How FLYR and Google Cloud Help Airlines Forecast Demand and Set Prices - Build What's Next

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How FLYR and Google Cloud Help Airlines Forecast Demand and Set Prices

FLYR Labs is an international team of industry experts and specialists in revenue management that works to bring in intelligence to the airlines companies. FLYR uses machine learning and AI to help predict demand and optimize price so that every airline is operating its complete capacity. Watch the video from Architecting with Google Cloud to deep-dive into a use case with FLYR involving the use of historic data, competitors data and future information to build model for outputting demand, set prices and optimize revenue. You can can even have a quick view of the FLYR ML platform!

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How Marketers Can Turn Information into Action with Machine Learning

The biggest challenge marketers face with machine learning is, “how to get starter”? Instead of getting overwhelmed, they should focus on the applied machine learning by using the algorithms that are already built.

Cassie Kozyrkov, the chief decision scientist with Google Cloud, says that marketers who are overwhelmed by everything they’re hearing about machine learning should focus on key ingredients, not building an entire kitchen.

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A Breakdown of Cloud-based Data Ingestion Practices

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Typically data engineering teams spend significant time and resources in bringing in data from disparate sources to add to their organization's data warehouse. Read to learn principles that help answer business questions on building data pipelines.

Businesses around the globe are realizing the benefits of replacing legacy data silos with cloud-based enterprise data warehouses, including easier collaboration across business units and access to insights within their data that were previously unseen. However, bringing data from numerous disparate data sources into a single data warehouse requires you to develop pipelines that ingest data from these various sources into your enterprise data warehouse. Historically, this has meant that data engineering teams across the organization procure and implement various tools to do so. But this adds significant complexity to managing and maintaining all these pipelines and makes it much harder to effectively scale these efforts across the organization. Developing enterprise-grade, cloud-native pipelines to bring data into your data warehouse can alleviate many of these challenges. But, if done incorrectly, these pipelines can present new challenges that your teams will have to spend their time and energy addressing. 

Developing cloud-based data ingestion pipelines that replicate data from various sources into your cloud data warehouse can be a massive undertaking that requires significant investment of staffing resources. Such a large project can seem overwhelming and it can be difficult to identify where to begin planning such a project. We have defined the following principles for data pipeline planning to begin the process. These principles are intended to help you answer key business questions about your effort and begin to build data pipelines that address your business and technical needs. Each section below details a principle of data pipelines and certain factors your teams should consider as they begin developing their pipelines.

Principle 1: Clarify your objectives

The first principle to consider for pipeline development is clarify your objectives. This can be broadly defined as taking a holistic approach to pipeline development that encompasses requirements from several perspectives: technical teams, regulatory or policy requirements, desired outcomes, business goals, key timelines, available teams and their skill sets, and downstream data users. Clarifying your objectives clearly identifies and defines requirements from each key stakeholder at the beginning of the process and continually checks development against these requirements to ensure the pipelines built will meet these requirements.This is done by first clearly defining the desired end state for each project in a way that addresses a demonstrated business need of downstream data users. Remember that data pipelines are almost always the means to accomplish your end state, rather than the end state itself. An example of an effectively defined end-state is “enabling teams to gain a better understanding of our customers by providing access to our CRM data within our cloud data warehouse” rather than “move data from our CRM to our cloud data warehouse”. This may seem like a merely semantic difference, but framing the problem in terms of business needs helps your teams make technical decisions that will best meet these needs. 

After clearly defining the business problem you are trying to solve, you should facilitate requirement gathering from each stakeholder and use these requirements to guide the technical development and implementation of your ingestion pipelines. We recommend gathering stakeholders from each team, including downstream data users, prior to development to gather requirements for the technical implementation of the data pipeline. These will include critical timelines, uptime requirements, data update frequency, data transformation, DevOps needs, and security, policy, or regulatory requirements by which a data pipeline must meet.

Principle 2: Build your team

The second principle to consider for pipeline development is build your team. This means ensuring you have the right people with the right skills available in the right places to develop, deploy, and maintain your data pipelines. After you have gathered your pipeline requirements, you can begin to develop a summary architecture that will be used to build and deploy your data pipelines. This will help you identify the human talent you will need to successfully build, deploy, and manage these data pipelines and identify any potential shortfalls that would require additional support from either third-party partners or new team members.

Not only do you need to ensure you have the right people and skill sets available in aggregate, but these individuals need to be effectively structured to empower them to maximize their abilities. This means developing team structures that are optimized for each team’s responsibilities and their ability to support adjacent teams as needed.

This also means developing processes that prevent blockers to technical development whenever possible, such as ensuring that teams have all of the appropriate permissions they need to move data from the original source to your cloud data warehouse without violating the concept of least privilege. Developers need access to the original data source (depending on your requirements and architecture) in addition to the destination data warehouse. Examples of this are ensuring that developers have access to develop and/or connect to a Salesforce Connected App or read access to specific Search Ads 360 data fields.

Principle 3: Minimize time to value

The third principle to consider for pipeline development is minimize time to value. This means considering the long-term maintenance burden of a data pipeline prior to developing and deploying it in addition to being able to deploy a minimum viable pipeline as quickly as possible. Generally speaking, we recommend the following approach to building data pipelines to minimize their maintenance burden: Write as little code as possible. Functionally, this can be implemented by:

1. Leveraging interface-based data ingestion products whenever possible. These products minimize the amount of code that requires ongoing maintenance and empower users who aren’t software developers to build data pipelines. They can also reduce development time for data pipelines, allowing them to be deployed and updated more quickly. 

  • Products like Google Data Transfer Service and Fivetran allow for managed data ingestion pipelines by any user to centralize data from SaaS applications, databases, file systems, and other tooling. With little to no code required, these managed services enable you to connect your data warehouse to your sources quickly and easily.
  • For workloads managed by ETL developers and data engineers, tools like Google Cloud’s Data Fusion provide an easy-to-use visual interface for designing, managing and monitoring advanced pipelines with complex transformations.

2. Whenever interface-based products or data connectors are insufficient, use pre-existing code templates. Examples of this include templates available for Dataflow that allow users to define variables and run pipelines for common data ingestion use cases, and the Public Datasets pipeline architecture that our Datasets team uses for onboarding.

3. If neither of these options are sufficient, utilize managed services to deploy code for your pipelines. Managed services, such as Dataflow or Dataproc, eliminate the operational overhead of managing pipeline configuration by automatically scaling pipeline instances within predefined parameters.

Principle 4: Increase data trust and transparency

The fourth principle to consider for pipeline development is increase data trust and transparency. For the purposes of this document, we define this as the process of overseeing and managing data pipelines across all tools. Numerous data ingestion pipelines that each leverage different tools or are not developed under a coordinated management plan can result in “tech sprawl”, which significantly increases the management overhead of data ingestion pipelines as the quantity of data pipelines increases. This becomes especially cumbersome if you are subject to service-level agreements, or legal, regulatory, or policy requirements for overseeing data pipelines. Preventing tech sprawl is, by far, the best strategy for dealing with it by developing streamlined pipeline management processes that automate reporting. Although this can theoretically be achieved by building all of your data pipelines using a single cloud-based product, we do not recommend doing so because it prevents you from taking advantage of features and cost optimizations that come with choosing the best product for your use case. 

A monitoring service such as Google Cloud Monitoring Service or Splunk that automates metrics, events, and metadata collection from various products, including those hosted in on-premise and hybrid computing environments, can help you centralize reporting and monitoring of your data pipelines. A metadata management tool such as Google Cloud’s Data Catalog or Informatica’s Enterprise Data Catalog can help you better communicate the nuances of your data so users better understand which data resources are best fit for a given use case. This significantly reduces your pipeline’s governance burden by eliminating manual reporting processes that often result in inaccuracies or lagging updates.

Principle 5: Manage costs

The fifth principle to consider for pipeline development is manage costs. This encompasses both the cost of cloud resources and the staffing costs necessary to design, develop, deploy, and maintain your cloud resources. We believe that your goal should not necessarily be to minimize cost, but rather maximizing the value of your investment. This means maximizing the impact of every dollar spent by minimizing waste in cloud resource utilization and human time. There are several factors to consider when it comes to managing costs:

  • Use the right tool for the job – Different data ingestion pipelines will have different requirements for latency, uptime, transformations, etc. Similarly, different data pipeline tools have different strengths and weaknesses. Choosing the right tool for each data pipeline can help your pipelines operate significantly more efficiently. This can reduce your overall cost, free up staffing time to focus on the most impactful projects, and make your pipelines much more efficient.
  • Standardize resource labeling –  Implement and utilize a consistent labeling schema across all tools and platforms to have the most comprehensive view of your organization’s spending. One example is requiring all resources to be labeled by the cost center or team at time of creation. Consistent labeling allows you to monitor your spend across different teams and calculate the overall value of your cloud spending.
  • Implement cost controls – If available, leverage cost controls to prevent errors that result in unexpectedly large bills. 
  • Capture cloud spend – Capture your spend on all cloud resource utilization for internal analysis using a cloud data warehouse and a data visualization tool. Without it, you won’t understand the context of changes in cloud spend and how they correlate with changes in business.
  • Make cost management everyone’s job – Managing costs should be part of the responsibilities of everyone who can create or utilize cloud resources. To do this well, we recommend making cloud spend reporting more transparent internally and/or implementing chargebacks to internal cost centers based on utilization.

Long-term, the increased granularity in cost reporting available within Google Cloud can help you better measure your key performance indicators. You can shift from cost-based reporting (i.e. – “We spent $X on BigQuery storage last month”) to value-based reporting (i.e. – “It costs $X to serve customers who bring in $Y revenue”). 

To learn more about managing costs, check out Google Cloud’s “Understanding the principles of cost optimization” white paper.

Principle 6: Leverage continually improving services

The sixth principle is leverage continually improving services. Cloud services are consistently improving their performance and stability, even if some of these improvements are not obvious to users. These improvements can help your pipelines run faster, cheaper, and more consistently over time. You can take advantage of the benefits of these improvements by:

  • Automating both your pipelines and pipeline management: Not only should data pipelines be automated, but almost all aspects of managing your pipelines can also be automated. This includes pipeline/data lineage tracking, monitoring, cost management, scheduling, access management and more. This helps reduce long-term operational costs of each data pipeline that can significantly alter your value proposition and prevent any manual configurations from negating the benefits of later product improvements.
  • Minimizing pipeline complexity whenever possible: While ingestion pipelines are relatively easy to develop using UI-based or managed services, they also require continued maintenance as long as they are in use. The most easily maintained data ingestion pipelines are typically the ones that minimize complexity and leverage automatic optimization capabilities. Any transformation in a data ingestion pipeline is a manual optimization of the pipeline that may struggle to adapt or scale as the underlying services improve. You can minimize the need for such transformations by building ELT (extract, load, transform) pipelines rather than ETL (extract, transform, load) pipelines. This pushes transformations down to the data warehouse that is use a specifically optimized query engine to transform your data rather than manually configured pipelines.

Next steps

If you’re looking for more information about developing your cloud-based data platform, check out our Build a modern, unified analytics data platform whitepaper. You can also visit our data integration site to learn more and find ways to get started with your data integration journey.

Once you’re ready to begin building your data ingestion pipelines, learn more about how Cloud Data Fusion and Fivetran can help you make sure your pipelines address these principles.

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Innovate Faster & More Flexibly: How Our Commitment to Open Source Unlocks AI and ML Innovation

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Unveiling the Power of Open Source: Revolutionizing AI/ML. Delve into Google's Game-Changing Approach, Igniting Innovation, Collaboration, and Unleashing the Untapped Potential of Artificial Intelligence. Explore the Future of Technology Today!

At Google, we believe anyone should be able to quickly and easily turn their artificial intelligence (AI) idea into reality. Open source software (OSS) has become increasingly important to this goal, heavily influencing the pace of innovation in AI and machine learning (ML) ecosystems. Over the last two decades, ML has transformed Google services including Search, YouTube, Assistant, and Maps, and the basis for this transformation has always been our “open first” approach through investments in projects and ecosystems like TensorFlow, Jax, and PyTorch.

These OSS efforts are important because many AI technologies rely on closed or exclusive approaches. This wall-garden approach creates high barriers to entry for developers; limits efforts to make AI explainable, ethical, equitable; and stunts innovation. We’re committed to open ecosystems, as we firmly believe no one company should own AI/ML innovation. In this blog post, we’ll explore some of Google’s most significant OSS AI and ML contributions from recent years, as well as how our commitment to open technologies can help organizations innovate faster and more flexibly.

Openness is the way to operate as an ecosystem, not a single project

Google’s OSS initiatives extend and enable AI initiatives according to three pillars:

  • Access — OSS allows developers, researchers and organizations of all sizes to leverage the latest ML technology. It is a key part of democratizing innovation in ML, fostering software diversity and choice for customers, and lowering operating cost while accelerating scale for everyone.
  • Transparency — Open source datasets, ML algorithms, training models, frameworks, and compilers ensure due diligence and validation by the larger community. This is paramount when it comes to ML as it bolsters reproducibility, interpretability, ensures equity, and boosts security.
  • Innovation — With more access and transparency, more innovation comes naturally. Our customers and partners take advantage of open source ML toolsets and frameworks to create more innovation in the field by contributing their own OSS.

Google’s ongoing commitment to open source AI

Google’s commitment to open standards spans over two decades of OSS contributions like TensorFlow, JAX, TFX, MLIR, KubeFlow, and Kubernetes, as well as sponsorship for critical OSS data science initiatives like Project Jupyter and NumFOCUS. Initiatives like these have helped Google become the leading Cloud Native Computing Foundation (CNCF) contributor—and by building on these efforts, Google Cloud seeks to be the best platform for the OSS AI community and ecosystem.

The perils of closed technologies can emerge at many points across ML pipelines, which is why Google’s OSS strategy encompasses the entire “idea-to-production” lifecycle, from acquiring data, to training models, to managing infrastructure, to facilitating experimentation and model refinement:

Data acquisition: starting the journey from idea to production-ready ML model

The journey from an idea to a production ML model starts with data. TensorFlow Datasets not only help users acquire ready-to-use, customizable, and highly-optimized datasets (including image, audio, and text), but also provides a set of helpful APIs that make it easy for users to organize their own datasets, regardless of whether they build with TensorFlow, Jax, or other ML frameworks.

Model development and training: shortening the path from data to useful ML

OSS libraries help developers and researchers design, implement, train, test, and debug ML algorithms. Our contributors on this front include:

  • The TensorFlow core framework, which offers APIs to help data scientists and developers build and train production-grade ML models on distributed and accelerated infrastructure powered by GPUs or TPUs;
  • Google’s founding membership of the PyTorch Foundation, which positions us to increase adoption of ML by building an ecosystem of open-source projects with PyTorch;
  • Keras, a simple and powerful ML framework, well integrated with TensorFLow, that makes it easy for developers to quickly build and train ML models, or to leverage pre-trained AI applications;
  • Model Garden, which provides implementations of many state-of-the-art computer vision and natural language processing models, maintained by Google and accessible to all, alongside APIs to accelerate training and experiments;
  • Jax, a lean, intuitive, and composable system that brings together automatic differentiation (Autograd) and the Accelerated Linear Algebra (XLA) optimizing compiler to offer high-performance ML for fast research and production;
  • TensorFlow Hub, a repository of trained ML models ready for fine-tuning and deployment; and,
  • MediaPipe open source cross-platform, which lets users leverage customizable ML solutions for live and streaming media, including text and video.

ML infrastructure management: scaling valuable models with powerful backends

Accessing and managing infrastructure for ML, especially at scale, can be a blocker for many organizations, which is why Google has invested in initiatives including:

  • The TFX (or TensorFlow Extended) platform, which offers software frameworks and tooling for full MLOps deployments, helping developers with data automation, model tracking, performance monitoring, and model retraining;
  • Kubeflow, which makes deployments of ML workflows on Kubernetes simple, portable and scalable; and,
  • TRC (TPU Research Cloud), which gives access to a cluster of more than 1,000 Cloud TPU devices at no charge to selected researchers who publish peer-reviewed papers and/or open source code.

Experimentation and model optimization: encouraging discovery and iteration

Data, tools for model training, and infrastructure can achieve only so much without strong processes for experimentation and optimization—which is why we’ve contribution to projects like xManager, which enables anyone to run and keep track of ML experiments locally or on Vertex AI and Tensorboard, which simplifies tracking and visualizing of model performance metrics.

These areas of focus will help not only our customers but the open-source AI community as a whole, and we’re excited to share more OSS news in coming days and months. To start exploring why many organizations choose Google Cloud for their open-source AI needs, visit our “open cloud” page and be sure to register for Google Cloud Next ‘22 for all our latest news.

Thanks to all the contributors to this blog post: Matt Vasey, George Elissaios, Warren Barkley, Manvinder Singh, James Rubin, Abhishek Ratna, Thea Lamkin, Amin Vahdat, Andrew Moore, Max Sapozhnikov, Gandhi, Vikram Kasivajhula

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FAQs: Everything Your Need to Know About Cloud Computing

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Cloud computing is an ever-expanding subject as experts introduce and adopt newer approaches and technologies that broaden its scope. From containers, Kubernetes, microservice architecture, to app modernization enrich your know-how on Google Cloud Platform.

There are a number of terms and concepts in cloud computing, and not everyone is familiar with all of them. To help, we’ve put together a list of common questions, and the meanings of a few of those acronyms. You can find all these, and many more, in our learning resources.

What are containers?

Containers are packages of software that contain all of the necessary elements to run in any environment. In this way, containers virtualize the operating system and run anywhere, from a private data center to the public cloud or even on a developer’s personal laptop. Containerization allows development teams to move fast, deploy software efficiently, and operate at an unprecedented scale. Read more.

Containers vs. VMs: What’s the difference?

You might already be familiar with VMs: a guest operating system such as Linux or Windows runs on top of a host operating system with access to the underlying hardware. Containers are often compared to virtual machines (VMs). Like virtual machines, containers allow you to package your application together with libraries and other dependencies, providing isolated environments for running your software services. However, the similarities end here as containers offer a far more lightweight unit for developers and IT Ops teams to work with, carrying a myriad of benefits. Containers are much more lightweight than VMs, virtualize at the OS level while VMs virtualize at the hardware level, and share the OS kernel and use a fraction of the memory VMs require. Read more.

What is Kubernetes?

With the widespread adoption of containers among organizations, Kubernetes, the container-centric management software, has become the de facto standard to deploy and operate containerized applications. Google Cloud is the birthplace of Kubernetes—originally developed at Google and released as open source in 2014. Kubernetes builds on 15 years of running Google’s containerized workloads and the valuable contributions from the open source community. Inspired by Google’s internal cluster management system, Borg, Kubernetes makes everything associated with deploying and managing your application easier. Providing automated container orchestration, Kubernetes improves your reliability and reduces the time and resources attributed to daily operations. Read more.

What is microservices architecture?

Microservices architecture (often shortened to microservices) refers to an architectural style for developing applications. Microservices allow a large application to be separated into smaller independent parts, with each part having its own realm of responsibility. To serve a single user request, a microservices-based application can call on many internal microservices to compose its response. Containers are a well-suited microservices architecture example, since they let you focus on developing the services without worrying about the dependencies. Modern cloud-native applications are usually built as microservices using containers. Read more.

What is ETL?

ETL stands for extract, transform, and load and is a traditionally accepted way for organizations to combine data from multiple systems into a single database, data store, data warehouse, or data lake. ETL can be used to store legacy data, or—as is more typical today—aggregate data to analyze and drive business decisions. Organizations have been using ETL for decades. But what’s new is that both the sources of data, as well as the target databases, are now moving to the cloud. Additionally, we’re seeing the emergence of streaming ETL pipelines, which are now unified alongside batch pipelines—that is, pipelines handling continuous streams of data in real time versus data handled in aggregate batches. Some enterprises run continuous streaming processes with batch backfill or reprocessing pipelines woven into the mix. Read more.

What is a data lake?

A data lake is a centralized repository designed to store, process, and secure large amounts of structured, semistructured, and unstructured data. It can store data in its native format and process any variety of it, ignoring size limits. Read more.

What is a data warehouse?

Data-driven companies require robust solutions for managing and analyzing large quantities of data across their organizations. These systems must be scalable, reliable, and secure enough for regulated industries, as well as flexible enough to support a wide variety of data types and use cases. The requirements go way beyond the capabilities of any traditional database. That’s where the data warehouse comes in. A data warehouse is an enterprise system used for the analysis and reporting of structured and semi-structured data from multiple sources, such as point-of-sale transactions, marketing automation, customer relationship management, and more. A data warehouse is suited for ad hoc analysis as well custom reporting and can store both current and historical data in one place. It is designed to give a long-range view of data over time, making it a primary component of business intelligence. Read more.

What is streaming analytics?

Streaming analytics is the processing and analyzing of data records continuously rather than in batches. Generally, streaming analytics is useful for the types of data sources that send data in small sizes (often in kilobytes) in a continuous flow as the data is generated. Read more.

What is machine learning (ML)?

Today’s enterprises are bombarded with data. To drive better business decisions, they have to make sense of it. But the sheer volume coupled with complexity makes data difficult to analyze using traditional tools. Building, testing, iterating, and deploying analytical models for identifying patterns and insights in data eats up employees’ time. Then after being deployed, such models also have to be monitored and continually adjusted as the market situation or the data itself changes. Machine learning is the solution. Machine learning allows businesses to enable the data to teach the system how to solve the problem at hand with machine learning algorithms—and how to get better over time. Read more.

What is natural language processing (NLP)?

Natural language processing (NLP) uses machine learning to reveal the structure and meaning of text. With natural language processing applications, organizations can analyze text and extract information about people, places, and events to better understand social media sentiment and customer conversations. Read more.

Learn more

This is just a sampling of frequently asked questions about cloud computing. To learn more, visit our resources page at cloud.google.com/learn.

Case Study

How to Use Machine Learning to Achieve 300% Increase in Gross Profits

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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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