Etsy's Journey to Scaling Up

Etsy's Journey to Scaling Up

Table of Contents:

1. Introduction
2. Scaling Challenge of Etsy
3. The Need to Scale Up
4. The Growth Curve of Etsy
5. The Team Behind the Scaling
6. The Decision to Migrate to the Cloud
7. Evaluating Cloud Vendors
8. The Migration Approach
9. Balancing Lift and Shift with Cloud-Native Migration
10. The Benefits of Moving to the Cloud
11. The Human Factor in Scaling
12. The Engineering Culture at Etsy
13. The Impact of Scaling on People, Process, and Technology
14. Improving Product Delivery to Support Scaling
15. The Successful Outcome of Scaling
16. Conclusion

Scaling Etsy: A Journey to Success

Etsy, a global destination for unique and creative goods, faced the challenge of scaling their platform to accommodate more than 100 million listings and connect 95 million buyers with 7.5 million sellers. To support their rapid growth, Etsy made the decision to migrate to the cloud, a move that would enable them to scale their infrastructure and technology to meet the demands of their expanding user base. This article explores the journey of scaling Etsy, from the decision to migrate to the cloud to the successful outcome of the scaling process. It highlights the challenges faced, the strategies implemented, and the impact on the engineering culture and product delivery at Etsy. Through this article, readers will gain insights into the intricacies of scaling a technology platform and the key factors that contribute to success.

1. Introduction

Scaling a technology platform is a complex and challenging process, especially when faced with rapid growth and a large user base. This is the case for Etsy, a global destination for unique and creative goods. With over 100 million listings and millions of buyers and sellers, Etsy needed to find a way to scale their infrastructure and technology to meet the demands of their expanding platform.

2. Scaling Challenge of Etsy

Etsy's core challenge in scaling their platform was the sheer volume of listings and the need to connect millions of buyers with sellers. Their growth curve was steep, with a tripling of gross merchandise sales and revenue from 2019 to 2021. This level of growth required a scalable and robust infrastructure to support the increasing traffic and transactions on the platform.

3. The Need to Scale Up

To address the challenge of scaling, Etsy needed to reassess their existing infrastructure and technology stack. They realized that their data center setup was limiting their ability to scale efficiently and quickly. The process of acquiring and deploying hardware was slow and cumbersome, preventing the engineering teams from moving at the desired pace.

4. The Growth Curve of Etsy

The growth curve of Etsy was impressive, with a significant increase in gross merchandise sales and revenue over a short period. This exponential growth necessitated a reevaluation of their infrastructure and the adoption of a scalable solution that could accommodate the increasing demands of their platform.

5. The Team Behind the Scaling

Keyur Govande, the Chief Architect and VP of Engineering at Etsy, played a pivotal role in leading the migration process. With his expertise and guidance, the team at Etsy embarked on the journey of scaling their platform to the cloud. Additionally, the collaboration with industry partners, such as Thoughtworks, provided valuable insights and support throughout the scaling process.

6. The Decision to Migrate to the Cloud

After evaluating their options, Etsy made the strategic decision to migrate their infrastructure from data centers to the cloud. This decision was driven by the need for scalability, agility, and the ability to leverage cloud-native services. The move to the cloud offered the potential for unlimited capacity and the ability to scale as quickly as their teams required.

7. Evaluating Cloud Vendors

Etsy embarked on a process of evaluating cloud vendors to determine the best fit for their needs. They considered factors such as partnership, service offerings, and alignment with Etsy's values, including sustainability. Google Cloud Platform (GCP) emerged as the preferred vendor due to their commitment to partnering with Etsy and addressing their specific concerns.

8. The Migration Approach

Etsy adopted a two-pronged approach to migration, incorporating both lift and shift and cloud-native migration strategies. The decision to use a combination of these approaches was guided by the specific requirements of each component of their infrastructure. The goal was to ensure a smooth and seamless migration process while minimizing downtime and disruption.

9. Balancing Lift and Shift with Cloud-Native Migration

The decision to balance lift and shift with cloud-native migration was driven by the need to prioritize speed, expertise, and compatibility with existing infrastructure. The web side of the platform was lifted and shifted to the cloud, leveraging familiar technologies and ensuring a seamless transition. In contrast, the search engine was migrated in a more cloud-native manner, taking advantage of managed Kubernetes offerings and paving the way for future scalability.

10. The Benefits of Moving to the Cloud

The migration to the cloud offered numerous benefits to Etsy. It provided practically unlimited capacity, enabling the teams to scale as quickly as required. The cloud-native architecture and managed services offered by Google Cloud Platform (GCP) significantly reduced the operational burden on Etsy's engineering teams. Additionally, the cloud provided enhanced visibility and control over energy consumption, allowing Etsy to prioritize sustainability.

11. The Human Factor in Scaling

While the technical aspects of scaling are crucial, the human factor also plays a significant role in the success of the process. Etsy's engineering culture, characterized by treating each other as humans, played a pivotal role in the scaling journey. The emphasis on caring, collaboration, mentoring, and growth fostered a supportive environment where teams could excel and overcome challenges.

12. The Engineering Culture at Etsy

Etsy's engineering culture is built on the principles of keeping commerce human and treating each other as humans. This culture underpins the success of the scaling process, fostering an environment of trust, collaboration, and continuous learning. The emphasis on culture, along with technical skill, was instrumental in ensuring the smooth transition to the cloud and the ongoing success of the platform.

13. The Impact of Scaling on People, Process, and Technology

Scaling a technology platform like Etsy requires a holistic approach that encompasses people, process, and technology. As the platform grew, Etsy made significant investments in building a strong engineering culture, improving processes, and leveraging technology to support scalability. The impact of scaling is felt across the organization, from enabling faster product delivery to empowering teams to make strategic decisions.

14. Improving Product Delivery to Support Scaling

As part of the scaling process, Etsy focused on improving product delivery to support the increased demands on the platform. They adopted a product development culture, emphasizing principles over rigid processes. This approach allowed teams to prioritize their work based on business impact and empowered them to deliver value more quickly.

15. The Successful Outcome of Scaling

The migration to the cloud and the focus on scaling has been a resounding success for Etsy. They were able to handle the exponential growth and doubling of traffic during the COVID-19 pandemic seamlessly. By leveraging the cloud, Etsy achieved scalability, agility, and enhanced performance, while maintaining a strong engineering culture and delivering value to their customers.

16. Conclusion

Scaling a technology platform like Etsy requires a strategic and holistic approach that encompasses people, process, and technology. By making the decision to migrate to the cloud and leveraging cloud-native services, Etsy was able to achieve the scalability and agility required to handle rapid growth. The success of the scaling process can be attributed to a strong engineering culture, collaboration with industry partners, and a focus on improving product delivery. The journey of scaling Etsy serves as an inspiration for other organizations facing similar challenges and underscores the importance of adapting to changing demands while maintaining a human-centered approach.