Presentation materials from 2014 Interop Conference - Cloud Connect Summit - Scott Carlson from PayPal in Las Vegas Audio: https://www.youtube.com/watch?v=tyYGupLg7IE

2. THE SOFTWARE-DEFINED DATA
CENTER AT PAYPAL
Scott Carlson –
Infrastructure Architect

3. ABOUT PAYPAL
As part of the eBay Inc. family accelerating global commerce, PayPal
offers flexible and innovative payment solutions to consumers and
merchants of all sizes.
• 143 Million Active Registered Accounts
• PayPal transacted $6,538 in Total Payment Volume (TPV) every
second in Q4 2013
• 193 markets / 26 currencies
• $6.6B revenue in 2013
• PayPal is the world’s most widely
used digital wallet

4. Experiences change how we think about Payments…
Promotions &
coupons
Mobile
eCommerce
Payment
Store location Shopping lists
In-store price
comparison
Loyalty
Self-scanning &
Check-out

5. ENABLE THE DEVELOPER
Code Deploy Enjoy
ENABLE THE BUSINESS
Payment Delivery
One-Click
Developer
Self Service
Global
Compute &
Data
Fulfillment
Self-
Organizing &
Optimizing
Infrastructure
System Intelligence
Driven Operation

6. Confidential 6 and Proprietary

7. Confidential 7 and Proprietary

8. GUIDING PRINCIPLES
Let’s Adopt
Open Source
where possible
Don’t Lock me
into a single
vendor
I want to solve
problems as
ONE company
Ebay Inc.

9. WHY OPENSTACK?
• Control and Flexibility
 Open-source platform. Not locked to proprietary vendor
Modular design can integrate with legacy or third-party technologies to meet business needs
• Industry Standard
 Open-source cloud not a “cheap alternative” to proprietary/COTS.
 Dominant standard in the IaaS market (OpenStack currently the unchallenged leader in open source
IaaS)
More than 100 leading companies / over a dozen countries participating in OpenStack Community
(Cisco, HP, Dell, VMware, Intel and Microsoft among others - new OpenStack clouds coming online
globally)
• Proven Software
 OpenStack today powers some of the largest public and private clouds in the world
• Compatible and Connected
 Compatibility with public OpenStack clouds = easy to migrate data and applications to public/hybrid
clouds
(based on security policies, economics, and other key business criteria)

10. KEY BUILDING BLOCKS
• Lego building blocks concept
− “Stackable” cloud computing bricks
• Auto-discover, auto-config/connect,
automatically communicate
• From the basic – VMs, storage volumes,
load balancer pools, etc
• To the complex – database as a service,
analytics as a service
− Constant stream of new capabilities added
to the platform across thousands of
developers globally

11. SOFTWARE DEFINED DATA CENTER
• Shift from Enterprise design model to cloud-based design where
everything becomes virtualized
• Elastically scale and self-heal infrastructure to accommodate
unpredictable usage patterns of customers and internet commerce
• Separate rapidly iterating customer experiences from core
services
• Reduce overall cost per transaction within the environment
• Deliver infrastructure, services, and platforms through automated
tools and management software
Confidential 11 and Proprietary
And Do it all….. Securely

12. MULTI-TENANCY
App Svr
OS
VM
App Svr
OS
VM
App Svr
OS
VM
App Svr
OS
VM
App Svr
OS
VM
App Svr
OS
VM
App Svr
OS
VM
Router
App Svr
OS
VM
B
A C
Network Virtualization

13. SDDC DELIVERS
Compute capacity that we use anywhere (no more silos)
• Use compute capacity wherever available, regardless of networking boundaries
• Flexibility to use resources in datacenter as required
• Reduced over-provisioning / increased utilization / reduced cost
Dynamic network isolation within large security zone
• Need to onboard cloud tenants with different security requirements
• Able to isolate services without redeploying physical layer
• Data centric, proportional security
Flexible network topologies
• Dynamic traffic patterns and policies
• One design does not fit all!
• Design network to fit application needs rather than fitting applications into existing network design
service-oriented approach to delivering capacity
• Configurations delivered in a programmatic way
• No specialized skills needed to deliver
• Rebuild first to troubleshoot
• Automation and orchestration

14. KEY LEARNINGS
• Developers want fully functional applications, not just blank servers
− Certified Secure OS + Certified Gold Application Stack + Load Balancer + Firewalls
• Our vendors are working with us to build and certify OpenStack API that we can consume to deliver
what we need, when we need it.
• We’re proving that we can fully utilize resources, extend capabilities, and reduce overall cost of our
infrastructure solutions
• Relying on in-house driven development requires skilled talent, vendor partnerships, and working
with the community to improve capabilities to ‘Enterprise Level’
• Adoption cycle for using software to define ‘Everything’ is still early in the curve, but our strategic
partners and vendors are aggressively building in capabilities
• These technology solutions are improving development lifecycle, improving time to market, and
allowing the PayPal business to continue its leadership in the payments space around the world