Delivery Hero and AWS: Cost Optimization in the Cloud
Aug 31, 2023
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Michael Krenz, Engineering Director at Delivery Hero, dives into cost optimization in the cloud through AWS services. He discusses innovative strategies like using spot instances to lower operational expenses and the shift from SQL to NoSQL databases. Krenz emphasizes the importance of cultural accountability among engineers in achieving a 10% cost reduction per order. The conversation also touches on the integration of machine learning within a customer data platform, showcasing how collaborative efforts can drive profitability and experimentation.
Delivery Hero effectively utilizes AWS spot instances and NoSQL solutions to significantly reduce cloud costs, achieving a 10% decrease per order.
The company fosters a cultural shift towards cost accountability among engineers, promoting cost efficiency as a priority alongside performance and reliability.
Deep dives
Delivery Hero's Cloud Strategy
Delivery Hero has established itself as a leader in the local delivery platform sector, serving over 2 billion customers in more than 70 countries since its founding in 2011. The company not only focuses on food delivery but is also pioneering quick commerce, which involves delivering groceries and household goods to customers within a short time frame, often under an hour. Their cloud strategy centers on a long-term partnership with AWS, which has been vital for scaling operations and fostering innovation. AWS provides a range of services that support Delivery Hero's ambitious goals, including architecture consultations and hands-on workshops.
Cost Optimization Initiatives
Delivery Hero has prioritized cost optimization as a key goal, especially as the company strives for profitability this year. The approach involves a mix of technical optimizations, such as increasing the use of spot instances and transitioning from complex SQL databases to cost-effective NoSQL solutions like DynamoDB. Additionally, a guide on cloud cost efficiency was created to share best practices across the organization, which consists of multiple companies. These initiatives have led to impressive results, including a 10% reduction in cloud costs per order.
Challenges and Cultural Shifts
One of the main challenges Delivery Hero faces in cost optimization is the complexity of accurately reporting cloud costs and their drivers. To meet this challenge, the company has invested in cultural changes that promote cost accountability among engineers, making cloud costs a priority alongside performance and reliability. Tools like dashboards and Slack notifications for cost anomalies have been implemented to keep teams informed at a granular level. By integrating cost-saving goals into quarterly objectives, the company further incentivizes teams to actively engage in cost optimization efforts.
In this livestream I am joined by Michael Krenz, Engineering Director at Delivery Hero, to discuss the company's strategic approach to leveraging AWS cloud services for cost optimization. The conversation touches on how Delivery Hero integrates AWS features, like "spot instances," to achieve operational savings, their collaboration with AWS in building a customer data platform (CDP) using machine learning, and the broader cultural shift in prioritizing cost efficiency alongside performance and growth.
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