AMAZON WEB SERVICES , Senior Vice President ’S THREE BUSINESSES

Consumer (Retail) Seller Developers & Business Business IT Professionals

Tens of millions of Sell on Amazon On-demand active customer websites infrastructure for accounts hosting web-scale Use Amazon solutions Seven countries: US, technology for your UK, Germany, Japan, own retail website Hundreds of France, Canada, thousands of Leverage Amazon’s China registered customers massive fulfillment center network HOW DID AMAZON GET INTO THIS BUSINESS? HOW DID AMAZON GET INTO THIS BUSINESS?

• We’d been working on this for over a decade (just didn’t realize it :-)

• Development of a platform to enable sellers on the Amazon global infrastructure

• Internal need for centralized, scalable deployment environment for applications

• Early forays into web services proved developers were hungry for more LED TO OUR PURSUING A MUCH BROADER MISSION

Enable businesses and developers to use web services (what people now call “the Cloud”) to build scalable, sophisticated applications WHAT SHOULD WE BUILD? THE CLOUD’S BUILDING BLOCKS

Your Custom Applications and Services

Isolated Networks Monitoring Management Tools Amazon Virtual Private Amazon CloudWatch AWS Management Console AWS Toolkit for Eclipse Cloud

Parallel Content Messaging Payments On-Demand Amazon Simple Queue Service Amazon Processing Delivery (SQS) Flexible Workforce Amazon Elastic Amazon Amazon Simple Notification Payments Amazon MapReduce CloudFront Service (SNS) Service (FPS) Mechanical Turk Compute Storage Amazon Elastic Compute Amazon Simple Storage Amazon SimpleDB Cloud (EC2) Service (S3) Amazon Relational Database -Elastic Load Balancing -AWS Import/Export -Auto Scaling Service (RDS) DIVERSE USE CASES

• Web site hosting • Application hosting • Content delivery and media distribution • High performance computing, batch data processing, and large scale analytics • Storage, backup, and disaster recovery • Quick and effective marketing campaigns • Development and test environments AWS GLOBAL REACH

AWS Regions US East (Northern Virginia) US West (Northern California) Europe (Dublin) New! Asia Pacific (Singapore)

AWS CloudFront Locations Ashburn, VA / Dallas, TX / Los Angeles, CA / Miami, FL / Newark, NJ / Palo Alto, CA / , WA / St. Louis, MO / Amsterdam / Dublin / Frankfurt / London / Hong Kong / Tokyo / Singapore ATTRIBUTES OF

A true cloud has the following characteristics:

– No Capex

– Pay as you go and Pay only for what you use

– True Elastic Capacity; Scale Up and Down

– Fast time to market

– You get to focus your engineering resources on what differentiates you-- no longer have to manage the undifferentiated heavy lifting of Infrastructure VIDEO APPLICATION AND AMAZON EC2

Amazon EC2 easily scaled to handle additional traffic. (Peak of 5,000 instances)

of EC2 EC2 of Instances Launch of Facebook

modification Number

4/12/2008 4/13/2008 4/14/2008 4/15/2008 4/16/2008 4/17/2008 4/18/2008 4/19/2008 4/20/2008 FINANCIAL SERVICES & AMAZON EC2

3,000 CPU’s for single job 3000--

300 CPU’s on weekends

300 -- Number of EC2 Instances Number EC2 of

Wednesday Thursday Friday Saturday Sunday Monday Tuesday 4/22/2009 4/23/2009 4/24/2009 4/25/2009 4/26/2009 4/27/2009 4/28/2009 WHY DOES THIS MATTER?

– New businesses using the Cloud have an advantage over traditional enterprises who haven’t adjusted

– Enterprises are now beginning to take advantage of the cloud DIVERSE CUSTOMER ROSTER GROWING PARTNER ECOSYSTEM AWS USAGE GRAPH

2007: AWS bandwidth usage surpassed Amazon.com global websites

Today: AWS bandwidth usage is 30% greater than all Amazon.com global websites

2001 2002 2003 2004 2005 2006 2007 2008 Bandwidth Usage: AWS Amazon.com STORAGE IN THE CLOUD (AMAZON S3)

Peak Requests: 124 Billion 102 Billion

40 Billion

14 Billion 2 Billion

Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q1 2010

Total Number of Objects Stored in AWS ROADMAP

• New services coming

• Lots of customer-requested features for existing services

• More geographies

• Make it easier to build applications on AWS

• Additional security certifications

• Additional billing and user management features NOISE FACTOR #1: THE CLOUD IS HOT…EVERYTHING IS NOW…A CLOUD! LET’S GET CLEAR ABOUT WHAT THE CLOUD IS

Gartner defines cloud computing as “a style of computing in which scalable and elastic IT-enabled capabilities are delivered to external customers using technologies.” NOISE FACTOR #2: THE CLOUD’S NO BIG DEAL, IT’S VERY SCARY, PLAY IT SAFE, STICK WITH OLD FRIENDS, ETC… MYTH #1: THE CLOUD ISN’T RELIABLE

Reality: - All Generally Available services have SLAs - AWS services (e.g. S3, EC2) have availability SLAs up to 99.95% - In 2009, didn’t pay out once on these SLAs

- Cloud providers look at thousands of metrics at the 99.9% outlier points

- Many companies achieve better performance in cloud than in their own data centers MYTH #2: I’LL LOSE CONTROL OF MY DATA IN CLOUD

Reality: - You own and manage your own data

- You can encrypt your data in motion or at rest

- You can control where the data is stored

- You can get your data out whenever you want - Import/Export functionality MYTH #3: I’LL LOSE MY DATA ALTOGETHER IN CLOUD

Reality: - Each object in Amazon S3 is replicated multiple times and distributed across multiple datacenter locations - By comparison, many companies keep a single copy or back-up by tape

- Cloud services are designed to sustain the concurrent loss of data in two facilities

- Amazon S3 is designed for 99.999999999% durability - Equates to losing one out of a million objects every 100,000 years MYTH #4: THE CLOUD IS NOT SECURE

Reality: - Security is number one priority for Cloud - Cloud uses the same security measures used for the last 30 years - Physical datacenter security, Network, Hardware - Cloud is independently audited - SAS-70 Type II, ISO 27001, etc - Cloud often improves enterprise security posture - Those who’ve really investigated cloud security come away impressed MYTH #5: WE CAN RUN INFRASTRUCTURE AS COST- EFFECTIVELY AS AN EXTERNAL CLOUD

Reality: - Companies often struggle to accurately measure the cost of infrastructure

- Scale advantage for big cloud providers

- Utilization advantage for big cloud providers MYTH #6: COST IS THE ONLY CLOUD ADVANTAGE

Reality: Cost is a big adoption driver, but:

- Time to market for ideas is *much* faster in the cloud - Minutes to spin up servers vs. months - Innovate and fail faster, encourage experimentation - Go from concept to production within weeks vs. months

- Let’s you focus your scarce engineering resource on what differentiates your business THE DIRTY LITTLE SECRET

30% 70%

On-Premise Your Managing All of the Infrastructure Business “Undifferentiated Heavy Lifting” CLOUD COMPUTING FLIPS THE EQUATION

30% 70%

On-Premise Your Managing All of the Infrastructure Business “Heavy Lifting”

Configuring Cloud-Based More Time to Focus on Your Cloud Infrastructure Your Business Assets

70% 30% SOME QUICK LAST THOUGHTS KEYS IN CHOOSING A CLOUD

– Experience Operating These Services 24/7/365

– Flexibility and Customer Choice

– Speed of Innovation and Execution

– Cost

– Long-term view of the world WHERE COMPUTING IS HEADING [email protected] THANK YOU!