Can Pricing Actions Make Google’s Cloud Platform Worth A Look?

James Staten

Usually when a product or service shouts about its low pricing, that’s a bad thing but in Google’s case there’s unique value in its Sustained-use Discounts program which just might make it worth your consideration. 

Read more

Cisco UCS at Five Years – Successful Disruption and a New Status-Quo

Richard Fichera

March Madness – Five Years Ago

It was five years ago, March 2009, when Cisco formally announced  “Project California,” its (possibly intentionally) worst-kept secret, as Cisco Unified Computing System. At the time, I was working at Hewlett Packard, and our collective feelings as we realized that Cisco really did intend to challenge us in the server market were a mixed bag. Some of us were amused at their presumption, others were concerned that there might be something there, since we had odd bits and pieces of intelligence about the former Nuova, the Cisco spin-out/spin-in that developed UCS. Most of us were convinced that they would have trouble running a server business at margins we knew would be substantially lower than their margins in their core switch business. Sitting on top of our shiny, still relatively new HP c-Class BladeSystem, which had overtaken IBM’s BladeCenter as the leading blade product, we were collectively unconcerned, as well as puzzled about Cisco’s decision to upset a nice stable arrangement where IBM, HP and Dell sold possibly a Billion dollars’ worth of Cisco gear between them.

Fast Forward

Five years later, HP is still number one in blade server units and revenue, but Cisco appears to be now number two in blades, and closing in on number three world-wide in server sales as well. The numbers are impressive:

·         32,000 net new customers in five years, with 14,000 repeat customers

·         Claimed $2 Billion+ annual run-rate

·         Order growth rate claimed in “mid-30s” range, probably about three times the growth rate of any competing product line.

Lessons Learned

Read more

When Too Much Control Is a Bad Thing

James Staten

I know, more control is an axiom! But the above statement is more often true. When we're talking about configuration control in the public cloud it can be especially true, as control over the configuration of your application can put control in the hands of someone who knows less about the given platform and thus is more likely to get the configuration wrong. Have I fired you up yet? Then you're going to love (or loathe) my latest report, published today. 

Let's look at the facts. Your base configuration of an application deployed to the cloud is likely a single VM in a single availability zone without load balancing, redundancy, DR, or a performance guarantee. That's why you demand configuration control so you can address these shortcomings. But how well do you know the cloud platform you are using? Is it better to use their autoscaling service (if they have one) or to bring your own virtual load balancers? How many instances of your VM, in which zones, is best for availability? Would it be better to configure your own database cluster or use their database as a service solution? One answer probably isn't correct — mirroring the configuration of the application as deployed in your corporate virtualization environment. Starting to see my point?

Fact is, more configuration control may just be a bad thing.

Read more

Singapore SMBs Get A Big Boost To Upgrade Mobile And Digital Platforms

Clement Teo

by Clement Teo with Ng Zhi Ying

The government of Singapore has released its 2014 budget, which includes S$500 million (US$400 million) to help drive economic changes at small and medium-size businesses (SMBs). This spending will focus on:

Read more

Intel Bumps up High-End Servers with New Xeon E7 V2 - A Long Awaited and Timely Leap

Richard Fichera

The long draught at the high-end

It’s been a long wait, about four years if memory serves me well, since Intel introduced the Xeon E7, a high-end server CPU targeted at the highest performance per-socket x86, from high-end two socket servers to 8-socket servers with tons of memory and lots of I/O. In the ensuing four years (an eternity in a world where annual product cycles are considered the norm), subsequent generations of lesser Xeons, most recently culminating in the latest generation 22 nm Xeon E5 V2 Ivy Bridge server CPUs, have somewhat diluted the value proposition of the original E7.

So what is the poor high-end server user with really demanding single-image workloads to do? The answer was to wait for the Xeon E7 V2, and at first glance, it appears that the wait was worth it. High-end CPUs take longer to develop than lower-end products, and in my opinion Intel made the right decision to skip the previous generation 22nm Sandy Bridge architecture and go to Ivy Bridge, it’s architectural successor in the Intel “Tick-Tock” cycle of new process, then new architecture.

What was announced?

The announcement was the formal unveiling of the Xeon E7 V2 CPU, available in multiple performance bins with anywhere from 8 to 15 cores per socket. Critical specifications include:

  • Up to 15 cores per socket
  • 24 DIMM slots, allowing up to 1.5 TB of memory with 64 GB DIMMs
  • Approximately 4X I/O bandwidth improvement
  • New RAS features, including low-level memory controller modes optimized for either high-availability or performance mode (BIOS option), enhanced error recovery and soft-error reporting
Read more

Rackspace Starts A Process Microsoft Just Finished

James Staten

With Satya Nadella now warming the CEO seat at Microsoft, executive recruiters can shift their attention to another cloud leader — Rackspace — who bids adieu to its 14-year leader, Lanham Napier. While both companies are clearly cloud platform leaders chasing the same competitor, the similarities in the top job stop there. Rackspace's needs in a CEO center more around how it tells its story than concerns about its strategy. 

Where Microsoft is struggling to ensure its ongoing relevancy in a world that is shifting away from the desktop and the on-premise enterprise, Rackspace has strong cloud credibility. Its issues are more around the fact that it isn't a cloud pure play, isn't another managed services cloudwasher, isn't an incumbent enterprise IT supplier, and no longer runs OpenStack. So if you're looking for companies to compare it to in order to value its stock, there aren't good comparisons. And if you’re looking for metrics to use to judge its success, the ones being disclosed don't paint a rosy picture. If you want to understand Rackspace, you'll have to really understand the company and why it isn't what it isn't. So let's start there:

Read more

Lenovo Buys IBM x86 Server Business

Richard Fichera

Wow, wake up and it’s a whole new world – a central concept of many contemplative belief systems and a daily reality on the computer industry.  I woke up this morning to a pleseant New England day with low single-digit temperatures under a brilliant blue sky, and lo and behold, by the time I got to work, along came the news that Lenovo had acquired IBM’s x86 server business, essentially lock, stock and barrel. For IBM the deal is compelling, given that it has decided to move away from the volume hardware manufacturing business, giving them a long-term source for its needed hardware components, much as they did with PCs and other volume hardware in the past. Lenovo gains a world-class server product line for its existing channel organization that vastly expands its enterprise reach, along with about 7,500 engineering, sales and marketing employees who understand the enterprise server business.

What’s Included

The rumors have been circulating for about a year, but the reality is still pretty impressive – for $2.3 Billion in cash and stock, Lenovo acquired all x86 systems line, including the entire rack and blade line, Flex System, blade networking, and the newer NeXtScale and iDataPlex. In addition, Lenovo will have licensed access to many of the surrounding software and hardware components, including SmartCLoud Entry, Storewize, Director, Platform computing, GPFS, etc.

IBM will purchase hardware on an OEM basis to continue to deliver value-added integrated systems such as Pure Application and Pure Data systems.

What IBM Keeps

Read more

Lenovo Buys IBM x86 Server Business

Richard Fichera

Wow, wake up and it’s a whole new world – a central concept of many contemplative belief systems and a daily reality on the computer industry. I woke up this morning to a pleseant New England day with low single-digit temperatures under a brilliant blue sky, and lo and behold, by the time I got to work, along came the news that Lenovo had acquired IBM’s x86 server business, essentially lock, stock and barrel. For IBM the deal is compelling, given that it has decided to move away from the volume hardware manufacturing business, giving them a long-term source for its needed hardware components, much as they did with PCs and other volume hardware in the past. Lenovo gains a world-class server product line for its existing channel organization that vastly expands its enterprise reach, along with about 7,500 engineering, sales and marketing employees who understand the enterprise server business.

What’s Included

The rumors have been circulating for about a year, but the reality is still pretty impressive – for $2.3 Billion in cash and stock, Lenovo acquired all x86 systems line, including the entire rack and blade line, Flex System, blade networking, and the newer NeXtScale and iDataPlex. In addition, Lenovo will have licensed access to many of the surrounding software and hardware components, including SmartCLoud Entry, Storewize, Director, Platform computing, GPFS, etc.

IBM will purchase hardware on an OEM basis to continue to deliver value-added integrated systems such as Pure Application and Pure Data systems.

What IBM Keeps

IBM will keep its mainframe, Power Systems including its Flex System Power systems, and its storage business, and will both retain and expand its service and integration business, as well as provide support for the new Lenovo server offerings.

What Does it Mean for IBM Customers?

Read more

A Better Global Tech Market In 2014, With The US Pulling the Freight

Andrew Bartels

Forrester has just published our forecast for the 2014-2015 global tech market (January 2, 2014, “A Better But Still Subpar Global Tech Market In 2014 And 2015”), and we are predicting that business and government purchases of information technologies (IT) will grow by 6.2% in US dollars in 2014, and by 5.5% in exchange-rate-adjusted or local currency terms. (Note that this data includes purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing services, but does not include purchases of telecommunications services.) The US dollar growth rate will be distinctly better than the 1.6% growth in US dollars in 2013, though constant currency growth will be only somewhat better than the 4.3% growth in 2013. Still, the global tech market won’t see strong growth until 2015, and even then the 8.1% US dollar and 6.9% local currency growth rates will be well below the double-digit growth rates of the late 1990s and 2000 era.

Three interconnected and reinforcing themes will define the global tech market this year:

Read more

Asian Banks Are Embracing Cloud Computing Faster Than You Think

Michael Barnes

As research for my upcoming report on cloud adoption among banks in Asia Pacific (AP), I’ve spent the past several months interviewing senior IT and business decision makers at banks and other financial institutions across the region. I’ve also met with banking regulators and spoken with cloud providers with a strong AP presence. Look for the full report early in the new year. In the meantime, I wanted to share some key findings.

  • Cloud adoption is among the top priorities for most banks in the region. In fact, contrary to popular belief, I’d categorize cloud adoption as nearly mainstream among banks in many parts of Asia Pacific. But adoption drivers vary based on the cloud approach. Private cloud initiatives, for instance, centered on data center transformation to drive improved operational efficiency and cost savings. Public cloud initiatives typically focus on expanding mobile banking capabilities and other customer-facing systems of engagement — the key to customer retention and overall growth.
Read more