Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Serverless is more FinDev than DevOps

2,244 views

Published on

A lot of the discussions around serverless has been about the benefits it brings to the table with regards to DevOps - more infrastructure automation, scalability and resilience out-of-the-box. Developers love it because they can offload even more undifferentiated heavy-lifting to their cloud vendors, and they can focus their energy on building the things their users want. Businesses benefit hugely too because they have happier developers who can deliver value faster!

But the true power of the serverless paradigm, for the business, is the pay-per-invocation model. It allows them to finally understand the cost of user transactions, and calculate the return on investment of features. And if you embrace this superpower then it can even open the door to an entirely new business model built around pay-per-transaction and give your business the competitive advantage over your rivals.

Published in: Technology
  • DOWNLOAD FULL BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Serverless is more FinDev than DevOps

  1. 1. Serverless is more FinDev than DevOps Yan Cui @theburningmonk
  2. 2. Yan Cui http://theburningmonk.com @theburningmonk Principal Engineer @ Independent Consultant
  3. 3. available in Austria, Switzerland, Germany, Japan, Canada, Italy and US
  4. 4. available on 30+ platforms
  5. 5. ~1,000,000 concurrent viewers
  6. 6. follow @dazneng for updates about the engineering team We’re hiring! Visit engineering.dazn.com to learn more. WE’RE HIRING!
  7. 7. AWS user since 2009
  8. 8. AWS user since 2009
  9. 9. https://productionreadyserverless.com
  10. 10. https://productionreadyserverless.com get 40% off everything at Manning.com with ctwsrvscardiff19
  11. 11. What do you mean by ‘serverless’?
  12. 12. “Serverless”
  13. 13. Gojko Adzic It is serverless the same way WiFi is wireless. http://bit.ly/2yQgwwb
  14. 14. Serverless means… don’t pay for it if no-one uses it don’t need to worry about scaling don’t need to provision and manage servers
  15. 15. “Function-as-a-Service” AWS Lambda Azure Functions Google Cloud Functions Auth0 Webtask Spotinst Functions Kubeless IBM Cloud Functions
  16. 16. AWS Lambda
  17. 17. AWS Lambda API Gateway IOT SNS Kinesis CloudWatch
  18. 18. IaaS Function Application Runtime Container OS Virtualization Hardware CaaS Function Application Runtime Container OS Virtualization Hardware PaaS Function Application Runtime Container OS Virtualization Hardware FaaS Function Application Runtime Container OS Virtualization Hardware User User (scalable unit) Provider
  19. 19. IaaS Function Application Runtime Container OS Virtualization Hardware CaaS Function Application Runtime Container OS Virtualization Hardware PaaS Function Application Runtime Container OS Virtualization Hardware FaaS Function Application Runtime Container OS Virtualization Hardware User User (scalable unit) Provider
  20. 20. Serverless FaaS other services… Database Storage BI
  21. 21. Simon Wardley Serverless will fundamentally change how we build business around technology and how you code.
  22. 22. Why serverless?
  23. 23. more Scalable (and scales faster!)
  24. 24. Cheaper (don’t pay for idle servers)
  25. 25. Resilience (built-in redundancy and multi-AZ)
  26. 26. Secure
  27. 27. request blue-green deployment req/s auto-scaling us-east-1a us-east-1b us-east-1c multi-AZ
  28. 28. the DevOps forcethe DevOps force is strong with serverlessis strong with serverless
  29. 29. idea production choose language + framework master language + framework figure out deployment configure AMI configure ELB configure autoscaling capacity planning over-provision for launch are we doing microservices? configure CI/CD
  30. 30. idea production choose language + framework master language + framework figure out deployment configure AMI configure ELB configure autoscaling capacity planning over-provision for launch are we doing microservices? configure CI/CD
  31. 31. idea production greater Velocity from idea to product
  32. 32. minimise undifferentiated heavy-lifting
  33. 33. less ops responsibility on your shoulders
  34. 34. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html
  35. 35. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html the new business models around worth based development and the collision of finance and development will literally knock your socks off. Which is why the moniker "FinDev". Beyond the initial investment in coding, I can create an almost variable cost business model and redirect investment to maximise returns in ways that most of you have never experienced. I know, I’ve been there.
  36. 36. Do you know what’s ROI? Radio-on-Internet man! Return on Investment
  37. 37. buy low, sell high
  38. 38. refactoring “invest energy now to save cognitive load later” translation
  39. 39. YAGNI principle “don’t invest in things with no known return value” translation
  40. 40. premature optimization is the root of all evil translation “don’t invest in things with no known return value”
  41. 41. revenue
  42. 42. easy to measure revenue
  43. 43. ??? revenue
  44. 44. AWS easy to measure revenue
  45. 45. AWS, Engineers essential, rare, and expensive revenue
  46. 46. AWS, Engineers, Real Estate $$$$$$$$!!! revenue
  47. 47. AWS, Engineers, Real Estate, Tools revenue
  48. 48. AWS, Engineers, Real Estate, Tools, Managers revenue essential, rare, and expensive
  49. 49. recruitment is one of the most important things you can do as an employee it’s also a significant investment
  50. 50. https://bit.ly/2FTXk4q
  51. 51. Cheaper (don’t pay for idle servers) this is a distraction from the true saving from serverless
  52. 52. Thinking about serverless costs the right way
  53. 53. Model Training Low-latency Prediction Serving via Batching
  54. 54. developer but I build CRUD web APIs, why should I care if Lambda is a bad fit for machine learning and serving realtime predictions?
  55. 55. https://aws.amazon.com/solutions/case-studies/financial-engines/
  56. 56. https://www.doc.ic.ac.uk/~rbc/papers/fse-serverless-17.pdf “This paper presents two case industrial studies of early adopters, showing how migrating an application to the Lambda deployment architecture reduced hosting costs – by between 66% and 95%…”
  57. 57. if you wear your shoes on your hands, should you really be surprised your feet is cold? (hint: it’s not because the shoes are not warm!)
  58. 58. leverage: do more with less
  59. 59. idea production choose language + framework master language + framework figure out deployment configure AMI configure ELB configure autoscaling capacity planning over-provision for launch are we doing microservices? configure CI/CD
  60. 60. request blue-green deployment req/s auto-scaling us-east-1a us-east-1b us-east-1c multi-AZ
  61. 61. Serverless might cost you just as much, or even more, but you get so much more done
  62. 62. 6 developers, 6 months 95% saving against EC2 15x no. of production releases per month
  63. 63. “what’s the ROI of feature X?”
  64. 64. how much time does it take to build? how many engineer does it take to build?
  65. 65. how much does it cost to run it?
  66. 66. $5/hr $5/hr 1 TPS 1000 TPS $0.00138888888 per transaction $0.00000138888 per transaction actual cost per transaction depends on usage, which is outside your control
  67. 67. TPS Cost/Transaction
  68. 68. $5/hr ? TPS runs multiple services/features
  69. 69. $5/hr ? TPS runs multiple services/features how do you attribute the cost for each feature?
  70. 70. understanding the operational cost for individual features are very difficult
  71. 71. We should forget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Donald Knuth
  72. 72. We should forget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Yet we should not pass up our opportunities in that critical 3%.Donald Knuth
  73. 73. input output engineering time lower operational cost to run the feature
  74. 74. input output engineering time lower operational cost to run the feature this is pretty $$$
  75. 75. cost of the conversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month
  76. 76. cost of the conversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month break-even time for conversation: $400 ÷ $10/month = 40 months!!!
  77. 77. We should forget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Yet we should not pass up our opportunities in that critical 3%.Donald Knuth
  78. 78. $5/hr hard to attribute cost to individual feature runs multiple services/features unpredictable cost per transaction
  79. 79. PAY PER USE
  80. 80. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
  81. 81. Simon Wardley the new business models around worth based development and the collision of finance and development will literally knock your socks off. Which is why the moniker "FinDev". Beyond the initial investment in coding, I can create an almost variable cost business model and redirect investment to maximise returns in ways that most of you have never experienced. I know, I’ve been there.
  82. 82. Pay-per-use as a competitive advantage
  83. 83. “how do you price your product?”
  84. 84. Business Model how you plan to make money?
  85. 85. “If you're not paying for the product, you are the product.”
  86. 86. generates revenue with memberships usage of equipments cause wear and tear, adds maintenance/upkeep and staffing cost
  87. 87. Business Model Many people would sign up for membership, but few would make use of their membership regularly.
  88. 88. subscription-based services
  89. 89. £ subscription fee percentile 80% profit! loss…
  90. 90. transactional/metered/pay-per-use
  91. 91. £ percentile your premium what you charge your customer what the transaction costs you
  92. 92. https://productionreadyserverless.com
  93. 93. subscription-based transactional (pay-per-use)
  94. 94. Online learning platforms loves the subscription model, because most people won’t take full advantage of their membership. For students, the investment of time and energy far outweigh the investment of money.
  95. 95. Learning Management System students instructors consum e content publish content pays pays
  96. 96. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor
  97. 97. £ course fee percentile royalty instructor
  98. 98. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor USUALLY A FRACTION OFREVENUE YOU GENERATE
  99. 99. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor USUALLY A FRACTION OFREVENUE YOU GENERATE ONLY A FEW COURSES MAKES GOOD REVENUE
  100. 100. what do you get for 20% of your revenue?
  101. 101. as a content creator, you always lose…
  102. 102. what if…
  103. 103. 100% royalty rate operational cost (bandwidth, hosting, etc.) instructor
  104. 104. £ course fee percentile 80% profit! loss… instructor
  105. 105. £ course fee percentile 80% profit! loss… instructor typical royalty rate
  106. 106. £ percentile your premium what you charge instructors what the transaction costs you platform
  107. 107. CloudFront on-demand pricing (per GB)
  108. 108. platform is incentivised to encourage students to watch what they bought
  109. 109. platform is fair to instructors
  110. 110. low cost to instructors helps keep course prices low
  111. 111. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
  112. 112. Simon Wardley the new business models around worth based development and the collision of finance and development will literally knock your socks off. Which is why the moniker "FinDev". Beyond the initial investment in coding, I can create an almost variable cost business model and redirect investment to maximise returns in ways that most of you have never experienced. I know, I’ve been there.
  113. 113. https://productionreadyserverless.com get 40% off everything at Manning.com with ctwsrvscardiff19

×