Jeff Barr

Senior Web Services Evangelist

Amazon Web Services
 Hardware Costs

Your Idea
Software Costs Successful
Costs to Run Idle Servers Product
Real Estate
Maintenance
Power
Cooling
Expertise
Load Balancing
Managing Growth
Bandwidth Management
Server Hosting
Slashdot/Digg/TechCrunch Effect
Rapid, unexpected customer demand/growth
“Every year, we take the busiest minute of the busiest hour
of the busiest day and build capacity on that, we built our
systems to (handle that load) and we went above and
beyond that.” *

-- Scott Gulbransen
Intuit Spokesman

* http://news.com.com/2100-1038_3-6177341.html
30% of time, energy, and dollars on
differentiated value creation

70% of time, energy, and dollars on

undifferentiated heavy lifting
Your Idea Undifferentiated Successful
“Heavy Lifting” Product

Amazon Web Services

Amazon Simple Storage Service
Amazon Elastic Compute Cloud
Amazon Simple Queue Service
Amazon Mechanical Turk
Elastic capacity – both up and down
Fast
Always available
Rock-solid reliability
Very simple
Cost-effective
Low up-front investment
Faster time to market
Ability to scale on demand
Focus on product & core competencies
More capital available to drive business
Faster pace of innovation
Happy investors
10 web services spanning core infrastructure to e-
commerce
Running as part of Amazon’s proven computing and
networking environment
12 years and $2 Billion spent building Amazon’s
technology, infrastructure & content
240K registered developers
Amazon S3: Storage for the internet

Store 1 byte to 5 GB objects, URL-accessible

SOAP and REST APIs

Private and Public Storage Options (ACLs)

Economical
$0.15 per GB per month to store data

$0.10 - $0.18 per GB to transfer data

$.0001 - $.01 per request

Paid via AWS Developer account

Amazon EC2: Compute capacity in the cloud

Scale capacity up and down in minutes

Developers control their machine instances

$0.10 per server per hour

$0.10 - $0.18 per GB to transfer data

Amazon SQS: Message queuing service

Reliable message transmission & storage to avoid duplication or lost

messages

Unlimited queue count, message size, message count

$0.10 per 1,000 messages sent

$0.10 - $0.18 per GB to transfer data

API to Human Processing Power

Planetary-scale Paid Work Force

Put a Human in the Loop

HITs, Requesters, Workers

10% fee to Amazon ($0.005 minimum)

Challenge:
Scalable storage solution
to meet increasing
customer demand

Solution:
Amazon S3

Result:
192TB stored in Amazon
S3, saved $1,000,000

Time to Deploy:
One week to start storing
photos
Smugmug increased
their photo storage from
.5 million in 2003 to 140
million in 2007
 Implemented Amazon S3 in April 2006
Apr-Oct grew 72%, from 64 Million images to 110 Million
images
Currently storing 192 TB in Amazon S3
Estimates saving $1,000,000 to date
Project $1-2 Million savings in 2007

* http://blogs.smugmug.com/don/files/ETech-SmugMug-Amazon-
2007.pdf
Challenge:
Needed scalable support for
services such as transcoding and
file transfer

Solution:
Amazon S3,
Amazon EC2, and Amazon SQS

Result:
$100 to launch scalable
infrastructure

Time to Deploy:
1 day to integrate Amazon S3, 75
days from start time to full launch
w/ all services
GigaVox Infrastructure
Implemented Amazon S3, Amazon EC2 and Amazon
SQS in November 2006
Created an infinitely scalable infrastructure for
less than $100 - building the same infrastructure
themselves would have cost thousands of dollars
Reduced staffing requirements - far less
responsibility for 24x7 operations
Challenge:
Provide an inexpensive podcast
transcription service to
customers
via the Internet

Solution:
Amazon Mechanical Turk

Result:
Able to emerge as the market
leader with low prices and quick
turnarounds

Time to Deploy:
24 days
Register at http://aws.amazon.com

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 © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions,
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MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.