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Etsy Announces Move to Google Cloud

investors.etsy.com

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Re: Etsy Announces Move to Google Cloud

#121

Earlier quoted context omitted.

Disclaimer: I worked at Etsy, a long time ago. > The next group, headed by Chad Dickerson and Allspaw, seemed like they wanted to focus on technology for technology’s sake, more than what Etsy was actually doing with that as a company. I think you're missing quite a bit of this story. I was around during the transition of Chad from CTO -> CEO, and the truth is that Etsy needed to focus on the technology badly during…

Agreed, there is a whole lot more to the story that sadly this comment area is too small to contain. Dickerson and Allspaw definitely did a great job of modernizing Etsy from the relatively ragtag team that operated it prior, and it seems pretty robust now. That’s great – for their engineering department. What about the guiding vision for their core business? It’s not enough to make IT top notch when their overall ai…

> That’s great – for their engineering department.

Well, no - it's great for you too. Nobody can buy anything if the site is down. First-time buyers are especially sensitive to that. If their first experience with Etsy is a timeout page they won't be back (we actually had numbers asserting as such). Amazon famously wrote that 100ms of additional latency cost them 1% of sales, and Etsy is very similar in that regard.

> What about the guiding vision for their core business? It’s not enough to make IT top notch when their overall aim is floundering.

The guiding vision was, and likely still is, to have Etsy be what it is today (but with much better execution, obviously). Amazon with a more hand-made slant to it.

I saw this frequently when I was there - sellers want Etsy to be more like ArtFire or ArtYah is now, but that's not what Etsy's leadership and funders want Etsy to be. They want Etsy to be Amazon, but for unique items.

Now sure, that's not what Rob Kalin wanted it to be. But that vision was lost years ago, way before Chad et. al took over.

> As a customer and developer, I frequently felt that their communications and decisions missed the mark and heard this from fellow customers continually.

No argument there. The decisions usually made sense internally, but the external communications were poor. I would not be surprised to find out it's part of why the C-suite was gutted. I'm really sorry you had to be a customer during that phase. Seriously.

> Etsy needs to be run by artists and retailers, not technologists.

They tried that. Rob Kalin is an artist, through and through.

Turns out artists don't always make great business leaders. And let me tell you, definitively, Rob Kalin would have ruined that company had he stuck around for much longer than he did.

> Part of the problem is that they want to address the things like eliminating mass produced goods as technology problems, to be eliminated with the right algorithm.

It is a technology problem. Etsy can't possibly afford to hire enough people to sift through items manually looking for mass-produced goods. They'd go bankrupt. The marketplace is just way too big for that.

Etsy can remain a small marketplace and do that, which is I'm guessing your preference, but that's not the preference of the VCs who backed Etsy. Unfortunately, money has the final say.

Re: Etsy Announces Move to Google Cloud

#122
post #33

Found some interesting contrasting statements from 2015 [1]: > The company performed big data jobs early on in the cloud, using Amazon's Elastic Map Reduce service. > “That [EMR] got us to a place where we think about what data we collect. At the time it was really inefficient from a cost perspective, but there weren’t any creative constraints,” > The team eventually decided to bring it in house. “Our Hadoop cluster…

EMR is really expensive, especially you are using spot instances. It is roughly $2 for the EMR tax on $1 instance

Re: Etsy Announces Move to Google Cloud

#123

Earlier quoted context omitted.

It's about bin packing. Underutilized servers can have more VMs packed into them. Not physical servers sitting around unused, but additional capacity on in-use machines.

you can do `bin packing` with k8s as well. Allowing you to have a best of both worlds. From k8s webpage ( https://kubernetes.io/ ): "Automatically places containers based on their resource requirements and other constraints, while not sacrificing availability. Mix critical and best-effort workloads in order to drive up utilization and save even more resources."

Bin packing is the actual academic term for this class of problems so the intended snark in using quotes is a bit misplaced.

Furthermore, running k8s to pack containers into AWS instances that are are themselves actually full blown VMs running on a hypervisor is of course one way to do computing. It is perhaps worth considering that there are others, more direct ways that can be achieved more economically.

Re: Etsy Announces Move to Google Cloud

#124

Earlier quoted context omitted.

Agreed, there is a whole lot more to the story that sadly this comment area is too small to contain. Dickerson and Allspaw definitely did a great job of modernizing Etsy from the relatively ragtag team that operated it prior, and it seems pretty robust now. That’s great – for their engineering department. What about the guiding vision for their core business? It’s not enough to make IT top notch when their overall ai…

> That’s great – for their engineering department. Well, no - it's great for you too. Nobody can buy anything if the site is down. First-time buyers are especially sensitive to that. If their first experience with Etsy is a timeout page they won't be back (we actually had numbers asserting as such). Amazon famously wrote that 100ms of additional latency cost them 1% of sales, and Etsy is very similar in that regard.…

I realize that snappy pages help, as an engineer myself (who often depended on Etsy's API responses...). I appreciate the great job they did taking Etsy from the substandard heap it was circa 2009 to where it is now. My point is that Etsy needed more of a guiding light than their engineering department providing effective technology.

Rob Kalin was not an artist - what was his art, Swimmy? BS? A couple wooden computer cases? In my perception he was a con-man hipster who dabbled in craft. I have no praise for him or anything he did, and am not suggesting his vision, whatever it was, or certainly his management, would have been better. I believe he is the one who imbued Etsy with a toxic culture from which that they are still suffering. One inept conman doesn't disprove 'artists' being management, and that's not what I called for - someone with retail experience would be nice, ideally online as well as the typical setting where Etsy members sell their wares offline like art galleries, craft fairs, jewelry stores, boutiques, and so forth.

All the time I've dealt with Etsy, I've heard the excuse that it's impossible for them to police their market place in any sort of pro-active way. But the sellers in each category have no problem finding obvious violations in their categories every day, and reports have never been dealt with logically and promptly. I, and others, gave up reporting mass production and resellers after it seemed futile due to lack of response, or even Etsy would claim items that seemed like clear violations were not violations.

I don't have a preference for Etsy's future, as I gave up attempting to use it years ago and have recommended to my friends and clients for years that they buy a domain and set up a shop they actually control, using shopify or big cartel to make it simple.

Re: Etsy Announces Move to Google Cloud

#125

Earlier quoted context omitted.

Agreed, there is a whole lot more to the story that sadly this comment area is too small to contain. Dickerson and Allspaw definitely did a great job of modernizing Etsy from the relatively ragtag team that operated it prior, and it seems pretty robust now. That’s great – for their engineering department. What about the guiding vision for their core business? It’s not enough to make IT top notch when their overall ai…

> That’s great – for their engineering department. Well, no - it's great for you too. Nobody can buy anything if the site is down. First-time buyers are especially sensitive to that. If their first experience with Etsy is a timeout page they won't be back (we actually had numbers asserting as such). Amazon famously wrote that 100ms of additional latency cost them 1% of sales, and Etsy is very similar in that regard.…

https://news.ycombinator.com/item?id=15930796

If MySpace could employ people to sit around looking for the wrong pornography, Etsy could employ people to look through their marketplace for the wrong stores. This article explains exactly where we are at: solving the problem technologically hasn’t worked yet, and you have to have actual people look at it.

Some knock-off mass produced junk is just as jarring when set amongst handmade art as pornography is when set among family pictures, if you’re an artist. People paying Etsy hundreds of dollars a month for their stores deserve a clean marketplace, and Etsy could hire a dozen human reviewers for the cost of one or two engineers.

Of course, since my time, Etsy has slowly expanded their rules so that many of the things that would not be allowed six years ago are now encouraged.

Re: Etsy Announces Move to Google Cloud

#126
post #112

Another DC to cloud story! I love these! It's like watching a play in 3 acts: Act 1) Yay, we did it, we're gonna save so much money! Act 2) [a year later] Wait, we're spending how much money?!? Act 3) It's going to cost us how much to leave our current cloud?!? Haven't people figured out yet that cloud companies make a profit? Sure, companies like Etsy can get a huge discount, but everyone else who isn't a big name i…

That's not how any of this works. Boeing makes a profit, but how much money will it cost to design and make a plane from scratch?

> That's not how any of this works.

Weird then, considering that I've seen >5 companies go through that process. Something that you say doesn't work one way clearly does.

Planes are vastly different than data-centers. Depending on what you need, a brand new data-center can run as little as a couple hundred dollars for a server + parts, and <$30 / month on everything else. What is the cheapest plane you can buy?

Re: Etsy Announces Move to Google Cloud

#127

Earlier quoted context omitted.

> That’s great – for their engineering department. Well, no - it's great for you too. Nobody can buy anything if the site is down. First-time buyers are especially sensitive to that. If their first experience with Etsy is a timeout page they won't be back (we actually had numbers asserting as such). Amazon famously wrote that 100ms of additional latency cost them 1% of sales, and Etsy is very similar in that regard.…

I realize that snappy pages help, as an engineer myself (who often depended on Etsy's API responses...). I appreciate the great job they did taking Etsy from the substandard heap it was circa 2009 to where it is now. My point is that Etsy needed more of a guiding light than their engineering department providing effective technology. Rob Kalin was not an artist - what was his art, Swimmy? BS? A couple wooden computer…

> My point is that Etsy needed more of a guiding light than their engineering department providing effective technology.

They had that, though. Amazon for unique items.

I think that's just not the guiding light you wanted for Etsy, but it's been there for a long time. They were missing the technology ~2009 up until a couple years ago. It was absolutely the most important problem at Etsy at that time. Now? I'll agree, not so much.

> Rob Kalin was not an artist - what was his art, Swimmy? BS? A couple wooden computer cases? In my perception he was a con-man hipster who dabbled in craft.

I have no love lost for Rob Kalin as a CEO, and I would never work in a business run by him again, but this is an extremely unfair characterization of him.

He's an artist. Sorry. To call him otherwise is to pull a "no true scotsman."

> someone with retail experience would be nice, ideally online as well as the typical setting where Etsy members sell their wares offline like art galleries, craft fairs, jewelry stores, boutiques, and so forth.

Etsy had plenty of people like that in senior leadership roles. Not the C suite, sure, but high up there.

I also don't see any reason why Etsy needs people like that, to be honest. Bezos had little (if any) retail experience before starting Amazon. Clearly hasn't impeded them any.

> All the time I've dealt with Etsy, I've heard the excuse that it's impossible for them to police their market place in any sort of pro-active way. But the sellers in each category have no problem finding obvious violations in their categories every day, and reports have never been dealt with logically and promptly.

You're grossly unaware and underestimating of the volume of support emails Etsy got (and probably it's even worse now).

Sellers outnumber Etsy employees by a godawful amount. Reports outnumber Etsy employees by a godawful amount. Not sure if it's still the case, but we used to have so many reports that we needed employees to all go on rotations where they answered emails and went through reports.

I personally must've gone through close to 1,000+ support emails and reports a year during my time there just doing these support rotations. The full-time community staff probably handled that much each day, if not more.

Even with all that, I bet we answered maybe 25% of all reports and emails. And this was way, way before the IPO.

> I don't have a preference for Etsy's future, as I gave up attempting to use it years ago and have recommended to my friends and clients for years that they buy a domain and set up a shop they actually control, using shopify or big cartel to make it simple.

That's fine, but I think it's naive to assume Etsy's future would look anything other than this. Actively managing a marketplace of Etsy's size is a technology problem.

You can bring up Myspace/etc. all day, but don't forget that in addition to monitoring for resellers and mass produced goods Etsy also has to watch out for:

1) Illegal activity e.g. money laundering 2) Pornographic/inappropriate items 3) Scammers 4) Legitimate support complaints (missing items etc.) 5) General complaints (I don't like this new feature, etc.)

Support staff monitoring all of those numerous issues would bankrupt Etsy, even if they did farm it out to a developing nation for pennies.

Re: Etsy Announces Move to Google Cloud

#128

Earlier quoted context omitted.

I realize that snappy pages help, as an engineer myself (who often depended on Etsy's API responses...). I appreciate the great job they did taking Etsy from the substandard heap it was circa 2009 to where it is now. My point is that Etsy needed more of a guiding light than their engineering department providing effective technology. Rob Kalin was not an artist - what was his art, Swimmy? BS? A couple wooden computer…

> My point is that Etsy needed more of a guiding light than their engineering department providing effective technology. They had that, though. Amazon for unique items. I think that's just not the guiding light you wanted for Etsy, but it's been there for a long time. They were missing the technology ~2009 up until a couple years ago. It was absolutely the most important problem at Etsy at that time. Now? I'll agree,…

Thanks, I’d love to respond to this when I have the chance.

As far as Rob Kalin, you didn’t answer the question - what is his art? What medium? I’m a member of a group that doesn’t have to stretch, claim or pretend to be artists, since we make things out of hot glass all day and it’s really obvious.

I find it odd that you’re convinced he’s an artist, but I’ve never seen any of his art. Are you referring to his personality? Does he actually create craft or art? Was he ever self employed to trying to sell it for a living?

A couple of times here, you are using outliers to try to prove broad principles: Kalin proves that artists wouldn’t know how to run Etsy, and Jeff Bezos proves that a retail background doesn't help to build a retail website. Hmm, I would be hesitant to draw conclusions like that.

Overall, Etsy is irrelevant to people like me, who were the people that it was nominally created for originally. Obviously, it was taken over by investors who don’t care at all about the original mission. What I’m still judging at by is the original intent, which they never managed to achieve.

Re: Etsy Announces Move to Google Cloud

#129

Earlier quoted context omitted.

> Waiting for hardware allocation. Once you get to a certain size you have hardware spare Requisitions for non-cloud server resources can takes hours, days, and in some places weeks; even when there is availability depending on the org. At best it takes close to an hour compared to a few seconds in the cloud via a web dashboard.

You can use virtualization on prem; it’s trivial. No one is still racking hardware on demand. Don’t want to use Xen or KVM? Kubernetes is your solution if you’re a containers shop. On prem delivery/provisioning is not slower when executed properly.

Could be wrong but I don't think virtualization or container technology is the blocker. It's the software that keeps track of who's allowed to use it and who's currently using it that's the problem. With AWS it's easy, because you pay money for the privilege. It's harder for large orgs, when divisions and teams don't directly pay to access servers. 3rd party clouds solve the issue when teams are given budgets to use them.
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