The Effect of Cloud Computing on Growth of Startups and Entrepreneurship
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Transcript of The Effect of Cloud Computing on Growth of Startups and Entrepreneurship
The Effect of Cloud Computing on Growth of
Startups and Entrepreneurship
(Case Review: Amazon AWS)
By Sohail AbasiFounder of www.khoshfekri.com@SohailAbasi
The Idea
• Use your existing data center to provide cloud services
Why it is a good idea?
• Make a lot of money• offer services much cheaper than medium-size
company and still make profit• Leverage existing investment• New revenue stream at low incremental cost
(example: many Amazon AWS technologies were initially developed for Amazon's internal operations)
• Defend a franchise (Example: Microsoft enterprise apps Microsoft Azure)
The pioneers• Jul 2002: Amazon Web Services launched
– Third-party sites can search and display products from Amazon's web site, add items to Amazon shopping carts
– Available through XML and SOAP• Mar 2006: Amazon S3 launched
– Innovative 'pay-per-use' pricing model, which is now the standard in cloud computing
– Cheaper than many small/medium storage solutions: $0.15/GB/month of storage, $0.20/GB/month for traffic
– Amazon no longer a pure retailer, entering technology space• Aug 2006: EC2 launched
– Core computing infrastructure becomes available
Wide-spread adoption
• Apr 2008: Google App Engine launched– Same building blocks Google uses for its own
applications: Bigtable and GFS for storage, automatic scaling and load balancing, ...
• Nov 2009: Windows Azure Beta launched– Becomes generally available in 21 countries in Feb
2010
New World of IT
Old World• High Cap Ex (Capital
Expenditure)• Charge as much as you
can• Guess on Capacity
Needs
New World• Low variable Expenses• Only pay for what you
use• Scale seamlessly up,
Shed capacity as you wish
Predicting infrastructure need is difficultC
om
pu
te P
ow
er
Time
Predicted Usage
Actual Usage
Waste
CustomerDissatisfaction
The two prediction problems
Example: Video App on Amazon EC2N
um
be
r o
f E
C2
Inst
an
ces
Launch of a Facebook modification
Scaled to peak of 5,000 instances in 3 days
Old World• Need a new server?
See you in 2 or 3 months!• Undifferentiated Heavy Lifting
(Spend lots of time of exterior stuffs:– Coordinating large teams– Legacy software– Heterogeneous hardware– Scaling and managing physical
growth– Moving facilities– Purchase decisions– Bandwidth management– Contract negotiation– Server hosting
New World• Need a new server?
Spin up hundreds, even thousands of servers in minutes
• Focus scarce engineering resources on Agency mission
?How did Amazon get into Cloud
Computing?
How did Amazon get into Cloud Computing?
• Working on it for over a decade
• Development of a platform to enable sellers on the Amazon global infrastructure
• Internal need for centralized, scalable deployment environment for applications
• Developers were hungry for more
7 Reasons for Startups to use AWS
1. Zero upfront costs. No admin.
• Without a big investment in cash, or time• Pay-as-you-go, zero admin services.
2. From your initial customer to your initial public offering.
• Launching is fast and simple with AWS• Infrastructure will grow with your business
3. Lightning fast web content.
• Amazon CloudFront is a global content delivery network
4. Stay lean as you grow.
• Extend your runway by driving down your AWS infrastructure costs.
• Scale based on demand
5. Global by default.
• Global expansion doesn’t require a global workforce.
• multiple datacenters in multiple geographic regions
Evolving AWS Worldwide Infrastructure
Amazon Edge Locations (CloudFront & Route 53)
US West(Northern California)
US East(Northern Virginia)
Europe West(Dublin)
Asia Pacific Region
(Singapore)
Hong KongTokyoSingapore
Ashburn, VA Dallas Los AngelesMiamiNewarkNew YorkPalo AltoSeattleSt. Louis
AmsterdamDublinFrankfurt LondonParisStockholm
AWS Regions
Asia Pacific Region(Tokyo)
6. Bring your own app.
• Build with the tools you know. • HTML5 mobile apps, to Django-driven social
networks• Technology choices which best suit your
business• Flexibility to change your mind.
7. Scale up. Scale fast.
• Build architectures from day one that will scale up automatically with your business.
23
What is Amazon AWS?• Different services:
– Amazon Elastic Compute Cloud (EC2)Virtual machines for running custom software
– Amazon Simple Storage Service (S3)Simple key-value store, accessible as a web service
– Amazon SimpleDBSimple distributed database
– Amazon CloudFrontContent delivery network
– ...
AWS Platform
AWS Global Physical Infrastructure (Geographical Regions, Availability Zones, Points of Presence)
Your Application
ComputeAmazon EC2
StorageAmazon S3
Amazon EBS
DatabaseAmazon RDS
Amazon SimpleDB
Identity & BillingAWS IAM
Identity FederaltionConsolidated Billing
MonitoringAmazon CloudWatch
Auto Scale Network & RoutingAmazon VPC
Amazon Elasti c LBAmazon Route 53
Direct Connect
Content DeliveryAmazon
CloudFront
EmailAmazon SES
Parallel Processing
Elastic MapReduce
Messaging Amazon SNS
Amazon SQS
WorkforceAmazon
Mechanical Turk
Libraries & SDKs.NET/Java etc.
IDE Plug-InsAWS for Eclipse
Deployment & AutomationAWS Elastic BeanstalkAWS CloudFormation
Web InterfaceManagement Console
University of Pennsylvania 26
What is Amazon EC2?
• Infrastructure-as-a-Service (IaaS)– You can rent various types of virtual machines by
the hour– In your VMs, you can run your own
(Linux/Windows) programs• Examples: Web server, search engine, movie
renderer, ...
http:
//aw
s.am
azon
.com
/ec2
/#pr
icin
g (9
/11/
2013
)
The AWS management console
• Used to control many AWS services:– For example, start/stop EC2 instances, create S3 buckets...
CloudFront
• Content distribution network– Caches S3 content at edge locations for low-latency delivery– Some similarities to other CDNs like Akamai, Limelight, ...
AWS GovCloud (US)
Mars Exploration Rovers
Mars Science Laboratory
Deep Space Network
Carbon in the Arctic Reservoir Vulnerability Experiment
Lunar Mapper Mission Project
ATHLETE Robot
Demo
• Logging into AWS Management Console• Launching an instance• Contacting the instance via ssh• Terminating an instance
Cloud سرویسو تاثیر آن بر رشد استارتاپ ها و
کارآفرینی
شرکت AWS )بررسی موردی: آمازون)
سهیل عباسی@SohailAbasi