Payhawk Becomes a Unicorn with Google Cloud-Powered Automated Financing Software - Build What's Next
Case Study

Payhawk Becomes a Unicorn with Google Cloud-Powered Automated Financing Software

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Payhawk, the provider of automated financing software, has reached unicorn status thanks to its integration with Google Cloud. The company's platform streamlines financial processes and offers businesses valuable insights into their finances.

For far too long, managing employee expenses has been a time-consuming process that requires manual data entry and reconciliation to bridge the gap between business bank accounts and ERP systems. In the absence of an integrated workflow, finance teams use multiple systems to manage credit card and cash payments, and finding receipts. In most cases, they also lack real-time visibility into company spending.

The complexity grows exponentially as businesses expand, especially into new regions. Extra administration required to manage new bank accounts, card issuers, and local accounting systems impedes decision making and negatively impacts revenues and growth. Businesses of all sizes struggle with this, but it can be especially challenging for medium to large enterprises.

Payhawk set out to help businesses overcome these challenges when we founded the company in 2018. We combine VISA company cards, reimbursable expenses, and accounts payable into a single product. Our customers can automate manual processes, maximize efficiency, and accelerate business expansion.

Payhawk founders Konstantin Dzhengozov, Boyko Karadzhov, and Hristo Borisov

Setting up our first cloud cluster in less than a week

To support growth and attract investment we were keen to launch our solution on a scalable, future-proof IT architecture that didn’t require extensive technical support. This is where Google Cloud made a big impression, especially the user interface and documentation which massively reduces the resources required to set up clusters and put them into production.

I’m a CTO, not a DevOps specialist, but in less than a week I was able to set up a secure, reliable operating infrastructure. This enabled us to fast-track our application development and we were able to issue our first card in just eight months. Our Google Cloud partner, Cloud Office also gave us valuable assistance, guiding us through the deployment process and advising on Google Cloud’s extensive range of solutions.

Google Kubernetes Engine (GKE) played a critical role, accelerating the deployment and management of our cloud native applications. We use Cloud SQL as our database while other important tools include Cloud Memorystore, Vision AI, Cloud Storage and Artifact Registry for our wider data storage and application needs. With Firebase we’ve been able to build a notification system for mobile devices.

Another incentive is that most other cloud solutions require add-on services to build and keep your product live. With Google Cloud, all the services that Payhawk needs including logging, metrics, monitoring of resources, and utilization of CPU memory come as standard.

For instance, I was really impressed by Google Cloud’s operations suite, which includes Cloud Logging and Cloud Monitoring. If there are any anomalies in our cloud architecture, we can track and resolve them with minimal disruption to our operations. This also removes the need to invest in an additional observability solution.

Reliability that builds customer trust

Google Cloud also supports Payhawk’s mission to put customers at the center of our organization. Thanks to Google Cloud error reporting and tracking and Google Cloud single sign on, Payhawk’s engineering team can anticipate customer issues and correct them in less than one hour. Trust is everything, and Google Cloud gives us the tools to boost customer satisfaction and build long-term relationships.

As a young business, managing costs is also a priority. The Google for Startups Cloud Program, which includes credits for Google software and tools, enabled us to push the business forward without having to worry about financing our infrastructure, especially in the first year. This gave us breathing room to work through funding, application development, and the onboarding of our first customers.

In addition, Google Cloud gives us confidence that we can grow the business fast. In most months we have seen more than 10% growth — in some cases it’s been 20%. In the first half of 2022, the business doubled in size, but Google Cloud gave us the flexibility to scale our infrastructure, adding storage, memory, and processing power as we onboarded new customers. The pricing model is also generous so that we can grow our revenues while keeping control of operational expenditure.

Since launch we have acquired a valuable mix of customers from startups to large businesses that want to reduce the costs of their expenses programs and increase employee satisfaction. They include ATU, a German automobile servicing company, which has successfully digitized its entire procurement process, and Discordia, a Bulgarian logistics business with 10,000 trucks, which has issued Payhawk cards to all its drivers.

Looking to the future, it’s no exaggeration to say that Google Cloud is a foundation of our business and has given investors confidence in our operations. From a first seeding round of €3 million, early this year we closed a Series B extension of $100 million. This gives us a valuation of $1bn and makes Payhawk the first ever Bulgarian unicorn.

We now operate in 32 countries in Europe and the US, and plan to double our team by the end of the year. It feels like we’ve come a long way since we first started using Google Cloud, and I’m thrilled that we have Google Cloud as a global technology partner supporting our mission to transform expense management and financial operations worldwide.

Payhawk team members

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.

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What Our Google Cloud Experts Say About Multi-cloud Journey

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Discussion on multi-cloud journey along with 4 experts at Google Cloud offers 5 important takeaways. If you are kickstarting your multi-cloud journey, here are some key considerations. Read now!

Do you want to fire up a bunch of techies? Talk about multicloud! There is no shortage of opinions. I figured we should tackle this hot topic head-on, so I recently talked to four smart folks—Corey Quinn of Duckbill Group, Armon Dadgar of Hashicorp, Tammy Bryant Butow of Gremlin, and James Watters of VMware—about what multicloud is all about, key considerations, and why you should (or shouldn’t!) do it.

Five important insights came out of these discussions. If you’re on a multicloud journey or considering one, keep reading.

Do: Choose to do multicloud for the right reasons

Don’t do multicloud because Gartner says so, implores Corey Quinn. Before embarking on a multicloud, define a “why” focused on business value journey, says Armon Dadger. For example, you might want to use services from each public cloud because of their differentiated services, according to Tammy Bryant Butow. Armon also calls out regulatory reasons, existing business relationships, and accommodating mergers and acquisitions. On the topic of M&A, Corey points out that if you acquire a company that uses another cloud, it’s usually expensive and difficult to consolidate. It can be smarter to stay put.

Don’t: Over-engineer for workload or data portability

Thinking that you’ll build a system that moves seamlessly among the various cloud providers? Hold up, says our group of experts. Armon points out that aspects of your toolchain or architecture may be multicloud—think of some of your workflows or global network routing—but that shifting workloads or data is far from simple. Corey says that trying to engineer for “write once, run anywhere” can slow you down, and ignores the inherent uniqueness that’s part of each platform. Specifically, Corey calls out the per-cloud stickiness of identity management, security features, and even network functionality. And data gravity is still a thing, says James, that causes some to dismiss multicloud outright.

If you’re using multiple public clouds, you take advantage of the distinct value each offers, Armon says. Use native cloud services where possible so that you see the benefits from useful innovations, built-in resilience, and baked-in best practices. The value from that cloud-infused workload may outweigh the benefits of seamless portability.

Do: Recognize different stakeholder interests and needs

James smartly points out that many multicloud debates happen because people are arguing from different perspectives. Context matters. If you’re an infrastructure engineer who invests heavily in a given cloud’s identity and access management model, multicloud looks tricky. Or if you’re a data engineer with petabytes of data homed in a particular cloud, multicloud may look unrealistic. James highlights that many developers default to multicloud because their local tools—where all the work happens—are multicloud. A developer’s IDE and preferred code framework(s) aren’t tied to any given cloud. Be aware that groups within your organization will come at multicloud from distinct directions. And this may impact your approach!

Don’t: Go it alone

Corey talks about the importance of asking others what worked, and what didn’t. Tammy offers her best practices around sharing results from experiments. It’s about sharing knowledge and tapping into it for community benefit. Others have probably tried what you’re trying, and can help you avoid common pitfalls. If you’ve just made an architectural choice that didn’t work out, share it, and help others avoid the pain. 

Read research from analysts, go to conferences or watch videos to observe case studies, and join online communities that offer a safe place to share mistakes and learn from others.

Do: Experiment first using techniques like multi-region deployments

If you think you can operate systems across clouds, how about you first try doing it across regions in a specific cloud, suggests Corey. Getting a system to properly work across cloud regions isn’t trivial, he says, and that experience can help you uncover where you have architectural or operational constraints that will be even worse across cloud providers.

This is great guidance if your multicloud aspirations involve using multiple clouds to power one application—versus the more standard definition of multicloud where you use different clouds for different applications—but can also surface issues in your support process or toolchain that fail when faced with distributed systems. Start with muti-region deployments and chaos engineering experiments before aggressively jumping into multicloud architectures.

The Google Cloud take

Do the things above. It’s great advice. I’ll add three more things that we’ve learned from our customers.

  1. Don’t fear multicloud. You’re already doing it. You don’t single-source everything. As Corey mentioned, you probably already have one cloud for productivity tools, another for source code, another for cloud infrastructure. You’ll use software and application services from a mix of providers for a single app. You have that experience in your team and have been doing that for decades. What people do rightly worry about is using more than one infrastructure service beneath an application, as that can introduce latency, security, and logistical hurdles. Make sure you know which model your team is considering.
  2. Embrace the right foundational components, including Kubernetes. Will everything run on Kubernetes? Of course not. Don’t try to do that. But it also represents the closest thing we have to a multicloud API. Companies are using Kubernetes to stripe a consistent experience across clouds. And this isn’t just to orchestrate containers, but also to manage infrastructure and cloud-native services. Also, consider where you need other fundamental consistency across clouds, including areas like provisioning and identity federation.
  3. Use Google Cloud as your anchor. Here’s a fundamental question you have to decide for yourself: Are you going to bring your on-premises technology and practices to the cloud, or bring cloud technology and practices on-prem? We sincerely believe in the latter. Anchor to where you’re trying to get to. We offer Anthos as a way to build and run distributed Kubernetes fleets in Google Cloud and across clouds. By using a cloud-based backplane instead of an on-prem one, you’re offloading toil, leveraging managed services for scale and security, and introducing modern practices to the rest of your team.

We learned a lot about multicloud through these discussions, and it seems like others did too. That’s why we’re going to do a second round of interviews with a new crop of experts so that we can keep digging deeper into this topic. Stay tuned!

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Case Study

Target Leverages Google Cloud to Create Market-defining Online Experience

In the hyper-competitive world of online retail sales, ease-of-use and transaction speed can make or break business outcomes. However, a few years ago US Retail giant Target was going through a period of uncertainty.

While the company had over 1800 stores across the US with an estimated 85% of US consumers shopping at a Target store and over 25 million people visiting the Target website or using its app each month, it was still losing ground.

In spite of having millions of loyal customers, the company was dangerously late on digital and its technology wasn’t keeping pace with unstable systems to boot. The company faced the twin challenges of trying to operate today’s business as efficiently as possible and creating tomorrow’s business as quickly as possible. On the one hand it needed productivity and stability and on the other it wanted speed and disruption. Not an easy task to accomplish.

That’s when Target decided to use Google Cloud to solve its challenges. See how Target leveraged Google Cloud to create a market-defining online experience that has made customers happier and more loyal.

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Highmark & Google’s Secure-by-design Technique to Bring the Living Health Solution to Life

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U.S. prominent health and wellness firm, Highmark uses Google Cloud and Google Cloud Professional Services Organization to build an innovative platform that delivers a unique experience for customers across billing and insurance. Read more!

In an industry as highly regulated as healthcare, building a single secure and compliant application that tracks patient care and appointments at a clinic requires a great deal of planning from development and security teams. So, imagine what it would be like to build a solution that includes almost everything related to a patient’s healthcare, including insurance and billing. That’s what Highmark Health (Highmark)—a U.S. health and wellness organization that provides millions of customers with health insurance plans, a physician and hospital network, and a diverse portfolio of businesses–decided to do. 

Highmark is developing a solution called Living Health to re-imagine healthcare delivery, and it is using Google Cloud and the Google Cloud Professional Services Organization (PSO) to build and maintain the innovation platform supporting this forward thinking experience. Considering all the personal information that different parties like insurers, specialists, billers and coders, clinics, and hospitals share, Highmark must build security and compliance into every part of the solution. 

In this blog, we look at how Highmark Health and Google are using a technique called “secure-by-design” to address the security, privacy, and compliance aspects of bringing Living Health to life.

Secure-by-design: Preventive care for development

In healthcare, preventing an illness or condition is the ideal outcome. Preventive care often involves early intervention—a course of ideas and actions to ward off illness, permanent injury, and so on. Interestingly, when developing a groundbreaking delivery model like Living Health, it’s a good idea to take the same approach to security, privacy, and compliance. 

That’s why Highmark’s security and technology teams worked with their Google Cloud PSO team to implement secure-by-design for every step of design, development, and operations. Security is built into the entire development process rather than waiting until after implementation to reactively secure the platform or remediate security gaps. 

It’s analogous to choosing the right brakes for a car before it rolls off the assembly line instead of having an inspector shut down production because the car failed its safety tests. The key aspect of secure-by-design is an underlying application architecture created from foundational building blocks that sit on top of a secure cloud infrastructure. Secure-by-design works to ensure that these building blocks are secure and compliant before moving on to development.

The entire approach requires security, development, and cloud teams to work together with other stakeholders. Most importantly, it requires a cloud partner, cloud services, and a cloud infrastructure that can support it. 

Finding the right cloud and services for secure-by-design 

Highmark chose Google Cloud because of its leadership in analytics, infrastructure services, and platform as a service. In addition, Google Cloud has made strategic investments in healthcare interoperability and innovation, which was another key reason Highmark decided to work with Google. As a result, Highmark felt that Google Cloud and the Google Cloud PSO were best suited for delivering on the vision of Living Health—its security and its outcomes. 

“Google takes security more seriously than the other providers we considered, which is very important to an organization like us. Cloud applications and infrastructure for healthcare must be secure and compliant,” explains Highmark Vice President and Chief Information Security Officer, Omar Khawaja. 

Forming a foundation for security and compliance

How does security-by-design with services work? It starts with the creation and securing of the foundational platform, allowing teams to harden and enforce specified security controls. It’s a collaborative process that starts with input from cross-functional teams—not just technology teams—using terms they understand, so that everyone has a stake in the design. 

A strong data governance and protection program classifies and segments workloads based on risk and sensitivity. Teams build multiple layers of defense into the foundational layers to mitigate against key industry risks. Google managed services such as VPC Service Controls help prevent unauthorized access. Automated controls such as those in Data Loss Prevention help teams quickly classify data and identify and respond to potential sources of data risk. Automation capabilities help ensure that security policies are enforced.

After the foundational work is done, it’s time to assess and apply security controls to the different building blocks, which are Google Cloud services such as Google Kubernetes EngineGoogle Compute Engine, and Google Cloud Storage. The goal is to make sure that these and similar building blocks, or any combination of them, do not introduce additional risks and to ensure any identified risks are remediated or mitigated. 

Enabling use cases, step by step

After the foundational security is established, the security-by-design program enables the Google Cloud services that developers then use to build use cases that form Living Health. The service enablement approach allows Highmark to address complexity by providing the controls most relevant for each individual service. 

For each service, the teams begin by determining the risks and the controls that can reduce them. The next step is enforcing preventive and detective controls across various tools. After validation, technical teams can be granted an authorization to operate, also called an ATO. An ATO authorizes the service for development in a use case.

For use cases with greater data sensitivity, the Highmark teams validate the recommended security controls with an external trust assessor, who uses the HITRUST Common Security Framework, which maps to certifications and compliance such as HIPAANISTGDPR, and more. A certification process follows that can take anywhere from a few weeks to a few months. In addition to certification, there is ongoing monitoring of the environment for events, behavior, control effectiveness, and control lapses or any deviation from the controls.

The approach simplifies compliance for developers by abstracting compliance requirements away. The process provides developers a set of security requirements written in the language of the cloud, rather than in the language of compliance, providing more prescriptive guidance as they build solutions. Through the secure-by-design program, the Highmark technology and security teams, Google, the business, and the third-party trust assessor all contribute to a secure foundation for any architectural design with enabled Google Cloud services as building blocks. 

Beating the learning curve 

Thanks to the Living Health project, the Highmark technology and security teams are trying new methods. They are exploring new tools for building secure applications in the cloud. They are paying close attention to processes and the use case steps and, when necessary, aligning different teams to execute. Because everyone is working together collaboratively toward a shared goal, teams are delivering more things on time and with predictability, which has reduced volatility and surprises. 

The secrets to success: Bringing everyone to the table early and with humility

Together, Highmark and Google Cloud PSO have created over 24 secure-by-design building blocks by bringing everyone to the table early and relying on thoughtful, honest communication. Input for the architecture design produced for Highmark came from privacy teams, legal teams, security teams, and the teams that are building the applications. And that degree of collaboration ultimately leads to a much better product because everyone has a shared sense of responsibility and ownership of what was built. 

Delivering a highly complex solution like Living Health takes significant, more purposeful communication and execution. It is also important to be honest and humble. The security, technology, and Google teams have learned to admit when something isn’t working and to ask for help or ideas for a solution. The teams are also able to accept that they don’t have all the answers, and that they need to figure out solutions by experimenting. Khawaja puts it simply, “That level of humility has been really important and enabled us to have the successes that we’ve had. And hopefully that’ll be something that we continue to retain in our DNA.”

Case Study

ATB Financial Focuses on Customer Experience with the Speed it Gains in the Cloud

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As senior vice president and head of technology enablement for ATB Financial, Barry Hensch has a mission: creating a seamless experience for the Alberta, Canada-based bank’s nearly 800,000 customers by leveraging the latest digital technology. ATB is a purpose-driven financial institution owned and operated by Alberta’s provincial government, with about C$55.1 billion in assets under management between its banking and wealth-management arms. The full-service bank also boasts a large market share of small businesses in the province.

As part of ATB’s drive to meet its customers’ ever growing expectations, Hensch has embarked on an ambitious digital transformation strategy, migrating the bank’s vast SAP infrastructure onto Google Cloud. The move takes hardware capacity and maintenance concerns entirely off his plate so he and his team can pursue innovations that bring true value to the customer.

Hensch recently discussed ATB’s cloud journey, the new capabilities the cloud has opened up for ATB, and where the company plans to go using Google Cloud’s artificial intelligence and machine learning capabilities.

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Explore Google Cloud SQL’s 3 Fault Tolerance Mechanism to Ease Data Pro

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Grow your organization's fault tolerance with Cloud SQL's three fault tolerance mechanism, and ensure data protection as well as recovery human errors, primary instance failures and zonal outages, and regional outages.

If you’re managing a crucial application that has to be fully fault-tolerant, you need your system to be able to handle every fault, no matter the type and scope of failure, with minimal downtime and data loss. Protecting against these faults means juggling numerous variables that can impact performance as well as recovery time and cost.

Today’s managed database services take over the operational complexity that used to exist for database administrators. Growing your organization’s tolerance required adding machines, compute, and storage, plus the operational costs of IT management: performing backups, writing scripts, creating dashboards, and carrying out testing to make sure your platform is ready when problems arise–all in a secure way.

At Google, our Cloud SQL managed database service offers three fault tolerance mechanisms —backup, high availability, and replication—and there are three major factors to consider for each of them:

  • RTO (recovery time objective): When a failure happens, how much time can be lost before significant harm occurs?
  • RPO (recovery point objective): When a failure happens, how much data can be lost before significant harm occurs?
  • Cost: How cost-effective is this solution?  

We’ve heard from customers like Major League BaseballHSBC, and Equifax that they have strict data-protection needs and require highly fault-tolerant multi-region applications—and they’ve all chosen Cloud SQL to meet those needs. 

Let’s take a closer look at how the decision-making process plays out for each recovery solution.  

High availability (HA)

If your application is business critical, you require minimum RTO and zero RPO— a high availability configuration ensures that you and your customers are protected. If the primary instance fails, there’s another standby instance ready to take over with no data loss. There’s an additional cost here, but doing this manually brings a great operational cost, since you have to detect and verify the fault, do the failover, and make sure it’s correct—you can’t have two primary instances or you risk data corruption—then finally connect the application to the new database.

Cloud SQL removes all that complexity. Choose high availability for a given instance and we’ll replicate the data across multiple zones, synchronously, to each zone’s persistent disk. If an HA instance has a failure, you don’t have to think about when to fail over because Cloud SQL detects the failure and automatically initiates failover, for a full recovery and no data loss within minutes. Cloud SQL also moves the IP address during failover so your application can easily reconnect. MLB, for example, uses Cloud SQL high availability to serve prediction data to live games with minimal downtime. Dev/test instances don’t need those same guarantees, but can use local backups to recover from any potential failure.

Cross-region replica

If a whole Google Cloud region goes down you still need your business to continue to run. That’s where cross-region replication comes in, a hot standby replica in another Google Cloud region provides RTO of minutes and RPO typically less than a minute . If you create a read replica in a region separate from your primary instance and you get hit with a regional outage, your application and database can start serving customers from another region within minutes. But this solution can be complex and enabling it yourself can be difficult and time-consuming. Securing cross-geography traffic demands end-to-end encryption and can bring connectivity issues too. 

This is where the fully managed Cloud SQL solution shines. We offer MySQL, PostgreSQL and SQL Server database engines as a cross-region replication solution that’s easily configured and bolstered by Google’s interconnected global network. Just say, “I’m in U.S. East, I want to create a replica in U.S. West,” and it’s done, reliably and securely.

create read replica.jpg

Backup

When you suffer data loss because of an operations error (for example, a bug in a script dropped your tables) or human error (for example, someone dropped the wrong table by accident), backups help you restore lost data to your Cloud SQL instance. Our low cost backup mechanism features point-in-time, granular recovery, meaning that if you accidentally delete data or something else goes wrong, you can ask for recovery of, for example, the state of that database down to the millisecond, such as Monday at 12:53pm. Your valuable data is replicated multiple times in multiple geographic locations automatically. This enables the automatic handling of failover in cases of major failure. You can always rest assured that your database is available and data is secure, even in the times of major failure crises. 

Cloud SQL provides automated and on-demand backups. With automated backups, Google manages the backups so that you can easily restore them when required. Also, the scheduled backing is automatically taken by default. With on-demand backup, you can create a backup at any time. This could be useful if you are about to perform a risky operation on your database, as Cloud SQL lets you select a custom location for your backup data. When the backup is stored in multiple regions, and there’s an outage in the region that contains the source instance, you can restore a backup to a new or existing instance in a different region. This is also useful if your organization needs to comply with data residency regulations that require you to keep your backups within a specific geographic boundary.

cloud sql backups.jpg

Putting it all together

For critical workloads, MLB configures their Cloud SQL instances with backups, high availability, and cross-region replication. Doing so ensures they can recover from many failure types.

  • To recover from human error (“Oops, I didn’t mean to delete that”), MLB uses backups and point-in-time recovery to recovery to a millisecond or specific database transaction
  • To automatically recover from primary instance failures and zonal outages, MLB uses Cloud SQL’s high availability configuration
  • To protect against regional outages, MLB uses cross-region replication

Creating a robust configuration, like MLB did, takes just a few minutes. Get started in our Console or review documentation.

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