[Music]
Good afternoon. At PayPal, we've been able to
move 15% of our infrastructure fleet
into the Google Cloud, and we are just
getting started. Today I want to walk you
through the journey that weíve been on, but
before I do that, I want to tell you a
bit about PayPal. Most of you know us, but
we are a group of companies: PayPal core,
Venmo, Braintree, Zoom, and most recently, iZettle.
Together, what we are attempting
to do is to make sure that we can
connect the world with payments. We are a
two-sided network. On the one hand, we
have more than 200 million consumers, and
on the other hand, we have about 18
million merchants, and for a total of 237
million active users. Last year, we did
about four hundred and fifty-six billion
dollars in payments, and our mission on
the one hand is to power digital and
mobile commerce and on the other hand to
democratize financial services around
the world. Let me walk you quickly
through the technology stack we have at
the company. At the bottom-most is our
infrastructure layerówhat we do
internally in terms of building our data
centers, our network, our hardware
engineering teams, our storage databases
and ops teams. On top of that, we have a
layer of technology services that we use
internally within the company to help
subsidize software development across
PayPal, but at the same time create some
level of homogeneity and standardization
as we build applications and services. Up
from there is the payments operating
system. This includes identity, payments,
risk, compliance, and credit. And finally,
the heart of PayPal, which is the
experiences, and these experiences are the
ones for merchants on the one hand and
for consumers on the other side. The most
important thing we do at PayPal is, of
course, security. This is the number-one
thing. We are in the business of trust,
and security is the number-one thing
that we need to build for. To give you an
idea of the scale, as I mentioned, we did
456 billion dollars in payments last
year. We operate in about 200 different
markets, about a hundred currencies, and
last year the peak day was about twenty-
nine million payments on a single day.
This translates to about fourteen
thousand four hundred and fifty dollars
per second on average. Just imagine the
peaks. To power all of this, we have 2,700
different application services which are
built and maintained by about 4,500
engineers across the world. Last year, in
2017, we did 17,000 software releases.
Our internal infrastructure is about two
hundred thousand servers, about 27
megawatts, and we have 238 petabytes of
data all growing at about 30 percent
year-over-year. The cloud opportunity for
us to begin with was all about the
developer and test environments. In 2015,
we made the decision that we want to
move to the public cloud and start to
leverage what is now a 10-year-old
industry. In doing so, we wanted to first
learn from pilots, and we picked the
developer and test environment as our
first pilot. The reasons that we moved to
the public cloud for are as follows: Number
one is scale. As I mentioned to you, the
number of transactions we take across
the number of countries we have and the
number of customers that we serve is
very large, and the number of payments at
PayPal is growing at about 25 percent
every single year. Second, we wanted to
make sure that we were accessible and
present for our customers in their
locale, in their geography and region. For
this, we couldn't go and build data
centers all over the place. We needed a
partner that could do this
with us.
Second was flexibility. We have, we are a
payments business, and we are available
everywhere around the world. And with
mobile commerce, there is huge
variations in the amount of payments
that you get at any point in time of the
day or any day of the week or any week
of the year. To work with this, we needed
a flexible infrastructure that could
scale up and down to our demands and our
needs. Third was the fact that we had to
meet regulatory obligations. We are in
200 different markets. Each one of these
markets is a jurisdiction. These
jurisdictions have laws and money, and we
need to be compliant with all of those.
In some cases, we need to process and
store data locally across various
countries in the world. And finally, in
terms of efficiencyóone, to understand
what kind of a fleet we have; number two,
to continuously optimize how much we are
using; and number three, to ensure that we
burst off when we need something and we
don't have hardware on premises that is
not going to get used for a long time. To
give you an example, our peak days for
payments are in December.
Once we capacitize for those payments, we
don't need that capacity till later in
the first quarter of the year. With a
public cloud, we have the ability to flex
up and down. And finally, the rate of
innovationópublic cloud gave us the
ability for us to get started on the
modernization journey and to ensure that
we're using the latest and greatest
feature set that is available to make
sure that our services are of the
highest reliability, the highest security,
and are providing the latencies that
our customers need around the world. The
reasonóthis is what I started with thoughóit
was important that as we went into the
transformation, we had to convince all
the people internally within the company
on the reason why we are doing this. This
is the main reason why we moved to the
public cloud. So our journey,
like I mentioned, started in 2015 with
discovery, and through 2016 we picked four
cloud environments and ran a bunch of
pilots to actually compare them
side-by-side. At the end of that test, we
picked the Google Cloud to host our
applications in.
We then started our journey in the
beginning of 2017. January of 2017 is
when we started the project to take all
of the dev and test environment and move
them to the Google Cloud. Through
that journey in six months, we had an
amazing partner with Google, and we
learned iteratively through every sprint
we went through. And on June 28th of 2017,
we cut over dev and test over a weekend to
the Google Cloud. This was about 15% of
our infrastructure fleet. Now when we did
this cut over, it was not all rainbows
and unicorns. We had some challenges, and
I want to share that with you as well.
And those challenges: Number one, with
respect to security. As a
company that is focused on trust, our
biggest need was to make sure that we
were as secure as we were on-prem. In
doing so, one, we wanted to ensure through
tests that we had the risk mitigation
and the controls required in the Google
Cloud Platform and with the partnership
with Google we got comfortable with this
and started to move in that direction.
Second and most important thing was
culture. In any transformation, there are
three pillars: there is a change in
mindset, a change in the tool set, and the
change in skill set. Most people start
with the tool set. In this case, the
Google Cloud was a tool set, but if you
don't change how you work every day and
how you think of your application
services in its structure, those tools
will not help you in the long term. Third
was architecture. Lift and shift was not
going to work. We had to change our
applications to make sure that they were
ready for the public cloud, so we went
through a process of ensuring that as we
were making this migration, we were using
the best of what the public cloud had to
offer and not rely only on the paradigms
that we had built on in the past. We also
had a few challenges of the features.
Even though public cloud is a 10-year-
old industry, Google was still building
many of the features. But through the
partnership, we worked on various bridge
technologies to help with our journey
and that wait was well worth it. And
since then, Google has built those
features for us and we've incorporated
that into our system. So taking you back
to the journey, I mentioned how in the
mid of 2017 we moved the dev and test
environment into the public cloud and
with that 15%, and since then we've had a
ton of new learnings. We have now run
this environment for a whole year and in
doing so we have now qualified many
other use cases that we can start to
move to production. As we built the ...
beginning to build out to the
production zones,
we now have an intake process for the use
cases. We are allowing for the
development teams across the company to
bring in the use cases that they want to
migrate, qualifying that those use cases,
both from a security perspective, a
technical reliability perspective, and
also from an efficiency perspective. And
we intend in the next year to take a
reasonable amount of our web and
mid-tier and move that to the Google
Cloud as well. In doing all this, we've
had amazing learnings, and Google Cloud
has been a tremendous partner. We have
challenged each other, and I think we
have learned from each other in this
process. But we feel like the journey is
just getting started, and we will continue
to make progress towards putting more
workloads in the Google Cloud. Thank you.
[Applause]
[Music]