aws executive insight event – frankfurt: january 25 – 26, 2017

Culture of Innovation –Thinking BackwardsWith AmazonRalf Kleber

Country Manager Amazon Deutschland

Frankfurt, February 2017

Invention comes in many forms and at many scales. The most radical and transformative of inventions are often those that empower others to unleashtheir creativity – to pursue their dreams.

Jeffrey P. BezosFounder and Chief Executive OfficerAmazon.com, Inc.

TheInstitutional

YES!

OUR MISSIONwe want to be earth’s most customer centric company

TheInstitutional

YES!

OUR COMMITTMENTwe make our customers’ lives easier

EARTH’S BIGGEST SELECTION the store where customers can buy what they want, not what the store offers

Prime Memberships as % of Households

13Amazon Confidential

TheInstitutional

YES!

TheInstitutional

YES!

WHERE INNOVATION STARTSwe start with the customer and work backwards

TheInstitutional

YES!

»Customer Obsession“Start every process with the customer and work backwards.”

»Long Term Thinking“Be stubborn on the vision but flexible on the details.”

» If you want to be inventive, you have to be willing to fail.“We are willing to go down on a bunch of dark alleys and occasionally we find something that really works.”

»You have to be willing to be misunderstood for a long time.“We are very comfortable being misunderstood.”

Our culture of innovation

Every one of us is a leader on our mission

TheInstitutional

YES!

STUBBORN ON THE VISIONbut flexible on the details

amazon vertraulich

TheInstitutional

YES!

WILLINGNESS TO BE MISUNDERSTOODfor a long period of time

amazon vertraulich

TheInstitutional

YES!

WORKING FROM THE CUSTOMERbackwards

TheInstitutional

YES!write the press release

TheInstitutional

YES!write the FAQ

TheInstitutional

YES!define the user interaction and write the manual

TheInstitutional

YES!

*NOT* BEHIND THE SCENESwe do make mistakes

TheInstitutional

YES!

TheInstitutional

YES!

THANK YOUdankeschön

THE ROLE OF LEADERSHIP IN DRIVING AGILITY AND INNOVATION

Dr.-Ing. Rainer KallenbachCEO Bosch Software Innovations GmbH

Bosch Group: Technology to enhance quality of life

Bosch Software Innovations GmbH | INST/P | 12.01.2017© Bosch Software Innovations GmbH 2017. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution as well as in the event of applications for industrial property rights.2

Four business sectors Key Facts (2015)

manufacturing sites223

associates incl. 55,000 in R&D375,000

in sales€70.6 billion

Consumer Goods

Industrial Technology

Energy andBuilding

Technology

Mobility Solutions

Bosch Software Innovations GmbH -IoT Software and Systems House

> 750 IoT experts

in 10 global locations

Bosch Software Innovations GmbH


We help you on the way into IoT….… to your new services & solutionsFrom your idea …

Identifying & developing IoT

business opportunities

Creating a working prototype to

evaluatetechnical feasibility

Agile development of solutions for the

mass market

Fast realization of minimum viable products to test

product ideas and get early customer

feedback

Defining core requirements and

creating a visual modelon functionality, user

experience, and business value

Solution hosting including first,

second and third level support

IoT businessmodel

Minimumviable product

Cloud Hosting and operations

SolutionDevelopment

Consulting Proof ofconcept

THE INTERNET OF THINGS:FUNDAMENTAL CHANGESIN OUR BUSINESS

The Internet of Things


We are living in a highly connected world …

World population People with internet access

0.04 billion 0.75 billion > 6.6 billion

Connecteddevices

1995

of 5.7 billion people...... 0.7% are online

2005

of 6.5 billion people...... 15% are online

of 7.3 billion people...... 75% are online

2015

Web 3.0/4.0 “Internet of Things”interconnecting also objects of everyday use to create- Industry 4.0- Connected Mobility- Smart Home …

Web 1.0 “Classic Web” connecting enterprises/ organisa-tions with people, rather static- Homepages- E-Commerce ≈1990

Web 2.0 “Social Web” interconnecting also people, dynamic interaction between common users- Blogs, Social Communities- Platforms like Facebook,

Twitter, YouTube… ≈ 2005



Vision: Connected World

Industry Mobility Smart HomeEnergy Smart City



Enabler: miniaturized, low power sensors “Moore’s Law” in MEMS*:

*MEMS: Micro electro-mechanical systemsSource: Bosch Sensortech, www.bosch-sensortec.com

200620102007 2013

2005 2006 2007 2010 2013

Bosch Sensortec 1st

with 1.2 x 1.5 mm2

Bosch Sensortec 1st

with 2x2 mm2

Bosch Sensortec 1st

with 3x3 mm2

Continuously shrinking size / footprint reducing power consumption

Bosch – world’s leading manufacturer Producing sensors on industrial scale

since 1995 Six billion MEMS sensors produced 100% in-house from MEMS design to

manufacturing



Nobody can do it alone: Bridges between different worlds required This is not only a technical task: different business, development

and operational paradigms need to be brought together

Cloud technology playing a central role as enabler

Web

2.0

People

Mobile Devices

EnterprisesEnterpri-se(s)

Things

„Embedded Systems“ „Enterprise IT“ „Consumer IT“

SaaS: IoT ApplicationsPaaS: i.e. Bosch IoT SuiteIaaS: Cloud Infrastructure Operations

„IoT Cloud(s)“



Giving birth to new services

Complement and strengthen traditionalhardware product business

Grow with potentially disruptivebusiness models

Higher margins and differentiation throughproduct-related services

Will everything become a service?

Margin

Time

Service

Product

Thing

Thing-basedFUNCTION

Connectivity[HW | SW] [Physical | Local]

DigitalSERVICE[Digital | Global]

Prof. Elgar Fleisch, 2010



Digital Service Challenge: “Software is eating the world” [Marc Andreessen, 2011]

Facebook is the world's biggest and

most up-to-date registration office

–without legal regulation.

Airbnb is the world's biggest hotel chain

–doesn't own a single room.

Amazon is the biggest book store

–without a single

bookshelf.

Pixar has won16 Oscars

–never employed

an actor.

Uber is the biggest cab operator

–doesn't operate a

single car.

TAXI



From Physical Products to Digital Services

Hybrid Product Scheme: Prof. Elgar Fleisch, 2016

Example: EV Charging



New Business Chances for BoschConnected Energy and Building

Connected Industry & Logistics(“Industry 4.0”)

Connected Home

Connected Mobility



Success Factors in a Networked EconomyCloud

Connectivity

Software

Eco-systems

Horizontal Integration

Open Source

Agility

Strong Customer Relations

Cultureand

Leader-ship

Fast Innovation

Cycles Develo-pers

Tech Know How

New Business Models

HOW DO WE PREPARE AT BOSCH ?

Bosch in the Internet of Things


Bosch is active on three layers

One Bosch IoT platform connecting ALL domains: mobility, home, industry, energy

New Services & Applications

Divisions

Smart Things

Divisions

IoT Middleware & Cloud Platform

Bosch Software Innovations

Bosch IoT Cloud



Cloud-based microservices make complex IoT applications easy

SaaS

IaaS

PaaS

Storage Network SecurityCompute

Connected home & building

Connected mobility

Connected cityConnected energy

Connected industry

Marketplace

Bosch IoT Cloud Base Services

Things Rollouts Remote Manager Hub

Integrations AnalyticsPermissions Rules



Innovative cloud-based solutions across all domains

WHAT DOES THIS MEAN FOR LEADERSHIP ?

New Organisations for Innovation and Agility


Some Bosch ExamplesBosch Software Innovations

GmbH www.bosch-si.com

Bosch Connected Devices and Solutions GmbH www.bosch-connectivity.com

Bosch Start-up GmbHwww.bosch-startup.com

Bosch Venture Capital GmbHwww.rbvc.com


Fast = Central

Hierarchy = Fast

Yesterday …

© Robert Bosch GmbHSpark plug production, 1920


Today …

Iterative

Flat© Robert Bosch Software Innovations GmbHAgile Software Business, 2016



Agile DevOps Teams 2 Leaders instead of oneBusiness Responsibility at

working levelSpeed & FreedomDecisions regarding

Technology and TeamPerformance always

transparent and visible



The Role of Leadership in an Agile Organisation



Agile Leadership & People are Key for Success

collaboration

empowered

leadership

organization

trust interactionadaptRespon-

sibility

speed

teams

self

changeto

learn frommistakes courage

THANKYOU

Dr. Rainer Kallenbach

[email protected] +49 711 811 33045

www.bosch-si.com

© 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.

Taimur RashidDirector, AWS Platform Business Development

January 26th, 2017

The Importance of Innovation & Culture

Innovation is Everywhere

Amazon is innovating across many domains

Drone Development

Advanced Shopping

Kindle Reader In-house Entertainment

Grocery Delivery

Video Streaming

Home AutomationCloud Computing

“SignAloud”: Translating Sign Language to Speech

• Bluetooth enabled gloves

• Records hand position and movement

• Uses deep learning to match gestures with words

• Text to speech

Innovation is Creativity with Execution

« Invention requires two things: the ability to try a lot

of experiments, and not having to live with the

collateral damage of failed experiments »

Andy JassyCEO

Amazon Web Services

How to Create a Culture ofInnovation?

Innovation is Not a Goal,it’s an Ongoing Process

30 missions prior to Apollo 11 moon landing

50% failed!

Learn from mistakes

Success comes after iterations

Innovation Requires Commitment

Inspire Your People & Give thema Sense of Purpose

« We reach for new heights and reveal the

unknown for the benefit of humankind »

What is NASA’s Vision?

« We're a company of pioneers. It's our job to make bold bets, and we get our energy from inventing on behalf of customers. Success is measured against the possible, not

the probable. »

Identify and Understand Your Company’s

Culture

Formulaic

Well-defined VisionProcess-Oriented

Over-optimized on team coordinationValue system above breakthroughs

“Play it safe, keep the customer base”Entrepreneurial

Primary Inventor Scrappy

Autonomous teamsDisruption vs incremental growth

“Go big, or go home”

vs

10+ Years Later…Circa 2006

Everyone Should Know the Company’s Growth Strategy

Amazon’s Growth Flywheel

Value

Selection

Convenience

Intuit’s Innovation Approach

Design for Delight

Create Mechanisms for a“Learn & Be Curious” Culture

Too Much to Learn : Rapid Pace of AWS Innovation

61 82159

280

516

722

1000

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014 2015 2016

New

features

and/or

services

~

Mechanisms for Continuous Learning

Introductory videos

Certifications

Instructor-led courses

Online self-paced labs

AWSome Days

Encourage Experimentation

Adobe’s Innovation-in-a-box Program

Kickbox program to boost Internal innovation:

$1,000Notebooks and Post-its

Chocolate Starbucks card

Create a Structure for Unstructured Innovation

Atlassian’s ShipIt Days

24-hour hackathon to

work on anything related

to Atlassian products

and ship it in 24 hours

Make Your Technology & ToolsAvailable as “Self-Service” Platforms

“We are creating powerful self-service platforms that allow thousands of people to boldly experiment and

accomplish things that would otherwise be

impossible or impractical."

Self-Service Platforms without Gatekeepers

HYBRID

ARCHITECTURE

Data Backups

Integrated

App

Deployments

Direct

Connect

Identity

Federation

Integrated

Resource

Management

Integrated

Networking

MARKETPLACE

Business

AppsDatabases

DevOps

ToolsNetworkingSecurity Storage

Business

Intelligence

ENTERPRISE

APPS

Virtual

Desktops

Sharing &

Collaboration

Corporate

Email

Backup

IoT

Rules

Engine

Device

Shadows

Device

SDKs

Registry

Device

Gateway

DEVELOPMENT & OPERATIONSMOBILE SERVICESAPP SERVICESANALYTICS

Data

Warehousing

Hadoop/

Spark

Streaming Data

Collection

Machine

Learning

Elastic

Search

Queuing &

Notifications

Workflow

Search

Email

Transcoding

One-click App

Deployment

Identity

Sync

Mobile App

Testing

Push

Notifications

DevOps Resource

Management

Application Lifecycle

Management

Containers

Triggers

Resource

Templates

API

Gateway

Streaming Data

Analysis

Business

Intelligence

Mobile

Analytics

Single Integrated

Console

TECHNICAL & BUSINESS SUPPORT

SupportProfessional

Services

Account

Management

Partner

Ecosystem

Solutions

Architects

Training &

Certification

Security &

Billing Reports

GAMING

3D Game

Engine

Character

Designer

Multiplayer

Service

Twitch

Integration

Cloud

Integration

RegionsAvailability

Zones

Points of

Presence

INFRASTRUCTURE

CORE SERVICES

ComputeVMs, Auto-scaling, Load Balancing,

Containers, Cloud functions

StorageObject, Blocks, File,

Archivals, Import/Export

DatabasesRelational, NoSQL,

Caching, Migration

CDN NetworkingVPC, DX, DNS

Access ControlIdentity

Management

Key

Management &

Storage

Monitoring

& Logs

SECURITY & COMPLIANCE

Resource &

Usage Auditing

Configuration

Compliance

Web application

firewall

Assessment and

reporting

Most Robust, Fully-Featured Technology Infrastructure Platform

Measure Your Progress

“Our theories determine what we measure.”

– Albert Einstein

Identify your assumptions

Look beyond your frame of references

Be a “Culture of Metrics”

A/B test for optimization

Improve and iterate quickly

Measure, Improve, and Iterate

Jointly Recognize & Reward Innovation

Share and Give Back to Innovation

AWS “This is My Architecture” Talks

Innovation from the AWS Ecosystem

Netflix Open Source

Software Center

Big Data

Build and Delivery Services

Content Encoding

Pinterest Engineering

Application Configuration

Secrets management

MySQL Management Tools

Airbnb OpenSource

Machine Learning

Workflow

WebUI

Stay Focused on Your Vision

« We've had three big ideas at Amazon that we've stuck with for 20+ years, and they're the reason

we're successful: put the customer first, invent, and be patient »

Jeff BezosCEO and Founder Amazon.com, Inc

Thank you!

Remember to complete

your evaluations!


Data Protection & ComplianceInnovations in Information Security and Data Protection

Chad Woolf, Director, Risk & Compliance

26.01.17

What to Expect from the Session

Discussion about AWS scale, security, and Germany C5

Three examples of how we deal with massive scale in compliance

1. Access Management

2. Change management

3. Vulnerability management

For each example:

• AWS Services that we utilize for operationalizing compliance

• Lessons learned

Amazon CloudWatch AWS CloudTrail AWS Lambda Amazon API Gateway Amazon Redshift

Scale, Complexity,

Security

AWS: Huge Scale

AWS Security: A Very High Bar

AWS: Complex System?

Gall’s Law:

A complex system that

works is invariably found to

have evolved from a

simple system that worked.

A complex system

designed from scratch

never works and cannot be

patched to make it work.

You have to start over with

a working simple system.

+ C o m p l e x S y s t e m s

+ Highest Security Bar

= Impossible Task

(in a manual world)

Huge scale

Customized, Customer-centric Approach

7,710 Audit

Artifacts

40+

services

2,670

Controls

3,030 Audit

Requirements

Designed and released by the BSI in February 2016, the C5 control set offers additional assurance to customers in

Germany as they move their complex and regulated workloads to Cloud Computing Service providers such as AWS.

The following international standards had been taken by BSI into account:

• ISO/IEC 27001:2013 (ISO - International Organization for Standardization)

• CSA Cloud Controls Matrix 3.01 (CSA - Cloud Security Alliance)

• AICPA Trust Service Principles Criteria 2014 (AICPA - American Institute of Certified Public Accountants)

• ANSSI Référentiel Secure Cloud 2.0 (Draft) (ANSSI - Agence nationale de la sécurité des systèmes d'information)

• IDW ERS FAIT 5 04.11.201 (draft statement on accounting: "Grundsätze ordnungsmäßiger Buchführung bei Auslagerung

von rechnungslegungsrelevanten Dienstleistungen einschließlich Cloud Computing" [Generally accepted accounting

principles for the outsourcing of accounting-related services including cloud computing], version of 4 November 2014)

• BSI IT-Grundschutz Catalogues, 14th version 2014•

• BSI SaaS Sicherheitsprofile 2014 [BSI SaaS security profiles 2014]

Cloud Computing Compliance Controls Catalogue

Mapping table https://www.bsi.bund.de/SharedDocs/Downloads/EN/BSI/CloudComputing/ComplianceControlsCatalogue/Referencing_Cloud_Computing_

Compliance_Controls_Catalogue.pdf

C5 =

https://www.bsi.bund.de/SharedDocs/Downloads/EN/BSI/CloudComputing/ComplianceControlsCatalogue/Referencing_Cloud_Computing_Compliance_Controls_Catalogue.pdf

IT-Security standards as the BSI C5 catalogue

are an essential part for defining digitalization,

which can’t be successful without cyber security. The

requirement catalogue of the BSI offers the possibility for cloud

provider, to receive an attestation during a compliance audit or

an accounting with minor additional work and expense.

We are pleased, that Amazon Web Services, an international

accepted and important cloud provider received at first an

attestation according the C5 catalogue.

This shows that this standard is accepted and implemented by

the market.

BSI president Arne Schönbohm

AWS Automated Compliance

We'll walk you through 3 examples today:

1. Access Management

2. Change management

3. Vulnerability management

+ Lessons learned

Example 1: Access Management

Example 1: Access Monitoring of Critical Systems

• Problem: monitoring access to a large number of hosts

• Our response: remediation controls that evaluates who AND

what

• How we use it: monitor, validate, remediate access controls

at AWS scale quickly

• Benefit: ensure principle of least privilege access

Near real time validation

Baseline rule review

Example 1: Access Management layered controls

Critical Assets

Rules based permission management

Step 1: Principle of Least Privilege

Example 1: Step 1 Under the hood

HR

Permission

store

On-prem

hostsAmazon

Redshift

S3

AWS

Data

Pipeline

Job

Management

service

EC2 Worker

fleet

AWS

Lamdba

Group owners

Notifications

Amazon

Kinesis

Firehose

On-prem

hostsAmazon

SQS

“On prem like” environmentA

1

2

3

4

5

ETL SolutionB

6

78

9

Continuous Monitoring & Notification SolutionC

10

11 12 13

Example 1: Step 2 Under the hood

Step 2: Principle of Least Privilege

Amazon S3 Log

Repository Apache Spark

cluster

(Amazon EMR)

ETL using

Lambda

S3 bucket to

store extracted

SSH logins

Amazon Redshift

1 2 3 4 5

Example 1: Lessons Learned

• Revoke access of users who

haven’t used their access to critical

AWS resources/systems

• AWS CloudTrail + Credential

Usage Report + Service Access

Report

• Logins to your EC2 fleet vs. SSH

keys access list

Example 2: Change Management

Example 2: Change Management

• Problem: controlled automated deployment and validation of

daily deployments

• Our response: automated auditable deployment and validation

environment

• How we use it: auditor validation of our preventative and

detective change management controls

• Benefit: all changes to environment and controlled and

documented

Example 2: Under the hood

1 2 3 4 5


QA & Code Review

1 2 3 4 5 6


• AWS CodeCommit – authoritative source code

repository

• AWS CodeDeploy – controlled deployments to

instances

• AWS CodePipeline – continuous delivery of software

releases

AWS CodePipelineAWS CodeCommit AWS CodeDeploy

Example 3: Vulnerability

Management

Example 3: Vulnerability Management

• Problem: analyzing large data set of fleet information and

identifying ‘actionable’ patching data for our large fleet of

hosts

• Our response: utilize active and passive assessments to

accurately capture and identify opportunities for updates

• How we use it: utilizing 3rd-party scanners and on host

agents to reduce false positives and increase accurate

‘actionable actions’ for remediation

• Benefit: Our hosts are patched, preventing security issues


Amazon

RDSAmazon

Elasticsearch

Service

Distributed

sensorsAmazon

EC2Dashboard


• Active Scans are costly in time and resources

• False positives are hard to deal with

• Datatype definitions matter

Amazon

Inspector

Amazon

RDS

Amazon

Redshift AWS

Lambda

Amazon

Elasticsearch Service

Amazon

QuickSight

ASSESS STORE PROCESS VISUALIZE

Recap

• Our lesson learned: automate to survive.

• You have the same opportunity for these examples and others.

• AWS can be used to strengthen data protection in Cloud and on-

prem environments.

Thank you!


Scott Wiltamuth

VP for AWS Dev & Management Tools

January 26, 2017

The New Era: How to

Innovate Faster

Confluence of Industry Trends Disruption

• Cloud

• Social

• Mobile

• IoT

• Big Data

Sky High Customer Expectations

• Web + Phone + Tablet

• Secure

• Always available

• Worldwide

• High performance

• Continuously updated

• Smart use of Big Data

Growth in Developer IQ?

IQ

Time

???

Recipe for Success: Use Higher Level Services

Use Case Higher Level Service

Web Apps and Services Elastic Beanstalk

API Gateway

Compute Containers with ECS

Functions with Lambda

Big Data Elastic Map Reduce

Search CloudSearch

Elasticsearch

Batch Computing AWS Batch

Configuration Management OpsWorks

CloudFormation

Reliability

Recipe for Success: Adopt DevOps

SpeedScale

Rapid DeliveryImproved Collaboration

Security

DevOps: Culture & Organization

• Dev & Ops coming together: “no more silos”

• Shared responsibility

• Ownership

• Visibility and communication

DevOps: From Monoliths to Microservices

DevOps: Continuous Integration & Delivery

DevOps: Infrastructure as Code

DevOps: Monitoring and Logging

• Track and analyze metrics and logs

• Understand real-time performance of

infrastructure and application

• Automated alarms with escalation

= 50 million* deployments a year

Thousands of teams

× Microservice architecture

× Continuous delivery

× Multiple environments

*as of 2014

AWS DevOps Portfolio

AWS CodeCommit AWS CodeDeploy AWS CodePipeline

Continuous

Integration &

Delivery

AWS CloudFormation

Infrastructure

as Code

Monitoring

& Logging

AWS CodeBuild

AWS OpsWorks

Stacks

AWS ConfigAmazon CloudWatch AWS CloudTrail

new

new

new

AWS X-Ray

AWS OpsWorks for

Chef Automate

Is this safe?

Enterprise Controls in a Cloud Era

• Governance

• Compliance

• Risk

• Security

• Data Protection

• Cost

• Availability

Recipe for Success: Account Strategy

• Use AWS accounts for ownership and role clarity

• By Ownership

• Central IT

• Business Group #1

• Business Group #2

• …

• By Use

• Dev

• Integration Test

• Production

Recipe for Success: Guardrails

Standard configuration across all AWS accounts

• Multi-factor authentication (MFA) for root

• Identity federation with enterprise directory

• CloudTrail turned on – record of all API activity

• Config turned on – record of configuration changes

• Config Rules to encourage/enforce your policies

• Log aggregation to CIO/CSO

What is AWS CloudTrail?

AWS CloudTrail is a fully

managed service that

records API calls made on

your AWS account.

CloudTrail helps you gain

visibility into API activity,

enables you to

troubleshoot operational

issues, conduct security

analysis and meet internal

or external compliance

requirements.

Customers are making API calls...

On a growing set of services around the world…

CloudTrail is continuously recording API

calls…

And delivering log files

to customer

s

AWS Config & Config Rules

Changing resourcesAWS Config

Config Rules

History, Snapshot

Notifications

API Access

Normalized

Recipe for Success: Use Higher Level Services

Use Case Higher Level Service

Web Apps and Services Elastic Beanstalk

API Gateway

Compute Containers with ECS

Functions with Lambda

Big Data Elastic Map Reduce

Search CloudSearch

Elasticsearch

Batch Computing AWS Batch

Configuration Management OpsWorks

CloudFormation

Recipe for Success: Service Catalog

UsersAdministrator

Control

Standardization

Governance

Agility

Self-service

Time to market

AWS Service Catalog allows organizations to create and manage catalogs

of IT services and software on AWS described as AWS CloudFormation

templates. It enables users to quickly deploy approved IT services they need

in a self-service manner.

Private Catalog for Organizing and Launching Infrastructure & Software

Services on AWS

Summary

• Confluence of Industry Trends Disruption

• Sky High Customer Expectations

• Innovating Faster

• Use Higher Level Services

• Adopt DevOps

• Automate, automate, automate

• Enterprise controls in cloud era

• Guardrails for governance, compliance, and risk

• Use higher level services

Helpful Resources

https://aws.amazon.com/devops/

https://aws.amazon.com/tools/

https://aws.amazon.com/products/management/

https://portal2010.amazon.com/sites/aws-marketing/AWS Logos/Forms/Grid.aspx?RootFolder=/sites/aws-marketing/AWS Logos/AWS Logo&FolderCTID=0x012000752A7CD29409F6488D18C3EB26DF7D7C&View=3A96FEE1-C480-40E9-9DF5-618D06EE1BA8



Internet of trains –

Why change and cloud makes senseGerhard Kreß, Data Services

www.siemens.comUnrestricted © Siemens AG 2017

Unrestricted © Siemens AG 2017

January 2017Seite 2 Gerhard Kreß | Mobility Customer Services

Mobility is a backbone of our society, especially in metro areas

Rail automation for passenger

and freight services

Automated

payment systems

Mass transit and

mainline rail vehicles

Regional and

high speed trains

Services for rail

and road transport

Power supply for rail

and road vehicles

Turnkey rail

systems

Road traffic

management

Integrated, intermodal

mobility solutions

Locomotives



Turn

dataInto

information

Imagine –

Your rail assets have 100 percent availability for their schedule

• Rail vehicles today send between

1 and 4 billion data points per year

• Rail infrastructure can send

billions of messages per year

inside the system

• Additional data

• Work orders

• Spare parts data

• Geographical data weather data

The data available The challenge

Ensure

100% operational

availability

And drive appropriate actions



In order to implement such offerings, Siemens built a large

team of data scientists enabled by the Railigent platform

• Open and cloud based

architecture

• Scalable data storage

• In-database analytics

• Data scientists

• Implementation managers

• Technology experts

10

11

10

01

011010101101000111011010

00101011010001110110

01100110100111011010

10101011010001101110

011010101101000111011010

0110101010

1010110111

001001011

1011010111

011001111

00100101111010

01110

Management

Dispatcher

Maintenance engineer

Data visualizationData evaluationData processingData transmission

Railigent Connect

Secure data transmission

from sensor to central

data storageTurning data into value and enabling Digital Services

solutions (Smart Monitoring,

Smart Data Analysis and Smart Prediction)

Railigent

powered by Sinalytics

Advanced

algorithms

Expertise domain

Know-how

Best practises

Data management

capabilities

Human Resources



Target is operational decision support –

From data access to automated generation of insights

Machine

learning

Data access Search for

patterns

Automated

insight generation



Example automated failure prediction –

Bearing monitoring on a high speed train

Alarms

Simplified picture – In reality 8 machine learning models analyse the complete

drive train and help identify the exact component and the failure type

Operational applicationMachine learning



Real examples show that tangible business value can be achieved

Velaro

Spain

Metro

Bangkok

Velaro

Russia

Thameslink

Class 700

Examples Achievements based on data usage

Market share gains against the plane on the route Madrid –

Barcelona due to punctuality

Availability: 99.98%

100% vehicle availability in rush hours

allows to operate without reserve trains


Component monitoring especially for doors

reduces delays and increases availability

Successful service provision on the route Moscow –

St. Petersburg without spare capacity




Siemens moved its data analytics into the cloud to increase agility,

improve performance and lower cost

Railigent

• Cloud native

• Built on AWS services

• Powered by Mindsphere

Performance targets

• Data ingest >200,000 events/second

• Data volume >1 PB

• >1,000 data analytics models in place

On-premise platform

Selected performance values

• Data ingest >25,000 events/second

• Data volume between 100 and 200 TB

• <50 data analytics models in place

Started in July 2016

Development

goals

Performance 10x

Cost reduction 10x

Increased agility

July 2015

1Phase

2Phase



The technology shift has not been easy to master …

• Understanding of the new technologies

recently deployed in Europe

• Mastering the large set of platform

services

Amazon PaaS layer From monolithic applications

to microservices

Fulfilling Siemens security

requirements in the cloud

• Refactoring of large parts

of key applications to take advantage of

cloud agility

• Development of microservices instead of

monolithic legacy applications

• Development of standalone security

concepts for applications fully visible in

the internet – not behind corporate

firewalls

• Development of a new IT security

approach for agile development in the

cloud



… But the challenges on the business side were even more significant

• Getting all developers on board to embrace

and master AWS PaaS

• Keeping people up to speed with the new

developments/innovations in AWS PaaS

• Growing architects able to design such

platforms, linking a large set of new and

modern technologies

People Culture

• Empowering the developers for work

in an agile environment

• Working together across unit borders in a

continuous deployment setting

• Product development towards customer

focused, agile approaches

• Changing the whole unit into an agile way of

approaching topics


Thomas Blood

26 Jan 2017

Technologie und Kulturwandel

Wieviel Zeit bleibt ihnen für Produktentwicklung?

Welchen Anteil ihrer Zeit brauchen sie für Betrieb und Wartung?

…

Was wäre wenn sie 30% mehr von ihren

Ressourcen für ihre Kunden verwenden

könnten ?

Common Priorities

• Time-to Market

• Inflexible Platform

• Technical Debt

• Unplanned Work

• Customer Experience

• Collaboration

6 months per release

Months to procure/provision

60 – 80% of effort

Outages, bugs, compliance

Performance and outages

Integrating with other business

units is technically difficult

High cost & low productivity

Theorie (Momentum)

People,

Process

and

Technology

Entwicklung

Betrieb

Markt

Feedback

Produkt-

verbesserung

und Innovation

Praxis (Bremsen der Produktivität)

CCOE

Technical Debt

Resistenz

gegen die

Veränderung

Hemmende

Organization &

Struktur

Fähigkeiten &

Verfahren die

nicht ganz passen

People,

Process

and

Technology

Was tun?

Neue Prinzipien

Think Big, Start Small, Go Fast

1. Act like a start-up (that is funded and has domain expertise)

2. Embrace cloud computing

3. Use the right tool for each requirement

4. Use out-of-box functionality whenever possible

5. Create a microservices architecture

6. Enforce YAGNI (You Aren’t Going to Need It)

7. Cultivate DevOps

8. “You build it, you own it!”

9. With great power comes great responsibility!

10.With great responsibility comes great power!

Re-Invent

Monolith development lifecycle

developers

releasetestbuild

delivery pipelineapp

Conway’s Law

organizations which design systems

…

are constrained to produce designs

which are copies of the

communication structure

of these organizations

Conway in Praxis

Produkt

Entwickler

QA

DBA/DBE

Architektur Betrieb

Design

NOC

Konzept Entwicklung Produktion

Conway in Praxis

Produkt

Entwickler

QA

DBA/DBE

Architektur Betrieb

Design

NOC

Konzept Entwicklung Produktion

Ticketing

System

Den Monolithen dekonstruieren

developers

releasetestbuild

delivery pipelineapp

Microservice development lifecycle

developers delivery pipelinesservices

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

releasetestbuild

2 Pizza Teams

6 – 10

developersservices

Kundenverwaltung

Zahlung

Bestellabwicklung

Registrierung/Login

Feature A

Feature B

Native Cloud Architektur

Infrastruktur-Als-Code

Cloud Center of Excellence

Cloud Center of Excellence

Training

Identity

management

Asset

managementReference

architectures

Cost and account

managementHybrid

architecture

Wie fängt man damit an?

Und wie breitet man das aus?

Suche Nach dem Talent

Companies need cloud expertise now more than ever

Indeed Job Postings that include “AWS”

0

100

200

300

400

500

600

700

2012 2013 2014 2015 2016

Relative

Percentage

*Indeed.com job trends, http://www.indeed.com/jobtrends/q-AWS.html

Interne Kandidaten

Lernvermögen

Kompetenz in mehreren Programiersprachen

Erfahrung mit Scripting

Erfahrung mit Verwaltung von Betriebssystemen oder DevOps

Leidenschaftlicher Ingenieur

Fullstack Entwickler

Teils Techniker – Teils Tüftler

Jemand den andere um Rat fragen

Teamfähig

Ingenium: [schöpferische] Begabung; Erfindungsgabe

Mensch mit besonderen geistigen, schöpferischen Fähigkeiten

Ein Beispiel (2014 - 2015)

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

Proof of Concept Complete MVP Soft Launch

Go/NoGoStart

1 Exec Sponsor

1 Architect

1 Consultant

2 Product

4 Frontend

5 Backend

+ 1 Consultant

+ 2 Product

+ 2 Mobile

+ 2 Frontend

+ 4 Backend

+ 2 Platform

MVP Launch

Gradual increase of staffing

Production Ready

Ein Trainings Beispiel

1st Training Delivered

1400 students trained

11 months

Production

Applications

TimeJan 2015 Sept 2016

0

~100

Unterstützung

AWS Partners AWS Training AWS Professional Services

Und was bringt das dann?

16MM Ledger Saving Velocity = 50 apps/qtr.

Operational CostsWorkforce ProductivityCost AvoidanceOperational ResilienceBusiness Agility

• 98% reduction in

P1/P0’s

• 77% faster to deliver

business applications

• 52% average

TCO savings

• 35% reduction in

compute assets (792)

• 15 automated bots

developed

• 80% cloud first

adoption

• 15 cloud services

created

• 50 applications

decommissioned• 8 cloud migration

parties• Improved security

posture

• Shift to self-service

culture

• Rapid

experimentation

• Reduced technical

debt• 14M YOY Savings

• Improved

Performance

• Streamlined M&A

Activity• DevOps in Practice

Progress as of May 2016

14.2M

InvestmentFocus

18

Months311 Apps

in Cloud &14M YOY

Savings

Sample outcome – GE

http://www.slideshare.net/AmazonWebServices/demystifying-cloud-economics-how-to-build-an-investment-case-for-scale-migration-to-the-cloud-business

http://www.slideshare.net/AmazonWebServices/demystifying-cloud-economics-how-to-build-an-investment-case-for-scale-migration-to-the-cloud-business

Lessons Learned

Automate, then Automate

MoreEverything we do is with automation

in mind, from deployment to

operations. This is the only way to

survive at scale.

Security at Every LayerFully utilizing the security provided in

the public cloud allows us to have

confidence in a multi-tenant world.

Embrace AgileFrom organization structure to project

management, everything we do is with

agile principles in mind.

Bias toward actionEveryone has a reason not to move to

cloud. Our mission is to find more

reasons why we should.

Work Instead of WorkflowEmbracing automation has allowed our

employees to concentrate on doing work,

instead of filling out workflows.

Encourage (calculated)

Risks Celebrate failure. Talk about pivots.

Continuously examine new tools. This

leads to rapid innovation resulting in

progress.

Transformation – Rebuild technology skill

sets, encourage diversity and embrace “hands-on”

Pipeline – A pipeline of 50+ will ensure

consistent velocity

Collaboration - Embed Security & Risk

teams, CIO + CTO + Corp partnership

Cloud Aware – Rehosting is OK if it

maximizes margin, agility, resilience & performance

Enablers

Fragen sie

• Entwickler für 3 einfache Sachen die sie gerne reparieren würden

• Das Infrastrukturteam für 3 Sachen die man automatisieren könnte

• Die Datengruppe nach 3 Berichten die kaum gelesen werden

• Das QA team nach Sachen die sich immer wiederholen

• Ob jemand eine Lunch’n Learn oder Meetup Gruppe leiten möchte

Bieten sie

• Möglichkeiten für ein Hackathon an

• Training an (es gibt da viele Möglichkeiten)

Weitere Empfehlungen

Fowler on Microservices

Building Microservices - Sam Newman

DevOps and AWS

The DevOps Handbook

The Phoenix Project

Release It!

Antifragile

Unser Enterprise Blog

http://www.martinfowler.com/articles/microservices.html

http://shop.oreilly.com/product/0636920033158.do

https://aws.amazon.com/devops/

http://shop.oreilly.com/product/9781942788003.do

https://www.amazon.com/Phoenix-Project-DevOps-Helping-Business/dp/0988262592

https://www.amazon.com/Release-Production-Ready-Software-Pragmatic-Programmers/dp/0978739213

https://www.amazon.com/Release-Production-Ready-Software-Pragmatic-Programmers/dp/0978739213

https://medium.com/aws-enterprise-collection/aws-in-the-enterprise-b1af6fb8946c

Thank you!

Groß ist des Meisters Kraft, wenn er mit dem Hebel schafft!

@groberstiefel

[email protected]

mailto:[email protected]

Thank you!

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