Building an Elastic, Resilient Data Layer for Retail Industry YugabyteDB and Retail

Yugabyte Speakers Amey Banarse VP, Global Field Engineering Michael Haag Director, Product Marketing ©2022 Yugabyte. All Rights Reserved. 2

State of Retail Industry Constant Change Major impacts of 2020 Global Competition Cross-category comparisons Data First Mentality Data = Differentiation ©2022 Yugabyte. All Rights Reserved. 3

4 Retail Industry Priorities #1: Enhance Experiences #2: Increase Efficiency #3: Build Trust & Availability #4: Embrace Modernization ©2023 Yugabyte. All Rights Reserved. 4

USING A MODERN DATA LAYER TO... Enhance Experiences

Yugabyte © 2022 – All Rights Reserved 6 Deploying a new data layer was key to Kroger’s strategy “Lead with fresh, accelerate with digital” Implemented YugabyteDB to help… ● Modernize aging tech for microservices ● Enhance omnichannel services ● Seamlessly handle seasonal spikes ● Avoid lock-in with a multi-cloud strategy ● Develop resiliency to protect business

© 2021 All Rights Reserved Why YugabyteDB? ● Distributed ACID transactions, scalability ● Geo-distributed deployment for resilience ● Multi-API support - YSQL, YCQL ● Automatic data sharding ● Open source ● Automation of Day 2 Ops with Yugabyte Platform “Microservices and SOA is at the heart of our digital transformation efforts. Yugabyte makes it possible for Kroger to fully embrace cloud native.” Mahesh Tyagarajan, VP Engineering Use Cases ● System of record for Shopping List service (live in 2020) ● System of record for Shopping Cart service (live in 2021) ● Next workloads: ○ Enterprise Customer 360 ○ Inventory -- high throughput needs ○ Offers ○ Purchase History -- high data density per node ○ Dozens more in 2021 Systems of Record and Engagement 7

Yugabyte © 2022 – All Rights Reserved Enhancing Worker Experience is Equally Important https://www.yugabyte.com/catalysts-of-change-retail-fireside-chat-on-demand/ “Retail companies need to become as good at software as they are at running a retail business. … The software must meet the needs of two very large populations: the end customer themselves and the frontline associate. It does that differently than 10-15 years ago.” — Paul Gaffney, CTO of Kohl’s

USING A MODERN DATA LAYER TO... Increase Efficiency

Yugabyte © 2022 – All Rights Reserved Why YugabyteDB? ● 4x lower TCO than Amazon managed database solutions ● Open source ● Cloud-agnostic, geo-distributed ● Managed Service Available ● Handled Black Friday and Cyber Monday peaks ● Easy to scale ● Multiple APIs Use Cases ● Cloud native app to deliver personalized, white-label experiences before and after a purchase ● Unify various customer data systems in retail to provide personalized customer experiences ● Powering 800+ Retailers & Brands (Levi’s, Nike, Uniqlo, Walmart) ● 125M+ unique users, 6+ billion data ops per day, Black Friday Cyber Monday 8x regular volume Systems of Record and Engagement “Partnering with Yugabyte helps us focus on our customers instead of worrying if our systems can keep pace with our rapidly growing business.” Ram Ravichandran, CTO and co-founder 10

Yugabyte © 2022 – All Rights Reserved ● Product Catalog Matching ○ Azure, 3-region, 24 nodes ○ Consolidate items under a unique product ID ● Alternate Key / Primary (AKPK) Mapping ○ Azure, 3-region, 18 nodes ○ Lookup products by identifiers ○ 250K txns/sec reads at very low-latency ○ Using read-from-followers, plan to add read-replicas ● Item Grouping - Next Use Case ○ Group items to increase discoverability ○ Maximize retail margin/volume ○ Incentivize buying group of items Top 5 Global Retailer ● 2 microservices live as of Aug 2020 ● 42 total nodes in Azure ● 250K txns / sec in one use case ● Black Friday, Cyber Monday peaks ● $10MM lost revenue recovered

USING A MODERN DATA LAYER TO... Build Trust & Availability

Yugabyte © 2022 – All Rights Reserved 20% Trust Impacts the Bottomline. Digitally trustworthy companies generate 20% more profits online than untrusted sites

© 2021 All Rights Reserved Deployment: 27 Nodes across 3 Azure Regions: US-East, US-West Seattle and US-South Texas Each Node- Cores: 16 Memory: 128 GB Disk: 2 x 1 TB ● Strong Consistency between all the Regions ● No Data loss, RPO = 0 , RTO ~ 3 secs ● System of Record for Product Catalog of 100+ million items with Billions of mappings, serving over 250K ops/sec ● Handled Black Friday and Cyber Monday peaks US-East US-West US-South-Texas Global Retailer’s Multi-Region Deployment Shrugs Off Major Storm

© 2021 All Rights Reserved Deployment: 27 Nodes across 3 Azure Regions: US-East, US-West Seattle and US-South Texas Each Node- Cores: 16 Memory: 128 GB Disk: 2 x 1 TB ● Strong Consistency between all the Regions ● No Data loss, RPO = 0 , RTO ~ 3 secs ● System of Record for Product Catalog of 100+ million items with Billions of mappings, serving over 250K ops/sec ● Handled Black Friday and Cyber Monday peaks US-East US-West US-South-Texas ● Service remained resilient and available through Texas cloud / power outage Global Retailer’s Multi-Region Deployment Shrugs Off Major Storm

© 2020 All Rights Reserved YugabyteDB Security Features 16 YugabyteDB offers built-in security controls and enterprise-grade features to integrate with your existing protocols and compliance standards. ○ Encryption at Rest including Column Level Encryption ○ Encryption in Transit (SSL/TLS) (FIPS-140) ○ Row Level Security (RLS) ○ Custom Port Controls ○ Network Security (Access restriction) ○ Audit Logging Controls ○ Session Audit Logging ○ Object Audit Logging ○ Access Authorization (Role Based Access Controls) ○ Periodic/Ongoing Security Validation Checks

USING A MODERN DATA LAYER TO... Embrace Modernization

© 2021 All Rights Reserved ● Minimal application changes ● Minimal schema changes ● Leverages Postgres compatibility of YSQL and a variety of schema migration tools ● Schema and query optimization takes advantage of distributed YugabyteDB features ● Utilizes YB unique resilience, geo-distribution and scaling features ● Data Migration via YB Snapshot & Live User Interface All Big Apps Order mgmt Billing Delivery Loyalty ….. Monolithic DB 100’s of tables Complex relationships Embrace Modernization User Interface Many MicroServices Order api Bills api Delivery api Loyalty api …. Yugabyte DB Minimal Schema changes Optimized for YB Data Layer: Postgres Compatible, Cloud Native, Highly Resilient, Scalable, Geo-Distributed App Layers: DB scaling for apps can be solved, Apps can be made HA

YUGABYTEDB & RETAIL Next-Gen Point of Sale Demo

© 2022 - All Rights Reserved The Experiences We’ll Focus On First 20 Products Service POS:Cart Service POS:Checkout Service API Gateway Orders Products Broadcast price from cloud to stores One-to-many replication Order aggregation from stores to cloud Many-to-one replication Microservices . . .

© 2022 - All Rights Reserved Retail App Topology 21 Cloud Hub Retail Store Online Store Cloud eCommerce App YugabyteDB Managed on AWS Located far from cloud regions Google Anthos(k8s) cluster in store Located near a Google cloud regions YugabyteDB Managed on GCP

© 2022 - All Rights Reserved Broadcast Price Changes to All Stores Instantly 22 Cloud Hub Retail Store Online Store Price Markdown: $158.74 → $100.00 $158.74 → $100.00 $158.74 → $100.00

© 2022 - All Rights Reserved Order History from multiple locations 23 Cloud Hub Retail Store Online Store Order A successful Order B successful Orders to ship Inventory Order A 254 Order B 253

Yugabyte © 2022 – All Rights Reserved Our Mission: Eliminate your data layer tradeoffs Relational Consistency Familiarity Security Non-Relational Resilience Scalability Geo-Distribution Future-Proof Open Source Multi-Cloud Hybrid Combines best of all worlds with 100% open source distributed SQL database for any cloud 24

Yugabyte © 2022 – All Rights Reserved Webinar Outline o Quick State of Retail Industry ○ lots changed, competitive, data key o What are Priorities for Retail Executives ○ Enhance experiences, increase profitability, improve flexibility, and build trust o Experiences: What role does data play in helping Experiences? ○ Accelerate new services; help customers and workers (2 key experiences) o Profitability: How can data help retailers boost profits? ○ Accurate data/inventory reflected to user o Flexibility: How is a modern data layer helping increase flexibility? ○ Multi-cloud; global distribution o Trust: Importance of trust/security in retail? ○ TRUST: Trusted retailers earn X% more ○ AVAILABILITY: another aspect of trust is availability/reliability o Demo o Conclusion / Closing Thoughts

Yugabyte © 2022 – All Rights Reserved 26 Thank You Join our community yugabyte.com/slack Try for yourself cloud.yugabyte.com