The Total Cost of (Non) Ownership of Storage In T he Cloud

1. The Total Cost of (Non) Ownership of Storage In The Cloud Jinesh Varia jvaria@amazon.com Technology Evangelist

2. The AWS Cloud For Enterprises Your Application Tools to access services Libraries and SDKs .NET/Java etc. Web Interface Management Console Tools AWS Toolkit Eclipse, VS Command Line Interface Cross Service features Auth, Authorization, FederationAWS IAM, MFA Monitoring Amazon CloudWatch Deployment and Automation AWS Elastic BeanstalkAWS CloudFormation High-level building blocks Parallel Processing Amazon Elastic MapReduce Transfer Import Export VM Import Storage Gateway • Content Delivery Amazon CloudFront Messaging Amazon SNS Amazon SQS Amazon SES Search Amazon CloudSearch Low-level building blocks Compute Amazon EC2 Auto Scaling Storage Amazon S3 Amazon EBS Network Amazon VPC ELB, DirectConnect Amazon Route 53 Database Amazon RDS Amazon DynamoDB Amazon ElastiCache Amazon Global Physical Infrastructure (Geographical Regions, Availability Zones, Edge Locations)

3. Pay as you go

4. When Comparing TCO…

5. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization

6. Report: File Storage Costs Less In The Cloud Than In-House

7. It’s Easy To Get An Incomplete And Incorrect Comparison Of Cloud And Internal Storage August 2011 “File Storage Costs Less In The Cloud Than In-House”

8. On-Premises Storage Allocation 1 PB 1,048,576 GB Raw Storage Disk storage volumes in a box Usable Storage RAID protection, Formatted Ready 80% Allocated Storage Pre-allocation / Capacity Planning 90% Utilized StorageDisk storage available to the database, Operating system 70%-80% Application Storage Actual storage used by the application 1,820,133 GB Source: Dave Merrill’s Blog

9. On-Premises Storage Amazon S3 Raw Storage Disk storage volumes in a box Usable Storage RAID protection, Formatted Ready 1 PB Allocated Storage Pre-allocation Utilized StorageDisk storage available to the database, Operating system Application Storage Actual storage used by the application

10. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store)

11. Multiple pricing models Standard Storage vs. Reduced Redundancy Storage

12. AWS Regions and Availability Zones

13. 99.999999999%

14. 99.99%

15. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….)

16. Take all the Fixed Costs in to consideration

17. Storage Administration Costs

18. Traditional File Storage Systems Are Expensive To Buy And Run August 2011 “File Storage Costs Less In The Cloud Than In-House”

19. Cloud Storage Is More Straightforward And A Lot Cheaper Than Traditional Storage August 2011 “File Storage Costs Less In The Cloud Than In-House”

20. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings)

21. Pay less per unit when you use more

22. Massive economies of scale and efficiency improvements allow us to continually lower prices

23. Mr. Automate Development Automation Management Logistics Monitoring Deployment

24. 19 price cuts in last 5 years “It makes me look so good in front of my CFO. When he [CFO] sees the savings in our AWS monthly bill, he thinks that it is me who is working hard on driving the costs down and increasing efficiency of the company’s infrastructure. I get all the credit for all the hard work you guys are putting in.” CIO of F500 company Massive economies of scale and efficiency improvements allow us to continually lower prices.

25. Price cuts Cloud Storage Costs of 100 TB $251,600 $195,100 August 2011 “File Storage Costs Less In The Cloud Than In-House”

26. Did you know? AWS Free Usage Tier Data Transfer Free Services No Charge for Inbound Data Transfer No Charge for Data Transfer Between Services within a region New Customers Amazon EC2 (Linux & Windows) Amazon ELB Amazon S3 Amazon EBS For all customers Amazon SQS/SNS Amazon DynamoDB Amazon SES Amazon SWF And more… AWS Elastic Beanstalk AWS CloudFormation AWS IAM Auto Scaling Consolidated Billing

27. Expensive Tape Robot Library

28. TimedStorage-ByteHours = KilowattHour $0.125 GB/Month

29. When you turn off your cloud resources, you actually stop paying for them

30. Continuous optimization in your architecture results in recurring savingsas early as your next month’s bill

31. Individual developer has the power to save a ton of money for the company

32. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings) #5 Intangible Costs – Take a closer look at what you get as part of AWS

33. AWS delivers a premium security spec at non-premium prices • HW, SW, Network • Systematic change management • Phased updates deployment • Safe storage decommission • Automated monitoring and self-audit • Advanced network protection Physical Security Datacenters in nondescript facilities Physical access strictly controlled Must pass two-factor authentication at least twice for floor access Physical access logged and audited Certifications SOC 1 Type 2 (formerly SAS-70) ISO 27001 PCI DSS for EC2, S3, EBS, VPC, RDS, ELB, IAM FISMA Moderate Compliant Controls HIPAA & ITAR Compliant Architecture

34. Reduced Time to Market = More Revenue

35. Opportunity Cost

37. When Comparing TCO…

38. When calculating TCO… #1 Understand the difference between useable vs. raw storage capacity and know your utilization #2 Compare the redundancy and durability levels (Different classes of storage : Reduced Redundancy Store) #3 Take all the fixed costs into consideration (Don’t forget people, power, space, ….) #4 Use updated pricing and optimize (Price cuts, Tiered Pricing, Recurring Savings) #5 Intangible Costs – Take a closer look at what you get as part of AWS

39. How customers are saving money with AWS AWS Economics Center TCO Whitepapers Calculator Tools Case Studies Other Resources

40. AWS Pricing Philosophy • Pay as you go • No minimum commitments or long-term contracts required • Capex -> Opex • Turn off when you don’t need it • Pay less per unit when you use more • Tiered Pricing and Volume Discounts • Pay even less when you reserve • Reserved pricing • Pay even less as AWS grows • Efficiencies, optimizations and economies of scale result in passing the savings back to you in the form of lower pricing • Custom Pricing

41. Thank you! Jinesh Varia jvaria@amazon.com Twitter:@jinman