New Capabilities Cloud Computing

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Products on a compute cloudCloud capability – how we can use it today?

Gedas Mitkusgedas@sban.com

Cloud Computing today• Resources

– compute power– storage– networking

• Infinite capacity

• All you can use on demand

• Only one requirement– credit card starting with $50

Previous limitations

1. Infrastructure costs2. Development challenges

Infrastructure costs today• Higher by X times 2, 5, 10 years ago

Buy Rent Cloud RentAmazon EC2

1 rack = 20 servers

$65K total cost

$5K a month + contract lock in

$1.5K per month

Connectivity $9K per year

included nil

System AdminRequired

Yes Yes nil

Notes On demand pay per hour $0.1/h

Development challenges on a Cloud

Scalability and Quality

1. Communication stack2. Persistence / Transactional safety3. Application framework4. Development tools, environment and process

Development challenges on a Cloud

• Then vs. now: dramatic reduction in• Development cost• Time-to-market

– 2-3 developers can deliver complex pilot in 6 months

• Why?• Open source is production quality:

Axis/CXF, Hibernate, Spring, JUnit / TestNG, Eclipse, Maven, SVN, Amazon AWS, MySQL, Linux, etc

• Agile Development process - no RUP, no ITIL

Industry trends – Rise of Agile & Open Source

Proof of concept in a small team:Product, Technology, Costs, Time-to-Market

Goal1) Build 2 (later more) vertical business

directories in 15 languages2) By automatically summarizing business

websites3) Using a highly configurable crawler and

analysis engine running on a cloud

Rent/Single Server vs. Compute Cloud

Alternatives 1 Instance 40 Instances on Compute Cloud

Inventories 100K 100K

Mins to execute 1 inventory

2 min 2 min

Days 139 days 3.5 days

Cost $350No long term fixed & ops costs

Solution - Product

1. Best images2. Title3. Best sentences: Who, What, Where4. Feature tags5. Geo Location6. Other meta data – email, phone, etc

Solution - Product

Solution – Technology (Scope)

• 65K businesses/websites• Websites crawled 6 levels deep• 50gb highly structured data set• Transactions / records

– All together ~1M records• 250K sentence tags• 150K image tags• 500K feature tag

– 800MB DB filled

Solution – Technology (Cloud)• Servers run – 40 (tested on 80)• Total days - 8• Compute Hours ~1400 – 59 days on 1 server

Inventories crawled & analyzed & tagged per hour

1000150020002500

Inventories tagged

Solution – Costs

Conclusion: Now vs. ThenMajor shift

1. Unlimited cloud resources for small teams

2. Infrastructure cost – miniscule3. Reduced Time-to-market4. Lower Development cost

Product vs. Revenue models

• Consumer product – Advertising– Transaction fees– Subscriptions– Premium services

• Enterprise / Business product