Performance-Based Design - Linking Performance to Business Metrics

This presentation describes the Performance-Based Design Model Hotmail uses to set its worldwide performance goals. The model starts with key business metrics, e.g., target market share and ad revenues per market from which performance goals are derived depending on the competitive landscape and Hotmail’s regional/global business demands. The model is iterative in nature, fine tuned as more data comes in, taking into account many of the factors affecting both business and performance. The parameters modelled range from: (a) Server Side: application’s design, systems architecture, Server SKU’s, geohosting, CDN’s, to (b) Network-Related: bandwidths, connectivity, network latencies, last mile effect, to© Client-Side: OS and browser mix, system configs, to (d) Business-Related: current/projected revenues, market shares, user-minutes, competitive advantage, feature parity, discoverability and adoption, and trends, to (e) Performance-Related: where Hotmail is with respect to its regional/global competitors and previous milestones. The model is fine tuned through AB Testing, comparing the before/after deploying new features, last mile instrumentation, revenue trending and market research. The model’s iterative nature helps correct Hotmail’s path as market dynamics change.