Does Oracle run the world? I would have to say no but Raj (Larry Ellison is his idol) and the 40,000 Oracle customers that descended upon SF last week might beg to differ. What do James Carville and Mary Matalin have to do with enterprise software? Pretty much nothing, except for the fact that they delivered the opening keynote for Oracle OpenWorld. (And that’s the only and last politically-oriented thing you’ll hear from me as we run up to the election). For a surprisingly funny and extensive photo gallery of the eye-popping event, check out cdye1’s photostream on Flickr.

But UB40, Elvis Costello and Seal aside, Oracle OpenWorld did offer training, certifications, and always entertaining speeches by Ellison. Ben Worthen’s favorite – “Larry Ellison’s Brilliant Anti-Cloud Computing Rant” delivered to analysts on Thursday. From Ben’s slightly-edited excerpt:

“The interesting thing about cloud computing is that we’ve redefined cloud computing to include everything that we already do. I can’t think of anything that isn’t cloud computing with all of these announcements. The computer industry is the only industry that is more fashion-driven than women’s fashion. Maybe I’m an idiot, but I have no idea what anyone is talking about. What is it? It’s complete gibberish. It’s insane. When is this idiocy going to stop?

“We’ll make cloud computing announcements. I’m not going to fight this thing. But I don’t understand what we would do differently in the light of cloud computing other than change the wording of some of our ads. That’s my view.”

So did everyone catch that? Cloud computing is complete gibberish and idiocy, but apparently Oracle’s already been doing enough around it to advertise the fact. I will have my cake and eat it too!

We’ve been pumping out the posts from the shows we went to – let me tell you, live-blogging is hard when you’re trying to share apparently miniscule amounts of bandwidth with 14,000 other attendees – and we have even more to share as we step back, contemplate and describe how some of the announcements, info and especially roadmaps fit into our overall picture over here at ScienceLogic.

For example, we released the results of our annual industry IT survey last week. Twice a year – at FOSE (for Government IT) and at Interop NY (for enterprises) – we take advantage of the fact that we have a big beautiful booth at these shows and offer a fabulous ScienceLogic t-shirt in return for a couple of minutes time with attendees living the problems we try to solve. Instead of telling people what their problems and priorities are, we like to ask.
Interop NY Survey - Trends and Challenges
Detailed Reports on Trends and Comparison to Government IT

And I just had to share this one because it is so bizarre. Are VMware and Paul Maritz guilty of plagiarism? You have to check this out to get even part of the picture. Apparently this guy has posted his slides (we know they are from VMworld 2007 because it says so in the lower-right-hand corner…) which prove that the “virtual datacenter operating system” idea was his idea a year before it showed up on Maritz’s keynote this year. Hmmm. And then after posting all these slides and making all the connections between his presentation and Maritz’s, he says he’s just kidding about the plagiarism. Can anyone sort this out and let me know?

I’ll tell you who wasn’t kidding when I went by their booth at VMworld – a certain chargeback vendor and VMware “partner” who was quite shocked two months ago when they walked into a meeting with VMware about future roadmap. Apparently, the slides they saw (preview of VMware’s announcement re adding extended chargeback capability within vCenter management services) were mighty might similar to slides they had given in a presentation to VMware about their own roadmap. Coincidence? I’ll let you decide. And I’ll also say, their strategy to combat this – support for Hyper-V coming early in 2009.

One of the main problems in counterterrorism today is that there are so many people and vehicles, and so much data and material, moving through globalization's myriad networks that it seems virtually impossible to track it all effectively. Nowhere has this problem been more acute than on the high seas.

In 2006, Adm. Harry Ulrich, then U.S. commander of NATO Naval Forces Europe, decided to do something about it. Despite having virtually no resources, his dream was to transpose the global air-traffic control system onto sea traffic.

Worldwide, aircraft are transparent, because they're all required to carry an identification beacon that allows them to be tracked leaving and entering airports, and monitored between airports, by a global network of sensors. Act suspiciously and somebody's fighter aircraft will soon be on your tail.

No such pervasive system currently exists globally for maritime traffic. While bigger ships carry an ID beacon similar to aircraft, without a shared monitoring network, that's like tracking only selected commercial jets and giving everyone else a pass.
So Ulrich, upon taking command, asked a simple question: "If we can do that in the air, why can't we do it on the sea?" He made a point of pioneering his sea-traffic-control effort first inside the Mediterranean, where NATO's southern naval forces have historically been concentrated, but his real target was waters off Africa -- the most ungoverned maritime space in the world.

Ulrich knew the U. S. Navy couldn't do it alone, much less bring Africa's meager coast-guard-like navies up to snuff so they could do it on their own. So he quickly created a network of assets -- both public and private -- to manage that space, modeling his monitoring system on international air-traffic control.

Ulrich began stitching together a network of shore-based sensors ringing the Mediterranean. His naval command then began initial monitoring by tapping into the International Maritime Organization's existing Automated Identification System, transforming NATO's ability to track ship traffic in the Med.

Almost overnight, NATO went from tracking dozens of ships on the Mediterranean to thousands, and instead of getting the data sometimes up to 72 hours late, now the contacts were being tracked in one to five minutes -- to an accuracy within 50 feet on the earth's surface.

When the classic big-firm systems integrators told Ulrich it would be too costly to pull it off, the admiral turned to the Volpe Center in Cambridge, Massachusetts, a U.S. Department of Transportation research center. Instead of hundreds of millions of dollars, Ulrich's initial network cost $900,000. The shore-based receivers are small, roughly the size of a radar dish you might find on a pleasure craft.

The strength of the system is a function of its reach: the more countries join, the larger the shared operational picture. By the time Ulrich retired at the end of 2007, he had enlisted 32 countries throughout the Mediterranean, the North Atlantic, along the west coast of Africa, around the Black Sea, and in the Pacific. Today, the network continues to spread around the planet.

With Ulrich's system in place, local police, coast guards, and border patrols catch most bad guys, obviating American military responses. As Harry told me for an article I wrote about his work in a fall 2007 issue of Esquire, "I don't do defense; I do security. When you talk defense, you talk containment and mutually assured destruction. When you talk security, you talk collaboration and networking. This is the future."

The admiral's legacy program, the Maritime Safety and Security Information System, earned the Volpe Center a prestigious "Innovations in American Government" award this month from Harvard University's Ash Institute for Democratic Governance and Innovation.

Traveling towards VMworld 2008

I, along with thousands of others, wended my way through a vast dimly lit cavern of a place helped along by the strangely surreal sight of ushers in black waving wispy red flags to guide us not to the empty seats in front of us, but to the ones 50 yards on. (Ah Vegas, my feet hurt already.) Perhaps the point was to live in the moment, soak in the pre-rock concert atmosphere complete with a hip and cool soundtrack ripped off from Apple commercials. (Do they all use the same ad firm?) A better way to build the anticipation for, yes, the kickoff keynote session at VMworld 2008. (photo credit: lodev)

To the sounds of Hey Ya (Shake it like a Polaroid picture), we shifted forward in our uncomfortable temporary seating placed, as at all tech conferences, too close for all but the skinny girls. The moment was here – one of those videos started playing on the dozen or so huge monitors floating above the convention crowd. You know this video; you’ve probably seen it before from HP or someone like that. One of those videos with instrumental Coldplay music in the background with time lapse/speeded-up video of people in motion and floating captions dropping into the images that leave you with a slight smile on your face as you “get” the relationship between image and text. (Do they all use the same ad firm?)

And here he is, announced like a Vegas headliner, Paul Maritz, the new CEO of VMware. Hmm. After all that hype, I rather expected someone in a black turtleneck and jeans to come out. Instead here’s this guy with pleat-front pants and an admittedly cool accent (New Zealand?) who looks a little like Al from Home Improvement. Not that there’s anything wrong with that – everyone likes Al.

And then the real fun begins.

• 30 years ago, Paul Maritz started off his business career as a developer
• 10 years ago, VMware was founded by Diane Greene and Mendel Rosenblum (BTW, 10 seconds spent showing a slide with cartoon-ized images of the founders, “thanks for what you did for the company for the past 10 years”. 10 seconds after 10 years…but maybe more would have been hypocritical…)
• a retrospective of centralized vs. decentralized computing initiatives from the 1960’s to today
• of course VMware milestones from 1998 to today
• and then an analyst-ready diagram showing the product roadmap (to be delivered in 2009) with, you guessed it, finally a connection between VMware and cloud computing (remember Maritz’s cloud-computing company was bought by EMC just a couple of years ago and that’s the section he headed up at EMC before being brought into VMware).

Forward Looking

2008 (and probably much of 2009) will be a very busy year for VMware. If you believe the roadmap, VMware seems to be taking on the management of everything – from chargeback and capacity planning to virtual storage and virtual networking (more to come on just what the planned vStorage and vNetwork will deliver) – but all of it VMware-centric. As we said in an earlier post, they’ve moved away from “defending” the hypervisor business proposition to focusing on management services on top of their own hypervisor platform. Revenue pressures must be excruciating – who wants to be a public company these days?

The best part of that new “Virtual Data Center Operating System” diagram/roadmap was the addition (and I mean addition) of something called Cloud vServices. (Did anyone else find it odd that Cloud vServices is kind of on its own in the Infrastructure vServices area? AND, I’ll have to get the other version of the diagram/roadmap I actually saw at the show because that one shows an inexplicable 4^th box in the Application vServices area titled “…”. Really. Maybe to balance out the addition of Cloud vServices?)

What was clear is that the move from VirtualCenter to vCenter –and the new vServices for rolled-up management of virtualization components/capability to span multiple VirtualCenters (or future vCenters) for reporting, monitoring and management at scale – has been in the works for a bit (but in tech time, that could mean 6 months), but the cloud stuff…not so much.

Beyond the very high-level speak appropriate to a keynote (100+ service provider partners for off-premise cloud…suspended VM’s that you don’t have to pay for until you need it), the details are uber-fuzzy. There was a session that Dave went to which was supposed to shed more light, but when questions were asked about how it really works, the answers seemed to be TBD. Does anyone know more? If VMware really has figured out practical cloud computing for enterprises, kudos to them. But I fear they’re like everyone else (except maybe AT&T) and are still working out the details.

Introduction

Virtualization is a word used by consumers and also by IT. But, do we all mean the same thing?

A very cool video from Cisco provided answers to “what is virtualization” from an  engineering perspective, data center perspective, IT perspective and the user perspective (virtual world).

Virtualization is about breaking the bonds between applications and server hardware, nodes and networks, applications and operating systems.

Why is this interesting? Virtualization holds the promise to transform the way we work, live, learn and play.

Why virtualize?

The real estate boom over the last 30 years has driven people to the suburbs. People didn’t mind commuting for an hour with lower gas prices. Today, we have a weak economy and gas prices are high. Something has to change.

Many are opting to stay at home. Businesses are trying out telecommuting, some (like Cisco) are even offering telepresence. This helps by reducing carbon footprint. Corporations are breaking free from physical requirements. The global workforce is also having an impact on the network. These changes are having a huge impact on the network.

We are on the cusp of transitioning from virtualization to VIRTUALIZATION.

“One to many….many to one.”

This is Cisco’s idea of virtualization.

Consider the different roles we play in life - one to many. Spouse, executive, friend, parent, gym rat. This would be “one to many”. This is exactly what virtualization does. It allows you to partition resources off that you can use on the fly.

Where do I start?

Virtualization starts with server and storage. But, it’s the network that touches everything - it spans the physical, the virtual, and the cloud. This provides the connectivity to all these resources. The network brings transparency to the picture. It allows you to better monitor performance and better implement security - great benefits!

Why do I need this?

At Cisco, we saw that we were only using 20% of our storage utilization. We wanted to virtualize our datacenters. When we did that, we were able to get 68% storage utilization. For each year that we were able to defer buildup, we saved $40 million.

From a business standpoint, virtualization helps you differentiate and work faster. Provisioning in minutes, improved productivity and competitive differentiation, using less power (environmental impact), and up the ante of business continuity. If VMWare fails? It’s OK. You can reprovision it on the fly.

Is it for everyone?

IT organizations tend to be siloed. You have the IT side and the Operations side. Each has responsibility. For virtualization to work, these walls have to come down. The concept of virtualization depends on shared resources.

Metcalfe’s Law of the Network Effect

Everytime you add a node to the network, you increase the value. This is what happens with virtualization. Every device you virtualize increases the power of each device. More control of environment and more efficiency.

This leads to…

Cloud computing.

Wow, show of hands from the audience when Marie asked “how many are using cloud computing?” and “how many are using your own clouds?” - not a lot of hands were raised. Interesting considering the coverage cloud computing has and the focus of it.

Cloud computing has three possibilities at Cisco:

• Flexible infrastructure (hosting)
• Abstract services (APIs)
• Application services (SaaS)

Automation is going to be key, and will need to integrate virtualization-aware elements.

Can you imagine if you wanted interoperability in the cloud? People haven’t even begun thinking about it.

Conclusion

As you virtualize, your role will change. You will think more about strategy. But keep in mind these “minefields” of virtualization:

• Insufficient planning
• Lack of standards
• Weak security

Security cannot be an afterthought. It has to be planned. We’ve seen new forms of malware, hypervisor attacks, and root kit infections.

As higher expectations from end users evolve, we’re becoming not server oriented, but SERVICE oriented.

Tips:

• Think holistically
• Consider IT culture - equipment and people

I think a good litmus test of the mental and moral quality at any large institution [with significant derivatives exposure] would be to ask them, "Do you really understand your derivatives book?" Anyone who says yes is either crazy or lying.

It is crazy to allow things to get too big to fail, run with knavery. As an industry, there is a crazy culture of greed and overreaching and overconfidence trading algorithms. It is demented to allow derivative trading such that clearance risks are embedded in system. Assets are all “good until reached for” on balance sheets. We had $400m of that at general re, “good until reached for”. In drug business you must prove it is good. It is a crazy culture, and to some extent an evil culture. Accounting people really failed us. Accounting standards ought to be dealt with like engineering standards.

There are distinct parallels between phishing / retail payments, and the bigger investment mess. In both cases, banks would argue these are core business. In both cases, they have applied risk-based security models, and accepted some loss. In both cases, they have the ability to apply substantial experience to the monitoring, allocating and absorbing risks and losses.

In both cases, they watched and did nothing as the risks started from low, and migrated upwards. Are we at the point where regulation has killed the ability of banks to apply their (arguable) one core skill, to whit, risk-based analysis? Are banks that far out of banking that they no longer have it?