Dynamics of Cloud
and its 3 Impacts on SW Development, IT Operations & B2B Engagement
Hasan Basri AKIRMAK
Mentor at ITU Seed, Cloud Evangelist at Ericsson
https://tr.linkedin.com/in/hasanbasriakirmak
This session was presented in Ericsson
on April 4th 2017.
“The standard B2B operating model was designed to optimize vendor’s “push” of
prepackaged products to customers via large, up-front deals. The goal was usually to
get the maximum amount of product assets transferred from the vendor’s balance sheet
to the customer’s balance sheet in one big order. But today the assumption that a
customer can determine in advance exactly what it needs and then take on all the
responsibility for the level of value that it gets from a complex business product is
becoming less acceptable. Customers need their suppliers to step up and get into the
outcome game. The old B2B model doesn’t make Sense in digitalization. “
[J.B. Wood]
The statement above forecasts that the whole operating model of enterprises, from
marketing to product development and customer support will change. Also many other
industry reports argue that a combination Digital Distribution, Digital Products, Big Data
Analytics along with Software Defined Infrastructure, DevOps and cloud practices will
have disruptive impacts on how we do business in the near future.
In this seminar, we share our opinion why enterprises need to have an aggressive digital
transformation agenda and we must make “cloud first” the mantra for our future business
success.
In the first part of this seminar, we’ll focus on non-technical stakeholders, and we’ll have
an overview of impact of cloud technologies on B2B products and services. What are
the best practices for on-demand, scalable, highly available, reliable software platforms?
How does self-service, elasticity, resource pooling and automation impact the costs and
revenues? How does access to ubiquitous cloud infrastructure and open source big
data tools empower every individual?
In the second part of this seminar, we’ll go into some technical details and give
architectural examples for realizing enterprise grade platforms that scale from 1 to 1M
users on cloud, the way Instagram, Netflix or Uber have created their software. You’ll
also have an understanding of the products and services that are used by
entrepreneurs to bring an innovation from idea to execution using various cloud services
in months. Examples are: Shopify (storefront), ZenDesk (Customer Support), Amazon
(AWS) Cloud (API Gateway, Server-less Computing, Virtual servers, WebScale storage,
Notification Service, O&M Fault and Performance Monitoring & Logging, Infrastructure as
Code, DevOps, Image Processing)
Abstract
İTÜ Çekirdek - Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 4
The opinions expressed here represent my
own and not those of my employer or any
other trademarks/companies mentioned
herein.
DISCLAIMER
Creative Commons License
Licensees may copy, distribute, display and
perform the work and make derivative works
and remixes based on it only if they give the
author or licensor the credits (attribution).
LICENSE
İTÜ Çekirdek - Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 5
Cloud Democratizes Advanced Technologies.
Technologies that are difficult to implement can
become easier to consume by pushing that
knowledge and complexity into the cloud
vendor's domain.
For example, NoSQL databases, media
transcoding, and machine learning are all
technologies that require expertise that is not
evenly dispersed across the technical
community.
Every service –which once accessible to only
the Fortune 1000 CIO’s can be consumed by
anyone.
Prologue
Link to article: https://www.linkedin.com/pulse/how-experiment-impact-democratizing-access-cloud-big-hasan-basri
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Recommended Reading
The arguments I built in this presentation is based on several thought provoking authors’ work. Here are the major ones from my library.
TechnicalBusiness
Versatile
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What to expect from this session
› Part 1
–“From B2B to B4B” – Outcome Game
–“The Business Case for SaaS” – TCO Impact
–“Ripple Effect” – Intangible Benefits
–“Godzilla” – Delivering Performance the other Way
› Part 2
–“Democratizing Enterprise Grade”– An Experiment
–“Digital Distribution” – Marketing, Sales, Customer Support
–“Product Development” – Compute, Storage, Data, Space & Time
–“IT Operations” – Management, Monitoring
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B4B: Business For Business
Outcome Game › Digital products and digital distribution impact:
› “The standard B2B operating model was designed to
optimize vendor’s “push” of prepackaged products to
customers via large, up-front deals. The goal was usually
to get the maximum amount of product assets
transferred from the vendor’s balance sheet to the
customer’s balance sheet in one big order. But today the
assumption that a customer can determine in advance
exactly what it needs and then take on all the
responsibility for the level of value that it gets from a
complex business product is becoming less acceptable.
Customers need their suppliers to step up and get into
the outcome game. The old B2B model doesn’t make
Sense in digitalization “
› [J.B. Wood]
Source:
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› Revenue Drivers
– Consider upfront payments
– Contract Length & discounts
– Monthly Recurring Revenues
– Churn effect (Retention Rate > 100%)
› Best Practices
– CAC – Cost of Acquiring Customer
› Digital marketing to help you
– LTV – Customer’s Life Time Value
› Retaining the subscriber
› Add-on sales (new features, or
increase consumption) vs. increase
users
SaaS Business Case – Revenues
Source: http://www.forentrepreneurs.com/saas-sales-compensation-plan/
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SaaS Business Case – Costs
› Cost Drivers
– IT infrastructure components
› CAPEX: Acquisition Costs
- Server, Storage
- Networking: Use Internet as Primary
Mode of Distribution
- SW Development: Reliability,
Availability, Security
› OPEX: Operation Costs
– Support Costs
– Cost of Performance
› Risk Mitigation Costs
› How much Data can we afford to lose?
› How much downtime can we accept?
Diagram Source: AWSSource: http://www.forentrepreneurs.com/saas-sales-compensation-plan/
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Cloud
Product Development
Maintenance
Licensing/PricingIntegration / SI / Delivery
IT Outsourcing
Networking
Security
StorageCompute
Digital Alternative Ripple Across all Markets
Gartner 2016
Marketing & Sales
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Porter’s Generic Value Chain
Digitalization, IT and Cloud impacts every aspect of an enterprise
Digital Distribution
Digital Products
DigitalizationofIT
Consumerization
ofIT
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What to expect from this session
› Part 1
–“From B2B to B4B” – Outcome Game
–“The Business Case for SaaS” – TCO Impact
–“Ripple Effect” – Intangible Benefits
–“Godzilla” – Delivering Performance the other Way
› Part 2
–“Democratizing Enterprise Grade”– An Experiment
–“Digital Distribution” – Marketing, Sales, Customer Support
–“Product Development” – Compute, Storage, Data, Space & Time
–“IT Operations” – Management, Monitoring
Part 2
Architecting technology solutions with the four pillars of security, reliability,
performance efficiency, and cost optimization.
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› Compare your current on-premises environment to your FUTURE STATE, RE-
ARCHITECTED cloud environment. NOT a replica of what exists today.
Cloud is more than a Technology
Business Agility
› Rapid experimentation.
› Faster app development
› Faster business decisions
Source: ReInvent 2016
Workforce Productivity
› Self service culture
› Increased automation
› Attracting & retaining talent
Operational Resilience
› Improved Service Performance
› Less Downtime
› Less bugs
Other (In)tangible Benefits you can qualify
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Putting Pieces Together
A Scalable SaaS Platform Implementation
AWS API
(order fulfilment triggered by e-commerce platform)
AWS CloudFormation
Infrastructure as Code
AWS Lambda
Send login and web address information
to customer
per email using SES
AWS CloudWatch
Infra & Application layer
Fault & Performance Monitoring
AWS CloudTrail
Compliance reporting (Log of all requests
to AWS account and API)
AWS Config
Resource Configuration Management
keeping track of versions of every resource
AWS DynamoDB
Metadata repository (file name, size…)
AWS S3
Storage with 99.999999999% durability
Tenant isolation by buckets
AWS SNS
Email notifications to
Operations Team
about alarms
AWS EC2
Compute service for Open Source Sync Sw
Single tenant for tenant isolation
AWS EBS
NAS Storage service, for EC2 cache
AWS ASG
Replaces EC2 in case
of sys or health check errors
AWS Route 53
DNS Service
Shopify.com
SaaS E-Commerce Platform as sales channel
Zendesk.com
SaaS Customer Support Channel
:
A Marketplace for Partner
Products, Solutions or
SaaS running on AWS
AWS IAM
MFA & Cross Account
Access to Confounders
Bitnami.com
3PP Baseline AMIAWS CloudFront
CDN for Joomla Microsite
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Shopify Services
› eCommerce as a Service.
› Online stores for goods and
services
› Storefront
› Product catalogue
› Payment GW integration
› Track/Respond to Orders
Digital Distribution
And its implication: Consumerization of the Enterprise IT
Shopify in Numbers
› Shopify stores in 175 countries
in the world!
› 380K merchants (35-88% CAGR)
› 290M pproducts added in 2016
› 11K partners
› 100M shoppers (~90% CAGR)
› Peak transactions: $555K USD/minute
› 130Kmerchants used Shopify Mobile
› Over 30,000 merchants integrated
Facebook Messenger
Source: https://www.shopify.com/2016
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Digital Marketing & Advertising
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Customer Support
Zendesk Services
› Web, Mail, Phone Channels
› Community Forum
› Knowledge Base, FAQs
› Services to measure and publish
the QoS / QoE (Customer
Satisfaction Review Score, Average
Response Time, Resolution Time)
Zendesk in Numbers
› Shopify customers in 135 countries
in the world!
› 15K customers
› 70M served customers
› 100M service interactions/year
› Example customers:
Source: https://s2.q4cdn.com/278771905/files/doc_presentations/June2015/ZEN-Investor-Presentation-060115_v001_x764zz.pdf
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Performance Efficiency in the cloud is composed of four areas:
1 Compute
2. Storage
3. Database
4. Space-time trade-off
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Godzilla will visit you one day
Image: IMDB
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In the cloud, test how your system fails, and validate your recovery procedures.
› Backup
› HA (High Availability)
› Scalability
› DR (Disaster Recovery)
› Rightscaling
for each workload via software & automation
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› Use Instance Types: Bicycle to
Truck. Honda to Ferrari
› Embrace VM Images from
Marketplace & Bitnami
› Drive the Maserati with a by the
hour price or from a spot market
› Use scale Up by changing
instance type with a simple
restar
› Use Scale Out with Auto scaling
› Use Load Balancing & DNS for
distributing load, and adaptive
performance
Compute
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› Share info
› Extract insight
› Recognize patterns
› Track performance
› Ultimately make better business,
technical and operational decisions.
What Can You Do with all this Data?
Generation
Collection & Storage
Analytics & computation
Collaboration & Sharing
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Storage Parameters
› Kind of access method Block, file, or object
› Patterns of access Random or sequential
› Throughput required IOPS, SSD vs. HDD
› Frequency of access Online, offline, archival
› Frequency of update WORM, dynamic
› Availability and durability constraints 99 vs. 99.9…9% and more
Storage
The optimal storage solution for a particular system will vary based on parameters
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Storage
› Use DAS for Ephemeral storage
› Use NAS for persistence VM storage
› Remember: Disks fail! Take snapshots,
backups, consider RAID
› JBOD good for big data, DWH, log file storage
wo
› Instance Types optimized for Sequential
access good for log file, time based storage
› Random Access good for DB, HPC…
› Use flash storage for high IOPS, use spinning
disks for low cost
› Storage IOPS dimensioning is a key
performance factor. Starts from 100 can go up
to 20.000 and over with sharding architectures
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› Select appropriate service based on
– Pattern & Structure
– Performance (R/W, Latency, hot vs. cold)
– Scalability (Parallel R/W, Max Capacity)
– Availability (HA, Service Access: 99% till 99.999%)
– Durability (InMem Cache vs 99.999999999%)
– Cost and API
› E.g.
Relational DB, Big Data & Analytics
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COMPUTE
Manage Storage & Compute Resources
Separately in Cloud
STORAGE
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TENANT ID ITEM ID
T1 230
T2 3434
Multitenancy & Data Partitioning
Tenant 1 Tenant 2
Schema
Schema
Separate storage/DB
for each tenant
Single storage/DB,
multiple URI/schemas
Common DB, single
schema
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SaaS Architecture – Apps vs Ops View
Data Partitioning
Tenant Isolation
Identity
Profiling&Analytics
Management&Monitoring
Metering,Billing&Tenant
Administration
Do NOT neglect the Operational View!
AppView
Technical and Business Agility
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› Use Automation:
– Learn to implement your “Infrastructure as Code”
– Logging in and checking the CPU manually is not scalable!
› Actively track KPIs
– Resource Level: CPU load, disk IO, network traffic
– Business level: Response times, RTO and RPO, Costs …
› Implement self healing
– Example 1:
› Monitoring: Send an alarm when cache is 80%
› Action: Purge cache automatically when 90%
– Example 2:
› Monitoring: Sense list of IP’s generating unsuccessful SSH
attempts.
› Action: Block those IP’s by adding them to firewall blacklist rules
automatically
Managing your infrastructure at scale
Monitor your instances post launch to ensure they are performing as expected?
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Understand the Types of Data and
Use the Right Tool for the Job
DB & Search Tier
Apps
Cache
MemCached, Redis
NoSQL
Cassandra, DynamoDB
Hbase, MongoDB
SQL
MySQL, Oracle,
SQL Server, Postgres
Search
ElasticSearch,
CloudSearch
File Storage
EBS, S3, Glacier
Stream Storage
Kinesis, DynamoDB
Example
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1. Customer/Employee/Partner expectations has changed. Traditional Marketing, Sales, Customer Support, HR,
Product Development won’t stay intact.
2. Go and look into Fabulous 4. Their technology, their organizational culture, and how they attract and retain talent.
3. Embrace a cloud-first digitalization approach for rapid experimentation and accelerated enterprise metabolism..
Summary
Source: https://s2.q4cdn.com/278771905/files/doc_presentations/June2015/ZEN-Investor-Presentation-060115_v001_x764zz.pdf
Customer/Employee/Partner expectations:
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If you found this session useful, please “endorse” me in LinkedIn for areas like:
Business Development, Business Planning, Go-To-Market Strategy, Consulting,
Product Management, Product Strategy, Cloud Computing, Entrepreneurship.
THANK YOU
Hasan Basri AKIRMAK
Differentiate in Information Technology
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Further References
The Best Practices explained here and used in the scalable SaaS platform implementation are based on several
advanced AWS Seminars and whitepapers.
AWS ReInvent 2015 Sessions available on YouTube
1. DVO315 Log Monitor Events with AWS CloudWatch, Lambda and Dashboards. Link
2. BDT317 Building a Data Lake on AWS. Link
3. WEB401 Optimizing your Web Server on AWS. Link
4. SEC313 Security by Design. Link
5. DEV203 AWS API Gateway and Lambda. Link
6. DVO303 Scaling Infrastructure Operations AWS Config and AWS CloudTrail. Link
7. ISM402 Cost Optimization at Scale. Link
8. ARC302 Running Lean Architectures: Optimizing for Cost Efficiency. Link
AWS ReInvent 2016 Sessions (Not available on YouTube yet)
1. ARC301 Architecting Next Generation SaaS
2. ENT308 Building a Solid Business Case for Cloud Migration
APN (AWS Partner Network) Webcasts (You need to be an AWS Partner to access this content)
1. SaaS Architecture
2. Amazon EC2 Masterclass Webcast
AWS Whitepapers
1. AWS Well Architected Framework. Link
2. Managing Infrastructure at Scale. Link

Dynamics of Cloud and its Impact on Software Development - IT Operations and B2B Engagement

  • 1.
    Dynamics of Cloud andits 3 Impacts on SW Development, IT Operations & B2B Engagement Hasan Basri AKIRMAK Mentor at ITU Seed, Cloud Evangelist at Ericsson https://tr.linkedin.com/in/hasanbasriakirmak
  • 2.
    This session waspresented in Ericsson on April 4th 2017.
  • 3.
    “The standard B2Boperating model was designed to optimize vendor’s “push” of prepackaged products to customers via large, up-front deals. The goal was usually to get the maximum amount of product assets transferred from the vendor’s balance sheet to the customer’s balance sheet in one big order. But today the assumption that a customer can determine in advance exactly what it needs and then take on all the responsibility for the level of value that it gets from a complex business product is becoming less acceptable. Customers need their suppliers to step up and get into the outcome game. The old B2B model doesn’t make Sense in digitalization. “ [J.B. Wood] The statement above forecasts that the whole operating model of enterprises, from marketing to product development and customer support will change. Also many other industry reports argue that a combination Digital Distribution, Digital Products, Big Data Analytics along with Software Defined Infrastructure, DevOps and cloud practices will have disruptive impacts on how we do business in the near future. In this seminar, we share our opinion why enterprises need to have an aggressive digital transformation agenda and we must make “cloud first” the mantra for our future business success. In the first part of this seminar, we’ll focus on non-technical stakeholders, and we’ll have an overview of impact of cloud technologies on B2B products and services. What are the best practices for on-demand, scalable, highly available, reliable software platforms? How does self-service, elasticity, resource pooling and automation impact the costs and revenues? How does access to ubiquitous cloud infrastructure and open source big data tools empower every individual? In the second part of this seminar, we’ll go into some technical details and give architectural examples for realizing enterprise grade platforms that scale from 1 to 1M users on cloud, the way Instagram, Netflix or Uber have created their software. You’ll also have an understanding of the products and services that are used by entrepreneurs to bring an innovation from idea to execution using various cloud services in months. Examples are: Shopify (storefront), ZenDesk (Customer Support), Amazon (AWS) Cloud (API Gateway, Server-less Computing, Virtual servers, WebScale storage, Notification Service, O&M Fault and Performance Monitoring & Logging, Infrastructure as Code, DevOps, Image Processing) Abstract
  • 4.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 4 The opinions expressed here represent my own and not those of my employer or any other trademarks/companies mentioned herein. DISCLAIMER Creative Commons License Licensees may copy, distribute, display and perform the work and make derivative works and remixes based on it only if they give the author or licensor the credits (attribution). LICENSE
  • 5.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 5 Cloud Democratizes Advanced Technologies. Technologies that are difficult to implement can become easier to consume by pushing that knowledge and complexity into the cloud vendor's domain. For example, NoSQL databases, media transcoding, and machine learning are all technologies that require expertise that is not evenly dispersed across the technical community. Every service –which once accessible to only the Fortune 1000 CIO’s can be consumed by anyone. Prologue Link to article: https://www.linkedin.com/pulse/how-experiment-impact-democratizing-access-cloud-big-hasan-basri
  • 6.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 6 Recommended Reading The arguments I built in this presentation is based on several thought provoking authors’ work. Here are the major ones from my library. TechnicalBusiness Versatile
  • 7.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 7 What to expect from this session › Part 1 –“From B2B to B4B” – Outcome Game –“The Business Case for SaaS” – TCO Impact –“Ripple Effect” – Intangible Benefits –“Godzilla” – Delivering Performance the other Way › Part 2 –“Democratizing Enterprise Grade”– An Experiment –“Digital Distribution” – Marketing, Sales, Customer Support –“Product Development” – Compute, Storage, Data, Space & Time –“IT Operations” – Management, Monitoring
  • 8.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 9 B4B: Business For Business Outcome Game › Digital products and digital distribution impact: › “The standard B2B operating model was designed to optimize vendor’s “push” of prepackaged products to customers via large, up-front deals. The goal was usually to get the maximum amount of product assets transferred from the vendor’s balance sheet to the customer’s balance sheet in one big order. But today the assumption that a customer can determine in advance exactly what it needs and then take on all the responsibility for the level of value that it gets from a complex business product is becoming less acceptable. Customers need their suppliers to step up and get into the outcome game. The old B2B model doesn’t make Sense in digitalization “ › [J.B. Wood] Source:
  • 9.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 10 › Revenue Drivers – Consider upfront payments – Contract Length & discounts – Monthly Recurring Revenues – Churn effect (Retention Rate > 100%) › Best Practices – CAC – Cost of Acquiring Customer › Digital marketing to help you – LTV – Customer’s Life Time Value › Retaining the subscriber › Add-on sales (new features, or increase consumption) vs. increase users SaaS Business Case – Revenues Source: http://www.forentrepreneurs.com/saas-sales-compensation-plan/
  • 10.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 11 SaaS Business Case – Costs › Cost Drivers – IT infrastructure components › CAPEX: Acquisition Costs - Server, Storage - Networking: Use Internet as Primary Mode of Distribution - SW Development: Reliability, Availability, Security › OPEX: Operation Costs – Support Costs – Cost of Performance › Risk Mitigation Costs › How much Data can we afford to lose? › How much downtime can we accept? Diagram Source: AWSSource: http://www.forentrepreneurs.com/saas-sales-compensation-plan/
  • 11.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 12 Cloud Product Development Maintenance Licensing/PricingIntegration / SI / Delivery IT Outsourcing Networking Security StorageCompute Digital Alternative Ripple Across all Markets Gartner 2016 Marketing & Sales
  • 12.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 13 Porter’s Generic Value Chain Digitalization, IT and Cloud impacts every aspect of an enterprise Digital Distribution Digital Products DigitalizationofIT Consumerization ofIT
  • 13.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 14 What to expect from this session › Part 1 –“From B2B to B4B” – Outcome Game –“The Business Case for SaaS” – TCO Impact –“Ripple Effect” – Intangible Benefits –“Godzilla” – Delivering Performance the other Way › Part 2 –“Democratizing Enterprise Grade”– An Experiment –“Digital Distribution” – Marketing, Sales, Customer Support –“Product Development” – Compute, Storage, Data, Space & Time –“IT Operations” – Management, Monitoring
  • 14.
    Part 2 Architecting technologysolutions with the four pillars of security, reliability, performance efficiency, and cost optimization.
  • 15.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 16 › Compare your current on-premises environment to your FUTURE STATE, RE- ARCHITECTED cloud environment. NOT a replica of what exists today. Cloud is more than a Technology Business Agility › Rapid experimentation. › Faster app development › Faster business decisions Source: ReInvent 2016 Workforce Productivity › Self service culture › Increased automation › Attracting & retaining talent Operational Resilience › Improved Service Performance › Less Downtime › Less bugs Other (In)tangible Benefits you can qualify
  • 16.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 17 Putting Pieces Together A Scalable SaaS Platform Implementation AWS API (order fulfilment triggered by e-commerce platform) AWS CloudFormation Infrastructure as Code AWS Lambda Send login and web address information to customer per email using SES AWS CloudWatch Infra & Application layer Fault & Performance Monitoring AWS CloudTrail Compliance reporting (Log of all requests to AWS account and API) AWS Config Resource Configuration Management keeping track of versions of every resource AWS DynamoDB Metadata repository (file name, size…) AWS S3 Storage with 99.999999999% durability Tenant isolation by buckets AWS SNS Email notifications to Operations Team about alarms AWS EC2 Compute service for Open Source Sync Sw Single tenant for tenant isolation AWS EBS NAS Storage service, for EC2 cache AWS ASG Replaces EC2 in case of sys or health check errors AWS Route 53 DNS Service Shopify.com SaaS E-Commerce Platform as sales channel Zendesk.com SaaS Customer Support Channel : A Marketplace for Partner Products, Solutions or SaaS running on AWS AWS IAM MFA & Cross Account Access to Confounders Bitnami.com 3PP Baseline AMIAWS CloudFront CDN for Joomla Microsite
  • 17.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 18 Shopify Services › eCommerce as a Service. › Online stores for goods and services › Storefront › Product catalogue › Payment GW integration › Track/Respond to Orders Digital Distribution And its implication: Consumerization of the Enterprise IT Shopify in Numbers › Shopify stores in 175 countries in the world! › 380K merchants (35-88% CAGR) › 290M pproducts added in 2016 › 11K partners › 100M shoppers (~90% CAGR) › Peak transactions: $555K USD/minute › 130Kmerchants used Shopify Mobile › Over 30,000 merchants integrated Facebook Messenger Source: https://www.shopify.com/2016
  • 18.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 19 Digital Marketing & Advertising
  • 19.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 20 Customer Support Zendesk Services › Web, Mail, Phone Channels › Community Forum › Knowledge Base, FAQs › Services to measure and publish the QoS / QoE (Customer Satisfaction Review Score, Average Response Time, Resolution Time) Zendesk in Numbers › Shopify customers in 135 countries in the world! › 15K customers › 70M served customers › 100M service interactions/year › Example customers: Source: https://s2.q4cdn.com/278771905/files/doc_presentations/June2015/ZEN-Investor-Presentation-060115_v001_x764zz.pdf
  • 20.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 21 Performance Efficiency in the cloud is composed of four areas: 1 Compute 2. Storage 3. Database 4. Space-time trade-off
  • 21.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 22 Godzilla will visit you one day Image: IMDB
  • 22.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 23 In the cloud, test how your system fails, and validate your recovery procedures. › Backup › HA (High Availability) › Scalability › DR (Disaster Recovery) › Rightscaling for each workload via software & automation
  • 23.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 24 › Use Instance Types: Bicycle to Truck. Honda to Ferrari › Embrace VM Images from Marketplace & Bitnami › Drive the Maserati with a by the hour price or from a spot market › Use scale Up by changing instance type with a simple restar › Use Scale Out with Auto scaling › Use Load Balancing & DNS for distributing load, and adaptive performance Compute
  • 24.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 25 › Share info › Extract insight › Recognize patterns › Track performance › Ultimately make better business, technical and operational decisions. What Can You Do with all this Data? Generation Collection & Storage Analytics & computation Collaboration & Sharing
  • 25.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 26 Storage Parameters › Kind of access method Block, file, or object › Patterns of access Random or sequential › Throughput required IOPS, SSD vs. HDD › Frequency of access Online, offline, archival › Frequency of update WORM, dynamic › Availability and durability constraints 99 vs. 99.9…9% and more Storage The optimal storage solution for a particular system will vary based on parameters
  • 26.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 27 Storage › Use DAS for Ephemeral storage › Use NAS for persistence VM storage › Remember: Disks fail! Take snapshots, backups, consider RAID › JBOD good for big data, DWH, log file storage wo › Instance Types optimized for Sequential access good for log file, time based storage › Random Access good for DB, HPC… › Use flash storage for high IOPS, use spinning disks for low cost › Storage IOPS dimensioning is a key performance factor. Starts from 100 can go up to 20.000 and over with sharding architectures
  • 27.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 28 › Select appropriate service based on – Pattern & Structure – Performance (R/W, Latency, hot vs. cold) – Scalability (Parallel R/W, Max Capacity) – Availability (HA, Service Access: 99% till 99.999%) – Durability (InMem Cache vs 99.999999999%) – Cost and API › E.g. Relational DB, Big Data & Analytics
  • 28.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 29 COMPUTE Manage Storage & Compute Resources Separately in Cloud STORAGE
  • 29.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 30 TENANT ID ITEM ID T1 230 T2 3434 Multitenancy & Data Partitioning Tenant 1 Tenant 2 Schema Schema Separate storage/DB for each tenant Single storage/DB, multiple URI/schemas Common DB, single schema
  • 30.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 31 SaaS Architecture – Apps vs Ops View Data Partitioning Tenant Isolation Identity Profiling&Analytics Management&Monitoring Metering,Billing&Tenant Administration Do NOT neglect the Operational View! AppView Technical and Business Agility
  • 31.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 32 › Use Automation: – Learn to implement your “Infrastructure as Code” – Logging in and checking the CPU manually is not scalable! › Actively track KPIs – Resource Level: CPU load, disk IO, network traffic – Business level: Response times, RTO and RPO, Costs … › Implement self healing – Example 1: › Monitoring: Send an alarm when cache is 80% › Action: Purge cache automatically when 90% – Example 2: › Monitoring: Sense list of IP’s generating unsuccessful SSH attempts. › Action: Block those IP’s by adding them to firewall blacklist rules automatically Managing your infrastructure at scale Monitor your instances post launch to ensure they are performing as expected?
  • 32.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 33 Understand the Types of Data and Use the Right Tool for the Job DB & Search Tier Apps Cache MemCached, Redis NoSQL Cassandra, DynamoDB Hbase, MongoDB SQL MySQL, Oracle, SQL Server, Postgres Search ElasticSearch, CloudSearch File Storage EBS, S3, Glacier Stream Storage Kinesis, DynamoDB Example
  • 33.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 36 1. Customer/Employee/Partner expectations has changed. Traditional Marketing, Sales, Customer Support, HR, Product Development won’t stay intact. 2. Go and look into Fabulous 4. Their technology, their organizational culture, and how they attract and retain talent. 3. Embrace a cloud-first digitalization approach for rapid experimentation and accelerated enterprise metabolism.. Summary Source: https://s2.q4cdn.com/278771905/files/doc_presentations/June2015/ZEN-Investor-Presentation-060115_v001_x764zz.pdf Customer/Employee/Partner expectations:
  • 34.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 37 If you found this session useful, please “endorse” me in LinkedIn for areas like: Business Development, Business Planning, Go-To-Market Strategy, Consulting, Product Management, Product Strategy, Cloud Computing, Entrepreneurship. THANK YOU Hasan Basri AKIRMAK Differentiate in Information Technology
  • 35.
    İTÜ Çekirdek -Creating Startups that Rock | Creative Commons CC0 - Attribution License | https://www.linkedin.com/in/hasanbasriakirmak | 2016-12-13 | Page 38 Further References The Best Practices explained here and used in the scalable SaaS platform implementation are based on several advanced AWS Seminars and whitepapers. AWS ReInvent 2015 Sessions available on YouTube 1. DVO315 Log Monitor Events with AWS CloudWatch, Lambda and Dashboards. Link 2. BDT317 Building a Data Lake on AWS. Link 3. WEB401 Optimizing your Web Server on AWS. Link 4. SEC313 Security by Design. Link 5. DEV203 AWS API Gateway and Lambda. Link 6. DVO303 Scaling Infrastructure Operations AWS Config and AWS CloudTrail. Link 7. ISM402 Cost Optimization at Scale. Link 8. ARC302 Running Lean Architectures: Optimizing for Cost Efficiency. Link AWS ReInvent 2016 Sessions (Not available on YouTube yet) 1. ARC301 Architecting Next Generation SaaS 2. ENT308 Building a Solid Business Case for Cloud Migration APN (AWS Partner Network) Webcasts (You need to be an AWS Partner to access this content) 1. SaaS Architecture 2. Amazon EC2 Masterclass Webcast AWS Whitepapers 1. AWS Well Architected Framework. Link 2. Managing Infrastructure at Scale. Link