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Founder’s Guide to
Scaling Applications
When to Build, When to Buy…and What Breaks
Julien Lemoine - Co-founder & CTO @Algolia
@jlemoine_algo
Algolia in a few numbers
Team
● 300+ people in 6 offices
● 100+ software engineers
Infrastructure
● 2000+ bare metal machines in 70+ data centers
● 200TB+ of RAM, 2PB+ of SSD
● 10 Gbps average bandwidth usage worldwide
Usage
● 7000+ customers
● 200B+ API calls per month
We have a very strong team!
Like all companies, we need to stay
focused and innovate to conquer the
market!
Top-notch engineering team
Pros
● Key to the success of the company
● They love challenges and solving problems
● And they solve problems super quickly!
Cons
● They always find a lot of reasons to build not buy. Wouldn't it be the
famous "not invented here" or "reinventing the wheel" syndrome?
● Often under-evaluate or do not see the long-term cost
Build vs. Buy
Decision #1: Infrastructure
Infrastructure choice
Build vs. Buy: Cloud or bare-metal infrastructure
When: Q1-2013 (before launching the product)
Risk: A lot more to develop (High Availability in software)
Infrastructure choice
Build or Buy: Cloud or bare-metal infra
When: Q1-2013 (before launching the product)
Risk: A lot more to develop (High Availability in software)
Decision: bare metal because of performance
Conclusion: We were very lucky! It was a big risk but became
key for our success and lead to two big innovations in our
product.
Build vs. Buy
Decision #2: Geo aware DNS
Geo-aware DNS choice
Build or Buy: Find a provider or build our own DNS
When: Q4-2014 (for our Distributed Search Network)
Risk: losing our focus, a lot of existing managed DNS
Geo-aware DNS choice
Build or Buy: Find a provider or build our own DNS
When: Q4-2014 (for our Distributed Search Network)
Risk: losing our focus, a lot of existing managed DNS
Decision: develop our own anycast-DNS
Conclusion: it was a mistake! We discovered a startup working
on a SaaS product few months late
Build vs. Buy
Decision #3: Monitoring
Monitoring choice
Build or Buy: too much limit with our existing provider. Find a new one
or build based on opensource
When: Q1-2016
Risk: Focus, cost of maintaining our solution
Monitoring choice
Build or Buy: too much limit with our existing provider. Find a new one
or build based on opensource
When: Q1-2016
Risk: Focus, cost of maintaining our solution
Decision: Build. The team built a working prototype quickly using OSS
Conclusion: Was again a mistake! We discovered a new API solution
a few months later!
Build vs. Buy
Decision #4: Analytics
Analytics choice
Build or Buy: We re-developed our system 3 times, each time asking
ourselves the build or buy question
When: Q3-2013, Q2-2014, Q4-2016
Risk: Focus, cost of maintaining our solution
Analytics choice
Build or Buy: We re-developed our system 3 times, each time asking
ourselves the build or buy question
When: Q3-2013, Q2-2014, Q4-2016
Risk: Focus, cost of maintaining our solution
Decision: Build, then Build, then Buy
Conclusion: It was very positive to iterate. The last Buy option actually
failed and we finished we a mix of build/buy by using several GCP
components
How to not reinvent the wheel?
How to not reinvent the wheel?
● Assume the initial choice is wrong
Team needs to be in a growth/adapt mindset
● Be careful about the bad reasons
Learning the tech or having ownership are never a good reasons (hint: think about turnover!)
● There are SaaS solution for most needs
If not today, it will come!
● More and more mix of Build & Buy
IaaS, hosted services and API in general
● Build for short term or if you have a factor 10
Whatever the factor 10 (cost, UX, performance, etc.)
Thank you

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Founder's Guide to Scaling Applications: When to Build, When to Buy and What Breaks with Algolia

  • 1. Founder’s Guide to Scaling Applications When to Build, When to Buy…and What Breaks Julien Lemoine - Co-founder & CTO @Algolia @jlemoine_algo
  • 2. Algolia in a few numbers Team ● 300+ people in 6 offices ● 100+ software engineers Infrastructure ● 2000+ bare metal machines in 70+ data centers ● 200TB+ of RAM, 2PB+ of SSD ● 10 Gbps average bandwidth usage worldwide Usage ● 7000+ customers ● 200B+ API calls per month
  • 3. We have a very strong team! Like all companies, we need to stay focused and innovate to conquer the market!
  • 4. Top-notch engineering team Pros ● Key to the success of the company ● They love challenges and solving problems ● And they solve problems super quickly! Cons ● They always find a lot of reasons to build not buy. Wouldn't it be the famous "not invented here" or "reinventing the wheel" syndrome? ● Often under-evaluate or do not see the long-term cost
  • 5. Build vs. Buy Decision #1: Infrastructure
  • 6. Infrastructure choice Build vs. Buy: Cloud or bare-metal infrastructure When: Q1-2013 (before launching the product) Risk: A lot more to develop (High Availability in software)
  • 7. Infrastructure choice Build or Buy: Cloud or bare-metal infra When: Q1-2013 (before launching the product) Risk: A lot more to develop (High Availability in software) Decision: bare metal because of performance Conclusion: We were very lucky! It was a big risk but became key for our success and lead to two big innovations in our product.
  • 8. Build vs. Buy Decision #2: Geo aware DNS
  • 9. Geo-aware DNS choice Build or Buy: Find a provider or build our own DNS When: Q4-2014 (for our Distributed Search Network) Risk: losing our focus, a lot of existing managed DNS
  • 10. Geo-aware DNS choice Build or Buy: Find a provider or build our own DNS When: Q4-2014 (for our Distributed Search Network) Risk: losing our focus, a lot of existing managed DNS Decision: develop our own anycast-DNS Conclusion: it was a mistake! We discovered a startup working on a SaaS product few months late
  • 11. Build vs. Buy Decision #3: Monitoring
  • 12. Monitoring choice Build or Buy: too much limit with our existing provider. Find a new one or build based on opensource When: Q1-2016 Risk: Focus, cost of maintaining our solution
  • 13. Monitoring choice Build or Buy: too much limit with our existing provider. Find a new one or build based on opensource When: Q1-2016 Risk: Focus, cost of maintaining our solution Decision: Build. The team built a working prototype quickly using OSS Conclusion: Was again a mistake! We discovered a new API solution a few months later!
  • 14. Build vs. Buy Decision #4: Analytics
  • 15. Analytics choice Build or Buy: We re-developed our system 3 times, each time asking ourselves the build or buy question When: Q3-2013, Q2-2014, Q4-2016 Risk: Focus, cost of maintaining our solution
  • 16. Analytics choice Build or Buy: We re-developed our system 3 times, each time asking ourselves the build or buy question When: Q3-2013, Q2-2014, Q4-2016 Risk: Focus, cost of maintaining our solution Decision: Build, then Build, then Buy Conclusion: It was very positive to iterate. The last Buy option actually failed and we finished we a mix of build/buy by using several GCP components
  • 17. How to not reinvent the wheel?
  • 18. How to not reinvent the wheel? ● Assume the initial choice is wrong Team needs to be in a growth/adapt mindset ● Be careful about the bad reasons Learning the tech or having ownership are never a good reasons (hint: think about turnover!) ● There are SaaS solution for most needs If not today, it will come! ● More and more mix of Build & Buy IaaS, hosted services and API in general ● Build for short term or if you have a factor 10 Whatever the factor 10 (cost, UX, performance, etc.)