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Fórum E-commerce Brasil 2010: Jinesh Varia

Jun 27, 2015

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Next generation cloud-based e-commerce applications / Jinesh Varia, Amazon Web Services
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Page 1: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 2: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 3: Fórum E-commerce Brasil 2010: Jinesh Varia

Amazon’s Three Businesses

Consumer (Retail) Business

80+ Million active customer accounts

Seven countries: US, UK, Germany, Japan, France, Canada, China

Seller Business

Sell on Amazon websites - 1.3 Million Merchants

Use Amazon technology for your own retail website

Leverage Amazon’s massive fulfillment center network

Developers & IT Professionals

On-demand infrastructure for hosting web-scale solutions

Hundreds of thousands of registered customers

Page 4: Fórum E-commerce Brasil 2010: Jinesh Varia

Year 1999

Page 5: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Page 6: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale

Lessons Learned

Page 7: Fórum E-commerce Brasil 2010: Jinesh Varia

Scaling is tough

Page 8: Fórum E-commerce Brasil 2010: Jinesh Varia

Develop Test Operate

Page 9: Fórum E-commerce Brasil 2010: Jinesh Varia

Develop Test

Undifferentiated heavy lifting

• Hardware costs

• Software costs

• Maintenance

• Load balancing

• Scaling

• Utilization

• Idle machines

• Bandwidth management

• Server hosting

• Storage Management

• High availability

Operate

Page 10: Fórum E-commerce Brasil 2010: Jinesh Varia

The 70/30 Switch

Page 11: Fórum E-commerce Brasil 2010: Jinesh Varia

The Cloud changes

Page 12: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale

Leverage the Cloud Lessons Learned

Page 13: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Scalability

Leverage the Cloud Lessons Learned

Page 14: Fórum E-commerce Brasil 2010: Jinesh Varia

Amazon e-commerce strategy

Customers Want

Wide Selection

Lowest Price

Fastest Delivery

Page 15: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Page 16: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 17: Fórum E-commerce Brasil 2010: Jinesh Varia

Am

azo

n.c

om

Serv

ice O

riente

d A

pplic

ation

Page 18: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform

Scalability

Leverage the Cloud Lessons Learned

Page 19: Fórum E-commerce Brasil 2010: Jinesh Varia

The AWS Cloud Platform

Infrastructure building blocks

Platform building blocks

Tools to access services

Cross Service features

Page 20: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Page 21: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform

Scalability

Leverage the Cloud Lessons Learned

Page 22: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform

Scalability Self-Service

Leverage the Cloud Lessons Learned

Page 23: Fórum E-commerce Brasil 2010: Jinesh Varia

Deployment

Automate Everything

Page 24: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation

Scalability Self-Service

Leverage the Cloud Lessons Learned

Page 25: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 26: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation

Scalability Self-Service

Leverage the Cloud Lessons Learned

Page 27: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation

Scalability Self-Service API-driven

Leverage the Cloud Lessons Learned

Page 28: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 29: Fórum E-commerce Brasil 2010: Jinesh Varia

You just lost

customers

Infrastructure Cost $

time

Large

Capital

Expenditure

Opportunity

Cost

Predicted Demand

Traditional Hardware

Actual Demand

Automated Elasticity

Predicting Infrastructure costs is not easy

Page 30: Fórum E-commerce Brasil 2010: Jinesh Varia

No CapEx

(Capital Expenditure)

Page 31: Fórum E-commerce Brasil 2010: Jinesh Varia

Pay as you go

Page 32: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 33: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save

Scalability Self-Service API-driven

Leverage the Cloud Lessons Learned

Page 34: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save

Scalability Self-Service API-driven Pay-as-you-go

Leverage the Cloud Lessons Learned

Page 35: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Cloud Security

Page 36: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind

Scalability Self-Service API-driven Pay-as-you-go

Leverage the Cloud Lessons Learned

Page 37: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind

Scalability Self-Service API-driven Pay-as-you-go Secure

Leverage the Cloud Lessons Learned

Page 38: Fórum E-commerce Brasil 2010: Jinesh Varia

Listen to customers, not the HiPPO (Highest Paid Person in the Organization)

Page 39: Fórum E-commerce Brasil 2010: Jinesh Varia

Simple A/B testing Experiment at Amazon.com

Add an item to your shopping cart at a website

Pro: cross-sell more items (increase average basket size)

Con: distract people from checking out (reduce conversion)

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

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

Simple A/B testing experiment was run, wildly successful

Page 40: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind Experiment Often

Scalability Self-Service API-driven Pay-as-you-go Secure

Leverage the Cloud Lessons Learned

Page 41: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind Experiment Often

Scalability Self-Service API-driven Pay-as-you-go Secure Focus on Your Idea

Leverage the Cloud Lessons Learned

Page 42: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 43: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Page 44: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 45: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 46: Fórum E-commerce Brasil 2010: Jinesh Varia

Review and Ratings

Page 47: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 48: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 49: Fórum E-commerce Brasil 2010: Jinesh Varia
Page 50: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Page 51: Fórum E-commerce Brasil 2010: Jinesh Varia

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

Page 52: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind Experiment Often

Scalability Self-Service API-driven Pay-as-you-go Secure Focus on Your Idea

Leverage the Cloud Lessons Learned

Page 53: Fórum E-commerce Brasil 2010: Jinesh Varia

App Server & Database

Service Orientation

Massively Scalable Services

Build for Scale Build an E-commerce Platform Design for Automation Leverage Elasticity and Save Design with Security in Mind Experiment Often

Scalability Self-Service API-driven Pay-as-you-go Secure Focus on Your Idea

Leverage the Cloud Lessons Learned

Page 54: Fórum E-commerce Brasil 2010: Jinesh Varia