2. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Typical cost drivers for on-premises deployments,
including overhead costs
Network
Costs
Storage
Costs
Server
Costs
Hardware—Server, Rack
Chassis PDUs, TOR Switches
(+Maintenance)
Software—OS,
Virtualization Licenses
(+Maintenance)
Overhead
Space Power Cooling
Hardware—Storage Disks,
SAN/FC Switches
Overhead
Storage Admin
Network Hardware—LAN
Switches, Load Balancer
Bandwidth Costs
Network Admin
Overhead
IT Labor
Costs
Server Admin
Virtualization Admin
1
2
3
4
Space Power Cooling
Space Power Cooling
3. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Capex to opex model
On-Premises
Traditional
Data Center
On-Premises Virtualized
Data Center
CAPEX
OPEX
OPEX
AWS
CAPEX
OPEX*
Cost savings from running
internal IT more efficiently AWS scale
• Multiple new data centers built each year
• Volume purchasing, highly automated, supply
chain optimization
Utilization fundamentally higher in
AWS cloud
• Aggregating noncorrelated workloads, scale, spot
market
Amazon specific hardware designs
• OEM acquisition of custom servers and net gear
• Direct purchasing of disk, memory, and CPU
• AWS controlled hypervisor and net protocol
layers
Diagram is not to scale
*For AWS, OPEX costs includes Reserved Instances one-time low, upfront payment, if Reserved Instances are used.
Cost savings from moving to a
public cloud provider
6. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Modernization and Cloud First
strategy
From the Iron Age to the Cloud Age
• Harnessing cloud technologies to achieve modernization and success
• Understanding new models, agility, change management, and dynamic
scale
• Reshaping traditional IT—from builders to brokers
• Finding the right partners in a new world
8. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
9. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Simplify Maintenance
Reduce Capex
Fault Tolerance
Scaling
Pay Per Drink Model
Tiered Storage
Burst Computing
Infrastructure-less Development
10. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
IT business transformation
• Business drivers
• Capex to Opex model
• People model
• Innovation
11. AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015
Thank You.
This presentation will be loaded to SlideShare the week following the Symposium.
http://www.slideshare.net/AmazonWebServices
AWS Government, Education, and Nonprofit Symposium
Washington, DC I June 25-26, 2015