(Another) Win for Open Storage...

Wikipedia is one of the world's most visited web sites (8th in the top 10, in fact), delivering an enormous breadth of content to an audience as vast as the internet. But Wikipedia's evolved to become more than an on-line encyclopedia: they've become one of the world's largest search engines, they're a global source of real-time news, alongisde educational, political and health related content - and one of the world's most valuable brands and media properties.

Wikipedia's also a great example of a "redshift" application: a segment of the market that's growing faster than the technology industry's capacity to innovate. Technology companies have to pay special attention to such redshifted segments - not only do they eventually grow the overall market, but their innovation often drives the technology landscape. Broadly speaking, social media, from free news and social networking, to search and content sharing, is doing exactly that - defining new architectures and requirements for radical scale, economics and availability.

So I was really pleased that Wikimedia had chosen Sun's Open Storage platforms over proprietary alternatives, to help manage their evolution to rich media - bringing high quality video and time based content to their more than 250,000,000 users globally. That's a big audience waiting to upload - and interact with - high quality content.

Like Wikipedia, most of the planet's largest web sites (just look at the top 100) are built atop Sun's MySQL database. Which is why we've just introduced a line of systems platform designed specifically to run MySQL - at up to 3x the performance of whitebox alternatives (after all, it's far easier marketing to audiences that have already chosen Sun). We're now expanding those offerings with our newest Open Storage portfolio, as well - built to run ZFS from 5 to 50x traditional performance. And again, all such systems are available here for free trial - pick the system you want to try, we'll cover shipping costs to and from your site.

And while I'm on the topic of systems... I've been asked for insights into our recent software reorganization, in which we announced three main focus groups (a Systems group, an Applications group, and a Cloud group). Why'd we make that change?

First, look no further than this win for one of my main motivations: I'd like to enhance the value and alignment we offer to customers that want to run our system software (like MySQL and ZFS) at very high scale - and require, from Sun and our OEM partners, the tightest possible technical collaboration and alignment between hardware and software.

Second, this move amplifies the obvious (at least to us): the storage market will be larger than the server market, but you may not be able to tell - they're converging, built from the same systems software and hardware components (networking will follow the same path, more on that in the future).

Finally, adoption and software distribution/marketing is different than revenue generation. And with the adoption of ZFS well underway, technical and business alignment have become our dominant priorities. It's at the heart of what's fueling one of Sun's fastest growing businesses (ZFS based Open Storage was up more than 150% last quarter, growing far faster than our proprietary peers).

How large is the redshift opportunity? It's not just businesses like Wikipedia that are defining new scale requirements for the industry. It's the on-line bank I saw last week, now serving more than 100m accounts globally - contemplating the addition of video chat for customer service. It's the government customer I just visited trying to deliver driver's license and passport renewal services to hundreds of millions of its citizens. The term redshift describes applications, not customers (remember, even Wikipedia has payroll - not exactly a redshift application).

In an openly networked world, redshift applications begin to equate to social phenomena - and social phenomena don't respect your IT budget. Which is to say, neither a 10 person startup, nor a 10,000 person retailer want to go broke buying software licenses and storage, just because they've struck a chord with the planet. Which is increasingly why both sides of the industry are moving to open source.

And open storage.

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(And with apologies to the OpenOffice community - we are not going to be inserting ads into OpenOffice.org - we're creating partnerships to brand and promote StarOffice, and the cloud we're developing behind it.)

Posted on 06:20AM Nov 26, 2008 | Comments[18]

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The Inside Story (Java, Microsoft and MySQL)

As consumer spending slows across the world, a variety of "brick and mortar" retailers are clearly feeling the impact. Foot traffic is slowing, and it's getting harder to balance debt laden real estate portfolios and fickle consumer trends.

For consumer product manufacturers, retail distribution is key - it's how you get in front of a customer. It's why the big PC manufacturers are all working hard to score deals with big retailers (or build their own retail outlets) around the world.

But making money on PC's is tough - for most PC makers, you're remarketing someone else's operating system and someone else's microprocessor - it's not for the faint of heart (or faint of balance sheet). For Sun, our retail distribution concerns don't surround consumer hardware (we don't make PC's) as much as consumer software - the popularity of which defines our market opportunity. Said simply, if you're running Java or another open source platform, Sun can build differentiated datacenters in the clouds behind those devices. If not, it's a lot tougher (not impossible, just a lot tougher).

Consumer software, though, is defined by a virtuous cycle. Developers target popular software (like Firefox, Flash or Java). In so doing, they create applications and content that consumers use. What consumers use, they tend to use in volume (the internet's a very big place, after all). Developers notice those volumes, and target the platforms that reach the most consumers. And that defines Sun's market opportunity (someone smart once jumped up and down on stage yelling "Developers! Developers! Developers!" Amen.)

The Java runtime remains one of the world's most popular platforms used by developers - and thus, one of the world's most popular consumer software products. For the cynics about to chime in with "but I don't use it," the odds are good you do - it's become an invisible, but critical part of an enormous breadth of consumer and business services (from video uploaders on social networks, to stock market analytical tools). And as that content becomes more popular, so does the Java platform - expanding Sun's market opportunity in the corresponding datacenters. That's why we see it as a virtuous cycle.

That cycle also provides Sun with some exceptional foot traffic - just last month, we distributed more than 60,000,000 Java runtimes, to users all across the planet. The number is growing, as more content is built for Java 6 and the upcoming JavaFX, as more PC's join the network, and as more workers join the workforce (and are assigned Java-enabled laptops). At this point, I'd bet there are about 1,000,000,000 (that's a billion) Java runtimes installed on PC's around the world. With more by the day - each generating revenue for Sun.

As with most of our software products, we don't distribute products without intent - like Google, our products are both a means of acquiring customers, and generating revenue. Freely distributed software establishes a relationship with an end user - just like free search, free news or free shopping. About two years ago, we reached an agreement with Google in which they recognized the value of our relationships with Java consumers. Just as the PC makers want distribution via retail outlets, Google wanted distribution of their search technologies - via our Java update mechanism. When we present an update to a user, we may offer other sponsored software (a Google search toolbar, eg).

After a careful negotiation, we agreed, and crafted a wonderful relationship that served consumers, Google, and Sun. Last year, we renewed the agreement, and recognized even more value for all involved. This year, we decided to run an open auction, and received bids from a number of companies. It was a tough process, but given the growing volume and momentum around Java, we clearly represented just about the most popular distribution vehicle on the internet today - and Microsoft worked hard to represent the most attractive total offer.

The decision to go with Microsoft was based on overall value - it was also predicated upon their endorsement of and agreement to help promote MySQL. Stay tuned for more details on what we'll be doing together.

What's the deal worth to Sun? This deal will be one of the most valuable distribution deals ever struck in the industry - and it likely makes Microsoft one of Sun's largest customers. It'll also set the stage for an even more interesting auction next year, as more and more folks realize the value of retail distribution. Thus far, our deal with Microsoft is US only - and new auctions are in flight for international rights (alongside other non-toolbar products for the US, perhaps a browser...).

As for other high value distribution assets at Sun? I just read one analyst report questioning whether anyone actually used OpenOffice. We happen to run Sun Microsystems on OpenOffice - more importantly, it's used across the world, and we're now commercially licensing it to brand name companies wanting to save big dollars on office productivity.

To put some data around its popularity, last week, we distributed more than 3,000,000 copies of OpenOffice 3. Downloads are accelerating, giving us a reachable user base we estimate to be between 150,000,000 and 200,000,000 users - a global recession will amplify OpenOffice adoption. And 100's of millions of users drive a lot of foot traffic. An auction's afoot (no pun intended) to see who we'll be partnering with us to integrate their businesses and brands into our binary product distribution - the possibilities are limitless: people tend to print those documents, fax them, copy them, project them (and I know this annoys my friends in the free software community, but branding allows us to invest more in OO.o community and features, from which everyone benefits).

With Verizon running a similar auction to integrate a search vendor into their wireless devices, they (and their industry across the world) are seeing the same opportunity. Just because a few retailers are having trouble doesn't mean the value of reaching customers has gone away. Foot traffic still counts, but in today's economy, software distribution's a lot easier to manage and monetize than a real estate portfolio.

After all, who wouldn't want to meet a few hundred million new customers?

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Update: I should've clarified, above: users without any interest in toolbars can simply decline the offer during install - and receive their Java update without any sponsored software.

Posted on 11:19PM Nov 12, 2008 | Comments[67]

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You Have to Stop to Change Direction

The bursting of the internet bubble was good for the computer industry.

Many of us didn't like the medicine, but I can't remember a single customer upset at the idea of paying $20,000 for computing infrastructure that used to cost them $100,000. The price compression came from open source software, and a move toward general purpose servers, and resulted in companies formerly making 65% gross profit on products (Sun among them) facing a new reality.

But what doesn't kill you makes you stronger.

Since then, Sun's built the biggest open source software business around (see this report for details), from platform software to application infrastructure (even a consumer product or two). Like Google and Microsoft, our products are both our ads and our revenue streams - our brands, and products, are recognized globally.

On Monday last week, you saw us continue to convert that brand awareness to revenue - with the introduction of a full line of MySQL optimized systems. By our estimates, there are about 11,000,000 MySQL users on earth - our new systems can triple their application performance. So we've made free evaluation units available to MySQL users (via our Try and Buy programs). Click the image to the right to listen to Marten Mickos and John Fowler talk about the opportunities ahead.

And that brings me to today. I was on a call last week with the Global CIO for one of our largest customers - one who was dramatically affected by the credit crisis. I was outlining where we were headed in open storage (a business that grew more than 150% for Sun last quarter), and he said, "One of your peers just told me flash was overhyped." I asked him if the peer happened to work for a proprietary storage company. He protected his source, but I knew the answer (I probably knew the CEO, too).

The storage industry bears a remarkable resemblance to the proprietary server industry at the bursting of the internet bubble - closed, highly profitable, frustrating customers with exorbitant charges. Plump, and ripe for change. Like a plum. Flash memory and open source file systems are about to change the landscape, and upend the industry - you read it here, first.

A notable philosopher once said, "You have to stop to change direction" - and for better or worse, I know a lot of customers stopping right now. They're rethinking their future, and it's into that thought process we're introducing our newest open storage platforms, engineered with flash memory and open software to radically scale back what customers have to spend - while radically increasing performance, capability and ease of use.

Amplifying our Thumper product line, what started as the FISHWorks Project (Fully Integrated Software and Hardware) in Sun's Labs, is now being unveiled - in the Sun Storage 7000 line of unified storage products.

Now, storing data on a disk is fairly straightforward. But administering large pools of fully replicated data, diagnosing problems on production systems, seamlessly dealing with capacity planning and disk failures, spanning every protocol known to man - all without draining your budget with antediluvian license keys and proprietary hardware - those are very high value problems to solve.

And those are exactly the problems we've solved.

The 7000 class systems take about five minutes to set up and provision (yes, five), and we've eliminated almost all the complexity around volume administration and drive failure (remember, ZFS technology is at the core). The 7000 systems are driven by the most scalable, powerful, open storage microcode in the industry: the OpenSolaris kernel. DTrace analytics provide a real-time lens into production systems - to understand performance, workloads, and help make live capacity-planning decisions (click picture at left for a sample control panel). The systems come bundled with a full suite of protocol, data management and availability features - built into the system without incremental fees or license keys.

For the geeks among you, we've turbocharged ZFS with Hybrid Storage Pools. Hybrid storage pools allow ZFS to optimize storage performance by spreading data out across DRAM, read or write optimized flash memory (they're not the same thing, after all), and very lower power commodity disks. The net result is a massive speedup in storage performance, with an equivalently massive drop in power consumption, all managed transparently - applications will just run faster. Much, much faster. For a full set of technical videos/specs, go here.

Storage customers and administrators are about to experience a radical improvement to their quality of life - all without pharmaceutical intervention. And as the price of flash memory continues to plummet, it's only going to get better.

But you have to stop to change direction.

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Try out a 7000 free of charge - just go to our Try and Buy page, select a configuration, and give one a whirl.

And as we did to kick start awareness of our Niagara systems, for those capable or interested, write a blog or publish a review (use the tag "fishworks") - we'll select (at our sole discretion) from those we see, and give a few 7000's away to those with the most valuable/constructive comments. All reviews are eligible (good and bad).

A little bit of history here, too.

Posted on 08:40AM Nov 10, 2008 | Comments[24]

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Change Has Come to America

On behalf of Sun Microsystems, I would like to offer my sincerest congratulations to President elect Barack Obama. What an extraordinary accomplishment.

I would also like to extend my congratulations to his web team for having chosen MySQL as the platform behind their election web site, BarackObama.com.

Lest many of you get your hopes up, we cannot guarantee the White House to all MySQL users.

Posted on 11:00PM Nov 04, 2008 |

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