[For some reason this has been unpublished since April — so here it is well after AMD announced its next spin of the SeaMicro product.]
At its recent financial analyst day, AMD indicated that it intended to differentiate itself by creating products that were advantaged in niche markets, with specific mention, among other segments, of servers, and to generally shake up the trench warfare that has had it on the losing side of its lifelong battle with Intel (my interpretation, not AMD management’s words). Today, at least for the server side of the business, it made a move that can potentially offer it visibility and differentiation by acquiring innovative server startup SeaMicro.
SeaMicro has attracted our attention since its appearance (blog post 1, blog post 2) with its innovative architecture that dramatically reduces power and improves density by sharing components like I/O adapters, disks, and even BIOS over a proprietary fabric. The irony here is that SeaMicro came to market with a tight alignment with Intel, who at one point even introduced a special dual-core packaging of its Atom CPU to allow SeaMicro to improve its density and power efficiency. Most recently SeaMicro and Intel announced a new model that featured Xeon CPUs to address the more mainstream segments that were not a part of SeaMicro’s original Atom-based offering.
This week, the New York Times ran a series of articles about data center power use (and abuse) “Power, Pollution and the Internet” (http://nyti.ms/Ojd9BV) and “Data Barns in a Farm Town, Gobbling Power and Flexing Muscle” (http://nyti.ms/RQDb0a). Among the claims made in the articles were that data centers were “only using 6 to 12 % of the energy powering their servers to deliver useful computation. Like a lot of media broadsides, the reality is more complex than the dramatic claims made in these articles. Technically they are correct in claiming that of the electricity going to a server, only a very small fraction is used to perform useful work, but this dramatic claim is not a fair representation of the overall efficiency picture. The Times analysis fails to take into consideration that not all of the power in the data center goes to servers, so the claim of 6% efficiency of the servers is not representative of the real operational efficiency of the complete data center.
On the other hand, while I think the Times chooses drama over even-keeled reporting, the actual picture for even a well-run data center is not as good as its proponents would claim. Consider:
A new data center with a PUE of 1.2 (very efficient), with 83% of the power going to IT workloads.
Then assume that 60% of the remaining power goes to servers (storage and network get the rest), for a net of almost 50% of the power going into servers. If the servers are running at an average utilization of 10%, then only 10% of 50%, or 5% of the power is actually going to real IT processing. Of course, the real "IT number" is the server + plus storage + network, so depending on how you account for them, the IT usage could be as high as 38% (.83*.4 + .05).
At last week’s India analyst briefing, IBM outlined urbanization as a key factor driving “Smarter Cities” initiatives in India.
IBM expects India to invest about $1.2 trillion over the next 20 years in areas like transportation, energy, and public security. The second phase of the Jawaharlal Nehru National Urban Renewal Mission (JnNURM), which covers $40 billion in infrastructure-related projects, will play a key role in improving the country’s infrastructure capacity to support urbanization over the next five years. IBM is currently working on approximately 3,000 smart city projects globally; of those, about 30 pilot projects are from India.
About a year ago, I published a report on how cities are undergoing rapid transformation and creating massive opportunities for ICT vendors across Asia Pacific. Although the urbanization rate still stands at about 30% in India, it is growing fast. Also, an increasingly Internet-savvy population is demanding better citizen services. Indian state and city governments will make investments to build infrastructure on a large scale to meet the needs of their surging urban populations, creating opportunities for vendors. —
Despite the promise and opportunities that India provides for Smarter City initiatives, IBM has to deal with key challenges:
I’m thrilled to see “people” talked about as a major focus of business. Company executives recognize that people are critical to sustainable organizational growth. Talent is now a C-level priority. People development is a responsibility of all managers and leaders, not just the HR department. Great to hear! Vendors see talent management as a hot space and are strategically lining up to meet business needs — enter IBM!
At a CIO roundtable that Forrester held recently in Sydney, I presented one of my favourite slides (originally seen in a deck from my colleague Ted Schadler) about what has happened r.e. technology since January 2007 (a little over five years ago). The slide goes like this:
Source: Forrester Research, 2012
This makes me wonder: what the next five years will hold for us? Forecasts tend to be made assuming most things remain the same – and I bet in 2007 few people saw all of these changes coming… What unforeseen changes might we see?
Will the whole concept of the enterprise disappear as barriers to entry disappear across many market segments?
Will the next generation reject the “public persona” that is typical in the Facebook generation and perhaps return to “traditional values”?
How will markets respond to the aging consumer in nearly every economy?
How will environmental concerns play out in consumer and business technology purchases and deployments?
How will the changing face of cities change consumer behaviors and demands?
Will artificial intelligence (AI) technologies and capabilities completely redefine business?
Only a few months since I authored Forrester’s "Market Overview: Data Center Infrastructure Management Solutions," significant changes merit some additional commentary.
The major vendor drama of the “season” is the continued evolution of Schneider and Emerson’s DCIM product rollout. Since Schneider’s worldwide analyst conference in Paris last week, we now have pretty good visibility into both major vendors' strategy and products. In a nutshell, we have two very large players, both with large installed bases of data center customers, and both selling a vision of an integrated modular DCIM framework. More importantly it appears that both vendors can deliver on this promise. That is the good news. The bad news is that their offerings are highly overlapped, and for most potential customers the choice will be a difficult one. My working theory is that whoever has the largest footprint of equipment will have an advantage, and that a lot depends on the relative execution of their field marketing and sales organizations as both companies rush to turn 1000s of salespeople and partners loose on the world with these products. This will be a classic market share play, with the smart strategy being to sacrifice margin for market share, since DCIM solutions have a high probability of pulling through services, and usually involve some annuity revenue stream from support and update fees.
Earlier this week at its Discover customer event, HP announced a significant set of improvements to its already successful c-Class BladeSystem product line, which, despite continuing competitive pressure from IBM and the entry of Cisco into the market three years ago, still commands approximately 50% of the blade market. The significant components of this announcement fall into four major functional buckets – improved hardware, simplified and expanded storage features, new interconnects and I/O options, and serviceability enhancements. Among the highlights are:
Direct connection of HP 3PAR storage – One of the major drawbacks for block-mode storage with blades has always been the cost of the SAN to connect it to the blade enclosure. With the ability to connect an HP 3PAR storage array directly to the c-Class enclosure without any SAN components, HP has reduced both the cost and the complexity of storage for a wide class of applications that have storage requirements within the scope of a single storage array.
New blades – With this announcement, HP fills in the gaps in their blade portfolio, announcing a new Intel Xeon EN based BL-420 for entry requirements, an upgrade to the BL-465 to support the latest AMD 16-core Interlagos CPU, and the BL-660, a new single-width Xeon E5 based 4-socket blade. In addition, HP has expanded the capacity of the sidecar storage blade to 1.5 TB, enabling an 8-server and 12 TB + chassis configuration.
SugarCRM was kind enough to invite me to its analyst day and conference — a three-day event packed with product, strategy, customer, and partner information. The firm’s focus was clearly on its momentum into the enterprise. Here are my thoughts:
The CRM market still has room to grow. Sugar used IDC’s numbers to project CRM market growth: $18.74 billion for 2012, $19.97 billion for 2013, and $21.37 billion for 2014. Even though CRM vendor solutions are mature, the CRM market has not stagnated.
The SugarCRM 6.5 product. Today, SugarCRM has 1 million users, has seen 11 million downloads, is used by 80,000 organizations, and has 350 partners on five continents supporting the product. Its newest release focuses on usability and performance enhancements. It offers simplified navigation, an enhanced UI design, a new search framework with integrated full-text search, new calendaring and scheduling capabilities, IBM platform support, and deeper integration with third-party apps. Although the product lacks advanced social features and robust analytics, it does provide solid, well-rounded CRM capabilities.
The open source focus. Open source is more than a movement. It provides results by allowing its 30,000-large developer ecosystem to evolve the product in line with customer demand. “Open” is also part of Sugar’s culture — for example, pricing is readily available on its website, and you can try the product for free.
In the latest evolution of its Linux push, IBM has added to its non-x86 Linux server line with the introduction of new dedicated Power 7 rack and blade servers that only run Linux. “Hah!” you say. “Power already runs Linux, and quite well according to IBM.” This is indeed true, but when you look at the price/performance of Linux on standard Power, the picture is not quite as advantageous, with the higher cost of Power servers compared to x86 servers offsetting much if not all of the performance advantage.
Enter the new Flex System p24L (Linux) Compute Node blade for the new PureFlex system and the IBM PowerLinuxTM 7R2 rack server. Both are dedicated Linux-only systems with 2 Power 7 6/8 core, 4 threads/core processors, and are shipped with unlimited licenses for IBM’s PowerVM hypervisor. Most importantly, these systems, in exchange for the limitation that they will run only Linux, are priced competitively with similarly configured x86 systems from major competitors, and IBM is betting on the improvement in performance, shown by IBM-supplied benchmarks, to overcome any resistance to running Linux on a non-x86 system. Note that this is a different proposition than Linux running on an IFL in a zSeries, since the mainframe is usually not the entry for the customer — IBM typically sells to customers with existing mainframe, whereas with Power Linux they will also be attempting to sell to net new customers as well as established accounts.
Over the last couple of years, IBM, despite having a rich internal technology ecosystem and a number of competitive blade and CI offerings, has not had a comprehensive integrated offering to challenge HP’s CloudSystem Matrix and Cisco’s UCS. This past week IBM effectively silenced its critics and jumped to the head of the CI queue with the announcement of two products, PureFlex and PureApplication, the results of a massive multi-year engineering investment in blade hardware, systems management, networking, and storage integration. Based on a new modular blade architecture and new management architecture, the two products are really more of a continuum of a product defined by the level of software rather than two separate technology offerings.
PureFlex is the base product, consisting of the new hardware (which despite having the same number of blades as the existing HS blade products, is in fact a totally new piece of hardware), which integrates both BNT-based networking as well as a new object-based management architecture which can manage up to four chassis and provide a powerful setoff optimization, installation, and self-diagnostic functions for the hardware and software stack up to and including the OS images and VMs. In addition IBM appears to have integrated the complete suite of Open Fabric Manager and Virtual Fabric for remapping MAC/WWN UIDs and managing VM networking connections, and storage integration via the embedded V7000 storage unit, which serves as both a storage pool and an aggregation point for virtualizing external storage. The laundry list of features and functions is too long to itemize here, but PureFlex, especially with its hypervisor-neutrality and IBM’s Cloud FastStart option, is a complete platform for an enterprise private cloud or a horizontal VM compute farm, however you choose to label a shared VM utility.