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Running a Lean Startup with AWS
Lean Startups with AWS



                            Johannes Borch – AWS Solutions Architect




© 2011 Amazon.com, Inc. and its affiliates. All rights reserved. May not be copied, modified or distributed in whole or in part without the express consent of Amazon.com, Inc.
Launching a startup is challenging ...
Assume customer is known

Assume features are known

Assume solution is known
Waterfall approach
You know the problem and the solution
Known set of
requirements


 SPEC    BUILD   TEST    LAUNCH




                 Known ways to
                   satisfy them
Agile methodologies
You know the problem, not the solution
Known set of
  requirements


SPEC   BUILD     TEST      VALID?   LAUNCH




                        Unknown ways
                        to satisfy them
Most startups
Don't know precisely what
   problem they solve
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Lean startups:
LEARN & ADAPT
1.   Focus on a simple implementation
     of your idea
1.   Focus on a simple implementation of
     your idea

2.   Start with a minimal core set of
     features
1.   Focus on a simple implementation of
     your idea

2.   Start with a minimal core set of
     features

3.   Release and listen to your users
1.   Focus on a simple implementation of
     your idea

2.   Start with a minimal core set of
     features

3.   Release and listen to your users

4.   Question your initial assumptions
     based on feedback
1.   Focus on a simple implementation of
     your idea

2.   Start with a minimal core set of
     features

3.   Release and listen to your users

4.   Question your initial assumptions
     based on feedback

5.   Rinse and repeat
MVP
Minimum Viable Product
MVP
Smallest thing I can do to test my idea?
« If you're not embarrassed
  when you ship your first version
  you waited too long »

                        Matt Mullenweg
             CEO & Founder of WordPress
amazon.com, 1995
amazon.com, today
amazon.com, today
Staying lean is creating the
smallest viable product and
   then iterate around it
 You don't know precisely your user's needs
Unknown set of
  requirements

                                   ITERATE
IDEA   BUILD   RELEASE     EVAL      OR
                                    PIVOT




                         Unknown ways
                         to satisfy them
ITERATE
IDEA   BUILD   RELEASE   EVAL     OR
                                 PIVOT
Running a Lean Startup with AWS
YOUR problem
     you have the idea
you don't have the resources
What you have
What they have
Running a Lean Startup with AWS
Amazon EC2
Elastic Compute Cloud
Running a Lean Startup with AWS
Running a Lean Startup with AWS
ITERATE
IDEA   BUILD   RELEASE   EVAL     OR
                                 PIVOT
you created a fantastic webapp

http://www.flickr.com/photos/scobleizer/398502087
6/
people love your app

http://www.flickr.com/photos/grantrobertson/448648883
1
and everyone wants to use it!
Running a Lean Startup with AWS
the traditional way…
invest on infrastructure
capacity planning…




                                                   …capacity guessing
http://www.flickr.com/photos/mutsmuts/4695658106
/
once it's deployed…




                                        maintenance?
                                          monitoring?
                                         log analysis?
                                    test environments?


http://www.old-computers.com/news
Elastic web hosting
Infrastructure
Cost $




                                   Unable to
         Large                       serve
         Capital                   customers
       Expenditure

                                               Predicted
                                               Demand

                                               Traditional
                                               Hardware
                     Opportunity
                       Cost                    Actual
                                               Demand

                                               Automated
                                               Virtualization


                                         time
Elasticity is a fundamental property
 of the cloud that drives many of its
         economic benefits
When you turn off cloud resources
you actually stop paying for them
Web Servers
                                     25% Savings




                 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
                                         Hour

during a day
what we really need is…




                                                     …adjustable capacity
http://www.flickr.com/photos/purecaffeine/30268245
6/
unpredictable patterns
Running a Lean Startup with AWS
Amazon CloudWatch
Monitoring system for cloud resources
Running a Lean Startup with AWS
Auto Scaling
Automatically scale up/down EC2 capacity
Running a Lean Startup with AWS
Elastic Load Balancing
Distributes incoming traffic to EC2 instances
Running a Lean Startup with AWS
6 am
10 am
10 am
10 am
7 pm
7 pm
7 pm
predictable patterns
Running a Lean Startup with AWS
75% Savings
   Web Servers




                 1   3   5   7   9   11 13 15 17 19 21     23   25 27   29
                                       Days of the Month

during a month
SCALE
up or down
Running a Lean Startup with AWS
Amazon S3
Simple Storage Service
Amazon S3 Growth
Total Number of Objects Stored in Amazon S3                               762
                                                                          Billion




                                                            262 Billion




                                              102 Billion

                                 40 Billion
      2.9 Billion   14 Billion
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Amazon SQS
Simple Queue Service
Running a Lean Startup with AWS
Amazon SimpleDB
NoSQL database, key-value model
Running a Lean Startup with AWS
ITERATE
IDEA   BUILD   RELEASE   EVAL     OR
                                 PIVOT
Data based
decision making
1.   Collect as much data as you can
1.   Collect as much data as you can

2.   Do A/B testing
1.   Collect as much data as you can

2.   Do A/B testing

3.   Drive your development by
     user's feedback
Store valuable data sources
Server logs, click streams, application events, …
Running a Lean Startup with AWS
"Hadoop is a reliable storage and data analysis system"




               HDFS                 MapReduce
Deploying a Hadoop cluster is hard




http://eddie.niese.net/20090313/dont-pity-incompetence/
Amazon Elastic
 MapReduce
Hadoop + The AWS Cloud
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Elastic Data Warehouse

                                  Data Warehouse
                                 (Batch Processing)
Data Warehouse                                                      Data Warehouse
 (Steady State)                                                      (Steady State)

                                                       Shrink to
                   Expand to                          9 instances
                  25 instances
3.5 billion records, 71 million unique cookies, 1.7 million targeted ads
required per day



             User recently
             purchased a
             sports movie and       Targeted Ad
             is searching for     (1.7 Million per day)
             video games



 Leveraged AWS and Elastic MapReduce
     100 node cluster on demand
     Processing time dropped from 2+ days to 8 hours
     Increased ROAS by 500%
ITERATE
IDEA   BUILD   RELEASE   EVAL     OR
                                 PIVOT
iterate
Enhance your product, get more feedback
       to prepare next releases
Running a Lean Startup with AWS
Amazon CloudFront
Flexible content delivery network
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Amazon RDS
Relational Database Service
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Amazon ElastiCache
  Elastic in-memory cache
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Amazon DynamoDB
Fully managed NoSQL database
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Low Latency
                          ADMIN
 Massive and Seamless
      Scalability

 Durable and Available


Predictable Performance


  Zero Administration
Average reads<5ms, writes<10ms
The platform grows with you
  Add or remove components as needed
          Scale up – scale down
             Pay as you go
Pivot
If no traction, pivot to address a different
        vertical, a different problem
POSSIBLE
           OFFERING




POSSIBLE   PROBLEM    POSSIBLE
OFFERING    SPACE     OFFERING




           POSSIBLE
           OFFERING
POSSIBLE
           OFFERING




POSSIBLE   PROBLEM    POSSIBLE
OFFERING    SPACE     OFFERING




           POSSIBLE
           OFFERING
Getting the right features matters less
Knowing what's not working,
  quickly, matters more
Getting the right features matters less
Knowing what's not working,
  quickly, matters more
« Money is a renewable
  resource. Time is not »

                         Adil Wali
                 CTO of ModCloth
innovate
“The best, most solid way out
of a Crisis in a changing market is
through experiment and adaptation”
– Richard Branson
« Want to increase innovation?
  Lower the cost of failure »

                          Joli Ito
a prototype shouldn't require big investments
It should be cheap and validate ideas
AWS is a set of infrastructure building blocks
AWS lowers the cost of
     innovation
  Testing a new idea is cheap
Lean startup goal is to accelerate the cycle
AWS removes
undifferentiated heavy lifting
Traditional IT introduce friction that slows
              the cycle down
FREE TIER!
aws.amazon.com/free
Running a Lean Startup with AWS
Running a Lean Startup with AWS
Thank you!
Running a Lean Startup with AWS

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