Managing IT Operations

8/9/2019 Managing IT Operations

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3.0 Managing IT Operations (Yeoh Jia Han TP026238)

3.1 Amaon !e" #er$i%e Po&er O'tage

In O%to"er 2012 Amaon !e" #er$i%es (A!#) one o the &or*+ *ea+ing pro$i+er o %*o'+

ser$i%e ha+ s'ere+ an o'tage. As a res'*ts it %a'se+ a *ong *ist o pop'*ar &e"sites &ent

+ar,. Ho&e$er this A!# o'tage it &as not irst time "e%a'se "a%, in J'ne 2012 a po&er'*

th'n+erstorm ,no%,e+ o't the Amaon hosting ser$er th's %a'se+ the "a%,'p generator ai*e+

an+ *ea+s to sot&are ai*e+ as the same time. A%%or+ing toAmaon-s #er$i%e Hea*th

ash"oar+ the o'tage starte+ o't as +egra+e+ perorman%e o a sma** n'm"er o/*asti% *o%

#tore (/#)storage 'nits in the #/A#T1 egion then e$o*$e+ to in%*'+e pro"*ems &ith

the e*ationa* ata"ase #er$i%e an+ /*asti% eansta*, as &e**.

4ig're 5. A!# o'tage ta,es +o&n e++it an+ other pop'*ar &e"sites.

3.1.1 #o*'tion

The so*'tion gi$en " Amaon &as oers reim"'rsement to its %'stomers "ase+ on the

amo'nt o +o&ntime the %'stomer e7perien%es. esi+es Amaon a+$i%e %'stomers &hose

sites are sti** o*ine %an tr re*a'n%h them in +ierent one o its inrastr'%t're. Ho&e$er ithe sites are "ase+ on its storage ser$i%e ma ta,e 28 ho'rs to '** re%o$er. At the same

time Amaon is "ringing a++itiona* har+&are on*ine to tr an+ spee+ 'p the re%o$er

pro%ess.

A++ More ata 9entre as a%,'p

A%%or+ing to ne&spaper o : name+ The In+epen+ent Amaon has "o'ght a ormer

s'permar,et &areho'se near '"*in an+ p*ans to %on$ert the "'i*+ing into a +ata %entre to

e7pan+ its rapi+*gro&ing %*o'+ %omp'ting operation. The "'i*+ing a%;'isition in '"*in
http://status.aws.amazon.com/http://status.aws.amazon.com/http://aws.amazon.com/ebs/http://aws.amazon.com/ebs/http://aws.amazon.com/ebs/http://aws.amazon.com/ebs/http://aws.amazon.com/ebs/http://status.aws.amazon.com/http://status.aws.amazon.com/


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appears to "e part o a "roa+er eort to *ine 'p rea* estate that %an "e %on$erte+ into

a++itiona* %apa%it or Amaon !e" #er$i%es. A%%or+ing to Hami*ton the $i%e presi+ent o

Amaon mentione+ that in%reasing the amo'nt o +ata %entre in +ierent *o%ations the rate

o ee%te+ 'ser &i** "e +e%rease+. Moreo$er it a*so he*ps 'ser to get more a$ai*a"i*it to

%hoose or shit the &or,*oa+ to other a$ai*a"i*it one i an in%i+ent o%%'rre+.

4ig're 5. The interior o a "'i*+ing reporte+* p'r%hase+ " Amaon to ho'se a ne& +ata

%entre near '"*in.

eg'*ar Maintenan%e an+ Testing o Po&er

In the meantime Amaon sai+ it &o'*+ a+?'st se$era* settings in the pro%ess that s&it%hes the

e*e%tri%a* *oa+ to the generators ma,ing it easier to transer po&er in the e$ent the generators

start s*o&* or e7perien%e 'ne$en po&er ;'a*it as the %ome on*ine. The %ompan &i** a*so


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ha$e a++itiona* sta a$ai*a"*e to start the generators man'a** i nee+e+. A%%or+ing to

Amaon re%r'itment Amaon are +esperate* *oo,ing or operation te%hni%ian @ ight to

ma,e s're the generator is &e** maintaine+ 2hr.

3.2 Oshore

3.2.1 Oshore Into #o'th Ari%a

esi+es o'tso'r%ing oshoring is one o the IT operation &hi%h +one " Amaon as &e**. In

ear 200B Amaon +i+ oshore their "'siness to #o'th Ari%a name Amaon 9ape To&n

main* to gro& the n'm"ers o emp*oees. (The /%onomi% Times 200B) The in$o*$e+

+epartments are %'stomer ser$i%es an+ sot&are +e$e*opment %entre. A%%or+ing to The

#hare+ #er$i%e C O'tso'r%ing et&or, Amaon 9ape To&n is a ma?or +e*i$er h'" "

ser$i%ingD

!ll inbound customer service for the "#, "$ and %erman retail businesses

#upport for !ma&on's $indle e(reader for end(users in the "#, "$ and %ermany,

including basic )how(to* assistance as well as technical troubleshooting

#upport for the company's "# digital business, including the +3 store, !ma&on's

-loud rive and -loud layer applications, and the $indle Fire tablet device.

A%%or+ing to M%:inse a %ons'*tan% #o'th Ari%a is &e** p*a%e+ to "eneit rom the tren+

o irms shiting "'siness pro%esses s'%h as %'stomer %are an+ paro** a+ministration to

%heaper p*a%es. This %o'*+ %reate 100000 ?o"s in #o'th Ari%a as &e** as attra%ting a mo+est

"'t 'se'* EF0m1GBm in oreign in$estment " 2008. #e$era* "eneits Amaon gaine+ rom

oshoring to #o'th Ari%a s'%h as %ost sa$ing an+ re%r'it s,i**e+ emp*oees.

3.2.2 9ost #a$ing

Amaon in ritish an+ Ameri%an irm %o'*+ %'t the %ost o some ser$i%e " 300 "

pro$i+ing them in #o'th Ari%a "e%a'se in #o'th Ari%a the *a"o'r %ost is *o&er an+ set 'p

pri%e is airer as &e**.

e+'%e the %ost o *a"o'r

In #o'th Ari%a the &ages o &or,ing ho'r pa rate is *o&er %ompare+ to # an+ some

mo+ern +e$e*oping %o'ntr. 'sing this opport'nit Amaon aime+ to gro& 100 n'm"ers

o emp*oees at the en+ o 200B " on* oshoring in 9ape To&n. (##O 200B)


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e+'%e the %ost o setting 'p

In #o'th Ari%a the %ost o setting 'p IT inrastr'%t're is %heaper as &e**. #in%e Amaon

oshore+ %'stomer ser$i%e to #o'th Ari%a the +epartment sti** a"*e ,eep %onta%t &ith a** the

%'stomers aro'n+ the &or*+ "e%a'se Amaon has a team that pro$i+es s'pport in phone

emai* an+ *i$e %hat aro'n+ %'stomer pro+'%t re$ie& in i$e *ang'ages s'%h as


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3.3.1 IT Operation o A'7is to Amaon

o&a+as %*o'+ ser$i%e is getting important "e%a'se most o the %ompan r'ns their ser$er

in %*o'+ to in%rease its a$ai*a"i*it in or+er to mo$e the %ompan &or*+&i+e an+ the %apa%it

is getting h'ge rom +a to +a. In or+er to so*$e this iss'e A'7is s'pport A!# in +esigning

their %*o'+ so*'tion at Amaon rom ar%hite%t're te%hni%a* an+ se%'rit perspe%ti$e. A'7is

A!# 9*o'+ #er$i%es in%*'+eD

esign ser$i%es reso'r%es se%'rit an+ net&or,ing p*atorm

esign o M'*ti one M'*ti egion so*'tions or high a$ai*a"i*it an+ "'siness

%ontin'it

esign +ierent en$ironments (e$ Test AT an+ Pro+'%tion) &ith re;'ire+

ser$i%es an+ a$ai*a"i*it (A'7is 201B)

4or migration A'7is +i+ he*ps A!# in migration p*anning an+ imp*ementation. In migration

p*anning A'7is pro$i+e te%hni%a* C pro?e%t management s,i**s &ith ,no&*e+ge on Amaon

ser$i%es to p*an the migration o +ata %entre to the %*o'+ &hi*e migration imp*ementation

in%*'+esD

Imp*ementation o s%ripts or e*ease Management (A'tomate+ +ep*oment) o the

en$ironments

Imp*ementation o s%ripts%ron ?o"s as nee+e+ " the app*i%ations (A'7is 201B)

ast* A'7is monitor the A!# ser$i%e an+ se%'rit 27G736B to ma,e s're the A!# operate

a** the time &itho't errors.

3.3.2 IT Operation o Appath to Amaon

Amaon In$entor #stem p*as a $ita* ro*e in Amaon. In$entor sstem %an %a'se a *ot o

pro"*ems i not &or, ei%ient*. Amaon in$entor sstem has pro$en has earne+ =


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Appath a*so manage or+ers &ith '** transa%tion +etai*s rom ea%h o the se**ing %hanne*s an+

a'tomation settings &i** pro$i+e eas "at%h or+ers han+*ing &ith pi%, *ists '** %'stomie+

pa%,ing s*ips an+ shipping *a"e*s @ &ith tra%,ing 'p+ate+ to %hanne* an+ %'stomer. ast*

e$er transa%tion as or+er shipment tra%,ing +etai*s are instant* 'p+ate+ to the asso%iate+ to

Amaon se**ing %hanne*. (Appath 201)

J'stii%ation

9ore A%ti$ities %an "e o%'se+

Amaon not on* r'ns on A!# Amaon sti** r'nning /92 on*ine sa*es an+ m'%h more.

Th's o'tso'r%ing +i+ he*ps Amaon a *ot in managing their IT operations &hi*e o%'sing on

their %ore a%ti$ities. A%%or+ing to :/ssas " o'tso'r%ing in$entor sstem to Appath

Amaon %an *ea$e the shipping ser$i%e to them an+ %on%entrate on their e%ommer%e

enterprise &hi%h are more important se%tion o Amaon.

9ost an+ Time #a$e+

o'tso'r%ing Amaon %an sa$e time an+ %ost on stas training ser$er p'r%hasing

har+&are p'r%hasing an+ operation time. A'7is +i+ he*ps in managing IT operation o %*o'+

ser$i%e th's this ma,es Amaon %an 'se their te%hni%ian an+ programmer in other ne%essar

+epartment or more +e$e*opment.(A'7is 201B)

The pro"*em o sta %an "e minimie+

A'7is +i+ o'tso'r%e their s,i**s not on* Amaon "'t others %ompanies as &e**. 4or %*o'+

ser$i%e Amaon stas might in+ +ii%'*ties managing them "'t A'7is is e7pertise in this

ie*+ thereore the are more re*ia"*e or this se%tion sin%e managing %*o'+ is their

proessiona*. Moreo$er e7perien%e+ te%hni%ian in this ie*+ are not easi* o'n+ an+ Amaon

might spen+ more in or+er to hire them as &e**. A%%or+ing to A'7is A'7is not on* pro$i+es

%*o'+ managing ser$i%e "'t the a*so managing se%'rit or %*o'+ ser$i%e at the same time.


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9on%*'sion

ase+ on the resear%h a"o$e Amaon +i+ a%e a *ot o iss'es regar+ing IT operations

ho&e$er Amaon a*&as got their &as to so*$e it in a proessiona* &as in or+er to ser$es

%'stomer "etter. Po&er o'tage is not a sma** iss'es. eing a h'ge %ompan *i,e Amaon

Amaon a*&as nee+ to rea+ the "a%,'p p*an &hen a%ing the pro"*ems or e*se the &i**

*ose tr'st&orth o their %'stomers. in%reasing the n'm"ers o +ata %entres a**o& %'stomer

%hoose another a$ai*a"*e +ata %entre i an %rash or in%i+ent happens. Oshore to #o'th

Ari%a is a &ise %hoi%e +one " Amaon as &e**. oshoring Amaon a"*e to pro$i+es

%'stomer ser$i%e &ith *o&er %ost &hi*e opport'nit to hire those 'nemp*oe+ e7pertise in

#o'th Ari%a. O'tso'r%ing in$entor management is a ris, %hoi%e +one " Amaon. A'7is

managing 9*o'+ ser$i%e o Amaon "e%a'se A'7is is a amo's %ompan &ho ser$es morethan 300 %ompanies an+ "'i*t a *ot o 'ni;'e "'siness ser$i%e that empo&er the ;'a*it.

Managing %*o'+ ser$i%e is not an eas tas, an+ %o'*+ not "e +one " e7pertise thereore

o'tso'r%e %*o'+ ser$i%e to A'7is is +einite* a %orre%t %hoi%e +one " Amaon. In the other

han+ in$entor sstem on* %an "e a**o&e+ a%%ess " tr'ste+ partner "e%a'se mis'se or

mista,es +one in in$entor sstem %o'*+ %a'se the &ho*e sstem %o**apse an+ *ost rep'tation.

Ho&e$er sin%e Appath is not on* +o in$entor sstem or Amaon "'t or amo's

%ompanies as &e** s'%h as 4ee7


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References

A'7is.%om (201B).!u/is 0 !ma&on 1eb #ervices 2 -loud #ervices. Lon*ine A$ai*a"*e atD

httpD&&&.a'7is.%omamaon&e"ser$i%es/280F3%*o'+ser$i%es

LA%%esse+ 2n+ Jan. 201B.

'a . Yeo 9. Nen'gopa* #. ro"erg J. an+ ran+i% I. (200F). 9*o'+ %omp'ting an+

emerging IT p*atormsD Nision hpe an+ rea*it or +e*i$ering %omp'ting as the Bth

'ti*it.Future %eneration -omputer #ystems 2B(6) pp.BFF616.

9harania . (201). 1hy !ma&on utsourced its Inventory +anagement4 ( nline Inventory

5 rder +anagement #oftware for !ma&on 5 6bay +ultichannel #ellers. Lon*ine

On*ine In$entor C Or+er Management #ot&are or Amaon C /"a M'*ti%hanne*

#e**ers. A$ai*a"*e atD httpDappath.%om"*og&hamaono'tso'r%e+itsin$entor

management

LA%%esse+ 1st Jan. 201B.

9ips.org (201B). utsourcing 7 ffshoring and Insourcing ( The -hartered Institute of

rocurement and #upply. Lon*ine A$ai*a"*e atD

httpsD&&&.%ips.orgen:no&*e+gePro%'rementtopi%san+s,i**sn+erstan+ee+

Mar,etan+optionsassessmentO'tso'r%ingOshoringan+Inso'r%ing

LA%%esse+ 22 e%. 201.

In$entor Management. (2010). 8o/ #anguinis F8(3p1) pp.e2FBe363.

J'*ianne Pepitone (2011). Amaon /92 O'tage o&ns e++it 'ora

Mi**er . (2011).!ma&on 9uys ublin #ite for ata -enter 0 ata -enter $nowledge.

Lon*ine ata 9enter :no&*e+ge. A$ai*a"*e atD

httpD&&&.+ata%enter,no&*e+ge.%omar%hi$es2011020Famaon"'s+'"*insiteor

+ata%enter

LA%%esse+ 2G e%. 201.
http://appath.com/blog/why-amazon-outsourced-its-inventory-management/http://appath.com/blog/why-amazon-outsourced-its-inventory-management/https://www.cips.org/en/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-options-assessment/Outsourcing--Offshoring-and-Insourcing/https://www.cips.org/en/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-options-assessment/Outsourcing--Offshoring-and-Insourcing/https://www.cips.org/en/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-options-assessment/Outsourcing--Offshoring-and-Insourcing/http://www.datacenterknowledge.com/archives/2011/02/09/amazon-buys-dublin-site-for-data-center/http://www.datacenterknowledge.com/archives/2011/02/09/amazon-buys-dublin-site-for-data-center/http://appath.com/blog/why-amazon-outsourced-its-inventory-management/http://appath.com/blog/why-amazon-outsourced-its-inventory-management/https://www.cips.org/en/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-options-assessment/Outsourcing--Offshoring-and-Insourcing/https://www.cips.org/en/Knowledge/Procurement-topics-and-skills/Understand-Need---Market-and-options-assessment/Outsourcing--Offshoring-and-Insourcing/http://www.datacenterknowledge.com/archives/2011/02/09/amazon-buys-dublin-site-for-data-center/http://www.datacenterknowledge.com/archives/2011/02/09/amazon-buys-dublin-site-for-data-center/


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Mi**er . (2011). utage in ublin $nocks !ma&on, +icrosoft ata -enters ffline 0 ata

-enter $nowledge. Lon*ine ata 9enter :no&*e+ge. A$ai*a"*e atD

httpD&&&.+ata%enter,no&*e+ge.%omar%hi$es2011080G*ightningin+'"*in,no%,s

amaonmi%rosot+ata%enterso*ine

LA%%esse+ 3 Jan. 201B.

Mi**er . (2012).!ma&on ata -enter :oses ower uring #torm 0 ata -enter

$nowledge. Lon*ine ata 9enter :no&*e+ge. A$ai*a"*e atD

httpD&&&.+ata%enter,no&*e+ge.%omar%hi$es20120630amaon+ata%enter*oses

po&er+'ringstorm


Mi**er . (2012).+ultiple %enerator Failures -aused !ma&on -loud utage. Lon*ine ata

9enter :no&*e+ge. A$ai*a"*e atD

httpD&&&.+ata%enter,no&*e+ge.%omar%hi$es20120G03m'*tip*egeneratorai*'res

%a'se+amaono'tage


On*ine In$entor C Or+er Management #ot&are or Amaon C /"a M'*ti%hanne* #e**ers

(201B).nline #hipping +anagement #oftware for 6commerce 0 !ppath. Lon*ine

A$ai*a"*e atD httpDappath.%omeat'resshippingmanagement

LA%%esse+ 30 e%. 201.

#sonet&or,.%om (201B).;ew ffshore +arkets< !ma&on delivers customer service from

#outh !frica by 9arbara =odge. Lon*ine A$ai*a"*e atD

httpD&&&.ssonet&or,.%omg*o"a*"'sinessser$i%esarti%*esne&oshoremar,ets

amaon+e*i$ers%'stomerser

http://www.datacenterknowledge.com/archives/2011/08/07/lightning-in-dublin-knocks-amazon-microsoft-data-centers-offline/http://www.datacenterknowledge.com/archives/2011/08/07/lightning-in-dublin-knocks-amazon-microsoft-data-centers-offline/http://www.datacenterknowledge.com/archives/2012/06/30/amazon-data-center-loses-power-during-storm/http://www.datacenterknowledge.com/archives/2012/06/30/amazon-data-center-loses-power-during-storm/http://www.datacenterknowledge.com/archives/2012/06/30/amazon-data-center-loses-power-during-storm/http://www.datacenterknowledge.com/archives/2012/07/03/multiple-generator-failures-caused-amazon-outage/http://www.datacenterknowledge.com/archives/2012/07/03/multiple-generator-failures-caused-amazon-outage/http://appath.com/features/shipping-management/http://appath.com/features/shipping-management/http://www.ssonetwork.com/global-business-services/articles/new-offshore-markets-amazon-delivers-customer-ser/http://www.ssonetwork.com/global-business-services/articles/new-offshore-markets-amazon-delivers-customer-ser/http://www.datacenterknowledge.com/archives/2011/08/07/lightning-in-dublin-knocks-amazon-microsoft-data-centers-offline/http://www.datacenterknowledge.com/archives/2011/08/07/lightning-in-dublin-knocks-amazon-microsoft-data-centers-offline/http://www.datacenterknowledge.com/archives/2012/06/30/amazon-data-center-loses-power-during-storm/http://www.datacenterknowledge.com/archives/2012/06/30/amazon-data-center-loses-power-during-storm/http://www.datacenterknowledge.com/archives/2012/07/03/multiple-generator-failures-caused-amazon-outage/http://www.datacenterknowledge.com/archives/2012/07/03/multiple-generator-failures-caused-amazon-outage/http://appath.com/features/shipping-management/http://www.ssonetwork.com/global-business-services/articles/new-offshore-markets-amazon-delivers-customer-ser/http://www.ssonetwork.com/global-business-services/articles/new-offshore-markets-amazon-delivers-customer-ser/


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The /%onomist (200B).Into !frica. Lon*ine A$ai*a"*e atD

httpD&&&.e%onomist.%omno+e32F38

LA%%esse+ G Jan. 201B.

enep A,sin O. an+ Masini A. (2008). /e%ti$e strategies or interna* o'tso'r%ing an+

oshoring o "'siness ser$i%esD An empiri%a* in$estigation.>ournal of perations

+anagement 26(2) pp.23F2B6.
http://www.economist.com/node/4324938http://www.economist.com/node/4324938


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#trength

Thro'gh IT operation Amaon a"*e to pro$i+e %onsistent ser$i%e to a** the %'stomers &itho't

errors &itho't &asting %'stomer time "e%a'se gaining tr'st rom %'stomer is the ,e o

s'%%ess. In the other han+ IT operation a"*e to re+'%e the %ost o operation an+ h'man

reso'r%es as &e**.

!ea,ness

/$er IT operation re;'ires e*e%tri%it &itho't e*e%tri%it it &i** "e a ?'n,. /*e%tri% so'r%e is

$ita* or Amaon &itho't a proper emergen% po&er s'pp* or po&er generator &i** %a'se

hea$ +amage not on* to Amaon "'t to their %'stomers "'siness at the same time. !itho't

e*e%tri% internet is 'na"*e to &or, means a** the ser$er &i** "e +ea+.

Opport'nit

/$er %o'ntr ha$e their o&n ta*ente+ peop*e. setting 'p IT inrastr'%t're in +ierent

%o'ntr Amaon gain the opport'nit to hire the e7pertise rom +ierent "a%,gro'n+ intoAmaon to manage an+ e7pan+ the "'siness together.

Threats

4or IT operation &or,ing in +ierent %o'ntr is not an eas tas,. 9'stomer ser$i%e might

a"*e to spea, the oreign *ang'ages &ith the oreigner th's the on* %an rea+ rom notes

prepare+. Another threats is e7%hange rate o oreign %'rren% might %hange rom time to

time an+ might in%rease the e7penses spent.

Documents

Managing IT Operations