own the core, rent to peaks: hybrid elastic computing for digital commerce

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Confidential and Proprietary Sal Visca Chief Technology Officer Elastic Path Software Elastic Digital Commerce Own the Core, Rent the Peaks Cloud Expo Conference Santa Clara, CA Nov 8 th 2012

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Building e-commerce solutions for retail and preparing for transactions spikes on big shopping days was never easy. Preparing for the frequent and sporadic transaction spikes–launching a new game, e-book, or an online video release–in the digital world is even more difficult. There are great benefits to a “Own the Core” strategy to maintain control and efficiencies since commerce systems are so central and connect with so many internal systems. However, to remain cost-effective and not have to build out all the capacity for peak loads, an associated “Rent the Spikes” strategy allows controlled dynamic expansion out into the cloud.

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Page 1: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

Confidential and Proprietary

Sal Visca

Chief Technology Officer

Elastic Path Software

Elastic Digital Commerce Own the Core, Rent the Peaks

Cloud Expo ConferenceSanta Clara, CANov 8th 2012

Page 2: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

• One minute overview of Elastic Path

• Characteristics of Digital (e)Commerce and

infrastructure requirements

• Traditional On-premise Deployments

• Hybrid Elastic Cloud Infrastructure

o Own the Core

o Rent the Peaks

• Summary

Agenda

Page 3: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Commerce Everywhere

• We help the world’s biggest brands sell digital goods and services

• We provide a flexible digital commerce platform and expertise in commerce

strategy and implementation

• Over 150+ employees, 200+ customers, and offices in Vancouver, Canada

and London, UK

• With over 15,000 subscribers we also produce the #1 ecommerce blog in

the world www.getelastic.com

Introducing Elastic Path Software

Page 4: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Elastic Path helps the world’s most successful

brands monetize their content

Page 5: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Requires powerful, flexible, elastic infrastructure

Megatrends in Digital Commerce

• Multi-device, Commerce Everywhere, APIs

• Socialization exploding volume of content

• Media convergence explosion of video

• Big Data – capture every event, interaction, etc.

• Post-sale interactions (e.g. follow-on sales,

micro-transactions, downloadable content, social chatter,

Digital Relationship Management, etc..)

Page 6: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Selling digital content is different

• Digital content providers are in a perpetual interactive

relationship with customers

• Continuous Engagement with the Consumer

• It is all about the experience not the one-time sales

transaction

• Customer Lifetime Value (CLV)

Page 7: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Digital Commerce is a Perpetual Relationship

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Page 8: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Offer Exploration and Presentation

Faceted NavigationSearchProduct Associations Catalog Browsing

PromotionsPersonalizationEligibility Coupons

InventoryTargeted SellingCross-sell, Up-Sell Bundles

Product Comparison Pricelists

Subscription CaptureDigital PIM

Digital Content Management

Order StatusOrder History

Order Capture and Management

Customer Administration

Elastic Path Digital Commerce Engine

Digital Commerce Software

solution deployed to:

Provide integrations with

other on-premise solutions

(e.g.: ERP, CRM, Fulfilment

systems, etc.)

Enterprise Software Deployments

Infrastructure as a Service (IaaS)

3

3 Private or Public Cloud

Customer Data Center

Managed Service Provider

2

2 Managed Service Provider

On-Premise

Enterprise Deployment

1

1 On-premise

Page 9: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Cloud Bursting into

Private or Public Cloud

Offer Exploration and Presentation

Search Personalization

Catalog BrowsingPersonalization

Order Capture and Management

Order StatusOrder History

Offer Exploration and Presentation

Search Personalization

Catalog BrowsingPersonalization

Order Capture and Management

Order StatusOrder History

Offer Exploration and Presentation

Search Personalization

Catalog BrowsingPersonalization

Order Capture and Management

Order StatusOrder History

Own the Core

Rent the Peaks

In-App /

In-Game

B2C/B2B

Storefronts

Mobile / NFC

OTT /

Game

Console

App Store

POS,

M2M

Consumer

Electronic

(CE) Device

Media

Market

Social

Cloud

Load

Balancer

Primary Enterprise Deployment

Offer Exploration and PresentationFaceted NavigationSearch

Product Associations Catalog Browsing

PromotionsPersonalization

Eligibility Coupons

InventoryTargeted Selling

Cross-sell, Up-Sell Bundles

Product Comparison Pricelists

Subscription CaptureDigital PIM

Digital Content Management

Order StatusOrder History

Order Capture and Management

Customer Administration

Elastic Path Digital Commerce Engine

ERP

CRM

Other

B2C/B2B

Storefronts

Predictable Traffic

Unpredictable

Multi-device

Spikey traffic

from UIs and

APIs

??

Elastic Path + Elastic Computing = Extreme Scalability

Page 10: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Demands on the Infrastructure

• Fluid, unpredictable demands on the infrastructure

• Viral spread can bring huge traffic in short bursts

• Difference between steady state and high-peak periods

could be 10x to 1000x or higher

• Like “Black Friday” or pre-Christmas shopping that could

come unexpectedly at any time

• As Application Programming Interfaces (APIs) open up new

consumption models, traffic will come from anywhere and

everywhere

• Requires highly Elastic environment that can stretch to the

ever-changing demands

Page 11: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Hybrid Cloud: Own the Core, Rent the Peaks

• On-premise deployments can provide tighter integrations to

other on-premise software (e.g.: ERP, CRM)

• A capacity service monitor can keep cloud extension instances

“warm” and can spin up additional services as needed to

accommodate higher traffic loads

• A cloud load balancer / orchestration broker directs incoming

traffic to the services in the cloud or on-premise based on

utilization load

• Expected Peaks: E.g.: Launch of new game (e.g.: Battlefield,

Call Of Duty), system can spin up new cloud instances in

expectation of the increased traffic

• Unexpected Peaks: system automatically spins up new cloud

instances as trending analysis indicates increasing traffic

Page 12: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Summary

• Unlike retail ecommerce that has expected

(seasonal) peaks, digital commerce can experience

very “spikey” traffic with unexpected peaks due to

various external factors (eg: social viral interest)

• A hybrid elastic environment provides the benefits of

on-premise integration and control with the benefits

of a purely elastic environment that can grow or

shrink with the actual traffic

Page 13: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Check out the #1 ecommerce blog in

the world at:

www.getelastic.com

Page 14: Own the Core, Rent to Peaks: Hybrid Elastic Computing for Digital Commerce

© Copyright 2012, Elastic Path Software Inc. All rights reserved.

Questions

Sal Visca

Chief Technology Officer

Elastic Path Software

[email protected]

www.elasticpath.com