Are You Providing Sufficient Digital Leadership?
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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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Why Apigee: Customers Explain How this API Platform Boosts their Business
Apigee customers Expedia, Equinix, Morningstar, Swisscom, Vantiv, Telstra, Fox Broadcasting company, Laterooms.com and partners, SAP and Accenture share why they joined forces with the intelligent API management platform company.
Apigee is helping customers execute businesses commerce with other partners, securely expose assets to external developer communities, secure APIs throughout the digital value chains, open up new revenue streams and do much more.
Here is A Quick Glance at Who Said What
“Through our partnership with Apigee we have been able to create some really amazing implementations using our APIs to commerce with other partners and other types of content interactions in the marketplace and so far, the response in the market has been outstanding,” says Brad Jaehn, VP, Product GoGo.
“Businesses cannot afford to be on an island. It really is all about the interconnections among businesses. And when you are talking about sharing digital assets, you really are talking about APIs. Apigee is essential to provide a way for sharing of APIs, sharing of those assets between those companies,” says Garrett Vargas, Senior Director of Technology, Expedia.
“We mainly choose Apigee for three reasons. One is their experience in the enterprise market. They could really handle big data amounts for big enterprise customers. Second, their experience in telecom and third they really helped us to securely expose our telecom assets to the external developer community,” Heinz Herren, Head of IT.
“One of the primary reasons we selected Apigee was because it could secure APIs throughout the digital value chain. It offered us access control, authentication control, even versioning of APIs so that our customers are selecting the right APIs. It protects them and their assets as well as our assets, backend systems, and processes. Apigee allowed us to do this not only securely but very quickly. So, we are excited to partner with Apigee on the Equinix cloud exchange,” says Brian Lillie, CIO, Equinix.
“We all talk about user experience. It’s the end thing in Silicon Valley. But what about DevX. Vantiv wants to provide clean, open and standard APIs. To the Apigee powered Vantiv platform, enables our community of developers to innovate much faster. rather than having them discover capabilities by various other providers of commerce services, this one-stop shop Vantiv platform powered by Apigee give a clean, open and standard API layer for all commerce services to our developers,” says Navneet Singh, Senior VP, Product, Vantiv.
Watch this short video to know what else Apigee customers and partners are saying about the platform.
How Experian Transformed its Business by Using APIs
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Chances are, when you think of Experian you think of a traditional credit bureau that provides credit reports. But Experian has transformed into a true technology and software provider. We gather, analyze, and process data in ways that other companies just can’t. Businesses use this data to make smarter decisions about credit and lending, as well as to prevent identity fraud and crime. We’re also able to use this data to help individuals take financial control of their own lives and access all kinds of financial services with products like Experian Boost.
Transforming data delivery, transforming the enterprise
A big part of our digital transformation has been based on our API program. We approached APIs with a concrete goal in mind. We knew exactly how we wanted to transform the business, and we had a set plan to achieve that. For us, this meant establishing an API center of excellence as a first step. It’s sole purpose was to enable the business units to create their APIs quickly and correctly, then apply them properly. We then went out to the business units one by one so that we could train them to build their APIs in a customer-friendly way. We taught them the entire API process of building, giving access to developers internally and externally.
This approach is fundamentally different from previous ones. As far back as the 1990s, our customers connected to us via software applications installed on their systems. As technologies evolved, our services to customers evolved, and we began supporting XML-based transactions and custom integrations with our partners. Some of these integrations actually included VPNs rather than going through HTTP connections. We did custom database schemas, one-off processes, and all kinds of custom development.
This meant that we had a team just for our IT system processes. This team kept growing as Experian continued to acquire new companies. Each acquisition brought a new way of doing integrations and business. We had a real challenge in standardizing development practices, which led to a lot of isolated environments inside the company. We had disparate data repositories and non-standard client conductivity, which hampered innovation.
Responding to customer demand for APIs
When we first started, we had some concrete goals. We wanted to grow our ecosystem, develop a massive reach for transaction and content distribution, power a new business model, and drive innovation. Basically, we wanted to use APIs to transform our business into a platform, and we wanted to build an ecosystem that leveraged this API platform to develop new solutions.
Our leadership also understood the importance of delivering information to our customers in the way they wanted to consume it. Our customers had told us that they didn’t want software, they just wanted access to the data—and APIs are the easiest, most secure way to grant that access.
The Apigee API management platform as an enterprise solution
We knew we needed an API management platform to enable this step forward. In addition to the documentation and discoverability, we also wanted a place to create APIs fast, and where we could get visibility into usage and other metrics. The Apigee API management platform from Google Cloud offered all of this, and more. From the robust feature set to advanced security to the developer portal to analytics – Apigee provides us everything we need to run an enterprise-class API program.
Now that we have our API program up and running, integrations no longer take months. In some cases, it’s just a matter of minutes or seconds. Customers can simply look at our documentation on how to invoke APIs and begin consuming data in seconds. We started with this new model in our three largest markets: North America, the United Kingdom and Brazil. Later, we rolled it out to Singapore and Australia, while deploying an on-premises platform for some of our North American business units that needed to provide their APIs internally only. Next, we went to EMEA. At this point, we’ve deployed Apigee company-wide, giving us a flexible deployment model that maintains a centralized platform and processes.
We continue to evangelize the program today, and we recently conducted a workshop with the Apigee team to train our EMEA business unit and get them onboarded to the platform. They were able to start developing API proxies right away, and they’re set to go into production with as many as nine of them. We also went live with three developer portals, which we call API hubs, in North America, the United Kingdom, and Brazil.
As we expand, we don’t want to keep building up different developer portals for each region because then we’re going to have too many. Alternatively, we plan to combine them into a single global developer portal that will allow users to select geographies of interest where they’ll be presented with relevant information.
Experian continues to evolve the types of products and services we offer. Thanks to Apigee, we have the flexibility, security, and technology to keep innovating and providing value to our business and our customers.
Maximizing Reliability, Minimizing Costs: Right-Sizing Kubernetes Workloads
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Do you know how much money you could save by adjusting workload requests to better represent their actual usage? If you’re not rightsizing your workloads, you might be overpaying for resources that your workloads aren’t even using or worse, putting your workloads at risk for reliability issues due to under provisioning.
As we’ve previously discussed, setting the resources is the most important thing you can do to increase the reliability of your Kubernetes workloads. In this blog we will help you with the second key finding from the State of Kubernetes Cost Optimization report!
The research … found that workload rightsizing has the biggest opportunity to reduce resource waste.
State of Kubernetes Cost Optimization report
According to our research findings, workload rightsizing is the most important golden signal. Workload rightsizing measures the capacity of developers to properly use the CPU and memory they have requested for their applications.
Rightsizing is challenging
It can be quite difficult to predict the resource needs of your applications, which historically has not been a concern for developers in traditional data center environments.In traditional data center environments, resources were typically over-provisioned upfront to ensure capacity for peak demand and future growth, so developers didn’t need to focus on accurately predicting resource needs as they were covered by the excess capacity, whereas in cloud environments, resources are consumed on-demand. Finding a balance between efficiency and reliability can often feel like a delicate balancing act.
Tools for workload rightsizing
There are native tools in Cloud Monitoring and the GKE UI you can use to rightsize your workloads running on GKE.
Rightsizing in the console
The Workload Cost Optimization tab helps you identify workloads that can be optimized by displaying the resources used versus what’s requested.
To take advantage of potential cost savings, you can drill into clusters to see workload level resource recommendations.
To view workload resource recommendations for Deployment objects only:
- In the GKE Cost Optimization.
- Select a cluster.
- Click Workloads > Cost Optimization.
- Select one Deployment workloads
- In the workload’s detail page, select Actions > Scale > Edit Resource Requests
Rightsizing with Cloud Monitoring
Cloud Monitoring provides built-in VPA scale recommendations metrics that you can use to monitor the performance of your workloads and to identify opportunities to rightsize them without the need to create VPA objects.
To view these metrics:
1. Go to the Cloud Monitoring > Metric Explore console.
2. In the Metric dropdown, select the metrics:
- Memory recommendations:
Kubernetes Scale > autoscaler > Recommended per replica request bytes - CPU recommendations:
Kubernetes Scale > autoscaler > Recommended per replica request cores
Rightsizing at scale
If you’re interested in viewing recommendations across clusters and projects, We’ve created a guide that you can use today to help you right-size your GKE workloads at scale. This solution leverages your actual cluster’s metric data and built-in workload recommendations provided by Cloud Monitoring. You can determine the resource requirements for all your workloads without having to create additional VPA autoscaler objects in each of your clusters. The guide walks you through deploying the solution.
In conclusion
In conclusion, rightsizing your workloads is essential for both cost savings and reliability. By following the tips in this blog, you can ensure that your workloads are using the right amount of resources, which will save you money and increase your workload’s reliability.
Links to the solution presented in this blog and other useful tools to help you optimize your cluster are listed below:
- The Right-sizing workloads at scale solution guide
- Setting resource requests: the key to Kubernetes cost optimization
- The simple kube-requests-checker tool
- An interactive tutorial to get set up in GKE with a set of sample workloads
Download the State of Kubernetes Optimization report, review the key findings, and stay tuned for our next blog post.
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Digital is disrupting every industry. From drugstore chains to banks to telcos, businesses are becoming software companies and adopting modern software practices. Why? If they don’t adapt to a new market reality, they will fail.
As the business context is changing so is the technology stack. Enterprise application architectures are evolving from integration-centric enterprise service bus (ESB) architectures to application-centric, microservices, platform-as-a-service (PaaS), multi-cloud, and API-driven architectures.
APIs are the lynchpin to the success of these digital businesses. All applications use APIs to access application services and data through APIs. These services can be microservices or cloud workloads or legacy SOAP services or IoT. To ensure that applications and developers can effectively use these services to build partner, consumer, and internal apps, companies need to deliver secure, scalable, easy-to-use modern APIs.
Over the last few years, we’ve participated in hundreds of enterprises’ API-led digital transformation initiatives. This guide distills our learnings from these customer engagements and shares best practices about managing APIs across the lifecycle.
Gartner found that 77% of app development supporting digital business will occur in-house. Seventy percent of organizations claim to be either using or investigating microservices, and nearly one-third currently use them in production, according to a report from NGINX.
Download the E-book to gain deeper insights into efficient API management.
Quick Recap on Google Cloud: Latest News, Launches, Updates, Events and More
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Want to know the latest from Google Cloud? Find it here in one handy location. Check back regularly for our newest updates, announcements, resources, events, learning opportunities, and more.
Tip: Not sure where to find what you’re looking for on the Google Cloud blog? Start here: Google Cloud blog 101: Full list of topics, links, and resources.
Week of May 24-May 28 2021
- Google Cloud for financial services: driving your transformation cloud journey–As we welcome the industry to our Financial Services Summit, we’re sharing more on how Google Cloud accelerates a financial organization’s digital transformation through app and infrastructure modernization, data democratization, people connections, and trusted transactions. Read more or watch the summit on demand.
- Introducing Datashare solution for financial services–We announced the general availability of Datashare for financial services, a new Google Cloud solution that brings together the entire capital markets ecosystem—data publishers and data consumers—to exchange market data securely and easily. Read more.
- Announcing Datastream in Preview–Datastream, a serverless change data capture (CDC) and replication service, allows enterprises to synchronize data across heterogeneous databases, storage systems, and applications reliably and with minimal latency to support real-time analytics, database replication, and event-driven architectures. Read more.
- Introducing Dataplex: An intelligent data fabric for analytics at scale–Dataplex provides a way to centrally manage, monitor, and govern your data across data lakes, data warehouses and data marts, and make this data securely accessible to a variety of analytics and data science tools. Read more.
- Announcing Dataflow Prime–Available in Preview in Q3 2021, Dataflow Prime is a new platform based on a serverless, no-ops, auto-tuning architecture built to bring unparalleled resource utilization and radical operational simplicity to big data processing. Dataflow Prime builds on Dataflow and brings new user benefits with innovations in resource utilization and distributed diagnostics. The new capabilities in Dataflow significantly reduce the time spent on infrastructure sizing and tuning tasks, as well as time spent diagnosing data freshness problems. Read more.
- Secure and scalable sharing for data and analytics with Analytics Hub–With Analytics Hub, available in Preview in Q3, organizations get a rich data ecosystem by publishing and subscribing to analytics-ready datasets; control and monitoring over how their data is being used; a self-service way to access valuable and trusted data assets; and an easy way to monetize their data assets without the overhead of building and managing the infrastructure. Read more.
- Cloud Spanner trims entry cost by 90%–Coming soon to Preview, granular instance sizing in Spanner lets organizations run workloads at as low as 1/10th the cost of regular instances, equating to approximately $65/month. Read more.
- Cloud Bigtable lifts SLA and adds new security features for regulated industries–Bigtable instances with a multi-cluster routing policy across 3 or more regions are now covered by a 99.999% monthly uptime percentage under the new SLA. In addition, new Data Access audit logs can help determine whether sensitive customer information has been accessed in the event of a security incident, and if so, when, and by whom. Read more.
- Build a no-code journaling app–In honor of Mental Health Awareness Month, Google Cloud’s no-code application development platform, AppSheet, demonstrates how you can build a journaling app complete with titles, time stamps, mood entries, and more. Learn how with this blog and video here.
- New features in Security Command Center—On May 24th, Security Command Center Premium launched the general availability of granular access controls at project- and folder-level and Center for Internet Security (CIS) 1.1 benchmarks for Google Cloud Platform Foundation. These new capabilities enable organizations to improve their security posture and efficiently manage risk for their Google Cloud environment. Learn more.
- Simplified API operations with AI–Google Cloud’s API management platform Apigee applies Google’s industry leading ML and AI to your API metadata. Understand how it works with anomaly detection here.
- This week: Data Cloud and Financial Services Summits–Our Google Cloud Summit series begins this week with the Data Cloud Summit on Wednesday May 26 (Global). At this half-day event, you’ll learn how leading companies like PayPal, Workday, Equifax, and many others are driving competitive differentiation using Google Cloud technologies to build their data clouds and transform data into value that drives innovation. The following day, Thursday May 27 (Global & EMEA) at the Financial Services Summit, discover how Google Cloud is helping financial institutions such as PayPal, Global Payments, HSBC, Credit Suisse, AXA Switzerland and more unlock new possibilities and accelerate business through innovation. Read more and explore the entire summit series.
- Announcing the Google for Games Developer Summit 2021 on July 12th-13th–With a surge of new gamers and an increase in time spent playing games in the last year, it’s more important than ever for game developers to delight and engage players. To help developers with this opportunity, the games teams at Google are back to announce the return of the Google for Games Developer Summit 2021 on July 12th-13th. Hear from experts across Google about new game solutions they’re building to make it easier for you to continue creating great games, connecting with players and scaling your business. Registration is free and open to all game developers. Register for the free online event at g.co/gamedevsummit to get more details in the coming weeks. We can’t wait to share our latest innovations with the developer community. Learn more.
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