The shift toward cloud adoption for compute, storage, and networking is gaining strong momentum. According to Foundry's 2024 Cloud Computing survey of 893 IT decision makers, 63% anticipate increased cloud spending in the next year. A key motivator for 34% of respondents is the need to reduce the total cost of ownership (TCO).
For years, businesses of all sizes have turned to AWS for cloud migration due to the substantial cost savings compared to on-premises environments. This was recently validated by TechTarget’s Enterprise Strategy Group (ESG), which found organizations can lower compute, storage, and networking costs by up to 66% by migrating workloads to AWS cloud infrastructure.
AWS Offers Savings, Better performance, Efficiency, and Improved Customer Experiences
The ESG report combines insights from interviews with AWS users, extensive research, and a conservative economic model to show the potential savings and benefits organizations can achieve by moving to the cloud.
Migrating data and workloads from on-premises systems to Amazon Web Services can bring major benefits, such as cost savings on infrastructure, improved performance, greater efficiency, and better user experiences.
The report highlights that organizations using AWS cloud infrastructure benefited from faster time to value (TTV), better business agility, and reduced risks.
According to ESG, AWS customers maximized savings by using AWS services and monitoring tools to optimize costs. With flexible pay-as-you-go pricing and the ability to scale resources up or down as needed, ESG’s 3-year TCO model showed that AWS provided significant savings compared to traditional on-premises infrastructure, and found that customers experienced the following:
- 63% lower compute costs using Amazon EC2 with AWS Graviton processors, AWS Lambda for serverless computing, and cost-saving options like EC2 Auto Scaling, Savings Plans, and Spot Instances.
- 66% lower networking costs by reducing or eliminating on-premise networking gear and using AWS services like Cloud WAN and Direct Connect.
- 69% lower storage costs with Amazon S3 Intelligent-Tiering, S3 Glacier storage, EFS lifecycle management, and EBS SSD, compared to traditional storage systems.
The ESG report confirms the benefits of moving workloads to Amazon Web Services, like lower costs, better performance, and improved efficiency. Companies like Snap Inc. and FORMULA 1 have been enjoying these advantages for years.
Snap Uses AWS to Cut Storage Costs and Reduces Delays to Improve User Experience
Snap develops Snapchat, a popular visual messaging app with over 363 million daily active users who share and save photos and videos. While Snapchat originally focused on short-lived content that disappeared after a few seconds, it has since become a platform where users, known as Snapchatters, can choose to store media and memories for the long term.
As Snap's storage needs grew, the company needed to optimize storage without sacrificing performance or user experience. In 2016, Snap moved its data to AWS. "We chose Amazon Web Services for its global reach, great performance, and competitive pricing, which allowed us to reinvest in our business," says Vijay Manoharan, manager of Snap's media delivery platform team.
To cut the cost of storing permanent content, Snap started using Amazon S3 Glacier Instant Retrieval, which provides low-cost storage for data that is rarely accessed but needs to be retrieved quickly.
Snap seamlessly migrated over 2 exabytes of data—about 1.5 trillion media files—from Amazon S3 Standard-IA to Amazon S3 Glacier Instant Retrieval. "No customer noticed this massive migration, which was a big win for us," says Vijay Manoharan, Snap's media platform manager. The move saved Snap tens of millions on storage costs without impacting performance.
Snap also improved agility by utilizing AWS's global infrastructure. Previously, Snap’s centralized U.S. data center caused delays for international users. By moving to Amazon Web Services, Snap now uses data centers worldwide, reducing lag and improving communication speed for users. "Accessing data from centers in places like Frankfurt or Sydney ensures the fast experience our users expect," adds Jerry Hunter, SVP of Engineering at Snap.
Formula1 Uses AWS to Speed Up File Transfers and Cuts Costs on Complex Computing Jobs
Migrating to Amazon Web Services has saved F1 both time and money. According to Pat Symonds, F1's chief technical officer, using AWS has cut computational fluid dynamics (CFD) simulation times by 80%, from 60 to 12 hours, and reduced the cost of running CFD workloads by 30%. They expect savings to reach 40%.
F1, known for having the fastest regulated race cars, started moving its data and workloads to AWS in 2018 to improve performance and reduce costs. Before this, F1 used a traveling Technical Centre, storing data on local servers and transferring large files overnight for analysis the next day.
When F1 partnered with AWS in 2018, it aimed to speed up its processes. AWS Direct Connect provided the bandwidth needed for large data transfers, while AWS DataSync streamlined the transfer process between their Remote Technical Centre and file sources.
F1 also used Amazon Web Services's powerful computing for complex projects, such as redesigning cars to reduce the turbulent wake that affects speed and overtaking. To improve car design, F1 moved its CFD simulations from on-premises to AWS's high-performance computing platform, using Amazon EC2 C5n and Graviton2-based C6g instances for better scalability and faster simulations.
“We can now run huge models with over half a billion cells, thanks to Amazon Web Services,” says Symonds.
Conclusion
The ESG report states that organizations that moved to the cloud are glad they did, as it helps them improve their business through innovative data solutions.
To make cloud migration easier and faster, and ensure a smooth shift to a modern data architecture, organizations should choose the right cloud partner.
The report confirms that AWS is a trusted partner throughout the cloud journey, helping with migration, running hybrid environments, and modernizing data services to boost performance and savings. Amazon Web Services continuously innovates to give customers economic and operational advantages.
Source: AWS Blog
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