breaking down the economics and tco of migrating to aws - toronto
TRANSCRIPT
![Page 1: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/1.jpg)
© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
Shahbaz AlamAWS Professional Services
September 28, 2016
Breaking Down the Economics and
TCO of Migrating to AWS
![Page 2: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/2.jpg)
What to expect….
• Understanding the components of a TCO model
• Defining the “Migration Bubble”
• Overview of the AWS Migration Methodology
• Application disposition options
• Migration level of effort
• Sample migration cost model
![Page 3: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/3.jpg)
Disruption is much easier today than ever…
Hotels Trading Insurance Grocery delivery
DevicesMusicEvent TicketsTaxi
![Page 4: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/4.jpg)
Responding requires a new model that enables…
Focusing on differentiating your company
Innovating at start-up like speed
Reducing risk
![Page 5: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/5.jpg)
To do that, we must harness the power of…
![Page 6: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/6.jpg)
Source: IDC, Quantifying the Business Value of Amazon Web Services (May, 2015)
Analysts have shown AWS reduces costs over
the long term
https://aws.amazon.com/resources/analyst-reports/IDC-business-
value-aws/
![Page 7: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/7.jpg)
Customers want to make their datacenters
work with the cloud
???
![Page 8: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/8.jpg)
Whiteboard engineering
Amazon EBS
Amazon RDS Amazon
ElastiCache
Amazon
Redshift
Amazon EC2 Elastic Load
Balancing
![Page 9: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/9.jpg)
Building the Business Case…
![Page 10: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/10.jpg)
Start by understanding your on-premises costs
It is important to accurately
understand your current costs
in order to know how to build
your migration model for
optimal cost efficiency
![Page 11: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/11.jpg)
In the beginning . . .
…there was TCO
![Page 12: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/12.jpg)
Total Cost of Ownership (TCO)
Definition: Comparative total cost of ownership analysis (acquisition
and operating costs) for running an infrastructure environment end-to-end
on-premises vs. on AWS.
Used for:
1) Comparing the costs of running an entire infrastructure environment or
specific workload on-premises or in a co-location facility vs. on AWS
2) Budgeting and building the business case for moving to AWS
![Page 13: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/13.jpg)
Comparing TCO is not easy…
≠
![Page 14: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/14.jpg)
TCO = Acquisition costs + Operations costs
Hardware—server, rack
chassis PDUs, Tor switches
(+maintenance)
Software—OS,
virtualization licenses
(+maintenance)
Facilities cost
Hardware—storage disks,
SAN/FC switchesStorage admin costs
Network hardware—LAN
switches, load balancer
bandwidth costsNetwork admin costs
Server admin virtualization admin4
The diagram doesn’t include every cost item. For example, software costs can include database, management, and middle-tier
software costs. Facilities cost can include costs associated with upgrades, maintenance, building security, taxes, and so on. IT
labor costs can include security admin and application admin costs.
Space Power Cooling
Facilities cost
Space Power Cooling
Facilities cost
Space Power Cooling
Server costs
Storage costs
Network costs
IT labor costs
1
2
3
illustrative
![Page 15: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/15.jpg)
Questions to explore your existing footprint…
Operations
Utilization
Capacity
Planning
Optimization
• How do you plan for capacity?
• How many servers have you added in the past year? Anticipating next year?
• Can you switch your hardware on and off and only pay for what is used?
• What is your average server utilization?
• How much do you overprovision for peak load?
• Will you run out of data center space some time in the future?
• What was your last year power utility bill for the Data Center(s)?
• Have you budgeted for both average and peak power requirements?
• Are you on AWS today?
• Is your architecture cost-optimized (Auto Scaling, RIs, Spot, Instances turn on/off)?
1
2
3
4
![Page 16: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/16.jpg)
And, make sure to…
Power/Cooling (compute, storage, shared network)
Data Center Administration (procurement, design, build, operate, network, security
personnel)
Rent/Real Estate (building deprecation, taxes)
Software (OS, virtualization licensing & maintenance)
RAW vs. USABLE storage capacity
Storage Redundancy (RAID penalty, OS penalty)
Storage Backup costs (tape, backup software)
Bandwidth, Network Gear & Redundancy (routers, VPN, WAN, etc.)
Consider
Understand Procurement Time, Resource sitting on self
Cost of Lost Customers
RTO, RPO
![Page 17: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/17.jpg)
Resources to get you started
AWS TCO Calculator
https://awstcocalculator.com
Case studies and research
http://aws.amazon.com/economics/
![Page 18: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/18.jpg)
Understanding Your Migration
Costs…
![Page 19: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/19.jpg)
AWS Migration Cost Considerations
AWS Costs
• Compute
• Storage
• Networking
• Databases
3rd Party Costs
• Migration tools
• Storage vendors
• OS / application
Licensing
Labor
• Employees (FTE)
• Consultants
• Refactoring effort
• OS upgrade
• Database to
Amazon RDS
• Tools
Change Management
• Governance
• Operating model
• Training
• Processes /
Service mgmt.
![Page 20: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/20.jpg)
Understand you have application challenges
Lack of accurate discovery tooling and processes
Lack of application context / information
Limited CMDB or similar data source available
Inaccurate data center costs
Lack of detail and scope with respect to operating model, governance / risk / compliance, security, software licensing, and related areas.
Indicators of potential operational practice maturity gaps within examined data sets
Increased
Cost
![Page 21: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/21.jpg)
The Migration Bubble – Components
Planning and assessment Migration tools Consulting partners
Internal training Duplicate environments Lease penalties
![Page 22: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/22.jpg)
The Migration BubbleC
ost
Time
Planning
Migration Bubble
Operation and
optimization
• Planning and assessment
• Duplicate environments
• Staff training
• Migration consulting
• 3rd party tooling
• Lease penalties
![Page 23: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/23.jpg)
Application Migration Methodology
Strategy
• Assessment and Profiling
• Prioritization
• Data requirements and classification
• Business logic and Infrastructure dependencies
Design
• Detailed migration plan and effort
• Network topology
• Core infra services
• Security and risk assessment
• Prep on-preminfrastructure
Migrate
• Migrate
• Deploy
• Infrastructure integration
• Application integration
Transition
• Functional Validation
• Pilot testing
• Transition to support
• Release management
• Cutover and Decommission
Operations
• Staff Training
• Monitoring
• Incident management
• Provisioning
Improvement
• Monitoring-driven optimization
• Continuous Integration and Continuous Deployment
Plan RunMigrate
Application Migration AssessmentRe-hosting / Re-deploying
(Lift and Shift)
Re-architecting / Re-factoring
(Rewrite and decouple)
Application Optimization
![Page 24: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/24.jpg)
Application Disposition – All Options
Discover,
Assess (Enterprise
Architecture and
Applications)
Lift and Shift
(Minimal
Change)
Migration and
UAT Testing Operate
Refactor
for AWS
Application
Lift and Shift
Move the App
Infrastructure
Plan Migration
and Sequencing
Determine
Migration Path
Decommission
Do Not Move
Design, Build AWS
Environment
Move the
Application
Determine
Migration
ProcessManually Move
App and Data
3rd Party Tools
AWS VM ImportRefactor
for AWS
Rebuild Application
Architecture
Vendor
S/PaaS
(if available)
3rd Party Migration Tool
Manually Move App and Data
Determine
Migration Process
Replatform
(typically legacy
applications)
Recode App
Components
Rearchitect
Application
Recode
Application
Architect AWS Environment
and Deploy App, Migrate Data
Signoff
Tuning Cutover
Org/Ops
Impact
Analysis
Identify
Ops Changes
Change
Management
Plan
![Page 25: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/25.jpg)
Application Disposition – All Options
Discover,
Assess (Enterprise
Architecture and
Applications)
Lift and Shift
(Minimal
Change)
Migration and
UAT Testing Operate
Refactor
for AWS
Application
Lift and Shift
Move the App
Infrastructure
Plan Migration
and Sequencing
Determine
Migration Path
Decommission
Do Not Move
Design, Build AWS
Environment
Move the
Application
Determine
Migration
ProcessManually Move
App and Data
3rd Party Tools
AWS VM ImportRefactor
for AWS
Rebuild Application
Architecture
Vendor
S/PaaS
(if available)
3rd Party Migration Tool
Manually Move App and Data
Determine
Migration Process
Replatform
(typically legacy
applications)
Recode App
Components
Rearchitect
Application
Recode
Application
Architect AWS Environment
and Deploy App, Migrate Data
Signoff
Tuning Cutover
Org/Ops
Impact
Analysis
Identify
Ops Changes
Change
Management
Plan
![Page 26: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/26.jpg)
Categorize Apps and Reduce Variables
Cloud Native
Just Do It!
(e.g. static website,
standalone server)
Business Risk
SaaS or IaaS
(e.g. email, CRM)
Technical Risk
Custom Business
Applications
(e.g. ERP, Financials)
Unfit for Cloud
Legacy App Zone
(kill or replace services)
Busin
ess F
it
Technical Fit / Effort
Key Migration Desc.
Instant / Quick Win
Roadmap Prioritization
Minimal Investment
Do Not Move
![Page 27: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/27.jpg)
Application (Infrastructure) Migration Use Cases
• Non-production environment
• Non-critical workloads
• Sustain downtime / outageVM Conversion
• Production environment
• Non-critical workloads
• Sustain downtimeHost Cloning
• In place upgrade
• Sustain limited downtime
• Multi-tenant application environment to single tenantApp Containerization
• Production environment
• Critical workloads
• Low RTO and RPO (little to no downtime)Live Migration
• Database
• Data Warehouse
• Unstructured data objectsData Migration
![Page 28: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/28.jpg)
AWS PS Application Migration Level of Effort
Very Low
Basic workload
Current/supported OS on AWS
No database
Few dependencies
Scheduled outage is OK
Low
Basic workload
No database
May require re-platforming (i.e. OS)
Scheduled outage is OK
Medium
Contains multiple components
No database
May require re-platforming (i.e. OS change / upgrade)
Outage with advance planning
Business impact possible for production servers
High
Multiple components including database
System may include greater than five disks
Limited downtime permitted
Production servers likely to impact business if unavailable for an extended period of time
Very High
Multiple components including database
Complex system configuration (e.g. numerous disks)
Contains several dependencies
Limited to No acceptable downtime
Requires advanced detailed assessment and planning
High-touch migration
2 – 4 hours 4 – 6 hours 6 – 8 hours 10 – 14 hours 20 – 24 hours
VM Conversion
Host Cloning
VM Conversion
Host Cloning
Live Migration
App
Containerization
Live Migration
App
Containerization
Mig
rati
on
Me
tho
d
Live Migration
App
Containerization
![Page 29: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/29.jpg)
Speed and Process Decisions Change Migration
Costs
The cost of migration has
many levers that can be pulled
in order to speed up or slow
down the process. Each of
these has a corresponding
cost associated with it.
![Page 30: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/30.jpg)
Let’s do a Sample Total Cost of
Migration (TCM) Exercise…
![Page 31: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/31.jpg)
Total migration effort across 469 hosts
Sample Migration Effort Model
Cost model is based on a
enterprise migration of 469
workloads of varying complexities.
Mean migration effort across
hosts: 5.66 hours per host88
205
55
109
120
50
100
150
200
250
Very Low Low Medium High Very High
2 4 6 10 20
![Page 32: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/32.jpg)
$1202 per server (average)
$153
$849
$200
2656 hours @$150/hr avg
250 hours @$287.50 avg
Total cost of migration = $563,738
Average Cost To Migrate Each Server
![Page 33: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/33.jpg)
Determining the Migration Bubble Payback Period
(i.e., Break-even)
On-prem (3 yr) AWS (3 yr)
Compute $1,720,061 $698,858
Storage $774,800 $245,353
Network $367,659 $37,104
IT Labor $675,360 $550,240
AWS Support $0 $98,131
![Page 34: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/34.jpg)
Determining the Migration Bubble Payback Period
(i.e., Break-even)
On-prem (3 yr) AWS (3 yr)
Compute $1,720,061 $698,858
Storage $774,800 $245,353
Network $367,659 $37,104
IT Labor $675,360 $550,240
AWS Support $0 $98,131
Total $3,537,880 $1,629,686
$636,064 yearly savings
One-time migration cost: $563,738 Break-even: 10.6 months
![Page 35: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/35.jpg)
Putting It All Together
![Page 36: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/36.jpg)
Key Takeaways From The Session…
Understand the components of your migration bubble and
their corresponding costs
Determine the best “migration path” for each workload to
optimize cost in the migration process
Use AWS, APN partners and tooling
Go FAST!
![Page 37: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/37.jpg)
Just Remember…We Are Here To Help
Enterprise Support AWS PartnersProfessional ServicesSales and
Solutions Architects
![Page 38: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/38.jpg)
Remember to complete
your evaluations!
![Page 39: Breaking down the economics and tco of migrating to aws - Toronto](https://reader031.vdocuments.mx/reader031/viewer/2022030315/587dc1491a28ab1b498b613f/html5/thumbnails/39.jpg)
Thank You!