Friday Feb 24, 2006

Niagara FREE TRIAL - Update

Given the volume of email I'm getting... if you're looking for the Niagara FREE Trial offer, click here.

The terms and conditions are now updated to reflect the fact that Sun pays the postage if you return the system we sent you. There's always been a free packing slip in the box when you received it - our legal agreement was just out of sync (and no, I don't think the agreement is poetically simple, either - that's next week's challenge). If after 60 days you don't like the system we sent, just call the 1-800 number, and someone will come out to pick it up.

We're obviously good at the free software thing. Looks like free systems/hardware might be a bit tougher - but we're going to get it right, and we promise to fulfill every request. Give us credit for running the experiment transparently - warts and all.

And to answer a few of the comment questions - the offer applies to anyone interested - not just corporate customers. We don't care if you're an educator or a park ranger or a blogger or a physicist or a CIO - so long as you're in the market for the fastest/most efficient server on earth.

And just to reiterate - once you receive the system, run your own benchmarks - post them publicly (positive or negative - points earned for thorough and complete), and our marketing team will decide who gets to keep their Niagara systems for free. Free.

ps. to the folks at slashdot, send me your contact data, we're happy to send a Niagara system for you to take a look at. Something tells me you fit the target demographic perfectly... (no floating point, heavy threading, etc.)

pps. just in case you lost track of the promo, it's here.

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Thursday Feb 23, 2006

Er...

To those that provided comments highlighting the inconsistency in our Try and Buy terms and conditions (which seem to preclude the very benchmarking that earns a free Niagara, and suggests the recipient is on the hook for return postage (which they're not)) - please stay tuned.

Change is coming to the pdf (which I agree, isn't an ideal format for the T's and C's, Elliotte - bear with us...)

My apologies for the confusion (and thanks for the attentiveness).

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Tuesday Feb 21, 2006

FREE SERVER (v2.0) - Honest!

A while back, I announced we'd start making servers available for free trial - the objective wasn't to terrify financial analysts, although I'm certain a few gripped their chest, but instead to drive awareness among customers that hadn't been exposed to Sun. And free seemed like the right price to drive adoption among developers (honestly, we're not too worried about folks who elect not to buy failing to return a $5,000 server (we cover postage both ways)).

The program started off slowly - partly due to internal disbelief (there's a long story, there), but secondarily, our focus group feedback suggested no one believed we'd actually send them a free Niagara. So let me reiterate: go to sun.com, fill out the form, we'll send you the fastest server on earth, absolutely free. If you don't like it, we'll send someone to pick it up.

We were also serious about the following: if you write a blog that fairly assesses the machine's performance (positively or negatively), send us a pointer, we're likely to let you keep the machine. (And before you ask, the marketing team makes the decision about what qualifies for the promotion, not I - although I know they love drama, charts, and compelling competitive analyses.)

The first reaction most folks have to the performance is, frankly, disbelief. A while back I got into a spat with the technologists that built the machine about whether we could fairly call them 9.6Ghz machines (as a measure of clock frequency of the chip). Paul Murphy has an interesting analysis of whether that's a fair descriptor (I say interesting because he says we're underhyping the performance - a first for the industry!).

Here's a sample benchmark, (and discussion, too). If you look at the SPEC benchmarks (the column titled "Result"), it's also validated by a neutral body. I'm thinking we should rename Sun to AAA_Sun so our name appears first in the SPEC list.

I had the privilege of making a cameo appearance today at David Berlind's MashUp Unconference - a fascinating experiment to invite a bunch of people interested in a given topic to a conference, charge them nothing, let them create the agenda on the fly at the conference, and have folks like Sun (and other companies) pick up the tab - an inversion of the traditional conference business model. I got to give a Niagara (without obligation to return) to what was voted the most popular Mashup - podbop.org. Taylor McKnight, the individual who received the machine, looked quite pleased - but asked a legitimate question: "how do I get this on the plane?"

Given that the machine is classified as a munition by the US Government, it was a perfectly legitimate question. It probably wouldn't make it past airport security (or into an overhead cabin). So yes, we're covering postage.

Taylor, I'm hoping you'll write a blog about your experience with the system (once it arrives :)... you are, after all, the target demographic.

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Friday Feb 17, 2006

Coffee, Keynotes and Linux on Intel vs. Solaris on Opteron

Webcast of a keynote I just delivered at the Open Source Business Conference (OSBC) can be found here. I did have a fair amount of coffee before the speech, which someone in the audience suggested was evident in the pace at which the speech was delivered. Listen for yourself.

There were quite a few startups in the audience - and given that we're beginning to turn our focus to recruiting those startups back to Sun, I thought I'd live up to my (now delinquent) commitment to publish an email I received from Marc Andreesen about his startup's experience with "Linux on Intel" vs. Solaris. Here you go:

-------- Original Message --------

Subject: followup
Date: Thu, 02 Feb 2006 15:51:28 -0800
From: Marc Andreessen < >
Organization: Ning Inc.
To: Jonathan Schwartz < >, Anil Gadre < >

Hi guys -- below is the writeup of the data I spoke about on stage yesterday.

We (Ning) are fine with you all using this however you want.

Marc

Ning Server Platform Analysis

The following data is based on an analysis we did in support of the implementation of our production environment. Ning had deployed a beta system based on a commercial Linux distribution running on whitebox (aka local system integrator PC clone) AMD Opteron servers. This infrastructure is hosted in our own cage at a commercial co-location facility. We pay a monthly fee based on the total sqft of the cage as well as the total power delivered to the cage (measured in amps).

The space and power costs are blended averages for our area (San Jose, CA):

Monthly space cost: $27.00 per sqft
Monthly power cost: $17.00 per amp

A 4-post rack (or cabinet) occupies approximately 20sqft. Each rack/cabinet has approximately 40 rack units (RU; 1RU = 1.75") of useable space. Thus:

Monthly cost per rack: 20 sqft * $27/sqft = $540
Monthly cost per RU: $540/40 = $13.50

For purposes of our analysis, let's assume all servers are of equal cost:

Server price: $3,000.00

Next we need to consider the operating system for the server, so we need to include the purchase price plus any maintenance fees. We compared a commercial Linux distribution (enterprise class) vs Solaris:

Commercial Linux annual subscription fee: $900.00
Commercial Linux per-incident charge: $380.00
Total: $1,280.00

Sun Solaris subscription fee: $120.00
Sun Solaris per-incident fee: $0.00
Total: $120.00

Given that we are in a hosted environment which imposes certain constraints (total space and power available), the acquisition cost is only a part of the equation. As Paul Harvey would say "this is the rest of the story".

Our co-location provider imposes a per-rack limit as to how much power they will provide. In our case this is 60A. The rule of thumb is to only load a circuit to 80% of the total capacity. Thus:

60A * 80% = 48A useable per rack

Now we need to determine how many systems we can fit in a rack. We know we have 40RU available and 48A of power available per rack. But how much power do the systems require? Let's see:

Sun x2100 (model 175; dual-core Opteron): 1A
Whitebox AMD (2x AMD Opteron 248): 2A
Intel dual Xeon: >3A

To determine the maximum number of systems we can deploy per rack:

Intel: 48A per rack / 3A per system = 16 systems per rack
Whitebox AMD: 48A per rack / 2A per system = 24 systems per rack
Sun x2100: 48A per rack / 1A per system = 48 systems per rack.

Given there are only 40 RU in a rack, the real limit for the Sun systems is 40 systems per rack. Next we need to determine the monthly cost of operating the systems:

60A per rack * $17 per A per month = $1,020.00 per month
Monthly rack cost: $540.00

Intel (@ 16 systems per rack):
power: $1,020 / 16 = $63.75 per month
space: $540 / 16 = $33.75 per month
total: $97.50 per month

whitebox AMD (@ 24 systems per rack):
power: $1,020 / 24 = $42.50 per month
space: $540 / 24 = $22.50 per month
total: $65.00 per month

Sun AMD: power: $1,020 / 40 = $25.50 per month
space: $540 / 40 = $13.50 per month
total: $39.00 per month

Looking at a straight line analysis of the combined costs of server + OS + space + power over 36 months we end up with:

Intel + commercial Linux:
$3,000 + (3 * $1,280) + (36 * $97.50) = $10,350.00 over 3 years

whitebox AMD + commercial Linux:
$3,000 + (3 * $1,280) + (36 * $65.00) = $9,180.00 over 3 years

whitebox AMD + Solaris:
$3,000 + (3 * $120) + (36 * $65.00) = $5,700.00

Sun AMD + Solaris:
$3,000 + (3 * $120) + (36 * $39.00) = $4,764.00

Based on this analysis the Sun solution is less than half the cost of running Linux on Intel hardware.

A key consideration: data center space is a limited commodity over which we have minimal control. We can "reserve" space for expansion, but this requires additional expenses. A solution that allows us to maximize the space we purchase is a significant advantage, as this allows for much more cost effective growth.

------------------

ps. note comments have been turned on.

pps. And to that point, The Register just published an excellent analysis - and given the increasing scrutiny under which Gartner and IDC now find themselves, it'd probably help their credibility if they, like the financial analyst community, started disclosing revenues they receive from the vendors they cover. At their scale, vs. the smaller boutiques, I think it's going to become an imperative.

And personally, it may end up being a determinant of whether we're willing to do business with such firms. Transparency's a good thing.

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Friday Feb 10, 2006

Recommended Reading

The Wisdom of Crowds. It's a quick read, quite good.

Once you've read that, this is interesting reading, too...

Both for its content, and the context. Thanks for the pointer, Tim.

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Saturday Feb 04, 2006

The Death of the Cold Call

I started my technology career at a startup, running sales. Now "running" is probably generous, given that I was the only sales guy (my partners were busy creating products). But every morning, I'd get up, roll out of bed to my desk (which was in my bedroom - this was before raising venture capital became like raising your hand), and start down my call list. We'd get leads from anywhere we could - but at a startup, all sales are basically cold calls. And in all honesty, I hate cold calls. But hold that thought.

We just finished up Sun's annual Analyst Conference - where we bring financial and industry analysts together (they never seem to sit on the same side of the room), and present our updates and perspectives on the marketplace. (The above link is video and slides.)

The central topic of my presentation was free software - trying to answer the questions, especially from among the financial community, surrounding its impact on our financial results. Some still believe "free" can't be good for business - despite a rush of businesses predicated upon free. My point was that free software doesn't decrease revenue - it amplifies adoption. And radically simplifies customer acquisition and qualification.

To make the point, I invited Marc Andreesen to join me on stage - to talk about one of his (many) companies, Ning. Ning is all about accelerating the emergence of social software through the delivery of its infrastructure as a service (with some really inspired thinking about cloning and tipping effects). It's a very cool idea, run by some very smart people. And Ning is ground zero of the coming revolution in the IT marketplace: social software will drive more infrastructure and transactional volumes than the entirety of last decade's ERP build out. To prove the point, Sun runs its ERP implementation on a partially used 5 year old computer - vs. our developer communities and customer portals, which serve millions of users 24 hours a day requiring far more infrastructure.

But what's interesting to me about our relationship with Ning is that no one from Sun had ever paid them a visit. No one had ever made a sales call, cold or otherwise. Marc assumed he'd simply run Linux on a whitebox platform - yet it turned out to be twice as expensive as running Solaris on a SunFire server (a point many customers find surprising, which is both a good, and a bad, problem to have). See C|Net's coverage, here. And now he's become a Sun customer (I'll post his email to me detailing the math next week).

It's my view that the growth in front of Sun won't simply be from stabilizing and growing our existing customers. It'll be from acquiring new customers. Large customers as well as small. The important point is we won't be able to meet most of them - there aren't enough sales executives on the planet to call on each of the 4 million Solaris licenses we've distributed to the world. But so long as the internet connects us to them, the distribution of free software allows them to discover us - and for us to invest in building a bi-directional link, ultimately driving revenue from only those who want added services and infrastructure (vs. those who don't).

Which allows me to believe (perhaps hope) that the days of cold calling are numbered...

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