Day 3 : time to get hands on…

September 2, 2010

Today was different. Instead of spending too much time at sessions, I chose to go to the solutions lab.  Solution lab is a place where you can do hands on learning on various VmWare products and technologies. The entire solutions lab setup is pretty impressive. They have literally thousands of seats. Each seat has two monitors side by side and one WYSE zero client box. You choose a lab and connect to it. Then on one screen you are presented with step by step document for that particular lab and on the other screen, one to many VMs are at your disposal. I ended up working my way through Capacity IQ lab and learned about it’s features and functionality. At the end of the lab, the VMs are disposed off! In the center of the solutions lab there is a big screen showing everyone interesting stats of number of labs being run and total number of VMs in use. Here are some photos of those screens. I plan to go back and do some more solution labs for sure.

Later on I roamed around on the exhibition floor. I really don’t like this part of attending a conference. Every booth that you go to they look at you suspiciously until they are sure that you don’t work for their arch nemesis company. And as it always turns out the booths that interest me most are the ones that don’t really want me there! So it is always a lose-lose situation! So essentially I end up going through the aisles taking mental note of various companies so that I can go back and do some more research on the web!

Towards the end I attended a very good session by Chris Wolf of Gartner. Chris talked about couple of very interesting things. One of them was a concept of “Infrastructure Authority” and Cloud Maturity Model. This is the first cloud maturity model I have seen that makes lot of sense.

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Day 2 : One war ends and another begins…

September 1, 2010

<<opinions expressed in this blog are my own only>>

Day 2 at VmWorld was very exciting. The highlight of the day was the keynote speech by Paul Maritz and Stephen Herrod. The complete recording of the keynote is here.

Paul introduced the concept of IT As A Service and the three layers that he calls the “New Stack”. In the bottom most layer called Cloud Infrastructure & Mgmt is composed of all the building blocks such as vSphere, vCenter, vShield and the latest vCloud Director. vCloud Director is VmWare’s official entry into the cloud management space.

The second layer is what VmWare calls as Cloud Application Platform. This is where their latest acquisitions such as Spring, GemStone and Hyperic play a vital role. This according to VmWare is what new applications of tomorrow need to be built upon!

The top most layer is End User Computing and this is where they have put desktop virtualization VmWare View and even SaaS applications.

It was interesting to see VmWare’s attempt of redefining the space with this “new stack”! VmWare is simultaneousness taking on players from infrastructure (compute, network, storage), middleware (PaaS players, security players) and end user (SaaS, virtual desktop and mobile device management). IMHO, it’s a good strategy however it appears that they are spreading themselves too thin.

After Paul Maritz, Stephen articulated their new strategy very well. I especially liked the way he explained the concept, “Service Catalog in Enterprise” analogous to “App Store for Consumer”. This was very innovative and refreshing.

It almost seems like VmWare wants to distance itself from the commodity markets of virtualization platforms and move up the ladder into our space, management space!

Today VmWare also unveiled their latest acquisitions namely Integrien and TriCipher.

It is a very interesting coincidence that President Obama declared an end of war in Iraq on the same day that VmWare now engages in a fierce, hand to hand combat with new competitors! Life gets interesting…


Day 1 : VmWorld 2010

August 30, 2010

Writing an entry on this blog after a long time. Looking at my own blog I am realizing that most recent entries are all conference reports! :)

Day one at VmWorld 2010 conference was a much better experience than last year. The registration process was very efficient and materials pick up was smooth. Unlike last year lines were shorter.

At first you don’t understand the meaning of the tag line of the conference, “Virtual Roads. Actual Clouds”. The tag line is pretty well advertised and you start seeing it even when two blocks away from Moscone Center. Once you give it a bit of thought you realize the neat message that VmWare is trying to convey from that simple line. It has always been the case that VmWare wants you to think that everything is 100% virtual (VMs). So the tag line is actually saying that Virtualization is THE road to realize actual clouds!! I think it is a brilliant tag line that conveys their strategy in simple 4 words!

First session I attended was by our very own CTO, Kia Behnia, “A Vision for a Hybrid Cloud: Seamless and Consistent Management of Private and Public Cloud Environments”. I have seen Kia’s presentations before and it is always engaging and educating for audiences. Today also he did an excellent job and outlined 10 steps for enterprises to move to using hybrid clouds. I could see many audience members furiously jotting down those 10 points as Kia was going over them.

Second session I attended was by VmWare team and was about “vApps, OVF and Advanced VM Templates in vSphere”. It was presented by Steffen Grarup and Martin Amdisen of VmWare. Steffen used the analogy of shipping containers that revolutionized shipping industry. He said that similar to shipping containers we need a “software container” that can reduce end to end application movement friction and foster application mobility between clouds. The three containers he outlined were,

  1. VMs
  2. vApp
  3. OVF Package

Here are some links to explore the vApp, OVF further, ovf, vApp. Last but not least their blog is at, http://blogs.vmware.com/vapp


Taking the plunge…

October 27, 2009

Today I attended an excellent session by Naeem Zafar on how to start a business. You can find out more about Naeem on his website. Below are my rough notes from this excellent session.

Essential Steps

Find unmet need –> Validate Need –> Market Research –> Create Investor Material –> Find Team –> Write Biz Plan

Important Questions To Ask

  • Who needs it?
  • How many people need it?
  • How will I make money?
  • How will I be different from others?

Need to garner profound understanding of the market and customers.

Following are sections of your business plan,

  1. Executive Summary (One paragraph each for #2 through #13 below)
  2. Unmet need
  3. Market Size
  4. Competitive Landscape
  5. Your idea (your secret sauce)
  6. Positioning (is what you do etched in customer’s mind)
  7. Business Model
  8. Your Team
  9. Go to market strategy (how do you find customers and sell to them?)
  10. Key Financial Assumptions (For a restaurant, % of total table occupancy per week, # of rotations per night for a given table, total average bill per table etc.)
  11. Financial Projections
  12. How will you use additional funds? (Expand in other geographies, hire sales team etc.)
  13. Status timeline & where you are (Six months before today and 18 months from now, swimlane)
  14. Supporting data and research

Total 24-58 pages long, 12-14 slides (one slide per # above)

Market Research

Talk to at least 10 customers and 10 users. (Customer is who buys your product, user is who uses it. e.g. Parent will be customer while a teenager is an user)

Typical equity divide ==> 70% founders, 20% early employees, 10% Advisors

Series A is generally to finish product development (VCs take 40-60% equity in your company). Series B is get first customer. Series C is to scale and position to exit. VCs on a average have 20-25% stake. They are looking for 80-100 million exit. This means that total valuation at exit should be 400-500 million. This means that your idea needs to tap into a large market for it to be attractive to a VC.

Advisory Board Composition

  1. One Market Guru or domain expert
  2. One Tech Guru (who can guide you about technology to use)
  3. One Personal Coach
  4. One Connector (who can pick up a phone and connect you to the right person)
  5. One Celebrity (who may never attend your board meetings but is there for the impact)

Don’t bring up your idea when doing your market research as it will dilute the feedback you get. Don’t tell them that you have this idea/solution and how they like it? Ask them what their unmet needs and problem areas are.

Free sources for market research, www.10kwizard.com, www.sec.gov

Positioning is “what you do” etched in customer’s mind!

  • We are like _______ and unlike _______
  • We are like _______ except ________

Pick two axes and draw how you and competition looks on this matrix.


Convergence…

September 25, 2009

Came across this great video with lots of fascinating data in it. Here are some of the snippets that I found interesting. Do check out the video too.

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Visit blogadda.com to discover Indian blogs


Musings on why “Cloud Computing” will prevail…

September 22, 2009

In recent Hype Cycle for Cloud Computing 2009 special report by Gartner, technologies at the ‘Peak of Inflated Expectations’ include Cloud Computing! (For description of five phases of Hype Cycle look here) This means that Cloud Computing is on the verge of entering the ‘”Trough of Disillusionment” phase.

Many technologies have been unable to come out of this dreaded trough where they fail to meet expectations and quickly become unfashionable. Articles such as “Could the cloud lead to an even bigger 9/11” clearly indicate that Gartner’s analysis is right and that cloud computing indeed has reached the peak of hype!

CloudComputingBlog

This article is my musings on why cloud computing will eventually come out of this phase and would reshape the way we run business.

I had an opportunity to attend VmWorld 2009 conference. During the course of this conference, VmWare announced its latest initiative, vCloud. vCloud is essentially using VmWare’s virtualization technology to create an ecosystem of cloud service providers. With this initiative VmWare joins already crowded space of public cloud providers such as Amazon, Rackspace Cloud and Savvis. Out of all the exhibitors at the VmWorld conference, almost everyone was trying to get on the bandwagon of Cloud Computing. And this was not even a Cloud Computing focused conference! The more you look into Cloud Computing the more you feel like it is indeed the next big thing after the internet gold rush of 90s.

All this hype for Cloud Computing feels like a déjà vu. Turn the dial few years ago and the area of Software As A Service (SaaS) went through very similar transition. After SaaS reached the trough of disillusionment skeptics were raising doubts. Many argued that they would never consider putting their competitive data (CRM) in a software system outside of their corporate networks. Salesforce had to fight an uphill battle as it tried to establish its SaaS products. However the value proposition of SaaS, in terms of zero install and pay-as-you-go was too attractive to ignore. Today SaaS is the architecture of choice for many enterprise software products and last time I checked Salesforce is sitting pretty at a massive market cap of 7.13 billion dollars!

Let’s look at the benefits of Cloud Computing,

  • Lower Costs – OPEX not CAPEX: Cloud Computing avoids capital expenditure (CapEx) on hardware, software and services by renting it from a third party provider (such as Amazon). Consumption is usually billed on a utility (resource based like electricity) or subscription (time based, like a monthly cable subscription) basis with little or no upfront cost. You pay as you go and pay for what you need. This seemingly straight forward benefit has deep impact on business models and strategy.
  • Self service and Agility: Provisioning a server used to take days if not weeks. With Amazon you can procure a server on their public cloud in minutes! Users can generally terminate the contract at any time (improving ROI and eliminating financial risks), and the services are often covered by service level agreements (SLAs) with financial penalties.
  • Focus on your business: Cloud computing abstracts away underlying resources (server, network and storage) and management of it so that you can focus on your core business. Win-win for Providers and Consumers. Cloud Infrastructure and services are by default multi-tenant enabled, with multiple customers sharing resources and the costs associated with these. Providers run centralized infrastructure at low cost locations and make use of expertise of providers in terms of utilization and efficiency of infrastructure. Providers benefit with increased efficiency due to economies of scale and are able to provide the same service at lesser costs to happy consumers.
  • Elastic Scalability: Hosting your applications on Cloud Infrastructure enable dynamic (“on-demand”) provisioning of resources that can be done at near real time, without having to waste server resources engineered for peak loads. This enables small business to start offering their services on the web with low entry barriers and then scale as and when their load demands are higher. Consider for example that you want to start a small web based business selling toys. Your business plan calls for exponential growth with number of customers ramping from few hundred in the first year to thousands in 2-3 years to million plus in 5-7 years. Ofcourse this plan does not even include wild fluctuations during peak holiday seasons. Until today, planning for this type of scenario involved lot of upfront costs that created huge barriers of entry for start ups. Now with cloud computing and public cloud infrastructure, such small companies can dream of doing exactly what they want to do and provides them with unlimited elasticity!

Just like the SaaS success story, it will be the benefits of the “cloud” that will eventually win over the skeptics due to underlying benefits. Of course an important factor would also be for an eco system to evolve in a timely fashion. One of the reasons why SaaS was successful was the fact that an entire ecosystem made itself available that rendered well to the SaaS Model including Web Standards (SOAP, WSDL, UDDI) and architectures such as AJAX.

Similar to the platform wars of the eighties (followed by browser wars of nineties), Cloud Computing is currently going through a war with each player trying to establish itself as the destination. Some efforts have started to promote interoperability and openness of cloud. Open Cloud Initiative is one such example. However it remains to be seen how the industry as a whole matures and adopts such efforts…

Cloud computing is here to stay and will succeed as a concept eventually. It has the power to establish new business models and change existing processes. More will have to be written about what does it mean for enterprises of tomorrow to manage their businesses in cloud. Do provide feedback via your comments if you would like to hear about it more…

Suhas leads the Innovation & Incubation Lab at BMC Software India. Prior to BMC he was the Vice President of Product Management at Digite, an enterprise software company in the field of Project Portfolio Management. See his linked-in profile for details.


History repeats…Platform wars all over again

September 3, 2009

Today, the second day of the VmWorld 2009 conference, VmWare announced vCloud Express, a new class of service that will deliver on-demand, much like Amazon Web Services’ Elastic Compute Cloud (EC2) or public cloud. It was only a matter of time before VmWare played it’s cards in this area. What is unique about this announcement is that VmWare itself will not be creating public clouds but will simply enable various service provides to build public clouds! One such provider is Terremark and you can see comparison with Amazon at their web site here, http://vcloudexpress.terremark.com/

There is more information about vCloud Express at this blog.

vSphere Architecture

vSphere Architecture


VmWorld 2009 Keynote Speech

September 3, 2009

This week I am attending VmWorld 2009 conference. This is the first time I am attending this conference and I am really looking forward to attending various interesting sessions. The agenda of sessions looks impressive.

Paul at KeynoteFollowing are my notes from the keynote speech by Paul Maritz, CEO of VmWare. The key theme of Pauls message was to “Energize business through IT”. As per him virtualization can help you with this theme in following three ways,

  • Saving financial energy via reducing capex and opex due to virtualized servers
  • Saving human energy (for data center folks) by focussing on delivering business services rather than hardware
  • Saving Earth’s engergy by reducing energy requirements of business by up to 80%

Another advantage of virtualization he pointed out was agility. He continued to point out that your business agility depends upon IT agility.

Couple of other nuggets from his speech,

  • Storage is one of the biggest costs for a data center. Requirement for storage keeps on increasing every day.
  • vSphere is one of the largest development activities that VmWare has undertaken in it’s history. He mentioned that it has taken 1500 engineers 2 years to build vSphere. Considering his Microsoft background, it is understandable that he has a strong inclination towards establishing vSphere as the cloud OS, or uberOS!
  • He unveiled IT in a box initiative for SMB businesses at $166 per processor pricing
  • There were 3 or 4 distict on stage demos. To me, those demos were not well connected with each other and showed only fractional feature leaps. One such demo was done by HP where they showed an integration with vCenter to manage physical servers from within vCenter UI.

To me, most interesting things from his speech were references to resource pools and overall VmWare direction. He mentioned that in coming year, there will be lot of new product launches from VmWare in the areas of Capacity Management, Configuration/Operations tools, Service catalogue, Self Service, Chargeback and most interestingly Application Provisioning and Application Scheduling!!! This is something that I personally would be tracking very closely!


Changing landscape of data centers

June 18, 2009

The following blog post was also published on PuneTech

I had an opportunity to speak at the very first BMC India Technical Event held in Bangaluru on June 11th, 2009. At this event I talked about the changing landscape of data centers. This article is an excerpt of the talk intended to facilitate understanding of the presentation. The entire presentation is available here.

There are many factors causing the landscape of data centers to change. There are some disruptive technologies at play namely Virtualization and Cloud Computing. Virtualization has been around for a while but only recently it has risen to the level of making significant impact to data centers. Virtualization has come a long way since VMware first introduced VMware Workstation in 90s. The product was initially designed to ease software development and testing by partitioning a workstation into multiple virtual machines.

The virtual machine software market space has seen a substantial amount of evolution, The Xen® hypervisor, the powerful open source industry standard for virtualization. To vSphere, the first cloud operating system, transforming IT infrastructures into a private cloud-a collection of internal clouds federated on-demand to external clouds. Hardware vendors are also not too behind. Intel/AMD and other hardware vendors are pumping in lot of R&D dollars to make their chipsets and hardware optimized for hypervisor layer.

According to IDC more than 75% companies with more than 500 employees are deploying virtual servers. As per a survey by Goldman Sach’s 34 per cent of servers will be virtualized within the next 12 months among Fortune 1000 companies, double the current level of 15 per cent.

Cloud computing similarly existed as a concept for many years now. However various factors finally coming together that are now making it ripe for it to have the most impact. Bandwidth has been increasing significantly across the world that enables faster access to applications in the cloud. Thanks to success of SaaS companies, comfort level of having sensitive data out of their direct physical control is increasing.

There is increasing need for remote work force. Applications that used to reside on individual machines now need to be centralized.

Economy is pushing costs to go down. Last but not least, there is an increasing awareness about going green.

All these factors are causing the data center landscape to change. Now let’s look at some of the ways that the data centers are changing.

Data centers today are becoming much more agile. They are quick, light, easy to move and nimble. One of the reasons for this is that in today’s data center, virtual machines can be added quickly as compared to procuring and provisioning a physical server.

Self service provisioning allows end-users to quickly and securely reserve resources and automates the configuration and provisioning of those physical and virtual servers without administrator intervention. Creating a self-service application and pooling resources to share across teams not only optimizes utilization and reduces needless hardware spending but it also improves time to market and increases IT productivity by eliminating mundane and time consuming tasks.

Public clouds have set new benchmarks. E.g. Amazon EC2 SLA for availability is 99.95% which raised the bar from traditional data center availability SLA significantly. Most recently another vendor, 3Tera came out with five nines, 99.999% availability. Just to compare Amazon and 3Tera, 99.999% availability translates into 5.3 minutes of downtime each year, the different in cost between five 9’s and four 9’s (99.99 percent, or 52.6 minutes of downtime per year) can be substantial.

Data centers are also becoming more scalable. With virtualization, a data center may have 100 physical servers that are servicing 1000 virtual servers for your IT. Once again due to Virtualization, data centers are no longer constrained due to physical space or power/cooling requirements.

The scalability requirements for data centers are also changing. Applications are becoming more computation and storage hungry. Example of computation sensitive nature of apps, enabling a sub-half-second response to an ordinary Google search query involves 700 to 1,000 servers! Google has more than 200,000 servers, and I’d guess it’s far beyond that and growing every day.

Or another example is Facebook, where more than 200 million photos are uploaded every week. Or Amazon, where post holiday season their data center utilization used to be <10%! Google Search, Facebook and Amazon are not one off examples of applications. More and more applications will be built with similar architectures and hence the data center that hosts/supports those applications would need to evolve.

Data center are becoming more fungible. What that means is that resources used within the data centers are becoming easily replaceable. Earlier when you procured a server, chances were high that it will be there for number of years. Now with virtual servers, they will get created, removed, reserved and parked in your data center!

CloudBlog1

Data centers are becoming more Utility Centric and service oriented. As an example look at Cisco’s definition of Data Center 3.0 where it calls it infrastructure services. Data center users are increasingly going to demand pay as you go and pay for what you use type of pricing. Due to various factors, users are going to cut back on large upfront capital expenses and instead going to prefer smaller/recurring operating expenses.

Most organizations have either seasonal peaks or daily peaks (or both) with a less dramatic cost differential; but the cost differential is still quite dramatic and quite impactful to the bottom line. In addition, the ability to pay for what you use makes it easy to engage in “proofs of concept” and other R&D that requires dedicated hardware.

  • As the discrepancy between peak usage and standard usage grows, the cost difference between the cloud and other options becomes overwhelming.

Technology is changing; the business needs are changing, with changing times organization’s social responsibilities are changing. More and more companies are thinking about the impact they have on the environment. Data centers become major source of environment impact especially as they grow in size.

A major contributor to excessive power consumption in the data center is over provisioning. Organizations have created dedicated, silo-ed environments for individual application loads, resulting in extremely low utilization rates. The result is that data centers are spending a lot of money powering and cooling many machines that individually aren’t doing much useful work.

Cost is not the only problem. Energy consumption has become a severe constraint on growth. In London, for example, there is now a moratorium on building new data centers because the city does not have the electrical capacity to support them!

Powering one server contributes to on an average 6 Tons of carbon emissions (depending upon the location of the server and how power is generated in that region) It is not too farfetched to claim that every data center has some servers that are always kept running because no one knows what business services depend on them but in reality no one seems to be using them. Even with the servers that are being used, there is an opportunity to increase their utilization and consolidate them.

Now that we have seen some of the ways that the data centers are changing, I am going to shift gears and talk about evolution of data centers. I am going to use the analogy of evolution of web to changing landscape of data centers. Just like web evolved from Web 1.0 where everyone could access, to Web 2.0 where people started contributing to Web 3.0 where the mantra is everyone can innovate.

CloudBlog2

Applying this analogy to Data Centers we can see how it has evolved from its early days of existence to where we are today,

Using the analogy of Web world, we can see how data centers have evolved from their early days till now.

  • In the beginning, Data centers were nothing but generic machines stored together. From there it evolved to blade servers that removed some duplicate components and optimized. Now in DC3.0, they are becoming even more virtual and cloud based.
  • So from mostly physical servers we have moved to Physical and Virtual servers to now where we would even treat underlying resources as virtual.
  • Provision time has gone down significantly
  • User participation has changed
  • Management tools that used to be nice to have are playing a much important role and are becoming mandatory. Good example once again is UCS where Bladelogic Mgmt tool will be pre-installed!
  • The role of a data center admin itself has changed from mostly menial work into a much more sophisticated one!

CloudBlog3

Here is the entire presentation from that event. And here are some photos,

Delivering the key note speech

Delivering the key note speech

Engaged in a lively conversation with other key note speaker, Doug Muller

Engaged in a lively conversation with other key note speaker, Doug Muller


Learnings from the VCs

April 8, 2009

I had an opportunity to meet up with bunch of VC folks in BLR area. Here are my notes from those discussions.

  • dollar-signWhen funding VCs look for the core team to be in one place. It has been proven time and again that when the core team is together, success rates are higher.
  • 2/3rd of the companies that get VC funding don’t even return their capital money. This means that 7 out of 10 companies fail. This is actually an optimistic number than what I had read about Bay area startups which had a failure rate of 9 out of 10!
  • In most cases, VCs are interested in funding a company and exit in 4-5 years timeframe. As such they are looking to build a company that becomes a good acquisition target
  • VCs tend to invest in growing markets and also in larger markets! Market size should be more than $2-2.5 billion for VCs to get interested in it.
  • As per VCs, product companies should own IP. This means having patents!
  • VCs want to make $5-15 million investment and wants to know how you will reach $75-100 million mark!
  • Usually raising capital takes about 6-12 months time!

Some words of wisdom from a reputed VC from a reputed global VC company out of BLR

  • Articulate why you exist and then articulate why would you exist 5 years from now!
  • Parallelize Sales and Marketing Geographics first rather than build next set of features.
  • Have a 10 page price list. Longer price list means you have given enough thought to how to sell your product in various situations.
  • Always increase price with every new customer! The VC gave an example that after funding a start up they immediately doubled their product license price. Customers did not flinch and continued to flock. As per VCs, more often than not, founders tend to under price their products.
  • Rule of thumb for pricing discounts, if it costs $1 in US, then it should be priced 1 pound in UK, 1 euro in Europe and $0.60 in India/APAC
  • Don’t build a product because you love it. Build a product because your customers love it.
  • Second round of financing hurts founders more than the first round VCs

If you want to further look into what VCs are looking for then visit this link. It has point by point description of what VCs are looking for when evaluating an idea. Good luck for your next venture!


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