If you’re at all familiar with cloud computing, you know Amazon Web Services is a giant – but just how big is AWS? There are a number of measures of the size of a cloud business like Amazon’s –– here are answers to just a few of those questions.
How big is AWS’s staff?
While numbers for employees of Amazon as a whole are reported in the company’s quarterly earnings reports (630,600 as of Q1 2019), the number of those under AWS is less clear.
AWS has just over 40,000 employees listed on LinkedIn, but of course, that’s not the most accurate measure. By eyeballing the operating expenses reported for the AWS segment compared to Amazon’s business as a whole, you could estimate up to 62,000, but it’s likely lower than that. As of this writing, AWS has 12,280 full-time job openings listed on their website, while Amazon as a whole has 32,454 openings.
We’ll be interested to see how this is affected by HQ2 joining ParkMyCloud’s neighborhood in Northern Virginia later this year.
How big is AWS’s infrastructure?
AWS has 66 availability zones within 21 geographic regions around the world. Each availability zone consists of one to dozens of individual data centers. To visualize these data centers, check out AWS’s exploration of them here.
How big is AWS’s list of products?
When we last counted in April, there were 170 unique services listed on AWS’s offerings page, and there could certainly be more by now. These range from core compute products like EC2 to newer releases like AWS Deepracer for machine learning. Look for a spike in this count after AWS re:Invent in early December, as the cloud provider tends to save up announcements for its yearly user conference.
How big is AWS re:Invent?
In 2018, AWS re:Invent pulled 52,000 attendees, and AWS estimates a crowd of 62,000 for 2019, each year taking up a large portion of the Las Vegas Strip.
In comparison, Microsoft Ignite expects 25,000 attendees this year, Google Cloud Next estimated 30,000 attendees, and VMworld estimates 21,000 attendees. Then again, Salesforce’s Dreamforce 2018 drew 170,000 attendees, and Consumer Electronics Show (CES) reports 175,212 attendees for 2019. So while AWS re:Invent may be large for a cloud-specific conference, it’s not quite a giant as far as tech shows go.
How big is AWS’s market share?
When looking at public cloud, it’s clear AWS still holds the largest portion of the market. A recent report put AWS at 47% of the market, with the next-closest competitor as Azure at 22%. More about AWS vs. Azure vs. Google cloud market share.
How big is AWS’s revenue?
For Q1 2019, AWS reported sales of $7.7 billion, showing consistent growth and the largest of any of the cloud service providers. For the full year of 2018, AWS reported $25.7 billion in revenue – that’s more than McDonald’s. Additionally, AWS has $16 billion or more in backlog revenue from contracts for future services. It is a growing proportion of Amazon’s business. In fact:
How big is AWS as a portion of Amazon?
In first quarter reports, AWS contributed about 50% of Amazon’s overall operating income, with an operating margin of 29%. Overall, AWS is growing as a contributor to Amazon’s income and growth. More here.
So how big is AWS? It’s up to you how you want to measure, but suffice it to say: big.
Google Cloud recently released a new pricing option: Google Cloud capacity reservations. This new option intended for users with anticipated spikes in usage, such as over holidays or planned backups. It also expanded its Committed Use discount program to apply to more types of resources.
Manish Dalwadi, product manager for Compute Engine, said in Google’s announcement of these releases, “you shouldn’t need an advanced degree in finance to get the most out of your cloud investment.”
We’ve noted Google Cloud’s positioning as “best in customer-first pricing” in previous articles on Sustained Use Discounts and Resource-Based Pricing. However, the new options – particularly capacity reservations – may not be the best example of this.
How Google Cloud Capacity Reservations Work
Google Cloud capacity reservations are a bit different from options we see at the other major cloud providers. They are not a cost-savings plan like the AWS and Azure’s “reserved instance” programs that allow users to pay upfront for lower prices. Instead, they actually reserve capacity, to ensure it’s available when you need it. Use cases include holiday/Black Friday demand, planned organic growth, and backup/disaster recovery.
VMs you have reserved in advance will be billed at the same rate as on-demand. However, other discounts may apply. As you consume reserved VMs, you’ll also get the benefit of any applicable Sustained and Committed Use discounts.
One potential issue is that once you make a reservation, you will continue to consume and be charged for the resources until the reservation expires or you delete it. By default, any instance that matches the reservation configuration will be allocated against the reservation. On the one hand, this can prevent you from having to pay for reserved capacity above what you are using, but this may actually defeat your purpose of trying to have additional guaranteed capacity available. To guarantee the extra capacity for a specific instance even if it is stopped (or “parked” as we like to say), you will need to explicitly set an option when the instance is created. Note that you will still be paying for the reservation if you do not have any running instances that match the reservation.
Another caveat is that “a VM instance can only use a reservation if its properties exactly match the properties of the reservation.“ In other words, you cannot buy a bunch of small reservations and expect that they can be combined into a big reservation, like you can do with certain types of reserved instances from the other cloud providers. This is consistent with the idea of a capacity reservation, rather than a discount program, and is worth keeping in mind.
This is a new avenue for customers to easily commit themselves to spending on resources they may not actually need, so we encourage you to evaluate carefully before reserving capacity and to keep a close watch on your monthly bill and review the cloud waste checklist.
More Committed Use Discounts
Alongside the capacity reservations, Google also announced an expansion of Committed Use Discounts to include GPUs, Cloud TPU Pods, and local SSDs.
Ultimately, Google Cloud pricing fares well on measures of user-friendliness and options for cost savings, but we question if the reserved capacity changes will do anything to improve the readability of the bill. On the other hand, the expansion of Committed Use discounts does provide more savings-in-hand options for customers.
Take a few minutes to ensure you’re not oversizing or spending money on resources that should be turned off, and you’ll be well on your way to an optimized Google Cloud bill.
We recently chatted with Ben V., Network & Communications Specialist at a global company, about how his team uses ParkMyCloud for Azure cloud management.
Hi Ben, thanks for chatting with us. So tell me about what you and your team do within the company.
I’m a Network & Communications specialist on a team of four. We manage the infrastructure that end developers throughout the company use. For us, that’s Microsoft Azure.
So what made you realize there was an Azure cloud management need in your organization?
When I started working here, I saw that the Azure environment was running 24×7, including development resources. Specifically, we’re using Microsoft Dynamics which comes with a hefty parameter that uses a lot of resources.
When I saw the high bill, at first I actually looked to see what Azure offers. Azure does offer a piece of it. You can log in and shut down the servers. You can set schedules to shut down machines, but they often wouldn’t turn back on, you have to manually turn them back on. And not all our developers have permissions to go into Azure to turn on and off the servers.
So, I started looking for a solution to solve this problem. A friend of mine who I have worked with over the years told me about ParkMyCloud, so I looked into it and started a trial. I looked around at other solutions, and to me, this one just stood out as the best solution to the problem.
What was your initial experience using ParkMyCloud like?
Once I got it set up, we saved more than $6,000 the first month alone just by being able to turn off all of the servers that were constantly running during weekends and at night on weekdays when a lot of the developers weren’t even touching it or using it.
And then we gave developers access to override schedules during the weekend in case they needed to work. That was even better because when they had to ask permission it would cut into my time as well.
How much are you saving using ParkMyCloud?
We have been using ParkMyCloud for over a year now, and we’ve saved about $75,000. The great thing is, it’s a very reasonable cost for us for a huge amount of savings.
What other benefits have you gained while using the product?
We hit the jackpot due to the fact that it gave us the ability to set schedules and the ability to assign different developers to teams so they can log in and can override a schedule for 12 hours or whatever they need it for. Now we’re not having to constantly log into the Azure environment and deal with it that way. It saves my time.
It makes it easier to deal with the developers to save costs. We have some third-party developers, and it’s nice to be able to separate their permissions and give them access to as few servers as possible. We have a global employee base, so we set schedules based on developers’ locations. Most of our staff schedules for resources to run only Monday to Friday, 7 am to 7 pm on average, and off nights and weekends.
Through ParkMyCloud’s utilization data and recommendations, we also found environments running that hadn’t been accessed in weeks, so we turned those off right away.
Are you using anything else for Azure cloud management?
No, we haven’t found the need for any tools in addition to ParkMyCloud.
Do you have any other feedback for us?
The product is great! Anyone I know that is using Azure, I always tell them about the product. It’s such a great way to save money and for the overall cost – you can’t beat it.
Your team has also been very easy to work with and customer service has always been great. I’ve done different types of IT through the years and I can tell you, customer service can go a long ways, so that’s a big plus.
AWS CloudWatch is Amazon Web Services’ primary monitoring tool for your cloud environment. Whether you are aware of it or not, if you use AWS, your data is being collected in CloudWatch, on more metrics than you probably know what to do with. With a small amount of effort, however, you can make this data work for you to reduce costs, automatically.
What AWS CloudWatch Data Tells You
First of all, is AWS CloudWatch collecting data about your utilization? Almost certainly, the answer is yes. As an example, here are some of the metrics that are collected by default for EC2:
Like many AWS services, AWS CloudWatch has a free tier that covers the needs of many applications. You’ll need to pay more for custom metrics; extra dashboards, alarms, and logs; and custom events.
Also worth keeping in mind is that data is kept historically, based on the data resolution. Data points with a period of 60 seconds are kept for 15 days, although shorter periods are kept for as short as 3 hours, and longer for up to 15 months.
What to do with all this data? First, set up your AWS CloudWatch dashboard(s) and create alerts on the metrics that are important to you. The next step is to use this data for automated optimization of your environment.
How to Turn That Data into Automated Cost Savings
Most organizations using public cloud are wasting thousands or even hundreds of thousands of dollars on cloud resources they’re not actually using. Even if you’re aware of overspend, you may not think you have the time or bandwidth to address the issue. With automation, integrating cost control into your daily processes can be straightforward.
One ParkMyCloud customer, Kurt Brochu of Sysco Foods, once told us, “To me, the magic is that the platform empowers the end user to make decisions for the betterment of the business.” His team has achieved a lifetime ROI of 1400% using ParkMyCloud. AWS data and ParkMyCloud’s automation capabilities empower his users to identify what spend is necessary, and what can be optimized.
Learn how – by hearing from Kurt directly!
We’re joining together with him and AWS to discuss how to empower your team to use AWS CloudWatch data to optimize cloud costs. The webinar is now complete – watch a replay here!
The webinar will give you an understanding of:
What Amazon CloudWatch and AWS Trusted Advisor data is available that can help you save money
Real-world examples of cost savings
Potential data availability challenges and “gotchas” and how to address them
How ParkMyCloud’s automated cost optimization platform can use your utilization data to optimize costs
The latest update to ParkMyCloud is support for AWS China! In the latest release of the platform, we added support for the two Amazon Web Services (AWS) regions in China, expanding our cost optimization coverage for more public cloud users.
After the United States, China has the second-largest public cloud market at $10.5 billion in 2019, according to IDC. Gartner reports that in Asia as a whole, Alibaba Cloud – which ParkMyCloud also supports – holds 19.6% market share, while AWS has 11% of the market. All of that spend needs to be optimized so that it does not contribute to the billions of dollars that are wasted every year on unnecessary resources.
About ParkMyCloud AWS China Support
AWS offers two regions in China, AWS China (Beijing) and AWS China (Ningxia), which are operated by local providers – Sinnet and NWCD, respectively. In order to get an AWS China account, AWS customers must create a separate set of credentials, which require a valid Chinese business license, as Chinese law forbids non-Chinese companies from owning or operating certain technology for the provision of cloud services.
ParkMyCloud now supports both of these regions, offering the same benefits that other, AWS, Azure, Google Cloud, and Alibaba Cloud customers enjoy:
Machine Learning. Resource scheduling and resizing based on recommendations leveraging resource utilization history.
Automate. A robust policy engine automates schedule and sizing actions based on user tags, and adds resources and users to teams for simplified governance.
Easy to Use. No scripting, no agents, and a 15-minute setup. Simple UI can be used by anyone, with options for API access and integrations as needed.
Take Action. Users can control resources and get notified with ChatOps bots in Slack, Microsoft Teams, and Google Hangouts.
Save Time. Automated policies require little upkeep for savings. Keeps teams focused on creating value for their businesses.
Save Money. Save an average of $12 for every dollar spent on ParkMyCloud. Plans start as low as $2/resource/month.
What Else is New?
Most notably, last week we released RightSizing Automation for AWS and Google Cloud Platform. This new capability gives you recommendations for sizing changes on your resources to optimize costs – which can save up to 75% per resource.
Other recent highlights for AWS users include:
AWS GovCloud Support – cost optimization support for the two US GovCloud regions available for government and others in highly regulated industries.
AWS Marketplace availability – gives AWS customers the option to add the cost of ParkMyCloud to their regular AWS bill with a simplified purchasing process.
Resource Utilization Graphs – see line graphs and heatmaps for usage data including CPU, network, and memory on various metrics – all of which is used in SmartParking recommended schedules to optimize your on/off times based on your utilization data.
First, you’ll need a ParkMyCloud account if you don’t already have one. You can get started with a 14-day free trial.
Then, whether you’re a new or existing ParkMyCloud user, you will need to connect to your AWS China account via an IAM User credential rather than the normal IAM role. This is because AWS China runs in the dedicated “aws-cn” partition and ParkMyCloud runs in the “aws” public cloud partition, and AWS does not support cross-account IAM Roles between partitions. Since IAM User credentials are normally disabled within ParkMyCloud, you will need to request IAM User access by contacting ParkMyCloud Support by email or by entering a ticket using the Support link in the Console.
What other public cloud services would you like to see ParkMyCloud support? Let us know in the comments below!