Transaction Processing Discussion

1. Transaction ProcessingDiscussion

2. Discussion Question 1: eBay and Amazon have been competing with each other for some time. Between the two companies, one observation is that Amazon has continued to innovate and adapt, while eBay has basically held steady. Discuss eBay’s opportunities over its rivals. What areas it should span, or what technology it should invest, in order to maintain its strength and growth?

3. The World of Internet Business

4. eBay's New Tough Love CEO • John Donahoe assumed the role of CEO on March 31, 2008 • "The market is saying that they are in real big trouble,“ • Buyers and sellers are trying out rival Web sites, Amazon, Google, Etsy • Investors has grown as the company's shares have lost half their value over the past three years • Donahoe is planning major investments in technology, including ways that will make it easier for buyers to browse and find goods. "We need to aggressively change our product, our customer approach, and our business model“ • The core auction and retail businesses, which account for the majority of revenue, are showing signs of weakness. • The number of active users has been flat for three quarters, at 83 million. • The number of new products listed on the site has inched up only 4% from a year ago. • And the number of stores selling goods at fixed prices on eBay has actually declined from a year earlier, to 532,000. • Need to push eBay to be more innovative. "EBay has to be more aggressive and think about strategic planning five to 10 years down the line" EBay's New Tough Love CEOBusiness Week, January 23, 2008, Forbes, Feb. 2008

5. Net Revenue by Type Source: EBAY INC. REPORTS FIRST QUARTER 2008 RESULTS

6. Supplemental Operating Data Source: EBAY INC. REPORTS FIRST QUARTER 2008 RESULTS

7. How about Amazon & Google ? • Amazon's investments in technology have made it easier for buyers to find what they want from sellers. There's also more of a sense of trust among its users because Amazon stands behind most third-party transactions. • Google has its own payment system called Checkout • On eBay, it can be extremely difficult to get your money back if you're burned by a seller or buyer. • eBay needs to better integrate its auctions with the fixed price shopping convenience offered at sites like Amazon.com • Keep the excitement of winning an auction while providing the easy, convenient option of buying at a set price

8. Pick A Strategic Path • Focus on the one thing that it does best and penetrate new markets • Credit card use is increasing in China and India • In 2003, eBay acquired Chinese company Eachnet to launch its operations in the country. However, in 2006, when eBay put its Chinese operation into a joint venture with Tom Online(掏寶網), a local wireless Internet company, analysts viewed the move as a retreat for eBay. • Take its core competencies and expand into related businesses where its auctions are a complement • Expanding into new but auction-related businesses through acquisition • PayPal and Shopping.com • EBay can use the social nature of its site to create new tools that could improve the rate of purchases, gain more "wallet share" from its existing customers.

9. Making eBay "Easier And Safer to Use" • Competition has eroded much of the advantage that eBay once had • Roll out new search technology in certain categories that enables shoppers to look for specific items based on relevancy and to narrow their results by color, brand, size, and other features • Launched a new photo-focused service that allows users essentially to window shop for things, rather than read through long descriptions beside small thumbnail images • Address few areas--including fraud, the difficulties some have in navigating through the site and the need for better search tools.

10. Perfect The Basics • Marry the value-selection fun created by auctions with the convenience and opportunity inherent in fixed price • Rework search abilities, making it easier to add pictures to listings, and is changing its web site to improve the company's merchant rating system • EBay's challenge is to launch innovative new services, either through acquisitions or experimentation within the company EBay's New Tough Love CEOBusiness Week, January 23, 2008,

11. eBay Disruptive Innovation • Both sides of eBay marketplace • Attracting and retaining continued stream of buyers • Internet era, consumer is always evolving • What’s new?

12. Fun Projects eBay Desktop 1.0 (February 26, 2008) the enhanced eBay Desktop application that lets users search, bid/receive alerts, and more eBay Flyer (December 21, 2007) print out your awesome auction in an easy to read format, ready for posting on a local bulletin board eBay Marketplace on Facebook (August 21, 2007) eBay + your Facebook friends = sheer genius. Post, brag and peek at your favorite eBay friends and items. alerts, and more eBay Countdown (July 20, 2007) watch, bid and win auctions using a live clock and instant bidding with eBay Countdown Bid Assistant (May 17, 2007) having trouble winning an item? create a group of items you’re interested in, set your maximum bids, and Bid Assistant will bid on your behalf until you win one item from the group eBay ToGo (April 30, 2007) show off eBay listings on any web page eBay Deal Finder (November 8, 2006) use eBay eBay Deal Finder to discover valuable items that others haven't including items with zero bids MapIt (October 1, 2006) find eBay items near you by plotting search results on a map eBay Matchups (September 1, 2006) pit your favorite items, celebrities, or concepts against each other in a popularity contest powered bye eBay

13. Fun Facts About eBay • 110 Million items for sale on the site • $59 Billion in gross merchandize value (GMV) per year • Approx $2,039 worth of goods traded on the site every second • 309 Million registered users • 2 Billion URL requests per day • 6,000 application servers with 12,000 Java processes • 40 Billion database requests per day • 300 different databases (over 700 instances) • 9 PB of data storage • 13 million lines of source code (In 2008 will surpass Windows NT 4.0 O/S 16 million lines) eBay’s vision is to help people everywhere connect, discover and interact with each other through commerce Source: MySQL in eBay’s Personalization Platform Chris Kasten, eBay Kernel Framework Group April 16, 2008 eBay 2007 Annual Meeting of Stockholders June 14, 2007

14. Find – Buy - Pay

15. Improve the Finding Experience • New Search Result

16. Improve the Finding Experience • New Search Result • New Search Landing Pages

17. Improve the Finding Experience • New Search Result • New Search Landing Pages • New Relevancy Based Listing Sort – Best Match

18. Improve the Shopping Experience • Bid Assistant

19. Improve the Shopping Experience • Bid Assistant • Detailed Seller Ratings – Feedback 2.0

20. Improve the Shopping Experience • Bid Assistant • Detailed Seller Ratings – Feedback 2.0 • Improved eBay Checkout

21. Improve the Shopping Experience • Bid Assistant • Detailed Seller Ratings – Feedback 2.0 • Improved eBay Checkout • Motors 2.0

22. Extend offering • eBay Express • Convenience oriented buyer • New search engine • Shopping cart

23. Extend offering • Tickets -StubHub • A leading secondary tickets marketplace • Best in class buying/selling experience

24. Improve Trust & Safety • Safeguarding Member ID’s • Selling limits on items favored by counterfeiters • Enhanced buyer protection

25. Background • Further distinguish the eBay shopping experience • Provide a more relevant and even better user experience • Provide users with a more rich experience with greater continuity • Provide users with the best selection tailored to their interests/profile • Provide better user experience through real time personalization data feedback loop that is immediately available • Provide users with tailored alternatives • Further distinguish the eBay business value proposition • Advertising shown to more relevant buyers • More effective merchandizing and marketing of items • Increase conversion rates through better buyer experience and greater relevancy of items presented to the buyer Source: MySQL in eBay’s Personalization Platform Chris Kasten, eBay Kernel Framework Group April 16, 2008

26. eBay Architecture • eBay Serves 5 Billion API Calls Each Month. • More and more traffic driven by mashups composed on top of open APIs • Everyday 26 billion SQL queries and keeps tabs on 100 million items available for purchase. • 1 billion page views a day, 105 million listings, 2 petabytes of data, 3 billion API calls a month • The database is virtualized and spans 600 production instances residing in more than 100 server clusters • 15,000 application servers, all J2EE. About 100 groups of functionality aka "apps". Notion of a "pool": "all the machines that deal with selling".. Lesson Learned Virtualize Components • Reduce physical dependencies. • Improve deployment flexibility. Scale Out, Not Up • Horizontal scaling at every tier. • Functional decomposition. Prefer Asynchronous Integration • Minimize availability coupling. • Improve scaling options.

27. eBay Personalization System General Vision Every Application Server Can Access Data For Every URL Request (All 2 Billion of them!) Session Data Personalization Data Chris Kasten : Bay Kernel Framework Group April 16, 2008

28. eBay Personalization System Application Servers MySQL Memory Engine Cache Tier Browser Persistent Database Chris Kasten : Bay Kernel Framework Group April 16, 2008

29. eBay Personalization System Application Servers MySQL Memory Engine Cache Tier 5 min Batched Write Back Replication Read/Write Cache Miss Read Persistent Database Chris Kasten : Bay Kernel Framework Group April 16, 2008

30. eBay Personalization System Overview • Replication optional based on criticality of data loss for past 5 min • Trade-off between data criticality versus double the memory cost • Some personalization data may not be critical enough for the additional hardware cost • Single threaded MySQL replication is generally problematic • Once replication falls behind it stays behind with continued traffic • Replication can be achieved via dual writes from the application server performed transparently by the framework • Second write to replica can be asynchronous • Automatic redistribution of data when node failure or draining a node Chris Kasten : Bay Kernel Framework Group April 16, 2008

31. How eBay Searches and Updates 100 Million Listings in 60 Seconds • The search infrastructure at eBay • eBay featured up to 100 million listings, and 60,000 changes per minute, now it takes only a minute or two for a new item to show up in the search engine • Instead of searching the entire database at once, eBay looks at nearly two dozen slices. Conducting smaller searches simultaneously at data centers in San Jose and Phoenix and elsewhere is much faster. The trick is then combining those sets of results to look like a single query.

32. Architectural Forces • Scalability • Resource usage should increase linearly with load • Design for 10x growth in data, traffic, users, rtc. • Availability • Resilience of failure • Graceful degradation • Recoverability from failure • Latency • User experience latency • Data Latency • Manageability • Simplicity • Maintainability • Diagnostics • Cost • Development effort and complexity • Operational cost (TCO) Randy Shoup, eBay Distinguished Architect

33. Architectural Strategies Strategy 1: Partition Everything • How do you eat an elephant?... One bite at a time Strategy 2: Async Everywhere • Good things come to those who wait Strategy 3: Automate Everything • Give a man a fish and he eats for a day… teach a man to fish and he eats for a lifetime Strategy 4: Remember Everything Fails • Be prepared Randy Shoup, eBay Distinguished Architect

34. Partition Database • Segment database into functional areas • Group data using standard modeling technique • Cardinality (1:1, 1:N, M:N) • Relationships • Usage characteristics • Logical hosts • Abstract application’s logical representation from host’s physical location • Support combining and splitting without code change User Item Transaction Product Account Feedback Randy Shoup, eBay Distinguished Architect

35. Application Server DAL ItemHost 0 ItemHost 1 ItemHost 2 ItemHost 19 Horizontal Split • Split database horizontally along primary access path • Multiple split approaches for different use cases • Modulo on key (item id, user id, etc.) • Aggregation / routing in Data Access Layer (DAL) Randy Shoup, eBay Distinguished Architect

36. Aggregator Col 1 Col 7 Col 4 Col 6 Col 3 Col 2 Col 5 Col 8 Col 1 Col 7 Col 4 Col 5 Col 2 Col 6 Col 8 Col 3 Col 1 Col 2 Col 3 Col 8 Col 4 Col 5 Col 6 Col 7 Col 1 Col 5 Col 4 Col 2 Col 3 Col 8 Col 6 Col 7 Col 1 Col 4 Col 6 Col 5 Col 7 Col 3 Col 2 Col 8 Search • Read-only search decoupled from write-intensive transactional database • Horizontal split, aggregate parallelizes query over N slices, load-balances over M instances Randy Shoup, eBay Distinguished Architect

37. Image Processing Summary Update User Metrics Async Everywhere • Message Dispatch ItemHost N Selling Randy Shoup, eBay Distinguished Architect

38. eBay Flyer

39. Bid Assistant http://innovation.ebay.com/?p=12

40. eBay Countdown

41. eBay To Go (beta)! Showcase your favorite eBay discoveries directly on your website or blog! Setting up eBay To Go™ is both easy and free. Create your widget now and make your website stand out!

42. eBay Deal Finder

43. Where did Map It go? • Map It was a prototype site designed to make it easy to find eBay items close to you. • Unfortunately, the eBay Map It prototype is no longer available. • What is was Map It? • Map It is a prototype site that is designed to make it easy to find eBay items near to you. It features a prominent zip code box as well as search results that are plotted on a map. • Why did eBay build Map It? • Map It was built by a couple of eBay’s internal developers as an example of what can be done using eBay’s APIs (which can be accessed publicly through the eBay Developers Program). Map It provides an entirely different way to look at eBay.

44. Sorry! eBay Matchups is closed What we used to say about Matchups: Have you ever wanted to put two things side by side and determine which is better? That’s a Match Up. And that’s what eBay Match Ups lets you do: create a Match Up, vote for the winners, and interact with other eBay members! Launched in September of 2006, eBay Matchups has grown from a private beta project built off of the eBay API to being home to one of most thriving and eccentric communities on eBay.