Lessons in Cloud ProcurementFrank DiGiammarinoGeneral Manager, Innovation and Global ExpansionWorldwide Public Sector, Amazon Web Services
Deep experience in building and operating
global web scale systems
About Amazon Web Services
?…get into cloud computing?
How did Amazon…
PlatformServices
Databases
Caching
Relational
No SQL
Analytics
Hadoop
Real-time
Data Workflows
Data Warehouse
App Services
Queuing
Orchestration
App Streaming
Transcoding
Search
Deployment & Management
Containers
Dev/ops Tools
Resource Templates
Usage Tracking
Monitoring and Logs
Mobile Services
Identity
Sync
Mobile Analytics
Notifications
FoundationServices
Compute(VMs, Auto-scaling and Load Balancing)
Storage(Object, Block and Archive)
Security & Access Control
Networking
Infrastructure Regions CDN and Points of PresenceAvailability Zones
EnterpriseApplications
Virtual Desktops
Collaboration and Sharing
Lower Costs with AWS Up-Front and Increase Savings as Your Usage Grows
Source: IDC Whitepaper, sponsored by Amazon, “The Business Value of Amazon Web Services Accelerates Over Time.”
July 2012
1
“Average of 400 servers replaced per customer”
Replace up-front capital expense with
low variable cost
2
45 Price Reductions
Economies of scale allow us to continually
lower costs
3
Pricing model choice to support variable &
stable workloads
4
Save more money as you grow bigger
On-demand
Reserved
Spot
Tiered Pricing
Volume DiscountsCustom Pricing
Changing IT Acquisition Strategies
Old World IT
• Price lock• Vendor lock-in• Rigid CLIN structure• CapEx• Budget for tech refresh• Months to plan and order• Design lock-in
New World of Cloud Computing
• Variable costs• No required minimum commitments• Rapid innovation• OpEx• Cloud providers continually upgrade• Rapid deployments• Agile architecture
Shifts from serving existing infrastructure to serving the mission of the agency
Best Practices
Don’t Be Overly Prescriptive
• Focus on overall performance-based requirements
• Don’t dictate specific methods, hardware, and equipment
• Leverage the Cloud Service Providers (CSPs) best practices for data center operations
Flexible Pricing Approach
• Request price transparency
• Accept multiple pricing models
• Accept fluctuating prices
• Incorporate a pay-per-use model
