Shopify Data Centers
Shopify’s Infrastructure Collaboration with Google
We’re always working to deliver the best commerce experience to our merchants and their customers. We provide a seamless merchant experience while shaping the future of retail by building a platform that can handle the traffic of a Kylie Cosmetic flash sale (they sell out in 20 seconds), ship new features into production hundreds of times a day, and process more than double the amount of orders year over year.
For Production Engineering to meet these needs, we regularly review our technology stack to ensure we are using the best tools for the job and our journey to the Cloud is a perfect example. That’s why, we are excited to share that Shopify is now building our Cloud with Google, but before sharing the details of this announcement, we want to provide some context on our journey.
Shopify has been a cloud company since day one. We provide a commerce cloud to our merchants, solving their worries about hiring full-time IT staff to manage the infrastructure side of the business. Cloud is part of our DNA and our public cloud connection goes back to 2006, the same year both Shopify and Amazon Web Services (AWS) launched. Early on, we leveraged the public cloud as a small piece of our commerce cloud. It was great for hosting some of our smaller services, but we found the public cloud wasn’t a great fit for our main Rails monolith.
We’re pragmatic about how to evolve and invest in our infrastructure. In our startup days – with a small team – we valued simplicity and chose to focus on shipping the foundations of a commerce platform by deferring more complex infrastructure like database sharding. As we grew in scale and engineering expertise, we took on solving more complex patterns. With each major infrastructure scalability feature we shipped, like database sharding, application sharding, and production load testing, we continued to revisit how to horizontally scale our Rails application across thousands of servers. Over the years, we moved more and more of our supporting services to the Cloud, gaining additional context which fed into our developing monolith Cloud strategy.
Our latest push to the Cloud started over two years ago. Google launched Google Kubernetes Engine (GKE) (formerly Google Container Engine) as we had just finished production-hardening Docker. In 2014, Shopify invested in Docker to capitalize on the benefits of immutable infrastructure: predictable, repeatable builds and deployments; simpler and more robust rollbacks; and elimination of configuration management drift. Once you’re running containers, the next natural step is to take inspiration from Google’s Borg and start building out a dynamic container management and orchestration system. Being early adopters of Docker meant there weren’t many open-source options available, so we decided to build minimal container management features ourselves. The community and codebase were in its infancy and changing rapidly. Building these features allowed us to focus on application scalability and resilience while avoiding additional complexity as the Docker community matured.
In 2016, internal discussions began around what Shopify would look like in the future. The infrastructure changes from 2012 to 2016 allowed us to lay the foundation for using the Cloud in a pragmatic way via database sharding, application sharding, perf testing and automated failovers, but we were still missing an orchestration solution. Luckily, several exciting developments were happening, and the most promising one for Shopify was Kubernetes, an open-source container management system created by the teams at Google that built Borg and GKE.
After 12 years of building and running the foundation of our own commerce cloud with our own data centers, we are excited to build our Cloud with Google. We are working with a company who shares our values in open-source, security, performance and scale. We are better positioned to change the face of global commerce while providing more opportunities to the 600, 000+ merchants on our platform today.
Since we began our Google Cloud migration, we have:
Built our Shop Mover, a selective database data migration tool, that lets us rebalance shops between database shards with an average of 2. 5s of downtime per shop
Migrated over 50% of our data center workloads, and counting, to Google Cloud
Contributed and leveraged, Grafeas, Google’s open source initiative to define a uniform way for auditing and governing the modern software supply chain
Grown to over 400 production services and built a platform as a service (PaaS) to consolidate all production services on Kubernetes
Joined the Cloud Native Computing Foundation (CNCF) and participated in the Kubernetes Apps Special Interest Group and Application Definition Working Group
By leveraging Google’s deep understanding of global infrastructure at scale, we’re able to ensure that every engineer we hire focuses on building and shaping the future of commerce on a global scale.
Stay tuned. We’re excited to share more stories about Shopify’s journey to Google Cloud with you.
Dale Neufeld, VP of Production Engineering
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Shopify – Wikipedia
Shopify Inc. TypePublicTraded asTSX: SHOPNYSE: SHOPS&P/TSX 60 componentIndustryE-commerceFounded2006; 15 years agoOttawa, Ontario, CanadaFoundersTobias LütkeDaniel WeinandScott LakeHeadquartersOttawa, Ontario, CanadaArea servedWorldwideServicesOnline shoppingRevenue US$2. 93 billion (2020)[1]Net income US$320 million (2020)[1]Total assets US$7. 76 billion (2020)[1]Total equity US$6. 40 billion (2020)[1]Number of employees7, 000+[2]
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario. It is also the name of its proprietary e-commerce platform for online stores and retail point-of-sale systems. [3] The Shopify platform offers online retailers a suite of services including payments, marketing, shipping and customer engagement tools. [4]
The company reported that it had more than 1, 700, 000 businesses in approximately 175 countries using its platform as of May 2021. [5][6] According to Builtwith, 1. 58 million websites run on the Shopify platform as of 2021. [7][8] The total gross merchandise volume exceeded US$61 billion for calendar 2019. [9] As of 2021, Shopify is the largest publicly traded Canadian company by market capitalization. [10] Total revenue for the full year of 2020 was US$2. 929 billion. [11]
History[edit]
Shopify was founded in 2006 by Tobias Lütke and Scott Lake after attempting to open Snowdevil, an online store for snowboarding equipment. Dissatisfied with the existing e-commerce products on the market, Lütke, a computer programmer by trade, instead built his own. [12][13][14] Lütke used the open source web application framework Ruby on Rails to build Snowdevil’s online store, and launched it after two months of development. [15][16] The Snowdevil founders launched the platform as Shopify in June 2006. [15]
Shopify created an open-source template language called Liquid, which is written in Ruby and used since 2006. [17]
In June 2009, Shopify launched an application programming interface (API) platform and App Store. The API allows developers to create applications for Shopify online stores and then sell them on the Shopify App Store. [18]
In April 2010, Shopify launched a free mobile app on the Apple App Store. The app lets Shopify store owners view and manage their stores from iOS mobile devices. [19] In 2010, Shopify started its Build-A-Business competition, in which participants create a business using its commerce platform. [20][21] The winners of the competition receive cash prizes and mentorship from entrepreneurs, such as Richard Branson, Eric Ries and others. [21] Shopify was named Ottawa’s Fastest Growing Company by the Ottawa Business Journal in 2010. [15] The company received $7 million from an initial series A round of venture capital financing in December 2010. [22][23] Its Series B round raised $15 million in October 2011. [24]
In February 2012, Shopify acquired Select Start Studios Inc (“S3”), a mobile software developer, along with 20 of the company’s mobile engineers and designers. [25][26] In August 2013, Shopify acquired Jet Cooper, a 25-person design studio based in Toronto. [27]
In August 2013, Shopify announced the launch of Shopify Payments, which allowed merchants to accept credit cards without requiring a third party payment gateway. [28] The company also announced the launch of an iPad-centric point of sale system. It uses an iPad to accept payments from debit and credit cards. The company received $100 million in Series C funding in December 2013. [29]
By 2014, the platform had hosted approximately 120, 000 online retailers, [16][19][30] and was listed as #3 in Deloitte’s Fast50 in Canada, as well as #7 in Deloitte’s Fast 500 of North America. [31] Shopify earned $105 million in revenue in 2014, twice as much as it raised the previous year. [32] In February 2014, Shopify released its enterprise solution[buzzword] “Shopify Plus” for large e-commerce businesses with access to additional features and support. [33]
On April 14, 2015, Shopify filed for an initial public offering (IPO) on the New York Stock Exchange and Toronto Stock Exchange under the symbols “SHOP” and “SH” respectively. [34][35] Shopify went public on May 21, 2015, and in its debut on the New York Stock Exchange, started trading at $28, more than 60% higher than its US$17 offering price, with its IPO raising more than $131 million. [36][37][38]
In September 2015, announced it would be closing its Amazon Webstore service for merchants, and had selected Shopify as the preferred migration provider;[39] Shopify’s shares jumped more than 20% upon the news. [40]
On October 3, 2016, Shopify acquired Boltmade. [41] In November 2016, Shopify partnered with Paystack which allowed Nigerian online retailers to accept payments from customers around the world. [42] On November 22, 2016, Shopify launched Frenzy, a mobile app that improves flash sales. [43] On December 5, 2016, Shopify acquired Toronto-based mobile product development studio Tiny Hearts. The Tiny Hearts building has been turned into a Shopify research and development office. [44]
In January 2017, Shopify announced integration with Amazon that would allow merchants to sell on Amazon from their Shopify stores. [45] Shopify’s stock rose almost 10% upon this announcement. [45]
In April 2017, Shopify introduced a Bluetooth enabled debit and credit card reader for brick and mortar retail purchases. [46] The company has since released additional technology for brick and mortar retailers, including a point-of-sale system with a Dock and Retail Stand similar to that offered by Square, and a tappable chip card reader. [47]
In September 2018, Shopify announced plans to locate thousands of employees in Toronto’s King West neighborhood in 2022 as part of “The Well” complex, jointly owned by Allied Properties REIT and RioCan REIT. [48]
In October 2018, Shopify opened their first physical space in Los Angeles. [49] The space offered classes, a “genius bar” for companies that use Shopify software and workshops. [49]
Online cannabis sales in Ontario used Shopify’s software when the drug was legalized in October 2018. Shopify’s software is also used for in-person cannabis sales in Ontario since becoming legal in 2019. [50][51]
In January 2019, Shopify announced the launch of Shopify Studios, a full-service television and film content and production house. [52]
On March 22, 2019, Shopify and email marketing platform Mailchimp ended an integration agreement over disputes involving customer privacy and data collection. [53]
In April 2019, Shopify announced an integration with Snapchat to allow Shopify merchants to buy and manage Snapchat Story ads directly on the Shopify platform. The company had previously secured similar integration partnerships with Facebook and Google. [54]
In May 2019, Shopify acquired Handshake, a business-to-business e-commerce platform for wholesale goods. The Handshake team was integrated into Shopify Plus, and Handshake founder and CEO Glen Coates was made Director of Product for Shopify Plus. [55]
In June 2019, Shopify announced that it would launch its own Fulfillment Network. The service promises to handle shipping logistics for merchants and will compete with an established leader, Amazon FBA. Shopify Fulfillment Network will at first be available to qualifying U. S. merchants in select states. [56]
On August 14, 2019, Shopify launched Shopify Chat, a new native chat function that allows merchants to have real-time conversations with customers visiting Shopify stores online. [57]
On September 9, 2019, Shopify announced the acquisition of 6 River Systems, a Massachusetts-based fulfillment solutions[buzzword] company. The acquisition was finalized in October resulting in a cash-and-share deal worth US$450 million. [58][59]
In 2020, the company announced new hires in Vancouver, Canada, and the effects of the COVID-19 pandemic contributed to lifting stock prices. [60][61]
On February 21, 2020, Shopify announced plans to join the Diem Association, known as Libra Association at the time. [62]
On March 11, 2020, Shopify announced it is going fully remote. Over 5000 employees will start working from home, in response to rapid spread of Coronavirus disease 2019. [63]
It was reported that Shopify’s valuation would likely rise on the back of options it had in the company Affirm that was expecting to go public shortly. [64]
In November 2020, Shopify announced a partnership with Alipay to support merchants with cross-border payments. [65]
As a result of Affirm’s January 13 initial public offering (IPO), Shopify’s 8% stake in Affirm is worth $2 billion. [66]
About half of Shopify’s C-level executives left the company in early 2021. [67]
On 11 June 2021, Shopify announced their acquisition of Primer, an AR app on the App Store that allows users to preview home improvement items digitally. [68]
Esports[edit]
In February 2021, Shopify unveiled that the company has formed a new esports organization called Shopify Rebellion, [69] and has put together a professional StarCraft II team to compete in international tournaments. [70] The team members include former 2016 world champion Byun Hyun-woo as well as Sasha Hostyn. [71][72]
Last-Mile Logistics[edit]
In April 2021, Shopify made its first entry in last-mile logistics by investing in Swyft, a Toronto-based digital logistics startup. [73] As part of a Series A round of funding, a total of $17. 5 million was raised for Swyft, co-led by Inovia Capital and Forerunner Ventures with participation from Shopify. [74]
Criticism[edit]
In 2017, the #DeleteShopify hashtag campaign called for a boycott of Shopify for allowing Breitbart News to host a shop on its platform. [75][76][77] Shopify’s CEO, Tobias Lütke, responded to the criticism, [78] saying “refusing to do business with the site would constitute a violation of free speech”. [79][80]
In October 2017, Citron Research founder, short-seller Andrew Left released a detailed report which described the e-commerce platform as a “get-rich-quick” scheme in contravention of Federal Trade Commission regulations. [81][82] The day the report was released, the stock plunged more than 11%. [83] The main question he posed was “Outside the roughly 50, 000 verifiable merchants working with Shopify, who are the other 450, 000 the company says it has? ” Third-party marketing tactics were expected to be improved. [84] Left was quoted in 2019 by The Street as saying about Shopify “I still think they are best in class”. [85][86]
In January 2021 online stores, such as, who are run by the Trump Organization and Trump campaign were taken offline in response to the riot at the U. Capitol. [87][88]
Data breach[edit]
In September 2020, Shopify confirmed a data breach in which customer data from fewer than 200 merchants was stolen. One of those merchants later said over 4, 900 of their customers alone had had their information accessed. Shopify claims that the data stolen included names, addresses and order details, but not “complete payment card numbers or other sensitive personal or financial information. ” The company also claims that no evidence has proven that the data has been utilized. Shopify identified two “rogue members” of its support team to be responsible. The employees in question have been fired and the matter has been forwarded to the FBI. [89]
See also[edit]
Comparison of shopping cart software
References[edit]
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^ McLeod, Mark. Shopify Gets Fundified! StartupCFO. December 12, 2010.
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^ “Shares in Shopify Jump 23% Following Integration with Amazon”.
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^ “Shopify acquires product design firm Boltmade to boost Shopify Plus”. October 3, 2016. Retrieved October 3, 2016.
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^ Levy, Ari (January 13, 2021). “Shopify just made a $2 billion windfall on Affirm IPO, six months after their partnership”. CNBC. Retrieved January 18, 2021.
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^ Daniel, Joshua. “Shopify has a new StarCraft II esports team; because the CEO loves the game – MEGPlay”. Retrieved February 20, 2021.
^ “The ‘StarCraft II’ nerds at Shopify now have an esports team”. Retrieved February 20, 2021.
^ “StarCraft: Shopify Enters Esports with Shopify Rebellion”. February 20, 2021.
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^ “Swyft raises $17. 5 million to bring same-day delivery to all the retailers that aren’t Amazon”. Retrieved April 8, 2021.
^ Alba, Davey (February 12, 2017). “Shopify’s Breitbart Fight Proves It: These Days, Tech Has to Take a Side”. Wired.
^ Pearson, Jordan (February 7, 2017). “People Are Calling For a Shopify Boycott Because It Hosts Breitbart’s Store”. Vice – via Motherboard.
^ Silcoff, Sean (February 9, 2017). “Shopify caught in political crossfire over refusal to drop Breitbart webstore”. The Globe and Mail.
^ Etherington, Darrell (February 9, 2017). “Shopify CEO attempts to defend continued hosting of Breitbart’s online store”. TechCrunch.
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^ Captain, Sean (February 23, 2017). “Shopify, Breitbart, And The B2B Boycotts That Are Dragging Brands Into Politics”. Fast Company.
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External links[edit]
Wikimedia Commons has media related to Shopify.
Business data for Shopify: Google FinanceYahoo! FinanceBloombergReutersSEC filings
Shopify partners with Google Cloud for back-end infrastructure
Shopify partners with Google Cloud for back-end infrastructure | Financial Post Skip to Content NewsFP EnergyFP FinanceFP InvestorFP EconomyFP WorkFP CommentNewslettersBusiness EssentialsMoneyWise ProRefer a Friend This advertisement has not loaded yet, but your article continues below. Small Business FP Tech Desk Allows the online commerce platform to rely less on its own data centres and spend more time on their customers Mar 26, 2018 • March 26, 2018 • 3 minute read • Join the conversation Shopify’s Jean-Michel Lemieux and Google Cloud’s Diane Greene in Toronto last week. Photo by Peter J. Thompson / National Post Shopify Inc. will use Google Cloud to provide its back-end infrastructure so it can focus on its core technology — an online commerce platform that, in turn, provides back-end services for small and medium businesses. This advertisement has not loaded yet, but your article continues below. Ottawa-based Shopify, a Canadian tech unicorn valued at about $15 billion, announced on Monday a partnership with Google Cloud to use its worldwide data centre and network infrastructure that enables computing, storage, networking, data management and machine learning. The companies did not disclose the financials of the deal. But it means Shopify will rely less on its own data centres and spend more time developing its platform, which makes it easy for merchants to sell online, Shopify’s senior vice-president of engineering Jean-Michel Lemieux said in a joint interview with Google Cloud CEO Diane Greene in Toronto. Shopify serves more than 600, 000 businesses, so must deal with massive amounts of data and traffic. “When Black Friday hits, they get through it no matter how much the demand goes through the roof, ” Greene said. When Shopify started in 2006, it had no choice but to build its own infrastructure to store and manage data, Lemieux said. Shopify has data centres in the U. S., but will shift all of its shopping traffic to Google Cloud. Already, more than 50 per cent of its commerce traffic is happening in the cloud, he said. Google has the strength to help Shopify scale our infrastructure globally and we can spend our time on the commerce stuffJean-Michel Lemieux, Shopify SVP “Google has the strength to help Shopify scale our infrastructure globally and we can spend our time on the commerce stuff, ” Lemieux said. The partnership reflects a larger shift toward companies relying on such major cloud providers as Google and Amazon for the data centres necessary to move vast volumes of online traffic and manage increasing amounts of customer data. Greene, a Silicon Valley pioneer who founded and ran VMware and joined Google in 2015, said the shift to the cloud has enabled “a bit of a revolution. ” “It’s changing what we can do in the world. We can get way more insight into solving our problems, ” Greene said. The cloud can scale up to allow “completely elastic” computing and storage resources, resulting in “endless” resources to do data analytics and machine learning, she said. When tech first became a big deal, big companies outsourced their information technology systems, but these complex systems moved slowly. But the cloud enables change to happen quickly. “Consumer products got way ahead of the enterprise, ” she said. “Because of the cloud, enterprise can finally move fast. ” This advertisement has not loaded yet, but your article continues below. Partnerships like the one with Shopify mean businesses don’t have to worry about building their own data centres and managing them. “They can just build the applications for their customers and rely on us for the back-end, ” she said. Shopify tops expectations; reports Q4 revenue up 71 per cent from year ago Apple CEO Tim Cook’s visit to Shopify all about augmented reality Meantime, Google has thousands of undersea fibre cables and data centres in 15 regions, Greene said, adding that she’s proud of Google Cloud’s cybersecurity. “Because of the scale of Google we can have a more secure cloud than you probably could in your own data centre because we can hire more security people, ” she said. Google Cloud has nearly 1, 000 full-time security people, 200 security guards at its data centres and customized proprietary chips in servers that validate whether the operating system has been tampered with, she said. “We get tens of millions of threats a minute and we handle them 24 hours a day, ” she said. She added that Google encrypts its customers’ data. Shopify has the encryption key so Google cannot see its data in its centres or over the network. “Our customers’ data is completely private to our customers. We do not share any of it, ” Greene said. Shopify’s Lemieux cited Google’s intensive research around security and its commitment to open-source infrastructure as reasons for trusting it to provide Shopify’s infrastructure. “We fundamentally respect customer data. Everyone you hire has to have that in their DNA, ” he said. Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don’t see it, please check your junk folder. The next issue of Financial Post Top Stories will soon be in your inbox. We encountered an issue signing you up. 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Frequently Asked Questions about shopify data centers
Where is Shopify servers based?
Shopify Inc. is a Canadian multinational e-commerce company headquartered in Ottawa, Ontario.
Does Shopify have its own data center?
Shopify has data centres in the U.S., but will shift all of its shopping traffic to Google Cloud.Mar 26, 2018
Is Shopify hosted on AWS?
Shopify was using Amazon Web Services for some of its cloud infrastructure. Shopify will still use Amazon for some cloud services, but the majority will now be run by Google, a spokeswoman for Shopify confirmed.Mar 29, 2018
