Impact of Cloud FinOps on Your Business Can be Measured with Five Key Metrics!

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Value of Establishing a Baseline for Metrics
As organizations continue to leverage cloud investments to drive their business growth and top line revenue, business, finance, and technology executives need to become increasingly connected in their efforts to deliver strong business outcomes. More than ever before, executives need to quantify the value of their investments in business and technology capabilities. As such, business and IT leaders need a set of value metrics that cover both operational and strategic outcomes, as well as risks and opportunities. Nevertheless, operational IT metrics are often disconnected from business outcomes, and executives need to establish the connection between technology and business outcomes to facilitate a meaningful dialogue between IT and business leaders.
Like many aspects of IT operations, metrics and KPIs are commonly a journey. Organizations typically start this journey with unit metrics focusing on cloud costs and eventually progress toward a set of clearly defined business value metrics.
As we define the set of metrics across the five key building blocks of Cloud FinOps, which include Accountability & Enablement, Measurement & Realization, Cost Optimization, Planning & Forecasting, and Tools & Accelerators, we ensure that these metrics are easily measurable and commonly attainable across the organizations that are on the journey of digital transformation.
Accountability and Enablement Metric
The Accountability and Enablement pillar is foundational to building a culture of cost and value awareness and charts the course for both the process and cultural transformation journey in cloud FinOps. The primary goal is to help drive financial accountability and accelerate business value realization by streamlining IT financial processes and enabling frictionless cloud governance. Enablement empowers IT, finance, and business teams with training to better understand cloud resources and strategies to efficiently deploy and manage them. Driving accountability and enablement starts with a charter and core governance policies, and then guides the transformation of processes that link finance, IT, and business owners.
We recommend adopting Cloud Enablement % as the standard metric for the accountability and enablement pillar, measured by the # of business leaders trained and certified / total # of business leaders in the organization.

This is an important metric as many organizations fail to adopt Cloud FinOps because of lack of awareness and training. This cloud enablement metric will help business leaders better understand the value of cloud and how it can be an enabler to drive sustainable business outcomes.
The cloud enablement metric can easily be implemented through a set goal based on the number of identified business leaders across the organization. With that said, it is important to utilize the Pareto principle of 80/20 rule here and identifying the key business leaders who are extensively consuming services on the cloud should be the primary focus. Google Cloud recently published a new Cloud Digital Leader certification that is aimed for business leaders and executives. By obtaining the Cloud Digital Leader certification, it ensures the individual is well-versed in basic cloud concepts and can demonstrate a broad application of cloud computing knowledge in a variety of applications and how Google Cloud services can help achieve desired business goals. In addition, the FinOps Foundation also provides training and certification to practitioners in a large variety of cloud, finance and technology roles to validate their FinOps knowledge and enhance their professional credibility.

Ultimately, we see that a target goal of over 70% of business leaders achieving the Cloud Digital Leader certification can significantly drive alignment and adoption of Cloud FinOps across the organization and leverage cloud technologies as an enabler to create sustainable business outcomes.
Measurement and Realization Metric
Foundational to any good process is accurate data and effective metrics, which starts with the notion of cloud costs visibility and traceability. This is driven by proper resource hierarchy and project structure standards and supported by a labeling and tagging data architecture behind your organization’s use of cloud resources. While many common tags include IT-driven designators such as application, environment, and project, it is important to design a direct connection to your P&L into your labeling and tagging architecture, by including cost centers or the chart of accounts as tags. Furthermore, automation of tagging ensures that all taggable resources are deployed with consistent and accurate labels and feed FinOps metrics with reliable data.
Establishing consistent and detailed tagging is essential to attributing cloud resources not only to specific products and projects, but also to detailed cost centers aligned with lines of business and associated P&Ls. In order to establish a full chargeback of typical cloud services, customers will need to attribute costs associated with 3 types of cloud resources. The first and most straightforward will be attributing taggable resources (compute instances, databases, and storage buckets) that are aligned to a specific P&L, such as where a given application is solely consumed by one line of business.
The second situation is where taggable resources are shared across multiple lines of business. Many customers will resort to using traditional P&L allocation models, such as using business revenue or headcount of the associated business units to divy up the costs. In order to more accurately allocate shared application costs, leading-edge customers use elements in their cloud microservices architecture, such as API calls, to specifically measure the relative consumption of shared applications.
The third type of cloud resources are those that cannot be tagged. Common examples include support, networking costs, and third party Marketplace costs. Here, traditional P&L allocation models as described above (using headcount or revenue) are commonly used. Some customers will use the relative distribution of their taggable resource allocations to appropriate non-taggable costs to their business units, while some types of costs, such as networking, are allocated based on API calls.
To measure the effectiveness of the Measurement & Realization pillar of cloud FinOps across these three types of cloud resources, we recommend adopting Cloud Allocation % as the lead metric. This metric is measured as the percentage of total cloud costs (taggable resources consumed by individual business units, taggable resources shared across multiple business units, and non-taggable resources) allocated to responsible business owners.

This metric can be used to support both Showback (cloud costs held in a central IT P&L but reported to business units) and Chargeback models (cloud costs fully charged to business unit P&Ls), and reflects the underlying effectiveness and accuracy of resource tagging and cost attribution to business units. Cloud Allocation % can be implemented in two ways. The basic implementation would qualify costs apportioned by any P&L metric (either by consumption or by traditional P&L allocation such as by revenue or headcount). The more advanced implementation of this metric would only qualify those resources (both specific and shared) that use either tagging or API calls to measure consumption and attribute associated costs to business units.

Customers evolving from a Crawl to a Walk stage of implementation will seek to allocate 70% or more of their total cloud costs, while those moving to a Run state will achieve 90% or greater cost attribution based on direct consumption measures.
Cost Optimization Metric
Cloud cost optimization is not just about cutting costs—it’s about knowing where to spend your money to maximize the business value. It is an iterative and continuous process that provides a consistent methodology to visualize and manage cloud consumption in a most cost effective way. Success in cost optimization can result not only in significant reductions of cloud spend, but sometimes also in improved application performance to manage higher traffic (user requests per seconds or transaction processed) within the same cost envelope.
It is important for an organization to automate reports generated by ingesting billing usage and cost data as well as recommendations generated for optimizations. These optimizations reflect the potential savings (also known as unrealized savings) which allows the team to prioritize implementations to realize the cost savings.
Typically potential savings contains adoption of:
- Pricing optimizations like Committed Use Discounts (resource-based and spend-based), BigQuery reservations, etc.
- Resource optimizations of wasteful resources (including aged snapshots, idle instances, and over-sized databases) that don’t provide any business value.

Capturing this metric is important as it allows the organization to keep a pulse on inefficiencies that exist in the organization and allows businesses to focus on achieving cost savings thereby capturing true value of running their workloads in the cloud.
The cost optimization metric can be implemented by integrating Recommendation Hub in your FinOps workflows. Recommendations Hub is part of Active Assist that contains a portfolio of intelligent tools and capabilities to help you optimize your workloads with minimal effort. It surfaces a summary of all recommendations across your projects along with potential cost savings ($) so you can prioritize your cost optimization effort. We have seen customers realize savings by taking action on recommendations generated by idle VM recommender, Committed Use Discount recommender, VM machine type recommender and many more.

Ultimately we see customers achieving realized savings of over 90% on total cloud service optimizable. We have seen customers reinvest these savings into creating differentiated products and offerings and improving their customer experience, thus accelerating business value realization from the cloud.
Planning and Forecasting Metric
Financial planning is a foundational capability within finance organizations that will directly influence each company’s capabilities of cloud computing forecast accuracy. Financial planning focuses on accurately forecasting financial metrics that are set on an annual basis to guide the company’s financial objectives. The annual plans are measured on a quarterly basis and adjusted based on performance throughout the year; the forecast performance is monitored on a monthly basis to help influence operational results.
Planning and forecasting cloud computing costs is typically the responsibility of the team responsible for cloud operations. Operational forecast planning is based on consumption workload plans, historical trajectory, seasonality and leading indicators. Transformational projects also create material risks to forecast accuracy.
Establishing accurate financial forecasting in the cloud spend requires rethinking traditional approaches to asset depreciation run-outs and trend-based forecasting of maintenance and licensing costs. Using workload-specific forecasting models that leverage a combination of trend-based models for steady-state workloads, driver-based models for scaling applications, as well as monthly variance analysis can greatly improve the accuracy of dynamic cloud needs.

Capturing and measuring forecast accuracy enables companies to understand if they do what they plan. Companies get what they measure and so by measuring and discussing variances to forecast accuracy it enables better control of cloud spend allocations.
Cloud computing forecast accuracy should be included as a topic that Finance and Cloud operations teams discuss at least monthly. The cloud operations team should monitor forecast trajectory during the month and evaluate adjustments when they identify unexpected shifts.
An effective forecast accuracy is one that avoids surprises to company executives and investors. Cloud computing often has more variability and seasonality than depreciation of capex from on prem environments. Coordinating project and sprint agile management can help avoid surprises. If a development change creates an unexpected jump in spending then change management processes should be reviewed to avoid future surprises.
Tools and Accelerators Metric
Employing proper tools and accelerators are important to fully benefiting from FinOps practices. In earlier stages, companies may have limited their ability to report detailed analysis of cloud spend. As practices mature and improve, labeling and tagging of resources proves valuable to understanding costs for specific projects/teams and for building unit cost metrics.
These capabilities can become even more powerful through automated monitoring of resources that offers insights on spend, value, compliance and recommendations.
Therefore the recommended measure of Tools & Accelerators maturity is to evaluate the # of automated recommendations that have been implemented as a % of total list of automated recommendations generated that results in cost savings

This is an important metric because as the organization onboards newer workloads to the Cloud environment, lack of robust actionable recommendations and monitoring can lead to increased cloud waste. This has been a key component prohibiting organizations from realizing the total value of their cloud investment.
Customers starting on their tool maturity journey can leverage Google’s out of the box recommendations Hub to get started. The Recommendation Hub is a place in the Google Cloud Console where you can view, prioritize, and apply these recommendations. Some examples include VM right sizing recommendations, BQ slot optimizations, Committed use Discount etc, Idle resource recommendations. This can further be integrated into any existing enterprise tooling using the recommendations API. As organizations mature, they can leverage Cloud Monitoring to create advanced recommendations based on custom business logic.

Ultimately, we see that a target goal of over 50% of automated recommendations implemented as the tooling for surfacing recommendations matures and this will ensure that the organization can minimize and eliminate cloud waste to maximize value from cloud investment.
Bringing this together with a Cloud FinOps Dashboard
As technology and business goals continue to evolve over time, it is essential to establish a process where the Cloud FinOps metrics are continuously reviewed whenever the goals change. Furthermore, it is important to note that not all organizations need to achieve the “Run” state of the identified metrics target. The metrics are means to achieve the business outcomes based on the organization’s priorities. By collaborating with cross-functional teams to quantify and measure the impact of the Cloud FinOps metrics, executive leaders can quickly obtain buy-in, highlight common-shared goals, and move fast.
At Google Cloud, we have developed solutions to help our customers build a Cloud FinOps Dashboard to capture these metrics to drive a culture of change and equip the transformation and business leaders with the tools to share and track the results of the key metrics. Successful adoption of the Cloud FinOps metrics enable organizations to focus on the business outcomes and the dashboard provides a meaningful feedback loop to report on the impact and drive visibility across the organization.
So, where are you now in your FinOps journey, and how do you move beyond the challenges ahead? Google can help you start the conversation and accelerate your path to maximizing business value with the cloud.
No matter where you are on the cloud transformation journey, through an interactive session with Google, we can bring executives across the organization together to work toward a shared vision and a plan to accelerate and realize business value in the cloud. If you are interested in more information, please contact us.
Special thanks to Daniel Pettibone, Amitai Rottem, Bruce Warner, Jon Naseath, and Nihar Jhawar for co-authoring and contributing to this blog post and the members of the FinOps Foundation including J.R. Storment, Vas Markanastasakis, Anders Hagman, John McLoughlin, Mike Bradbury, and Rich Hoyer for providing their domain expertise and continuous support to this important cloud FinOps topic.
Being Cloud-native Means Sustainability and Growth-native for Nuuly!

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They say black never goes out of style. It’s something the team at Nuuly, URBN’s digital rental and resale business, know well. And it’s not just true of the company’s garments but their gadgets, too.
“I was having an offhand conversation with a UX designer recently,” Rebecca Sandercock, Nuuly’s strategy and insights manager, recalled in a recent interview from the company’s sunny, South Philly headquarters. “The designer was talking about how we had chosen dark mode for a number of interfaces internally because it actually saves so much on electrical output. They had the data to back that decision up, but more importantly, it’s just the kind of thing everyone is thinking about all the time here.”
Of course most every business is thinking about sustainability in some way these days. What makes Nuuly stand out is how quickly it can act, thanks in large part to the technology platform that’s made the entire enterprise possible.
“We’re kind of sustainable by our very nature,” Kim Gallagher, Nuuly’s director of marketing and customer success, said.
While she meant the rental and resale business, which helps customers buy fewer clothes and sees Nuuly items worn many times by many people—Gallagher could just as well have been referring to the sustainability inherent in, and enabled by, cloud computing.

There are the obvious, and oft-cited, advantages, such as how centralized data centers can operate more efficiently (some have been carbon neutral since the beginning). Yet there are even more subtle yet substantial benefits. In a marketplace and climate that are both changing faster and faster, sustainability requires a certain amount of agility. Such adaptability and scalability are intrinsic to the cloud technology that threads its way throughout Nuuly.
It turns out that being cloud native also means being sustainability native—as well as growth native. Since its 2019 launch, Nuuly’s net sales have risen roughly 6x over the first three fiscal years.
Cloud fits any situation
When URBN was developing Nuuly—launching in just 10 months—it chose to create everything from scratch on Google Cloud. Despite being part of a larger organization with decades of history and expertise, the company recognized the limitations presented by legacy systems and, more importantly, the necessity of building a wholly new platform that could be fully responsive.
The company has to react not only to new fashion trends but, crucially, the changing behaviors of customers. And not just their evolving tastes but also shopping habits, delivery preferences, unexpected customer service requests—is this a pattern, or a stain?—and social media chatter.
The pressure for a successful launch was high. The URBN portfolio, which also includes Urban Outfitters, Anthropologie, and Free People, had to keep evolving to satisfy a new generation of shopper who exists in an increasingly crowded and demanding digital marketplace.
The cloud’s responsiveness has thus proven its worth in creating a financially sustainable business as well as an environmentally sustainable one. Those even go hand in hand, as Gallagher points out: “Every customer who keeps renting is one who isn’t buying more occasion-specific clothes that go unworn most of the time.”

Dr. Alan Rosenwinkel, director of data science at URBN, had heard from his team about one garment that has become an emblem for the power of the platform. “It had been rented 25 different times before someone loved it enough to buy it and keep it forever,” he explained. (It’s also an emblem of the power of the cloud, that they would have the data awareness to track a single item so closely.)
It’s a new way of shopping made possible by a new way of computing. As one writer for Business Insider cheered, Nuuly “completely cured my addiction to fast-fashion.”
It makes for a healthy business, too. Sales for fiscal year 2019 exceeded $8 million and surpassed $24 million in 2020—one of the few URBN segments to grow during a tough year for fashion—and reached $47 million in 2021. The subscriber base had grown to 51,000 at the end of January.
Agility drives sustainability drives agility
For digital retailers to achieve such customer enthusiasm often relies as much on how the clothes get there as how they look. And those deliveries turn out to be a prime example of where Nuuly’s sustainability and technology meet.
For now, all shipping is handled through a state-of-the-art distribution center in Bucks County on the Philadelphia outskirts. Garments are shipped six-at-a-time, in fully reusable packaging, using ground transportation to keep the carbon footprint to a minimum. In certain limited geographic areas, shipments were sometimes taking longer than the two to five days most members would find acceptable.

“If we were an older company or weren’t set up from a technology perspective to be agile, we might have just said, ‘All right, we’re going to just go to three-day shipping for everyone,’” Rosenwinkel said. “That would drive up the cost, and the environmental impact. But we were able to be more strategic and more targeted about it.”
By regularly analyzing customer sentiment and retention data through BigQuery and Cloud Composer, and tying those to historical shipping times, Nuuly has been able to understand how shipping speed impacts its customers. Using a custom-built order management system, deliveries can be automatically adjusted to arrive more quickly, particularly when certain regions or days of the week are proving difficult to reach customers in time. These accelerated deliveries, like all Nuuly shipments, are made via UPS’s Carbon Offset program.
“Because we have the data, and the platforms to analyze it all,” Rosenwinkel said, “we’re delivering faster with the bare minimum impact on cost and emissions.”
It’s just one example of how modern retailers must juggle so many demands from consumers, workers, suppliers, and even regulators. Adding sustainability to that mix could be seen as a burden, but Nuuly shows how the right technology can lead to a holistic approach that makes all those interests work together even better.
And it allows for more opportunities and more kinds of sustainability, reaching from the designer’s atelier to the customer’s doorstep.
Sustainable details at every level
Back at the distribution center, workers can experience sustainability in a different way, as data is leveraged to enhance their well-being.
All workers are equipped with customized Android devices that help guide order tracking and fulfillment, plus cleaning, repairs, and reselling of garments as needs change throughout their lifecycle. Yet the insights go even deeper. The data science team has closely analyzed routes and repetitive motions for workers to keep their strenuous jobs as low-impact as the company’s broader environmental footprint.
“Through machine learning, we estimate we’ll be able to save our workers over 300,000 miles of steps over a five year period,” Rosenwinkel said. That’s enough walking to circumnavigate the globe 12.5 times.

The company has also applied ingenuity to one of the most notorious aspects of digital retail: packaging. Made from 100% post-consumer recycled materials like plastic bottles, Nuuly’s reusable carriers require no disposable bags or hangers to send goods back and forth. And once the packages have reached their end of life, the team is working with designers on ways to repurpose them into items that can then be offered for rental or sale on Nuuly.
“We’re really looking at the circular economy from every angle,” Gallagher said. “It’s built into the business.”
That includes not just the research the team did on-site at the Dry Cleaning & Laundry Institute—”We went to laundry school,” Gallagher jokes—but the digital tools that take those lessons even further. The team is always looking for ways to optimize fabric care, both to cut down on chemicals and water usage and extend the life of a garment. By analyzing the lifespan of every item, Nuuly not only makes them last longer but can identify problems faster. Employees even use custom apps to mark stains and damage so repair teams can more easily identify and fix the issues.
With its meticulous inventory tracking, Nuuly can even take marginal items, like a white gown or jeans with a small stain, and turn them into a custom dye job or an upcycling opportunity with a partner. These reworked items are then inserted back into the Nuuly Rent inventory as part of a growing collection of one-of-a-kind pieces, called Re_Nuuly.
Other services have launched quickly and easily thanks to the company’s cloud-enabled backend. Wanting to encourage more community and more reuse, the company created Nuuly Thrift. Debuting last fall after just a year in development, the team built everything from new interfaces to an evolved point of sale system.

It’s enabled Nuuly to offer many garments for rent or sale simultaneously, with “truly real-time inventories,” Rosenwinkel said. “So when it’s gone on one site, it shows up as gone on every site—no more surprises.”
Except for the good kind.
“I like to think we’re helping our customers think about ownership in a completely new way,” Sandercock said. “Once they run out of a use for a garment, they can offer it back, and sell it, and someone else will get to enjoy it and give it a new life. And Nuuly, we get to keep it in the community and keep it in the ecosystem, which is really cool—we’re taking extended responsibility over what happens to the clothing we create.”
How Cloud Networks Enable CSPs to Deliver 5G

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Communication services providers (CSPs) are experiencing a period of disruption. Overall revenue growth is decelerating and is projected to remain below 1 percent per year, following a trend that started even before the pandemic.1 At the same time, driven by the pandemic, data consumption in 2020 increased by 30 percent relative to 2019, with some operators even reporting increases of 60 percent.2
The combination of pressure on revenues with rising data traffic costs is forcing operators to innovate in three fundamental ways. First, operators are looking to establish new sources of revenue. Second, increased network utilization must be met with a reduction in network cost. And third, there is an opportunity to gain new customers by improving the customer experience.
Fortunately, 5G offers a path forward across each of these three areas. Concepts such as network slicing and private networks allow CSPs to offer differentiated network services to public sector and enterprise customers. The disaggregation of hardware and software allows new vendors with unique strengths to enter the market and to enable CSPs to build, deploy, and operate networks in fundamentally new ways. And the ability to place workloads at the edge permits CSPs to offer compelling experiences to consumers and businesses alike. In this blog, we will discuss how CSPs can create a solid foundation for their cloud networks.
Understanding telecommunications networks
First, it is useful to consider the way telecommunications networks were traditionally built. Initially, networks were built using physical network functions (PNFs) — appliances that used a tight combination of hardware and software to perform a specific function. PNFs offered the benefit of being purpose-built for a specific application, but they were inflexible and difficult to upgrade. As an example, deploying new features frequently required replacing the entire PNF, i.e., deploying a new hardware appliance.
The first step in improving deployment agility came with the concept of virtualized network functions (VNFs), software workloads designed to operate on commercial off-the-shelf (COTS) hardware. Rather than utilizing an integrated hardware and software appliance, VNFs disaggregated the hardware from the software. As such, it became possible to procure the hardware from one vendor and the software from another. It also became possible to separate the hardware and software upgrade cycles.
However, while VNFs offered advantages over PNFs, VNFs were still an intermediate step. First, they typically needed to be run within a virtual machine (VM), and as such required a hypervisor to interface between the host operating system (OS) and the guest OS inside the VM. The hypervisor consumed CPU cycles and added inefficiency. Second, the VNF itself was frequently designed as a monolithic function. This meant that while it was possible to upgrade the VNF separately from the hardware, such an upgrade, even for a feature that affected only a portion of the VNF, required deployment of the entire large VNF. This created risk and operational complexity, which in turn meant that upgrades were delayed just as they were with PNFs.
Creating the foundation for cloud networks
The trick to establishing your cloud based network resides in the challenge of moving from VNFs to containerized network functions (CNFs) — network functions organized as containers as a collection of small programs, each of which can be independently operated.
The concept of containers is not new. In fact, Google has been using containerized workloads for over 15 years. Kubernetes, which Google developed and open-sourced, is the world’s most popular container orchestration system, and is based on Borg, Google’s internal container management system.3 There are lots of benefits to using containers, but fundamentally, it frees developers from worrying about resource scheduling, interprocess communication, security, self-healing, load balancing, and many other tedious (but important!) tasks.
Consider just a couple examples of benefits that containerization brings to network functions. First, when upgrading the network function to implement new features, you no longer need to re-deploy the entire network function. Instead, you only need to re-deploy the containers that are affected by the upgrade. This improves developer velocity and reduces the risk of the upgrade because, rather than infrequent upgrades that each introduce substantial changes, you can now have frequent upgrades that each deploy small changes. Small changes are less risky because they are easier to understand and to roll back in case of anomaly. Incidentally, this also improves your security posture because it reduces the time between when a security vulnerability is discovered and when a patch is deployed.
Speaking of security, another example of the benefits that containerization brings to network functions is an automatic zero-trust security posture. In Kubernetes, the communication among microservices can be handled by a service mesh, which manages mundane aspects of inter-services communication such as retries in case of failure and providing observability into communication. It can also manage other essential aspects such as security. For example, Anthos Service Mesh, which is a fully-managed implementation of the open-source Istio service mesh (also co-developed by Google), includes the ability to authenticate and encrypt all communications using mutual TLS (mTLS) and to deploy fine-grained access control for each individual microservice.
Automation and orchestration for cloud networks
CNFs bring tremendous benefits, but they also bring challenges. In place of a relatively small number of network appliances, we now have a large number of containers, each of which requires configuration, management, and maintenance. In the past, many of these processes were accomplished using manual techniques, but this is impossible to accomplish economically and reliably at the scale required by CNFs.
Fortunately, there are cloud-native approaches to solving these challenges. First, consider the problem of autonomously deploying and maintaining CNFs. The ideal way is to use the concept of Configuration as Data. Unlike imperative techniques such as Infrastructure as Code, which provide a detailed description of a sequence of steps that need to be executed to achieve an objective, Configuration as Data is a declarative method whereby the user specifies the desired end state (i.e., the actual desired configuration) and relies on automated controllers to continuously drive the infrastructure to achieve that state. Kubernetes includes such automated controllers, and the great news is that this method can be used not just for infrastructure but also for the applications residing on top of it, including CNFs. This cloud-native technique frees you from the toil and associated risk of writing detailed configuration procedures, so you can focus on the business logic of your applications.
As another example, consider the problem of understanding your network performance, including anomaly detection, root cause analysis, and resolution. The cloud-native approach starts with creating a data platform where both infrastructure and CNF monitoring data can be ingested, regularized, processed, and stored. You can then correlate data sets against each other to detect anomalies, and with AI/ML techniques, you can even anticipate anomalies before they happen. AI/ML is likewise indispensable in gaining an understanding of why the anomaly is happening, i.e. performing root cause analysis, and automated closed-loop controllers can be developed to correct the problem, ideally before it even happens.
Architecting for the edge
The transition from VNFs to CNFs is a critical piece in addressing the challenge that CSPs face today, but it alone is not enough. CNFs need infrastructure to run on, and not all infrastructure is created equal.
Consider a typical 5G network. There are some functions, such as those associated with an access network, that need to be deployed at the edge. These functions require low latency, high throughput, or even a combination of the two. In 5G networks, examples of such functions include the radio unit (RU), distributed unit (DU), centralized unit (CU), and the user plane function (UPF). The first three are components of the radio access network (RAN), while the last is a component of the 5G core. At the same time, there are some other control plane functions such as the session management function (SMF) or the authentication and mobility management function (AMF) that do not have such tight latency and high throughput requirements and can thus be placed in a more centralized data center. Furthermore, consider an AI/ML use case where a particular model (perhaps for radio traffic steering) needs to run at the network edge because of its latency requirements. While the model itself needs to run at the edge, model training (i.e., generating the model coefficients) is frequently a compute-intensive exercise that is latency-insensitive and is thus more optimal to run in a public cloud region.
All of these use cases have one thing in common: they call for a hybrid deployment environment. Some applications must be deployed at the edge as close to the user as possible. Others can be deployed in a more centralized environment. Still others can be deployed in a public cloud region to take advantage of the large amount of compute and economies of scale available therein. Wouldn’t it be convenient — if not transformational — if you could use a single environment for deploying at the edge, in a private datacenter, and in public cloud, with a consistent set of security, lifecycle management, policy, and orchestration resources across all such locations? This is indeed what Google Distributed Cloud, enabled by Anthos, brings to the table.
With Google Distributed Cloud, you can architect a 5G network deployment such as the one shown below.

Business benefits of cloud networks
Beyond the technical benefits, consider the business benefits of such an architecture. First, by following the best practices of hardware and software disaggregation, it permits the CSP to procure the infrastructure and the network functions from different vendors, spurring competition among vendors. Second, each workload is placed in precisely the right location, enabling efficient utilization of hardware resources and offering compelling low-latency, high-throughput services to users. Third, because the architecture utilizes a common hybrid platform (Anthos), it makes it easy to move workloads across infrastructure locations. Fourth, the separation of workloads into microservices accelerates time-to-market when developing new features or applications, such as those enabling enterprise use cases. And finally, the container management platform supports the simultaneous deployment of both network functions and edge applications on the same infrastructure, allowing the operator to deploy new experiences such as AR/VR directly on bare metal as close to the user as possible.
The next generation cloud network is now
There is a lot more we could say, but perhaps the most important takeaway is that this architecture is not a future dream. It exists today, and Google is working with leading CSPs and network vendor partners to deploy it, helping them realize the promise of 5G to deliver new revenues, reduce operating costs, and enable new customer experiences.
To learn more, watch the video series on the cloudification of CSP networks.
Discover what’s happening at the edge: How CSPs Can Innovate at the Edge.
1.Statista, Forecast growth worldwide telecom services spending from 2019 to 2024
2 PricewaterhouseCoopers, Global entertainment and media outlook 2021-2025
3. Borg: The Predecessor to Kubernetes
Media CDN to Intelligently Deliver Streaming Experiences to Viewers around the World!

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The digital media and entertainment industry is experiencing dramatic growth, as audiences migrate to online experiences and content providers seek to deliver new and innovative content. According to The Global Internet Phenomena Report, streaming video accounted for 53.7% of internet bandwidth traffic, up by 4.8% from a year ago. This rapid growth of over-the-top content is straining existing infrastructure, fueling media companies’ shift to the public clouds with their global presence and greater distribution capacities. In addition, other use cases such as gaming, social networks, AR/VR experiences, and education continue to fuel the need for intelligent media services and operations.
Today, at the 2022 NAB Show Streaming Summit, we’re excited to announce the general availability of Media CDN — a modern, extensible platform for delivering immersive experiences with unparalleled scale and intelligence. Media CDN will enable media and entertainment customers to efficiently and intelligently deliver streaming experiences to viewers anywhere in the world. The same infrastructure that Google has built over the last decade to serve YouTube content to over 2 billion users is now being leveraged to deliver media at scale to Google Cloud customers with Media CDN.
Unparalleled planet-scale reach and scale
Media CDN’s foundational advantage is the Google network. We have invested decades of resources to build tremendous capacity and reach in over 200 countries and more than 1,300 cities around the globe. Modern video applications are sensitive to fluctuations in latency, so getting content closer to users enables higher bitrates and reduces rebuffers, resulting in a superior experience for the end user. Media CDN builds on the success of the existing Cloud CDN portfolio for web and API acceleration and complements it by enabling delivery of immersive media experiences.
In addition to running on planet-scale infrastructure, Media CDN tailors delivery protocols to individual users and network conditions. Media CDN includes out-of-the-box support for QUIC (HTTP/3), TLS 1.3, and BBR, optimizing for last-mile delivery . When the Chrome team rolled out widespread support for QUIC, video rebuffer time decreased by more than 9% and mobile throughput increased by over 7%.
Media CDN also achieves industry-leading offload rates. With multiple tiers of caching, we minimize calls to origin — even for infrequently accessed content. This alleviates performance or capacity stress in the content origin and saves costs. These features are built into the product and seamlessly support customer content hosted on Google Cloud, on-premises, or on a third-party cloud.
“We are excited to leverage Media CDN to continue to deliver an exceptional streaming experience for Stan users across Australia. With Google’s massive network, and a deep reach into the ISPs, we are able to deliver the highest quality video for our users, no matter where they are”—John Hogan, Chief Technology Officer, Stan
“Our mission at U-NEXT is to deliver the highest quality and most entertaining content to our users. Google Cloud’s Media CDN helps us efficiently scale our infrastructure, which is challenging with a vast library of content. Media CDN offloaded 98.3% of requests from our origin server while delivering consistent great quality.”—Rutong Li, Chief Technology Officer, U-NEXT
Broader platform for monetization and immersive experiences
While global distribution is critical for a high-quality end-user experience, it’s only one piece of delivering a world-class platform for immersive experiences. Media CDN offers additional capabilities to enable this transformation — ad insertion, ecosystem integrations and platform extensibility, and powerful AI/ML analytics for interactive experiences.
Streaming providers can improve monetization through integrated ad serving via the Video Stitcher API, which allows manipulation of video content to dynamically insert ads.
Through extensible ecosystem integrations, Media CDN connects customers to key capabilities to simplify their operations. For example, the Transcoder API supports custom streaming formats, while the Live Stream API transcodes mezzanine live signals into direct-to-consumer streaming formats, for multiple device platforms.
Media CDN is built with AI/ML that will give viewers more control over how they see, experience, and even interact with content. For example, sports fans watching a game can obtain real-time stats and analytics, viewers can purchase items from virtual billboards, etc.
Cloud-native and developer-friendly operations
Media companies are under pressure to develop and deploy innovative experiences at a furious pace. Media CDN was built by developers, for developers, with automation and observability built in, giving media providers the speed and flexibility they need to integrate delivery provisioning and management into their content release processes.
Media CDN offers comprehensive APIs and automation tools such as Terraform. Detailed, pre-aggregated metrics and playback tracing make it easy to diagnose performance across the entire infrastructure stack. Real-time visibility is provided via Google Cloud’s operations suite, and integrates with tools that developers already use such as Grafana and ElasticSearch.
“Leveraging the same infrastructure as YouTube, Google Cloud’s Media CDN combines geographic reach, API-first architecture and integration with the Cloud operations suite. This is a transformative move that is aligned with the future of the CDN industry.”— Ghassan Abdo, Research Vice President, WW Telecom, Virtualization and CDN, IDC
“Viewers around the world are demanding best-in-class video quality and performance across modes of consumption. A video-first delivery network can be a game changer in this space. We’re excited to partner with Google Cloud and to leverage Media CDN to enable premium video experiences and customer engagements.”—Juan Martin, Founder and CTO, Firstlight Media
Planet-scale advanced security
Media CDN lets streaming media providers take advantage of Google’s decades-long experience delivering video safely, securely, and reliably. The platform includes deep integration with Google Cloud Armor for planet-scale DDoS protection and a rich set of capabilities to detect and mitigate attacks, prevent abuse, manage risk, and comply with regulatory or licensing requirements.
If you want to deliver rich, immersive experiences to global audiences with an extensible, modern delivery platform, we’d love to hear from you. For more information, including technical specifications and platform architecture, please visit cloud.google.com/media-cdn. To get started with Media CDN, contact your sales team.
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Google’s Tau VMs Help Nylas Reach New Heights!
Nylas is a leading provider of scalable and secure communications data platform that powers business process and productivity automation and drive digital engagement for its customers that are fast-growing start-ups as well as large enterprises. The company approached Google Cloud with a complex challenge involving its legacy architecture that gave rise to cost and scalability issues. Nylas processed 30 terrabytes of data, billions of messages and hundreds of millions of APIs per day! Moreover, to serve Nylas’ large enterprise customer in the Financial Services industry with stringent security needs and data storage infrastructure requirements to avoid in-memory hacks, they rewrote the entire infrastructure in Go and Kubernetes on top of Google.
Watch the video to learn how Google Cloud has been the best distributed technology and a true partner for Nylas, helping them achieve 40 percent in savings by moving to Tau VMs!
Your DW Need Scaling Up? Try What This Company Did: It Can Run 25,000 Events a Second

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With access to more data than ever before, companies have never been better positioned to adopt precision marketing methods and target the right customers at the right time. Emarsys, a digital marketing platform, enables its clients to collect, analyze, and act on a wide variety of data. From websites to mobile apps to emails, Emarsys’ customers can handle data from all its digital channels on a single, easy-to-use platform. Emarsys also makes sure that customers receive the highest quality data possible, making for smarter decisions and better business practices.
“We were close to the limits of our internal data warehouse, scalability-wise. We didn’t want to get to the point where we’d have to delete data or cancel projects. In Google Cloud we saw a platform that could scale with our ambitions and be optimized for AI and real-time solutions.”
—Levente Otti, Head of Data, Emarsys
Since launching as an email solutions provider in 2000, Emarsys has grown into the world’s largest independent digital marketing platform, with more than 2,500 clients worldwide and reaching more than 1.4 billion people. By 2016, the company felt that its existing data warehouse platform was close to its limits, affecting not just day-to-day operations but also important strategic goals.
“We were close to the limits of our internal data warehouse, scalability-wise. We didn’t want to get to the point where we’d have to delete data or cancel projects,” says Levente Otti, Head of Data at Emarsys. “In Google Cloud, we saw a platform that could scale with our ambitions and be optimized for AI and real-time solutions.”
Minimal maintenance, unlimited scale with Google Cloud
Digital marketing is a highly competitive environment. Emarsys works alongside big players with a huge market share on the one hand and smaller, specialist companies on the other. It has thrived by successfully combining the all-inclusive offerings of the former with the agility of the latter, constantly looking for ways to innovate and improve. In recent years, the company had started to feel that the ability to handle large quantities of data was no longer enough. The next challenge was speed. “We truly believe that in the future, everything will be done in real time, including data processing, analytics, and AI predictive models,” Levente says.
At the start of 2016, Emarsys’ existing data warehouse was a software-as-a-service solution running on-premises, which required hardware and software maintenance in order to keep up with the company’s growing appetite for data-heavy use cases such as prediction and analytics. The existing platform had proven its worth processing large amounts of data in batches, but its real-time capabilities were limited. Moreover, Emarsys had begun to experiment with AI technology, but found that its data warehouse couldn’t scale to accommodate some of the more resource-intensive processes, such as training the predictive models. The company decided that it needed a new, cloud-based data platform.
After evaluating some of the leading cloud providers, Emarsys chose Google Cloud for its mature AI capabilities and its ease of use. “With the other solutions, we still had to rent virtual machines and hardware and be responsible for maintenance. At the time, Google Cloud was the only provider that could take that management overhead away from us, while keeping customers accounted for on every query level,” Levente says.
To implement its new data platform, Emarsys teamed up with Google Cloud Partner Aliz. Over a series of meetings, workshops, and architecture reviews, Aliz helped Emarsys navigate the Google Cloud ecosystem to find the right products for the solution it was looking for. “Aliz really helped us set off in the right direction,” explains Levente.
With Google BigQuery, we can run queries which process terabytes of data, in seconds. We can also develop our own user-defined functions, incorporating Bayesian statistics into our predictive algorithms. That means we can take into account historical data, resulting in much more accurate predictions in a scalable way within seconds.”
—Levente Otti, Head of Data, Emarsys
Emarsys’ new data platform would actually be two: one platform for batch processing data and one for real-time analysis and interactions. Firstly, a proprietary publishing component gathered all the data points from Emarsys’ various channels including the website, mobile, emails, and custom events. With Cloud Pub/Sub and Cloud Dataflow, Emarsys transported and processed the data into BigQuery, which allows for further work and reviews that take into account errors or delayed events. After this, the data was exported to the main batch processing platform, which ran on BigQuery. For the real-time analytics, Emarsys used Cloud Bigtable to access data and Cloud Dataflow to pipeline it into the real-time platform, which could communicate with AI components or interaction components via an API to deliver real-time interactions with customers.
On top of the overall data infrastructure, Emarsys built a new AI platform with Google Cloud components. Training the predictive models had been an issue in the past due to the large number of resources required, so Emarsys chose to use Google Kubernetes Engine clusters, which can scale up and down on demand, without the need for hardware configuration or management. The trained models were held securely in Cloud Storage. From here, they were integrated with BigQuery for power and flexibility, allowing Emarsys to improve not just the speed of its AI predictions but also the quality.
“With Google BigQuery, we can run queries which process terabytes of data, in seconds,” shares Levente. “We can also develop our own user-defined functions incorporating Bayesian statistics into our predictive algorithms. That means we can take into account historical data, resulting in much more accurate predictions in a scalable way within seconds.”
Real-time insight, long-term satisfaction
Google Cloud enabled Emarsys to build a scalable data and AI platform that delivers powerful, actionable insights in real time. According to Levente, the company wanted to spend less time managing overload and more time considering how it should handle data. An immediate result of the new platform has been that data is now available in a scalable way, without hardware additions and management.
“With Google Cloud, we’ve been able to build a truly real-time data platform. The norm used to be daily batch processing of data. Now, if an event happens, marketing actions can be executed within seconds, and customers can react immediately. That makes us very competitive in our market.”
—Levente Otti, Head of Data, Emarsys
The clear and innovative pricing schemes of Google Cloud have also brought a new level of accountability to Emarsys’ costs in a way that wasn’t possible with its on-premises infrastructure. “Now that we only pay for what we use, we can assign costs to specific customers or queries, which has a huge impact on our pricing and product development strategies,” says Levente.
Thanks to the power of BigQuery and the scale at which it can handle data, Emarsys can now apply its analytics and AI tools to their full potential. “It’s very important to enable our clients to create the best possible experience for customers,” says Levente. At the same time, the company has cut its AI platform costs by 70% with Kubernetes while increasing scalability compared to the previous solution. The whole data platform was built to be scalable, and its first big test came during the retail peak of Black Friday, when it comfortably handled 250,000 events per second. “Perhaps the biggest impact on the business came with the real-time nature of the new platform,” says Levente.
“With Google Cloud, we’ve been able to build a truly real-time data platform,” he explains. “The norm used to be daily batch processing of data. Now, if an event happens, marketing actions can be executed within seconds, and customers can react immediately. That makes us very competitive in our market.”
Since implementing the new platform, Emarsys has continued to innovate with it and is about to release a new Real-Time Decision Framework, which will provide customers with even more real-time products and tools. The company continues to work with Aliz and Google Cloud, exploring other products such as Google BigQuery ML and TensorFlow to improve its AI processes. “We had a problem that we wanted to tackle now, and for us, Google Cloud was the best way of doing that,” says Levente. “But it was also about looking ahead. We felt that Google Cloud offered us the best way of future-proofing our platform.”
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