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Xero has transitioned its entire platform to Amazon Web Services (AWS) in an effort to facilitate long-term growth and save on infrastructure costs.
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Xero completes major Amazon transition
29 November 2016
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The migration, which took over two years to be architected and executed, involved moving 1.4 petabytes of data to AWS, which included 59 billion records, 3,000 apps and 120 databases.
It also moved all of its 862,000 subscribers to AWS, more than half of which joined during the migration process, and rolled out more than 1,400 product updates during that time.
“Our focus on completing one of the largest data migrations to the AWS platform sets Xero up to deliver fast-paced innovation, leverage machine learning technology, improve margins, increase uptime and security and drive better business outcomes to help small businesses flourish,” said Duncan Ritchie, chief platform and product officer at Xero.
“We expect all business software vendors to re-platform over the next few years so they too may take advantage of the commoditised innovation services in the larger public cloud platforms.”
In terms of innovation, Xero has said the migration to AWS will allow it to capitalise on machine learning and leverage the investment AWS has made in platform services to build and deploy software with shorter delivery time frames.
“We know that the faster we can deliver true innovation to our community of small businesses, accountants and bookkeepers, the more deeply they can feel the impact as it grows and integrates itself into everyday life,” Mr Ritchie said.
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In relation to growth, the global platform will provide customers with a fast, secure and easily accessible cloud platform they can access any time, from any device connected to the internet, according to Xero.
“The move to AWS enables Xero to economically scale to meet the needs of potentially millions of customers. When you’re in the business of technological innovation, fast-paced future thinking comes with the territory,” Mr Ritchie said.
“As we move over to the AWS platform and welcome its boundless computing power, we can experiment and iterate on our core product at pace.”
Lastly, costs will become lower because there is no mass infrastructure.
“Operating margins are expected to improve as benefits from the AWS migration and economies of scale drive further efficiencies,” Mr Ritchie said.
“The company continues to remain focused on managing the business to cash flow break-even within the current cash balance.”
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