Accelerating your Migration to AWS

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1 Accelerating your Migration to AWS Manav Prabhakar, Practice Manager, Professional Services, AWS ASEAN Peter Shi, Commercial Architect, Business Development, AWS APAC

2 Agenda Why migrate? How to migrate? Cloud economics and the business case Ongoing cost optimization How to get started Q&A

3 Why Migrate? Cost Savings (TCO) Staff Productivity Operational Resilience Business Agility What is it? Infrastructure cost savings / avoidance from moving to the Cloud. Efficiency improvement by function on a task by task basis. Benefit of improving SLAs & reducing unplanned outage. Deploying new features / applications faster and reducing errors. Examples 50%+ reduction in TCO (GE) Over 500 hours per year of server configuration time saved (Sage) Critical workloads run in multiple AZs & Regions for robust DR (Expedia) Launch of new products 75% faster (Unilever) Typical Focus Further Compelling Cloud Benefits

4 Why Migrate? Increased agility through on-demand capacity and reduced time to stand up new instances from weeks to hours. Globe uses services such as Amazon EC2, Amazon RDS and AWS Lambda for its daily business workloads and processes, and have enjoyed savings of close to USD 2 million since. Uses Amazon S3 to host more than 23,000 on-demand titles. They also use various AWS services to deliver close to 2 petabytes of content every month.

5 Migration Key Success Factors

6 How to Migrate? Clear commitment and direction from the leadership to move to cloud.

7 How to Migrate? Gain the support of internal stakeholders (Business, Security, Operations, Procurement, Finance).

8 How to Migrate? Think big, start small. Build experience, set ambitious goals, and drive the team to meet them.

9 How to Migrate? Categorize your applications. Start with quick wins but visible workloads for which you can capture benefits.

10 How to Migrate? Establish the Cloud Team. Train and enable them for success.

11 How to Migrate? Establish the business case and identify metrics that can be tracked.

12 How to Migrate? Establish the governance and mechanisms for ongoing optimization.

13 The Migration Process

14 The Migration Process Overview Migration & Validation Migration Preparation & Business Case Portfolio Discovery & Planning Operate & Optimize Application Design

15 Preparing for Migration EXECUTIVE SPONSORSHIP

16 Build Foundational Capabilities EXECUTIVE SPONSORSHIP PEOPLE PROCESS TECH Cloud Team Technical Training Hiring People & Service Providers Communication Plan Operations Provisioning Billing Optimization Security Operations Landing Zone Security Foundation Operations Tools Domains Direct Connect Central Services Service Catalog IAM Config Start Accounts Security Network Identity & Access Build & Iterate VPN S3 CloudTrail Lambda

17 Migration & Validation Migration Preparation & Business Case Portfolio Discovery & Planning Operate & Optimize Application Design

18 Migration Planning Disconnected and Incomplete Data Gathering Data and Organizing Discovery & Planning Outcomes Performance Information Cost Model Asset Inventories Tribal Knowledge App Configuration Data Applications Infrastructure Migration Patterns Resource Model CMBD SLA/OLA Architecture AWS Application Discovery Service Performance Project Plan Business Case

19 Migration & Validation Migration Preparation & Business Case Portfolio Discovery & Planning Operate & Optimize Application Design

20 App Migration Patterns Manual Install Manual Config Automate Use Migration Tools Manual Deploy Determine Migration Path Determine new platform Modify underlying Infrastructure Discover/Assess/Prioritize Applications Validation Transition Production Retain / Revisit Purchase COTS/ SaaS & licensing Manual Install & Setup Retire / Decommission Redesign App Code Application/ Development Infrastructure Architecture Full ALM / SDLC Integration

21 Application Modernization / Change Effort 6R s Approach Migration Patterns

22 Tools and Enablers Discovery and planning Application and Server migrations VMWare Cloud on AWS Application profiling / operations AWS Migration Hub Service AWS Server Migration Service AWS Database Migration Service AWS Managed Services Data Transfer S3 Transfer Acceleration AWS Storage and File Gateway AWS Snowball & Snowmobile AWS Direct Connect Amazon Kinesis Firehose

23 Migration Organizational Strategies - Cloud Team Cloud Team Roles Role / Skills Tactics Cloud Leader Overall leadership Defines the migration prioritization Brand and collocate the team Lead Architect Accountable for overall architecture Teams with cloud leader for execution Think big, start small Infra Eng Security Eng Operations Eng Application Eng Build cloud infra stacks (templates, standards) Integration with on-prem infra Compliance and security standards Cloud specific controls Interface into CISO Standards to facilitate deployment into ops Monitoring, alerting, logging Consumer of cloud services Publicize goals and progress Celebrate Success Supported by Legal and Finance

24 Iterating on Your Operating Model PEOPLE PROCESS TECH Cloud team Technical Training Hiring People & Service Providers Communication Plan Operations Model Provisioning Billing Optimization Security Operations Landing Zone Security Foundation Operations Tools Domains Direct Connect Central Services Service Catalog IAM Config Start Accounts Security Network Identity & Access Build & Iterate VPN S3 CloudTrail Lambda

25 Iterating on Your Operating Model PEOPLE PROCESS TECH Cloud team Technical Training & Certifications Hiring People & Service Providers Communication Plan Operations Model Provisioning Billing Optimization Security Operations Migration process Discovery & Planning Landing Zone Security Foundation Operations Tools New AWS Services Hybrid Integrations

26 Cloud Economics and the Business Case

27 The Economics of the Cloud are Compelling Infrastructure cost $ Time

28 The Economics of the Cloud are Compelling Infrastructure cost $ Key: Predicted demand Time

29 The Economics of the Cloud are Compelling Infrastructure cost $ Large capital expenditure Key: Predicted demand Traditional hardware Time

30 The Economics of the Cloud are Compelling Infrastructure cost $ Large capital expenditure Key: Predicted demand Traditional hardware Actual demand Time

31 The Economics of the Cloud are Compelling Infrastructure cost $ Large capital expenditure Key: Predicted demand Opportunity cost Traditional hardware Actual demand Time

32 The Economics of the Cloud are Compelling Infrastructure cost $ Large capital expenditure Lost opportunity Key: Predicted demand Opportunity cost Traditional hardware Actual demand Time

33 The Economics of the Cloud are Compelling Infrastructure cost $ Large capital expenditure Lost opportunity Key: Predicted demand Opportunity cost Traditional hardware Actual demand Automated virtualization Time

34 But cost savings are only the tip of the iceberg.

35 Why Migrate? Cost Savings (TCO) Staff Productivity Operational Resilience Business Agility What is it? Infrastructure cost savings / avoidance from moving to the Cloud. Efficiency improvement by function on a task by task basis. Benefit of improving SLAs & reducing unplanned outage. Deploying new features / applications faster and reducing errors. Examples 50%+ reduction in TCO (GE) Over 500 hours per year of server configuration time saved (Sage) Critical workloads run in multiple AZs & Regions for robust DR (Expedia) Launch of new products 75% faster (Unilever) Typical Focus Further Compelling Cloud Benefits

36 Proven Methodology to Build a Business Case Discovery IT Landscape Mapping Total Cost of Ownership Migration Business Case Go/No-Go Decision Total Cost of Migration

37 Discovery Data Collection Sample Output Compute Environment Compute Utilization Applications Storage AWS Application Discovery Service Applications Performance Infrastructure Virtual Machines 1000 DR 17% 1,200 Servers Physical Servers 200 Production 41% Unused 60% Avg. Peak CPU Util 40% Avg. Peak RAM Util 45% End-user Computing 26% Batch Processing 17% SLES 8% OS Digital 22% Business 35% Linux 29% Others 3 Data Centers Test & Dev 42% Unused 55% Window s 41% RHEL 22% 19 IT Staff

38 IT Landscape Mapping 1. Compute Mapping 2. Storage Servers EC2 Instances Elastic Container Service Mapping Disk Database Tape EBS S3

39 IT Landscape Mapping Example 1. Compute vcpu RAM (GB) Mapped AWS Instance Ondemand Price (US$)* 4 16 C5.xlarge $0.196 * Asia Pacific (Singapore) Prices for Amazon Linux instances

40 IT Landscape Mapping Example 1. Compute vcpu RAM (GB) Mapped AWS Instance Ondemand Price (US$)* Peak CPU Util. (%) Peak RAM Util. (%) Rightsized vcpu Rightsized RAM (GB) Rightsized Instance On-demand Price (US$)* Cost Savings (%) 4 16 C5.xlarge $ % 50% 2 8 C5.large $ % 2. Storage Storage class Price for 1 PB of Storage (US$) EBS-gp2 $125,829 EBS st1 $56,623 S3 $26,214 S3 IA $20,972 Glacier $5,243 Pick the right storage class for your needs! * Asia Pacific (Singapore) Prices for Amazon Linux instances

41 Total Cost of Ownership 1 Server Costs Hardware Server, Rack Chassis PDUs, ToR Switches (+Maintenance) Software - OS, Virtualization Licenses (+Maintenance) Facilities Cost Space Power Cooling 2 Storage Costs Hardware Storage Disks, SAN/FC Switches Software - Backup Facilities Cost Space Power Cooling Business Value: 3 Network Costs Network Hardware LAN Switches, Load Balancer Bandwidth costs Software Network Monitoring Facilities Cost Space Power Cooling Cost of delays Risk premium Competitive abilities Governance Etc. 4 IT Labor Costs Server Admin, Virtualization Admin, Storage Admin, Network Admin, Support Team 5 Extras Project planning, Advisors, Legal, Contractors, Managed Services, Training, Cost of capital Diagram doesn t include every cost item. E.g. software costs can include database, management, middle tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes etc. IT labor costs can include security admin and application admin costs.

42 Total Cost of Migration Application Migration and Transformation Platform Investment Hiring and Training

43 Comprehensive Business Case The business case demonstrates a $9.5 m (36%) 5-year TCO savings potential by migrating to AWS. Total Cost of Ownership Comparison (5 Years) $26.7 m 36% $17.2 m Additional benefits: No upfront costs* or capital expenses IT Staff Productivity improvement of ~20% or worth $1.6 m over 5 years not included in the TCO Reduce infrastructure provisioning time from 4-6 weeks to hours "Do-nothing" Cost Base AWS Cost Base $700,000,000 Cash Flow Analysis $600,000,000 $500,000,000 $400,000,000 Return on Investment: 306% Payback period: 2 years and 3 months $300,000,000 $200,000,000 $100,000,000 $- Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 $(100,000,000) $(200,000,000)

44 Ongoing Cost Optimization

45 AWS continues to lower prices over time 65 Price Reductions!

46 AWS shares how to save cost on AWS AWS re:invent 2016: Cost Optimizing Your Architecture: Practical Design Steps For Savings (ARC310)

47 You can significantly reduce your Total Cost of Ownership on AWS compared to on-premises infrastructure Three years on, we ve saved over $100 million in avoided capital and are about 65% in the cloud. Dominic Shine, CIO News Corp Leveraging the AWS platform, we ve been able to seamlessly scale our infrastructure, better serve our customers across the globe, and reduce our fixed costs by 75% and operational costs by 83%. Valentino Volonghi, CIO AdRoll We ve realized a 52 percent reduction in TCO Ultimately these savings are a byproduct of doing the right thing. Ben Cabanas, CTO, GE Transportation

48 The Pillars of Cost Optimisation Right Sizing your Resources Increase Elasticity Use Reserved Instances Match Storage Type to Need Design for Cost

49 By using AWS Spot instances, we've been able to save up to 75 percent a month simply by changing four lines of code. It makes perfect sense for saving money when you're running continuous integration workloads or pipeline processing. Matthew Leventi - Lead Engineer

50 The Pillars of Cost Optimisation Right Sizing your Resources Increase Elasticity Use Reserved Instances Match Storage Type to Need Design for Cost Cost Management & Optimisation Mechanisms

51 Cost Management & Optimisation Mechanisms Make saving money easy! Cost visibility, optimisation metrics, and targets Defined & validated cost allocation tags Optimisation tools Make saving money a desired activity! Assigned optimisation responsibility and KPIs Collaboration between Finance and Engineering Optimisation DNA

52 Cost Management & Optimisation Tooling demo

53 How to get started

54 Review the assets associated with this webinar series; from the Migration Microsite, including Cloud Adoption Framework (CAF) Migration Whitepaper AWS Migration Hub AWS Application Discovery Service Consider an AWS Migration Partner; Migration Partner Solutions:

55 Want to Learn More? Get Started with Free Digital Training Access free digital training to learn about AWS services and solutions for migrating to AWS. Technical Essentials Migrating to AWS Free AWS digital training Architecting on AWS Learn more with Classroom Based Training Take the two-day, classroom-based training course covering the entire migration process: Application portfolio discovery Migration planning and design Application migration Post-migration validation and application optimization IT Project Managers Solutions Architects Visit

56 Thank You For Attending AWS Migrating to the Cloud Webinar Series. We hope you found it interesting! A kind reminder to complete the survey. Let us know what you thought of today s event and how we can improve the event experience for you in the future. aws-apac-marketing@amazon.com twitter.com/awscloud facebook.com/amazonwebservices youtube.com/user/amazonwebservices slideshare.net/amazonwebservices twitch.tv/aws

57 Q&A