AWS Technical Due Diligence Workshop Session Two
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The document provides a comprehensive overview of AWS Technical Due Diligence (TDD) tools and mechanisms for both AWS and non-AWS customers during acquisitions and mergers. It details the playbooks, runbooks, and various AWS services to facilitate cost optimization, migration planning, and operational assessments. Additionally, it outlines deliverables like ROI and TCO reports, as well as workshops and gamification strategies to enhance customer understanding and engagement in cloud migrations.
AWS Technical Due Diligence Workshop Session Two
- 1. © 2019, Amazon Web Services, Inc. or its Affiliates.© 2019, Amazon Web Services, Inc. or its Affiliates. Tom Laszewski, Private Equity Transformation Advisor AWS Value Creation Technical Due Diligence (TDD) for Acquisitions and Mergers April 2020
- 2. © 2019, Amazon Web Services, Inc. or its Affiliates. Table of Contents • AWS Technical Due Diligence Overview • Tools and Mechanisms (applicable to): • AWS customers • Non-AWS customers • AWS and non-AWS customers • AWS Deliverables • Enablement of customers and partners • Benefits
- 3. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Technical Due Diligence Assets and Process Overview
- 4. © 2019, Amazon Web Services, Inc. or its Affiliates. Working Backwards from the Customer Non-AWS customers • What is the cost savings of running on AWS? • How long and how much will it cost me to migrate or modernize to AWS? • How can I reduce my operational costs by moving to AWS? AWS customers • How can I optimize the run time costs of the current AWS environment? • What does the current AWS environment look like? What the AWS Services are being utilized? What AWS Services are being used the most? AWS and non-AWS customers • Is the AWS, on-premises, or co-location platform optimized? • What are the cloud capabilities of the customer? • How do I reduce technical debt? • Are best practices being used?
- 5. © 2019, Amazon Web Services, Inc. or its Affiliates. Playbook Overview The Technical Due Diligence (TDD) pre-transaction playbook contains the requisite AWS services, product offerings, tools, mechanisms, reference architectures, and frameworks for users to employ during the TDD pre-transaction stage of the acquisition lifecycle. By working backwards from the customer, the AWS Value Creation Practice (VCP) generates the assets necessary to deliver on the end goal of accelerated value creation for customers.
- 6. © 2019, Amazon Web Services, Inc. or its Affiliates. Runbook Overview The Technical Due Diligence (TDD) pre-transaction runbook contains the execution order, escalation procedures, communication methods, and AWS owners for the mechanisms and tools defined in the pre-transaction playbook. The runbook also contains a prescribed list of questions to ask prior to investor on-sites, target and Advisory firm AWS, and those to ask during the on-site TDD. The questions are different based upon whether the target is running AWS, or if they are on-premises.
- 7. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Tools and Mechanisms Applicable to Existing AWS Customers
- 8. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Trusted Advisor AWS Trusted Advisor is an online tool that provides real time guidance on how to provision resources and follow AWS best practices. Much like customized cloud expert, AWS Trusted Advisor analyzes a company’s AWS environment and provides best practice recommendations in five categories: • Cost optimization • Performance • Security • Fault tolerance • Service limits Tool type: Web-based AWS Console Usage of tool: Publicly accessible to all partners and customers. AWS e-learning recommended.
- 9. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Cost Management AWS offerings a number of services that assist customers with cost optimization, management, and budgeting, including: • AWS Consolidated Billing • AWS Billing Console • AWS Cost Explorer • AWS Budgets • AWS Cost and Usage Report • AWS Compute Optimizer Tool type: Web-based AWS Console Usage of tool: Publicly accessible to all partners and customers. AWS e-learning and webinar recommended. Simple, Static, Small environment Complex, Dynamic, Large environment 1. Monthly AWS Invoice 2. AWS Billing console 3. AWS Cost Explorer and AWS Budgets 4. AWS Billing File Analysis, DIY dashboards, and 3rd party tools
- 10. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Tools and Mechanisms Applicable to Non-AWS Customers
- 11. © 2019, Amazon Web Services, Inc. or its Affiliates. TCO and ROI - Migration Portfolio Assessment (MPA) The Migration Portfolio Assessment (MPA) tool generates reports for TCO (AWS run time costs) analysis and ROI (cost savings - migration costs). The tool is based upon actual customer migrations, empirical customer data points, industry averages and various assumptions. MPA reports provide the following: • Estimated migration completion time (months) • Estimated number of resources required for migration (inclusive of migration work hours • Migration costs for AWS, customer resources, and a certified AWS migration partner Tool type: Web-based tool* Usage of tool: The online tool can be run by AWS resources, PE firms and/or M&A Advisory participants. AWS webinar required. * You must be a AWS Value Creation Practice member and be trained on MPA. Note : AWS Pricing Calculator can be utilized for a very quick, ‘back of napkin’ estimate.
- 12. © 2019, Amazon Web Services, Inc. or its Affiliates. TCO - Cloud Economics Business Value Calculator This tool is used by AWS cloud economists to estimate the business value of AWS in alignment with the Cloud Adoption Framework (CAF) with minimal data inputs to: • Quantify an Outside-In Point of View (POV) business case • Supplement a cost savings / TCO only study into a comprehensive business case • Add further credibility to a bottom up TCO study by adding a benchmarked estimate Tool type: AWS internal tool Usage of tool: AWS Cloud Economics SME. AWS VCP engagement required for tool access/deliverables
- 13. © 2019, Amazon Web Services, Inc. or its Affiliates. Value Benchmarking Cost savings (TCO) Staff productivity Operational resilience Business agility KPI § Time to market § Time to deploy § Code deployment frequency § Customer satisfaction § Employee satisfaction KPI § Application availability § Total monthly incidents § Critical (P1/P0) incidents § Security incidents § Mean-time-to-resolution (MTTR) § App resilience rating § App security rating KPI § IT spend on app per user § Total IT infrastructure spend KPI § VM’s managed per admin § TB’s managed per admin Infrastructure cost savings/ avoidance from moving to the cloud Efficiency improvement by function on a task-by- task basis Benefit of improving SLAs and reducing unplanned outage Deploying new features/ applications faster and reducing errors Cost Impact Value Impact Example: 50%+ reduction in TCO (GE) Example: Over 500 hours per year of server configuration time saved (Sage) Example: Critical workloads run in multiple AZs and Regions for robust DR (Expedia) Example: Launch of new products 75% faster (Unilever)
- 14. © 2019, Amazon Web Services, Inc. or its Affiliates. IT Landscape Discovery - AWS Application Discovery Service The objective of the AWS Application Discovery Service is to allow enterprise customers to plan migration projects by gathering all of the information about their on-premises data centers, such as the following: • Server specifications • Performance • Processing run times • Network connections Tool type: Web-based AWS Console Usage of Tool: AWS e-learning and webinar required. AWS VCP Solution Architect recommended on first several engagements. Benefits • Detailed cost estimate in advance of application migration to AWS • Simplification of application migration planning via the grouping of servers • Agent-based and agentless functionality (Agentless mode is more practical during a TDD given the limited time frame) • Data encryption in transit to AWS and in the Application Discovery Service data store • Integrated with AWS Migration Hub, which allows users to track the status of migrations across your application portfolio.
- 15. © 2019, Amazon Web Services, Inc. or its Affiliates. IT Landscape Discovery – TSO Logic AWS TSO Logic is a data-driven analysis of total cost of ownership and cost modelling for your ideal future state. It ingests millions of data points from your current environment, including age, generation and configuration of all hardware and software they’re running and each instance’s historical utilization Tool type: AWS or partner request for TSO Logic Assessment Usage of Tool: AWS or Partner free of charge to Value Creation Practice partners and AWS PE firms Benefits • Discover and understand what you have today • Algorithms to build the data-backed business case • Agentless-based • Pass algorithmically generated recommendations to ecosystem partners (AWS Migration Hub) • Utilizes latest AWS pricing models and services • Find the most economical place for workloads – AWS or on-premises.
- 16. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Tools and Mechanisms Applicable to AWS and Non-AWS Environments
- 17. © 2019, Amazon Web Services, Inc. or its Affiliates. Cloud Capability Assessment The Cloud Capability Assessment consist of 30 questions equally divided among the six Cloud Adoption Framework (CAF) business and technical perspectives. Each question is assigned a rating from 1-5 that maps to the cloud stages of adoption: • Project • Foundation • Acceleration and migration • Optimization and Reinvention • Disruption A report including highlights and observations, key takeaways, a functional rating (1-5), and a radar chart with recommendations to increase the rating across each of the six CAF perspectives is generated from the assessment. Tool type: Microsoft Excel Spreadsheet Tool Usage: AWS VCP engagement required for tool access/deliverables unless trained by AWS
- 18. © 2019, Amazon Web Services, Inc. or its Affiliates. Technical Debt Discovery AWS CodeGuru Profiler is always searching for application performance optimizations, identifying your most “expensive” lines of code and recommending ways to fix them to reduce CPU utilization, cut compute costs, and improve application performance. • Continuously run in production • Analyzes real traffic patterns • Can run on production workloads • Java applications *Not applicable to TDD Tool type: Web-based AWS Console Usage of tool: Publicly accessible to all partners and customers. AWS e-learning and webinar recommended. *Cast Software and WhiteSource are AWS partners with Technical Debt tools AWS CodeGuru Reviewer detects deviation from best practices for using AWS APIs and SDKs, and also identifies concurrency issues, resource leaks, and correct input validation • GitHub or AWS CodeCommit • $0.75 per 100 lines of code analyzed per month, 90 days at no cost • Java Applications Powered by Machine Learning, best practices, and millions of lines of code review
- 19. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Well-Architected Tool The Well-Architected Framework has been developed to help cloud architects build secure, high-performing, resilient, and efficient infrastructure for their applications. Based on five pillars: • Operational excellence • Security • Reliability • Performance efficiency • Cost optimization The AWS Well-Architected (WA) Tool is used to complete a Well- Architected Review (WAR). The tool helps customers review the state of their AWS and on-premises workloads, and compares them to the latest AWS architectural best practices. Tool type: Web-based AWS Console or spreadsheet (AWS only) Usage of Tool: AWS e-learning and webinar required. AWS VCP Solution Architect recommended on first several engagements. Well-Architected Insights • AWS customers and partners have completed over 70,000 Well-Architected Reviews (WARs). • 10% of WARs have been completed on non-AWS workloads.
- 20. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Deliverables
- 21. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Deliverables - Output Templates AWS TDD Flash Report Sample Deliverable • The purpose of this document is to provide prescriptive recommendations based upon hypothesis (opportunities). The document is formatted in a two by two format with quadrants for strengths, threats, opportunities (hypothesis) and weaknesses. The document provides the ROI, TCO, and value benchmarks for the top hypothesis in the appendix. Migration and modernization ROI and TCO Sample Deliverable • Migration person hours, and AWS run time costs based upon AWS empirical data points, industry averages, and a set of assumptions. Migration and Modernization Value Creation Disposition Comparison • The purpose of this document is to provide prescriptive recommendations. The observations, hypothesis, recommendations, red flags (risks) in this document are based upon the intelligence gathered during the TDD. Value Benchmarking Report • Results based on four cloud value benchmarking areas that provide a portfolio company industry based insights to drive better outcomes. Cloud Capability Report • Results in a better understanding of the readiness of a portfolio company to undertake a cloud migration or modernization effort, innovative pilot project, or digital transformation initiative.
- 22. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS TDD Flash Report
- 23. © 2019, Amazon Web Services, Inc. or its Affiliates. Migration and modernization ROI and TCO Sample Deliverable A report outlining the return on investment for a total cost of ownership calculation based on a series of documented inputs, assumptions, AWS tools/mechanisms used, and resulting outputs.
- 24. © 2019, Amazon Web Services, Inc. or its Affiliates. Migration and Modernization Value Creation Disposition Comparison This comparison contains the migrations and modernization options for compute, storage, network (hosting cost savings), and revenue generation value creation opportunities outside of staff productivity, operational resiliency, and innovation – the three pillars of value creation beyond cost savings.
- 25. © 2019, Amazon Web Services, Inc. or its Affiliates. Cloud Value Benchmarking Report Cost savings (TCO) Staff productivity Operational resilience Business agility Cost impact Value impact What is it? Infrastructure cost savings/ avoidance from moving to the cloud Example 66% reduction in application hosting and deployment cost (Thermo Fisher Scientific) What is it? Efficiency improvement by function on a task-by- task basis Example Cut search times by 90% (Benchling) What is it? Benefit of improving SLAs and reducing unplanned outages Example Accelerated minor product updates from once a year to biweekly, with no downtime to customers (Heartflow) What is it? Deploying new features/ applications faster and reducing errors Example Run simulations 98% faster (Bristol-Myers Squibb) A report outlining cloud value benchmarking across four focus areas: cost savings, staff productivity, operational resilience, and business agility according the industry of the company assessed.
- 26. © 2019, Amazon Web Services, Inc. or its Affiliates. Cloud Capability Report A detailed report including highlights, observations, and key takeaways with recommendations to increase a company’s rating across each of the six CAF perspectives is generated from the cloud capability assessment.
- 27. © 2019, Amazon Web Services, Inc. or its Affiliates. How Can AWS Enable You?
- 28. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Enablement – Self Service Programs and Services Self Service AWS Architecture Center - AWS Solutions, Whitepapers & Guides, and Reference Architecture Diagrams AWS Quickstarts – AWS CloudFormation templates that automate deployments, provide a guide that discusses the architecture, and step-by-step deployment instructions AWS Customer Success – Access to use cases from our millions of customers, including the fastest-growing startups, largest enterprises, and leading government agencies—who are using AWS to lower costs, become more agile, and innovate faster AWS Cloud Economics Center - Access to a broad portfolio of solutions, services, and experts to quantify the financial benefits of the cloud that helps increase growth, drive efficiencies, and realize important long-term cost reductions AWS Prescriptive Guidance - AWS Prescriptive Guidance provides time-tested strategies, guides, and patterns from Amazon Web Services (AWS) and AWS Partner Network (APN) Partners to help accelerate your cloud migration, modernization, or optimization projects
- 29. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS Enablement – Workshops Value Creation One-Day Intro Workshop This workshop provides participants an introduction to AWS frameworks, tools, mechanisms, and solutions most relevant to accelerating value creation with the help of the cloud. Value Creation Post-Transaction Application Migration Workshop The workshop will provide the foundation for a 10-20-30 project or initiative migration sprint plan with well-defined milestones to quickly demonstrate results. Cloud Adoption Readiness Workshop The one-day AWS Cloud Adoption Readiness workshop will result in a better understanding of the readiness of a portfolio company to undertake a cloud migration or modernization effort, innovative pilot project, or digital transformation initiative. Art of the Possible Workshop Identify and document three to five pilot projects (aka scenarios) that will solve a customer problem or address a customer opportunity. Choose one scenario and write a press release and Frequent Asked Questions (FAQ) document to describe the result of implementing the solution for this customer problem or opportunity.
- 30. © 2019, Amazon Web Services, Inc. or its Affiliates. AWS TDD Game Days AWS Technical Due Diligence (TDD) GameDay is an interactive team-based learning exercise designed to give players (those that execute TDDs) a chance to validate the AWS TDD playbooks and runbooks. It allows AWS, Customers, Private Equity firms, and M&A Advisory partners to the test the AWS support of a TDD in a real-world, gamified, risk-free environment. The customer should bring 2-3 previous or existing TDD scenarios to the GameDay.
- 31. © 2019, Amazon Web Services, Inc. or its Affiliates. Customer and Partner Benefits
- 32. © 2019, Amazon Web Services, Inc. or its Affiliates. Benefits Pre- and Post-transaction Support Access to the following: • Education (in-person, online webinars, etc.) • Frameworks (CAF, Well-Architected, etc.) • Mechanisms (MPA, Technical and Non- technical Playbooks and Runbooks) • Scalable programs (M&A Advise, etc.) Access to AWS topic matter experts in the following fields: • Solution Architecture • Migration and Modernization SMEs • Cost Optimization SMEs • Cloud Economics SMEs • Professional Services • Digital Innovation Experts • Transformation Strategists • Business Development • Sales
- 33. © 2019, Amazon Web Services, Inc. or its Affiliates. For more details on the AWS TDD for M&A assets and engagement support, contact the following: Tara Jones Value Creation Practice, Global Business Lead tarajon@amazon.com Tom Laszewski Value Creation Practice, Global Technical Lead tomlasz@amazon.com Sven Koppany Value Creation Practice, Solutions Architect @amazon.com
- 34. © 2019, Amazon Web Services, Inc. or its Affiliates. Thank you!