Category Archives: Amazon AWS

Big Data & Analytics – what’s ahead?

Recently I read somewhere this statement – As we end 2017 and look ahead to 2018, topics that are top of mind for data professionals are the growing range of data management mandates, including the EU’s new General Data Protection Regulation that is directed at personal data and privacy, the growing role of artificial intelligence (AI) and machine learning in enterprise applications, the need for better security in light of the onslaught of hacking cases, and the ability to leverage the expanding Internet of Things.

Here are the key areas as we look ahead:

  • Business owners demand outcomes – not just a data lake to store all kinds of data in its native format and API’s.
  • Data Science must produce results – Play and Explore is not enough. Learn to ask the right questions. Visualization of analytics from search.
  • Everyone wants Real Time – Days and weeks too slow, need immediate actionable outcomes. Analytics & recommendations based on real time data.
  • Everyone wants AI (artificial intelligence) – Tell me what I don’t know.
  • Systems must be secure – no longer a mere platitude.
  • ML (machine learning) and IoT at massive scale – Thousands of ML models. Need model accuracy.
  • Blockchain – need to understand its full potential to business – since it’s not transformational, but a foundational technology shift.

In the area of big data, a combination of new and long-established technologies are being put to work. Hadoop and Spark are expanding their roles within organizations. NoSQL and NewSQL databases bring their own unique attributes to the enterprise, while in-memory capabilities (such as Redis) are increasingly being utilized to deliver insights to decision makers faster. And through it all, tried-and-true relational databases continue to support many of the most critical enterprise data environments.

Cloud becomes the de-facto deployment choice for both users and developers. Serverless technology with FaaS (Function as a Service) is getting rapid adoption amongst developers. According to IDC, enterprises are undergoing IT transformation as they rethink their business operations, including how they use information and what technology to deploy. In line with that transformation, nearly 80% of large organizations already have a hybrid cloud strategy in place. The modern application architecture, sometimes referred to as SMAC (social, mobile, analytics, cloud) is becoming standard everywhere.

The DBaaS (database as a service) is still not as widespread as other cloud services. Microsoft is arguably making the strongest explicit claim for a converged database system with its Azure Cosmo DB as DBaaS. Cosmo DB claims to support four data models – key-value, column-family, document, and graph. However, databases have been slower to migrate to the cloud than other elements of computing infrastructure mainly for security and performance reasons. But DBaaS adoption is poised to accelerate. Some of these cloud based DBaaS systems – Cosmo DB, Spanner from Google, and AWS DynamoDB – now offer significant advantages over their on-premise counterparts.

One thing for sure, big data and analytics will continue to be vibrant and exciting in 2018.

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AWS re:Invent 2017

In a few decades when the history of computing will be written, a major section will be devoted to cloud computing. The headline of the first section would read something like this – How did a dot-com era book-selling company became the father of cloud computing? While the giants like IBM, HP, and Microsoft were sleeping, Amazon started a new business eleven years ago in 2006 called AWS (Amazon Web Services). I still remember the afternoon when I had spent couple of hours with the CTO of Amazon (not Werner Vogel, his predecessor, a dutch gentleman) back in 2004 discussing the importance of SOA (Service Oriented Architecture). When I asked why was he interested, he mentioned how CEO Jeff Bezos has given a marching order to monetize the under-utilized infrastructure in their data centers. Thus AWS arrived in 2006 with S3 for storage and EC2 for computing.

Advance the clock by 11 years. At this week’s AWS Re-Invent event in Las Vegas it was amazing to listen to Andy Jassy, CEO of AWS who gave a 2.5 hour keynote on how far AWS has come. There were 43,000 people attending this event (in its 6th year) and another 60,000 were tuned in via the web. AWS has a revenue run rate of $18B with a 42% Year-to-Year growth. It’s profit is over 60% thus contributing significantly to Amazon’s bottom line. It has hundreds of thousands of customers starting from majority web startups to Fortune 500 enterprise players in all verticals. It has the strongest partner ecosystem. Garter group said AWS has a market share of 44.1% (39% last year), larger than all others combined. Customers like Goldman Sachs, Expedia, and National Football League were on stage showing how they fully switched to AWS for all their development and production.

Andy covered four major areas – computing, database, analytics, and machine learning with many new announcement of services. AWS already offers over 100 services. Here is a brief overview.

  • Computing – 3 major areas: Instances of EC2 including new GPU processor for AI, Containers (services such as Elastic Container Services and new ones like EKS – Elastic Kubernetes Services), and Serverless (Function as a Service with its Lambda services). The last one, Serverless is gaining fast traction in just last 12 months.
  • Database – AWS is starting to give real challenge to incumbents like Oracle, IBM and Microsoft. It has three offerings – AWS Aurora RDBMS for transaction processing, DynamoDB and Redshift. Andy announced Aurora Multi-Master for replicated read and writes across data centers and zones. He claims it is the first RDBMS with scale-out across multiple data centers and is lot cheaper than Oracle’s RAC solution. They also announced Aurora Serverless for on-demand, auto-scaling app dev. For No-SQL, AWS has DynamoDB (key-value store). They also have Amazon Elastic Cache for in-memory DB. Andy announced Dynamo DB Global Tables as a fully-managed, multi-master, multi-region DB for customers with global users (such as Expedia). Another new service called Amazon Neptune was announced for highly connected data (fully managed Graph database). They also have Redshift for data warehousing and analytics.
  • Analytics – AWS provides Data Lake service on S3 which enables API access to any data in its native form. They have many services like Athena, Glue, Kinesis to access the data lake. Two new services were announced – S3 Select (a new API to select and retrieve S3 data from within an object), Glacier Select (access less frequently used data in the archives).
  • Machine Learning – Amazon claims it has been using machine learning for 20 years in its e-commerce business to understand user’s preferences. A new service was announced called Amazon Sagemaker which brings storage, data movement, management of hosted notebook, and ML algorithms like 10 top commonly used ones (eg. Time Series Forecasting). It also accommodates other popular libraries like Tensorflow, Apache MxNet, and Caffe2. Once you pick an algorithm, training is much easier with Sagemaker. Then with one-click, the deployment happens. Their chief AI fellow Dr. Matt Wood demonstrated on stage how this is all done. They also announced AWS DeepLens, a video camera for developers with a computer vision model. This can detect facial recognition and image recognition for apps. New services announced besides the above two are – Amazon Kinesis Video streams (video ingestion), Amazon Transcribe (automatic speech recognition), Amazon Translate (between languages), and Amazon Comprehend (fully managed NLP – Natural Language Processing).

It was a very impressive and powerful presentation and shows how deeply committed and dedicated the AWS team is. Microsoft Azure cloud, Google’s computing cloud, IBM’s cloud and Oracle’s cloud all seem way behind in terms of AWS’s breadth and depth. It will be to customer’s benefit to have couple of AWS alternatives as we march along the cloud computing highway. Who wants a single-vendor lock-in?

Meet the new richest man on earth

This morning Jeff Bezos beat his nemesis from the same town Bill Gates as the richest man on the planet with his worth exceeding $90B. This was due to a huge surge in Amazon’s stock price (over $128 rise) to $1100 plus today. Their 3Q results came out yesterday and Amazon grew its revenue by 34% and profits inched up as well. There were fears that heavy investments in new warehouses and hiring workers would push it to a loss. This year Amazon’s stock started at $750. What a run!

Here are the numbers. Revenue soared 34% to a record $43.74B, a first for a non-holiday period, as the internet retail giant spread its ambitions with the acquisition of Whole Foods Market Inc. and widened its lead in cloud computing. Profit increased 1.6% to $256M, despite the costs bulging by 35%, a five-year high. I was surprised to know that Amazon employs 541,900 people, an increase from last quarter’s 382,400. Roughly 87,000 employees were added from Whole Foods. Now Amazon commands some 43.5% of e-commerce sales this year, compared with 38.1% last year.

I remember during the dot.com crash, everyone wrote off Amazon. When they ridiculed Bezos for a no-profit company with a bleak future, he jokingly replied, ” I spell profit as ‘prophet'”. He has come a long way with his prophetic vision and masterful execution.

The best addition to Amazon’s two core businesses (books and e-commerce) was the introduction of AWS as the cloud computing infrastructure back in 2004. First came S3 (simple shared storage) when Bezos convinced start-up companies to rent storage at one-hundredth of the cost of buying from big vendors. Then EC2 (Elastic Computing Cloud) was added and that took off in a big way, especially with capital-starved startups with unpredictable computing needs. Pretty soon, Amazon took the credit of being the ‘father of cloud computing’ beating big incumbents like IBM, HP, etc. Now AWS is a huge business growing fast and bringing in about $16B revenue with over 60% profit. AWS is making a difference to the bottom line. Microsoft is trying hard to catch up with its Azure cloud and so is Google with its GCE (Google Computing Cloud). Today’s AWS is a very rich stack with its own database as a service (Redshift, Dynamo, and Aurora), elastic Map-Reduce, serverless offering with Lambda, and much more.There are predictions that AWS could one day be the biggest business for Amazon.

While the pacific north-west remains to be the home of the richest man on earth, the title shifts to Bezos from Gates.

Serverless, FaaS, AWS Lambda, etc..

If you are part of the cloud development community, you certainly know about “serverless computing”, almost a misnomer. Because it implies there are no servers which is untrue. However the servers are hidden from the developers. This model eliminates operational complexity and increases developer productivity.

We came from monolithic computing to client-server to services to microservices to serverless model. In other words, our systems have slowly “dissolved” from monolithic to function-by-function. Software is developed and deployed as individual functions – a first-class object and cloud runs it for you. These functions are triggered by events which follows certain rules. Functions are written in fixed set of languages, with a fixed set of programming model and cloud-specific syntax and semantics. Cloud-specific services can be invoked to perform complex tasks. So for cloud-native applications, it offers a new option. But the key question is what should you use it for and why.

Amazon’s AWS, as usual, spearheaded this in 2014 with a engine called AWS Lambda. It supports Node, Python, C# and Java. It uses AWS API triggers for many AWS services. IBM offers OpenWhisk as a serverless solution that supports Python, Java, Swift, Node, and Docker. IBM and third parties provide service triggers. The code engine is Apache OpenWhisk. Microsoft provides similar function in its Azure Cloud function. Google cloud function supports Node only and has lots of other limitations.

This model of computing is also called “event-driven” or FaaS (Function as a Service). There is no need to manage provisioning and utilization of resources, nor to worry about availability and fault-tolerance. It relieves the developer (or devops) from managing scale and operations. Therefore, the key marketing slogans are event-driven, continuous scaling, and pay by usage. This is a new form of abstraction that boils down to function as the granular unit.

At the micro-level, serverless seems pretty simple – just develop a procedure and deploy to the cloud. However, there are several implications. It imposes a lot of constraints on developers and brings load of new complexities plus cloud lock-in. You have to pick one of the cloud providers and stay there, not easy to switch. Areas to ponder are cost, complexity, testing, emergent structure, vendor dependence, etc.

Serverless has been getting a lot of attention in last couple of years. We will wait and see the lessons learnt as more developers start deploying it in real-world web applications.

Amazon+Whole Foods – How to read this?

Last Thursday (June 15, 2017), Amazon decided to acquire Whole Foods for a whopping $13.7B ($42 per share, a 27% premium to its closing price). On Friday, stock prices of Walmart, Target, and Costco took a hit downwards, while Amazon shares went up by more than 2%. So why did Amazon buy Whole Foods? Clearly Amazon sees groceries as an important long-term driver of growth in its retail segment. What is funny is that a web pioneer with no physical retail outlet decided to get back to the brick-and-mortar model. Amazon has also started physical bookstores at a few cities. We have come full circle.

Amazon grocery business has focussed on Amazon Fresh subscription service so far to deliver online food orders. Amazon will eventually use the stores to promote private-label products, integrate and grow its AI powered Echo speakers, boost prime membership and entice more customers into the fold. Hence this acquisition is the start of a long term strategy. Amazon is known for its non-linear thinking. Just see how it started a brand new business with AWS about 12 years back and now it is a $14B business with a 50%+ margin. It commands a powerful leadership position in the cloud computing business and competitors like Microsoft Azure or Google’s GCE are trying hard to catch up.

The interesting thing to ponder is how the top tech companies are spreading their tentacles. This was a front-page article in today’s WSJ. Apple, a computer company that became a phone company, is now working on self-driving cars, TV programming, and augmented reality. It is also pushing into payments territory challenging the banks. Google parent Alphabet built Android which now runs most PC devices. It ate the maps industry; it’s working on internet-beaming balloons, energy-harvesting kites, and self-driving technologies. Facebook is creating drones, VR hardware, original TV shows, and even telepathic brain computers. Of course Elon Musk brings his tech notions to any market he pleases – finance, autos, energy, and aerospace.

What is special about Amazon is that it is willing to work on everyday problems. According to the author of the WSJ article, this may be the smarter move in the long run. While Google and Facebook have yet to drive significant revenue outside their core, Amazon has managed to create business after business that is profitable, or at least not a drag on the bottom line. The article ends with cautionary note, “Imagine a future in which Amazon, which already employs north of 340,000 people worldwide, is America’s biggest employer. Imagine we are all spending money at what’s essentially the company store, and when we get home we’re streaming Amazon’s media….”

With few tech giants controlling so many businesses, are we comfortable to get all our goods and services from the members of an oligopoly?

Oracle’s push into cloud solutions

I watched Larry Ellison’s keynotes at this week’s Oracle Open world conference in San Francisco. They are definitely serious in pushing their cloud offerings, even though they came in late. But Oracle claimed that they have been working on it for almost ten years. The big push is at all 3 levels – SaaS, PaaS, and IaaS. The infrastructure as a service claims faster and cheaper resources (computing, storage, and networking) to beat Amazon’s AWS. They make a good point on better security for the enterprises, given the risk of security breaches happening at greater frequency lately. One comment I have is that AWS is beyond just IaaS, they are into PaaS as well (e.g. Docker services, etc. for devops). Oracle’s big advantage is in offering SaaS for all their application suits – ERP, HCM and CRM (they call it CX as customer experience). This is not something AWS offers for the enterprise market, although apps like SalesForce and Workday are available. Microsoft has Dynamics as an ERP on their cloud.

I do agree that Oracle has an upper hand when it comes to database as a service. Larry showed performance numbers for AWS Redshift, Aurora, and DynamoDB compared to Oracle’s database (much faster). They do have a chance to beat AWS when it comes to serious enterprise-scale implementations, given their strong hold in that market. Most of these enterprises still run much of their systems on-premise. Oracle offers them an alternative to switch to the cloud version within their firewall. They also suggest the co-existence of both on-prem and cloud solutions. The total switch-over to cloud will take ten years or more, as the confidence and comfort level grows over time.

AWS has a ten year lead here and they have grown in scale and size. The current run rate for AWS is over $10B in revenue with hefty profit (over 50%). However, many clients complain about the high cost as you use more services of AWS. Microsoft Azure and Google’s cloud services are marching fast to catch up. Most of the new-age web-companies use AWS. Oracle is better off focusing on the enterprise market, their strong hold. Not to discount IBM here, who is pushing their Soft Layer cloud solutions to the enterprise customers. Mark Hurd of Oracle showed several examples of cloud deployment at large to medium size companies as well. One interesting presence at the Open World yesterday was the chief minister (like a state Governor) of the Indian state, Maharashtra (Mumbai being the big city there). He signed a deal with Oracle to help implement cloud solutions to make many cities into “smart” cities and also connecting 29000 villages digitally. This is a big win for Oracle and will set the stage for many other government outfits to follow suit.

I think more competition to AWS is welcome, as no one wants a single-vendor lock-in. Mark Hurd said that by 2020, cloud solutions will dominate the enterprise landscape. The analysts are skeptical on Oracle’s claim over AWS, but a focused Oracle on cloud is not to be taken lightly.

Jnan Dash

Linux & Cloud Computing

While reading the latest issue of the Economist, I was reminded that August 25th. marks an important anniversary for two key events:  25 years back, on August 25, 1991, Linus Torvalds launched a new operating system called Linux and on the same day in 2006, Amazon under the leadership of Andy Jesse launched the beta version of Elastic Computing Cloud (EC2), the central piece of Amazon Web Services (AWS).

The two are very interlinked. Linux became the world’s most used piece of software of its type. Of course Linux usage soared due to backers like HP, Oracle, and IBM to combat the Windows force. Without open-source programs like Linux, cloud computing would not have happened. Currently 1500 developers contribute to each new version of Linux. AWS servers deploy Linux heavily. Being first to succeed on a large scale allowed both Linux and AWS to take advantage of the network effect, which makes popular products even more entrenched.

Here are some facts about AWS. It’s launch back in 2006 was extremely timely, just one year before the smartphones came about. Apple launched its iPhone in 2007 which ushered the app economy. AWS became the haven for start-ups making up nearly two-third of its customer base (estimated at 1 million). According to Gartner Group, the cloud computing market is at $205B in 2016, which is 6% of the world’s IT budget of $3.4 trillion. This number will grow to $240B next year. No wonder, Amazon is reaping the benefits – over past 12 months, AWS revenue reached $11B with a margin of over 50%. During the last quarter, AWS sales were 3 times more than the nearest competitor, Microsoft Azure. AWS has ten times more computing capacity than the next 14 cloud providers combined. We also saw the fate of Rackspace last week (acquired by a private equity firm). Other cloud computing providers like Microsoft Azure, Google Cloud, and IBM (acquired SoftLayer in 2013) are struggling to keep up with AWS.

The latest battleground in cloud computing is data. AWS offers Aurora and Redshift in that space. It also started a new services called Snowball, a suitcase-sized box of digital memory which can store mountains of data in the AWS cloud (interesting challenge to Box and Dropbox). IBM bought Truven Health Analytics which keeps data on 215m patients in the healthcare industry.

The Economist article said, “AWS could end up dominating the IT industry just as IBM’s System/360, a family of mainframe computers did until the 1980s.”       I hope it’s not so and we need serious competition to AWS for customer’s benefits. Who wants a single-vendor “lock-in”? Microsoft’s Azure seems to be moving fast. Let us hope IBM, Google, and Oracle move very aggressively offering equivalent or better alternatives to Amazon cloud services.