Facebook Twitter Gplus LinkedIn YouTube E-mail RSS
Home GigaSpaces Amazon found every 100ms of latency cost them 1% in sales.

Amazon found every 100ms of latency cost them 1% in sales.

The GigaSpaces CTO, Nati Shalom, dropped me a line recently pointing out a recent article on High Scalability, which is very interesting. There is an excerpt from the article below:

Latency matters. Amazon found 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 Amazon results were reported by Greg Linden in his presentation Make Data Useful. In one of Greg’s slides Google VP Marissa Mayer, in reference to the Google results, is quoted as saying “Users really respond to speed.” And everyone wants responsive users. Ka-ching! People hate waiting and they’re repulsed by seemingly small delays.

The less interactive a site becomes the more likely users are to click away and do something else. Latency is the mother of interactivity. Though it’s possible through various UI techniques to make pages subjectively feel faster, slow sites generally lead to higher customer defection rates, which lead to lower conversation rates, which results in lower sales. Yet for some reason latency isn’t a topic talked a lot about for web apps. We talk a lot about about building high-capacity sites, but very little about how to build low-latency sites. We apparently do so at the expense of our immortal bottom line.

I wondered if latency went to zero if sales would be infinite? But alas, as Dan Pritchett says, Latency Exists, Cope!. So we can’t hide the “latency problem” by appointing a Latency Czar to conduct a nice little war on latency. Instead, we need to learn how to minimize and manage latency. It turns out a lot of problems are better solved that way.

How do we recover that which is most meaningful–sales–and build low-latency systems?

Well, the answer to that questions is “you choose product that are built to handle your latency requirements whilst still allowing you to support scale”. Again it’s clear 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. GigaSpaces has been talking about these things for a long time now and it’s good to see that there are more general debates and hard evidence of the affects of not building your systems this way.

 Share on Facebook Share on Twitter Share on Reddit Share on LinkedIn
7 Comments  comments 
  • Loby

    Alternatively, just dump Java and .NET crap and your latency improvement will rocket.

  • http://www.reviewazon-review.com/ reviewazon

    Thank you so much for this post. I use the reviewazon plugin. Reviewazon is the easy and simple way to add amazon affiliate product to your website.

  • http://smarterarticles.com/article13602.html Warren Breese

    I’m a huge fan of your site and I read it regularly. Keep up the excellent work!

  • http://debtconsolidationloans1011.jot-a-dream.com/ Edra Grohowski

    In the beginning just remember it was darked and then someone smiled! try this:

    If at first you don’t succeed, look in the trash for the instructions. :)

  • http://www.fredfdesiuzhzt.com Kazuko Nickelston

    It is 2nd incident that I am scanning something about modifying web sites with the system. It seems that you are an super professional blogger. Your publish is definitely an great instance of why I proceed coming back to review your good high quality content that’s forever up to date.

  • http://bostonbabsonalumni.com realestate retrievers

    This is usually a good site. Get real them. You may have a great deal of is vital this concern, and therefore a great deal eagerness. You’ll find that you have learned to generate people today move regarding them, of course with the results. Youve became your style and design listed here how never very nice, nonetheless would make your report as huge as just what exactly youre announcing. Congrats, in truth.

  • http://www.wizzwebsite.com Affordable website design | Low Cost WebSite | Custom facebook fun page and eStore

    Remarkable issues here. I am very happy to peer your post. Thank you a lot and I’m taking a look ahead to touch you. Will you kindly drop me a e-mail?

© GigaSpaces XAP Blog - The In-Memory Computing Platform