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by "McKinsey Quarterly" <publishing@email.mckinsey.com> - 01:07 - 30 Oct 2024 -
Supply chains are still vulnerable. What can companies do?
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Continuing challenges. Between trade tensions, attacks on commercial shipping, and delays in automotive production, the supply chain disruptions keep on coming. The latest McKinsey Global Supply Chain Leader Survey suggests that problems such as these remain the norm, not the exception. According to McKinsey partners Knut Alicke and Tacy Foster, nine in ten respondents say they have encountered supply chain challenges in 2024. At the same time, overall investment in supply chain digitization is leveling off after rapid growth between 2020 and 2023.
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by "Scott Adams -MGCFREIGHT" <scott@mgcfreight.com> - 03:26 - 29 Oct 2024 -
1.8 Trillion Events Per Day with Kafka: How Agoda Handles it
1.8 Trillion Events Per Day with Kafka: How Agoda Handles it
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Disclaimer: The details in this post have been derived from the Agoda Engineering Blog. All credit for the technical details goes to the Agoda engineering team. The links to the original articles are present in the references section at the end of the post. We’ve attempted to analyze the details and provide our input about them. If you find any inaccuracies or omissions, please leave a comment, and we will do our best to fix them.
Agoda sends around 1.8 trillion events per day through Apache Kafka.
Since 2015, the Kafka usage at Agoda has grown tremendously with a 2x growth YOY on average.
Kafka supports multiple use cases at Agoda, which are as follows:
Analytical data management
Feeding data into the data lake
Near real-time monitoring and alerting solutions
Building asynchronous APIs
Data replication across data centers
Serving data to and from Machine Learning pipelines
As the scale and Kafka usage grew, multiple challenges forced Agoda’s engineering team to develop solutions.
In this post, we’ll examine some key challenges that Agoda faced and the solutions they implemented.
Simplifying how Developers Send Data to Kafka
One of the first changes Agoda made was around sending data to Kafka.
Agoda built a 2-step logging architecture:
A client library writes events to disk. It handles file rotations and manages the write file locations.
A separate daemon process (Forwarder) reads the events and forwards them to Kafka. It is responsible for reading the files, sending the events to Kafka, tracking file offsets, and managing the deletion of completed files.
See the diagram below:
The architecture separates operational concerns away from development teams, allowing the Kafka team to perform tasks like dynamic configuration, optimizations, and upgrades independently. The client library has a simplified API for producers, enforces serialization standards, and adds a layer of resiliency.
The tradeoff is increased latency for better resiliency and flexibility, with a 99-percentile latency of 10s for analytics workloads. For critical and time-sensitive use cases requiring sub-second latency, applications can bypass the 2-step logging architecture and write to Kafka directly.
Splitting Kafka Clusters Based On Use Cases
Agoda made a strategic decision early on to split their Kafka clusters based on use cases instead of having a single large Kafka cluster per data center.
This means that instead of having one massive Kafka cluster serving all kinds of workloads, they have multiple smaller Kafka clusters, each dedicated to a specific use case or set of use cases.
The main reasons for this approach are:
By having separate clusters for different use cases, any issues that arise in one cluster will be contained within that cluster and won’t affect the others.
Different use cases may have different requirements in terms of performance, reliability, and data retention.
For example, a cluster used for real-time data processing might be configured with lower data retention periods and higher network throughput to handle the high volume of data.
In addition to splitting Kafka clusters by use case, Agoda also provisions dedicated physical nodes for Zookeeper, separate from the Kafka broker nodes. Zookeeper is a critical component in a Kafka cluster, responsible for managing the cluster's metadata, coordinating broker leader elections, and maintaining configuration information.
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Monitoring and Auditing Kafka
From a monitoring point of view, Agoda uses JMXTrans to collect Kafka broker metrics.
JMXTrans is a tool that connects to JMX (Java Management Extensions) endpoints and collects metrics. These metrics are then sent to Graphite, a time-series database that stores numeric time-series data.
The collected metrics include things like broker throughput, partition counts, consumer lag, and various other Kafka-specific performance indicators.
The metrics stored in Graphite are visualized using Grafana, a popular open-source platform for monitoring and observability. Grafana allows the creation of customizable dashboards that display real-time and historical data from Graphite.
For auditing, Agoda implemented a custom Kafka auditing system. The primary goal of this auditing system is to ensure data completeness, reliability, accuracy, and timeliness across the entire Kafka pipeline.
Here’s how it works:
Audit counts are generated at various points throughout the pipeline.
A separate thread runs in the background on Agoda’s client libraries as part of the 2-step logging architecture we discussed earlier. This thread asynchronously aggregates message counts across time buckets to generate audits.
The generated audit data is stored in a separate Kafka cluster dedicated to audit information. This ensures the audit data doesn’t interfere with the main data pipelines.
The audit information ultimately ends up in two places:
Whitefalcon: Agoda’s internal near real-time analytics platform
Hadoop: For longer-term storage and analysis.
Authentication and ACLs
Initially, Agoda’s Kafka clusters were used primarily for application telemetry data, and authentication wasn’t deemed necessary.
As Kafka usage grew exponentially, concerns arose about the inability to identify and manage users who might be abusing or negatively impacting Kafka cluster performance. Agoda completed and released its Kafka Authentication and Authorization system in 2021.
The Authentication and Authorization system consists of the following components:
Core Kafka Authentication: It likely uses SASL (Simple Authentication and Security Layer) mechanisms supported by Kafka.
ACLs: Access Control Lists for fine-grained permission management.
Credential Generation: A custom component for creating and managing user credentials.
Credential Assignment: A system to associate credentials with specific users or teams.
Self-Service Portal: An interface allowing teams to request Kafka credentials and ACLs without direct intervention from the Kafka team.
Kafka Load Balancing
Agoda, as an online travel booking platform, aims to offer its customers the most competitive and current prices for accommodations and services from a wide range of external suppliers, including hotels, restaurants, and transportation providers.
To achieve this, Agoda's supply system is designed to efficiently process and incorporate a vast number of real-time price updates received from these suppliers. A single supplier can provide 1.5 million price updates and offer details in just one minute. Any delays or failures in reflecting these updates can lead to incorrect pricing and booking failures.
Agoda uses Kafka to handle these incoming price updates. Kafka partitions help them achieve parallelism by distributing the workload across mple partitions and consumers.
See the diagram below:
The Partitioner and Assignor Strategy
Apache Kafka's message distribution and consumption are heavily influenced by two key strategies: the partitioner and the assignor.
The partitioner strategy determines how incoming messages are allocated across partitions during production. Common approaches include round-robin distribution and sticky partitioning.
On the consumer side, the assignor strategy dictates how partitions are distributed among consumers within a consumer group. Examples include range assignments and round-robin assignments.
See the diagram below for reference:
Traditionally, these strategies were designed with the assumption that all consumers have similar processing capabilities and that all messages require roughly the same amount of processing time.
However, Agoda's real-world scenario deviated from these assumptions, leading to significant load-balancing challenges in their Kafka implementation.
There were two primary challenges:
Hardware Heterogeneity: Agoda's use of a private cloud infrastructure with Kubernetes resulted in pods being deployed across servers with varying hardware specifications. Benchmark tests revealed substantial performance disparities between different hardware generations.
Inconsistent Message Workloads: The processing requirements for different messages varied considerably. Some messages necessitated additional steps such as third-party API calls or database queries, leading to unpredictable processing times and latency fluctuations.
These challenges ultimately resulted in an over-provisioning problem, where resources were inefficiently allocated to compensate for the load imbalances caused by hardware differences and varying message processing demands.
Overprovisioning Problem at Agoda
The over-provisioning involves allocating more resources than necessary to handle the expected peak workload efficiently.
To illustrate this, let's consider a scenario where Agoda's processor service employs Kafka consumers running on heterogeneous hardware:
They have two high-performance workers, each capable of processing 20 messages per second.
Additionally, they have one slower worker that can only handle 10 messages per second.
Theoretically, this setup should be able to process a total of 50 messages per second (20 + 20 + 10). However, when using a round-robin distribution strategy, each worker receives an equal share of the messages, regardless of their processing capabilities. If the incoming message rate consistently reaches 50 messages per second, the following issues arise:
The two faster workers can comfortably handle their allocated share of approximately 16.7 messages per second each.
The slower worker, on the other hand, struggles to keep up with its assigned 16.7 messages per second, resulting in a growing lag over time.
See the diagram below
To maintain acceptable latency and meet processing SLAs, Agoda would need to allocate additional resources to this setup.
In this example, they would have to scale out to five machines to effectively process 50 messages per second. This means that they are overprovisioning by two extra machines due to the inefficient distribution logic that fails to consider the varying processing capabilities of the hardware.
A similar scenario can occur when the processing workload for each message varies, even if the hardware is homogeneous.
In both cases, this leads to several negative consequences:
Higher hardware costs due to the need for additional resources.
Inefficient utilization of resources, with some consumers being underutilized while others are overburdened.
Increased maintenance overhead to manage the overprovisioned infrastructure.
The round-robin distribution strategy, while ensuring an equal distribution of messages across consumers, fails to account for the heterogeneity in hardware performance and message processing workload.
Agoda’s Dynamic Lag-Aware Solution
To solve this, Agoda adopted a dynamic, lag-aware approach to solving the Kafka load balancing challenges. They didn’t opt for static balancing solutions like weighted load balancing due to messages having non-uniform workloads.
They implemented two main strategies:
Lag-aware Producer
Lag-aware Consumer
Lag-Aware Producer
A lag-aware producer is a dynamic approach to load balancing in Apache Kafka that adjusts message partitioning based on the current lag information of the target topic.
It works as follows:
The producer maintains a cached copy of partition lag data to minimize the frequency of requests to Kafka brokers for this information.
The producer uses the lag data to intelligently distribute messages across partitions using a custom algorithm. The algorithm is designed to send fewer messages to partitions with high lag and more messages to partitions with low lag. They use algorithms like the same-queue length algorithm and outlier detection algorithm.
When the lags across partitions are balanced and stable, the lag-aware producer ensures an even distribution of messages.
Let's consider an example scenario in Agoda's supply system, where an internal producer publishes task messages to a processor.
The target topic has 6 partitions with the following lag distribution:
Partition 1: 110 messages
Partition 2: 150 messages
Partition 3: 80 messages
Partition 4: 400 messages
Partition 5: 120 messages
Partition 6: 380 messages
In this situation, the lag-aware producer would identify that partitions 4 and 6 have significantly higher lag compared to the other partitions. As a result, it would adapt its partitioning strategy to send fewer messages to partitions 4 and 6 while directing more messages to the partitions with lower lag (partitions 1, 2, 3, and 5).
By dynamically adjusting the message distribution based on the current lag state, the lag-aware producer helps to rebalance the workload across partitions, preventing further lag accumulation on the already overloaded partitions.
Lag-Aware Consumer
Lag-aware consumers are a solution employed when multiple consumer groups are subscribed to the same Kafka topic, making lag-aware producers less effective.
The process works as follows:
In a downstream service, such as Agoda's Processor, if a particular consumer instance detects that it has fallen significantly behind in processing messages (i.e., it has a high lag), it can voluntarily unsubscribe from the topic. This action triggers a rebalance operation.
During the rebalance, a custom partition Assigner, developed by Agoda, reassigns the partitions across all the remaining consumer instances. The redistribution takes into account each consumer's current lag and processing capacity, ensuring a more balanced workload.
To minimize the performance impact of rebalancing, Agoda leverages Kafka 2.4's incremental cooperative rebalance protocol. This protocol allows for more frequent partition reassignments without causing significant disruptions to the overall processing flow.
Let's illustrate this with an example.
Suppose Agoda's Processor service has three consumer instances (workers) that are consuming messages from six partitions of a topic:
Worker 1 is responsible for processing messages from Partitions 1 and 2
Worker 2 handles Partitions 3 and 4
Worker 3 processes messages from Partitions 5 and 6
If Worker 3 happens to be running on older, slower hardware compared to the other workers, it may struggle to keep up with the message influx in Partitions 5 and 6, resulting in higher lag. In this situation, Worker 3 can proactively unsubscribe from the topic, triggering a rebalance event.
During the rebalance, the custom Assigner evaluates the current lag and processing capacity of each worker and redistributes the partitions accordingly. For example, it may assign Partition 5 to Worker 1 and Partition 6 to Worker 2, effectively relieving Worker 3 of its workload until the lag is reduced to an acceptable level.
Conclusion
In conclusion, Agoda's journey with Apache Kafka has been one of continuous growth, learning, and adaptation.
By implementing strategies such as the 2-step logging architecture, splitting Kafka clusters based on use cases, developing robust monitoring and auditing systems, and Kafka load balancing Agoda has successfully managed the challenges that come with handling 1.8 trillion events per day.
As Agoda continues to evolve and grow, its Kafka setup will undoubtedly play a crucial role in supporting the company's ever-expanding needs. The various solutions also provide great learning for other software developers in the wider community when it comes to adapting Kafka to their organizational needs.
References:
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How can companies make the most of generative AI?
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Pilot purgatory. Despite the promise of gen AI, only a small percentage of companies are starting to deliver meaningfully on its potential, Rodney Zemmel, global leader of McKinsey Digital and coauthor of Rewired, shares in a recent episode of The McKinsey Podcast. Because gen AI is so easy to use, many organizations are succumbing to “death by a thousand pilots,” adds Zemmel, who joined fellow senior partners and coauthors Eric Lamarre and Kate Smaje to reflect on their book’s most important lessons for leaders.
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Capturing value. Organizations are beginning to capture value from gen AI, but it’s still early days. A 2024 McKinsey survey found that about 10% of companies have seen a positive financial impact from using gen AI this year. To deploy this technology effectively, Zemmel advises leaders to start with picking a domain (that is, a specific process, workflow, journey, or function) in which to implement gen AI, focusing on a problem that gen AI could help remedy, and setting an ambitious goal for changing that domain with a specific business target. Listen to the full episode for examples of the kinds of investments companies are making in digital and AI.
—Edited by Belinda Yu, editor, Atlanta
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Is your organization productive? A leader’s guide
Leading Off
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Welcome to the latest edition of Leading Off. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.
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An individual may feel “productive” after finishing a difficult task at work. But evaluating the productivity of entire organizations is much more complex. At its simplest level, productivity measures output relative to input. But the rise of factors such as automation, generative AI (gen AI), and remote and hybrid work makes the ratio of inputs to outputs harder to calculate. With productivity levels slowing among advanced economies, amid a climate of geopolitical disruptions and environmental concerns, leaders may be facing increased urgency to boost productivity within their own organizations. This week, we examine some strategies to make the operational improvements that, taken together, could help companies become more productive.
New technologies hold out the promise of improving productivity, but they may not be effective without a commitment to operational excellence, according to McKinsey senior partner Richard Sellschop and colleagues. Our research over the past 20 years has shown that high-performing companies score highly on five essential components of operational excellence and are better able to realize value from advanced technologies. For example, one of these five elements is building a management system that reinforces innovation. Yet few organizations put this into practice by encouraging innovative behaviors, such as frequent contact with managers that enables workers to continually improve a company’s operations. In a recent survey on operational excellence, only 21 percent of employees say they have check-ins with their leaders at least once a week.
That’s the number of questions that we suggest leaders ask as they evaluate their organizations’ productivity. For example, one question concerns how to drive productivity in services. Despite advances in some subsectors, “services tend to be harder to transform and can be a drag on an economy’s productivity growth,” observe McKinsey senior partners Chris Bradley, Olivia White, and Sven Smit and their colleagues in a recent report. As manufacturing becomes more automated, reweighting economic activity toward services may be critical to growth in many countries. “Making services more productive is a more reliable and sustainable way to raise the aggregate productivity of the economy than other approaches,” note the authors.
That’s economist and Stanford University professor Erik Brynjolfsson in an episode of McKinsey’s At the Edge podcast. Speaking with McKinsey senior partner Lareina Yee, Brynjolfsson explains how gen AI can spark that rethinking—and reignite productivity. “Generative AI is, frankly, one of the biggest, most effective technologies for changing the way work is done that’s ever been invented,” he says. While the automation that may result from gen AI could alter some occupations and jobs, “we’re already seeing it complement a lot of human activity, allowing people to do their jobs more effectively than they could before,” adds Brynjolfsson. “So in most cases, it’s really not a replacement but more of an amplification.”
“At the micro level, if you’re a company, productivity is one of the best predictors of the fortunes of your business,” says University of Chicago professor and economist Chad Syverson in an episode of McKinsey’s Forward Thinking podcast. “The more productive businesses are much more likely to survive.” He adds that AI may be able to reverse the productivity slowdown in many advanced economies. Between its potential applications in a variety of situations and sectors and its ability to complement other technology investments—including intangible assets, such as managerial skills, talent, and processes—AI could be “the best candidate for a new general-purpose technology we’ve had in decades,” says Syverson. “It’s made me more optimistic that we will end the productivity growth slowdown than anything else that’s happened since I started looking deeply at the slowdown ten years ago.”
Measuring personal productivity can be a tricky business. Some workers may feel more productive by following their own “ultradian” rhythms (that is, adjusting work to periods of high and low alertness during the day), focusing on high-priority projects exclusively, or choosing the operating model—remote, hybrid, or always in-person—that works best for them and their teams. Some employees may feel obligated to fill their downtime with meaningless tasks that managers assign just to keep their teams looking busy. According to research led by McKinsey senior partner Patrick Simon and colleagues, employers could address six modifiable factors of health to improve employee well-being—and increase productivity as a result. “One of the top contributors to productivity at work is an individual’s sense of self-efficacy—an employee’s belief that they can cope with difficult or changing situations,” note the McKinsey experts. “Self-efficacy can be improved through interventions, suggesting that employers can target self-efficacy to improve employee productivity.”
Lead productively.
— Edited by Rama Ramaswami, senior editor, New York
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How might using AI speed the development of life-saving cancer medicines?
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Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.
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Accelerating drug discovery. “Cancer is fast. Developing a new cancer medicine is not,” observes McKinsey senior partner Dr. Björn Albrecht. It takes about a decade to discover a new medicine, but through the potential for AI to speed drug discovery and development, the world is at the beginning of what will be a big change, he says. One of the biggest opportunities for AI in finding medicines is in designing clinical trials, according to McKinsey partner Alex Devereson, who has worked with QuantumBlack, AI by McKinsey, on pharma projects.
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Faster, more effective treatments. “Data is often difficult to work with,” acknowledges Alex. Analytical models must account for potential biases in the data and in the output. A successful effort, however, could help people get treated much more quickly and effectively across a wide variety of cancers. Discover the promise that AI holds to help cure disease in the Rewriting Cancer digital series—presented by UICC and produced by BBC StoryWorks—and visit the McKinsey Cancer Center to learn more.
—Edited by Belinda Yu, editor, Atlanta
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