Remediate Tech Debt or Drive Innovation - AWS Summit Sydney 2018

© 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved.
Miriam McLemore
Director, Enterprise Strategy, Amazon Web Services
Remediate Technical Debt or Drive Innovation?
Learn how to do both with your cloud migration

Session Agenda
Setting the Stage for Innovation
Establishing a Business Case for Cloud
Retire Technical Debt
Acquiring New Skills
Implementing New Business Processes
Amazon’s Culture of Innovation
Application Migration Methodology
AWS Capabilities

Setting the Stage for Innovation

The Cloud Offers Well Known Benefits
Focus on differentiation instead of managing a tonne of servers.
Innovate faster and solidify your competitive
advantage by increasing your agility.
Enhance security by leveraging the infrastructure protocols,
scale, and compliance requirements already provided.

What is Cloud Computing? It’s Similar to a Power Grid
Labour & Time Intensive
We Need To Manage
Responsible For Repairs
Build Your Own Power Plant

What is Cloud Computing? It’s Similar to a Power Grid
Leverage Established Resources
Centrally Managed by 3rd Party
Upgrades Provided
Build Your Own Power Plant Plug Into A Power Grid
Labour & Time Intensive
We Need To Manage
Responsible For Repairs

Build Your Own Data Centre
Now, In The Context Of Today’s IT Investments
Large, Upfront Capital Investment
We’re Responsible For Upgrades
Slow To Get New Capabilities

Pay For What You Use
Automatic Upgrades Of Functionality
Access To Feature-Rich Platform
Plug Into The Cloud
Now, In The Context Of Today’s IT Investments
Build Your Own Data Centre
Large, Upfront Capital Investment
We’re Responsible For Upgrades
Slow To Get New Capabilities

Data Centre
Consolidation
Digital
Transformation
Cost
Reduction
Acquisitions
or Divestitures
Large scale compute
intensive workloads
Facility or Real-estate
decisions
Colocation
or outsourcing
contract changes
Agility/Dev
Productivity
Common Migration Drivers

The Kellogg Company
Overview:
• The Kellogg Company, ~$15 B revenue, ~30k employees
Scope / Challenge:
• Trade Promotion Management System
• 16tb of weekly sales data processed (growing to 50tb)
• Current on-prem solution allowed for one simulation a day
Benefits:
• Run dozens of simulations a day
• Changes to trade spend analyses went from 30 days to
immediate & staff now deploys instances 90% faster
• $900k savings in dev/test hardware
Source: https://aws.amazon.com/solutions/case-studies/kellogg-company/
“Using AWS lets us develop and
deliver business services much
more quickly than before, so that
we can keep one step ahead of the
market.”
Stover McIlwain
Former Sr. Director of IT Infra. Engineering
Business Agility

Establishing a Business Case for Cloud

The Economics Of The Cloud Are Compelling
Infrastructure
cost $
Time

Infrastructure
cost $
Time
Predicted demand
Key:

Infrastructure
cost $
Time
Large
capital
expenditure
Predicted demand
Traditional hardware
Key:

Infrastructure
cost $
Time
Predicted demand
Actual demand
Key:
Large
capital
expenditure

Infrastructure
cost $
Time
Opportunity
cost
Predicted demand
Actual demand
Key:
Large
capital
expenditure

Lost
opportunity
Infrastructure
cost $
Time
Predicted demand
Actual demand
Key:
Opportunity
cost
Large
capital
expenditure

Pay as you go
Pay less by using more
Pay less when you reserve
Pay less when AWS grows
No up-front investment
Pay per use
AWS Enables Customers To Pay For Exactly the
Amount of Resources They Actually Use

Your Business Case Should Be Driven By
Your Organisation’s KPIs, But Here’s
Some Common Drivers:

Unit price of infrastructure
Ability to match supply and demand
A pathway to optionality
An elastic cost base
Transparency drives a lean mindset
OPERATIONAL COSTS
Business Value Drivers

Automation drives maintenance efficiencies
Reduced cost of planned and unplanned outages
Increased developer productivity
WORKFORCE PRODUCTIVITY
OPERATIONAL COSTS

Elimination of hardware refresh programs
Elimination of maintenance programs
COST AVOIDANCE
OPERATIONAL COSTS

Reduced risk profile/Reduced cost of risk mitigation
Revenue & margin improvements due to reduced outages
COST AVOIDANCE
OPERATIONAL COSTS
OPERATIONAL RESILIANCE

COST AVOIDANCE
OPERATIONAL COSTS
OPERATIONAL RESILIANCE
BUSINESS AGILITY
Reduced time to market & innovate
Increased operational agility (new market penetration,
divestiture, acquisition)

OPERATIONAL COSTSWORKFORCE PRODUCTIVITYCOST AVOIDANCEOPERATIONAL RESILIENCEBUSINESS AGILITY
98% reduction in
P1/P0s
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 partiesImproved security
posture
Shift to self-service
culture
Rapid experimentation
Reduced technical debt 14M YOY Savings
Improved performanceStreamlined M&A
activity
DevOps in practice
$20M
Investment
Focus
18
Months
300+ Apps
Migrated
$14M YOY
Savings&

Current State of most IT Organisations
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, Limited agility

New Principles Of Transformational IT
1. Act like a start-up (that is funded and has domain expertise)
2. Embrace cloud computing
3. Use the right tool for the business need
4. Use out-of-box functionality whenever possible
5. Create a microservices architecture
6. Enforce 80/20 or YAGNI (You Aren’t Going to Need It)
7. Cultivate Culture and DevOps model
8. “You build it, you own it!”
Think Big, Start Small, Go Fast

IT Map - Traditional IT
Products & Services
CTO/VP Applications
Digital Products, Brand
Websites, Mobile
Applications, Point of Sale
Systems, Commerce
E-mail, Productivity,
Collaboration, HR,
Finance, ERP
Back Office Systems
CIO/VP Corp Systems
Desktop Support, Device
Management, Telephony,
IT Support
End User Computing
VP IT Support
Encryption, Key Management,
Identity Management, Firewalls, IDS,
DDoS
Information Security
CISO

Products & Services
CTO/VP Applications
Websites, Mobile
Systems, Commerce
Collaboration, HR,
Finance, ERP
Back Office Systems
CIO/VP Corp Systems
IT Support
End User Computing
VP IT Support
CISO
DDoS
Infrastructure/Delivery
VP Infrastructure

Products & Services
CTO/VP Applications
Websites, Mobile
Systems, Commerce
Collaboration, HR,
Finance, ERP
Back Office Systems
CIO/VP Corp Systems
IT Support
End User Computing
VP IT Support
Infrastructure/Delivery
VP Infrastructure
CISO
DDoS
PMO Engineering Operations Design

IT Map - A Cloud-First Tomorrow
Back
Office
Systems
End User
Computing
Cloud Centre of Excellence (CoE)
Products & Services

Cloud Centre of Excellence
Technical Training
Hiring People and Partners
Communication Plan
Landing Zone
Security Foundation
Operations Tools
Operations Model
Provisioning
Billing Optimisation
Security Operations
PEOPLE PROCESS TECH
Direct
Connect
Accounts
Central
Services
Security Network
Identity &
Access
Domains
Start
Build &
Iterate
Design Ops
Apps
Infra
AWS
Managed
Services
LeadershipInfrastructure Security
Operations
Applications
Foundational Capabilities

Best Practices
Executive
Leadership
ExperimentEducate Staff
Cloud Centre of
Excellence
Engage Partners

Application Migration Methodology

Application Migration – The Six R’s
1. Re-host
2. Re-platform
3. Re-purchase
4. Re-architect
5. Retire
6. Retain

Redesign
Application/
Infrastructure Architecture
App Code
Development
Full ALM /
SDLC
Integration
Purchase COTS/
SaaS & licensing
Manual Install
& Setup
Modify underlying
Infrastructure
Determine
new platform
Retain /
Revisit
Manual Config
Manual Deploy
Manual Install
Retire /
Decommission
Discover/Assess/Prioritise
Applications
Determine
Migration
Path
Use Migration Tools
Transition ProductionValidation
Automate
Application Migration Patterns

Migration Process
Migration Preparation
& Business Case
Portfolio Discovery
& Planning
Application
Design
Migration &
Validation
Operate
Continually
Optimise

Some Customers Migrating
Consolidating 56 data centres down
to 6, moving 75% of infrastructure
to cloud in the process, and re-
allocating more than $100M
toward key business drivers
Data Centre
Consolidation

Agility/Dev
Productivity
Cost
Reduction
Migrated ~5,500 instances in 9 months,
reduced storage costs 50%, compute
costs 20%, and sped up provisioning by
10x (4 weeks to 2 days)

“Migrating to AWS provides the scalability,
security, and flexibility we need to stay at the
forefront of consumer DNA testing as science
and technology continues to evolve. We’ve
rapidly migrated much of our data and
applications to AWS in less than a year and
we’re excited to ramp up our innovation
engine to help more people discover their
family history.”
- Nat Natarajan, EVP of Product and Technology
Data Centre
Consolidation
Agility/Dev
Productivity

Acquiring New Skills and
Implementing New Business Processes

Embrace microservices
… and value creation

Monolith Development Cycle
App Delivery Pipelines
Build Test Release
Developers

Monolithic vs. SOA vs. Microservices
Single Unit Coarse-grained Fine-grained
MicroservicesSOAMonolithic

Build Test Release
Build Test Release
Build Test Release
Build Test Release
Developers Services Delivery Pipelines
Microservice Development Cycle

and move faster
How can enterprises devote more resources
to the things that matter
while being more secure?

Accelerate Your Developers by
Reducing Undifferentiated Work
0
50
100
150
200
250
Series1 Series2
Reduce
administrative tasks
Hours /
year
Introduce Automated
Services for Coding
Automate Testing &
Defect Discover
Microservices
Serverless
Architecture
Workforce Enablement

Searching For Talent
Companies need cloud expertise now more than ever
Indeed Job Postings that include “AWS”
0
100
200
300
400
500
600
700
1 3 5 7 9 111315171921232527293133353739414345474951535557
Relative
Percentage
*Indeed.com job trends, http://www.indeed.com/jobtrends/q-AWS.html

Impact Of Training
1st Training Delivered
1400 students trained
11 months
Production
Applications
Time
Jan 2015 Sept 2016
0
~100

“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

TECHNICAL & BUSINESS SUPPORT
MARKETPLACE
HYBRID
ARCHITECTURE
MOBILE
SERVICES
DEV/OPS IoT MACHINE
LEARNING
ENTERPRISE
APPS
MIGRATIONANALYTICS
INFRASTRUCTURE CORE SERVICES SECURITY & COMPLIANCE
APP SERVICES
MANAGEMENT TOOLS
Most Robust, Fully Featured Technology Infrastructure Platform

Most Robust, Fully Featured Technology
Infrastructure Platform
CORE SERVICES
Integrated Networking
Rules Engine
Device Shadows
Device SDKs
Device Gateway
Registry
Local Compute
Custom Model
Training & Hosting
Conversational Chatbots
Virtual Desktops
App Streaming
Schema Conversion
Image & Scene
Recognition Sharing & Collaboration
Exabyte-Scale
Data Migration
Text to Speech
Corporate Email Application Migration
Database Migration
Regions
Availability Zones
Points of Presence
Data Warehousing
Business Intelligence
Elasticsearch
Hadoop/Spark
Data Pipelines
Streaming Data
Collection
ETL
Streaming Data
Analysis
Interactive SQL
Queries
Queuing & Notifications
Workflow
Email
Transcoding
Deep Learning
(Apache MXNet,
TensorFlow, & others)
Server MigrationCommunications
MARKETPLACE
Business Apps Business Intelligence DevOps Tools Security Networking StorageDatabases
API Gateway
Single Integrated Console
Identity
Sync
Mobile Analytics
Mobile App Testing
Targeted Push
Notifications
One-click App
Deployment
DevOps Resource
Management
Application Lifecycle
Management
Containers
Triggers
Resource Templates
Build & Test
Analyse & Debug
Identity
Management
Key Management
& Storage
Monitoring &
Logs
Configuration
Compliance
Web Application Firewall
Assessment
& Reporting
Resource & Usage
Auditing
Access Control
Account
Grouping
DDOS
Protection
TECHNICAL & BUSINESS SUPPORT
Support
Professional
Services
Optimisation
Guidance
Partner
Ecosystem
Training & Certification Solutions Management Account Management Security & Billing Reports
Personalised
Dashboard
Monitoring
Manage
Resources
Data Integration
Integrated Identity &
Access
Integrated Resource &
Deployment Management
Integrated Devices
& Edge Systems
Resource Templates
Configuration
Tracking
Server
Management
Service
Catalogue
Search
MIGRATIONHYBRID ARCHITECTUREENTERPRISE APPSMACHINE LEARNINGIoTMOBILE SERVICESDEV OPSANALYTICS
APP SERVICES
INFRASTRUCTURE SECURITY & COMPLIANCE MANAGEMENT TOOLS
Compute
VMs, Auto-scaling, Load Balancing,
Containers, Virtual Private Servers,
Batch Computing, Cloud Functions,
Elastic GPUs, Edge Computing
Storage
Object, Blocks, File, Archivals,
Import/Export, Exabyte-scale data transfer
CDN
Databases
Relational, NoSQL, Caching,
Migration, PostgreSQL compatible
Networking
VPC, DX, DNS
Facial Recognition &
Analysis
Facial Search
Patching
Contact Centre

24 48 61 82
159
280
516
722
1017
1430
0
250
500
750
1000
1250
1500
1750
1 2 3 4 5 6 7 8 9 10
Launches
AWS Pace Of Innovation: New Capabilities Daily

AWS Positioned As A Leader In The Gartner Magic Quadrant
For Cloud Infrastructure As A Service, Worldwide*
AWS is positioned
highest in execution
and furthest in vision
within the Leaders
Quadrant
*Gartner, Magic Quadrant for Cloud Infrastructure as a Service, Worldwide, Leong,
Lydia, Bala, Raj, Lowery, Craig, Smith, Dennis, June 2017 G00315215
This graphic was published by Gartner, Inc. as part of a larger research document and
should be evaluated in the context of the entire document. The Gartner document is
available upon request from AWS : http://www.gartner.com/doc/reprints?id=1-
2G2O5FC&ct=150519&st=sb
Gartner does not endorse any vendor, product or service depicted in its research
publications, and does not advise technology users to select only those vendors with the
highest ratings or other designation. Gartner research publications consist of the
opinions of Gartner's research organisation and should not be construed as statements
of fact. Gartner disclaims all warranties, expressed or implied, with respect to this
research, including any warranties of merchantability or fitness for a particular purpose.

Largest Number Of Startup Customers

Largest Number Of Enterprise Customers

Public Sector Customers

ISVs Running On AWS
“There is no public cloud infrastructure
provider that is more sophisticated or has
more robust enterprise capabilities for
supporting the needs of our growing
global customer base.” – Marc Benioff

Amazon’s Culture of Innovation

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.

OUR MISSION
We want to be earth’s most
customer centric company

OUR COMMITMENT
We make our customers’
lives easier

WHERE INNOVATION
STARTS
We 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

Culture of
Experimentation:
We Give Our People
Freedom To Innovate
Joi Ito
“Want to increase innovation?
Lower the cost of failure”
Rapid iteration –

Hackathons
Experimentation
Sandboxes
Find your threshold
for risk…
and celebrate it

» Mechanisms
Encoded behaviors that facilitate innovative thinking
» Architecture
Structure that supports rapid growth and change
» Culture
Customer obsession, hire builders, let them build,
support them with a belief system
» Organisation
Small, empowered teams that own what they create
How do we
organise for
innovation?

Everyone of us
is a leader on
our mission

Drone Development
Advanced Shopping
Kindle Reader In-house
Entertainment
Grocery Delivery
Video Streaming
Home AutomationCloud Computing
Innovation Manifested Across So Many Domains…

We had three big ideas at
Amazon that we have stuck with
for 20+ years, and they are the
reason we are successful: put
the customer first, invent and
be patient.
Jeffrey P. Bezos
Founder and Chief Executive Officer
Amazon.com, Inc.

Remediate Tech Debt or Drive Innovation - AWS Summit Sydney 2018

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