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. Serverless is more FinDev than DevOps Yan Cui @theburningmonk
- 2. Yan Cui http://theburningmonk.com @theburningmonk Principal Engineer @ Independent Consultant
- 5. available in Austria, Switzerland, Germany, Japan, Canada, Italy and US
- 6. available on 30+ platforms
- 8. follow @dazneng for updates about the engineering team We’re hiring! Visit engineering.dazn.com to learn more. WE’RE HIRING!
- 9. AWS user since 2009
- 10. AWS user since 2009
- 12. https://productionreadyserverless.com get 40% off everything at Manning.com with ctwsrvscardiff19
- 13. What do you mean by ‘serverless’?
- 14. “Serverless”
- 16. Gojko Adzic It is serverless the same way WiFi is wireless. http://bit.ly/2yQgwwb
- 17. 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
- 18. “Function-as-a-Service” AWS Lambda Azure Functions Google Cloud Functions Auth0 Webtask Spotinst Functions Kubeless IBM Cloud Functions
- 19. AWS Lambda
- 20. AWS Lambda API Gateway IOT SNS Kinesis CloudWatch
- 24. Simon Wardley Serverless will fundamentally change how we build business around technology and how you code.
- 25. Why serverless?
- 26. more Scalable (and scales faster!)
- 27. Cheaper (don’t pay for idle servers)
- 28. Resilience (built-in redundancy and multi-AZ)
- 29. Secure
- 31. the DevOps forcethe DevOps force is strong with serverlessis strong with serverless
- 32. 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
- 33. 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
- 34. idea production greater Velocity from idea to product
- 36. less ops responsibility on your shoulders
- 38. 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.
- 39. Do you know what’s ROI? Radio-on-Internet man! Return on Investment
- 40. buy low, sell high
- 41. refactoring “invest energy now to save cognitive load later” translation
- 42. YAGNI principle “don’t invest in things with no known return value” translation
- 43. premature optimization is the root of all evil translation “don’t invest in things with no known return value”
- 44. revenue
- 46. ??? revenue
- 50. AWS, Engineers essential, rare, and expensive revenue
- 55. AWS, Engineers, Real Estate, Tools revenue
- 56. AWS, Engineers, Real Estate, Tools, Managers revenue essential, rare, and expensive
- 57. recruitment is one of the most important things you can do as an employee it’s also a significant investment
- 60. Cheaper (don’t pay for idle servers) this is a distraction from the true saving from serverless
- 61. Thinking about serverless costs the right way
- 63. Model Training Low-latency Prediction Serving via Batching
- 65. developer but I build CRUD web APIs, why should I care if Lambda is a bad fit for machine learning and serving realtime predictions?
- 67. 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%…”
- 68. 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!)
- 70. leverage: do more with less
- 71. 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
- 73. Serverless might cost you just as much, or even more, but you get so much more done
- 75. 6 developers, 6 months 95% saving against EC2 15x no. of production releases per month
- 78. “what’s the ROI of feature X?”
- 80. how much time does it take to build? how many engineer does it take to build?
- 81. how much does it cost to run it?
- 82. $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
- 85. $5/hr ? TPS runs multiple services/features how do you attribute the cost for each feature?
- 86. understanding the operational cost for individual features are very difficult
- 87. We should forget about small efficiencies, say about 97% of the time: premature optimization is the root of all evil. Donald Knuth
- 88. 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
- 89. input output engineering time lower operational cost to run the feature
- 90. input output engineering time lower operational cost to run the feature this is pretty $$$
- 92. cost of the conversation: ~$50 per dev per hour x 8 = $400 potential saving: $10/month
- 93. 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!!!
- 94. 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
- 95. $5/hr hard to attribute cost to individual feature runs multiple services/features unpredictable cost per transaction
- 96. PAY PER USE
- 97. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
- 99. 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.
- 100. Pay-per-use as a competitive advantage
- 101. “how do you price your product?”
- 102. Business Model how you plan to make money?
- 103. “If you're not paying for the product, you are the product.”
- 105. generates revenue with memberships usage of equipments cause wear and tear, adds maintenance/upkeep and staffing cost
- 106. Business Model Many people would sign up for membership, but few would make use of their membership regularly.
- 110. £ percentile your premium what you charge your customer what the transaction costs you
- 113. 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.
- 115. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor
- 117. as an instructor, you receive % of revenue from your courses % of time students spend on your coursesor USUALLY A FRACTION OFREVENUE YOU GENERATE
- 118. 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
- 120. what do you get for 20% of your revenue?
- 121. as a content creator, you always lose…
- 122. what if…
- 123. 100% royalty rate operational cost (bandwidth, hosting, etc.) instructor
- 126. £ percentile your premium what you charge instructors what the transaction costs you platform
- 127. CloudFront on-demand pricing (per GB)
- 128. platform is incentivised to encourage students to watch what they bought
- 129. platform is fair to instructors
- 130. low cost to instructors helps keep course prices low
- 131. API Gateway Lambda DynamoDB $0.05 $0.02 $0.01 cost per transaction: $0.08
- 132. 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.
- 134. https://productionreadyserverless.com get 40% off everything at Manning.com with ctwsrvscardiff19