jim benedetto startonomics la

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Moving out of the Garage Scaling for Startups AKA why scaling is fun

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Jim Benedetto on "Scaling for the Masses" at Dealmaker Media's Startonomics LA Conference on Feb 6/09

TRANSCRIPT

Page 1: Jim Benedetto Startonomics LA

Moving out of the Garage

Scaling for StartupsAKA why scaling is fun

Page 2: Jim Benedetto Startonomics LA

Why are you here?• I want to conquer an incredibly technically

challenging problem that no one has solved– Others have attempted to solve it and failed (or

succeeded but I can do it better)– I see something that no one has tried to solve

• I want to build a business possibly based on technology that fills a gap in the market– Technology is core, product is centric

• I want to leverage technology to build a non tech based revenue generating business– Technology is awesome, and it is going to support my

business.

Page 3: Jim Benedetto Startonomics LA

The Path

Page 4: Jim Benedetto Startonomics LA

Day 1: aka the last easy day of your life(or at least for a while)

Page 5: Jim Benedetto Startonomics LA

G2

Page 6: Jim Benedetto Startonomics LA

Day X

Page 7: Jim Benedetto Startonomics LA

myspace.com : a place for moving0-20M active users in 2 years

0-100M active users in 4 years

Page 8: Jim Benedetto Startonomics LA

Laying Foundations

• Lay groundwork to prepare for 3 critical growth phases– Scaling the technology– Scaling the team– Scaling the revenues/efficiency

• Decisions made in first 90 days create lasting impressions that can be felt for years

Page 9: Jim Benedetto Startonomics LA

Scaling the Technology

• Scale up vs. scale out is no longer a question– Unless you just founded a bank, don’t scale up

• Partition Data– Decide early on, and make the right decision• Range Based• Mod Based• Mod’ed Ranges (if I had to do it over)

• Concentrate on write management

Page 10: Jim Benedetto Startonomics LA

Scaling the Technology

• Don’t solve problems you don’t have– Reuse as many existing solutions as possible– What are your goals?

• Make $$?• Build Cool Technology?• Both?

• Fail Fast– Admit failure

• Don’t Double Down on bad decisions– Walk away from failure

Page 11: Jim Benedetto Startonomics LA

Infrastructure Decisions

Leverage existing publically available scaling solutions

– Replication– Sharding– Memcache– Hardware loadbalancers– NAS/SAN

Leverage public solutions whenpossible, when not develop proprietary internal scaling solutions

– Myspace DFS– MyCache– Transaction Manager– Dspace map/reduce

Leverage public and internal solutions

– Without negatively impacting developer productivity

– Without wasting time– Without wasting money

Easiest

Harder

Most Difficult

Page 12: Jim Benedetto Startonomics LA

Decouple the User from the Authoritative Disks

Reading

Writing

Cache

Queue

AuthoritativePrimary Arrays

Overflow

Overflow

Relational Data Store

Flat Data Store

SAN/NAS Virtualization

Layer

Page 13: Jim Benedetto Startonomics LA

Decouple the User from the Authoritative Disks

Reading

Writing

Cache

Queue

AuthoritativePrimary Arrays

Overflow

Overflow

Relational Data Store

Flat Data Store

SAN/NAS Virtualization

Layer

Page 14: Jim Benedetto Startonomics LA

Decouple the User from the Authoritative Disks

Reading

Writing

Cache

Queue

AuthoritativePrimary Arrays

Overflow

Overflow

Relational Data Store

Flat Data Store

SAN/NAS Virtualization

Layer

Page 15: Jim Benedetto Startonomics LA

Range PartitionsUsers 0 -1 Million Users 1-2 Million Users 2–3 Million

New User PipeNew User Pipe

• Infinitely Scalable• Newest Ranges Create Hot Spots

Page 16: Jim Benedetto Startonomics LA

Mod PartitionsMod 1 Mod 2 Mod 3

New User PipeNew User Pipe

•Eliminates Hot Spots•Difficult to add new hardware•Scalable only to a certain point

Page 17: Jim Benedetto Startonomics LA

Mod/Range Combo PartitioningUsers 0 – 1 Million /

Mod 1

New User PipeNew User Pipe

Users 0 – 1 Million / Mod 2

Users 0 – 1 Million / Mod 3

Users 1 – 2 Million / Mod 1

Users 1 – 2 Million / Mod 2

Users 1 – 2 Million / Mod 3

•Eliminates Hot Spots•Infinitely Scalable•Adding additional hardware is easy

Page 18: Jim Benedetto Startonomics LA

Scaling the Organization• The first 25 people you hire will define the success of

your company– Don’t hire fast, hire smart

• Manage your burn, not your timeframe– Do you have competitors trying to do the same?– Are you second to market?

• Sprint– Is it new? Is no one else thinking about this?

• Marathon• Be smart about your stealth phase– Countless failures from coming out to early– Countless failures from coming out to late

Page 19: Jim Benedetto Startonomics LA

We Want To Code

Page 20: Jim Benedetto Startonomics LA

Scaling the Organization

• #1 Priority – Minimize ramp time– Counterpart to technology’s “fail fast”

• Abstract core technologies from front end development groups– Data Access Layer– Cache– Queues– Etc.

• Create vertical product partitions with horizontal skillset partitions

Page 21: Jim Benedetto Startonomics LA

Scaling Profit

• Technology is a cost center– Manage profit by managing expenses

• Bucket Scaling Model• Calculate yearly cost of user– Inverse LUV

• Use commodity gear– No SAN/NAS unless absolutely necessary

• Leverage CDN• The Cloud?

Page 22: Jim Benedetto Startonomics LA

True?False?

Page 23: Jim Benedetto Startonomics LA

True?False?

Page 24: Jim Benedetto Startonomics LA

The Cloud• I love a good buzzword

– Cloud Computing– Economies of scale?– Little to no SLA. Now you own my data

• Consumers eat the cloud– Email (circa…how long ago?)– Photos– Interests

• The cloud has existed for consumers for the last 15 years• As a business, unless you are doing something that requires huge

volatile processing power, rent your servers.• Don’t handshake your data

– Your business is your data• Build your own cloud

– GlusterFS– MaxiScale

Page 25: Jim Benedetto Startonomics LA

Questions?