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Serverless is more findev than devops

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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.

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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 Independent Consultant
  3. 3. Yan Cui http://theburningmonk.com @theburningmonk AWS user since 2009
  4. 4. Yan Cui http://theburningmonk.com @theburningmonk AWS user since 2009
  5. 5. What do you mean by ‘serverless’?
  6. 6. “Serverless”
  7. 7. Gojko Adzic It is serverless the same way WiFi is wireless. http://bit.ly/2yQgwwb
  8. 8. 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
  9. 9. “Function-as-a-Service” AWS Lambda Azure Functions Google Cloud Functions Auth0 Webtask Spotinst Functions Kubeless IBM Cloud Functions
  10. 10. AWS Lambda
  11. 11. AWS Lambda API Gateway IOT SNS Kinesis CloudWatch
  12. 12. 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
  13. 13. 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
  14. 14. Serverless FaaS other services… Database Storage BI
  15. 15. Simon Wardley Serverless will fundamentally change how we build business around technology and how you code.
  16. 16. Why serverless?
  17. 17. more Scalable (and scales faster!)
  18. 18. Cheaper (don’t pay for idle servers)
  19. 19. Resilience (built-in redundancy and multi-AZ)
  20. 20. Secure
  21. 21. request blue-green deployment req/s auto-scaling us-east-1a us-east-1b us-east-1c multi-AZ
  22. 22. the DevOps forcethe DevOps force is strong with serverlessis strong with serverless
  23. 23. 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
  24. 24. 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
  25. 25. idea production greater Velocity from idea to product
  26. 26. minimise undifferentiated heavy-lifting
  27. 27. less ops responsibility on your shoulders
  28. 28. Simon Wardley https://blog.gardeviance.org/2016/11/why-fuss-about-serverless.html
  29. 29. 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.
  30. 30. Do you know what’s ROI? Radio-on-Internet man! Return on Investment
  31. 31. buy low, sell high
  32. 32. refactoring “invest energy now to save cognitive load later” translation
  33. 33. YAGNI principle “don’t invest in things with no known return value” translation
  34. 34. premature optimization is the root of all evil translation “don’t invest in things with no known return value”
  35. 35. revenue
  36. 36. easy to measure revenue
  37. 37. ??? revenue
  38. 38. AWS easy to measure revenue
  39. 39. AWS, Engineers essential, rare, and expensive revenue
  40. 40. AWS, Engineers, Real Estate $$$$$$$$!!! revenue
  41. 41. AWS, Engineers, Real Estate, Tools revenue
  42. 42. AWS, Engineers, Real Estate, Tools, Managers revenue essential, rare, and expensive
  43. 43. recruitment is one of the most important things you can do as an employee it’s also a significant investment
  44. 44. https://bit.ly/2FTXk4q
  45. 45. X: moving from Lambda to containers saves me $500 / month! me: did you have to hire anyone to look after your containers? X: yeah, I hired these two great K8 guys (at $10k per month, each). They are very clever! me: …
  46. 46. Cheaper (don’t pay for idle servers) this is a distraction from the true saving from serverless
  47. 47. Thinking about serverless costs the right way
  48. 48. Model Training Low-latency Prediction Serving via Batching
  49. 49. developer but I build CRUD web APIs, why should I care if Lambda is a bad fit for machine learning and serving realtime predictions?
  50. 50. https://aws.amazon.com/solutions/case-studies/financial-engines/
  51. 51. 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%…”
  52. 52. leverage: do more with less
  53. 53. 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
  54. 54. request blue-green deployment req/s auto-scaling us-east-1a us-east-1b us-east-1c multi-AZ
  55. 55. Serverless might cost you just as much, or even more, but you get so much more done
  56. 56. 6 developers, 6 months 95% saving against EC2 15x no. of production releases per month
  57. 57. “what’s the ROI of feature X?”
  58. 58. how much time does it take to build? how many engineer does it take to build?
  59. 59. how much does it cost to run it?
  60. 60. $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
  61. 61. TPS Cost/Transaction
  62. 62. $5/hr ? TPS runs multiple services/features
  63. 63. $5/hr ? TPS runs multiple services/features how do you attribute the cost for each feature?
  64. 64. understanding the operational cost for individual features are very difficult
  65. 65. We should forget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Donald Knuth
  66. 66. 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
  67. 67. input output engineering time lower operational cost to run the feature
  68. 68. input output this is pretty $$$ engineering time lower operational cost to run the feature
  69. 69. cost of the conversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month
  70. 70. 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!!!
  71. 71. 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
  72. 72. $5/hr hard to attribute cost to individual feature runs multiple services/features unpredictable cost per transaction
  73. 73. PAY PER USE
  74. 74. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
  75. 75. 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.
  76. 76. Pay-per-use as a competitive advantage
  77. 77. subscription-based services
  78. 78. £ subscription fee percentile 80% profit! loss…
  79. 79. transactional/metered/pay-per-use
  80. 80. £ percentile your premium what you charge your customer what the transaction costs you
  81. 81. https://productionreadyserverless.com
  82. 82. subscription-based transactional (pay-per-use)
  83. 83. Learning Management System students instructors consum e content publish content pays pays
  84. 84. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor
  85. 85. £ course fee percentile royalty instructor
  86. 86. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor USUALLY A FRACTION OFREVENUE YOU GENERATE
  87. 87. 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
  88. 88. http://bit.ly/complete-guide-to-aws-step-functions
  89. 89. what do you get for 20% of your revenue?
  90. 90. as a content creator, you always lose…
  91. 91. what if…
  92. 92. 100% royalty rate operational cost (bandwidth, hosting, etc.) instructor
  93. 93. £ course fee percentile 80% profit! loss… instructor
  94. 94. £ course fee percentile 80% profit! loss… instructor typical royalty rate
  95. 95. £ percentile your premium what you charge instructors what the transaction costs you platform
  96. 96. CloudFront on-demand pricing (per GB)
  97. 97. attract the best instructors
  98. 98. Keep costs low for students
  99. 99. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
  100. 100. 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.

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