

SECURITY &MANAGEMENT

Virtual PrivateNetworks

Identity &Access

EncryptionKeys

Configuration Monitoring Dedicated

INFRASTRUCTURESERVICES

Regions AvailabilityZones Compute

StorageO b j e c t s , B l o c k s , F i l e s

DatabasesSQL, NoSQL, Caching

CDNNetworking

PLATFORMSERVICES

APP

Mobile & WebFront-­end

Functions

Identity

Data Store

Real-­time

DEVELOPMENT

Containers

SourceCode

BuildTools

Deployment

DevOps

MOBILE

Sync

Identity

PushNotifications

MobileAnalytics

MobileBackend

ANALYTICS

DataWarehousing

Hadoop

Streaming

DataPipelines

MachineLearning

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61 82

159

280

516

2010 2011 2012 2013 2014* As of 8 Oct 2015

More Tools for Integration

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Customers’ View

• Third-­party technology requires a lock-­in• In-­house technology does not require lock-­in even if it is proprietary

• Infrastructure services look like software• IaaS is an advanced form of data centers• Open source technology is ready to use• Open source does not have stickiness because it is free and maintained by multiple parties

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Open Source and AWS“We view open source as a companion to AWS' business model"— Chris Schlaeger, Director, Software Development, EC2

• AWS is a great platform to run open source solutions

• AWS services are ready to use• AWS services are maintained and supported by AWS

• AWS provides multiple options

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Democratizing Technology Stack

• Today there are more alternatives than ever before• There is an investment and reliance on every technology stack used

• The main stickiness is not the technology itself;; cost of migration and education are the primary costs

• There must be a plan B• Definition of portability must be defined by the business since it has major cost and functionality implications

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Irreversibility, Plan B, or Exit Plan

• Our customers always manage risk and they ask for an exit plan before they adopt AWS

• We help our customers to build, test, and run their applications on alternative platforms

• There is an alternative for each service• Exit plans include ownership and migration of data;; mass scale data migration services are critical

• Migration timelines, SLAs, and test plans should match other enterprise technology and service migration timelines

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Cost of Migration, Designing for Portability

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Customers’ View on Portability

• Solutions must be decoupled from infrastructure provider• Solutions should leverage the economies and the functionality of the next generation of cloud services providers

• Solutions should also work on my current data centers• We need a multi-­cloud strategy• We need an abstraction layer to manage everything

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Portability and AWS

“In economics, vendor lock-­in, also known as proprietary lock-­in or customer lock-­in, makes a customer dependent on a vendor for products and services, unable to use another vendor without substantial switching costs.”

Wikipedia

• It is easier to move applications when they are decoupled from hardware

• It is easier to move applications when migration costs are kept at a minimum

• It is easier to leverage multiple platforms when they are developed based on distributed services or microservicesarchitecture (cont.)

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Portability and AWS (cont.)

We acknowledge that portability costs exist with

any technology.

The major cost to “migrate off” a platform or technology is around labor and people

(even with “Open” tech).

Perceived “lock-­in” in regards to cloud is

different.

In the cloud, there are no long-­term licensing agreements, no maintenance contracts, no infrastructure investments, or

sunk costs.

The choices customers have in the cloud allow easy

portability.

“For each of my IT functions, I’m going to make a decision how much it would cost and how much I’m willing to spend to avoid that.”

1 2 3

(related labor costs)

(cont.)

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1 2 3

AWS has one of the most extensive training and certification programs, including online and in-­person classes, hands on labs, and certifications.

AWS has thousands of developers certified – this is many times more than other cloud vendors and your developers don’t

need to be retrained on a whole new model.

AWS publishes new white papers, templates, “how to” guides and

more on a regular basis.

Portability and AWS (cont.)

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Amazon Web Services

Your Applications

ApplicationLogic

Interface &Experience

CustomerValue

ApplicationSecurity

BusinessInsight

INFRASTRUCTURESECURITY

PLATFORMSERVICES

SUPPORT

MAR

KTET

PLAC

E

MAN

AGEM

ENT

TOO

LS

ENTE

RPRI

SE A

PPS

HYBR

ID C

LOUD

Choosing a cloud provider is not like choosing a server.

It’s like choosing a major service provider.

You want the best capabilities for the application you intend

to deliver.

Solutions on AWS are Portable

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Amazon Web Services

Your Applications

ApplicationLogic

Interface &Experience

CustomerValue

ApplicationSecurity

BusinessInsight

INFRASTRUCTURESECURITY

PLATFORMSERVICES

SUPPORT

MAR

KTET

PLAC

E

MAN

AGEM

ENT

TOO

LS

ENTE

RPRI

SE A

PPS

HYBR

ID C

LOUD

Operations, Runtime, Application Framework

Cloud Abstraction Layer

“IT organizations cannot treat cloud IaaS providers like

commodities.”Lydia Leong, VP Distinguished

Analyst

Expedite Portability with Abstraction Layer?

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Abstraction layers don’t eliminate the risk of lock-­in, they simply shift it to another vendor or solution and

they also bring in a major maintenance problem

Infrastructure Services

Security

Platform Services

Marketplace

Support Hybrid

Enterprise

Mgmt. Tools

Cloud Abstraction LayerOperations, Runtime, Application Framework

Applications

Abstraction Layers and New Layer of Lock-­in

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By signing up for multi-­cloud vendor strategy, you are settling for the Lowest Common Denominator feature set

Encryption options for Object Storage

AWS Other Other Other OtherServer-­Side Encryption (SSE) ü X ü X ü

SSE using customer managed keys ü X X X XSSE using a Key ManagementService (KMS) hosted by provider ü X X X X

Client-­side Encryption ü ü X X XHardware Security Module (HSM) ü X X X X

How does the Lowest Common Denominator Look Like?

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What About a Multi-­cloud Vendor Strategy?

• Multi-­vendor strategies are not new and they are a standard component of risk management controls

• Million dollar question is the cost• Multi-­cloud makes sense if you have 2+ vendors for each service and technology you are consuming today

• Does multi-­cloud mean live failover for your operations• All clouds are not created equal so the most common denominator problem still applies

and be wary of the single point of failure…

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Data Gravity

• There are great AWS provided technology solutions for moving data in and out of AWS

• AWS allows bi-­directional migration of gold images• Data movement is one of the most promising 3rd party ISV solution domains

• There are major examples of large scale migrations to and from AWS

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