AWS re:Invent 2023 - Keynote with Dr. Werner Vogels

IT'S FOR YOU. WERNER. HELLO WERNER. WHO ARE YOU? I AM THE ARCHITECT THAT I'VE BROUGHT YOU HERE TO SEE THIS. MY SYSTEM THAT IS IN A PERL SCRIPT. LISTEN, WERNER, THERE'S A PROBLEM WITH THE SYSTEM. ERGO, I'VE BROUGHT YOU HERE. IT'S GLORIOUS. IN ALMOST EVERY SINGLE WAY. EVERY SINGLE ONE OF THEM ARE MY BABIES. I'VE EVEN NAMED

THEM. HOWEVER FOR EVERY TIME I ADD A NEW SERVICE, I HAVE TO BUILD A NEW RACK. ERGO, IT'S BECOMING VERY EXPENSIVE. ALSO IT'S VERY HOT IN HERE. HAVE YOU CONSIDERED CLOUD MIGRATION?

CLOUD MIGRATION? I THINK WE NEED A MONTAGE. RIGHT. NO SERVERS MORE. DO IT AGAIN. ONE MORE TIME. COME. ON WAIT. SO YOU'RE SAYING I CAN SCAN MY CONTAINER IMAGES STRAIGHT FROM MY CICD PIPELINE. YES. LOOK, YOU NEED TO BUILD WITH COST IN MIND FROM THE OUTSET. YOU NEED TO BE A FRUGAL ARCHITECT AT THE FRUGAL.

ARCHITECT. I WERNER. WAIT WHAT CAN I GET SOME FREE CREDITS? NO. PLEASE WELCOME THE VICE PRESIDENT AND CTO OF AMAZON.COM. DR. WERNER VOGELS. OH, WOW. WOW I'M ABSOLUTELY BLOWN AWAY. THIS IS DAY FOUR. YOU'RE SUPPOSED TO BE IN BED. I REALLY, REALLY. ABSOLUTELY. I'M TOTALLY HUMBLED BY THE FACT THAT I ARRIVED HERE AT 6 A.M. THIS MORNING AND YOU GUYS ARE LITERALLY STANDING IN

LINE THAT IS. I DON'T DESERVE THAT. ABSOLUTELY. WHAT DO YOU DESERVE? AN APPLAUSE, BY THE WAY, IS THE QUARTET THAT JUST PLAYED. SO CAN I GET YOUR HANDS AGAIN. SOMEONE ELSE, SOME OTHER PEOPLE THAT ACTUALLY NEED YOU TO GIVE SOME APPLAUSE? CAN I GET THE HEROES TO STAND UP ON A FUND LINE? YEAH. THESE ARE INVALID

ABLE MEMBERS OF OUR COMMUNITY. THEY MAKE IT. THEY MAKE IT. WHAT? THIS WHOLE COMMUNITY MAKES SO SPECIAL AND HOPEFULLY ALSO WHY YOU'RE ALL IN THIS ROOM TODAY AND ESPECIALLY WANT TO SHOUT OUT TO LUKE WHO GOT TO NOW GO BUILD AWARDS THIS TIME AROUND . OKAY THANK YOU. I KNOW, I KNOW YOU PROBABLY ALL CRINGED A LITTLE BIT WHEN I SAID CLOUD MIGRATION AFTER ALL. I ACTUALLY NOTICED THAT FOR QUITE A FEW OF THE PEOPLE IN THE ROOM. YOU'VE GROWN UP YOUR CAREER IN CLOUD FOR YOU. THERE WAS NO PRE CLOUD NO HARDWARE, NO CONSTRAINTS LIKE THAT. AND BUT YOU KNOW, THE

GREAT THING ABOUT SORT OF MOVING OUT OF THAT WHOLE HARDWARE ENVIRONS AND INTO THE CLOUD WAS THAT WE SUDDENLY COULD BUILD THESE ARCHITECTURES THAT WE ALWAYS WANTED TO BUILD. WE NO LONGER WERE CONSTRAINED BY THE PHYSICALITY OF ALL THOSE SERVERS . AND ALSO I COULD ACTUALLY, AS A DISTRIBUTED SYSTEMS GUY TO ACTUALLY START TALKING TO MY CUSTOMERS ABOUT HOW TO REALLY BUILD RELIABLE BIG SCALE SYSTEMS AT AND BUT, YOU KNOW, THERE WAS SOMETHING ABOUT THAT OLD WORLD IF YOU GET AS OLD AS ME, THEN YOU START SEEING THE POSITIVE. A LITTLE BIT OF ROSE COLORED GLASSES. YOU KNOW, THERE WERE THINGS IN THE PAST ACTUALLY IN

THIS WORLD THAT WE HAD THESE HARDWARE CONSTRAINTS THAT ACTUALLY DROVE A LOT OF CREATIVITY. YOU KNOW, IF I THINK ABOUT AND I'M GOING TO TALK A BIT ABOUT YOU, ABOUT THE COST OF ALL OF THOSE KIND OF ALL THE SYSTEMS THAT WE'RE BUILDING AND I'M GOING TO DRIVE THAT BY ACTUALLY MY EXPERIENCES AS THE CEO OF AMAZON FOR THE PAST 20 YEARS, ALMOST. YEAH. AND IF I THINK BACK ABOUT BEING THE PRE CLOUD DAYS OF AMAZON, THE RETAILER, I WAS REALLY GOOD AT PREDICTING SORT OF HOW MUCH CAPACITY WE NEEDED. WE COULD SORT OF MEET. AND THE DECISION TO MAKE SURE WE HAD 15% HARDWARE OVER THE EXPECTED PEAK FOR THAT YEAR, BUT STILL NOTHING COULD HAPPEN TO US. NOTHING UNEXPECTED . YOU KNOW, I REMEMBER AT ONE DAY IN THE DAYS THAT WIZ AND PS4'S WERE VERY SCARCE, SOMEONE POSTED A MESSAGE SOMEWHERE SAYING, TOMORROW AMAZON WILL HAVE A THOUSAND WIZ FOR SALE AT 11:00 IN THE MORNING. WELL, YOU KNOW WHAT HAPPENS AT FIVE

MINUTES TO 11 F5F5F5 ASSUMING YOUR WINDOWS USER. AND SO TRAFFIC EXPLODES AND ABSOLUTELY WE REALLY HAD WE WORKED OUR WAY AROUND IT AND WE WERE VERY CREATIVE IN TRYING TO SOLVE THE PROBLEM TO MAKE SURE THAT ALL THE OTHER CUSTOMERS STILL COULD BE SERVED. BUT STILL, YOU KNOW, IT REQUIRED A LOT OF WORK AND A LOT OF HANDHOLDING. BUT MORE IMPORTANTLY, THERE WERE ALSO RESTRICTIONS ON BUSINESS INNOVATION BECAUSE OF THAT, BECAUSE IS A FEW WEEKS BEFORE BLACK FRIDAY, A TEAM WOULD COME TO ME AND SAY, OH, WE HAVE THIS BRILLIANT IDEA TO DO X, Y, OR Z, AND IT WILL GIVE US WHAT IS IT, ADDITIONAL REVENUE AT THIS MUCH YOU WOULD SCRATCH YOUR HEAD AND THINK LIKE, HOW ARE WE GOING TO DO THIS? BUT WE ALWAYS MADE IT WORK. AND THERE WAS SORT OF AN ART IN IN SORT OF BUILDING THESE SYSTEMS AND LIVING WITHIN THE CONSTRAINTS THAT YOU HAD. AND NOW CLOUD OF COURSE, WE MOVED ALL OF THOSE CONSTRAINTS. NOW SUDDENLY YOU WERE NO LONGER SAID

YOU COULD DO ALL THESE THINGS. I DIDN'T HAVE TO HAVE LONG CONVERSATIONS WITH THE BUSINESS ABOUT SORT OF REDUCING THEIR FOOTPRINT OR THINGS THAT YOU COULD DO EVERYTHING. AND AS ALWAYS, WHEN CONSTRAINTS GET REMOVED, WHEN WE THROW OFF THE SHACKLES OF SOMETHING THAT KEEPS US DOWN, WE HAVE A TENDENCY TO SWING THE PENDULUM ALL THE WAY TO THE OTHER SIDE. SUDDENLY, WHAT IS THE MOST IMPORTANT THING IS ACTUALLY TO MOVE FAST, TO GET NEW PRODUCTS OUT, TO START THINKING ABOUT ALL THE THINGS YOU COULD DO NOW THAT YOU COULDN'T DO BEFORE. AND THAT'S AMAZING. AND WE HAVE SEEN AMAZING INNOVATIONS IN THE PAST 15 YEARS HAPPENING ON TOP OF AWS. BUT IF SPEED OF EXECUTION

BECOMES MORE IMPORTANT, WE KIND OF LOST THIS ART, THIS ART OF ARCHITECTING FOR COST AND KEEPING COSTS IN MIND. AND IF YOU IF YOU'VE THIS IS YOUR 12TH RE:INVENT JUST LIKE IT IS FOR ME. YOU MAY GO BACK TO THIS FIRST RE:INVENT IN IN 2011 AND I PUT UP THESE SORT OF I THINK THERE WERE 12 SORT OF TENANTS THAT ARE THOUGHT YOU SHOULD THINK ABOUT WHEN YOU WERE BUILDING FOR THE CLOUD YEAH. AND ONE OF THEM WAS TO ARCHITECT WITH COST IN MIND BECAUSE SUDDENLY YOU COULD REMEMBER WE MAKING COST EXPLICIT FOR ALL THE RESOURCES THAT HAVE BEEN USED.

AND SO IT WAS VERY, VERY EASY FOR YOU TO START THINKING ABOUT HOW WHAT IS ACTUALLY THE COST OF THIS SYSTEM THAT IM BUILDING RIGHT NOW COMPARED TO THE OTHER ONE THAT I BUILT YESTERDAY. AND SO IF YOU NO LONGER HAVE THESE CONSTRAINTS, IT DROVE AMAZING INNOVATION. BUT THE MACROECONOMIC CLIMATE SOMETIMES CHANGES AND MORE NOTICEABLE THE LAST FEW YEARS IS THAT COMPANIES MORE AND MORE HAVE BECOME INTERESTED IN SORT OF WHAT IS THIS ALL COSTING ME. AND SO I HOPE THAT TODAY, YOU KNOW,

YOU'RE GOING TO LISTEN TO A LITTLE BIT TO ME ABOUT MY EXPERIENCES OF THE PAST 20 YEARS OF BUILDING COST AWARE ARCHITECTURES. AND BY THE WAY, YOU'VE ALREADY SEEN AMAZING INNOVATIONS AND ANNOUNCEMENTS THIS WEEK. THIS IS NOT GOING TO BE ONE OF THOSE KEYNOTES. SO SIT BACK, TAKE OUT YOUR NOTEPAD AND

START MAKING NOTES TODAY. SO HOW MANY OF US DON'T HAVE TO LIVE WITHIN THESE CONSTRAINTS ANYMORE? BUT THERE'S QUITE A FEW COMPANIES THAT ACTUALLY DO. AND A GREAT EXAMPLE OF THAT IS THE PUBLIC BROADCASTING SERVICE. YOU ALL KNOW THAT, YOU KNOW, THEY MAKE ALL THESE PROGRAMS FOR THEIR AFFILIATES AND THEIR FAMOUS TAGLINE IS OF COURSE SUPPORTED BY VIEWERS LIKE YOU AND ME, BUT THEY HAVE TO LIVE WITHIN A STRICT BUDGET AND SO IT'S NOT ONLY THAT THEY PROVIDE ALL THESE PROGRAMS FOR THE AFFILIATES. THEY ALSO STREAM ALL CONTENT. AND AT THE 40TH ANNIVERSARY OF SESAME STREET, THEY COMPLETELY BROKE DOWN BECAUSE THEY WERE STREAMING OUT OF THEIR OWN DATA CENTERS. THERE'S 2009 AND THEY KNEW THAT THEY COULDN'T CONTINUE TO DO THIS BECAUSE THEY JUST COULDN'T AFFORD THE HARDWARE TO DO THIS, TO DO THIS AT MASSIVE SCALE. AND SO THEY MIGRATED OVER TO AWS AND

, YOU KNOW, AS ALWAYS, IF YOU JUST DO LIFT AND SHIFT OF SOMETHING THAT WASN'T SCALABLE IN EFFICIENT IN YOUR OWN DATA CENTER, IT ISN'T SUDDENLY SCALABLE. AND EFFICIENT IN THE CLOUD EITHER. YEAH. SO BUT THEY WANTED TO CONTINUE TO START OFF WITH AT LEAST WITH THE EXISTING SOFTWARE AND SO THEY MADE USE OF OPSWORKS AND TIME BASED SCALING THAT BASICALLY MEANT THAT THEY WERE STILL NOT VERY RESOURCE EFFICIENT, WHICH IS CRUCIAL FOR THEM BECAUSE THE MONEY THEY CAN SAVE, THEY CAN DO A LOT OF OTHER THINGS WITH. AND SO WHILE THEY ACTUALLY MOVED TO THE CLOUD,

THEY ALSO STARTED TO REALIZE THAT THEY HAD TO RE-ARCHITECT AND THEY REARCHITECT MAKING EVERY USING EVERY POSSIBLE SERVICE THAT THEY COULD. AND SO THEY WERE STREAMING DIRECTLY OUT OF S3 AND OUT OF CLOUDFONT, AND THEY MOVED OVER TO ECS AND FARGATE REALLY ABSOLUTELY DRIVING ALL OF THEIR COSTS DOWN THERE. ACTUALLY REDUCED THE STREAMING COST BY 80. AND IF YOU WERE A FAN OF THE KEN BURNS DOCUMENTARY, JUST LIKE I AM, THEY RECENTLY HAD THIS DOCUMENTARY CALLED THE AMERICAN BUFFALO, EXTREMELY POPULAR AND A GREAT DOCUMENTARY, AND IT WENT OFF WITHOUT A HITCH AT 80, LESS THAN 80% COST SAVINGS. AT THE SAME TIME, NOT ONLY BECAUSE THEY MOVED TO THE CLOUD, BUT BECAUSE THEY ARCHITECTED FOR THE CLOUD WITH COST IN MIND. NOW, NEXT TO COST IS SOMETHING ELSE THAT IS REALLY ON MY MIND THESE DAYS, AND IT SHOULD BE ON YOUR MIND AS WELL. THIS IS A FREIGHT TRAIN THAT IS COMING YOUR WAY AND YOU CANNOT ESCAPE IT. I THINK IN

ABSENCE OF US PROVIDE YOU WITH SORT OF THE INFORMATION ABOUT MILLIGRAMS CO2 TO USED BY YOUR SERVICES COST IS A PRETTY GOOD APPROXIMATION FOR SUSTAINABILITY AND WE HAVE QUITE A FEW COMPANIES THAT ARE THEY ARE ASKING US TO REALLY HELP THEM BUILD MORE SUSTAINABLE ARCHITECTURES AND I THINK US AS A SOCIETY, AS TECH SOCIETY, AS TECHNOLOGISTS HAVE A MAJOR ROLE TO PLAY IN MAKING SURE THAT OUR SYSTEMS ARE AS SUSTAINABLE AS WE CAN BE. AND REMEMBER, IN AWS YOU KNOW, YOU PAY FOR EACH CAN BE. AND REMEMBER, IN AWS YOU KNOW, YOU PAY FOR EACH INDIVIDUAL RESOURCE USERS, WHICH MEANS THAT COST IS A PRETTY GOOD APPROXIMATION FOR THE RESOURCES THAT YOU'VE USED. AND AS SUCH, YOUR CONTRIBUTION TO SUSTAINABILITY. ORI NOW

THROUGHOUT THIS TALK, WHEN I SAY COST, I HOPE YOU ALSO KEEP IN MIND SUSTAINABILITY AT THE SAME TIME. NOW A COMPANY THAT IS ACTUALLY IS ACTUALLY THE LIGHTING HOUSE IN THIS IS ONE OF OUR OLDEST EUROPEAN CUSTOMERS. WETRANSFER AND ONLY IF YOU KNOW THEM THEY THEY ACTUALLY SUPPORT HAVING THESE VERY LARGE FILES THAT YOU CAN UPLOAD AND THEN DISTRIBUTE. THEY REORGANIZE THEMSELVES AS WHAT'S CALLED A CERTIFIED B B-CORP, A COMPANY THAT HAS THE HIGHEST STANDARDS IN ENVIRONMENTAL, SOCIAL AND FISCAL TRANSPARENCY. AND THEY ARE STILL ABLE TO INNOVATE WHILE

ACTUALLY LOWERING THEIR EMISSIONS AT THE SAME TIME. AND THEY SERVE A USAGE WAS THEIR BIGGEST EXPENSE, THE BIGGEST ENERGY DEPENDENCY, AND THEY RE-ARCHITECTED IN SUCH A WAY SUCH THAT THEY COULD START A FORECAST TRACK AND MEASURE CARBON EMISSIONS WHILE SERVING 80 MILLION PEOPLE A MONTH. AND THEY'VE DONE THIS FOR SOME VERY UNIQUE STRATEGIES AND YOU'LL SEE SOME OF THESE STRATEGIES COMING BACK INTO MY EXPERIENCES AS WELL. NOW IF YOU LOOK AT THE VIDEO BEFORE THAT, I PRESENTED

THE ARCHITECT WITH THE FRUGAL ARCHITECT AND BASICALLY THIS IS SORT OF A BOOK WHERE I'VE SORT OF ENCODED MY EXPERIENCES OF THE PAST 20 YEARS OF BUILDING COST AWARENESS, SUSTAINABLE ARCHITECTURES. AND I THINK THAT AS BUILDERS WE REALLY NEED TO START THINKING ABOUT THIS NOT ONLY BECAUSE WE WANT TO BE FRUGAL IN THE WAY THAT WE USE OUR RESOURCES, BUT ALSO AS SUSTAINABLE AS POSSIBLE. NOW THESE ARE NOT HARD RULES AND I CALL THEM LAWS, BUT THEY'RE NOT LIKE LEGAL LAWS. THEY ARE MORE LIKE BIOLOGICAL BIO AND PHYSICAL LAWS WHERE YOU HAVE LOTS OF OBSERVATIONS AND THEN YOU CODIFY THOSE IN A FRAMEWORK. OF COURSE, YOU KNOW NATURE DOESN'T CARE ABOUT THOSE LAWS. THE LAWS ARE FOR US SUCH THAT WE HAVE A FRAMEWORK TO THINK IN AND THERE'S NOT HARD RULES. BUT TO ACTUALLY GIVE IT A LITTLE BIT OF

STRUCTURE, I'VE PUT THEM IN THREE DIFFERENT CATEGORIES. ONE OF THEM IS DESIGN, MEASURE AND OPTIMIZE. AND I WANT TO START OFF WITH PROBABLY WHAT'S THE MOST IMPORTANT THING. AND THE MOST IMPORTANT THING HERE IS THAT COST NEEDS TO BE A NONFUNCTIONAL REQUIREMENT. AND IF YOU THINK ABOUT NONFUNCTIONAL REQUIREMENTS, YOU KNOW, THERE'S ALL THESE SORT OF CLASSICAL ONES, SECURITY, COMPLIANCE, PERFORMANCE, AVAILABILITY, ALL OF THESE ARE ACTUALLY THINGS THAT ARE NOT THE SPECIFIC FEATURES AND FUNCTIONS OF THE APPLICATION THAT YOU'RE BUILDING, BUT THE ONES THAT YOU HAVE TO KEEP IN MIND AT ALL TIMES. I THINK SECURITY, COMPLIANCE AND ACCESSIBILITY ARE NON-NEGOTIABLE. THEY THE OTHER ONES, YOU CAN MAKE ALL SORTS OF

TRADE OFFS. THERE'S ACTUALLY TWO OTHER ONES THAT I BELIEVE SHOULD BE IN THIS LIST AS WELL. COST AND SUSTAINABILITY, BOTH OF THEM SHOULD BE TREATED AT EQUAL WEIGHT WHEN IT COMES TO NONFUNCTIONAL REQUIREMENTS FOR YOUR BUSINESS. NOW IT IS EASIER THESE DAYS TO MEASURE COST. NOW, IF I GO BACK TO MY EARLY DAYS

CTO OF AMAZON YOU KNOW, I BASICALLY HAD TO WRITE A BIG CHECK UPFRONT TO THIS DATABASE COMPANY BEFORE I COULD START USING THEIR THEIR ARCHITECTURE AND IT WASN'T JUST A LITTLE CHECK, IT WAS A BIG CHECK BECAUSE I NEEDED TO THINK FIVE YEARS AHEAD, HOW MUCH CAPACITY DO I THINK I HAVE? FIVE YEARS AHEAD? BECAUSE THERE WAS THE ONLY WAY TO DRIVE COST DOWN. AND SO IT WAS VERY HARD ON DAY ONE OR ON THE SECOND YEAR OR THE FIRST YEAR TO THINK ABOUT HOW MUCH OF THAT COST IS ACTUALLY GOING INTO THE SYSTEMS THAT I'M BUILDING AT THIS MOMENT IN AWS, OF COURSE, THAT'S RADICALLY DIFFERENT NOW. THERE BASIC GOES FOR EC2 RESOURCES AND ACTUALLY WHEN WE STARTED BUILDING S3 AS BEING THE FIRST REALLY BIG SERVICE, WE HAD TO THINK ABOUT WHAT KIND OF RESOURCES ARE WE USING, WHAT IS OUR COST THAT WE NEED TO EXPOSE TO OUR CUSTOMERS BECAUSE WE WANT OUR PRICING MODEL TO BE COST FOLLOWING COST FOLLOWING MEANS THAT WE EXPOSE OUR COSTS TO YOU. NOW, WE SAT AROUND THE TABLE AND WE'RE THINKING, WELL, WHAT ARE THE TWO BIGGEST COSTS THAT WE ARE GOING TO HAVE IN THIS THAT WE NEED TO PUT IN THE PRICING MODEL TRANSFER OF COURSE, BYTES ON THE WIRE AND BYTES STORED. BUT WHEN WE STARTED ONBOARDING OUR FIRST VERY FIRST CUSTOMERS, WE STARTED TO REALIZE THAT THERE WERE MORE RESOURCES BEING USED BY THEM AND WE ACTUALLY NEEDED TO ADD A THIRD DIMENSION TO HOW WE WOULD PRICE THIS SERVICE. AND THAT THIRD DIMENSION WAS THE NUMBER OF REQUESTS. YEAH. WHAT I WANT YOU TO TAKE AWAY FROM THIS IS

THAT, YOU KNOW, ESPECIALLY IF YOU BUILD SOMETHING RADICALLY NEW, YOU MAY NOT HAVE AN IDEA ABOUT EXACTLY HOW YOUR CUSTOMERS ARE GOING TO USE YOUR SYSTEM AND HOW MUCH RESOURCES THEY'RE GOING TO USE FOR EACH OPERATION. SO MAKE SURE YOU CAN OBSERVE THAT AND IMMEDIATELY REACT TO IT SUCH THAT YOU UNDERSTAND EXACTLY THE KIND OF RESOURCES THAT YOU ARE USING TO SERVE YOUR CUSTOMERS. BY THE TIME WE BUILD DYNAMODB WE HAD THIS COMPLETELY DOWN TO AN ART AND IF YOU DON'T, IF YOU REMEMBER WHEN WE LAUNCHED RT, WE BE WE LAUNCHED WITH TWO TYPES OF READS AND ONE READ WAS EVENTUALLY CONSISTENT. BASICALLY ONCE A QUORUM UNDERNEATH, LET'S SAY THERE'S THREE NODES IN THE QUORUM. IT GOES DOWN, THERE'S

ONE READ TO A NODE AND YOU MAY GET THE LAST RESULT DATE OR NOT. WE ALSO LAUNCHED IF A STRONGLY CONSISTENT READ, STRONGLY CONSISTENT READ, BASICALLY WENT UNDER THE COVERS. THE TWO READS TO WHICH THE QUORUM TO MAKE SURE THAT YOU WOULD GET THE LATEST UPDATE BACK. YOU HAVE TO DO TWO READS FOR THAT. SO WE MADE SURE THAT EVENTUALLY CONSISTENT WAS HALF THE PRICE OF STRONGLY CONSISTENT BECAUSE WE HAD TO DO TWICE AS MUCH AS WORK IN STRONGLY CONSISTENT TWO VERSUS THE ONE READ FOR EVENTUALLY CONSISTENT. SO I WANT YOU TO TAKE AWAY FROM THAT. YOU HAVE TO

CONSIDER COST AT EVERY STEP OF YOUR DESIGN TO REALLY KEEP THAT IN MIND. AND THEN IF YOU THINK ABOUT SORT OF YOUR BUSINESS CASE, BECAUSE AFTER ALL, WE'RE NOT JUST BUILDING TECHNOLOGY FOR TECHNOLOGY'S SAKE. WE BUILDING TECHNOLOGY TO SUPPORT OUR BUSINESS. AND I HOPE THAT ALL OF YOU ARE IN AN ORGANIZATION THAT PROBABLY HAS SOME SORT OF AGILITY, AGILE DEVELOPMENT STRATEGY WHERE YOU ARE CLOSE WITH YOUR BUSINESS PARTNERS. WE ARE CONTINUING TO TALK ABOUT THE FUNCTIONALITY OF THINGS. HOW

RELIABLE DOES IT NEED TO BE? HOW SCALABLE DOES IT NEED TO BE? AND MOST IMPORTANTLY, ALI. HOW MUCH WILL THIS COST IT? AND THAT'S A THAT'S A CONVERSATION WE HAVEN'T ALWAYS HAD, BUT WE NEED TO HAVE THIS CONVERSATION CONTINUOUSLY WITH OUR BUSINESS PARTNERS. NOW, AT ONE MOMENT, ESPECIALLY WHEN I STARTED ADVISING MORE AND MORE STARTUPS, I, I TRIED TO HAMMER THIS DOWN ON DAY ONE. WHEN A

STARTUP IS THINKING ABOUT THEIR PRODUCT, WHAT IS THE REVENUE MODEL THAT YOU THINK YOU'RE GOING TO HAVE? HOW ARE YOU GOING TO MAKE YOUR MONEY AND THEY MAKE SURE THAT YOU BUILD ARCHITECTURES THAT FOLLOW THOSE MONEY. THAT'S IMPORTANT BECAUSE IF YOUR IF YOUR COST RISE OVER A COMPLETELY DIFFERENT DIMENSION, THEN YOU'RE GOING TO BE TOAST EVENTUALLY. YOU YEAH. SO ALIGN COST WITH REVENUE. NOW, IF YOU THINK ABOUT THE COMPANY LIKE AMAZON.COM, PROBABLY THE BEST MEASUREMENT FOR OUR SUCCESS OF THE OPERATIONS IS SORT OF ORDERS A MINUTE THAT'S BASICALLY SORT OF THE DIMENSION WHERE WE ARE MAKING REVENUE OVER WHAT WE THEN NEED TO MAKE SURE THAT OUR INFRASTRUCTURE SCALES IN SUCH A WAY THAT ACTUALLY COSTS DOESN'T GROW IN A COMPLETELY DIFFERENT DIMENSION, BUT ALSO THAT WE CAN USE ECONOMIES OF SCALE EVENTUALLY TO DRIVE OUR COSTS DOWN FURTHER. AND AS YOU CAN SEE , SORT OF IF THE DIFFERENCE BETWEEN COST AND REVENUE WOULD BE PROFIT, YOU KNOW, PROFITS SHOULD INCREASE OVER TIME. IF

YOUR COST RISE OVER THE SAME DIMENSION AS THAT YOU IN THE US, I'VE ALSO WORKED WITH YOUNGER BUSINESSES IN WHICH IT DIDN'T GO THAT WELL. THIS PARTICULAR ONE WAS ACTUALLY ONE OF THE FIRST ONES THAT WERE BUILDING THIS MIFI DEVICES. THIS WAS BEFORE UBIQUITOUS MOBILE COMMUNICATION. AND SO BASICALLY YOU HAD TO BUY A TEN GIG DATA PACKAGE EVERY TIME WHEN YOU RAN OUT. THAT IS A

GOOD MODEL. THEY BASICALLY WERE RUNNING OVER ONE OF THE BIGGER TELCO PROVIDERS WHO THEY HAD TO PAY. SO EVERY TIME, BASICALLY IF YOU LOOK AT THE ONE ON THE LEFT, BASICALLY THE GREEN BOXES ARE ACTUALLY UNUSED CAPACITY THAT THEY JUST HAD PART OF THEIR REVENUE. AND THEN CUSTOMERS CAME TO THEM AND SAID, YOU KNOW WHAT, ALL THESE BUYING EVERY TIME TEN GIG SO BOTHERSOME. CAN WE HAVE AN UNLIMITED PLAN AND WITHOUT THINKING PROBABLY REALLY THINKING THE COMPANY SAID YES, OF COURSE WE CAN. AND THEN, YOU KNOW, THEY PUT A DECENT HIGH PRICE AGAINST IT. AND WHAT

HAPPENS THEN? IF YOU REMOVE CONSTRAINTS, SUDDENLY CUSTOMERS START BEHAVING IN WAYS THAT YOU DIDN'T ANTICIPATE. THEY STARTED WATCHING NETFLIX OVER THEIR MOBILE DEVICE AND IS PRETTY QUICKLY ACTUALLY, THE USAGE RAMPED UP TREMENDOUSLY IN WAYS THAT CUSTOMERS WERE NO LONGER PAYING FOR IT. THE COMPANY WENT OUT OF BUSINESS BECAUSE OF THIS. YEAH, BE REALLY SMART TO MAKE SURE THAT THE DIMENSIONS OVER WHICH YOU MAKE REVENUE ARE ALSO ALIGNED WITH WHERE YOUR COSTS ARE COMING FROM. NOW IT'S ALWAYS

GOOD TO THINK ABOUT FLYWHEELS AND YOU PROBABLY HAVE SEEN THIS NAPKIN DRAWN BY JEFF BEZOS MANY TIMES. YOU YEAH, FLYWHEELS ARE THINGS THAT THAT SORT OF CONTINUE TO PUT ENERGY INTO IT. THE MORE ENERGY YOU PUT INTO IT, THE BETTER IT WORKS. SO START OFF WITH SELECT E.ON. AND SELECTION MEANS THE NUMBER OF PRODUCTS IN THE CATALOG. THE HIGHER THE NUMBER OF PRODUCTS IN

THE CATALOG, THE HIGHER THE LIKELIHOOD IS CUSTOMERS CAN FIND WHAT THEY'RE LOOKING FOR GETS A GREAT CUSTOMER EXPERIENCE, DRIVES MORE TRAFFIC TO THE SITE, MAKES THAT MORE SELLERS WANT TO SELL ON THE SITE BECAUSE THERE'S MORE TRAFFIC, WHICH MEANS THAT THE CATALOG GETS BIGGER, MORE PRODUCTS IN THE CATALOG SELECTION GROWS. SO YOU GET THIS CONTINUOUS CYCLE THAT SUDDENLY STARTS TO ACCELERATE AND DRIVE GROWTH. AND THEN IF YOU MAKE USE OF THAT, THE ECONOMIES OF SCALE OF THAT TO LOWER YOUR COST STRUCTURE AND THEN LOWERING PRICING FOR YOUR CUSTOMERS, YOU HAVE ANOTHER FLYWHEEL THAT DRIVES INTO THAT. SUDDENLY TWO

THINGS HAPPEN. GO INTO THAT CUSTOMER EXPERIENCE AND IT REALLY ACCELERATES THE WAY YOUR BUSINESS GROWS. SO REALLY MAKE SURE THAT YOUR BUSINESS DECISIONS AND YOUR TECHNOLOGY DECISIONS ARE IN HARMONY WITH EACH OTHER. NOW YOU KNOW, AND SOMETIMES IT'S EASY TO THINK UPFRONT THESE ARE THE RESOURCES YOU'RE GOING TO USE. THIS IS SORT OF WHAT I NEED IN MY

PRICING MODEL. WHEN WE STARTED LAMBDA THAT WAS A WHOLE DIFFERENT BALL GAME. AGAIN, WE KNEW THAT CUSTOMERS WANTED TO HAVE SERVERLESS COMPUTE JUST LIKE SERVERLESS STORAGE AND SERVERLESS DATABASES, BUT THEY DIDN'T WANT TO THINK ABOUT SCALE AND RELIABILITY AND THINGS LIKE THAT. IT JUST NEEDED TO WORK. I MEAN, CUSTOMERS WANT THAT. WE ALSO KNEW THAT WE WANTED TO MAKE THE PRINCIPLED DECISION THAT WE SHOULD BE CHARGING OVER TWO DIMENSIONS, WHICH WOULD BE, YOU KNOW, MILLISECONDS OF CPU USED AND AMOUNT OF MEMORY USED OVER A CERTAIN PERIOD. NOW, AS ALWAYS,

YOU KNOW, WE DIDN'T READ IF YOU BUILD SOMETHING RADICALLY NEW LIKE LAMBDA YOU HAVE NO IDEA HOW YOUR CUSTOMERS ARE ACTUALLY REALLY GOING TO USE IT. THAT WAS WHAT WE LEARNED FROM S3. SO WE ALSO KNEW WE NEEDED TO GET INSIGHT INTO THIS BEFORE WE COULD BUILD THE RIGHT ARCHITECTURE. WE DIDN'T HAVE THE RIGHT ARCHITECTURE UNDERNEATH THAT THAT WE COULD BUILD LAMBDA ON. SO FINE GRAINED ISOLATION AND HOTSPOT MANAGEMENT AND THINGS LIKE THAT. SO THERE WAS THIS TENSION BETWEEN THESE THREE

DIFFERENT THINGS, THE THREE DIFFERENT NONFUNCTIONAL REQUIREMENTS SECURITY, STRONG ISOLATION, COST AND GETTING INSIGHT INTO YOUR CUSTOMERS. SO WE MADE A DECISION UPFRONT, GIVEN THAT WE DIDN'T HAVE THE TECHNOLOGY TO MAKE THIS VERY COST EFFECTIVE TO ACTUALLY SORT OF SACRIFY THIS IMMEDIATELY COST. SO THE TWO PROJECTS, ONE WAS BASICALLY STARTING LAMBDA AND THE SECOND COMPLETELY GREENFIELD PROJECTS UNDERNEATH TO START TO FIGURE OUT WHAT KIND OF INFRASTRUCTURE WE WOULD NEED TO SUPPORT THIS. SO WE WERE WILLING TO TAKE OUT TECHNICAL AND ECONOMIC DEBT ON DAY ONE. WE ALSO KNEW IMMEDIATELY ON DAY ONE THAT WE HAD TO PAY THAT OFF EVENTUALLY BECAUSE JUST LIKE ANY OTHER DEBT, YOU KNOW, THE INTEREST KEEPS COMPOUNDING AND AT SOME MOMENT IT BECOMES UNATTAINABLE. SO WE STARTED OFF WITH USING TO BUILD LAMBDA WE STARTED OFF WITH THE SMALLEST BUILDING BLOCKS WE HAVE THAT COULD GIVE ISOLATION AND SO THOSE WERE THE T2'S, THE T2 DB INSTANCE. AND YOU PROBABLY ALL

KNOW ABOUT VIRTUALIZATION BY NOW. BASICALLY T2'S WIN ON TOP OF A HYPERVISOR WINS ON REAL HARDWARE AND THESE ARE ACTUALLY PRETTY COARSE GRAIN. IF YOU THINK ABOUT LAMBDA FUNCTIONS BEING REALLY SMALL, THESE TWO T2'S EVEN THOUGH THEY'RE THE SMALLEST INSTANCE TYPE THAT WE HAVE, IS MUCH BIGGER THAN WHAT WE NEEDED TO ACTUALLY EXECUTE THAT FUNCTION. BUT WE NEEDED THE ISOLATION. WE NEEDED THE SECURITY ISOLATION. SO WE WENT

AHEAD AND ACTUALLY IMPLEMENTED USING T2'S. SO BASICALLY YOU HAD A WHOLE COMPUTE POOL FULL OF T2'S WHERE WE WERE EXECUTING THESE LAMBDA XEN. WE MADE SURE THAT EACH LAMBDA FROM EACH ACCOUNT WOULD BE EXECUTED IN SITE ISOLATION. SO INSIDE THE T2 NOW YOU CAN ALREADY SEE WHAT'S HAPPENING THERE IS THAT SOME OF THESE T2'S ARE TREMENDOUSLY UNDERUTILIZED. WHY? BECAUSE THERE'S ONLY 2 OR 3. THESE LAMBDA FUNCTIONS EXECUTING EVERY SECOND, BUT ALSO SO WE SAW EXACTLY THE OTHER SIDE HAPPENING BECAUSE QUITE A FEW OF THESE LAMBDA FUNCTIONS ACTUALLY HAPPENED IN SYNCHRONY. SO YOU WOULD GET NOT ONE EXECUTION OF

THIS LAMBDA FUNCTION. WE'D GET 1000 OR 10,000 AT THE SAME TIME. AND SO WHERE ON ONE HAND THEY WERE UNDERUTILIZED QUITE A FEW OTHERS WERE COMPLETELY OVERLOADED AND WE COULDN'T DO FINE GRAIN RESOURCE MANAGEMENT BECAUSE WE DIDN'T HAVE WE DIDN'T HAVE THE FINE GRAINED CAPABILITIES UNDERNEATH THERE. SO WE KNEW WE HAD TO REPAY THIS DEBT. AND WE DID THAT BY DOING

MASSIVE INNOVATION. AND THE INNOVATION BECAME WHAT WE NOW KNOW AS FIRECRACKER. THE IDEA OF BUILDING MICROVMS BASED ON KVM. AND WE COULD LAUNCH A FULL ISOLATION VIRTUAL MACHINE IN A FRACTION OF THE TIME THAT IT WOULD TAKE TO SPIN UP A TWO T2 AND KVM EXPLOITS HARDWARE VIRTUALIZATION. SO THAT MAKES IT THAT IT'S EXTREMELY EFFICIENT FOR THESE VERY SMALL VMS THAT WE'RE DOING AND SO ALSO IT ALLOWED US, GIVEN THAT NOW WE HAVE A VERY SMALL BOUNDARY IN ISOLATION E.ON TO MAKE SURE THAT WE CAN USE MULTI-TENANCY AND IT'S VERY EASY TO DO HOTSPOT MANAGEMENT NOW BECAUSE YOU HAVE THESE VERY FINE GRAINED ISOLATION BOUNDARIES AND WE'RE GOING TO MAKE SURE THAT WE COULD FULLY OPTIMIZE MEMORY AND COMPUTE BY BASICALLY HOTSPOT MANAGING OVER DIFFERENT TYPES OF, OF PHYSICAL HARDWARE. AND SO ALL OF THIS DROVE TREMENDOUS INNOVATION. IT'S NOT ONLY THAT

WE WERE ABLE TO MOVE OUR CUSTOMERS FROM THE T2 ENVIRONMENT LAMBDA WITHOUT THEM NOTICING OVER TO FIRECRACKER. WELL, TO BE HONEST, IT DID NOTICE EVERYTHING BECAME A LOT FASTER AND THAT PERFORMANCE BECAME A LOT MORE PREDICTABLE. BUT WE DIDN'T TELL THEM THAT THEY WERE JUST HAPPY WITH THAT.

YEAH, BUT IT ALSO GAVE US AN ENVIRONMENT FOR OTHER INNOVATION . WITHOUT FIRECRACKER, WE WOULD NOT HAVE BEEN ABLE TO BUILD FARGATE AND FARGATE ALLOWS YOU TO RUN SERVERLESS CONTAINERS. NO LONGER HAVING TO THINK ABOUT INFRASTRUCTURE MANAGEMENT. SO AND ALSO WHAT CAME WITH THAT AND SOMETHING I WANT TO REPEAT FROM WHAT I SAID LAST YEAR, YOU HAVE TO BUILD EVOLVABLE ARCHITECTURES BECAUSE YOUR ARCHITECTURES WILL CHANGE OVER TIME. YOU NEED TO MAKE SURE YOU CAN EVOLVE THEM WITHOUT IMPACTING YOUR CUSTOMERS . AND THAT'S SORT OF WHAT WE SAW HERE WITH LAMBDA AS WELL. WE'RE VERY SUCCESSFUL ALL INITIALLY IN GETTING FEEDBACK FROM OUR CUSTOMERS, HOW OUR CUSTOMERS WERE USING IT WHEN WE WERE RUNNING ON THE T2'S AND THEN BUILD AN ENVIRONMENT UNDERNEATH THERE THAT REALLY MATCHES OUR COSTS WITH THE PRICING MODEL THAT WE GAVE OUR CUSTOMERS. NOW, ACTUALLY, LET ME TAKE A STEP

BACK. THIS IS A FUN STORY THAT I WANTED TWO DISTINGUISHED ENGINEERS OF S3 AT SOME MOMENT TOLD ME ABOUT SORT OF THE EVOLUTION OF S3 OVER TIME. AS WE STARTED OFF AS A SINGLE ENGINE CESSNA AND THEN IT WAS UPGRADED TO A SMALL JET AND THEN TO A GROUP OF JETS AND THEN EVENTUALLY TO A WHOLE FLEET OF THREE 80S THAT ARE REFUELING IN MID-AIR AND ACTUALLY CONTINUOUSLY HAVE OUR CUSTOMERS MOVING FROM ONE PLANE TO ANOTHER PLANE WITHOUT EVER NOTICING IT. AND THAT'S THE POWER OF AN EVOLVABLE ARCHITECTURE. BUT WHAT I WANT YOU TO WAIVE WALKER IT. THIS IS A FUN STORY, BUT WHAT I REALLY WANT YOU TO WALK AWAY WITH IS THAT WHEN YOU ARE CREATING TECHNICAL AND ECONOMIC DEPTH BECAUSE YOU'RE NOT TAKING COSTS INTO ACCOUNT, YOU HAVE TO PAY IT OFF. MY NEXT OBSERVATION IS THAT ARCHITECTING IS ALWAYS A

SERIES OF TRADE OFFS AND THE TRADE OFFS OF TRADE OFFS BETWEEN NON FUNCTIONAL REQUIREMENTS AND THE FUNCTIONAL REQUIREMENTS THAT YOU HAVE AS A DESIGNER. AND YOU LOOK AT THAT SORT OF COST VERSUS RESILIENCE VERSUS SECURITY, ALL OF THIS, YOU KNOW, AND SO I CAN TELL YOU STORIES ABOUT THIS AT AMAZON, BUT I RATHER HAVE SOMEONE ELSE WITH SIMILAR EXPERIENCES IS TELLING YOU THIS STORY AS WELL. AND SO MY NEXT GUEST HAS A GREAT STORY TO TELL. HOW THEY ALIGNED THEIR BUSINESS AND TECHNICAL PRIORITIES TO ACHIEVE REMARKABLE GROWTH. PLEASE WELCOME ON STAGE CAT SWETEL, THE SENIOR DIRECTOR OF ENGINEERING AT NUBANK. THANK YOU. WERNER. I'M SO HONORED TO BE HERE WITH YOU ALL TODAY. WITH 90 MILLION CUSTOMERS, NUBANK IS THE FOURTH

LARGEST FINANCIAL INSTITUTION IN BRAZIL AND THE FIFTH LARGEST IN LATIN AMERICA. BUT ONLY TEN YEARS AGO WE WERE JUST A FEW PEOPLE IN A LITTLE HOUSE IN SAO PAULO. BACK THEN, THE MAJORITY OF BRAZILIAN BANKING INSTITUTIONS WERE MANAGING MAINFRAMES AND LEGACY SYSTEMS. BUT WITH CLOUD TECHNOLOGY,

NUBANK WAS ABLE TO DISRUPT THE MARKET, MAKING BANKING MORE ACCESSIBLE FOR CUSTOMERS WHO NEVER HAD ACCESS BEFORE. NUBANKERS JOURNEY ALL STARTED IN THIS GUZZINA THE LITTLE HOUSE THAT I JUST TOLD YOU ABOUT WHERE NUBANKERS WORKED ON PRODUCTS THAT WERE BUILT TO BE SO EFFICIENT THAT WE COULD CHARGE MUCH MORE REASONABLE FEES. HOW DID NUBANK ACHIEVE SUCH RAPID GROWTH IN ONLY TEN YEARS? WE WERE BORN ON AWS, UTILIZING THE NEW REGION THAT I JUST OPENED IN SAO PAULO ABOUT A YEAR AND A HALF BEFORE OUR FOUNDING. AND AWS IS STILL NUBANKERS PREFERRED CLOUD PROVIDER FOR OUR FIRST PRODUCT WAS A CREDIT CARD WITH NO ANNUAL FEE AND AN UNPARALLELED CUSTOMER EXPERIENCE. BUT THAT DISRUPTION WAS ONLY THE BEGINNING. LANG SOON WE HAD A BANK ACCOUNT INSURANCE, INVESTMENTS, LOANS AND. IN-APP MARKETPLACE ENVIRONMENT CONSISTS OF OVER 40

DIFFERENT AWS SERVICES. UNDERLYING OVER 1000 HOOD CLOJURE MICROSERVICE OFFICES. WE WERE FOCUSED ON GROWTH AND WE WERE SUCCEEDING. THEN IN 2020, THE BRAZILIAN CENTRAL BANK APPROACHED FINANCIAL INSTITUTIONS WITH A RADICAL NEW IDEA FOR HOW TO TRANSFER MONEY BEFORE 2020. TRANSFERS BETWEEN

ACCOUNTS IN DIFFERENT BRAZILIAN BANKS WERE SLOW AND EXPENSIVE. THEY TOOK UP TO A FULL BUSINESS DAY TO COMPLETE AND COST UP TO 5 USD. THEN ON TO INCENTIVIZE FINANCIAL INCLUSION AND INCLUSION. BRAZIL'S CENTRAL BANK PROPOSED A NEW PROTOCOL CALLED PIX FOR THOSE OF US IN THE US, PIX MIGHT BE A STRANGE CONCEPT.

IT'S TRULY INSTANT, REAL TIME LIQUIDATION AT ZERO COST TO CUSTOMERS WAS AVAILABLE 24 OVER SEVEN 365 AND ALL BACKED BY THE BRAZILIAN CENTRAL BANK, MEANING WHEN SOMEONE TRANSFERS YOU MONEY, IT'S ACE INSTANTLY AVAILABLE IN YOUR ACCOUNT, YOUR REGULAR ACCOUNT, SO THAT YOU CAN MAKE A PURCHASE OR PAY A BILL. SO SO WE SPENT FIVE MONTHS DEVELOPING NUBANKERS PIX FLOWS TO MEET THE TEN SECOND LATENCY REQUIREMENT DICTATED TO US BY THE CENTRAL BANK WHEN IT HIT THE MARKET. PIX WAS A HUGE SUCCESS, FAR OUTPACING THE USAGE THAT NUBANK HAD ANTICIPATED. AND IN ABOUT A YEAR PIX TRANSACTIONS PER MONTH HAD EXCEEDED THE COMBINED TOTAL OF CREDIT AND DEBIT TRANSACTIONS AS THE SCALE WAS MASSIVE LIVE AND IT'S SIGNIFICANTLY INCREASE LOAD ON OUR MOBILE APP AND OUR CUSTOMER FACING FLOWS. OUR WHOLE

TECHNICAL ENVIRONMENT WAS UNDER AN UNPRECEDENTED LEVEL OF STRESS AT THIS POINT. WE WERE IN A BIND . WE WERE FACING AN INSTABILITY IN MULTIPLE FLOWS DRIVEN BY THAT INCREASE PIX TRAFFIC. AND WE WERE ALSO FACING INCREASED COST SCRUTINY AS WE TRANSITIONED AS A COMPANY OUT OF STARTUP HYPERGROWTH MODE. HOW WOULD WE DEAL WITH THE TRADE OFF BETWEEN COST AND STABILITY? FOR US, THE ANSWER WAS TO CHOOSE BOTH. WE SUSPECTED THAT A LOT OF OUR EXPLODING COST WAS JUST DUE TO THE MISGUIDED WAYS WE WERE TRYING TO ACHIEVE STABILITY. IN MANY CASES, WE WERE JUST

THROWING MORE MACHINES, MORE MEMORY, WHATEVER AT THE PROBLEM. INSTEAD OF ACTUALLY SOLVE ING THE PROBLEM. OUR HYPOTHESIS WAS THAT IF WE STABILIZED OUR SYSTEMS, COSTS WOULD ALSO STABILIZE WITH THE AWS NUBANKERS PIX TEAM SPEARHEADED A MULTI TEAM EFFORT TO TEST THAT HYPOTHESIS. OF COURSE, WE INITIALLY ADDRESSED URGENT ARCHITECTURAL CHALLENGES, BUT WE ALSO MADE THREE LESS OBVIOUS BUT VERY IMPACTFUL CHANGES. AS FOR THE FIRST CHANGE, WE NOTICED THAT SOME OF NUBANKERS MICROSERVICES WERE EXPERIENCING INSTABILITY AS A RESULT OF LONG GARBAGE. COLLECTOR PAUSES SO IN OUR QUEST FOR STABLE EFFICIENCY, WE STARTED TO EXPERIMENT WITH THE Z GARBAGE COLLECTOR FOR THOSE MICROSERVICES THAT WERE EXPERIENCING THE LONG STOP THE WORLD. GC PAUSES. NOW ZGC COSTS US MORE IN RAM THAN THE G ONE

GARBAGE COLLECTOR AND IT REALLY MADE NO DIFFERENCE DURING STEADY STATE OPERATIONS, BUT IT DRAMATICALLY DECREASED THE MAXIMUM GC PAUSE LENGTH, WHICH SAVED TIME AND MONEY FOR SOME OF OUR MOST CRITICAL SERVICES. AFTER GARBAGE COLLECTION WAS ADDRESSED, WE STARTED TO LOOK TOWARDS OUR DATABASES, CACHING STRATEGY, OUR CANONICAL DATABASE DATOMIC IS AN APPEND ONLY DATABASE. THAT'S BACKED BY AMAZON DYNAMODB DB DATOMIC MAKES USE OF AN IN-MEMORY CACHE AS WELL AS AMAZON ELASTICACHE AS AN EXTERNAL CACHE AS THE AMOUNT OF DATA GREW FOR SOME OF OUR MOST CRITICAL SERVICES DATA LOCALITY BECAME A CHALLENGE AND MORE AND MORE TRANSACTIONS HAD TO HIT THAT EXTERNAL CACHE. AT FIRST WE TRIED TO JUST ADD MORE MEMORY TO BEEF UP THE LOCAL CACHE, BUT THAT PROVED PRETTY INEFFICIENT. SO INSTEAD WE DECIDED TO START EXPERIMENTING WITH A NEW CACHING STRATEGY USING NVME DISK X WHERE WE COULD CACHE A LOT OF DATA AND QUERY WITH PRETTY LOW LATENCY AS JUST ONE EXAMPLE OF THE GREAT RESULTS FOR ONE OF OUR CRITICAL MICROSERVICES. FOR EVERY $1 THAT WE INVESTED IN NVMES, WE AVOIDED SPENDING $3,500 ACROSS THOSE FLOWS. SO THE STABLE OPTION

ENDED UP BEING A NET COST SAVINGS AS OUR CULTURE ALSO CHANGED. AND THAT WAS A BIG PART OF NUBANK SUCCESS. ACE IN ORDER TO MAKE IMPORTANT DECISIONS AND GOOD TRADE OFFS IN CONTEXTS, LEADERS AT NUBANK NEED TO HAVE BASIC TECHNICAL UNDERSTANDING OF THEIR PRODUCTS AND OUR INFRASTRUCTURE. AND THAT MOVEMENT KIND OF STARTED WITH THE PIX LEADERSHIP TEAM. BUT THE CHANGE QUICKLY BECAME A STANDARD ACROSS THE COMPANY. AND TODAY BUSINESS UNITS AT NUBANK ARE EXPECTED TO HAVE AN AWS COST CHAMPION TO HELP LEADERSHIP MAKE IN FORMED DECISIONS THAT BALANCE COMPETING CONCERNS IN THE CASE OF PIX, OUR HYPERPOD THESIS HAD BEEN PROVEN TRUE STABLE SYSTEMS WERE EFFICIENT SYSTEMS COST STABILIZED AND BECAME MORE PREDICTABLE. MEANWHILE, THE TIME

WE SPENT IN HIGH SEVERITY INCIDENTS DID GREASED BY AN ORDER OF MAGNITUDE AND THE P99 ON OUR LATENCY SLA DECREASED BY 92. IN FACT, WITH THE REMARKABLE 35% EFFICIENCY RATIO, WE STAND AS ONE OF THE MOST EFFICIENT COMPANIES IN OUR SECTOR AND THAT TRANSFORMATIVE IMPACT HAS SAVED OUR 90 MILLION CUSTOMERS $8 BILLION IN FEES IN 2022. NUBANK GROWTH IS FUELED BY OUR LOW COST OPERATING PLATFORM AND OUR EFFICIENCY, WHICH ALLOWS US TO CHARGE LESS AND INVEST MORE IN OUR CUSTOMERS. NOW, FOR EVERY

TWO ADULTS IN BRAZIL, ONE IS A NUBANK CUSTOMER AND WE HOPE TO CONTINUE CLOSING THE GAP AND MAKE BANKING ACCESSIBLE TO ALL. THANK YOU. FOR PIX CAT. ONE THING THAT REALLY STUCK ME WAS THOSE WORDS THE BUSINESS NEEDS TO UNDERSTAND THAT COSTS AND I THINK SOMEONE WROTE ON TWITTER EVERY ENGINEERING DECISION IS A BUYING DECISION. KEEP THAT IN MIND AND ALSO LIKE ACTUALLY THE

WAY THAT THEY PUT THEIR METRICS AS AVAILABLE FOR EVERYONE TO WATCH. I KNOW THAT WHEN YOU START MAKING YOUR METRICS VISIBLE, IT CAN CHANGE BEHAVIOR. YOU HAVE TO REALLY FIGURE OUT AND THINK ABOUT SORT OF MEASUREMENTS AND OBSERVABILITY AND THINGS LIKE THAT. AND JUST LIKE NUBANK, I WANT YOU TO WORK WITH YOUR BUSINESS TO ALIGN YOUR PRIORITIES. AND THE ONLY WAY TO

DO THAT IS TO REALLY UNDERSTAND THEM. NOW, NEXT TO THOSE THREE LAWS THAT ARE CONSIDERED TO BE IN THE DESIGN PHASE, YOU WILL CONTINUOUSLY NEED TO SORT OF UNDERSTAND WHERE YOUR COST OVER TIME WILL ACTUALLY GOING UNOBSERVED. CURVED SYSTEMS LEAD TO UNKNOWN COSTS AND I HAVE A I HAVE A REALLY GREAT STORY HERE. MY HOMETOWN OF AMSTERDAM. YEAH, BEAUTIFUL HOUSES, THE OLD HOUSES OUT OF THE 1600S AND THINGS LIKE THAT IN THE 70S WHEN I GREW UP, THERE WAS THIS OIL CRISIS. ACE I DON'T KNOW IF YOU REMEMBER THAT

WE HAD CARELESS SUNDAYS. YEAH. AND OF COURSE, AT THAT MOMENT, EVERYBODY STARTED TO UNDERSTAND THAT BECOME CONCERNED ABOUT THE COST OF ENERGY AND THERE'S THIS GREAT INVESTIGATION AT THAT TIME BECAUSE IT TURNED OUT THAT THERE WERE HOUSES THAT WERE ALMOST IDENTICAL. BUT SOME OF THOSE HOUSES WAS USED ONE THIRD LESS ENERGY. WHY WAS THAT? IT WAS MIND BLOWING BECAUSE THESE HOUSES WERE THE SAME. BY THE WAY, THERE'S NO DOUBLE GLAZING

AND THINGS LIKE THAT IN THOSE DAYS YET. YEAH. SO THESE HOUSES ARE JUST RADIATING HEAT THE WHOLE TIME. BUT SOME OF THEM ARE RADIATING LESS HEAT. SO WHAT WAS THE DIFFERENCE BETWEEN THOSE HOUSES? THE HOUSES THAT USED MORE ENERGY HAD THEIR METER IN THE BASEMENT. IT WAS BASICALLY HIDDEN. THE HOUSES THAT USED LESS ENERGY HAD THEIR METER IN THE HALLWAY. THE FACT THAT EVERY TIME WHEN YOU ENTERED YOUR HOUSE YOU COULD SEE HOW MUCH ENERGY YOU HAD BEEN USING COMPLETELY CHANGED BEHAVIOR. AND AS SUCH,

YOU NEED TO MAKE SURE, FIRST OF ALL, THAT YOU UNDERSTAND WHAT YOU'RE MEASURING, OF COURSE, AND HOW THAT MEASUREMENT IT CAN CHANGE BEHAVIOR. NOW IF YOU'RE IN RETAIL LIKE AMAZON.COM, THERE'S A NUMBER OF COSTS THAT YOU ACTUALLY ALWAYS HAVE TO KEEP IN MIND. YEAH, ON ONE HAND, REMEMBER AMAZON IS A MASSIVELY MICROSYSTEMS DRIVEN ENVIRONMENT, RIGHT? WHERE EACH OF THE COST TO A PARTICULAR SERVICE IS OF A REQUEST TO A SERVICE WILL HAVE A CERTAIN COST. NOW OF COURSE, IT'S OFTEN HARD TO MEASURE THAT, BUT YOU NEED TO YOU ALSO NEED TO, IF YOU HAVE ACTUALLY ONE TOP LEVEL REQUEST THAT GOES OUT TO ALL THESE MICROSERVICES, YOU NEED TO BE ABLE TO GET THE AGGREGATE OF THAT AND THEN YOU NEED TO FIGURE OUT WHAT IS ACTUALLY MY CONVERSION FOR EACH OF THOSE REQUESTS. YEAH. AND ACTUALLY SO THERE'S LITERALLY DOZENS OF FEATURES ON AN AMAZON HOME PAGE AND EACH OF THEM MAY GO OUT ACTUALLY TO HUNDREDS OF BACKEND SERVICES. SO YOU NEED TO

ACTUALLY SORT OF DECOMPOSE THIS AND ALL OF THESE FEATURES THAT YOU CAN DECOMPOSE, THEY DO COME AT A CERTAIN COST. WHAT'S THE TOTAL COST OF THIS EXPERIENCE? YEAH. AND YOU CAN ACTUALLY MEASURE THOSE INDIVIDUAL COSTS. THEY ACTUALLY HAVE TO MEASURE AT MICRO SERVICE LEVEL. YOU HAVE TO ISOLATE THESE ONES WILL FOR

EXAMPLE, THE SERVICE THAT CAN GIVE YOU AN ESTIMATE OF DELIVERY SPEED. HOW MUCH DOES THAT COST ME TO, TO DO THIS? YEAH AND OF COURSE THE EASIEST WAY WOULD ACTUALLY BE TO JUST TAKE IT OVER A CERTAIN PERIOD OF TIME, TAKE THE NUMBER OF REQUESTS, DIVIDE THEM. THAT'S A LITTLE BIT SIMPLE, BUT IT'S A GOOD APPROXIMATION FOR YOU TO THINK ABOUT IF YOUR COST IS A NORMAL DISTRIBUTION, THEN THAT PROBABLY WILL WORK MORE. MORE IMPORTANTLY , OVER TIME, YOUR COSTS SHOULD BE GOING DOWN. IF YOU DON'T MAKE ANY CHANGES TO THIS AND NOT EVEN MAYBE SOME ECONOMIES OF SCALE.

BUT ALSO YOU SHOULD BE ABLE TO REACT. ARCHITECT TO DO PROFILING , TO START LOOKING AT SORT OF MOVING MAYBE FROM ONE ARCHITECTURE TO GRAVITON ALL THESE DIFFERENT THINGS THAT YOU CAN DO TO ACTUALLY DRIVE YOUR COSTS DOWN. AND SO OVER TIME, THE COST PER REQUEST TO THIS MICROSERVICE SHOULD BE GETTING DOWN AND THEN IN ON TOP OF THAT, YOU HAVE TO FIGURE OUT WHAT YOU TRANSMIT. THIS COST ON. WHAT IS THE COST OF SERVING THIS

APPLICATION OR THIS WEB PAGE FOR YOU? WHAT'S THE TOTAL COST? CAN YOU FIGURE THAT OUT? NOW I'M GOING TO SHOW YOU NOW A SLIDE AND JUST LIKE WHEN I SAW IT FOR THE FIRST TIME, YOU'RE GOING TO SCRATCH YOUR HEAD THIS THIS IS THE NUMBER OF MICROSERVICES IN THE BACK END OF AMAZON.COM. YEAH. MY REQUEST TO THE HOME PAGE ORIGINATES OVER THERE. IT GOES OUT TO ALL THE OTHER MICROSERVICES TO CONSTRUCT THIS PAGE FOR YOU. AND YOU CAN DIVE

DEEP INTO THEM. IN EACH OF THEM, YOU CAN FIGURE OUT WHAT THE COST IS OF THE INDIVIDUAL, WHAT'S THE ONES THAT ACTUALLY, AGAIN, MAKING MAKING CALLS TO OTHER MICROSERVICES. BUT YOU NEED TO UNDERSTAND THE COMPLETE PICTURE. THE COMPLETE COST PICTURE THAT IS ONE PAGE, THIS HOME PAGE ACTUALLY COSTS. AND YOU CAN BECAUSE REMEMBER IN AWS, EACH OF THE RESOURCES THAT YOU'VE BEEN USING COMES WITH A DOLLAR TAG ASSOCIATED WITH IT. SO YOU KNOW

EXACTLY THE COST OF EVERY SINGLE ONE OF THESE SERVICES. AND WE KNOW THE COST OF THE WHOLE SYSTEM. AND THEN OF COURSE, YOU NEED TO FIGURE OUT, YOU KNOW, WHAT IS ACTUALLY THE CONTRIBUTION OF EACH. AND ONE OF THESE FEATURES IS TO MY CONVERSION RATE. AND YOU NEED TO ALSO UNDERSTAND THE VALUE OF NEW

FEATURES. IF YOU START ACTUALLY SPENDING MORE MONEY ON ACTUALLY CREATING THIS PAGE FOR YOU, YOU SHOULD SEE YOUR REVENUE COMING UP. YOU SHOULDN'T SEE IT ACTUALLY FLATTENING OUT BECAUSE THAT MEANS YOU'RE MAKING INVESTMENTS THAT HAVE NO RETURN ON INVESTMENT. AND THERE ARE INDEED DIMINISHING RETURNS AT

SOME MOMENT. NOW, ONE OF THE THINGS THAT WE ARE VERY STRONG AT AND PROBABLY EVERYONE ELSE THAT ACTUALLY HAS A WEB APPLICATION, IS THAT YOU UNDERSTAND THERE'S THIS THIS COMMON KNOWLEDGE THAT IMPROVING LATENCY OF YOUR WEB PAGES WILL IMPROVE CONVERSION. SO IF YOU BUILD AN EVOLVABLE ARCHITECTURE, YOU PROBABLY ALSO MAKE IT EASY TO ACTUALLY EXPERIMENT. SO IMAGINE THAT YOUR 99% PERCENTILE FOR YOUR WEB PAGE LATENCY IS 1.7 SECONDS. AND IF YOU CAN ENGINEER THAT TO BRING TO 1.6, YOU KNOW HOW MUCH THAT'S GOING TO COST YOU, HOW MANY MORE RESOURCES.

AND YOU CAN SEE WHAT THE IMPACT IS ON CONVERSION AND AT SOME MOMENT BRINGING IN THE LATENCY, THERE IS NO LONGER HAVE A RETURN ON THAT MEASURE THAT THINK ABOUT HOW TO MEASURE IT AND MAKE IT UPFRONT, MAKE SURE THAT EVERYBODY UNDERSTANDS THAT YOU HAVE TO KNOW YOUR COST. AND I THINK IT'S OFTEN IT'S COMPLEX, AS YOU SEE THE APPLICATION THAT I JUST SAW, YOU, THE BACKEND FOR AMAZON.COM IS A PRETTY COMPLEX ENVIRONMENT, BUT WE HAVE MADE THIS REALLY OUR OWN BECAUSE WE NEED TO UNDERSTAND IT. WE TAIL

MARGINS ARE RAZOR THIN. WE NEED TO HAVE TOTAL CONTROL OVER OUR COST AT ANY TIME. NOW ALSO KNOW THAT QUITE A FEW OF YOU ARE LITERALLY RUNNING HUNDREDS OF APPLICATIONS AND IT'S SOMETIMES REALLY DIFFICULT TO REALLY UNDERSTAND SORT OF WHAT ARE THE METRICS THAT BELONG TO THIS PARTICULAR ONE APPLICATION. AND

YOU'VE BEEN ASKING THIS FOR QUITE A WHILE AND I'M HAPPY TO ANNOUNCE TODAY YOU KNOW, MYAPPLICATIONS BASICALLY GIVES YOU A NEW EXPERIENCE IN AWS CONTROL. IT GIVES YOU VISIBILITY TO COST HEALTH SECURITY AND PERFORMANCE PER APPLICATION. E.ON WHAT YOU CAN DO THERE IS BASICALLY WE HAVE A NEW APPLICATION TAG. YOU ASSIGN THAT TO THE RESOURCES THAT MAKE UP YOUR APPLICATION AND THEN YOU GET A SINGLE VIEW OF THIS OBSERVABILITY INTO MANY OF THE STANDARD FUNCTIONAL REQUIREMENTS, NONFUNCTIONAL REQUIREMENTS AND COST, AND WITH COST ALSO A PROXY OF SUSTAINABILITY. NOW SOMETIMES

IT'S HARD TO INSTRUMENT YOUR APPLICATIONS, ESPECIALLY THESE DAYS IF YOU START OFF WITH KUBERNETES FOR EXAMPLE, WITH EKS AND YOU'RE BUILDING THIS DISTRIBUTED APPLICATION WITH MANY CONTAINERS AND CONTAINER TYPES AND THINGS LIKE THAT IN INSTRUMENTING THE INNOVATIONS THAT YOU GET A GOOD HOLISTIC VIEW OF THEM IS NOT ALWAYS EASY. AND YOU NEED TO DO IT IN A CONSISTENT WAY. SO AND I KNOW THAT'S A LOT OF WORK, SO I'M HAPPY THAT TODAY WE MAKE AVAILABLE FOR YOU WHAT'S CALLED CLOUDWATCH APPLICATION SIGNALS AS SUCH THAT IT WILL AUTOMATICALLY INSTRUMENT OUT THE APPLICATIONS THAT YOU'RE BUILDING. SO THAT YOU CAN HAVE ONE SINGLE DASHBOARD IMMEDIATELY LOOKING AT ALL THE METRICS THAT ARE RELEVANT FOR YOUR EKS APPLICATION WITH ALL OF THAT, I WANT YOU TO WALK AWAY WITH THIS THING. YEAH, DEFINE YOUR METER. BECAUSE IF YOU CAN CONTINUE TO LOOK AT THIS METER, IT WILL CHANGE THE BEHAVIOR AND MAKE SURE MOWER THAT YOUR METER INCLUDES COST AND SUSTAINABILITY . NOW NOW ANOTHER OBSERVATION I HAD THAT, YOU KNOW, IF YOU BUILD COST AWARE ARCHITECTURES, YOU NEED TO IMPLEMENT COST CONTROLS. NOW, YOU CAN'T JUST RELY ON GOOD INTENTIONS. YOU NEED TO PUT

MECHANISMS IN PLACE AND AS SUCH, YOU NEED TO BUILD AND HAVE AT YOUR FINGERTIPS. SO YOU HAVE IT IN THE CLOUD TUNABLE ARCHITECTURES. AND REMEMBER IN AWS THE KNOBS ALWAYS GO TO 11. OH, COME ON, YOU MUST HAVE WATCHED SPINAL TAP. OH NO, I

DON'T CARE IF YOU CLAP ON LOUNGES OR NOT, WHATEVER. BUT IF I MAKE A JOKE, I WILL REALLY LIKE IT. IF YOU WOULD LAUGH IF. NOW. OKAY, GO BACK. WHAT WAS I DOING? SO SOFTWARE CHANGES SOFTWARE CHOICES LIKE DATABASE TYPES, API LANGUAGES AND. WELL, WELL DESIGN SYSTEMS OF NFR. THEY ALLOW THIS TUNING. AND IF YOU

LOOK AT BRINGING IT BACK TO AMAZON.COM AGAIN, YOU IMAGINE THAT ON THIS HOME PAGE. SO ALL THESE DIFFERENT COMPONENTS AND YOU NEED TO HAVE CONTROL TOOLS TO MANIPULATE THOSE COMPONENTS. ACE IMAGINE WHAT YOU'RE SEEING IS EITHER COST OR PERFORMANCE OR ONE OF THE OTHER METRO ICS THAT YOU'RE FOLLOWING IS GOING OUT OF BOUNDS. YOU NEED TO BE ABLE TO SWITCH SOME OF THOSE COMPONENTS OFF, AND THAT'S REALLY IMPORTANT . BUT YOU NEED TO BUILD THE SWITCH. BUT THE SWITCH SHOULD BE IN THE HAND OF THE BUSINESS. IT

SHOULD NOT ONLY BE SOMETHING WHERE YOU AS A TECHNOLOGIST MAKES A DECISION, IT'S A DECISION THAT YOU MAKE IN CONCERT WITH THE BUSINESS. BECAUSE AFTER ALL, THAT'S WHO WE ARE SERVING, THAT'S WHO ARE WORKING WITH. BUT YOU NEED TO HAVE THESE SWITCHES AND DIALS AVAILABLE SO THAT YOU CAN MAKE THESE DECISIONS CRUCIAL. IN ALL OF THAT, IT IS TO BE ABLE TO DO

DECOMPOSITION OF YOUR APPLICATION THAT YOU HAVE START TO FIGURE OUT WHICH ARE THE THINGS IN YOUR APPLICATION THAT ARE REALLY TRULY IMPORTANT AT MEDIUM IMPORTANT. MAYBE NOT THAT MUCH. IF YOU THINK ABOUT AMAZON RETAIL, AGAIN, WHAT IS IMPORTANT, WHAT ALWAYS NEEDS TO WORK TO HAVE THE APPLICATION WORK, SEARCH, BROWSE, SHOPPING CART CHECKOUT WITHOUT THAT, WE'RE DEAD IN THE WATER. THE SYSTEM, THE APPLICATION DOESN'T WORK AND THEN THERE'S A TIER TWO. WE CALL THAT TIER ONE. TIER TWO ARE MAYBE FEATURES SUCH AS RECOMMENDATIONS, PERSONAL IZATION SIMILARITIES, THINGS THAT REALLY ARE IMPORTANT FOR THE CUSTOMER TO ACTUALLY DISCOVER THE PRODUCTS THAT ARE LOOKING FOR BUT ARE NOT PART OF THE TRUE CORE OF THE APPLICATION. ONE OF THE THINGS THAT ACTUALLY MOVED FROM TIER

TWO INTO TIER ONE IS THE REVIEWS . IT TURNS OUT IF REVIEWS ARE OFFLINE, CUSTOMERS ARE NOT BUYING BECAUSE THEY TRUST THE OPINION OF THEIR PEERS. AND SO YOU HAVE TO MAKE DECISIONS. THEN TOGETHER WITH THE BUSINESS TO MAKE THESE TRADE OFFS. HOW MUCH AM I WILLING TO SPEND ON FAULT TOLERANCE OF TIER ONE? PROBABLY AS MUCH AS YOU CAN BECAUSE THAT ALWAYS NEEDS TO BE ON, BECAUSE WITHOUT THAT YOU DON'T HAVE A BUSINESS. REPLICATE OVER TAGS AT

MINIMUM, MAYBE FOR TIER TWO, YOU'RE WILLING TO ACTUALLY DIAL IT DOWN A LITTLE BIT, MAYBE FOR TIER TWO REPLICATING OVER TO AZS IS SUFFICIENT AND FOR TIER THREE, BEST SELLER LIST, WHO CARES IF THEY'RE OFF LINE FOR FIVE MINUTES? IT DOESN'T REALLY HAVE IMPACT ON THE CUSTOMER EXPERIENCE. SO YOU MAY HAVE A DIFFERENT TYPE OF RESILIENCE THERE IN MIND, BUT MAKE SURE THAT ALL OF THESE PIECES ARE CONTROLLABLE AND WHETHER YOU SWITCH THEM OFF OR WHETHER YOU THROTTLE THEM OR WHETHER YOU MAYBE TURN OFF PREFETCHING WHAT WE DO, WE ACTUALLY SEARCH FOR SOMETHING. WE LOOK AT WHAT IS THE MOST LIKELY PRODUCTS THAT YOU ARE LOOKING FOR AND THEN START PREFETCHING THEM TO MAKE SURE YOU'RE FASTER. MAYBE TURN THAT OFF. MAYBE FEWER DETAILS. BUT ALL OF THESE KNOBS, ALL OF THESE CONTROLS ARE FOR THE BUSINESS. YOU HAVE TO GIVE CONTROL TO YOUR CUSTOMERS. SO WITH ALL OF THAT, WHAT'S MY ADVICE THERE IS, YOU KNOW, ESTABLISH YOUR TIERS SO START THINKING ABOUT WHICH ARE THE PIECES OF MY SYSTEM THAT ARE ABSOLUTELY NEED TO BE UP AND RUNNING WITH PREDICTABLE PERFORMANCE ALL THE. TIME NOW,

IF YOU THINK ABOUT SORT OF THE ABOUT OPTIMIZATION, THERE IS ANOTHER WHAT I CONSIDER LOST ART. YOU KNOW, GIVEN THAT WE HAVE BEEN ABLE TO FOCUS ON REALLY FAST INNOVATION AND WE ACTUALLY WE'VE BEEN WE'VE BEEN MOVING REALLY FAST AND WE SOMETHING THAT WE DID WHEN WE ACTUALLY BE LIVING WITHIN THE CONSTRAINTS WAS REALLY TINKERING AT A SMALLER LEVEL. BUT THAT TINKERING HAS A SMALLER LEVEL IS BECOMING MORE AND MORE IMPORTANT BECAUSE IT TURNS OUT QUITE A FEW OF YOUR COST ARE ACTUALLY GOING THERE. YOU NEED TO START THINKING ABOUT WHAT IS SORT OF THE DIGITAL WASTE THAT THAT IS LAYING AROUND IN MY SYSTEM. WHAT ARE THE THINGS THAT I CAN JUST STOP? MAYBE THE BUSINESS DOESN'T LIKE IT ANYMORE. PBS SAID THEY HAD ONE PARTICULAR SERIES THAT MAYBE SOMEONE WAS TWICE A MONTH OR SOMETHING LIKE THAT, AND THEY STILL HAD IT RUNNING. THEY MANAGED TO TURN IT OFF. WHEN YOU

GO HOME AT NIGHT, DO YOU TURN OFF YOUR DEVELOPMENT ENVIRONMENT? YOU SHOULD. THERE'S NO REASON TO KEEP THAT RUNNING AT NIGHT OR MAYBE RIGHTSIZING. MOVE TO A SMALLER INSTANCE OR MAYBE TO A BIGGER INSTANCE OR MORE IMPORTANTLY, MOVE OVER TO GRAVITON SO YOU REALLY CAN DRIVE YOUR COSTS DOWN. OR MAYBE, YOU KNOW, START THINKING ABOUT HOW TO REDUCE THE KIND OF CAPABILITIES THAT YOU ARE PRESENTING TO YOUR CUSTOMERS. IS IT REALLY NECESSARY TO STREAM IN EIGHT K IS IT REALLY NECESSARY TO SEND THESE FIVE MEGABYTE IMAGE OVER THEN THE BROWSER ACTUALLY PUTS IT DOWN TO 600 BY 100 PIXELS IS NOT REALLY NECESSARY. WE START BECOMING SMART WITH THAT. YOU KNOW, REDUCE IT TO ACTUALLY THE AMOUNT OF RESOURCES THAT YOU REALLY NEED FOR YOUR APPLICATION. NOW, WHEN I THINK ABOUT THIS LOST

ART, I THINK ABOUT PROFILING. I DON'T KNOW HOW MANY OF YOU GREW UP WITH THIS, BUT THIS WAS IN MY TOOLBOX WHEN I WAS IN SCHOOL. NOW YOU REALLY NEEDED TO BE ABLE TO DIVE DEEP TO BE ABLE TO UNDERSTAND EXACTLY AT A FUNCTIONAL LEVEL WHERE WHERE YOUR TIME WAS GOING. AND CODEGURU PROFILER ACTUALLY GIVES YOU THIS AS WELL, NEXT TO THE LANGUAGE PROFILERS THAT YOU JUST SAW. YEAH A PROFILER WILL IN GENERAL GENERATE SOMETHING LIKE

THIS FLAME GRAPH. THIS IS ACTUALLY OF A REAL AMAZON SURFACE. I'M NOT GOING TO TELL YOU WHICH ONE, BUT IT IF YOU CAN ACTUALLY DIVE DEEP INTO THIS AND FIGURE OUT WHERE YOUR COST IS GOING, YOU SEE A PERCENTAGE GOING INTO GARBAGE COLLECTION. THAT'S YOUR CHOICE OF PROGRAMING LANGUAGE OVER THERE, THE IMPACTS THAT. BUT THERE'S A LARGE PART LEFT OVER HERE AND THAT'S TURNED OUT TO BE NETWORK COMMUNICATION. AND THAT'S KIND OF OUT OF

BALANCE. THAT'S NOT WHAT WE WOULD EXPECT IN THAT PARTICULAR CASE. AND THEN DIVING INTO THE CODE, YOU SUDDENLY START TO UNDERSTAND WHAT HAPPENED THERE WHEN THEY WERE DESIGNING THIS, THEY HAD A COMMON CASE IN MIND AND THEN FOR ANYTHING, MAYBE 99.9% WERE THE COMMON CASE. AND THAT 0.1, THEY WOULD THROW AN EXCEPTION FOR IT TURNED OUT THEY DIDN'T REALLY EXPECT IT, THAT IT WAS THE INVERSE OF THAT, 99% OF THE PACKAGES CAME IN, HIT THE EXCEPTION, AND SO BY SIMPLY CHANGING THIS EXCEPTION, HANDLING INTO AN IF THEN ELSE STATEMENT, BASIC ALI COMPLETELY REMOVED ALL THE PROCESSING THAT WAS NECESSARY THERE. THE EXCEPTION PROCESSING AND THEN THIS IS THE IF ELSE. AND WHAT

HAPPENED THEN IS THAT WE ACTUALLY WENT FROM 42% DOWN TO 27. YEAH SO THIS IS ACTUALLY A PROCESS THAT YOU CONTINUOUSLY NEED TO DO EVEN IF YOU DON'T FIND, LET'S SAY, THIS BIG DISPATCH REDIS, YOU STILL HAVE TO UNDERSTAND EXACTLY WHERE YOUR CYCLES ARE GOING. AND THIS IS A CONTINUOUS PROCESS. IT DOESN'T STOP AFTER DAY ONE. YOU NEED TO COMPLETE TO UNDERSTAND ESPECIALLY WOULDN'T IT BE THE FIRST TIME THAT I'VE HEARD FROM CUSTOMERS SAY WHY IS OUR THE BACK END SERVICE FOR OUR IOS APP SO MUCH MORE EXPENSIVE THAN THE ONE FOR AN ANDROID APP? WELL, MAYBE YOU SHOULD START LOOKING AT HOW THEY'RE IMPLEMENTED AND THE POWER OF PROFILING ALLOWS YOU TO BE CURIOUS AND DIVE DEEP. NOW, THE LAST ONE, MY OBSERVATION E.ON MAYBE A LITTLE BIT MORE CONTROVERSIAL. YEAH. AND SO PLEASE HOLD ON TO YOUR

EGOS AT THIS PARTICULAR MOMENT. YEAH THE MOST DANGER CURSE PHRASE IN THE ENGLISH LANGUAGE IS WE HAVE ALWAYS DONE IT THIS WAY. YEAH. REAR ADMIRAL GRACE HOPPER, THE GRANDMOTHER OF ALL THOSE DEVELOPERS HERE, WAS A VERY WISE WOMAN. AND, YOU KNOW,

ONLY BE THE FIRST TIME THAT I COME AT A CUSTOMER WHO WHO, WHO SAYS, YEAH, BUT WE'RE A JAVA SHOP. OH WE'RE REALLY GREAT AT RAILS. YEAH, WE'VE ALWAYS DONE IT LIKE THAT. AND YOU KNOW, WE'VE DONE THIS BEFORE IN MY PREVIOUS COMPANY. ARE YOU GOING

TO DO EXACTLY THE SAME? YOU HAVE TO KEEP IN MIND THAT THAT, YOU KNOW, DEVELOPMENT IS QUITE OFTEN EXPENSIVE, BUT, BUT THE COST TO BUILD DWARFS TO THE COST OF OPERATING YOUR APPLICATION. JENS THAT'S SOMETHING YOU HAVE TO KEEP IN MIND. AND THE WAY THAT YOU BUILD YOUR APPLICATION ON THE PLATFORMS YOU USE IS THE PROGRAMING LANGUAGES ISSUE IN SHOULD BE CONTINUOUSLY UNDER SCRUTINY. WHETHER YOU ARE PICKING THE RIGHT ONE. NOW I MENTIONED EARLIER THAT I THOUGHT THAT COST WAS A GOOD APPROXIMATION FOR SUSTAINABILITY , MAYBE THE OTHER WAY AROUND AS WELL. ISN'T THAT TERRIBLY MUCH RESOURCE WIZ RESEARCH INTO HOW MUCH CERTAIN PROGRAMING LANGUAGES WILL COST YOU? HOWEVER THERE IS BRILLIANT RESEARCH BY RUI PEREIRA AT THE RSC IN PORTUGAL ABOUT THE ENERGY USAGE OF PROGRAMING LANGUAGES, AND SO HE FIRST LAUNCHED THIS PAPER IN 2017 AND IT SHOCKED THE DEVELOPMENT WORLD. HE RELEASED THIS PAPER MUCH, MUCH DEEPER INSIGHT, MUCH DEEPER, SHOWING DIFFERENT TYPES OF APPLICATIONS THAT WERE BEING BUILT. TURNS OUT RUBY AND PYTHON ARE MORE THAN 50

TIMES AS EXPENSIVE AS THAT. C++ AND RUST ARE NOW, I KNOW THE REASONS WHY YOU WOULDN'T WANT TO USE C++ WITH ALL THE SECURITY RISKS THAT THERE ARE, BUT. BUT THERE IS NO REASON ON WHY YOU SHOULD NOT BE PROGRAMING IN RUST. IF YOU ARE CONSIDERING

COST AND SUSTAINABLE ABILITY TO BE HIGH PRIORITIES. WE IMPLEMENTED FIRECRACKER IN RUST WERNER LARGE PARTS OF S3 WE IMPLEMENTED IN RUST AND NOT ONLY BECAUSE THE ENERGY USAGE IS LOWER, WHICH WE AIM FOR, BUT ALSO BECAUSE THE SECURITY, THE STRONG TYPING, THE MEMORY SAFETY THAT YOU GET IN A FAST, EFFICIENT LANGUAGE LIKE RUST IS VERY IMPORTANT. NOW, IF ALL OF THIS NOW, I DON'T WANT YOU TO IMMEDIATELY START SORT OF THROWING AWAY EVERYTHING THAT YOU KNOW AND START OVER. BUT WE AS TECHNOLOGISTS LIVE IN A WORLD THAT IS MOVING SO FAST THAT WE ALWAYS NEED TO CONTINUE TO LEARN . WE ALWAYS NEED TO DISCONFIRM OUR OWN BELIEFS. PUT YOUR EGO ASIDE AS BEING THE MASTER JAVA PROGRAMMER, BUT START THINKING ABOUT THE COST ACTUALLY, AND THE COMPLEXITY OF HOW TO DEAL WITH THE GARBAGE COLLECTION. START

THINKING ABOUT THAT. MAYBE THIS MASSIVE PLATFORM UNDERNEATH THERE. MAYBE THAT'S COSTING YOU A LOT, EVEN THOUGH IT ALLOWS YOU TO DO VERY FAST PROTOTYPING. SO THIS CONFIRM YOUR BELIEFS. NOW SO THESE HAVE BEEN SORT OF MY OBSERVATIONS ABOUT COST AND SUSTAINABILITY. RT FOR THAT, I HAVE LEARNED OVER TIME AT AMAZON.COM. YEAH COST AWARENESS IS A LOST ART. WE HAVE TO REGAIN

THIS ART MOWER MOSTLY. ALSO BECAUSE SUSTAINABILITY IS A FREIGHT TRAIN THAT IS COMING YOUR WAY THAT YOU CANNOT ESCAPE AND SHOULD NOT ESCAPE. AND COST IS A PRETTY GOOD APPROXIMATION FOR THE AMOUNT OF RESOURCES THAT YOU'VE USED. THE CONSTRAINT IS

FROM THE PAST. I DON'T WANT TO GO BACK TO THEM, BUT WE MAY ACTUALLY BE WILLING TO BE HAVE SELF-IMPOSED CONSTRAINTS, PUT SOME CONSTRAINTS AROUND THE SYSTEMS THAT YOU'RE BUILDING IN TERMS OF COST AND SUSTAINABILITY. YEAH THAT'S WHY I BELIEVE THAT CONSTRAINTS, EVEN SELF-IMPOSED, THOSE CAN BREATHE CREATIVITY. NOW WITH THAT, I THINK THE FRUGAL ARCHITECT IS LIFE AT THIS MOMENT. NOT THAT THERE IS THAT TERRIBLY MUCH INFORMATION, BUT I WOULD LOVE TO WORK WITH YOU ACTUALLY TO INCORPORATE THAT YOUR COST AWARENESS LEARNINGS IN IT OVER TIME AS WELL. SO THE IS THE FRUGAL ARCHITECT.COM SO SORRY. GIVE ME ONE MOMENT. NOT WHAT YOU WERE EXPECTING

PROBABLY MORE OR PRIVATE ISLANDS AND SAILBOATS ARE NOT THAT ORACLE. I'M SOMETIMES RIGHT ABOUT THE FUTURE ACTUALLY THAT'S WHY YOU'RE HERE. YEAH I NEED YOUR INSIGHT. EVERYTHING FEELS ALL THE TIME. EVEN THE SIMPLEST OF HARDWARE. YOU SEE, I HAVE BEEN ASKED TO USE MY GIFT TO MAKE SOME TECH PREDICTIONS FOR A LAPTOP. VICTOR MAGAZINE AND I'VE HEARD THAT YOU ARE SOMETHING OF A TECH SLEUTH. SAFER. SO WHAT ARE YOUR PREDICTIONS UP TO NOW? ENVISAGE IF YOU WILL, A WORLD WHERE ARTIFICE INTELLIGENCE IS REPRESENTED BY AN OMNIPRESENT, BENEVOLENT ATTENDANT. IT IT WILL

REVOLUTION. IONIZE INDUSTRIES LIKE HEALTH CARE, FREE MEDICAL MAESTROS FROM ADMINISTRATIVE BURDEN THAT IT'S NOT REALLY THE FUTURE. YOU KNOW, HEALTH CARE IS ALREADY DEEPLY INGRAINED IN VERY ADVANCED ANALYTICS AND MACHINE LEARNING OKAY. WHAT HOW ABOUT

THIS DARE TO DREAM OF A FUTURE WHERE DEVELOPERS ARE NO LONGER SOLITARY MAVENS CODING WITHIN THE CONFINES OF INDIVIDUAL EXPERIENCE? NO NO. THE BUILDERS OF THE FUTURE WILL DANCE SIDE BY SIDE WITH AI IN A CELESTIAL BALLET OF ORGAN DIGITAL PAIR PROGRAMING. I'M NOT FEELING THAT EITHER. CODEWHISPERER IS ALREADY HERE. YOU KNOW THAT FUTURE IS NOW NO DANCE NECESSARY. ALL RIGHT. ALL RIGHT. YOU ARE GONNA LOVE LOVE THIS ONE. LAP FIESTA IS. IS DANCE HOVERBOARDS. OH, NO, NO, NO, NO, NO. LET ME STOP YOU THERE RIGHT AWAY. THAT'S NOT GONNA FLY. MAKING TECH

PREDICTIONS IS TOUGH. WELL, THE FUTURE IS NOT SCIENCE FICTION TO BE ABLE TO MAKE GOOD PREDICTIONS. YOU HAVE TO THINK ABOUT THE PRESENT, RIGHT? BECAUSE THE FUTURE IS. NOW BEFORE YOU GO HERE, HAVE A COOKIE. OH NO. I ONLY ACCEPT ESSENTIAL COOKIES. SO I'M NOT AN ORACLE. BUT OBSERVING THE

PRESENT ACTUALLY HELPS KIND OF PREDICT THE FUTURE. AND THAT IS ESPECIALLY AT AWS, THE KIND OF THINGS THAT WE ARE DOING AT AWS OFTEN DEFINES THE TECHNICAL FUTURE AND THAT IS ACTUALLY REALLY IMPORTANT. BUT I ALSO THINK THAT HISTORICAL CONTEXT IS IMPORTANT. LOOK AT THE BIGGER PICTURE. LOOK A BIT BACK, YOU KNOW, AND I KNOW THAT WE'VE ALL SEEN AMAZING INNOVATIONS BEING PRESENTED TO YOU THIS THIS WEEK IN THE AREA OF GENAI AND LMS AND HOW WE'RE GOING TO CHANGE DEVELOPMENT AND HOW BUSINESSES ARE GOING TO CHANGE. BUT WHERE DID THIS ACTUALLY COME FROM? WELL, THAT'S THE HISTORY OF THIS . IT GOES BACK TO MY FAVORITE EARLY GREEK PHILOSOPHERS, PLATO AND ARISTOTLE, BOTH OF THEM WERE THINKING ABOUT ABOUT WHETHER MACHINES COULD ACTUALLY DO THE TASKS OF HUMANS. AND THEY WERE THINKING ABOUT SORT OF WHAT IS

ACTUALLY WHAT IS IT ACTUALLY THE CONTROLS HUMANS. ARISTOTLE THOUGHT IT WAS THE HEART, THE SOUL THAT ACTUALLY DROVE HUMANS. BUT PLATO ACTUALLY THOUGHT IT WAS SYMBOLIC IN YOUR HEAD AND ACTUALLY PLATO WENT AS FAR. IF YOU READ THE REPUBLIC, THAT HE CREATED A CITY STATE IN THAT BOOK WHERE ARE ACTUALLY MACHINES ROBOT ACE WERE DOING THE CHORES. NOW THAT'S ABOUT 20, 25 CENTURIES AGO. NOT MUCH HAPPENED . FOR ABOUT 25 CENTURIES IN THAT SENSE, UNTIL THE FIRST COMPUTERS ARRIVED AND COMPUTERS COULD DO MUCH MORE THAN JUST CALCULATIONS. THEY WERE CAPABLE

OF MORE COMPLEX TASKS. AND EVERYBODY STARTED THINKING THAT, OH, MAYBE THIS IF THE HUMAN IS INDEED, YOU KNOW, DRIVEN BY SORT OF THE SYMBOLIC COMPLEXITY IN THEIR HEAD, MAYBE WE CAN USE COMPUTERS FOR THAT AS WELL. AND OF COURSE, ONE OF OUR MORE IMPORTANT PHILOSOPHERS OF THE LAST CENTURY, ALAN TURING, SPENT A LOT OF TIME ON THAT. HE REALLY STARTED TO THINK ABOUT CAN MACHINES, COMPUTERS, THINK AND HIS FAMOUS PAPER IN 1950 COMPUTING MACHINES AND INTELLIGENCE IS REALLY SORT OF THE GROUNDBREAKING WORK THAT WE STILL LIVE BY. WE STILL TALK ABOUT THE TURING TEST NOW, UNFORTUNATELY, TURING TRAGICALLY DIED BEFORE HE COULD JOIN THIS 1956 WORKSHOP AT DARTMOUTH. IN THIS WORKSHOP, THE TERM ARTIFICIAL INTELLIGENCE. WAS

COINED FOR THE FIRST TIME, BUT STILL MOST OF THE RESEARCH IS AVAILABLE. THERE WERE FROM THE SYMBOLIC AI FIELD. THEY'RE REALLY THINKING ABOUT SORT OF CAN WE IMPLEMENT REASONING, CAN WE IMPLEMENT THIS SYMBOLIC REASONING, CAN WE USE MATHEMATICS FOR THOSE KIND OF THINGS? I DIDN'T REALLY GO ANYWHERE THERE, NOT IMMEDIATELY, AT LEAST. AT LEAST AUTOMATED REASONING AND THINGS LIKE THAT HAVE BECOME TOOLS THAT ARE INCREDIBLY IMPORTANT, BUT NOT NECESSARILY IN THE FIELD OF AI AS WE KNOW IT NOW. ONE OF THE THINGS THAT WE DID STARTED TO BUILD IN THOSE DAYS WAS CALLED EXPERT SYSTEMS. I BUILT A FEW OF THOSE USING PROLOG, AND I STILL DON'T LIKE THE CURTAINS BEHIND IT. SO EXPERT SYSTEMS ACTUALLY SORT OF INCORPORATED KNOWLEDGE IN RULES. AND THEN YOU COULD EXECUTE QUERIES AGAINST IT AND

SORT OF GET GET ANSWERS BACK. BUT THEY WERE VERY LABORIOUS AND THEY WEREN'T, TO BE HONEST, THEY WEREN'T THAT TERRIBLY SMART. THE BIG BREAKTHROUGH CAME WHEN WE SAW THIS SHIFT HAPPENING FROM SYMBOLIC AI TO EMBODIED AI AND WHAT THAT MEANS IS BASICALLY THAT GROUPS OF RESEARCHERS STARTED TO THINK, IF WE WILL, MAYBE IF WE START TO HAVE THESE BASIC BUILDING BLOCKS THAT HUMANS HAVE TO PERFORM TASKS, MAYBE OUT OF THAT WE CAN BUILD ARTIFICIAL INTELLIGENCE THAT IS MOSTLY DRIVEN BY THE IDEA THAT YOU HAVE ROBOTS. WHAT ARE THE KIND OF CAPABILITIES THAT ROBOTS

NEED? BUT THAT KIND OF SENSES THAT WE HAVE THAT WE NEED TO GIVE ROBOTS, YOU KNOW, SPEECH RECOGNITION OR IMAGE RECOGNITION AND EVEN MAYBE SENSORS THAT WE AS HUMANS DON'T EVEN HAVE LIKE LIDAR NOW CAN WE BUILD THAT OURSELVES? AND THAT THINKING ACTUALLY IS DRIVEN US FOR THE PAST TEN, 15 YEARS. AND WE SAW NEW ALGORITHMS ARRIVING DEEP LEARNING BECAME IMPORTANT. REINFORCEMENT LEARNING, ALL THOSE DIFFERENT TYPES. AND WHAT WE SAW WAS SOFTWARE IMPROVED, ALGORITHMS IMPROVED, THE HARDWARE STARTED TO IMPROVE SOFTWARE IMPROVED AGAIN, AND WE SAW A REALLY QUICK ACCELERATION OF ALL THESE DIFFERENT ALGORITHMS HAPPENING SUCH THAT WE COULD DO BETTER LEARNING AND BETTER BUILT THESE BIG MODELS THAT WE COULD ACTUALLY HELP US DO TASKS. NOW NOW, OF COURSE,

2023-12-08 02:56

Other news