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Waikato Business News April/May 2021

Waikato Business News has for a quarter of a century been the voice of the region’s business community, a business community with a very real commitment to innovation and an ethos of co-operation.

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28 WAIKATO BUSINESS NEWS <strong>April</strong>/<strong>May</strong> <strong>2021</strong><br />

Is serverless right for you?<br />

By RACHEL PRIMROSE<br />

Serverless. It’s a buzzword. Love ’em<br />

or hate ’em, buzzwords give us crucial<br />

clues into what is trending, and this<br />

one is loaded.<br />

Serverless computing is a<br />

cloud computing model<br />

in which the cloud provider<br />

dynamically allocates<br />

computing resources based<br />

on demand, and where the<br />

provider also administers the<br />

underlying servers on behalf<br />

of its customers.<br />

To some it means “little<br />

to no maintenance”, to others<br />

“cheaper technology infrastructure”.<br />

While both are<br />

true, serverless is by no means<br />

a panacea.<br />

Across all three major<br />

cloud infrastructure providers,<br />

there is no set monthly pricing<br />

for serverless infrastructure.<br />

Pricing is based on how much<br />

resource (generally number<br />

of seconds that code runs,<br />

throughput, and memory) that<br />

each request consumes.<br />

Serverless is not necessarily<br />

going to be cheaper<br />

for code that runs 24/7, but<br />

there are other benefits. You<br />

won’t need a systems administrator<br />

and developers won’t<br />

have to learn how to install,<br />

run, secure and patch a Linux<br />

server (an increasingly rare<br />

skill). Running and maintaining<br />

servers is at a minimum a<br />

monthly maintenance job, and<br />

at worse a drop-everythingall-hands-on-deck<br />

for highrisk<br />

issues such as the recent<br />

security vulnerabilities.<br />

Equally important is the<br />

supporting services. Serverless<br />

workloads have limits,<br />

and don’t always provide<br />

features such as internet<br />

access, traditional storage and<br />

security.<br />

While handled differently<br />

across cloud providers, these<br />

costs are additional to the cost<br />

to run the code written by<br />

your software developers. The<br />

great news though is that compared<br />

to the cost for multiple<br />

virtual machines, container<br />

services or physically hosted<br />

servers, this is generally lower<br />

until you get into extremely<br />

high workloads or if you are<br />

willing to significantly compromise<br />

on performance.<br />

The cloud infrastructure<br />

cost aside, operational costs<br />

for serverless are a success<br />

story but also introduce items<br />

on your risk register. When<br />

you select serverless computing,<br />

the updates to the underlying<br />

hardware, operating<br />

system and base programming<br />

runtime are done for<br />

you. This doesn’t mean that<br />

software maintenance doesn’t<br />

exist – you’ll be informed and<br />

asked by your cloud provider<br />

to upgrade or face the consequences,<br />

which starts with an<br />

inability to release new functionality,<br />

and can end up with<br />

your code ceasing to run.<br />

You have two important<br />

risks to consider. You will be<br />

forced into upgrading platforms<br />

at some point. This will<br />

usually be several years in<br />

the future if your software is<br />

deployed on up to date platforms.<br />

The timing and inescapable<br />

inevitability cannot<br />

be ignored commercially.<br />

The second risk is that you<br />

are effectively outsourcing<br />

your systems administration<br />

to your cloud provider. Professional<br />

consensus is that<br />

due to scale and customer<br />

volume the cloud providers<br />

will do a better job than your<br />

single sysadmin, but this is not<br />

guaranteed.<br />

With risks acknowledged,<br />

we come to the true advantage<br />

in operational expenditure.<br />

There’s no requirement<br />

for a dedicated systems<br />

administrator.<br />

The entire ecosystem<br />

from deployment to maintenance<br />

can be looked after<br />

by your software partner<br />

or developers, with a little<br />

help from your cloud provider<br />

in the form of proactive<br />

notifications.<br />

Another common question<br />

about serverless is the cost<br />

to develop and scale. This is<br />

highly dependent on the languages,<br />

frameworks and type<br />

of problem you’re solving.<br />

Swapping out traditional servers<br />

for serverless solutions<br />

may not give a good solution.<br />

In general, there should be no<br />

additional cost to implement<br />

serverless code, provided that<br />

serverless is the correct technical<br />

fit for the problem.<br />

And finally, onto a good<br />

problem to have: a fast<br />

growing business. In this<br />

area serverless technologies<br />

really shine.<br />

With a support ticket<br />

(and a good explanation),<br />

well designed solutions can<br />

scale from 1,000 concurrent<br />

requests up to 10,000 in<br />

hours. With traditional infrastructure,<br />

building for scale<br />

can be cost prohibitive during<br />

the initial design and build,<br />

whereas serverless solutions<br />

are largely intrinsically scalable.<br />

The key to a successful<br />

serverless implementation<br />

is good architecture. Serverless<br />

should always be considered<br />

in a holistic way,<br />

starting with good technical<br />

fit, but always looking at the<br />

business fit as well.<br />

At Company-X we have<br />

great success passing on<br />

serverless solutions to clients<br />

with feedback that onboarding<br />

time is low due to great<br />

TECH TALK<br />

tooling, the inherent modularisation<br />

that serverless code<br />

and infrastructure provides,<br />

and that the low infrastructure<br />

entry cost has made an agile<br />

approach a reality.<br />

> BY RACHEL PRIMROSE<br />

Rachel Primrose is a software architect at software<br />

development specialist Company-X.<br />

Working from home and copyright rights:<br />

the need for certainty of ownership<br />

In pre-Covid days, if you<br />

created copyright works<br />

such as drawings or<br />

source code as part of your<br />

job, the odds are you would<br />

have done so during ‘normal<br />

office hours’ at your desk<br />

rather than at 9pm in the<br />

comfort of your own home. It<br />

would have been straightforward<br />

to establish who was the<br />

owner of copyright (TOOC)<br />

in those drawings or source<br />

code.<br />

In these Covid-affected<br />

times, however, many officebased<br />

employees now work<br />

flexible hours and work from<br />

home (WFH). Indeed, the<br />

8.30am-5pm day in the office<br />

has almost become a rarity<br />

rather than the norm. As a<br />

result, ascertaining who is the<br />

owner of copyright in drawings<br />

or source code may be a<br />

little harder to discern; or at<br />

least, the topic may be open<br />

for greater debate.<br />

The need then to be sure of<br />

who owns what in an employment<br />

context is perhaps more<br />

INTELLECTUAL PROPERTY ISSUES<br />

> BY BEN CAIN<br />

Ben Cain is a Senior Associate at James & Wells and a Resolution<br />

Institute-accredited mediator. He can be contacted at 07 957 5660<br />

(Hamilton), 07 928 4470 (Tauranga) and benc@jaws.co.nz.<br />

important now than it was in<br />

the old days.<br />

The recent case of Michael<br />

Penhallurick v MD5 Ltd<br />

[<strong>2021</strong>] EWHC 293 in the<br />

Intellectual Property Enterprise<br />

Court in England,<br />

although relating to events<br />

pre-Covid, illustrates this<br />

need.<br />

Penhallurick, a former<br />

employee of MD5, claimed<br />

ownership of copyright in<br />

eight works relating to a<br />

technique he named “Virtual<br />

Forensic Computing”<br />

or “VFC”.* The eight works<br />

comprised different versions<br />

of the software code (literary<br />

works), a graphic user interface<br />

(artistic work) and a user<br />

guide (literary work).<br />

It was established that the<br />

first two works – the earliest<br />

version of the VFC source<br />

code and the object code<br />

compiled from this code –<br />

were created in 2005 and<br />

2006, before Penhallurick<br />

was employed by MD5 in<br />

November 2006. The Court<br />

found these works were not<br />

relevant to Penhallurick’s<br />

claim and consequently<br />

focussed its assessment on<br />

the remaining six works created<br />

by Penhallurick after he<br />

joined MD5.<br />

The Court found Penhallurick<br />

was the author of<br />

the six remaining works and<br />

therefore was the first owner<br />

of copyright in them – unless<br />

any were made in the course<br />

of his employment by MD5<br />

pursuant to the IP clause in<br />

Penhallurick’s employment<br />

agreements, in which case<br />

MD5 was the first owner.<br />

Which of these was the case<br />

turned on the meaning of “in<br />

the course of his employment”.<br />

Why? Because of the<br />

poor wording of the “Job<br />

Titles and Duties” and intellectual<br />

property clauses in<br />

Penhallurick’s first employment<br />

agreement.<br />

The Court ultimately<br />

found that all of the works<br />

had been created by Penhallurick<br />

in the course of<br />

his employment with MD5.<br />

Of particular interest to this<br />

author, and relevance to this<br />

article given the current (and<br />

potentially permanent?) fashion<br />

for working flexible hours<br />

from home, however, is the<br />

Court’s finding in relation to<br />

the third and fourth copyright<br />

works (“VFC Version 1” and<br />

the graphical user interface<br />

(“GUI”) for VFC Version<br />

1) created by Penhallurick<br />

in 2007. In respect of these<br />

works, the Court said:<br />

“[66] … It seems that Mr<br />

Penhallurick took on the task<br />

[of developing VFC Version<br />

1 and GUI] with enthusiasm,<br />

to the extent that he took his<br />

work home some of the time.<br />

His staff annual appraisal of<br />

August 2007 suggests that<br />

much of the work must have<br />

been done during working<br />

hours at MD5. But whatever<br />

the exact proportion done at<br />

home, it does not displace the<br />

strong and primary indication<br />

that it was work done in the<br />

course of his employment.<br />

The fact that an employee<br />

does work at home is relevant<br />

to the question of whether<br />

the work is of a nature to fall<br />

within the scope of the duties<br />

for which he is paid but it<br />

may or may not carry much<br />

weight. Where it is otherwise<br />

clear that the work is of such<br />

a nature, in my view the place<br />

where the employee chooses<br />

to do the work will not generally<br />

make any difference. The<br />

same applies to the ownership<br />

of the tools the employee<br />

chooses to use, here sometimes<br />

Mr Penhallurick's own<br />

computer system. If it is clear<br />

that the employee is being<br />

paid to carry out a task as<br />

agreed with his employer,<br />

he may choose to use tools<br />

supplied by his employer or<br />

his own tools; either way,<br />

the task is carried out in the<br />

course of his employment.”<br />

Although it is not stated,<br />

I am confident the same reasoning<br />

applies to the time of<br />

day the employee chooses<br />

to do the work – that is, it<br />

doesn’t matter whether you<br />

do the work at 10am or 10pm,<br />

if the work is carried out in<br />

the course of your employment<br />

then any copyright<br />

rights in it will be owned by<br />

your employer.<br />

Standing back, Penhallurick’s<br />

case identifies two<br />

important ‘take homes’<br />

for both employers and<br />

employees:<br />

• first, if an employer is<br />

going to make use of copyright<br />

works created by<br />

an employee before that<br />

person is an employee,<br />

then the employer should<br />

have the employee assign<br />

copyright in those works<br />

to the employer at the<br />

same time the employee<br />

becomes an employee.<br />

Alternatively, execute a<br />

licence agreement with the<br />

employee at the same time<br />

the employee becomes an<br />

employee to enable those<br />

works to be lawfully used<br />

by the employer;<br />

• second, the employer<br />

should ensure employment<br />

agreements, but particularly<br />

those with employees<br />

whose job it is to create<br />

intellectual property,<br />

adequately identify an<br />

employee’s role and scope<br />

of duties so that it is clear<br />

what resulting intellectual<br />

property the employer is<br />

laying claim to by virtue<br />

of the employment agreement,<br />

irrespective of what<br />

time of day and where that<br />

intellectual property is<br />

created.<br />

* VFC is a method of retrieving<br />

an image of the hard disk<br />

without writing on it, then<br />

booting up the image on a<br />

virtual machine so that the<br />

image can be investigated.<br />

In developing the technique,<br />

Penhallurick had used a freely<br />

available product called VM<br />

Software to set up the replica<br />

of the target computer’s hardware<br />

and operating system.<br />

As computer programs generally<br />

have inbuilt safeguards<br />

to prevent them from being<br />

manipulated in this way, the<br />

method developed by Penhallurick<br />

involved a password<br />

bypass feature.

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