Practical Approach in using Cloud: Perspectives from Amazon Web Services

Shane Owenby
Managing Director, Asia Pacific Amazon Web Services
Seoul, September 9, 2011

Amazons Three Businesses

Consumer Business
(retail)

Seller Business

IT Infrastructure Business

Tens of millions of active customer accounts

Sell on Amazon websites Use Amazon technology for your own retail website Leverage Amazons massive fulfillment center network

Cloud computing infrastructure for hosting web-scale solutions

Eight countries: US, UK, Germany, Japan, France, Canada, China, Italy

Hundreds of thousands of registered customers in over 190 countries

How did Amazon get into Cloud Computing?

How did Amazon get into Cloud Computing?

! Wed been working on it for over a decade ! Development of a platform to enable sellers on the Amazon global infrastructure ! Internal need for centralized, scalable deployment environment for applications ! Early forays into web services proved developers were hungry for more

Led To Pursuing A Broader Mission

Enable businesses and developers to use web services* to build scalable, sophisticated applications.

*What people now call the Cloud

AWS Platform
Your Application

Common Use Cases

Web site hosting Application hosting / SaaS hosting Internal IT application hosting Content delivery and media distribution High performance computing, batch data processing, and large scale analytics Storage, backup, and disaster recovery Development and test environments

Evolving AWS Worldwide Infrastructure

AWS Regions
US West
(Northern California)

US East
(Northern Virginia)

Europe West
(Dublin)

Asia Pacific Region

(Singapore)

Asia Pacific
Region
(Tokyo)

Amazon Edge Locations (CloudFront & Route 53)

Ashburn, VA Dallas Jacksonville, FL Los Angeles Miami Newark New York Palo Alto Seattle St. Louis

Amsterdam Dublin Frankfurt London Paris Stockholm

Hong Kong Tokyo Singapore

Hundreds of Thousands of Customers in 190 Countries

Customers in APAC across Industries and Sizes

Growing Partner Ecosystem

AWS Pace of Innovation is Intense

EC2 Reserved Instances New SimpleDB Features IBM on EC2 Windows Server 2008 on EC2 Amazon RDS Amazon Virtual Private Cloud Amazon Elastic MapReduce EBS Shared Snapshots Monitoring, Auto Scaling & Elastic Load Balancing for EC2 AWS Import/Export Amazon Simple Notification Service RDS Multi-Availability Zone Support S3 Reduced Redundancy Storage New Locations and Features for CloudFront S3 Bucket Policies Cluster Instances for EC2

Amazon EC2 Amazon S3 Developer Portal & Forums

Premium Support Amazon CloudFront EC2 Elastic IP addresses & Availability Zones Windows Server, MySQL, Oracle, & JBoss on EC2 Lower Data Transfer Costs

Amazon Linux AMI Oracle on EC2 New EC2 Features SUSE Linux on EC2

Amazon SimpleDB Amazon Flexible Payments Service S3 in Europe EC2 new instance types AWS Start-Up Challenge

Amazon SQS Amazon Mechanical Turk

Public Data Sets Elastic Block Store EC2 SLA EC2 in EU S3 Tiered Pricing

AWS Services in N. California AWS Multi-Factor Authentication AWS Management Console AWS Economics Center AWS Services in Singapore AWS in Education RDS Reserved Database Instances AWS Security Center RDS Read Replicas & Lower Pricing SAS70 Type II Audit Lower Outbound Transfer Pricing More services in EU Data Transfer Usage Tiers Lower EC2 Pricing Consolidated Billing for AWS Lower S3 Pricing Amazon S3 Versioning Feature Lower pricing for EC2 High Memory Instances Outbound Data Transfer AWS Solution Provider Program

Micro Instances Lower Pricing for EC2 High Mem Instances Identity & Access Management

And i nnova)on c on)nues..

Amazon SNS Combined AWS Data Transfer Savings Amazon EMR Bootstrap Actions Amazon ELB Session Stickiness Amazon RDS in EU Singapore Region

EMR JobFlow Debugging Simple DB Consistent Reads Simple DB Conditional Puts

Free Monitoring EC2 Amazon Route 53 RDS Reserved PCI DSS Level 1 Certification CloudFront Default Root Mobile SDKs (Android, iPhone) Startup Challenge 2010 Large Object S3 Support CloudFront Invalidation Florida POP Import/Export APAC AWS Elastic Beanstalk CloudFront HTTPS Amazon Simple Email Service Amazon RDS Read Replicas NYC Edge Location Improved AWS Support Bronze Suse EC2 Linux Lowers Pricing HTTP Amazon CloudWatch Console Amazon SNS Console AWS Import Export GA Amazon ELB HTTPS Amazon SNS VM Connector AWS Free Tier Amazon S3 Console Tokyo Region EMR Resizing Cluster Amazon EBS CloudWatch AWS Support JP

New VPC Amazon S3 Lowered Pricing Amazon SQS Longer Dedicated AWS Java SDK CloudFront GA, SLA retention, Free Tier Instances Windows BYOL S3 Multipart Amazon S3 Bucket Policies Windows Singapore Pop GPGPU Instance Types Amazon VPC IP Address 2008 R2 CloudFront ISO27001/2 Certification Cluster Compute Instances Private Streaming Amazon S3 RRS Lowered Pricing EC2 AWS CloudFormation Notifications AWS IAM Amazon S3 Static Websites Amazon EC2 Reserved Instances Amazon VPC Console VPC in EU AWS IAM Website Login with Windows, Extra Large High Micro Instances Amazon RDS in US-west Paris Edge Location Memory Instances Amazon CloudFront Access Amazon Linux AMI Amazon S3 Versioning Feature Amazon EC2 Tagging, Filtering, Logs Consolidated Billing for AWS Idempotency, Amazon RDS Multi-AZ Lower pricing for Outbound Data Oracle Certified AWS Amazon S3 RRS Transfer AWS PHP SDK Amazon RDS Console

The Cloud Scales: Amazon S3 Growth

Peak Requests 290,000+ per second

449 Billion

262 Billion

102 Billion 40 Billion 2.9 Billion 14 Billion

Q4#2006# Q4#2007# Q4#2008# Q4#2009# Q4#2010# Q2#2011#

Total Number of Objects Stored in Amazon S3

Each day AWS adds the equivalent server capacity to power Amazon when it was a global, $2.76B enterprise
(circa 2000)

Key to Successful Strategies in the Cloud

Shift from Old World to New World Of IT

Old World: High Cap Ex

Old World: High Cap Ex

New World: Variable Expense

Old World: Charge as much as you can

Old World: Charge as much as you can

New World: Low variable expense; Only pay for what you use

Old World: Guess on capacity needs

Old World: Guess on capacity needs

New World: Scale seamlessly up, Shed capacity as you wish

Predicting infrastructure need is difficult

Actual Usage

Compute Power

Customer Dissatisfaction

Predicted Usage

Waste

Time

Example: Video App on Amazon EC2

Number of EC2 Instances

Scaled to peak of 5,000 instances in 3 days

Launch of a Facebook modification

Saturday

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

Old World: Need a new server? See you in 2 or 3 months!

Old World: Need a new server? See you in 2 or 3 months!

New World:
Spin up hundreds, even thousands of servers in minutes

Old World: Undifferentiated Heavy Lifting

Undifferentiated Heavy Lifting

Server hosting Bandwidth management Contract negotiation

Purchase decisions Moving facilities Scaling and managing physical growth Heterogeneous hardware Legacy software Coordinating large teams

Old World: Undifferentiated Heavy Lifting

New World: Focus scarce engineering resources on customers and growth

Old World
High Cap Ex Charge as much as you can Guess on capacity needs Need a new server? See you in 2 or 3 months! Undifferentiated Heavy Lifting

(Re) Introducing... The Private Cloud

New World
! Variable expense ! Only pay for what you use ! Scale seamlessly up; shed capacity as you wish ! Spin up hundreds, even thousands of servers in minutes ! Focus scarce engineering resources on customers and growth

Keys in Choosing a Cloud

! Cloud experience ! Flexibility ! Listen to customers and iterate quickly ! Continue to lower costs for customers ! Comfort running high volume/low margin business

In the fullness of time

MYTH #1: THE CLOUD ISNT RELIABLE

Reality: - All Generally Available services have SLAs
- AWS services (e.g. S3, EC2) have availability SLAs up to 99.95% - In 2009, didnt pay out once on these SLAs

- Cloud providers look at thousands of metrics at the 99.9% outlier points - Many companies achieve beNer performance in cloud than in their own data centers

MYTH #2: ILL LOSE CONTROL OF MY DATA IN THE CLOUD

Reality: - You own and manage your own data - You can encrypt your data in moQon or at rest - You can control where the data is stored - You can get your data out whenever you want

MYTH #3: ILL LOSE MY DATA ALTOGETHER IN THE CLOUD

Reality: - Each object in Amazon S3 is replicated mulQple Qmes and distributed across mulQple datacenter locaQons - By comparison, many companies keep a single copy or back-up by tape - Cloud services are designed to sustain the concurrent loss of data in two faciliQes - Amazon S3 has 99.999999999% durability

MYTH #4: THE CLOUD IS NOT SECURE

Reality: - Security is number one priority for Cloud - Cloud uses the same security measures used for the last 30 years - Physical datacenter security, Network, Hardware - Cloud is independently audited - SAS-70 Type II, ISO 27001, etc - Cloud o\en improves enterprise security posture - Those whove really invesQgated cloud security are impressed

MYTH #5: WE CAN RUN OUR OWN INFRASTRUCTURE AS COST-EFFECTIVELY AS AN EXTERNAL CLOUD
Reality: - Companies o\en struggle to accurately measure the cost of infrastructure - Scale advantage for big cloud providers - UQlizaQon advantage for big cloud providers

MYTH #6: COST IS THE ONLY CLOUD ADVANTAGE

Reality: Time to market for ideas is *much* faster in the cloud - Minutes to spin up servers vs. months - Innovate and fail faster, encourage experimentaQon - Go from concept to producQon within weeks vs. months Lets you focus your scarce engineering resource on what dierenQates your business

THE DIRTY LITTLE SECRET

30%
On-Premise Infrastructure

70%
Managing All of the Undifferentiated Heavy Lifting

Your Business

CLOUD COMPUTING FLIPS THE EQUATION

30%
On-Premise Infrastructure Your Business

70%
Managing All of the Heavy Lifting Configuring Your Cloud Assets

Cloud-Based Infrastructure

More Time to Focus on Your Business

70%

30%

MYTH #7: MOVE ALL YOUR INFRASTRUCTURE TO THE CLOUD IN ONE FELL SWOOP
Reality: If you are building from scratch, yes Je Bezos: If I were starQng Amazon.com today, Id unquesQonably build it on Amazon Web Services. Enterprises with a lot of legacy applicaQons should - Move more methodically - Pick a few apps to learn how to run in the cloud - Build a 24-month migraQon plan

MYTH #8: I CAN GET ALL THE BENEFITS OF THE CLOUD WITH MY OWN PRIVATE CLOUD
Reality: A Private Cloud is not really a cloud, but just a private installaQon (in the companys own datacenter) of virtualizaQon with increased management capabiliQes It may feel safer because its on premise, but it misses the most powerful cloud benets
- SQll requires CapEx for datacenters and servers - SQll needs xed expenses, versus paying only for what you use - Not truly elasQc - SQll have the distracQon of running it yourself

MYTH #9: ILL USE THE SAME SUPPLIERS IVE ALWAYS USED?
Reality:
Think about why some exisQng technology companies are pushing a Private Cloud: - Are they interested in changing the status quo? - Do they want to give up 80% gross margins to run a high volume/low margin business - Are they equipped to provide true cloud compuQng Expect a lot of creaQve freedom on the markeQng

Thank You!
Shane Owenby
Managing Director, APAC

shane@amazon.com