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Observability Lessons Learned From the AWS East-1 Outage

Observability Lessons Learned From the AWS East-1 Outage

Achieve Reliable Observability: Bolster Cloud-Native Observability

Modified and updated from an  originally published article in DevOps.com on March 30, 2021

The recent AWS East-1 outage provides a catalyst for customers to rapidly address their AIOps and Observability capabilities, especially the monitoring/observability portion. In particular, you should be aware of the below, and be prepared for it. According to AWS, "We are seeing an impact on multiple AWS APIs in the US-EAST-1 Region. This issue is also affecting some of our monitoring and incident response tooling, which is delaying our ability to provide updates. We have identified the root cause and are actively working towards recovery."

If you haven't seen it already, AWS has posted a detailed analysis of what happened here - Summary of the AWS Service Event in the Northern Virginia (US-EAST-1) Region

In recent conversations with CXO’s, there appears to be great confusion on how to properly operationalize cloud native production environments.  Here is how a typical conversation goes.

CXO: “Andy, we are thinking about getting [vendor] to use for our observability solution, what vendors do you think we should shortlist?”

AT: “Well, I don’t want to endorse any specific vendor, as they are all good at what they do. But let’s talk about what you want to do, and what they can do for you, so you can figure out whether or not they are the right fit for you.” The conversation continued for a while, but the last piece is worthy of being called out specifically.

CXO: “So, we will be running our production microservices in AWS in the ____ region. And we are planning to use this particular observability provider to monitor our Kubernetes clusters.”

AT: “Couple of items to discuss. First, you realize that this particular provider you are speaking of also runs in the same region of the same cloud provider as yours, right?”

CXO: “We didn’t know that. Is that going to be a problem?”

AT: “Definitely.   you may get into a ‘circular dependency’ situation.”

CXO: “What is that?”

AT: “Well, from my enterprise architect perspective, we often recommend a separation of duties as a best practice. For example, having your developer testing the code is a bad idea, having your developer figuring out how to deploy is a bad idea. In much the same way as when your production services run in the same region as your monitoring software – how would you know about a production outage if the cloud region takes a hit, and your observability solution goes down at the same time your production services do?”

CXO: “Should we dump them and go get this other solution instead?”

AT: “No, I am not saying that. Figure out what you are trying to achieve and have a plan for it. Selection of an observability tool should fit your overall strategy.”

Always Avoid Circular Dependencies

Enterprise architects often recommend a best practice of avoiding circular dependencies. For instance, this includes not having two services depend on each other, or not to collocate monitoring, governance and compliance systems as part of the production systems themselves. If one were to monitor one’s production system, one would do it from a separate and isolated sub-system (server, data center rack, sub-net, etc.) to make sure that if your production system goes down, the monitoring system doesn’t go down, too.

The same goes for public cloud regions – although it’s unlikely, individual regions and services do experience outages. If one’s production infrastructure is running on the same services in the same region as one’s SaaS monitoring provider, not only won’t an enterprise be aware that their production systems are down, but the organization also won’t have the data to analyze what went wrong. The whole idea behind having a good observability system is to quickly know when things went bad, what went wrong, where the problem is and why it happened so one can quickly fix it. For more details check out this blog post

Apply These Five Best Practices Before The Next Cloud Outage

When/if one receives the dreaded 2 a.m. call, what will the organization consider for their plan of action? Just think it through thoroughly before it happens and have a playbook ready, so one won’t have to panic in a crisis.  Hera are five best practices based from hundreds of client interactions:

  1. Place your observability solution outside your production workloads or cloud. Consider an observability solution that runs in a different region than your production workloads. Better yet, consider something that runs on a different cloud provider altogether. Although it is exceptionally rare, there have been instances of cloud service outages that cross regions. The chances of both cloud providers going down at the same time would be slim. For example, if the cloud region goes down (a region-wide outage in the cloud is quite possible, and seems to be more frequent of late), then your observability systems will also be down. You wouldn’t even know your production servers are down to switch to your backup systems unless you have a “hot” production backup. Not only will your customers find out about your outage before you do, but you won’t even be able to initiate your playbook, as you are not even aware that your production servers are down.
  2. Keep observability solutions physically near production systems to minimize latency. Consider having your observability solution in a different region/cloud provider/location, yet still close enough to your production services so latency is very low. Most cloud providers operate in close proximity, so it is easy to find one.
  3. Deploy on-premises and in the cloud options.  For example, there are a couple of observability solutions that allow you to deploy it in any cloud and observe your production systems from anywhere – both in the cloud and on-premises.
  4. Build redundancy.  You can also consider sending the monitoring data from your instrumentation to two observability solution locations, but that will cost you slightly more. Or, ask what the vendor’s business continuity/disaster recovery plans are. While some think the costs might be much higher, I disagree, for a couple of reasons. First, because monitoring is mainly time-series metric data, so the volume and the cost to transport is not as high as logs or traces. Second, unless your observability provider is VPC peered, the chances are your data will be routed through the internet even though they are hosted in the same cloud provider. Hence, there will not be much more additional cost. Having observability data, all the time, about your production system is very critical during outages.
  5. Monitor one’s full-stack observability system. While it is preferable to have the monitoring instance in every region where your production services run, it may not be feasible either because of cost or manageability. On such occasions, monitor the monitoring system. You could do synthetic monitoring by checking the monitoring API endpoints (or do random data inputs and check to ensure it worked) to make sure that your monitoring system is properly watching your production system. Better yet, find a monitoring vendor that will do this on your behalf.

 

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Market Move – Ceridian acquires ADAM HCM, becoming a Caribbean and Latin America Payroll Champion

Market Move – Ceridian acquires ADAM HCM, becoming a Caribbean and Latin America Payroll Champion

It has been quiet on the global payroll front in general – the biggest news of the year has been incremental addition of countries by practically all major global HCM vendors (see here for the Market Overview). 

The faster path – basically not playing the country-by-country monopoly game – is an acquisition - and that is what Ceridian just has done, with the acquisition of ADAM HCM. Let’s dissect the press release in my custom style, it can be found here. 

Toronto, ON and Minneapolis, MN, December 6, 2021

Ceridian (NYSE: CDAY; TSX: CDAY), a global leader in human capital management (HCM) technology, today announced it has acquired ADAM HCM, a leading payroll and HCM company serving customers in 33 countries across Central America, South America, and the Caribbean. This acquisition positions Ceridian as a leading HCM provider in Latin America and will create value for existing and prospective customers in key markets, including Mexico and Brazil.

MyPOV - ADAM HCM has been a specialist for Latin America, pretty much since its inception, pitching its capabilities to typically North American headquartered companies (e.g., Bayer, Cargill, GM, Intel etc.)  that have been disappointed by their large HCM vendor support for both Latin American and Caribbean countries. More recently ADAM HCM has focused on larger Latin America champions, with a focus on Brazil and Mexico headquartered (e.g., Vale) companies. 

Trusted by leading global brands, ADAM HCM has a strong and tenured leadership team and extensive regional knowledge and experience. Through this acquisition, ADAM HCM customers will be able to access Ceridian’s award-winning platform for global HCM, allowing them to scale and grow globally across new geographies.

MyPOV – This is a neutral statement on the intentions of Ceridian. Certainly, ADAM HCM customers will get access to Ceridian payroll supported countries but that is only a small portion of the overall potential for this acquisition. Understandably, Ceridian is trying to not open its cards here to much – but the medium and longer term is clear – leverage the ADAM HCM payroll expertise and build out Ceridian payroll... the interesting aspect to watch out for – will Ceridian first ‘just’ integrated the ADAM HCM payrolls or start with a rebuilt of them in the native Ceridian technology stack… future will tell. 

“This acquisition will accelerate Ceridian’s global growth strategy by extending the Dayforce platform into Latin America, a highly appealing region for our multinational customers,” said David Ossip, Chair and CEO, Ceridian. “Together with ADAM HCM, we’ll enhance our capacity to meet rising customer demand in Latin American countries, while delivering on our brand promise to make work life better for people everywhere.”

MyPOV – Ossip’s statement shows the real intention unequivocally – bring Ceridian to Latin America. ADAM HCM supports 30 countries across Latin America and the Caribbean. Once Ceridian has support for these countries in Dayforce, which will of course not happen overnight, but would make Ceridian the #2 amongst HCM vendors when it comes to native, on platform payroll support. 

Today’s announcement will accelerate Ceridian’s commitment to deliver Dayforce Payroll in Mexico. Dayforce Payroll, Ceridian’s always-on, global payroll platform, improves accuracy by auditing payroll data in real-time while managing global compliance complexities – all within a single solution.

MyPOV – Support for Mexico payroll was announced by Ceridian earlier, this acquisition will certainly help the effort, and more importantly rationalize the investment sooner, as a larger customer base can be potentially sold to. 

“We are thrilled to become part of Ceridian’s global team and broaden the reach of Dayforce into Latin America and the Caribbean,” said Brian Beneke, CEO, ADAM HCM. “In today’s borderless and fluid world of work, our customers will benefit from a single Dayforce experience that delivers innovation and experiences to help organizations and employees reach their full potential.”

MyPOV – They usual acquired CEO positive statement, glad Beneke mentions the Caribbean – which is an underserved, under automated region when it comes to payroll support. 

Overall MyPOV

Ceridian continues its strategic acquisition spree of regional payroll players, that offer multiple country support already. Ceridian has shown that for the APAC region with the 2020 acquisition of Excelity and this February with Ascender. It even has a luxury and consolidation challenge there, as payroll offerings overlap. Now Ceridian is tackling Latin America and Caribbean. What’s next? Europe and Africa remain… as well as the Middle East. We won’t be surprised if Ceridian acquires there in 2022…

But it is one thing to acquire payroll providers, it is another one to get the know how into the go to platform (Dayforce) and another one to consolidate these payrolls and replace them with the Dayforce offering. Ceridian has shown in North America that it can do upgrades on a large scale at metronomic precision, as it upgraded the old Ceridian platform customers to Dayforce. And let’s not forget, Dayforce is a nice upsell for most of these customers who only HR Core and Payroll with their vendors, maybe some light Talent Management, but a full Talent Management suite, and the Ceridian ‘crown jewel’ on the Workforce Management side are massive upsell opportunities. 

For not it is congrats to Ceridian, you first need to have the inhouse know how to build a payroll, and an acquisition is a good way to not only get the know-how, but also get real customer to convert to the new product to. Let’s see which countries will come out first wit the help of ADAM HCM. 

 

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ConstellationTV Episode 23

ConstellationTV Episode 23

On ConstellationTV <iframe src="https://player.vimeo.com/video/654624009?h=2d6e3cc2d6&amp;badge=0&amp;autopause=0&amp;player_id=0&amp;app_id=58479" width="640" height="360" frameborder="0" allow="autoplay; fullscreen; picture-in-picture" allowfullscreen title="CRTV Episode 23"></iframe>
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An up-close and personal view of Fresh conference Refresh 2021

An up-close and personal view of Fresh conference Refresh 2021

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I was fortunate enough to be invited to attend and speak at the Refresh 2021 conference in Las Vegas earlier this month. For those who don't know Freshworks, they are a recently public company (Symbol: FRSH) that provides SaaS solutions in the Sales, Marketing, CRM, HR, and IT helpdesk/service areas 

My first thought, for a change, Vegas has implemented a mask mandate policy in casinos (gasp!). Every conference venue now conducts vaccination validation and demands a negative Covid test onsite. While the town is back in demand and bustling with crowds, it is good to see these precautions as the covid doesn't seem to be going away any time soon.

At the conference itself, a few things stood out to me. Freshworks touted their ease of use, the total cost of ownership (TCO), return on investment (ROI), and scaling IT with business as their main differentiators. I am actually in the middle of reviewing the Incident Management, ITSM, ITOM vendors currently, and will let you know how they stack up against the competition. But, from what I saw at the conference, it is compelling enough to include them in your evaluation process. 

Delivering on Delight

As with most technical conferences, this hybrid conference was well attended virtually with about 20k people joining globally, and with about 200+ in person. The theme of this conference was "delight." The entire line-up, keynotes, panels, and breakout sessions were all centered around how do you delight your customer. 

The day started with Stanford Neuroscientist David Eagleman (a Pulitzer nominee) talking about the science of delight. He pointed out that the human brain has 86 billion neurons with 100s of trillions of connections between them. While the delight happens at the neuron level, you can’t control it, but you can feel it, live it, enjoy it! According to him, while it is the conscious brain that makes the decisions, the unconscious brain decides based on the delightfulness of something that is underlying whether it is selecting a partner, a job, a car or a house, etc. A lot of times, the conscious mind messes up by overriding proper decisions made by the unconscious mind according to him. In other words, overthinking at times will only mess things up. You want things to be automated for decision making, fixing, etc. as most times the decisions made and executed by unconscious or automated systems are better than what collaborative thinking can result in. 

Everything that is happening in cognition is happening incognito. Decision making such as choosing Pepsi vs Coke, or other decisions of branding decisions are all done incognito. A compelling example is when a charger is priced at $19 vs $29 (a $10 diff) we would be willing to walk a mile to save that $10, but whereas when you buy an iPhone that is $567, we are not willing to walk a few steps to save that $10. The way we make decisions is not rational, but it is based on context – valuing things when they are in different valuation metrics is hard to choose according to him. 

More than the price itself, the customer experience, and the context surrounding that sets the value of pricing are more important. The decisions are made based on delighting the customer, it is based on emotions. Total value is much more than just the price or a total cost of ownership, it is based on connected customer experience and the delight that goes with it, according to David. 

Girish Carries Forward Humility in All He Does

After David spoke, Founder and CEO Girish took to the stage. I have always admired Girish as he came from humble beginnings. I had a chance to chat with him a little bit when he had a moment. 

The thing Girish pointed out was that customer wants "easy." He went on to talk about his experience in dealing with a vendor about replacing a brand-new TV broken in transit and how long it took to replace it even though it was under warranty and the customer experience that went with it. Painful! 

He boldly claimed that the first generation of SaaS providers failed. He claimed they focused on re-platforming and reducing technology debt but failed on delivering customer experience. I agree with this thought, though disagree that all of them have failed. He started FreshWorks with a "fresh" view to provide those customer experience and usability in mind. He said he wanted to build something that will be easy about using the software right away instead of waiting for 18 months – the art of delight. You can't argue that.

He said Freshworks was built on five core principles – Modern, Unified, Salable, Intuitive, and Cost-effective – as table stakes and that is MUSIC to customer's ears. I liked the wordplay there! 

At the end of the day, it is not just customer satisfaction but the customer experience that goes with it that matters more. In other words, it is not just the end result that matters, but the path to reach it – products and services should delight the customers and not leave them with a painful experience. A real boost in loyalty comes from reducing overall effort or reducing friction in doing business with you. 

Freshworks also showed a persona-based live demo on-stage that was compelling. A combination of bots, automation, the collaboration between customer service, IT, warranty, finance, returns to solve an issue in a short time frame was powerful. They chose to demo a fictitious shoe company with a manufacturing defect and how teams can collaboratively handle the issue and take the customer experience to the next level.

The burden on IT is higher than ever to run the business with the remote workforce. Especially with customers used to the delightful experience of consumerization experience of B2C companies, providing an old, clunky, outdated user experience will hurt more than help your business, particularly the online engagement with customers at the channel of their choice. 

Girish also said, "Marketing is not about spamming millions of customers with a generic email anymore. It is about sending each customer a highly personalized, individualized offer based on their needs, desire, and timing, and the digital channel of their choice" which I completely agree with.

Amy Purdy Delivers Stories of Personal Triumph

It would be remiss of me if I failed to mention the most compelling closing keynote that I have ever seen. Amy Purdy, a 3x paralympic medalist, talks about how she went from an Olympic-level snowboarder to the brink of death and came back alive again. She talked about turning any challenge into an opportunity by defying all odds. If you are passionate, you can do it! I won't do justice by narrating her story. You can watch it in its entirety here. https://web.cvent.com/hub/events/52b42838-fdea-4731-b8fd-51c212b052b5/sessions/88c63436-e43c-4c1c-adef-35f7efc2b240

Freshworks Platform Delivers on New ITSM/ISOM Capabilities

And finally, my favorite segment – ITSM, ITOM capabilities. They demonstrated the platform on how a business can move instead of being reactive to incidents to being proactive. While they are getting into the crowded AIOps market (I track about 50+ vendors in this space), the correlation engine from multiple monitoring solutions, AI sensing a shopping cart problem and create an auto incident instead of customer/support initiated ticket, ML-powered ticket routing and assignment, figuring out the actual underlying issue, the urgency of it, escalating it to the right person to solve the issue, and thus enabling a faster time to resolution resulting in enhanced customer experience are all making sense in connecting business with IT.  

The persona-based demo involved Freddy the AI sensing the customer Phoebe having difficulty in completing the order, and figuring out the underlying issue, creating an auto ticket, routing it, NOC agent Pollack sensing that issue, and collaborating with Ash the on-call full-stack engineer to roll back the updates, and Leslie the CSR finally updating the customer to buy it again. While of course it was staged, it was pretty compelling to see the business and technology come together to support each other. I would love to see that with my vendors, but it feels like the below 😊 

[Pic Courtesy: Mark Parisi] 

 

And I can't close this without mentioning my talk at the conference. I went head-on with the legendary Ray Wang discussing ITSM vs DevOps. I have battle scars to prove it! I think it was a great discussion which can be viewed at the following link (registration required). 

https://web.cvent.com/hub/events/52b42838-fdea-4731-b8fd-51c212b052b5/sessions/9c8336c4-f912-4bab-aeb6-62d55723fbea

 THE BOTTOM LINE: WHAT DOES THIS ALL MEAN?

  1. Freshworks has a set of new offerings that goes end to end – whether it is combining marketing to sales to delight the customer, or tracing eCommerce problems from point of sale to the affected underlying services directly to help with troubleshooting to delight customers and employees – the offerings go from business side to IT side to make the connection easy.
  2. Incident Management is an important, yet forgotten art, in the cloud era. Even smaller incidents can affect customer experience and brand value. A clunky, intermittent, hard to use system can drive customers quickly away regardless of the pricing and availability of goods.
  3. The customer delight came through in my discussion with some of their top customers at the conference. While cost is a factor in selecting Freshworks, they also score high on usability, customer experience, and faster innovation – according to them.
  4. Scaling IT with business is more important than ever. If your IT can't sustain the hyper-growth of your business, as and when needed, the game is over.
  5. Connected customer/employee experience is more important than ever.

I am currently reviewing 11 vendors for my market overview research on Incident Management and FreshWorks is one of them. More details on my research can be found at the following links: 

For a Constellation ShortList™ on incident management, see: Andy Thurai, "Constellation ShortList Incident Management," August 18, 2021.  

For more on digital incident management, see: Andy Thurai, "Crisis/Incident Management in the Digital Era," Constellation Research, September 22, 2021.  

Andy Thurai, "2022 Trends in Site Reliability Engineering," Constellation Research, October 2021.

Andy Thurai, "2022 Trends in Incident Management," Constellation Research, October 2021.

For a Constellation ShortList™ on AIOps, see: Andy Thurai, "Constellation ShortList AIOps," August 18, 2021.

 

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Trends: Quantum Computing Market Cap Tops $174 Billion

Trends: Quantum Computing Market Cap Tops $174 Billion

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Over $8.5 Billion Invested In 241 Quantum Startups

A recent analysis by Constellation Research found 241 companies in the Quantum Computing space in seven categories driving $8.512 billion in investment to date.  A review of funding announcements, deals in pipe, and conversations with investors, demonstrated a tremendous appetite to fund all categories of the quantum ecosystem.  The funding to date does not include investments from established digital giants such as Amazon, Google, IBM, Intel, Microsoft, and Nviidia.

Across the seven categories, security represented the highest estimated market cap at $124.3 B followed by hardware companies at $23.2B.  Full stack vendors who deliver the complete quantum capabilities will drive $14.6 B in estimated market cap.  Software came in at $6.1 billion and communications registered a $5.8 B estimated market cap (see Figure 1).

Figure 1. Investors Flock To The Quantum Landscape

2021 Quantum Computing Market Valuations Breakdown

 

Source; Constellation Research, Inc.

The Bottom Line: Expect A Period Of Innovation and Consolidation Ahead

The Quantum revolution has begun.  Early investors have seen the potential and the market is entering a period of consolidation to acquire talent, intellectual property, and product offering roadmaps.  With over 241 startups in this space, Constellation expects at least a dozen full stack winners to emerge along with five to seven specialists in each category and emerging use case. Security will continue to receive the most funding and attention.  New players will continue to attract funding as the quantum field advances.  The early days of quantum are here and the winners will emerge in the next five years.

Your POV

What quantum use cases drive your interest? Where do you see the quantum players win?

Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your strategy efforts. Here’s how we can assist:

  • Developing your quantum and digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

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Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.

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Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network

 

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News Analysis: Apple Business Essentials Simplifies SMB Ownership Experience

News Analysis: Apple Business Essentials Simplifies SMB Ownership Experience

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Apple Business Essentials 

Apple Launches New Business Essentials Service

Apple Business Essentials

Source: Apple

On Wednesday, November 10th, Apple introduced a new business service for companies up to 500 employees. Apple Business Essentials enables organizations to easily add users, onboard users, back up information, secure devices, receive 24/7 support, repair devices onsite, and manage the device lifecycle for deployment.

A new feature known as Collections enables easy configuration of settings and apps for the Individual user, group, and/or device level. Further, IT personnel can automatically push Wifi passwords, VPN settings, and make downloaded apps available to employees who sign in to a personally owned or corporate devices.  As a result, this new service makes it possible for organizations to enforce security policies and critical security settings such full-disk encryption, privacy of personal and work data, and the ability to lock out lost or stolen devices. In conversations with technology executives with Apple shops, they are looking forward to the 4-hour or less onsite repair capabilities starting with the iPhone.

Apple is offering three Business Essentials plans that vary by number of devices and amount of storage (see Figure 1).  Organizations can also add optional AppleCare+ to their existing plans.

Figure 1. Three Levels Of Apple Business Essentials Pricing Reflect Usage Based and User Based Pricing

Apple Business Essentials Pricing

The Bottom Line: Apple Just Made Managing And Securing Devices Much Easier For SMBs

Technology executives in the mid-market face constrained staffing and seek ease of use in adding and on-boarding users and devices; while enabling flexible technology choices amidst growing security threats.  The Apple Business Essentials service offering makes it easy to allow SMBs to scale. 

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