Take advantage of economies of scale: Huge cloud providers such as Amazon buy storage, servers and network gear in massive volumes. Swap CapEx for Opex: By replacing all these servers, you are getting out from underneath enormous capital expense and swapping in operating expenses which should be more predictable. For instance, Amazon argues that by moving to AWS, customers on average are able replace 400 servers. Replace Your Servers: The initial premise is that you indeed will save gobs of money with AWS. This white paper goes into deep detail about all these user scenarios ( ).Ī shorter presentation, “Optimizing Total Cost of Ownership for AWS” by Marc Johnson, Amazon Web Services and Wayson Vannatta, VP of Technology, InfoSpace, also offers some great advice. Some shops have predictable and steady state data demands, some fluctuate up and down, and some spike wildly depending on circumstances. The first thing to realize is that Amazon has a number of ways to charge for its services, and what makes sense for you depends on your usage patterns. For instance, it has a TCO calculator ( ), and a monthly cost estimator ( ). It takes a smart customer to keep TCO to a minimum.Īmazon itself aims to help. Those savings, however, are far from a given.
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