IBM Sheds Yet Another Hardware Business - Pays to Get Rid of Semiconductor Fabrication

Richard Fichera
While the timing of the event comes as a surprise, the fact that IBM has decided to unload its technically excellent but unprofitable semiconductor manufacturing operation does not, nor does its choice of Globalfoundries, with whom it has had a longstanding relationship.
 
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New ARM-based Moonshot Servers from HP Exemplify Workload-Specific Computing

Richard Fichera

One of the developing trends in computing, relevant to both enterprise and service providers alike, is the notion of workload-specific or application-centric computing architectures. These architectures, optimized for specific workloads, promise improved efficiencies for running their targeted workloads, and by extension the services that they support. Earlier this year we covered the basics of this concept in “Optimize Scalable Workload-Specific Infrastructure for Customer Experiences”, and this week HP has announced a pair of server cartridges for their Moonshot system that exemplify this concept, as well as being representative of the next wave of ARM products that will emerge during the remainder of 2014 and into 2015 to tilt once more at the x86 windmill that currently dominates the computing landscape.

Specifically, HP has announced the ProLiant m400 Server Cartridge (m400) and the ProLiant m800 Server Cartridge (m800), both ARM-based servers packaged as cartridges for the HP Moonshot system, which can hold up to 45 of these cartridges in its approximately 4U enclosure. These servers are interesting from two perspectives – that they are both ARM-based products, one being the first tier-1 vendor offering of a 64-bit ARM CPU and that they are both being introduced with a specific workload target in mind for which they have been specifically optimized.

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Windows Server 2003 – A Very Unglamorous But Really Important Problem, Waiting To Bite

Richard Fichera

Very much in the shadows of all the press coverage and hysteria attendant on emerging cloud architectures and customer-facing systems of engagement are the nitty-gritty operational details that lurk like monsters in the swamp of legacy infrastructure, and some of them have teeth. And sometimes these teeth can really take a bite out of the posterior of an unprepared organization.

One of those toothy animals that I&O groups are increasingly encountering in their landscapes is the problem of what to do with Windows Server 2003 (WS2003). It turns out there are still approximately 11 million WS2003 systems running today, with another 10+ million instances running as VM guests. Overall, possibly more than 22 million OS images and a ton of hardware that will need replacing and upgrading. And increasing numbers of organizations have finally begun to take seriously the fact that Microsoft is really going to end support and updates as of July 2015.

Based on the conversations I have been having with our clients, the typical I&O group that is now scrambling to come up with a plan has not been willfully negligent, nor are they stupid. Usually WS2003 servers are legacy servers, quietly running some mature piece of code, often in satellite locations or in the shops of acquired companies. The workloads are a mix of ISV and bespoke code, but it is often a LOB-specific application, with the run-of-the-mill collaboration, infrastructure servers and, etc. having long since migrated to newer platforms. A surprising number of clients have told me that they have identified the servers, but not always the applications or the business owners – often a complex task for an old resource in a large company.

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Taking Stock Of Linux – Maturation Continues

Richard Fichera

[Apologies to all who have just read this post with a sense of deja-vue. I saw a typo, corrected it and then republished the blog, and it reset the publication date. This post was originally published several months ago.]

Having been away from the Linux scene for a while, I recently took a look at a newer version of Linux, SUSE Enterprise Linux Version 11.3, which is representative of the latest feature sets from the Linux 3.0 et seq kernel available to the entre Linux community, including SUSE, Red Hat, Canonical and others. It is apparent, both from the details on SUSE 11.3 and from perusing the documentation on other distribution providers, that Linux has continued to mature nicely as both a foundation for large scale-out clouds as well as a strong contender for the kind of enterprise workloads that previously were only comfortable on either RISC/UNIX systems or large Microsoft Server systems. In effect, Linux has continued its maturation to the point where its feature set and scalability begin to look like a top-tier UNIX from only a couple of years ago.

Among the enterprise technology that caught my eye:

  • Scalability – The Linux kernel now scales to 4096 x86 CPUs and up to 16 TB of memory, well into high-end UNIX server territory, and will support the largest x86 servers currently shipping.
  • I/O – The Linux kernel now includes btrfs (a geeky contraction of “Better File System), an open source file system that promises much of the scalability and feature set of Oracle’s popular ZFS file system including checksums, CoW, snapshotting, advanced logical volume management including thin provisioning and others. The latest releases also include advanced features like geoclustering and remote data replication to support advanced HA topologies.
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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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Extremes of x86 Servers Illustrate the Depth of the Ecosystem and the Diversity of Workloads

Richard Fichera

I’ve recently been thinking a lot about application-specific workloads and architectures (Optimize Scalalable Workload-Specific Infrastructure for Customer Experiences), and it got me to thinking about the extremes of the server spectrum – the very small and the very large as they apply to x86 servers. The range, and the variation in intended workloads is pretty spectacular as we diverge from the mean, which for the enterprise means a 2-socket Xeon server, usually in 1U or 2U form factors.

At the bottom, we find really tiny embedded servers, some with very non-traditional packaging. My favorite is probably the technology from Arnouse digital technology, a small boutique that produces computers primarily for military and industrial ruggedized environments.

Slightly bigger than a credit card, their BioDigital server is a rugged embedded server with up to 8 GB of RAM and 128 GB SSD and a very low power footprint. Based on an Atom-class CPU, thus is clearly not the choice for most workloads, but it is an exemplar of what happens when the workload is in a hostile environment and the computer maybe needs to be part of a man-carried or vehicle-mounted portable tactical or field system. While its creators are testing the waters for acceptance as a compute cluster with up to 4000 of them mounted in a standard rack, it’s likely that these will remain a niche product for applications requiring the intersection of small size, extreme ruggedness and complete x86 compatibility, which includes a wide range of applications from military to portable desktop modules.

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Decoding Huawei – Emergence as a Major IT Player Looms

Richard Fichera

Last month I attended Huawei’s annual Global Analyst Summit, for the requisite several days of mass presentations, executive meetings and tours that typically constitute such an event. Underneath my veneer of blasé cynicism, I was actually quite intrigued, since I really knew very little about Huawei. And what I did know was tainted by popular and persistent negatives – they were the ones who supposedly copied Cisco’s IP to get into the network business, and, until we got better acquainted with our own Federal Government’s little shenanigans, Huawei was the big bad boogie man who was going to spy on us with every piece of network equipment they installed.

Reality was quite a bit different. Ancient disputes about IP aside, I found a $40B technology powerhouse who is probably the least-known and understood company of its size in the world, and one which appears poised to pose major challenges to incumbents in several areas, including mainstream enterprise IT.

So you don’t know Huawei

First, some basics. Huawei’s 2013 revenue was $39.5 Billion, which puts it right up there with some much better-known names such as Lenovo, Oracle, Dell and Cisco.

 

% Revenue / $ revenue (Billions)

Annual Growth rate

Telco & network equipment

70 / $27.7

7%

Consumer (mobile devices)

24 / $9.5

18%

Enterprise business (servers, storage, software)

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HP Hooks Up With Foxcon for Volume Servers

Richard Fichera

Yesterday HP announced that it will be entering into a “non-equity joint venture” (think big strategic contract of some kind with a lot of details still in flight) to address the large-scale web services providers. Under the agreement, Foxcon will design and manufacture and HP will be the primary sales channel for new servers targeted at hyper scale web service providers. The new servers will be branded HP but will not be part of the current ProLiant line of enterprise servers, and HP will deliver additional services along with hardware sales.

Why?

The motivation is simple underneath all the rhetoric. HP has been hard-pressed to make decent margins selling high-volume low-cost and no-frills servers to web service providers, and has been increasingly pressured by low-cost providers. Add to that the issue of customization, which these high-volume customers can easily get from smaller and more agile Asian ODMs and you have a strategic problem. Having worked at HP for four years I can testify to the fact that HP, a company maniacal about quality but encumbered with an effective but rigid set of processes around bringing new products to market, has difficulty rapidly turning around a custom design, and has a cost structure that makes it difficult to profitably compete for deals with margins that are probably in the mid-teens.

Enter the Hon Hai Precision Industry Co, more commonly known as Foxcon. A longtime HP partner and widely acknowledged as one of the most efficient and agile manufacturing companies in the world, Foxcon brings to the table the complementary strengths to match HP – agile design, tightly integrated with its manufacturing capabilities.

Who does what?

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IBM Announces Next Generation POWER Systems – Big Win for AIX Users, New Option for Linux

Richard Fichera

On April 23, IBM rolled out the long-awaited POWER8 CPU, the successor to POWER7+, and given the extensive pre-announcement speculation, the hardware itself was no big surprise (the details are fascinating, but not suitable for this venue), offering an estimated  30 - 50% improvement in application performance over the latest POWER7+, with potential for order of magnitude improvements with selected big data and analytics workloads. While the technology is interesting, we are pretty numb to the “bigger, better, faster” messaging that inevitably accompanies new hardware announcements, and the real impact of this announcement lies in its utility for current AIX users and IBM’s increased focus on Linux and its support of the OpenPOWER initiative.

Technology

OK, so we’re numb, but it’s still interesting. POWER8 is an entirely new processor generation implemented in 22 nm CMOS (the same geometry as Intel’s high-end CPUs). The processor features up to 12 cores, each with up to 8 threads, and a focus on not only throughput but high performance per thread and per core for low-thread-count applications. Added to the mix is up to 1 TB of memory per socket, massive PCIe 3 I/O connectivity and Coherent Accelerator Processor Interface (CAPI), IBM’s technology to deliver memory-controller-based access for accelerators and flash memory in POWER systems. CAPI figures prominently in IBM’s positioning of POWER as the ultimate analytics engine, with the announcement profiling the performance of a configuration using 40 TB of CAPI-attached flash for huge in-memory analytics at a fraction of the cost of a non-CAPI configuration.[i]

A Slam-dunk for AIX users and a new play for Linux

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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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