If you’re self-managing relational databases such as MySQL, PostgreSQL or SQL Server, you may be thinking about the pros and cons of cloud-based database services. Regardless of whether you’re running your databases on premises or in the cloud, self-managed databases can be inefficient and expensive, requiring significant effort around patching, hardware maintenance, backups, and tuning. Are managed database services a better option?

To answer this question, Google Cloud sponsored a business value white paper by IDC, based on the real-life experiences of eight Cloud SQL customers. Cloud SQL is an easy-to-use, fully-managed database service for running MySQL, PostgreSQL and SQL Server workloads. More than 90% of the top 100 Google Cloud customers use Cloud SQL.

The study found that migration to Cloud SQL unlocked significant efficiencies and cost reductions for these customers. Let’s take a look at the key benefits in this infographic.

A deeper dive into Cloud SQL benefits

To read the full IDC white paper, you can download it here: The Business Value of Cloud SQL: Google Cloud’s Relational Database Service for MySQL, PostgreSQL, and SQL Server, by Carl W. Olofson, Research Vice President, Data Management Software, IDC and Matthew Marden, Research Vice President, Business Value Strategy Practice, IDC.

Looking for commentary from IDC? Listen to the on-demand webinar, How Enterprises Have Achieved Greater Efficiency and Improved Business Performance using Google Cloud SQL, where Carl Olofson discusses the downsides of self-managed databases and the benefits of managed services like Cloud SQL, including the cost savings and improved business performance realized by the customers interviewed in the study.

Getting started

You can use our Database Migration Service for an easy, secure migration to Cloud SQL. Since Cloud SQL supports the same database versions, extensions and configuration flags as your existing MySQL, PostgreSQL and SQL Server instances, a simple lift-and-shift migration is usually all you need. So let Google Cloud take routine database administration tasks off your hands, and enjoy the scalability, reliability and openness that the cloud has to offer.

Start your journey with a Cloud SQL free trial.

Earlier this year, we launched the Google Cloud skills challenge, which provides 30 days of free access to training to build your cloud knowledge and an opportunity to earn skill badges that showcase your Google Cloud competencies. Today, we’re adding a Native App Development track to the skills challenge, joining the Getting Started, Data Analytics, Kubernetes, Machine Learning (ML) and Artificial Intelligence (AI) tracks. 

The Native App Development track is designed for cloud developers who want to learn to build serverless web apps and Google Assistant applications on Google Cloud using Cloud Run and Firebase. Specifically, you’ll have an opportunity to earn three skill badges in the Native App Dev track: Serverless Firebase Development, Serverless Cloud Run Development, and Build Interactive Apps with Google Assistant. To earn a skill badge, you complete a series of hands-on labs and take a final assessment challenge lab to test your skills.

Here’s an overview of each badge.

Serverless Firebase Development

To earn this skill badge, you’ll learn how to build serverless web apps, import data into a serverless database, and build Google Assistant applications using Firebase, Google’s backend-as-service platform for creating mobile and web applications.

Serverless Cloud Run Development

For this badge, you’ll discover how to use Cloud Run, a fully managed serverless platform, to connect and leverage data stored in Cloud Storage. You’ll learn how to use Cloud Run to build a resilient, asynchronous system with Pub/Sub, build a REST API gateway as well as build and expose services. 

Build Interactive Apps with Google Assistant

To earn the final skills badge, you’ll build Google Assistant applications by creating a project in the Actions console, integrating Dialogflow, testing your action in the Actions simulator, and adding Cloud Translation API to your assistant application. 

Ready to jump into the skills challenge? Sign up here. 

You can also check out this quick video below to learn how to join the skills challenge.

Japan is home to millions of vending machines installed on streets and in buildings, sports stadiums and other facilities. Vending machine owners and operators, including beverage manufacturers, stock these machines with different product combinations depending on location and demand. For example, they primarily display coffee and energy drinks in machines placed in offices and sports drinks and mineral water in machines at sports facilities. The combinations also vary by season: for example, owners and operators may display cold beverages in summer and hot beverages in winter. 

Traditionally, vending machine operators have relied on the intuition and experience of sales managers to determine the optimum product mix for each vending machine. However, in recent years, manufacturers such as Coca-Cola Bottlers Japan (CCBJ) have turned to data to analyze and make strategic decisions about when and where to locate products in machines.

CCBJ is the number one Coca-Cola bottler in Asia and vending machines comprise the bulk of its business. The organization operates about 700,000 machines across Tokyo, Osaka, Kyoto, and 35 prefectures. Minori Matsuda, Google Developer Expert and also Data Science Manager at CCBJ, says “The billions of data records collected from 700,000 physical devices are a great asset and a treasure trove we can take advantage of.”

Minori points out that when considering the mix of products in vending machines in sporting facilities, the managers naturally assume sports drinks would generally sell well. However, analysis of purchase data – including hot drinks and hot drinks plus sports drinks – found many parents purchased sweet drinks such as milk tea when they attended games or sessions involving their children.  “Analyzing data gives us new discoveries and, by using catchy storytelling techniques from exploratory data analysis, we are instilling a data culture within our company,” he says. “It’s worth creating by looking at facts rather than making assumptions!”

Minori believes that to analyze the vast amount of data collected from more than 700,000 vending machines, the business needs a powerful analytical platform. However, until recently, CCBJ had to extract data for analysis from its core systems, load this data into a warehouse it created and perform the required analyses.  The billions of records of data generated across the fleet – including transaction data – exposed some challenges for traditional analysis platforms. They could not efficiently process data at a considerable scale: it could take a day to return results and required extensive maintenance due to the size.

CCBJ considered building a machine learning (ML) platform as a layer on top of existing systems in August 2020 and opted for Google Cloud the following month.  “I feel that Google Cloud has an edge in all products and is very well thought out,“ says Minori, noting the scalability and cost of the platform allow the business to take a ‘trial and error’ approach to achieve the best outcomes from ML. Google Cloud also delivered the required visibility and flexibility to help the business deliver change every day against key performance indicators. 

MLOps platform streamlines ML pipeline development

CCBJ built its analysis platform using Vertex AI (formerly AI Platform) centered on a BigQuery analytics data warehouse, and partly using AutoML for tabular data. “We have created a prediction model of where to place vending machines, what products are lined up in the machines and at what price, how much they will sell, and implemented a mechanism that can be analyzed on a map,” says Minori, adding that building the platform with Google Cloud was not difficult. “We were able to realize it in a short period of time with a sense of speed, from platform examination to introduction, prediction model training, on-site proof of concept to rollout.”

The new data analytics platform of CCBJ consists of the following parts:

Data Sources

• The data collected from the vending machines are all stored on BigQuery.

Data Discovery and Feature Engineering

• Minori and other data scientists at CCBJ are using Vertex Notebooks, where they access the data on BigQuery by executing SQL queries directly from the Notebooks. This environment is used for the data discovery process and feature engineering. 

ML Training

• For ML training, CCBJ uses AutoML for Tabular data, Custom model training on Vertex AI, and BigQuery ML. AutoML gives model performance with AUC curves and also feature importance graphs.

ML Prediction and Serving

• For ML prediction, CCBJ uses Online Prediction for AutoML models and Online Prediction for custom models for real-time prediction when the salesperson finds the interesting point
• Batch Prediction is used for generating a large prediction map that covers the whole country
• The prediction results are distributed to sales managers’ tablets

CCBJ started constructing the platform in September 2020, and completed it within a month. The business has conducted proofs of concept at its base in Kyoto since February 2021, and since April, has rolled out the platform to sales managers in 35 prefectures in one metropolitan area. “Data analysis is built into the day-to-day routines of sales managers with 100% utilization,” says Minori. “They can utilize the prediction results on tablets that were able to achieve pretty high accuracy from the start.”

The hardest part was the education of sales managers in the field; having them understand the reasoning behind the ML prediction results for particular outcomes, so they could be convinced to make use of the results. “For example, regarding a new installation location predicted by the model, it seemed that there was no effective information for installation from the map information, but when I actually went there, there was a motorcycle shop and it was a place where young people who like motorcycles gathered,” says Minori. “Or there is a small meeting place where the elderly in the neighborhood are active. 

“In many cases, new discoveries that cannot be understood from map information alone can be derived from the data.”

Minori also points to a phenomenon whereby humans pursued and confirmed factors inferred by the model – meaning that once they experienced analysis and it worked effectively, they asked why the same type of analysis or prediction could not be undertaken next time. The resulting cycle of more inquiries generated, more information gathered and more data captured for analysis meant the accuracy of results was improved.

Minori describes Vertex AI as having a number of strengths in helping CCBJ build a ML data analysis platform. “One of the major merits of Vertex AI was that we were able to realize MLOps that streamlines the entire development life cycle from construction of the ML pipeline to its execution,” he says.

With near real-time data analysis through Google Cloud, CCBJ teams can spend time developing strategies rather than waiting for data requested from the IT systems department. Exploratory data analysis is also considerably easier as repeated trial and error has greatly improved the accuracy of analyses. Before we used Machine Learning, most machine placement processes were done by human senses, by looking at a map to find the suggestion points. By using Machine Learning to generate a massive number of placement point suggestions, the efficiency of routing of salespeople has been dramatically improved. 

In the future, CCBJ aims to automate the continuous training pipeline with Vertex AI. “CCBJ is a tech company that operates in the food industry,” says Minori. With the organization operating a vending machine network of 700,000 units, it would like to create new businesses based on utilization and analyzing data. Some of these businesses may be based on Sustainable Development Goals (SDGs) initiatives such as the utilization of recycled PET bottles, measures to prevent food loss and ways of using vending machines to contribute to local communities, which we have been working on for some time. It would be interesting if we could collaborate with Google Cloud on these in the future.”

Over 2.14 billion people worldwide are expected to buy online this year, according to Statista. Online retail sales will account for 22% of all purchases by 2023. But in a competitive retail landscape, positive interactions can mean the difference between a sale and an abandoned shopping cart.

One of the leading global marketplaces – Kinguin.net is a haven for gamers. Their bustling ecommerce business conducts over 500,000 new transactions monthly. Users will encounter over 50,000 unique digital products, from video games, gift cards, in-game items to computer software and services. With over 10 million registered users, Kinguin improved their experience by helping users find items quickly and deliver service at scale.

Helping customers find what they want, fast

Because of Kinguin’s high volume of users—both buyers and sellers—and breadth of digital products, browsing and shopping can be challenging. “Customers shop online for choice and convenience, but it can sometimes be overwhelming. We want anyone who shops at Kinguin to find what they are looking for quickly and easily,” says Viktor Romaniuk Wanli, Kinguin CEO and Founder.

Today’s retailers know that creating personalized shopping experiences is crucial for establishing and maintaining customer loyalty. Kinguin discovered their users were getting a rather standard retail experience. They wondered how they could offer them a more tailored, personalized experience.

They knew product recommendations were a great way to personalize experiences because they help customers discover products that match their tastes and preferences. But it’s not that easy to recommend products. Various shifting factors make recommendations much more complex:

• Customer behavior. Understanding customers is tough. How do you recommend something to a cold start user who’s never been to your site before? What happens when their behavior changes?
• Omnichannel context. According to Harvard Business Review, 73% of all customers use many channels when they buy. What happens when they go from desktop to mobile or from social media shopping to a proprietary app?
• Product data challenges. How do you recommend new products within a large catalog of items? What if your product data has sparse labeling or unstructured metadata?

Data wasn’t a problem for Kinguin. They had data orders, history, wishlists, and could collect events based on their platform interactions. It was the machine learning model expertise they lacked. So rather than building their own solution, they determined it was more cost effective for them to find a reliable partner. It was also essential that the solution integrated easily with Kubernetes, which enabled their global network.

With these considerations in mind, they applied for the Google Recommendations AI beta program. Kinguin became the first gaming e-commerce platform in Europe to use Recommendations AI when it launched in 2020.

Pro gamer move: using a fully managed AI service 

Google Recommendations AI uses algorithms to deliver highly personalized suggestions tailored to a customer’s preferences. Google Cloud based these algorithms on the same research that powers models by YouTube search and Google Shopping. Algorithms are always being tuned and adjusted to focus on individuals themselves—not just items.

Many shopping AIs rely on manually provisioning infrastructure and training machine learning models. Instead, Recommendations AI’s deep learning models use item and user metadata to gain insights. It processes Kinguin’s thousands of products at scale, iterating in real time. First, Kinguin pieces together a customer’s history and shopping journey. Then, using Recommendations AI, they can serve up personalized products—even for long-tail products and cold-start users. 

By leveraging internal tools, Kinguin didn’t need to start implementation from scratch. After a few trial sessions with Google Cloud engineers, they got started right away. Due to the fast-paced nature of a marketplace—i.e., price changes, out-of-stock items—Kinguin needed their recommendations to be as close to real time as possible. They used internal event buses to stream events and their product catalog directly to the recommendations API.

Kinguin rolled out in high-traffic areas, including their home page, product page, and category pages. They analyzed heat maps and scroll maps to figure out where to test placements. They also experimented with different recommendation models such as “recently bought together” and “you may like.” Engineers also factored in where they were implementing the models. For example, the “others you might like” model would fit best on the homepage, while “frequently bought together” made sense at checkout.

Understanding how product recommendations influence financials is critical for demonstrating the impact of personalization. Using BigQuery, Kinguin could analyze different cost projection models. BigQuery helped them dig into specific financial data to understand their margins and revenue gains.

Playing to win: enhanced customer experience

Since adopting Recommendations AI, Kinguin has improved both customer experience and satisfaction. Search times have shortened by 20 seconds. Additionally, their average cart value has increased by 5 EUR. Conversion rates have quadrupled since the outset. Click-thru rates have doubled, increasing by 2.16 on product pages and 2.8 times on recommendations pages.

“Google Recommendations AI has helped us evolve our service, increase customer loyalty and satisfaction. It has also contributed to a significant rise in sales,” says Wanli. Kinguin is already thinking about other ways of enhancing user experiences with recommendations. Ideas include their checkout process, other landing pages, and email marketing.

Kinguin’s journey with Google Cloud shows how companies can leverage AI to optimize sales and deliver high-performing, low-latency recommendations to any customer touchpoint. 

Learn more about Recommendations AI and Google Cloud AI and machine learning solutions.