Fórum E-commerce Brasil 2010: Jinesh Varia
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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
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
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale
Lessons Learned
Scaling is tough
Develop Test Operate
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
The 70/30 Switch
The Cloud changes
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale
Leverage the Cloud Lessons Learned
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale Scalability
Leverage the Cloud Lessons Learned
Amazon e-commerce strategy
Customers Want
Wide Selection
Lowest Price
Fastest Delivery
App Server & Database
Service Orientation
Massively Scalable Services
Am
azo
n.c
om
Serv
ice O
riente
d A
pplic
ation
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale Build an E-commerce Platform
Scalability
Leverage the Cloud Lessons Learned
The AWS Cloud Platform
Infrastructure building blocks
Platform building blocks
Tools to access services
Cross Service features
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
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale Build an E-commerce Platform
Scalability
Leverage the Cloud Lessons Learned
App Server & Database
Service Orientation
Massively Scalable Services
Build for Scale Build an E-commerce Platform
Scalability Self-Service
Leverage the Cloud Lessons Learned
Deployment
Automate Everything
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
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
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
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
No CapEx
(Capital Expenditure)
Pay as you go
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
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
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
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
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
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
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
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
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
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
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
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