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

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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
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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

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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?

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IBM is First Mover with Disruptive Flash Memory Technology on New x6 Servers

Richard Fichera

This week, IBM announced its new line of x86 servers, and included among the usual incremental product improvements is a performance game-changer called eXFlash. eXFlash is the first commercially available implantation of the MCS architecture announced last year by Diablo Technologies. The MCS architecture, and IBM’s eXFlash offering in particular, allows flash memory to be embedded on the system as close to the CPU as main memory, with latencies substantially lower than any other available flash options, offering better performance at a lower solution cost than other embedded flash solutions. Key aspects of the announcement include:

■  Flash DIMMs offer scalable high performance. Write latency (a critical metric) for IBM eXFlash will be in the 5 to 10 microsecond range, whereas best-of-breed competing mezzanine card and PCIe flash can only offer 15 to 20 microseconds (and external flash storage is slower still). Additionally, since the DIMMs are directly attached to the memory controller, flash I/O does not compete with other I/O on the system I/O hub and PCIe subsystem, improving overall system performance for heavily-loaded systems. Additional benefits include linear performance scalability as the number of DIMMs increase and optional built-in hardware mirroring of DIMM pairs.

■  eXFlash DIMMs are compatible with current software. Part of the magic of MCS flash is that it appears to the OS as a standard block-mode device, so all existing block-mode software will work, including applications, caching and tiering or general storage management software. For IBM users, compatibility with IBM’s storage management and FlashCache Storage Accelerator solutions is guaranteed. Other vendors will face zero to low effort in qualifying their solutions.

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2014 Server and Data Center Predictions

Richard Fichera

As the new year looms, thoughts turn once again to our annual reading of the tea leaves, in this case focused on what I see coming in server land. We’ve just published the full report, Predictions for 2014: Servers & Data Centers, but as teaser, here are a few of the major highlights from the report:

1.      Increasing choices in form factor and packaging – I&O pros will have to cope with a proliferation of new form factors, some optimized for dense low-power cloud workloads, some for general purpose legacy IT, and some for horizontal VM clusters (or internal cloud if you prefer). These will continue to appear in an increasing number of variants.

2.      ARM – Make or break time is coming, depending on the success of coming 64-bit ARM CPU/SOC designs with full server feature sets including VM support.

3.      The beat goes on – Major turn of the great wheel coming for server CPUs in early 2014.

4.      Huge potential disruption in flash architecture – Introduction of flash in main memory DIMM slots has the potential to completely disrupt how flash is used in storage tiers, and potentially can break the current storage tiering model, initially physically with the potential to ripple through memory architectures.

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Meeting with Tech Mahindra – Insights and Reality Check on IT Automation

Richard Fichera

I recently had a meeting with executives from Tech Mahindra, an Indian-based IT services company, which was refreshing for the both the candor with which they discussed the overall mechanics of a support and integration model with significant components located half a world away, as well as their insights on the realities and limitations of automation, one of the hottest topics in IT operations today.

On the subject of the mechanics and process behind their global integration process, the eye opener for me was the depth of internal process behind the engagements. The common (possibly only common in my mind since I have had less exposure to these companies than some of my peers) mindset of “develop the specs, send them off and receive code back” is no longer even remotely possible. To perform a successful complex integration project takes a reliable set of processes that can link the efforts of the approximately 20 – 40% of the staff on-site with the client with the supporting teams back in India. Plus a massive investment in project management, development frameworks, and collaboration tools, a hallmark of all of the successful Indian service providers.

From a the client I&O group perspective, the relationship between the outsourcer and internal groups becomes much more than an arms-length process, but rather a tightly integrated team in which the main visible differentiator is who pays their salary rather than any strict team, task or function boundary. For the integrator, this is a strong positive, since it makes it difficult for the client to disengage, and gives the teams early knowledge of changes and new project opportunities. From the client side there are drawbacks and benefits – disengagement is difficult, but knowledge transfer is tightly integrated and efficient.

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Are cloud platforms saying goodbye to the hypervisor?

James Staten

OpenStack, CloudStack, Dell, IBM SoftLayerand othersare pushing a new agenda in cloud computing, one that eschews the hypervisor. Is this the future of cloud platforms or just another feature?

So far the latter seems to be the prevailing trend as the majority of public cloud platforms and private cloud software solutions start with the foundation of server virtualization. The bare metal options are being positioned more for two purposes:

  • Auto-provisioning new nodes ofthe cloud - bare metal installation of the cloud solution and the hypervisor

  • New compute resource types inthe cloud - using new automation capabilities to add a complete physical server to a customer’s cloud tenancy, as if it were just another virtual machine.

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Q&A with Stephen DeWitt, Senior Vice President of Enterprise Marketing at Hewlett-Packard

JP Gownder

I recently spent an hour with Hewlett-Packard executive Stephen DeWitt, a longtime leader at the company who is currently leading up HP’s enterprise marketing efforts. I wanted to learn more about the value proposition of products and services HP is selling to infrastructure & operations professionals and to understand HP’s vision of the future for enterprise customers.

“It’s easy to think of HP as a ‘PC and printing’ company – and we’re obviously a huge player in those traditional product areas – but we have a broader vision for enterprises and for workers…all built around the new style of IT,” Stephen told me. “Our new enterprise campaign, for example, is going to introduce people to the degree of breakthrough innovation we are providing customers today, and how co-innovating with HP can empower your business in the dramatically changing world ahead.”

To give you a deeper sense of how HP serves its enterprise customers, here are some edited excerpts from our conversation:

Q: What’s HP’s overall vision for enterprise solutions? How do you make that vision tangible and concrete for your customers?

HP is a portfolio company, from core to periphery, from cloud to the device. We work very closely with our customers to provide end to end solutions rather than just ad hoc or best of breed products, and we focus on solving for business outcomes and co-innovating with our customers.

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Intel Lays Out Future Data Center Strategy - Serious Focus on Emerging Opportunities

Richard Fichera

Yesterday Intel had a major press and analyst event in San Francisco to talk about their vision for the future of the data center, anchored on what has become in many eyes the virtuous cycle of future infrastructure demand – mobile devices and “the Internet of things” driving cloud resource consumption, which in turn spews out big data which spawns storage and the requirement for yet more computing to analyze it. As usual with these kinds of events from Intel, it was long on serious vision, and strong on strategic positioning but a bit parsimonious on actual future product information with a couple of interesting exceptions.

Content and Core Topics:

No major surprises on the underlying demand-side drivers. The the proliferation of mobile device, the impending Internet of Things and the mountains of big data that they generate will combine to continue to increase demand for cloud-resident infrastructure, particularly servers and storage, both of which present Intel with an opportunity to sell semiconductors. Needless to say, Intel laced their presentations with frequent reminders about who was the king of semiconductor manufacturingJ

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