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Best Practices for Building Partner

Managed Services on AWSKelly Hartman, Global Segment Leader, MSPs

Kyle Lichtenberg, Solutions Architect

In This Session…

• Managed Services: A Change Has Occurred

• Best Practices: View from AWS MSPs

• AWS: How we are Enabling this Delivery Model

Are Supported by

Cloud Operations

Enable Ongoing

Business Evolution

• Help customers reduce their

responsibility for managing/operating

applications & infrastructure

• Focus on continuous improvement

Are Proactive

in Nature

• Proactive Monitoring,

Management, Orchestration,

& Automation

How Does AWS Define Managed Services?

• SLAs that clearly define partner

obligations to the customer with

recourse if not met

Are Backed by

Contractual Terms

• People, processes, & tools to

support contractual obligations

Business solutions for customers that leverage the benefits of AWS and:

Managed Services

Then

• Automation of Incident Management

Systems

Now

• Distributed Ops with a Service Oriented

Architecture (SOA)

• Hardware-Based Solutions– CPE or Provider Owned

• Proactive SLAs– Based on Devices Under Management

• Centralized Operations– NOC

• Capital Outlay or OPEX Costs

• Engineering Resources Required Onsite

for Complicated Fixes/Equipment

Replacement

• Engineers Manipulate Software-Defined

Infrastructure to Resolve Issues

• Automation of Incident Management

Systems, Event Correlation, & Fixes

• Proactive SLAs– Based on Overall Solution/Application Performance

• Software or Cloud-Based Solutions

• Utility-Based Costs

What Does This Mean When Building or

Evolving to an AWS Managed Service

Practice?

Comprehensive Understanding of AWS Services and Features

Reset of Roles, Functions, and Processes to Support DevOps

You Need to Specialize

New Financial Models & Contracts

It Means….

Best Practices: View from AWS MSPs

First Audited and Approved MSPs

Joining Us…

Jamie BeginRightBrain Networks

Spencer ColsonSmartronix

Comprehensive Understanding of AWS

Services and Features

Compute Amazon Elastic Compute Cloud (Amazon EC2)

Amazon Elastic Block Store (Amazon EBS)

Elastic Load Balancing (ELB)

Networking Amazon Virtual Private Cloud (Amazon VPC)

AWS Direct Connect

Amazon Route 53

Databases Amazon Relational Database Service (Amazon RDS)

Amazon ElastiCache

Storage and Content

Distribution

Amazon Simple Storage Service (Amazon S3)

Amazon Glacier

Amazon CloudFront

AWS Storage Gateway

Application Services Amazon Simple Queue Service (Amazon SQS)

Amazon Simple Email Service (Amazon SES)

Deployment and

Management

AWS Elastic Beanstalk

AWS CloudFormation

AWS OpsWorks

Administration and Security AWS Directory Service

AWS Identity and Access Management (IAM)

AWS CloudTrail

Amazon CloudWatch

AWS Trusted Advisor

Mobile Services Amazon Simple Notification Service (SNS)

Reset of Roles, Functions, and Processes to

Support DevOps

Reset of Roles, Functions, and Processes to Support

DevOps

Specialize

Core Managed Service

Capabilities

Application Migration & Management

Hybrid IT Expertise

Custom Application Development for Managed Environments

Industry Expertise & Compliance

AWS Managed Service Program

Business

Capability

Identifiers

Technical

Capability

Identifiers

Data Management

Specialist

Application Development

Specialist

Mobile

Services Specialist

End User Services

Specialist

Third-Party Capabilities Validation Audit

New Financial Models and Contracts

Lifecycle Approach

Discover Plan Migrate Integrate Validate Operate Optimize

Traditional MSP

AWS MSP

Fixed managed services fee, included AWS spend

Pros:

• Traditional MSP sales model

• Margin found in gained efficiencies

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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($)

AWS Spend Managed Services Fee

Cons:

• Antithetical to AWS mindset

• Unexpected spikes will come out of partner’s pocket

AWS Spend % Uplift

Pros:

• Easy to explain, easy to sell

• Maps to the scaling nature of AWS

Cons:

• Can result in wildly varying costs not grounded in required support activity

• Partner disincentivized to drive down costs

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AWS Spend Managed Services Fee

Fixed managed services fee, pass-through AWS

spend

Pros:

• Best aligns with customer interests

• Predictable revenue stream

Cons:

• Billing can be complex in resell model

• Low margin requires tight management of separation of responsibilities

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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AWS Spend Managed Services Fee

How is AWS Enabling MSPs?

Enterprise

ApplicationsVirtual Desktop Sharing & Collaboration

Platform

Services

Analytics

Hadoop

Real-time

Streaming Data

Data

Warehouse

Data

Pipelines

App Services

Queuing &

Notifications

Workflow

App streaming

Transcoding

Email

Search

Deployment & Management

One-click web

app deployment

Dev/ops resource

management

Resource

Templates

Mobile Services

Identity

Sync

Mobile

Analytics

Push

Notifications

Administration

& SecurityIdentity

Management

Access

Control

Usage

Auditing

Key

Storage

Monitoring

And Logs

Core

Services

Compute(VMs, Auto Scaling

and Load Balancing)

Storage(Object, Block

and Archival)

CDNDatabases(Relational, NoSQL,

Caching)

Networking(VPC, Direct

Connect, DNS)

Infrastructure Regions Availability Zones Points of Presence

AWS Managed Service Program Validation Checklist

AWS Managed Service ProgramRequirements & Benefits

Eligible for Free AWS

Usage Credits for

Development

Eligible for Free AWS

Usage Credits for

Customer Proof of

Concepts

Eligible for FastTrack

Funding Package

Access to NDA Roadmap

Webinars

Managed Service Partner

Logo

Co-Participation at AWS

& Industry Events

Sales Team Showcase

Eligible for Marketing

Funds, Programs, &

Campaigns

Placement in the AWS

Partner Directory as an

AWS Managed Service

Partner

Eligible for AWS ProServ

Engagements &

Workshops

Access to MSP Best

Practice Guides,

Whitepapers, & Resource

Library

Eligible for Additional

AWS Training Subsidies

Reduced Price

Certification Boot Camp

Class and Free Practice

Exam Voucher

Get Started Today!

Visit the AWS Managed Service Program Webpage & Sign Up for

MSP Communications

www.aws.amazon.com/partners/managed-service/

Visit the APN Portal “Managed Service Provider” Tab

https://www.apn-portal.com/apex/SiteLogin

Visit the AWS Training and Certification Center

http://aws.amazon.com/certification/

SAN FRANCISCO