When you choose to run your business on Google Cloud you benefit from the same planet-scale infrastructure that powers Google’s products such as Maps, YouTube, and Workspace. 

We have picked 10 ways in which Google Cloud Infrastructure services outshine alternatives in the market in how they simplify your operations, save money, and secure your data. 

1. Custom Machine Types means no wasted resources

Compute Engine offers predefined machine types that you can use when you create a VM instance. A predefined machine type has a preset number of vCPUs and a preset amount of memory; each type is billed at a set price as described on the Compute Engine pricing page. 

If predefined machine types don’t meet your needs, you can create a VM instance with a custom number of vCPUs and custom amount of memory, effectively building a custom machine type. Custom machine types are available only for general-purpose machine families. When you create a custom machine type, you are deploying a custom machine type from the E2, N2, N2D, or N1 machine family on GCP.  No other leading cloud vendor offers custom machine types so extensively.

Custom machine types are a good idea for workloads that aren’t a good fit for the predefined machine types and for workloads that require more processing power or memory but don’t need all of the upgrades provided by the next machine type level. This translates into lower operating costs.   They are also useful for controlling software licensing costs that are based on the number of underlying compute cores. 

Jeremy Lloyd, Infrastructure and Application Modernization Lead at Appsbroker, a Google partner: 

“Custom machine types coupled with Google’s StratoZone data center discovery tool provides Appsbroker with the flexibility we need to provide cost efficient virtual machines matched to a virtual machine’s actual utilization. As a result, we are able to keep our customers’ operating costs low while still providing the ability to scale as needed.”

2. Compute Engine Virtual Machines are optimized for scale-out workloads 

For scale-out workloads, T2D, the first instance type in the Tau VM family, is based on 3rd Gen AMD EPYC processors and leapfrogs VMs for scale-out workloads of any leading public cloud provider today, both in terms of performance and price-performance. Tau VMs offer 56% higher absolute performance and 42% higher price-performance compared to general-purpose VMs from any leading public cloud vendor (source). The x86 compatibility provided by these AMD EPYC processor-based VMs gives you market-leading performance improvements and cost savings, without having to port your applications to a new processor architecture. Sign up here  if you are interested in trying out T2D instances in Preview. 

For SAP HANA, Google Cloud has demonstrated with SAP how we can run the world’s largest scale-out HANA system in the public cloud (96TB).   With such innovation, you are covered as your business grows exponentially.

3. Largest single node GPU-enabled VM

Google is the only public cloud provider to offer up to 16 NVIDIA A100 GPUs in a single VM, making it possible to train very large AI models. Users can start with one NVIDIA A100 GPU and scale to 16 GPUs without configuring multiple VMs for single-node ML training, without crossing the VM layer. 

Additionally, customers can choose smaller GPU configurations—1, 2, 4 and 8 GPUs per VM—providing the flexibility to scale their workload as needed. 

The A2 VM family was designed to meet today’s most demanding applications—workloads like CUDA-enabled machine learning (ML) training and inference, for example. This family is built on the A100 GPU which offers up to 20x the compute performance compared to the previous generation GPU and comes with 40 GB of high-performance HBM2 GPU memory. To speed up multi-GPU workloads, the A2 VMs use NVIDIA’s HGX A100 systems to offer high-speed NVLink GPU-to-GPU bandwidth that delivers up to 600 GB/s. A2 VMs come with up to 96 Intel Cascade Lake vCPUs, optional Local SSD for workloads requiring faster data feeds into the GPUs and up to 100 Gbps of networking. A2 VMs provide full vNUMA transparency into the architecture of underlying GPU server platforms, enabling advanced performance tuning. Google Cloud offers these GPUs globally. 

4. ​​Non-disruptive maintenance means you worry less about planned downtime

Compute Engine offers live migration (non-disruptive maintenance) to keep your virtual machine instances running even when a host system event, such as a software or hardware update, occurs. Google’s Compute Engine live migrates your running instances to another host in the same zone without requiring your VMs to be rebooted. Live migration enables Google to perform maintenance that is integral to keeping infrastructure protected and reliable without interrupting any of your VMs. When a VM is scheduled to be live-migrated, Google provides a notification to the guest that a migration is imminent. 

Live migration keeps your instances running during:

• Regular infrastructure maintenance and upgrades
• Network and power grid maintenance in the data centers
• Failed hardware such as memory, CPU, network interface cards, disks, power, and so on. This is done on a best-effort basis; if a hardware component fails completely or otherwise prevents live migration, the VM crashes and restarts automatically and a hostError is logged.
• Host OS and BIOS upgrades
• Security-related updates
• System configuration changes, including changing the size of the host root partition, for storage of the host image and packages

Live migration does not change any attributes or properties of the VM itself. The live migration process transfers a running VM from one host machine to another host machine within the same zone. All VM properties and attributes remain unchanged, including internal and external IP addresses, instance metadata, block storage data and volumes, OS and application state, network settings, network connections, and so on. This has the benefit of reducing operational and maintenance overhead, helps you build a more robust security posture where infrastructure can be consciously revamped from a known good state and minimizes risks for advanced persistent threats. 

Refer to Lessons learned from a year of using live migration in production on Google Cloud from the Google engineering team.

5. Trusted Computing: Shielded VMs guard you against advanced, persistent attacks

Establishing trust in your environment is multifaceted, involving hardware and firmware, as well as host and guest operating systems. Unfortunately, threats like boot malware or firmware rootkits can stay undetected for a long time, and an infected virtual machine can continue to boot in a compromised state even after you’ve installed legitimate software. 

Shielded VMs can help you protect your system from attack vectors like:

• Malicious guest OS firmware, including malicious UEFI extensions
• Boot and kernel vulnerabilities in the guest OS
• Malicious insiders within your organization

To guard against these kinds of advanced persistent attacks, Shielded VMs use:

• Unified Extensible Firmware Interface (UEFI) BIOS: Helps ensure that firmware is signed and verified
• Secure and Measured Boot: Helps ensure that a VM boots an expected, healthy kernel
• Virtual Trusted Platform Module (vTPM): Establishes root-of-trust, underpins Measured Boot, and prevents exfiltration of vTPM-sealed secrets
• Integrity Monitoring: Provides tamper-evident logging, integrated with Stackdriver, to help you quickly identify and remediate changes to a known integrity state

The Google approach allows customers to deploy Shielded VMs with only a simple click, thereby easing implementation. 

6. Confidential Computing encrypts data while in use

Google Cloud was a founding member of the Confidential Computing Consortium. Along with encryption of data in transit and at rest using customer-managed encryption keys (CMEK) and customer-supplied encryption keys (CSEK), Confidential VM adds a “third pillar” to the end-to-end encryption story by encrypting data while in use. Confidential Computing uses processor-based technology that allows data to be encrypted in use while it is being processed in the public cloud. Confidential VM allows you to to encrypt memory in use on a Google Compute Engine VM by checking a single checkbox. 

All Confidential VMs support the previously mentioned Shielded VM features under the covers—you can think of Shielded VM as helping to address VM integrity, while Confidential VM addresses the memory encryption aspect which relies on CPU features. With the confidential execution environments provided by Confidential VM and AMD Secure Encrypted Virtualization (SEV), Google Cloud keeps customers’ sensitive code and other data encrypted in memory during processing. Google does not have access to the encryption keys. In addition, Confidential VM can help alleviate concerns about risk related to either dependency on Google infrastructure or Google insiders’ access to customer data in the clear. 

See what Google Cloud partners say about Confidential Computing here. 

7. Advanced networking delivers full-stack networking and security services with fast, consistent, and scalable performance

Google Cloud’s network delivers low latency, reduces operational costs and ensures business continuity, enabling organizations to seamlessly scale up or down in any region to meet business needs. Our planet-scale network uses advanced software-defined networking and security with edge caching services to deliver fast, consistent, and scalable performance. With 28 regions, 85 zones, and 146 PoPs connected by 16 subsea fiber cables around the world, Google Cloud’s network offers a full stack of layer 1 to layer 7 services for enterprises to run their workloads anywhere. Enterprises can be assured that they have best-in-class networking and security services connecting their VMs, containers, and bare metal resources in hybrid and multi-cloud environments with simplicity, visibility, and control. 

Google Cloud’s network has protected customers from one of the world’s largest DDoS attacks at 2.54 Tbps. With our multi-layer security architecture and products such as Cloud Armor, our customers ran their business with no disruptions. Furthermore, our recent integration of Cloud Armor with reCAPTCHA Enterprise adds best-in-class bot and fraud management to prevent volumetric attacks. Cloud Armor is deployed with our Cloud Load Balancer and Cloud CDN, extending the secure benefits at the network edge for traffic coming into Google Cloud so customers have security, performance, and reliability all built in. Furthermore, we are excited to offer Cloud IDS in preview, which was co-developed with security industry leader, Palo Alto Networks, to run natively in Google Cloud. 

Our advanced networking capabilities also extends to GKE and Anthos networking. With the GKE Gateway controller, customers can manage internal and external HTTPS load balancing for a GKE cluster or a fleet of GKE clusters with multi-tenancy while maintaining centralized admin policy and control. Unlike other Kubernetes offerings, we offer eBPF dataplane which brings powerful tooling such as Kubernetes network policy and logging to GKE. eBPF is known to kernel engineers as a “superpower” for its unique architecture to load and unload modules in kernel space, and now this capability is built in with Google Cloud networking. 

For observability and monitoring, our customers deploy Network Intelligence Center, Google Cloud’s comprehensive network monitoring, verification and optimization platform. With four key modules in Network Intelligence Center, and several more to come, we are working towards realizing our vision of proactive network operations that can predict and heal network failures, driven by AI/ML recommendations and remediation. Network Intelligence Center provides unmatched visibility into your network in the cloud along with proactive network verification. Centralized monitoring cuts down troubleshooting time and effort, increases network security and improves the overall user experience.  

8. Regional Persistent Disk for High Availability

Regional Persistent Disk is a storage option that provides synchronous replication of data between two zones in a region. Regional Persistent Disks can be a great building block if you need to ensure high availability of your critical applications as they offer cost-effective durable storage and replication of data between two zones in the same region. 

Regional Persistent Disks are also easy to set up within the Google Cloud Console. If you are designing robust systems or high availability services on Compute Engine, Regional Persistent Disks combined with other best practices such as backing up your data using snapshots enable you to build an infrastructure that is highly available and recoverable in a disaster. Regional Persistent Disks are also designed to work with regional managed instance groups. In the unlikely event of a zonal outage, Regional Persistent Disks allow continued I/O through failover of your workloads to another zone. Regional Persistent Disks can help meet zero RPO and near-zero RTO requirements and other stringent SLAs that your critical applications might require by maximizing application availability and protection of data during events such as host/VM failures and zonal outages. 

9. Cloud Storage’s single namespace for dual-region and multi-region means managing regional replication is incredibly simple

Similar to how Persistent Disk makes data more available by replicating data across zones, Cloud Storage provides similar benefits for object storage. Cloud Storage within a region is cross-zone by definition, reducing the risk that a zonal outage would take down your application. Cloud Storage adds to this by also providing a cross-region option that can protect against a regional outage and gets your data closer to distributed users. This comes in the form of Dual-region or Multi-region settings for a bucket. These are the simplest to implement cross-region replication offerings in the industry—just a simple button or API call to enable them. In addition to being simple to implement, they offer an added advantage of using a single bucket name that spans regions. 

This is unique in the industry. Competitive offerings currently require setting up and managing two distinct buckets, one in each region and they don’t offer the strong consistency properties Cloud Storage offers across regions. Operations and app development are burdened by this design. Google’s single namespace approach dramatically simplifies application development (the app runs on single region or dual/multi-region without any changes), and provides simpler application restarts and testing for DR.

10. Predictive autoscaling 

Customers use predictive autoscaling to improve response times for applications with long initialization times or for applications with workloads that vary predictably with daily or weekly cycles. When you enable predictive autoscaling, Compute Engine forecasts future load based on your Managed Instance Group’s history and scales out the MIG’s in advance of predicted load, so that new instances are ready to serve when the load arrives. Without predictive autoscaling, an autoscaler can only scale a group reactively, based on observed changes in load in real time. 

With predictive autoscaling enabled, the autoscaler works with real-time data as well as with historical data to cover both the current and forecasted load. Forecasts are refreshed every few minutes (faster than competing clouds) and consider daily and weekly seasonality, leading to more accurate forecasts of load patterns.

For more information, see How predictive autoscaling works and Checking if predictive autoscaling is suitable for your workload.

These are just a few examples of customer-centric innovation that set Google Cloud infrastructure apart.  Bring your applications and let the platform work for you.   

Get started by learning about your options for migration, or talk to our sales team to join the thousands of customers who have embarked upon this journey.

Acknowledgement

Special thanks to Dheeraj Konidena (Google) for contributing to this article.

Given the May 1 deadline for students to enroll, colleges and universities have been carefully watching the numbers of students who put down deposits and commit to a school. Like nearly every other sector in the U.S., colleges and universities have been hit hard by the pandemic and economic downturn, making enrollment numbers more important than ever to maintain financial health and meet student body goals. Technology and AI-based models are providing a way for institutions to manage their admissions data efficiently and cost-effectively.

For example, an admissions officer may want to offset drops in international or out-of-state enrollment by attracting local talent so they can achieve their target class profile. Additionally, institutions have sought to increase the availability and access of higher ed and are intentionally recruiting more low-income and underrepresented populations. New technologies allow admissions officers to have a stronger grasp of the incoming class’ details. With the press of a button, users can switch between overall, in-state, out-of-state, and international enrollment figures. The “How Do Regions Compare to Last Year” tile lets users view the percentage of change and the total number of candidates by region, comparing 2020 and 2021 side-by-side. With access to data, regional recruiters can focus on individual candidates and develop a plan to change the numbers.

An innovative enrollment strategy at MSU

Michigan State University was looking to improve how they managed the recruiting process. They implemented an enrollment strategy that saw their out-of-state enrollment increase by over 20% and generate $5M in additional net tuition revenue in a single year. “We knew we needed better real-time and predictive insights about our enrollment pipeline, and we understood the value of bringing in external data on prospects, but we couldn’t do that by ourselves. 

The solution really helped us be innovative with our analytics and improve our enrollment outcomes,” said someone close to the project at Michigan State University.

Data-driven insights support informed enrollment decisions

Student admissions and marketing groups are turning to Google Cloud and Deloitte to help support their enrollment decisions with predictive, actionable insights across recruiting and admissions processes. The partnership resulted in Candidate360, a solution that helps institutions process and analyze large amounts of data and develop meaningful insights to support their enrollment goals and mission. Part of Google’s Student Success Services offerings, Candidate360 uses artificial intelligence and predictive analytics to help higher education institutions improve enrollment and matriculation, as well as optimize financial aid decisions.

With nine AI/ML models, Candidate360’s capabilities help university leaders, enrollment teams and recruiters do things like:

• Identify regions with clusters of candidates or see dips in application numbers
• Deploy marketing resources and admissions staff to the right geographic areas 
• Understand applicants’ needs in terms of academics, safety, and social activities
• Make intelligent financial aid decisions to recruit and retain talented students from underrepresented communities
• Respond faster to the students who are most likely to be accepted and then go on to enroll, stay enrolled, and graduate
• Work towards the ideal class composition and increase competitiveness with peer institutions

Enhancing the student experience

Enrollment is the first key touchpoint with incoming students, and tools like Candidate360 can help institutions build a student preferences profile throughout the application process. They can understand each student’s prospective major, areas of interest, dream job, and more, allowing colleges and universities to personalize recommendations and advising for enrolled students.

With integrated toolsets, Candidate360 and Google Cloud’s Student Success Services can help colleges and universities emerge from the pandemic stronger than ever. 

To see a demonstration of Candidate360 in action, contact our sales team. 

It’s 2022 and nanosatellites, NFTs, and autonomous cars that deliver your pizza are in full force. In a world where people rely on simple technology to untangle complex problems, companies must deliver simple experiences to be successful in today’s landscape. For many cloud providers this means enabling tightly integrated data offerings that simplify the data delivery process without losing sight of the sophisticated needs of the modern data consumer. 

But while the name of the game is helping companies reach informed decisions from their data simpler and faster, what about the data practitioners – data analysts, data engineers, database administrators, developers, etc – who use these cloud data tools and technologies everyday? To proactively stay ahead of data cloud market trends in 2022 should data practitioners invest their time in specializing their data cloud skill sets (e.g. go deep in, say, data pipelining skills) or instead invest their time generalizing their data cloud skill sets (e.g. growing proficiencies in a mix of data analytics, databases, AI/ML, and more domains)? 

Skill deep or wide with data – that is the question

For Abdul Razack, VP, Solutions Engineering, Technology Solutions and Strategy at Google Cloud, the answer is a bit of both. 

“Data practitioners need to be broad in terms of their technology skills, but specialized with respect to the domain or domains in which they apply them. The reason why is because many things that used to be separate skill sets are now converging – like business analytics, streaming, machine learning, data pipelines, and data warehousing. Data practitioners need to be able to implement end-to-end workflows that solve specific business problems using skills from each category.”

It’s true, thousands of customers are choosing Google’s data cloud because it offers a unified and open approach to cloud that enables their practitioners to break down silos, begin and end projects without leaving the data platform, and innovate faster across their organization. 

The data practitioners who mirror Google data cloud’s frame of mind of being smart and agile across data domains in their skilling and learning will reap the benefits of solving more nuanced problems – building out internet-scale applications, fine tuning smart processes with analytics and AI, constructing data meshes that make product building simple, etc – at a larger scale than they would if they specialized in just one or two areas alone.

“Of course at the end of the day it depends on what tools a data practitioner is using to complete their workflows. There’s only so much you can learn and skills you can develop when you’re using limited tools. Growing data proficiencies across the board is made a lot easier when you’re using a data platform like BigQuery to address all these needs. BigQuery eliminates the choices you have to make – for instance you don’t have to choose between streaming data and data at rest, batch and realtime, or business intelligence and data science. This freedom gives data professionals a huge advantage when they’re building their skill sets and taking on more complex projects.” -Abdul Razack – VP, Solutions Engineering, Technology Solutions and Strategy, Google Cloud

Knowing your value is half the battle when upskilling

While some experts think technology is the limiting factor of whether or not you can even go wide or go deep in the first place, others like Google Cloud’s Head of Data and Analytics Bruno Aziza purport that it also depends on who you are, who you wish to be, and what investments your company is making to ensure you can become that person. 

“If you wish to set yourself up to be a Chief Data Officer, then you’ll want to understand how technologies fit together across your data estate first” said Aziza. “Only after you feel like you’re the go-to ‘data person’ can you then decide which part of the technology stack you want to double-down on.”

But technology isn’t everything. Aziza notes, “Make sure you focus on the  business impact that your data work provides.  You want to spend as much time as you can with your business counterparts to understand their business goals and challenges. The Harvard Business Review provides great guidance on how to succeed as a Chief Data Officer.”

Even if you don’t have your sights set on a C-suite role, both Aziza and Razack contend that the number one skill data practitioners should tackle in 2022 is actually a broad and perhaps abstract one: develop and exercise the curiosity to solve problems with a data-driven strategy. 

That is, today’s data practitioners should always be interested in educating themselves in the industry and continually upskilling in something. And their employers should also be invested in helping practitioners develop those interests, most likely through exposure to learning materials, engaging in career conversations, subsidized courses, or incentives attached to pursuing a new certification or skill.  

“Every industry is going through a digital transformation and the ability to identify what data to collect, how to prepare the data, and how to derive insights from it is critical. Therefore, the ability to find business challenges and formulate a data-driven approach to address those problems is the most important skill to have.” Abdul Razack – VP, Solutions Engineering, Technology Solutions and Strategy, Google Cloud.

Take the example of the “Data Mesh” I just wrote about in VentureBeat.  You’ll find 3 types of attitudes towards this new concept. There are Disciples who encourage continued learning only from the source – like the author of a new book or the creator of a theory. There are Distractors who tell you that new skills, trends, and technologies are fake news. And there are Distorters like vendors who will sell you one easy fix solution. But it’s the data practitioner who needs to proceed with caution when interacting with all three types  and forge their own path to discovering the truth when they’re learning and building skills. And for better or worse, this comes with trial and error, experimentation, and an eagerness to grow relative to where they began.”

Ready to start data upskilling? Start here.

For those interested in keeping up their data curiosities, check out our Data Journeys video series. Each week Bruno Aziza investigates a new authentic customer’s data journey – from migrating to cloud or  building a data platform to carrying out new data for good initiatives. Learn how they did it, their data dos and don’ts, and what’s next for them on their journey. These videos include a flavor of both specializing your data competencies and broadening your data competencies. 

For those interested in deepskilling, connect with Google’s data community at our upcoming virtual event: Latest Google Cloud data analytics innovations. Register and save your spot now to get your data questions answered live by GCP’s top data leaders and watch demos from our latest products and features including BigQuery, Dataproc, Dataplex, Dataflow, and more.

If you have any questions or need support along your learning journey – we’re here for you! Sign up to be a Google Cloud Innovator, and join the Google Cloud Data Analytics Community.

The increasing adoption of technologies like connected devices, augmented reality, and machine learning has changed the way we shop, and retailers are evolving how they do business to meet the needs of their customers.

Retailers say it’s no longer enough to keep pace with shoppers’ growing expectations—they must get ahead of them. That’s why more and more are turning to the cloud. They’re using it to eliminate data silos and take advantage of cloud-based analytics. They’re tapping into machine learning to improve all aspects of the value chain. And they’re making use of reliable and secure cloud infrastructure to scale their businesses.

Although every retail customer is different, many of them share similar objectives. Here are three major ways retailers take advantage of the cloud.

Storing and Analyzing Data in the Cloud

Data presents both a challenge and an opportunity for retailers. Which is why Ulta Beauty, the largest beauty retailer in the US, is moving to Google Cloud Platform (GCP). Now, with the help of BigQuery, Ulta Beauty will be able to more efficiently predict and analyze outcomes and develop more meaningful data insights that can be leveraged to deliver a more personalized, relevant guest journey.

They are not alone. DSW has also chosen to use GCP to help relaunch their DSW VIP loyalty program for the first time in over 10 years. With more than 90% of transactions running through their loyalty program, DSW needed a flexible and scalable solution to deliver a real-time loyalty program for 26 million active members. They’ve already seen a 9% uptick in new customers and have improved their already strong retention rate.

Improving Customer Experiences with AI and Machine Learning

Once retailers are able to access these insights, they are turning to AI to help personalize the overall shopping experience. At first, retail companies leveraged AI tools such as machine learning for product recommendations.

Now, more retailers use AI to forecast trends, predict inventory needs and prevent stock outs, and provide personalized recommendations to customers to intelligently and efficiently serve them.

Just look at METRO AG, one of the largest B2B wholesalers globally. They’re using AI and machine learning to better serve their customers. For example, many of their customers are restaurant owners. With Google Cloud AI capabilities, they can create tools that identify when a restaurant is out of a particular ingredient and automatically order more.

Ocado is another great example. The world’s largest online-only grocery retailer drove a 3.5% increase in contact center efficiency by using Google Cloud machine learning technology to respond to customer emails four times faster.

To help businesses further accelerate their AI solutions, Google has developed the Advanced Solutions Lab (ASL), which gives businesses the opportunity to work side-by-side with Google’s AI and ML experts to solve high impact challenges.

Fast Retailing, the Japanese retailer behind Uniqlo, is working with Google Cloud and ASL to help them better analyze customer data to forecast demand and deeply understand what their customers want.

Carrefour, one of the world’s leading retailers, also announced last year that its engineers will be working side-by-side with our AI experts to co-create new consumer experiences. This is in addition to deploying G Suite to their employees to support the company’s digital transformation.

Scaling Infrastructure to Meet Demand

Of course, none of this innovation is possible without a reliable infrastructure that can scale instantly to meet surges in traffic.

And many have found the reliability and security they need with the cloud. That’s why global cosmetics brand Lush chose Google Cloud. They migrated their e-commerce platform to GCP to handle increased traffic without compromising stability.

This move that ultimately reduced infrastructure hosting costs by 40 percent.

L.L.Bean also modernized its IT infrastructure by moving capabilities from its on-premises systems to GCP, improving customer satisfaction and IT efficiency across multiple sales channels.

Background

At IKEA we have multiple places in our customer journey in various channels where different kinds of personalization can deliver a superior customer experience. Product recommendations in the shopping basket, content recommendations in editorial sections, inspirational recommendations on product pages and more. After a while in the broader “recommendations” team there was a decision to split the team to have one sub-team focused on product recommendations. The pandemic altered customer behavior and needs as well. At that inflection point we decided to change our way of working and dive head-first into a more scientific approach to handle the operational complexities of delivering high quality product recommendations at scale. We deemed this necessary to improve our level of personalization and to have a holistic understanding of our customers.

Data Driven Decisions

The first step was to radically improve our ability to get high-quality quantitative information to understand how our ‘recommendation’ solutions affected personalization. We did this through high volume A/B testing on customer behaviour and after initial experimentation, we had a few key learnings:  

1. The mix of both UX and algorithms are really important for a cohesive customer experience. 
2. The quality of personalization can’t be measured in silos. Statistical significance  can be attained  by testing several groups of recommendations at once.

Once we came up with a solid framework for gathering data and acknowledged how little we knew about our customers, we were able to explore an incredible number of creative options – nothing was off the table. This was a very humbling experience, in that it opened up new perspectives for personalization, a more curious and less confined way of thinking. We learned to trust the data because it might show you things you don’t expect. 

Experimentation and Learning Framework

Our teams created ways to quickly deploy experimental modifications to our existing solution. This enabled experimentation in the front-end with the user experience, including details in headings and images. This also covered tweaks in the backend with anything from detailed manual additions or removals of recommendations to mixing and matching of various algorithms both home grown and from Recommendations AI.

This flexibility came with an overhead–more complexity and cost relative to directly retrieving recommendations from Recommendations AI. However, the benefit was that we were no longer dependent on manual evaluation of what made for a good recommendation system. We aligned on a data-driven and qualitative approach to provisioning recommendations and significantly accelerated our experimentation timeline. Together with optimization of the CI/CD pipeline this enabled the team to take an idea or hypothesis from inception to A/B testing with customers in less than half an hour.

Recommendations AI Experiments

Our team’s infrastructure was already running on GCP and when we received early access to Recommendations AI, the requirements to get started were minimal and that allowed us to start with initial tests requiring minimal effort and investment.

We started with a few use-cases and identified places where our existing recommendation algorithms needed improvement or complementary recommendations. We also explored additional ways where more useful information could be presented to the customers through personalized recommendations. 

Recommendations AI Model Combinations

While Recommendations AI might be considered a simple API to get a set of product recommendations, as we dove deeper into the solution it became apparent that it could be tweaked in several different ways to offer many fine tuning configurations to meet business goals. While too much fine tuning and customization could lead to subpar performance, in general we found that it was a great strategy to give us several versions of ML powered recommendations to work with. The further you personalize the experience, the more options you have to likely pick the best one for the customer.

Recommendations AI models like  ‘Recommended for you’, ‘Frequently Bought Together’ and ‘Others you may like’; are coupled with business goals like optimizing for conversion rate, click through rate and revenue. We experimented with many different model combinations and custom rules. All this was easily configurable right in the GCP console. One of the simplest custom configurations we used was to only recommend items that were in stock, and when items were out of stock we looked at similar items that were available to augment the experience. 

Collaboration with Google

Our collaboration with Google Cloud accelerated our learning process during experimentation. We worked closely together early in the product development. Additionally, their model provided flexibility to change direction and allow for more options than we had previously. Ultimately, this provided us a way to drastically improve our time to market with a product that produced tremendous results that we could not have accomplished on our own.

Results and Takeaways

With more personalized and real-time recommendations available we saw great success. We were able to increase the number of relevant recommendations displayed on a page by +400%. To accommodate the wider repertoire of recommendations we had to change the user experience. For example, in some places we had horizontally scrolling displays of product recommendations which were much easier for customers to use.

Another consequence of displaying more personalized recommendations was tangible improvement to conversion rate and average order value. Recommendations AI algorithms helped customers in two ways: 

1. Customers were able to find products that they liked quickly and establish their preferred choice among other options more quickly as well, giving them confidence to make a purchase through much fewer clicks. Even though we previously already had well tuned recommendations of several types, with Recommendations AI we measured +30% improvement in click through rates. 
2. Average order value saw a +2% surge with numerous examples of how Recommendations AI could help customers find both attractive and directly complementary products, expanding the customer purchase from a single product to an entire home furnishing solution.

As a direct effect of having stronger business results, the team started exploring more places in the customer journey where our growing buffet of recommendations could be used. We’d start with an initial experiment to answer if displaying recommendations in the specific context made sense at all. Frequently the data that emerged from these experiments prodded us to iterate further on what additional types of recommendations would be most appropriate to show to the customer as the customer’s behaviour evolved. Today, most of IKEA’s site recommendations are powered by Recommendations AI.

One key takeaway is that for some types of personalized recommendations there are benefits to using advanced algorithms that require a lot of high level data science and engineering competence to build since they outperform simplistic approaches. In some places, simplistic approaches work very well and in others the right decision is to not have product recommendations at all. For an effective use of product recommendations you need to have all the above options and the ability to tell when to use which one.

Next steps

When working with something so tightly related to customer experience, there is a constant change in user behaviour and new learnings to observe and adapt to. Product recommendations are rarely the main stand alone experience and frequently something that is used to help and enhance an experience. We see a lot of value in having a large toolbox of possible options and a team with a relentless focus on collaboration to improve the customer experience. We’re working directly with the Recommendations AI team and experimenting with several new features that we’re excited about. 

In the future we see opportunities of improving the customer journey through a more visual experience that inspires the customer rather than relying on customers to use their imagination to visualize groups of products together. Vision Product Search provides that and is something we’re looking into deploying next. We’ll be sharing more about our journey with Recommendations AI at the Google Cloud Retail Summit session ‘IKEA’s Approach to Building a Powerful Recommendations Engine’ on July 27th 2021.

Best wishes to all developers from the IKEA product recommendations team & the Google Recommendations AI team!