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Scaling Fast & Running Lean
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Scaling Fast & Running Lean

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From our APAC Startup Webinar Series. Presented by Pieter Kemps.

From our APAC Startup Webinar Series. Presented by Pieter Kemps.

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Scaling Fast & Running Lean Scaling Fast & Running Lean Presentation Transcript

  • Startups on AWS:Running Lean & Scaling FastPieter KempsBusiness DevelopmentStartups & Venture Capital
  • You begin your Startup in a garage…
  • …and build a fantastic app
  • people love it!
  • and everyone wants to use it…Now what?!
  • Which company……grew to 14million users in just over a year…reached 150million photos & terabytes of data…signed up 1.0million users in 12 hours after launching an Android app…over 100million active users in January 2013…with only 3 engineers?
  • HOW?
  • “Cloud is like a fertilizer that createsStartups”Eric Ries, author of NY Timesbestseller “The Lean Startup”=
  • “Amazon Web Services is probably the mostimportant thing that has happened to mobileand web app developers that the press justmisses. Jeff Bezos has accidentally or maybeon purpose powered a whole generation ofapplications.”Steve Blank, author of “The FourSteps to Epiphany”
  • “a whole generation of applications…on AWS”E-commerce Social MediaMedia Sharing SaaSGamingMobile AppsBig Data – Hadoop, HPC, etcAd hosting and analyticsStorage, backup, and disaster recoveryLife Sciences (sequencing, simulation, etc.)
  • And all these startups……”are standing on the shoulders of giants”
  • These Asian startups … are getting the same… as these companies:DURABILITYSECURITYSCALABILITYRELIABILITYAFFORDABILITY
  • These Asian startups benefit from AWS… just like these companies:E-COMMERCECONSUMER APPSGAMINGENTERPRISE / SaaSMEDIA
  • Benefits for Startups across the LifecycleThe AWS PlatformRunning Lean & Scaling FastWhat’s Next?TODAY…
  • Benefits for Startups across the LifecycleThe AWS PlatformRunning Lean & Scaling FastWhat’s Next?
  • 01 02 03 04idea demo profitabilityscaleHow do Idevelop fastand get tomarket faster?How do Ideal withunpredictabledemand & scaleup easily?How do I runlean andcontinue to growmy revenue?
  • Launch your infrastructure in a few clicks so you can ReduceTime to MarketPay only what for you use, with no commitment and lock in, so youcan Experiment More at Lower CostsLeverage SDK’s, libraries, deployment tools and more to achieveShorter Development CyclesExperiment More & Develop Faster
  • aws.amazon.com/code aws.amazon.com/architectureCode, Libs, SDK’s, Architectures
  • AWSOpsWorksAWSCloudFormationAWS ElasticBeanstalkWeb AppEnterpriseAppDatabaseDevOps frameworkfor applicationlifecycle managementand automationTemplates to deploy &manage for template-driven provisioningAutomate resourcemanagement – webapps made easyDeployment Tools for Faster DevelopmentDIY /On DemandDo it Yourself, ondemand resources:EC2, S3, customerAMI’s, etc.ControlConvenienceJava, .NET, Ruby, PHP,Python, Node.js
  • “AWS was the clear choice for us. They enabled us to launch our cloudsolution quickly with reliable, uninterrupted, secure service to our customers.”Jaspreet Singh, Founder & CEO
  • Getting Started = FREE“AWS Free Usage Tier = more startups. Awesome”Tweet by Eric RiesElastic Compute Cloud (EC2)Simple Storage Service (S3)DynamoDB & SimpleDBSimple Workflow (SWF)Simple Queue Service (SQS)Simple Notification Service (SNS)Relational Database Service (RDS)CloudWatchData Transfer
  • Full Elasticity for Maximum ScalabilityScale to 1000s of servers in minutesAdd billions of objects with Amazon S3Globally distribute petabytes of dataSelect any level of desired throughputFully automate the process of scaling up & down
  • “We can add server resources easily when we need. It is very important for us becausewe can not predict how many users will play our games. We only have 2 dedicated full-time infrastructure/operation engineers with so many games released. If we were to goon premise, we would have had more engineers, and it would have taken more time tolaunch the business.”
  • Go global in minutes to reach a global audienceFast & Easy customer acquisition leveraging AWS content distributionApplication
  • 70:30Reduce Costs & Grow revenuePay only what for you use, with no commitment and lock in, soNo Up-Front Capital ExpenseLeveraging our large scale, we have reduced our prices 26 timesin the last years, leading to Low CostsAWS removes undifferentiated heavy lifting – allowing you to focuson your business and Generate Revenue
  • Every Day…AWS adds the equivalent server capacityto power Amazon when it was a global,$5.2B enterprise in 20032003$5.2B retail business7,800 employeesA whole lot of servers…
  • Economies of ScaleLower variable expense than companies can achieve themselvesReducedPricesMoreCustomersMore AWSUsageMore Infra-structureEconomies of ScaleLowerCosts
  • On-DemandPay for computecapacity by the hourwith no long-termcommitmentsFor spiky workloads,or to define needsCost Optimization using different purchase modelsReservedMake a low, one-timepayment and receive asignificant discount onthe hourly chargeFor committedutilizationSpotBid for unused capacity,charged at a Spot Pricewhich fluctuates basedon supply and demandFor time-insensitive ortransient workloadsFree TierGet Started on AWSwith free usage & nocommitmentFor POCs andgetting started
  • • 80 million objects stored in S3 with 410 terabytes of user data• 150 EC2 instances in the web tier• 90 instances for in-memory caching• 35 instances used for internal purposes• 70 master databases with a parallel set of backup databases indifferent regions around the world for redundancyPinterest attracted almost 18 million visitors in March, a 50% increase fromFebruary (ComScore). One of the fastest growing sites in the history of the web…
  • • Most traffic happens in theafternoons and evenings, sothey reduce the number ofinstances at night by 40%.• At peak traffic $52 an hour isspent on EC2 and at night,during off peak, the spend isas little as $15 an hour. Thedifference is an amazing 71%
  • Cost optimization through ‘Cost Aware Architecting’…by using:Reduce Cost of…ComputeCloudFront for Caching & OffloadingLoad Balancing & Auto-ScalingStorage Storing derivative objects in S3‘Reduced Redundancy’Storing objects in S3Database Read Replicas and/or ElastiCacheOverall Architecture Leverage range of managed services
  • AWS Pricing PhilosophyPay as you goPay less per unit when you use morePay even less when you reserve• Reserved pricingPay even less when you architect for cost optimization• Smart architecting and leveraging AWS managed servicesPay even less as AWS grows• AWS economies of scale result in continuous price reductionsWhat does this look like in practice?
  • An exampleEnterprise software provider in APACFocused on SaaS for storage, security, collaboration, etc.Backed by leading VC’s in the regionStrong growth – winning customers globallyFocused on profitability & reducing unit costsWorked closely with the AWS team to optimize its architecture
  • MarginGrowth-10%price dropin S3-20%RI purchase-22%MigrationCassandrato Dynamo-18%Price drop inS3 of 25%54%reduction inunit costs“Based on a True Story”
  • Benefits for Startups across the LifecycleThe AWS PlatformRunning Lean & Scaling FastWhat’s Next?
  • The AWS PlatformAWS Global InfrastructureApplication ServicesNetworkingDeployment & AdministrationDatabaseStorageCompute
  • AWS Global Infrastructure9 Regions25 Availability Zones39 Edge locationsContinuous Expansion
  • Networking ServicesAmazon VPC AWS DirectConnect Amazon Route 53AvailabilityZone BAvailabilityZone APrivate, isolatedsection of the AWSCloudPrivate connectivitybetween AWS and yourdatacenterDomain Name System(DNS) web service.Amazon CloudFrontDistribute contentglobally
  • Compute ServicesAmazon EC2 Auto ScalingElastic LoadBalancingActualEC2Elastic Virtual serversin the cloudDynamic trafficdistributionAutomated scalingof EC2 capacity
  • Storage ServicesAmazon EBSEBSBlock storage for usewith Amazon EC2Amazon S3ImagesVideosFilesBinariesSnapshotsInternet scalestorage via APIAWS Storage GatewayS3,GlacierIntegrates on-premisesIT and AWS storageAmazon GlacierImagesVideosFilesBinariesSnapshotsStorage for archivingand backup
  • Database ServicesAmazon RDS Amazon DynamoDBManaged relationaldatabase serviceManaged NoSQLdatabase serviceDBAAmazon EastiCacheManaged Databasecashing service
  • Deployment & AdministrationAmazonCloudWatchAWS Identity &Access MgmtMonitor resources Manage users,groups &permissionsAmazon Cloud SearchSimple Queuing ServiceSimple Email ServiceSimple Notification ServiceSimple Workflow ServiceSoftware Developer Kits…+ Many Others:
  • Benefits for Startups across the LifecycleThe AWS PlatformRunning Lean & Scaling FastWhat’s Next?
  • HOW?
  • Your applicationYour business & what makes you uniqueInnovation, not undifferentiated heavy liftingSpending developer time in the right place(Deep insight alert: Developer Time = Money)FOCUS!
  • "Startups are all about focus. AWS enables focus"Ray Bradford, Kleiner Perkins, Caulfield & Byers
  • Running Lean & Scaling FastAWS managed services allow you to focusThis? or this?Managing your DataServing CustomersBig DataUS EMEA APACCloudFrontElastic MapReduce+ +Amazon RDS
  • Serving CustomersWhy would you need a Content Delivery Network (CDN)?Low latency data serving (e.g. advertising, gaming)Log file (e.g. web, gaming, or ad server) processing and analyticsSentiment analysis (“What are customers saying about my company andmy brand?”)Large scale Extract-Transform-Load (ETL)Exploratory and ad hoc analyticsRecommendation and Personalization enginesMulti- and Omni-channel analytics• Improves customer experience with faster page loads, especially mobile• SEO benefits: site speed and load times are important to search engineranking– A study by Google showed that every ½ second of page load time dropped customertraffic by 20%. Google factors in page load times in their quality score• Makes your site more reliable and scalable• Provides protection: redundancy across multiple servers/locations• Reduces costs, by off-loading calls to your compute instance
  • Serving CustomersAmazon CloudFront delivers tangible benefitsLow latency data serving (e.g. advertising, gaming)Log file (e.g. web, gaming, or ad server) processing and analyticsSentiment analysis (“What are customers saying about my company andmy brand?”)Large scale Extract-Transform-Load (ETL)Exploratory and ad hoc analyticsRecommendation and Personalization enginesMulti- and Omni-channel analytics• Low latency: Improves content load times• Redundant: Eliminates single points of failure• Scalable: Ensure great experience as number of end users grows• Global: Worldwide network provides great experience globally• Cost-effective: Pay as you go model with low prices• High bandwidth: Enables high bit rate HD video and otherbandwidth-heavy applications
  • Amazon CloudFrontTop Startups leverage CloudFront for customer acquisitionFast Beautiful Photo Sharing• 100 million Monthly Active Users• 40 million Photos Per Day• 1000 Comments Per Second• Millions of users in Asia• Terabytes of photos stored onS3, distributed via CloudFrontDelivering Fun Globally• 9GAG is the largest fun sharingcommunity in the world• 78M monthly visitors, 1.2 billionmonthly page views, 3 engineers• 500startups, Ycombinator• Users CloudFront for websiteand all content distributionReaching the world from Beijing• Top 10 social game developer onFacebook and other top SNS• Grew 1M users to 3M users withinthree months.• Spin up >300 servers globally, allmanaged by 1 engineer in Beijingaws.amazon.com/solutions/case-studies/funplus-game/aws.amazon.com/solutions/case-studies/9gag/
  • Big DataTypical Big Data use casesLow latency data serving (e.g. advertising, gaming)Log file (e.g. web, gaming, or ad server) processing and analyticsSentiment analysis (“What are customers saying about my company andmy brand?”)Large scale Extract-Transform-Load (ETL)Exploratory and ad hoc analyticsRecommendation and Personalization enginesMulti- and Omni-channel analytics• Low latency data serving: e.g. advertising, gaming• Log file processing and analytics: e.g. web, mobile, gaming,or ad server• Sentiment analysis: social networking, ad serving• Recommendation and Personalization engines: web apps,mobile apps, e-commerce
  • Big DataMultiple managed AWS services for Big DataAmazon EMR(Elastic Map Reduce)Amazon Redshift AWS DynamoDB• Managed, elastic Hadoop cluster• Integrates with S3 & DynamoDB• Leverage Hive & Pig scripts• Integrates with instance typessuch as spot• Data Warehousing the AWS Way• Scalable low latency data query• Rapidly analyze petabytes of data• 1/10 the cost of traditional DW• Automated deployment & admin• Compatible with popular BI tools• Provisioned throughput NoSQLdatabase• Fast, predictable performance• Fully distributed, fault tolerantarchitecture• Fully managed, zero admin
  • Big DataAWS Big Data services adopted by Top StartupsAmazon EMR Amazon Redshift AWS DynamoDBRecommendation Engine• Runs about 200 EMR jobs perday, processing 3TB of data• Saved $55K in upfront hardwarecosts and get up and running in amatter of days not months• “With AWS, our developers cannow do things they couldn’t before”Web Analytics• Comparison between Hive onHadoop cluster vs Redshift• 2 tests: for one, Redshift was 5xfaster, for the other 20x faster• More impressive was cost saving:$13.60/hour versus $57/hour.Redshift is 76% cheaperManaging Metadata• Needed a DB engine that can do12K reads + 12K writes per sec.• Scalability to deal with 1.2TB /100GB of metadata per customer• “…a very smooth experience.Thank you AWS for a great offering”https://aws.amazon.com/solutions/case-studies/yelp/ druva.com/blog/2012/05/23/insync-makes-to-aws-dynamodb/http://nerds.airbnb.com/redshift-performance-cost
  • Big Data Benefits of AWSBenefits of Big Data on AWSBig DataPotentially massive datasetsIterative, experimental style ofdata manipulation and analysisNot a steady-state workload;peaks and valleysTime to results is key• Massive, virtually unlimited capacity – Store andAnalyze GBs, TBs, or PBs of data withouthardware investment• Iterative, experimental style of infrastructuredeployment/usage• Low cost experimentation• Highly efficient with highly variable workloads• Easy deployment – fully managed services• Fast – parallel compute clusters
  • Try out DynamoDB – for FREE!100 MBof Storage5 Unitsof WriteCapacity10 Unitsof ReadCapacity
  • Amazon Relational Database Service (RDS)Database is at the core of every startup:Low latency data serving (e.g. advertising, gaming)Log file (e.g. web, gaming, or ad server) processing and analyticsSentiment analysis (“What are customers saying about my company andmy brand?”)Large scale Extract-Transform-Load (ETL)Exploratory and ad hoc analyticsRecommendation and Personalization enginesMulti- and Omni-channel analyticsWeb appsMobile AppsGamingMedia serving / sharingSocial networksDevelopment and testingEnterprise apps / SaaSEtc.
  • “Your users around the world don’t care thatyou wrote your own DB”Mike Krieger, Instagram Cofounder
  • Amazon RDSFully managed Relational database service that is simple todeploy, easy to scale, reliable and cost-effectiveAmazon Relational Database Service(RDS)Easy to DeploymentFully AutomatedPush Button Scalability
  • Amazon RDSTangible benefits for fast scaling startups• Save up to 60% time managing DBs• Provision your DB in minutes, enabling rapid time to market• Migrate easily from existing databases• Standard administration and management tools• Automates backup/restore/archival as well as version upgrades &patches• Automates database failover and replication
  • Problem:Outgrew existing IT environmentSolution:AWS’s elasticity made it easy to respond todemand peaks and saved money during offpeak timesBusiness Benefits:Scaled to handle 10 million visitors per dayReduced time-to-market and dev timeAmazon RDSGaming company scaling to millions of users
  • Problem:Needed to reduce IT costs and were looking to create amore flexible and scalable IT environment that can helpserver customers across the globeSolution:With every request, the application authenticates devicesusing RDS, delivers apps and content, and pushesnotifications.Business Benefits:Overall by running on AWS, saved $34M in hardware andmaintenance expenses, 85% less than running on-premisesAmazon RDSSignificant savings for Samsung SmartHub
  • Try out Amazon RDS – for FREE!750hrsMicro DBInstance20 GBof DBStorage20 GBfor Backups,10MM I/Os
  • Benefits for Startups across the LifecycleThe AWS PlatformRunning Lean & Scaling FastWhat’s Next?
  • Visit aws.amazon.com/startups3 more Startup webinars:1. From Idea to MVP on AWS May 72. From MVP to Scale on AWS May 213. From Scale to Profitability on AWS June 4Sign up here: aws.amazon.com/apac/startupwebinarsFill up your feedback form !
  • Questions?Pieter KempsBusiness DevelopmentStartups & Venture Capital