The Total Cost of (Non) Ownership of Storage In The Cloud Jinesh Varia Technology Evangelist

The AWS Cloud For Enterprises Low-level building blocks High-level building blocks Tools to access services Cross Service features

Pay as you go

When Comparing TCO…

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

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

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”

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

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

#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) When calculating TCO…

Multiple pricing models Standard Storage vs. Reduced Redundancy Storage

AWS Regions and Availability Zones

%

99.99%

#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, ….) When calculating TCO…

Cost FactorsOne-time UpfrontMonthly AWSOn-site Backup Archive On-site DR AWSOn-site Backup Archive On- site DR Server Hardware0$$$$$ 00 Network Hardware0$$ 000 Hardware Maintenance0$$ 000 Software OS0$$ $00 Power and Cooling and Data Center Efficiency 00$$00$ Data Center/co-lo Space0$$ 000 Personnel (Administration)0$$ $ $$$ Storage and Redundancy0$$ $00 Bandwidth$$$$ $$ Resource Management Software 000$$$0 Total Take all the Fixed Costs in to consideration

Storage Administration Costs

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

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

#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) When calculating TCO…

Pay less per unit when you use more

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

Mr. Automate Development Monitoring Management Logistics Deployment Automation

“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 19 price cuts in last 5 years Massive economies of scale and efficiency improvements allow us to continually lower prices.

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

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 No Charge for Inbound Data Transfer No Charge for Data Transfer Between Services within a region AWS Free Usage Tier Did you know? Free Services Data Transfer

Expensive Tape Robot Library

TimedStorage-ByteHours = KilowattHour $0.125 GB/Month

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

Continuous optimization in your architecture results in recurring savings as early as your next month’s bill

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

#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 When calculating TCO…

Certifications SOC 1 Type 2 (formerly SAS-70) ISO PCI DSS for EC2, S3, EBS, VPC, RDS, ELB, IAM FISMA Moderate Compliant Controls HIPAA & ITAR Compliant Architecture 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 HW, SW, Network Systematic change management Phased updates deployment Safe storage decommission Automated monitoring and self- audit Advanced network protection AWS delivers a premium security spec at non-premium prices

Reduced Time to Market = More Revenue

Opportunity Cost

When Comparing 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 When calculating TCO…

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

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

Thank you! Jinesh Varia