Webcast Available Here: https://videos.confluent.io/watch/gQhJsLuGetQeHJ3KpEZ6SP Speaker Name: Lyndon Hedderly

1. APAC Exec Roundtable
June 2020

2. Agenda
2
01
Introduction
Challenges in 2020
Key trends
The opportunity
02
Your current state… and why we believe there’s a future state
architecture that will help you win
Introduction to Event Streaming
03
Adopting event Streaming
Typical customer journey / Practical advice - including adopting fully-managed-services
Closing comments on Confluent

3. 3
Headwinds
H1 2020
Being a Digital leader has never been
more important.
“Businesses that once mapped digital strategy in
one- to three-year phases must now scale their
initiatives in a matter of days or weeks.”

4. Listening to our customers,
three strategic themes remain consistent...
4

5. 5Approx. discretionary spend
Increasing
Operational
Efficiencies
(cost savings)60%
Initiatives to
increase
Revenue
(e.g. improving
customer Experience)
30%
Creating
New Business Models
(new revenue)
10%
Listening to our customers,
three strategic themes remain consistent...

6. Use data (events) for better,
faster real-time decisions &
automation
Transform architecture,
Build for flexibility
Lower fixed operating costs —e.g.
using Cloud services
/ migrating to Microservices
Automate business processes.
(workflow automation, AI & ML) -
incl. chatbots for customer service,
AI & ML for Fraud Prevention,
Cyber Risk, Regulatory
Contextual interactivity /
OmniChannel experiences /
Back office integration,
movement to online
(perhaps entirely)
Personalizing and
optimizing the next step in
the customer’s journey -
improving CX
Obsessing over the
customer & customer
journey
New Entrants / Challengers
New Digital business models (adjacent to
existing business) / pivoting e.g.
IoT - connected devices,
Logistics - sensors & big data...
Deploy applications & infrastructure to support
the accelerated shift to online channels
6
Examples... Spoiler alert: event streaming
underpins these capabilities

7. 7
In 2020, these trends have only accelerated...
Digitizing all
channels
Increased
pressure on
Cost Reduction
→ Incl. Cloud
- Amidst the COVID-19 crisis, digital has become central to
every interaction, forcing organizations - and individuals -
further up the adoption curve almost overnight...

8. ● In this Post-COVID world, do you agree that your technology
spend aligns with what other companies have shared with us
(~60% cost optimization, 30% improving CX, 10% new Business
models and innovation)?
● What do you feel is the right mix of spend for your
organization and industry?
● Many of our customers are saying they want to become
real-time digital enterprises to respond more effectively to
disruption and meet the increasing now-now-now demands of
their customers in the Post-COVID digital era. Is that also
something that your organization is aspiring towards?
Questions / Discussion:

9. Your current state… and why we
believe there’s a future state
architecture that will help you win
Introduction to Event Streaming
Part 2

10. Typical Enterprise Data Architecture - a Giant Mess
10
LINE OF BUSINESS 01 LINE OF BUSINESS 02 PUBLIC CLOUD

11. And the biggest challenge to
infrastructure modernization?
11
Executives point to:
● People
● Skills
● Management
challenges

12. 12
Customer
Experience
Overall, your current state may restrict your
ability to deliver on your strategic
objectives
Operational
Efficiencies
New Business
Models
Slow Batch Processing,
Periodic Queries on Passive
Data - lack of real-time
experiences
Limited Scalability,
expensive to maintain
Deliver the agility and new
features and functions - with
real-time requirements

13. Rethinking data
as a continually
updating stream
of events
Event Streaming
Introducing Event Streaming

14. “Walmart is able to take data from your past
buying patterns, their internal stock
information, your mobile phone location data,
social media as well as external weather
information and analyse all of this in seconds
so it can send you a voucher for a BBQ cleaner
to your phone – but only if you own a
barbeque, the weather is nice and you
currently are within a 3 miles radius of a
Walmart store that has the BBQ cleaner in
stock.”

15. “Walmart is a $500 billion in revenue company, so every
second is worth millions of dollars. Kafka and Confluent are
the backbone of our digital omnichannel transformation
and success.”
—Chris Kasten, VP of Walmart Cloud
Transforming Retail through Event Streaming
Impact
● Revenue — Kafka and Confluent helped top-line company
growth
● Scale — Improved processing of 8,500 nodes for 11 billion
events per day
● Brand — Delivered exceptional omnichannel customer
experience through new offerings, resulting in brand loyalty

16. “CapitalOne is able to use data, in real-time, to
identify an anomalous transaction on your
account, based on your contextual history - what
you’ve spent in the past, the location of the
transaction versus the location of your cell
phone.
It is able to do this, to prevent fraudulent
transactions, whilst offering a superior customer
experience and support new ways of interacting
with the bank, saving both operational costs and
fraud losses.”

17. Preventing Fraud with Real-Time Event Streaming
Impact
● ROI — Replaced legacy system with batch processing, saving
time and preventing potential losses
● Scale — Implemented event streaming platform with ability
to process more than 27B real-time events a month to
pinpoint suspicious behavior and respond
● Customer Experiences — Improved identification of
questionable activity, triggering real-time, actionable alerts
for customers
“We look at events as running our business. Business people
within our organization want to be able to react to
events—and oftentimes it's a combination of events.”
—Chris D’Agostino, VP of Streaming Data Engineering

18. Event Streaming is Transforming Every Industry
Auto / Transport
Without Event Streaming With Event Streaming
Batch-driven scheduling Real-time ETA
Banking Nightly credit-card fraud checks Real-time credit card fraud prevention
Retail Batch inventory updates Real-time inventory management
Healthcare Batch claims processing Real-time claims processing
Media
Batch data pipelines - production
supply chain
Real-time data pipeline
Manufacturing Scheduled equipment maintenance Automated, predictive maintenance
Defense Reactive cyber-security forensics Automated SIEM and Anomaly Detection
U.S. Defense
Agencies

19. ● Many companies we speak to have raised the frustration
around how they would like to accelerate their digital
transformation initiatives, but their legacy data architecture is
holding them back. Do you feel that your efforts to move
towards becoming real-time digital enterprises is being
hampered by your existing data architectures, and technical
debt that’s built up over the years?
● What are some of these technology frustrations that you’ve
encountered? Or are the challenges primarily around finding
the right talent with the right skill sets?
Questions / Discussion:

20. Adopting event Streaming
Typical customer journey / Practical advice -
including adopting fully-managed-services
Part 3

21. I N V E S T M E N T & T I M E
VALUE
3
4
5
1
2
Event Streaming - a typical customer
adoption journey...
Early Interest
Mission critical,
but disparate
LOBs
Identify a project
Mission-critical,
connected LOBs
Projects
Platform
Central Nervous
System
The Level 4 jump

22. 3
4
Mission critical,
but disparate
LOBs
Mission-critical,
connected
LOBs
Level 4
- the Platform Network Effect
Metcalfe’s Law: communications
networks increased in value in
proportion to the number of users
This transition is as much about
People and Process (Governance
etc.), as Technology

23. Central-Nervous System for Data
Hadoop ...
Device
Logs ... App ...MicroserviceMainframes
Data
Warehouse Splunk ...
Data Stores Logs 3rd Party Apps Custom Apps / Microservices
Same Day
Transactioning
(Account Open)
Fees Charges
& Billing
Real-time
Customer 360
Machine
Learning
Models
Real-time Data
Transformation
Real-time Fraud
Detection

24. ● We’ve heard examples of Walmart and Capital One. Walmart
who are challenging digital disruptors like Amazon.com,
CapitalOne who are widely viewed as a digital leader in
Financial Services. They’ve both embraced real-time event
streaming at the heart of their digital nervous system.
● Do you agree that having a central nervous system for your
organisations that allow you to respond to real-time events is
critical to your own digital transformation and innovation
initiatives?
Questions / Discussion:

25. About Confluent

26. 26
Confluent Enables Your Event
Streaming Success
Confluent founders are
original creators of Kafka
Confluent team wrote 80%
of Kafka commits and has
over 1M hours technical
experience with Kafka
Confluent Platform
extends Apache Kafka to
be a secure,
enterprise-ready platform
Confluent helps enterprises
succeed with reduced effort,
less risk and faster time to
market
Hall of Innovation
CTO Innovation
Award Winner
2019
Enterprise Technology
Innovation
AWARDS

27. Confluent Products: Software and SaaS
2727
SELF-MANAGED SOFTWARE
Confluent Platform
The Enterprise Distribution of Apache Kafka
In the datacenter
VM
FULLY-MANAGED SOFTWARE
Confluent Cloud
Apache Kafka Re-Engineered for the Cloud
In the cloud
Both: Subscription products where price scales with usage

28. The Cost-Efficient Way to Deploy Kafka
Confluent Platform
(case study: top 20 bank)
Confluent IP (Tiered Storage)
reduced broker nodes ~70%
Est. savings of $5M per year
vs. Open Source AK
Confluent Cloud
(common scenario)
1
2
3
⬇50
%
Cloud
Infrastructure
Operational
(FTE)
Support and
other spend
Total
self-managed
Confluent
Cloud
Ask about our TCO Calculator...

29. Damien Wong <dwong@confluent.io>
Chris Harrop <charrop@confluent.io>
Lyndon Hedderly <lyndon@confluent.io>
Jo Balfour <jo@confluent.io>
cnfl.io/slack
cnfl.io/blog
Thank you!
Link to Project Metamorphosis
https://www.confluent.io/blog/cost-effective-kafka-for-lower-tco/
Get a free TCO assessment
https://www.confluent.io/project-metamorphosis/cost-effective/