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Are You Providing Sufficient Digital Leadership?

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Whether a company has been in business five decades, five years or five months, software remains ravenous and is always looking for new companies and industries to “eat.”Facing this threat, how should corporate leadership respond?

It has been seven years since Marc Andreesen’s famous article “Why Software is Eating the World” was published in the Wall Street Journal, and given the slow pace of change in many companies, some executives still may not be taking the threat of being “eaten” seriously enough. 

Software, and platform business models based on software, have the potential to deliver powerful economic forces into virtually any company or industry. Every company has valuable assets—such as data, expertise or access to certain services or user bases—and most of these assets can be delivered via software. Once an asset is expressed as software in a modern way—that is, as an application programming interface (API)—it can be combined with other software to create new applications and digital experiences.

Benefits of this approach, just to name a few, include near-zero marginal cost to scale up APIs for new users or use cases; global reach for both partners using APIs and end users consuming the digital experiences those APIs power; and network effects triggered as more partners use a given company’s digital assets and spread its services into new markets and use cases.

Disruption by software-powered business models

In the last two decades we’ve seen individual companies and entire industries upended by these kinds of software-powered business models. Examples abound: Amazon and the retail industry, Netflix and movie rentals, Uber and ride hailing, Airbnb and hotels, etc. We’ve reached the point that these companies’ names have become verbs synonymous with being “eaten” by software (e.g., “Amazoned” or “Netflixed”).

The most famous examples of digital disruption involve digital natives, of course, but legacy businesses are leveraging software to evolve too. Brazilian retailer Magazine Luiza—a company I’ve worked with through my employer, Google Cloud’s Apigee team—has enjoyed enormous revenue growth and seen its stock soar, for example, as it has built out its digital platform capabilities and transitioned from a primarily brick-and-mortar model to an omnichannel one. The point is, whether a company has been in business five decades, five years or five months, software remains ravenous and is always looking for new companies and industries to “eat.”

Change in the face of serious threats

Facing this threat, how should corporate leadership respond? There are some excellent examples of CEOs who have galvanized their companies and led them through the massive, gut-wrenching change required to pivot in the face of a serious threat. A few of the biggest examples include: 

  • In 1995, it became apparent to Microsoft co-founder and then-CEO Bill Gates that the internet was “the most important single development to come along since the IBM PC,” and, if not embraced in haste, a threat to many of Microsoft’s businesses. In May of that year he published the “The Internet Tidal Wave” memo and focused all of Microsoft on adopting and building for the internet. Almost 20 years later, current Microsoft CEO Satya Nadella similarly made the bold decision to redirect the company for a cloud-first world. 
  • Facebook went public at $38 per share in May of 2012 but within months, stocks could be had for a little over half that. The concern? Facebook was a desktop-optimized website without a polished mobile presence, and by 2012, consumer attention had begun to accelerate towards mobile at a much higher rate than many initially predicted.  Facebook CEO Mark Zuckerberg reacted by not only proclaiming Facebook a mobile-first company, but also backing up that proclamation with action.  
  • Turning to another company I’ve worked with via Apigee, T-Mobile launched its highly visible “Uncarrier” campaign—which offers streamlined, customer-friendly plans and services—while also investing in and executing a new IT vision dedicated to ongoing digital transformation. T-Mobile execs have credited the technology effort, spearheaded by CEO John Legere, with helping the company to introduce new services and better service customers. T-Mobile’s market cap has more than doubled since Legere took over in 2012.  

Keeping pace with changing customer needs

In the face of an existential threat, strong executive leadership is required to pivot the company to safety, as these examples attest. Digital transformationisn’t about deploying new technologies just to make an existing approach more efficient or to add a few new apps or features to the status quo; digital transformation is about keeping pace with changing customer needs by leveraging software platforms to continuously evolve how the business operates. This can be akin to turning an enormous ship—and a ship can’t turn very well without her captain, first mate, and other leaders showing the way.  

Research supports this. A recent Deloitte survey, for example, found that over “80 percent of respondents from digitally maturing organizations say their leaders have sufficient knowledge and ability to lead the company’s digital strategy,” compared to only “22 percent of early-stage business respondents [who] have the same belief.” Similarly, Gartner research finds that CEOs are seeking a “deeper understanding of digital business” as they shift their focus from growth in general to how technology helps them attain it.  

More recently, the onslaught of software devouring the world has been further accelerated by machine learning making everything smarter, voice interfaces changing how people interact with devices, and more. To keep pace, corporate leaders need to galvanize their companies to build and deploy software faster, make systems and data easily accessible inside and outside their companies, and improve digital experiences through not only machine learning but also constant data-driven iteration. 

Seven years after Andreesen’s editorial, the pace of digital disruption is still increasing, and so is the need for strong leadership to pivot fully into digital. Over half of the Fortune 500 has been acquired, merged or declared bankruptcy since 2000—and the companies that survive in coming years won’t be those whose leaders treat technology as an IT concern rather than a core part of the business.  

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Fully-managed-zero-trust Security Solution, Traffic Director Integrated with CA Service

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Google's fully-managed zero-trust security solution, Traffic Director, is a fully managed service mesh product with load balancing, traffic management and service discovery. Learn how its integration with CA Service impacts security.

We created Traffic Director to bring to you a fully managed service mesh product that includes load balancing, traffic management and service discovery. And now, we’re happy to announce the availability of a fully-managed zero-trust security solution using Traffic Director with Google Kubernetes Engine (GKE) and Certificate Authority (CA) Service.

When platform administrators and security professionals think about modernizing their applications with a forward-looking security posture, they look for “zero-trust” security. This security posture is based on few fundamental blocks:

  1. A means of allocating and asserting service identity (for example, using X.509 certificates)
  2. Mutual authentication (mTLS) or server authentication (TLS)
  3. Encryption for all traffic flows (TLS encryption)
  4. Authorization checks and minimal privileges
  5. Infrastructure to make all of the above manageable and reliable

Traffic Director does this by integrating with CA Service, a highly available private CA which issues private certificates expressing service identities, and provides a managed mTLS certificate infrastructure with full certificate lifecycle management. Together, these solve both certificate issuance and CA rotation complexities. 

With Traffic Director managing your service-to-service security, you can now enjoy end-to-end encryption, service-level authentication and granular authorization policies for your service mesh.

Traffic Director Product Overview.jpg

With this new capability, you can now:

  • Implement mutual TLS (mTLS) and TLS between your services, including certificate lifecycle management. Communications within your mesh are authenticated and encrypted.
  • Enable identity-based authorization, as well as authorization based on other parameters (such as the request method). These concepts underpin role-based access controls (RBAC) and enable you to take a “least privileges” stance where only authorized services can communicate with each other based on ALLOW/DENY rules.

mTLS is supported whether you’re using Envoy or proxyless gRPC for your service mesh. Authorization support for proxyless gRPC is coming later this year. Check out our documentation to learn more and get started with Envoy or proxyless gRPC.

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An App Modernization Story with Cloud Run

Back in 2016, an ASP.NET monolith app was deployed to IIS on Windows. While it worked, it was clunky in every sense of the word.

Over the years, the app was freed from Windows (thanks to .NET Core), containerized to run consistently in different environments (thanks to Docker) and decomposed into a set of loosely-coupled, event-driven, microservices (thanks to Cloud Run). The end result is a simpler and portable serverless architecture that’s much cheaper to run and maintain.

Watch the modernization journey, explore the decision points, and deep dive into the final architecture and code.

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A Guide to Accelerating Developer Productivity and Agility

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Business needs for digital solutions have intensified the urgency for rapid application development and deployment. At the same time, widespread adoption of cloud computing has revolutionized the IT environment used by both enterprises and consumers.

In addition, the acceleration of digital transformation has increased the availability of developer tools and deployment environments. Besides, the vibrancy of the DevOps movement and the multiplicity of development tools and infrastructures mean that developers enjoy greater decision-making authority in the development of digital solutions.

As a result, developers not only confront the challenge of shipping software faster but also encounter competing challenges to ensure software quality and the appropriate mitigation of risks associated with rapid development and deployment.

Hence, to move quickly and with confidence, developers must use tools that automate the full software development life cycle and work across platforms and operating systems.

Developers need to adopt FaaS, a cloud platform that allows developers to develop, deploy, and manage event-driven applications without the responsibility of managing the infrastructure on which the applications run.

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Introducing a strong alternative to CentOS: Rocky Linux Optimized for Google Cloud

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Many huge enterprises are considering their options for an enterprise-grade, downstream Linux distribution on which to run their production applications. As CentOS 7 reaches the end of life, Rocky Linux has emerged as a strong alternative.

As CentOS 7 reaches end of life, many enterprises are considering their options for an enterprise-grade, downstream Linux distribution on which to run their production applications. Rocky Linux has emerged as a strong alternative that, like CentOS, is 100% compatible with Red Hat Enterprise Linux.

In April 2022, we announced a customer support partnership with CIQ, the official support and services partner and sponsor of Rocky Linux, as the first step in providing a best-in-class enterprise-grade supported experience for Rocky Linux on Google Cloud. Today we’re excited to announce the general availability of Rocky Linux Optimized for Google Cloud. We developed this collection of Compute Engine virtual machine images in close collaboration with CIQ so that you get optimal performance when using Rocky Linux on Compute Engine to run your CentOS workloads.

These new images contain customized variants of the Rocky Linux kernel and modules that optimize networking performance on Compute Engine infrastructure, while retaining bug-for-bug compatibility with Community Rocky Linux and Red Hat Enterprise Linux. The high bandwidth networking enabled by these customizations will be beneficial to virtually any workload, and are especially valuable for clustered workloads such as HPC (see this page for more details on configuring a VM with high bandwidth).

Going forward, we’ll collaborate with CIQ to publish both the community and Optimized for Google Cloud editions of Rocky Linux for every major release, and both sets of images will receive the latest kernel and security updates provided by CIQ and the Rocky Linux community. And of course, we’ll offer support with CIQ for both these images, per our partnership.

Rocky Linux Optimized for Google Cloud lets you take advantage of everything Compute Engine has to offer, including day-one support for our latest VM families, GPUs, and high-bandwidth networking. And for customers building for a multi-cloud deployment environment, the community Rocky images have you covered.

Starting today, Rocky Linux 8 Optimized for Google Cloud is available for all x86-based Compute Engine VM families (and soon for the new Arm-based Tau T2A), with version 9 soon to follow. Give it a try and let us know what you think.

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5 Best Practices for Cloud Cost Optimization

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Bothered about cloud costs and how to bring them down? Here are top recommendations from Google Cloud, developed based on the collective experience working with GCP customers.

When customers migrate to Google Cloud Platform (GCP), their first step is often to adopt Compute Engine, which makes it easy to procure and set up virtual machines (VMs) in the cloud that provide large amounts of computing power. Launched in 2012, Compute Engine offers multiple machine types, many innovative features, and is available in 20 regions and 61 zones! 

Compute Engine’s predefined and custom machine types make it easy to choose VMs closest to your on-premises infrastructure, accelerating the workload migration process cost effectively. Cloud allows you the pricing advantage of ‘pay as you go’ and also provides significant savings as you use more compute with Sustained Use Discounts

As Technical Account Managers, we work with large enterprise customers to analyze their monthly spend and recommend optimization opportunities. In this blog, we will share the top recommendations that we’ve developed based on our collective experience working with GCP customers. 

Getting ready to save

Before you get started, be sure to familiarize yourself with the VM instance pricing page—required reading for anyone who needs to understand the Compute Engine billing model and resource-based pricing. In addition to those topics, you’ll also find information about the various Compute Engine machine types, committed use discounts and how to view your usage, among other things. 

Another important step to gain visibility into your Compute Engine cost is using Billing reports in the Google Cloud Console and customizing your views based on filtering and grouping by projects, labels and more. From there you can export Compute Engine usage details to BigQuery for more granular analysis. This allows you to query the datastore to understand your project’s vCPU usage trends and how many vCPUs can be reclaimed. If you have defined thresholds for the number of cores per project, usage trends can help you spot anomalies and take proactive actions. These actions could be rightsizing the VMs or reclaiming idle VMs.

Now, with these things under your belt, let’s go over the five ways you can optimize your Compute Engine resources that we believe will give you the most immediate benefit. 

1. Apply Compute Engine rightsizing recommendations

Compute Engine’s rightsizing recommendations feature provides machine type recommendations that are generated automatically based on system metrics gathered by Stackdriver Monitoring over the past eight days. Use these recommendations to resize your instance’s machine type to more efficiently use the instance’s resources. It also recommends custom machine types when appropropriate. Compute Engine makes viewing, resizing and other actions easier right from the Cloud Console as shown below. 

Recently, we expanded Compute Engine rightsizing capabilities from just individual instances to managed instance groups as well. Check out the documentation for more details.

Compute Engine rightsizing recommendations.png

For more precise recommendations, you can install the Stackdriver Monitoring agent which collects additional disk, CPU, network, and process metrics from your VM instances to better estimate your resource requirements. You can also leverage the Recommender API for managing recommendations at scale.

2. Purchase Commitments

Our customers have diverse workloads running on Google Cloud with differing availability requirements. Many customers follow a 70/30 rule when it comes to managing their VM fleet—they have constant year-round usage of ~70%, and a seasonal burst of ~30% during holidays or special events. 

If this sounds like you, you are probably provisioning resources for peak capacity. However, after migrating to Google Cloud, you can baseline your usage and take advantage of deeper discounts for Compute workloads. Committed Use Discounts are ideal if you have a predictable steady-state workload as you can purchase a one or three year commitment in exchange for a substantial discount on your VM usage.

We recently released a Committed Use Discount analysis report in the Cloud Console that helps you understand and analyze the effectiveness of the commitments you’ve purchased. In addition to this, large enterprise customers can work with their Technical Account Managers who can help manage their commitment purchases and work proactively with them to increase Committed Use Discount coverage and utilization to maximize their savings.

3. Automate cost optimizations

The best way to make sure that your team is always following cost-optimization best practices is to automate them, reducing manual intervention.

Automation is greatly simplified using a label—a key-value pair applied to various Google Cloud services. For example, you could label instances that only developers use during business hours with “env: development.” You could then use Cloud Scheduler to schedule a serverless Cloud Function to shut them down over the weekend or after business hours and then restart them when needed. Here is an architecture diagram and code samples that you can use to do this yourself. 

Using Cloud Functions to automate the cleanup of other Compute Engine resources can also save you a lot of time and money. For example, customers often forget about unattached (orphaned) persistent disk, or unused IP addresses. These accrue costs, even if they are not attached to a virtual machine instance. VMs with the “deletion rule” option set to “keep disk” retain persistent disks even after the VM is deleted. That’s great if you need to save the data on that disk for a later time, but those orphaned persistent disks can add up quickly and are often forgotten! There is a Google Cloud Solutions article that describes the architecture and sample code for using Cloud Functions, Cloud Scheduler, and Stackdriver to automatically look for these orphaned disks, take a snapshot of them, and remove them. This solution can be used as a blueprint for other cost automations such as cleaning up unused IP addresses, or stopping idle VMs. 

4. Use preemptible VMs

If you have workloads that are fault tolerant, like HPC, big data, media transcoding, CI/CD pipelines or stateless web applications, using preemptible VMs to batch-process them can provide massive cost savings. In fact, customer Descartes Labs reduced their analysis costs by more than 70% by using preemptible VMs to process satellite imagery and help businesses and governments predict global food supplies.

Preemptible VMs are short lived— they can only run a maximum of 24 hours, and they may be shut down before the 24 hour mark as well. A 30-second preemption notice is sent to the instance when a VM needs to be reclaimed, and you can use a shutdown script to clean up in that 30-second period. Be sure to fully review the full list of stipulations when considering preemptible VMs for your workload. All machine types are available as preemptible VMs, and you can launch one simply by adding “-preemptible” to the gcloud command line or selecting the option from the Cloud Console. 

Using preemptible VMs in your architecture is a great way to scale compute at a discounted rate, but you need to be sure that the workload can handle the potential interruptions if the VM needs to be reclaimed. One way to handle this is to ensure your application is checkpointing as it processes data, i.e., that it’s writing to storage outside the VM itself, like Google Cloud Storage or a database. As an example, we have sample code for using a shutdown script to write a checkpoint file into a Cloud Storage bucket. For web applications behind a load balancer, consider using the 30-second preemption notice to drain connections to that VM so the traffic can be shifted to another VM. Some customers also choose to automate the shutdown of preemptible VMs on a rolling basis before the 24-hour period is over, to avoid having multiple VMs shut down at the same time if they were launched together. 

5. Try autoscaling 

Another great way to save on costs is to run only as much capacity as you need, when you need it. As we mentioned earlier, typically around 70% of capacity is needed for steady-state usage, but when you need extra capacity, it’s critical to have it available. In an on-prem environment, you need to purchase that extra capacity ahead of time. In the cloud, you can leverage autoscaling to automatically flex to increased capacity only when you need it. 

Compute Engine managed instance groups are what give you this autoscaling capability in Google Cloud. You can scale up gracefully to handle an increase in traffic, and then automatically scale down again when the need for instances is lowered (downscaling). You can scale based on CPU utilization, HTTP load balancing capacity, or Stackdriver Monitoring metrics. This gives you the flexibility to scale based on what matters most to your application. 

High costs do not compute

As we’ve shown above, there are many ways to optimize your Compute Engine costs. Monitoring your environment and understanding your usage patterns is key to understanding the best options to start with, taking the time to model your baseline costs up front. Then, there are a wide variety of strategies to implement depending on your workload and current operating model. 

For more on cost management, check out our cost management video playlist. And for more tips and tricks on saving money on other GCP services, check out our blog posts on Cloud StorageNetworking and BigQuery cost optimization strategies. We have additional blog posts coming soon, so stay tuned!

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