Cloud Comparison:

Google Cloud Platform

vs.
Amazon Web Services
Overview
1. State of Public Cloud
2. Strengths & Key Workloads
3. Cost Comparison
4. Customer Perspectives
... spending on cloud computing
infrastructure and platforms will
grow at a 30% CAGR from 2013
through 2018 compared with 5%
growth for the overall enterprise IT.
Louis Columbus, Forbes
 Market Demand Themes
Why How Public Cloud?
Firms are no longer asking if or why they should adopt the cloud,
but rather how. The concerns of the early 2010s regarding security,
reliability, and privacy of hosted data have widely been debunked -
public cloud vendors proven both that the cloud technology is safe
and scalable, but that data will rarely be handed over to governments.
And the need to build for scale (for example, the ability to support
growth for viral apps) has become a key piece of building new
systems as opposed to the historic approach - reiterating with scale.

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 Public Cloud Competition Overview
Amazon Web Services (AWS)
Most significant advantage is first to market (CRN)
Took excess compute power from ecommerce site and made it
available to consumers
Great for some workloads (Cloud 1.0 -- more on this later)

Google Cloud Platform (GCP)

Google coined the term Cloud (Google Press)
Leveraging cloud technology internally as early as 2005
Launched GCP to expose technology previously used internally for
indexing and searching the Internet to consumers (Google)

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 What Makes a Good Cloud Provider?
Infrastructure above all
Public cloud vendors are able to provide a viable offering due to heavy
infrastructure investments. Without the massive scale of infrastructure
and constant growth, public cloud provider capabilities would be similar
to a hosting company.

Innovation
Cloud no longer refers exclusively to cost savings or outsourced
hosting. The new paradigm (Cloud 2.0) changes how things are done, not
where theyre done, and allows the IT organization to act as a strategic
enabler (Frost and Sullivan, Cloud User Survey Results 2015). Without
constant innovation, new methods of building and deploying in the cloud
will overtake less progressive offerings.

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 Google Cloud Platform (GCP)

Customer Profile Costs

Key Workloads Value Props

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 GCP Key Workloads
Developer-centric applications

Great for high compute workloads

Data analytics
Petabyte scale data processing
Burst computing
Per-minute billing can provide significant cost advantage

Flexible scalability
Googles App Engine allows for building a full application without restriction
at no cost, with costs applied as usage increases past a minimum threshold
Due to Googles global infrastructure, scaling is fastest on the market
(Gigaom)

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 Demand Differentiation
Machine learning everything
BYO TensorFlow model + run on Cloud ML
API economy
Early commit to ML community

Serverless auto everything

XaaS
Cloud Functions, PubSub

Smarter IaaS
Kubernetes community commitment
Google Container Engine

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 GCP Customer Profile
Chief Information Officers
IT leaders looking to move from the status quo to cutting
edge technology

Developers
Tech-savvy professionals that enjoy working with the next
generation of computing technology

Data Gurus
Business professionals that use data to make informed and
forward-looking decisions

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 GCP Value Props
Deployed correctly, applications can be 10-100x less
expensive than on traditional infrastructure (SADA Systems,
Wall Street Journal)
GCPs focus on Cloud 2.0 allows legacy firms and startups
alike to reimagine computing strategies
Technology invented at Google is defining current cloud
developments
Google has been innovating and leveraging cloud technology for
over a decade; GCP is simply exposing that to the public. Assets
such as YouTube and Google.com required Google to build a
strong worldwide physical presence, resulting in a significant
advantage for GCP customers.

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 GCP Costs
Googles scale contributes to an unparalleled level of flexibility in
terms of pricing (Google). Google has continuously made statements
about adherence to Moores Law of pricing - releasing regular price
cuts in accordance. Due to App Engine alone, the cost of running
most web applications can be dramatically less expensive vs.
competition.

Google pricing: Pricing innovation:

No upfront costs Sustained use discounts
Pay as you go Preemptible VM instances
No termination fees Per minute billing
Coldline
Custom machine types
Committed use discounts
Rightsizing recommendations

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 Summary of GCP Strengths
Regularly abstracting computing
Urs Hlzle is SVP of Technical Infrastructure, Google Fellow at
Google and authored the book The Datacenter as a Computer, a
state of mind which resonates with all pieces of GCP

Developer-centric
Providing tools needed to build the next generation of applications
Still appeals to the bottom line with Moores Law price cuts

Cutting edge technology will differentiate from competitors

Preemptible VMs
Big Data products
Big Data as just data, a reflection of Googles internal perspective

Firms are adopting Googles innovation and leveraging its

tactical advantages

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 Amazon Web Services (AWS)

Customer Profile Costs

Key Workloads Value Props

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 AWS Key Workloads
AWS provides a centralized place to run applications as they
existed in the past

SMB use for administrative tasks

Shared drive
Central workstation for running accounting reports
Significant Windows presence in this space

Basic compute
Running a website (though not a web app)
Running Hadoop or similar
Storage and backup

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 AWS Customer Profile
Many businesses use AWS because its what they know. AWS may
have been earlier to the cloud, but its more fitted for IT professionals
looking for the status quo. Early adopters of Cloud are primarily
using AWS, as it was the only option available for years. While AWS
may seem like a safe option to these customers because they have
been around for a while, AWS has not come without notable outages
such as the Netflix outage in 2012 and the most recent outage on
February 28th, 2017.

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 AWS Value Props
Familiar
Standard processes in a data center or colocation
Connect to systems using tools and protocols familiar to the enterprise
Comfortable to early cloud adopters

Managed
AWS engineering keeps the lights on so you can sleep at night
Some automated issue mitigation

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 AWS Costs
Cloud pricing strategy changes regularly
Essentially set the standard for Public Cloud
First in the space
-- Observed and improved as a result of years of iteration
prior to market maturity
At present, most workloads cost more on AWS than on GCP

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 Customer Perspective

Workloads Competition

Purchasing Hybrid-, Multi-,

Options or Public Cloud?

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 Differences in Purchasing
Cloud pricing is primarily pay-as-you-go
Possible challenge for traditional IT budgets
GCP offers a sustained use discount (Google)
At the end of each month, greater VM usage results
in greater percent discount applied
Google has permanent billing
Pricing calculator to estimate costs
No pre-commit required
AWS offers Reserved Instances (RI) (AWS)
Allows for pre-commit to a year or more of usage for
a lower fixed cost

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 Pricing Comparison

In early 2016, AWS reduced prices by up to 5% for certain cloud configurations

Google tested and compiled data showing that comparable GCP instances
are still between 15 percent and 41 percent less expensive than AWS

GCP is x% Less
AWS Instance Type Monthly $ GCP Instance Type Monthly $
Expensive

M4 Standard $87.60 Custom 2 core, 8gb $54.82 37.42%

R3 HighMem $121.18 n1-standard-4* $102.20 15.66%

C4 HighCPU $76.65 Custom 2 core, 3.75gb $44.66 41.74%

*This is a snapshot of one day of pricing. Fluctuations in price may occur.

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 Cloud (un)Friendly Workloads
Friendly
Applications which must handle large fluctuations in traffic
without sacrificing cost or performance
High compute workloads such as rendering or modeling genomes
Applications which are always-on and cannot afford downtime or
performance degradation

Unfriendly (This list is shrinking!)

Applications which serve local offices or areas which otherwise
have no access to the Internet

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 Hybrid, Multi-, or Public Cloud?
Hybrid Cloud may eventually dissolve as Public and Multi-Cloud
are adopted
Multi-Cloud is a great way to protect against a failure of an entire
cloud provider
Netflix went down on Christmas 2012 due to a global failure of
the AWS Elastic Load Balancer service (Netflix Press), making a
better case for a multi-cloud environment

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 Encroaching Competition
IBM
Though a long time player in the computing industry, they came late to
the cloud party
The newest technologies such as Watson are showing signs of innovation
along the lines of Cloud 2.0 changing how firms work, not just where

Verizon
Recent emergence in the Public Cloud space has gained much attention
Holds a unique position to profit from the boom of IoT due to wireless
communication networks in tandem with Cloud 2.0 offerings, though the
latter is still to be seen

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 Key Takeaways
GCP focusing on key strengths
High compute, containerization (developer focus), a NoOps
environment and extremely low pricing
Future-proof infrastructure
Powerful data & Analytics
Serverless, fully managed computing
Security at scale

AWS growing capacity to maintain market position or fear loss

to more specialized vendors
AWS will continue to retain its customers due to existing reach
if it can keep up with innovation in the market -- AWS started
as a very different type of tech company vs. others

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 Recommendations
The general recommendation for organizations looking to
leverage the cloud is to engage an implementation partner
to streamline transition and provide additional customization
and optimization. SADA Systems, a Premier Google Cloud
Partner and global leader in cloud and IT consulting, offers
a free cloud assessment for organizations looking to explore
the impact of the cloud.

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 Free Google Cloud
Platform Assessment
Questions? Email us at
googlesales@sadasystems.com

@GoogleCloudNews @SADASystems

818.927.3660 googlesales@sadasystems.com