Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Service

Abstract : The Document outlines the boons of moving to AWS cloud and acquire the agility and easiness for enhancing business.

Executive Summary:

As cloud technology has matured, adoption rates have accelerated by demands from business to deliver transformational solutions faster and stave off unexpected competition. It has been observed that the migration to cloud technology is resulting in significant benefits to the bottom line not just from cost savings but the ability to continuously deliver innovative solutions using capabilities like machine learning and Internet of Things (IoT). According to IDC’s Report, study participants are leveraging AWS to not only lower the cost of providing IT services but change how they deliver IT services and help them transform their business operations to better compete and address market demand.

IDC’s analysis shows that these AWS customers are achieving strong value at an average of $20.97 million per year per organization over five years.

Amazon cloud computing allows customers to focus on projects that differentiate their organization and free them from the burden of data center investments and IT infrastructure operations

Key Benefits of AWS cloud over On-premises/Co-location hosting:

Economic aspects of cloud Migration:      Trade Capital Expense for variable expense:

Instead in having to invest heavily in data centers and servers before you know how you are going to use them, you can use cloud computing and only pay for the resources you consume.

Benefit from massive economies of scale:

By using cloud computing you can achieve a low variable cost. Because usage of millions of active servers at time not needed never justify the cost agreements.

Stop Spending money on running and maintaining Data Centers:

Focus on projects that are core to your organization, not the infrastructure, cloud computing lets you move from Capex to Opex model, letting you focus resources on customers rather than on the heavy lifting of racking, stacking, and powering servers.

Stop guessing at capacity:

Eliminate guessing at your infra capacity needs. When you create a capacity decision prior to deploying an application, you often wither end up sitting on the expensive idle resources or dealing with limited capacity. AWS minimizes this problem for you, utilization of as much or as little totally depends on application and you can upscale and downscale within minutes.

Relentless IT Innovation:

AWS launched 722 new services and features in 2015,1017 in 2016 and 1430 in 2017, hence the pace of innovation is sustained through the economies of scale and commitment to delivering the products.

Restore the technical Debt: No frequent refresh

In contrast to on-premises or co-location hosting there is no refresh cycle as hardware refreshment is eliminated, moreover moving from once instance to other in minutes refreshes to a new virtual instance which can never be possible at data center.

AWS continues to Reduce Prices:

By 65+ times,

AWS reduced the pricing of EC2 instances up to 20% in December 2016.

AWS reduced the pricing of EC2 instances up to 15% in December 2017.

The prices were reduced without any kind of negotiation and were transparent for all the clients.

Source: https://aws.amazon.com/blogs/aws/category/price-reduction/

AWS Services (Impractical configuration if tried on-premises)

Auto-Scaling:

This AWS services enables your infrastructure to scale up only at the times when there is peak in demand and scale down if the demand is normal only charging for the resources that were running in the extra time frame.

High Availability across 2 physical premises:

AWS infrastructure if architected appropriately provides HA, as the same application can run on two or more VM spanned across different physical premises, so eliminating the case of a natural disaster or outage where the other physical environment will keep running the services/Application.

RDS (Relational Database service): AWS relational database service relaxes you from the heavy burdening of management (patch etc.) of server and offers PAAS database engines. RDS also provides Multi-AZ configuration where HA and database transaction synchronization is managed by AWS which can be a very costly affair if done on-premises.      CDN: Serving the web application from different edge location where the data is stored as cache, provides faster end user experience and lower latency as compared to on-premises.

Gartner Magic Quadrant Leader:     AWS is a leader in IaaS and Storage according to Gartner magic quadrant results.

Source: https://aws.amazon.com/blogs/aws/aws-named-as-a-leader-in-gartners-infrastructure-as-a-service-iaas-magic-quadrant-for-7th-consecutive-year/

Customer Testimonials:

“Three years on, we have saved our $100 million in avoided capital and are about 65% in cloud”

Dominic Shine, CIO New Corp

“Leveraging the AWS platform, we have been able to seamlessly scale our infrastructure, better serve our customers across the globe and reduce our fixed costs by 75% and operational cost by 83%”

                                           Valentino Volonghi, CIO AdRoll

“We have realized a 52 percent reduction in TCO Ultimately these savings are a byproduct of doing the right thing”

                                               Ben Cabanas, CTO, GE Transportation