Payhawk Becomes a Unicorn with Google Cloud-Powered Automated Financing Software

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For far too long, managing employee expenses has been a time-consuming process that requires manual data entry and reconciliation to bridge the gap between business bank accounts and ERP systems. In the absence of an integrated workflow, finance teams use multiple systems to manage credit card and cash payments, and finding receipts. In most cases, they also lack real-time visibility into company spending.
The complexity grows exponentially as businesses expand, especially into new regions. Extra administration required to manage new bank accounts, card issuers, and local accounting systems impedes decision making and negatively impacts revenues and growth. Businesses of all sizes struggle with this, but it can be especially challenging for medium to large enterprises.
Payhawk set out to help businesses overcome these challenges when we founded the company in 2018. We combine VISA company cards, reimbursable expenses, and accounts payable into a single product. Our customers can automate manual processes, maximize efficiency, and accelerate business expansion.

Setting up our first cloud cluster in less than a week
To support growth and attract investment we were keen to launch our solution on a scalable, future-proof IT architecture that didn’t require extensive technical support. This is where Google Cloud made a big impression, especially the user interface and documentation which massively reduces the resources required to set up clusters and put them into production.
I’m a CTO, not a DevOps specialist, but in less than a week I was able to set up a secure, reliable operating infrastructure. This enabled us to fast-track our application development and we were able to issue our first card in just eight months. Our Google Cloud partner, Cloud Office also gave us valuable assistance, guiding us through the deployment process and advising on Google Cloud’s extensive range of solutions.
Google Kubernetes Engine (GKE) played a critical role, accelerating the deployment and management of our cloud native applications. We use Cloud SQL as our database while other important tools include Cloud Memorystore, Vision AI, Cloud Storage and Artifact Registry for our wider data storage and application needs. With Firebase we’ve been able to build a notification system for mobile devices.
Another incentive is that most other cloud solutions require add-on services to build and keep your product live. With Google Cloud, all the services that Payhawk needs including logging, metrics, monitoring of resources, and utilization of CPU memory come as standard.
For instance, I was really impressed by Google Cloud’s operations suite, which includes Cloud Logging and Cloud Monitoring. If there are any anomalies in our cloud architecture, we can track and resolve them with minimal disruption to our operations. This also removes the need to invest in an additional observability solution.
Reliability that builds customer trust
Google Cloud also supports Payhawk’s mission to put customers at the center of our organization. Thanks to Google Cloud error reporting and tracking and Google Cloud single sign on, Payhawk’s engineering team can anticipate customer issues and correct them in less than one hour. Trust is everything, and Google Cloud gives us the tools to boost customer satisfaction and build long-term relationships.
As a young business, managing costs is also a priority. The Google for Startups Cloud Program, which includes credits for Google software and tools, enabled us to push the business forward without having to worry about financing our infrastructure, especially in the first year. This gave us breathing room to work through funding, application development, and the onboarding of our first customers.
In addition, Google Cloud gives us confidence that we can grow the business fast. In most months we have seen more than 10% growth — in some cases it’s been 20%. In the first half of 2022, the business doubled in size, but Google Cloud gave us the flexibility to scale our infrastructure, adding storage, memory, and processing power as we onboarded new customers. The pricing model is also generous so that we can grow our revenues while keeping control of operational expenditure.
Since launch we have acquired a valuable mix of customers from startups to large businesses that want to reduce the costs of their expenses programs and increase employee satisfaction. They include ATU, a German automobile servicing company, which has successfully digitized its entire procurement process, and Discordia, a Bulgarian logistics business with 10,000 trucks, which has issued Payhawk cards to all its drivers.
Looking to the future, it’s no exaggeration to say that Google Cloud is a foundation of our business and has given investors confidence in our operations. From a first seeding round of €3 million, early this year we closed a Series B extension of $100 million. This gives us a valuation of $1bn and makes Payhawk the first ever Bulgarian unicorn.
We now operate in 32 countries in Europe and the US, and plan to double our team by the end of the year. It feels like we’ve come a long way since we first started using Google Cloud, and I’m thrilled that we have Google Cloud as a global technology partner supporting our mission to transform expense management and financial operations worldwide.

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.
Rethinking retail with Google Cloud Retail Search

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Cloud Retail Search, part of Discovery Solutions For Retail portfolio, helps retailers significantly improve the shopping experience on their digital platform with ‘Google-quality’ search. Cloud Retail Search offers advanced search capabilities such as better understanding user intent and self-learning ranking models that help retailers unlock the full potential of their online experience.
Google Cloud’s Discovery Solutions For Retail are a set of services that can help retailers improve their digital engagement and are offered as part of our industry solutions.
Executive Summary
Retailers are always working on trying to keep up with the ever changing consumer expectations and trying to forecast the next trend that can impact sales and revenue.
The pandemic brought its own (and largely new) set of challenges which further complicated the issue over the last two years. The retailers were forced to adapt to the new consumer (low physical touch) behavior in which the browsing and product research was largely digital (endless aisle) and accelerated other trends such as buy online and pick up in stores (BOPIS), curbside pick up and pick up lockers. According to a McKinsey Global Survey from early last year, the pandemic has accelerated the pace of digital transformation by several years.
The National Retail Federation (NRF) estimates that retail sales are expected to grow between 6% and 8% in 2022 (slower growth rate than in 2021), as consumers spend more on services instead of goods, deal with inflation and higher food & gas prices due to geopolitical disruptions in the world.
And the competition continues to be fierce as ever. Amazon continues its dominance in the U.S. retail world and new PYMNTS data shows that Amazon’s share of US Ecommerce sales hit an all-time high of 56.7% in 2021.
Customers now have more choices than ever on how they want to engage with the retailers, where they want to spend the money and make their purchase. They also have increased expectations from the retailers around providing a high quality product discovery experience, which is forcing the retailers to invest heavily on improving customer engagement on their digital platforms to boost conversion rate and overall customer loyalty.
This is where Retail Search can help by providing an enhanced search experience that uses Google-quality search models to understand the customer intent and takes into account the retailer’s first party data (such as promotions, available inventory and price) for ranking results.
How is Google Cloud Retail Search Different
The Ecommerce platform on-site search use case is not new and retailers have been trying to solve it effectively for the last two decades. Most retailers recognize that search is a critical service on the platform and have spent countless resources to improve and fine tune it over the years. Yet the challenge remains. According to a Baymard Institute study in late as 2019, 61% of sites still required their users to search by the exact product type jargon the site uses.
However, users now expect the same robust and intuitive search features as is offered by Google.com and other popular web platforms, who seem to have the uncanny ability to intelligently interpret and yield relevant results to complex search queries.
Google’s decades of experience and research in search technology benefits Cloud Retail Search solution and that is what differentiates it from the competition.
- Advanced Query Understanding: Retail Search can provide more relevant results for the same query due to better query understanding features and knowing when to broaden or narrow the query results. While most search engines still rely largely on keyword based or matching tokens results, Retail Search has the advantage of being able to leverage Google search algorithms to return highly relevant results for product listings and category pages.
- Semantic Search: Intent recognition is a key requirement for semantic search and identifying what the customers mean when they enter the query is a key strength of Retail Search. This is critical for retailers since this has a direct impact on Clickthrough rate, Conversion rate and the Bounce Rate.
- Personalized Search Results: Another key differentiator for Retail Search is its ability to leverage user interaction data and ranking models to provide hyper personalized search results. Retailers are able to optimize search performance to deliver desired outcomes: better engagement, revenue, or conversions.
- Self-Learning and Self-Managed Solution: Retail Search models get better over time because of the self-learning capabilities built into the solution. In addition, the service is fully managed, which saves precious resources needed to keep it running and managing its set up.
- Strong Security Controls: The service runs on Google Cloud and follows security best practices to keep our customers’ data secure. Google never shares model weights or customer data across customers using the Retail API or other Discovery Solution products. For more details about this data use, see a description of Retail API data use.
High Level Conceptual View
Here is a simplified high-level view of Retail Search API. Retailers can call the API for the given search query and get back the results which can then be displayed on their digital properties.

The returned results contains two types of information:
- Search results: Query search results including product listings and category pages based on advanced query understanding and semantic search.
- Dynamic faceted search attributes: Faceted Search is a feature that allows further refinement of the search by providing ways to apply additional filters while returning results.
Retail Search needs the following datasets as input to train its machine learning models for search:
- Product Catalog: Information about the available products including product categories, product description, in-stock availability, and pricing.
- User Events: This is the clickstream data that contains user interaction information such as clicks and purchases.
- Inventory / Pricing Updates: Incremental updates to in-stock availability and pricing as that information is updated.
(Keeping the product catalog up to date and recording user events successfully is crucial for getting high-quality results. Set up Cloud Monitoring alerts to take prompt action in case any issues arise).
Retailers also have the ability to set up business/config rules to customize their search results and optimize for business revenue goals such as Clickthrough rate, Conversion rate, Average size order etc.
How to get started
Retail Search is generally available now and anyone with a Google cloud account can access it. If you don’t already have an account, you can start with a trial account for free here.
Establish a Success Criteria: It’s important to establish a success criteria for measuring the effectiveness of Retail search. Get a consensus on which factor(s) you want to include in scope for measuring the effectiveness of Retail Search. This could include one or two from the following: Search Conversion Rate, Search Average Order Value, Search Revenue Per Visit and Null Search Rate (No Results Found).
- Initial Set Up: Create a Google Cloud Project and set up the Retail API. When you set up the Retail API for a new project, the Google Cloud Console displays the following three panels to help you configure your Retail API project:
- Catalog: displays product catalog and a link to import catalog.
- Event: displays user events and a link to import historical user events.
- Serving configs: contains details on serving configuration and a link to create a new serving configuration.
- Measuring Performance: Retail dashboards provide metrics to help you determine how incorporating the Retail API is affecting the results. You can view summary metrics for your project on the Analytics tab of the Monitoring & Analytics page in Cloud Console.
- Set up A/B Experiments: To measure the performance of Retail Search with another search solution, you can set up A/B tests using a third-party experiment platform such as Google Optimize.
Summary:
As retailers try to navigate through the post-pandemic world where supply chain failures and digital transformation acceleration are major focus areas, they now also have to keep a close eye on the recent geopolitical challenges resulting in rising inflation and costs.
While we can all agree that in-store shopping will continue to be a major source of revenue, it is also important for retailers to tweak the in-store experience for the digital world. Trends such as buy online and pick up in stores (BOPIS), curbside pick up and pick up lockers are here to stay.
Given all the above, consumer engagement and digital experience is more important now than ever before. The cost of search abandonment is way too high and has both short and longer term impact. Retail Search is a great solution to help reduce churn, improve conversion and retention. It provides Google-quality search models to help understand customer intent and the retailers have the ability to set up business/config rules to optimize search results for business revenue goals such as Clickthrough rate, Conversion rate and Average size order.
How Google Cloud Helps SAP Admins Create Scalable, Secure Networks

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SAP forms the critical backbone of thousands of enterprises, supporting critical business functions such as finance, supply chain, warehouse management, and more. Google Cloud provides a highly scalable and resilient infrastructure to run such workloads and offers tools, such as Smart Analytics and Machine Learning that can accelerate your organization’s digital transformation.
In fact, a recent study by Forrester found that running SAP on Google Cloud can generate a 160% return on investment and a payback period of six months or less, thanks to legacy infrastructure cost savings, downtime avoidance, and productivity improvements.
How you deploy your SAP systems across your network has a tremendous impact on its availability, resilience, and performance. In addition to separate production and high-availability (HA) environments, SAP deployments typically include sandbox, development, quality assurance (QA), and disaster recovery environments as well.
Because most of the Google network is virtual, SAP administrators can easily design complex landscapes that suit your organization’s SAP deployment and organizational structure while also meeting security and operational requirements.
As you get started with SAP on Google Cloud, you’ll need to decide how to configure your networking to ensure the availability and performance of various SAP systems. Here’s a look at your options.
VPC and shared VPC
A virtual private cloud (VPC) is a secure, isolated private network hosted within Google Cloud. VPCs are global in Google Cloud, so a single VPC can span multiple regions without communicating across the public internet. Similarly, subnets can span across zones within a region. A zone represents a single failure domain, so typical SAP deployments place production and HA systems in different zones to ensure resiliency. Google Cloud simplifies this type of deployment, because subnets containing both production and HA systems can span multiple zones.
This capability also simplifies SAP clustering, since the cluster’s virtual IP (VIP) address can be in the same range as those of the production and HA machines. This configuration shields the floating IP using Google internal load balancers and is applicable to HA clustering of the application layer (ASCS and ERS) and the HANA database layer (HANA Primary and Secondary).

Shared VPCs are a feature unique to Google Cloud that allows an organization to connect resources from multiple projects to a common VPC network. This lets them communicate with each other securely and efficiently using internal IPs. You can also centrally control the network for all SAP projects (service) from the Host project while using firewalls to inspect communication between compute engines in the same subnet, and between those in different subnets. (Best practice is to limit the communication between these systems to only the required ports — typically via SAP remote function call (RFC) communication at Layer 4.)
When designing your network, start with a host project containing one or more Shared VPC networks. You can attach additional service projects to a host project, which allows them to participate in the Shared VPC. It’s common practice to have multiple service projects operated and administered by various departments or teams in your organization.
Depending on your needs, you can deploy SAP on a single Shared VPC or multiple ones. The two scenarios differ in terms of network control, SAP environment isolation, and network inspection. Let’s look more closely at these differences.
Scenario 1: Deploying SAP on a single Shared VPC
If you require only a single network inspection, deploying SAP on a single Shared VPC has the advantage of simplicity and reduces administrative overhead.
- Network control: The Shared VPC serves as the network hub, allowing central network management based on identity access management (IAM) roles for the network team(s) in both production and non-production environments.
- SAP environment isolation: You can create projects and subnets for each SAP environment. Projects help group resources together for finer IAM control and billing visibility, while subnets provide network isolation for individual SAP environments. In service projects, compute engines can communicate by default; however, you can adopt simple firewall rules to block communication between compute engines within a subnet or in separate subnets.
- Network inspection: Use Google Cloud firewalls to allow only the required ports for communication between SAP systems. Leverage network tags and service accounts to define granular control for both north-south and east-west traffic.

Scenario 2: Multiple Shared VPCs for SAP deployment
In scenarios requiring additional network inspections, you can create multiple Shared VPCs, typically one per environment. Use peering between these Shared VPCs to enable RFC communication among the SAP development, QA, and production systems.
- Network isolation: Multiple Shared VPCs are completely isolated from each other except via specific ports opened in Google Cloud firewalls. This allows additional East-West traffic inspection by a Network Virtual Appliance (NVA) within a Google Cloud network.
- Network control:As the number of Shared VPCs increases, activities such as peering and firewall policies also increase. This diminishes the central network control that Shared VPCs offer, so the network team should plan to manage the policies in each VPC separately.

Hybrid scenarios – for example, one Shared VPC for the production environment and one Shared VPC for all non-production systems — are also possible. This arrangement allows network inspection between production and non-production systems, and limits the number of central network administration layers to two.
Configuring the networking environment for multiple SAP systems can be a complex process. Thanks to Google Cloud’s Shared Virtual Clouds and other tools, SAP administrators can create scalable, secure networks that provide logic, resilience, and visibility to their cloud deployments.Learn more about these networking capabilities and our full offerings for SAP customers.
Beany’s Cloud-Based Accounting Solutions Transform Small Business Finance

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Many people start a small business that aligns with their passions, but soon discover the day-to-day running of a business is very different than anticipated. Dealing with accounting, finance, and other daily activities can quickly overwhelm even the most promising of new businesses.
Recognizing the unique challenges facing small businesses, we founded Beany. With our personalized accounting platform, small business owners can relax knowing that we will look after all their compliance and advisory needs. Business owners who use Beany also benefit because they end up freeing more time to focus on what they enjoy and do best—likely the main reasons they started their business in the first place. We prepare financial statements, minimize tax and keep an eye that our clients are paying the right amount at the right time. We also advise on business purchase and sale, valuations and forecasting for banks. In fact, we do everything that a business owner needs from their accountant, including a help desk filled with domain experts to provide free & unlimited advice and support.
As we expand our team, we’ll continue to introduce new solutions, services, and integrations that make it even easier for small businesses to prioritize business planning, balance budgets, and keep up with ever-changing tax laws. We also plan to launch Beany in new markets and extend our global footprint beyond New Zealand, Australia, and the UK.
Migrating and scaling Beany
Beany was initially developed and hosted on a virtual private server (VPS) with limited capabilities. As our subscriber base grew, we realized we needed a more scalable, secure solution to eliminate downtime and deliver a reliable customer experience. We also understood it would be challenging for our small engineering team to cost-effectively test and deploy new features without a more agile development environment.
With that in mind, we chose the secure-by-design infrastructure of Google Cloud to power Beany and help us scale our innovative accounting platform. We now use Compute Engine to cost-effectively create virtual machines (VMs) that automatically select optimal amounts of processing and memory.
In addition, we encrypt, store, and archive everything on highly secure Cloud Storage, leveraging a combination of solid-state drives (SSDs) and hard disk drives (HDDs) for hot, nearline, and coldline data. With Cloud Storage, we can replicate data between regions in under 15 minutes to enable rapid recovery and business continuity. This has been really useful moving images to data centers on the other side of the planet quickly as we primarily operate out of Sydney and London.
We also connect, create, and collaborate on Google Workspace using Google Gmail, Docs, Calendar, and Meet. Beany smoothly integrates with Google Sheets to provide live reporting from our application direct to our sales, marketing and support staff. It also makes sharing account data with our accounting clients easy and secure.
Analyzing financial data with Google Cloud AI and machine learning
Joining the Google for Startups Cloud Program gave us immediate access to Google Cloud credits which we use to cost-effectively trial and deploy additional Google Cloud solutions. We continue to evaluate Cloud Code which will help our developers more efficiently create, deploy, and integrate applications directly on Google Cloud. We’re also exploring how Google Cloud AI and machine learning products such as Vertex AI and AutoML can further revolutionize accounting with advanced financial analyses and end-to-end automation of business processes.
We can’t wait to see what we accomplish next as we grow our team and introduce new services and solutions that enable small businesses to streamline operations, lower costs, and increase profits. It’s exciting to help small business owners manage accounting and financial planning so they can spend more time doing what they love and realize their business vision.

Beany team members
If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.
World’s Largest Online-only Grocery Retailer Uses AI to Figure Which Customers Need Most Attention

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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.”
An Expert’s Opinion on What Early-stage Startups Must Know

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As lead for analytics and AI solutions at Google Cloud, my team works with startups building on Google Cloud. This puts us in the fortunate position to learn from founders and engineers about how early-stage startups’ investments can either constrain them or position them for success, even at the seed level. In this post, I want to share a few of the best practices to keep in mind as you’re building.
Understand your value proposition before diving into a technology stack
If you’re launching a startup in the cloud, you’re no doubt thinking about a technology stack, but it’s important to step back a bit and think carefully about the major value proposition that your startup offers to your customers. That value proposition is going to fundamentally drive the kind of technology that you should pick.
For example, does your system need processing in real time, or can it be done in a batch mode? Can you rely on once-a-day insights or do the insights have to come in as events happen?
Additionally, what kind of latency will your customers face? That latency makes your value proposition either usable or unusable. Early on in Google’s development, leaders realized that no one was going to wait more than a few hundred milliseconds for a web page to show them their results, and that realization drove the technology decisions that have allowed Google to scale from being a startup in a garage to being a trillion dollar company. Your startup needs to define its value to customers with this level of specificity before it can build a technology stack suited to its needs.
Focus on customer interactions
A few companies have gracefully pulled off big IT pivots that reshaped their value proposition. Netflix, for example, moved from mostly sending DVDs through the mail to becoming a streaming service and major content producer. That’s a huge shift in the user experience and the technology stack necessary to support it, even if the underlying value proposition (i.e., get content to customers) was broadly the same. But it’s also an outlier. If you’re planning for potential changes of this magnitude, rather than focused on getting your value proposition to users, you probably need to sharpen what that value proposition is.
Specifically, you need a clear vision of how customers will access and interact with your business. Typically, they’ll do so over a website or a mobile app, but there are still so many variables.
Are customers going to transmit documents? If so, in what format? Is handwriting supported or is input limited to typing? Can they use images for optical character recognition? Will it mostly be forms? Will the data be structured or unstructured? If all that sounds a little overwhelming, don’t worry, it’ll seem simpler by the end of this article—but also be aware: we’re just getting warmed up.
Imagine that most of your customers will access your business via voice, so you know you’ll want to prioritize conversational workflows. That’s a start—but dig deeper. Even if we suppose you’re usingDialogflow, a Google Cloud conversational AI platform that lets you build and deploy virtual agents, we’re still not really seeing the value proposition. How will all this work, from the beginning of a typical full customer interaction to the resolution? How many interactions will have to be facilitated over low-bandwidth connections, for example? When it comes to user interactions, make sure you can see an end-to-end use case.
Another example: you’re building a retail website, and one of your end-to-end use cases involves the customer asking if a certain amount of a given product is in stock, whether it’s one unit of the product, ten or hundreds. If the product is not sufficiently stocked, you want your app to offer similar items that are. Will your technology stack support this end-to-end use case?
These considerations are not an argument for premature optimization. There’s value in moving fast, getting minimum viable products to users, and then iterating. But in the early stages, you only get one chance to start on the right foot—and how you navigate that chance will influence a lot of dollars and effort down the road. You need to make sure you have business use cases, not just an idea, before you can start designing a technology stack.
Here’s how to get in the right frame of mind. Pick three use cases: two that are “bread and butter” and one that is technologically complex. Make sure your proposed technology stack can support all three, end to end.
Default toward higher levels of abstraction
Now that we’re in the right frame of mind, we’re ready to think about the technology stack more directly.
As a startup, you’ll need to conserve resources, and to do that, you’ll want to build at the highest level of abstraction possible for your value proposition. For example, you probably don’t want your people setting up clusters. You don’t want them configuring things if they can use a fully managed service. You want them focused on building your prototype, not managing infrastructure.

This focus has definitely informed how we create products at Google Cloud, as our canonical data stack—Pub/Sub, Dataflow, BigQuery, and Vertex AI—consists of auto-scaling and serverless products.
But management of infrastructure is not the only place where you should err toward a less-is-more philosophy.
When it comes to architecture, choose no-code over low-code and low-code over writing custom code. For example, rather than writing ETL pipelines to transform the data you need before you land it into BigQuery, you could use pre-built connectors to directly land the raw data into BigQuery. That’s no code right there. Then, transform the data into the form you need using SQL views directly in the data warehouse. This is called ELT, and it is low code. You will be a lot more agile if you choose an ELT approach over an ETL approach.
Another place is when you choose your ML modeling framework. Don’t start with custom TensorFlow models. Start with AutoML. That’s no-code. You can invoke AutoML directly from BigQuery, avoiding the need to build complex data and ML pipelines. If necessary, move on to pre-built models from TensorFlow Hub, HuggingFace, etc. That’s low-code. Build your own custom ML models only as a last resort.

Focus on getting your vision to market, not chasing technology hype
The goal is to pick the right technology stack for bringing your vision to market, generating value for customers, conserving resources, and maintaining flexibility for growth. Early IT investments should usually gravitate toward things that preserve flexibility, such as managed services built on standard protocols or open APIs, but they needn’t always rush to the flashiest technologies. The answer isn’t always ML, for example. The answer might be heuristics to start, with a path to ML once you have collected enough data. You want to make sure that your intelligence layer has enough abstraction so you can mark it up with simple rules at first, but then replace it with a more robust system as you go along.
Launch and iterate fast with these principles
The preceding discussion is a reminder that your most expensive resource is your people—and that you really want them to be focused on building your prototype, minimum viable product or production app You want to launch fast and iterate fast, and the only way you can do that is by focusing on the things that differentiate you.
But regardless of the technologies you use, the bottom line is the same: follow these four principles.
- Figure out your major value proposition and design your tech stack around it.
- Be very careful about user interactions. User experience is super important; you need to make sure you deliver the kind of experience that your customers have grown to expect.
- When you’re building, pick the highest possible level of abstraction possible—the most fully managed tools and no-code/low-code frameworks that give you the functionality that you need.
- Instead of choosing new or flashy technologies, consider if you can build a “good enough” minimum viable product quickly and come back to a better implementation later.
To learn more about why startups are choosing Google Cloud, click here.
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