Every week the Opus team picks a news story or topic or idea that is relevant to the entrepreneurs and businesses we partner with.

RSS Feed

Archives

Rackspace and the Open Compute Project

Ajit Deshpande - - 0 Comments

During last week’s Open Compute Summit, Rackspace announced that it is working on designing its own servers using open-source Facebook specs. Rackspace has been involved with Open Compute since its inception in April’11, and has been itself a founder of the open-source cloud computing operating system Open Stack. This recent announcement by Rackspace thus underlines the momentum that the server commoditization trend has gained over the past two years. Open Compute now boasts more than 50 members including major server and storage players such as Intel, AMD, Dell, HP, VMware, EMC and Fusion-IO. Missing, on the other hand, are three big names – Google, Amazon and Microsoft – all of whom build their own proprietary servers already.

Rackspace’s announcement aside, Open Compute represents an interesting contrast between Facebook and Google. Facebook in this case seems to be sharing details of proprietary technology that otherwise would have provided it with a technological and financial edge over much of the market. Google on the other hand, seems to be far ahead of everyone including Facebook, but has never shared its knowhow until it has secured a significant technology head-start, for example with its Google File System or with its Open Flow implementation. Is Facebook’s greater dependence on the exponential data being generated and shared by its subscribers incentivizing the company to mobilize thought leadership in the entire industry to drive down cost, something which Google does not consider to be a critical issue for it in the near term? Will Google+ ever gain enough scale to change that perception for the company?

The biggest beneficiaries of Open Compute: ODMs such as Quanta that will thrive in a level, non-branded playing field. And the ones that suffer: major players in the compute and storage ecosystem, many of whom are Open Compute partners. These are the very companies that will see their margins decrease due to the initiative but have no option but to participate, so as to avoid being left out completely. Another example of disruption in technology, another example of data being king!

« Back to Blog
Also on the Opus Blog

Flickr Turns 10!

February 21, 2014
Ajit Deshpande - Photo-sharing site Flickr last week celebrated its 10th anniversary. Acquired by Yahoo in 2005 for 35 million, Flickr currently has 92 million users across 63 countries that...

Chromecast, from Google

August 1, 2013
Ajit Deshpande - So the $35 Chromecast is in the market now, having been released last week. Chromecast is a small form-factor dongle that can be directly connected to the HDMI port on a TV and...

Fewer 'Ville's

January 7, 2013
Ajit Deshpande - Last week, leading social game developer Zynga announced that over the month of December it had followed through with its planned closure of 11 game titles, including Petville,...

One BILLION hours for Netflix

July 8, 2012
Ajit Deshpande - Over the past year or so, Netflix stock has taken significant beating, due to the company's attempts to initially significantly raise prices on its most popular DVD + Streaming...