AWS Executive Insight Event – Frankfurt: January 25 – 26, 2017

Culture of Innovation –
Thinking Backwards
With Amazon
Ralf Kleber
Country Manager Amazon Deutschland
Frankfurt, February 2017

Invention comes in many forms and at
many scales. The most radical and
transformative of inventions are often
those that empower others to unleash
their creativity – to pursue their dreams.
Jeffrey P. Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.

The
Institutional
YES!
OUR MISSIONwe want to be earth’s most
customer centric company

The
Institutional
YES!
OUR COMMITTMENTwe make our customers’ lives easier

EARTH’S BIGGEST SELECTION
the store where customers can buy what they want, not what the store offers

Prime Memberships as % of Households

The
Institutional
YES!
WHERE INNOVATION STARTSwe start with the customer and work backwards

»Customer Obsession
“Start every process with the customer and work
backwards.”
»Long Term Thinking
“Be stubborn on the vision but flexible on the details.”
»If you want to be inventive, you have to
be willing to fail.
“We are willing to go down on a bunch of dark alleys
and occasionally we find something that really works.”
»You have to be willing to be
misunderstood for a long time.
“We are very comfortable being misunderstood.”
Our culture of
innovation

Every one of us is a
leader on our mission

The
Institutional
YES!
STUBBORN ON THE VISIONbut flexible on the details

The
Institutional
YES!
WILLINGNESS TO BE MISUNDERSTOODfor a long period of time

The
Institutional
YES!
WORKING FROM THE CUSTOMERbackwards

The
Institutional
YES!
write the press release

The
Institutional
YES!
write the FAQ

The
Institutional
YES!
define the user interaction and write the manual

The
Institutional
YES!
*NOT* BEHIND THE SCENESwe do make mistakes

The
Institutional
YES!
THANK YOUdankeschön

THE ROLE OF
LEADERSHIP IN
DRIVING AGILITY
AND INNOVATION
Dr.-Ing. Rainer Kallenbach
CEO Bosch Software Innovations GmbH

Bosch Group: Technology to enhance quality of life
Bosch Software Innovations GmbH | INST/P | 12.01.2017
© Bosch Software Innovations GmbH 2017. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution as well as in the event of applications for industrial property rights.
2
Four business sectors Key Facts (2015)
manufacturing sites
223
associates incl. 55,000 in R&D
375,000
in sales
€70.6 billion
Consumer
Goods
Industrial
Technology
Energy and
Building
Technology
Mobility
Solutions
Bosch Software Innovations GmbH -
IoT Software and Systems House
> 750 IoT
experts
in 10 global
locations

Bosch Software Innovations GmbH
3
We help you on the way into IoT….
… to your new services & solutionsFrom your idea …
Identifying &
developing IoT
business
opportunities
Creating a working
prototype to
evaluate
technical feasibility
Agile development
of solutions for the
mass market
Fast realization of
minimum viable
products to test
product ideas and
get early customer
feedback
Defining core
requirements and
creating a visual model
on functionality, user
experience, and
business value
Solution hosting
including first,
second and third
level support
IoT business
model
Minimum
viable product
Cloud Hosting
and operations
Solution
Development
Consulting Proof of
concept

THE INTERNET OF
THINGS:
FUNDAMENTAL
CHANGES
IN OUR BUSINESS

The Internet of Things
5
We are living in a highly connected world …
World population People with internet access
0.04 billion 0.75 billion > 6.6 billion
Connected
devices
1995
of 5.7 billion people...
... 0.7% are online
2005
... 15% are online
... 75% are online
2015
Web 3.0/4.0 “Internet of Things”
interconnectingalso objects of
everyday use to create
- Industry 4.0
- Connected Mobility
- Smart Home …
Web 1.0 “Classic Web”
connecting enterprises/ organisa-
tions with people, rather static
- Homepages
- E-Commerce ≈1990
Web 2.0 “Social Web”
interconnectingalso people,
dynamic interaction between
common users
- Blogs, Social Communities
- Platforms like Facebook,
Twitter, YouTube… ≈ 2005

6
Vision: Connected World
Industry Mobility Smart HomeEnergy Smart City

7
Enabler: miniaturized, low power sensors
 “Moore’s Law” in MEMS*:
*MEMS: Micro electro-mechanical systems
Source: Bosch Sensortech, www.bosch-sensortec.com
2006
20102007 2013
2005 2006 2007 2010 2013
Bosch Sensortec 1st
with 1.2 x 1.5 mm2
Bosch Sensortec 1st
with 2x2 mm2
Bosch Sensortec 1st
with 3x3 mm2
Continuously
 shrinking size / footprint
 reducing power consumption
Bosch – world’s leading manufacturer
 Producing sensors on industrial scale
since 1995
 Six billion MEMS sensors produced
 100% in-house from MEMS design to
manufacturing

8
Nobody can do it alone: Bridges between different worlds required
 This is not only a technical task:
 different business, development
and operational paradigms need
to be brought together
 Cloud technology playinga
central role as enabler
Web2.0
People
Mobile
Devices
Enterprise
s
Enterpri-
se(s)
Things
„Embedded Systems“ „Enterprise IT“ „Consumer IT“
SaaS: IoT Applications
PaaS: i.e. Bosch IoT Suite
IaaS: Cloud Infrastructure Operations
„IoT Cloud(s)“

9
Giving birth to new services
Complement and strengthen traditional
hardware product business
Grow with potentially disruptive
business models
Higher margins and differentiation through
product-related services
Will everything become a service?
Margin
Time
Service
Product
Thing
Thing-based
FUNCTION
Connectivity
[HW | SW] [Physical | Local]
Digital
SERVICE
[Digital | Global]
Prof. Elgar Fleisch, 2010

10
Digital Service Challenge: “Software is eating the world” [Marc Andreessen, 2011]
Facebook is the
world's biggest and
most up-to-date
registration office
–
without legal
regulation.
Airbnb is the world's
biggest hotel chain
–
doesn't own a
single room.
Amazon is the
biggest book store
–
without a single
bookshelf.
Pixar has won
16 Oscars
–
never employed
an actor.
Uber is the biggest
cab operator
–
doesn't operate a
single car.
TAXI

11
From Physical Products to Digital Services
Hybrid Product Scheme: Prof. Elgar Fleisch, 2016
Example: EV Charging

12
New Business Chances for Bosch
 Connected Energy and Building
 Connected Industry & Logistics
(“Industry 4.0”)
 Connected Home
 Connected Mobility

13
Success Factors in a Networked Economy
Cloud
Connectivity
Software
Eco-
systems
Horizontal
Integration
Open
Source
Agility
Strong
Customer
Relations
Culture
and
Leader-
ship
Fast
Innovation
Cycles Develo-
pers
Tech
Know
How
New
Business
Models

Bosch in the Internet of Things
15
Bosch is active on three layers
 One Bosch IoT platform connectingALL domains: mobility, home, industry, energy
New Services & Applications
Divisions
Smart Things
Divisions
IoT Middleware &
Cloud Platform
BoschSoftwareInnovations
Bosch IoT Cloud

16
Cloud-based microservices make complex IoT applications easy
SaaS
IaaS
PaaS
Storage Network SecurityCompute
Connected home
& building
Connected
mobility
Connected cityConnected
energy
Connected
industry
Marketplace
Bosch IoT Cloud Base Services
Things Rollouts Remote Manager Hub
Integrations AnalyticsPermissions Rules

18
Innovative cloud-based solutions across all domains

WHAT DOES THIS MEAN
FOR LEADERSHIP ?

New Organisations for Innovation and Agility
20
Some Bosch Examples
 Bosch Software Innovations
GmbH www.bosch-si.com
 Bosch Connected Devices and
Solutions GmbH www.bosch-connectivity.com
 Bosch Start-up GmbH
www.bosch-startup.com
 Bosch Venture Capital GmbH
www.rbvc.com

21
Fast = Central
Hierarchy = Fast
Yesterday …
© Robert Bosch GmbH
Spark plug production, 1920

22
Today …
Iterative
Flat
© Robert Bosch Software Innovations GmbH
Agile Software Business, 2016

Bosch Software Innovations
23
Agile DevOps Teams
 2 Leaders instead of one
 Business Responsibility at
working level
 Speed & Freedom
 Decisions regarding
Technology and Team
 Performance always
transparent and visible

25
The Role of Leadership in an Agile Organisation

27
Agile Leadership & People are Key for Success
collaboration
empowered
leadership
organization
trust interaction
adaptRespon-
sibility
speed
teams
self
change
to
learn from
mistakes courage

THANK
YOU
Dr. Rainer Kallenbach
Rainer.Kallenbach@de.bosch.com
Phone +49 711 811 33045
www.bosch-si.com

© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Taimur Rashid
Director, AWS Platform Business Development
January 26th, 2017
The Importance of Innovation & Culture

Amazon is innovating across many domains
Drone Development
Advanced Shopping
Kindle Reader In-house
Entertainment
Grocery Delivery
Video Streaming
Home AutomationCloud Computing

“SignAloud”: Translating Sign Language to Speech
• Bluetooth enabled gloves
• Records hand position and
movement
• Uses deep learning to
match gestures with words
• Text to speech

Innovation is Creativity
with Execution

« Invention requires two
things: the ability to try a lot
of experiments, and not
having to live with the
collateral damage of failed
experiments » Andy Jassy
CEO
Amazon Web Services

How to Create a Culture of
Innovation?

Innovation is Not a Goal,
it’s an Ongoing Process

30 missions prior to Apollo 11 moon
landing
50% failed!
Learn from mistakes
Success comes after iterations
Innovation Requires Commitment

Inspire Your People & Give them
a Sense of Purpose

« We reach for new heights and reveal the
unknown for the benefit of humankind »
What is NASA’s Vision?

« We're a company of pioneers. It's our job to make bold
bets, and we get our energy from inventing on behalf of
customers. Success is measured against the possible, not
the probable. »

Identify and Understand
Your Company’s
Culture

Formulaic
Well-defined Vision
Process-Oriented
Over-optimized on team coordination
Value system above breakthroughs
“Play it safe, keep the customer base”
Entrepreneurial
Primary Inventor
Scrappy
Autonomous teams
Disruption vs incremental growth
“Go big, or go home”
vs

Everyone Should Know the
Company’s Growth Strategy

Amazon’s Growth Flywheel
Value
Selection
Convenience

Intuit’s Innovation Approach
Design for
Delight

Create Mechanisms for a
“Learn & Be Curious” Culture

Too Much to Learn : Rapid Pace of AWS Innovation
61 82
159
280
516
722
1000
0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014 2015 2016
New
features
and/or
services
~

Mechanisms for Continuous Learning
Introductory videos
Certifications
Instructor-led courses
Online self-paced labs
AWSome Days

Adobe’s Innovation-in-a-box Program
Kickbox program to boost
Internal innovation:
$1,000
Notebooks and Post-its
Chocolate
Starbucks card

Create a Structure for
Unstructured Innovation

Atlassian’s ShipIt Days
24-hour hackathon to
work on anything related
to Atlassian products
and ship it in 24 hours

Make Your Technology & Tools
Available as “Self-Service” Platforms

“We are creating powerful
self-service platforms that
allow thousands of people
to boldly experiment and
accomplish things that
would otherwise be
impossible or impractical."
Self-Service Platforms without Gatekeepers

HYBRID
ARCHITECTURE
Data Backups
Integrated
App
Deployments
Direct
Connect
Identity
Federation
Integrated
Resource
Management
Integrated
Networking
MARKETPLACE
Business
Apps
Databases
DevOps
Tools
NetworkingSecurity Storage
Business
Intelligence
ENTERPRISE
APPS
Virtual
Desktops
Sharing &
Collaboration
Corporate
Email
Backup
IoT
Rules
Engine
Device
Shadows
Device
SDKs
Registry
Device
Gateway
DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS
Data
Warehousing
Hadoop/
Spark
Streaming Data
Collection
Machine
Learning
Elastic
Search
Queuing &
Notifications
Workflow
Search
Email
Transcoding
One-click App
Deployment
Identity
Sync
Mobile App
Testing
Push
Notifications
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource
Templates
API
Gateway
Streaming Data
Analysis
Business
Intelligence
Mobile
Analytics
Single Integrated
Console
TECHNICAL & BUSINESS SUPPORT
Support
Professional
Services
Account
Management
Partner
Ecosystem
Solutions
Architects
Training &
Certification
Security &
Billing Reports
GAMING
3D Game
Engine
Character
Designer
Multiplayer
Service
Twitch
Integration
Cloud
Integration
Regions
Availability
Zones
Points of
Presence
INFRASTRUCTURE
CORE SERVICES
Compute
VMs, Auto-scaling, Load Balancing,
Containers, Cloud functions
Storage
Object, Blocks, File,
Archivals, Import/Export
Databases
Relational, NoSQL,
Caching, Migration
CDN Networking
VPC, DX, DNS
Access Control
Identity
Management
Key
Management &
Storage
Monitoring
& Logs
SECURITY & COMPLIANCE
Resource &
Usage Auditing
Configuration
Compliance
Web application
firewall
Assessment and
reporting
Most Robust, Fully-Featured Technology Infrastructure Platform

“Our theories determine what we measure.”
– Albert Einstein
Identify your assumptions
Look beyond your frame of references
Be a “Culture of Metrics”
A/B test for optimization
Improve and iterate quickly
Measure, Improve, and Iterate

Jointly Recognize & Reward Innovation

Share and Give Back to Innovation

AWS “This is My Architecture” Talks

Innovation from the AWS Ecosystem
Netflix Open Source
Software Center
Big Data
Build and Delivery Services
Content Encoding
Pinterest Engineering
Application Configuration
Secrets management
MySQL Management Tools
Airbnb OpenSource
Machine Learning
Workflow
WebUI

« We've had three big ideas at
Amazon that we've stuck with for
20+ years, and they're the reason
we're successful: put the customer
first, invent, and be patient »
Jeff Bezos
CEO and Founder
Amazon.com, Inc

Remember to complete
your evaluations!

Data Protection & Compliance
Innovations in Information Security and Data Protection
Chad Woolf, Director, Risk & Compliance
26.01.17

What to Expect from the Session
Discussion about AWS scale, security, and Germany C5
Three examples of how we deal with massive scale in compliance
1. Access Management
2. Change management
3. Vulnerability management
For each example:
• AWS Services that we utilize for operationalizing compliance
• Lessons learned
Amazon CloudWatch AWS CloudTrail AWS Lambda Amazon API Gateway Amazon Redshift

Gall’s Law:
A complex system that
works is invariably found to
have evolved from a
simple system that worked.
A complex system
designed from scratch
never works and cannot be
patched to make it work.
You have to start over with
a working simple system.

+ C o m p l e x S y s t e m s
+ Highest Security Bar
= Impossible Task
(in a manual world)
Huge scale

Customized, Customer-centric Approach
7,710 Audit
Artifacts
40+
services
2,670
Controls
3,030 Audit
Requirements

Designed and released by the BSI in February 2016, the C5 control set offers additional assurance to customers in
Germany as they move their complex and regulated workloads to Cloud Computing Service providers such as AWS.
The following international standards had been taken by BSI into account:
• ISO/IEC 27001:2013 (ISO - International Organization for Standardization)
• CSA Cloud Controls Matrix 3.01 (CSA - Cloud Security Alliance)
• AICPA Trust Service Principles Criteria 2014 (AICPA - American Institute of Certified Public Accountants)
• ANSSI Référentiel Secure Cloud 2.0 (Draft) (ANSSI - Agence nationale de la sécurité des systèmes d'information)
• IDW ERS FAIT 5 04.11.201 (draft statement on accounting: "Grundsätze ordnungsmäßiger Buchführung bei Auslagerung
von rechnungslegungsrelevanten Dienstleistungen einschließlich Cloud Computing" [Generally accepted accounting
principles for the outsourcing of accounting-related services including cloud computing], version of 4 November 2014)
• BSI IT-Grundschutz Catalogues, 14th version 2014•
• BSI SaaS Sicherheitsprofile 2014 [BSI SaaS security profiles 2014]
Cloud Computing Compliance
Controls Catalogue
Mapping table
https://www.bsi.bund.de/SharedDocs/Downloads/EN/BSI/CloudComputing/ComplianceControlsCatalogue/Referencing_Cloud_Computing_
Compliance_Controls_Catalogue.pdf
C5 =

IT-Security standards as the BSI C5 catalogue
are an essential part for defining digitalization,
which can’t be successful without cyber security. The
requirement catalogue of the BSI offers the possibility for cloud
provider, to receive an attestation during a compliance audit or
an accounting with minor additional work and expense.
We are pleased, that Amazon Web Services, an international
accepted and important cloud provider received at first an
attestation according the C5 catalogue.
This shows that this standard is accepted and implemented by
the market.
BSI president Arne Schönbohm

AWS Automated Compliance
We'll walk you through 3 examples today:
1. Access Management
2. Change management
3. Vulnerability management
+ Lessons learned

Example 1: Access Monitoring of Critical Systems
• Problem: monitoring access to a large number of hosts
• Our response: remediation controls that evaluates who AND
what
• How we use it: monitor, validate, remediate access controls
at AWS scale quickly
• Benefit: ensure principle of least privilege access

Near real time validation
Baseline rule review
Example 1: Access Management layered controls
Critical Assets
Rules based permission
management
Step 1: Principle of Least Privilege

Example 1: Step 1 Under the hood
HR
Permission
store
On-prem
hosts
Amazon
Redshift
S3
AWS
Data
Pipeline
Job
Management
service
EC2 Worker
fleet
AWS
Lamdba
Group owners
Notifications
Amazon
Kinesis
Firehose
On-prem
hosts
Amazon
SQS
“On prem like” environmentA
1
2
3
4
5
ETL SolutionB
6
78
9
Continuous Monitoring & Notification SolutionC
10
11 12 13

Example 1: Step 2 Under the hood
Step 2: Principle of Least Privilege
Amazon S3 Log
Repository
Apache Spark
cluster
(Amazon EMR)
ETL using
Lambda
S3 bucket to
store extracted
SSH logins
Amazon Redshift
1 2 3 4 5

Example 1: Lessons Learned
• Revoke access of users who
haven’t used their access to critical
AWS resources/systems
• AWS CloudTrail + Credential
Usage Report + Service Access
Report
• Logins to your EC2 fleet vs. SSH
keys access list

Example 2: Change Management
• Problem: controlled automated deployment and validation of
daily deployments
• Our response: automated auditable deployment and validation
environment
• How we use it: auditor validation of our preventative and
detective change management controls
• Benefit: all changes to environment and controlled and
documented

Example 2: Under the hood
1 2 3 4 5

QA & Code Review
1 2 3 4 5 6

• AWS CodeCommit – authoritative source code
repository
• AWS CodeDeploy – controlled deployments to
instances
• AWS CodePipeline – continuous delivery of software
releases
AWS CodePipelineAWS CodeCommit AWS CodeDeploy

Example 3: Vulnerability
Management

Example 3: Vulnerability Management
• Problem: analyzing large data set of fleet information and
identifying ‘actionable’ patching data for our large fleet of
hosts
• Our response: utilize active and passive assessments to
accurately capture and identify opportunities for updates
• How we use it: utilizing 3rd-party scanners and on host
agents to reduce false positives and increase accurate
‘actionable actions’ for remediation
• Benefit: Our hosts are patched, preventing security issues

Amazon
RDS
Amazon
Elasticsearch
Service
Distributed
sensors
Amazon
EC2
Dashboard

• Active Scans are costly in time and resources
• False positives are hard to deal with
• Datatype definitions matter
Amazon
Inspector
Amazon
RDS
Amazon
Redshift AWS
Lambda
Amazon
Elasticsearch Service
Amazon
QuickSight
ASSESS STORE PROCESS VISUALIZE

Recap
• Our lesson learned: automate to survive.
• You have the same opportunity for these examples and others.
• AWS can be used to strengthen data protection in Cloud and on-
prem environments.

Scott Wiltamuth
VP for AWS Dev & Management Tools
January 26, 2017
The New Era: How to
Innovate Faster

Confluence of Industry Trends  Disruption
• Cloud
• Social
• Mobile
• IoT
• Big Data

Sky High Customer Expectations
• Web + Phone + Tablet
• Secure
• Always available
• Worldwide
• High performance
• Continuously updated
• Smart use of Big Data

Growth in Developer IQ?
IQ
Time
???

Recipe for Success: Use Higher Level Services
Use Case Higher Level Service
Web Apps and Services Elastic Beanstalk
API Gateway
Compute Containers with ECS
Functions with Lambda
Big Data Elastic Map Reduce
Search CloudSearch
Elasticsearch
Batch Computing AWS Batch
Configuration Management OpsWorks
CloudFormation

Reliability
Recipe for Success: Adopt DevOps
Speed
Scale
Rapid DeliveryImproved Collaboration
Security

DevOps: Culture & Organization
• Dev & Ops coming together: “no more silos”
• Shared responsibility
• Ownership
• Visibility and communication

DevOps: From Monoliths to Microservices

DevOps: Continuous Integration & Delivery

DevOps: Infrastructure as Code

DevOps: Monitoring and Logging
• Track and analyze metrics and logs
• Understand real-time performance of
infrastructure and application
• Automated alarms with escalation

= 50 million* deployments a year
Thousands of teams
× Microservice architecture
× Continuous delivery
× Multiple environments
*as of 2014

AWS DevOps Portfolio
AWS CodeCommit AWS CodeDeploy AWS CodePipeline
Continuous
Integration &
Delivery
AWS CloudFormation
Infrastructure
as Code
Monitoring
& Logging
AWS CodeBuild
AWS OpsWorks
Stacks
AWS ConfigAmazon CloudWatch AWS CloudTrail
new
new
new
AWS X-Ray
AWS OpsWorks for
Chef Automate

Enterprise Controls in a Cloud Era
• Governance
• Compliance
• Risk
• Security
• Data Protection
• Cost
• Availability

Recipe for Success: Account Strategy
• Use AWS accounts for ownership and role clarity
• By Ownership
• Central IT
• Business Group #1
• Business Group #2
• …
• By Use
• Dev
• Integration Test
• Production

Recipe for Success: Guardrails
Standard configuration across all AWS accounts
• Multi-factor authentication (MFA) for root
• Identity federation with enterprise directory
• CloudTrail turned on – record of all API activity
• Config turned on – record of configuration changes
• Config Rules to encourage/enforce your policies
• Log aggregation to CIO/CSO

What is AWS CloudTrail?
AWS CloudTrail is a fully
managed service that
records API calls made on
your AWS account.
CloudTrail helps you gain
visibility into API activity,
enables you to
troubleshoot operational
issues, conduct security
analysis and meet internal
or external compliance
requirements.
Customers
are making
API calls...
On a
growing set
of services
around the
world…
CloudTrail is
continuously
recording API
calls…
And
delivering
log files
to
customer
s

AWS Config & Config Rules
Changing resources
AWS Config
Config Rules
History, Snapshot
Notifications
API Access
Normalized

Recipe for Success: Service Catalog
Users
Administrator
Control
Standardization
Governance
Agility
Self-service
Time to market
AWS Service Catalog allows organizations to create and manage catalogs
of IT services and software on AWS described as AWS CloudFormation
templates. It enables users to quickly deploy approved IT services they need
in a self-service manner.
Private Catalog for Organizing and Launching Infrastructure & Software
Services on AWS

Summary
• Confluence of Industry Trends  Disruption
• Sky High Customer Expectations
• Innovating Faster
• Use Higher Level Services
• Adopt DevOps
• Automate, automate, automate
• Enterprise controls in cloud era
• Guardrails for governance, compliance, and risk
• Use higher level services

Helpful Resources
https://aws.amazon.com/devops/
https://aws.amazon.com/tools/
https://aws.amazon.com/products/management/

Internet of trains –
Why change and cloud makes sense
Gerhard Kreß, Data Services
www.siemens.comUnrestricted © Siemens AG 2017

Unrestricted © Siemens AG 2017
January 2017Seite 2 Gerhard Kreß | Mobility Customer Services
Mobility is a backbone of our society, especially in metro areas
Rail automation for passenger
and freight services
Automated
payment systems
Mass transit and
mainline rail vehicles
Regional and
high speed trains
Services for rail
and road transport
Power supply for rail
and road vehicles
Turnkey rail
systems
Road traffic
management
Integrated, intermodal
mobility solutions
Locomotives

Turn
data
Into
information
Imagine –
Your rail assets have 100 percent availability for their schedule
• Rail vehicles today send between
1 and 4 billion data points per year
• Rail infrastructure can send
billions of messages per year
inside the system
• Additional data
• Work orders
• Spare parts data
• Geographical data weather data
The data available The challenge
Ensure
100%
operational
availability
And drive appropriate actions

In order to implement such offerings, Siemens built a large
team of data scientists enabled by the Railigent platform
• Open and cloud based
architecture
• Scalable data storage
• In-database analytics
• Data scientists
• Implementation managers
• Technology experts
10
11
10
01
011010101101
00
0
1
1
1
0
11
01 0
0010101101000111
0110
01100110100111011010
10101011010001
101110
0110101011
01
0
0
0
1
1
1
0
11010
011 0101010
1010110111
001001011
1011010111
011001111
001001011
11010
01110
Management
Dispatcher
Maintenance engineer
Data visualizationData evaluationData processingData transmission
Railigent Connect
Secure data transmission
from sensor to central
data storage
Turning data into value and enabling Digital Services
solutions (Smart Monitoring,
Smart Data Analysis and Smart Prediction)
Railigent
powered by Sinalytics
Advanced
algorithms
Expertise domain
Know-how
Best practises
Data management
capabilities
Human Resources

Target is operational decision support –
From data access to automated generation of insights
Machine
learning
Data access Search for
patterns
Automated
insight generation

Example automated failure prediction –
Bearing monitoring on a high speed train
Alarms
Simplified picture – In reality 8 machine learning models analyse the complete
drive train and help identify the exact component and the failure type
Operational applicationMachine learning

Real examples show that tangible business value can be achieved
Velaro
Spain
Metro
Bangkok
Velaro
Russia
Thameslink
Class 700
Examples Achievements based on data usage
Market share gains against the plane on the route Madrid –
Barcelona due to punctuality
Availability: 99.98%
100% vehicle availability in rush hours
allows to operate without reserve trains
Component monitoring especially for doors
reduces delays and increases availability
Successful service provision on the route Moscow –
St. Petersburg without spare capacity

Siemens moved its data analytics into the cloud to increase agility,
improve performance and lower cost
Railigent
• Cloud native
• Built on AWS services
• Powered by Mindsphere
Performance targets
• Data ingest >200,000 events/second
• Data volume >1 PB
• >1,000 data analytics models in place
On-premise platform
Selected performance values
• Data ingest >25,000 events/second
• Data volume between 100 and 200 TB
• <50 data analytics models in place
Started in July 2016
Development
goals
Performance 10x
Cost reduction 10x
Increased agility
July 2015
1
Phase
2
Phase

The technology shift has not been easy to master …
• Understanding of the new technologies
recently deployed in Europe
• Mastering the large set of platform
services
Amazon PaaS layer From monolithic applications
to microservices
Fulfilling Siemens security
requirements in the cloud
• Refactoring of large parts
of key applications to take advantage of
cloud agility
• Development of microservices instead of
monolithic legacy applications
• Development of standalone security
concepts for applications fully visible in
the internet – not behind corporate
firewalls
• Development of a new IT security
approach for agile development in the
cloud

… But the challenges on the business side were even more significant
• Getting all developers on board to embrace
and master AWS PaaS
• Keeping people up to speed with the new
developments/innovations in AWS PaaS
• Growing architects able to design such
platforms, linking a large set of new and
modern technologies
People Culture
• Empowering the developers for work
in an agile environment
• Working together across unit borders in a
continuous deployment setting
• Product development towards customer
focused, agile approaches
• Changing the whole unit into an agile way of
approaching topics

Thomas Blood
26 Jan 2017
Technologie und Kulturwandel

Wieviel Zeit bleibt ihnen für Produktentwicklung?
Welchen Anteil ihrer Zeit brauchen sie für Betrieb und Wartung?
…

Was wäre wenn sie 30% mehr von ihren
Ressourcen für ihre Kunden verwenden
könnten ?

Common Priorities
• Time-to Market
• Inflexible Platform
• Technical Debt
• Unplanned Work
• Customer Experience
• Collaboration
6 months per release
Months to procure/provision
60 – 80% of effort
Outages, bugs, compliance
Performance and outages
Integrating with other business
units is technically difficult
High cost & low productivity

Theorie (Momentum)
People,
Process
and
Technology
Entwicklung
Betrieb
Markt
Feedback
Produkt-
verbesserung
und Innovation

Praxis (Bremsen der Produktivität)
CCOE
Technical Debt
Resistenz
gegen die
Veränderung
Hemmende
Organization &
Struktur
Fähigkeiten &
Verfahren die
nicht ganz passen
People,
Process
and
Technology

Neue Prinzipien
Think Big, Start Small, Go Fast
1. Act like a start-up (that is funded and has domain expertise)
2. Embrace cloud computing
3. Use the right tool for each requirement
4. Use out-of-box functionality whenever possible
5. Create a microservices architecture
6. Enforce YAGNI (You Aren’t Going to Need It)
7. Cultivate DevOps
8. “You build it, you own it!”
9. With great power comes great responsibility!
10.With great responsibility comes great power!

Monolith development lifecycle
developers
releasetestbuild
delivery pipelineapp

Conway’s Law
organizations which design systems
…
are constrained to produce designs
which are copies of the
communication structure
of these organizations

Conway in Praxis
Produkt
Entwickler
QA
DBA/DBE
Architektur Betrieb
Design
NOC
Konzept Entwicklung Produktion

Conway in Praxis
Produkt
Entwickler
QA
DBA/DBE
Architektur Betrieb
Design
NOC
Konzept Entwicklung Produktion
Ticketing
System

Den Monolithen dekonstruieren
developers
releasetestbuild
delivery pipelineapp

Microservice development lifecycle
developers delivery pipelinesservices
releasetestbuild
releasetestbuild
releasetestbuild
releasetestbuild
releasetestbuild
releasetestbuild

2 Pizza Teams
6 – 10
developers
services
Kundenverwaltung
Zahlung
Bestellabwicklung
Registrierung/Login
Feature A
Feature B

Cloud Center of Excellence
Cloud Center of Excellence
Training
Identity
management
Asset
management
Reference
architectures
Cost and account
management
Hybrid
architecture

Wie fängt man damit an?
Und wie breitet man das aus?

Suche Nach dem Talent
Companies need cloud expertise now more than ever
Indeed Job Postings that include “AWS”
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
Relative
Percentage
*Indeed.com job trends, http://www.indeed.com/jobtrends/q-AWS.html

Interne Kandidaten
Lernvermögen
Kompetenz in mehreren Programiersprachen
Erfahrung mit Scripting
Erfahrung mit Verwaltung von Betriebssystemen oder DevOps
Leidenschaftlicher Ingenieur
Fullstack Entwickler
Teils Techniker – Teils Tüftler
Jemand den andere um Rat fragen
Teamfähig
Ingenium: [schöpferische] Begabung; Erfindungsgabe
Mensch mit besonderen geistigen, schöpferischen Fähigkeiten

Ein Beispiel (2014 - 2015)
AugSep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Sep Oct Nov
Proof of Concept Complete MVP Soft Launch
Go/NoGoStart
1 Exec Sponsor
1 Architect
1 Consultant
2 Product
4 Frontend
5 Backend
+ 1 Consultant
+ 2 Product
+ 2 Mobile
+ 2 Frontend
+ 4 Backend
+ 2 Platform
MVP Launch
Gradual increase of staffing
Production Ready

Ein Trainings Beispiel
1st Training Delivered
1400 students trained
11 months
Production
Applications
Time
Jan 2015 Sept 2016
0
~100

Unterstützung
AWS Partners AWS Training AWS Professional Services

16MM Ledger Saving Velocity = 50 apps/qtr.
Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility
• 98% reduction in
P1/P0’s
• 77% faster to deliver
business applications
• 52% average
TCO savings
• 35% reduction in
compute assets (792)
• 15 automated bots
developed
• 80% cloud first
adoption
• 15 cloud services
created
• 50 applications
decommissioned
• 8 cloud migration
parties
• Improved security
posture
• Shift to self-service
culture
• Rapid
experimentation
• Reduced technical
debt
• 14M YOY Savings
• Improved
Performance
• Streamlined M&A
Activity
• DevOps in Practice
Progress as of May 2016
14.2M
Investment
Focus
18
Months
311 Apps
in Cloud &
14M YOY
Savings
Sample outcome – GE
http://www.slideshare.net/AmazonWebServices/demystifying-cloud-economics-how-to-build-an-investment-case-for-scale-migration-to-the-cloud-business

Lessons Learned
Automate, then Automate
MoreEverything we do is with automation
in mind, from deployment to
operations. This is the only way to
survive at scale.
Security at Every Layer
Fully utilizing the security provided in
the public cloud allows us to have
confidence in a multi-tenant world.
Embrace Agile
From organization structure to project
management, everything we do is with
agile principles in mind.
Bias toward action
Everyone has a reason not to move to
cloud. Our mission is to find more
reasons why we should.
Work Instead of Workflow
Embracing automation has allowed our
employees to concentrate on doing work,
instead of filling out workflows.
Encourage (calculated)
Risks Celebrate failure. Talk about pivots.
Continuously examine new tools. This
leads to rapid innovation resulting in
progress.
Transformation – Rebuild technology skill
sets, encourage diversity and embrace “hands-
on”
Pipeline – A pipeline of 50+ will ensure
consistent velocity
Collaboration - Embed Security & Risk
teams, CIO + CTO + Corp partnership
Cloud Aware – Rehosting is OK if it
maximizes margin, agility, resilience &
performance
Enablers

Fragen sie
• Entwickler für 3 einfache Sachen die sie gerne reparieren würden
• Das Infrastrukturteam für 3 Sachen die man automatisieren könnte
• Die Datengruppe nach 3 Berichten die kaum gelesen werden
• Das QA team nach Sachen die sich immer wiederholen
• Ob jemand eine Lunch’n Learn oder Meetup Gruppe leiten möchte
Bieten sie
• Möglichkeiten für ein Hackathon an
• Training an (es gibt da viele Möglichkeiten)

Weitere Empfehlungen
Fowler on Microservices
Building Microservices - Sam Newman
DevOps and AWS
The DevOps Handbook
The Phoenix Project
Release It!
Antifragile
Unser Enterprise Blog

Thank you!
Groß ist des Meisters Kraft, wenn er mit dem Hebel schafft!
@groberstiefel
thoblood@amazon.com

Thank you!
Remember to complete
your evaluations!

AWS Executive Insight Event – Frankfurt: January 25 – 26, 2017

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