Migrating to the Cloud What Is the Cost of Doing Nothing Ent325

Title

AWS re:Invent 2022 - Migrating to the Cloud: What is the Cost of Doing Nothing? (ENT325)

Summary

  • Aaron Rallo, director and general manager at AWS, and Adnan Haque, Global Vice President at Marriott International, discuss the importance and benefits of migrating to the cloud.
  • Aaron shares his personal experience of reducing infrastructure costs from $0.35 to $0.10 per $1 of revenue by migrating to the cloud.
  • AWS has helped thousands of customers migrate, learning that migration assessments and using multiple AWS services can speed up the process.
  • The cost of doing nothing includes financial costs, reduced agility, higher security burdens, and difficulty in building resilient applications.
  • AWS offers variable expense models, elasticity, faster deployment, and a shared security model.
  • Adnan Haque shares Marriott's journey of digital and technology transformation, aiming to reduce fixed costs and adopt a pay-as-you-go model.
  • Marriott's cloud strategy focuses on enabling platforms, accelerating innovation, and differentiating technologies.
  • Key prerequisites for successful cloud migration include clear success criteria, a common vision, prioritizing work, and favoring simplicity.
  • Unanticipated benefits of cloud adoption include organizational transformation, talent upskilling, improved security, and resiliency.
  • Marriott has seen significant cost savings, reduced compute wastage, and improved product innovation cycles through cloud migration.

Insights

  • Cloud migration is not just a technical shift but also a catalyst for broader organizational transformation, impacting areas such as talent acquisition, financial operations, and business processes.
  • The journey to the cloud should be approached with a clear understanding of the organization's goals and what it is optimizing for, whether it's cost reduction, innovation, or other drivers.
  • Companies often face a transient cost surge during migration, which should be anticipated and communicated to avoid backtracking to on-premises solutions.
  • The use of cloud-native services and automation is crucial for realizing the full benefits of cloud migration, including security and resiliency.
  • Marriott's experience highlights the importance of having a bold vision for cloud migration, the willingness to deprioritize non-differentiating work, and the need to maintain a clean and rationalized cloud environment.
  • The talk emphasizes the significant financial and operational costs associated with inaction, reinforcing the value proposition of cloud migration for enterprises.