Running a Lean Startup with AWS

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Running a Lean Startup with AWS

  1. 1. Lean Startups with AWS Johannes Borch – AWS Solutions Architect© 2011 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
  2. 2. Launching a startup is challenging ...
  3. 3. Assume customer is knownAssume features are knownAssume solution is known
  4. 4. Waterfall approachYou know the problem and the solution
  5. 5. Known set ofrequirements SPEC BUILD TEST LAUNCH Known ways to satisfy them
  6. 6. Agile methodologiesYou know the problem, not the solution
  7. 7. Known set of requirementsSPEC BUILD TEST VALID? LAUNCH Unknown ways to satisfy them
  8. 8. Most startupsDont know precisely what problem they solve
  9. 9. Lean startups:LEARN & ADAPT
  10. 10. 1. Focus on a simple implementation of your idea
  11. 11. 1. Focus on a simple implementation of your idea2. Start with a minimal core set of features
  12. 12. 1. Focus on a simple implementation of your idea2. Start with a minimal core set of features3. Release and listen to your users
  13. 13. 1. Focus on a simple implementation of your idea2. Start with a minimal core set of features3. Release and listen to your users4. Question your initial assumptions based on feedback
  14. 14. 1. Focus on a simple implementation of your idea2. Start with a minimal core set of features3. Release and listen to your users4. Question your initial assumptions based on feedback5. Rinse and repeat
  15. 15. MVPMinimum Viable Product
  16. 16. MVPSmallest thing I can do to test my idea?
  17. 17. « If youre not embarrassed when you ship your first version you waited too long » Matt Mullenweg CEO & Founder of WordPress
  18. 18. amazon.com, 1995
  19. 19. amazon.com, today
  20. 20. amazon.com, today
  21. 21. Staying lean is creating thesmallest viable product and then iterate around it You dont know precisely your users needs
  22. 22. Unknown set of requirements ITERATEIDEA BUILD RELEASE EVAL OR PIVOT Unknown ways to satisfy them
  23. 23. ITERATEIDEA BUILD RELEASE EVAL OR PIVOT
  24. 24. YOUR problem you have the ideayou dont have the resources
  25. 25. What you have
  26. 26. What they have
  27. 27. Amazon EC2Elastic Compute Cloud
  28. 28. ITERATEIDEA BUILD RELEASE EVAL OR PIVOT
  29. 29. you created a fantastic webapphttp://www.flickr.com/photos/scobleizer/3985020876/
  30. 30. people love your apphttp://www.flickr.com/photos/grantrobertson/4486488831
  31. 31. and everyone wants to use it!
  32. 32. the traditional way…
  33. 33. invest on infrastructure
  34. 34. capacity planning… …capacity guessinghttp://www.flickr.com/photos/mutsmuts/4695658106/
  35. 35. once its deployed… maintenance? monitoring? log analysis? test environments?http://www.old-computers.com/news
  36. 36. Elastic web hosting
  37. 37. InfrastructureCost $ Unable to Large serve Capital customers Expenditure Predicted Demand Traditional Hardware Opportunity Cost Actual Demand Automated Virtualization time
  38. 38. Elasticity is a fundamental property of the cloud that drives many of its economic benefits
  39. 39. When you turn off cloud resourcesyou actually stop paying for them
  40. 40. Web Servers 25% Savings 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hourduring a day
  41. 41. what we really need is… …adjustable capacityhttp://www.flickr.com/photos/purecaffeine/302682456/
  42. 42. unpredictable patterns
  43. 43. Amazon CloudWatchMonitoring system for cloud resources
  44. 44. Auto ScalingAutomatically scale up/down EC2 capacity
  45. 45. Elastic Load BalancingDistributes incoming traffic to EC2 instances
  46. 46. 6 am
  47. 47. 10 am
  48. 48. 10 am
  49. 49. 10 am
  50. 50. 7 pm
  51. 51. 7 pm
  52. 52. 7 pm
  53. 53. predictable patterns
  54. 54. 75% Savings Web Servers 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 Days of the Monthduring a month
  55. 55. SCALEup or down
  56. 56. Amazon S3Simple Storage Service
  57. 57. Amazon S3 GrowthTotal Number of Objects Stored in Amazon S3 762 Billion 262 Billion 102 Billion 40 Billion 2.9 Billion 14 Billion
  58. 58. Amazon SQSSimple Queue Service
  59. 59. Amazon SimpleDBNoSQL database, key-value model
  60. 60. ITERATEIDEA BUILD RELEASE EVAL OR PIVOT
  61. 61. Data baseddecision making
  62. 62. 1. Collect as much data as you can
  63. 63. 1. Collect as much data as you can2. Do A/B testing
  64. 64. 1. Collect as much data as you can2. Do A/B testing3. Drive your development by users feedback
  65. 65. Store valuable data sourcesServer logs, click streams, application events, …
  66. 66. "Hadoop is a reliable storage and data analysis system" HDFS MapReduce
  67. 67. Deploying a Hadoop cluster is hardhttp://eddie.niese.net/20090313/dont-pity-incompetence/
  68. 68. Amazon Elastic MapReduceHadoop + The AWS Cloud
  69. 69. Elastic Data Warehouse Data Warehouse (Batch Processing)Data Warehouse Data Warehouse (Steady State) (Steady State) Shrink to Expand to 9 instances 25 instances
  70. 70. 3.5 billion records, 71 million unique cookies, 1.7 million targeted adsrequired per day User recently purchased a sports movie and Targeted Ad is searching for (1.7 Million per day) video games Leveraged AWS and Elastic MapReduce 100 node cluster on demand Processing time dropped from 2+ days to 8 hours Increased ROAS by 500%
  71. 71. ITERATEIDEA BUILD RELEASE EVAL OR PIVOT
  72. 72. iterateEnhance your product, get more feedback to prepare next releases
  73. 73. Amazon CloudFrontFlexible content delivery network
  74. 74. Amazon RDSRelational Database Service
  75. 75. Amazon ElastiCache Elastic in-memory cache
  76. 76. Amazon DynamoDBFully managed NoSQL database
  77. 77. Low Latency ADMIN Massive and Seamless Scalability Durable and AvailablePredictable Performance Zero Administration
  78. 78. Average reads<5ms, writes<10ms
  79. 79. The platform grows with you Add or remove components as needed Scale up – scale down Pay as you go
  80. 80. PivotIf no traction, pivot to address a different vertical, a different problem
  81. 81. POSSIBLE OFFERINGPOSSIBLE PROBLEM POSSIBLEOFFERING SPACE OFFERING POSSIBLE OFFERING
  82. 82. POSSIBLE OFFERINGPOSSIBLE PROBLEM POSSIBLEOFFERING SPACE OFFERING POSSIBLE OFFERING
  83. 83. Getting the right features matters lessKnowing whats not working, quickly, matters more
  84. 84. Getting the right features matters lessKnowing whats not working, quickly, matters more
  85. 85. « Money is a renewable resource. Time is not » Adil Wali CTO of ModCloth
  86. 86. innovate
  87. 87. “The best, most solid way outof a Crisis in a changing market isthrough experiment and adaptation”– Richard Branson
  88. 88. « Want to increase innovation? Lower the cost of failure » Joli Ito
  89. 89. a prototype shouldnt require big investments
  90. 90. It should be cheap and validate ideas
  91. 91. AWS is a set of infrastructure building blocks
  92. 92. AWS lowers the cost of innovation Testing a new idea is cheap
  93. 93. Lean startup goal is to accelerate the cycle
  94. 94. AWS removesundifferentiated heavy liftingTraditional IT introduce friction that slows the cycle down
  95. 95. FREE TIER!aws.amazon.com/free
  96. 96. Thank you!

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