Getting to Scale on AWS

Startups on AWS:
From MVP to Scale
Pieter Kemps
Business Development, Startups & Venture Capital
Amazon Web Service
@p_kemps

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With AWS, scale from one instance…

…to thousands
Fully automated!

Beyond scaling your virtual servers, you can:
Add billions of objects with Amazon S3
Select any level of desired database throughput
Distribute petabytes of data easily globally

E-COMMERCEWEB APPS GAMING
ENTERPRISE / SAASMEDIA
Many companies leverage AWS at scale
MOBILE

01 02 03 04
Idea MVP ProfitabilityScale

Build Apps, Not Infrastructure to do more with less
Previous Webinar01 02
Idea MVP

Get started fast with Beanstalk
(Developer sandboxes with production ready infrastructure)
Take fine grained control with CloudFormation
(Comprehensive control of all aspects of infrastructure)
Manage with layers and recipes - OpsWorks
(control with Chef customization)

Your application
Your business & what makes you unique
Innovation, not undifferentiated heavy lifting
Spending developer time in the right place
Automate as much as you can
(Deep insight alert: Developer Time = Money)
Automation = Focus

…grew to 14 million users in just over a year
…reached 150 million photos & terabytes of data
…signed up 1.0 million users in 12 hours after launching an Android app
…over 100 million active users in January 2013
on AWS…with only 3 engineers

Develop Lean, Test Heavy to develop a killer MVP
Idea MVP

Develop Lean, Test Heavy
Take lots when you need,
shut done when done
1. Spinning up environments as you need them
2. Wide range of Development and test frameworks on AWS
3. Testing at Scale – A/B testing, load testing, etc.
4. Easy to roll out to Production

Develop Lean, Test Heavy to develop a killer MVP
Fail Forward, Fail Faster by lowering the cost of innovation
Idea MVP

Getting to MVP for $250
Time
Scale
Total Spend to MVP
$250
$235$15$0
• 3 months dev/test/release
• Serving Beta customers
• Ready for full production
and scale
Low Cost of Iteration Means more Innovation

01 02
Idea MVP
www.slideshare.net/AmazonWeb
Services/getting-to-mvp-on-aws

How do we grow revenue?
What is the best way to monetize?
How/where do we sell and get paid?
How can we expand our business easily?
What is the best way to reach customer globally?
How do we predict demand & plan capacity?
How can serve thousands / millions of customers?
How do we build a seamlessly scalable architecture?
How to leverage the data we gather?
02 03
MVP Scale

Scale up Demand
leverage Amazon in your Go to Market strategy with the AWS Partner
Network (APN), Marketplace, and Amazon AppStore for Mobile Apps
Scale your Reach
reach customers globally in minutes leveraging AWS’ global infrastructure,
incl. regions, availability zones, and Content Delivery Network
Scale your Architecture
use a range of AWS services to build scalable architectures that serve your
first 10 million users
02 03
MVP Scale

Scale up Demand
Scale your Reach
Scale your Architecture
use a range of AWS services to build scalable architectures that for your first
10 million users
02 03
MVP Scale

AWS Partner Network
AWS Market Place
Amazon AppStore

AWS Partner Network (APN)
APN is a global partner program
focused on providing partners with
the technical information and sales
and marketing support they need to
accelerate their businesses on
AWS.

Sales
• Access to the latest AWS collateral,
client referrals, and Solution Architects
Technical Support
• Eligibility for AWS Private Betas
• Recurring AWS Roadmap briefings
• Technical training & content, support
credits, exclusive webinars
Alliance Support
• Account planning & management
• Online resources
Marketing & PR
• Partner Directory, Partner Network logo
• AWS support for Press Releases, Blogs,
and other digital marketing content
• Selective eligibility for joint go to market
activities, inc. joint webinars, webcasts,
AWS events
Benefits of APN

Partner WebinarsPartner Directory

AWS Marketplace
For pre-packaged Software
is a place where you can sell your products

Launched in April 2012,
600+ products - 23 categories
Customer can find, research, buy software

Who can list products in AWS Marketplace?
• ISVs in the U.S.
• International ISVs
• Authorized VARs and SIs
• SaaS providers

Why do Customers love AWS Marketplace?
• High conversion rates
• High retention rated
• Quick Discovery
• 1-Click Launch
• Simple Pricing
• One Bill

www.aws.amazon.com/marketplace

Amazon AppStore
For Mobile App Developers
is a channel to reach a large and highly
monetizable audience

Amazon helps you grow your business
» Customer Reach
▸ Reach a large and growing community of customers with Kindle
Fire tablets, already in the millions
» Monetization
▸ Whether you monetize through paid apps, in-app purchases, or
mobile advertising, Amazon provides a way to increase your
conversion rates
▸ All customers have a payment method on file, and Kindle Fire
tablets sold by Amazon are pre-registered
» Low Investment
▸ Develop with our easy to integrate SDK, simplifying development
and updates

» Increase ARPU, customer engagement,
and conversion rates with our set of
easily integrated APIs.
▸ In-App Purchasing API
▸ Amazon GameCircle API
▸ Amazon Mobile Ads API
▸ …and more!
» Over 75% of Android apps submitted to
Amazon are compatible with Kindle Fire,
with no additional work required.
Getting started is easy:
▸ https://developer.amazon.com/apps
Kindle Fire

Distribute in Nearly 200 Countries Worldwide
» A new family of Kindle Fire tablets launched in September
▸ Kindle Fire HD is the #1 best-selling, most gifted, and most wished for product across the
millions of items available on Amazon worldwide1
▸ Kindle Fire is the leading Android tablet, with more than half of market segment share in
the US and 33% worldwide2
» Amazon Appstore is preloaded on select Android smartphones on
Verizon Wireless, US Cellular and others
» Available in nearly 200 countries worldwide, including the U.S.,
Europe, China, Japan, with more to come
Sources:1. Amazon.com; Amazon.com Press Release: “Amazon.com Announces Fourth Quarter Sales up 22% to $21.27 Billion”, Jan 2013
2. Localytics: Kindle Fire Drives US Android Tablet Dominance, January 2013

30%
25%
45%
<$50 $50-$200 $200+
Amazon’s Large and Active Audience
Monthly Unique
Visitors (US):
97MM 6.6
Active Global Customer
Accounts:
200MM
Avg. Daily Unique Visitors
(US):
12.9MM
Note: Active Customer Accounts are unique email addresses that have placed an order in the last 12 months
Sources: 1. Amazon Investor Relations; 2. ComScore PlanMetrix January, 2013.
10%
38%
52%
<$25K $25K-$75K $75K +
1 2 2 2
8%
32%
18%
42%
0-18 18-34 35-44 45+
Household Income of Amazon
Unique Visitors2
Age Composition of Amazon
Unique Visitors2
% of Amazon Shoppers Who have
Made an Online Purchase2
Amount Spent
Avg. Visits per
Visitor per
Month (US):

» Automation & Personalization
▸ Relevant and personalized app
recommendations using the same engine
used in retail, connecting your app to the
right customers
» Test Drive
▸ Customers can instantly try thousands of
apps and games, simplifying app discovery
» Free App of the Day
▸ A paid app is offered for free daily and
featured prominently, including on the Apps
tab on Kindle Fire and the Amazon.com
gateway
App Discoverability on Amazon

Case Study
TinyCo: Amazon Outperforms iTunes in ARPU
» TinyCo found that Amazon average
revenue per user (ARPU) outperforms
iPad ARPU by 43% based on the
performance of their game Tiny Village
» “Amazon is a gold mine,” wrote
Jennifer Lu, Director of Business
Development, in a blog post.

Go global in minutes to reach a global audience
Fast & Easy customer acquisition leveraging AWS regions & CDN
Application

9 Regions 25 Availability Zones Continuous Expansion
AWS Global Infrastructure

40 CloudFront Edge locations
AWS Global Infrastructure
Seoul

“AWS allows us to deploy and launch our services in multiple locations around the
world instantly: in 30 minutes rather than 7-10 days like before. AWS also helped
us to quickly deploy different services for different regions, in accordance with
the requirements of different regions, and in line with laws and regulations.”

Amazon CloudFront is a CDN the AWS way
Pay as you Use, API-driven, easy to deploy
• Fast Integration – requires minimal architectural change, API driven
• Cost-effective – No setup/platform fees, no contract, pay as you use,
all traffic charged at same low rate - static , dynamic , live, VOD
• Fully Integrated – with AWS services like S3 and EC2, which drives
down costs
• Automatic Logging – CloudFront can automatically log all request to
an S3 bucket

Amazon CloudFront
Top Startups leverage CloudFront for customer acquisition
Fast Beautiful Photo Sharing
• 100 million Monthly Active Users
• 40 million Photos Per Day
• 1000 Comments Per Second
• Millions of users in Asia
• Terabytes of photos stored on
S3, distributed via CloudFront
Delivering Fun Globally
• 9GAG is the largest fun sharing
community in the world
• 78M monthly visitors, 1.2 billion
monthly page views, 3 engineers
• 500startups, Ycombinator
• Users CloudFront for website
and all content distribution
Reaching the world from Beijing
• Top 10 social game developer on
Facebook and other top SNS
• Grew 1M users to 3M users within
three months.
• Spin up >300 servers globally, all
managed by 1 engineer in Beijing
aws.amazon.com/solutions/case-studies/funplus-game/aws.amazon.com/solutions/case-studies/9gag/

"With our social game growing from 1 million to 3
million users in 3 months, we can spin out more than
300 servers quickly, only managed by ONE engineer.”
Yitao Guan, CTO

Getting to MVP for $250
Time
Scale
Total Spend to MVP
$250
$235$15$0
Architecture that scales up
at each progressive stage

Production 1.0
Architecture
1
2
3

• Create highly scalable and available applications
• Distribute load across EC2 instances in multiple availability zones
Feature Details
Available Load balance across instances in multiple
Availability Zones
Health checks Automatically checks health of instances and
takes them in or out of service
Session stickiness Route requests to the same instance
Secure sockets layer Supports SSL offload from web and application
servers with flexible cipher support
Monitoring Publishes metrics to CloudWatch
1.Elastic Load Balancing

Self-Managed Fully-Managed
Database Server
on Amazon EC2
Your choice of
database running on
Amazon EC2
Bring Your Own
License (BYOL)
Amazon
DynamoDB
Managed NoSQL
database service
using SSD storage
Seamless scalability
Zero administration
Amazon RDS
Relational Database
as a managed
service
Flexible licensing:
BYOL or License
Included
2.Database Options

But how do I choose what
DB technology I need?
SQL? NoSQL?

Some folks won’t like this.
But…

Established and well worn technology
Lots of existing code, communities, books,
background, tools, etc
Clear patterns to scalability
You aren’t going to break SQL DBs in your first
10 million users. No really, you won’t*
*Unless you are doing something SUPER weird with the data or
MASSIVE amounts of it, even then SQL will have a place in your stack
Why SQL?

AH HA!
You said “massive amounts”,
I will have massive amounts!

If your usage is such that you will be
generating several TB (>5) of data in the
first year OR have an incredibly data
intensive work load you might need noSQL
But this is probably less than 90% of you

• Database-as-a-Service
• No need to install or manage database
instances
• Scalable and fault tolerant configurations
Feature Details
Platform support Create MySQL, SQL Server and Oracle
Preconfigured Get started instantly with sensible default
settings
Automated patching Keep your database platform up to date
automatically
Backups Automatic backups and point in time
recovery using snapshots
Manual DB snapshots
Failover Automated failover to slave hosts in event of
a failure
Replication Easily create read-replicas of your data and
seamlessly replicate data across availability
zones
2. Amazon Relational Database Service (RDS)

Automatic resizing of compute
clusters based on demand
Trigger auto-scaling policy
Feature Details
Control Define minimum and maximum instance pool
sizes and when scaling and cool down occurs.
Integrated to Amazon
CloudWatch
Use metrics gathered by CloudWatch to drive
scaling.
Instance types Run Auto Scaling for On-Demand and Spot
Instances. Compatible with VPC.
as-create-auto-scaling-group MyGroup
--launch-configuration
MyConfig
--availability-zones us-
east-1a
--min-size 4
--max-size 200
3. Auto-Scaling Amazon
CloudWatch

Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Typical weekly traffic to Amazon.com

Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Typical weekly traffic to Amazon.com
Provisioned capacity

November traffic to Amazon.com
November

76%
24%
November

November

Auto-Scaling let’s you do this!
Always have enough to serve your customers
Never have too much – idle capacity = waste!

Production 1.0 Architecture
Well-designed, 2 Tier architecture
Highly Available due to Multiple Availability Zone
Load Balancing & Auto-Scaling for full scalability
Fully managed Database included
Capable of serving >10K-100Ks users

Wasted server capacity for static content
Reliability and durability are not yet optimal
DRY – Don’t Repeat Yourself
End-user experience could be improved thru
offloading & caching

Let’s add
Simple Storage Service (S3)
CloudFront
to optimize the end-user experience

Durable storage, any object
99.999999999% durability of objects
Unlimited storage of objects of any type
Up to 5TB size per object
Feature Details
Flexible object store Buckets act like drives, folder structures within
Access control Granular control over object permissions
Server-side encryption 256bit AES encryption of objects
Multi-part uploads Improved throughput & control
Object versioning Archive old objects and version new ones
Object expiry Automatically remove old objects
Access logging Full audit log of bucket/object actions
Web content hosting Serve content as web site with built in page handling
Notifications Receive notifications on key events
Import/Export Physical device import/export service
Simple Storage Service (S3)

• Good for things like:
– Static assets (css, js, images, videos)
– Backups
– Logs
– Ingest of files for processing
• Ties in well with other Services:
– CloudFront
– Elastic Map Reduce (EMR)
– Act as a logging endpoint for
S3/CloudFront/Billing
Working with S3
“Infinitely scalable”

• World-wide content distribution network
• Easily distribute content to end users
with low latency, high data transfer
speeds, and no commitments
Feature Details
Fast Multiple world-wide edge locations to serve content as close to your users as possible
Integrated with other services Works seamlessly with S3 and EC2 origin servers
Dynamic content Supports static and dynamic content from origin servers
Streaming Supports rtmp from S3 and includes support for live streaming from Adobe FMS and Microsoft
Media Server
CloudFront

Fully managed Database included
Static content stored in durable, consistent way
Improved end-user experience through CDN
Capable of serving >100K-1M+ users

Session/state data burdening your DB
Lots of user data
Your database might become your bottleneck

Let’s add
DynamoDB
or
ElastiCache
to optimize your database

IF
You are already building for memcached
Your app has few noSQL requirements
THEN
ElastiCache

• Hosted Memcached
– Speaks same API as traditional open source memcached
• Very fast (single digit ms speeds usually (or less))
• Scale from one to many nodes
• Self healing (replaces dead instance)
• Data is only in memory, so not persistent
• Use AWS’s Auto Discovery client to simplify
clusters growing and shrinking without
affecting your application
ElastiCache

IF
If you require a persistent data store
Or your app has other noSQL requirements
THEN
DynamoDB

Provisioned throughput NoSQL database
Fast, predictable performance
Fully distributed, fault tolerant architecture
Feature Details
Provisioned throughput Dial up or down provisioned read/write capacity
Predictable performance Average single digit millisecond latencies from SSD backed
infrastructure
Strong consistency Be sure you are reading the most up to date values
Fault tolerant Data replicated across availability zones
Monitoring Integrated to Cloud Watch
Secure Integrates with AWS Identity and Access Management (IAM)
Elastic MapReduce Integrates with Elastic MapReduce for complex analytics on
large datasets
DynamoDB

• Scalability to deal with 1.2TB / 100GB of metadata per customer
• Needed a DB engine to support 12K reads + 12K writes per sec.
• “…a very smooth experience. Thank you AWS for a great offering”
druva.com/blog/2012/05/23/insync-makes-to-aws-dynamodb/

Optimal Database set up with ElastiCache or
DynamoDB
Capable of serving >1m-10M+ users

You are now at Scale…
…with lots of data…
…and need to optimize continuously.
But how and where?

Let’s add
Big Data
for analytics of web, mobile, gaming,
ad server traffic

Big Data
Multiple managed AWS services for Big Data
Amazon EMR
(Elastic Map Reduce)
Amazon Redshift
• Managed, elastic Hadoop cluster
• Integrates with S3 & DynamoDB
• Leverage Hive & Pig scripts
• Integrates with instance types
such as spot
• Data Warehousing the AWS Way
• Scalable low latency data query
• Rapidly analyze petabytes of data
• 1/10 the cost of traditional DW
• Automated deployment & admin
• Compatible with popular BI tools

Web analytics for optimization of user experience
Comparison between Hive on Hadoop cluster vs Redshift
• 2 tests: for one, Redshift was 5x faster, for the other 20x faster
• More impressive was cost saving: $13.60/hour versus $57/hour. Redshift is
76% cheaper

• Managed, elastic Hadoop cluster
• Integrates with S3 & DynamoDB
• Leverage Hive & Pig analytics scripts
Feature Details
Scalable Use as many or as few compute instances running Hadoop as you want.
Modify the number of instances while your job flow is running
Integrated with other services Works seamlessly with S3 as origin and output. Integrates with DynamoDB
Comprehensive Supports languages such as Hive and Pig for defining analytics, and allows
complex definitions in Cascading, Java, Ruby, Perl, Python, PHP, R, or C++
Cost effective Works with Spot instance types
Monitoring Monitor job flows from with the management console
Elastic MapReduce (EMR)

Foursquare…
Founded in 2009
112M in Venture Capital
33 million users
1.3 million businesses using the service
…generates a lot of Data
3.5 billion check-ins
15M+ venues,
Terabytes of log data

Uses EMR for
Evaluation of new features
Machine learning
Exploratory analysis
Daily customer usage reporting
Long-term trend analysis

Benefits of EMR
Ease-of-Use
“We have decreased the processing time for urgent data-analysis”
Flexibility
To deal with changing requirements & dynamically expand reporting clusters
Costs
“We have reduced our analytics costs by over 50%”

Best Practice Scalable Architecture
Optimal Database set up with ElastiCache or DynamoDB
Big Data analytics built in for continuous optimization
Capable of serving 10M+ users

More fine tuning of your application
Might need to start building custom solutions
Deep analysis of your whole stack
More SOA features/functionality
Do you want to serve >10M users?

SOA = Service Oriented Architecture
Move services into their own tiers/modules. Treat each of
these as 100% wholly separate pieces of your infrastructure
and scale them independently.
Loose Coupling

BUILD LOOSELY
COUPLED SYSTEMS
The looser they are coupled,
the bigger they scale,
the more fault tolerant they get…
Independent components, everything designed as a black box, decoupled interactions

if you find yourself writing your own:
queue, DNS server, database,
storage system, monitoring tool…

Take a deep breath and stop it.
Now.

Don’t re-invent the wheel
Instead…

Don’t build your own…
1. Email
2. Queuing
3. Messaging
4. Transcoding
5. Search
6. Monitoring
7. Workflow Management
…leverage de-coupled web services
…but leverage AWS
Amazon Simple Email Service
Amazon Simple Queuing Service
Amazon Simple Notification Service
Amazon Elastic Transcoder
Amazon CloudSearch
Amazon CloudWatch
Amazon Simple Work Flow

Scale up Demand – GTM, AWS Partner Network (APN), Marketplace, etc.
Scale your Reach – Reach customers globally in minutes
Scale your Architecture – build scalable architectures to serve millions
of customers
In Summary, AWS helps you to:

What’s Next?
use a range of AWS services to build scalable architectures that for your first
10 million users
02 03
MVP Scale

1. Visit aws.amazon.com/startups
2. Attend the last Startup Webinars:
From Scale to Profitability on AWS (May 30)
Sign up here: aws.amazon.com/apac/startupwebinars
3. Fill up your feedback form !

Questions?
Pieter Kemps
Business Development, Startups & Venture Capital
Amazon Web Service
@p_kemps

Getting to Scale on AWS

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