Monday Links

My data center stock index was fairly steady last week, but closed down today, at $19.20. The Dow Jones Internet Composite Index tracked similarly and closed today at $58.83.

Here are some other items of interest I have run across recently:

• Wachovia initiates coverage on Data Center Space. "We believe the network neutral data center space represents a relatively safe derivative way to play on the continued growth of IP and internet traffic."

• Reuven Cohen has a very interesting blog post: "Cloud Interoperability and The Neutrality Paradox.

• Matt Stansberry has the Biggest Stories of 2008 article.

• The Seeking Alpha blog has a very nice write-up on the Equinix presentation, given with Dan Golding from Tier 1 Research: Operating Today's Data Centers & Key Industry Trends That Will Affect Your Business. This is a very nice presentation with some really good insights to supply and demand for the industry.
  

• As some of you know.... I have a pretty strong side interest in data center site selection. So much so I published a white paper on the topic last year. I am a visual learner, so I love having all of the maps of the U.S. for natural disasters and other things. I have started to work on a second version of the paper and recently found another map that is interesting. The International Journal of Health Geographics recently published some new research: Spatial patterns of natural hazards mortality in the United States. The paper "examines the spatial patterns of natural hazard mortality at the county-level for the U.S. from 1970-2004 using a combination of geographical and epidemiological methods". Click through to the PDF to see the various maps.

• DataCenterKnowledge has a nice video of the uber-awesome SuperNAP in Vegas.

• Even Bigger Nightmare on Tech Street

Data Center Videos

Backing up my statement from the Cisco C-Scape post that Video is indeed THE killer app, here are a few data center favorites:

• Episode #40 of Cisco's Techwise TV is out today. Switching Secrets for Multimedia

• Cisco: Understanding the Latest Secuirty Trends in an Evolving Landscape

• DataCenterKnowledge: Inside the HP POD container
  

• Intro to FCoE by EMC

• Layered Tech TV - Episode #1. AP - you'll have to tell me about the bet you lost. :)

• FORTRUST on a local news segment in Colorado. I love it when news anchors have absolutely ZERO idea what a data center is.

• Here is one for the what "not to do" file in employee training.

Dell's Containerized Data Center

Just a quick link to an article at The Register about Dell's recent entry to the container market. I think Dell has really thought this through and not just delivered a basic container, but a solution to the needs expressed by their clients.

The Register has some nice facts about the product, and an additional picture I had not seen before of a cutaway view of the container.
Check out the article here

Cisco C-Scape 2008

As I mentioned last Sunday, the Cisco C-Scape was held (virtually) last week. Due to a few too many things going on at work I couldn't attend in real-time, but I did go back and view a couple of the archived videos. Here are just a few of my thoughts/notes on C-Scape and a press-filled week for Cisco:

• My favorite C-Scape session was what CEO John Chambers said was his favorite as well -- Closing Q&A. I think John handled the questions quite well, and I can only imagine the pressure of being CEO of such an enormous company and getting bombarded day in and out with share holders, press and analysts. He mentioned that a week or so back he met with approximately 80% of Cisco share holders and said that their expectations for Cisco in the coming year was to be 'dramatically more aggressive (but don't mess it up)', even though the financial markets and overall outlook is set to be somewhat gloomy. He mentioned that their most aggressive investments will be in China and India, while still looking into Mexico and Brazil. John was asked what 'type' of company Cisco will be in 2012. He gave an answer that any good CEO would, but basically said that they have the "architectural play" and that their strength is in "the network is the platform".

• Bloomberg had an article last Tuesday about how Cisco may be a winner in the Obama plans for Infrastructure plays. Economist James Galbraith, a Democratic adviser, recommends spending more than $900 billion. "Just as the highway program moved the U.S. into a new era in the 1950's, technology companies such as Cisco expect the federal government will now lead the way to an information-based economy." Check out the Bloomberg article here

• Dec. 10th: Yahoo's Tech Ticker interview of John Chambers.
  

• Douglas Gourlay had a nice video about Data Center 3.0.
  

• Video IS the killer application. I can attest that watching videos on the computer has increased dramatically for me in the past year. The number of video's linked inside this post alone are a testament to the statement. Cisco is also increasing the use of videos as a basic communications form via informal (in their cubical) short videos, and the TechWiseTV podcast.
  

• One of my favorite bloggers and now Cisco employee with a really long title, James Urquhart has an article on Cnet about a Maturity Model for Cloud Computing . His title is "Marketing Manager/Technology Evangelist for Data Center Virtualization at Cisco Systems, Inc." :) I'm starting to agree with Larry Ellison and Christofer Hoff -- just what exactly is "the cloud" again? I think we should just go back to calling it "the Internet". James does have a very good article however and true to my ITIL roots he references a maturity model that actually does do a good job of explaining how a company might mature towards this mythical "cloud" of computing power.

• Finally; The Annual Cisco Security Report is set to be released today..... should be interesting

The Lego Cloud

Christian Belady and David Gauthier from Microsoft have started a blog on Microsoft data centers. They start off with a bang by building on the Michael Manos blog post about Generation 4 data centers. Christian and David sit down with Adam Bomb from the Edge Technet site and answer a fair amount of questions that came as a result of people reading the Gen4 ideas.

They talk about the fact that it is truely a modular solution for the entire data center, and not just the server containers. David mentioned legos as building blocks, so I couldn't resist the title to my blog post. :)

The only question un-answered that I can think of is about natural disasters. I would have to think that the containers are some how anchored down in order to protect against tornadoes.

The only other comment I'll make on this follow-up information is that David mentioned how much shorter the build time is for Gen4. Instead of 12-18 months for construction, they expect the Gen4 sites to be ready in 3-6 months! Christian then mentioned that they are 'piloting' the modular concepts, and pulling together specs, etc. Then...... earlier today I read a brief article from the Des Moines Register stating that the plans for Des Moines data center were still on track. The article says that construction is due to begin this Spring or Summer. I think that is enough time to really nail down the supply chain process and get those containers rolling into Des Moines! At the August press conference Michael Manos said “We are implementing a very new design that’s just coming out of our research and development department, so we need to get that finalized”. The other clue is that the Register article describes it as a "150,000 sq. ft. facility". I imagine this goes back to changing the entire model for a data center.... if they would have told the press they were building a 42-acre "yard" for containers they probably would have had some puzzled looks.

But.....if San Antonio is 470,000 sq.ft. and Chicago is 441,000 sq.ft - why is the Des Moines site only 150,000?

I'll be in Des Moines in a couple of weeks and see what other clues I can find on-site.

Level3 Cuts 8% of Workforce

As many have said now.... the economy will get worse before it gets better. Level3 announced that they are cutting 450 jobs in North America, about 8% of their work force. Maybe they should apply for a bailout. :)

Tech stocks in general were up today, as my data center stock index showed -- it was up $1.67 from just last Friday, closing at $19.87. The Dow Jones Internet Composite Index was up $2.76 from Friday, closing at $60.35.

As another indicator of tough times -- The Tribune Company, publisher of The Los Angeles Times and Chicago Tribune, filed for bankruptcy. I have to wonder if other major newspaper companies won't be far behind. The sale of the Chicago Tribune could mean the sale of the Cubs would be opened up to new prospective buyers.

In other tech news.... at least now we have a double-wide analogy to apply to containers. :)

The Week Ahead

It should be another interesting week for stocks and the market in general as the financial roller coaster continues. My data center stock index was up and closed the week at $18.18. The Dow Jones Internet Composite Index was up $5.22 for the week and closed at $57.59

I think traders should sell any telecom company stock associated with research firm Precursor. They released a report calling Google a bandwidth hog. It was just plain silly and I was glad to see that Google responded appropriately.

There are a few events happening this week, virtually, that I am planning on attending. The first is Cisco's C-Scape 2008. This looks to be pretty interesting and has a lot of the Cisco Senior and Executive VP's speaking. John Chambers will also participate! I saw the funny Nortel commercial today that talks about the Cisco "energy tax". I had not seen this commercial before, except in the parody done (moderately funny) below. Note there are 4 episodes all together on YouTube.




The other event I am looking at if I have time is "bMighty bOptimized: A deep dive on IT Infrastructure for SMBs." More information on it here.

It's also rumored that Microsoft will make some big announcement this week -- perhaps a Zune Phone. This Tuesday is also the last Patch Tuesday of the year and is supposed to be a pretty big one.


With any luck I will also get to the book review of Nicholas Carr's Big Switch. During the Thanksgiving break I was finally able to finish it. I really liked it and will do a quick review for anyone that has not read it.

Microsoft Generation 4 Modular Data Centers

Many people have commented and blogged on the recent post from Michael Manos about the Microsoft Generation 4 Modular Data Center strategy. I have watched the video about 5 times now and really like it. I especially like the fact that Microsoft is sharing this and giving so much information to the public about their strategies and countless hours of research.

If you haven't checked it out (are you living under a rock!), then it is VERY much worth the read. The post references a very nice video they produced to demonstrate some of the research and Gen 4 model for their data centers. It is complete with a piano soundtrack titled "Daybreak" (can't have a dramatic video like this without an appropriately named theme song. :) )

I do have just a few observations and questions that I thought I would log about the strategy, video and otherwise.....

• One of the most intriguing parts of the video, to me, was not mentioned in very much detail in the blog post. I liked the depiction of their distribution system for data centers: Mega data center, Anchor and Edge. I assume that the Mega data center feeds the anchors, and the Anchors then feed the Edge, which was comprised of the 4 basic containers. The Anchors could simply be a communication hub, since a lot of international fiber lines were drawn off of them.
  

• I am VERY excited that the Des Moines data center could potentially be the first Gen 4 data center. San Antonio was Gen 2, Chicago was Gen3 , so......

• I imagine this is just the details, but.... asset management could be simplified and streamlined for them as well. It looked to me like (in the video) that as the trucks were leaving the warehouse, they were scanned. It would be logical then also that they are scanned upon entering the edge or mega data center and the contents are automatically updated to note that the particular compute unit is now at that location.

• The biggest concern or question may just be a thing that I have to get past as the model for data centers evolves and advances. It may also just be applicable to this particular Microsoft strategy and not for others. Security! Natural Disasters! We see data centers built miles underground, have DoD-trained anti-terrorism staff, and have 3 foot thick re-inforced concrete. Yet, the video showed their mega data center with containers Outside!! I suppose security is established at the perimeter, and since the equipment is all inside the container there is no worry about privacy. As far as natural disaster prevention.....I'm stumped. Maybe they anchor the containers once in place. Maybe there are other measures in place that just weren't discussed.
  

• I also noticed that they discussed reducing the dependency on water cooling and overall use of water in the data center. I think this is a trend you will see more of in the coming years. Maybe they could put 3 or 4 windmills on top of each branch spine in the mega data centers.

• A question I had, and have had ever since containers have really taken off, is about the rest of world (not Google or Microsoft). How can radical design and engineering changes like the Gen 4 strategy apply to other business or the colo industry? The idea I have in my head for applying this to the colo industry, is something like what BastionHost is doing with their DataVille system. It's called HotParking, and is a BYOC (Bring Your Own Container) model. They provide the security and facility hook-ups, you park your container.

A year or two ago I was pretty skeptical about the whole container model and what, if anything, it could offer. Today, I'm fully on board....with questions....but on board.

THANK YOU Michael for publishing the information and to all the Microsoft Research staff for the excellent work.

Sun Donates a Blackbox to China's Disaster Reduction Center

Sun Microsystems has donated a Modular Data Center to the China National Disaster Reduction Center to help the Chinese Government.  The WHIR News site has the complete details of the story.

In-House Clouds

Just a quick link to a really good article I read at ZDNet about Cassatt.  Cassatt makes some really cool products and while I have a much longer blog post planned about them and their innovation, it is Thanksgiving......so......more later.  :)

Check out the article here.

TEAM Companies Des Moines Data Center

Cedar Falls, Iowa based TEAM Companies held a ground breaking ceremony Monday for their new facility in Waukee, a suburb of Des Moines.  Like their Madison facility, the 46,000 sq. ft. data center will be built in 3 phases.  The first phase is scheduled to open in the third quarter of 2009 and will cost $15 million to build.

TEAM will jointly own and operate the facility with Iowa Health System, the state's largest health care provider.  

Iowa Health System President and CEO William B. Leaver said Iowa Health System and TEAM Companies have had a multi-year relationship that has served its employees and patients well.  "When we're dealing with millions of records every year that contain confidential and critical information, it requires the utmost care and expertise," Leaver said.  "Iowa Health System and TEAM Companies thoroughly and completely understand the responsibility associated with maintaining and managing this data.  We don't take that lightly and never will"

TEAM Companies recently ranked 212 in the Inc. 500 list of fastest growing companies.

Check out the press release here.

 

Data Center Stock Index:11-24-08

It was yet another interesting Monday for data centers and the stock market:

• My data center stock index closed last Friday at $16.54, an all-time low. Today it was up to $17.92 as most stocks in the index closed up.

• Even Yahoo has climbed up a little bit since Jerry Yang stepped down. Forbes has a slideshow of names that have been tossed out as the next potential CEO.
  

• The Dow Jones Internet Composite Index got as high as $53.80 before closing at $53.40
• Equinix was up 15.59% today! They also announced Jarett Appleby as their new CMO (Chief Marketing Officer)

• Google was actually down today and announced that the are "slowing the hiring rate" at the company.

• Twitter rejects a $500 Million offer from Facebook

SuperComputer 2008 Conference

SC08 (The International Conference for High Performance Computing, Networking, Storage and Analysis) has been going on this week and there are a number of interesting links as a result:

• Stacey Higginbotham at GigaOm points out that the conference is really (or has become) a Data Center conference.
• The Austin American-Statesman previews the conference and points out that Sun will bus people to their Ranger installation at UT, and Dell will bus people to UT's main campus to see Stallion, their advanced computer visualization system.
• Nortel 100G to carry critical network traffic for SC08 conference.
• MercuryNews.com reports that Intel, Cisco and Sun are helping develop a supercomputer for the Lawrence Livermore National Laboratory.
• NVIDIA announces Tesla "personal supercomputer"...... umm...... ok
• Oak Ridge National Laboratory selects DataDirect Network Storage to power one of the largest and fastest file systems in the world. "48 S2a9900 High Performance storage platforms deliver up to 240 Gigabytes per second of performance across 10 Petabytes". Wow!
• DataDirect Networks also won the HTCWire's Editors' Choice Award for best HPC Storage Product for 2008.

Finally -- I have a YouTube video to share. It's not SC08 related, but you would need a supercomputer to do some of the stuff this guy is talking about. It's the latest Google TechTalk, and even the title of the talk is over my head: The Liquid Fluoride Thorium Reactor: What Fusion Wanted to Be
Enjoy

It's Just Another Manic Monday

Wow.....quite a Monday.....

• My Data Center Stock Index is $18.20 ; the lowest since I started tracking it.
• The Dow Jones Internet Composite Index continues to tank
• I continue to not open my IRA statements.
• Jerry Yang to step down as CEO of Yahoo!!
• Google Stock dips below $300 for the first time since 2005
• DuPont Fabros announces temporary suspension of development plans

Ok....enough of the bad news....let's balance that off a little bit...

• Level3 raised $400 Million in capital - sending its shares up more than 12%
• Dell should buy Sun Microsystems?? I really doubted this......until I read Drue Reeves post here.
  
• Quantum of Solace breaks Bond Box Office Record
• I just finished watching a special on Jack Benny on PBS. It was really funny (I'll try to tape it for you Dad). I never knew Mel Blanc (voice of Bugs Bunny and many others) was on the Jack Benny show.
• Albert Pujols names 2008 National League MVP!
• Complete with cartoon - Engadget notes that the Cray Jaguar failed to beat the IBM Roadrunner for top spot on the Top 500 Supercomputer rankings.
• The new Star Trek trailer is out

Cray Jaguar - 1 Petaflop!

Next Monday, the Top500 list comes out for the second half of 2008. I am not involved with super computers at all, but the geek in me loves to follow who has the fastest computer in the world. eWeek.com reports that the Cray Jaguar is set to top the IBM Roadrunner in the #1 position. The XT Jaguar now offers a performance of more than 1 quadrillion calculations (1 petaflop) per second.

"The Cray XT Jaguar system now boasts of 45,000 quad-core AMD Opteron processors, along with 362 terabytes of system memory and a 10-petabyte file system. Jaguar also now offers 362 terabytes per second of memory bandwidth and an I/O bandwidth of 284 gigabytes per second."

The supercomputer belongs to the DOE and resides at their Oak Ridge National Laboratory. See their press release here.

The Washington Post also has an article (with picture!) here.

Level3 CDN Ecosystem

Level3 is an interesting company to watch. Their stock closed under $1 today, but I think there is some real potential for this company to take off. Level3 started out in 2008 with a focus on the CDN Market. You can follow events on the archives at Data Center Knowledge, but since then they have had a change in CEO, acquired IBM's CDN patents, and dramatically increased the capacity of their CDN.

I ran across two things today that put Level3 on my radar. The first was an article at the BusinessofVideo.com blog about the Level3 Broadcast Encoding Centers. These encoding centers are a part of their ecosystem offerings that the article discusses.

"The new broadcast centers allows level 3 to provide support for encoding up to 24 simultaneous live events in Windows Media, Flash or Move Networks formats. And with both broadcast centers tied into Level 3's Vyvx offering, the company can also ingest video directly from customer's locations and downlink and uplink video from nearly 95% of the world's satellites"

The second item I found on the Level3 website -- an investor presentation that goes over the usual stock and company performance data.... but the first half of slides in the show really drive home the market they are in, how they plan to attack the opportunity, and really not a bad summary of where things are going in the market.

Kevin Rose, of digg.com and Revision3 fame .... I believe..... recently said he stopped all cable and satellite services in favor of watching everything on his computer. Maybe the IPTV movement will be the thing to watch in 2009. I know I am certainly watching a lot more shows/episodes/podcasts/whatever online anyway.

Data Center Stock Index: Week Ending 11-7-08

My data center stock index tumbled, but only a little bit on a week where Obama won, the jobless rate climbed to 6.5% and the Dow dropped big yet again.

The index closed the week at $19.94. I (hopefully) will expand the index like I have talked about this week and see what kind of impact it has.

Iceland - A Green Data Center Hub -- Maybe!

Maybe I spoke too soon in my last post about Iceland. I ran across a few things that might counter some of the arguments made against the country. First, there is news that the economic / banking crisis in Iceland is being resolved. This may take a while, but it at least looks like they will come out of the crisis favorably.

Second -- there are some new stories I've found that may dispell any negatives about connectivity to Iceland. Capacity magazine reports that "subsea cable operator E-Farice has said that the final leg of its Danice cable system is underway." When complete some early next year, it will provide the country with a huge volume of additional capacity and full redundancy.

"The Danice system will comprise a four-fiber pair link between Iceland and Denmark, with initial capacity of 100Gb and full potential capacity of 5.1Tb. Using DWDM, the system will support the transmission of 128 10Gb wavelengths on each pair.

This press release from Tyco Telecommunications explains the venture as well. Some other Iceland-related things I ran across include this article from Mary Jander at Internet Evolution and the Data Centers in Iceland page at Invest in Iceland Agency.

ABC News also has a nice article on Iceland -- Iceland's Path to a Green Future

IBM On Notice For State of Texas Project

Nothing ups the priority and urgency of finishing a contract like getting press about missed deadlines and deliverables. According to the Austin American-Statesman, IBM's $863 Million contract is on the line if they don't resolve a data backup issue.

"The governor expects the issue will be resolved to the full satisfaction of the state," said Allison Castle, the governor's spokeswoman, so that termination of the contract will not be necessary"

With 9 pages of comments on the article, it apparently is a sore spot to many. One commenter wrote "The Office TV series has nothing on the State of Texas agencies". :)

Check out the article here.

Data Center Stock Index For Last Week

The data center stock index I have been tracking closed last week at $20.42. It started the week at $17.66 and just kept on climbing. It will be interesting to see if election day/week has any affect on it.

I have several stocks that I would like to add to the list -- I just want to take one more crack at using the Google spreadsheet to get historical data before starting over with the new stock list.

DataCenterKnowledge.com has an October review of data center stocks today also. Call it a hunch, but I think Terremark will be one to watch -- they have some pretty cool things going on and I think there is a ton of potential there.

DuPont Fabros will release 3rd quarter results the day after elections -- they were down 59.1% in October.