Sitemaps
Are We Growing or Just Getting Fat?
Let's Get Back to Our Why
Does Startup Success Validate Us Personally?
How We Secretly Lose Control of Our Startups
Should Kids Follow in Our Founder Footsteps?
The Evolution of Entry Level Workers
Assume Everyone Will Leave in Year One
Stop Listening to Investors
Was Mortgaging My Life Worth it?
What's My Startup Worth in an Acquisition?
When Our Ambition is Our Enemy
Are Startups in a "Silent Recession"?
The 5 Types of Startup Funding
What Is Startup Funding?
Do Founders Deserve Their Profit?
Michelle Glauser on Diversity and Inclusion
The Utter STUPIDITY of "Risking it All"
Committees Are Where Progress Goes to Die
More Money (Really Means) More Problems
Why Most Founders Don't Get Rich
Investors will be Obsolete
Why is a Founder so Hard to Replace?
We Can't Grow by Saying "No"
Do People Really Want Me to Succeed?
Is the Problem the Player or the Coach?
Will Investors Bail Me Out?
The Value of Actually Getting Paid
Why do Founders Suck at Asking for Help?
Wait a Minute before Giving Away Equity
You Only Think You Work Hard
SMALL is the New Big — Embracing Efficiency in the Age of AI
The 9 Best Growth Agencies for Startups
This is BOOTSTRAPPED — 3 Strategies to Build Your Startup Without Funding
Never Share Your Net Worth
A Steady Hand in the Middle of the Storm
Risk it All vs Steady Paycheck
How About a Startup that Just Makes Money?
How to Recruit a Rockstar Advisor
Why Having Zero Experience is a Huge Asset
My Competitor Got Funded — Am I Screwed?
The Hidden Treasure of Failed Startups
If It Makes Money, It Makes Sense
Why do VCs Keep Giving Failed Founders Money?
$10K Per Month isn't Just Revenue — It's Life Support
The Ridiculous Spectrum of Investor Feedback
Startup CEOs Aren't Really CEOs
Series A, B, C, D, and E Funding: How It Works
Best Pitch Decks Ever: The Most Successful Fundraising Pitches You Need to Know
When to Raise Funds
Why Aren't Investors Responding to Me?
Should I Regret Not Raising Capital?
Unemployment Cases — Why I LOOOOOVE To Win Them So Much.
How Much to Pay Yourself
Heat-Seeking Missile: WePay’s Journey to Product-Market Fit — Interview with Rich Aberman, Co-Founder of Wepay
The R&D technique for startups: Rip off & Duplicate
Why Some Startups Win.
Chapter #1: First Steps To Validate Your Business Idea
Product Users, Not Ideas, Will Determine Your Startup’s Fate
Drop Your Free Tier
Your Advisors Are Probably Wrong
Growth Isn't Always Good
How to Shut Down Gracefully
How Does My Startup Get Acquired?
Can Entrepreneurship Be Taught?
How to Pick the Wrong Co-Founder
Staying Small While Going Big
Investors are NOT on Our Side of the Table
Who am I Really Competing Against?
Why Can't Founders Replace Themselves?
Actually, We Have Plenty of Time
Quitting vs Letting Go
How Startups Actually Get Bought
What if I'm Building the Wrong Product?
Are Founders Driven by Fear or Greed?
Why I'm Either Working or Feeling Guilty
Startup Financial Assumptions
Why Every Kid Should be a Startup Founder
We Only Have to be Right Once
If a Startup Sinks, Founders Go Down With it
Founder Success: We Need a Strict Definition of Personal Success
Is Quiet Quitting a Problem at Startup Companies?
Founder Exits are Hard Work and Good Fortune, Not "Good Luck"
Finalizing Startup Projections
All Founders are Beloved In Good Times
Our Startup Culture of Entitlement
The Bullshit Case for Raising Capital
How do We Manage Our Founder Flaws?
What If my plan for retirement is "never retire"?
Startup Failure is just One Chapter in Founder Life
6 Similarities between Startup Founders and Pro Athletes
All Founders Make Bad Decisions — and That's OK
Startup Board Negotiations: How do I tell the board I need a new deal?
Founder Sacrifice — At What Point Have I Gone Too Far?
Youth Entrepreneurship: Can Middle Schoolers be Founders?
Living the Founder Legend Isn't so Fun
Why Do VC Funded Startups Love "Fake Growth?"
How Should I Share My Wealth with Family?
How Many Deaths Can a Startup Survive?
This is Probably Your Last Success
Why Do We Still Have Full-Time Employees?

Serverless: The Next Big Leap in Cloud Tech

Ajo Abraham

Serverless: The Next Big Leap in Cloud Tech

Virtual machines powered the original revolution in the cloud. However, the serverless revolution will be even bigger.

Remember when it used to take weeks to deploy a new application? You had to requisition new hardware, wait for its arrival, install an OS, setup a Rack, and plug it into your data center. In most cases this meant waiting for your IT team and getting approval from several layers of management. You could put in a request for hardware, go on an extended vacation, and come back to find nothing was done.

Much of this tedium was done away with Virtual Machine technology. Now, with a single click you can provision and launch a “machine” that was preconfigured with all the necessary software and settings. New applications could be deployed in less than an hour. With deployment automation, today you can even have an entire stack (multiple applications, databases, and network configurations) setup and deployed in minutes!

The End of Cloud Computing as We Know It

I have long believed that cloud computing would come to a cyclical end as Peter Levine of Andreesen Horowitz argued in his End of Cloud Computing presentation. However, I now believe that future will be forestalled indefinitely by serverless computing.

In his presentation, Peter rightly argues that edge computing requirements of Autonomous Vehicles, Robots, and other IoT devices will push cloud tech down to the edge. For these devices, the network latency associated with a cloud request could be detrimental. They are essentially “mobile data centers.” Initially, this level of compute power would be expensive, but with mass production the unit cost will be driven down. In all likelihood, these edge computing devices will outnumber human beings on several orders of magnitude.

The picture Peter paints goes awry by assuming cloud companies won’t adopt these very machines and that most edge devices will require sub-millisecond response times. Some class of computing will evolve as Peter predicts, but I believe the cloud is about to take its biggest leap with serverless tech. In this future, compute power will most closely resemble electricity or a commodity exchange.

What’s in a Server

A Server is any application that listens for requests over the network and performs some action in response to the request. For example, a Database Server listens for requests concerning the manipulation and querying of data. Such a database at a high level might have the following set of functions:

  1. Authenticate and Connect
  2. List All Tables
  3. Insert Data
  4. Update Data
  5. Query Data

In a low concurrency or small data scenario, you will have at least one such server and a failover server running all the time. While in a high concurrency or big data scenario, you might have 100’s of servers running all the time. These servers must be running all the time to ensure fast responses. As traffic spikes additional machines are added to the pool to handle the increased load.

I use machine and server interchangeably here to represent a single virtual machine instance where the database server is installed and running.

This is where things start to get expensive in the cloud. In almost every environment, you will find excess capacity.

Adding a new machine to the pool could take between 5 mins and 30 mins or even longer in some cases. To counteract this delay, you will over-provision the required capacity. Even more frustratingly, peak utilization across all machines may only last a fraction of the hour. For example, a sudden surge in “Update Data” requests cause activity on all your provisioned machines, but the spike only lasts 5 minutes. You still have to pay for the entire hour!

The Bigger Leap

1-x4OXFb7ZJl7ia7iIWyyUFA

In a serverless application, each function is unbundled and served independently. You can think of each function as a micro-server.

Like a deconstructed Samosa, each component is directly accessible. This means each function can scale independently only consuming the resources necessary for its operation. Resources allocated by a traditional Server, on the other hand, will be dictated by its hungriest function. For example, your traditional server runs a cleanup function every 2 hours that requires 128GB of memory and runs for 10 minutes. This means you have to allocate a machine with at least 128GB of memory leading to 12 hours of excess capacity per day.

The most compelling promise of the serverless paradigm is its potential to allocate compute resources more precisely.

You see, cloud vendors like Amazon, Google, and MicroSoft are creating serverless platforms where scaling and running your functions are fully managed. You no longer have a monolithic server idling and costing you money. Instead, resources are allocated in real-time as requests for your functions are made. In this paradigm, our cleanup function will only allocate resources every 2 hours with zero excess capacity. We get to pay the true cost of running this function!

What all of this means is that computing is about to get a whole lot cheaper. Like electricity, you only pay for what your applications actually consume.

Lodr

We recently converted a custom data ingestion application for a client of ours from a server based one to a serverless backend. We saw a 5x improvement in performance and a 100x drop in price! So impressed by this finding, we decided to pivot our startup and launch Lodr.io, a serverless data loader for Amazon Redshift. Besides the beautiful UI and the many wonderful features, what customers will find most compelling would be the price. (Stay tuned!)

The Future

Any new paradigm or piece of technology will have growing pains before its full potential is realized. One of the biggest for us so far was the hard limits on execution duration imposed by Amazon’s serverless platform called Lambda. We will elaborate on this issue and more in other posts, but let’s take a moment to prognosticate.

With this level of precise allocation of a resource, compute in this case, there will come a time when an exchange will be necessary. Your functions will be deployed on every cloud platform and the exchange will direct traffic to those functions based on price in real-time. The price, of course, will be dictated by supply and demand. The compute grid will arrive before the smart electric grid and the cyclical end of cloud computing will be put off by several decades.

Let’s see how this prediction holds up.


This article was also shared on lodr.io.

Find this article helpful?

This is just a small sample! Register to unlock our in-depth courses, hundreds of video courses, and a library of playbooks and articles to grow your startup fast. Let us Let us show you!


OR


Submission confirms agreement to our Terms of Service and Privacy Policy.

Already a member? Login

No comments yet.

Start a Membership to join the discussion.

Already a member? Login

Create Free Account