Operational resilience continues to be a key focus for financial services firms. Regulators from around the world are refocusing supervisory approaches on operational resilience to support the soundness of financial firms and the stability of the financial ecosystem. Our new white paper discusses the continuing importance of operational resilience to the financial services sector, and the role that a well-executed migration to Google Cloud can play in strengthening it. Here are the key highlights: 

Operational resilience in financial services

Financial services firms and regulators are increasingly focused on operational resilience, reflecting the growing dependency that the financial services industry has on complex systems, automation and technology, and third parties. 

Operational resilience can be defined as the “ability to deliver operations, including critical operations and core business lines, through a disruption from any hazard”¹. Given this definition, operational resilience needs to be thought of as a desired outcome, instead of a singular activity, and as such, the approach to achieving that outcome needs to address a multitude of operational risks including: 

• Cybersecurity: Continuously adjusting key controls, people, processes and technology to prevent, detect and react to external threats and malicious insiders.
• Pandemics: Sustaining business operations in scenarios where people cannot, or will not, work in close proximity to colleagues and customers.
• Environmental and Infrastructure: Designing and locating facilities to mitigate the effects of localised weather and infrastructure events, and to be resilient to physical attacks.
• Geopolitical: Understanding and managing risks associated with geographic and political boundaries between intragroup and third-party dependencies.
• Third-party Risk: Managing supply chain risk, and in particular of critical outsourced functions by addressing vendor lock in, survivability and portability.
• Technology Risk: Designing and operating technology services to provide the required levels of availability, capacity, performance, quality and functionality. 

Operational resilience benefits from migrating to Google Cloud

There is a growing recognition among policymakers and industry leaders that, far from creating unnecessary new risk, a well-executed migration to public cloud technology over the coming years will provide capabilities to financial services firms that will enable them to strengthen operational resilience in ways that are not otherwise achievable.  

Foundationally, Google Cloud’s infrastructure and operating model is of a scale and robustness that can provide financial services customers a way to increase their resilience in a highly commercial way.

Equally important are the Google Cloud products, and our support for hybrid and multi-cloud, that help financial services customers manage various operational risks in a differentiated manner:

• Cybersecurity that is designed in, and from the ground up. From encryption by default, to our Titan security chip, to high-scale DOS defences, to the power of Google Cloud data analytics and Security Command Center our solutions help you secure your environment.
• Solutions that decouple employees and customers from physical offices and premises. This includes zero-trust based remote access that removes the need for complex VPNs, rapidly deployed customer contact center AI virtual agents, and Google Workspace for best-in-class workforce collaboration.
• Globally and regionally resilient infrastructure, data centers and support. We offer a global footprint of 24 regions and 73 zones allowing us to serve customers in over 200 countries, with a globally distributed support function so we can support customers even in adverse circumstances.
• Strategic autonomy through appropriate controls. Our recognition that customers and policymakers, particularly in Europe, strive for even greater security and autonomy is embodied in our work on data sovereignty, operational sovereignty, and software sovereignty.
• Portability, substitutability and survivability, using our open cloud. We understand that from a financial services firm’s perspective, achieving operational resilience may include solving for situations where their third parties are unable, for any reason, to provide the services contracted.
• Reducing technical debt, whilst focusing on great financial products and services. We provide a portfolio of solutions so that financial services firms’ technology organisations can focus on delivering high-quality services and experiences to customers, and not on operating foundational technologies such as servers, networks and mainframes.

Google Cloud Results

• Improves performance and reliability, enabling Pantheon to serve larger customers
• Supports 99.95% uptime across 200,000+ websites
• Reduces cloud infrastructure costs by 40%
• Enables future analytics offerings based on machine learning and big data analytics

Nearly every business needs a web presence—but the vast majority of companies don’t want to be involved in the technical aspects of coding, deployment, hosting, security, and scaling websites. To stay focused on the business value and creative aspects of their websites and avoid managing infrastructure, thousands of companies turn to Pantheon, a website operations and hosting platform that powers over 200,000 websites.

Pantheon promises its customers speed, reliability, and scalability plus world-class collaboration and workflow tools. For five years, the company was able to deliver high service levels in all three areas running its platform on bare-metal virtual cloud servers. However, as its business grew, network links began to saturate under heavy load, risking instability. As Pantheon’s business evolved to focus on servicing some of the largest websites in the world, the company wanted to partner with a more innovative cloud services provider.

“We wanted a partner that could give us what we offer to our own customers: the flexibility to scale smoothly and consume services without building them from scratch,” says David Strauss, CTO, Pantheon. “It was time to move beyond custom containers on managed VMs and extend our cloud strategy to include next-generation technologies for container management and analytics.”

Pantheon evaluated several leading cloud providers and determined that Google Cloud Platform would be the best fit for its business and customers. Engineering had the final say, running a battery of functionality and performance tests at the storage, database, and web server layers.

“In every test our engineers did, Google Cloud Platform came in as better, faster, and more cost effective than the competition,” says Niall Hayes, COO, Pantheon. “We compared MariaDB to Google Cloud SQL and Cassandra to Google Bigtable, and container density improved from 250 to 400 containers per server.”

Migrating 200,000+ sites in 2 weeks

Pantheon wanted to make the transition transparent to its customers, so a fast and smooth migration to Google Cloud Platform was essential. With help from Google, Pantheon completed the migration quickly and moved 500TB of databases, code, and files with zero customer impact.

“We migrated over 200,000 websites to Google Cloud Platform in 2 weeks, including 50,000 that are heavily trafficked and actively developed, and nobody noticed,” says Josh Koenig, Co-founder and Head of Products at Pantheon. “The speed was incredible. There was no downtime, and we filed no additional support tickets with Google during the entire process.”

The platform for platforms

For its content management system runtime environment, Pantheon runs its own homegrown container management technology on Google Compute Engine. To automate scaling for other core services such as its routing layer and distributed file system, it uses Google Kubernetes Engine for cluster management and orchestration.

“Google is the clear leader in Kubernetes and container management, which aligns very well with our open source values and our vision for the future,” says Niall. “With Google Kubernetes Engine we get better resource efficiency, and automated operations and autoscaling take a lot of administration off our plate.”

In addition to smooth scaling, Pantheon and its customers benefit from improved performance and reliability thanks to the high-quality private network offered by Google.

Further, the Google partnership with Fastly enables direct connectivity to Google Cloud Platform to improve performance for edge caching. As a result of these improvements, Pantheon raised its availability service level agreement (SLA) from 99.9% to 99.95% and can now take on even larger customers.

“Google’s network topology, both locally and globally, performs better and more reliably than competing solutions, making Google Cloud Platform the best choice for us and for our customers,” says David. “Google beats any other cloud provider as the best platform-for-platforms.”

Adds Josh: “Google has unbelievable technology around persistence and replication between zones and regions, and that is not something we could find anywhere else. This allows us to offer advanced disaster recovery and failover services to our customers.”

Strengthening customer relationships

Pantheon uses Google BigQuery, a fully managed, cloud-based data warehouse, to integrate with Fastly and analyze website traffic on behalf of its customers. Previously, Pantheon was unable to ingest edge data quickly enough from Fastly, limiting its ability to identify issues and provide the best customer service. Today, Fastly streams logs in real time into Google BigQuery for analysis, giving Pantheon a wealth of insights.

“We use Google BigQuery to identify customers that have outgrown their infrastructure or need to right-size for business growth,” says David. “We can have proactive conversations and add a lot of value to the relationships. Soon, we plan to make Google BigQuery available to our customers so they can better understand their own traffic.”

Adds Niall: “Google Cloud Platform is more data-oriented than other cloud providers, making it a better match for our needs and our customers’ strategic initiatives.”

Integrated, granular security

Pantheon appreciates that Google Cloud services are built for public cloud, with granular security as a core design and development requirement. Employees simply use their G Suite credentials to gain access to Google Cloud Platform infrastructure and services.

“We’ve been a G Suite shop for years because of the paperless collaboration benefits,” says Josh. “G Suite connects our distributed company, and it was very natural to use those same logins for Google Cloud Platform.”

Staying competitive and productive

Moving to Google Cloud Platform opens up new possibilities for services Pantheon can offer to customers in the future, including machine learning and big data analytics, to give them a more complete view of how digital experiences are driving their businesses. Internally, engineers can move faster, do more effective capacity planning, and provide better service as Pantheon moves its products upmarket.

Pantheon expected to save 20% on cloud infrastructure costs by moving to Google Cloud Platform, but was able to double that savings with resource optimization and managed services.

“Since moving to Google Cloud Platform, our platform is more secure, reliable, and scalable than ever. We reduced our cloud infrastructure costs by 40%, and our customers’ sites run 45% faster than industry benchmarks,” says Niall. “Our engineers are Google fans for a reason—they’re happier, more efficient, and more productive on Google Cloud Platform.”

As lead for analytics and AI solutions at Google Cloud, my team works with startups building on Google Cloud. This puts us in the fortunate position to learn from founders and engineers about how early-stage startups’ investments can either constrain them or position them for success, even at the seed level. In this post, I want to share a few of the best practices to keep in mind as you’re building. 

Understand your value proposition before diving into a technology stack

If you’re launching a startup in the cloud, you’re no doubt thinking about a technology stack, but it’s important to step back a bit and think carefully about the major value proposition that your startup offers to your customers. That value proposition is going to fundamentally drive the kind of technology that you should pick.

For example, does your system need processing in real time, or can it be done in a batch mode? Can you rely on once-a-day insights or do the insights have to come in as events happen?

Additionally, what kind of latency will your customers face? That latency makes your value proposition either usable or unusable. Early on in Google’s development, leaders realized that no one was going to wait more than a few hundred milliseconds for a web page to show them their results, and that realization drove the technology decisions that have allowed Google to scale from being a startup in a garage to being a trillion dollar company. Your startup needs to define its value to customers with this level of specificity before it can build a technology stack suited to its needs. 

Focus on customer interactions

A few companies have gracefully pulled off big IT pivots that reshaped their value proposition. Netflix, for example, moved from mostly sending DVDs through the mail to becoming a streaming service and major content producer. That’s a huge shift in the user experience and the technology stack necessary to support it, even if the underlying value proposition (i.e., get content to customers) was broadly the same. But it’s also an outlier. If you’re planning for potential changes of this magnitude, rather than focused on getting your value proposition to users, you probably need to sharpen what that value proposition is.

Specifically, you need a clear vision of how customers will access and interact with your business. Typically, they’ll do so over a website or a mobile app, but there are still so many variables. 

Are customers going to transmit documents? If so, in what format? Is handwriting supported or is input limited to typing? Can they use images for optical character recognition? Will it mostly be forms? Will the data be structured or unstructured? If all that sounds  a little overwhelming, don’t worry, it’ll seem simpler by the end of this article—but also be aware: we’re just getting warmed up.

Imagine that most of your customers will access your business via voice, so you know you’ll want to prioritize conversational workflows. That’s a start—but dig deeper.  Even if we suppose you’re usingDialogflow, a Google Cloud conversational AI platform that lets you build and deploy virtual agents, we’re still not really seeing the value proposition.  How will all this work, from the beginning of a typical full customer interaction to the resolution? How many interactions will have to be facilitated over low-bandwidth connections, for example? When it comes to user interactions, make sure you can see an end-to-end use case.

Another example: you’re building a retail website, and one of your end-to-end use cases involves the customer asking if a certain amount of a given product is in stock, whether it’s one unit of the product, ten or hundreds. If the product is not sufficiently stocked, you want your app to offer similar items that are. Will your technology stack support this end-to-end use case?

These considerations are not an argument for premature optimization. There’s value in moving fast, getting minimum viable products to users, and then iterating. But in the early stages, you only get one chance to start on the right foot—and how you navigate that chance will influence a lot of dollars and effort down the road. You need to make sure you have business use cases, not just an idea, before you can start designing a technology stack.  

Here’s how to get in the right frame of mind. Pick three use cases: two that are “bread and butter” and one that is technologically complex.  Make sure your proposed technology stack can support all three, end to end. 

Default toward higher levels of abstraction

Now that we’re in the right frame of mind, we’re ready to think about the technology stack more directly. 

As a startup, you’ll need to conserve resources, and to do that, you’ll want to build at the highest level of abstraction possible for your value proposition. For example, you probably don’t want your people setting up clusters. You don’t want them configuring things if they can use a fully managed service. You want them focused on building your prototype, not managing infrastructure.

This focus has definitely informed how we create products at Google Cloud, as our canonical data stack—Pub/Sub, Dataflow, BigQuery, and Vertex AI—consists of auto-scaling and serverless products.

But management of infrastructure is not the only place where you should err toward a less-is-more philosophy. 

When it comes to architecture, choose no-code over low-code and low-code over writing custom code. For example, rather than writing ETL pipelines to transform the data you need before you land it into BigQuery, you could use pre-built connectors to directly land the raw data into BigQuery. That’s no code right there. Then, transform the data into the form you need using SQL views directly in the data warehouse. This is called ELT, and it is low code. You will be a lot more agile if you choose an ELT approach over an ETL approach. 

Another place is when you choose your ML modeling framework. Don’t start with custom TensorFlow models. Start with AutoML. That’s no-code. You can invoke AutoML directly from BigQuery, avoiding the need to build complex data and ML pipelines. If necessary, move on to pre-built models from TensorFlow Hub, HuggingFace, etc. That’s low-code. Build your own custom ML models only as a last resort.

Focus on getting your vision to market, not chasing technology hype  

The goal is to pick the right technology stack for bringing your vision to market, generating value for customers, conserving resources, and maintaining flexibility for growth. Early IT investments should usually gravitate toward things that preserve flexibility, such as managed services built on standard protocols or open APIs, but they needn’t always rush to the flashiest technologies.  The answer isn’t always ML, for example. The answer might be heuristics to start, with a path to ML once you have collected enough data. You want to make sure that your intelligence layer has enough abstraction so you can mark it up with simple rules at first, but then replace it with a more robust system as you go along. 

Launch and iterate fast with these principles 

The preceding discussion is a reminder that your most expensive resource is your people—and that you really want them to be focused on building your prototype, minimum viable product or production app  You want to launch fast and iterate fast, and the only way you can do that is by focusing on the things that differentiate you. 

But regardless of the technologies you use, the bottom line is the same: follow these four principles. 

• Figure out your major value proposition and design your tech stack around it. 
• Be very careful about user interactions. User experience is super important; you need to make sure you deliver the kind of experience that your customers have grown to expect.
• When you’re building, pick the highest possible level of abstraction possible—the most fully managed tools and no-code/low-code frameworks that give you the functionality that you need. 
• Instead of choosing new or flashy technologies, consider if you can build a “good enough” minimum viable product quickly and come back to a better implementation later. 

To learn more about why startups are choosing Google Cloud, click here.