Skip to content
Gigaspaces Logo Gigaspaces Logo
  • Technology
    • Our Technologies
      • In-Memory Data Grid
      • Data Integration
      • Data Operations by Multiple Access Methods
      • Unified Data Model
      • Event-Driven Architecture
      • Kubernetes
      • Multi-Region Replication
      • Security
      • Storage Tiering
    • Data Lakes or Digital Integration Hubs: Which one is better suited to solve the “IT GAP”?
      vid-icon Blog

      Enterprises, more than ever, require modernization of their backend and middleware architecture to improve performance for the digital age, facilitate lower TCO of their infrastructure, and optimize the moving parts of the IT and digital services departments.

      Learn More
    • Contact Us
  • Products & Solutions
    • Products
      • Smart DIH
      • Smart Cache
    • Industry Solutions
      • Financial Services
      • Insurance
      • Retail and eCommerce
      • Telecommunications
      • Transportation
    • Performance Benefits of HPE Superdome Flex Server with GigaSpaces
      vid-icon Whitepaper

      Learn about the combination of HPE Superdome Flex server and GigaSpaces in-memory data processing delivers extreme performance; in more than 99% of cases, latency was less than one millisecond for a data query.

      DOWNLOAD
    • Contact Us
  • Resources
    • Content Hub
      • Webinars
      • Videos
      • Solution Briefs & Whitepapers
      • Customer Case Studies
      • Use Cases
      • Events
      • Analyst Reports
    • col3
      • Blog
      • Technical Documentation
    • Digital Integration Hub: The Architecture of Digital Transformation
      vid-icon Blog

      Learn how a Digital Integration Hub (DIH) connects to multiple systems of record and data stores regardless of whether they reside and aggregates operational data into a low-latency data fabric, supporting modernization initiatives by offloading from legacy architecture and providing a decoupled API layer to power modern on-line applications.

      LEARN MORE
    • Contact Us
  • Company
    • Col1
      • About
      • Customers
      • Management
      • Board Members
      • Investors
      • Events
      • News
      • Careers
    • col2
      • Partners
      • OEM Partners
      • System Integrators
      • Technology Partners
      • Value Added Resellers
    • col3
      • Support & Services
      • University
      • Services
      • Support
    • Getting Digital Transformation Right with Avanza Bank
      webinar-icon On-Demand Webinar

      Watch the webinar for a compelling and insightful talk with Joakim Sahlström, CTO at Avanza Bank, who shares his vision for banks in the digital age and how you can simultenously overcome architectural challenges while successfully leveraging new technologies to develop and deploy innovative digital services.

      WATCH NOW
    • Contact Us
  • Contact Us
  • Technology
    • Our Technologies
      • In-Memory Data Grid
      • Data Integration
      • Data Operations by Multiple Access Methods
      • Unified Data Model
      • Event-Driven Architecture
      • Kubernetes
      • Multi-Region Replication
      • Security
      • Storage Tiering
    • Data Lakes or Digital Integration Hubs: Which one is better suited to solve the “IT GAP”?
      vid-icon Blog

      Enterprises, more than ever, require modernization of their backend and middleware architecture to improve performance for the digital age, facilitate lower TCO of their infrastructure, and optimize the moving parts of the IT and digital services departments.

      Learn More
    • Contact Us
  • Products & Solutions
    • Products
      • Smart DIH
      • Smart Cache
    • Industry Solutions
      • Financial Services
      • Insurance
      • Retail and eCommerce
      • Telecommunications
      • Transportation
    • Performance Benefits of HPE Superdome Flex Server with GigaSpaces
      vid-icon Whitepaper

      Learn about the combination of HPE Superdome Flex server and GigaSpaces in-memory data processing delivers extreme performance; in more than 99% of cases, latency was less than one millisecond for a data query.

      DOWNLOAD
    • Contact Us
  • Resources
    • Content Hub
      • Webinars
      • Videos
      • Solution Briefs & Whitepapers
      • Customer Case Studies
      • Use Cases
      • Events
      • Analyst Reports
    • col3
      • Blog
      • Technical Documentation
    • Digital Integration Hub: The Architecture of Digital Transformation
      vid-icon Blog

      Learn how a Digital Integration Hub (DIH) connects to multiple systems of record and data stores regardless of whether they reside and aggregates operational data into a low-latency data fabric, supporting modernization initiatives by offloading from legacy architecture and providing a decoupled API layer to power modern on-line applications.

      LEARN MORE
    • Contact Us
  • Company
    • Col1
      • About
      • Customers
      • Management
      • Board Members
      • Investors
      • Events
      • News
      • Careers
    • col2
      • Partners
      • OEM Partners
      • System Integrators
      • Technology Partners
      • Value Added Resellers
    • col3
      • Support & Services
      • University
      • Services
      • Support
    • Getting Digital Transformation Right with Avanza Bank
      webinar-icon On-Demand Webinar

      Watch the webinar for a compelling and insightful talk with Joakim Sahlström, CTO at Avanza Bank, who shares his vision for banks in the digital age and how you can simultenously overcome architectural challenges while successfully leveraging new technologies to develop and deploy innovative digital services.

      WATCH NOW
    • Contact Us
  • Contact Us
  • Technology
    • In-Memory Data Grid
    • Data Integration
    • Event-Driven Architecture
    • Kubernetes
    • Data Operations by Multiple Access Methods
    • Multi-Region Replication
    • Security
    • Storage Tiering
    • Unified Data Model
  • Products & Solutions
    • Products
      • Smart DIH
      • Smart Cache
    • Solutions
      • Industry
        • Financial Services
        • Insurance
        • Retail and eCommerce
        • Telecommunications
        • Transportations
    • Roles
      • Architects
      • CXOs
      • Product Teams
    • Contact Us
    • Try Free
  • Resources
    • Resource Hub
      • Webinars
      • Demos
      • Solution Briefs & Whitepapers
      • Customer Case Studies
      • Benchmarks
      • Cost Reduction Calculators
      • Analyst Reports
    • Blog
    • Technical Documentation
    • Contact Us
    • Try Free
  • Company
    • About
    • Management
    • Customers
    • Board Members
    • Investors
    • Events
    • News
    • Careers
    • Partners
      • OEM Partners
      • System Integrators
      • Technology Partners
      • Value Added Resellers
    • Support & Services
      • University
      • Services
      • Support
  • Contact Us
  • Try Free

Amazon Found Every 100ms of Latency Cost them 1% in Sales

Subscribe to our blog!

Subscribe for Updates
Close
Back

Amazon Found Every 100ms of Latency Cost them 1% in Sales

3min. read
Yoav Einav January 20, 2019

10 years ago, Amazon found that every 100ms of latency cost them 1% in sales. Google found an extra .5 seconds in search page generation time dropped traffic by 20%. A broker could lose $4 million in revenues per millisecond if their electronic trading platform is 5 milliseconds behind the competition.

The expectations of today’s NOW customers continue to grow and the amount of data generated and accessed is mind boggling. Bernard Marr, in his article in Forbes describes how 2.5 quintillion bytes of data  are generated every day and that over the last two years alone 90 percent of the data in the world was generated.

It is clear, that the need for speed and scale are escalating and enterprises need to understand how they can support current and future applications to remain competitive from all aspects: optimized operations, regulation adherence and enhanced customer experience.

So, we’ve decided to put together some of the latest statistics discussing not just the cost of latency but also the positive influence on customer satisfaction and growth in sales when a site responds at the desired speed.

Solution Paper: Learn how to drive successful digital transformation >>

Fast forward 10 years later
A 2017 Akamai study shows that every 100-millisecond delay in website load time can hurt conversion rates by 7% – that is a significant drop in sales – 6% – from the time when Amazon first talked about latency in seconds and milliseconds. This goes to show that things aren’t getting any easier for online retailers as user experience is becoming critical to e-commerce success.

In 2018, Google shared the following infographic on mobile page load industry benchmarks:

 

Mobile page load industry benchmarks

Figure 1: Mobile page load industry benchmarks

 

Latency is not an option anymore
The less interactive a site becomes the more likely users are to simply click away to a competitor’s site. Latency is the mother of interactivity.

Additionally, as enterprises start leveraging real-time analytics for personalized recommendations and dynamic pricing services, speed is becoming even more imperative.

How do we recover that which is most meaningful–sales–and build highly available, low-latency systems that scale and at the same time retain performance?
The first thing to understand is that Tier Based Architectures with their mish-mash of separate cluster implementations are not only state bound at each tier but are also complex to manage and maintain. The ability to unify real-time analytics and extreme transactional processing further simplifies the architecture, leveraging the scalable distributed in-memory computing fabric for low latency performance.

Peakload of 20X normaltraffic shown for this year's BlackFriday

Figure 2: Peakload of 20X normaltraffic shown for this year’s BlackFriday

A great example can be seen from a customer of ours, PriceRunner, who has designed their architecture to flexibly and quickly scale out when necessary without compromising performance and speed. This past Black Friday, when visitor traffic peaked at 20 times higher, in parallel with 100 million price updates, PriceRunner response time for the 95th percentile of the product page endpoint remained within the 5-8 millisecond range.

If you are interested in learning more about the benefits of a converged real-time data pipeline platform, you can read our whitepaper.

Original Author – Nati Shalom
Updated by Yoav Einav, 2019

SHARE:

Share this Article

Tags:

Hybrid Cloud Cloud Machine Learning Cloud Services Business Continuity financial services

Subscribe to Our Blog



PRODUCTS & SOLUTIONS

  • Products
    • Smart DIH
    • Smart Cache
  • Solutions
  • Industry
    • Financial Services
    • Digital Banks
    • Insurance
    • Retail and eCommerce
    • Telecommunications
    • Transportation
  • Technical
    • Operational BI
    • Mainframe & AS/400 Modernization
    • In Memory Data Grid
    • Hybrid Cloud Data Fabric
    • Multi-Tiered Storage
    • Kubernetes Deployment
    • Streaming Analytics for Stateful Apps