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Episode · 8 months ago

S2E02: How Customers are Maximizing AWS Managed Services (AMS)

ABOUT THIS EPISODE

Michael Eshoo, Sr. Manager, WW AMS Specialist SA at AWS, joins us to talk about how customers are using AWS Managed Services (AMS). We look at the challenges these customers are facing and how they’re overcoming them to maximize the benefits they’re getting from AMS.

...involve Solve, evolve. Welcome to cloudCrunch the podcast for any large enterprise planning on moving to or isin the midst of moving to the cloud hosted by the cloud computing expertsfrom Second Watch, Ian will be chief architect Cloud Solutions and SkipBerry, executive director of Cloud Enablement. And now, here are yourhosts of Cloud Crunch. Welcome back to cloud crunch. Today we have, like sshoe senior manager worldwide AMs specialist Solution, architect at a W s.He joins us today to talk about how customers using Amazon Web services,managed services or as we like to call it, a M s, which will be using thatterm frequently. Today we look at the challenges these customers we're facingand how they're overcoming them to maximize the benefits they're gettingfrom a M s. Welcome, Mike. Thanks. Thanks very much for having me. And andwe have our co host today. Skip Barry Skip. Always great to have you back aWell. Yeah. Likewise E and welcome. Mike. Yeah, This is gonna be good forthose of you on the podcast. We have been experiencing the service for quitesome time. AMs Amazon Web services manage services or A W S manageservices. It's been a great product. We've seen a lot of customers benefitfrom this, and we want to kind of dig into this because it's not just aboutthe service. There's gonna be a lot of other things around it that we want todiscuss. So, Mike, can you give us just a quick overview of what AMS is and thepurpose and the value that it's adding to the customers out there? Yeah, sure,happy to do that. And so So Aws Managed services, Um, and we launched inDecember of 2016 and are focused on helping customers with operations,which, which is obviously ah, big statement and a big name with withmanage services in it, which is one of the reasons we prefer a m. S. You know,we've been working on. I was listening to a sales manager in the Northeast, asit turned out, talk about AMs on an internal call and he was using a greatanalogy that that all borrow from him and share with you, right? And heexplains, a M s is a bridge, right and cloud is let's call it the beach or theshore, right? Or we're all the benefits somebody wants to get from cloud, right?You want to get cost avoidance, their cost, effectivity or optimization? Youwant toe leverage? AWS breadth of services. A I m l. You want thioleverage All the different instance. Sizes and capabilities and databaseengines we have. You know, all those those things can help developers buildbusiness value or directly impact business value by reducing costs. Butin order to get those benefits, you've got to connect that cloud environmentback to your traditional idea environment, your on premisesenvironment, your network, your access management compliance, integration forhealthcare customers. PC I for, you know, credit card processors. All thesedifferent types of compliance is all required if you want to get all thosebusiness benefits and so on. Right? So he likens all the business benefits tothe beach. Now, as many of your driving to the beach and hopefully Cove, it isan impacting too much of your vacation plans. You're likely to drive over abridge. You're likely not to notice that bridge, right? It's just, you know,some infrastructure that's been put in place to get you where you're going.Maybe you have to pay a toll. You don't exactly love that part. But youcertainly appreciate the benefit of getting over that bridge so you can getto what you want to dio, right? You want to enjoy that beach location? Youwant to enjoy your vacation Or, you know, from a business perspective,maybe you're just trying to get into the office, right? So you can collectthat paycheck. And so what AM s does is help with the bridge, right? We try totake take away from the customer the burden of designing and implementingall the different AWS services, and we're gonna go deeper into that as wego through the podcast and just sort of take the sort of challenge of selectingwhich to use for which use case. The best practice implementation of I ammanaged Active directory Cloudwatch...

Cloud Trail config. The list goes onand deliver those to customers in an integrated way so they could justquickly sail across that bridge and get to the business benefit they're tryingto enjoy. The summary writers were providing a secure and compliant AWSlanding zone with integrated AWS services and we're going to allowcustomers to focus on adopting cloud at scale versus doing the undifferentiatedtasks of designing and operating that landing zone and the underlyinginfrastructure so we can patch. You're easy to instances backup. You're easyto instances and so on. But we're really trying to take the burden of anycloud operations away from the customers. They can focus on thosecloud benefits. Appreciate that. Like, that's a great description. And since2016, I'm sure you've come in contact with a lot of different customers. Acouple of examples that you could share. Yeah, absolutely. I mean, I think, youknow, just just being with you guys in second watch today I mean, is I thinkone of our earliest projects we did together now a couple of years ago wasinformation Builders, which is an independent software vendor. And sothey've got their flagship Enterprise Analytics application. Second Watch wasable to implement it in AM s within four months, and it improved theirspeed of migration that they've been encountered by 66% versus, you know,looking to their internal resource is to do those infrastructure task. Theywanted their infrastructure resource is to be focused on applicationenhancements and building capabilities for their end customers. They estimatedthat to be about a million dollars in savings and personnel costs becausethey didn't have to allocate folks to the infrastructure stuff, they couldfocus them on the application stuff and ultimately created the informationBuilders cloud manage analytic solution that's powered by a. M s for onboarding their install base customers. So that was one I thought was reallygood. Another one that we do that we love to talk about is a publicreference. So you can search for for some testimonials and white papers IsSallie Mae. Which folks will be familiar there? The education lender inthe United States And they were able to close to hosting facilities. Theymigrated 71 applications in seven months on Guy love these statistics,and I'll probably keep talking about him because because I think it reallyencompasses the outcome you get when you think about a standardized AMSoperating model, right. But a 50% reduction and major incidentsexperience in their first year, right? We have to wait and see what theoutcome is. And they saw 100% patch compliance. Of course, they'reregulated entity. So they're regulators, of course, appreciating that andfrankly, their own own morale, like you want to be well patched. 30% reductionand planned maintenance Windows required. It required 30% reduction andcost related in meeting savings objectives in the first year, right? Soit met that objective. They have to our regional disaster recovery and plan one.It's required by the regulators to that they need to do it. And and the resultof that was a 30% reduction in downtime when they were performing. These d arerelated drills, which is so important for the resilience, either business.Right, so, so too cool. Use cases. We've got a few more that we'll talkabout, but pretty exciting. Yeah, very impressive that Sallie Mae one. Justtalk about de risking. There's a great stats for that. That takes a lot off ofCSOs plate at the end of the day, right, and it's it's hard, you know. I alwayssay it's challenging as a managed service writer, right on your best day,you know, people often don't notice you're there, right, it's it's, youknow, it's it's when you're having a hard day, right? So reducing those harddays. Yeah. Obviously, Amazon is famous for working backwards from what thecustomer needs. What are some of the biggest challenges that the AMS usershave experienced in facing right now? Yeah, I'd say I mean, it goes back towhat we're asking of I d I t departments right now. Right? So manyof customers that we're working with have a cloud first strategy, right? Imean, board of directors air requiring the company to have a cloud strategy ofsome kind. Many go further and say we're going to take a cloud firststrategy. We don't want to be in the data center operations business. Happyto have a DBS look after that for us. So how do you execute on that strategywhen you've still got to maintain patch complies, You gotta operate your as is.You're being asked for innovation...

...operating models and you're being toldto enable those you're being asked to migrate workloads to the cloud yourtraditional workloads so easy to compute type workloads and probablyyou're being asked to do that with less budget. Right? So so like, how do youmaintain that what you're required to maintain yet execute on this strategythat hopefully is gonna unlock the business value of cloud as you move toit. Right? So, to me, that's the first and foremost right, and the way Iexplain that I'm an electrical engineer. And so So I learned about circuitdesign and and so a way to improve the speed of your logic. Gates, right, Allthe little gates that air making decisions, you know, whether it's anand gate or an or gate, ultimately culminating into a microprocessor. Ifyou reduce the fan, the number of inputs and you reduce the fan out, thenumber of outputs you can improve the speed of the circuit. And so how thistranslates the I t is We don't want Central I t. To become that centralnode of processing all the things. And that's why Central it was designedbecause there used to be only one way. We have the data center and we havedata center operations. Now we have SAS. We have experimentation with machinelearning and Data analytics. Leveraging regulated data were doing innovationapplications to reach more customers with engaging Web experiences, right Sowe've got all these different new demands from the business, and theresult is we're gonna have many more operating models, and we've got tominimize the fan. We can't route everything through i t. So I t shiftsinto this role, at least, I believe, is a governance layer and their governing,all these different operating models that are giving the business thesecurity compliant and risk adjusted operating models and outcomes that theyneed to effectively operate in the cloud. Right? And so what this means isthere's this huge skills shortage, right? And so we wanna have thistraditional operating model in the cloud. But our traditional operationstaff might not be aware of how to do cost management in the cloud beforecost management was done by finance on the data center. Now, every day the I Toperations engineer wakes up, they're responsible from some cost management,right? They can find ways of saving the company money so they can reinvest that,reduce costs in tow, innovation and move the business forward. So justkeeping pace. I think that's the biggest thing we see Mike and you threwme right back into engineering school digital logic. As long as we don't talkabout differential equations going for, we can continue this conversation. Thatwas gonna be my next analogy, but I'll involved past it. All right, Mike? Well,thanks for that answer. How is AMs really helping them overcome some ofthe bigger challenges that they see in front of them? Yeah, I think you knowcourt to it, right. As we're accelerating these migrations, thesecloud adoption journeys because we're bringing tools to the table immediately,we decided to take a very prescriptive approach, right. So through thisstandardization, we ask the customer series of questions and simple ones.Like what? What I p space can we use, You know, how are we going to configurethe firewall? These air our requirements. We don't leave a lot ofyou know, how would you like to do X, y or Z to the customer? We prescribe itall, and as a result, we then deploy are already designed landing zone andgo through a very well documented steps. Set of integration steps, open up thefirewall, do the access management, immigration, operational process,integration, security and compliance integration and some very welldocumented validation that that environment has been establishedcorrectly and that they can easily deploy applications and infrastructureinto that environment. So through that standardization, we can lay it outright away, and within 2 to 4 weeks the customer could be in a fully productionready operating environment. And so and then, once you're there, you deploystuff into it. You don't have to worry about the patching in the backup inleveraging cloud tools for backup. I mean, sure you could. Customers couldchoose to stay with their incumbent tools that we're using in those days,the data center. But those aren't deeply integrated into the AWS service.Sweet. And so you're not gonna get us high value out of cloud If you're notadopting all those nuanced features of it that enable Scaled AWS operationsand Trusted Advisor won't be getting...

...the data feeds, it needs to give thebest recommendations that could give right. So the result right could be a30% cost optimization from resource cost avoidance and a 25% operationaland infrastructure savings as a result of ensuring we have all those datafeeds to make those cost cost implementations. I think the other netseparate advantage is security and compliance. Out of the box, thislanding zone we're gonna lay down for the customer comes with at the stations.You can see them in AWS artifact today. Where? PC at a stated we've got ISO27,000 family of standards S O. C 12 and three High trust typical applianceand all that's built into the design of our landing zone, as well as the designof our processes that we use to manage incidents, execute patching routines,change management and so on. So it's all been pre audited by third partyauditors baked in, and customers could take those audit reports right to theirauditors. They don't have to prepare for an audit. It's already been doneright? So get that out of the box. And as a result, we're hopeful hopeful thatcustomers were able to focus on that innovation. The beach that we talkedabout right getting the value out of cloud be it cost optimization Throughinnovation, we get that undifferentiated heavy lifting ofinfrastructure operations, not just infrastructure is aws natively providesoff. The customers played of things to do so they actually can startprogressing on that cloud first strategy that they might have. So asfar as the partner landscape does it take you nose ams take the partner outof the landscape. How to engagements? Rollout? And how does that look to acustomer as well? Sure, Yeah, I think you know the best way to think of a M sis more of an operation service or an operations capability like other AWSservices, right? And I think, like some of the proof in that is is the factthat we're sitting here today and we found so much opportunity to partnerwith Second Watch. First of all, a mess is part of an operating model. We'renot a complete customer operating model. We're not doing full stack manageservices. We're not doing professional services when the scope of AWS manageservices. So So we're frankly, partner required to deliver successfully tocustomers and complete their operating model. And I think, you know, SecondWatch has found a lot of value in working with a m. S. You know, I thinkwe had worked on an opportunity together where customers looking for DB A operations on top of a M SMS isn't providing TBH services and we're notoperating. Say a to B s data capabilities. Think aws glue and Redshift for data Analytics. So of course, that quickly leads into machinelearning. And these day and age, and so all that's going to be driven bypartners. And so I think our partner strategies critical toe the success ofour business and, frankly, critical to the success of our customers gettingthe value that they want out of cloud. We're trying to take this one layer ofAWS configuration and simplify that through standardization and all therest of that, I think is very much partner opportunity or an opportunityfor customers to do it for themselves. Yeah, and I will attest. I mean, yeah,we like we like the opportunities gives a few that unnamed customers wherethere's, you know, it's a great launchpad if you will, or startingpoint for our customer, and then that helps us come in and actually addadditional value. So oh, and quite often I'd assume, I mean, you know,from a second watch perspective that that's where you guys really want todeliver value right. Delivering business insights. Our customerinsights back to the business, right? Is what you're going to dio above theland. Like you guys want to be providing services at the beach, rightwhere the customers getting high value. They're enjoying their vacation tocontinue the analogy. You're not really, you know, perhaps interested it. Andyou know, manning the toll booth on the bridge? Yeah, exactly. From a customerpreparedness and readiness. And they're looking at a M s. What do they have todo to standardize, if you will? Yeah, I think this is an important point, right?Because we come forward with this standardized environment andstandardized tool chain for infrastructure operations, the customerhas to be open Thio, you know, truly...

...letting a m s own those infrastructureoperations. Right? So we're going to use cloudwatch now if the customerwants to run their own monitoring sweet. Well, let them, though we're being, youknow, paid to do the monitoring for them and the remediation of issues thatwe detect, right? So they have to do. And, you know, we we bring our ownendpoint security tooling that we've built automation around. So we'veautomated. You know, all of these different aws services from S S MAssess, the SM, sweet run command patch inventory and so on. We've automatedour access model with a DBS managed active directory of a set of pre cannedI am roles, which drive further standardization. We have tools thatthen manage our fleet of managed active directories, and I am rolls right sothe customers to be willing to adopt our configuration of that landing zone.And often I'll be talking to customers like, is our way the best way. I thinkbest. It's hard to assess these days. Certainly our way is a W s bestpractice. It's been rigorously security Reviewed. Reviewed by third partyauditors are principal engineering community. Our Operations ReadinessReview process, right? We've been through all this, so we have a highdegree of confidence in our model. It is a way we believe it's robust. It'snot necessarily better than the way of customers implemented or better thanaway. A partner would implement it, but we believe it's a robust way, andreally the value from that standardization is coming. Anytime onecustomer asks for something, all customers will typically benefit fromthat ask right, and frankly, we're reaching into AWS service teams withthe voice of our customers, suggesting we need additional enhancements to AWSbackup. We're looking for additional teacher capability and SM patch rightis our customers are asking for reporting either for their complianceor their operations. Best practices, right? We're trying to drive thatthroughout all of AWS to enable the customer toe have those more successfuloperations, outcomes of which were so passionate. But that Onley comesthrough an agreement to standardize on the ams sort of way of working. I likeit, though I could tell you, you know, very salient point there, you know,from spent a lot of time in the e r P. Business early two thousands, right?And you know, what did everyone want to do is break the e r p systemcustomizing, customizable implement a spokesman e cannot, Right, But this isthis is great. It speaks to that. And then you you know, lace in thecompliance standards that you have is well right. And you have again all thatbest of breed story is excellent, right? Not just releasing the complianceservices which AWS is doing, but now we're providing the compliant processis running on top of those services. Very strong, very strong. Tell us, um,unique ways that customers were using the AMS that you wouldn't necessarilythink of right off the bat. Sure. Yeah, My first one. It was second one. I mean,second watch did all the engineering around it. You took a M s and you tooka to B s marketplace that had released a capability to enable SAS procurementin AWS marketplace. And it took me a bit to get my head around it, so Itried to explain it. But you can, as an independent software vendor or otherentity, deploy a product out into AWS marketplace, and customers can procureSAS services within their AWS account. Nothing's deployed in the customers AWSaccount. Rather, a trigger is triggered into AWS marketplace, and the resourceis air deployed in the SV's account. And then, you know, requisiteinformation is provided back to the end customer toe log in as an administratorto that's now sass based instance for configuration. And so we did that withsure. Well, the I T s m software provider and you could certainly searchsearch the internet for the case studies and stories on that. And sowhat? Sure well, did is they created a Bs accounts and they handed out themover Thio aws manage services to operate them. And then second watchbuilt the services required. Thio trigger the deployment of those sas six.Those resource is into the sure Welland account. That then were customer facingright? So So it's new technology from A to B s marketplace, a new businessapproach, an idea from the SV. Sure.

Well, Thio vend these products to theircustomers And, like, you know, it was early days for those products, and itwas the first time I am s had done it. So So it was cool to see second watch,step in and sort of plug in these different capabilities for prettyelegant SAS procurement solutions. So that was when I like, I don't know ifyou were involved in that one, Skip. Yeah, it was early days here for mewhen that all came together. Yeah, exciting. I looked at that and thoughtabout the creativity and really, it's a great pitch and platform for othercustomers that are trying to do that kind of work. I think a greatopportunity. I think something, you know. And I think through ourpartnership we could certainly do more of it, because once you get that playdown right, it's it's it's at that point. It becomes pretty simpletechnology to implement. And it's really about, you know, a modernapplication designed with the I S V. And we think there's tremendousopportunity with, you know, more traditional ice Weise, who havetypically just shipped software to pretty easily SAS. If I their productsleveraging these techniques and a great opportunity for second Watch to helpthose sort of customers. I think one of the things that I get kind of excitedabout on the services that you touched on this is the best practices it'sreally taking in what the proven best practices that you've seen in thisindustry for 10 plus years and really layering that into there and makingsure that the customers were following that. And I think that's just thepowers is just fantastic on that, and that's the goal, right? I mean, youthink of the sure well use case, right end customers of sure well, just want aleverage. The sure well product they probably in a long time. Consumers ofit, they just want the business benefit of I t s m software. Now, of course,they have an expectation that that's hosted in a secure manner and acompliant fashion in a best practice fashion, right? So that they'reconfident their i d s M data is secure and stable, and their systems will beoperationally available. Of course, I d s m systems managing I t incidents.Right. So it's it's always that situation. You can't have your i t s m.System going down when you're dealing with a night incident, right? And so ah,complicated resiliency. Problem. Perhaps. Right. But but the businessvalue isn't coming from the i. T. Operations is coming from what softwareis doing, right? So how do we just take that burden of, you know that thatundifferentiated, heavy listen off of the ice V and the end customer valuecomes from No, I think that's very true. I mean, obviously, that phrase has beenused a lot the undifferentiated heavy lifting. But we do see that time andtime again, when we could take that burden of any of that type of stuffaway from the customer and truly allow them to focus on the value of whatthey're doing for their customers is so incredibly awesome. And that is thepromise of cloud, right? Ultimately, indeed, indeed. Right. But if you'renot implementing those best practices, you won't realize that those benefitsthat the promises make right and it always cost is the analogy or is theone I like to point to because it's just so easy to explain Right beforefinance led cost. Now that I t operations person has toe own costevery day and be impassioned about keeping costs the business low so thatmoney could be reinvested where King create differentiation. Yeah, I know. Ithink those were some great benefits Any other that come to mind that youthink we could share with the customers out there? Yeah, I love I mean, andwe've just did to reinvent talk last year and just starting to publish theuse case, and we certainly want to doom or and do some short videos. ButThompson Reuters, um and and really the use case Thompson Reuters represents isThea am a use case, right. So, uh, definitive and Thompson Reuters splitpretty major emanate transaction. And, you know, I think wisely assumed theconsultants that did the M and a split is they realize splitting the I Tdepartment into didn't didn't make sense, right? And so so, you know, Ihad to go one way or the other. At least this is how I've assessedassessed that they speak about that in the reinvent video. And so now ThompsonReuters needs to essentially build an operations department from the groundup. And so they came to aims and said, Hey, can you help? Like, it's ourintent to insource all of this, But we need a couple of years of cloudoperations were under deadlines to complete the seven a transaction. Canyou just help with the operations? And...

...then our intent will be to take backthe environment over time. And I think that's an area of when you think abouta W. S. A. M. S. As an AWS service, you realize, you know, our pricing model issuch that you pay for the operational services based on the underlyinginfrastructure that you have, So as you take workloads out of the environmentor take accounts back from a M s. You can start building those I Tcapabilities back in house, and then you get to keep the configurations thatwe've had. You just didn't take on the management and upgrade responsibility,right? So So we can provide that that bridge over use of bridge analogy today.But we can We can provide that assistance to the customer for for ashorter duration in these emanate type transactions. And if they find theywanna leave things with us because it was easier they could do that or ifthey want to modernize out of the environment. So today they're runningon E C two and databases on top of easy to if in the future they want to adoptAWS surveillance capabilities or other more modern architecture designs, theycould just modernize out. But they don't have to worry about the burden ofdoing the infrastructure operations in the cloud environment today. Again,freeing up their resource is to those higher value add tests. Looking forwardto the future. What are you most excited about? What the service onething I'm excited about is a recently commissioned Forrester Total EconomicImpact study for a DBS Manage services, and you can find that just by searchingthe Internet for Forrester, a DBS Manage services and what I thought wasreally compelling. Forester came in and looked really hard at some of ourcustomers data in anonymous fashion. And they will defined AMS providing anR y of 243% of what they needed to invest and then operate on a BBS manageservices. So I thought that was pretty exciting. That present value of 7.7million is what Forrester concluded and a benefits value of $10.8 million.Obviously, the devil of that is in the details, and you can find those detailsby googling that paper, so encourage you to download that and take a lookand get really into the data of sort of the results AMS is able to provide.Yeah, we could put that link in the show notes. Yeah, I think we're goingto get into more sorts of capabilities that allow us Thio either take on alittle bit more responsibilities, more AWS services come out focused onoperations and then also a little bit less. Write something we haven't doneto date is just on landing zone. Government governance invent outcustomer managed accounts. Right. And this might also be a great partnershipopportunity with second watch where will vent out accounts that we don'ttake on any scope for 100% customer responsibility. But we will manage thelanding zone. Right? So you know it will be vented out with Cloud Trailconfigured and integrated. And Aiken see customers asking us to deploy SGPS.That would prevent the D configuration of Cloud Trail, for example. But howcome we let the customer take on Maurin? These more modern use cases yet willcontinue to look after the landing zone, providing them their cost reporting andso on it the governance level. Right? So just more alignment to thegovernance layer is what I'm excited about. Yeah, that's fantastic, becausethen you'll continue to foster that environment of experimentation as well,right? Exactly. Like and that's something we don't do. I would say asour core use case today is, you know, managing a fleet of sandbox accounts,right? I mean, I think we're lucky at AWS. Every one of us can have a a w sowned aws sandbox account for our own learning and experimentation. Shouldyou miss configure that account, say, deploy an instance with port 20 to opento the Internet. A To be a security is going to ticket you and they're goingto take that incident very seriously, right? They're going to keep you safe,right? So I think similar models where customers were able to give their staff,you know, environments for experimentation yet oversight toprevent security incidents from occurring or when they do ah, set ofhelping hands to immediate the security incidents. I think if you could stayneck and neck with the end of the pace of innovation there and then restatethe Sallie Mae, you know, numbers you...

...take that into consideration. I thinkyou know, it's ah, it's Ah, hate saying win for that sandbox use case. Yeah, Ithink there's so much opportunity and it's funny, right? So? So what I'mexcited about is opportunities to do less, if that makes sense, right? Butbut in a still a secure and compliant and conforming way, that's great. That's great. Well, Mike, I really wantto thank you for your time today, Skip. Of course. Yours as well. Thanks blank.Now this has been a fantastic conversation audience. We look forwardto hearing from you, as always, suggestions, feedback always welcome.Well, please reach out at Cloud Crunch at second watch dot com until the nextepisode. Have a fantastic week. You've been listening to Cloud Crunchwith Ian Willoughby and Skip Very. For more information, check out the blogged.Second watch dot com slash company slash vlog or reach out to second watchon Twitter.

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