It’s no surprise that Dell is bidding on independent storage vendor Compellent as they are still licking their wounds from the loss of 3PAR in a head to head megavendor bidding war which ended with HP winning (?) at $2.4BB. Dell announced today that they have offered $27.50 per CML share, which equals around $876MM, and represents a discount of around 17% to the $33 CML was trading at when Dell first made the offer (increased significantly over the past couple of weeks by speculators anticipating such a deal). The discount is a surprise -- 3PAR and Isilon (bought by EMC for $2.2BB in mid November) had similar revenues, employee counts and customer counts, so I had thought that the $2BB mark was the going rate for established independent storage firms, but then, I’m not a financial analyst, so maybe I’m missing something there.
What I do know is that it is hard for Dell to say in September that they are willing to spend $2BB+ on a storage vendor, and then when they don’t win, to say that the EMC partnership and their EqualLogic products is all they need. EqualLogic has been a great product in the SMB end of the market and a big revenue generator, but hasn’t moved Dell into the realm of enterprise IT leadership that they so crave. The EMC deal has limited margin for Dell as a partner, and doesn’t establish them as a visionary provider with the chops to solve big enterprise problems. So, it’s no surprise that they felt they had to do something.
Most, if not all, technology improvements need what is commonly referred to as “complementary inputs” to yield their full potential. For example, Gutenberg's invention of movable type wouldn't have been viable without progress in ink, paper, and printing press technology. IT innovations depend on complements to take hold. The use of internal cloud differences will affect applications, configuration, monitoring, and capacity management. External clouds will need attention to security and performance issues related to network latency. Financial data availability is also one important cloud adoption criteria and must be addressed. Without progress in these complementary technologies, the benefits of using cloud computing cannot be fully developed.
Internal cloud technology is going to offer embedded physical/virtual configuration management, VM provisioning, orchestration of resources, and most probably, basic monitoring or data collection in an automated environment, with a highly abstracted administration interface. This has the following impact:
More than ever, we need to know where things are. Discovery and tracking of assets and applications in real time is more important than ever: As configurations can be easily changed and applications easily moved, control of the data center requires complete visibility. Configuration management systems must adapt to this new environment.
Applications must be easily movable. To take advantage of the flexibility offered by orchestration, provisioning, and configuration automation, applications must be easily loaded and configured. This assumes that there is, upstream of the application release, an automated process that will “containerize” the applications, its dependencies, and its configuration elements. This will affect the application life cycle (see figure).
On Dec. 2, Oracle announced the next move in its program to integrate its hardware and software assets, with the introduction of Oracle Private Cloud Architecture, an integrated infrastructure stack with Infiniband and/or 10G Ethernet fabric, integrated virtualization, management and servers along with software content, both Oracle’s and customer-supplied. Oracle has rolled out the architecture as a general platform for a variety of cloud environments, along with three specific implementations, Exadata, Exalogic and the new Sunrise Supercluster, as proof points for the architecture.
Exadata has been dealt with extensively in other venues, both inside Forrester and externally, and appears to deliver the goods for I&O groups who require efficient consolidation and maximum performance from an Oracle database environment.
Exalogic is a middleware-targeted companion to the Exadata hardware architecture (or another instantiation of Oracle’s private cloud architecture, depending on how you look at it), presenting an integrated infrastructure stack ready to run either Oracle or third-party apps, although Oracle is positioning it as a Java middleware platform. It consists of the following major components integrated into a single rack:
Oracle x86 or T3-based servers and storage.
Oracle Quad-rate Infiniband switches and the Oracle Solaris gateway, which makes the Infiniband network look like an extension of the enterprise 10G Ethernet environment.
Oracle Linux or Solaris.
Oracle Enterprise Manager Ops Center for management.
A few days ago I read an interesting article about how organizations need to adapt to virtualization to take full advantage of it.
If we consider that this is, in fact, the first step toward the industrialization of IT, we should consider how the organization of industry evolved over time, from the beginning to the mass-production era. In fact, I think IT will reach the mass-production stage within a few years. If we replicate this evolution in IT, it will go through these phases:
The craftsperson era. At the early stage of any industry, we find a solitary figure in a shop soon complemented by similarly minded associates (this is me, 43 years ago). They create valuable and innovative products, but productivity and cost per unit of production is usually through the roof. This is where IT was at the end of the 1960s and the beginning of the 1970s. The organization landscape was dominated by “gurus” who seemed to know everything and were loosely coupled within some kind of primitive structure.
The bureaucratic era. As IT was getting more complex, an organizational structure started to appear that tended to “rationalize” IT into a formal, hierarchical structure. In concept, it is very similar to what Max Weber described in 1910: a structure that emphasizes specialization and standardization in pursuit of a common goal. Tasks are split into small increments, mated to skills, and coordinated by a strong hierarchical protocol. The coordination within the organization is primarily achieved through bureaucratic controls. This is the “silo” concept.