From Intel Developer Forum – New Xeon E5 v3 Promises A Respite For Capacity Planners

Richard Fichera

I'm at IDF, a major geekfest for the people interested in the guts of today’s computing infrastructure, and will be immersing myself in the flow for a couple of days. Before going completely off the deep end, I wanted to call out the announcement of the new Xeon E5. While I’ve discussed it in more depth in an accompanying Quick Take just published on our main website, I wanted to add some additional comments on its implications for data center operations, particularly in the areas of capacity planning and long-term capital budgeting.

For many years, each successive iteration of Intel’s and partners’ roadmaps has been quietly delivering a major benefit that seldom gets top billing – additional capacity within the same power and physical footprint, and the resulting ability for users from small enterprises to mega-scale service providers, to defer additional data spending capital expense.

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Build Or Colocate? The ROI Of Data Center Facilities In India

Manish Bahl

Many Indian CIOs and their infrastructure and operations (I&O) teams are in the market for a new data center as their existing data centers are running low on space, power, and cooling capacity. Forrester finds that data growth, virtualization, and consolidation are the main culprits behind these capacity challenges in India. For instance:

  • Data growth increases data center storage investments. Forrester estimates that storage consumes somewhere between 5% and 15% of the total power consumed in the data center and that the volume of data is growing by 30% to 50% per year.
  • Virtualization drives higher-density infrastructure architecture. Organizations face pressure to support more extreme compute densities and experiment with new infrastructure architectures.
  • Data center consolidation puts more pressure on centralized facilities. Per Forrester’s Forrsights Budgets and Priorities Survey, Q4 2012, consolidating IT infrastructure was a critical or high priority for nearly 70% of Indian IT decision-makers. This means more power, cooling, and space for centralized sites.
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The Cost of PRISM Will Be Larger Than ITIF Projects

James Staten

Earlier this month The Information Technology & Innovation Foundation (ITIF) published a prediction that the U.S. cloud computing industry stands to lose up to $35 billion by 2016 thanks to the National Security Agency (NSA) PRISM project, leaked to the media in June. We think this estimate is too low and could be as high as $180 billion or a 25% hit to overall IT service provider revenues in that same timeframe. That is, if you believe the assumption that government spying is more a concern than the business benefits of going cloud.

Having read through the thoughtful analysis by Daniel Castro at ITIF, we commend him and this think tank on their reasoning and cost estimates. However the analysis really limited the impact to the actions of non-US corporations. The high-end figure, assumes US-based cloud computing providers would lose 20% of the potential revenues available from the foreign market. However we believe there are two additional impacts that would further be felt from this revelation:

1. US customers would also bypass US cloud providers for their international and overseas business - costing these cloud providers up to 20% of this business as well.

2. Non-US cloud providers will lose as much as 20% of their available overseas and domestic opportunities due to other governments taking similar actions.

Let's examine these two cases in a bit more detail.

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CenturyLink-Savvis: Is The Rush To Cloud 1 + 1 = More Than 2 For Enterprise I&O?

James Staten

Hot on the heels of Verizon’s acquisition of Terremark comes today’s $3.2 billion purchase of Savvis by CenturyLink, signaling that the rush to be an enterprise cloud leader is on.

It seems that during every major shift in the telecommunications, service provider or hosting market there is a string of moves like these as players attempt to capitalize on the change to gain greater market position. And there are plenty of investors caught up in the opportunity who are willing to lend a few bucks. In the dot.com period, through 2000s, we saw major shifts in the service provider landscape as colo/hosting giants were created such as Cable & Wireless and Equinix.

But what does this mean for infrastructure & operations professionals looking to select a hosting or Infrastructure as a Service (IaaS) cloud provider? The key is in determining if 1 + 1 actually equals anything greater than 2.

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