E-Guide AWS: THE BASICS

E-Guide AWS: THE BASICS

N ot 100% s u r e about the differences between Amazon Web Services (AWS) and Microsoft Azure? In this e-guide, get a breakdown of the plans, costs, and service-level agreement (SLA) details to help you decide which service best meets your organization s needs. Additionally, Doug Schneider, CEO at 2nd Watch, discusses their current pain points and wish list items as an AWS partner. PAGE 2 OF 16

AWS VS. AZURE FACE-OFF: CLOUD COSTS, COMMITMENTS AND SLAS Bridget Botelho, Senior News Director Long-time Windows Server customers see Azure as the natural path to the cloud, but a side-by side comparison with AWS may show it isn t the best fit. Amazon Web Services (AWS) trumps Microsoft s cloud in some areas, but falls short in others. Here s a look at each cloud platform s free and paid options, how to compare cloud costs, and how AWS service level agreement (SLA) and support stacks up to Microsoft Azure. GETTING STARTED: AWS VS. AZURE FREE TIERS Public cloud free tier is a great way to get started in the cloud. Azure and AWS both ranked as leaders in the infrastructure as a service space this year by Gartner Inc., offer free options. The free tiers provide basic support and limited resources with a swipe of a credit card and a phone number. The free tiers are mostly just for testing, though some companies combine it with paid cloud services to minimize costs, said James Staten, an PAGE 3 OF 16

analyst with Forrester Research Inc., an IT analysis firm based in Cambridge, Massachusetts. AWS free tier is a recurring monthly program with a maximum use cap. Some services, including Elastic Compute Cloud (EC2), Elastic Beanstalk (EBS) and Simple Storage Service (S3), are only allowed for 12 months. New AWS EC2 users receive 750 hours of EC2 running Linux/Unix micro instance usage, and the same number of hours of EC2 running Windows Server micro instance usage and Elastic Load Balancing, plus 15 GB data processing. The free tier also includes 30 GB of Amazon EBS Standard volume storage, plus 2 million IOs and 1 GB snapshot storage, as well as 15 GB of bandwidth out aggregated across all AWS services and 1 GB of Regional Data Transfer, according to the AWS website. The AWS free tier is discounted from customers monthly bills and any workload charges that exceed the free tier cap are charged. With Azure s free tier, IT pros get $220 worth of cloud services to use over 30 days, and then the resources are suspended, generally enough for a small instance. Exceeding the $220 limit doesn t lead to additional charges, only suspended resources. However, those resources can be retained by customers who switch to a pay-per-use Azure subscription, according to Henrik Johansson, PAGE 4 OF 16

director of professional services for ngenx, during his session comparing Azure to AWS during the Citrix Synergy conference in May. MSDN subscribers get up to $1920 per year of additional Azure services, according to the Azure website. Microsoft also offers a broad program called BizSpark for startups that build Web apps, which provides free resources from Azure for three years. AWS RESERVED INSTANCES VS. AZURE COMMITMENT PLANS AWS Reserved Instances (EC2) choices are based on expected usage low, medium or high. They are available in one- or three-year terms for an upfront fee, which varies widely depending on the instance type, region, term, and other factors. Longer terms and higher utilization rates lower hourly rate costs. EC2 instances allow for movement to other availability zones within regions. It is simple to deploy but requires upfront planning, Johansson said. Microsoft s Azure commitment plans are based on non-refundable monthly paid or prepaid commitments; the minimum plan is $500 per month on a payper-month basis. These plans apply to all types of Azure resources with the exception of cloud storage, which was removed as of April 2014. PAGE 5 OF 16

The [removal of storage] slips the value down a bit on their commitment program, Staten said. It s still significantly more expansive and flexible than AWS revenue commit [plans], though. IT shops can work out discounts from between 20% to 32%, and Windows enterprise customers can probably negotiate bigger discounts as there are incentives for Microsoft s sales partners to encourage Azure use, Staten said. The longer you commit, the bigger the reduction in your bill, he said. The Azure commitment plans are also more broadly accessible, and apply to a number of cloud services, including mobile backend and streaming, Staten said. With AWS discounts, IT pros must know the size of the instance they plan to use and how many, in aggregate, that they ll need. If you are wrong, there isn t a clean recourse, other than selling those instances on the [Reserved Instance] Market, Staten said. That isn t ideal for enterprises, and that s a growing pain AWS will experience as more enterprise customers use it. However, AWS also offers instance types that don t require as much upfront planning, including On-Demand Instances that let you pay for compute capacity by the hour with no long-term commitments or Spot Instances that PAGE 6 OF 16

allow you to bid on unused Amazon EC2 capacity to get rates far below standard prices. AWS VS. AZURE CLOUD COSTS AWS and Azure use different naming conventions for the same types of features, complicating direct comparisons. Since the architectures and software designs aren t the same, the performance is different. However, IT pros can do apples-to-apples comparisons with a known application configuration and measure it as it runs, Staten said. PAGE 7 OF 16

People often look at [cost] from a static perspective, where they compare the cost of an application that doesn t ever change, he said. If you have that type of app that has no elasticity, it doesn t belong in the cloud. IT pros can test workloads using each cloud providers cost calculator tools, or a third-party tool such as RightScale s free Plan for Cloud calculator, which allows IT to see their running application costs. Today s cloud cost calculations show AWS is slightly cheaper than Azure, but costs can quickly get out of control. The biggest cost gotchas with AWS are the significant number of attractive AWS services and third-party products listed in the Amazon Marketplace, each with a per-hour cost, Staten said. There s also the issue of software license costs in the cloud, he added. License issues won t apply if you are 100% Windows or open source, Staten said. But if you bring in a vendor like Oracle, and we see this with them all the time, the Oracle license can blow up your [cloud] cost model. Oracle software was included in the Azure discounted committed spend plans, but is no longer included as of July 1, 2014. While IT pros should seek out instances with the highest discount, cost per hour should not be the main factor, Johansson said during the session. PAGE 8 OF 16

Staten concurred that price shouldn t drive cloud choices. Companies should choose the platform that makes their IT staff more productive - the cloud that offers the most agility and the best app delivery, he said. AWS VS. AZURE SLAS Companies considering either platform must also look closely at SLAs. In the cloud, there tends to be a blanket, take-it or leave-it SLA, and enterprises are unaccustomed to that, Staten said. Most enterprises read the SLA and immediately throw up on it, because they want to negotiate with a provider, Staten said. That s the wrong approach. If you arrange a unique implementation in the cloud, it s no longer multitenant, and you would need a unique SLA, he said. Negotiations between public cloud providers and customers often leave IT pros with more responsibilities than they d imagined. That s the uneven handshake of cloud consumption, Staten said. Amazon and Azure both provide a 99.5% SLA for cloud services and virtual machines. AWS S3 and Azure Storage both offer a 99.9% SLA. Amazon Route 53 PAGE 9 OF 16

comes with a 100% SLA, compared to a 99.99% SLA for Azure Traffic Manager. AWS s CloudFront and Azure CDN both come with 99.9% SLA. AWS AND AZURE SUPPORT Microsoft has plenty of partners who can deliver the support enterprises need, but AWS has only begun to prove itself in the enterprise support arena. However, AWS is hiring professional services providers to learn how to work with enterprises, according to Staten. AWS already partners with IT consulting firms, including Capgemini, 2nd Watch and Accenture, so IT shops can call enterprise service providers when there is an issue, rather than deal with AWS directly. Third-party ecosystem support is also a big deciding factor for which cloud to use, as the ecosystem includes ISVs, channel partners, other cloud service providers and developers that support AWS and Azure. AWS has a massive ecosystem already. Most importantly, beyond third-party technology and service options, it involves IT talent. Companies may have a couple of developers and IT staffers who know cloud, but they ll need to add more, Staten said. Because AWS ecosystem is PAGE 10 OF 16

vast, you ll easily find people with AWS knowledge. Microsoft could gain an advantage if it turns all of its channel partners into Azure partners, but for now, there are plenty who have yet to be trained on Azure support, and you probably don t want to be the first customer of a partner who is newly trained, Staten said. Other cloud platform considerations include security and compliance, integration with on-premises systems and factors that depend on a company s unique needs. AWS PARTNER DISHES ON ENTERPRISE CLOUD MIGRATIONS Beth Pariseau, Senior News Writer Amazon Web Services premier consulting partners work with enterprise clients to move workloads to the Amazon cloud and manage them. Among these AWS partners is 2nd Watch, and new CEO Doug Schneider expects the firm will manage 10% of Amazon s global infrastructure for PAGE 11 OF 16

customers over the next few years. Schneider estimates the firm has already performed close to 200 AWS since it became a partner. Schneider came to 2nd Watch from Melbourne IT, an Australia-based Web hosting business that boasted Yahoo and other large enterprises as clients. He was appointed CEO of 2nd Watch Oct. 14. SearchAWS.com sat down with him to discuss customer pain points and what s on the partner wish list for AWS. WHAT TRENDS ARE YOU SEEING AMONG CUSTOMERS MOVING TO AWS? ARE YOU SEEING MORE LARGE-SCALE COMPANIES COME ONLINE? Doug Schneider: Absolutely, we re seeing that larger enterprise customer saying, The public cloud makes sense for our business; let s figure it out, and let s start moving workloads to the cloud. There are customers that fall into one of two buckets: some are more calculated in their approach, and used to be more about test and dev. Now we re seeing more mission-critical, customer-facing applications. We re seeing more back-office types of workloads like an ERP system we ve been able to move as well. What we ve been able to demonstrate to those enterprises is that you don t have to refactor all of those applications to get them over into the cloud infrastructure. PAGE 12 OF 16

The second category we are seeing [is] a bigger all-in mind-set with some clients. More and more clients say they want to migrate everything out of a data center into the public cloud. We re starting to see that accelerated category start to grow across different kinds of verticals -- retail-oriented verticals -- and the thing that surprised us this past year was the financial services industry start to embrace moving workloads into the cloud. WHAT IS THE BIGGEST PAIN POINT FOR CUSTOMERS WITH AWS, WHETHER IT S WHILE THEY RE MOVING OR AFTER THEY GET THERE? Schneider: There s still a lot of complexity. You can even look at the pricing menu you get from AWS. And it s just complicated. So I think for customers, part of it is, how do I get a good picture of what I m spending and where is it being spent? Understanding that cost component of where am I spending what for what purpose, it s still somewhat of a pain point. HOW DO YOU SEE CUSTOMERS NEEDS EVOLVING OVER THE NEXT COUPLE OF YEARS? DO YOU THINK THEY LL NEED MORE HELP WITH THINGS LIKE BIG DATA ANALYTICS OR OTHER TRENDS? Schneider: Where we see some of these use cases evolving is this notion of: PAGE 13 OF 16

How do you make the public cloud more integrated into business and IT operations? Part of it is centered on this notion of how do I govern my spend in the public cloud, and make it easy for that governance to take place inside my enterprise that has international business units? How do we make life easier for businesses as they re running their operations day in and day out, so the cloud doesn t become an island of automation in and of itself? WHAT IS ON YOUR WISH LIST AS A PARTNER OF AMAZON? WHAT KINDS OF RE- SOURCES OR INFORMATION WOULD YOU LIKE TO SEE FROM THEM? Schneider: The business and the industry are so new and evolving that, on one hand, I would say Amazon is still trying to figure out how it expands its relationships with its partners even more. It s a day in and day out thing where we re trying to work with them in a really collaborative way, and what we want to do is make sure that we re not bumping into each other in front of the same customer and creating confusion. Naturally you re going to have that from time to time. We re very geared on how to optimize that so we re being really collaborative and productive and being in sync in front of the client together. That doesn t happen all the time. PAGE 14 OF 16

We want to do more with them in terms of what we re seeing in the marketplace and what technologies we think should be part of the platform more collaboration not just about where things are at today but where things are going down the road. As Amazon gets more comfortable with how it s working with its partner channel, we ll both be able to be more forthcoming with our thoughts about where we re headed. PAGE 15 OF 16

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