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What is the autonomous enterprise?
Hi Md Abul,
Imagine an enterprise that evolves as quickly as the market demands, with intelligent processes that improve autonomously.
Join us on February 27th for our Megacast: The Path to the Autonomous Enterprise. You’ll hear from Tray CEO Rich Waldron, CTO Alistair Russell, and our Product Management team on:
- Why iPaaS is crucial for integrating AI across your enterprise
- How Tray’s unified, multi-experience platform lets every team member enhance business processes with AI
- New product features that will accelerate your journey toward the autonomous enterprise
Save your seat!
Featured speakers
Rich Waldron
CEO & Host
Ali Russell
CTO & Host
Alex Kolhofer
Head of Product Management
Tom Walne
Lead Product Manager
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How ambitious are today’s professional women?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
— Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:44 - 16 Feb 2024 -
Virtualization and Containerization: Which one to pick?
Virtualization and Containerization: Which one to pick?
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Software applications have traditionally been closely tied to the specific servers they run on and the operating systems they use. But as companies look to get more out of their infrastructure while spending less time and effort managing it, vendors are offering easier deployment options. Virtualization and Containerization let you run multiple isolated applications on a single physical server while sharing and managing resources between them.
In this issue, we’ll talk about virtualization and containerization more broadly, aiming to give you a good understanding of these technologies without diving into specific platforms such as Docker and Kubernetes. While those platforms undoubtedly play significant roles here, our intention is to present a more generalized exploration. We’ll try to answer when to choose which technology and why. So, stick around and read on if you want to know the answer.
Players in the Space
Virtualization and containerization can be confusing, partly because so many players are in the space. On the virtualization side, we have open-source platforms like Xen and KVM. Then there’s VMware vSphere, Microsoft Hyper V, Oracle's Virtual Box, and more.
For containers, Docker is the most popular container engine right now. We also have alternatives like rkt, Podman, and Containerd. When it comes to container orchestration, options include Kubernetes, Docker Swarm, and Nomad.
With all these choices, how do you know what to use? Well, before we pick, let's back up and make sure we understand exactly what virtualization and containerization are. That context will help guide our decision.
Virtualization
Virtualization has been around for a while but still plays a key role in cloud computing today. So, let’s start with the basics: What exactly is virtualization?
Virtualization technology allows a single physical server to act like multiple separate computers. It creates virtual or simulated versions of computing resources like CPU, memory, network, and storage. These virtual resources can each run different applications and operating systems independently, even though they are all hosted on the same physical machine.
Here’s a straightforward example. Imagine having three physical servers, each designated for a specific purpose. One manages emails, another deals with web-related tasks, and the third oversees some internal legacy applications. Let’s say all these servers only run at about 35% capacity – nowhere near their full potential. In many traditional environments, critical apps would each run on dedicated servers to maximize stability and reliability. But this also meant inefficient resource use. Virtualization offers a solution.
It lets us divide the email server into two separate entities capable of handling different tasks, freeing up space for those legacy applications to migrate over. We get better hardware efficiency while still meeting operational needs.
With unused capacity freed up, any extra servers can now be repurposed for other uses or even retired, saving on operational and maintenance costs.
Let's talk about how virtualization works to understand where the efficiencies are.
How virtualization works
Virtualization works by creating and managing virtualized environments on a single physical machine. The key components include:
Hypervisors
Virtual machines
Host machines
Guest operating systems
Hypervisor
A hypervisor is software that runs above the physical server or host. It pools the host’s resources and allocates them to virtual machines (VMs).
There are two main types of hypervisors:
Type 1 Hypervisor: A Type 1 hypervisor installs directly on the physical server. They are also called bare metal hypervisors. Type 1 hypervisors are the most common. They provide better security and lower latency. Some examples are:
VMware ESXi
Microsoft Hyper-V
Open source KVM
Type 2 Hypervisor: A Type 2 hypervisor runs on top of a host operating system installed on the physical server. They are also called hosted hypervisors. Type 2 hypervisors see less frequent use, mainly for end-user virtualization. They have higher latency than Type 1 hypervisors. Some examples include:
Oracle VirtualBox
VMware Workstation
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by "ByteByteGo" <bytebytego@substack.com> - 11:39 - 15 Feb 2024 -
Why Koneksa went from serverless back to host
New Relic
Meet the dynamic team at Koneksa. With a focus on research and discovery, this trio is driving observability and instrumentation in their infrastructure. Their agile approach ensures flexibility for collaboration with larger teams. Small but mighty, they rely on the right tools to grow and scale, emphasizing the importance of measuring tool and project value.
Koneksa's data-centric world revolves around their full-service platform for remote data collection in clinical trials. They were facing challenges in understanding user patterns, especially during burst-like data uploads, so they adopted Kubernetes and Pixie during their microservices migration. Curious about how they handled spikes in load?
Dive into their journey from serverless back to host.
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by "New Relic" <emeamarketing@newrelic.com> - 06:07 - 15 Feb 2024 -
How Europe can revive competitiveness
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
Lackluster growth. Europe is among the world’s leaders when it comes to sustainability and inclusion. Yet, on the third factor that’s critical to a thriving and eco-friendly future—growth—Europe’s track record is not as strong. Europe’s per capita GDP was 27% below that of the United States in 2022. Bridging that prosperity divide hinges on becoming more competitive on the global stage. In this new era, competitiveness is both more urgent and more challenging for Europe, notes McKinsey senior partner Massimo Giordano and coauthors.
— Edited by Querida Anderson, senior editor, New York
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:08 - 15 Feb 2024 -
There’s still time to enter the Remote Excellence Awards 2024 🏆
There’s still time to enter the Remote Excellence Awards 2024 🏆
The Remote Excellence Awards are designed to celebrate YOU.
This is your chance to showcase the ways your company is shaping the future of remote work. Propel your team into the global limelight and celebrate the everyday heroes who are helping redefine the workplace 🚀
Entries close March 1, 2024 at 11:59PM UTC.
We’re looking forward to your entry!
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by "Remote" <hello@remote-comms.com> - 11:31 - 14 Feb 2024 -
LEAP 2024: Get certified in API observability!
LEAP 2024: Get certified in API observability!
Hi Md Abul,
On February 29th, LEAP 2024: The API observability conference will be the gateway to transforming your API observability skills from beginner to expert.
LEAP 2024 is shaping into an extraordinary event with 20+ speakers delivering insightful sessions across two parallel tracks – one focused on decision-makers and the other on implementers!
Now, here's the really exciting part: I'm delighted to introduce something totally unique to the event – the API observability fundamentals certification.
By joining us at LEAP 2024, you'll have the chance to become one of the very first to earn this credential. Not only will it showcase your expertise, but it'll also elevate your professional profile in the ever-evolving world of API observability.
But that's not all! I'm also thrilled to announce our wonderful list of speakers so far for LEAP 2024:
In addition to your hosts, me (Budha) and Tyk's observability expert Sonja Chevre, get ready to hear from industry experts who will provide actionable advice and tips you can implement right away.
Stay tuned because we'll be announcing more speakers soon! Trust me, you won't want to miss out on what they have to share.
The important bits:
Thurs
29
FebTime
9am - 4pm
ETVirtual
Zoom
eventI can't wait to see you there and witness the incredible impact LEAP 2024 will have on your observability journey. Let's make the most of it together!
Budha and team
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by "Budhaditya Bhattacharya" <communities@tyk.io> - 12:58 - 14 Feb 2024 -
Workplace friendships are fading. How can companies encourage connection?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
Benefits of connections. Social capital, or connectivity in the workplace, can facilitate greater creativity, enable greater learning, and help workers advance their careers, McKinsey senior partner John Parsons shares on an episode of The McKinsey Podcast. To fully benefit from social capital, people must value not only the strong ties that connect them to others but also the weak ties that can bridge different areas of an organization and open up new opportunities, partner Brooke Weddle explains.
— Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:13 - 14 Feb 2024 -
Why you should pay closer attention to product design
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
Pursing ‘triple wins.’ As consumers become less predictable, companies that rethink product design can make greater process toward “triple wins”: simultaneously pursuing growth, controlling costs, and reducing carbon emissions, McKinsey partner Dave Fedewa and colleagues share on an episode of the McKinsey on Consumer and Retail podcast. By eliminating an extra quarter-inch of air from a boxed food product, one company realized it could save a very large amount—eight digits, Fedewa recalls.
•
Puzzling behavior. Today’s consumers act in ways that can seem contradictory—for instance, splurging and saving at the same time, reflects McKinsey senior partner Warren Teichner. As a result, companies need to understand consumers at a much deeper level. Technologies such as generative AI can be used to scrape information and feedback from consumers, providing key insights to product designers and R&D leads, McKinsey senior partner Jennifer Schmidt explains. Discover how consumer companies can create value through innovative product design.
— Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:49 - 13 Feb 2024 -
Video Telematics Solution - Monitor the Activity and Driver Behavior for Multiple Types of Vehicles and Industry
Video Telematics Solution - Monitor the Activity and Driver Behavior for Multiple Types of Vehicles and Industry
Change the way your clients track and monitor their fleet with our advanced video telematics software.
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Learn how our video telematics can help your business grow
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by "Sunny Thakur" <sunny.thakur@uffizio.com> - 07:00 - 12 Feb 2024 -
The industry outlook for 2024: A leader’s guide
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Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Another year, another set of opportunities and challenges for leaders in all sectors of the globe. It seems that uncertainty and disruptions are here to stay, but there are also reasons to be hopeful about the world economy. The same is true for individual industries, all of which are subject to broader macroeconomic forces as well as sector-specific trends and conditions. We’ll check in with four major industries—healthcare, financial services, energy, and fashion—about their prospects in 2024.
As New Year’s resolutions go, building healthy habits is a popular one. Dust off your gym membership, eat more greens—whatever might help you transform into a better version of yourself. The healthcare industry in the United States, which accounted for 41 percent of the world’s healthcare spending in 2021, is no stranger to transformation. After a challenging few years of fluctuating demand, high inflation, and labor shortages, the outlook for both healthcare providers and payers seems brighter. McKinsey senior partner Shubham Singhal and his colleague foresee meaningful growth opportunities in several segments between now and 2027. At the same time, US healthcare leaders must manage a range of cost pressures and macroeconomic uncertainties while continuing to innovate and improve the well-being of their patients and members.
That’s how much a bank could save by acquiring just one new customer through a qualified lead rather than on its own. According to McKinsey’s Leorizio D’Aversa, Harald Kube, Brian Ledbetter, and colleagues, external partnerships will become increasingly invaluable—and value-creating—to banks that are constantly competing with the clock. “Customers are demanding personalization and intimacy,” Sabrina Dar of Mambu, a banking technology firm, tells McKinsey. “They don’t want to tell you more than once who they are or what services they require. And they want speed.” Enter embedded finance: the placement of financial products or services in nonfinancial platforms, applications, or customer experiences. Instead of trying to build everything themselves, some banks would do well to play to their strengths and, with a little help from their friends, create an integrated experience.
That’s McKinsey senior partner Ishaan Seth reflecting on his discussions at the World Economic Forum’s annual meeting last month. Unsurprisingly, generative AI (gen AI)—and the opportunities it presents for the banking industry—was a ubiquitous topic of discussion. But in such a heavily regulated sector, Seth notes a few key questions that banking leaders must ask themselves. “For example, do you allow the algorithm to pull data from myriad sources first, or do you feed it with internal bank-generated data and then figure out what the outside world can do to supplement that?”
Last fall’s COP28 conference hosted a record number of delegates, including more than 700 CEOs. Public and private sector leaders made a range of pledges to realize the net-zero transition, including a commitment from the world’s biggest producers of nuclear energy to triple capacity by 2050. Yet despite the momentum, it’s still very difficult to finance the energy transition. In an episode of McKinsey Global Institute’s Forward Thinking podcast, Michael Chui discusses the financing challenge with Nan Ransohoff, head of climate at Stripe and leader of Frontier. On its face, Ransohoff explains, the removal and storage of CO2 doesn’t provide customers with the same type of value as other energy products. So Frontier developed an advance market commitment: a risk-adjusted portfolio of carbon removal companies that investors can buy into. This approach provides a marketplace for a product that’s hard to sell but also critical to the transition. “We aren’t going to get to net zero by emissions reduction alone,” Ransohoff says. “There are multiple parts of the solution set that we need to pursue. Carbon removal is just one of them, to make the math work.”
The fashion industry isn’t immune to the geopolitical conflicts and economic volatility that promise to affect every sector in 2024. But in McKinsey’s latest State of Fashion report, senior partners Anita Balchandani, Achim Berg, Gemma D’Auria, and their colleagues note some trends that are fully unique to fashion. Among them is the continued demand for the “gorpcore” aesthetic: picture people in fleece jackets and water-repellent pants running errands rather than taking a hike in the great outdoors. While gorpcore might still carry cachet with urban customers, the more adventure-inclined set is turning the trend on its head. Some customers in this group want streetwear-inspired pieces that can still withstand the elements. So if you’re in the market for trail-friendly jorts or a mountain biking romper with four-way stretch, you’re in luck.
Lead by brushing up on industry trends.
– Edited by Daniella Seiler, executive editor, Washington, DC
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by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 04:46 - 12 Feb 2024 -
How are global trade relationships changing?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
Evolution of global trade. To understand how global trade relationships are changing, McKinsey Global Institute director Lola Woetzel and colleagues analyzed them using four measures: trade intensity, import concentration, geographic distance, and a new factor of geopolitical distance, which approximates how geopolitical alignment relates to trade. Since 2017, China, Germany, the UK, and the US have reduced the geopolitical distance of their trade by 4% to 10% each.
— Edited by Jermey Matthews, editor, Boston
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:50 - 12 Feb 2024 -
The week in charts
The Week in Charts
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by "McKinsey Week in Charts" <publishing@email.mckinsey.com> - 03:19 - 10 Feb 2024 -
EP98: GitOps Workflow - Simplified Visual Guide
EP98: GitOps Workflow - Simplified Visual Guide
Forwarded this email? Subscribe here for moreThis week’s system design refresher:
Good APIs Vs Bad APIs: 7 Tips for API Design (Youtube video)
GitOps Workflow - Simplified Visual Guide
How do Search Engines Work?
The Payments Ecosystem
Object-oriented Programming: A Primer
Compare your streaming data options (Sponsored)
Since its introduction in 2011, Apache Kafka quickly became the industry’s de facto event-streaming platform. However, much has changed in the last 10+ years — clouds and containers, faster networking, and the hardware on which these systems run.
In this report, you’ll learn:
How requirements for streaming data technologies have evolved
Considerations for evaluating streaming data platforms
Benchmark results comparing throughput and latencies
Download the report for the full findings.
Good APIs Vs Bad APIs: 7 Tips for API Design
Latest articles
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GitOps Workflow - Simplified Visual Guide
GitOps brought a shift in how software and infrastructure are managed with Git as the central hub for managing and automating the entire lifecycle of applications and infrastructure.
It's built on the principles of version control, collaboration, and continuous integration and deployment (CI/CD).
Key features include:Version Control and Collaboration:
Centralizing code, configurations, and infrastructure in Git for control and collaboration.Declarative System:
Describing the system's desired state for easier version control.Automated Delivery:
Automating deployment through Git-triggered processes, closely integrated with CI/CD pipelines.Immutable Infrastructure:
Making changes via Git instead of directly in the live environment to prevent inconsistencies.Observability and Feedback:
Monitoring systems in real-time to align the actual state with Git's declared state.Security and Compliance:
Tracking changes in Git for security and compliance, with role-based access for added control.
Over to you: Do you see GitOps' declarative approach speeding up your deployments?
How do Search Engines Work?
The diagram below shows a high-level walk-through of a search engine.
▶️ Step 1 - Crawling
Web Crawlers scan the internet for web pages. They follow the URL links from one page to another and store URLs in the URL store. The crawlers discover new content, including web pages, images, videos, and files.
▶️ Step 2 - Indexing
Once a web page is crawled, the search engine parses the page and indexes the content found on the page in a database. The content is analyzed and categorized. For example, keywords, site quality, content freshness, and many other factors are assessed to understand what the page is about.
▶️ Step 3 - Ranking
Search engines use complex algorithms to determine the order of search results. These algorithms consider various factors, including keywords, pages' relevance, content quality, user engagement, page load speed, and many others. Some search engines also personalize results based on the user's past search history, location, device, and other personal factors.
▶️ Step 4 - Querying
When a user performs a search, the search engine sifts through its index to provide the most relevant results.The Payments Ecosystem
How do fintech startups find new opportunities among so many payment companies? What do PayPal, Stripe, and Square do exactly?
Steps 0-1: The cardholder opens an account in the issuing bank and gets the debit/credit card. The merchant registers with ISO (Independent Sales Organization) or MSP (Member Service Provider) for in-store sales. ISO/MSP partners with payment processors to open merchant accounts.
Steps 2-5: The acquiring process.
The payment gateway accepts the purchase transaction and collects payment information. It is then sent to a payment processor, which uses customer information to collect payments. The acquiring processor sends the transaction to the card network. It also owns and operates the merchant’s account during settlement, which doesn’t happen in real-time.
Steps 6-8: The issuing process.
The issuing processor talks to the card network on the issuing bank’s behalf. It validates and operates the customer’s account.
I’ve listed some companies in different verticals in the diagram. Notice payment companies usually start from one vertical, but later expand to multiple verticals.Object-oriented Programming: A Primer
I wrote a blog post about this topic. It covers:
Background of OOP
Classes and Objects
Cornerstones of Object-Oriented Programming
Encapsulation
Abstraction
Inheritance
Polymorphism
You can read the full article here.
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by "ByteByteGo" <bytebytego@substack.com> - 11:37 - 10 Feb 2024 -
Tendencias que darán forma al panorama del bienestar de los consumidores en 2024
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De acuerdo a uno de nuestros recientes estudios, mejorar la salud y el bienestar es una gran prioridad para los consumidores en 2024. Warren Teichner y coautores de McKinsey exploran las cinco tendencias de wellness para este año, además de siete oportunidades de crecimiento, como la salud de la mujer, el control del peso y el fitness en persona. Otros temas destacados de la edición de este mes son:
•
lo que 2024 depara a los líderes de talento
•
la creciente distancia entre los líderes digitales y de IA y otros actores del sector
•
comprender la industria de la salud estadounidense en 2024 y más allá
•
el potencial de la IA generativa para cambiar las reglas del juego en las operaciones
La selección de nuestros editores
LOS DESTACADOS DE ESTE MES
La forma del talento en 2023 y 2024
Si 2023 fue el año del gerente y la plataforma de lanzamiento de la IA generativa, ¿qué traerá 2024 para los líderes de talento?
Vea lo que le espera
Reconectados y avanzando: Los líderes digitales y de IA están dejando atrás al resto
Las empresas con sólidas capacidades digitales y de inteligencia artificial han descubierto cómo generar valor compuesto, según una nueva investigación de McKinsey.
Supere a la competencia
Qué esperar de la atención sanitaria estadounidense en 2024 y más allá
Una nueva perspectiva sobre cómo la tecnología, los esfuerzos de transformación y otros cambios han afectado a los pagadores, los sistemas de salud, los servicios y la tecnología de atención médica, y los servicios de farmacia.
Esté preparado
La IA generativa en las operaciones: Capturar el valor
Descubra el poder transformador de la IA generativa dentro de la cadena de valor de las operaciones, dando forma a los debates de la alta dirección en todos los sectores.
Explore lo nuevo
Cómo prepararse para el cargo de CEO
Convertirse en un candidato de alto potencial para el puesto más elevado empieza por hacerse la pregunta: ¿Por qué quiero ser CEO?
Sea auténtico
Cómo hacer la transición para dejar de ser CEO
Una salida eficaz del liderazgo es fundamental tanto para el futuro de la organización como para el legado del CEO. Aquí explicamos cómo abordan esa transición los mejores directores ejecutivos del mundo.
Sintonice la conversaciónEsperamos que disfrute de los artículos en español que seleccionamos este mes y lo invitamos a explorar también los siguientes artículos en inglés.
McKinsey Explainers
Find direct answers to complex questions, backed by McKinsey’s expert insights.
Learn more
McKinsey Themes
Browse our essential reading on the topics that matter.
Get up to speed
McKinsey on Books
Explore this month’s best-selling business books prepared exclusively for McKinsey Publishing by Circana.
See the lists
McKinsey Chart of the Day
See our daily chart that helps explain a changing world—as we strive for sustainable, inclusive growth.
Dive in
McKinsey Classics
Is there a link between the strategic moves of new CEOs and the performance of their companies? Read our 2016 classic “How new CEOs can boost their odds of success” to learn more.
Rewind
The Daily Read
Our Daily Read newsletter highlights an article a day, picked by our editors.
Subscribe now— Edited by Joyce Yoo, editor, New York
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by "Destacados de McKinsey" <publishing@email.mckinsey.com> - 08:19 - 10 Feb 2024 -
Green-tech unicorns are coming
The Shortlist
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Curated by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Tech is a bigger story than ever—in our businesses, societies, and economies. In this edition of the CEO Shortlist, we look closely at four ways leaders can harness technology to pull ahead of their peers. We hope you enjoy the read.
—Liz and Homayoun
Unsung heroes. It’s been the constant refrain for the past year: gen AI is a critical new technology that stands to profoundly affect business and society. But leaders who are all in on gen AI risk getting left behind on other tech developments that are also shaping the modern business landscape.
Make sure you’re not wearing blinders. Check out “Ten unsung digital and AI ideas shaping business,” a new article by Kate Smaje and Rodney Zemmel.
A timetable for tech trends. It can sometimes be hard to keep up with the fast-moving world of tech. CEOs, CIOs, tech leaders, and board directors can use our interactive to get a read on the 42 tech trends changing business today—and make sure they’re on board the right trains.
Plan your trip with “Hitchhiker’s guide to technology: 42 shifts that matter to enterprise tech leaders,” by Klaas Ole Kürtz, Chandrasekhar Panda, Henning Soller, and Niels Van der Wildt.
Lapping the competition. The distance between digital and AI leaders and other industry players is big, and it’s getting bigger. Digital and AI, when implemented well, offer compounding advantages to leaders. As the technologies improve, companies are poised to reap ever bigger benefits.
Explore the latest research in “Rewired and running ahead: Digital and AI leaders are leaving the rest behind,” by Bryce Hall, Eric Lamarre, Rob Levin, Johannes-Tobias Lorenz, and Pamela Simon.
Putting money on green. The next unicorns may not be rainbow colored, but green. However, for businesses working in green steel, carbon removals, and renewable energy to achieve their immense potential, they will have to chart a new path to funding.
Learn how private capital, venture capitalists, and other tech investors can play a role with “A different high-growth story: The unique challenges of climate tech,” a new article by Michael Birshan, Lisa Leinert, Tomas Nauclér, and Werner Rehm.We hope you find these ideas inspiring and helpful. See you next time with four more McKinsey ideas for the CEO and others in the C-suite.
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Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey CEO Shortlist" <publishing@email.mckinsey.com> - 04:06 - 9 Feb 2024 -
Making hybrid working work better
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
— Edited by Belinda Yu, editor, Atlanta
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by "Only McKinsey" <publishing@email.mckinsey.com> - 01:35 - 9 Feb 2024 -
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by "Sunny Thakur" <sunny.thakur@uffizio.com> - 07:00 - 8 Feb 2024 -
How do We Design for High Availability?
How do We Design for High Availability?
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In an era where digital presence is vital for business continuity, the concept of high availability (HA) has become a cornerstone in system design. High availability refers to systems that can operate continuously without failure for extended periods.
This article explores the evolution of high availability, how it is measured, how it is implemented in various systems, and the trade-offs involved in achieving it.
What is High Availability?
The concept of high availability originated in the 1960s and 1970s with early military and financial computing systems that needed to be reliable and fault tolerant.
In the Internet age, there has been an explosion of digital applications for e-commerce, payments, delivery, finance, and more. Positive user experiences are crucial for business success. This escalated the need for systems with nearly 100% uptime to avoid losing thousands of users for even brief periods. For example, during a promotional flash sale event, just one minute of downtime could lead to complete failure and reputation damage.
The goal of high availability is to ensure a system or service is available and functional for as close to 100% of the time as possible. While the terms high availability and uptime are sometimes used interchangeably, high availability encompasses more than just uptime measurements.
How do We Measure High Availability?
Two key concepts are relevant for calculating availability: Mean Time Between Failures (MTBF), and Mean Time To Repair (MTTR).
MTBF and MTTR
MTBF measures system reliability by totaling a system’s operational time and dividing it by the number of failures over that period. It is typically expressed in hours. A higher MTBF indicates better reliability.
MTTR is the average time required to repair a failed component or system and return it to an operational state. It includes diagnosis time, spare part retrieval, actual repair, testing, and confirmation of operation. MTTR is also typically measured in hours.
As shown in the diagram below, there are two additional related metrics - MTTD (Mean Time To Diagnose) and MTTF (Mean Time To Failure). MTTR can loosely include diagnosis time.
The Nines
Together, MTBF and MTTR are critical for calculating system availability. Availability is the ratio of total operational time to the sum of operational time and repair time. Using formulas:
Availability=MTBFMTBF+MTTR
For high-availability systems, the goal is to maximize MTBF (less frequent failures) and minimize MTTR (fast recovery from failures). These metrics help teams make informed decisions to improve system reliability and availability.
As shown in the diagram below, calculated availability is often discussed in terms of “nines”. Achieving “3 nines” availability allows only 1.44 minutes of downtime per day - challenging for manual troubleshooting. “4 nines” allows only 8.6 seconds of downtime daily, requiring automatic monitoring, alerts, and troubleshooting. This adds requirements like automatic failure detection and rollback planning in system designs.
Typical Architectures
To achieve “4 nines” availability and beyond, we must consider:
System designs - designing for failure using:
Redundancy
Tradeoffs
System operations and maintenance - key principles are:
Change management
Capacity management
Automated detection and troubleshooting
Let’s explore system designs in more detail.
Redundancy
There is only so much we can do to optimize a single instance to be fault-tolerant. High availability is often achieved by adding redundancies. When one instance fails, others take over.
For stateful instances like storage, we also need data replication strategies.
Let's explore common architectures with different forms of redundancy and their tradeoffs.
Hot-Cold
In the hot-cold architecture, there is a primary instance that handles all reads and writes from clients, as well as a backup instance. Clients interact only with the primary instance and are unaware of the backup. The primary instance continuously synchronizes data to the backup instance. If the primary fails, manual intervention is required to switch clients over to the backup instance.
This architecture is straightforward but has some downsides. The backup instance represents waste resources since it is idle most of the time. Additionally, if the primary fails, there is potential for data loss depending on the last synchronization time. When recovering from the backup, manual reconciliation of the current state is required to determine what data may be missing. This means clients need to tolerate potential data loss and resend missing information.
Hot-Warm
The hot-cold architecture wastes resources since the backup instance is under-utilized. The hot-warm architecture optimizes this by allowing clients to read from the secondary/backup instance. If the primary fails, clients can still read from the secondary with reduced capacity.
Since reads are allowed from the secondary, data consistency between the primary and secondary becomes crucial. Even if the primary instance is functioning normally, stale data could be returned from reads since requests go to both instances.
Compared with hot-cold, the hot-warm architecture is more suitable for read-heavy workloads like news sites and blogs. The tradeoff is potential stale reads even during normal operation in order to utilize resources more efficiently.
Hot-Hot
In the hot-hot architecture, both instances act as primaries and can handle reads and writes. This provides flexibility, but it also means writes can occur to both instances, requiring bidirectional state replication. This can lead to data conflicts if certain data needs sequential ordering.
For example, if user IDs are assigned from a sequence, user Bob may end up with ID 10 on instance A while user Alice gets assigned the same ID from instance B. The hot-hot architecture works best when replication needs are minimal, usually involving temporary data like user sessions and activities. Use caution with data requiring strong consistency guarantees.
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by "ByteByteGo" <bytebytego@substack.com> - 11:39 - 8 Feb 2024 -
What should US healthcare leaders expect in the coming years?
On Point
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
•
A potential recovery. US healthcare industry profits were under pressure in 2023, but this year, a recovery could start to take shape, McKinsey partner Neha Patel and senior partner Shubham Singhal share. Labor shortages, inflation, and the COVID-19 pandemic have stressed the sector. However, the strain on the healthcare industry’s financial health is beginning to ease, thanks to efforts made to transform healthcare delivery options over the past few years.
— Edited by Querida Anderson, senior editor, New York
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You received this newsletter because you subscribed to the Only McKinsey newsletter, formerly called On Point.
Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "Only McKinsey" <publishing@email.mckinsey.com> - 01:13 - 8 Feb 2024
