Ve

HUAWEI

HUAWEI CLOUD Retail and E-Commerce Solutions

Contents

1. Insight and Trends of the E-Commerce Industry

2. Application Scenarios and Solutions

3. Cases
HUAWEl CLOUD E-Commerce Typical E-Commerce Scenarios

Short-term exponential business peaks

® The e-commerce market is filled with constant innovation,
like new business models, including flash sales, discount
and promotion seasons, and Black Friday; all of which
I create short-term sales bursts.
e On Black Friday, the peak business volume is over 10
times that of any other day.

E3 Q (" [ eibiaratons ey B Quick service launch

“ Ordering Rush-to-purchase ® New services or features are launched to explore new
Consumer market opportunities, or removed, every month
Payment “
&3 > —————— Network 7.X 24 online
Service Eroduct management Face management attack e Service interruptions mean zero sales.
administrator . '
Logistics Precision marketing ® Service interruptions mean customers lost.

“ Promotion management Network and data Security

Syst - . . :
mairflifig;ce P ¢ E-commerce involves private user data and must abide by
personnel afp;?;zfifi g piar::nt local data security regulations and privacy protection
—— specifications.
® 54% of online attacks are targeted at e-commerce systems.

- a— L] - L] ‘.'-H-. - - - - - - - - —
E-ébmmerce Redfiirements athain Points:; éervice Spikéé',' System Secfilll'ity,
Stability, and Reliability
e Select products
9Submit'the order Pay
O
online
I
Finish
—
Shurt-term exponential 24/7 online services Hlgh_securlty High performance
; service peak requirements i

/ , Transaction security | " :

Handling service peaks [_ 2 Service interruptions {_ and secure defenses [ |
requires flexibility, mean zero sales. g are required to deal Targeted marketing
bandwidth, and d Service interruptions ‘ with attacks targeting and ranking search
stability. mean customers lost. e-commerce
systems.
Y =LY |
I:'_'!Ilfl' . L
-
by
Ik
I:'_'!.I-'I

Improved security and risk control Advanced data analysis

-
B

- — - - - ‘..i‘ - P —— - —
 E-commerce IT Requirements

IT Requirements
Secure and stable services, flexible and easy management and O&M
s rTTIL - ~TTT N Talahl®

High performance Security and reliability

High scalability _ _ Openness
Low latency: fast data Comprehensive data protection:
Rapid deployment ] Open APIs
s processing strong defenses |

. _ High concurrency at the access layer Transaction and system security » Compatible with standard
Exponential service growth
> Auto Scaling (AS) » A single load balancer can handle Security certification OpenStack APIs
millions of connections. DDoS attack defense » No underlying platforms lock-in
| Handling ladder-like service peaks ek ek Lo yingp ek
, .4 imby 9N Processingof massive data at the | »-Data encryption
» Automatic capacity expansion | _ _
Fast service launching data layer Highly reliable load balancing
> High- : .
> Services online and offiine weekly High-performance database Network isolation
» High-performance storage Authentication (IAM)

v
—_— - - - — - - - ‘l.‘ P — T -
Contents

1. Insight and Trends of the E-Commerce Industry

2. Application Scenarios and Solutions

3. Cases
Contents

1. Insight and Trends of the E-Commerce Industry

2. Application Scenarios and Solutions

3. Cases
Huawel E-Commerce Cloud Solution Avoid its edge and focus on differentiation
Convenient accessto all Al applications, identity Red parts are the differentiated advantages.
mainstream payment authentication, and
platforms content review
Interesting, interactive, l Improved shopping \ Aggregated . ] Predictive recommendation
comprehensive, and scenario- | Smart e-commerce I
experience payment services Big data analysis with precision marketing
based product displays with AR P

Product presentation using t A DevOps environment is

Static resource delivered together with '
Dual delivery
pictures, webpages, and AR acceleration the e-commerce
application.

A success story in Huawei Vmall: X

E-commerce Application Link pressure testing and
milion user connections, X million [ Flash sales o performance performance topology monitoring &
users involved online flash sales, cloud solution management management during big sales
and X million orders generated

Working with e-commerce ISVs to [ Enterprise-built e- o i i Comprehensive security: cyber

provide E2E solutions covering commerce platform [1ySecurity protection ] security, host security, application
footwear, household appliances & security, and data security
digital products, and cross-border trade
BasiC services
Fault Advanced DDoS
BMS OBS AS . : CDN Database DCS ELB Anti-DDoS protection for BGP
migration Enes

Excellent compute Unlimited number of Automatic Live migration Over 800 High 10PS, Million-level Tens of Over 900 Gbit/s Over 300 Gbit/s protection
performance for core objects per bucket and up adaptation to availability of acceleration nodes stable and concurrent millions of DDoS protection capabilty

applications requirements requests

: : Multiple data centers, dual Ads

‘ DevCloud \ ‘ ServiceStage
g \ DDM DMS SMN Big data and El et BGP
and multi-line :

Full lifecycle management, Microservice framework, Separation of read and Service decoupling, Login verification and
Huawei R&D standardization, ~application orchestration, write, data fragmentation, stagger traffic control, and message notification
and intelligent code check and application and smooth database asynchronous processing . . . ] NT
Huaweil E-Commerce Cloud Solution Avoid its edge and focus on differentiation
Convenient accessto all Al applications, identity Red parts are the differentiated advantages.
mainstream payment authentication, and
platforms content review
Interesting, interactive, l Improved shopping \ Aggregated . ] Predictive recommendation
comprehensive, and scenario- | Smart e-commerce I
experience payment services Big data analysis with precision marketing
based product displays with AR P

Product presentation using t A DevOps environment is

Static resource delivered together with '
Dual delivery
pictures, webpages, and AR acceleration the e-commerce
application.

A success story in Huawei Vmall: X

E-commerce Application Link pressure testing and
milion user connections, X million [ Flash sales o performance performance topology monitoring &
users involved online flash sales, cloud solution management management during big sales
and X million orders generated

Working with e-commerce ISVs to [ Enterprise-built e- o i i Comprehensive security: cyber

provide E2E solutions covering commerce platform [1ySecurity protection ] security, host security, application
footwear, household appliances & security, and data security
digital products, and cross-border trade
BasiC services
Fault Advanced DDoS
BMS OBS AS . : CDN Database DCS ELB Anti-DDoS protection for BGP
migration Enes

Excellent compute Unlimited number of Automatic Live migration Over 800 High 10PS, Million-level Tens of Over 900 Gbit/s Over 300 Gbit/s protection
performance for core objects per bucket and up adaptation to availability of acceleration nodes stable and concurrent millions of DDoS protection capabilty

applications requirements requests

: : Multiple data centers, dual Ads

‘ DevCloud \ ‘ ServiceStage
g \ DDM DMS SMN Big data and El o
and multi-line i
BGP :

Full lifecycle management, Microservice framework, Separation of read and Service decoupling, Login verification and
Huawei R&D standardization, ~application orchestration, write, data fragmentation, stagger traffic control, and message notification
and intelligent code check and application and smooth database asynchronous processing . . . ; NT
E-Commerce Platform Building Technical architecture

Cope with concurrent burst traffic (such as rush-to-

purchase) that suddenly grows by 1,000 times.
NS
( | 0ad "\ Static traffic: 95%
— Distributed Cache
_ balancer Senice (DCS)
|s PHP ] [ Apache .| i~ 5%5O
IDynamlc: traffic: '

: w ~ . PHP | | Apache
_ MysQL | [ Cached | = =
Protocol e
Y| v| Ga=d
Elastic Cloud Server (ECS) Elastic Cloud Server (ECS)
Stack of hundreds of millions
Store data for over 10
Simple: Build an All-In-One of messages and the rush-to- million users.
urchase services.
standalone e-commerce system.
) D
e g Relational Database
Distributed Distributed _
Message Service Database Service (RDS)
(DMS) Middleware (DDM)

Advanced: Transition from a standalone to a distributed architecture for

Improved reliability and performance.

Ip— P a allla
Handling Big Promotions and Flash Sales With Ease

Service scenario: traffic busts in scenarios such as hotspot events or message posting Service issues

* Massive concurrent users

* Sharp increase in transaction
Web layer Cloud Eye "Application layer Cloud Eye | | processing pressure caused by
service events like flash sales
* Resources wasted after big
Service
promotions end
Anti-DDoS aiilicaticm 1 pcs OPM i Rps | * Malicious attacks and purchases
.
_/ ; Key services

.l'.
]\

©
Anti-DDoS
Web Application Firewall (WAF)
Service
Application n application n : Cloud Container Engine (CCE)
s |
Distributed Message Service
(DMS)
o - - - o e EE . - , | e Auto Scaling (AS)/Cloud Eye
""""" | | Fmasamms e Distributed Database Middleware
----------------------------- (DDM)
e Distributed Cache Service (DCS)

- —— - - - ‘...‘ - —— - e —

T of 26 .|
Handling Big Promotions and Flash Sales With Ease

Service scenario: traffic busts in scenarios such as hotspot events or message posting Service issues

* Massive concurrent users

* Sharp increase in transaction
Web layer Cloud Eye "Application layer Cloud Eye | | processing pressure caused by
service events like flash sales
* Resources wasted after big
Service
promotions end
Anti-DDoS aiilicaticm 1 pcs OPM tiRps | * Malicious attacks and purchases
.
_/ ; Key services

.l'.
]\

©
Anti-DDoS
Web Application Firewall (WAF)
Service
Application n application n : Cloud Container Engine (CCE)
s |
Distributed Message Service
(DMS)
- - - - - o e EE . , | e Auto Scaling (AS)/Cloud Eye
""""" | | Fmssanms e Distributed Database Middleware
----------------------------- (DDM)
e Distributed Cache Service (DCS)

- —— - - - ‘...‘ - —— - e —

T of 26 .|
Intelligent Recommendation for Precision Marketing
Service scenario: Leverage in-depth data mining and analysis of massive user access and transactions
to help e-commerce enterprises to build accurate user models for individualized recommendations, Service Issues
thereby implementing precision marketing.

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4y
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5
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=
* |neffective marketing
i | @ b/ i Onine P TE————— : g :
. Users, merchandise, _ : MRS '}, computing G, il £, | | : - |
| orders, and other data + Offline ' 1 1 Near-line C Maemagcat 10 | | * Poor user experience
: access : : : ; computing : | recommendation | : ! :

. Overstock
:

NG
:
‘| I| MLS
Tv 1 lomne | o [
| computing____ 1 trecommendaion: ! | | |
| RDS : | |1 sl == m—m——- ¥ : | * Highlearning costs
"""""""""" : : i \ Algorithm : :Managernent 1 : : ‘ - H :
E d%,o DI S i | | ter?"uplate : E functions | i : ._— : '

R 1 L:::::::I:_:::: ____ 5 'b

E User profiling E

Key services Service modes

» MapReduce Service (MRS) - Standard version: Embedding recommendation templates into the
« Machine Learning Service (MLS) recommendation engine is recommended for small- and medium-scale
« Deep Learning Service (DLS) enterprises with no experience in recommendation systems, so that they can
« Data Injection Service (DIS) quickly build an effective baseline version.
+ Cloud Data Migration (CDM) + Custom version: For high-end users, it is recommended that HUAWEI CLOUD
services such as MLS and DLS be introduced for algorithm selection or for
integrating and releasing custom algorithms on the recommendation engine.

- —— - - - ‘...‘ P PR — e —

0 of 26 .|,
Smart Store Comprehensive digitalization of people, products, and place, online and offline convergence

Terminal Edge (edge compute |

Services Cloud (HUAWEI CLOUD) "People": Identifiable,
accessible,
People Product Place Sales understandable,
B | '
A ofs1ooN | Intelligent edge node - software | Customer flow Product offline consumer data,
~ Network Electronic I | analysis management managernent Ll el and output of 360° all-
device shelflabel Intelligent EdgeFabric domain member

Al-powered | Al-powered _ — — profiles

In-store Iarg?%fl - Attendance
o gy g iy, N "Product”: Accurate
= m Intelligent EdgeFabric platform Big Data and PaaS product plan and
0 Application software sales forecast based
Al algorithms
Asset label Endless aisle P —— - on the matching data '
Intelligent edge node - H of people and
M oo
Edge node management
"E!ll'"l'fl .
] HgEC | I 51151 A products
Sensor Wireless Al device m ROMA platform
anti-theft "Place": Online and
Dfi[fl] - Al edge S e’ dtat el el offline interaction,

RFID PD-_.‘:-J e — conversion rate of

handheld cashier _ _
Gateway loT platform offline consumption
laaS
and improving the
—y . :
e .

15101 L= Device access Rule engine

Smart Camera WIFI&RFID
AP ROMA
LinkSite Device : sales P per unit area
oy Device shadow
environment

- — - - Ll ‘...‘ - - e —

T of 26
 Middle-end Solution Ai-channel convergence

Smart .retail Store smart |

Store transaction
Front end POS system terminal video Store Bl

— — — I— — — — — — —_— — —_— - — — — — — L___| | | | — 1 _—— (— | — I —_—— I— — — — — — — _— — — — — [ | — — — — — — ]

Omni-channel Platform Store operations platform

o 4 - e F ; e f hid ) ) EXperience I. : I!-I‘L'IL-IIII_l"I'“i""i_m;“r‘-‘rr

VIETTIDCT CETIE AUSK CONUOL centel FTOUUGLES Celllel nvent y centel viarketunqg cenier " ' , AlNagent ent. A Tidlagelnc

Environmental erial
I JMEer sej . 1 , : 3
Drganization Merchant cente “cent _ e ntrol I =1 Nagelieit
P |
1 r .-l

Middle end | i aas Paas ServiceStage PaaS middleware Big Data/Al

platform (Compute/storage/network) (CCE/CSE/APM/AOM) (RDS/Redis/VIQ) DWS/Data lake/Al)

Data platform Al+big data analytics platform (omni-channel, full-service, comprehensive data analysis, driving decision adjustment)

Purchase, sales, and

inventory (PS) data Warehouse data Customer data Supplierdata Employee data

Back end
PLM WMS/TMS

- — = = = ‘..-‘ -
 Middle-end Solution Al-channel convergence

Smart .retail Store smart |

Store transaction
Front end POS system terminal video Store Bl

— — — I— — — — (— — —_— — F— L — — — — — L___| | | | (— 1 _—— — — — | | I— — — — — — — — — — — — [ — — — e _— — —_—

Omni-channel Platform Store operations platform

i 4 F ol F - - i hTfi-] ) § : .::' erience £ [ I!-I‘LIIL-III'_l"I'“i""i_m;“r‘-‘rr

\ R | e s ustomer analysis Sl SOy SIS e
viember center Risk control center ~TOaucts cente nventory center viarketing center ! ' \ Tnianagement Tialiageiner

Environmental erial
Ustomer service : 1 i e =, Ly
Organization Merchant cente -cent inancial cente R I_ _'_! il e | control e el _ ITEayollicin
P jll=]
1 r .-l

.'I =m

Middle end | it Plaflnrm

aas
[:E—_JUI'HL)LJ;:’:EJIUi')r-zl.‘_JHfr]%i":'fijl‘t".}
Paas ServiceStage PaaS middleware Big Data/Al
fLBEfiL;EfiI,FJ}HU}LD}HIJ {:'L'r i!Fi:—flsflh‘flUJ DWS/Data lake .a"'.-JJ

Data platform Al+big data analytics platform (omni-channel, full-service, comprehensive data analysis, driving decision adjustment)
|
Purchase, sales, and
inventory (PS) data Warehouse data Customer data Supplierdata Employee data

Back end
PLM WMS/TMS

- — = = = ‘..-‘ -
HUAWEI Vmall Transaction system reconstruction

Transaction System Reconstruction

The transaction system needs to obtain product details from the shopping carts, split orders, and calculate preferences and promotions. It

needs to allocate products, calculate order and delivery costs and bonus points, along with confirming and generating orders, which are
the most important parts in the shopping process. Various forms of service logic need to be aggregated and the calculation is complex.

Any time there is an issue, money is lost.

Service Implementation Challenges Microservice Technology Challenges

. The business logic and process are complex. How can the system » Complex distributed systems: performance (network latency),
architecture be simplified to more quickly support requirements? reliability (too many exceptions), asynchronization (difficult to
. The performance and availability for placing an order affect the locate), and data consistency
purchase rate. How does the system meet the high reliability and throughput » Service dependency: a lot of services, complex dependencies,
requirements? and difficult upgrade and testing
. How can the system architecture be improved without interrupting
business development when business delivery is under pressure?

—— TR . l..-.l.__________

T BEY of 26 .|
Huawei Vmall Microservice Case - Before Reconstruction

Pain points:
a
. Decoupling incomplete, so code reuse is difficult. The transaction and promotion logic is integrated in the web, app, and WAP frontend GUI modules as
shared library, and multiple versions are provided.
. The module granularity is large, the logic is complex, and the response speed is slow.
Multiple modules share the same database, as maintenance is complex.

interface mndule
andtal
F'nr
APPp—
S Reservatlun Flash es
sal Open
WEBSewer WAPServer
pmrtal pr::rtal gateway
~
Ve ‘ \ Ve = \ Operations
system
Front-end service module
Operations
Shopping cart Flash sales
Order center management

/ \ management /
\

-~ N\
Back-end fulfillment module
Fulfillment

Warehouse Logistics and Tax invoice Settlement system

management transportation
Huawei Vmall Microservice Case - After Reconstruction

. Huawei Vmall established domain models to identify processing services and basic services. These process services can
flexibly respond to changes in business processes. The basic services provide reusable basic domain capabilities.
. After splitting, microservices are highly cohesive but loosely coupled. They are not associated with databases, so
iIndependent development, deployment, and maintenance are easier.
I
Operations management
I

. | Template management
Portal and interface WebServer ‘ WAPServer APPServer AP| Gateway | g :
E Content management
--------------- Service registration and discovery/RPC framework ;-- ... Distributed message queue. | i
I

I Administrator permissions
Processing services Transactions ‘ Flash sales fulct:"?lrlcril?;nt |
: Operations management
|
—————————————— Service registration and discovery/RPC frarnawurkj - Distributed message queue - Distributed scheduled task scheduling | ----- .:. Order management
| platform -
,
|
. —
Ordering Inventory Shopping carts Products Promotions | Operations EItEtIEtICE
. analysis
e ;
Payment Addresses Comments Bonus points Activities : Configuration center l
- - |
Basic services |
User Invoicing Warehousing Logistics fee Emall'and‘SMS | Log collection and analysis
notification i _
: Performance monitoring Maintenance
Pay by voucher pg:;?;:s EiiLuang:s Reservations Search i Alarm tracking management
|
______________ Container deployment J System health inspection

I P - alBa

T of 26 .
Elastic Scaling and HA Architecture of Huawei Vmall

Dynamic scaling service registration and discovery

Microservice 1 Microservice 2 Microservice n

Microservice 3
P2P service|
Cluster calling Cluster Cluster

Shielding data partitions from applications

Region 1’ ' = ' Region n Region n+1

Data storage

Slave DB| [Slave DB

Read/Write splitting

fDucker} [Dncker] [Dmckeri :Dncker] [Dmcker] [Dnckerj r Dncker} [ Ducker] [ Dncker1

Running container VMs VMs n VMs

J/ Load monitoring \l/ Dynamic deployment ‘1‘

Container load monitoring and automatic scaling

—— TR . n..fi'a__________

T PAN of 26 .|
Huawei Vmall Microservice Reconstruction: System Benefits (1/2)

Manpower input reduced by 4 to S persons, cost reduced by

USA $19,800 per month

i Delivery efficiency
After th
About 2 persons for Web = el W Before ® After
E‘ architecture is 10
'::'-_g
O g improved, only one jm§ |
a fi or two persons are 5
C - required to
_g - complete the 0 - ¥1
- delivery and | Monthly feature delivery Single feature delivery cost
% S maintenance for the efficiency (Piece/Person-Month) (Person-Day/Piece)
(Pt order transaction
About 2 persons for APP O system. For example, the delivery time of the VIP
purchasing requirement is too short.
Development and testing can be completed
within 0.5 person-days
(down from 10 previously). '

R P - allls
y
Huawei Vmall Microservice Reconstruction: System Benefits (2/2)

Performance data

1300
1200
Business Values
« After the order transaction system was brought online, it
0260
effectively
-~
supported large-scaleo promotions,
.
involving tens of
490 millions of orders and tens of billions of Chinese yuan.
39 270 280 * |t solves delivery bottlenecks and most requirements are
99 80 I 25I delivered and brought online in advance.
™ = - « So far, no major problems have occurred.
N & Q ) © + The system actively sorts and optimizes items such as
W G@flz‘ ,\; ,be}-"‘" dz?‘z’ shopping carts, orders, and marketing activities to improve user
< o AN & experience.
*«t—’z’cg) & é«;\# 'S
& &L S
S S N
£ @E’t & @b & '
o
m Before (TPS) m After (TPS)

I - . alBas
T of 26 .|
Question

Which of the following is not a way to improve e-commerce user experience?

A. Cache static product images to ELB to reduce the pressure on the web client and
Improve user experience.
B. Configure CDN to accelerate static pages.
C. Store static files to the HUAWEI CLOUD OBS buckets and use CDN to accelerate static
pages.
D. Separate static and dynamic content to ensure smooth website experience.

I . - allas

T of 26 .|
Reference Material

E-Commerce V-
HUAWEI CLOUD provides an end-to-end solution comprising basic and advanced services that help entetb'fises rapidly
roll out e-commerce platforms and manage resources.
>~ -

Smart Retall
HUAWEI CLOUD Smart Retail Solution integrates retail industry applications with cloud services, big data, and artificial
intelligence to build omni-channel online and offline solutions that facilitate digital transformation of the retail industry
and improve user experience.

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- — - - - ‘...‘ - P —— - —
2
HUAWEI

Thank You.
Copyright® 2020 Huawei Technologies Co.,l.td.’All Rights Reserved.
The information in this document may contain predictive statements including, ‘without
limitation, statements regarding the future financial and operating resulits, future product
portfolio, new technology, etc. There are a number of factors that could cause actual
results and developments to differ materially from those expressed or implied in the
predictive statements. Therefore, such information is provided for reference purpose
only and constitutes neither an offer nor an acceptance. Huawel may change the
information at any time without notice.

Srnw Whith Intallicanca

T PR of 26 .|
N
HUAWEI

Thank You.
Copyright® 2020 Huawei Technologies Co.,l.td.’All Rights Reserved.
The information in this document may contain predictive statements including, ‘without
limitation, statements regarding the future financial and operating results, future product
portfolio, new technology, etc. There are a number of factors that could cause actual
results and developments to differ materially from those expressed or implied in the
predictive statements. Therefore, such information is provided for reference purpose
only and constitutes neither an offer nor an acceptance. Huawel may change the
information at any time without notice.

Srnw Whith Intallicanca

T of 26
Contents
TCO Concept

HUAWE| CLOUD TCO Components

Data Center

Power and Cooling

Storage and Redundancy

Data Center Personnel

Servers and OSs

Software Defined Networking

Rewarding Our Customers

Various Pricing Modes

alBs
Contents
TCO Concept

HUAWE| CLOUD TCO Components

Data Center

Power and Cooling

Storage and Redundancy

Data Center Personnel

Servers and OSs

Software Defined Networking

Rewarding Our Customers

Various Pricing Modes

alBs
HUAWEI CLOUD TCO Components
o[ Q hid jn |

On-premises or colocation E E E ® Power Cooling

data center Storage
Compute

® o
, . q.mnfflt'c'h . . .

- O @
o 0
: Software defined
Operating system & Data center personnel Storage redundancy networking
virtualization

alBas
 Data Center
Data centers can be a major cost, whether customers build or lease real them.

|
|
|
|
|
|
|
|
On-premises or colocation
data center
: HUAWEI CLOUD
|
|
|

HUAWEI| CLOUD data center complies with strict industry standards and is included in TCO.

— A . allls
Various Pricing Modes
M\ ~ Pay-per-use mode for small variable workloads

Long-term commitments provide significant discounts for

stable workloads

$$
$3% Tiered pricing enables higher discounts for massive use.