Cloud powered agile entreprise

Dr. Werner Vogel, Amazon CTO

Agility

Some companies didn’t exist 4 years ago (like Dropbox, Spotify, AirBnB) and are now massive, thanks to AWS. They had a very fast growth. For instance, AirBnB now run under 1000 EC2 instances, 50 TB of data, all on AWS. They only have 5 peoplen operations. Everything is dedicated to deliver value to their customers, build better products.

Today, everyone has access to the AWS infrastructuce : the world geos flat. It’s not the IT resources thast make success, but the product you build.

With AWS, we remove waste (lean), everything that doesn’t deliver value to the customer:

  • without AWS: 70% is spend in infrastucture, 30% in building product
  • with AWS: 30% is spend in infrastucture, 70% in building product

Big IT projects never succeed:

  • inaccurate resources estimates
  • changing requirements (which is good)
  • unmanaged risk
  • increase of complexity

Agility has become very important

  • increasing of complexity
  • growing abundance
  • increase of competition
  • growing power of customers
  • decrease of brand loyalty
  • limited access to capital

AWS addresses uncertainity:

  • resources on demand
  • pay what you use
  • leverage others core competencies (ie. Amazon system skills)
  • fix cost becomes variable cost

Innovation principles at Amazon

  • custumer oriented, customer centric
  • long term decisions VS “wall steet market” short term
  • experiment and learn (and measure)

They are working *from the customer backwards”. For every new product:

  • press release: “what will be delivered”
  • FAQ
  • User interraction
  • User documentation
  • Developers documentation

To inscrease innovation, you dave to decrease the cost of failure (by decreasing the cost of experimentation).

Iterate fast using customers feedback. In 2014, AWS launched more than 80 new servicies. 56 releases where made for Redshift since february 2013 (date of launch). Launch a product with little features and let customers define the product by adding the features they ask for.

Small “2 pizzas teams” with the goal to deliver functionality to customers.

Costs

Reduced costs is the main reason customers come to AWS. More customers means costs cuts (thanks to economies of scale) and costs cuts means now customers (vertuous circle). It also means new features.

Since 2006 (AWS launch), we had 43 price reductions !

The tool AWS trusted Advisor helps customers with their costs, risks and performance by auditing their AWS intfrastructure.

70% of CAC40 enterprises now use AWS.

AWS = 5x the compute capacity of all its competitors.

Benefits of Cloud

  • Capital becomes Opex
  • lower operational costs
  • don’t need to guess capacity
  • better speed/agility (cost of failure is alsmost 0)
  • don’t spend money in dealing with servers, HD, datacenters…
  • go global in minutes

Private clouds has none of the benefits of AWS.

Cloud is good for many configurations:

  • dev/tests
  • analytics, heavy workload
  • all production
  • part of production

The cloud is not “all or nothing”. You can also use your own premices to get the best of both worlds.

AWS gives a range of very fined grained Access Control tools to every single data in the cloud. It also provides encryption services in every services, like S3, Redshift…

Some customers feedback

  • Dassault, Florence Hu
  • Aldebaran Robotics, Julien Simon
  • Alcatel Lucent, Erwan Baynourd