When Should We Expand into a New AWS Region?

As the CTO of Hivelight, I've been grappling with the pivotal decision of when to expand into new AWS regions. This isn't just a technical matter; it's about ensuring our company's growth, resilience, and ability to serve our clients effectively. Drawing from my experiences and insights from the vibrant community, let's explore the nuances of this decision.

Why expand?

In today's interconnected world, where our users are spread across various regions (ANZ, North America, the Caribbean, and Europe), expanding into new AWS regions is no longer a luxury but a strategic necessity. By doing so, we unlock several benefits that directly impact our startup's performance and competitiveness:

1. Reduced Latency for Enhanced User Experience
   Imagine a lawyer using our platform to access critical matters or collaborate with colleagues. Reduced latency means quicker access and seamless interactions, leading to higher user satisfaction and retention.

2. Improved Fault Tolerance and High Availability
   As a productivity platform, downtime is simply not an option. By duplicating our infrastructure across multiple AWS regions, we increase our fault tolerance and ensure that our services remain accessible even in the face of regional outages or disruptions.

3. Compliance and Data Residency Considerations
   In the legal sector, where data privacy and regulatory compliance are paramount, operating in multiple AWS regions allows us to adhere to data residency requirements and navigate complex regulatory landscapes.

Signs Pointing Towards Expansion

Expanding into new AWS regions shouldn't be a hasty decision but a well-thought-out strategy informed by data and market insights. Here are some key indicators that suggest it's time for us to broaden our AWS footprint:

1. User Base Distribution Analysis
   By closely monitoring the distribution of our user base, we can identify regions where there's a concentration of users. If a significant portion of our users is clustered in a specific geographic area, it's a strong signal that we need to establish a local presence to optimize performance and responsiveness. As of today, most of our users are in the ANZ region, but our expansion plans are in North America.

2. Latency Metrics and Performance Monitoring
   Tracking latency metrics and performance indicators across different regions provides us with valuable insights into user experience. Consistently high latency for users in certain regions indicates a need for local infrastructure to mitigate delays and improve service quality. For instance, the roundtrip from New Zealand to us-east-1 (AWS) for a lambda function is 500ms, but can vary from 200ms to 3 seconds. No user has expressed that the system is slow, better yet, our users are happy with the responsiveness.

3. Historical Downtime and Outage Analysis
   Analyzing past downtime incidents and regional outages helps us identify patterns and vulnerabilities. If we notice recurring issues or a particular region's susceptibility to disruptions, it would signal the importance of diversifying our AWS footprint to enhance reliability and resilience, so at least only a fraction of our customers would be impacted by such an event. So far, we haven't seen any outage that impacted our production environment, fingers crossed.

4. Strategic Market Expansion Plans
   Our startup's growth trajectory and market expansion plans also influence our decision to expand into new AWS regions. If we're targeting new geographical markets or experiencing rapid growth in specific regions, establishing a local presence ensures that our infrastructure can scale seamlessly to meet growing demand. That is why we are using in us-east-1 (AWS) because this is where we see the biggest growth potential.

To sum up, expanding into new AWS regions is a strategic move that requires careful consideration, data-driven insights, and collaboration. By assessing user distribution, latency metrics, downtime incidents, and market expansion plans, we can pinpoint opportune moments to diversify our AWS footprint and unlock new avenues for growth and innovation. We're not there yet however, we need to be ready for that.

This isn't just about technical infrastructure; it's about empowering our company to thrive in an ever-changing landscape. We can chart a course towards success and ensure that our platform continues to provide the platform that every law practice needs to grow, do its best work, and help more people.