1. Innovation,
Cloud Powered
Dr. Werner Vogels
CTO, Amazon.com

3. Hotels Music Storage
Photos Magazines

5. 150,000
people are hosted
on any given night

6. Total # AirBnB Guests

7. Up by over 5 million since
the beginning of the year
Total # AirBnB Guests

8. 0"
200"
400"
600"
800"
1000"
2010" 2011" 2012" 2013"
24 48
432
1,000
Total # EC2 Instances

9. 0"
5"
10"
15"
20"
25"
30"
35"
40"
45"
50"
284GB
4TB
23TB
50TB
Total Photos Stored in Amazon S3

10. Why AWS?

11. “We have a 5-people
operations team
AWS allows us to devote our resources
and mindshare to the core business.”

13. Remove Waste
Your
Business
70%
On-Premise
Infrastructure
30%
Managing All of the
“Undifferentiated Heavy Lifting”
Waste is anything that does not lead to
direct value for the customer

14. AWS
Cloud-Based
Infrastructure
Your
Business
More Time to Focus on
Your Business
Configuring
Your Cloud
Assets
70%
30%70%
On-Premise
Infrastructure
30%
Managing All of the
“Undifferentiated Heavy Lifting”
Remove Waste with Cloud

15. STOP
WASTING
TIME

16. 2014: 80 new features and services since January
2008 2009 2010 2011
Amazon EBS
Amazon EC2
Amazon SNS
AWS Identity
& Access
Management
AWS Import
& Export
Amazon
CloudWatch
Amazon EMR
Amazon RDS
Amazon VPC
Auto Scaling
Elastic Load
Balancing
Amazon
ElastiCache
Amazon SES
AWS
CloudFormation
AWS Direct
Connect
AWS Elastic
Beanstalk
GovCloud
Amazon SWF
Amazon Route 53
Amazon Redshift
Amazon Glacier
Amazon
Dynamo DB
Amazon
CloudSearch
Amazon EC2
AWS Storage
Gateway
Amazon
CloudTrail
Amazon
CloudHSM
Amazon
WorkSpaces
Amazon Kinesis
Amazon Elastic
Transcoder
Amazon
AppStream
AWS OpsWorks
AWS Data
Pipeline
20132012
A Rapid Pace of Innovation

17. 56 releases
since Feb 2013
Regional expansion to US West (Oregon)
Support for temporary credentials when loading data from Amazon S3
Regional expansion to EU West (Dublin)
SOC1/2/3 Compliance certification
Ability to UNLOAD encrypted files in parallel to Amazon S3
Regional expansion to Asia Pacific (Tokyo)
Support for JDBC fetch size to enable extraction of large data sets over JDBC/ODBC
Enable logging of UNLOAD statements
New built-in function to compute the SHA1 hash of a value
Added support for UTF-8 characters up to 4 bytes in size
Ability to share snapshots between accounts to simplify manageability.
Support for statement timeouts to automatically terminate queries that exceeded allotted execution time
Added support for timezone conversion in SQL
Added support for datetime values expressed in milliseconds since EPOCH to simplify ingestion
Simplified ingestion by automatically detecting date and time formats.
Added support for automatic query timeouts to workload management queues.
Enabled the use of wildcards when assigning queries to workload management queues.
New built-in function to enable customers to calculate the CRC32 checksum of a value
Console improvements to show progress bars for backup and restore operations.
Added the ability to support IAM at the resource level allowing tight control of who can take what actions on which
resources.
Obtained PCI compliance
Added the ability to substitute a customer chosen character for invalid UTF-8 characters to simplify ingestion
Allowed customers to store JSON data in VARCHAR columns and added built-in functions to enable data extraction
Added support for POSIX regex expressions when using SIMILAR to in SQL queries
Added Cursor support to enable extraction of large data sets over ODBC connections
Built-in function to enable splitting a string using a supplied delimiter to make parsing values easier
Added system tables to enable logging of database activity for auditing
Regional expansion to Asia Pacific (Singapore, Sydney)
Enable customers to control cluster encryption keys by using an on premises hardware security module (HSM) or Amazon
CloudHSM
Enable customers to receive alerts via SNS for informational or error-related events for cluster monitoring, management,
configuration and security.
Integration with Canal to enable streaming data ingestion
Copy from an arbitrary SSH connection enabling direct copy from Amazon EMR, HDFS, or any other database that
supports SSH access and script execution
Enable distributing tables to all compute nodes to speed up queries, especially those involving star or snowflake schemas
Logging of database logins, failed logins, SQL execution and data loads to S3 and integration with CloudTrails for control
plane events
Enabled caching of database blocks to speed up access to frequently queried data
Increase cluster concurrency limits from 15 to 50 to enable higher concurrent query execution
Optimizations to resize code that lead to 2-4x improvement in resize performance
Approximate COUNT DISTINCT using HyperLogLog giving 10-20x performance improvements with less than 1% error
Enable customers to continuously, automatically and incrementally back up data to a second AWS region for DR
On track to obtain Fedramp certification
Deliver Redshift on SSD instances enabling a lower-cost, high performance entry point
IAM
Redshift
Elastic Map
Reduce
Data Pipeline
Route 53CloudFront
CloudFormation
Elastic Load
BalancerEC2
S3
EBS
DynamoDB
AppStream
Kinesis
Rapid delivery and interation based on
customer feedback

18. Small, autonomous teams
Roadmap ownership
Decoupled launch schedules
Get Core Functionality in the
Hands of Customers, Quickly
Small, “Two Pizza” Teams
Operational stability
High scale
Limited initial feature set
Iterate Based on Customer Feedback

19. Amazon
DynamoDB
Amazon
Redshift
Amazon
Glacier

20. No hardware or virtualization software
Access through any tablet device
Monthly pricing—no long-term commitments
Pre-installed software or bring your own licenses
Easy integration with MS Active Directory
Amazon WorkSpaces

21. 42 Price
Reductions
Since 2006
The AWS Price Reduction Philosophy
Ecosystem
Global Footprint
New Features
New Services
Infrastructure
Innovation
More AWS
Usage
More
InfrastructureEconomies
of Scale
Lower
Infrastructure
Costs
Reduced
Prices
More
Customers

22. Trade CapEx for
Variable Expense
1
Economies of Scale
Provide Lower Costs
than Companies can
do on their Own
2
Pricing Model
Choice to Support
Variable & Stable
Workloads
On-demand
Reserved
Spot
3
Save More
Money as You
Grow Bigger
Tiered pricing
Volume discounts
Custom Pricing
4
Cost Savings and Flexibility

23. “The move could save the Navy
as much as 60% versus the cost
of hosting of managing data data
in its own data centers”
“We've halved storage costs.
We're looking forward to saving
hundreds of millions of dollars”
“Without AWS we would have
needed to raise $7.1M to launch
instead of $1.8M”
“Migrating data centers to AWS
contributes to a global savings of
$100 million in infrastructure costs”

24. Customer Infrastructure Audits
Saves money
Improves availability
Closes security gaps
Increases performance
Recent Performance
1,000,000 recommendations
$207M in annualized savings
AWS Trusted Advisor

25. Infrastructure as a Service Magic Quadrant
2013
“AWS is the overwhelming market
share leader, with more than five
times the compute capacity in
use than the aggregate total of
the other fourteen providers.”

26. Forces Driving New Resource Models!
Increasing Uncertainty!
Growing Abundance!
Intensifying Competition!
Growing Power of Customers!
Decreasing Brand Loyalty!
Limited access to Capital!

27. UNCERTAINTY!

28. Addressing Uncertainty!
Acquire resources on demand!
Release resources when no longer needed!
Pay for what you use!
Leverage other’s core competencies!
Turn fixed cost into variable!
!

29. STARTUP!
An organization designed to deliver a
new product or service under
conditions of extreme uncertainty!

30. ENTERPRISE!
An organization designed to
deliver new products or services
under conditions of extreme
uncertainty!

31. If you want to increase
Innovation,
you have to lower the
cost of failure
Joi Ito
Director MIT Media Lab

33. REDUCE THE COST OF
EXPERIMENTATION

34. Telegraph Media Group

38. Eliminate
Capital
Lower
Operational
Costs
Stop
Guessing
Capacity
Agility
Speed
Innovation
Avoid
Undifferentiated
Heavy Lifting
Go Global in
Minutes
✔ ✔ ✔ ✔ ✔ ✔
The Benefits of Cloud Computing!

39. Eliminate
Lower
Operational
Costs
Stop
Guessing
Capacity
Agility
Speed
Innovation
Avoid
Undifferentiated
Heavy Lifting
Go Global in
Minutes
✔ ✔ ✔ ✔ ✔ ✔
“Private”
Cloud X X X X X X
The Benefits of Cloud Computing!

40. Every industry.
TRANSFORMED

41. Financial Services
TRANSFORMED

42. Stringent regulatory, compliance
and security requirements.

46. Media & Advertising
TRANSFORMED

47. 1950 1960 1970 1980 1990 2000 2010
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Print Only
Including Online
Millions of 2012 Dollars
Newspaper Advertising Revenue
Adjusted for Inflation, 1950 to 2012
Source: Newspaper Association of America
Carpe Diem Blog

51. Health Care & Biotechnology
TRANSFORMED

55. How are enterprises thinking about
and using the cloud in 2014?

56. 70% reduction in
operational costs
#1: Development and Testing
Do more dev and
test work, faster
Sharepoint and SAP SAP
Reduced dev and test
environment costs
Oracle

57. #2: New Workloads
Product prototyping
& design
Audience
management &
creative design
Hotel booking
engine
Biological
data research
Global deals
engine
Video streaming
SIM card credit News distribution
App streaming Firmware
upgrades
Mobile
games
Mobile music
discovery

58. #3: Supplement Existing Workloads with the Cloud
Export operational data to
Amazon Redshift for analysis
2X faster queries at 1/2 the cost
Analytics
Disaster recovery SSAE 16-
compliant to restore all data
within 2 hours
Equipment leasing
app
Operational
applications
Export data to AWS for
analytics processing

59. #4: Supplement Workloads with Existing
On-premises Infrastructure
AWS serves up application
content & data
Integration back to Samsung
Data Centers for financial
transactions
Existing systems

60. #5: Migrating Existing Applications
Migrated 500 web
properties in 5 months
1,700 web properties
New product websites
in 2 days vs. 2 weeks
Migrated clinical trials
simulations platform
Simulations in 1.2hrs vs. 60hrs
64% reduction in costs

61. #6: Data Center Migration
From 40 data
centers, down to 6
9X increase in
AWS usage
APIs help govern
usageand control cost
Enabling global
collaboration
3,000 applications
by January 2015

62. #7: All-in — IT Entirely in the Cloud
“We have to be great at a
number of things…
operating data centers is
not one of those things”
“We are a hospitality
management organization,
not an IT services company”
2000 applications
migrating to AWS
in 18 months

63. Companies Worry that These are the Only Two Choices
Build a
“private” cloud Rip and replace
with AWS
#1 #2
#1 #2

64. On-Premises
Resources
Cloud
Resources
Integration
The Cloud Isn’t An ‘All Or Nothing’ Choice
Corporate
Data Centers

65. Active Directory
Network Configuration
Encryption
Back-up Appliances
Users & Access Rules
Your Private Network
HSM Appliance
Cloud back-ups
AWS Direct Connect
Your On-Premise
Apps
Your Cloud
Apps
AWS Support For Hybrid IT Architectures
AWS Storage Gateway
Amazon Virtual Private Cloud
AWS Identity & Access Mgmt
AWS Cloud HSM
Corporate
Data Centers

66. Integration with On-Premises Resources
Integrated
networking
Integrated access
control
Integrated cloud
backups
Single pane
of glass

67. AWS is the place to be to
protect your information
from unauthorized access

68. Private Resources to Maintain Control
Private compute Private storagePrivate network
Private key
management
Governance
Software-defined
private network
Fine-grained access
roles and groups
Encrypted Object
Storage
Private encryption
key management
Geographic data
locality
Dedicated private
network connection
Software-defined
network isolation
Encrypted Block
Storage
Fine-grained access
control
Dedicated instances Single Tenant Block
Storage
In-depth audits

69. 4 cloud-driven Innovation
trends for 2014

70. The Cloud will enable
your content to follow
you where ever you go

71. Cloud-based analytics
enhances the off-line world

76. Dropcam is the biggest inbound
video service on the Web
• More data uploaded per
minute than YouTube
• Petabytes of data
processed every month
• Billions of motion events
detected

77. The Cloud allows everyone to
become a Media company

81. Faster and faster, the
Cloud moves data
processing to Real-time

82. What was happening
yesterday?

83. What right now?
trades are executing
is the exception rate
is the ad click-through
topics are trending
inventory remains
queries are slow
are the high scores

84. Sometimes the most
powerful innovation
focuses on the
Things Never Change

85. werner@amazon.com