In their most recent earnings call, Amazon reported that their Amazon Web Services division has reached a $14.2 billion run rate. As impressive as that is, AWS and the entire cloud market still only represents a small slice of the total IT budget worldwide. In fact, while IDC projects the Public Cloud to be a ~$200 billion market by 2020, it also projects the total IT budget in 2020 to be $2.7 trillion. Public cloud adoption is accelerating but the market opportunity is even greater than most people think since we are nowhere near market saturation. The reality is that for most companies, AWS and other public clouds are largely untapped resources and many users are only beginning to familiarize themselves with what the Public Cloud has to offer.
To help those who are new to AWS and desire to learn more, I will be writing some 101 and 201 blog series that walk readers through some core concepts and services. Along with many of these posts, I will also be posting some whiteboard and demo videos.
The first such series will be on the important topic of Virtual Private Cloud or VPC. We will be walking though the components of a VPC, including what comes with a default VPC. That will be followed by a deep dive on how to build a custom VPC and the impact it will have on network and application designs. But before jumping into a discussion on Virtual Private Clouds, it is important we understand the concept of Regions and Availability Zones since they are foundational to building on top of AWS.