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AWS TCO & Cloud Economics (:star: 2. Target Customers (Optimization…
AWS TCO & Cloud Economics
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1. What is TCO?
TCO is the initial price plus operating costs
How Customers lower TCO with AWS
Replace up-front capital expenses with lower variable cost
Utilize economies of scale to continually lower cost
Pricing model choice to support variable and stable workloads
Delivers great savings as they grow
AWS TCO Components
Servers, Network, Hardware
Operating System & Virtualization Software (Included with AWS)
Colocation & Floor Space
Power & Cooling
Data Center Personnel
Storage Redundancy
Resource Management & Software Automation
Software Defined Networking
Summary: Servers, Storage, Networking hardware, OS & Virtualization Software, Power, Cooling, Floor Space, Staffing Expenses
Pricing Characteristics
Data Transfer (out) In is free
Storage
Compute
On-Demand
Reserved
Spot
Dedicated
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2. Target Customers
Economics Owner
Cares about
Cost, Time, Security
Financial Visibility
Informed Decision Making
Financial and Industry Data
Technology Owner (CIO, VP, Director IS)
Cares about,
Technology & Cost.
Balance Tech Goals with budget.
Accomodate Traffic, Volume Pricing, Scale
Business Owner
Cares about,
Cust Satisfaction and growing revenue
Productivity and efficiency
Reliable, Agile Scalable
Meeting customer's needs
Willing to take risks
Capacity Planning
Do you Overprovision?
Do you have high capital expenses?
Do you face limits on data center space?
Utilization
What is your current server utilization?
Operations
Overspending on Power and Cooling?
High Operating Expenses?
Optimization
Is your environment cost optimized?
Cost-Optimized Architecture
Variable Pricing
Auto-scaling
Reserved instances
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3. AWS Economics
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4. Data Center Economics
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5. Delivering the AWS TCO Message
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6. TCO Modeling
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7. Present the Result of a TCO Study to the Customer
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8. Common Issues and Objections