As more and more customers move mission-critical workloads to the cloud, there is increasing demand for Managed Service Providers to help customers migrate and then operate those customer environments on an ongoing basis. This session will describe some of the key considerations for Managed Service Providers operating on AWS.  You will hear from Partners who have learned and adapted their operations to provide high-quality managed services.  And you will learn about the AWS Managed Service Program and how it provides a framework of best practices for Partners to find success in this rapidly expanding space.  Join us if you are a business professional who is interested in expanding into the cloud MSP space, or a technical professional who wants an understanding of the technical best practices from successful cloud MSPs.

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Best Practices for Building Partner
Managed Services on AWS
Kelly Hartman, Global Segment Leader, MSPs
Kyle Lichtenberg, Solutions Architect

2. In This Session…
• Managed Services: A Change Has Occurred
• Best Practices: View from AWS MSPs
• AWS: How we are Enabling this Delivery Model

3. Are Supported by
Cloud Operations
Enable Ongoing
Business Evolution
• Help customers reduce their
responsibility for managing/operating
applications & infrastructure
• Focus on continuous improvement
Are Proactive
in Nature
• Proactive Monitoring,
Management, Orchestration,
& Automation
How Does AWS Define Managed Services?
• SLAs that clearly define partner
obligations to the customer with
recourse if not met
Are Backed by
Contractual Terms
• People, processes, & tools to
support contractual obligations
Business solutions for customers that leverage the benefits of AWS and:

4. Managed Services
Then
• Automation of Incident Management
Systems
Now
• Distributed Ops with a Service Oriented
Architecture (SOA)
• Hardware-Based Solutions
– CPE or Provider Owned
• Proactive SLAs
– Based on Devices Under Management
• Centralized Operations
– NOC
• Capital Outlay or OPEX Costs
• Engineering Resources Required Onsite
for Complicated Fixes/Equipment
Replacement
• Engineers Manipulate Software-Defined
Infrastructure to Resolve Issues
• Automation of Incident Management
Systems, Event Correlation, & Fixes
• Proactive SLAs
– Based on Overall Solution/Application Performance
• Software or Cloud-Based Solutions
• Utility-Based Costs

5. What Does This Mean When Building or
Evolving to an AWS Managed Service
Practice?

6. Comprehensive Understanding of AWS Services and
Features
Reset of Roles, Functions, and Processes to Support
DevOps
You Need to Specialize
New Financial Models & Contracts
It Means….

7. Best Practices: View from AWS MSPs

8. First Audited and Approved MSPs

9. Joining Us…
Jamie Begin
RightBrain Networks
Spencer Colson
Smartronix

10. Comprehensive Understanding of AWS
Services and Features

12. Compute Amazon Elastic Compute Cloud (Amazon EC2)
Amazon Elastic Block Store (Amazon EBS)
Elastic Load Balancing (ELB)
Networking Amazon Virtual Private Cloud (Amazon VPC)
AWS Direct Connect
Amazon Route 53
Databases Amazon Relational Database Service (Amazon RDS)
Amazon ElastiCache
Storage and Content
Distribution
Amazon Simple Storage Service (Amazon S3)
Amazon Glacier
Amazon CloudFront
AWS Storage Gateway
Application Services Amazon Simple Queue Service (Amazon SQS)
Amazon Simple Email Service (Amazon SES)
Deployment and
Management
AWS Elastic Beanstalk
AWS CloudFormation
AWS OpsWorks
Administration and Security AWS Directory Service
AWS Identity and Access Management (IAM)
AWS CloudTrail
Amazon CloudWatch
AWS Trusted Advisor
Mobile Services Amazon Simple Notification Service (SNS)

13. Reset of Roles, Functions, and Processes to
Support DevOps

14. Reset of Roles, Functions, and Processes to Support
DevOps

15. Specialize

16. Core
Managed
Service
Capabilities
Application
Migration &
Management
Hybrid IT
Expertise
Custom
Application
Development for
Managed
Environments
Industry
Expertise &
Compliance
AWS Managed Service Program
Business
Capability
Identifiers
Technical
Capability
Identifiers
Data
Management
Specialist
Application
Development
Specialist
Mobile
Services
Specialist
End User
Services
Specialist
Third-Party Capabilities Validation Audit

17. New Financial Models and Contracts

18. Lifecycle Approach
Discover Plan Migrate Integrate Validate Operate Optimize
Traditional MSP
AWS MSP

19. Fixed managed services fee, included AWS spend
Pros:
• Traditional MSP sales model
• Margin found in gained efficiencies
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TotalMonthlyCost($)
AWS Spend Managed Services Fee
Cons:
• Antithetical to AWS mindset
• Unexpected spikes will come out of
partner’s pocket

20. AWS Spend % Uplift
Pros:
• Easy to explain, easy to sell
• Maps to the scaling nature of AWS
Cons:
• Can result in wildly varying costs not
grounded in required support activity
• Partner disincentivized to drive down costs
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TotalMonthlyCost($)
AWS Spend Managed Services Fee

21. Fixed managed services fee, pass-through AWS
spend
Pros:
• Best aligns with customer interests
• Predictable revenue stream
Cons:
• Billing can be complex in resell model
• Low margin requires tight management
of separation of responsibilities
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
TotalMonthlyCost($)
AWS Spend Managed Services Fee

22. How is AWS Enabling MSPs?

23. Enterprise
Applications
Virtual Desktop Sharing & Collaboration
Platform
Services
Analytics
Hadoop
Real-time
Streaming Data
Data
Warehouse
Data
Pipelines
App Services
Queuing &
Notifications
Workflow
App streaming
Transcoding
Email
Search
Deployment & Management
One-click web
app deployment
Dev/ops resource
management
Resource
Templates
Mobile Services
Identity
Sync
Mobile
Analytics
Push
Notifications
Administration
& Security
Identity
Management
Access
Control
Usage
Auditing
Key
Storage
Monitoring
And Logs
Core
Services
Compute
(VMs, Auto Scaling
and Load Balancing)
Storage
(Object, Block
and Archival)
CDN
Databases
(Relational, NoSQL,
Caching)
Networking
(VPC, Direct
Connect, DNS)
Infrastructure Regions Availability Zones Points of Presence

24. AWS Managed Service Program Validation Checklist

25. AWS Managed Service Program
Requirements & Benefits
Eligible for Free AWS
Usage Credits for
Development
Eligible for Free AWS
Usage Credits for
Customer Proof of
Concepts
Eligible for FastTrack
Funding Package
Access to NDA Roadmap
Webinars
Managed Service Partner
Logo
Co-Participation at AWS
& Industry Events
Sales Team Showcase
Eligible for Marketing
Funds, Programs, &
Campaigns
Placement in the AWS
Partner Directory as an
AWS Managed Service
Partner
Eligible for AWS ProServ
Engagements &
Workshops
Access to MSP Best
Practice Guides,
Whitepapers, & Resource
Library
Eligible for Additional
AWS Training Subsidies
Reduced Price
Certification Boot Camp
Class and Free Practice
Exam Voucher

26. Get Started Today!
Visit the AWS Managed Service Program Webpage & Sign Up for
MSP Communications
www.aws.amazon.com/partners/managed-service/
Visit the APN Portal “Managed Service Provider” Tab
https://www.apn-portal.com/apex/SiteLogin
Visit the AWS Training and Certification Center
http://aws.amazon.com/certification/

27. SAN FRANCISCO