The value of cloud extends beyond Total Cost of Ownership (TCO) reduction. AWS customers also see significant improvements in other areas, including staff productivity, operational resilience and business agility.
Leading organizations understand the value of using AWS is not limited to cost savings. The Cloud Value Framework helps customers understand the business value of moving to and building on AWS.
AWS Cloud Value Framework
What is it?
Infrastructure cost savings/ avoidance from moving to the cloud.
Example
50%+ reduction in TCO.
Cost Impact
What is it?
Efficiency improvement by function on a task-by-task basis.
Example
Over 500 hours per year of server configuration time saved.
What is it?
Benefit of improved availability, security, and compliance.
Example
Critical workloads run in multiple AZs and Regions for robust DR.
What is it?
Deploying new features/ applications faster and reducing errors
Example
Launch of new products 75% faster.
Value Impact
Business Outcomes and Benchmarking with AWS
“Who else like me has realized value/savings and what improvement should I expect?” This is a fundamental question Cloud Economics addresses through Value Benchmarking – a study which quantifies the KPI improvements seen by 1,500 AWS customers before vs after migration.
Value Benchmarking provides guidance on improvements based on what other AWS customers have achieved.
Fostering Business and Organizational Transformation to Generate Business Value
IDC interviewed 27 organizations globally and reported that AWS helped customers accelerate growth, drive efficiencies, and realize important long-term cost reductions. Highlights from the 2018 IDC Report on Creating Business Value with AWS include:
Optimizing Cost of Providing IT Services and AWS Value
More efficient IT infrastructure staff
Lower 5-year cost of operations
To payback
Improved IT and Business Agility
More new features delivered
More productive application development teams
Less staff time to deploy new storage
Business Operations Impact
Less time lost to unplanned downtime
Additional revenue per year per organization
Increase in business user productivity
Learn How Live Nation Realized Business Value with AWS
Live Nation produces more concerts, sells more tickets, and connects more brands to music than anyone else in the world. Jake Burns, VP of Cloud Services for Live Nation, worked with the AWS Cloud Economics team to understand the value Live Nation realized from their migration to the cloud. Together, they identified four key areas of quantifiable business value.
The Value of Improved Availability, Security, and Performance
Nucleus studied enterprise organizations’ journey to the cloud with AWS to understand how moving applications from an on-premises to public cloud environment affects the security, performance, and availability of those applications. Nucleus interviewed executives and development team leaders from 33 global enterprises spanning a wide range of industries who migrated a collective 351 applications from onpremises environments to the AWS cloud. Highlights include a 64% reduction in mean time to resolution (MTTR), 40% reduction in IT costs, 69% reduction in unplanned downtime, and 43% decrease in security events.
Cloud Financial Management & Cost Optimization
Cloud Financial Management (CFM) is a set of activities enabling Finance and Technology organizations to manage, optimize and predict costs as they run more workloads on AWS. A disciplined CFM approach enables the right balance between agility and control, while improving unit economics.
Customer Success
Learn about how our customers are using AWS services to power innovation.
Australia Finance Group (AFG) reduced annual IT operational spend by AU$500,000, while shifting from consuming 80% of IT expenditure on IT operational costs to 60% dedicated to innovation.
Trainline migrated all workloads to AWS and reduced downtime by 60% with an annual savings of £1.2M.
CapitalOne reduced its data centers from eight to three by 2018 and reduced the time needed to build new application infrastructure by more than 99%.
In three months, Conde Nast migrated over 500 servers, one petabyte of storage and over 100 database servers into the AWS Cloud. As a result of going all-in into the AWS Cloud, the company reduced costs by 40% and increased operational performance by 30-40%.
Lionsgate avoided acquiring additional data center space, saving an estimated $1M+ over three years.
King County in Washington State saved $1M in hardware refresh costs and $200k annually in OPEX costs.
By using AWS, Enel reduced provisioning time reduced from four weeks to two days.
UC Santa Cruz Genomics Institute used AWS to process 20,000 cancer samples in days instead of months, saving hundreds of thousands of dollars and powering innovative new research.