The music industry is rapidly changing. Only 20 years ago, the availability of music and the infrastructure that was required to make an album a sales success were incredibly complex and expensive. With the decline of physical sales and a fundamental shift to digital, music streaming now accounts for more than half of all sales globally.

At the same time, technology has democratized music-making; in many ways, it has made the musical landscape more diverse. Artists can upload their music with the click of a button. But while it’s easier for creators to share their songs with audiences, getting paid has become more fragmented.

Although music is booming, people no longer buy it outright. Instead, listeners download music digitally or subscribe to streaming services to have their libraries with them at all times. To monetize digital content effectively, artists need to know when, where, and how often their songs are played on each service. To help them navigate this complicated royalties landscape and maximize their profits, Berlin-based international music company BMG provides customized, transparent, and fair services to songwriters and artists.

With publishing and recording divisions under one roof, the subsidiary of international media giant Bertelsmann works with both emerging artists and established stars, including John Legend, Kylie Minogue, Mick Jagger, and Keith Richards. With the MyBMG web and mobile application, clients can view and analyze their royalty details in real time and collect payment. When a new record is released, BMG uses data to maximize its impact and revenue for its creators.

“We make sure that everyone who uses our clients’ music knows who needs to be paid the associated royalties, then we collect these royalties and share them out quickly and transparently,” explains Sebastian Hentzschel, Chief Information Officer at BMG. “When our artists release new music, we make sure that it’s marketed and promoted effectively around the world.”

“We needed a scalable solution for our royalty workloads that was intuitive for our developers. We also wanted a partner, not a client-vendor relationship. With autoscaling via BigQuery, excellent customer support, and a clean and simple user interface, Google Cloud ticks every box for us.”

—Gaurav Mittal, Vice President Group Technology, BMG

Getting up to speed with a new way of paying artists

In this digital world, artists aren’t just paid every time a fan buys an album—they’re paid a small amount, or royalty, for each song downloaded or streamed by a listener. So, when the industry shifted to digital, the volume of data that BMG needed to handle grew exponentially. “One CD sale is equivalent to about 1,500 streamed songs or plays,” says Gaurav Mittal, Vice President Group Technology at BMG. “That means IT departments have to process 1,500 times the amount of data to calculate payments for artists, and this makes scalable micropayment processing very important.”

Until 2019, BMG’s infrastructure was entirely hosted on-premises. Hardware limitations made it challenging to scale on-demand, making it harder to handle the data peaks that royalty processing can bring. “With our on-premises infrastructure, we were going to hit a ceiling in a few years,” says Gaurav. “We still managed to process royalty payments for our clients, but it was increasingly time consuming and expensive. To keep focusing on our clients, rather than our infrastructure, we decided to migrate to Google Cloud.”

From the outset, Gaurav and his team had a clear vision for the partnership: “Most importantly, we needed a scalable solution for our royalty workloads that was intuitive for our developers. We also wanted a partner, not a client-vendor relationship,” he says. “With autoscaling via BigQuery, excellent customer support, and a clean and simple user interface, Google Cloud ticks every box for us.”

Keeping artists happy with business-as-usual payouts during migration

To move applications to the cloud while keeping payment cycles on track for its artists, BMG teamed up with Google Cloud partner Rackspace Technology. “We selected Rackspace Technology because it combines strong technical muscle and a global footprint, with the customer service of a local boutique firm,“ shares Gaurav.

BMG’s own technology team put together the outline for the Google Cloud architecture, which they passed on to Rackspace Technology for optimizations and the ultimate stamp of approval. Whenever Gaurav and his developers needed support, Rackspace Technology was ready to go. “So far, we’ve migrated 17 applications successfully, and Rackspace Technology has been 100% spot-on with each suggestion,” says Gaurav. “I can’t recall a single flaw in a Rackspace Technology-approved architecture, and that really says something.”

When BMG began its migration in August 2019, the team developed an ambitious two-year plan. Only 14 months later, however, the project is more than 75% complete. Among the solutions that BMG is using today are Cloud Storage to securely store 130 TB of data, and Cloud SQL as its standard database technology. The web applications run on Compute Engine, App Engine, and Google Kubernetes Engine.

“After successfully moving a few applications, it was clear that with the strong teamwork of BMG and Rackspace Technology, together with the ease of use of Google Cloud, we could speed up the project without sacrificing quality,” says Gaurav. “We’re set to complete our migration six months before schedule, helping us to quickly move out of our hybrid environment.”

“Our income-tracking teams are very savvy on the data, and the simplicity of Google Cloud empowers them to self-serve analytics, rather than wait for IT. Our teams are much more productive.”

—Gaurav Mittal, Vice President Group Technology at BMG

Royalty reporting and processing with BigQuery and Dataproc

So far, all of BMG’s critical workloads are up and running on Google Cloud. Royalty calculations, for example, which require incredible processing power and the collection of many micropayments to ensure full and timely payout, run entirely on Dataproc with output stored on BigQuery for downstream integration and reporting.

Enabling more harmonious workflows through self-serve analytics

As the new beating heart of BMG’s royalty reporting, BigQuery changed the rhythm of collaboration company-wide. In the past, income tracking teams had to contact IT departments if they needed deeper data insights for their work. By integrating Data Catalog with BigQuery, BMG has made the data more accessible to all teams. This helps them detect missing income and new revenue streams independently, maximizing profits for artists.

“Our income-tracking teams are very savvy on the data, and the simplicity of Google Cloud empowers them to self-serve analytics, rather than wait for IT,” says Gaurav. “Our teams are much more productive.”

“Google Cloud enables us to be more client focused and deliver better features faster. We believe it’s just the beginning. We offer rights and royalty services for music publishing, recorded music, neighboring rights, and books. Without scalability limitations, it’s absolutely conceivable to offer our platform as a service to other companies or industries, such as gaming. Google Cloud has opened a world of possibilities.”

—Sebastian Hentzschel, Chief Information Officer, BMG

With a leaner IT environment, BMG can focus its effort on the needs of its clients. Beyond improvements in royalty processing, it can concentrate on app development, releasing new features and enhancements more frequently. By hosting applications on Google Kubernetes Engine, App Engine, and Compute Engine, BMG has built a CI/CD pipeline with automated deployments and testing to significantly speed up workflows.

“In our old system, it could take several weeks to set up an environment,” says Gaurav. “With Google Kubernetes Engine, any of our developers can complete the process in a few clicks. Having that autonomy makes our developers more motivated and self-driven.”

“Google Cloud enables us to be more client focused and deliver better features faster,” adds Sebastian. “We believe it’s just the beginning. We offer rights and royalty services for music publishing, recorded music, neighboring rights, and books. Without scalability limitations, it’s absolutely conceivable to offer our platform as a service to other companies or industries, such as gaming. Google Cloud has opened a world of possibilities.”

With the migration almost complete, BMG is looking forward to its next technology project. It plans to leverage AutoML to further scale and automate royalty tracking with machine learning. On the marketing side, advanced analytics will help BMG determine the effectiveness of promotional campaigns around the world, further increasing profits for artists. By connecting Google Data Studio to BigQuery, BMG will increase the quality of its analyses, helping musicians better understand the reach of their music around the world.

In the end, Gaurav shares, helping musicians is what it all comes down to. “We’re a new kind of music company because we build our services around our artist, songwriter, and publisher clients, not the other way around,” he says. “Google Cloud is helping us maintain strong relationships with our clients, and that’s music to our ears.”

As the volume of data that people and businesses produce continues to grow exponentially, it goes without saying that data-driven approaches are critical for tech companies and startups across all industries. But our conversations with customers, as well as numerous industry commentaries, reiterate that managing data and extracting value from it remains difficult, especially with scale.

Numerous factors underpin the challenges, including access to and storage of data, inconsistent tools, new and evolving data sources and formats, compliance concerns, and security considerations. To help you identify and solve these challenges, we’ve created a new whitepaper, “The future of data will be unified, flexible, and accessible,” which explores many of the most common reasons our customers tell us they’re choosing Google Cloud to get the most out of their data.

For example, you might need to combine data in legacy systems with new technologies. Does this mean moving all your data to the cloud? Should it be in one cloud or distributed across several? How do you extract real value from all of this data without creating more silos?

You might also be limited to analyzing your data in batch instead of processing it in real-time, adding complexity to your architecture and necessitating expensive maintenance to combat latency. Or you might be struggling with unstructured data, with no scalable way to analyze and manage it. Again, the factors are numerous—but many of them accrue to inadequate access to data, often exacerbated by silos, and insufficient ability to process and understand it.

The modern tech stack should be a streaming stack that scales with your data, provides real-time analytics, incorporates and understands different types of data, and lets you use AI/ML to predictively derive insights and operationalize processes. These requirements mean that to effectively leverage your data assets:

• Data should be unified across your entire company, even across suppliers, partners, and platforms., eliminating organizational and technology silos.
• Unstructured data should be unlocked and leveraged in your analytics strategy.
• The technology stack should be unified and flexible enough to support use cases ranging from analysis of offline data to real-time streaming and application of ML without maintaining multiple bespoke tech stacks.
• The technology stack should be accessible on-demand, with support for different platforms, programming languages, tools, and open standards compatible with your employees’ existing skill sets.

With these requirements met, you’ll be equipped to maximize your data, whether that means discerning and adapting to changing customer expectations or understanding and optimizing how your data engineers and data scientists spend their time. In coming weeks, we’ll explore aspects of the whitepaper in additional blog posts—but if you’re ready to dive in now, and to steer your tech company or startup towards success by making your data better work for you, click here to download your copy, free of charge.

I’m so excited to be part of Google Cloud. Data has been a longstanding part of my career and it is at the heart of business transformation. Many companies have mastered the ability to collect data and have mechanisms in place to draw on some of it to solve business problems.  But most data collected piles up and is never put to a useful purpose. Accessing it and mining it for helpful insights is practically impossible at many companies. It’s always stuck in hard to reach places, fragmented across departments and unavailable when you need it the most.  

Our mission at Google Cloud is to accelerate your ability to digitally transform your business with data. Solving data challenges is in our DNA, and over the last two decades we’ve been in a unique position to help our customers get the most out of data to drive real business value.  

Google products are used and loved by billions of people across the globe. These products bring together the complex web of disconnected, disparate, and rapidly changing data that makes up the internet. When you get an answer in milliseconds from google.com via a simple search bar, you know we have this down to a science. Google Cloud brings this expertise in data and software together for businesses of all sizes so that you can gain advantage from your data. We call this the data cloud. 

Enter the data cloud

A data cloud offers a comprehensive and proven approach to cloud and embraces the full data lifecycle, from the systems that run your business, where data is born, to analytics that support decision making, to AI and machine learning (ML) that predict and automate the future. A data cloud allows you a way to securely unify data across your entire organization, so you can break down silos, increase agility, innovate faster, get value from your data, and support business transformation. This is the heart of the data cloud.

Why a data cloud is essential

Building a data cloud using Google Cloud’s technologies helps organizations accelerate business transformation by giving everyone access to the right information at the right time so that they can act more intelligently based on it.

Since I’ve joined Google, I’ve been not only inspired by the work that the team has done to build products with a user-first mindset, but our customers have been an inspiration to each of us in what’s possible. 

• The Home Depot built a data cloud using Google Cloud technologies to help keep 50,000+ items stocked at over 2,000 locations. They’re making their 400,000+ associates smarter by giving them visibility into the things each customer needs, like item location within a local store. By leveraging BigQuery, their query performance dropped from hours and days to seconds and minutes. The Home Depot also uses Cloud SQL, Spanner, and Bigtable for their operational use cases and AI to help locate goods using their mobile apps for in-store navigation. 
• Major League Baseball (MLB) is reimagining the fan experience with their data cloud. To build engagement with today’s fans, drive engagement with future generations, and lay the groundwork for future innovation, MLB consolidated its infrastructure and migrated to Google Cloud’s Anthos, Google Kubernetes Engine, Cloud SQL, and BigQuery. MLB tracks every moment of every game for an audience on seven continents with Cloud SQL,  this valuable data to drive deeper engagement with fans.
• Vodafone is using their data cloud to offer their customers new, personalized products and services across multiple markets. By identifying more than 700 use cases to deliver new products and services, Vodafone can support fact-based decision-making, reduce costs, remove duplication of data sources, and simplify operations.  With Google Cloud,  Vodafone’s operating companies in multiple countries can access improved data analytics, intelligence, and machine-learning capabilities. 

Here are four reasons why customers trust  Google Cloud to build their data cloud strategy: 

First, Google  delivers insights at planet scale  

Customers often gravitate to Google Cloud for our specific data tools that were built for Google’s internal data needs and are unmatched for speed, scale, security, and capability for any size organization. BigQuery is the leading solution for analytics and allows you to run analytics at scale with a 99.99% SLA and up to 34% lower TCO than cloud data warehouse alternatives. Spanner provides unlimited scale, global consistency across regions, and high availability up to 99.999%, at a TCO that is 78% lower compared to on-prem databases and 37% lower than other cloud options. Firestore continues to see rapid adoption with over 2M databases created to power mobile, web, and IoT applications across customer environments. And finally Looker, an API for all your data, offers a single shared place for people and apps to interact with it, no matter the cloud environment. 

Second, Google’s AI helps your business be more intelligent

Google was built on pioneering AI research and the principle of making the world’s information useful to people and businesses everywhere. AI powers some of Google’s most popular products, such as Search, Maps, Ads, and YouTube. We have leveraged this expertise to deliver a new, unified AI platform that gives every data scientist, data analyst, and ML engineer access to the same AI toolkit Google uses. Automated machine learning, accelerated experimentation and custom training, and more deployed models than any other platform enable your entire data team to drive business outcomes at any scale. 

Third, Google is the open data platform 

Google Cloud’s open platform gives customers maximum flexibility for managing transactional, analytical, and AI-based applications. Customers can choose from a wide range of transactional, processing, and analytics engines, open source tools, open APIs, and ML services to eliminate lock-in. This includes choice of deployment across multi-cloud and hybrid environments and easy interoperability with existing partner solutions and investments. With BigQuery Omni, organizations can choose to deploy their data warehousing solution to work natively with AWS or with Azure (coming soon). Looker supports 50+ distinct SQL dialects across multiple clouds and our database services like Cloud SQL, one of the fastest growing services at Google Cloud, offers familiar open source MySQL and PostgreSQL standard connection drivers, so you can work with your preferred tools and stay up-to-date with the latest community enhancements. In addition, Google offers an unrivaled developer community across the fields of AI, machine learning, mobile, application development, microservices, and access to third party solutions and open source systems. 

Fourth, Google offers a trusted platform for your data needs

Customers can take advantage of the same secure-by-design infrastructure, built-in data protection, and global network that Google uses to ensure compliance, redundancy, and reliability. All of Google’s data is encrypted in transit and at rest, by default. Google offers industry-leading reliability across regions so you’re always up and running. Spanner offers a 99.999% SLA and BigQuery offers a 99.99% SLA. For BI and embedded analytics, Looker supports data governance via a semantic layer that organizes your data and stores your business logic centrally, delivering consistent and trusted KPIs. And finally, our multi-layered security approach across hardware, services, user identity, storage, internet communication and operations provides peace of mind that your data is protected.

Learn more at Data Cloud Summit

We are committed to helping you build a data cloud that gives you deep insights into your business and process automation. Join me as I welcome Anders Gustafsson, CEO of Zebra and 

Gil Perez, CIO of Deutsche Bank at the Data Cloud Summit on May 26, 2021 to learn and share new ways to use data for good. I can’t wait to hear what you accomplish.