AWS Transformation Day. Thomas Blood, EMEA Enterprise Strategist 2017

Transcription

1 AWS Transformation Day Thomas Blood, EMEA Enterprise Strategist 2017

2 PERSONAL EXPERIENCE

3 Priorities Time-to Market Inflexible Platform Technical Debt Unplanned Work Customer Experience Collaboration 6 months per release Months to procure/provision 60 80% of effort Outages, bugs, compliance Performance and outages Integrating with other business units is technically difficult High cost & low productivity

4 New Principles 1. Act like a start-up (that is funded and has domain expertise) 2. Embrace cloud computing 3. Use the right tool for each requirement 4. Use out-of-box functionality whenever possible 5. Create a microservices architecture 6. Enforce YAGNI (You Aren t Going to Need It) 7. Cultivate DevOps 8. You build it, you own it! Think Big, Start Small, Go Fast

5 Business Case Considerations Business Agility Operational Resilience Workforce Productivity Cost Avoidance Operational Costs

6 Business Case Considerations Business Agility Operational Resilience Workforce Productivity Cost Avoidance Operational Costs Reduced Time to Market Increased Pace of Experimentation Increased operational agility (new market penetration, divestiture, acquisition) Revenue & margin improvements due to reduced outages Automation drives maintenance efficiencies Reduced cost of planned and unplanned outages Increased Developer Productivity Ability to match supply & demand Transparency drives a lean mindset Leverage innovative services like AI

7 Business Case Considerations Business Agility Operational Resilience Workforce Productivity Cost Avoidance Operational Costs Reduced Time to Market Increased Pace of Experimentation Increased operational agility (new market penetration, divestiture, acquisition) Revenue & margin improvements due to reduced outages Automation drives maintenance efficiencies Reduced cost of planned and unplanned outages Increased Developer Productivity Ability to match supply & demand Transparency drives a lean mindset Leverage innovative services like AI

8 ENTERPRISE EXPERIENCE

9 Transforming Business with AWS Cost Savings Lift & shift on average results in 30%+ savings on infrastructure (storage, servers, overhead/maintenance, licensing, facilities, network, labor) CapEx/OpEx Keeping EBITDA strong and enabling flexibility M&A Enables faster integration and lowered risk during data center consolidation Divestitures Eliminates the need for costly Transition Service Agreements (TSAs) and maximizes value for the buyer and seller Global Expansion Faster time to market, low exit costs, low upfront costs Reduced Risk Minimize downtime, financial & HR risk

10 COST SAVINGS

11 TCO = acquisition costs + operating costs illustrative 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 Storage admin costs Facilities cost Space Power Cooling 3 Network costs Network hardware LAN switches, load balancer bandwidth costs Network admin costs Facilities cost Space Power Cooling 4 IT labor costs Server admin virtualization admin The diagram doesn t include every cost item. For example, software costs can include database, management, and middle-tier software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes, and so on. IT labor costs can include security admin and application admin costs.

12 Lowering TCO Through cost optimization 30% 60-70% On- Premises Lift & Shift Instance Right- Sizing Improved Elasticity Measure, Monitor, Improve Optimized EC2 Storage Optimization Serverless Architecture Managed Services True AWS Optimized Traditional TCO Comparisons

13 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 As-Is

14 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 $600 Target: 3-Year Migration $400 $200 $0 Amount retained on-premises (e.g. hybrid model) Beginning Year 1 Year 2 Year 3 Year 4 Year 5 On-Premises As-Is

15 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 Amount moved to AWS (at ~65% lower cost, based on TCO savings) $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 On-Premises AWS As-Is

16 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 On-Premises AWS

17 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 On-Premises AWS

18 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 Potential Migration Bubble $800 $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 Breakeven Point On-Premises AWS

19 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 Potential Migration Bubble Cumulative 5- Year TCO Cost Savings & Business Value $600 $400 $200 $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 Breakeven Point On-Premises AWS

20 5-Year Forecasted TCO & Migration Costs $1,200 $1,000 $800 Potential Migration Bubble Cumulative 5- Year TCO Cost Savings & Business Value $600 $400 $200 Additional Cost Savings from Optimization $0 Beginning Year 1 Year 2 Year 3 Year 4 Year 5 Breakeven Point On-Premises AWS

21 CAPEX/ OPEX AND EBITDA

22 Is AWS Spend CapEx or OpEx? AWS Reservations Amazon EC2 Reserved Instances Owned by customer Can be sold by customer Specific hardware is dedicated to customer (not multi-tenant) Amazon EC2 Reserved Dedicated Hosts Amazon RDS Reserved Instances Amazon Redshift Reserved Instances Amazon ElastiCache Reserved Cache Amazon DynamoDB Reserved Capacity

23 M&A AND DIVESTITURES

24 Why Use AWS for M&A/Divestitures? Integrate or Separate Faster Customers observe 50%+ faster integration or separation by using AWS during mergers, acquisitions & divestitures Reduce Risk Minimize physical moves during data center consolidation, risks associated with aging hardware, customer retention, etc. Eliminate the need for costly Transition Service Agreements (TSAs) and maximize value for the buyer and seller

25 Every Divestiture has a set of Business Goals Shed non-core businesses so we can focus on our core competencies Command a high market value on the sale of the divested business unit Transform our business model Reduce unnecessary costs and regulatory burdens

26 How Hess used AWS for its largest divestiture Agility: Reduce the lead time needed to design, develop, implement and test complex IT environments for separation Moved 300 servers and 500TB of data to AWS Completed AWS migration in 6 months 50% faster than with physical servers Supported by the AWS Partner Network (APN) Separated systems prior to closing the deal

27 How Hess used AWS for its largest divestiture Cost Savings: Decouple dependence on Hess s IT systems, so Hess does not continue to bear operating costs of the sold business Completely decoupled IT assets before the sale Minimized capital expenditures AWS cost structure enabled them to buy only what was necessary

28 How Hess used AWS for its largest divestiture Value: Attain the highest value for the divested business unit. Largest divestiture in Hess s history Gained $2.6B from the sale Beat analysts estimates Stock price reached highest intraday price since 2008

29 GLOBAL EXPANSION

30 Customer Expanding from California to Tokyo

31 How AWS Impacts a Global Expansion Company planned a global expansion from U.S. to Tokyo - 36 month time to market vs. 6 month time to market using AWS - Breakeven point for global expansion 20 months sooner than on-premises Cumulative (5-yr) business impact: $8.5M - Cost avoidance from using AWS: Upfront cost reduced by $2.5M Sunk costs reduced by $170K+ Exit costs reduced by $375K+ - Reduced HR risk and tax exposure

32 SAMPLE BENEFITS

33 Putting It All Together

34 Putting It All Together Business Agility 77% faster to deliver business applications Rapid experimentation Reduced technical debt Streamlined M&A Activity

35 Putting It All Together Business Agility Operational Resilience 77% faster to deliver business applications Rapid experimentation Reduced technical debt 98% reduction in P1/P0 s Improved security posture Improved Performance Streamlined M&A Activity

36 Putting It All Together Business Agility Operational Resilience Workforce Productivity 77% faster to deliver business applications 98% reduction in P1/P0 s 15 automated bots developed Rapid experimentation Reduced technical debt Improved security posture Improved Performance Shift to self-service culture DevOps in Practice Streamlined M&A Activity

37 Putting It All Together Business Agility Operational Resilience Workforce Productivity Cost Avoidance 77% faster to deliver business applications 98% reduction in P1/P0 s 15 automated bots developed 52% average TCO savings Rapid experimentation Improved security posture Shift to self-service culture 80% cloud first adoption Reduced technical debt Improved Performance DevOps in Practice Streamlined M&A Activity

38 Putting It All Together Business Agility Operational Resilience Workforce Productivity Cost Avoidance Operational Costs 77% faster to deliver business applications 98% reduction in P1/P0 s 15 automated bots developed 52% average TCO savings 35% reduction in compute assets (792) Rapid experimentation Improved security posture Shift to self-service culture 80% cloud first adoption 50 applications decommissioned Reduced technical debt Improved Performance DevOps in Practice 14M YOY Savings Streamlined M&A Activity

39 Putting It All Together Business Agility Operational Resilience Workforce Productivity Cost Avoidance Operational Costs 77% faster to deliver business applications 98% reduction in P1/P0 s 15 automated bots developed 52% average TCO savings 35% reduction in compute assets (792) Rapid experimentation Improved security posture Shift to self-service culture 80% cloud first adoption 50 applications decommissioned Reduced technical debt Improved Performance DevOps in Practice 14M YOY Savings Streamlined M&A Activity Progress 14.2M Investment 18 Months Focus 311 Apps in Cloud & 14M YOY Savings

40 CFO BEYOND FINANCE

41 Beyond Finance CFO as Storyteller Co-Pilot Magistrate Consigliere Engineer Muse Rescue Service

42 Business is a journey. The CFO helps shape the vision the destination and makes sure the milestones are clear, monitoring progress along the way and correcting course where necessary. It s a positive partnering role, with a strong control element. Jeff van der Eems

43 Next Steps Start a cloud project with business value Accelerate Migration Promote Experimentation Optimize Cost Management Go Cloud Native Learn More

44 Thank You!

45 THANK YOU!