First session in the one day Technical Due Diligence workshop. Overview the of AWS offerings, mechanisms, tools, and services that can be leveraged during a TDD. Review the AWS playbooks and runbooks.

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Tom Laszewski, Private Equity Transformation Advisor
AWS Value Creation
Technical Due Diligence (TDD) for Acquisitions and Mergers
April 2020

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Table of Contents
• AWS Technical Due Diligence Overview
• Tools and Mechanisms (applicable to):
• AWS customers
• Non-AWS customers
• AWS and non-AWS customers
• AWS Deliverables
• Enablement of customers and partners
• Benefits

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AWS Technical Due Diligence
Assets and Process Overview

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Working Backwards from the Customer
Non-AWS customers
• What is the cost savings of running on AWS?
• How long and how much will it cost me to migrate or modernize to AWS?
• How can I reduce my operational costs by moving to AWS?
AWS customers
• How can I optimize the run time costs of the current AWS environment?
• What does the current AWS environment look like? What the AWS Services are being
utilized? What AWS Services are being used the most?
AWS and non-AWS customers
• Is the AWS, on-premises, or co-location platform optimized?
• What are the cloud capabilities of the customer?
• How do I reduce technical debt?
• Are best practices being used?

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Playbook Overview
The Technical Due Diligence (TDD) pre-transaction playbook
contains the requisite AWS services, product offerings, tools,
mechanisms, reference architectures, and frameworks for users
to employ during the TDD pre-transaction stage of the
acquisition lifecycle. By working backwards from the customer,
the AWS Value Creation Practice (VCP) generates the assets
necessary to deliver on the end goal of accelerated value
creation for customers.

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Runbook Overview
The Technical Due Diligence (TDD) pre-transaction runbook
contains the execution order, escalation procedures,
communication methods, and AWS owners for the mechanisms
and tools defined in the pre-transaction playbook. The runbook
also contains a prescribed list of questions to ask prior to
investor on-sites, target and Advisory firm AWS, and those to ask
during the on-site TDD. The questions are different based upon
whether the target is running AWS, or if they are on-premises.

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AWS Tools and Mechanisms
Applicable to Existing AWS Customers

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AWS Trusted Advisor
AWS Trusted Advisor is an online tool that provides
real time guidance on how to provision resources
and follow AWS best practices. Much like
customized cloud expert, AWS Trusted Advisor
analyzes a company’s AWS environment and
provides best practice recommendations in five
categories:
• Cost optimization
• Performance
• Security
• Fault tolerance
• Service limits
Tool type: Web-based AWS Console
Usage of tool: Publicly accessible to all partners and
customers. AWS e-learning recommended.

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AWS Cost Management
AWS offerings a number of services that assist
customers with cost optimization,
management, and budgeting, including:
• AWS Consolidated Billing
• AWS Billing Console
• AWS Cost Explorer
• AWS Budgets
• AWS Cost and Usage Report
• AWS Compute Optimizer
Tool type: Web-based AWS Console
Usage of tool: Publicly accessible to all partners
and customers. AWS e-learning and webinar
recommended.
Simple, Static, Small
environment
Complex, Dynamic,
Large environment
1. Monthly AWS Invoice
2. AWS Billing
console
3. AWS Cost Explorer
and AWS Budgets
4. AWS Billing File Analysis,
DIY dashboards, and
3rd party tools

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AWS Tools and Mechanisms
Applicable to Non-AWS Customers

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TCO and ROI - Migration Portfolio Assessment (MPA)
The Migration Portfolio Assessment (MPA) tool generates
reports for TCO (AWS run time costs) analysis and ROI
(cost savings - migration costs). The tool is based upon
actual customer migrations, empirical customer data
points, industry averages and various assumptions. MPA
reports provide the following:
• Estimated migration completion time (months)
• Estimated number of resources required for migration
(inclusive of migration work hours
• Migration costs for AWS, customer resources, and a
certified AWS migration partner
Tool type: Web-based tool*
Usage of tool: The online tool can be run by AWS
resources, PE firms and/or M&A Advisory participants.
AWS webinar required.
* You must be a AWS Value Creation Practice member and
be trained on MPA.
Note : AWS Pricing Calculator can be utilized for a very quick, ‘back of napkin’ estimate.

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TCO - Cloud Economics Business Value Calculator
This tool is used by AWS cloud economists to
estimate the business value of AWS in
alignment with the Cloud Adoption Framework
(CAF) with minimal data inputs to:
• Quantify an Outside-In Point of View (POV)
business case
• Supplement a cost savings / TCO only study
into a comprehensive business case
• Add further credibility to a bottom up TCO
study by adding a benchmarked estimate
Tool type: AWS internal tool
Usage of tool: AWS Cloud Economics SME.
AWS VCP engagement required for tool
access/deliverables

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Value Benchmarking
Cost savings (TCO) Staff productivity Operational resilience Business agility
KPI
§ Time to market
§ Time to deploy
§ Code deployment frequency
§ Customer satisfaction
§ Employee satisfaction
KPI
§ Application availability
§ Total monthly incidents
§ Critical (P1/P0) incidents
§ Security incidents
§ Mean-time-to-resolution (MTTR)
§ App resilience rating
§ App security rating
KPI
§ IT spend on app per user
§ Total IT infrastructure spend
KPI
§ VM’s managed per admin
§ TB’s managed per admin
Infrastructure cost savings/
avoidance from moving to the
cloud
Efficiency improvement
by function on a task-by-
task basis
Benefit of improving SLAs and
reducing unplanned outage
Deploying new features/
applications faster and reducing
errors
Cost Impact Value Impact
Example: 50%+ reduction in
TCO (GE)
Example: Over 500 hours per year
of server configuration time saved
(Sage)
Example: Critical workloads run in
multiple AZs and Regions for
robust DR (Expedia)
Example: Launch of new products
75% faster (Unilever)

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IT Landscape Discovery - AWS Application Discovery Service
The objective of the AWS Application Discovery Service
is to allow enterprise customers to plan migration
projects by gathering all of the information about their
on-premises data centers, such as the following:
• Server specifications
• Performance
• Processing run times
• Network connections
Tool type: Web-based AWS Console
Usage of Tool: AWS e-learning and webinar required.
AWS VCP Solution Architect recommended on first
several engagements.
Benefits
• Detailed cost estimate in advance of application
migration to AWS
• Simplification of application migration
planning via the grouping of servers
• Agent-based and agentless functionality
(Agentless mode is more practical during a
TDD given the limited time frame)
• Data encryption in transit to AWS and in the
Application Discovery Service data store
• Integrated with AWS Migration Hub, which
allows users to track the status of migrations
across your application portfolio.

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IT Landscape Discovery – TSO Logic
AWS TSO Logic is a data-driven analysis of total cost of
ownership and cost modelling for your ideal future state.
It ingests millions of data points from your current
environment, including age, generation and
configuration of all hardware and software they’re
running and each instance’s historical utilization
Tool type: AWS or partner request for TSO Logic
Assessment
Usage of Tool: AWS or Partner free of charge to Value
Creation Practice partners and AWS PE firms
Benefits
• Discover and understand what you have today
• Algorithms to build the data-backed business case
• Agentless-based
• Pass algorithmically generated recommendations
to ecosystem partners (AWS Migration Hub)
• Utilizes latest AWS pricing models and services
• Find the most economical place for workloads –
AWS or on-premises.

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AWS Tools and Mechanisms
Applicable to AWS and Non-AWS Environments

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Cloud Capability Assessment
The Cloud Capability Assessment consist of 30 questions
equally divided among the six Cloud Adoption
Framework (CAF) business and technical perspectives.
Each question is assigned a rating from 1-5 that maps to
the cloud stages of adoption:
• Project
• Foundation
• Acceleration and migration
• Optimization and Reinvention
• Disruption
A report including highlights and observations, key
takeaways, a functional rating (1-5), and a radar chart with
recommendations to increase the rating across each of the six
CAF perspectives is generated from the assessment.
Tool type: Microsoft Excel Spreadsheet
Tool Usage: AWS VCP engagement required for tool
access/deliverables unless trained by AWS

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Technical Debt Discovery
AWS CodeGuru Profiler is always searching for
application performance optimizations, identifying
your most “expensive” lines of code and
recommending ways to fix them to reduce CPU
utilization, cut compute costs, and improve
application performance.
• Continuously run in production
• Analyzes real traffic patterns
• Can run on production workloads
• Java applications
*Not applicable to TDD
Tool type: Web-based AWS Console
Usage of tool: Publicly accessible to all partners and customers. AWS e-learning and webinar recommended.
*Cast Software and WhiteSource are AWS partners with Technical Debt tools
AWS CodeGuru Reviewer detects deviation from best
practices for using AWS APIs and SDKs, and also
identifies concurrency issues, resource leaks, and
correct input validation
• GitHub or AWS CodeCommit
• $0.75 per 100 lines of code analyzed per month,
90 days at no cost
• Java Applications
Powered by Machine Learning, best practices, and millions of lines of code review

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AWS Well-Architected Tool
The Well-Architected Framework has been developed to help
cloud architects build secure, high-performing, resilient, and
efficient infrastructure for their applications. Based on five
pillars:
• Operational excellence
• Security
• Reliability
• Performance efficiency
• Cost optimization
The AWS Well-Architected (WA) Tool is used to complete a Well-
Architected Review (WAR). The tool helps customers review
the state of their AWS and on-premises workloads, and compares
them to the latest AWS architectural best practices.
Tool type: Web-based AWS Console or spreadsheet (AWS
only)
Usage of Tool: AWS e-learning and webinar required. AWS
VCP Solution Architect recommended on first several
engagements.
Well-Architected Insights
• AWS customers and partners have completed over
70,000 Well-Architected Reviews (WARs).
• 10% of WARs have been completed on non-AWS
workloads.

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AWS Deliverables

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AWS Deliverables - Output Templates
AWS TDD Flash Report Sample Deliverable
• The purpose of this document is to provide prescriptive recommendations based upon hypothesis
(opportunities). The document is formatted in a two by two format with quadrants for strengths, threats,
opportunities (hypothesis) and weaknesses. The document provides the ROI, TCO, and value benchmarks for
the top hypothesis in the appendix.
Migration and modernization ROI and TCO Sample Deliverable
• Migration person hours, and AWS run time costs based upon AWS empirical data points, industry averages,
and a set of assumptions.
Migration and Modernization Value Creation Disposition Comparison
• The purpose of this document is to provide prescriptive recommendations. The observations, hypothesis,
recommendations, red flags (risks) in this document are based upon the intelligence gathered during the TDD.
Value Benchmarking Report
• Results based on four cloud value benchmarking areas that provide a portfolio company industry based
insights to drive better outcomes.
Cloud Capability Report
• Results in a better understanding of the readiness of a portfolio company to undertake a cloud migration or
modernization effort, innovative pilot project, or digital transformation initiative.

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AWS TDD Flash Report

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Migration and modernization ROI and TCO Sample
Deliverable
A report outlining the return on investment for a total cost of ownership calculation based on a series of
documented inputs, assumptions, AWS tools/mechanisms used, and resulting outputs.

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Migration and Modernization Value Creation Disposition
Comparison
This comparison contains the migrations and modernization options for compute, storage, network (hosting cost
savings), and revenue generation value creation opportunities outside of staff productivity, operational resiliency, and
innovation – the three pillars of value creation beyond cost savings.

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Cloud Value Benchmarking Report
Cost savings (TCO) Staff productivity Operational resilience Business agility
Cost impact Value impact
What is it?
Infrastructure cost savings/
avoidance from moving to
the cloud
Example
66% reduction in
application hosting and
deployment cost
(Thermo Fisher Scientific)
What is it?
Efficiency improvement
by function on a task-by-
task basis
Example
Cut search times by 90%
(Benchling)
What is it?
Benefit of improving SLAs
and reducing unplanned
outages
Example
Accelerated minor product
updates from once a year
to biweekly, with no
downtime
to customers (Heartflow)
What is it?
Deploying new features/
applications faster and
reducing errors
Example
Run simulations 98%
faster (Bristol-Myers
Squibb)
A report outlining cloud value benchmarking across four focus areas: cost savings, staff productivity,
operational resilience, and business agility according the industry of the company assessed.

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Cloud Capability Report
A detailed report including highlights, observations, and key takeaways with recommendations to increase a
company’s rating across each of the six CAF perspectives is generated from the cloud capability assessment.

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How Can AWS Enable You?

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AWS Enablement – Self Service Programs and Services
Self Service
AWS Architecture Center - AWS Solutions, Whitepapers & Guides, and Reference Architecture
Diagrams
AWS Quickstarts – AWS CloudFormation templates that automate deployments, provide a guide
that discusses the architecture, and step-by-step deployment instructions
AWS Customer Success – Access to use cases from our millions of customers, including the
fastest-growing startups, largest enterprises, and leading government agencies—who are using
AWS to lower costs, become more agile, and innovate faster
AWS Cloud Economics Center - Access to a broad portfolio of solutions, services, and experts to
quantify the financial benefits of the cloud that helps increase growth, drive efficiencies, and
realize important long-term cost reductions
AWS Prescriptive Guidance - AWS Prescriptive Guidance provides time-tested strategies, guides,
and patterns from Amazon Web Services (AWS) and AWS Partner Network (APN) Partners to
help accelerate your cloud migration, modernization, or optimization projects

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AWS Enablement – Workshops
Value Creation One-Day Intro Workshop
This workshop provides participants an introduction to AWS frameworks, tools, mechanisms, and
solutions most relevant to accelerating value creation with the help of the cloud.
Value Creation Post-Transaction Application Migration Workshop
The workshop will provide the foundation for a 10-20-30 project or initiative migration sprint plan with
well-defined milestones to quickly demonstrate results.
Cloud Adoption Readiness Workshop
The one-day AWS Cloud Adoption Readiness workshop will result in a better understanding of the
readiness of a portfolio company to undertake a cloud migration or modernization effort, innovative pilot
project, or digital transformation initiative.
Art of the Possible Workshop
Identify and document three to five pilot projects (aka scenarios) that will solve a customer problem or
address a customer opportunity. Choose one scenario and write a press release and Frequent Asked
Questions (FAQ) document to describe the result of implementing the solution for this customer problem
or opportunity.

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AWS TDD Game Days
AWS Technical Due Diligence (TDD) GameDay is an interactive team-based
learning exercise designed to give players (those that execute TDDs) a
chance to validate the AWS TDD playbooks and runbooks. It allows
AWS, Customers, Private Equity firms, and M&A Advisory partners to
the test the AWS support of a TDD in a real-world, gamified, risk-free
environment. The customer should bring 2-3 previous or existing TDD
scenarios to the GameDay.

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Customer and Partner Benefits

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Benefits
Pre- and Post-transaction Support
Access to the following:
• Education (in-person, online webinars, etc.)
• Frameworks (CAF, Well-Architected, etc.)
• Mechanisms (MPA, Technical and Non-
technical Playbooks and Runbooks)
• Scalable programs (M&A Advise, etc.)
Access to AWS topic matter experts in the
following fields:
• Solution Architecture
• Migration and Modernization SMEs
• Cost Optimization SMEs
• Cloud Economics SMEs
• Professional Services
• Digital Innovation Experts
• Transformation Strategists
• Business Development
• Sales

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For more details on the AWS TDD for M&A assets and engagement support,
contact the following:
Tara Jones
Value Creation Practice, Global Business Lead
tarajon@amazon.com
Tom Laszewski
Value Creation Practice, Global Technical Lead
tomlasz@amazon.com
Sven Koppany
Value Creation Practice, Solutions Architect
@amazon.com

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Thank you!