how does cloud computing change the business model for consumers and providers?
DESCRIPTION
How Does Cloud Computing Change the Business Model for Consumers and Providers?by Kingsley WoodTRANSCRIPT
Amazon Web Services
How Does Cloud Computing Change the Business
Model for Consumers and Providers?
Kingsley WoodBusiness Development - Asia Pacific
Amazon ?
Don’t you guys sell books ?
AMAZON’S THREE BUSINESSES
Consumer (Retail)
Business
Seller
Business
Developers &
IT ProfessionalsBusiness
Tens of millions of
active customer
accounts
Seven countries: US,
UK, Germany, Japan,
France, Canada,
China
Business
Sell on Amazon
websites
Use Amazon
technology for your
own retail website
Leverage Amazon’s
massive fulfillment
center network
IT Professionals
On-demand
infrastructure for
hosting web-scale
solutions
Hundreds of
thousands of
registered customers
2007: AWS bandwidth usage surpassed Amazon.com global websites
2008: AWS bandwidth usage 30% greater than Amazon.com global websites
Amazon.com vs. AWS
Bandwidth Usage:
2001 2002 2003 2004 2005 2006 2007 2008
Amazon.com AWS
Amazon Web Services
http://aws.amazon.com
The 70/30 Switch
YourBusiness
Managing All of the “Undifferentiated Heavy Lifting”
30% 70%
On-Premise
InfrastructureInfrastructure
Cloud Computing Flips it around
YourBusiness
Managing All of the “Undifferentiated Heavy Lifting”
70%
On-Premise
Infrastructure
30%
Cloud-Based
Infrastructure
More Time to Focus onYour Business
Configuring Your Cloud
Assets
30%70%
Infrastructure
Serving over 5 Million
users per month !
Only 3 full
time staff !
Dropbox on AWS
Millions of
2 GB Free !
Millions of
Users !
11) Elastic Capacity) Elastic Capacity
2) Faster time to market2) Faster time to market
33) No initial investment (No CapEx)) No initial investment (No CapEx)
44) Pay as you go, pay for what you use) Pay as you go, pay for what you use
5) Focus on your business5) Focus on your business
Utility Pricing ModelVirtual Servers and Storage On Demand
Pay only for
what you use !what you use !
You just lost Customers
InfrastructureCost $
LargeCapital
Typical Dilemma:
Predicting Infrastructure Needs
Time
CapitalExpenditure
Opportunity Cost
PredictedDemand
TraditionalHardware
ActualDemand
AutomatedVirtualization
Wall Street & Cloud Capacity
3000 CPU’s for one firm’s risk management processesV
irtua
l CP
U’s
3000
Virt
ual C
PU
’s
300 CPU’s on weekends
Thursday4/23/2009
Friday4/24/2009
Sunday4/26/2009
Monday4/27/2009
Tuesday4/28/2009
Saturday4/25/2009
Wednesday4/22/2009
300
New York Times
TimesMachine : 1851-1922
4 TB TIFF images 100 CPU’s in cloud 11 Million PDFs
100 CPU’s x 24 hours x $0.10 / Hr = $240
Faster, CheaperVirtual Servers On Demand
Eli Lilly automated deployment of departmental
servers and scientific grid computing clusters
Internal IT AWS
4-5 weeks 2-3 minutes
computing clusters
Staging
instance
Production
instance
www.YourWebsite.comwww.YourWebsite.com
Elastic IP
183.12.43.11
Staging.YourWebsite.comStaging.YourWebsite.com
Dynamic IP
172.0.1.13
Web Server
MyWebSite.com
LB
Web Server
LBApp Load BalancerHardware or Software solution to spread traffic over app servers
Web TierFleet of machines handling HTTP requests.
Web Load BalancerHardware or Software solution to distribute traffic over web servers
Exterior Firewall Hardware or Software Solution to open standard Ports (80, 443)
Backend Firewall Limits access to application tier from web tier
MySQL
Master
MySQL
(Slave)
App Server App Server App Server
Tapes
Data Tier Database Server machines with master and local running separately, Network storage for Static objects
App Server Tier Fleet of machines handling Application specific workloadsCaching server machines can be implemented at this layer
Backups on Tapes Periodic backups stored on Tapes usually managed by 3rd
party at their site
A Classic Web ArchitectureA Classic Web ArchitectureA Classic Web ArchitectureA Classic Web Architecture
Auto-scaling group : Web TierAuto-scaling group : Web Tier
Web Server
MyWebSite.com
ELB: Web Tier
App ServerCloud
LB
Web Server
SLB
App Server
Web Server Web Server
App Server
SLB
App Server
DNS
Availability Zone #n
Availability Zone #1
Auto-scaling group : App Tier
Availability Zone 2
RDS
Master
App ServerCloud
FrontApp Server
App Server
RDS
Slave
Auto-scaling group : App Tier
App ServerApp Server
App Server
RDS
Slave
Amazon
S3
A Scalable Web Architecture on AWSA Scalable Web Architecture on AWSA Scalable Web Architecture on AWSA Scalable Web Architecture on AWS
ScalableIncrease or decrease
capacity in minutes
Automation
Cost EffectiveLow rate, pay-as-you-go
Features of Cloud Computing
Automation
SecureMultilayer security facilities
ReliableMission Critical
Infrastructure
Subnets
Customer’s isolated AWS resources
Router
Virtual Private Cloud (VPC)
Customer’sNetwork
AmazonWeb ServicesCloud
Secure VPN Connection over the Internet
RouterVPN
Gateway
Customers in 190 Countries
AWS PartnersThe power of the AWS Ecosystem
Kingsley Wood
Business Development - Asia Pacific
http://aws.amazon.comhttp://aws.amazon.com