Friday, May 28, 2010

TEAM Companies Data Center Video

Data center services provider TEAM Companies has released a new video that does a fly-through of a typical data center. The modular design used in a TEAM facility is broken out in this video into infrastructure layers that depict power, cooling, telecom, data rooms and network operations center.

TEAM Companies operates multi-tenant data centers in Cedar Falls and Des Moines, Iowa, as well as Madison, Wisconsin.

The video runs 8 minutes, 34 seconds.

Sunday, May 23, 2010

Site Selection and Energy 2010

I always hate going too far into smart grid, alternative energy or greentech territory on this, a data center blog, but..... with data centers consuming as much as they do, I have to imagine it is on the mind of many of those interested in data centers.

A short while back siteselection.com released The Site Selection Energy Report and after glancing through it, I filled a dozen or so Firefox tabs worth of related stories and interesting tidbits. The first section covers the best places for renewable energy power plants and shows why going with the greenfield option isn't necessarily the greenest thing to do.

The article discusses part of the EPA's program for RE-Powering America's Land where the DoE and NREL (National Renewable Energy Laboratory) did a feasibility study of 12 sites in the U.S. where renewable energy production (wind, solar or small hydro) might take place on Superfund, brownfields, and former landfill or mining sites. I am also a Google Earth fanatic, so the renewable energy interactive mapping tool on the EPA's site was really cool. The Bureau of Land Management (BLM) took some ARRA money to take a second look at cutting some of the red tape and expense for developers using BLM land. In 2008 $5.5 billion was paid to Federal and State governments for Federal onshore energy leasing and production.

In the Sustainable Design section of the siteselection.com report Dell is highlighted -- for completing their 516 panel solar installation in October 2009, dubbed "Solar Grove". The 130 kW array at Round Rock Texas headquarters will help them in avoiding approximately 145,000 pounds of greenhouse gas emissions annually. Envision Solar created tree canopy's in Dell's parking lots and to date has installed more than 9 MW of solar arrays for commercial, residential and public entities worldwide.

In the Energy Matters section, they discuss a program backed by European Union funding through the Welsh Assembly Government:

"The Low Carbon Research Institute energy program led by the Welsh School of Architecture, Cardiff University, is building with Corus Colors a Sustainable Building Envelope Center in order to showcase and test sustainable building products."

Just prior to the June 9-11 Intersolar Conference in Munich, there will be a session on doing solar business in the UK That session will discuss what to do now that the feed-in-tarrif was enacted to encourage the adoption of renewable energy sources.

Finally, the siteselection.com report covers Saul Griffith, an inventory who helped found Makani (wind,breeze), a company that Google invested $15 million in. Makani plans to skip the towers and oversized turbines and just use kites and smaller turbines to generate power.

Taking a larger step back to view the bigger picture, Yale's Environment360 site has an interesting article by NewYorker author Elizabeth Kolbert, who disucsses the Anthropocene Debate
"As epochs go, the Holocene is barely out of diapers; its immediate predecessor, the Pleistocene, lasted more than two million years, while many earlier epochs, like the Eocene, went on for more than 20 million years. Still, the Holocene may be done for. People have become such a driving force on the planet that many geologists argue a new epoch — informally dubbed the Anthropocene — has begun."

Apparently a group of geologists listed more than a half dozen human-driven processes that are likely to leave a lasting mark on the planet. I didn't read the entire report, but luckily data centers were not listed as an anthroprocenal cause (hey, that was a fun word to make up).

Forrester's Doug Washburn has a part one of his series on The Evolution of Green IT. In short Doug walks through the business case justification for Green IT. Doug also tweeted an interesting article at FinancialTimes.com on Technology takes a lead in cutting carbon.

The Ethiopian Review reports on global finance giant Deutsche Bank (DB) and their best practices for environmental sustainability. Deutsche Bank Climate Change Advisors operates the real-time Carbon Counter in Madison Square Garden, a 69 foot billboard that displays a running total of long-lived greenhouse gases in the earth's atmosphere. DB hopes to change the way data centers are thought of and extend their lifetime as dynamic eco-systems where innovations increase efficiency and they challenge themselves to conserve IT resources where practical.

"We calculate IT eco-efficiency using three percentages. Data center infrastructure efficiency tells you what percentage of the energy consumed in a data center actually gets to the hardware. Hardware power relative efficiency tells you how much computing capability you are getting from each watt relative to best-in-class hardware; we had to develop our own metric here based on external benchmarks and our selection of a reference server to make a notional 100 percent reference point. And, of course, hardware utilization efficiency gets you more useful work from the available compute cycles. The nice thing is that you can multiply these three percentages to arrive at an overall energy efficiency metric for each facility."

CO2K in motion? you bet.

Finally, a SeekingAlpha article really caught my attention on Why Google Could Crush the Coal ETF. The article discusses how data centers are targeted because they are the lifeline of the Internet and how many cloud providers are in fact located in areas where electricity is generated primarily at coal-fired power plants. In January this year Google formed a new subsidiary - Google Energy SeekingAlpha contrasts two funds, the Market Vectors-Coal ETF (NYSE: KOL) and First Trust ISE Global Wind Energy ETF (NYSE: FAN).

Interesting times we live in -- the anthropocene era, CO2K, and methane generated energy for the data center!

Monday, May 10, 2010

Heartland Green Up Wrap-up

Last Wednesday I attended the Heartland Green Up in Des Moines. Besides being a big proponent of technology, Iowa, and technology in Iowa -- this symposium was an awesome event, and I hope the success it had this year is dwarfed by future years.

The opening keynote was Randy Mott, Executive VP and CIO of HP. Having the experience that Randy does, and the responsibility of that title for a $100+ billion company is quite impressive and I thoroughly enjoyed his talk. We viewed videos of their Wynyard and Houston data centers and witnessed the implemented technologies set to help achieve their goal of saving 1 billion kWh by 2011. Data Center Knowledge has a nice write-up of the facility -- and here is the video we viewed. The 360k square foot Wynyard facility opened in February 2010, uses 10% wind energy, has an 'excellent' BREEAM rating, and uses 50% less CO2 than comparable HP data centers.

The second talk I attended was Jim Borendame from Wells Fargo. Wells Fargo has a huge presence in Des Moines and I enjoyed Jim's IT-centric approach to going green. In 2005 Wells Fargo made a 10 point environmental commitment to itself and stake holders. With 61,000 physical and virtual servers, 61PB of storage and 8MW data centers, Jim has a lot to manage. IT metrics like those from IDEAS International helped green projects save enough money that they did not have to build a new data center -- even though they had board approval for a tier 4, $350 million facility. Other things such as 9:1 compression ratio using deduplication technologies, and moving to the latest VMware VSphere to enable more virtual servers also helped improve IT efficiencies and save money. Even with their impressive IT asset portfolio, it isn't enough to necessitate looking at data center containers. I couldn't resist asking, but even a company the size of Wells Fargo doesn't fit the business case for doing a container data center farm -- guess we'll leave that to Google and Microsoft for now.

Una Song from EnergyStar went over a number of programs and projects under way. Energystar.gov/datacenters covers information about Enterprise Servers and Data Center Energy Efficiency Initiatives. Data Center Knowledge interviewed Andrew Fanara, who recently left EnergyStar. DCK also has a post on the EnergyStar rating for servers coming soon. The Department of Energy also has a Industrial Technologies Program site for saving energy in data centers.

The conference saved the rock star for last -- Bill Weihl, Energy Czar at Google. Even though it was the end of a long day - everyone enjoyed Bill's speech, knowledge and enthusiasm. Bill had 10 lessons from Google as it relates to energy / green programs -- but a heavy focus was on #1 - We need cheap, clean energy. It is well known that Google has invested in solar and wind, as well as this crazy offshore data barges concept, which just baffles me. Stacey Higgenbotham interviewed Bill after the GreenNet conference and talks about the huge responsibility Google has to buy green power, and build efficient data centers.

Overall it was a very good conference to attend -- big names, big/timely topics, and good networking. I'll be back next year!

Saturday, May 01, 2010

Green News Week

Being in between the GreenNet conference last week and the upcoming Heartland Green Up (which I am going to) -- I have a lot of green news in my browser cache. There were several interesting things at the GreenNet conference that caught my attention -- most notably the Google Budget Containment system. I've looked at air curtains before and have been intrigued...I think they give an attractive solution to most any data center and Google highlights the flexibility it allows them. The Greenpeace IT rankings were also announced at the conference, with Cisco taking the #1 spot. Jonathan Koomey also spoke on a panel at GreenNet about the Dematerialization opportunity.

I also caught a Seattle Xconomy story last week about Cisco and a Verdiem, an energy management software company teaming up. Through the Cisco "EnergyWise Orchestrator" brand they will market Verdiem software for PCs and networked devices. I still think that 'one' of the Cisco acquisitions in 2010 will be related to their building management / EnergyWise division.

Another green story last week was from the U.S. Green Building Council -- saying that they were selected to help empower a new generation of green building student leaders. At the Clinton Global Initiative University annual meeting the USGBC and others were called to help students jumpstart their careers in green building and sustainability through the USGBC Student program. At the conference all attendees were asked to make a commitment to action, a comprehensive, formal plan to address a specific problem around the world, in their community or on their campus.

An interesting item I ran across in my neck of the woods was the Eco4 Partners project for Moss Green Urban Village. The project is developing 170 acres of land in Iowa City, Iowa as a 'green' office and research park, allowing developers to apply for tax increment financing. The most cost effective energy saving and green technologies will be used -- shooting for near Net Zero in energy usage. Buildings will use 60% less BTU's per square foot than a conventional office building.

This coming Wednesday at The Heartland Green Up conference in Des Moines I'll learn about green lessons learned at HP and Oracle, as well as efficient data centers at Wells Fargo and MidAmerican's wind energy program. I'm also going to try and attend the track with Kevin Monson and Tom Struve, talking about the ACT data center in Iowa City that achieved LEED platinum status. It should be an awesome event!

Wednesday, April 28, 2010

Site Selection - What Not To Do

A while back the Black Swan Real Estate Zine had a post I enjoyed. Typically you will see data center site selection articles about where TO build a facility, but Black Swan approached it from the other point of view -- 10 Places You Don't Want to Build.

My two favorite on their list are #5 - In a building that used to be something else and #6 - in a large metropolitan area. I see a number of stories about converted malls or warehouses that are now data centers, and while I'm sure in 'some' cases the retrofit study / cost analysis made sense, I view data centers as a very purpose-built facility that should not, if at all possible be "fit" into a building that was built for something else. Not building in a large metropolitan area is another one I believe in -- and not just for the reasons mentioned in the article or stories I've personally heard. If anyone is reading this from Dallas -- are your lights dimming? :)

A few days after that blog post I read another excellent point brought up by Dave Ohara on the Green (low carbon) Data Center blog. Dave brings up the error of a single number view vs. the range of performance. With a number of criteria to pour over when selecting a site, Dave points out that most criteria have relationships to other things and that a holistic approach is rarely executed, marrying site, building, IT hardware and software.

Friday, April 23, 2010

The Heartland Green Up Conference

Just a few weeks left until The Heartland GreenUp! If you haven't heard about this event -- please check it out. It is shaping up to be an outstanding symposium and expo. The goal of the conference is to "promote awareness of and best practices in reducing overall energy consumption and carbon footprints in information technology. This premiere event provides a forum to discover and share new, innovative green products and services".






I am personally looking forward to a few of the keynote speakers - including Randy Mott from HP. Randy is executive vice president and chief information officer at HP. Also delivering keynotes are Andrew Fanara works from ENERGY STAR and Bill Weihl, Green Energy Czar at Google.

Please don't think of this as some little, local event -- this is global conference for all those interested in learning about GreenIT and networking with others in the industry. In ONE event, it will bring together:
"a group of global enterprise and government thought-leaders for one, intense day of networking: to share latest research, brass-tacks case studies and fast-paced total-immersion backgrounders on enterprise-wide sustainable IT best-practice; next-gen datacenter architectures, power management strategies and facilities engineering; cloud computing and virtualization; and on the nuts and bolts (and business case) for plugging into wind and solar, biomass and other emerging energy technologies"
If not able to attend in person, the Technology Association of Iowa will host a Virtual GreenUp to let you attend keynotes, track sessions and network with speakers, sponsors and peers.

I am going! Will you?

Register Now!

Sunday, March 07, 2010

Mobile Data Centers Introduced in Vietnam

A story on Vietnam Business News caught my eye this weekend -- no, not a publication I 'usually' read, but thanks to a Google alert....

The story covers mobile data centers being offered in the Vietnamese market by Dot VN, Vietnam Internet Center and Elliptical Mobile Solutions (EMS). Once again, the marketing hype calls it "meeting Tier 4+ standard" -- not sure which Tier system they are talking about. :)

The mobile data center is being proposed to meet the demands of "a wide range of clients" and reduce "the size by 50% and save up to 50% of the initial investment." Dot VN will be the sole distributor of EMS solutions in Vietnam and non-exclusive distributor in Asia.

I've been interested in container data centers for a while -- so EMS interested me. Upon further research I found they are an Arizona based business that provides "high-tech enclosures for the mobilization, operation, environmental protection, and security of electronic equipment." They must have an IT background, because every one of their products is an acronym for something. I would not call what they make a 'data center' either, as it is just a single rack, or small enclosure with a pretty narrow focus/market.

They do list some interesting government/military applications for their product, and maybe this is where they shine. I remember when the Sun Blackbox container first came out -- they showed several applications where the Blackbox is deployed into remote areas where the technology needed served a very unique purpose.

Maybe you take an ISO shipping container, fill half of it with Bloom boxes and half of it with EMS R.A.S.E.R.'s and you have something!



P.S.: Does anyone know what's going to happen to the Sun Blackbox, post-Oracle acquisition??

Thursday, February 18, 2010

Nuclear Energy Resurgence

In a recent speech on clean energy in Lanham, Maryland President Obama announced that his administration has approved an $8.3 billion loan guarantee to build the first nuclear power plant in the U.S. in three decades. His 2010 budget calls for $54 billion to be set aside for nuclear loan guarantees, so other announcements are sure to come. President Obama noted that "Japan and France have long invested heavily in this industry. Meanwhile, there are 56 nuclear reactors under construction around the world: 21 in China alone, 6 in South Korea, 5 in India."

The $8.3 million was awarded to Southern Co. to build twin nuclear reactors in Georgia. These reactors will be Westinhouse Electric Company's Ap1000 reactor design - the first to receive final design approval from the Nuclear Regulatory Commission. Westinghouse has a nice graphical depiction of how the AP1000 works here. A Forbes article on the announcement notes that "the Nuclear Regulatory Commission said last year that the AP1000 nuclear units needed to be redesigned because the commission feared the structure wouldn't stand up to strong winds."

Forbes also reports on GE's nuclear waste plans - where spent nuclear fuel would be used as raw material for a new type of nuclear reactor. GE's joint venture with Hitachi, called GE Hitachi Nuclear Energy could be a recipient for some of the remaining $54 billion in loan guarantees.

Last week at TED2010 Bill Gates talked about the nuclear reactor project at TerraPower, an incubated company from Intellectual Ventures which was founded by former Microsoft CTO Nathan Myhrvold. TerraPower uses a "traveling wave reactor design' - earth2tech explains that it uses a "small amount of enriched uranium at the beginning of the process, but then the nuclear reactor runs on the waste product and can make and consume its own fuel." A video explanation of the traveling-wave reactor and how it works can be found on the Intellectual Ventures Lab web site. earth2tech also has a post on 6 nuclear power startups to watch.

I haven't mentioned the data center angle yet - but with each site turning out Gigawatts instead of Megawatss - it's implied.

If the whole nuclear thing doesn't work out, then I say we start to power the data center (and the grid) by bike -- electricity generating gyms. :)

Sunday, January 24, 2010

Financial Health of the Colocation Industry

I would like to preface this post with the statement that I am very much a novice when it comes to stock analysis and any form of insightful opinion into the valuation of a publicly held company. However, I think it is interesting, I'm learning, and it allows me to really dig into the inner workings of a company.

I decided to do a little analysis of the colocation industry and the specific stocks I was interested in
  • Equinix
  • Digital Realty Trust
  • Savvis
  • Terremark
  • Dupont Fabros
  • Rackspace
  • Internap
I also like to track merger and acquisition trends and predict how the landscape will change in coming months. With acquisition activity picking up in 2010 I started by looking at the cash and cash equivalents for these companies. Combined they have $810.57 million. That is a little shy of the $842 million that Google's peak quarterly Capex was in 1Q 2008. Out of curiosity I also analyzed the cash equivalents of the big guys - looking at Intel, IBM, Cisco, HP, Dell, and EMC. Their combined cash of $50.01 billion is slightly more than the 2008 Gross Domestic Product for the country of Lithuania.

Key figures
The average price to earnings ratio for my colocation group is 24.1, with a few troublesome negative p/e's for Savvis (-60) and Terremark (-16). Another interesting one to look at was the debt-to-equity ratio. For the most part, the group stayed under 2.0, but Terremark's 6.18 and 3.61 for Savvis is an indicator of how they have been financing their growth. In the case of Terremark however, building such intense data centers like they do requires some serious capital outlay up front.

An interesting stock comparison number to look at is the revenue per employee. Digital Realty and Dupont Fabros aren't really in the same category as the rest in this group, and their revenue per employee figures reflected as much ($2.9 million and $2.6 million respectively). Otherwise Equinix and Internap were the highest with $745,000 and $597,500 respectively.

I ran across a few 'insights' from the industry on Equinix and Internap. The Motley Fool website included Equinix in their '5 Deathbed stocks?' article, talking about companies where revenues dry up, margins contract and profit evaporates. Apparently Equinix has an Altman Z-Score of 1.7. This score is used to predict the probability that a firm will go into bankruptcy within two years, utilizing multiple income and balance sheet values to measure the financial health of a company. I'm sure numbers don't lie, but I think I believe this one about as much as I believe in Jim Cramer's knowledge of the industry (in other words, I don't!). An article at Smartrend notes the uptrend for Internap by showing that they are currently above their 50 day moving average of $4.22 and above their 200 day average of $3.36.

Finally, I looked at Morningstar to review financial statistics on these companies. The morningstar 'grades' were interesting, as they analyzed growth, profitability and financial health of the company. Equinix received a B for both growth and financial health, but a F for profitability. Rackspace received the best grades with a C for growth and a B for both profitability and financial health.

If anyone is interested -- here is the Google spreadsheet where I tracked the data.

Overall I think the industry is doing well and set for a positive 2010. The toughest part may be just defining 'what' the industry really is. Many if not all of the financial sites I visited had not attempted to categorize the industry that these companies are in, or put them in odd categories with peers that really weren't industry equivalents at all. I think some of the smaller data center companies may be acquired and some interesting things will certainly happen in the related telecommunications sector.

Monday, January 04, 2010

Data Center Jobs

A number of 'data center' job openings have come up on my radar recently and so I went digging. Maybe the new year means new budgets and new initiatives to hire and fill data center jobs that the 2009 fiscal year just didn't allow. Maybe it's an indicator of a hot job market for the data center industry in 2010. Maybe I need to surf the web a little less and stop reading into things so much.

A nice trending tool for job searches can be found at indeed.com - a job search engine. Check out this graph on job trends for postings containing "data center" in them.
One of the items that started my search for data center jobs was a number of openings for the Google facility in Belgium. There were at least 10 'data center' related postings on LinkedIn by Google just today. Three of them were for the Saint-Ghislain, Belgium location. I've been very intrigued by Googles Belgium location ever since the Chiller-less data center information was out and I really think the 'follow-the-moon' concept is interesting.

On Google's web site they list current engineering openings for the Council Bluffs, Iowa, North Carolina, Oregon and South Carolina locations. Here is the Indeed.com job trends search for Google:

One final graph of interest given the acquisition of Switch & Data by Equinix:


Thursday, December 31, 2009

2009 Review

I'm going to keep my final post of the year brief for a few reasons -- one, I waited until the very last minute to write it, and two, everyone is probably tired of 2009 reviews and 2010 predictions.

First - stocks. After over a year of manually tracking my own data center stock index I'm going to stop (actively) tracking it. I have found some amazingly cool Google Finance formulas for Google spreadsheet and should be able to create it on the fly when or if I want to. Check out this link to see the Google Finance snapshot of the stocks in my index currently. Another tool joining my arsenal is Wolfram Alpha. This site has some pretty awesome compute power for any number of search/compute queries. For instance - check out this comparison of Equinix, Terremark, Savvis and Internap stock information. Additionally, for the web geeks - check out the website data Wolfram Alpha generates - for instance, on equinix.com

The other Google tool I like to use this time of year is Google Insight. Check out this graph showing Worldwide web Search Interest for colocation, "data center", "cloud computing":


Here is an insight graph for search terms Equinix, Savvis, Terremark, Switch & Data and Digital Realty Trust:


My take on the biggest story for 2009 is tours of mega data centers such as Microsoft and Google and the planning of a $1 billion Apple data center. I (continue) to think that container data centers are a valid architecture, and not just for the big companies. Hey Microsoft - if you need me to go move some dirt to get the Des Moines, Iowa data center moving I'll do it. :)

The only prediction I'll make for 2010 is that it will be a breakout year for desktop virtualization. We'll finally come full circle from the green screen dumb terminals that talked to the mainframe, with virtualized desktops talking to the cloud.

I hope everyone had a very Merry Christmas and Happy 2010!

Sunday, December 27, 2009

Review of 2009 Smart Grid News

Smart Grid is a topic captured my attention late last year and I have been (loosely) following the topic ever since. A Google Insights graph shows that I am right in line with everyone else and that 2009 was a big year for smart grid. In April 2009 I started collecting a few links on smart grid and this past summer I had every intention on posting a few links out to the things I had been reading. Well, the year just got away from me and later in the year I decided to do this 2009 roundup of news, sites and various links of interest. I know there is much more than what I have listed here, but these are my bookmarks.

Security in the smart grid is of particular interest to me. I've been in IT long enough, and have read Christopher Hoff's blog long enough now that I know security aspects of this technology can NOT be underestimated. Earlier this month President Obama appointed a new Cybersecurity Coordinator, Howard Schmidt. Let's just say I bet/hope security aspects of smart grid technologies are on his short list. Below is my list of smart grid websites about companies, products, projects and government related information. After that I'll list my news bookmark collection as 2009 progressed.

Smart Grid Companies / web sites / projects / government


2009 time line of events and news about smart grids.
Interest in the topic peaked in April when the U.S. power grid being hacked was a big story, and then again in October when President Obama announced $3.4 billion in funds to enable the "largest single energy grid investment in U.S. history." I have a few news stories about the current power grid, but (to me) they are related to the smart grid.

and in 2010....
Finally - my twitter list for SmartGrid

Thursday, December 24, 2009

Writing For Data Center Knowledge

Over a month since my last blog post .... wow. Between the holidays, being busy at work and busy at home, I just have not found the time to blog. However, one main reason I haven't posted much here lately is the 'other' blog I write for. If you follow the data center industry then surely you have seen -- I am a contributor to the editorial team at the one and only Data Center Knowledge blog.

I have thoroughly enjoyed writing for the site and while much of what I'll cover is a roundup of news in the industry, I also have covered various topics or news more in-depth; such as:

The Data-Crunching Powerhouse Behind 'Avatar'
Blue Waters and the Supercomputing Frontier

I will continue to write 'other' stories here as I see fit.... although I also intend to just tweet them out if time does not permit a full blog post. I also intend to do some end of the year items regarding 2009 review, 2010 predictions and a final edition of my data center stock index.

I want to wish everyone a Merry Christmas and Happy New Year!!

Tuesday, November 03, 2009

Electricity Decentralization Study

I have been thinking about an update to my now 2 year old white paper on data center site selection. Many blog posts and articles on the web this past year have prompted me to think of many new additions that could be integrated in to it.

For instance -- TreeHugger.com reported today on a very interesting story about the 100-Mile Diet for Electricity? It discusses a new/second version of a study done by the Institute for Local Self-Reliance (ILSR) titled Energy Self-Reliant States. It is a very interesting article that of course ties into the number one priority for data centers -- power. The study argues that "the cost of constructing new transmission lines to carry the power and electricity losses during transmission could result in an electricity cost to the consumer that is about the same, or higher, than local generation with minimal transmission upgrades."

I have a blog post brewing on the red-hot topic for 2009, smart grids, that will summarize the industry news for the year and everything that is happening with smart grid technologies. Stay tuned.

Microsoft Chicago Data Center Photo Tour

Although originally reported over a month ago at Data Center Knowledge --- CNet has a photo tour (follow-up or re-hash story) of the new Microsoft data center in Chicago today.

I am still hopeful that the data center Microsoft is planning for Des Moines will be their generation 4 data center model. I am extremely curious to see that in action. I've analyzed the video and pictures that they published last December a few thousand times trying to figure out each component and exactly how the containers are integrated and supported.

Hey Microsoft -- are you ready to build in Des Moines yet??!!?

Tuesday, October 27, 2009

Merger and Acquisition Targets

Mergers and acquisitions are always fun to speculate on. In this industry it seems like a week doesn't go by where some M&A activity is happening. With the recent Equinix acquisition of Switch and Data I have to wonder if more data center industry acquisitions will happen before the end of the year. Both Google and Cisco have said that shopping sprees will continue to gain speed in 2010.

thedeal.com had a Barron's article summary that intrigued me today about M&A speculation. The article points to 10 technology companies that are potential takeover candidates, including several that I have thought of:
  1. Riverbed (RVBD | $1.53B market cap): major competitor to Cisco's WAN Optimization and Application Acceleration products. I've always thought Cisco would buy them, but perhaps HP is better suited.
  2. NetApp (NTAP | $9.63B market cap): another possible target for Cisco. Otherwise maybe HP or Dell?
  3. F5 Networks (FFIV | $3.73B market cap): No idea; maybe HP or EMC
  4. Brocade (BRCD | $3.69B market cap): seems like HP is the lead candidate... if not, maybe EMC or IBM
and others.... Check out the complete article and list here.

Saturday, October 24, 2009

Switch and Data Shareholder Investigation

There was an interesting development in the Equinix acquisition of Switch and Data late this last week. Kendall Law Group announced a shareholder investigation into Switch and Data Board of Directors in connection with the proposed acquisition by Equinix.

Their release states:
"Kendall Law Group’s investigation concerns whether the consideration to be paid to shareholders below the fair or inherent value of the Company and whether the directors and may have breached their fiduciary duties by not acting in the shareholders’ best interests in connection with the sale process."
Kendall is a national law firm and are either very large, or sue-happy, because there were 8 other investigation or class-action lawsuits announced last week according to their site.

The law offices of Howard G. Smith are apparently investigating as well.

Wednesday, October 21, 2009

Iowa Now Second Largest Wind Producer

The Wall Street Journal reports that Iowa has become the second largest producer of wind power in the U.S.. Tax breaks, cost recovery assurance and few zoning regulations for wind turbines are cited as reasons for the ranking.

At the end of the second quarter of 2009, Iowa had 3,043 megawatts of total wind capacity, compared with 8,361 megawatts in Texas and 2,787 megawatts in California, according to the wind-energy association. The article continues by saying that Iowa is flat landscape and lies in an enviable position on the grid - close to load centers like Chicago and Milwaukee.

Power transmission is now the road block to continued success in Iowa. Roya Stanley, Director of the Iowa Office of Energy Independence said "While we still have some room on the grid in the state, it will be critical to have agreement regionally for further transmission build-out."

The WSJ also has a very interesting article on Five Technologies that Could Change the Energy Picture. It discusses space-based solar power, advanced car batteries, utility storage, carbon capture and storage, and next-generation biofuels.

Wednesday, September 30, 2009

Waves, BIG Waves and Outage Explanation

Quite the news day this Tuesday, September 29, 2009

1. Google Wave will send out 100,000 invitations to Google Wave tomorrow. This is shaping up to be 'the' killer app of the year/decade. With the hype machine in full swing we'll see if it lives up to the promise. I have my request in for an invite!

2. BIG wave : after a magnitude 8.0 earth quake was recorded near American Samoa, a Tsunami warning for the South Pacific was issued. A Tsunami advisory was apparently issued for Northern California.

3. The Google Apps Sep.24 outage was a result of a high load on Google Contacts. Contacts is an integral part of Google Wave.

Wednesday, September 16, 2009

Cloud Computing Analysis From Irving Wladawsky-Berger

Just a quick link to an outstanding blog post by Irving Wladawsky-Berger. I've linked to him before, because I thoroughly enjoy his thoughts and analysis. Among the amazing amount of cloud computing hype out there, Irving truly gets it and shows us how clouds and computing have evolved and will continue to.

Check out his August 31 post on The Data Center in the Cambrian Age. He compares cloud computing to the Cambrian Age, a geological period where evolution accelerated rapidly into more complex life forms. He also references an excellent paper done by Google engineers Luis Andre Barroso and Urs Hoelzle on Wharehouse-Scale computers.