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The Economics of Microservices (2017 CraftConf)

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The Economics of Microservices (2017 CraftConf)

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The Economics of Microservices (2017 CraftConf)

  1. 1. Phil Calçado - @pcalcado philcalcado.com The Economics of Microservices
  2. 2. (disclaimer)
  3. 3. most organisation these days
  4. 4. enter Conway's
  5. 5. “the microlith wall"
  6. 6. borrowing some tools of thinking
  7. 7. Firms exist when the transaction cost of doing something within the firm, even with all its overhead, is lower than than cost of doing things through a marketplace of free agents.
  8. 8. “[this works well until] the costs of organising an extra transaction within the firm become equal to the costs of carrying out the same transaction by means of an exchange on the open market or the costs of organising another firm"
  9. 9. back to microservices
  10. 10. at first “just add to the monolith" “create a new service for it" transaction cost
  11. 11. inverse conway “just add to the monolith" “create a new service for it" transaction cost
  12. 12. desired “just add to the monolith" “create a new service for it" transaction cost
  13. 13. making the "wrong" thing harder is ok in the beginning
  14. 14. making the "right" thing easier is what takes you to excellence
  15. 15. unpacking transaction cost for microservices
  16. 16. Fowler's
  17. 17. Calçado's • Easy to provision storage • Access to the Edge • Authentication/Authorisation • Standardised RPC (wip)
  18. 18. 1. Rapid provisioning 2. Basic monitoring 3. Rapid deployment 4. Easy to provision storage 5. Access to the Edge 6. Authentication/Authorisation 7. Standardised RPC a proposal
  19. 19. back to economics
  20. 20. "For example, McDonald's can produce both hamburgers and French fries at a lower average expense than what it would cost two separate firms to produce each of the goods separately. This is because McDonald's hamburgers and French fries are able to share the use of food storage, preparation facilities and so forth during production."
  21. 21. monoliths benefit from economies of scope
  22. 22. microservices benefit from economies of scale
  23. 23. so I need to have answers for all these questions before starting?
  24. 24. nope. remember, you have a business to build.
  25. 25. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  26. 26. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  27. 27. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  28. 28. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  29. 29. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  30. 30. 1. Experimentation 2. Checklists and standards 3. Copy & paste 4. Libraries & Tools 5. Platform the five steps
  31. 31. most organisations will not ever get to #4
  32. 32. "Most companies have it all wrong. They don't have to motivate their employees. They have to stop demotivating them."
  33. 33. Q&A

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