1
A discussion of disruption and commoditization and how it hasaffected Lonely PlanetDisruption of Publishing – iphone can n...
http://www.amazon.com/Gutenberg-Geek-Kindle-Single-ebook/dp/B007EI62I0This broke the catholic churches monopoly on the pri...
The journey began in 1972 on a park bench in London.Headed off in Minivan bought for $150. Drove it across Europe, and the...
Your margin is my opportunity – Jeff BezosSoftware is eating the world –Marc AndreessenPerhaps the single most dramatic ex...
http://mjperry.blogspot.com.au/2011/07/reversal-of-fortune-amazon-vs-borders.htmlAmazon vs Borders how did the outsourcing...
Where will the next 100million come from?                                            7
Half a century ago, the life expectancy of a firm in the Fortune 500 was around 75years. Now it’s less than 15 years and h...
Software is eating the UniversityCoursera, an upstart company working with selective universities to offer free onlinecour...
2007 – reality distortion affect along comes the iphoneHow does this fit into a 3/5 year strategy when the device doesn’t ...
Consumer Electronics ShowAudi appears to have won the week’s wow-factor contest: It unveiled a car that wasable to park it...
Workday – ERP is ripe for disruptionCRM – salesforceXero – AccountingOur friends in Wall street have been busyHFT as share...
Ipad, iphone, digital chapters, kindle, nokia, androidCityguides – iphone, android, nokiaKindleguides.Digital pdf chapters...
Our Shared Publishing Platform which began as an innovation project in 2009Innovation Paradox – how do you survive today a...
Devs are using agile we are using ITILThrow it over the fence – pre DevopsCultural change                                 ...
Dir of IT returned from this confWe started doing CI, CD and devopsLowering risk of change through tools and cultureOps wh...
17
Macro economic storm on the way!!!But there was a storm comingWe had the GFC, Aussie dollar, and massive disruption to our...
We had to bus case it. Luckily it was lightweight we just had to prove it would notcost us more.Do we build a DC or go to ...
2008 HP, Dell, and IBM accounted for 75 percent of the revenue Intel raked in fromthe sale of processorsToday eight server...
http://etherealmind.com/northbound-api-southbound-api-eastnorth-lan-navigation-in-an-openflow-world-and-an-sdn-compass/   ...
A good way to look at the SDN market is to view the acquisitions made last year.                                          ...
Z curve of strategic valueThree stages of evolution.adoption of business technologies - s curveZ Curve—that plots the tech...
http://blog.gardeviance.org/2012/11/monopolies-commoditisation-and.htmlhttp://blog.gardeviance.org/ @swardley - Researcher...
HP and Rackspace Openstack, Dell on the way. Nasa already.Don’t believe that it is becoming a utility lets look at the cos...
So we had an opportunity to start again and get the culture goingReset – project Rapture the 2nd coming of Devops @LP     ...
Put together a cross functional team (dev, devops, db, tester).Finally we can build a DC using agileNo more constraints2 D...
3 developers pairing building infrastructure – be very afraid – Infra as codeDevs on call???Infrastructure as codeSoftware...
Yes momentCultural reset is working devs are embracing the challenge and want to code their own infrastructure            ...
Experiment…when have we got to do that in Infrastructure???HerokuEngine YardProvisioned iOPsNo more BUFDDaily architecture...
D’dosed by your own marketing department.2011 iceland smoke plume marketing#clickfrenzy#mraBuilding a marketing resilient ...
Engineers can now focus on Higher Value activities which CAN give the companystrategic/competitive value.http://www.amazon...
What have we done so farJenkins and Chef running builds on AWSAuto creation of a fully baked AMI                          ...
Tech Notes from @@luker667                             34
35
36
Trivia Question, who are these guys???Infra As CodeDevOpsAWSGame dayVsRomney trad hosting (Orica – fail whale)            ...
Software is eating the electionhttp://www.theatlantic.com/technology/archive/2012/11/when-the-nerds-go-marching-in/265325/...
39
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Infra coders-slideshare-jan-2013

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"Software is eating the Infrastructure" @infracoders Jan 2013 hosted by @seekjobs

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Infra coders-slideshare-jan-2013

  1. 1. 1
  2. 2. A discussion of disruption and commoditization and how it hasaffected Lonely PlanetDisruption of Publishing – iphone can now store a full library ofbooks on itVirtualisation has changed what we do.Instagram – 13 employees worth 1bn – 2010 100k users 2012100mCycle computing – 50,000 cores 2hrs – 20/25m dollars worth ofgear for 3hrs - $5,000
  3. 3. http://www.amazon.com/Gutenberg-Geek-Kindle-Single-ebook/dp/B007EI62I0This broke the catholic churches monopoly on the printed word, fed the Renaissanceand was a major catalyst for the scientific revolution.The printing press commoditized printed pages, which changed the balance of powerin Europe. The Catholic Church had a monopoly on written information, due to themonks it could employ copying manuscripts by hand. It made doubly sure to protectthat monopoly by writing books in its own proprietary language, Latin, which nobodyelse used anymore.Once information was freed up from monopoly control and put into the hands ofindividuals, it started evolving rapidly in capitalist/Darwinian fashion. New discoveriescould be published and compared with the existing body of knowledge. Mistakescould be corrected, and the state of the art could be widely learned so less time wasspent re-inventing the wheel. 3
  4. 4. The journey began in 1972 on a park bench in London.Headed off in Minivan bought for $150. Drove it across Europe, and then throughTurkey and Iran and into Afghanistan, sold it for a $5 profit.Pakistan and India then up into the Himalayas to Kathmandu. Nepal back into India,took the only flight of the entire trip from Calcutta to Bangkok, hitch-hiked down toSingapore, took a boat to Jakarta in Indonesia and went down through Java to Bali.•Exmouth in Western Australia – arrived on a yacht out of Bali•Australian Company – HQ in Melbourne•1972 - Across Asia on the Cheap.•1500 hundred copies printed and sold – funded their next trip•January 2010 Lonely Planet sold it’s 100 million Guidebook1455 Gutenburg not much has changediphone – June 2007, Now Ipad – april 2010the Wheelers boarded a boat, crossed the English Channel, and began drivingeastward. As the young couple began their trek, they observed a daily budget of $6,crossing Western Europe, the Balkans, Turkey, and into Iran. Once they arrived inAfghanistan, the next country in a dizzying itinerary, the Wheelers sold the Austin andresorted to any transportation mode made available to them. The couple traveled bybus, train, boat, and rickshaw, hitchhiking whenever the need arose. Impulse servedas their guidebook, taking the Wheelers on a meandering course snaking throughPakistan, Kashmir, India, Nepal, Thailand, Malaysia, and Indonesia.
  5. 5. Your margin is my opportunity – Jeff BezosSoftware is eating the world –Marc AndreessenPerhaps the single most dramatic example of this phenomenon of software eating atraditional business is the suicide of Borders and corresponding rise of Amazon. In 2001,Borders agreed to hand over its online business to Amazon under the theory that online booksales were non-strategic and unimportant.Jeff Bezos incorporated the company (as Cadabra) in July 1994, and the site went online asamazon.com in 1995The company was renamed after the Amazon River, one of the largest rivers in the worldBezos wanted a name for his company that began with "A" so that it would appear early inalphabetic order. He began looking through the dictionary and settled on "Amazon" becauseit was a place that was "exotic and different" and it was the river he considered the biggest inthe world, as he hoped his company would be.First profit in the fourth quarter of 2001: $5 million or 1¢ per share, on revenues of morethan $1 billion – High volume, low margin business modelDisruption of Software eating the world“Online book sales are of no strategic value!!!!!” 5
  6. 6. http://mjperry.blogspot.com.au/2011/07/reversal-of-fortune-amazon-vs-borders.htmlAmazon vs Borders how did the outsourcing on the non-strategic online book saleswork out???Book business decliningBy the end of this year, sales of printed travel guides will have fallen by around 40% inthe UK and US since the 2005 peak. 6
  7. 7. Where will the next 100million come from? 7
  8. 8. Half a century ago, the life expectancy of a firm in the Fortune 500 was around 75years. Now it’s less than 15 years and headed for 5 years.Only 13.4% of the Fortune 500 companies in 1955 were still on the list 56 years laterin 2011Almost 87% of the companies have either gone bankrupt, merged, gone private, orstill exist but have fallen from the top Fortune 500 companies 8
  9. 9. Software is eating the UniversityCoursera, an upstart company working with selective universities to offer free onlinecourses, announced this week that it had reached one million registered students. Arival company, Udacity, which also offers what have become known as Massive OpenOnline Courses, or MOOC’s, says it has more than 739,000 students.Netflix last month streamed over 1 billion minutes on their platform. 9
  10. 10. 2007 – reality distortion affect along comes the iphoneHow does this fit into a 3/5 year strategy when the device doesn’t even exist…McKinsey estimates a shortage of 200,000 skilled data managers in the U.S. by 2016A guy who completed a free online Big Data course recently won a KagglecompetitionKaggle has registered 55,000 data scientistsUber, gocatch, ingogo all disrupting the taxi business 10
  11. 11. Consumer Electronics ShowAudi appears to have won the week’s wow-factor contest: It unveiled a car that wasable to park itself and drive short distances at low speeds in response to commandsfrom smartphone app, without anyone in the driver’s seat at all. 11
  12. 12. Workday – ERP is ripe for disruptionCRM – salesforceXero – AccountingOur friends in Wall street have been busyHFT as share of all stock trading.US – 65% of all stock tradingEurope – 45%Australia – 30%The trading malfunction involved Knight Capital buying $5 billion of stock in a tradethat was intended to take place over five weeks but was ultimately executed in just20 minutesPre-tax loss of $440m sending shares lower by over 70% - Software defecthttp://2.bp.blogspot.com/-1bjYD_rmkY0/UCERA8wY-NI/AAAAAAAAABw/1MAs3CYZKgw/s1600/knight-capital-freefall-chart-1.jpg 12
  13. 13. Ipad, iphone, digital chapters, kindle, nokia, androidCityguides – iphone, android, nokiaKindleguides.Digital pdf chaptersNokia ovi mapsAndroid compass guides (augmented reality) 13
  14. 14. Our Shared Publishing Platform which began as an innovation project in 2009Innovation Paradox – how do you survive today and survive tomorrow: polaroppositesSurvival today [adaption] requires “coherence, coordination and stability”Innovation [Survival tomorrow] requires the replacement of these erstwhile virtues.Salaman & Storey
  15. 15. Devs are using agile we are using ITILThrow it over the fence – pre DevopsCultural change 15
  16. 16. Dir of IT returned from this confWe started doing CI, CD and devopsLowering risk of change through tools and cultureOps who think like DevsDevs who think like OpsAutomated infrastructureShared version controlSmall frequent changes, feature flagsMetrics, metrics, metrics (shared)Application level metricsTraditional thinkingDev’s job is to add new featuresOps’ job is to keep the site stable and fastOp’s job is actually to enable the businessThe business requires changeBut change is the root cause of most changes!!!Lowering risk of change through tools and culture 16
  17. 17. 17
  18. 18. Macro economic storm on the way!!!But there was a storm comingWe had the GFC, Aussie dollar, and massive disruption to our core print businessA decision was made to move our lp.com business to the UKThis caused a breakup in a lot of the culture and practices that we had started todevelopTeams went back into their silos 18
  19. 19. We had to bus case it. Luckily it was lightweight we just had to prove it would notcost us more.Do we build a DC or go to the cloud.No strategic value in Lonely Planet running it’s own DCNo competitive advantage 19
  20. 20. 2008 HP, Dell, and IBM accounted for 75 percent of the revenue Intel raked in fromthe sale of processorsToday eight server makers account for 75 percent of Intel’s server chip revenues, andat least one of those eight doesn’t even sell servers. It only makes servers for itself.“Google is something like number five on that list.The large web companies are going straight to the ODM’s (original designmanufacturers) in china and taiwan and getting their own designed serversmanufactured.The same disruption is happening in the network world with a large percentage of10gig ports produced not being sold by the legacy vendors – cisco, juniper, force10etc. 20
  21. 21. http://etherealmind.com/northbound-api-southbound-api-eastnorth-lan-navigation-in-an-openflow-world-and-an-sdn-compass/ 21
  22. 22. A good way to look at the SDN market is to view the acquisitions made last year. 22
  23. 23. Z curve of strategic valueThree stages of evolution.adoption of business technologies - s curveZ Curve—that plots the technology’s potential for providing competitive advantage.http://www.nicholasgcarr.com/digital_renderings/archives/the_z_curve_and_it.shtml 23
  24. 24. http://blog.gardeviance.org/2012/11/monopolies-commoditisation-and.htmlhttp://blog.gardeviance.org/ @swardley - Researcher for the Leading Edge Forum - ITstrategy – his presentation and blog is choc full of interesting materialInfrastructure is now simply the cost of doing business.There is no competitive advantage to running your own InfrastructureAs IT becomes ubiquitous it has no strategic valueAnother disruption is coming from our friends at Amazon – AWS launched in July2002They have commoditised infrastructure“look at Nicholas Carr article” 24
  25. 25. HP and Rackspace Openstack, Dell on the way. Nasa already.Don’t believe that it is becoming a utility lets look at the costs over the last year –dropping.The legacy vendors don’t understand the word down.The bigger the public clouds get the cheaper they get – same high volume low marginbrought to infrastructure – “Your margin is my opportunity”Now google come along with huge experience building large scale computing.Competition is now there. 25
  26. 26. So we had an opportunity to start again and get the culture goingReset – project Rapture the 2nd coming of Devops @LP 26
  27. 27. Put together a cross functional team (dev, devops, db, tester).Finally we can build a DC using agileNo more constraints2 DC builds and migrations plus several other infra integrations with the BBC in mytime at LPHuge complexity, large capex investment and engineering time spent on activitiesthat are of no strategic value to the businessNow available as a utility – innovate and experiment on top of it 27
  28. 28. 3 developers pairing building infrastructure – be very afraid – Infra as codeDevs on call???Infrastructure as codeSoftware is eating the Infrastructure 28
  29. 29. Yes momentCultural reset is working devs are embracing the challenge and want to code their own infrastructure 29
  30. 30. Experiment…when have we got to do that in Infrastructure???HerokuEngine YardProvisioned iOPsNo more BUFDDaily architecture based on evidence and metricsHypothesis based testingProbably try beanstalk as wellWe can now build a DC in an agile mannerDevs wanted to use Heroku – 2 days work we got the app in and tested itIt wasn’t a good fit but it was a great exercise and only took time no cost to the business 30
  31. 31. D’dosed by your own marketing department.2011 iceland smoke plume marketing#clickfrenzy#mraBuilding a marketing resilient applicationWe thought we were getting Dos’d found out via twitter about the marketingcampaign. 31
  32. 32. Engineers can now focus on Higher Value activities which CAN give the companystrategic/competitive value.http://www.amazon.com/Continuous-Integration-Improving-Software-Reducing/dp/0321336380http://www.amazon.com/Continuous-Delivery-Deployment-Automation-Addison-Wesley/dp/0321601912 32
  33. 33. What have we done so farJenkins and Chef running builds on AWSAuto creation of a fully baked AMI 33
  34. 34. Tech Notes from @@luker667 34
  35. 35. 35
  36. 36. 36
  37. 37. Trivia Question, who are these guys???Infra As CodeDevOpsAWSGame dayVsRomney trad hosting (Orica – fail whale) 37
  38. 38. Software is eating the electionhttp://www.theatlantic.com/technology/archive/2012/11/when-the-nerds-go-marching-in/265325/ 38
  39. 39. 39

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