At Amazon Web Services (AWS) first global customer and partner conference, re:Invent,
AWS showed the robustness of their infrastructure through use cases of many top companies, NASA/JPL, NetFlix, NASDAQ OMX, SAP. These use cases showed the heavy reliance on cloud computing to allow these businesses to reduce operating costs, remove guesswork, scale to needs and improve global reach.
AWS Sr. Vice President Andy Jassy spoke more about the benefits and the main reasons people are moving to Cloud Computing :
1. Trade Capital Expense for Variable Expense.
Instead of laying out capital for data centers and servers before you know how you’re going to use them. AWS elastic compute gives you the ability to pay as you consume and avoid heavy upfront expenses.
2. Lower Variable Expense Than Companies can do Themselves.
- AWS is able to take advantage of their large scale to give its customers lower prices. This gives AWS customers the ability to start running apps without investing in any infrastructure, software, or hardware.
- AWS users stated,
- Samsung; saved $34m on SmartHub app.
- Commonwealth Bank AU, saved 10’s of millions of $ by migrating apps to AWS.
- Foursquare, 50% reduction in analytics cost.
- IDC, reports 70% lower 5 year TCO per app.
3. You Don’t need to Guess Capacity
Currently when launching new projects companies estimate the requirements of capacity. This is hard to predict because you do not know what customer response will be. Projection of usage is usually high therefore a large capital investment in compute resources is made. If estimations are not as high as predicted and usage is low your company ends up sitting on that capital resource until the app takes off. Then if it does gain traction you are left with not enough capacity and you have to decide whether you want customer experience to suffer or run around to secure extra infrastructure last minute, which you always end up over paying and over committing for.
With the cloud you don’t have to guess, you as much as you think you need in the beginning. If you need more you seamlessly scale up, if you need less you give it back and stop paying.
4. Dramatically Increase Speed and Agility
- In the classic model, securing infrastructure and provisioning servers required 6-20 Weeks. This stifles innovation, creativity and your team loses the initial motivation for the project.
- Moving to Cloud Computing can dramatically reduce your time to market.
- AWS clients noted;
- News Limited, “We reduced application deployment times from 2 months to 3 days.”
- Lions Gate, “Time to deploy went from weeks to hours.”
- Band Page, “We can double server capacity in 20 seconds”
- IDC study shows its 5X more efficient to use the cloud instead of setting it up yourself.
- Companies that innovate need to try lots of experiments, and they need to have low risk if the experiments fail. The Cloud lets your company move forward at a rapid pace.
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