6. Which company…
…grew to 14 million users in just over a year
…reached 150 million photos & terabytes of data
…signed up 10 million users in 12 hours after launching an Android app
…with only 3 engineers?
16. “Amazon changed the VC industry. This is
mind boggling. That online book company. Not
any of the other large technology providers.
Amazon. 100% of the credit.”
Mark Suster, serial entrepreneur
and MD at GRP Partners
17. 1995 – .com
Technology Startups require physical hardware and
proprietary software to build their business
Typical Series A Spent on… Innovation
•$2.5M: marketing, •Not a lot, since
sales, etc. experimentation was
5-10M •$2.5M on costly
infrastructure
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
18. 2000: Rise of Open Source
Open source software drove technology costs down by 90%,
which spurred innovation in technology
Typical Series A Spent on… Innovation
•Less on Software – •A lot more, as
3-5M LAMP
•More on development
experimentation is
less costly now
•Still on infrastructure
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
19. 2005: Enter the Cloud
Public Cloud led by Amazon drove total operating
costs down significantly
Typical Series A Spent on… Innovation
•Staff – the battle for •Explosion in
500K- talent experimentation,
•Customer Acquisition innovation, and
3M Startups
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
20. 2007: Micro VC / Seed
Public Cloud led to explosion in the number of Startups
and the emerging of “micro VCs”
Angels Incubators VC‟s
Angels unite in „Super Boom in incubator GP-LP structured
Angels‟ for Seed programs, with micro funds to back early-
investments thru VC- investments, stage startups with
like setup mentoring, etc. $500k
E.g. Manu Kumar (K9), Ram Shriram E.g. TechStars, YC, The Morpheus, E.g. True Ventures, A16H,
(Sherpalo) The Startup Company First Round Capital
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
21. “Amazon Web Services is probably the most
important thing that has happened to mobile
and web app developers that the press just
misses. Jeff Bezos has accidentally or maybe
on purpose powered a whole generation of
applications.”
Steve Blank, author of “The Four
Steps to Epiphany”
23. TIME TO MARKET SCALABILITY COST & REVENUE
• Get to revenue • Demand is • Limited budgets
• Development unpredictable • Need to run lean
cycles too long • Spikey traffic • Focus on growth
• High cost of • How to scale up
experimentation & scale out
24. Experiment More & Develop Faster
Launch your infrastructure in a few clicks so you can Reduce
Time to Market
Pay only what for you use, with no commitment and lock in, so you
can Experiment More at Lower Costs
Leverage community support, SDK‟s, libraries, and more to
achieve Shorter Development Cycles
28. “AWS was the clear choice for us. They enabled us to
launch our cloud solution quickly with reliable, uninterrupted,
secure service to our customers.”
Jaspreet Singh, Founder & CEO
29. Full Elasticity for Maximum Scalability
Scale to 1000s of servers in minutes
Fully automate the process of scaling up & down
Add billions of objects with Amazon S3
Globally distribute petabytes of data
Select any level of desired throughput
30. “AWS is great for scalable requirements, whether you need to scale
up quickly, or even to scale down quickly, if required.”
Vishal Gondal, CEO of Indiagames
31. "Once we decided on Amazon
Web Services, it took us one
day to move all of our workload
on AWS Cloud. We couldn‟t
scale with our other providers
but with AWS, there is no
limitation.”
John Fearon, CEO
32. Reduce Costs & Grow revenue
Pay only what for you use, with no commitment and lock in, so
No Up-Front Capital Expense
Leveraging our large scale, we have reduced our prices 19 times
in the last years, leading to Low Costs
70:30 AWS removes undifferentiated heavy lifting – allowing you to focus
on your business and Generate Revenue
33. Pinterest attracted almost 18 million visitors in March, a 50%
increase from February (ComScore).
One of the fastest growing sites in the history of the web…
• 80 million objects stored in S3 with 410 terabytes of user data
• 150 EC2 instances in the web tier
• 90 instances for in-memory caching
• 35 instances used for internal purposes
• 70 master databases with a parallel set of backup databases
in different regions around the world for redundancy
34. • Pay for what you use = saving money
• Most traffic happens in the afternoons
and evenings, so they reduce the
number of instances at night by 40%.
• At peak traffic $52 an hour is spent
on EC2 and at night, during off peak,
the spend is as little as $15 an hour.
The difference is an amazing 71%
35. "With the time savings that the IT and development staffs obtain from
the solution, AWS gives us an overall cost benefit of about 30-40%.”
36. Agile Developing The Total Cost
Development for your of (Non)
on the Cloud Target Market: Ownership in
Social, Games the Cloud
& Mobile Apps
Architecting
your Killer
App on AWS
http://www.flickr.com/photos/scobleizer/3985020876/You created a great webapp and you're proud of it
Remember your great app ? Well, everyone loves it …
Oracle database licenses, UNIX servers, a Sun Solaris operating system, web servers, load balancers, EMC storage1-3 year fixed hosting agreements
LAMP stack:Linux (instead of UNIX), Apache (web server software), MySQL (instead of Oracle) and PHP. Open source became a movement. We paid 10% of the normal costs - for software support (e.g. Red Hat)
Started with Storage & Virtual Servers in the Cloud – then database, tools, etcRetail mentality – large volumes, low margins. Driving scale economies to lower prices continuouslyAmazon allowed 22-year-old tech developers to launch companies without even raising capital. Amazon sped up the pace of innovation because in addition to not having to raise capital to start I also didn’t need to wait for hosting to be set up, servers to arrive, software to be provisioned.
Angels: Manu Kumar (K9), Dave McLure, 500Startups, Ram Shriram, SherpaloIncubators: TechStars, Ycombinator, Morpheus, Startmate, Innovation Works, etc.VC’s: True Ventures, First Round Capital
TIME TO MARKETNeed to launch the business quicklyLong development cycles and high costsInability to experiment and test the hypotheses that underpin the businessSCALABILITYUnpredictable demandNeed to deal with spiky traffic or sudden increase in usersNeed to scale out to cover new markets / regionsCOST & REVENUENo CAPEX budget Inability to forecast demand & commit long term contractsNeed to run a lean business & focus on generating revenue
Pinterest - The cloud supports easy and low cost experimentation. New services can be tested without buying new servers, no big up front costs.
“Minimum Viable Product”Launch fast & iterate quicklyContinuous development - speed, user experience, reliabilityServer team of 3 managed 100+ billion files
Gartner 2012 Cool VendorWinning against companies like Box, with customers like PWC, Deloitte, Xerox, DHL, and NASA
Indian mobile and online games company that publishes and develops games across a variety of platforms, including online, TV, and mobileKey partners include UTV, Adobe, and Cisco Holds exclusive gaming rights for the Indian Premier League (IPL)Initially ran on own physical infrastructure but due to growth, was looking for a cloud solution to enable them to scale quickly with minimal costs. Hosts database and games like Cricket T20 Fever on t20fever.com on AWSPlans to release more social online games on AWS solutionsVishal Gondal, CEO of Indiagames:“We were able to reduce time to market for our games from weeks to days as the ability to procure infrastructure became an enabler, not a blocker to launching our products.”“AWS is great for scalable requirements, whether you need to scale up quickly, or even to scale down quickly, if required.”
■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.Andreessen Horowitz, Bessemer, etc.
■One of the fastest growing sites in history. Cites AWS for making it possible to handle 18 million visitors in March, a 50% increase from the previous month, with very little IT infrastructure. ■12 employees as of last December. Using the cloud a site can grow dramatically while maintaining a very small team. Looks like 31 employees as of now.
Indian travel agency that specializes in bus travel by selling bus tickets and offering software (SaaS) to bus operatorsSold > 2 million bus tickets and has >100 bus operators using the software to manage their operations. Previously ran its operations from a traditional data center by purchasing its systems & infrastructure. Currently uses Amazon’s…Elastic Compute Cloud (EC2) & Load BalancingRelational Database Service (RDS)Simple Storage Service (Amazon S3)Elastic Block Store (Amazon EBS)CloudWatch.
TIME TO MARKETNeed to launch the business quicklyLong development cycles and high costsInability to experiment and test the hypotheses that underpin the businessSCALABILITYUnpredictable demandNeed to deal with spiky traffic or sudden increase in usersNeed to scale out to cover new markets / regionsCOST & REVENUENo CAPEX budget Inability to forecast demand & commit long term contractsNeed to run a lean business & focus on generating revenue