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Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services

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Document #US43535718 © 2018 IDC. www.idc.com | Page 2 IDC White Paper | Fostering Business and Organizational Transformation to Generate Business Value with Amazon Web Services • Offering reliable and high-performing applications that lead to operational efficiencies in the form of higher user productivity and fewer business disruptions, with an average of 94% less productive time lost to these outages with AWS • Instilling IT and business operations with the agility required to deliver cost-effective IT resources on an on-demand basis to address business opportunities as they arise, with interviewed organizations delivering almost three times more new application features with AWS, helping them win more business and increase revenue SITUATION OVERVIEW Introduction Using lessons learned from ecommerce where fluctuating demand for computing resources is common, Amazon kicked off the Amazon Web Services initiative in 2006. Service-oriented architecture (SOA) gained popularity in the mid-1990s to reduce the complexity of software by breaking them up into components delivered as services and connected through common standards. The SOA experience that predated the AWS launch gave Amazon an advantage in building a distributed services architecture offering that fits very well with end-user needs. Using customer feedback, the services offered by AWS have expanded from the initial portfolio that delivered base infrastructure services to higher-end services that are all based on a highly available infrastructure delivered in an abstracted and automated fashion. AWS also provides customers with multiple migration tools to assist them to move compute and database workloads to the public cloud. The success of Amazon is demonstrated by Amazon moving from number 29 on the Fortune 500 list in 2015 to number 12 in 2017. Business Challenges Today Business processes enabled by cloud technology are moving from gains made by continuous improvement through digitization to increased automation of IT processes. The combination of lower-cost cloud-delivered hardware and agility from open source application development tools is leading to much lower infrastructure and labor costs. As a result, businesses that fail to take advantage of technological innovation often struggle to maintain their competitive advantage as technology innovation and competitiveness through automated processes are tightly linked. By taking advantage of cloud services, organizations can increase agility while decreasing their cost and risk. To surpass competition, today's CEO has to handle the complex task of digitally transforming the entire organization leveraging technology changing at a much faster pace than any time before. With the advent of cloud computing, automation through IT is at the forefront in helping corporations make this transition successful.

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