Macy's Uses Google Cloud to Streamline Retail Operations - Build What's Next
Case Study

Macy’s Uses Google Cloud to Streamline Retail Operations

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By moving its infrastructure to the cloud, and taking advantage of Google Cloud data warehousing and analytics solutions, Macy’s is streamlining retail operational functions across its network. Here's how.

As retailers strive to meet the growing expectations of shoppers, they are turning to Google Cloud to transform their businesses and tackle opportunities in an increasingly challenging industry. From optimizing inventory management to increasing collaboration between employees across locations and roles, to helping build omnichannel experiences for their customers, we are working together with retailers to help make the shopping experience as seamless and personalized as possible.  

A standout Google Cloud customer is Macy’s, one of the world’s largest retailers. Founded in 1858, Macy’s operates approximately 680 Macy’s and Bloomingdale’s, and 190 specialty stores including Bloomingdale’s The Outlet, Bluemercury and Macy’s Backstage. And through macys.com, bloomingdales.com, and bluemercury.com, it also serves millions of customers across more than 100 countries. 

By moving its infrastructure to the cloud, and taking advantage of Google Cloud data warehousing and analytics solutions, Macy’s is streamlining retail operational functions across its network.

With the opening of its new approximately 675,000 square-foot distribution center in Columbus, Ohio, Macy’s is leveraging the scalability of Google Cloud to ensure that merchandise is accurately and efficiently received, sorted, ticketed, picked, packed and shipped from the distribution center to the stores—even during peak retail seasons like back to school and the holidays.

“Powered by software developed at Macy’s technology, this new distribution center is a fantastic first step in our cloud journey. Working with Google Cloud allows us to be more nimble, efficient and flexible in how we utilize our warehouses,” 

Naveen Krishna, CTO, Macy’s

Leveraging Google Cloud’s data management and analytics solutions, Macy’s new warehouse management system will initially service 200+ Macy’s Backstage off-price stores at launch. Macy’s will begin rolling out this software solution to additional distribution centers that service its nationwide fleet of Macy’s and Bloomingdale’s department stores, as well as Macys.com and Bloomingdales.com direct-to-customer orders. 

Our continued work with Macy’s reflects their investment in technology to improve digital and mobile experiences, site stability, store technology, fulfillment, and logistics, and integrate its front line and back office to reinvent retail. I look forward to deepening our partnership with Naveen and his team to help them achieve these goals. 

Case Study

PaGaLGuY Turns to Google Cloud Platform to Power Leading India Education Network

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With Google Cloud Platform, PaGaLGuY has provided a more personalised, engaging experience for users to drive growth and increase revenue.

Founded in 2006, PaGaLGuY started as a forum that enabled students, typically aged between 20 and 30 to discuss and seek advice on academic issues. By 2011, PaGaLGuY had increased its traffic to about 250,000 page views per month. The business is now one of India’s largest education networks and provides an app that users can download to their Android and iOS devices.

Over the past six years, PaGaLGuY has extended its service to include video advice from experts on education topics and grown the number of views of its pages to 1.5 million per day. As Head of Technology for the business, Sandeep Kalidindi has played a key role in ensuring PaGaLGuY is as engaging as possible to users. “Because the product is advertising based, the greater the user engagement, the greater the advertising revenue,” Kalidindi explains.

Google Cloud Platform Results

  • Supported growth to 1.5 million page views per day and demand spikes that see requests increase from about 90 per second to about 1,200 per second
  • Reduced API latency from about 1 second to about 40 milliseconds
  • Reduced system administration time from three to four days per week to 30 minutes every two weeks

In 2015, PaGaLGuY’s senior management team decided to deliver an even more relevant experience for users of the education network. “The core thing we had to do was personalise the experience for each and every student that visited PaGaLGuY,” Kalidindi says. “So we had to capture each student’s data to customise what they see when they open the site.”

The business also found traffic to the network was straining its infrastructure. During demand peaks, created by exams involving as many as 5 million students, PaGaLGuY would be inaccessible for periods of 30 minutes to one hour. Furthermore, average API latency had climbed to an unacceptable 1 second, compromising performance.

PaGaLGuY needed to access extensive compute resources to undertake its planned change. Had the business relied on a physical technology architecture to undertake the transformation, it would have had to purchase capacity equivalent to 16 new servers. “There was no way with a small team we could grow to that extent in a short time,” Kalidindi says. “This was the right moment for us to explore cloud services.”

The business established two primary requirements the selected cloud service needed to meet. First, PaGaLGuY had to be able to scale the platform with costs rising only in proportion to the increase in resources consumed. Accordingly, the business would have to minimise the number of employees required to manage the cloud environment. Second, the platform had to give PaGaLGuY easy access to student data and the ability to undertake prompt, granular analysis.

PaGaLGuY reviewed available public cloud services and determined that Google Cloud Platform (GCP) was the best fit for its business. “Google Cloud Platform was considerably more mature than the alternatives, with a high degree of automation and a suite of managed services,” Kalidindi says. PaGaLGuY management then discussed with Google how to optimise cost, performance and availability of its personalised education network on GCP.

With assistance from Google and business transformation specialists Searce, PaGaLGuY was able to deliver the platform into production on GCP in 10 months. “Searce was very proactive in ensuring the environment met our needs and allowing us to gain priority access to Google services in development,” Kalidindi says. “Their team was integral to the success of the migration.”

PaGaLGuY has been running in production in GCP for two years. The education network’s GCP architecture comprises a scalable back-end built on Google App Engine; a managed environment for its containerised applications in Google Kubernetes Engine; messaging-oriented middleware through Google Cloud Pub/Sub; a relational database in Google Cloud SQL; a managed data analytics warehouse running in Google BigQuery; stream and batch data processing through Google Cloud Dataflow; and object storage in Google Cloud Storage.

PaGaLGuY has leveraged GCP services to break down its platform application from a monolithic build to a series of microservices running in Google App Engine that enable independent deployment cycles, minimise test and quality assurance overheads and provide clearer monitoring and logging.

Running on GCP has enabled PaGaLGuY to add new personalisation features and grow fourfold without having to add any new engineers or administrators to accommodate the increased traffic. The business has also used the platform to seamlessly collect and aggregate students’ data for analysis, reporting and delivering a more targeted user experience. Furthermore, PaGaLGuY has been able to provide its management team with direct access to Google BigQuery to scrutinise data rather than require them to wait at least a day to view reports created by the product or technology teams.

Support demand peaks of 1,200 requests per second

“Thanks to Google Cloud Platform, we can easily support demand peaks that see requests per second rise from an average 90 per second to about 1,200 per second for as long as 45 minutes,” Kalidindi says. Due to GCP’s scalability, PaGaLGuY can ensure its education network remains available and performance remains consistent during those periods.

Latency cut to 40 milliseconds

The business has also reduced average API latency from 1 second to about 40 milliseconds. Furthermore, using GCP has enabled PaGaLGuY to automate most of its processes and reduce system administration requirements from three to four days a week across its team members to about half an hour per week.

The performance of GCP has transformed PaGaLGuY’s culture and processes. “Once our team was exposed to Google Cloud Platform and understood the superiority of the platform, our mindset changed from ‘let us do everything on our own’ to ‘let us do what we do best’ and delegate the remainder,” Kalidindi says. The quality of the service provided by GCP means PaGaLGuY effectively considers the cloud provider as part of its team. “We are always eager to see what new services are being launched and are extremely excited about what Google Cloud Platform can provide as part of its roadmap.” he concludes.

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IBM Spectrum LSF and Google Collab: Leverage Google Cloud’s Scalability and Compute Engine Infrastructure

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IBM Spectrum LSF and Google Cloud collab will help manufacturers and semiconductor businesses to take advantage of Google Cloud's scalability, secure compute engine, and networking and storage infrastructure. Learn more about the partnership.

High Performance Computing (HPC) is prevalent today across many industries, including financial services, life sciences, higher education research, manufacturing, and energy. More and more businesses are deploying HPC workloads in the cloud to take advantage of its elasticity, scalability, and availability. Job schedulers are critical for HPC applications given the nature of these workloads that create, process, and tear down thousands, and sometimes millions, of vCPU and network resources with TB to PB of storage capacity. Job scheduling tools lead to improved operational efficiency and a degree of certainty that a particular HPC job, which can run for hours to weeks, will complete successfully. 

IBM Spectrum LSF is used extensively in the manufacturing and semiconductor industry to manage Electronic Design Automation (EDA) workloads. Dynamically running workloads on-premises and in the cloud, also known as cloud bursting, is becoming a more common practice to address capacity and provisioning time constraints within data centers and enable enterprises to take advantage of virtually unlimited resources. 

However, the challenge with cloud bursting is integrating and maintaining operational consistency across on-premises and cloud environments. IBM Spectrum LSF, in combination with Google Cloud, addresses this problem head on. 

Google Cloud is excited to announce, in collaboration with IBM, enhanced capabilities to IBM Spectrum LSF that enables organizations to integrate their on-premises job scheduling scripts with resources deployed in Google Cloud. Customers are now able to fully leverage Google Cloud’s highly scalable and secure Compute Engine, networking and storage infrastructure. 

The LSF-Google Cloud resource connector patch supports key Google Cloud differentiators including Local SSDs, GCE instance templates, Preemptible VMs, and more: 

  • Bulk API support– Deploy large fleets of VM instances in a matter of seconds.
  • Instance Templates – Simplify VM configuration by creating reusable templates. 
  • All Machine Types – Supports all GCE VM families and machine types, including Custom Machine Types.
  • GPUs – Attach up to 16 GPUs per instance, including the largest A2 instances with up to 16 NVIDIA A100 GPUs
  • Preemptible VMs – Preemptible VMs are provisioned from excess Compute Engine capacity and is a significant way to save money on GCE resources.
  • Local SSD – Attach up to 9TB of NVMe SSD per instance
  • Hyperthreading – Supports the “threads-per-core” option in GCE, which allows per-VM hypervisor level Hyperthread configuration (when supported by Instance Templates)
  • Images – Supports custom disk images, including full support for Windows, for all attached Persistent Disks
  • Placement Policies – Control where the instances are physically located relative to each other within a zone for improved low-latency performance
  • Labels – Supports GCE Labels, which can be used for management of firewall rules, tracking billing, etc
  • Minimum CPU Platform – Supports the ability to specify a minimum CPU Platform for your Virtual Machines.
IBM LSF Architecture
Google Cloud – IBM Spectrum LSF Resource Connector Architecture

Getting Started

This improvement to the IBM LSF Resource Connector was developed by IBM in coordination with Google. Find out more about the new supported features and their operation in the official IBM Spectrum LSF Resource Connector Documentation. You can also find additional documentation and download the software in the IBM Spectrum Computing Community. If you have further questions, you can contact IBM, or Google Cloud Sales.

Special thanks to Annie Ma-Weaver, Mark Mims, and Wyatt Gorman for their contributions.

Case Study

Wipro selects Google Cloud to advance its digital transformation strategy

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Wipro said that as a provider of digital transformation services to some of the world’s most impactful businesses, it is critical that the company’s own core systems and technologies are running on intelligent and modern platforms.

Wipro has partnered with Google for migration of its enterprise-wide SAP footprint to the Cloud platform. The engagement will bring SAP applications and workloads to the cloud to support the country’s fourth-largest software services firm’s 180,000-plus employees.

Bhanumurthy B.M, President and Chief Operating Officer, Wipro said that as a provider of digital transformation services to some of the world’s most impactful businesses, it is critical that the company’s own core systems and technologies are running on intelligent and modern platforms that encompass the needs of the future.

“The technology that we’re getting into right now, and the kind of design led approach that we are taking, I think customers will benefit significantly from this,” he told ET.

Read the Full Story on Economic Times

Case Study

World’s Largest Online-only Grocery Retailer Uses AI to Figure Which Customers Need Most Attention

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UK-based Ocado uses machine learning to classify customer emails to fast-track urgent cases. It also discovered that 7% of its emails didn't require a response at all, which means call center representatives now have more time to devote to higher priority messages.

In the United Kingdom, the popularity of online grocery shopping is expected to surge from about 6% of the market today to 9% by 2021, according to market research firm Mintel. One of the pioneers of online-only grocery retailing is Ocado, based in Hatfield, Hertfordshire in the U.K. Since starting commercial deliveries in 2002, the company has grown to 600,000 active customers, 260,000 weekly orders, and £1.39 billion in annual revenue.

Ocado takes supermarket trips out of the equation by enabling shoppers to purchase items online through its convenient web and mobile applications. Items are then picked and packed in automated warehouses and shipped directly to customers in a one-hour time slot of their choosing. Ocado’s delivery punctuality is 95%, order accuracy is 99%, and its service footprint now reaches more than 70% of the U.K. population.

“Google Cloud Platform gives us the flexibility and performance to tackle the large and complex data challenges unique to our business.”

Paul Clarke, Chief Technology Officer, Ocado

The company achieved its success by building in-house almost all the technology and automation that powers its end-to-end e-commerce, fulfillment, and logistics platform. Ocado also developed a new platform, the Ocado Smart Platform (OSP), which offers large brick-and-mortar grocery retailers around the world access to a best-in-class solution for online grocery.

Democratizing machine learning

The shopping journey for online grocery retailing differs significantly from other e-businesses. Customers often buy dozens of products at once, a single household may have multiple buyers using multiple devices, and product shelf life may only be a couple of days.

“We often say that having built an end-to-end platform that can do online grocery scalably and profitably, we can do other forms of online retail; but the reverse does not necessarily follow,” says Paul Clarke, Chief Technology Officer at Ocado. “Google Cloud Platform gives us the flexibility and performance to tackle the large and complex data challenges unique to our business.”

The Ocado business model takes advantage of consumers’ shifting preferences and the links between digital technology and shopping experiences.

“Google Cloud Machine Learning Engine gives us the agility we need. Our developers were able to try out TensorFlow and see firsthand the benefits of machine learning in the cloud.”

Paul Clarke, Chief Technology Officer, Ocado

The company has been building machine learning into its systems for over five years. Until recently, Ocado machine learning applications required specialist data scientists, typically with PhDs in machine learning, who would build these solutions from the ground up. It also required the specialist who set up the system and costly on-premises infrastructure to train and run these systems.

However, working with Google as a private alpha testing site for Google Cloud Machine Learning Engine accelerated its adoption of artificial intelligence (AI).

“We’ve been talking about how the cloud could democratize AI for some time,” says Paul. “Google Cloud Machine Learning Engine gives us the agility we need. Our developers were able to try out TensorFlow and see firsthand the benefits of machine learning in the cloud.”

TensorFlow is an open source software library for machine learning developed by the Google Brain team. Ocado developers, engineers, and data scientists now use TensorFlow for many of their machine learning projects. They deploy the models they build on Google Cloud Machine Learning Engine, which lets them train models faster across servers, desktop computers, and mobile devices through a single application program interface (API). Additionally, Google Cloud Machine Learning Engine integrates easily with the other Google Cloud Platform products used widely at Ocado.

What do customers really want?

One of the first TensorFlow models Ocado created was a machine learning algorithm that tags and categorizes customer emails and then prioritizes them for response.

The contact center receives thousands of emails each day and Ocado wanted to automate determining which ones needed to be answered immediately and which ones could wait.

For example, a first-time customer expressing their delight in using Ocado doesn’t need to be responded to with the same urgency as a customer who is missing an item from their order or who won’t be home to receive the delivery.

“Enabling agents to respond without having to sort through less-urgent emails improves Ocado’s responsiveness and customer service.”

James Donkin, General Manager, Ocado

“We get a lot of emails from customers saying, ‘Our service was great,’ or ‘The driver was very courteous,'” says James Donkin, General Manager, Ocado. “But when issues like weather or road conditions potentially affect delivery, we often get surges of urgent questions. Enabling agents to respond without having to sort through less-urgent emails improves Ocado’s responsiveness and customer service.”

Using Google Cloud Machine Learning Engine, TensorFlow, and a large data set culled from several years’ worth of manually categorized customer emails, Ocado experimented on which kind of neural network architecture would best prioritize emails. After testing its models, Ocado implemented the highest-performing one and has been able to respond to urgent messages four times faster. The company also discovered that 7% of its emails don’t require a response at all, which means call center representatives now have more time to devote to higher priority messages.

“Without Google Cloud Machine Learning Engine, it would have been a lot harder to succeed on a project like email classification,” says Roland Plaszowski, who has recently managed several big data projects and initiatives at Ocado.

“Even if we invested significantly in infrastructure, it would be difficult to manage because of the computational intensity. It’s challenging and expensive to run machine learning projects at the same time without infrastructure that you can scale easily.”

Ocado also uses machine learning to predict customer behavior and improve experiences. By analyzing order data, Ocado makes shopping as frictionless as possible. For example, the ordering system can pre-populate customers’ shopping carts with items they are most likely to purchase, remind customers about items they may have forgotten, and notify them of multi-buy offers they haven’t completed, for example, only buying one of a buy one, get one free offer. Based on machine learning from previous purchase data, the Ocado system can also offer new products that are likely to delight customers.

“You will regularly see items that are more personally relevant to you instead of items that are being promoted more generally,” says James. “I’m a vegetarian, so I’m offered specials for vegetarian products that I normally buy and new ones that I’ve never bought. I’m also less likely to see things that I’m not interested in.”

Machines and machine learning

Within the Internet of Things (IoT), Ocado is looking to enhance its warehouse robots with machine learning. An integral part of the OSP, thousands of robots continually stream data into Google Cloud Storage and Google BigQuery.

Ocado data scientists apply machine learning to create a type of swarm intelligence that enables warehouse robots to work cooperatively to achieve a common goal. Projects include modules to search robot telemetry data, such as whether a battery pack is operating within standard tolerances or whether firmware has been successfully loaded, and use it to optimize maintenance schedules or detect patterns in wear and tear.

“Another challenge we’re looking at is how to embed machine learning directly into robots so they become smarter in terms of self-testing, exception handling, and error recovery,” says Paul. “This is a challenging combination of IoT, data analytics, and machine learning that we believe Google BigQuery and Google Cloud Machine Learning are particularly well suited to helping Ocado achieve.”

The company also discovered that 7% of its emails don’t require a response at all, which means call center representatives now have more time to devote to higher priority messages.

Scaling for new business

Scalability is also a major reason behind some of Ocado’s cloud initiatives, including the migration of all its on-premises data to the cloud. Ocado wanted to improve customer experiences, empower business teams with greater insight, and reduce IT overhead, so it consolidated onto Google Cloud Platform.

“The old databases just weren’t fast enough,” says Paul. “We needed a solution that could scale with the amount of data we generate and how we use it. Google Cloud Storage and Google BigQuery now provide the backbone, from a data point of view, for the Ocado Smart Platform.”

Ocado estimates its business, product, and transaction data is approaching two petabytes. Combining customer and supply chain data helps both internal Ocado operations and the company’s ambitions to commercialize OSP.

“When compared with other options for expansion internationally, selling OSP as a managed service lets us turn companies that could have been competitors into customers,” says Paul. “We want to build OSP once and then turn it on for multiple business-to-business customers.”

Each time Ocado adds a new hosting customer to OSP, it will launch a customized instance to fit that customer’s requirements. The capacity and performance of each new OSP instance must be able to scale quickly as the backend platform for established retailers with large numbers of products, customers, and transactions.

Ocado’s first OSP customer, Morrisons, is already benefiting from this first-of-a kind solution. Morrisons is one of the UK’s four largest supermarkets and uses OSP to power its online retail business. Using Google Cloud Platform, Ocado has stored, processed, and analyzed terabytes of Morrisons’ data using a dedicated data lake and Google BigQuery.

In addition to using Google Cloud Platform for OSP, Ocado also adopted it for its own online grocery retail business operation. Ocado originally used the Apache Spark and Apache Hadoop open-source frameworks on Google Compute Engine for its data platform. Moving to Google BigQuery frees Ocado business analysts from the complex query setup and workflows associated with Spark and Hadoop. Plus, it lets Ocado share data analytics with suppliers and partners.

Google BigQuery is well integrated with TensorFlow on Google Cloud Machine Learning Engine and Google Cloud Dataproc, the Apache Spark and Apache Hadoop service that lets Ocado use open source data tools for batch processing, querying, streaming, and machine learning. Google Cloud Dataflow and Google Cloud Dataproc handle cluster management, and provide an easy-to-use framework so developers can spend less time and money on administration and more time on delivering valuable business features.

Switching from Hadoop to Google BigQuery revealed a series of cost and performance improvements. For example, Ocado no longer needed to decide how many instances to bring up in a cluster or wait for the instances to spin up. Google handled everything.

“We simply ran our queries and paid for the resources that we use,” adds Roland. “One big win with Google BigQuery is we don’t have to do maintenance. Best of all, we saw Google BigQuery outperform our Hadoop cluster by over 80 times on our largest dataset, and for only two-thirds the cost.”

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Google Cloud Announces Improvements in Private Catalog to Drive Terraform Deployments

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Google Cloud Private Catalog helps cloud admins take control and enable discoverability of internal enterprise solutions. For better view of the Terraform deployments browse the new features of Private Catalog!

As an enterprise admin, when you choose to use Google Cloud Private Catalog to enable curated, self-serve Google Cloud infrastructure provisioning, you need the ability to manage your organization’s deployments. Today, we’re pleased to announce support for several improvements to Terraform driven deployments through Private Catalog. 

With this new release, you can update Terraform configurations and keep your end users informed about updates. At the same time, Private Catalog users have the ability to view new updates, note version highlights and then update the deployment. This gives you greater control over managing deployments for solutions provisioned through Private Catalog and ensuring compliance with organizational policies and standards.

Let’s take a closer look at the features you’ll find in this release. 

Deployment change management

Terraform solutions use Cloud Storage’s Object Versioning to manage updates to configuration files. With this release, you may update configuration files using multiple approaches.

  • Update the solution’s Cloud Storage object with a new configuration version
  • Use a different Cloud Storage object that contains a new configuration file

Once you view and apply the changes to the solution in a Private Catalog, end users are immediately able to consume the new version of the deployment configuration.

1 Pending updates.jpg
Pending updates

Additionally, prior to applying any changes, you can evaluate the contents of an update by comparing versions to download and compare the current and latest versions of the configuration and use new version highlights to add a description about the updates.

2 Compare versions.jpg
Compare versions
3 Update configuration.jpg
Update configuration

Ease of consumption

Once Private Catalog detects a change to the deployment configuration, it automatically informs catalog users about the change. On the Solutions page, end users have the ability to:

  • Get informed about solutions that have updates
  • View version highlights published by the admin
  • Apply the new version 

Additionally, with this release, Catalog users can retry existing deployments by modifying deployment parameters.

Reporting improvements

The deployment reporting dashboards for Private Catalog-based deployments now show additional information about the version of a solution deployed. This enables deeper insights into the overall deployment status across all Private Catalog solution assets.

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Admin deployment list
5 End user deployment list.jpg
End user deployment list

Get started today

These new features are available to all Private Catalog customers. To learn how to use these features, refer to our documentation:

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