The Non-Box Company

EMC moved out of the “box company” role in 2003, purchasing Legato Systems to move into enterprise backup software and Documentum for enterprise content management, but this was only a warm-up. Many were puzzled by the 2003 purchase of virtualization pioneer, VMware, but it has played out to be one of the shrewdest moves of the decade. Although their revenue remains small in comparison to the parent company, VMware is arguably more important today to the modern data center than EMC itself. Later purchases like System Management Arts (SMARTS), Configuresoft, and RSA further expanded EMC’s footprint.

More telling are the moves VMware has made. SpringSource, Zimbra, and GemStone add up to very much a non-infrastructure world for the “infrastructure company.” EMC is clearly moving into the application platform space, leveraging this reach to consolidate their control over the underlying infrastructure.

Moving On Up

This seems to be the real EMC vision: Move up the stack, offer a compelling IT strategy, and move tons of heavy datacenter gear. This isn’t unique; It’s a re-play of IBM’s game plan from decades past. But EMC finds itself in a moment of transformation for corporate IT: Application development teams no longer care about infrastructure, and the rest of IT must finally transform itself to keep up with their needs.

Read my thoughts on The Techie/Business Schism for more on this IT transformation

Make no mistake: IT is in the middle of a revolution, not a simple equipment transition (think mainframe-mini-micro). Rather, the new world of IT is application-centric and big enterprise iron is becoming less visible and strategic. Surely, future IT architects will be able to deploy monolithic integrated blocks or stacks (like the EMC/Cisco vBlock), but many will choose to deploy lighter scale-out systems based on commodity hardware. The choice will be made based on finance or business strategy, not technological capabilities because higher-layer software will make hardware increasingly irrelevant.

Selling the Strategy

What is an avowed infrastructure company like EMC to do? Many of their competitors are doubling down on advanced storage hardware, but the smart ones are focusing on software instead. EMC is certainly moving towards a common hardware platform differentiated by software “personality” but their strategy must go well beyond this. The company must focus on the new IT world, selling product as a foundation for the next generation of applications, not merely a “faster/better” storage box for today’s apps.

Yet it would be foolish to make a wholesale move and abandon existing systems and protocols. EMC’s revenue stream depends on continued Fibre Channel, iSCSI, and NAS array sales even as they transition to systems that bear little resemblance to today’s Symmetrix or Celerra. They must develop and market a forward-looking strategy yet not abandon their cash cows.

In other words, EMC must say one thing while, for the most part, doing something entirely different. This “run the business while changing the business” challenge has been the downfall of many. The few who have successfully transitioned are the exception rather than the rule. EMC has a tough road ahead, but my conversations with company insiders at EMC World this week show that they are well aware of the challenge. This puts them well ahead of many in the storage industry, and explains my continuing focus on EMC.

© sfoskett for Stephen Foskett, Pack Rat, 2010. | EMC’s Tough Road to the Post-Infrastructure Future
This post was categorized as Computer History, Enterprise storage, Gestalt IT. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Although my dislike for certain aspects of trade shows (especially booth babes and chotchkies) are well documented, I’ll be trying some new ideas:

• I’ve been working on a concise overview of cloud storage for my in-stage presentation (Tuesday at 11:30 in the main ballroom)
• Being a cloud vendor, we will have a very plain booth – what better way to represent reduction in data center footprint than demoing our offering from an empty table?
• Rather than giving away some cheap flashy-light junk, we will be offering attendees a free tree. Seriously! Everyone who visits our booth will get a tree planted in their name, doing a bit to offset the massive environmental impact of the show and demonstrating the positive environmental impact of cloud computing.
• We will have three technical experts, one CEO, and two salespeople on the show floor, matching my suggested 50-50 ratio of tech and sales.
• We will be offering a free cloud computing strategy workshop to interested and qualified attendees following the show to facilitate deeper discussion.
• We are also hosting a CIO-level roundtable discussion in New York with some of the City’s top companies in October.

This is a major test, in my opinion, of substance over flash. Although cheap gimmicks might attract short-term attention, I believe that they do nothing to deliver real results. Instead, we’ll be applying our best people and ideas and demonstrating both our values and our value. Wish me luck, and I’ll see you in New York!

As many folks know, I wear two hats: I work full-time as Director of Consulting for Nirvanix, where I help customers realize the strategic value of cloud storage. In my off-hours I also write, speak, and generally gad about the industry as a sort of non-analyst. If you or your company will be at Storage Decisions New York 2009, drop me a line and let’s meet up!

© sfoskett for Stephen Foskett, Pack Rat, 2009. | What’s All This About Cloud Storage? Ask Me At Storage Decisions
This post was categorized as Enterprise storage, Personal, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Challenges for Enterprise IT

I’ve spent 15 years focused on the business of IT, with a special interest in data storage, since it makes up such a large part of modern information systems and budgets. The current crisis has forced many of us in enterprise IT to focus inward, tackling the tough challenges inside our data centers rather than adding on exciting new capabilities. The priority has shifted from features with a potential for cost avoidance to real current-year cost savings.

Even as budgets are tightening, we continue to pour good money after bad. This happens everywhere, buying too much of what we don’t want or need.

• As the high end marches ever-higher, we find that most applications require lower tiers of capability
• Data center managers are scrambling to control power and cooling costs
• At the same time, utilization of existing resources remains low, especially storage systems

But change is in the air. Enterprise IT is questioning their old assumptions.

• The monolith of IT infrastructure is finally becoming a pyramid, with a small amount of super high-end “tier-0″ capability and a widening reliance on lower tiers of bulk capacity
• Virtualization of servers and storage is having a real impact, enabling mobility of systems, applications, and data across tiers
• Enterprise IT is increasingly offloading non-essential services to outside partners who can deliver focus and economics

A New Challenge for Me

I have always tried to focus my efforts on making a difference in my little corner of the world, so the time has come for me to make a change professionally.

I am pleased to announce that I am joining Nirvanix, where I will be starting a new strategic consulting practice. We will focus on enabling enterprise customers to leverage modern data storage technology for infrastructure transformation. Nirvanix shares my vision of evolved IT infrastructure supported by tiers of applications, servers, and especially storage. Nirvanix moving forward and attacking the storage issues that face enterprise IT head-on!

I pride myself on giving honest and straightforward advice, and this will not change. Nirvanix Consulting will deliver independent and trustworthy advice, and this is exactly what enterprise IT organizations require and demand. Although Nirvanix provides managed offsite storage as a service to enterprise customers, this offering is not the correct answer for every application or business. In discussing this business concept with Nirvanx CEO, Jim Zierick, I stressed that I will certainly sometimes recommend competing solutions, and that the right move for some is reuse of existing assets. Zierick, who was formerly a partner at the respected consultancy, McKinsey, agrees with this independent approach. We must help each client to develop a strategy that is appropriate to their needs.

Although I have a new professional affiliation, my independence and commitment to the storage community will not change. I remain committed to open communication, and will maintain my Pack Rat blog, Gestalt IT, and my other public writing and speaking activities. Now let’s get down to work!

© sfoskett for Stephen Foskett, Pack Rat, 2009. | Changing Times Demand Focus
This post was categorized as Enterprise storage, Personal, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Sun is getting into the cloud services business, but which market is their target?

While the bulk of Sun-related news this week relates to reported talks of a buyout by IBM, the company took a break from negotiations to introduce their own cloud computing and storage infrastructure, challenging Amazon, Google, Rackspace, and perhaps VMware, Microsoft, and Nirvanix.

Sun is leveraging the assets they acquired from Q-layer earlier this year on top of OpenSolaris, MySQL, ZFS, and just about everything else in their arsenal to offer their own virtual data center (VDC) strategy. The Sun Cloud will be a private (inside the firewall) environment offering mobility of virtual machines. Q-layer had partnerships with both VMware and Microsoft and functioned with Windows, OpenSolaris, and Linux, suggesting that this will be quite a full-featured offering. Suddenly Sun’s free OpenSolaris offering on Amazon EC2 makes a lot more sense – it provides a gateway to take virtual computing business from the Bezos team!

One very nifty angle Sun is taking is enabling VirtualBox system images to be saved to (and presumably run in) their cloud. I wonder about monetization, since VirtualBox is more of a desktop virtualization system than VMware ESX and Microsoft Hyper-V, but the prospect of clicking “Upload to Cloud” is intriguing! OpenOffice will also allow cloud storage, a foil to Google Apps.

The Sun Cloud also includes a managed storage service. Sun apparently has three storage protocols: A proprietary Sun Cloud Storage API, WebDAV, and an object API likely leveraging Amazon’s AWS. The company claims that they are API-compatible with AWS, allowing applications written with Amazon in mind to be easily ported to their cloud storage service.

One key point to consider with all of this cloud talk, however, is how prepared each company is to support enterprise computing needs. Long-term viability depends on paying customers, and only the largest systems can attract enough end-user nickels and dimes to survive. Enterprise solutions are where the real money is, and questions remain about how prepared companies like Amazon, Google, and Rackspace are to support the needs of corporate users.

There are really three cloud markets: Shared clouds for small developers and enterprise customers and private cloud systems. Amazon was strong from the start with the little guys, Web 2.0 startups and end-user services like Jungle Disk, and Rackspace/Mosso and Google are challenging them in this space. Sun’s focus on AWS compatibility and VirtualBox suggests that they plan to play in this sandbox.

But the enterprise cloud is another matter entirely. Nirvanix stands strong in shared managed storage services, racking up win after win with big customers. EMC, VMware, Microsoft and others are positioning themselves as private alternatives in this space. Will Sun try to compete here, too? They are certainly talking about private clouds and the virtual data center, but there is a serious risk that they will lose focus trying to take on too many roles, and enterprise users won’t tolerate poor pre- and post-sales support! 

© sfoskett for Stephen Foskett, Pack Rat, 2009. | Sun Launches Their Own Cloud, But For Which Market?
This post was categorized as Enterprise storage, Gestalt IT, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

I think this lack of strategic thinking is a reaction to the reality of life in IT rather than any deficiency on the part of IT folks. Modern distributed-systems (read UNIX and Windows) IT infrastructure managers are treated like second-class citizens – “here, watch this stuff while I do some real work.” They have little real knowledge of the applications they supposedly support (even IT applications people have little to do with infrastructure folk) and thus are totally unable to appropriately manage systems, especially storage.

Imagine is your rich uncle gave you a garage half full of blank boxes and said “keep this all safe for me, but don’t look inside the boxes, ok?” Then every few days he came by and handed you some more blank boxes, some heavy, some misshapen, but all unknown. After a year or so, you came to him and said “ummm, the garage is full and I don’t know what to do!” His reaction would, of course, be “I told you to manage it!” Then, patronizingly, “very well, I’ll get you another garage…”

Sound like the storage industry? We simply cannot be strategic until we know more about the data we are storing, and that means we have to muscle our way to a seat at the grand business applications table. This is the true challenge of IT in the coming years, not green computing or ILM or any of those other supposedly strategic things we focus on.

But all of these pseudo-strategy we do presents an opportunity. Take on a challenge like ILM with a data classification or tiered storage project. Put your results in front of Management – real business management, not the VP of IT operations or whatever. Show them that you do have the ability to form complex thoughts and ask for their input. You might even get invited to the table…

© sfoskett for Stephen Foskett, Pack Rat, 2007. | A Seat At the Table
This post was categorized as Enterprise storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.