AI researchers and engineers need better data to enable better AI solutions. The quality of an AI solution is determined by both the learning algorithm (such as a deep-neural network model) and the datasets used to train and evaluate that algorithm. Historically, AI research has focused much more on algorithms than datasets, despite their vital importance. As a result, many algorithms are freely available as starting points, but many important problems lack large, high-quality open datasets. Further, creating new datasets is expensive and error-prone.

Recently, the data-centric AI movement has emerged, which aims to develop new methodologies and tools for constructing better datasets to fix this problem. Conferences, workshops,  challenges, and platforms are being launched to support improving data quality and to foster data excellence. Thought leaders such as Andrew Ng at Landing.AI and Chris Re at Stanford University are encouraging AI developers to focus more on iterative data engineering than they do tuning their learning algorithms. Our CHI-best-paper-award-winning paper, “Everyone wants to do the model work, not the data work” highlighted the significance of data quality in the practice of ML. 

At Google, we are excited to contribute to data-centric AI. Today, Google Cloud is adding a new high value dataset to the Public Dataset Program, and Google researchers are announcing DataPerf, a new multi-organizational effort to develop benchmarks for data quality and data centric algorithms.

Google Cloud is committed to helping users improve their data quality, starting with supporting better public data. The Public Datasets program provides high quality datasets pre-configured on GCP for easy access. Google Cloud is adding a new high-value dataset developed by the MLCommons™ Association (which Google co-founded) to the Public Datasets program: The Multilingual Spoken Words Corpus: a rich audio speech dataset with more than 340,000 keywords in 50 languages with upwards of 23.4 million examples.

This new public dataset is aligned with the MLCommons Association vision for “open” datasets – accessible by all – that are “living” – continually being improved to raise quality and increase representation and diversity.

Google researchers, in collaboration with multiple organizations, are announcing the DataPerf effort at the NeurIPS Data-Centric AI workshop today, to develop benchmarks to improve data quality. Much like the the MLPerf™ benchmarking effort which is now the industry standard for machine learning hardware/software speed, DataPerf brings together the originators of prior efforts including: CATS4ML, Data-Centric AI Competition, DCBench, Dynabench, and the MLPerf benchmarks to define clear metrics that catalyze rapid innovation. DataPerf will measure the utility of training and test data for common problems, and algorithms for working with datasets such as: selecting core sets, correcting errors, identifying under-optimized data slices, and valuing datasets prior to labeling.

Together, supporting open, living datasets for core ML tasks, and the development of benchmarks to direct the rapid evolution of those datasets will empower the researchers and engineers who use Google Cloud to do even more amazing things – and we can’t wait to see what they create!

Acknowledgements: In collaboration with Lora Aroyo and Praveen Paritosh.

When you build a data warehouse, the important question is how to ingest data from the source system to the data warehouse. If the table is small you can fully reload a table on a regular basis, however, if the table is large a common technique is to perform incremental table updates. This post demonstrates how you can enhance incremental pipeline performance when you ingest data into BigQuery.

Setting up a standard incremental data ingestion pipeline

We will use the below example to illustrate a common ingestion pipeline that incrementally updates a data warehouse table. Let’s say that you ingest data into BigQuery from a large and frequently updated table in the source system, and you have Staging and Reporting areas (datasets) in BigQuery.

The Reporting area in BigQuery stores the most recent, full data that has been ingested from the source system tables. Usually you create the base table as a full snapshot of the source system table. In our running example, we use BigQuery public data as the source system and create reporting.base_table as shown below. In our example each row is identified by a unique key which consists of two columns: block_hash and log_index.

  CREATE TABLE reporting.base_table  --156 GB processed
PARTITION BY TIMESTAMP_TRUNC(block_timestamp, DAY) AS
SELECT log_index, data, topics, block_timestamp, block_hash
FROM bigquery-public-data.crypto_ethereum.logs
WHERE block_timestamp BETWEEN TIMESTAMP '2020-01-01' AND TIMESTAMP '2020-11-30';

In data warehouses it is common to partition a large base table by a datetime column that has a business meaning. For example, it may be a transaction timestamp, or datetime when some business event happened, etc. The idea is that data analysts who use the data warehouse usually need to analyze only some range of dates and rarely need the full data. In our example, we partition the base table by block_timestamp which comes from the source system.

After ingesting the initial snapshot you need to capture changes that happen in the source system table and update the reporting base table accordingly. This is when the Staging area comes into the picture. The staging table will contain captured data changes that you will merge into the base table. Let’s say that in our source system on a regular basis we have a set of new rows and also some updated records. In our example we mock the staging data as follows: first, we create new data, than we mock the updated records:

  CREATE TABLE staging.load_delta AS --5 GB processed
SELECT log_index, data, topics, block_timestamp, block_hash
FROM bigquery-public-data.crypto_ethereum.logs
WHERE block_timestamp BETWEEN TIMESTAMP '2020-12-01' AND TIMESTAMP '2020-12-07';
 
INSERT INTO staging.load_delta --2 GB processed
SELECT log_index, CONCAT(data, RAND()), topics, block_timestamp, block_hash
FROM bigquery-public-data.crypto_ethereum.logs TABLESAMPLE SYSTEM (5 PERCENT)
WHERE block_timestamp BETWEEN TIMESTAMP '2020-10-01' AND TIMESTAMP '2020-11-30';

Next, the pipeline merges the staging data into the base table. It joins two tables by unique key and than updates the changed value or inserts a new row

  MERGE INTO reporting.base_table T --161 GB processed
USING staging.load_delta S
ON T.block_hash = S.block_hash
 AND T.log_index = S.log_index
WHEN MATCHED THEN UPDATE SET 
  T.data = S.data
WHEN NOT MATCHED THEN INSERT (log_index, data, topics, block_timestamp, block_hash)
VALUES (log_index, data, topics, block_timestamp, block_hash);

It is often the case that the staging table contains keys from various partitions but the number of those partitions are relatively small. It holds, for instance, because in the source system the recently added data may get changed due to some initial errors or ongoing processes but older records are rarely updated. However, when the above MERGE gets executed, BigQuery scans all partitions in the base table and processes 161 GB of data. You might add additional join condition on block_timestamp:

  MERGE INTO reporting.base_table T --161 GB processed
USING staging.load_delta S
ON T.block_hash = S.block_hash
 AND T.log_index = S.log_index
 AND T.block_timestamp = S.block_timestamp
WHEN MATCHED THEN UPDATE SET 
  T.data = S.data
WHEN NOT MATCHED THEN INSERT (log_index, data, topics, block_timestamp, block_hash)
VALUES (log_index, data, topics, block_timestamp, block_hash);

But BigQuery would still scan all partitions in the base table because condition T.block_timestamp = S.block_timestamp is a dynamic predicate and BigQuery doesn’t automatically push such predicates down from one table to another in MERGE.

Can you improve the MERGE efficiency by making it scan less data? The answer is Yes. 

As described in the MERGE documentation, pruning conditions may be located in a subquery filter, a merge_condition filter, or a search_condition filter. In this post we show how you can leverage the first two. The main idea is to turn a dynamic predicate into a static predicate.

Steps to enhance your ingestion pipeline

The initial step is to compute the range of partitions that will be updated during the MERGE and store it in a variable. As was mentioned above, in data ingestion pipelines, staging tables are usually small so the cost of the computation is relatively low.

  DECLARE src_range STRUCT<date_min TIMESTAMP, date_max TIMESTAMP> --115 MB processed
DEFAULT(SELECT STRUCT(
  MIN(block_timestamp) AS date_min,  
  MAX(block_timestamp) AS date_max) FROM staging.load_delta);

Based on your existing ETL/ELT pipeline, you can add the above code as-is to your pipeline or you can compute date_min, data_max as part of some already existing transformation step. Alternatively, date_min, data_max can be computed on the Source System side while capturing the next ingestion data batch.

After computing date_min, date_max you pass those values to the MERGE statement as static predicates. There are several ways to enhance the MERGE and prune partitions in the base table based on precomputed date_min, data_max. 

If your initial MERGE statement uses a subquery, you can incorporate a new filter into it:

  BEGIN 
DECLARE src_range STRUCT<date_min TIMESTAMP, date_max TIMESTAMP> --115 MB processed
DEFAULT(SELECT STRUCT(
  MIN(block_timestamp) AS date_min,  
  MAX(block_timestamp) AS date_max) FROM staging.load_delta);

MERGE INTO reporting.base_table T --41 GB processed
USING (
  SELECT *
  FROM staging.load_delta
  WHERE block_timestamp BETWEEN src_range.date_min AND src_range.date_max) S 
ON T.block_hash = S.block_hash
 AND T.log_index = S.log_index
 AND T.block_timestamp = S.block_timestamp
WHEN MATCHED THEN UPDATE SET 
  T.data = S.data
WHEN NOT MATCHED THEN INSERT (log_index, data, topics, block_timestamp, block_hash)
VALUES (log_index, data, topics, block_timestamp, block_hash);
END;

Note that you add the static filter to the staging table and keep T.block_timestamp = S.block_timestamp to convey to BigQuery that it can push that filter to the base table. This MERGE processes 41 GB of data in contrast to the initial 161 GB. You can see in the query plan that BigQuery pushes the partition filter from the staging table to the base table:

This type of optimization, when a pruning condition is pushed from a subquery to a large partitioned or clustered table, is not unique for MERGE. It also works for other types of queries. For instance:

  SELECT * -- 41 GB processed
FROM reporting.base_table T
INNER JOIN staging.load_delta S
ON T.block_hash = S.block_hash
 AND T.log_index = S.log_index
 AND T.block_timestamp = S.block_timestamp
WHERE S.block_timestamp BETWEEN TIMESTAMP '2020-10-05' AND TIMESTAMP '2020-12-07'

And you can check the query plan to verify that BigQuery pushed down the partition filter from one table to another.

Moreover, for SELECT statements, BigQuery can automatically infer a filter predicate on a join column and push it down from one table to another if your query meets the following criteria:

• The target table must be clustered or partitioned. 
• The result size of the other table, i.e. after applying all filters, must qualify for broadcast join. Namly, the result set must be relatively small, less than ~100MB.

In our running example, reporting.base_table is partitioned by block_timestamp. If you define a selective filter on staging.load_delta and join two tables, you can see an inferred filter on the join key pushed to the target table

  SELECT * 
FROM reporting.base_table T
INNER JOIN staging.load_delta S
ON T.block_timestamp = S.block_timestamp
WHERE S.block_hash = '0x0c1caa16b34d94843aabfebc0d5a961db358135988f7498a6fdc450ad55f0870'

There is no requirement to join tables by partitioning or clustering key to kick off this type of optimization. However, in this case the pruning effect on the target table would be less significant.

But let us get back to the pipeline optimizations. Another way to enhance MERGE is to modify the merge_condition filter by adding static predicate on the base table:

  BEGIN 
DECLARE src_range STRUCT<date_min TIMESTAMP, date_max TIMESTAMP> --115 MB processed
DEFAULT(SELECT STRUCT(
  MIN(block_timestamp) AS date_min,  
  MAX(block_timestamp) AS date_max) FROM staging.load_delta);

MERGE INTO reporting.base_table T --41 GB processed
USING staging.load_delta S
ON T.block_hash = S.block_hash
 AND T.log_index = S.log_index
 AND T.block_timestamp BETWEEN src_range.date_min AND src_range.date_max
WHEN MATCHED THEN UPDATE SET 
  T.data = S.data
WHEN NOT MATCHED THEN INSERT (log_index, data, topics, block_timestamp, block_hash)
VALUES (log_index, data, topics, block_timestamp, block_hash);
END;

To summarize, here are the steps that you can perform to enhance incremental ingestion pipelines in BigQuery. First you compute the range of updated partitions based on the small staging table. Next, you tweak the MERGE statement a bit to let BigQuery know to prune data in the base table.

All the enhanced MERGE statements scanned 41 GB of data, and setting up the src_range variable took 115 MB.  Compare it with the initial 161 GB scan. Moreover, given that computing src_range may be incorporated into some existing transformation in your ETL/ELT, it results in a good performance improvement which you can leverage in your pipelines. 

In this post we described how to enhance data ingestion pipelines by turning dynamic filter predicates into static predicates and letting BiQuery prune data for us. You can find more tips on BigQuery DML tuning here.

Special thanks to Daniel De Leo, who helped with examples and provided valuable feedback on this content.

When you choose to run your business on Google Cloud you benefit from the same planet-scale infrastructure that powers Google’s products such as Maps, YouTube, and Workspace. 

We have picked 10 ways in which Google Cloud Infrastructure services outshine alternatives in the market in how they simplify your operations, save money, and secure your data. 

1. Custom Machine Types means no wasted resources

Compute Engine offers predefined machine types that you can use when you create a VM instance. A predefined machine type has a preset number of vCPUs and a preset amount of memory; each type is billed at a set price as described on the Compute Engine pricing page. 

If predefined machine types don’t meet your needs, you can create a VM instance with a custom number of vCPUs and custom amount of memory, effectively building a custom machine type. Custom machine types are available only for general-purpose machine families. When you create a custom machine type, you are deploying a custom machine type from the E2, N2, N2D, or N1 machine family on GCP.  No other leading cloud vendor offers custom machine types so extensively.

Custom machine types are a good idea for workloads that aren’t a good fit for the predefined machine types and for workloads that require more processing power or memory but don’t need all of the upgrades provided by the next machine type level. This translates into lower operating costs.   They are also useful for controlling software licensing costs that are based on the number of underlying compute cores. 

Jeremy Lloyd, Infrastructure and Application Modernization Lead at Appsbroker, a Google partner: 

“Custom machine types coupled with Google’s StratoZone data center discovery tool provides Appsbroker with the flexibility we need to provide cost efficient virtual machines matched to a virtual machine’s actual utilization. As a result, we are able to keep our customers’ operating costs low while still providing the ability to scale as needed.”

2. Compute Engine Virtual Machines are optimized for scale-out workloads 

For scale-out workloads, T2D, the first instance type in the Tau VM family, is based on 3rd Gen AMD EPYC processors and leapfrogs VMs for scale-out workloads of any leading public cloud provider today, both in terms of performance and price-performance. Tau VMs offer 56% higher absolute performance and 42% higher price-performance compared to general-purpose VMs from any leading public cloud vendor (source). The x86 compatibility provided by these AMD EPYC processor-based VMs gives you market-leading performance improvements and cost savings, without having to port your applications to a new processor architecture. Sign up here  if you are interested in trying out T2D instances in Preview. 

For SAP HANA, Google Cloud has demonstrated with SAP how we can run the world’s largest scale-out HANA system in the public cloud (96TB).   With such innovation, you are covered as your business grows exponentially.

3. Largest single node GPU-enabled VM

Google is the only public cloud provider to offer up to 16 NVIDIA A100 GPUs in a single VM, making it possible to train very large AI models. Users can start with one NVIDIA A100 GPU and scale to 16 GPUs without configuring multiple VMs for single-node ML training, without crossing the VM layer. 

Additionally, customers can choose smaller GPU configurations—1, 2, 4 and 8 GPUs per VM—providing the flexibility to scale their workload as needed. 

The A2 VM family was designed to meet today’s most demanding applications—workloads like CUDA-enabled machine learning (ML) training and inference, for example. This family is built on the A100 GPU which offers up to 20x the compute performance compared to the previous generation GPU and comes with 40 GB of high-performance HBM2 GPU memory. To speed up multi-GPU workloads, the A2 VMs use NVIDIA’s HGX A100 systems to offer high-speed NVLink GPU-to-GPU bandwidth that delivers up to 600 GB/s. A2 VMs come with up to 96 Intel Cascade Lake vCPUs, optional Local SSD for workloads requiring faster data feeds into the GPUs and up to 100 Gbps of networking. A2 VMs provide full vNUMA transparency into the architecture of underlying GPU server platforms, enabling advanced performance tuning. Google Cloud offers these GPUs globally. 

4. ​​Non-disruptive maintenance means you worry less about planned downtime

Compute Engine offers live migration (non-disruptive maintenance) to keep your virtual machine instances running even when a host system event, such as a software or hardware update, occurs. Google’s Compute Engine live migrates your running instances to another host in the same zone without requiring your VMs to be rebooted. Live migration enables Google to perform maintenance that is integral to keeping infrastructure protected and reliable without interrupting any of your VMs. When a VM is scheduled to be live-migrated, Google provides a notification to the guest that a migration is imminent. 

Live migration keeps your instances running during:

• Regular infrastructure maintenance and upgrades
• Network and power grid maintenance in the data centers
• Failed hardware such as memory, CPU, network interface cards, disks, power, and so on. This is done on a best-effort basis; if a hardware component fails completely or otherwise prevents live migration, the VM crashes and restarts automatically and a hostError is logged.
• Host OS and BIOS upgrades
• Security-related updates
• System configuration changes, including changing the size of the host root partition, for storage of the host image and packages

Live migration does not change any attributes or properties of the VM itself. The live migration process transfers a running VM from one host machine to another host machine within the same zone. All VM properties and attributes remain unchanged, including internal and external IP addresses, instance metadata, block storage data and volumes, OS and application state, network settings, network connections, and so on. This has the benefit of reducing operational and maintenance overhead, helps you build a more robust security posture where infrastructure can be consciously revamped from a known good state and minimizes risks for advanced persistent threats. 

Refer to Lessons learned from a year of using live migration in production on Google Cloud from the Google engineering team.

5. Trusted Computing: Shielded VMs guard you against advanced, persistent attacks

Establishing trust in your environment is multifaceted, involving hardware and firmware, as well as host and guest operating systems. Unfortunately, threats like boot malware or firmware rootkits can stay undetected for a long time, and an infected virtual machine can continue to boot in a compromised state even after you’ve installed legitimate software. 

Shielded VMs can help you protect your system from attack vectors like:

• Malicious guest OS firmware, including malicious UEFI extensions
• Boot and kernel vulnerabilities in the guest OS
• Malicious insiders within your organization

To guard against these kinds of advanced persistent attacks, Shielded VMs use:

• Unified Extensible Firmware Interface (UEFI) BIOS: Helps ensure that firmware is signed and verified
• Secure and Measured Boot: Helps ensure that a VM boots an expected, healthy kernel
• Virtual Trusted Platform Module (vTPM): Establishes root-of-trust, underpins Measured Boot, and prevents exfiltration of vTPM-sealed secrets
• Integrity Monitoring: Provides tamper-evident logging, integrated with Stackdriver, to help you quickly identify and remediate changes to a known integrity state

The Google approach allows customers to deploy Shielded VMs with only a simple click, thereby easing implementation. 

6. Confidential Computing encrypts data while in use

Google Cloud was a founding member of the Confidential Computing Consortium. Along with encryption of data in transit and at rest using customer-managed encryption keys (CMEK) and customer-supplied encryption keys (CSEK), Confidential VM adds a “third pillar” to the end-to-end encryption story by encrypting data while in use. Confidential Computing uses processor-based technology that allows data to be encrypted in use while it is being processed in the public cloud. Confidential VM allows you to to encrypt memory in use on a Google Compute Engine VM by checking a single checkbox. 

All Confidential VMs support the previously mentioned Shielded VM features under the covers—you can think of Shielded VM as helping to address VM integrity, while Confidential VM addresses the memory encryption aspect which relies on CPU features. With the confidential execution environments provided by Confidential VM and AMD Secure Encrypted Virtualization (SEV), Google Cloud keeps customers’ sensitive code and other data encrypted in memory during processing. Google does not have access to the encryption keys. In addition, Confidential VM can help alleviate concerns about risk related to either dependency on Google infrastructure or Google insiders’ access to customer data in the clear. 

See what Google Cloud partners say about Confidential Computing here. 

7. Advanced networking delivers full-stack networking and security services with fast, consistent, and scalable performance

Google Cloud’s network delivers low latency, reduces operational costs and ensures business continuity, enabling organizations to seamlessly scale up or down in any region to meet business needs. Our planet-scale network uses advanced software-defined networking and security with edge caching services to deliver fast, consistent, and scalable performance. With 28 regions, 85 zones, and 146 PoPs connected by 16 subsea fiber cables around the world, Google Cloud’s network offers a full stack of layer 1 to layer 7 services for enterprises to run their workloads anywhere. Enterprises can be assured that they have best-in-class networking and security services connecting their VMs, containers, and bare metal resources in hybrid and multi-cloud environments with simplicity, visibility, and control. 

Google Cloud’s network has protected customers from one of the world’s largest DDoS attacks at 2.54 Tbps. With our multi-layer security architecture and products such as Cloud Armor, our customers ran their business with no disruptions. Furthermore, our recent integration of Cloud Armor with reCAPTCHA Enterprise adds best-in-class bot and fraud management to prevent volumetric attacks. Cloud Armor is deployed with our Cloud Load Balancer and Cloud CDN, extending the secure benefits at the network edge for traffic coming into Google Cloud so customers have security, performance, and reliability all built in. Furthermore, we are excited to offer Cloud IDS in preview, which was co-developed with security industry leader, Palo Alto Networks, to run natively in Google Cloud. 

Our advanced networking capabilities also extends to GKE and Anthos networking. With the GKE Gateway controller, customers can manage internal and external HTTPS load balancing for a GKE cluster or a fleet of GKE clusters with multi-tenancy while maintaining centralized admin policy and control. Unlike other Kubernetes offerings, we offer eBPF dataplane which brings powerful tooling such as Kubernetes network policy and logging to GKE. eBPF is known to kernel engineers as a “superpower” for its unique architecture to load and unload modules in kernel space, and now this capability is built in with Google Cloud networking. 

For observability and monitoring, our customers deploy Network Intelligence Center, Google Cloud’s comprehensive network monitoring, verification and optimization platform. With four key modules in Network Intelligence Center, and several more to come, we are working towards realizing our vision of proactive network operations that can predict and heal network failures, driven by AI/ML recommendations and remediation. Network Intelligence Center provides unmatched visibility into your network in the cloud along with proactive network verification. Centralized monitoring cuts down troubleshooting time and effort, increases network security and improves the overall user experience.  

8. Regional Persistent Disk for High Availability

Regional Persistent Disk is a storage option that provides synchronous replication of data between two zones in a region. Regional Persistent Disks can be a great building block if you need to ensure high availability of your critical applications as they offer cost-effective durable storage and replication of data between two zones in the same region. 

Regional Persistent Disks are also easy to set up within the Google Cloud Console. If you are designing robust systems or high availability services on Compute Engine, Regional Persistent Disks combined with other best practices such as backing up your data using snapshots enable you to build an infrastructure that is highly available and recoverable in a disaster. Regional Persistent Disks are also designed to work with regional managed instance groups. In the unlikely event of a zonal outage, Regional Persistent Disks allow continued I/O through failover of your workloads to another zone. Regional Persistent Disks can help meet zero RPO and near-zero RTO requirements and other stringent SLAs that your critical applications might require by maximizing application availability and protection of data during events such as host/VM failures and zonal outages. 

9. Cloud Storage’s single namespace for dual-region and multi-region means managing regional replication is incredibly simple

Similar to how Persistent Disk makes data more available by replicating data across zones, Cloud Storage provides similar benefits for object storage. Cloud Storage within a region is cross-zone by definition, reducing the risk that a zonal outage would take down your application. Cloud Storage adds to this by also providing a cross-region option that can protect against a regional outage and gets your data closer to distributed users. This comes in the form of Dual-region or Multi-region settings for a bucket. These are the simplest to implement cross-region replication offerings in the industry—just a simple button or API call to enable them. In addition to being simple to implement, they offer an added advantage of using a single bucket name that spans regions. 

This is unique in the industry. Competitive offerings currently require setting up and managing two distinct buckets, one in each region and they don’t offer the strong consistency properties Cloud Storage offers across regions. Operations and app development are burdened by this design. Google’s single namespace approach dramatically simplifies application development (the app runs on single region or dual/multi-region without any changes), and provides simpler application restarts and testing for DR.

10. Predictive autoscaling 

Customers use predictive autoscaling to improve response times for applications with long initialization times or for applications with workloads that vary predictably with daily or weekly cycles. When you enable predictive autoscaling, Compute Engine forecasts future load based on your Managed Instance Group’s history and scales out the MIG’s in advance of predicted load, so that new instances are ready to serve when the load arrives. Without predictive autoscaling, an autoscaler can only scale a group reactively, based on observed changes in load in real time. 

With predictive autoscaling enabled, the autoscaler works with real-time data as well as with historical data to cover both the current and forecasted load. Forecasts are refreshed every few minutes (faster than competing clouds) and consider daily and weekly seasonality, leading to more accurate forecasts of load patterns.

For more information, see How predictive autoscaling works and Checking if predictive autoscaling is suitable for your workload.

These are just a few examples of customer-centric innovation that set Google Cloud infrastructure apart.  Bring your applications and let the platform work for you.   

Get started by learning about your options for migration, or talk to our sales team to join the thousands of customers who have embarked upon this journey.

Acknowledgement

Special thanks to Dheeraj Konidena (Google) for contributing to this article.

The Home Depot, Inc., is the world’s largest home improvement retailer with annual revenue of over $151B. Delighting our customers—whether do-it-yourselfers or professionals—by providing the home improvement products, services, and equipment rentals they need, when they need them, is key to our success.

We operate more than 2,300 stores throughout the United States, Canada, and Mexico. We also have a substantial online presence through HomeDepot.com, which is one of the largest e-commerce platforms in the world in terms of revenue. The site has experienced significant growth both in traffic and revenue since the onset of Covid-19.

Because many of our customers shop at both our brick-and-mortar stores and online, we’ve embarked on a multi-year strategy to offer a shopping experience that seamlessly bridges the physical and digital worlds. To maximize value for the increasing number of online shoppers, we’ve shifted our focus from event marketing to personalized marketing, as we found it to be far more effective in improving the customer experience throughout the sales journey. This led to changing our approach to marketing content, email communications, product recommendations, and the overall website experience.

Challenge: launching a modern marketing strategy using legacy IT

For personalized marketing to be successful, we had to improve our ability to recognize a customer at the point of transaction so we could—among other things—suspend irrelevant and unnecessary advertising. Most of us have experienced the annoyance of receiving ads for something we’ve already purchased, which can degrade our perception of the brand itself. While many online retailers can identify 100% of their customer transactions due to the rich information captured during checkout, most of our transactions flow through physical stores, making this a more difficult problem to solve.

Our old legacy IT system, which ran in an on-premises data center and leveraged Hadoop, also challenged us since maintaining both the hardware and software stack required significant resources. When that system was built, personalized marketing was not a priority, so it took several days to process customer transaction data and several weeks to roll out any system changes. Further, managing and maintaining the large Hadoop cluster base presented its own set of issues in terms of quality control and reliability, as did keeping up with open-source community updates for each data processing layer.

Adopting a hybrid approach

As we worked through the challenges of our legacy system, we started thinking about what we wanted our future system to look like. Like many companies, we began with a “build vs. buy” analysis. We looked at several products on the market and determined that while each of them had their strengths, none was able to offer the complete set of features we needed.

Our project team didn’t think it made sense to build a solution from scratch, nor did we have access to the third-party data we needed. After much consideration, we decided to adopt a solution that combined a complete rewrite of the legacy system with the support of a partner to help with the customer transaction matching process.

Building the foundation on Google Cloud

We chose Google Cloud’s data platform, specifically BigQuery, Dataflow, DataProc, Cloud Storage, and Cloud Composer. Google Cloud platform empowered us to break down data silos and unify each stage of the data lifecycle from ingestion, storage, and processing to analysis and insights. Google Cloud offered best-in-class integration with open-source standards and provided the portability and extensibility we needed to make our hybrid solution work well. The open standards of BigQuery’s BQ Storage API allowed us to leverage fast BQ storage layers to be utilized with other compute platforms, e.g., DataProc.

We used BigQuery combined with Dataflow to integrate our first- and third-party data into an enterprise data and analytics data lake architecture. The system then combined previously siloed data and used BigQuery ML to create complete customer profiles spanning the entire shopping experience, both in-store and online.

Understanding the customer journey with the help of Dataflow and BigQuery

The process of developing customer profiles involves aggregating a number of first- and third-party data sources to create a 360-degree view of the customer based on both their history and intent. It starts with creating a single historical customer profile through data aggregation, deduplication, and enrichment. We used several vendors to help with customer resolution and NCOA (Change of Address) updates, which allows the profile to be house-holded and transactions to be properly reconciled to both the individual and the household. This output is then matched to different customer signals to help create an understanding of where the customer is in their journey—and how we can help.

The initial implementation used Google Dataflow, Google’s streaming analytics solution, to load data from Google Cloud Storage into BigQuery and perform all necessary transformations. The Dataflow process was converted into BQML (BigQuery Machine Learning) since this significantly reduced costs and increased visibility into data jobs. We used Google Cloud Composer, a fully managed workflow orchestration service, to help orchestrate all data operations and DataProc and Google Kubernetes Engine to enable special case data integration so we could quickly pivot and test new campaigns. The architecture diagram below shows the overall structure of our solution.

Taking full advantage of cloud-native technology

In our initial migration to Google Cloud, we moved most of our legacy processes in their original form. However, we quickly learned that this approach didn’t take full advantage of the cloud-native and more improved features Google Cloud offered such as auto scaling of resources, flexibility to decouple storage from the compute layer, and a wide variety of options to choose the best tool for the job. We refactored our Hadoop-based data pipelines written in Java-based Map Reduce and our Pig Latin jobs to Dataflow and BigQuery jobs. This dramatically reduced processing time and made our data pipeline code concise and efficient.

Previously, our legacy system processes ran longer than intended, and data was not used efficiently. Optimizing our code to be cloud-native and leveraging all the capabilities of Google Cloud services resulted in reduced run times. We decreased our data processing window from 3 days to 24 hours, improved resource usage by dramatically reducing the amount of compute we used to possess this data, and built a more streamlined system. This in turn reduced cloud costs and provided better insight. For example, DataFlow offers powerful native features to monitor data pipelines, enabling us to be more agile.

Leveraging the flexibility and speed of the cloud to improve outcomes

Today, using a continuous integration/continuous delivery (CI/CD) approach, we can deploy multiple system changes each week to further improve our ability to recognize in-store transactions. Leveraging the combined capabilities of various Google Cloud systems—BigQuery, DataFlow, Cloud Composer, Dataproc, and Cloud Storage–we drastically increased our ability to recognize transactions and can now connect over 75% of all transactions to an existing household. Further, the flexible Google Cloud environment coupled with our cloud-native application makes our team more nimble and better able to respond to emerging problems or new opportunities.

Increased speed has led to better outcomes in our ability to match transactions across all sales channels to a customer and thereby improve their experience. Before moving to Google Cloud, it took 48 to 72 hours to match customers to their transactions, but now we can do it in less than 24 hours.

Making marketing more personal—and more efficient

The ability to quickly match customers to transactions has huge implications for our downstream marketing efforts in terms of both cost and effectiveness. By knowing what a customer has purchased, we can turn off ads for products they’ve already bought or offer ads for things that support what they’ve bought recently. This helps us use our marketing dollars much more efficiently and offer an improved customer experience.

Additionally, we can now apply the analytical models developed using BQML and Vertex AI to sort customers into audiences. This allows us to more quickly identify a customer’s current project, such as remodeling a kitchen or finishing a basement, and then personalize their journey by offering them information on products and services that matter most at a given point through our various marketing channels. This provides customers with a more relevant and customized shopping journey that mirrors their individual needs.

Protecting a customer’s privacy

With this ability to better understand our customers, we also have the responsibility to ensure we have good oversight and maintain their data privacy. Google’s cloud solutions provide us the security needed to help protect our customers’ data, while also being flexible enough to allow us to support state and federal regulations, like the California Customer Privacy Act. This way we can provide a customer the personalized experience they desire without having to fear how their data is being used.

With flexible Google Cloud technology in place, The Home Depot is well positioned to compete in an industry where customers have many choices. By putting our customers’ needs first, we can stay top of mind whenever the next project comes up.

When I reflect back on the past year and the pandemic, I’m struck by how the reliance on remote work and operations has changed the fundamentals of business forever. For the financial services industry, this rings particularly true. Many conversations I’m having right now with organizations revolve around embracing a transformation cloud, and thinking of cloud computing not just as an infrastructure decision, but also as the locus for transformation throughout the company. 

Today, as we welcome the industry to our Financial Services Summit, we’ll demonstrate just how Google Cloud accelerates a financial organization’s digital transformation through app and infrastructure modernization, data democratization, people connections, and trusted transactions. We hope you’ll join us.

How we’re helping financial services firms build their transformation clouds

At Google Cloud, we continue to focus on areas where we can bring the best of our capabilities to banking, capital markets, insurance, and payments customers around the world. Our work with financial services industry customers has given us a deep understanding of the real-world, specific use cases that matter most to them. This groundwork led us to engineer products and solutions that are open and flexible, not ones that force them to rip out existing investments in ERP or other early IaaS cloud implementations. 

It’s why we’ve engineered solutions such as Lending DocAI, Open Banking with Apigee, and Datashare for financial services to help transform the industry. These solutions were created with our customers’ security and compliance top-of-mind and are built at the intersection of user-optimized experience, technology, and sovereignty.

At their core, financial institutions want to drive growth, reduce costs, mitigate risk, stay compliant, and increase efficiency. As a result, when we partner with them on their transformation journeys, we consider three essential focus areas: 

• Enabling the human experience and connected interactions
• Building an open and intelligent data foundation for better insights
• Providing the most trusted and secure cloud in the industry

Enabling humans and connected interactions

A company’s transformation is about more than technology; people and culture ultimately drive change. HSBC, for example, recognized its business users would benefit from guided answers to common questions around risk policy compliance, and turned to Google Cloud to leverage AI and machine learning bots to assist employees, ease the burden on policy experts, and improve the user experience. Using Dialogflow, a core component of Contact Center AI, HSBC was able to build a conversational platform that quickly and accurately addresses user needs at scale. 

Another example is Equifax, which used Google Workspace to support collaboration not only internally between employees, but also externally with customers. Customers can use Google Cloud solutions for financial services to build these sorts of technology-enabled human interactions quickly and easily—supporting organizational change at scale.

Building an open and intelligent data foundation for smarter, faster insights

The real impact of Google Cloud solutions for financial services comes when the whole company has access to the right information at the right time, and can act more intelligently on that data. Our solutions help businesses safely leverage their data and get a complete 360-degree view of their customers’ information, which can often be scattered across multiple systems (CRM, lending, credit, etc.). This helps financial institutions improve the overall customer experience—and sometimes even develop new products quickly. 

Indeed, all financial institutions are looking for ways to grow revenue and reduce expenses, and data can be a critical ingredient to doing both effectively. As daily transactions rise, so does the volume and complexity of data. But to implement new customer experience innovations (and new revenue streams), financial institutions must first capture data effectively. This is why AXA Switzerland, for example, uses real-time analytics on Google Cloud to gain cross-industry insights about future trends and customer preferences.

Financial services organizations also need the confidence of building on a platform that provides choice, flexibility, and agility to move fast. It’s why we have an open cloud approach that allows Google Cloud services to run in different physical locations such as on-premises, other public clouds, and the edge. Customers can also harness the power of data and AI through our open APIs, machine-learning services, and analytics engines on any major cloud platform. This is why companies like Macquarie Bank are taking advantage of Google Cloud’s open, hybrid architecture to modernize and empower its developers.

Compliant and secure to address risk and regulatory needs

As a highly regulated industry, financial services is focused on security and compliance, risk and regulations, and fraud detection and prevention. Google Cloud offers unique capabilities to earn customers’ trust as part of our continuing work to be the most trusted cloud in the industry. Google Cloud provides a secure foundation that you can verify and independently control. Our cloud technology reduces risk and data loss, because it is built on comprehensive zero-trust architecture. Finally, we offer a shared-fate model built on best practices in risk management via automation, guidance, and insurance. This is why customers like BBVA have confidence anywhere their systems may operate. 

On the regulatory front, global legislators and regulators continue to focus on the stability of the industry that only a decade ago went through one of the biggest liquidity crises in history. With this oversight comes strong expectations of risk mitigation. Google Cloud offers a single, global set of controls, reviewed by financial institutions and regulators around the world, and verified in collaborative audits—making compliance simpler and less costly for our customers.

Finally, Google Cloud allows financial services firms to operate confidently with advanced security tools that help protect data, applications, and infrastructure, as well as their customers from fraudulent activity, spam, and abuse. We help protect your data against threats, using the same infrastructure and security services we use for our own operations, ensuring you never have to trade-off between ease of use and security. Google Cloud encrypts data at-rest and in-transit. And we now also offer the ability to encrypt data-in use, while it’s being processed for customer VM and container workloads.

Let us help you with your transformation cloud journey

We’ve seen leading financial services companies embrace Google Cloud to help them move beyond infrastructure toward the next phase of their cloud evolution. This is an era where no company is better positioned to lead than Google Cloud, and we’re excited to help you with your journey.

Learn more about Google Cloud for financial services.