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yunspace
Value Stream, Evolution, Innovation and Challenges
You should go serverless because
you want to focus on creating value —
and at your company you endeavor to
apply technology toward the creation
of business value.
- Ben Kehoe, Serverless is a
State of Mind
Business value is a hypothesis held
by the organization’s leadership as to
what will best accomplish the
organization’s ultimate goals or
desired outcomes
- Mark Schwartz, the Art of
Business Value
With serverless, we have this great
opportunity to think more about how
do we deliver business value quickly,
rather than thinking about technology
itself.
- Yan Cui (burningmonk), The
Business Value of Serverless
But in reality, this is what happens …
4
5
I don’t have time
I need more easier
way to do business
with your company
Our data shows
customers want
frictionless
onboarding
6
We must be
cloud agnostic by
writing portable
code and storing
no data!
I hear you, will
place this in our
front door
process
Innovation Hub has
PoC solutions
available for what
customer needs but
we can’t get it into
prod
My customers
have been waiting
for 2 years for this
feature!
7
I don’t know why
we were not involved
in these functional
specs, HLDs, and
requirements
My deep Ops
experience means I
actually know a lot
more about the
business side
We have
automated CD to
deploy “stuff” every 2
weeks, but how does it
impact the
customer?
8
$$
$$
$$
Horizon 1 Operators
Sustain and defend Core Businesses
Through Superior Execution
Measured by ROI
Horizon 2 Builders
Build new Emerging Businesses
Using Positional Advantage
Measured by NPV
Horizon 3 Visionaries
Create Viable Options
Focusing on Foresight
Measured by Option Value
and Cost of Delay
Profit
Time
$$
$$
$$
Reference: McKinsey 3 Horizons for Growth
Value evolves across horizons and becomes less static due
to time value of money and future choice of real options
9
DisruptiveInnovation
Evolution
SustainingInnovation
Pioneers
Ideate. Experiment and
explore Markets using First
Principles and Standard
Components
Settlers
Productise. Differentiate
and Custom Build on
Customer Feedback
Town Planners
Optimise. Standardise
Components and
Industrialise Offerings
References: Clayton Christensen, Innovator’s Dilemma
Simon Wardley, Pioneers, Settlers, Town Planners
10
Slow and steady doesn’t win the race. The key is to keep running and don’t fall asleep!
Trust in Your Product
------------------ NEEDS ------------------
Superior UX
Continuous Innovation
------------------ NEEDS ------------------
Big Data + Hyper Agility
Disrupting New Markets
------------------ NEEDS ------------------
New Business Model
Evolving Business Value
------------------ NEEDS ------------------
Collective Genius
Pace of change means no
“magic business formula”.
Involve your people
If what the Customer needs
doesn’t fit your business
model, think again
AI + Scrum doesn’t work
and innovation loops can be
1 day sprints
Focus on design thinking
and go back to digital first
principles
What good can look like
12Source: https://future.transport.nsw.gov.au
Crowdsourcing
Vision and Strategy
15 x Future Proof
‘No-Regrets’ Initiatives
Prioritise
Objectives
Design Thinking
Rapid Prototype
Intelligent Transport
Networks, managed
with Data
1. Data Science
Incubator and open data
expansion
2. Trial AI to improve
network management
and customer service
3. Integrate predictive
maintenance
Exec
Operations
MVP
MLOps / DataOps ML Engineers / Data Scientists
Application Engineers Model
Notebook
Training
Job
AppSync Inference
Lambda
De-Identified
Data Lake
Inference
Auth
13
Weather
Events
Time Tables
Static
Web
Warehouse
Opal
Exec
Operations
14
1. Pioneers
“How many people
are on my network?”
2. Settlers
Data pipeline and
BI reporting
3. Town Planner
Make Ops decision
and scale out
1. Pioneers
“How about
tomorrow?"
2. Settlers
SageMaker
Data Scientists
ML Engineers
3. Town Planner
MLOps and CD
1. Pioneers
“Automatic Operational
Response”
Descriptive → Diagnostic → Predictive → Prescriptive
Business Value KPIs
● Serverless Intelligence
Foundation
● 3 weeks PoV
● 5mins instead of 5 days
● 90% accuracy
● Data Driven Culture Uplift
Enterprise Ready and loved by Executives
16
Let’s properly
automate and codify
the Product Owner’s
work before they
break!
I managed to build
the solution
myself in 4 weeks
using serverless!
I really like this
new product
and the fast
turn around!
Innovation Hub’s
serverless PoCs
are finally in
Production!
Settler
Pioneer
Town Planner
17
breakeven
profitable
Transactional Pricing through Micro Optimisation of Variable Costs and eliminating Fixed Costs
First Principles Digital Experience Retrofitting Paper into Digital
Reference: https://legacy.bank/ 18
Reference: https://legacy.bank/ 19
Mobile
Web
Fargate
CloudFront
Route 53
3rd Party
Legacy
On Prem
Legacy
S3
Responsive SPA
Lambda
WAF
Shield
First Principles doesn’t mean starting from scratch. Move at speed by abstracting out legacy
Auth
Digital
Weekly Release
Anti Corruption
Air Lock
Legacy
Monthly/Yearly Release
Cache
20
Trust in Your Product
------------------ NEEDS ------------------
Superior UX
Continuous Innovation
------------------ NEEDS ------------------
Big Data + Hyper Agility
Disrupting New Markets
------------------ NEEDS ------------------
New Business Model
Evolving Business Value
------------------ NEEDS ------------------
Collective Genius
Directly solve business
problems and drive
frictionless products
FinDev and Micro
Optimisation
Maximum Leverage for
Scale and Agility
Rapid UX through Legacy
Abstraction
21
“Hello world” baseline for FaaS runtimes
23
Original Blog: https://tinyurl.com/lambda-benchmarks
Code: https://github.com/serverlesscloud/serverless-multi-cloud-benchmarks
Serverless Framework, Artillery 10 currency per second for 1 hour, CircleCI. Region = North Virginia
Testing the vanilla runtime only, no compute or complex logic involved. Can be used as a baseline for your specific tests
Features AWS GCP Azure Alibaba
FaaS Runtimes
Clusterless Containers
OS
24
Runtime Min Max Median P95 P99 Errors
AWS Csharp 2.1 70.3 170
AWS Fsharp 2.1 67 142.5
AWS Go 1.x 68.5 152.1
AWS Java 8 67.1 153.5 1 (500)
AWS Node 8.10 73.8 164.8
AWS Node 10.x 73.9 148.1
AWS Python 2.7 67.9 156.7
AWS Python 3.6 71.1 173.2
AWS Python 3.7 69.3 161.4
AWS Ruby 2.5 10,054.6 72.1 176.7
GCP Go 1.11 29.1 50.1 72.5
GCP Node 8 64.7 84
GCP Node 10 70.4 88.1
GCP Python 3.7 52.2 73.5
25
AWS Nodejs 10.x
AWS Python 3.7
AWS Go 1.x GCP Go 1.x
GCP Nodejs 10
GCP Python 3.7
Will serverless bring about Cyberpunk Dystopia?
Is RDJ going to use serverless nanobots to clean up the planet?
Atlanta
contino.io continohq contino
London New York Melbourne Sydney

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Art of Serverless Business Value - Serverless Days Sydney 2019

  • 1.
  • 3. Value Stream, Evolution, Innovation and Challenges
  • 4. You should go serverless because you want to focus on creating value — and at your company you endeavor to apply technology toward the creation of business value. - Ben Kehoe, Serverless is a State of Mind Business value is a hypothesis held by the organization’s leadership as to what will best accomplish the organization’s ultimate goals or desired outcomes - Mark Schwartz, the Art of Business Value With serverless, we have this great opportunity to think more about how do we deliver business value quickly, rather than thinking about technology itself. - Yan Cui (burningmonk), The Business Value of Serverless But in reality, this is what happens … 4
  • 5. 5 I don’t have time I need more easier way to do business with your company Our data shows customers want frictionless onboarding
  • 6. 6 We must be cloud agnostic by writing portable code and storing no data! I hear you, will place this in our front door process Innovation Hub has PoC solutions available for what customer needs but we can’t get it into prod My customers have been waiting for 2 years for this feature!
  • 7. 7 I don’t know why we were not involved in these functional specs, HLDs, and requirements My deep Ops experience means I actually know a lot more about the business side We have automated CD to deploy “stuff” every 2 weeks, but how does it impact the customer?
  • 8. 8 $$ $$ $$ Horizon 1 Operators Sustain and defend Core Businesses Through Superior Execution Measured by ROI Horizon 2 Builders Build new Emerging Businesses Using Positional Advantage Measured by NPV Horizon 3 Visionaries Create Viable Options Focusing on Foresight Measured by Option Value and Cost of Delay Profit Time $$ $$ $$ Reference: McKinsey 3 Horizons for Growth Value evolves across horizons and becomes less static due to time value of money and future choice of real options
  • 9. 9 DisruptiveInnovation Evolution SustainingInnovation Pioneers Ideate. Experiment and explore Markets using First Principles and Standard Components Settlers Productise. Differentiate and Custom Build on Customer Feedback Town Planners Optimise. Standardise Components and Industrialise Offerings References: Clayton Christensen, Innovator’s Dilemma Simon Wardley, Pioneers, Settlers, Town Planners
  • 10. 10 Slow and steady doesn’t win the race. The key is to keep running and don’t fall asleep! Trust in Your Product ------------------ NEEDS ------------------ Superior UX Continuous Innovation ------------------ NEEDS ------------------ Big Data + Hyper Agility Disrupting New Markets ------------------ NEEDS ------------------ New Business Model Evolving Business Value ------------------ NEEDS ------------------ Collective Genius Pace of change means no “magic business formula”. Involve your people If what the Customer needs doesn’t fit your business model, think again AI + Scrum doesn’t work and innovation loops can be 1 day sprints Focus on design thinking and go back to digital first principles
  • 11. What good can look like
  • 12. 12Source: https://future.transport.nsw.gov.au Crowdsourcing Vision and Strategy 15 x Future Proof ‘No-Regrets’ Initiatives Prioritise Objectives Design Thinking Rapid Prototype Intelligent Transport Networks, managed with Data 1. Data Science Incubator and open data expansion 2. Trial AI to improve network management and customer service 3. Integrate predictive maintenance Exec Operations MVP
  • 13. MLOps / DataOps ML Engineers / Data Scientists Application Engineers Model Notebook Training Job AppSync Inference Lambda De-Identified Data Lake Inference Auth 13 Weather Events Time Tables Static Web Warehouse Opal Exec Operations
  • 14. 14 1. Pioneers “How many people are on my network?” 2. Settlers Data pipeline and BI reporting 3. Town Planner Make Ops decision and scale out 1. Pioneers “How about tomorrow?" 2. Settlers SageMaker Data Scientists ML Engineers 3. Town Planner MLOps and CD 1. Pioneers “Automatic Operational Response” Descriptive → Diagnostic → Predictive → Prescriptive Business Value KPIs ● Serverless Intelligence Foundation ● 3 weeks PoV ● 5mins instead of 5 days ● 90% accuracy ● Data Driven Culture Uplift
  • 15. Enterprise Ready and loved by Executives
  • 16. 16 Let’s properly automate and codify the Product Owner’s work before they break! I managed to build the solution myself in 4 weeks using serverless! I really like this new product and the fast turn around! Innovation Hub’s serverless PoCs are finally in Production! Settler Pioneer Town Planner
  • 17. 17 breakeven profitable Transactional Pricing through Micro Optimisation of Variable Costs and eliminating Fixed Costs
  • 18. First Principles Digital Experience Retrofitting Paper into Digital Reference: https://legacy.bank/ 18
  • 19. Reference: https://legacy.bank/ 19 Mobile Web Fargate CloudFront Route 53 3rd Party Legacy On Prem Legacy S3 Responsive SPA Lambda WAF Shield First Principles doesn’t mean starting from scratch. Move at speed by abstracting out legacy Auth Digital Weekly Release Anti Corruption Air Lock Legacy Monthly/Yearly Release Cache
  • 20. 20 Trust in Your Product ------------------ NEEDS ------------------ Superior UX Continuous Innovation ------------------ NEEDS ------------------ Big Data + Hyper Agility Disrupting New Markets ------------------ NEEDS ------------------ New Business Model Evolving Business Value ------------------ NEEDS ------------------ Collective Genius Directly solve business problems and drive frictionless products FinDev and Micro Optimisation Maximum Leverage for Scale and Agility Rapid UX through Legacy Abstraction
  • 21. 21
  • 22. “Hello world” baseline for FaaS runtimes
  • 23. 23 Original Blog: https://tinyurl.com/lambda-benchmarks Code: https://github.com/serverlesscloud/serverless-multi-cloud-benchmarks Serverless Framework, Artillery 10 currency per second for 1 hour, CircleCI. Region = North Virginia Testing the vanilla runtime only, no compute or complex logic involved. Can be used as a baseline for your specific tests Features AWS GCP Azure Alibaba FaaS Runtimes Clusterless Containers OS
  • 24. 24 Runtime Min Max Median P95 P99 Errors AWS Csharp 2.1 70.3 170 AWS Fsharp 2.1 67 142.5 AWS Go 1.x 68.5 152.1 AWS Java 8 67.1 153.5 1 (500) AWS Node 8.10 73.8 164.8 AWS Node 10.x 73.9 148.1 AWS Python 2.7 67.9 156.7 AWS Python 3.6 71.1 173.2 AWS Python 3.7 69.3 161.4 AWS Ruby 2.5 10,054.6 72.1 176.7 GCP Go 1.11 29.1 50.1 72.5 GCP Node 8 64.7 84 GCP Node 10 70.4 88.1 GCP Python 3.7 52.2 73.5
  • 25. 25 AWS Nodejs 10.x AWS Python 3.7 AWS Go 1.x GCP Go 1.x GCP Nodejs 10 GCP Python 3.7
  • 26. Will serverless bring about Cyberpunk Dystopia? Is RDJ going to use serverless nanobots to clean up the planet?
  • 27. Atlanta contino.io continohq contino London New York Melbourne Sydney