Implementing Serverless Computing In Your Business: What You’ll Want to Know

Software and technology are consistently moving towards efficiency and slickness. Efficiency in the sense that the user doesn’t know how complex the system within the hardware is. Slickness in the sense that the technology functions fast while meeting a standard of performance. For example, look at the development of cell phones. It used to be a box with an antenna that you could only make calls from. Now they are as thin as 7mm and perform so many functions that you hardly find yourself going to dial a number. 

Of course, consumers want to have these kinds of advanced systems but the technicians behind the scenes need the resources to do so. The introduction of cloud computing has been a breakthrough and changed the way networks function within platforms. This is due to many factors, but primarily the speed of network deployment, scalability, security of data, and reduction in operating costs have been key contributors.

A dominant approach that is heavily innovative to software and, more specifically, useful for software developers is serverless architecture. Now the first thing to point out is that the name “serverless” is misleading since there are in fact servers running this process. However, it has earned its name because the server aspect is operated by machines, removing them from the responsibilities of the developer. 

This cloud-native development tactic requires only that the developer run coding for the program. This is possible because the system only runs when in use and as a result is hardly idle. This is beneficial for organizations using this infrastructure as they will only pay for the bandwidth they use as opposed to paying a fixed monthly fee. This is night and day when compared to traditional server-based networks (or “client-server” networks) which are far more difficult and costly to manage. 

Cloud computing services run serverless architectures to handle the level of data being processed by the platforms they’re serving. This allows developers to oversee the application in a decomposed state and focus on building and running services. An example of a company that uses a serverless architecture is Netflix. Netflix uses Amazon Web Services Lambda (AWS) to keep up with the amount of stored and processed data as well as scaling servers to the requirements of a network with a high volume of users. Now, this is not suggesting that serverless computing is only necessary for platforms with a huge budget and millions of users. Any business can use this whether it's IT, health care, retail, banking, manufacturing, and more.

In our increasingly digital society, a vast number of industries are moving towards scalability to be able to effectively operate while delivering a high quality of service to clientele. Let’s break down this information into digestible segments so you can understand whether serverless computing is going to benefit your business or not:

FaaS

This is the ground floor in the skyscraper of the serverless computing architecture. With the integration of cloud computing came services that not only managed applications but operated and innovated them. This is where FaaS (Functions as a Service) is important as it is what allows developers to maintain and build on the application without having to worry about the servers in the back-end. Additionally, this allows developers to update code when responding to a user's request within the application. AWS Lambda is an example of FaaS; when Netflix users navigate through the platform by selecting and searching, the FaaS system is ready to respond. 

Scalability

It always comes back to this with cloud computing because there is no other way for a business to tailor its resources to the demands of its platform. If there is high traffic, more servers can be up and running to accommodate the requests and prevent a crash. Additionally, the resources can minimize themselves in times where there’s a low volume of requests which prevents wasted money.

Event-Based System 

Going back to the statement that applications are decomposed when they go serverless, this is used so components of the application operate autonomously. The benefit of this is that if there is an issue, it only affects a minute part of the log. As opposed to stream-based where each service is interconnected. 

Being UX-Oriented

The end-users of an application will have high standards for the experience aspect of your service as this is what allows you to retain clientele. Since architecture is now a low priority for developers, it allows them to focus on UX (user experience). This aspect is central not only to maintaining the application but to building a business that will expand in all directions. Now, it must not be forgotten that the user interface (UI) is central to UX.

Limitations

So now we’ve looked at all the upsides to serverless architecture, but there are two sides to every coin. If this is something worth considering implementing in your business, you must know the limitations of the service:

Reboots

In some cases, functions can become cold when faced with idleness requiring a “cold start”. This is when you’ll need to manually go into the system and invoke the functions to get them used to operate again. Cold starts can be mitigated by giving the system some level of activity, typically this involves going in once in a while to process requests.

Relying on a Third Party

The providers of your serverless architecture become the backbone of your application's operation. This limits your control and you may be subject to changes that come unexpectedly. This will of course be subjective based on the terms and conditions of the agreement you enter with your provider.

Best For Platforms With Fluctuating Volume

If your platform has a consistent workload, then serverless may not be the best option as scalability is not entirely necessary. For example, a web app whose visitor volume doesn’t go up or down significantly would not need to adjust its servers to relatively constant traffic.

Final Thoughts

Serverless computing will benefit developers and consumers just as much as business owners. This could save resources and allocate time to priorities, getting you ahead of the game by miles. Your users will love the flexibility just as much as you. However, implementation will not happen overnight and should instead be gradual to ease everyone under your IT umbrella.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

Open Banking In North America: What Will Happen?

Have you done much financial planning? Do you have clear goals for your financial future? Or has this taken a backseat on your priority list? We’ve extensively discussed digital banking in terms of growth, functionality, and the overall economics of the FinTech industry. Seldom have we talked about the untapped potential that could dictate major growth and the concerns that make it “untapped”. Here we’re going to focus on an interesting concept known as “open banking” which could not only innovate the FinTech industry but the financial sector as we know it.

Since digital banking was first introduced to the public in 2018, its trajectory in use has risen exponentially. There are many reasons behind this growth and one of the big ones we’ve seen in parts of the world is the use of open banking platforms. This technology has been a dominant force for FinTech companies in Europe who, in 2020 alone, collected around 12.2 million users. By 2024 that number is expected to jump up to over 132 million. The numbers are impressive and the concept is not exclusive. Recently, Canada and the United States have speculated that the countries could soon join the wave and roll out their open banking platforms. However, many aspects need to be sorted out before this can happen.  

The main draw of open banking is that it provides a database for companies to understand the needs of their consumers and have easy access to that information with APIs (Application Programming Interfaces). What this means is that the software can access customer data and then make unique offers to users surrounding financial advice and planning. Of course, this raises security concerns, but the adoption is gradual. In the UK for example (where open banking is incredibly prevalent), FinTech companies are only allowed to use open banking platforms if authorized by the Financial Conduct Authority (FCA). 

Consumers who work with FCA-approved institutions are then able to compare interest rates, fees, and the financial management features of different products. Consumers can find a service that’s a good fit and companies can retain them. The point we’re getting at here is that without the regulation of open banking APIs, the future for FinTech platforms doesn’t include tailored service. However, it is best for this technology to take its time to develop since these platforms are the mediator between third parties and banking institutions where security assurance is non-negotiable. 

The goal in North America is to be able to have a regulator authority like that of the FCA which would be an exciting advancement in personal finance. However, it’s not there at the moment so for now let’s examine the state of open banking platforms in the US and Canada:

The United States 

The United States is no stranger when it comes to FinTech. In fact in 2019, American FinTech businesses reached nearly $60 billion in investments. This is without any full-featured open banking platforms. As of 2022 in the US, the closest technology to an open banking concept is known as “Screen Scraping”. Essentially, it functions as a way for third parties to access banking information with their users' permission and use that to deliver offers. It is similar in theory to open banking but nowhere near as advanced or secure for that matter.

This has proved to be useful for users but banks became frustrated with the third-party access which led to the creation of the Financial Data Exchange (FDX). Born out of conflict regarding screen scraping between third parties and banking institutions, this consortium was made to develop guidelines for accessing consumer data. This is still a work in progress for the most part but it will provide solutions to create a dominant technology down the line. Screen scraping is not a long-term solution which is where the FDX is expected to step up and sort out an alternative. The organization now has around 32 million consumers who rely on the exchange’s API to fuel their open finance.

Canada

There is no form of secure open banking in Canada as the government is still researching the safest implementation route for the country. During this review, the key concerns are based on the security of databases and customer privacy. Cyber attacks are a major concern for financial institutions (let alone those that work with third parties) as they not only threaten businesses in exchange for ransom but they could leak confidential information. 

In Canada alone, 85.7% of organizations had been hit by a cyber attack in 2021. 61.2% of those organizations were targeted with ransomware. Ransomware is a form of threat that locks up whatever information is necessary to get the victim to pay for its release. These statistics are extremely worrisome and they’ve been a big contributor to the country's skepticism around open banking which could be a big target. Now, this certainly has not deterred the country away from FinTech which in 2019 had grossed over $776 million in revenue for the Canadian sector. The following year, businesses saw investments reaching a total of over $6 billion. 

Overview

It is clear that Canada and the United States are thriving with FinTech. What open banking platforms would do for businesses in these countries is unforeseeable. When we look at countries that have embraced the platforms like the United Kingdom and Brazil, it’s seemingly all green lights. These places have created an environment for institutions to compete with each other and drive people toward the automation route. However, it is still not the dominant choice; a rough estimate states around 7% of Europeans use open banking. Would this be the same case in North America? Likely not as the continent is far more interested in technology than Europe, but nothing can be said for sure. It is still too new of a concept to pinpoint exact statistics so we can only base this on the trends we’re seeing. Specifically, the investments into FinTech companies in Canada and the United States sit at over $65 billion.

How Would Open Banking Benefit North America?

In North America, consumer culture is constantly moving towards automation and simplicity. This same concept is heavily relevant in finance (which people want access to from anywhere). Since everyone wants to feel ahead of the game and give their money to result-oriented advisors at low costs, open banking makes sense. Is this a lot to swallow? Most likely yes, and it sounds too good to be true because it’s not the reality of the accessible platforms in North America at this moment. Again, the security parameters and functionality are priorities before this can roll out nationwide. Personalization is everything to consumers. Open banking could take this a step further when properly integrated into FinTech platforms around the world.

The Takeaway

Think about how you shop on Amazon and watch Netflix or YouTube. These platforms have “more of what you like” algorithms that show you exactly that. Now are these sales tactics? Of course, FinTech and open banking are no different in that they are businesses and you are the consumer. However, is this a bad thing? Are these platforms wrong for doing this? No, it is simply a way of providing options and creating value based on what you already like. While we track everything from how many steps we take to how many hours we spend on our devices, open banking will allow us to set and track our financial goals.

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!

How to Use Design Thinking: IT Problem Solving Guide

When leading a tech company, you can expect to face complex issues that will tend to fall outside the “strictly technical” umbrella. When these issues arise, you’ll need to be able to think outside the box. The typical challenges that solution companies see involve systems, whether data sharing, working with varying technical architectures, or dealing with IT that is difficult to control, as seen with cloud computing. 

While we expect to run into challenges when working with technology, additional situations arise when running an IT service business. A client may have a particularly complex issue or your technicians may be struggling with the given timeline of a project. In these cases, every team will have methodologies they fall back on that can be useful. With that in mind, it must also be recognized that problem-solving doesn’t always happen from static approaches. 

Every team’s issues will be subjective and how to approach them is what we’re going to outline:

People, Process, Technology

Tech companies who have faced issues on an organizational level are likely aware of a popular response outlined as People, Process, and Technology (PPT). Brought to fruition during the 1960s and earning the name “the golden triangle”, PPT was designed to boost operational efficiency among employees. The premise behind this process is that it balances three crucial elements when dealing with a problem (the people, the process, and the technology). While using PPT, it is intended that those on the front line will rely on the companies' processes and technological resources to resolve issues. When it comes to a software company, most will employ this for IT management since these are the main elements at play.

In the modern day, however, the issues seen in the IT spectrum are heavily varied since companies and technology function much differently than they did 50 years ago. Some big contributors to this shift are the introduction of cloud computing, AI, and the internet which are automated systems with complex software. Traditional problem solving for technology (like that of PPT) tends to focus on task performance as opposed to dealing with the unknown.

Oh and there’s one more factor left out of the framework… Creativity. This is where the concept of design thinking came into play. It involves focusing on the stakeholders within an issue, the technological resources, what is required for the business to be successful, and then brainstorming solutions as a team to materialize an outcome. Noticeably, the framework of PPT is embedded within the concept, which gives it some level of familiarity for those utilizing it.

How Can We Use Design Thinking?

When you’re working in IT you can get used to implementing so much that creativity takes a back seat. The concept of design thinking can be thought of as a practice as well as an ideology. Similar to the “balanced triangle'' we saw in PPT, design thinking follows its outcome-driven phases. In his 2009 Ted Talk, Tim Brown, a popular designer from the UK and a connoisseur of design thinking describes the process of design as “balancing desirability with technical feasibility and economic viability”. 

There is an art form to traditional methods of design and they are not limited to artistic practice. Creativity is a tool meant to construct a resolution for the needs of any given situation. This is the framework that design thinking is based on. By tapping into creativity, you’ll avoid static development approaches. Though it is an intuitive concept, implementation is often where challenges are found. To get a better understanding, here’s a list of the phases involved in design thinking (in no particular order):

• Empathize: Since this approach emphasizes the people, it is best to view the problem from the perspective of the end-user. This will allow leadership to detach from presumptions and focus on resolving from a neutral level. 

• Define: Once you’ve empathized with the stakeholders and made an analysis you’ll now define what the clear issues are. Drafting a problem statement (Point of View) is a great way to do this as your considerations will, again, be from the user's perspective. For example “if we don’t do x,y, or z to mitigate this issue then we can expect this” or “the previous process keeps running into this wall, let's overcome that before anything else”. Simply put, remove assumptions and deeply consider the problem (define) then you can develop a solution. 

• Ideate: Based on the knowledge you’ve gathered from the last two phases, you’ll now begin brainstorming. Since your perspective is in line with filling specific gaps that you’ve identified, there should be a variety of concepts on the table. From there, build on ideas to reach the desired outcome.

• Prototype: Branching off of the ideate phase, you’ll now want to get hands-on with your solutions. This is done by developing a variety of samples of the product that can be tested at a low cost. From there, you’ll be ready to move on to the final phase. 

• Test: After developing the prototype version of your solution, what's left is making sure it works. Running tests is how you mitigate risk by building on areas that will prevent future issues. 

IT Example

If you look at a software implementation process, when examining the needs of the customer, there’s a tendency to focus solely on the technology. What’s more important at that moment however is considering the need it’s being built to fill. This is when the phases of design thinking are useful. Using creativity to identify challenges and brainstorm methods to mitigate them for the end-user makes the software selection process much more efficient. Once the software is selected, the team will make the necessary changes and have the user run tests to ensure that it fills the recipient's needs. 

Everyday Examples

While we’ve focused on how to apply design thinking in IT, you should understand that this methodology has carry-over. Imagine you’re a mechanic and you’ve brought a car that the owner claims needs an oil change because there is a “knocking sound in the engine”. You can take the customer's word for it or dive deeper and find out that there is an issue with the spark plugs. 

You likely get the idea at this point, that design thinking is handling issues with care by doing the extra steps to ensure issues are resolved for good. Designers apply this in their work and it is what makes innovation so useful to people. It’s difficult to walk across all 50 states, so we made cars, trains, and planes. A machine needs more memory so we created RAM. The examples are endless.

Takeaway

Ideas aren’t created out of standard practices or strictly followed processes. Every idea is formed once someone’s mind is free to think. Design thinking is breaking the chains of capped potential by avoiding standardized reactions. Try this out with the little things first, start with the next time you find yourself in conflict by considering the situation from the other person's perspective. Detach and decide, notice how the outcome changes when you do so. 

Written By Ben Brown

We work with successful companies to increase their net profits using exceptional custom software solutions, contact us here to see how we can help your business grow!