Trend 2: Google Research on Machine Learning Themes for 2022 and Beyond!
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Trend 2: Continued Efficiency Improvements for ML
Improvements in efficiency — arising from advances in computer hardware design as well as ML algorithms and meta-learning research — are driving greater capabilities in ML models. Many aspects of the ML pipeline, from the hardware on which a model is trained and executed to individual components of the ML architecture, can be optimized for efficiency while maintaining or improving on state-of-the-art performance overall. Each of these different threads can improve efficiency by a significant multiplicative factor, and taken together, can reduce computational costs, including CO2 equivalent emissions (CO2e), by orders of magnitude compared to just a few years ago. This greater efficiency has enabled a number of critical advances that will continue to dramatically improve the efficiency of machine learning, enabling larger, higher quality ML models to be developed cost effectively and further democratizing access. I’m very excited about these directions of research!
Continued Improvements in ML Accelerator Performance
Each generation of ML accelerator improves on previous generations, enabling faster performance per chip, and often increasing the scale of the overall systems. Last year, we announced our TPUv4 systems, the fourth generation of Google’s Tensor Processing Unit, which demonstrated a 2.7x improvement over comparable TPUv3 results in the MLPerf benchmarks. Each TPUv4 chip has ~2x the peak performance per chip versus the TPUv3 chip, and the scale of each TPUv4 pod is 4096 chips (4x that of TPUv3 pods), yielding a performance of approximately 1.1 exaflops per pod (versus ~100 petaflops per TPUv3 pod). Having pods with larger numbers of chips that are connected together with high speed networks improves efficiency for larger models.
ML capabilities on mobile devices are also increasing significantly. The Pixel 6 phone features a brand new Google Tensor processor that integrates a powerful ML accelerator to better support important on-device features.
Our use of ML to accelerate the design of computer chips of all kinds (more on this below) is also paying dividends, particularly to produce better ML accelerators.
Continued Improvements in ML Compilation and Optimization of ML Workloads
Even when the hardware is unchanged, improvements in compilers and other optimizations in system software for machine learning accelerators can lead to significant improvements in efficiency. For example, “A Flexible Approach to Autotuning Multi-pass Machine Learning Compilers” shows how to use machine learning to perform auto-tuning of compilation settings to get across-the-board performance improvements of 5-15% (and sometimes as much as 2.4x improvement) for a suite of ML programs on the same underlying hardware. GSPMD describes an automatic parallelization system based on the XLA compiler that is capable of scaling most deep learning network architectures beyond the memory capacity of an accelerator and has been applied to many large models, such as GShard-M4, LaMDA, BigSSL, ViT, MetNet-2, and GLaM, leading to state-of-the-art results across several domains.
Human-Creativity–Driven Discovery of More Efficient Model Architectures
Continued improvements in model architectures give substantial reductions in the amount of computation needed to achieve a given level of accuracy for many problems. For example, the Transformer architecture, which we developed in 2017, was able to improve the state of the art on several NLP and translation benchmarks while simultaneously using 10x to 100x less computation to achieve these results than a variety of other prevalent methods, such as LSTMs and other recurrent architectures. Similarly, the Vision Transformer was able to show improved state-of-the-art results on a number of different image classification tasks despite using 4x to 10x less computation than convolutional neural networks.
Machine-Driven Discovery of More Efficient Model Architectures
Neural architecture search (NAS) can automatically discover new ML architectures that are more efficient for a given problem domain. A primary advantage of NAS is that it can greatly reduce the effort needed for algorithm development, because NAS requires only a one-time effort per search space and problem domain combination. In addition, while the initial effort to perform NAS can be computationally expensive, the resulting models can greatly reduce computation in downstream research and production settings, resulting in greatly reduced resource requirements overall. For example, the one-time search to discover the Evolved Transformer generated only 3.2 tons of CO2e (much less than the 284t CO2e reported elsewhere; see Appendix C and D in this joint Google/UC Berkeley preprint), but yielded a model for use by anyone in the NLP community that is 15-20% more efficient than the plain Transformer model. A more recent use of NAS discovered an even more efficient architecture called Primer (that has also been open-sourced), which reduces training costs by 4x compared to a plain Transformer model. In this way, the discovery costs of NAS searches are often recouped from the use of the more-efficient model architectures that are discovered, even if they are applied to only a handful of downstream uses (and many NAS results are reused thousands of times).
NAS has also been used to discover more efficient models in the vision domain. The EfficientNetV2 model architecture is the result of a neural architecture search that jointly optimizes for model accuracy, model size, and training speed. On the ImageNet benchmark, EfficientNetV2 improves training speed by 5–11x while substantially reducing model size over previous state-of-the-art models. The CoAtNet model architecture was created with an architecture search that uses ideas from the Vision Transformer and convolutional networks to create a hybrid model architecture that trains 4x faster than the Vision Transformer and achieves a new ImageNet state of the art.
The broad use of search to help improve ML model architectures and algorithms, including the use of reinforcement learning and evolutionary techniques, has inspired other researchers to apply this approach to different domains. To aid others in creating their own model searches, we have open-sourced Model Search, a platform that enables others to explore model search for their domains of interest. In addition to model architectures, automated search can also be used to find new, more efficient reinforcement learning algorithms, building on the earlier AutoML-Zero work that demonstrated this approach for automating supervised learning algorithm discovery.
Use of Sparsity
Sparsity, where a model has a very large capacity, but only some parts of the model are activated for a given task, example or token, is another important algorithmic advance that can greatly improve efficiency. In 2017, we introduced the sparsely-gated mixture-of-experts layer, which demonstrated better results on a variety of translation benchmarks while using 10x less computation than previous state-of-the-art dense LSTM models. More recently, Switch Transformers, which pair a mixture-of-experts–style architecture with the Transformer model architecture, demonstrated a 7x speedup in training time and efficiency over the dense T5-Base Transformer model. The GLaM model showed that transformers and mixture-of-expert–style layers can be combined to produce a model that exceeds the accuracy of the GPT-3 model on average across 29 benchmarks using 3x less energy for training and 2x less computation for inference. The notion of sparsity can also be applied to reduce the cost of the attention mechanism in the core Transformer architecture.
The use of sparsity in models is clearly an approach with very high potential payoff in terms of computational efficiency, and we are only scratching the surface in terms of research ideas to be tried in this direction.
Each of these approaches for improved efficiency can be combined together so that equivalent-accuracy language models trained today in efficient data centers are ~100 times more energy efficient and produce ~650 times less CO2e emissions, compared to a baseline Transformer model trained using P100 GPUs in an average U.S. datacenter using an average U.S. energy mix. And this doesn’t even account for Google’s carbon-neutral, 100% renewable energy offsets. We’ll have a more detailed blog post analyzing the carbon emissions trends of NLP models soon.
An AI-Powered Cost Cutting Guide: 8 Strategies for Maximizing Profits
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We are increasingly seeing one question arise in virtually every customer conversation: How can the organization save costs and drive new revenue streams?
Everyone would love a crystal ball, but what you may not realize is that you already have one. It’s in your data. By leveraging Data Cloud and AI solutions, you can put your data to work to achieve your financial objectives. Combining your data and AI reveals opportunities for your business to reduce expenses and increase profitability, which is especially valuable in an uncertain economy.
Google Cloud customers globally are succeeding in this effort, across industries and geographies. They are improving ROI by saving money and creating new revenue streams. We have distilled the strategies and actions they are implementing—along with customer examples and tips—in our eBook, “Make Data Work for You.” In it, you’ll find ways you can pare costs, increase profitability, and monetize your data.
Find money in your data
Our Google Cloud teams have identified eight strategies that successful organizations are pursuing to trim expenses and uncover new sources of revenue through intelligent use of data and AI. These use cases range from scaling small efficiencies in logistics to accelerating document-based workflows, monetizing data, and optimizing marketing spend.
The results are impressive. They include massive cost savings and additional revenue. On-time deliveries have increased sharply at one company, and procure-to-pay processing costs have fallen by more than half at another. Other organizations have reaped big gains in ecommerce upselling and customer satisfaction.
We’ve found that businesses across every industry and around the globe are able to take action on at least one of these eight strategies. Contrary to common misperceptions, implementation does not require massive technology changes, crippling disruption to your business, or burdensome new investments.
What success looks like
If you worry your business is not ready or you need to gain buy-in from leadership, the success stories of the 15 companies in this report are helpful examples. Learning how organizations big and small, in different industries and parts of the world, have implemented these data and AI strategies makes the opportunities more tangible.
Carrefour
Among the world’s largest retailers, Carrefour operates supermarkets, ecommerce, and other store formats in more than 30 countries. To retain leadership in its markets, the company wanted to strengthen its omnichannel experience.
Carrefour moved to Google Data Cloud and developed a platform that gives its data scientists secure, structured access to a massive volume of data in minutes. This paved the way for smarter models of customer behavior and enabled a personalized recommendation engine for ecommerce services.
The company saw a 60% increase in ecommerce revenue during the pandemic, which it partly attributes to this personalization.
ATB Financial
ATB Financial, a bank in the Canadian province of Alberta, uses its data and AI to provide real-time personalized customer service, generating more than 20,000 AI-assisted conversations monthly. Machine learning models enable agents to offer clients real-time tailored advice and product suggestions.
Moreover, marketing campaigns and month-end processes that used to take five to eight hours now run in seconds, saving over CA$2.24 million a year.
Bank BRI
Bank BRI, which is owned by the Indonesian government, has 75.5 million clients. Through its use of digital technologies, the institution amasses a lot of valuable data about this large customer base.
Using Google Cloud, the bank packages this data through more than 50 monetized open APIs for more than 70 ecosystem partners who use it for credit scoring, risk management, and other applications. Fintechs, insurance companies, and financial institutions don’t have the talent or the financial resources to do quality credit scoring and fraud detection on their own, so they are turning to Bank BRI.
Early in the effort, the project generated an additional $50 million in revenue, showing how data can drive new sources of income.
How to get going now
“Make Data Work for You” will help you launch your financial resiliency initiatives by outlining the steps to get going. The process lays the groundwork for realizing your own cost savings and new revenue streams by leveraging data and AI.
Among these steps include building frameworks to operate cost efficiently, make informed decisions related to spending and optimize your data and AI budgets.
Operate: Billing that’s specific to your use-case
Control your costs by choosing data and analytics vendors who offer industry-leading data storage solutions and flexible pricing options. For example, multiple pricing options such as flat rate and pay-as-you-go allow you to optimize your spend for best price-performance.
Inform: make informed decisions based on usage
Use your cloud vendor’s dashboards or build a billing data report to gain insights on your spending over time. Make use of cost recommendations and other forecasting tools to predict what your future expenses are going to be.
Optimize: Never pay more than you use
While planning data analytics capacity, organizations often overprovision and overpay than what they actually use. Consider migrating your workloads that have unpredictable demand to a data warehousing solution that offers granular level autoscaling features so that you never have to pay for more than what you use.
There are other key moves that will set your initiative up for success including how to shorten time to value in building AI models and measuring impact. You can find details in the report.
A brighter future
The teams at Google Cloud helped the companies in “Make Data Work for You,” along with many more organizations, use their data and AI to achieve meaningful results. Download the full report to see how you can too.
Wayfair: Carving the path towards MLOps excellence with Vertex AI
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Editor’s note: In part one of this blog, Wayfair shared how it supports each of its 30 million active customers using machine learning (ML). Wayfair’s Vinay Narayana, Head of ML Engineering, Bas Geerdink, Lead ML Engineer, and Christian Rehm, Senior Machine Learning Engineer, take us on a deeper dive into the ways Wayfair’s data scientists are using Vertex AI to improve model productionization, serving, and operational readiness velocity. The authors would like to thank Hasan Khan, Principal Architect, Google for contributions to this blog.
When Google announced its Vertex AI platform in 2021, the timing coincided perfectly with our search for a comprehensive and reliable AI Platform. Although we’d been working on our migration to Google Cloud over the previous couple of years, we knew that our work wouldn’t be complete once we were in the cloud. We’d simply be ready to take one more step in our workload modernization efforts, and move away from deploying and serving our ML models using legacy infrastructure components that struggle with stability and operational overhead. This has been a crucial part of our journey towards MLOps excellence, in which Vertex AI has proved to be of great support.
Carving the path towards MLOps excellence
Our MLOps vision at Wayfair is to deliver tools that support the collaboration between our internal teams, and enable data scientists to access reliable data while automating data processing, model training, evaluation and validation. Data scientists need autonomy to productionize their models for batch or online serving, and to continuously monitor their data and models in production. Our aim with Vertex AI is to empower data scientists to productionize models and easily monitor and evolve them without depending on engineers. Vertex AI gives us the infrastructure to do this with tools for training, validating, and deploying ML models and pipelines.
Previously, our lack of a comprehensive AI platform resulted in every data science team having to build their own unique model productionization processes on legacy infrastructure components. We also lacked a centralized feature store, which could benefit all ML projects at Wayfair. With this in mind, we chose to focus our initial adoption of the Vertex AI platform on its Feature Store component.
An initial POC confirmed that data scientists can easily get features from the Feature Store for training models, and that it makes it very easy to serve the models for batch or online inference with a single line of code. The Feature Store also automatically manages performance for batch and online requests. These results encouraged us to evaluate the adoption of Vertex AI Pipelines next, as the existing tech for workflow orchestration at Wayfair slowed us down greatly. As it turns out, both of these services are fundamental to several models we build and serve at Wayfair today.
Empowering data scientists to focus on building world-class ML models
Since adopting Vertex AI Feature Store and AI Pipelines, we’ve added a couple of capabilities at Wayfair to significantly improve our user experience and lower the bar to entry for data scientists to leverage Vertex AI and all it has to offer:
- Building a CI/CD and scheduling pipeline
Working with the Google team, we built an efficient CI/CD and scheduling pipeline based on the common tools and best practices at Wayfair and Google. This enables us to release Vertex AI Pipelines to our test and production environments, leveraging cloud-native services.
Keeping in mind that all our code is managed in GitHub Enterprise, we have dedicated repositories for Vertex AI Pipelines where the Kubeflow code and definitions of the Docker images are stored. If a change is pushed to a branch, a build starts in the Buildkite tool automatically. The build contains several steps, including unit and integration tests, code linting, documentation generation and automated deployment. The most important artifacts that are released at the end of the build are the Docker image and the compiled Kubeflow template. The Docker image is released to the Google Cloud Artifact Registry and we store the Kubeflow template in a dedicated Google Cloud Storage Bucket, fully versioned and secured. This way, all the components we need to run a Vertex AI Pipeline are available once we run a pipeline (manually or scheduled).
To schedule pipelines, we developed a dedicated Cloud Function that has the permissions to run the pipeline. This Function listens to a Pub/Sub topic where we can publish messages with a defined schema that indicates which pipeline to run with which parameters. These messages are published from a simple cron job that runs according to a set schedule on Google Kubernetes Engine. This way, we have a decoupled and secure environment for scheduling pipelines, using fully-supported and managed infrastructure.
Abstracting Vertex AI services with a shared library
We abstracted the relevant Vertex AI services currently in use with a thin shared Python library to support the teams that develop new software or migrate to Vertex AI. This library, called wf-vertex, contains helper methods, examples, and documentation for working with Vertex AI, as well as guidelines for Vertex AI Feature Store, Pipelines, and Artifact Registry.
One example is the run_pipeline method, which publishes a message with the correct schema to the Pub/Sub topic so that a Vertex AI pipeline is executed. When scheduling a pipeline, the developer only needs to call this method without having to worry about security or infrastructure configuration:
@cli.command()
def trigger_pipeline() -> None:
from wf_vertex.pipelines.pipeline_runner import run_pipeline
run_pipeline(
template_bucket= f"wf-vertex-pipelines-{env}/{TEAM}", # this is the location of the template, where the CI/CD has written the compiled templates to
template_filename="sample_pipeline.json", # this is the filename of the pipeline template to run
parameter_values= {"import_date": today()} # it’s possible to add pipeline parameters
)Most notable is the establishment of a documented best practice for enabling hyperparameter tuning in Vertex AI Pipelines, which speeds up hyperparameter tuning times for our data scientists from two weeks to under one hour.
Because it is not yet possible to combine the outputs of parallel steps (components) in Kubeflow, we designed a mechanism to enable this. It entails defining parameters at runtime and executing the resulting steps in parallel via the Kubeflow parallel-for operator. Finally, we created a step to combine the results of these parallel steps and interpret the results. In turn, this mechanism allows us to select the best model in terms of accuracy from a set of candidates that are trained in parallel:
Our CI/CD, scheduling pipelines, and shared library have reduced the effort of model productionization from more than three months to about four weeks. As we continue to build the shared library, and as our team members continue to gain expertise in using Vertex AI, we expect to further reduce this time to two weeks by the end of 2022.
Looking forward to more MLOps capabilities
Looking ahead, our goal is to fully leverage all the Vertex AI features to continue modernizing our MLOps stack to a point where data scientists are fully autonomous from engineers for any of their model productionization efforts. Next on our radar are Vertex AI Model Registry and Vertex ML Metadata alongside making more use of AutoML capabilities. We’re experimenting with Vertex AI for AutoML models and endpoints to benefit some use cases at Wayfair next to the custom models that we’re currently serving in production.
We’re confident that our MLOps transformation will introduce several capabilities to our team, including: automated data and model monitoring steps to the pipeline, as well as metadata management, and architectural patterns in support of real-time models requiring access to Wayfair’s network. We also look forward to performing continuous training of models by fully automating the ML pipeline that allows us to achieve continuous integration, delivery, and deployment of model prediction services.
We’ll continue to collaborate and invest in building a robust Wayfair-focused Vertex AI shared library. The aim is to eventually migrate 100% of our batch models to Vertex AI. Great things to look forward to on our journey towards MLOps excellence.
Increasing Production Efficiency: How AI Can Improve Asset Utilization and Minimize Downtime
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Today, manufacturers are advancing on their factory digitalization journey, betting on innovative technologies to strengthen competitiveness, deliver sustainable growth, and offer new services. Macroeconomic factors – such as high energy costs, increasing labor, and raw material shortages – drive the need for urgent operational optimizations and automation.
Cloud capabilities have matured at an accelerated pace, giving manufacturers practical avenues to achieve these goals. Manufacturers are finding new ways to bring AI and machine learning (ML) to practical use cases, like predictive maintenance, anomaly detection, and asset utilization management. However, manufacturers struggle to adopt AI at scale due to challenges around data accessibility, infrastructure, and technology.
Google Cloud created purpose-built tools and solutions to organize manufacturing data, make it accessible and useful, and help manufacturers quickly take significant steps on this journey by reducing the time to value. In this post, we will explore a practical example of how manufacturers can use Google Cloud manufacturing solutions to train, deploy and extract value from ML-enabled capabilities to predict asset utilization and maintenance needs.
The journey to machine learning insights starts with accessible data
The first step to a successful machine learning project is to unify necessary data in a common repository. For this, we will use Manufacturing Connect, the factory edge platform co-developed with Litmus Automation, to connect to manufacturing assets and stream the asset telemetries to Pub/Sub.
After the telemetry messages are published to Pub/Sub, Dataflow will identify each message based on its structure and apply corresponding normalizations and transformations, which are preconfigured in Manufacturing Data Engine. Once the messages are processed, the messages will be routed to Cloud Storage, BigQuery, and/or Cloud BigTable based on user configuration.
Figure 1. High level architecture diagram of machine learning with Manufacturing Data Engine
To train a machine learning model, manufacturers can use Vertex AI AutoML to build a no-code model based on the training data stored in the Manufacturing Data Engine.
Then, users can trigger a batch prediction job in Vertex AI or export the AutoML model to run on the edge component of Manufacturing Connect for real-time prediction. Regardless of the model deployment methods, the prediction and explanation results will be ingested into Manufacturing Data Engine, which can be analyzed and visualized in Looker.
A blueprint for classifying asset condition
The following scenario is based on a hypothetical company, Cymbal Materials. This company is a factitious discrete manufacturing company that runs 50+ factories in 10+ countries. 90% of Cymbal Materials manufacturing processes involve milling, which are accomplished using industrial computer numerical control (CNC) milling machines. Although their factories implement routine maintenance checklists, there are unplanned and unknown failures that happen occasionally. However, many of the Cymbal Materials factory workers lack the experience to identify and troubleshoot failures due to labor shortage and high turnover rate in their factories. Hence, Cymbal Materials is working with Google Cloud to build a machine learning model that can identify and analyze failures on top of Manufacturing Connect, Manufacturing Data Engine, and Vertex AI.
For the pilot, Cymbal Materials forms a team of manufacturing engineers and data scientists to evaluate the feasibility of solving the tool wear detection problem. To avoid compliance concern, the Cymbal Materials team chooses to start with a public tool wear detection dataset hosted on Kaggle. This dataset is collected from running machining experiments on 2″ x 2″ x 1.5″ wax blocks in a CNC milling machine. The dataset contains measurements from the 4 motors (X,Y, Z axes and spindle) and program values in the CNC machine, which maps well to the data that Cymbal Materials collects for their CNC milling machines.
To start, the Cymbal Materials data scientists download the tool wear detection dataset from Kaggle and upload the dataset to Cloud Storage. Then, the data scientists use Vertex AI to:
- Perform exploratory data analysis using Vertex AI Workbench
- Train machine learning models using Vertex AI AutoML
- Deploy machine learning models to perform batch prediction and export AutoML models for edge deployment
- Interpret predictions using Vertex Explainable AI
After seeing great performance of the AutoML tabular model, the Cymbal Materials data scientists decide to use the AutoML model to predict on the actual CNC milling machine telemetries from their factories and validate the generalizability of the AutoML model. They ask the manufacturing engineers to deploy Manufacturing Connect in a Cymbal Materials factory and stream telemetries for one CNC milling machine to the Manufacturing Data Engine.
Manufacturing Connect includes an edge component that can gather data from manufacturing assets via an extensive library of 250+ communication protocols. The edge component of Manufacturing Connect comes with built-in Node-RED and Docker runtime, which support running custom workflows and machine learning models at the edge.
Using pre-defined hierarchies, Manufacturing Connect pushes asset telemetries and states to Pub/Sub.
After the factory operational data are ingested into Pub/Sub, Cymbal Materials uses Manufacturing Data Engine to:
- Normalize, transform, and contextualize real-time operational data with slowly changing metadata
- Batch ingest historical operational data and prediction results
- Route data dynamically to Cloud Storage, BigQuery, and/or Cloud BigTable
Figure 5. Manufacturing Data Engine configuration in Manufacturing Connect.
Using the trained AutoML tabular model and real-time telemetries from CNC milling machines, the data scientists trigger a batch prediction job on the CNC milling machine telemetries in BigQuery. The data scientists configure the batch prediction to output prediction results in Cloud Storage such that Manufacturing Data Engine can batch ingest the prediction results after the batch prediction job completes.
To consume the prediction results, the Cymbal Materials manufacturing engineers use Looker to create visualizations. The dashboard allows the manufacturing engineers to:
- Visualize the CNC milling machine actual and predicted tool conditions over time
- Explain the prediction results by summarizing the top attributing features
- Create alerts based on the predicted tool condition for their assets
- Take actions by contacting the supplier and/or scheduling maintenance for their assets
Figure 6. CNC mill wear prediction displayed in a Looker dashboard.
From edge to cloud, improving production efficiency for manufacturers
To support the entire factory digitalization value journey, manufacturers are looking for capabilities from simple visualizations to predictive ML models. Robust solutions, such as the one covered here, provide rapid paths for engineers to extract insight from their factory data.
Having a common data repository for manufacturing data, industry-leading machine learning platform, and versatile dashboard components accelerate manufacturer’s digital transformation.
This solution brings the best of Google Cloud’s data analytics and artificial intelligence capabilities in an industrial environment. Manufacturing Connect creates the link between industrial machinery and Manufacturing Data Engine, the cloud platform where the manufacturing data are processed, normalized, contextualized, and stored in a ready-to-consume format. Vertex AI can build, deploy, and scale machine learning models using data stored in the Manufacturing Data Engine. Vertex AI includes AutoML and Workbench for training models without code and training custom models with code-first experience respectively.
Learn more about how Google Cloud is transforming manufacturing to meet changing customer expectations at our Google Cloud Next Manufacturing playlist.
What’s next
Headless e-Commerce is the Next Big Thing in Retail
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Headless Ecommerce
In the last couple of years there has been a shift in the way retailers approach ecommerce: where in the past development efforts were prioritized around building a solid foundation for backend transactions and operations now it is clear that companies in this space are focusing on differentiating themselves by creating unique shopping experiences that increase engagement and reduce friction.
But how can development teams spend the necessary time designing and writing code for this kind of interactions while also having to seamlessly maintain ecommerce vital components like online catalogs, shopping carts and checkout payment processes? Enter headless commerce.
Headless commerce (HC) helps companies of all sizes to innovate, develop and launch in less time and using fewer resources by decoupling backend and frontend. Headless solution providers empower online retailers by offering a balance between flexibility and optimization through pre-built api-accessible modules and components that can be easily plugged into their frontend architecture. This translates into rapid development while keeping desired levels of security, compliance, integration and responsiveness.
This composable approach enables dev teams not only to create new features but also connect other ecommerce components with less effort which is critical when responding to business trends. But above all, the main benefit retailers receive from HC, is owning and controlling the frontend for an engaging customer journey as well as quickly launching new experiences.
Google Cloud + commercetools
commercetools, a leader in the headless commerce space, has partnered with Google Cloud to make their cloud-native SaaS platform available in the Google Cloud Marketplace. With a flexible API system (REST API and GraphQL), commercetools’ architecture has been designed to meet the needs of demanding omnichannel ecommerce projects while offering real flexibility to modify or extend its features. It supports a variety of storefront providers like Vue Storefront, offers a large set of integrations and supports microservice-based architectures. All this while providing access to multiple programming languages (PHP, JS, Java) via its SDK tools.
commercetools and Google Cloud provide development teams with all the tools to build high-quality digital commerce systems. Google Cloud’s scalability, AI/ML components, API management capabilities and CI/CD tools are a perfect fit to build frontend shopping experiences that easily integrate with the commercetools stack. Developers can take advantage of this compatibility by:
- Integrating systems with Google’s Retail Search, Recommendations AI and Vision Product Search
- Injecting serverless functions into commercetools using Google Cloud Functions
- Extending and integrating commercetools via Events handled by Pub/Sub
- Managing 3rd party, legacy, microservices and commercetools APIs with Apigee
- Selecting the Google Cloud region commercetools uses for zero latency for custom apps
- Expanding their microservice ecosystem with components like Cloud Storage, Cloud SQL, Firestore and BigQuery
Additionally, commercetools allows ecommerce solutions to tap into the wider Google Ecosystem by providing authoritative data via Merchant Center, advertising via product listing ads and selling via Google Shopping.
Architecture Overview
As mentioned previously, headless commerce is increasingly preferred by retailers who want to own and control the ‘front-end’ for providing and enabling an engaging and differentiated user and shopping experiences.
The approach involves a loosely coupled architecture that separates ‘front end’ from the ‘back end’ of a digital commerce application. The front end is typically built and managed by the retailer. They want to leverage an independent software vendor (ISV) offered, ready-to-use ‘back-end’ commerce building blocks for capabilities, such as product catalog, pricing, promotions, cart, shipping, account and others.
Most retailers want to invest their time and resources in building a front end that requires an agile development model to introduce new and tweaking existing user experiences to acquire and retain customers. A few retailers that do not have an in-house web development team may choose an ISV that offers ready to use front end. The front end is a web app and designed as a progressive web application (PWA) on Google Cloud. The backend is a headless commerce offered by an ISV, such as commercetools. The backend commerce capabilities are built as a set of microservices, exposed as APIs, run cloud-native and implemented as headless. It is commonly referred to as the “MACH” solution. The API-first approach of the architecture allows easily integrating ‘best of breed’ capabilities built internally and/or offered by 3rd party ISVs.
Leveraging Google Cloud Components
The architecture of the front end will be implemented on Google Cloud and will integrate with the ISV’s headless commerce back end that runs natively in Google Cloud.
The front end will be designed using cloud-native services for
- PWA web app development (Google Kubernetes Engine, CI/CD services),
- Google Product Discovery solution that includes Retail Search and Vision API Product Search for serving product search (text and image) and Recommendations AI for serving recommendations.
- Storage (Cloud Storage), Database (Cloud SQL, Cloud Firestore), and edge caching for content delivery (Cloud CDN)
- Networking (Cloud DNS, Global Load Balancing), and
- Security (Cloud Armor for DDoS, API Defense for API protection)
Additionally, API management (Apigee on Google Cloud) can be used to orchestrate interactions of the front end with the APIs of the backend commerce services. The API management’s capability will be used for accessing the services of on-premises systems, such as ERP, order management system (OMS), warehouse management system (WMS) as needed to support the functioning of digital commerce application. Alternatively, depending on the frontend capabilities, developers can use middleware to build custom services and route requests.
What’s next?
A considerable number of retailers have adopted headless commerce and are now focusing on adopting best practices and leveraging the agility that comes with this approach. Just like commercetools offers robust components that meet the retailer’s backend operational needs (Product Catalog, Order Management, Carts, Payments, etc), Google Cloud’s Compute, Networking, Severless and AI/ML services provide the agility and flexibility required by development teams to quickly and easily extend their frontend capabilities.
commercetools and Google Cloud work seamlessly together because they both prioritize ease of integration, scalability, security and iterability while providing ready-to-use building blocks. It also helps that commercetools backend runs on Google Cloud. Once an initial foundation of Google Cloud and commercetools has been established, adding new commerce modules and extending functionally of the current ones becomes a straightforward process that allows to route efforts to innovation initiatives. In the end, the main beneficiaries of this technical synergy are the shoppers that enjoy experiences which increase engagement and minimize friction.
Alternatively, retailers can also save time and resources by relying on frontend integrations. commercetools offers a variety of third-party solutions that can effortlessly be added to a headless commerce architecture. These integrations as well as other important headless commerce extensions will be explored in future blog entries. In the meantime, all the necessary tools to leverage headless commerce can be found in just one place:
Get started with commercetools on the Google Cloud Marketplace today!
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Since 1994, IDOM, Japan’s leading buyer and retailer of used cars, has enjoyed success in the auto industry with a simple yet traditional business model: buy pre-owned vehicles directly from car owners and auction them to third-party dealers, or sell them to other consumers at retail stores.
In an increasingly frugal economy, Japanese consumers are buying fewer new cars. Most young urban workers take public transport, a cheap alternative for getting from point A to point B. Additionally, people who do own cars are keeping them longer: the average period of ownership is 7.5 to 10 years.
Although Japanese consumers are buying fewer new cars, used car sales are steadily on the uptick. Pre-owned car sales in Japan rose by 1.7% in 2015—the first big spike in three years. IDOM dominates this industry with about 40% market share, and it wanted to continue to take advantage of this growing market trend.
To do so, IDOM reinvented its marketing strategy, using Google’s machine-learning technology to make full use of its available customer data. The brand’s main goal was to attract more prospective car sellers to its physical stores because (1) that’s where they could close trade-in deals and (2) sourcing used cars efficiently is integral to the success of its business model.
Secondly, rather than measure marketing success solely on clicks, views, brand awareness, or favorability, IDOM relied on data to determine which advertising techniques—including phone calls and customized ads to prospective sellers—turned a real profit.
After successfully identifying and targeting existing car owners with a high chance of selling their car, it was only natural for IDOM to leverage this approach to identify and target potential customers with a higher chance of buying a car—key for the other side of its business as well. Thus, IDOM also showed customized ads to potential car buyers and prioritized follow-up phone calls to high-value potential car buyers.
Find out how IDOM increased the number of sellers and buyers visiting its stores by a whopping 25% and grew gross profits by 300% in a key market segment. Download now!
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