Amazon’s Three Businesses




 Consumer (Retail)           Seller                Developers &
     Business               Business              IT Professionals

80+ Million active     Sell on Amazon           On-demand
customer accounts      websites - 1.3 Million   infrastructure for
                       Merchants                hosting web-scale
Seven countries: US,
                                                solutions
UK, Germany, Japan,    Use Amazon
France, Canada,        technology for your      Hundreds of
China                  own retail website       thousands of
                                                registered customers
                       Leverage Amazon’s
                       massive fulfillment
                       center network
Year
1999
Amazon’s History in 30 Seconds
• Transformations
  – From single seller to 1M+ sellers
  – From technology consumer to technology provider
  – From single application to platform
  – From web site & database to a massively distributed system
  – From web site to web services
  – From enterprise scale to web scale
Lessons Learned
Build for Scale

                                Massively
 App Server &      Service
                                Scalable
  Database        Orientation
                                Services
Scaling is tough
Develop   Test   Operate
Undifferentiated
                 heavy lifting
                 • Hardware costs
                 • Software costs
                 • Maintenance
                 • Load balancing
                 • Scaling
Develop   Test   • Utilization         Operate
                 • Idle machines
                 • Bandwidth
                   management
                 • Server hosting
                 • Storage
                   Management
                 • High availability
The 70/30 Switch
The Cloud changes
Lessons Learned                 Leverage the Cloud
Build for Scale

                                    Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability

                                    Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Amazon e-commerce strategy

                        Wide
                      Selection




                     Customers
                       Want

          Fastest                 Lowest
          Delivery                 Price
Massively
App Server &    Service
                             Scalable
 Database      Orientation
                             Services
Amazon.com
Service Oriented Application
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform
                                    Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
The AWS Cloud Platform
                         Tools to access
                         services


                         Cross Service
                         features



                         Platform
                         building blocks




                         Infrastructure
                         building blocks
Platform that provides foundation
to build innovation solutions on top


Platform that provides abstraction
to hide underlying layers (hardware and software)


Platform that is self-service


The Cloud
    is a Platform
         for Platforms
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform
                                    Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
                                    Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Automate
             Everything



Deployment
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
Design for Automation               Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
Design for Automation               Massively
 App Server &      Service
                                    Scalable
  Database        Orientation
                                    Services
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
Design for Automation            API-driven
                                   Massively
 App Server &      Service
                                     Scalable
  Database        Orientation
                                     Services
Predicting Infrastructure costs is not easy
Infrastructure
Cost $




             Large                              You just lost
             Capital                             customers
           Expenditure


                                                            Predicted
                                                            Demand

                                                                Traditional
                                                                Hardware
                           Opportunity
                             Cost
                                                                Actual
                                                                Demand

                                                            Automated
                                                            Elasticity




                                         time
No CapEx
(Capital Expenditure)
Pay as you go
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
Design for Automation            API-driven
                                   Massively
  App Server &        Service
Leverage Elasticity and Save         Scalable
   Database       Orientation
                                     Services
Lessons Learned                 Leverage the Cloud
Build for Scale                  Scalability
Build an E-commerce Platform     Self-Service
Design for Automation            API-driven
                                   Massively
  App Server &        Service
Leverage Elasticity and Save        Scalable
                                 Pay-as-you-go
   Database       Orientation
                                     Services
Cloud Security




Implement Security in every layer
With Cloud, you get physical security for free
Network security is easy to automate
Application security will be your responsibility
Have a security strategy
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                     Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind           Services
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                     Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind          Services
                                   Secure
Listen to customers, not
the HiPPO
 (Highest Paid Person in the
 Organization)
Simple A/B testing Experiment at Amazon.com


               Add an item to your shopping cart at
               a website

               Principal SDE had an idea of showing
               recommendations based on cart items


Pro: cross-sell more items        Con: distract people from checking out
(increase average basket size)    (reduce conversion)


               HiPPO (Highest Paid Person’s Opinion) :
                          Stop the project

                  Simple A/B testing experiment was
                        run, wildly successful
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                     Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind          Services
                                   Secure
Experiment Often
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                      Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind          Services
                                   Secure
Experiment Often                   Focus on Your
                                   Idea
Every e-commerce application will/should have


                        Rich media experience
                        Real-time presence driven
                        User generated content
                        Multi-device access
                        Social graph based
                        Reviews and Recommendations
                        Geo-diversity
                        Integration with social networks
                        Innovative ways to make payments
Review and Ratings
Every e-commerce application will/should have


                        Rich media experience
                        Real-time presence driven
                        User generated content
                        Multi-device access
                        Social graph based
                        Reviews and Recommendations
                        Geo-diversity
                        Integration with social networks
                        Innovative ways to make payments
Every e-commerce application will/should have


                        Rich media experience
                        Real-time presence driven
                        User generated content
                        Multi-device access
                        Social graph based
                        Reviews and Recommendations
                        Geo-diversity
                        Integration with social networks
                        Innovative ways to make payments


                        Powered by the Cloud
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                      Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind          Services
                                   Secure
Experiment Often                   Focus on Your
                                   Idea
Lessons Learned                   Leverage the Cloud
Build for Scale                    Scalability
Build an E-commerce Platform       Self-Service
Design for Automation              API-driven
                                      Massively
  App Server &        Service
Leverage Elasticity and Save          Scalable
                                   Pay-as-you-go
   Database         Orientation
Design with Security in Mind          Services
                                   Secure
Experiment Often                   Focus on Your
                                   Idea
Fórum E-commerce Brasil 2010: Jinesh Varia

Fórum E-commerce Brasil 2010: Jinesh Varia

  • 3.
    Amazon’s Three Businesses Consumer (Retail) Seller Developers & Business Business IT Professionals 80+ Million active Sell on Amazon On-demand customer accounts websites - 1.3 Million infrastructure for Merchants hosting web-scale Seven countries: US, solutions UK, Germany, Japan, Use Amazon France, Canada, technology for your Hundreds of China own retail website thousands of registered customers Leverage Amazon’s massive fulfillment center network
  • 4.
  • 5.
    Amazon’s History in30 Seconds • Transformations – From single seller to 1M+ sellers – From technology consumer to technology provider – From single application to platform – From web site & database to a massively distributed system – From web site to web services – From enterprise scale to web scale
  • 6.
    Lessons Learned Build forScale Massively App Server & Service Scalable Database Orientation Services
  • 7.
  • 8.
    Develop Test Operate
  • 9.
    Undifferentiated heavy lifting • Hardware costs • Software costs • Maintenance • Load balancing • Scaling Develop Test • Utilization Operate • Idle machines • Bandwidth management • Server hosting • Storage Management • High availability
  • 10.
  • 11.
  • 12.
    Lessons Learned Leverage the Cloud Build for Scale Massively App Server & Service Scalable Database Orientation Services
  • 13.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Massively App Server & Service Scalable Database Orientation Services
  • 14.
    Amazon e-commerce strategy Wide Selection Customers Want Fastest Lowest Delivery Price
  • 15.
    Massively App Server & Service Scalable Database Orientation Services
  • 17.
  • 18.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Massively App Server & Service Scalable Database Orientation Services
  • 19.
    The AWS CloudPlatform Tools to access services Cross Service features Platform building blocks Infrastructure building blocks
  • 20.
    Platform that providesfoundation to build innovation solutions on top Platform that provides abstraction to hide underlying layers (hardware and software) Platform that is self-service The Cloud is a Platform for Platforms
  • 21.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Massively App Server & Service Scalable Database Orientation Services
  • 22.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Massively App Server & Service Scalable Database Orientation Services
  • 23.
    Automate Everything Deployment
  • 24.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation Massively App Server & Service Scalable Database Orientation Services
  • 26.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation Massively App Server & Service Scalable Database Orientation Services
  • 27.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Scalable Database Orientation Services
  • 29.
    Predicting Infrastructure costsis not easy Infrastructure Cost $ Large You just lost Capital customers Expenditure Predicted Demand Traditional Hardware Opportunity Cost Actual Demand Automated Elasticity time
  • 30.
  • 31.
  • 33.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Database Orientation Services
  • 34.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Services
  • 35.
    Cloud Security Implement Securityin every layer With Cloud, you get physical security for free Network security is easy to automate Application security will be your responsibility Have a security strategy
  • 36.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services
  • 37.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services Secure
  • 38.
    Listen to customers,not the HiPPO (Highest Paid Person in the Organization)
  • 39.
    Simple A/B testingExperiment at Amazon.com Add an item to your shopping cart at a website Principal SDE had an idea of showing recommendations based on cart items Pro: cross-sell more items Con: distract people from checking out (increase average basket size) (reduce conversion) HiPPO (Highest Paid Person’s Opinion) : Stop the project Simple A/B testing experiment was run, wildly successful
  • 40.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services Secure Experiment Often
  • 41.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services Secure Experiment Often Focus on Your Idea
  • 43.
    Every e-commerce applicationwill/should have Rich media experience Real-time presence driven User generated content Multi-device access Social graph based Reviews and Recommendations Geo-diversity Integration with social networks Innovative ways to make payments
  • 46.
  • 50.
    Every e-commerce applicationwill/should have Rich media experience Real-time presence driven User generated content Multi-device access Social graph based Reviews and Recommendations Geo-diversity Integration with social networks Innovative ways to make payments
  • 51.
    Every e-commerce applicationwill/should have Rich media experience Real-time presence driven User generated content Multi-device access Social graph based Reviews and Recommendations Geo-diversity Integration with social networks Innovative ways to make payments Powered by the Cloud
  • 52.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services Secure Experiment Often Focus on Your Idea
  • 53.
    Lessons Learned Leverage the Cloud Build for Scale Scalability Build an E-commerce Platform Self-Service Design for Automation API-driven Massively App Server & Service Leverage Elasticity and Save Scalable Pay-as-you-go Database Orientation Design with Security in Mind Services Secure Experiment Often Focus on Your Idea