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Idea to Prototype to Production

Idea to Prototype to Production

Serverless for Product Managers, London Tech Week, June 13th, 2019

Danilo Poccia

June 13, 2019
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  1. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Danilo Poccia
    Principal Evangelist, Serverless
    @danilop
    Idea → Prototype → Production
    with Serverless

    View Slide

  2. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    “One thing I love about
    customers is that they
    are divinely
    discontent.”
    To our shareowners:
    The American Customer Satisfaction Index recently announced the results of its annual survey, and for the 8th
    year in a row customers ranked Amazon #1. The United Kingdom has a similar index, The U.K. Customer
    Satisfaction Index, put out by the Institute of Customer Service. For the 5th time in a row Amazon U.K. ranked
    #1 in that survey. Amazon was also just named the #1 business on LinkedIn’s 2018 Top Companies list, which
    ranks the most sought after places to work for professionals in the United States. And just a few weeks ago,
    Harris Poll released its annual Reputation Quotient, which surveys over 25,000 consumers on a broad range of
    topics from workplace environment to social responsibility to products and services, and for the 3rd year in a row
    Amazon ranked #1.
    Congratulations and thank you to the now over 560,000 Amazonians who come to work every day with
    unrelenting customer obsession, ingenuity, and commitment to operational excellence. And on behalf of
    Amazonians everywhere, I want to extend a huge thank you to customers. It’s incredibly energizing for us to see
    your responses to these surveys.
    One thing I love about customers is that they are divinely discontent. Their expectations are never static – they go
    up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a
    voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of
    improvement happening at a faster rate than ever before. It may be because customers have such easy access to
    more information than ever before – in only a few seconds and with a couple taps on their phones, customers can
    read reviews, compare prices from multiple retailers, see whether something’s in stock, find out how fast it will
    ship or be available for pick-up, and more. These examples are from retail, but I sense that the same customer
    empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries
    as well. You cannot rest on your laurels in this world. Customers won’t have it.
    How do you stay ahead of ever-rising customer expectations? There’s no single way to do it – it’s a combination
    of many things. But high standards (widely deployed and at all levels of detail) are certainly a big part of it.
    We’ve had some successes over the years in our quest to meet the high expectations of customers. We’ve also
    had billions of dollars’ worth of failures along the way. With those experiences as backdrop, I’d like to share
    with you the essentials of what we’ve learned (so far) about high standards inside an organization.
    Intrinsic or Teachable?
    First, there’s a foundational question: are high standards intrinsic or teachable? If you take me on your basketball
    team, you can teach me many things, but you can’t teach me to be taller. Do we first and foremost need to select
    for “high standards” people? If so, this letter would need to be mostly about hiring practices, but I don’t think so.
    I believe high standards are teachable. In fact, people are pretty good at learning high standards simply through
    exposure. High standards are contagious. Bring a new person onto a high standards team, and they’ll quickly
    adapt. The opposite is also true. If low standards prevail, those too will quickly spread. And though exposure
    works well to teach high standards, I believe you can accelerate that rate of learning by articulating a few core
    principles of high standards, which I hope to share in this letter.
    Universal or Domain Specific?
    Another important question is whether high standards are universal or domain specific. In other words, if you
    have high standards in one area, do you automatically have high standards elsewhere? I believe high standards
    are domain specific, and that you have to learn high standards separately in every arena of interest. When I
    started Amazon, I had high standards on inventing, on customer care, and (thankfully) on hiring. But I didn’t
    have high standards on operational process: how to keep fixed problems fixed, how to eliminate defects at the
    root, how to inspect processes, and much more. I had to learn and develop high standards on all of that (my
    colleagues were my tutors).
    2017
    Letter
    to
    Shareholders

    View Slide

  3. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    “Their expectations are
    never static – they go
    up. It’s human nature.
    We didn’t ascend from
    our hunter-gatherer
    days by being
    satisfied.”
    To our shareowners:
    The American Customer Satisfaction Index recently announced the results of its annual survey, and for the 8th
    year in a row customers ranked Amazon #1. The United Kingdom has a similar index, The U.K. Customer
    Satisfaction Index, put out by the Institute of Customer Service. For the 5th time in a row Amazon U.K. ranked
    #1 in that survey. Amazon was also just named the #1 business on LinkedIn’s 2018 Top Companies list, which
    ranks the most sought after places to work for professionals in the United States. And just a few weeks ago,
    Harris Poll released its annual Reputation Quotient, which surveys over 25,000 consumers on a broad range of
    topics from workplace environment to social responsibility to products and services, and for the 3rd year in a row
    Amazon ranked #1.
    Congratulations and thank you to the now over 560,000 Amazonians who come to work every day with
    unrelenting customer obsession, ingenuity, and commitment to operational excellence. And on behalf of
    Amazonians everywhere, I want to extend a huge thank you to customers. It’s incredibly energizing for us to see
    your responses to these surveys.
    One thing I love about customers is that they are divinely discontent. Their expectations are never static – they go
    up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a
    voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of
    improvement happening at a faster rate than ever before. It may be because customers have such easy access to
    more information than ever before – in only a few seconds and with a couple taps on their phones, customers can
    read reviews, compare prices from multiple retailers, see whether something’s in stock, find out how fast it will
    ship or be available for pick-up, and more. These examples are from retail, but I sense that the same customer
    empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries
    as well. You cannot rest on your laurels in this world. Customers won’t have it.
    How do you stay ahead of ever-rising customer expectations? There’s no single way to do it – it’s a combination
    of many things. But high standards (widely deployed and at all levels of detail) are certainly a big part of it.
    We’ve had some successes over the years in our quest to meet the high expectations of customers. We’ve also
    had billions of dollars’ worth of failures along the way. With those experiences as backdrop, I’d like to share
    with you the essentials of what we’ve learned (so far) about high standards inside an organization.
    Intrinsic or Teachable?
    First, there’s a foundational question: are high standards intrinsic or teachable? If you take me on your basketball
    team, you can teach me many things, but you can’t teach me to be taller. Do we first and foremost need to select
    for “high standards” people? If so, this letter would need to be mostly about hiring practices, but I don’t think so.
    I believe high standards are teachable. In fact, people are pretty good at learning high standards simply through
    exposure. High standards are contagious. Bring a new person onto a high standards team, and they’ll quickly
    adapt. The opposite is also true. If low standards prevail, those too will quickly spread. And though exposure
    works well to teach high standards, I believe you can accelerate that rate of learning by articulating a few core
    principles of high standards, which I hope to share in this letter.
    Universal or Domain Specific?
    Another important question is whether high standards are universal or domain specific. In other words, if you
    have high standards in one area, do you automatically have high standards elsewhere? I believe high standards
    are domain specific, and that you have to learn high standards separately in every arena of interest. When I
    started Amazon, I had high standards on inventing, on customer care, and (thankfully) on hiring. But I didn’t
    have high standards on operational process: how to keep fixed problems fixed, how to eliminate defects at the
    root, how to inspect processes, and much more. I had to learn and develop high standards on all of that (my
    colleagues were my tutors).
    2017
    Letter
    to
    Shareholders

    View Slide

  4. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    “People have a
    voracious appetite for a
    better way, and
    yesterday’s wow
    quickly becomes
    today’s ordinary.”
    To our shareowners:
    The American Customer Satisfaction Index recently announced the results of its annual survey, and for the 8th
    year in a row customers ranked Amazon #1. The United Kingdom has a similar index, The U.K. Customer
    Satisfaction Index, put out by the Institute of Customer Service. For the 5th time in a row Amazon U.K. ranked
    #1 in that survey. Amazon was also just named the #1 business on LinkedIn’s 2018 Top Companies list, which
    ranks the most sought after places to work for professionals in the United States. And just a few weeks ago,
    Harris Poll released its annual Reputation Quotient, which surveys over 25,000 consumers on a broad range of
    topics from workplace environment to social responsibility to products and services, and for the 3rd year in a row
    Amazon ranked #1.
    Congratulations and thank you to the now over 560,000 Amazonians who come to work every day with
    unrelenting customer obsession, ingenuity, and commitment to operational excellence. And on behalf of
    Amazonians everywhere, I want to extend a huge thank you to customers. It’s incredibly energizing for us to see
    your responses to these surveys.
    One thing I love about customers is that they are divinely discontent. Their expectations are never static – they go
    up. It’s human nature. We didn’t ascend from our hunter-gatherer days by being satisfied. People have a
    voracious appetite for a better way, and yesterday’s ‘wow’ quickly becomes today’s ‘ordinary’. I see that cycle of
    improvement happening at a faster rate than ever before. It may be because customers have such easy access to
    more information than ever before – in only a few seconds and with a couple taps on their phones, customers can
    read reviews, compare prices from multiple retailers, see whether something’s in stock, find out how fast it will
    ship or be available for pick-up, and more. These examples are from retail, but I sense that the same customer
    empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries
    as well. You cannot rest on your laurels in this world. Customers won’t have it.
    How do you stay ahead of ever-rising customer expectations? There’s no single way to do it – it’s a combination
    of many things. But high standards (widely deployed and at all levels of detail) are certainly a big part of it.
    We’ve had some successes over the years in our quest to meet the high expectations of customers. We’ve also
    had billions of dollars’ worth of failures along the way. With those experiences as backdrop, I’d like to share
    with you the essentials of what we’ve learned (so far) about high standards inside an organization.
    Intrinsic or Teachable?
    First, there’s a foundational question: are high standards intrinsic or teachable? If you take me on your basketball
    team, you can teach me many things, but you can’t teach me to be taller. Do we first and foremost need to select
    for “high standards” people? If so, this letter would need to be mostly about hiring practices, but I don’t think so.
    I believe high standards are teachable. In fact, people are pretty good at learning high standards simply through
    exposure. High standards are contagious. Bring a new person onto a high standards team, and they’ll quickly
    adapt. The opposite is also true. If low standards prevail, those too will quickly spread. And though exposure
    works well to teach high standards, I believe you can accelerate that rate of learning by articulating a few core
    principles of high standards, which I hope to share in this letter.
    Universal or Domain Specific?
    Another important question is whether high standards are universal or domain specific. In other words, if you
    have high standards in one area, do you automatically have high standards elsewhere? I believe high standards
    are domain specific, and that you have to learn high standards separately in every arena of interest. When I
    started Amazon, I had high standards on inventing, on customer care, and (thankfully) on hiring. But I didn’t
    have high standards on operational process: how to keep fixed problems fixed, how to eliminate defects at the
    root, how to inspect processes, and much more. I had to learn and develop high standards on all of that (my
    colleagues were my tutors).
    2017
    Letter
    to
    Shareholders

    View Slide

  5. View Slide

  6. © 2019, Amazon Web Services, Inc. or its Affiliates.
    “Amazon S3 is intentionally
    built with a minimal feature set.
    The focus is on simplicity and
    robustness.”
    – Amazon S3 Press Release,
    March 14, 2006

    View Slide

  7. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    “A complex system that
    works is invariably found
    to have evolved from a
    simple system that
    worked.”
    Gall’s Law

    View Slide

  8. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    “A complex system
    designed from scratch
    never works and cannot
    be patched up to make it
    work. You have to start
    over with a working
    simple system.”

    View Slide

  9. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Monolithic
    Application
    Services Microservices

    View Slide

  10. © 2019, Amazon Web Services, Inc. or its Affiliates.
    What is serverless?
    No infrastructure to manage Automatic scaling
    Pay for value Highly available and secure

    View Slide

  11. © 2019, Amazon Web Services, Inc. or its Affiliates.
    How does Serverless work?
    Storage
    Databases
    Analytics
    Machine Learning
    . . .
    Your
    business
    logic
    User uploads picture
    Customer data updated
    Anomaly detected
    . . .
    Fully-managed
    services
    Events
    Functions

    View Slide

  12. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    How does
    this work?
    Photo by AbsolutVision on Unsplash

    View Slide

  13. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Serverless Real-Time Apps – What to build?
    • Building a chat is the mandatory example for WebSockets
    • Can I build something that can help in being a “better” person?
    • Not in person communication is hard
    • Can machine learning help? Some services are super easy to use!

    View Slide

  14. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Vision Speech Language Chatbots
    Forecasting Recommendations
    Forecast
    Comprehend Lex
    Personalize
    Polly
    Rekognition
    Image
    Video
    Textract
    Transcribe Translate

    View Slide

  15. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Let’s build a “Positive Chat” J
    • Avoid negative sentiment
    • Reject negative sentences
    • Positive sentiment gamification
    • Automatically translate between different languages
    • Extract message topics to improve searchability and discoverability
    • Create and update a chat room “tag cloud”
    • Search or filter messages by “tag”

    View Slide

  16. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Let’s build a “Positive Chat” J
    • Attach images to messages
    • Moderate content
    • Describe image content (objects, people, emotions)
    • Find text in images
    • Anonymize people faces
    • For all people or based on estimated age
    • Cover faces with emoticon based on actual emotions !"#$%

    View Slide

  17. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Positive Chat – Serverless architecture
    Amazon
    DynamoDB
    Amazon
    Cognito
    Amazon API
    Gateway
    WebSocket
    connection
    PositiveChat
    Lambda function
    Connections
    table
    Conversations
    table
    Topics
    table
    Web
    browser
    AWS Cloud
    S3 bucket for
    static assets
    (HTML, CSS, JS)
    Authentication
    Authorization
    To be implemented
    Amazon
    Comprehend
    Amazon
    Translate
    Amazon
    Rekognition
    To be implemented

    View Slide

  18. © 2019, Amazon Web Services, Inc. or its Affiliates.
    $ wc -l positive-chat/app.js
    326 positive-chat/app.js
    $ wc -l www/index.js
    204 www/index.js
    backend + frontend ≃ 460 lines of code
    removing empty lines and comments

    View Slide

  19. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Positive Chat Demo
    https://pchat.demo.danilop.net/?room=LondonTechWeek
    https://github.com/danilop/serverless-positive-chat

    View Slide

  20. © 2019, Amazon Web Services, Inc. or its Affiliates.
    What is in for Product Managers?
    Less code, more speed
    Focus on what you want to build
    Estimate the cost per user or per feature
    Link business models and tiers to features and costs
    Faster to turn an idea into a prototype
    Prototypes are easier to bring in production
    Service updates enable new features

    View Slide

  21. © 2019, Amazon Web Services, Inc. or its Affiliates.

    View Slide

  22. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    What about teams?
    Photo by Perry Grone on Unsplash

    View Slide

  23. © 2019, Amazon Web Services, Inc. or its Affiliates.
    You Build It, You Run It
    “This brings developers into
    contact with the day-to-day
    operation of their software. It
    also brings them into day-to-
    day contact with the
    customer.”
    – Werner Vogels
    CTO, Amazon.com

    View Slide

  24. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Team size & communication paths
    =
    #(# − 1)
    2
    Communication paths
    in a team of N people

    View Slide

  25. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Two pizza teams
    Photo by Kristina Bratko on Unsplash

    View Slide

  26. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Separable vs complex tasks
    Separable
    task
    Complex
    task

    View Slide

  27. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Ability as a collection of cognitive tools
    Adam
    Abilities = 5
    { A, B, C, D, E }
    For example:
    A – mobile development on iOS
    B – back end development in Java
    C – data analytics in Python
    D – complex SQL queries
    E – …

    View Slide

  28. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Ability as a collection of cognitive tools
    Adam Carl
    Betsy
    { C, D, G }
    Abilities = 5 Abilities = 4 Abilities = 3
    { A, B, E, F }
    { A, B, C, D, E }

    View Slide

  29. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Diversity bonus model – Team with best abilities
    Adam Carl
    Betsy
    { C, D, G }
    Abilities = 5 Abilities = 4 Abilities = 3
    Team Abilities = 6
    { A, B, E, F }
    { A, B, C, D, E }

    View Slide

  30. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Diversity bonus model – Team with more cognitive tools
    Adam Carl
    Betsy
    { A, B, E, F }
    { A, B, C, D, E } { C, D, G }
    Abilities = 5 Abilities = 4 Abilities = 3
    Team Abilities = 7

    View Slide

  31. © 2019, Amazon Web Services, Inc. or its Affiliates.
    No diversity, no bonus – Beware hiring managers
    Adam Carl
    Betsy
    { A, B, C, D }
    { A, B, C, D, E } { B, C, D }
    Abilities = 5 Abilities = 4 Abilities = 3

    View Slide

  32. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Some cognitive tools must be learned in order
    Adam Carl
    Betsy
    { A, B, C, D }
    { A, B, C, D, E } { A, B, C }
    Abilities = 5 Abilities = 4 Abilities = 3

    View Slide

  33. © 2019, Amazon Web Services, Inc. or its Affiliates.
    2,092 people who worked on
    474 musicals from 1945 to 1989
    Small world networks & creativity
    AJS Volume 111 Number 2 (September 2005): 000–000 PROOF 1
    ᭧ 2005 by The University of Chicago. All rights reserved.
    0002-9602/2005/11102-0003$10.00
    Thursday Oct 13 2005 11:31 AM AJS v111n2 090090 VSJ
    Collaboration and Creativity: The Small
    World Problem1
    Brian Uzzi
    Northwestern University
    Jarrett Spiro
    Stanford University
    Small world networks have received disproportionate notice in di-
    verse fields because of their suspected effect on system dynamics.
    The authors analyzed the small world network of the creative artists
    who made Broadway musicals from 1945 to 1989. Based on original
    arguments, new statistical methods, and tests of construct validity,
    they found that the varying “small world” properties of the systemic-
    level network of these artists affected their creativity in terms of the
    financial and artistic performance of the musicals they produced.
    The small world network effect was parabolic; performance in-
    creased up to a threshold after which point the positive effects
    reversed.
    Creativity aids problem solving, innovation, and aesthetics, yet our un-
    derstanding of it is still forming. We know that creativity is spurred when
    diverse ideas are united or when creative material in one domain inspires
    or forces fresh thinking in another. These structural preconditions suggest
    1 Our thanks go out to Duncan Watts; Huggy Rao; Peter Murmann; Ron Burt; Matt
    Bothner; Frank Dobbin; Bruce Kogut; Lee Fleming; David Stark; John Padgett; Dan
    Diermeier; Stuart Oken; Jerry Davis; Woody Powell; workshop participants at the
    University of Chicago, University of California at Los Angeles, Harvard, Cornell, New
    York University, the Northwestern University Institute for Complex Organizations
    (NICO); and the excellent AJS reviewers, especially the reviewer who provided a
    remarkable 15, single-spaced pages of superb commentary. We particularly wish to
    thank Mark Newman for his advice and help in developing and interpreting the
    bipartite-affiliation network statistics. We also wish to give very special thanks to the
    Santa Fe Institute for creating a rich collaborative environment wherein these ideas
    first emerged, and to John Padgett, the organizer of the States and Markets group at
    the Santa Fe Institute. Direct correspondence to Brian Uzzi, Kellog School of Man-
    agement, Northwestern University, Evanston, Illinois 60208. E-mail:
    [email protected]

    View Slide

  34. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Photo by Scott Blake on Unsplash
    What can we build?

    View Slide

  35. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Capital One – Credit Offers API serverless architecture
    Affiliates
    www.capitalone.com/
    credit-cards/prequalify
    AWS Cloud
    Capital One
    API Gateway
    VPC
    Lambda
    Function
    Traces Logs
    Production Support
    Command Center
    COAT
    Credit Offers API Team
    Lambda
    Function
    S3 Bucket
    TTL
    Third-Party
    API
    Case
    Study

    View Slide

  36. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Capital One – Credit Offers API CI/CD pipeline
    Continuous Improvement, Continuous Delivery!
    GitHub LGTM Bot Jenkins AWS SAM
    S3 Bucket
    (Versioning)
    Lambda
    Function
    DeploymentType:
    dev: AllAtOnce
    qa: AllAtOnce
    qaw: AllAtOnce
    prod: Canary10Percent10Minutes
    prodw: Canary10Percent10Minutes
    canary5xxGetProductsAlarm:
    Type: AWS::CloudFormation::Alarm
    Properties:
    AlarmActions:
    - !FindInMap:
    - params
    - AdminSNSTopic
    - !Ref Environment
    AlarmDescription: 500 error from product
    listing Lambda.
    ComparisonOperator:
    GreatherThanOrEqualTothreshold
    Period: 300
    Statistic: Sum
    Threshold: 1
    EvaluationPeriod: 1
    Case
    Study

    View Slide

  37. © 2019, Amazon Web Services, Inc. or its Affiliates.
    Capital One – Benefits from taking the API serverless
    Performance gains
    From the time the request
    is received by lambda to
    the time to send the
    response back
    70%
    Cost savings
    By removing EC2, ELB
    and RDS from our
    solution
    90%
    Increase in team velocity
    Reduce investment in team’s
    time on DevOps and dedicate
    back to feature development!
    30%
    Case
    Study

    View Slide

  38. SCALING CHALLENGES
    350
    DONATIONS PER SECOND
    Case
    Study

    View Slide

  39. OLD VS NEW
    March 2019 cost*
    $5,393
    March 2015 cost*
    $83,908
    *All hosting costs are paid for through corporate partnerships.
    100% of public donations go to the projects we fund.
    Case
    Study

    View Slide

  40. WE COULD DO
    IT ALL AGAIN TOMORROW
    Serverless services cost
    $92
    Case
    Study

    View Slide

  41. © 2019, Amazon Web Services, Inc. or its Affiliates.
    1. Write less code, be serverless
    2. Experiment, measure, learn
    3. Give teams ownership and autonomy
    4. Minimize communication paths
    5. Maximize different abilities
    6. Mix new and existing relationships

    View Slide

  42. © 2019, Amazon Web Services, Inc. or its Affiliates.
    © 2019, Amazon Web Services, Inc. or its Affiliates.
    Thank you!
    @danilop

    View Slide