Like any major transformation project, the migration to Cloud requires a compelling business case to justify the move. In this session, we: cover the fundamental commercial levers that AWS provides its customers; work through a framework to help identify the possible benefits of moving to cloud; and, outline the steps required to create a Cloud business case.

1. © 2019, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Sudith Devan – AWS ANZ Business Value Lead
Creating the cloud business case
for migrating to AWS
3rd July 2019

2. baseline

3. Customers move to AWS for multiple reasons…

4. Their experiences helped us create a value
framework
Cloud value framework
Cost savings (TCO)
Cost impact
Business agility
Business value impact
Staff productivity Operational resilience

5. The economics of cloud are real
Infrastructure cost $
Time
Large
capital
expenditure
Opportunity
cost
Predicted demand
Traditional hardware
Actual demand
AWS
Key:
Lost
opportunity

6. There are many factors that help customers
achieve cost savings on AWS
Pricing model choice
to support variable &
stable workloads
On-Demand
Reserved
Spot
1
Save more money
as you grow bigger
Tiered Pricing
Volume
Discounts
Programs
4
72 Price
Reductions
Economies of
scale allow AWS
to continually
lower costs
3
“51% lower cost
of operations”
Remove over
provisioning and pay
for what you need
2
Source: IDC Whitepaper, sponsored by Amazon, “Fostering Business and Organisational Transformation to
Generate Business Value with Amazon Web Services” February 2018

7. There are many factors that help customers
achieve cost savings on AWS
Source: IDC Whitepaper, sponsored by Amazon, “Fostering Business and Organisational Transformation to
Generate Business Value with Amazon Web Services” February 2018
Pricing model choice
to support variable &
stable workloads
Save more money
as you grow bigger
On-Demand
Reserved
Spot
Tiered pricing
Volume discounts
Programs
1 4
72 Price
Reductions
Economies of
scale allow AWS
to continually
lower costs
3
“51% lower cost
of operations”
Remove over
provisioning and pay
for what you need
2

8. Lever 1:
Pick the right
pricing model
What does that mean for you?

9. Lever 2:
“Right-size” your
resources
What does that mean for you?
Example

10. Lever 3:
Introduce elasticity
What does that mean for you?

11. How does that impact your business case?
100%
40-50% 30-40% 20-30%
Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and
Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3
year RIs)

12. How does that impact your business case?
100%
40-50% 30-40% 20-30%
Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and
Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3
year RIs)

13. 100%
40-50% 30-40% 20-30%
Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and
Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3
year RIs)
How does that impact your business case?

14. How does that impact your business case?
100%
40-50% 30-40% 20-30%
Lift and Shift
(All on-demand)
Lift and Shift
(3 year RIs)
Right-size and
Shift
(Right-sized and 3
year RI)
Cloud Optimized
(Right-sized,
elasticity and 3
year RIs)

15. Staff productivity
This value accelerates with AWS maturity
3.2x
Increase in # of TB
managed per
admin over time
3.3x
Increase in # of VMs
managed per admin
over time
TB managed over timeVMs managed over time
1–2 years on AWS 3+ years on AWS 1–2 years on AWS 3+ years on AWS
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
Customer benchmarking insights

16. Staff productivity example: server administrator
Server Budgeting &
Planning
Server purchasing
process
Long term capacity
planning
90% 75% 75%

17. Software changes
Server purchasing
process
Hardware repair in
occasion of failure
50% 75% 100%
Staff productivity example: server administrator

18. Staff productivity example: server administrator
Software changes Hardware purchasing
Hardware repair in
occasion of failure
50% 75% 100%

19. Software changes Hardware purchasing Hardware failure
50% 75% 100%
Staff productivity example: server administrator

20. Operational resilience
Customer benchmarking insights
Source: n = 500 AWS Customers. AWS Cloud Economics Benchmarking, August 2018.
# of total monthly incidents
43.4%
Reduction total
monthly incidents
Before AWS After AWS

21. Every minute of downtime has a
material impact
on your business

22. Operational resilience
Cost of downtime and security of incidents
Annual Fortune
1000 application
downtime costs
(IDC)
$1.25 to
$2.5B
Average cost of a
data breach
(Ponemon
Institute)
$3.6M
Cost/hr of a
critical
application
failure (IDC)
$500K
to $1M
Average cost/hr
of downtime
(Ponemon
Institute)
$474K
Average cost per
lost or stolen
record (Ponemon
Institute)
$141

23. Business agility
With AWS, you can
innovate faster while
reducing failure costs

24. Business agility
AWS benefits
Traditional software delivery lifecycle and
average % of time spent at each step *
* Meta Group / Gartner research
Simplify requirement design
Increase the speed
Eliminate deployment “wait time”
15%Design
23%Build
17%Integration & Test
22%Requirements & Analysis
12%Deploy
11%Maintain Reduce maintenance cost

25. Organisations have achieved
real and tangible outcomes with AWS
across all these pillars

26. Case study

27. Case study: Globe Telecom
Scale of usage
2,600+ 7.5+ PB

28. Case study: Globe Telecom
Benefits Realised
30%
TCO savings
15x
increase in
app
performance
99.99%
uptime
3 months to
2 days
reduction in
provisioning
times

29. How can AWS help you build a
business case?

30. Analysis approach
First call Data gathering
Executive
presentation
Analysis
Refinement

31. Getting started

32. TSO Logic quickly delivers an optimised business case for
AWS
It enables business and IT leaders to:
Determine the most cost-effective path to cloud
Maximise Microsoft licenses for even bigger savings

33. Resources to get you started
AWS TCO Calculator
https://awstcocalculator.com
AWS Economics Center
aws.amazon.com/economics/
Case Studies and Research
aws.amazon.com/solutions/case-studies
Value Realisation Studies
Available now

34. Key learnings
• The AWS business case is your baseline
• Cloud is a commercial transition: move from “pay for
what you have” to “pay for what you need”
• There’s more to the business case than cost savings