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© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Building an Investment Case
for Mass Migrations ...
a generic term used to describe the disruptive
transformation in I.T. towards a service based economy
driven by a set of e...
Today, startups are born in the cloud…
Enterprises…however, have legacy technology debt
Today, startups are born in the cloud…
Enterprises…however, have legacy technology debt
So what can we do for large organi...
Patterns for Enterprise Adoption
“transform the way organisations produce &
consume technology”
Remediate
Technology Debt
...
CUSTOMER CLOUD CENTER OF EXCELLENCE (COE)
AWS CLOUD ADOPTION FRAMEWORK DELIVERY KITS
CLOUD-NATIVE
RETIRE
TECH
DEBT
Cloud S...
But how do I quantify this?
Use the AWS tools, right?
AWS TCO Calculator (https://awstcocalculator.com)
Not quite!
Lack of Data
Infrastructure comparison
Application centric TCO
Legacy Constraints
A poorly understood
Migration Pathway
Ca...
Content for today…
AWS Business
Case Basics Migration
Reference
Cases
Common
blockers – how
do we help?
Migration Take off...
MM Business Case…where to draw the line?
The Evolution of the Mass Migration
Business Case From infrastructure cost savings to a business imperative
New Business G...
What does this mean for you?
There is a tightening correlation between cloud adoption and business performance.
LevelofClo...
Business Case Deliverables
“Based on the current
level of business
activity, the projected
five year IT cost base
amounts ...
Breaking down the AWS Business Case
The current estate is dominated by business and
digital applications that account for ...
Based on current activity, the projected five year IT
cost base amounts to USD__, including capital
requirements of USD__....
A tailored migration approach and investment.
Breaking down the AWS Business Case
The current estate is dominated by busin...
Over a 5 years, an investment of USD__ will deliver
USD__ savings with a payback period of 2.5 years.
Breaking down the AW...
Okay, let’s talk specifics
Five Key Benefits Categories of Cloud
• Unit Price of Infrastructure
• Ability to match supply & demand
• Reinvention is c...
It’s not one size fits all
The migration approach is dependent on the specific
drivers and constraints of the organisation
Lift and Shift Right-sized...
Cost to Achieve – Application Transformation Patterns
Migration Pattern Name & Label Pattern Description
Retain Ø Client w...
Reinvention is continuous
100%
30%
Today DC in AWS Right-sizing AWS
Optimized
Apps
Move to
Higher-level
Services
Move to
Open
Source
Corporate
Apps ...
So who’s actually done this?
AWS Business
Case Basics Migration
Reference
Cases
Common blockers –
how do we help?
Migratio...
General Electric Migration Case
Ready for innovation
9000 Workloads
Including 300 disparate ERP
systems to AWS
34 to 4 Dat...
Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility
• 98% reduction in
P1/P0’s
• 7...
There are many more…
From business case to reality
Kaplan Closes 8 Data Centers.
By Migrating Data Centers, Wilmar Saves 50% in CAPEX.
Delaware...
About those blockers…
Lack of Data
A poorly understood
Migration Pathway
Lack of trusted
support/partners
A daunting investment
amount
Infrastru...
and this list is always growing…
Database
Migration
Service
Snowball
2015 2016
Migration
Acceleration
Program
Server
Migra...
What’s more…
…we’ve created a program that brings
this all together
MRA Migration Readiness Planning Migration to AWS Optimize
1 2 3 4
...
…we’ve created a program that brings
this all together
MRA Migration Readiness Planning Migration to AWS Optimize
1 2 3 4
...
Closing thoughts…
Data Discovery is often the bottleneck – start now!
Leverage skilled business case resources
Test your e...
“We start with what the customer needs and
we work backwards.”
– Jeff Bezos
Thank You!
Building an Investment Case for Mass Migrations to AWS - AWS Summit SG 2017
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Building an Investment Case for Mass Migrations to AWS - AWS Summit SG 2017

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While cloud is fast becoming the new normal for organisations of all sizes, many IT executives & budget owners struggle to articulate the business value of moving to the cloud in terms that resonate with the Board and the broader C suite. In this session, we will talk through a live customer migration investment case that we had developed for a customer to undertake a commercial evaluation of their move to the cloud. It will illustrate the true impact of cloud computing on the overall IT cost base along with migration costs and associated non-cost benefits. Finally, we will discuss how AWS can support you in developing a similar investment case for your organization through a holistic framework.

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Building an Investment Case for Mass Migrations to AWS - AWS Summit SG 2017

  1. 1. © 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Building an Investment Case for Mass Migrations to AWS Conor McNamara Head of Business Development, Amazon Web Services, APAC
  2. 2. a generic term used to describe the disruptive transformation in I.T. towards a service based economy driven by a set of economic, cultural and technological conditions. Cloud Computing @SWardley
  3. 3. Today, startups are born in the cloud… Enterprises…however, have legacy technology debt
  4. 4. Today, startups are born in the cloud… Enterprises…however, have legacy technology debt So what can we do for large organizations? AWS Mass Migration.
  5. 5. Patterns for Enterprise Adoption “transform the way organisations produce & consume technology” Remediate Technology Debt Develop an Innovation Factory Platform
  6. 6. CUSTOMER CLOUD CENTER OF EXCELLENCE (COE) AWS CLOUD ADOPTION FRAMEWORK DELIVERY KITS CLOUD-NATIVE RETIRE TECH DEBT Cloud Stages of Adoption value time PROJECT 1 FOUNDATION 2 MIGRATION 3 REINVENTION 4
  7. 7. But how do I quantify this?
  8. 8. Use the AWS tools, right?
  9. 9. AWS TCO Calculator (https://awstcocalculator.com)
  10. 10. Not quite!
  11. 11. Lack of Data Infrastructure comparison Application centric TCO Legacy Constraints A poorly understood Migration Pathway Capacity Planning Benefits Cloud Operating Model Migration planning and schedule Lack of trusted support/partners Workforce productivity Training and enablement A daunting investment amount Financial Benefits of Innovation Cost Avoidance Costs (Migration and Platform)
  12. 12. Content for today… AWS Business Case Basics Migration Reference Cases Common blockers – how do we help? Migration Take off Where to start? Examples ● Steps 1 2 3 4
  13. 13. MM Business Case…where to draw the line?
  14. 14. The Evolution of the Mass Migration Business Case From infrastructure cost savings to a business imperative New Business Growth • Organic and Inorganic Growth • Reduced cost of entry • Global Reach • Reduction in time-to-market for new products and services • Customer centricity Increasing profitability of existing products and services • Increased Business Process Automation • Incremental Innovation • Reduction in Rework Reduction in IT Cost Base • Consumption Based Pricing & Automation • Elimination of upfront CAPEX requirements • Real-time access to declining prices CloudAdoption
  15. 15. What does this mean for you? There is a tightening correlation between cloud adoption and business performance. LevelofCloudAdoption Competitive Performance Percentile Market followers Market challengers Market leaders Zero Cloud Usage Experiment Disruptors
  16. 16. Business Case Deliverables “Based on the current level of business activity, the projected five year IT cost base amounts to USD$___, including capital requirements of USD$___.” “Do Nothing” Scenario Transformation Investment Required Application Transformation Platform build/enhancement Training and Change Management Target Future $0
  17. 17. Breaking down the AWS Business Case The current estate is dominated by business and digital applications that account for ~X% of the applications and ~Y% of the servers. Business Application s Digital Application s Batch Processing Application s End-user Computing Application s APPLICATIONS BREAK-DOWN BY CATEGORY Business Application s Digital Application s Batch Processing Application s End-user Computing Application s SERVERS BY APPLICATION CATEGORY
  18. 18. Based on current activity, the projected five year IT cost base amounts to USD__, including capital requirements of USD__. Breaking down the AWS Business Case The current estate is dominated by business and digital applications that account for ~X% of the applications and ~Y% of the servers. APPLICATIONS BREAK-DOWN BY CATEGORY SERVERS BY APPLICATION CATEGORY 0 100 200 300 400 500 600 700 Year 1 Year 2 Year 3 Year 4 Year 5 USDm Capital Requirements Application and related costs Operations and service management costs Infrastructure Opex Five Year “Do Nothing” Cost Base
  19. 19. A tailored migration approach and investment. Breaking down the AWS Business Case The current estate is dominated by business and digital applications that account for ~X% of the applications and ~Y% of the servers. APPLICATIONS BREAK-DOWN BY CATEGORY SERVERS BY APPLICATION CATEGORY 0 500 1000 Year 1 Year 2 Year 3 Year 4 Year 5 USDm Based on current activity, the projected five year IT cost base amounts to USD___, including capital requirements of USD53m.Apps: Migration Approach & Investment Required R1 R2 R3 R4 R5 R6
  20. 20. Over a 5 years, an investment of USD__ will deliver USD__ savings with a payback period of 2.5 years. Breaking down the AWS Business Case The current estate is dominated by business and digital applications that account for ~x% of the applications and ~y% of the servers. APPLICATIONS BREAK-DOWN BY CATEGORY SERVERS BY APPLICATION CATEGORY 0 500 1000 Year 1 Year 2 Year 3 Year 4 Year 5 USDm Based on current activity, the projected five year IT cost base amounts to USD___, including capital requirements of USD53m. A tailored migration approach and investment. Label Pattern Name # of apps # of servers CTA Retain / Repurchase Out of scope Retire* Out of scope Re-Hosting* 512 4,844 USD12.2m Re-Platform* 485 4,586 USD20.1m Re-Factoring* 179 1,698 USD24.9m Re-Architect** 92 872 USD25.6m Total 1,268 12,000 USD82.8m R1 R2 R3 R4 R5 R6 Apps: Migration Approach & Investment Required $(200,000,000) $(100,000,000) $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Cash Flow Analysis
  21. 21. Okay, let’s talk specifics
  22. 22. Five Key Benefits Categories of Cloud • Unit Price of Infrastructure • Ability to match supply & demand • Reinvention is continuous – a true efficiency dividend • A pathway to optionality • An elastic Cost Base • Transparency drives a lean mindset Operational Costs Workforce Productivity • Automation drives maintenance efficiencies • Reduced cost of planned and unplanned outages • Increased Developer Productivity Cost Avoidance • Elimination of hardware refresh programs • Elimination of maintenance programs Operational Resilience • Reduced Risk Profile/Reduced cost of Risk Mitigation • Revenue & margin improvements due to reduced outages Business Agility • Reduced Time to Market • Increased operational agility (new market penetration, divestiture, acquisition) • Reduced cost & increased Pace of Experimentation
  23. 23. It’s not one size fits all
  24. 24. The migration approach is dependent on the specific drivers and constraints of the organisation Lift and Shift Right-sized on AWS AWS-Optimized Old world enterprise in the cloud Exploring the new normal Next-gen operating model Benefits of change Degree of Change
  25. 25. Cost to Achieve – Application Transformation Patterns Migration Pattern Name & Label Pattern Description Retain Ø Client will keep host / application in their source environment Retire* Ø Application and host decommission on source Re-Hosting* Ø Like for Like application migration to target cloud Ø Minimal effort to make the application work on the target cloud infrastructure (Minimal appl layout change) Re-Platform* Ø Up-Version of the OS and/or Database onto the target cloud Ø Storage migration will be needed (without conversion) Ø Application reinstallation on the target Ø Database to AWS RDS Re-Factoring* Ø OS and/or Database porting Ø Middleware and application change to cloudify an application Ø Data conversion; Database transition to MySQl, Aurora, etc. Ø UAT required Re-Architect** Ø Application architecture changes may also require Up-Version or Porting Ø Middleware, data modernisation; application consolidation / stacking Ø UAT required; HPC Grid, No ITIL R1 R2 R3 R4 R5 R6
  26. 26. Reinvention is continuous
  27. 27. 100% 30% Today DC in AWS Right-sizing AWS Optimized Apps Move to Higher-level Services Move to Open Source Corporate Apps aaS on AWS Migration to Workspaces True AWS Optimized Focus of initial migration For illustrative purposes only Migration is just the beginning…
  28. 28. So who’s actually done this? AWS Business Case Basics Migration Reference Cases Common blockers – how do we help? Migration Take off Where to start? What? ● Why? ● When? Examples ● Steps 1 2 3 4
  29. 29. General Electric Migration Case Ready for innovation 9000 Workloads Including 300 disparate ERP systems to AWS 34 to 4 Datacenters Over the next three years 52% TCO reduction GE Oil & Gas core app migration Building before Buying “This is no longer an experiment, it is inevitable” GE CIO, Jim Fowler, 2015 Workloads migrated 242 884 2066 2014 2015 2016 12 Primary Business Units Migrated What’s next? Currently 80% (Tech Debt) 20% (Digital Innovation) Going forward 50% (Tech Debt) 50% (Digital Innovation)
  30. 30. Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility • 98% reduction in P1/P0’s • 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 parties • Improved security posture • Shift to self-service culture • Rapid experimentation • Reduced technical debt • 14M YOY Savings • Improved Performance • Streamlined M&A Activity • DevOps in Practice Progress 14.2M Investment Focus 18 Months 311 Apps in Cloud & 14M YOY Savings General Electric Migration Case Key Benefits Overview
  31. 31. There are many more…
  32. 32. From business case to reality Kaplan Closes 8 Data Centers. By Migrating Data Centers, Wilmar Saves 50% in CAPEX. Delaware North Moves Data Center to Save $3.5M Over Five Years. Hess Uses AWS to Streamline Data Center Migration in 6 Months. News UK Shortens Time to Market by 6 Months by Migrating 60% of its Data Centers. ENEL has migrated 10,000 servers and 6 PBs of data to AWS in 9 months and saving up to 21% on compute and up to 60% on storage costs.
  33. 33. About those blockers…
  34. 34. Lack of Data A poorly understood Migration Pathway Lack of trusted support/partners A daunting investment amount Infrastructure comparison Application centric TCO Legacy Constraints Capacity Planning Benefits Cloud Operating Model Migration planning and schedule Workforce productivity Training and enablement Financial Benefits of Innovation Cost Avoidance Costs (Migration and Platform) Blockers to Mass Migration…Unblocked AWS Application Discovery Services Snowball Database Migration Service Server Migration Service Storage Gateway Snowmobile S3 Transfer AWS Partner Migration Competency Training and Center of Excellence Migration Acceleration Program Partner Migration Fund
  35. 35. and this list is always growing… Database Migration Service Snowball 2015 2016 Migration Acceleration Program Server Migration Service Application Discovery Service S3 Transfer Acceleration Snowmobile Partner Migration Competency ProServe Migration Capabilities 2017 Migration Partner Funding Cloud Economics Investment Case Support
  36. 36. What’s more…
  37. 37. …we’ve created a program that brings this all together MRA Migration Readiness Planning Migration to AWS Optimize 1 2 3 4 Migration Acceleration Program (MAP) A with and and and migration method AWS Tools Partner ProServe Funding Free Training Days Service Credits
  38. 38. …we’ve created a program that brings this all together MRA Migration Readiness Planning Migration to AWS Optimize 1 2 3 4 Migration Acceleration Program (MAP) High level TCO Analysis App-centric Business Case
  39. 39. Closing thoughts… Data Discovery is often the bottleneck – start now! Leverage skilled business case resources Test your economic hypothesis Remember platform build and change management investment are key to long term success Leverage AWS resources (Programs, Partners, Proserve) Talent will define your migration and longer term success (CoE, etc.)
  40. 40. “We start with what the customer needs and we work backwards.” – Jeff Bezos
  41. 41. Thank You!

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