Who will power the enterprise? The smart money is betting on a few superpowers taking over.

After years spent focusing on personal technology, businesses are increasingly turning back to the enterprise. There are many reasons for this, but the biggest one is the poor economy. Individuals simply have less free cash to spend on gadgets and software, and the meagre profits are increasingly going into the pockets of a single company: Apple.

The corporate IT market is much more dynamic and competitive, with a few very large “superpower” companies discovering their power to drive purchasing decisions. If a supplier can create an integrated “stack” of hardware and software, they can push product purchases that might otherwise be overlooked or postponed. This is the main reason that enterprise IT acquisitions work so well: Where a small company must fight to sell their product, a large one can hitch it to a much more strategic sale and have it pulled along.

The old IBM model is the prototype, with that company once selling everything from office equipment to datacenter gear as well as the consulting and integration services to make it all work.

HP has spent almost two decades bulking up to become the new IBM, buying their way into open systems laptops, desktops, and servers (Compaq), networking (3Com), services (EDS), and storage (Compaq, LeftHand, Ibrix, and perhaps 3Par). HP has been remarkably proficient at executing on this enterprise plan: In talking to enterprise IT folks, I often hear IBM-esque sentiments regarding the new HP. They tell me they’re willing to give HP the benefit of the doubt when it comes to new technologies and products, buying on basis of the company’s reputation and ability to make everything work. This bodes well for the company’s post-Hurd future, and HP has the most-complete “enterprise stack” in the business.

But HP has a target on its back, pinned there by Dell. The folks from Round Rock believe they can be more efficient (and thus profitable) than HP in the same markets, and have been making moves to fortify their enterprise offerings. Dell was always more of a manufacturing than R&D business, but they have shown a desire to broaden their focus. Intrigued by the high-margin mid-enterprise storage business built from their EqualLogic acquisition and their success selling EMC storage, Dell is moving into the enterprise. They matched HP/EDS by purchasing Perot and have made smaller buys in storage (Ocarina, Exanet) as well as the big move for 3Par.

The next big emerging stack player is Oracle. The acquisition of Sun gave Oracle a strong hardware base to complement their command of enterprise software, and many expect further acquisitions. But Oracle is playing a different game than HP and Dell, focusing on the high-margin enterprise space and ignoring more competitive outlying areas. Many suspect the company might make a play in the network space (Brocade, Juniper, and F5 have been mentioned) but storage is possible as well. CEO Larry Ellison is a major investor in Pillar Data Systems, so many expect a spin-in here. But Oracle has the appetite for something much bigger, even EMC or NetApp.

Then there is Cisco, who have attempted to parlay their data center networking strength into a broader position. But Cisco’s halting moves into storage (Fibre Channel switching and SAN extension) did not displace the market leaders, and their server products (UCS) have not made much of a dent on HP, IBM, and Dell either. A solid partnership with EMC has delayed further forays into the enterprise storage market, and Cisco seems puzzlingly interested in low-margin access businesses (Linksys, Flip) and their Cius tablet.

There are other players in the enterprise space as well. EMC has diversified under CEO Joe Tucci, taking a dominant position in server virtualization (VMware) and making a strong enterprise security acquisition (RSA). But the many faces of enterprise storage remains EMC’s strength, and they seem content to partner with Cisco for a stack sale. Hitachi, NEC, and Fujitsu also offer varying enterprise hardware and software stacks, but their comparatively small sales presence in the US market limits their ability to execute. In the final analysis, only IBM, HP, Dell, and perhaps Oracle can claim to be enterprise IT superpowers at this point.

Image credit: Steam Engine by Stuck in Customs

© Stephen Foskett for Gestalt IT, 2010. | Meet the Enterprise IT Superpowers
Read more posts categorized as Featured, Networking, Server Virtualization, Storage

So, what is this thing called the stack?

Actually the stack is just that, a stack. A stack of what you say? A stack of solutions, bound together by one or more management tools, offered to you as a happy meal that allows you to run the desired workloads on this stack. Or to put things more simply and quote from the Gestalt IT stack wars post:

• Standard hardware configurations are specified for ease of purchasing and support
• The hardware stack includes blade servers, integrated I/O technology, Ethernet networking for connectivity, and SAN or NAS storage
• Unifying software is included to manage the hardware components in one interface
• A joint services organization is available to help in selection, architecture, and deployment
• Higher-level software, from the virtualization hypervisor through application platforms, will be included as well

Until now, we have usually seen a standardized form of hardware, including storage and connectivity. Vendors mix that up with one or multiple management tools and tend to target some form of virtualization. Finally a service offering is included to allow the customer to get service and support from one source.

This strategy has it’s advantages

Compatibility is one of my favorite ones. You no longer need to work trough compatibility guides that are 1400 pages long and will burn you for installing a firmware version that was just one digit off and is now no longer supported in combination with one of your favorite storage arrays. You no longer have to juggle different release notes from your business warehouse provider, your hardware provider, your storage and network provider, your operating system and tomorrow’s weather forecast. Trying to find the lowest common denominator through all of this is still something magical. It’s actually a form of dark magic that usually means working long hours to find out if your configuration is even supported by all the vendors you are dealing with.

This is no longer the case with these stacks. Usually they are purpose or workload built and you have one central source where you get your support from. This source will tell you that you need at least firmware version X.Y on these parts to be eligible for support and you are pretty much set after that. And because you are working with a federated solution and received management tools for the entire stack, your admins can pretty much manage everything from this one console or GUI and be done with it. Or, if you don’t want to that you can use the service offering and have it done for you.

So far so good, right?

Yes, but things get more complicated from here on. For one there is one major problem, and that is flexibility. One of the bigger concerns came up during the Gestalt IT tech field day vBlock session at Cisco. With the vBlock, I have a fixed configuration and it will run smoothly and within certain performance boundaries as long as I stick to the specifications. In the case of a vBlock this was a quite obvious example, where if I add more RAM to a server blade then is specified, I no longer have a vBlock and basically no longer have those advantages previously stated.

Solution stacks force me to think about the future. I might be a Oracle shop now as far as my database goes. And Oracle will run fine on newly purchased stack. But what if I want to switch to Microsoft SQL Server in 3 years, because Mr. Ellison decided that he needs a new yacht and I no longer want to use Oracle? Is my stack also certified to run a different SQL server or am I no longer within my stack boundaries and lost my single service source or the guaranteed workload it could hold?

What about updates for features that are important to me as a single customer? Or what about the fact that these solution stacks work great for new landscapes, or in a highly homogeneous environment? But what about those other Cisco switches that I would love to manage from the tools that are offered within my vBlock, but are outside of the vBlock scope, even if they are the same models?

What about something simple as a “stack lock-in”? I don’t really have a vendor lock-in since only very few companies have the option of offering everything first hand. Microsoft doesn’t make server blades, Cisco doesn’t make SAN storage and that list goes on and on. But with my choice of stack, I am now locked in to a set of vendors, and I certainly have some tools to migrate in to that stack, but migrating out is an entirely different story.

The trend is the stack, it’s as simple as that. But for how long?

We can see the trend clearly. Every vendor seems to be working on a stack offering. I’m still missing Fujitsu as a big hardware vendor in this area, but I am absolutely certain we will see something coming from them. Smaller companies will probably offer part of their portfolio under some sort of OEM license or perhaps features will just be re-branded. And if they are successful enough, they will most likely be swallowed by the bigger vendors at some point.

But as with all in the IT, this is just a trend. Anyone who has been in the business longer than me can probably confirm this. We’ve seen a start with centralized systems, then moving towards a de-centralized environment. Now we are on the move again, centralizing everything.

I’m actually much more interested to see how long this trend will continue. I’m am certain that we will be seeing some more companies offer a complete solution stack, or joining in coalitions to offer said stack. I still think that Oracle was one of the first that pointed in this direction, but they were not the first to offer the complete stack.

So, how do you think this is going to continue? Do you agree with us? What companies do you think are likely to be swallowed, or will we see more coalitions from smaller companies? What are your takes on the advantages and disadvantages?

I’m curious to hear your take on this so let me know. I’m looking forward to what you have to say!

© Bas for Gestalt IT, 2010. | My take on the stack wars
Read more posts categorized as Featured, Networking, Server Virtualization, Storage

Unlike IBRIX, which sold software to transform commodity hardware into a clustered NAS solution, ONStor designed both the hardware and software included in their home-grown products. The company also re-sold Fujitsu’s Eternus and Nexsan SATA storage systems and Tek-Tools software. ONStor raised $80 million in its 9 years of operation.

LSI has found success supplying hardware components to the storage and networking markets. In April, the company purchased the 3ware RAID adapter business from AMCC. LSI’s storage operations were to be spun out as Engenio in a 2004 IPO that never happened. That operation later re-joined the LSI mothership, combining with the storage controller business. This is where ONStor will land as well. LSI manufactures components on an OEM basis for many in the storage industry, including BlueArc, IBM, MaXXan, Sepaton, and Sun.

What does LSI get for their $25 million?

• ONStor’s EverON software, which powers its NAS and IP storage product lines and includes the StorFS scalable file system. EverON offers clustering with a global namespace, automated pooling and provisioning, and snapshots.
• The Bobcat and Cougar Broadcom-powered NAS gateway hardware platforms offer energy-efficient and scalable virtualized and clustered NAS in front of existing SAN or NAS storage capacity using the EverON OS.
• The Pantera system uses Intel Xeon CPUs and adds iSCSI to the mix. It uses a different operating system which leverages ZFS.
• ONStor also re-sold the Fujitsu Eternus 2000 and 4000 Fibre Channel SAN storage systems.

LSI is likely to be eager to leverage the EverON software and Bobcat/Cougar platforms with their OEM partners. Expect many vendors (ahem: IBM) to quickly counter HP’s new IBRIX-powered scalable NAS with LSI-powered alternatives. The Pantera seems less-likely to be of interest to OEMs, being based on commodity hardware and software. And continuation of the Eternus line seems flat-out illogical.

More coverage: Terri McClure and Mark Peters of ESG

© Stephen Foskett for Gestalt IT, 2009. | LSI Picks Up ONStor
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Fabrik, maker of SOHO storage devices like this G-Safe, has been acquired by Hitachi GST

Hitachi Global Storage Technologies (hereafter referred to as HGST) just bought Fabrik, the company that produces and distributes consumer storage devices as SimpleTech and pro/AV storage using the G-Technology name.

We in the enterprise storage sector are all too familiar with the epic battles between Hitachi Data Systems (let’s call them HDS) and EMC, both providers of storage systems to the enterprise IT market. And last year EMC purchased consumer drive maker Iomega, pushing out some impressive storage systems that combine the best of both companies.

So is Hitachi’s combination with SimpleTech a response or challenge to EMC’s acquisition of Iomega? In a word, no.

First there is the small issue that HGST is an entirely different company from HDS. Both are subsidiaries of the massive Hitachi, Ltd. of Japan, but to conflate them into one company would be a disservice:

• HGST is much more like Seagate Technologies or Western Digital – a maker of hard disk drive mechanisms, the core components of modern data storage devices from the consumer to enterprise space.
• HDS is much more like EMC or NetApp – a maker of storage systems and software aimed at the enterprise IT market.
• Parent company Hitachi, Ltd. makes all sorts of stuff, from appliances to monorails (no kidding!) and so is much like Mitsubishi or Fujitsu.

Where EMC is actively expanding Iomega’s marketing into a supplier of tiny storage systems for entry-level IT and lab use, we shouldn’t expect the same synergistic offerings from HDS and SimpleTech or G-Technology. Instead, we should look at this as a response to Seagate’s purchase of Maxtor and Toshiba’s consolidation with Fujitsu’s disk unit: HGST will have a much better consumer channel for its disk drive mechanisms and will be better able to compete with those companies and Western Digital in places like Staples and Best Buy.

This is not to say that SimpleTech and G-Technology doesn’t compete with Iomega, mind you. In fact, Fabrik’s two brands were head-to-head with EMC’s little sister in just about every corner of their markets, and they make some cool devices for the SOHO market. Check out the [re]drive, G-Drive Mini SSD, and G-Speed XL if you don’t believe me!

Sounds like a win for them, but not a game-changer for enterprise storage.

© Stephen Foskett for Gestalt IT, 2009. | Does Hitachi+SimpleTech = EMC+Iomega?
Read more posts categorized as All, Featured, Storage