Case Study: See how eCommerce leader Mercado Libre ensures superior performance across thousands of servers in the cloud

mercadolibreMercadoLibre is the largest eCommerce platform and marketplace in Latin America. The company was incorporated in 1999 and had its IPO in 2007. It operates in fourteen countries and is the leading eCommerce site in each of them. The company has an ecosystem of four business units – the MercadoLibre Marketplace, the MercadoPago payments solution, the MercadoClics advertising program, and the MercadoShops online stores solution.

As the largest and most used eCommerce platform and marketplace in Latin America, MercadoLibre supports millions of users across its 13 operation units each month. In the first half of 2011, the Marketplace processed 22 million sales, MercadoPago processed $500 Million in payments, MercadoClics served 12,000 advertisers, and the relatively new MercadoShops had over 30,000 stores. Their new mobile app launched in October 2011 and was providing .5% of MercadoLibre’s total revenue in just six weeks. Since then, the app has been downloaded over 700,000 times.

CTO Daniel Rabinovich discusses the role of web application management in Mercado Libre’s Cloud strategy.

MercadoLibre’s system was initially designed, built, and run as a single monolithic structure. Two years ago, the company initiated a deep technical overhaul of their systems. The goal was to decentralize it by migrating the large system into an open API-based platform. This would enable each of the separate business units to operate as an independent business and be responsible for their own success.

To make this decentralized model work, MercadoLibre established two guiding principles: Each consumer facing application must use an API and every API must be public. The company would be its own first customer using every API they produced within the ecosystem, with a long term goal of making all APIs public The resulting eCommerce system would have many small independent applications, each fully owned and controlled from concept to production by a separate team. This approach highlighted the need for better tools to provide insight, control, and performance management across each of the smaller units.

Enter New Relic
Fundamental to the successful transition was the speed with which the teams could successfully develop and deploy their web apps. With four active online businesses spread throughout Latin America, Daniel Rabinovich – MercadoLibre’s CTO – knew they needed a consistent, easy to install and use, performance management system to ensure the overall excellence of the new ecosystem. What he got from New Relic surpassed his expectations.

In less than two weeks, MercadoLibre went from their initial simple deployment of New Relic to several hundred applications. They immediately gained a deep understanding of their application performance, and uncovered and resolved issues with remarkable speed. Individual developers were so impressed with the tool’s results and value that they became internal advocates for the use of the product. New Relic was not only pinpointing problems, but also enabling technical agility throughout the entire ecosystem.

Seeing the impact of using New Relic throughout their business units, MercadoLibre established a requirement that the New Relic agent be pre-installed on each new instance. “Embedding New Relic in every application we develop and push,” said Rabinovich, “is essential to MercadoLibre’s continued growth and success.” He believes that this decision has enabled the company to continue to add new instances at an astonishing pace, while meeting their performance goals.

MercadoLibre relies on New Relic to an extent far beyond their initial expectations. “New Relic is not just a performance management tool. It’s a management tool,” added Rabonivch. The company continues to add hundreds of New Relic instances each month, obtaining immediate and continued value with each deployment. New Relic monitors every API and every application. Such rapid growth and diversity requires business acumen, technical agility, and next-generation tools – like New Relic.

See the full case study to see how MercadoLibre has taken advantage of the full capabilities New Relic offers.'

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