Financial Death Trap as a Service: Cloud Computing Providers - Boaz Menuhin, Oracle Data Cloud - DevOpsDays Tel Aviv 2016
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Financial Death Trap as a Service: Cloud Computing Providers - Boaz Menuhin, Oracle Data Cloud - DevOpsDays Tel Aviv 2016
- 1. Financial death trap as a service: Cloud computing providers Boaz Menuhin
- 2. Boaz Menuhin Works at Oracle Data Cloud (ex-Crosswise) We sell Data We process a lot of data Petabyte scale every week
- 4. 1st step - The basics
- 5. 2nd step - Build a golden cage
- 6. 3th step - offer common usage as a service
- 7. 4rd step - make money on the side
- 8. 5th step - Make sure no one understands the pricing Example: (AWS) Glacier data retrievals are priced based on the peak hourly retrieval capacity used within a calendar month
- 12. Bad habit
- 13. So what should we do?
- 14. Hack the pricing model
- 15. Some of our hacks: - Built our own ELB - Built our own SQS - Hacked the way Amazon wants us to use EMR - Rely heavily on Spot instances
- 16. Thank you Why yes, my dear, indeed, we are hiring! boaz.menuhin@gmail.com
Editor's Notes
- For many startups in general and for bigdata companies in particular it makes more sense to use cloud providers. Mostly because of elasticity and because time is spent on business logic and algorithms instead of on maintaining hardware. The problem is - this is what processing a lot of data looks like when running on cloud
- The reason is that every calculation we make is parallelized on thousands of cores in order to finish on time. The naive usage of cloud providers would have cost us 2 millions of dollars every year. In order to survive we had to hack the pricing model many times. We had to think like a cloud service provider. And the first thing one needs to understand is how cloud providers works. So lets say you want to become a cloud service provider
- The first step is just to offer the basics, which are computing and storage. Notice, storage is just an application on top of computing
- Don’t let your users play with others. They don’t need no fancy external dns service. You can provide them with anything they need. Provide them with DNS service, load balancer, CDN. Notice: DNS, CDN, loadbalancer are just application built on top of your computing service
- Take a google instance, put mysql on and wrap nicely, and you’ve got yourself Google’s Cloud SQL Take an ec2 instance, put redis on and wrap nicely and you’ve got yourself Amazon’s Elasticache As noticed - this are just applications on top of your computing service.
- Fully utilize idle resources. You may call it spot\volatile instances, containers, serverless web, whatever. Just find a way to sell your idle resources. Notice: this is just selling your extra computing services - when they talk about “economy of scale” this is one essential part of it.
- It may be written in a confusing way, but the way cloud providers charge is actually rather simple
- The X axis is the usage The y axis if how much you pay So it makes sense to pay the more you use, but the marginal cost for heavy users is relatively low. And for a good reason. You see the red line, the red line is where it pays to build your own service on top of the computing service
- discount
- Should we give up on cloud computing service providers? Should we build and maintain our own data centers? Should we go to a deserted island and set a bonfire with stones? Yes - but that’s not the point!
- We should hack the pricing model. Hacking the pricing model is