Note To Dell: Forget Big Data and Go For Cloud Infrastructure

February 16, 2011 1 Comment

It seems like five seconds after HP purchased Vertica, the entire world focused on Dell and their big data strategy.  This was further compounded by the fact that Dell blew out their earnings with a $15.7 Billion fourth quarter and Michael Dell suggested that they would target smaller acquisitions to help their server and storage divisions.

Speculation is rising that Dell will purchase Aster Data Systems a Stanford University start-up that is backed by Sequoia Capital.  Aster’s nCluster sports a massively parallel processing (MPP) data warehouse with integrated MapReduce that is built on commodity hardware.  Whose commodity hardware?  You guessed it, Aster partners with Dell to provide the Aster Data MapReduce DW Appliance.

However innovative and powerful Aster’s solutions are, their rumored valuations are sky high.  According to Gigaom’s article Cloud Startup Values are Getting Insane published on September 24, 2010, Aster’s valuation is rumored, “somewhere between $85 and $120 million.”  Furthermore, Aster took issue with Gigaom’s assessment saying, “The valuation you/GigaOm stated recently is more reflective of the previous B round that closed Q4 2008, and while we don’t disclose the actual valuation of the latest C round it is in fact materially greater than the Series B.” Really?  Let’s get back on track.

Dell is a remarkable turnaround story that is predicated on their decisions to blaze their own trail in the industry.  Rather than purchase network equipment or security vendors, Dell has been acquiring interesting software companies such as Scalent, Boomi, and Insite One, with a purpose or focus on the Cloud.  Why change this focus?  When you think Dell do you think database warehousing? Software?

Dell’s future growth hinges on their Data Center Solutions (DCS) and Cloud Computing.  They have two choices; make a major market disrupting acquisition or take some risks by purchasing smaller but highly disruptive software companies.  It’s no secret that I am a proponent of Dell purchasing Rackspace, even in the face of a rising market valuation and the prospects of another bidding war.  Rackspace is that good and Dell knows it.

Enough, who else should Dell purchase?  There are the obvious, Joyent, and the obscure, Nimbula.  They could lean forward, OnApp, or take a risk, Appistry.  They could choose infrastructure, GoGrid, or go a bit crazy, Marathon Technologies.  They can go services, Appirio, or go international, ElasticHosts. And on, and on, and on, …

Regardless of what path Dell chooses, Michael Dell has done one incredible job of turning and changing the course of a $60 Billion company. While some have written that Dell is “yesterday’s company”, I’d watch out as they may just surprise you and the entire industry.

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MicroNokiaSoft For Broke In The Cloud

February 14, 2011 1 Comment

It is quite amazing how much bad press Microsoft and Nokia generate.  If you didn’t know any better, then you’d think Microsoft was broke and Nokia had been left for dead.  While Google and Apple are the darlings of the industry, Microsoft and Nokia are abhorred.  Why?  Do we always need to create winners and losers or heroes and villains?

Amazingly, the haters love Apple; a company destined to repeat the mistakes of their past.  While iOS is a wonderful and polished operating system, it as closed and controlled as anything Microsoft could ever dream up.  From iOS to iTunes to the App Store, you only get what Apple wants you to have.  For goodness sakes, they even try to lock you out of the hardware that you purchased with their crazy pentalobe screws.

Of course, you have Android an operating system only Google could create.  On the surface it’s open, but in reality it shares many of the same characteristics of its archrival.  Devoid of any real challenge by Microsoft, Google was the only company that could stop Apple.  By diversifying their hardware, Android quickly gained on Apple and created a vibrant development community.  However, Android’s tragic flaw is its reliance on Google and their appetite for advertising dollars.  While Apple innovates and focuses, Google follows and is schizophrenic as their core business is under attack.

Alas, here comes Microsoft the old man of the crowd as Microsoft was founded in 1975 while Apple was founded in 1976.  Microsoft has been remarkably quiet in the mobile / Smartphone market.  Perhaps Microsoft took their eye off the ball, as they too had to defend their core business from new and disruptive technologies.  Microsoft responded, as a dominant software application provider should, by creating new and innovative applications and operating systems while investing in cloud technologies.

Fresh off the release of Windows 7, a pretty nice operating system, Microsoft has its eyes set on the mobile business it surely wants to dominate.  Windows Phone 7 is a decent first attempt by Microsoft to reinvent the Smartphone.  It has some disruptive features and some product weaknesses; I’d put it somewhere in-between iOS and Android.  While they don’t have the developer community of Apple or Google, they have applications (Exchange, Office, etc.) and now they have Nokia.

Remember Nokia?  They were the company that had beautiful designed phones with the easy to use operating system.  Somewhere along the line, they became the company with the so-so designed phones with the “ I don’t want to use operating systems”.  Nokia, like Microsoft, lost focus and tried to buy their way out of their mess with Symbian in 2008.  Dubbed the “open-source Android killer”, the operating system was lacking polish and failed to cultivate a developer community, not to mention the woefully underpowered phones.

Faced with the reality that the market has rejected Symbian in favor of Apple and Google, Nokia was faced with an unthinkable choice; create a new OS or become an Android drone.  However, like a perfect storm, a third choice emerged as Microsoft’s lagging Windows Phone 7 sales created an opportunity for a new partnership.

At last, Nokia has the opportunity to concentrate on their core competency and get back to building world-class phones.  These new designs will be powered not only by Microsoft’s software but also their desire to trump both Apple and Google.  Nokia gains access to Microsoft’s best and brightest doing what they do best, creating software and applications that are polished, user friendly, and innovative.

Will this partnership work?  In reality, it may be both companies last chance.  Think about it, if Nokia can create new high-powered phones that are beautifully designed and Microsoft can continue to polish Windows Phone 7 while adding deep integrations with Microsoft Office, Exchange, Live, and Azure then this may work.

Finally, don’t count out a 4th operating system from entering this mix as HP is making some noise with webOS.  Amazingly, they’ve escaped a tongue lashing by the press for not going Android but that’s another topic for another time.

For now, its MicroNokiaSoft for broke in the Cloud.

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Cloud Wars: Rackspace Seizes OpenStack, Is Dell Next?

February 12, 2011 Leave a comment

In perhaps their boldest acquisition to date, Rackspace has purchased Anso Labs and are now firmly in control of OpenStack.  Anso Labs is the brains behind Nova, a key component of OpenStack that was originally built for NASA’s Nebula private cloud platform; NASA eventually contributed Nova to the OpenStack project.  Rackspace now controls 3 out of the 4 board seats for OpenStack, virtually owns 2 key software pieces the OpenStack code, and has cornered the market on OpenStack brainpower.

It’s no secret that OpenStack is a blazing hot open source project, but what is Rackspace’s true motive for this acquisition?  Some have speculated that Rackspace could move OpenStack toward an “open core” strategy, opening the door for a paid commercial version of the software.  However, that would be contrary to Rackspace’s DNA and is highly unlikely yet not out of the question.

What’s more likely, is Rackspace’s growing reliance on OpenStack represented too high of a risk for a company that has its eyes set on dominating Cloud computing.  I have always contended that Open Source is a development strategy not a business model.  Therefore, Rackspace’s business model was at risk because their open source development strategy hinged on the talents of Anso Labs.

Additionally, Anso Labs brings Rackspace new Cloud services capabilities in the areas of consulting, training, support, integration, and customization of both OpenStack and Nova. Imagine Rackspace offering their customers the ability to build their own private clouds while augmenting them with their public and/or hybrid cloud offerings.  In essence, OpenStack to Rackspace becomes Eucalyptus to Amazon.

Where there is brilliance in this acquisition there are also risks.  Will the team at Anso Labs accept their new owner’s vision and/or plans? What happens to OpenStack’s growing community of participants and contributors?  Will the bright lights of the free spirits of Anso Labs be extinguished by the weight of a public company?

Finally, an unintended consequence of seizing control of OpenStack may be making Rackspace a M&A target themselves.  While Lanham Napier, Rackspace’s CEO said, “We have not built our company to sell it” the market may think otherwise.  If JMP Securities analyst Patrick Walravens’ observation that investor’s main issue with Rackspace is “the capital-intensive nature of their business…capex guidance is up 41% from a year ago…” then an acquisition by an infrastructure provider may make perfect sense.  Is Dell Next?

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Cloud Wars: Cisco Invades OpenStack

February 7, 2011 1 Comment

Simply put, Cisco is an amazing company.  Love them, hate them, fear them, or fight them, but always respect them.  While other large companies such as IBM and GE have “reinvented” themselves, few have done so prior to having a profound downturn in either market share and/or stock prices.

With an innocent blog post by Lew Tucker, Cisco VP and CTO of Cloud Computing, Cisco has invaded OpenStack under the guise of Networking.  Remember, OpenStack was founded by NASA and Rackspace and currently has over 45 members with the mission of providing open source software to build public and private clouds.  However, none of OpenStack’s members have the shear size or market power of Cisco.

In his post (http://blogs.cisco.com/news/cisco-joins-openstack-community/) Lew writes:

In our view, dynamic provisioning of the network and network-based services is an essential element of cloud computing…

…To achieve this, we believe that it is best to join with others from across the industry to work on open technologies and that open source is the ideal way to reach developers and learn from the community…

My Take, Cisco is spending billions of dollars to insure their continuing dominance in networking and Cloud computing.  By joining OpenStack, Cisco gains visibility into OpenStack’s interworking as well as the ability to influence the direction and speed of the project itself.  As an added benefit, Cisco will learn from the community while having the ability to reach a set of talented developers that otherwise may never have engaged with Cisco.

Clearly, Cisco understands how to build complex partnerships across competitive lines.  While VMware has vCloud, do they not work with other server vendors?  Would EMC not sell a SAN to an HP customer?  As a server vendor, Cisco is learning that choosing neutrality over products has its benefits especially when it comes to software.

While OpenStack is “hot” and an interesting project, they have their competitors as well with more coming. It remains to be seen if,  “a collection of open source technologies delivering a massively scalable cloud computing operating system” is supportable and useable by mainstream Administrators and Enterprises.  Perhaps this is what VMware is betting on with their vCloud solution.

One final note, where are the Operating System Vendors in this fight? Yes, Ubuntu is currently packaging applications like OpenStack and Eucalyptus but we need an integrated Cloud Operating System, not simply a collection of applications.  Microsoft, Red Hat, Apple, anyone….

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Cloud Wars: Dell Fights Back With UEC

February 2, 2011 1 Comment

While Verizon is acquiring Terremark and Time Warner Cable, yes TW Cable, is acquiring NaviSite, Amazon continues to disrupt the industry with their 12 plus Cloud offerings.  The more EC2 grows, generated $220 million in 2009 with predicted revenue of $500 Million in 2010 and $750 Million in 2011, the more it validates that customers are willing to transform their purchasing behavior from hardware devices to compute nodes.

Meanwhile, Enterprises are struggling with virtualization and virtualization stall with the impending reality that they must operate within a Cloud model.  Here lies VMware, the dominant x86 virtualization provider, as they have a complete set of products and 3rd party certified partners to help their customers go virtual.  Let’s face it; ESX/ESXi and vCenter are excellent products.  Additionally, VMware has introduced vCloud and vCloud Express “VMware Power. By the hour.” Essentially, this technology allows Enterprises to build a private cloud and Service Providers to build public clouds and to provide hybrid cloud offerings.

Of course, this pits Amazon’s Cloud Offerings, which are not built with VMware’s technology, against VMware and some of their most powerful partners.  Amazon utilizes the Xen hypervisor along with other customized/internal solutions.  Understanding that VMware is the dominant Enterprise x86 virtualization technology, Amazon has introduced VM Import.  VM Import allows Enterprises to easily migrate VMware Guests (VMDK) into the Amazon EC2 Cloud.

However, what if I want to create a private EC2 within my Enterprise?  Along comes Dell’s Ubuntu Enterprise Cloud (UEC) infrastructure solution. Dell UEC combines the power of Dell’s server hardware with the software of Ubuntu Linux and Eucalyptus providing Enterprises with the same virtual machine images and management APIs that Amazon uses for EC2.  Well it is not exactly EC2, as some will argue that Eucalyptus is not a full implementation of the EC2 API, and it is a matter of fact that Amazon has plenty of additional customized internal tools/systems that make EC2 a reality.  Not to mention that EC2 relies on the Xen hypervisor while UEC utilizes KVM virtualization.  All in all, it’s a great start.

As always, Dell has published an excellent UEC Reference Architecture White Paper for UEC Standard Edition.  This begs the question whether or not Dell will offer Enterprise and/or Service Provider Editions of UEC.  In any case, Dell now has a visionary offering that they will be able to evangelize to their current customers and prospects.  In fact, as UEC matures, Dell is sure to add elements of their entire product portfolio; namely Compellent storage equipment, more powerful server platforms, and perhaps networking/storage hardware via their partnerships with Juniper, Brocade, and others.

One last thought, Dell has incredible flexibility in creating unique cloud offerings via simply changing software and hardware partners.  For example, offering a solution based on Red Hat with Delta Cloud or perhaps a secondary UEC offering that utilizes OpenStack.  This flexibility also translates to Dell’s Open Management philosophy, which is sure to attract additional software partners thereby creating a UEC partner ecosystem.

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Let the Consolidation Begin: Verizon buys Terremark

January 29, 2011 1 Comment

First, let’s have a round of applause for Verizon and their executive leadership.  Verizon has shown the ability to move beyond marketing trends to acquire ‘smart’ technology companies that address core business needs.  While others in this space have a ‘not invented here’ mentality, Verizon has no such issue.  Need proof?  Look no further than their Cybertrust acquisition in 2007.

Second, the giant smiles at Savvis, Rackspace, Hosting.com, GoGrid, and others are causing a blinding industry whiteout.  Savvis and Rackspace are both innovators and leaders in this space and are hot growth and/or acquisition targets.  These companies aren’t selling marchitecture; instead they are building unique architectures using leading-edge technologies from VMware, Cisco, EMC, Intel, and others.

Third, Amazon is the wild card in this equation.  No slighting of Amazon’s cloud prowess in this blog, as they are clearly a disruptive and growing force within the industry.  Amazon’s leadership made strategic bets before this rocket ship took off, and they are reaping the benefits of solid execution.  What remains to be seen is if Enterprises are truly ready for a Cloud or if they will demand collocation and/or dedicated server hardware, of which Amazon does not currently offer.

Finally, here we go again, it’s AT&T vs. Verizon.  Let’s not kid ourselves, Verizon’s real target is AT&T and Terremark gives them a strategic energy boost.  However, AT&T’s no slouch in the Cloud or Managed Services arenas.  AT&T offers a complete portfolio of IAAS, Cloud Storage, Co-Location, Virtualization, and Managed Services.  Furthermore, AT&T has an impressive track record of providing high quality Enterprise Class Solutions to their customers. Not to mention, AT&T has a rock-solid partnership/relationship with IBM.

One last thought, lets not forget that the Cloud depends on many physical elements such as datacenters (real estate), servers, storage, networking, security, applications, and people (talent).  As the cloud grows, datacenter growth (global) will become increasingly important.  Verizon gains on all fronts with Terremark; not to mention a healthy mix of Government and Enterprise Customers.

Let the consolidation begin and may the best valuations win.

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When The Cloud Goes Down

January 17, 2011 Leave a comment

Has everyone seen the ‘Slip Slidin’ Away’ Bridgestone Blizzak television commercial? It brilliantly depicts what it’s like to lose control of an automobile on a snowy or icy road.  Anyone who lives in a winter wonderland or visits one can easily relate to that terrifying feeing of having no control and helplessness of something you depend on.

Imagine having a similar feeling of helplessness when your Cloud provider has a major outage that affects your entire business.   Perhaps it’s your email system, Intranet, documents, CRM site, or another key application.  Worse, what if it’s your IAAS provider that houses development or customer facing systems?

Naturally, you quickly turn to your Cloud provider for help.  Suddenly, your love of instant messaging, web forms, status pages, and social media turns into shear panic as you realize you’ll never get to speak to a human being.  You are greeted with a message saying, “We’re sorry.  Our services are temporarily down.  Our technicians and engineers are hard at work to resolve the problem. Please check back or follow us on the myriad of social networking outlets we support.  We’ll be updating this site every 15 minutes.  We appreciate your business and your patience.”

Don’t worry; the next 15 minutes will pass faster than a quantum torpedo detonating against a Borg cube, as you’ll be spending it fielding calls from people of all levels in the organization.  After hitting the refresh button on the browser you’re greeted with another message saying, “We are in the process of restoring our services.  The approximate time to completion is 5 to 6 hours.  We apologize for the outage but remember we haven’t had one in 2 years.  We appreciate your business and your patience.”

Far fetched?   I thought so too until I had the pleasure of experiencing it first hand.  In the aftermath, no guaranteed SLAs or credits could make up for the headache I had.  As someone who ponders, evangelizes, analyzes, and designs the next generation datacenter (the Cloud), this was a first hand lesson in the importance of continuing to radically re-think how we design, manage, monitor, predict, and recover the Cloud.  In other words, it’s time to stop putting lipstick on the technology and ideas of yesterday and make room for something different and innovative.

Finally, I’ve never really liked the term Cloud.  It implies simplicity or ease of use that may be prevalent on the front-end (users) but masks the reality of the complexity on the back-end (administrators).  The reality is nothing is 100 percent and “even the best laid plans go awry.”  The key is to understand that while technology is awesome, it pales into comparison to the power of being human.

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Can Cisco Eat their EMC and Have Their NetApp To?

December 17, 2010 Leave a comment

With 2010 nearing a close, could Cisco be contemplating another major acquisition to complete their next generation datacenter portfolio?  The last glaring hole within Cisco’s portfolio is their reliance on outside vendors for storage solutions.

Over the past few months, Cisco has patiently watched as HP purchased 3Par, EMC purchased Isilon, and Dell is acquiring Compellent.  Meanwhile, EMC’s arch nemesis NetApp continues to grow and innovate in a tough economy.

Further complicating matters, is Cisco’s reliance on the VCE, a partnership between VMware, Cisco, EMC, and Intel.  It is no coincidence that the current Vblock VCE Reference Architectures specifies EMC storage offerings (CLARiiON, Symmetrix, and Celerra).

Not to be left out of the party, NetApp entered into  ‘collaboration’ with Cisco and VMware creating FlexPod that delivers ‘leading computing, networking, storage, and infrastructure software components’.  It seems that Cisco isn’t the only one hedging their bets as VMware exerts a rebellious streak against their parent (EMC).

Cisco’s future hinges around UCS being adopted as a true next generation computing platform without legacy baggage.  Cisco did not go to war with HP while potentially jeopardizing their relationship with IBM only to be saddled with the competing interests of three large companies.

In the past, I have speculated that Cisco should simply purchase EMC thereby owing a majority stake in VMware.  However is NetApp a better choice?  After all, does VMware need to maintain a ‘Microsoft’ level of independence from the server vendors?  Would HP, IBM, Dell, etc. be inclined to sell a product that lines the pocket of Cisco?

Only Chambers (ok perhaps Ellison as well) would be as bold to acquire an enemy of one of their strategic partners.  By acquiring NetApp, Cisco would be able to offer innovative solutions such as storage blades for UCS or even accelerate the adoption of FCoE.  Imagine a new Cisco Architecture with Cisco UCS, Cisco Nexus, Cisco MDS, Cisco FlexPod, and Cisco Management with the availability of VMware, Citrix, Red Hat, or Microsoft virtualization.

In the end, Cisco could offer a true end-to-end solution as they continue to lead within the edge and core routing markets with near dominance in the switching market.  Furthermore, Cisco would stand alone as the only integrated next generation data center provider that does not develop or sell enterprise class applications such as SAP, Oracle, Microsoft, etc.  In effect, they become the Switzerland of computing against their rivals.

The only question is how long will Cisco be able to ‘Eat their EMC and have their NetApp to’? Don’t look now, but perhaps Larry (Oracle) will crash this party and make the decision for then.

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IBM Throws a Pebble at Cisco UCS; Buys Blade Networks

September 27, 2010 Leave a comment

In the wake of increasing competition from the likes of Cisco, HP, vEMC (VMware plus EMC), IBM responds by purchasing Blade Networks.  For those who have never heard of Blade Networks, Blade was mercifully spun out of Nortel Networks and has hundreds of customers and several hardware OEM deals.  Coincidentally, I think not, Blade has been a long time partner of both IBM and IBM/Netezza.

After years of transforming themselves into a software/services company, IBM is being forced back into the networking business.   While some have postulated that “IBM has turned their back on Juniper Networks”, the reality is Juniper’s baggage may be too big for even IBM to swallow.  Additionally, IBM’s purchase of Blade Networks is a pebble across the bow of Cisco and will do little to anger one of their most strategic partners.

Blade gives IBM a converged networking fabric company while eliminating their competitors from Blade’s technology; namely HP, NEC, and SGI.  Additionally, Blade provides IBM a way to ‘dip their toe in the water’ to see if the market, customers, and partners approve of this new direction.  If IBM is truly looking to challenge UCS or Matrix, then they need additional pieces to this puzzle.

What IBM needs is a new platform ala Cisco UCS that eliminates the baggage of the original blade systems; optimized for density and space.  They must examine how to better integrate their storage platforms with their blades using FCoE and perhaps should look towards a true Multi-Hop FCoE solution.  They must revolutionize virtualization and I/O as perhaps no one else on this planet has the experience, patents, and real world deployments as IBM.  Finally, IBM has the opportunity to rethink management by acquiring, integrating, and refining their current solutions.

If IBM needs a little inspiration, then they can look to their long time bitter enemy Oracle.  While virtualization, fabrics, networking, server chassis, and storage is interesting, applications are still king.  Oracle’s vision is clear; you can run our apps on any server or virtualization platform you want, but it just runs better on Oracle.

The last time I checked, IBM is still Big Blue and they have an arsenal of technology at their disposal.  The question is  ‘if’ and ‘when’ IBM will wake from their slumber and lead the industry once again.  Aside from a blockbuster merger between IBM and Cisco, … hey, one can dream… your move Dell.

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Oracle Takes Dead Aim At VMware’s Vision

September 20, 2010 1 Comment

Still wondering why Oracle purchased Sun?  Day One of Oracle’s OpenWorld 2010 cleared up at least one reason; Oracle has its own “stack” and it does not include VMware. 

When Sun was originally purchased by Oracle, my attention immediately fell to Sun’s virtualization assets and engineering talents.  Before the acquisition, Sun was amassing an arsenal of virtualization and management assets including xVM, VirtualBox, and Solaris.  If you factor in hardware development and JAVA, then Sun had everything they needed to “change the world.”  That is, everything except a track record for translating engineering into revenue.

Love him or hate him, Larry Ellison has no such issues.  His track record speaks for itself as Oracle has an uncanny ability to execute.  With the launch of Exalogic Elastic Compute Cloud, Oracle has signaled to the market that they are ready for a fight.  While most believe Oracle is gunning for Amazon Web Services, I believe hidden in their messages and jabs at IBM is their true target of public, private, and hybrid clouds ala VMware.

VMware unleashed their vision of the future at VMworld 2010 that included vSphere, vDirector, vCloud, vFabric, SpringSource, and more.  What’s missing?   Oracle would point to VMware’s ratio of vision to products, their lack of owning an operating system, and their dependency on third parties to deliver server power (I’ll give them storage as EMC is VMware’s parent company).  Oracle’s vision is unique in that they control the entire Cloud stack using proven technologies and deployments; unleashing the potential of Sun hardware, JAVA, and Fusion.

Exalogic Elastic Compute Cloud has a few things going for it:

  • Power – Scale Out and Scale In  
    Cores 96 to 2880, SSD 256GB to 7.7TB, RAM 768GB to 22.4TB, and SAS disk 40TB to 320TB
  •  Applications – JAVA and Fusion
     Oracle’s Applications as well as others that run on Oracle Solaris and Oracle Linux

Although, I’m not thrilled with Oracle’s reliance on InfiniBand, it makes sense given Sun’s product portfolio and expertise.  Also, we need to learn more about how you manage this system including orchestration via business process management solutions.  However, this is a great start for Oracle. 

One last thought, Oracle took a subtle jab at VMware, EMC, and Cisco when they proclaimed, “Run 1000s of existing applications” and “No Certification Required.”  Perhaps Ellison should not be picking a fight with Mr. Chambers at Cisco.  For the common denominator of vBlocks (VMware, xBlocks (Citrix), and rBlocks (Red Hat) is UCS and its momentum may be unstoppable.

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