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Build or Buy? Moving Your Email to the Cloud
The document discusses the challenges and costs associated with in-house email management versus the benefits of outsourcing to cloud-based solutions like SendGrid. It highlights issues such as deliverability, usability, and budget, along with the importance of email as a primary communication channel for companies like StumbleUpon. The presentation emphasizes the need for businesses to evaluate their email infrastructure and consider cloud options to improve scalability and efficiency.
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Similar to Build or Buy? Moving Your Email to the Cloud
Build or Buy? Moving Your Email to the Cloud
- 1. Build vs. Buy CarlyBrantz Director Of Marketing Brian O’Neill Product Manager 12/13/2012
- 2. Housekeeping ReadyTalk Conference ToolsConsole • View in Full Screen mode Questions for Carly, Brian and StumbleUpon • Ask questions by using the CHAT function • When the presentation begins, you will see the chat box as a floating window to use at any time • We will answer as many questions as possible and those that we don’t get to in a follow up blog Follow up • You will get an email with a link to the recording and a copy of all slides
- 3. Today’sARE WHO WE Speakers Carly Brantz carly.brantz@sendgrid.com @carlybrantz Brian O’Neill Brian.oneill@sendgrid.com @emailpm Tali Leff Nimish Parmar 3
- 4. Company Overview • FoundedJuly 2009 $27M venture capital raised Series B closed Jan 2012 • TechStars graduate (Boulder, CO) • 110 employees across 4 offices – HQ: Boulder, CO – R&D: Anaheim, CA / Romania Angel investors include: • Scott Petry (Founder, Postini) • Matt Mullenweg (Founder, Wordpress) 4
- 5. Delivering Email atScale Serving 60,000+ customers Sending over 6 billion emails per month Transactional and marketing email solutions 5
- 6. The Challenges ofEmail This is a metaphor
- 7. The Challenges ofEmail Your Mail Server Easy, right?
- 8. The Challenges ofEmail ISPs AOL Yahoo Goog Your Mail Live Server .edu Etc… Spam Still easy, right? Folder
- 9. The Challenges ofEmail ISPs AOL Yahoo Goog Your Mail Live Server .edu Etc… Spam uh… Folder
- 10. The Challenges ofEmail ISPs BlackLists AOL SORBS Yahoo BSB Goog CBL Your Mail Live PSBL Server SPAM .edu COP Etc… Etc… Spam wait… Folder
- 11. The Challenges ofEmail ISPs BlackLists Quick Note: These lines do not represent actual agreements between AOL SORBS domains and blacklist providers… Yahoo BSB Goog CBL Your Mail Live PSBL Server SPAM .edu COP Etc… Etc… Spam email… Folder
- 12. The Challenges ofEmail Spam ISPs BlackLists Filters AOL SORBS Goog Bright Yahoo BSB Mail Mail Goog CBL Trust Your Mail Spam Assassi Live PSBL Server n SPAM MSG .edu Labs COP Etc… Etc… Etc… Spam stahp! Folder
- 13. The Challenges ofEmail Blacklists • Multiple Providers • Ever changing and many require action Many SPAM Filters • Distinct Rules and Limits 1,000’s of Email Service Providers 1,000,000’s of Domain
- 14. The Challenges ofEmail Email Security is Serious • Phishing and Spear phishing attacks up 56% in 2012 • Companies are targeted directly. • Virus and other mal-ware distribution A metaphor courtesy of Martin Clothing Email is ALWAYS on High-Alert!
- 15. The Challenges ofEmail So many Email Must Be Responsive metaphors! • Throttling must respond to server messages • Hosts, ISPs, and other vendors make changes that require your app to adjust its tendencies
- 16. The Challenges ofEmail In-House Email Costs! • Email Delivery Experts are a requirement to achieve delivery at scale. • Scaling is expensive and requires planning This lady knows what I’m talking about. • Any delivery impact is a direct and indirect cost.
- 17. The Costs In-House Scaling •Hardware – Rackspace – Hosting – Installation – Planning This is all very expensive.
- 18. The Costs In-House Scaling •Software – Licenses – Upgrades – Installations – Integrations – Testing
- 19. The Costs Additional Considerations •Staff – Upgrades, Installations, Maintenance • Email Deliverability I’m expensive. – Loss of revenue – Resources for firefighting – 20% goes undelivered
- 20. Why the (Quote)Cloud(Unquote) Whatbusiness factors drive the move to the cloud. Reduced Cost • 52% Reduced Time To Market • 41% Operational Efficiencies • 39% Source: http://www.capgemini.com/
- 21. Cloud Based Benefits •Reasons to make a cloud move – Agility – Infrastructure Cost Reduction – Reduced IT Management Resources – Increased Capacity – Increased Productivity
- 22. Cloud Based Benefits Howfar have you gotten in cloud adoption? Embarking Early Maturing Near Adoption Maturity • 92% of IT Executives say cloud adoption is good for business • 67% of IT Executives say cloud helps IT deliver better systems for less money • 62% of IT Executives say SaaS apps give business
- 23.
- 24. Overview: About StumbleUpon •25M+ Registered Users • 25% of Stumbles on mobile • 7 hours/month spent Stumbling
- 25. Overview: Key EmailNumbers • 30 different types of email • 20M+ weekly rec emails sent/month • 25M+ emails sent per month • 2M+ clicks per month
- 26. Email’s Role inStumbleUpon Why email is important: • It’s our #1 communication channel to users • It’s a way for us to communicate, engage & educate • It’s a way to reach out to inactive users Types of emails: • Ongoing & automated • One-time sends • Testing groups
- 27.
- 28. SendGrid APIs Full event API integration Use HBase as the primary datastore Data validation and reference
- 29. Why Outsource? 1. DeliverabilityIssues • We were doing everything in house • Didn’t have relationships or experience in general with ISPs, and had a lot of deliverability issues • Decided on a 3rd party solution to handle deliverability load and provide best practices • Our end goal: make sure our emails get delivered to our users’ inboxes.
- 30. Why Outsource 2. Usability •Wantedto manage email creation and management in- house • Needed flexibility • Didn’t need a full suite solution 3. Budget & Style • Budget conscious • Didn’t need to outsource everything • Wanted to stay focused and data driven
- 31. Making the RightChoice • Determine the true cost of maintaining your own email infrastructure. • Outline your requirements and research reputable providers • Compare your on-premise costs with that of a Cloud provider. • Get customer feedback. 31
- 32. Why SendGrid? Our infrastructureis ready to scale and meet the demand at any moment, thereby eliminating your email headaches so that you can focus on your core product and meet the email demands of your business.
Editor's Notes
- #7 Email is a work in progressEmail has many partnersEmail is always on high alertEmail needs to be responsiveEmail experts are neededEmail costs are changing
- #8 I’m going to give you a quick rundown of the challenges of sending email at scale. I say it’s quick because, well… obviously it’s super easy.
- #9 Each domain has their own rules and restrictionsMessages per minuteMessages per connectionMessage size limitsNumber of re-trys
- #10 FurtherEach domain has their own response codes and different interpretations
- #11 Alsothere are about 45 reputable blacklist providers out there that are utilized by the numerous domains to assist in in providing assurance to their recipients.
- #12 Alsothere are about 45 reputable blacklist providers out there that are utilized by the numerous domains to assist in in providing assurance to their recipients.
- #13 And…Enterprises employ spam filters which further restrict email deliverabilityFor instance, as per the most recent Return path studyPostini, the most widely use spam filter, delivers only 23% of email to the inbox
- #14 Work In progressincreased usage leads to new challenges in maintenance, delivery, and scalabilityNeed to maintain up-time, reliability, and consistencyvery resource intensive requiring dedicated personnel, specialized expertise and monetary commitment to grow and expand.Email has many partnersEmail dependent providers require integration (CRM’s, MAP, etc.)Need email integration specialist to streamline and create efficiencies between multiple platformsincluding directories, applications, mobile, security, collaboration tools like team workspaces and web conferencing
- #15 Email is always on high-alertEmail security is a constant battleDevelopers struggle to protect their network from malicious mail and criminal activityFirst half of 2012 saw a 56% increase in successful spear phishing attacks and tech companies are most targetedMust be able to rapidly deploy filtering software in order to safeguard systems from nefarious circumstances
- #16 Email needs to be responsiveRapid deployments of upgrades and migrations are happening at a fast clipDevelopment is charged with designing and executing processes that provide access to new innovation
- #17 Email experts are neededSpecializations are emerging in the area of delivery, analysis, and security to handle growing complexity of email landscape.The time needed to handle email operations has grownOrganizations without an established email expert on staff lean on own engineering and dev resources to fill gapCost of maintaining in house systems has skyrocketedSMBs and startups who are laser focused on rapid profitability opt for outsourced solutions
- #18 Email Hardware and Softwarefront loaded costs for hardware and software purchasebe sure to add in licenses, upgrades and ongoing maintenance including power, facility costs and overall operating expenses. (+ Financing costs)
- #19 Email Hardware and Softwarefront loaded costs for hardware and software purchasebe sure to add in licenses, upgrades and ongoing maintenance including power, facility costs and overall operating expenses. (+ Financing costs)
- #20 StaffAdd the number of people required to support ALL aspects of your email serviceIncludes IT professionals, email operations, email deliverability experts, and marketingEmail deliverability20% of email goes undeliveredROI implications resulting from poor deliverability (failure is a bad option)Loss of revenue, additional engineering time, hire deliverability specialist if something goes wrong to deal with ISPs
- #21 Reasons for cloud adoptionCIO Global Cloud Computing Adoption survey says top reasons areBusiness agility, infrastructure cost reduction, reduction in IT management and resources, increased capacity, increased productivitySecurity still serves as gating factor when making move to SaaS solution
- #22 Reasons for cloud adoptionCIO Global Cloud Computing Adoption survey says top reasons areBusiness agility, infrastructure cost reduction, reduction in IT management and resources, increased capacity, increased productivitySecurity still serves as gating factor when making move to SaaS solution
- #23 Better cost controlpay as you go models allow you to ramp up on actual need rather than projected needno upfront capital expenseRapid implementation and maintenancehosted email can initiate upgrades and configure software from a central point and deploy it system wide.Access to email deliverability expertsWhen outsourcing email to a reputable provider you get access to expertise that would be hard to find and expensive to hireGreater flexibilityPlenty of room for steady or rapid growth57% of companies say scalability is the primary factor driving cloud adoptionBetter use of internal expertiseDevelopment teams can focus on building better products and protecting networks
- #33 SendGrid is a cloud-based service that replaces your company’s email infrastructure and provides everything you need to operate a reliable and scalable outbound email delivery system.4 value propositionsDeliverability – [more] email to the inboxMetrics – [better] understand email performanceScalability – email [more] through the cloudFlexibility – [better] solutions through [more] APIs