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Uses, considerations, and recommendations for AWS

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From an information session on Amazon Web Services (AWS), looking at uses, considerations, and recommendations for leveraging AWS in your organization. Topics covered: - AWS Services Overview - Some ideal use cases: Disaster Recovery, Backup and Archive, Test/Dev - Data residency and security considerations
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1 © 2014 Scalar Decisions Inc. Not for distribution outside of intended audience
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Page 1: Uses, considerations, and recommendations for AWS

1© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Page 2: Uses, considerations, and recommendations for AWS

2© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

This is intended to be an information session and any information presented here should not be substituted for or interpreted as legal advice.

Page 3: Uses, considerations, and recommendations for AWS

3© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

INTRODUCTION

Page 4: Uses, considerations, and recommendations for AWS

4© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

About ScalarAbout Scalar

Background in architecting mission-critical data centre infrastructure

Founded in 2004

$130M Revenues25% Growth

YoY

Toronto | Vancouver | Ottawa Montreal | Calgary | London

Greater than 1:1technical:sales ratio

Nationwide Presence

135 Employees

Page 5: Uses, considerations, and recommendations for AWS

5© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

What We DoWhat We Do

The country’s most skilled IT infrastructure specialists, focused on security, performance and control tools

Delivering infrastructure services which support core applications

Page 6: Uses, considerations, and recommendations for AWS

6© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Our Strategic PartnersOur Strategic Partners

Page 7: Uses, considerations, and recommendations for AWS

7© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Our Agenda TodayOur Agenda Today

AWS Services

Sample use cases

Examining data sovereignty & trans-border data flows

Page 8: Uses, considerations, and recommendations for AWS

8© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

AWS SERVICES

Page 9: Uses, considerations, and recommendations for AWS

9© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

AWS provides a complete set of computing, storage and database services accessed via the internet to help you build and run applications

These services are available to you on demand and you pay for only the services that you use

What is Cloud Computing with Amazon Web Services?What is Cloud Computing with Amazon Web Services?

Page 10: Uses, considerations, and recommendations for AWS

10© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Gartner Magic Quadrant for Cloud Infrastructure as a Service(August 19, 2013)

Page 11: Uses, considerations, and recommendations for AWS

11© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

$5.2B retail business

7,800 employees

A whole lot of servers

Every day, AWS adds enough server capacity to power that whole $5B enterprise

Amazon 2003 - 2013Amazon 2003 - 2013

2003 2013

Page 12: Uses, considerations, and recommendations for AWS

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WHY DO ENTERPRISES CHOOSE AWS?

Page 13: Uses, considerations, and recommendations for AWS

13© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

1. Pay For Infrastructure as you Need it, Not Up Front1. Pay For Infrastructure as you Need it, Not Up Front

On-Premises

$0 to get

started

Pay as you go

Page 14: Uses, considerations, and recommendations for AWS

14© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

2. Lower Total Cost of IT2. Lower Total Cost of IT

Scale allows AWS to constantly reduce

their costs

AWS are comfortable running a high volume, low

margin business

They pass the savings along to their

customers in the form of low prices

Page 15: Uses, considerations, and recommendations for AWS

15© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

3. You Don’t Need to Guess Capacity3. You Don’t Need to Guess Capacity

Self Hosti

ng Waste

CustomerDissatisfaction

Actual demand

Predicted Demand

Rigid Elastic

Actual demand

AWS

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16© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

4. Increase Innovation: Experiment Fast with Low Cost and Low Risk4. Increase Innovation: Experiment Fast with Low Cost and Low Risk

On-Premises

Experiment Infrequently

Failure is expensive

Less Innovation

Experiment Often

Fail quickly at a low cost

More Innovation

$ Millions Nearly $0

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5. Get Rid of Undifferentiated Heavy Lifting5. Get Rid of Undifferentiated Heavy Lifting

Data CentresPowerCoolingCablingNetworking

RacksServersStorageLabour

Buy and install new hardwareSetup and configure new softwarebuild or upgrade data centres

takes care of… So customers don’t have to …

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6. Go Global in Minutes6. Go Global in Minutes

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WHAT ARE AWS’ PRODUCTS AND HOW DO YOU USE THEM TO

RUN WORKLOADS?

Page 20: Uses, considerations, and recommendations for AWS

20© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

AWS ServicesAWS Services

AWS Global Infrastructure

Application Services

Networking

Deployment & Administration

DatabaseStorageCompute

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AWS Global InfrastructureAWS Global Infrastructure

9 Regions

40+ AWS Edge

Locations

Continuous

Expansion

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22© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Architected for Enterprise Security RequirementsArchitected for Enterprise Security Requirements

“The Amazon Virtual Private

Cloud [Amazon VPC] was a

unique option that offered an

additional level of security and

an ability to integrate with

other aspects of our

infrastructure.”Dr. Michael Miller, Head of HPC for

R&D

http://aws.amazon.com/security/

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23© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Shared Responsibility for Security & ComplianceShared Responsibility for Security & Compliance

Facilities

Physical Security

Compute

Infrastructure

Storage

Infrastructure

Network

Infrastructure

Virtualization Layer

Operating System

Applications

Security Groups

Firewalls

Network

Configuration

Account

Management

+ =

Customer

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24© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

On-Demand

Pay for compute capacity by the hour with no long-term commitments

For spiky workloads, or to define needs

Many purchase models to support different needsMany purchase models to support different needs

Reserved

Make a low, one-time payment and receive a significant discount on the hourly charge

For committed utilization

Spot

Bid for unused capacity, charged at a Spot Price which fluctuates based on supply and demand

For time-insensitive or transient workloads

Dedicated

Launch instances within Amazon VPC that run on hardware dedicated to a single customer

For highly sensitive or compliance related workloads

Free Tier

Get Started on AWS with free usage & no commitment

For POCs and getting started

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25© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Compute ServicesCompute Services

Amazon Elastic Compute Cloud

(EC2)Auto Scaling

Elastic Load Balancing

Actual

EC2

Elastic Virtual servers in the

cloud

Dynamic traffic distribution

Automated scaling of EC2

capacity

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26© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Networking ServicesNetworking Services

Amazon Virtual Private Cloud

(VPC):

AWS

DirectConnect

Amazon Route

53

Availability Zone B

Availability Zone A

Private, isolated section of the AWS

Cloud 

Private connectivity

between AWS and your data centre

Domain Name System (DNS) web

service.

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27© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Storage ServicesStorage Services

Amazon Elastic Block Storage (EBS)

EBS

Block storage for use with Amazon

EC2

Amazon Simple Storage Service

(S3)

ImagesVideosFilesBinariesSnapshots

Internet scale storage via

API

AWS Storage Gateway

S3, Glacier

Integrates on-premises IT and

AWS storage

Amazon Glacier

ImagesVideosFilesBinariesSnapshots

Storage for archiving and

backup

1 G to 1 TBProvisioned

iOPs

Up to 5 TB 11 x 9’s of durability

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Application ServicesApplication Services

Amazon CloudFront

distribute content globally

Amazon CloudSearch

Managed search service

Amazon Elastic Transcoder

Video transcoding in

the cloud

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29© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Database ServicesDatabase Services

Amazon RDS Amazon DynamoDB

Managed relational

database service

Managed NoSQL database service

DBA

Amazon ElastiCache

In-Memory Caching Service

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30© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Big Data ServicesBig Data Services

Amazon EMR (Elastic Map Reduce)

AWS Data Pipeline

Hosted Hadoop framework

Move data among AWS services and on-premises data

sources

Amazon Redshift

Petabyte-scale data warehouse

service

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31© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Deployment & AdministrationDeployment & Administration

Amazon CloudWatch

AWS IAM (Identity &

Access Mgmt)

AWS OpsWorks

AWS CloudFormati

on

AWS Elastic

Beanstalk

Web App

Enterprise App

Database

Monitor resources

Manage users, groups &

permissions

Dev-Ops framework for

application lifecycle

management

Templates to deploy & manage

Automate resource

management

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AWS supports a wide range of technologies

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The AWS Ecosystem Allows You to use your Existing Management ToolsThe AWS Ecosystem Allows You to use your Existing Management Tools

Single Pane of Glass

Management Tool Partners

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Elastic BeanstalkSimple Email ServiceCloudFormationRDS for OracleElastiCache2012

150+

2011

82

2010

61

2009

48

2008

24

2007

9Amazon FPSRed Hat EC2

SimpleDBCloudFrontEBSAvailability ZonesElastic IPs

Relational Database Service

Virtual Private CloudElastic Map Reduce

Auto ScalingReserved Instances

Elastic Load Balancer

Simple Notification ServiceRoute 53RDS Multi-AZSingapore RegionIdentity Access ManagementCluster Instances

RedshiftDynamoDB

Simple WorkflowCloudSearch

Storage GatewayRoute 53 Latency Based

RoutingRedShift

number of released features, sample services described

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The Good News is that Cloud isn’t an ‘All or Nothing’ ChoiceThe Good News is that Cloud isn’t an ‘All or Nothing’ Choice

Corporate Data Centres

On-Premises Resource

s

Cloud Resource

s

Integration

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AWS USE CASES

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AWS Use CasesAWS Use Cases

Disaster Recovery

Archive & Backup

Development & Test

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Disaster Recovery (Traditional)Disaster Recovery (Traditional)The traditional method of architecting and designing a properly functioning disaster recovery environment has many moving parts, is complex and generally takes a long time to deploy. Typical items that need to be in place to support a traditional disaster recovery environment include:

Facilities to house the infrastructure including power and cooling.

Security to ensure the physical protection of assets.

Suitable capacity to scale the environment.

Support for repairing, replacing, and refreshing the infrastructure.

Contractual agreements with an Internet Service Provider (ISP) to provide Internet connectivity that can sustain bandwidth utilization for the environment under a full load.

Network infrastructure such as firewalls, routers, switches, and load balancers.

Enough server capacity to run all mission-critical services including storage appliances for the supporting data and servers to run applications and backend services such as user authentication, Domain Name System (DNS), Dynamic Host Configuration Protocol (DHCP), monitoring, and alerting.

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Disaster Recovery (AWS)Disaster Recovery (AWS)

Businesses of all sizes are using cloud computing to enable faster disaster recovery of their critical IT systems, without incurring the expenses required to purchase and maintain a second physical datacenter. AWS provides a set of services that enable rapid recovery of your IT infrastructure and data, any time and from anywhere.

Using a combination of AWS’ services that Matt described earlier an organization has many different options for using AWS as their DR environment including:

Pilot Light for Simple Recovery into AWS

Warm Standby Solution

Multi-site Solution

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Pilot LightPilot Light Infrastructure elements for the pilot light itself typically include your

database servers, which would be replicating data to Amazon EC2. Depending on the system, there may be other critical data outside of the database that needs to be replicated to AWS. This is the critical core of the system (the pilot light) around which all other infrastructure pieces in AWS can quickly be provisioned (the rest of the furnace) to restore the complete system

To provision the remainder of the infrastructure to restore business critical services, you would typically have some pre-configured servers bundled as Amazon Machine Images (AMIs), which are ready to be started up at a moment’s notice. When starting recovery, instances from these AMIs come up quickly and find their role within the deployment around the pilot light. From a networking point of view, you can either use Elastic IP Addresses (which can be pre-allocated in the preparation phase for DR) and associate them with your instances, or use Elastic Load Balancing to distribute traffic to multiple instances. You would then update your DNS records to point at your Amazon EC2 instance or point to your Elastic Load Balancing using a CNAME.

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Pilot Light PreparationPilot Light Preparation

Key points for preparation:

Set up EC2 instances to replicate or mirror data.

Ensure that you have all supporting custom software packages available in AWS.

Create and Maintain Amazon Machine Images (AMI) of key servers where fast recovery is required.

Regularly run these servers, test them, and apply any software updates and configuration changes.

Consider automating the provisioning of AWS resources.

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Pilot Light RecoveryPilot Light Recovery

Key points for recovery:

Start your application EC2 instances from your custom AMIs.

Resize and/or scale any database / data store instances, where necessary.

Change DNS to point at the EC2 servers.

Install and configure any non-AMI based systems, ideally in an automated fashion.

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Pilot Light OverviewPilot Light Overview

Before After

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Warm StandbyWarm Standby A warm standby solution extends the pilot light elements and

preparation. It further decreases the recovery time because in this case, some services are always running. By identifying your business-critical systems, you would fully duplicate these systems on AWS and have them always on.

These servers can be running on a minimum sized fleet of EC2 instances on the smallest sizes possible. This solution is not scaled to take a full-production load, but it is fully functional. It may be used for non-production work, such as testing, quality assurance, and internal use, etc.

In a disaster, the system is scaled up quickly to handle the production load. In AWS, this can be done by adding more instances to the load balancer and by resizing the small capacity servers to run on larger EC2 instance types. Horizontal scaling, if possible, is often preferred over vertical scaling.

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Warm Standby PreparationWarm Standby Preparation

Key points for preparation:

Set up EC2 instances to replicate or mirror data.

Create and maintain Amazon Machine Images (AMIs).

Run your application using a minimal footprint of EC2 instances or AWS infrastructure.

Patch and update software and configuration files in line with your live environment.

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Warm Standby RecoveryWarm Standby Recovery

Key points for recovery:

Start applications on larger EC2 Instance types as needed (vertical scaling).

Increase the size of the EC2 fleets in service with the Load Balancer (horizontal scaling).

Change the DNS records so that all traffic is routed to the AWS environment.

Consider using Auto scaling to right-size the fleet or accommodate the increased load.

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Warm Standby OverviewWarm Standby Overview

Before After

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Multi-siteMulti-site A multi-site solution runs in AWS as well as on your existing on-site

infrastructure in an active-active configuration. The data replication method that you employ will be determined by the recovery point you choose. Various replication methods exist.

A weighted DNS service, such as Amazon Route 53, is used to route production traffic to the different sites. A proportion of traffic will go to your infrastructure in AWS, and the remainder will go to your on-site infrastructure.

In an on-site disaster situation, you can adjust the DNS weighting and send all traffic to the AWS servers. The capacity of the AWS service can be rapidly increased to handle the full production load. EC2 Auto Scaling can be used to automate this process. You may need some application logic to detect the failure of the primary database services and cut over to the parallel database services running in AWS.

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Multi-site PreparationMulti-site Preparation

Key points for preparation:

Set up your AWS environment to duplicate your production environment.

Set up DNS weighting or similar technology to distribute incoming requests to both sites.

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50© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Multi-site RecoveryMulti-site Recovery

Key points for recovery:

Change the DNS weighting, so that all requests are sent to the AWS site.

Have application logic for failover to use the local AWS database servers.

Consider using Auto scaling to automatically right-size the AWS fleet.

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Multi-site OverviewMulti-site Overview

Before After

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52© 2014 Scalar Decisions Inc. Not for distribution outside of intended audience

Archive & Backup (Traditional)Archive & Backup (Traditional)The traditional method of architecting and designing a fully functioning archive & backup environment is typically painful and requires constant care and feeding to ensure the environment is running optimally and also has the resources it requires. Typical items that need to be in place to support a traditional backup & archive environment include:

An off-site location to store either tapes or a fully functioning disaster recovery environment to backup or archive data.

Storage environment to store the archived & backup data (SAN, VTL, Tape Library, etc.).

Software to ensure that scheduled jobs, backup catalogs and metadata is stored in a central repository.

Suitable capacity to scale the environment.

Support for repairing, replacing, and refreshing the infrastructure.

Storage infrastructure such as SAN, NAS, FC switching, network switching.

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Archive & Backup (AWS)Archive & Backup (AWS)AWS has many platforms for storing your mission-critical data. With AWS, you pay as you go and you can scale up and down as required. With your data stored in the AWS cloud, it’s easy to use other Amazon Web Services to take advantage of additional cost savings and benefits. Amazon storage services remove the need for complex and time-consuming capacity planning, ongoing negotiations with multiple hardware and software vendors, specialized training, and maintenance of offsite facilities or transportation of storage media to third party offsite locations

Using a combination of AWS’ services that Matt described earlier an organization has many different options for using AWS for archive & backup including:

Amazon Glacier

Amazon S3

AWS Storage Gateway

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AWS Storage GatewayAWS Storage Gateway The AWS Storage Gateway’s software appliance is available for

download as a virtual machine (VM) image that you install on a host in your datacenter. Once you’ve installed your gateway and associated it with your AWS Account through our activation process, you can use the AWS Management Console to create either Gateway-Cached or Gateway-Stored storage volumes that can be mounted as iSCSI devices by your on-premises applications.

Three main modes of operation: Gateway-Cached Volumes Gateway-Stored Volumes Gateway-VTL

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Gateway-Cache VolumesGateway-Cache Volumes Gateway-Cached volumes allow you to utilize Amazon S3 for your

primary data, while retaining some portion of it locally in a cache for frequently accessed data

As your applications write data to and read data from a Gateway-Cached volume, this data is initially stored on-premises on Direct Attached Storage (DAS), Network Attached Storage (NAS), or Storage Area Network (SAN) storage

This local storage is used to prepare and buffer data for upload to your storage volume in Amazon S3 as well as to cache your application’s recently written and recently read data on-premises for low-latency access

When your application reads data from your Gateway-Cached volume, your on-premises gateway first checks its local cache for this data before checking Amazon S3

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Gateway-Stored VolumesGateway-Stored Volumes Gateway-Stored volumes store your primary data locally, while

asynchronously backing up that data to AWS

Your Gateway-Stored volumes are mapped to on-premises DAS, NAS, or SAN storage. You can start with either new storage or storage already holding data

As your on-premises applications write data to and read data from your storage volume, this data is retrieved locally from or stored locally on the on-premises DAS, NAS, or SAN storage you mapped to your storage volume

Your on-premises gateway also temporarily stores this data on local DAS, NAS, or SAN storage to prepare and buffer it for upload to Amazon S3, where it is stored in the form of Amazon EBS snapshots

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Gateway-Cache/Stored OverviewGateway-Cache/Stored Overview

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Gateway-VTLGateway-VTL Presents your existing backup application with an industry-

standard iSCSI-based Virtual Tape Library (VTL) consisting of a virtual media changer and virtual tape drives

Each Virtual Tape Library can hold up to 1,500 virtual tapes with a maximum aggregate capacity of 150 TB

Once created, virtual tapes are discovered by your backup application using its standard media inventory procedure, are available for immediate access and are backed by Amazon S3

When you no longer require immediate or frequent access to data contained on a virtual tape, you can use your backup application to move it from its Virtual Tape Library to your Virtual Tape Shelf (VTS) that is backed by Amazon Glacier, further reducing your storage costs

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Gateway-VTL OverviewGateway-VTL Overview

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AWS Storage Gateway OverviewAWS Storage Gateway Overview

Recommended only for archive & backup purposes

Ensure proper thought and care is given when architecting your solutions to your outbound network connection to AWS

All network communication between the AWS Storage Gateway appliance and AWS is encrypted end-to-end and data is encrypted at rest using 256-bit AES encryption

Snapshots are available for both Gateway-Cache & Gateway-Stored volumes

For more information talk to your local Scalar SE or go to http://aws.amazon.com/storagegateway/

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Test & Development (Traditional)Test & Development (Traditional)

The traditional method most companies approach test & development environments is an environment that is either lumped in with production infrastructure (sharing network, storage, compute, cooling, etc.) or a separate environment that requires its own network, compute, storage, power, cooling, etc. Either approach is not ideal and does not allow IT departments to move at the pace required to compete in an increasingly shorter time to market dev/test/release cycle that many organization are adopting. Pitfalls to both traditional approaches include:

Facilities to house the infrastructure including power and cooling.

Possibility of test/dev environments impacting production

Rigid environments with long configuration timelines to setup new development and test environments

Support for repairing, replacing, and refreshing the infrastructure.

Network infrastructure such as firewalls, routers, switches, and load balancers.

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Test & Development (AWS)Test & Development (AWS)

By running your organization’s test & development environments in AWS you gain the ability to fail often and fail fast as well as less rigidity overall when it comes to the build/test/fix cycle. All the power is in the hands of your developers and typically IT does not need to be involved at all except for the initial architecture and configuration as it pertains to connecting your developers environment to AWS. Some services that typically are in-scope are:

Virtual Private Cloud

CloudFormation

Amazon API & SDKs

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Virtual Private CloudVirtual Private Cloud

By leveraging VPC you can simply make AWS look like an extension of your network and push development & test completely to AWS freeing up local on-premise resources for production and also giving your developers a fully extensible and self-service option:

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CloudFormationCloudFormation

CloudFormation makes it easy to organize and deploy a collection of AWS resources and lets you describe any dependencies or special parameters to pass in at runtime. This is great for the dev/test use case as being able to package up your entire application as a human readable manifest and deploy it consistently is great as it:

Eliminates configuration drift

Automates the entire infrastructure

Can be stored along with the application source code in your source repository of choice (“Infrastructure-as-code”)

Great for quick smoke tests (deploy, test, tear down)

Easily integrates with other configuration management tools (Puppet, Chef, etc.)

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TestingTesting

Once you have your developers developing in AWS and leveraging configuration and automation platforms (CloudFormation, Puppet, Chef, etc.) creating test environments for all different scenarios now takes minutes rather than days and if you are leveraging the “Infrastructure-as-code” strategy. Some common test scenarios are:

Unit Tests

Smoke Test

User Acceptance Testing (UAT)

Integration Testing

Load & Performance Testing

Blue/Green Testing

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DATA SOVEREIGNTY

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Amazon Web ServicesAmazon Web Services

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Rapid Expansion & GrowthRapid Expansion & Growth

*Note: S3 is AWS’ storage product and used as proxy for AWS scale / growth . Source: Company data; KPCB May 24 2014.

Q4 20

06

Q4 20

07

Q4 20

08

Q4 20

09

Q4 20

10

Q4 20

11

Q1 20

12

Q3 20

12

Q2 20

130

500

1,000

1,500

2,000

Objects Stored in Amazon S3*

Num

ber

of

Am

azo

n S

3 O

bje

cts

(B)

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What underpins AWS success?What underpins AWS success?

Pay for what you use

Programmatic scalability

(The appearance of) unlimited capacity

Deep library of web tools – and more coming all the time

Scale like never before

Do things you could never do before

Dramatic reduction in financial risk

Focus on what you need to do

Technical Features & Value

Business Benefits

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And yet…And yet…

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Common Impediments to AdoptionCommon Impediments to Adoption Many workloads aren’t cloud ready

Savings are not guaranteed and difficult to forecast

Legal & regulatory issues abound – but which ones?

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Applicable Laws & RegulationsApplicable Laws & RegulationsLaw or

RegulationGoverning

BodyJurisdiction Applicabilit

yTo whom does it

apply?Cloud

Services Allowed?

Conditions

PIPEDA (law)

Office of the Privacy

Commissioner of Canada

Canada Protection of

Personal Information

The law applies to almost all organizations and organizations that conduct commercial activities within Canada.

Yes

Organizations are responsible for ensuring cloud service providers can provide security and privacy controls that meet PIPEDA requirements.

OSFI Guideline B-

10 (industry guideline)

Office of the Superintende

nt of Financial

Institutions (OSFI)

Canada Outsourcing

Agreements

The guideline applies to outsourcing agreements for all Canadian federally regulated entities (FREs), such as banks and insurance companies.

Yes

Organizations are responsible for ensuring cloud service providers can provide security and privacy controls that meet B-10 requirements.

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Applicable Laws & RegulationsApplicable Laws & RegulationsLaw or

Regulation

Governing Body

Jurisdiction Applicability To whom does it apply?

Cloud Services Allowed?

Conditions

Rules Notice 14-0012 for Outsourcing Arrangement

s (industry guidelines)

Investment Industry

Regulatory Organization of Canada

Canada Outsourcing

Agreements

The guideline applies to financial institutions involved in debt markets, equity markets, investments; and to investment brokers, dealers, and providers.

Yes

Organizations are responsible for ensuring cloud service providers can provide security and privacy controls that meet 14-0012 requirements. O Organizations are not allowed to outsource business functions/roles that must be performed by approved persons, which means that most client facing activities cannot be outsourced.

SOX (law)

Securities and

Exchange Commission

(SEC)

U.S. & Some Canadian

Internal Control & Reporting

Requirements

All listed companies in the U.S., and all international companies registered with the U.S. Stock Exchange.

Yes

Organizations are responsible for ensuring cloud service providers can provide security controls that meet SOX requirements. . Cloud services should have a SSAE 16 audit report (formerly called SAS 70) as these audits are the primary method for evaluating a third-party’s compliance with SOX.

IT Handbook (industry

guidelines)

FFIEC Members

U.S.

Outsourcing Arrangements,

Security Controls, and

Privacy Controls

Financial institutions such as banks, insurance companies, and credit unions.

Yes

Organizations are responsible for ensuring cloud service providers can provide security controls that meet IT Handbook guidelines. .Cloud service providers should have a SSAE 16/SAS 70 audit report as these audits can be used for evaluating a third-party’s compliance with the IT Handbook.

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US Patriot ActUS Patriot Act Law allows US law enforcement to inspect data without informing

affected party (and in some cases with limited judicial oversight)

Canadian organizations are responsible for data “throughout its lifecycle”, including transfers across borders

Most cases, organizations are not prohibited from using US-based cloud services – those organizations should seek meaningful contractual commitments regarding the procedural, technical & physical security protections

Privacy Commissioner study in 2009 of surveillance laws in Canada, US, France & UK concluded that Canadians are at risk of personal information being seized by Canadian authorities, and that there’s a risk this information is already being shared with US authorities

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Focus of Scalar White Paper Focus of Scalar White Paper

PIPEDA

OSFI B10

IROC Notice 14

HIPAA (US)

GLBA (US)

SOX (US)

IT Handbook (FFIEC - US)

PCI DSS (Global)

Due diligence requirements & compliance principles for major regulations & laws

Notable restrictions or stringent compliance requirements

Key themes – due diligence & controls, audit & compliance, accountability, risk assessment

Regulations Topics Covered

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Key ConclusionsKey Conclusions Most laws & regulations do not prevent using cloud services – they

outline controls & standards, much like any outsourced or managed service – you remain accountable for its security & safety

Some laws require disclosure be made with respect to personal information leaving the province or country

As with any audit, the key factors to demonstrate compliance are:– Clear controls– Audit rights to inspect & enforce those controls– Independent reports to inspect compliance

Legal concerns about data privacy can persist – but technology & procedural controls & audits can mitigate that risk

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AWS Compliance StandardsAWS Compliance Standards

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WHY SCALAR?

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How Scalar can helpHow Scalar can help

Independence

Technical skills & experience

Commitment to AWS & cloud

POCs & Test Environments

Architecture & design

Build & configuration

Ongoing management & support

Escalated support & AWS relationship

Why Scalar? Where we can help

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QUESTIONS?

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THANK YOU.


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