What Was Our Goal?
At Mobomo, we have pushed our employees to educate themselves on a variety of certifications in order to further their own professional growth, as well as team growth. The team was so excited about the Amazon Web Services Total Cost of Ownership (TCO) and Cloud Economics course that we had everyone from the Founder to our sales team complete it. The reason behind this was to continue to work towards becoming an advanced partner with AWS. Mobomo was not always a cloud service provider, but we were backed into becoming one based on all of the other projects that we do and the cloud requirements for many of these projects. AWS has truly helped this portion of our business take off in 2018.
This course specifically covers everything you might need to know about AWS TCO, from basics to an in-depth cost analysis. TCO is the total cost of ownership, which is defined as the initial purchase price of an asset plus it’s operating cost. If any item has a low TCO, this means it will be valued higher over time. The most common comparison used to better understand TCO is a car. The common costs that are involved in purchasing a car are MSRP, registration and insurance, fuel, maintenance, and breakdowns. The TCO of a car is the initial purchase price PLUS all these costs that may be incurred throughout its lifetime. This is the best way for a TCO newbie to understand the basic concept of TCO and this is a comparison that we continue to use throughout the Mobomo office.
Pricing Benefits of AWS You Should Know:
- Amazon Web Services pride themselves on helping customers lower TCO in 4 ways:
- Replace upfront capital expenses with lower variable cost.
- Utilize economies of scale to continuously lower costs
- Pricing model choices support variable and stable workloads.
- Deliver greater savings as AWS grows.
- Everything is bundled and AWS is transparent about the cost
- Two Pricing models
- Lower TCO as AWS grows
- AWS optimizations and business growth= lower pricing
- Pay as you go, pay for what you use, reserve capacity, pay less as AWS grows
- Lower TCO as AWS grows
Mobomo has been working with AWS for an extended period of time and also partnered with Amazon to help created their tool, Mechanical Turk. It was important for our team to have a solid understanding of the TCO concepts and the benefits of using AWS in regards to TCO in order to further our knowledge as well as continue our ongoing relationship with AWS. All of the tools that AWS has provided and that we have had the benefit of using have been very valuable to the Mobomo team as a whole.