SaaS is taking a bite out of the $18 billion IT management market. A new Forrester Research report forecasts SaaS-based IT management accounts will be 10% of the market by 2013. The reason: high level of interest from medium-sized and large enterprises. Forrester also predicts that enterprises with 1,000 or more employees will account for 50% of SaaS installations in 2009. We’ve seen this on the service desk side with the rapid growth of upstart Service-now.com. Companies are looking for easier and rapid deployment, lower upfront and capital costs and rapid time to value – all benefits of SaaS as well as our own appliance model.

IBM snapped up Transitive this week. Their QuickTransit software dynamically translates native code between architectures, enabling apps compiled for one processor to be run on another without any modification. Apple was the first licensee and used it to build Rosetta, a translation system that allowed users of Intel Macs to seamlessly run legacy PowerPC apps. IBM plans to use the technology to move workloads onto IBM systems without recompiling, allowing customers to “save on energy costs due to hardware consolidation and reduced TCO.”

At CA World, CA announced a partnership with Amazon to provide “management capabilities around Amazon’s EC2 utility computing platform, potentially including discovery of software running on EC2 instances, performance monitoring, configuration management, software deployment capabilities and provisioning”. John Willis, in spite of some pretty funny potshots and stories about CA (don’t we all have them), writes that “CA is the first of the Big Four to take the cloud serious”.

Murderous organizations have increased in size and scope; they are more daring, they are served by the most terrible weapons offered by modern science, and the world is nowadays threatened by new forces which, if recklessly unchained, may some day wreck universal destruction. The Orsini bombs were mere children's toys compared with the later developments of infernal machines. Between 1858 and 1898 the dastardly science of destruction had made rapid and alarming strides...

No, that wasn't a typo. "Between 1858 and 1898...." This quote is from Major Arthur Griffith, Mysteries of Police and Crime, London, 1898, II, p. 469. It's quoted in: Walter Laqueur, A History of Terrorism, New Brunswick/London, Transaction Publishers, 2002.

I’m sure you already know about the other “network management” – where ISPs and carriers get their hands publicly slapped for limiting bandwidth to high-traffic offenders. But when is this kind of “network management” a good thing? At a panel sponsored by the FCC in DC, reps from carriers and ISPs discussed what steps they’ve been taking to prepare for a pandemic or other major global crisis – that would force workers to stay at home or work from more remote locations to limit exposure.

Are people paying attention to ICANN? They’re saying that IPv4 will be fully allocated in the next two or three years. Does anyone care? In their bid to make people care, ICANN talks about the state of IPv6 adoption and touts Africa as the most rapid adopter.

SOA soon part of the ‘cloud’? No, please no.

Microsoft – The Silver Lining in Every Cloud. Joe Wilcox over at eWeek’s Microsoft Watch, has been following Steve Ballmer around and collecting some nice quotes on how the company is transitioning. “For many years, we had kind of what I would call the all-encompassing mission, vision and scorecard statement: a computer on every desk and in every home. …Well, our footprint and portfolio is broader than that. “ [In every hand and of course, in every cloud…] “So, as a vision statement we talk about creating seamless experiences that combine the magic of software, the power of the Internet across a world of devices.” The magic of software – something I haven’t thought about for a while. And:

“You need a real platform in the cloud. When we wanted to go after the PC, we built an operating system. When we wanted to go after the phone, we built an operating system. When we wanted to go after the enterprise, we built an operating system. We’ll announce a new operating system, one that runs in the cloud and has a wide variety of capabilities.”

John talked about Microsoft’s mission, his perspectives on key industry trends and market opportunity; he touched on Cloud Computing and Virtualization and took some Q&A from the audience of Managed Service Provider executives.

One of his first proclamations - Microsoft has really embraced the heterogeneous environment. Really? How in the world is Microsoft going to help convince IT line managers, or mid level managers to believe this statement? I think they have a long way to go to achieve this vision with any credibility in the marketplace.  I do know that they are making small strides.

Microsoft has been widely credited with some very good blogs that are self critical and introspective. They have also been quite active in the standards boards within DMTF and many others such as Open WSMAN and CIMON (Open Pegasus). Microsoft in February published 30,000 pages detailed technical specifications – protocol documentation for Exchange, since that time they have published another 15,000 pages. They have had over 224,000 downloads since February 21, 2008. Thus they are trying to be more open by making some of these secret sauce protocol resources directly available on the web.

So for now, I will take a very cautious wait and see approach to this proclamation. Time will tell.

Trends

• Rapid growth continues
• Hosting Competition has a new face
  • Platform gorillas (amazooglesoft)
  • Ad supported Web 2.0 hosters (Google, Facebook,)
• Utility Cloud Computing models are expanding to non-traditional hosting companies
  • Wells Fargo vSafe - hard to believe that a big bank would start to offer a SaaS offering
  • New tools and markets digital ribbon, CohesiveIT

IDC Data shows that growth of SaaS ISV’s is the biggest layer of growth. The fastest growing services are complex, custom applications. IDC says this area will be bigger than the hosting area in the next 5 years. John said that Microsoft is spending a lot of time, money and energy on this right now.

John said:

“when Microsoft thinks about the building blocks that make-up the cloud, virtualization is a core piece of the puzzle. However you also need also identity services, Operating system with standard set of libraries to tap into… or remote storage that application developers will tap into.. Developers will consume these set of services, but you will also need a set of tools to manage your physical, virtual and geographically distributed datacenter infrastructure.” (that is where ScienceLogic comes in!!)

He went on to say,

“In some ways, virtualization enables decentralization – allows you to move from data centers, enables fast scaling out, business to move from on premise to the cloud and off again…. Automation is very important – this will help you scale your business – this is core to your future success.”

He talked about a new breed of knowledge worker: He called them Digital Natives (compared to grey haired guys like me who are left out of this category).

Definition of a Digital natives? A young adult who has grown up with cellphone, web based applications, Facebook account, as their primary mode of communications.

John commented that we are 5 years into a 10 year journey. Only 12% of all servers in the world are virtualized today… in the next 4 years it will double to 25%. This is the time to think through how this business will affect you.

‘Virtualization without good management is more dangerous than not using virtualization in the first place.” Thomas Bittman, Analyst Gartner

Patching and provisioning nightmare – no scalable administration – sprawl chaos.

John posed a question to the audience: How do you partner to provide the ISV support in application development with specific market needs… partner by keeping the hosting to SaaS solution providers up and running and provide the quality of service that their customers expect…. Complimentary services of storage and backup is a big win with a huge market-upside over the next 5 years..

John said that Microsoft continues to make  huge investments with Managed Service Providers.

• Investing in the windows hosting platform
• Hyper V and SQL2008 GoLive program - getting beta code out to service provides to find as many bugs as early as possible.
• Software + Services (S+S) incubation center program
• Partnering for cloud platform market offers
• Cloud platform guidance and best practices

During the Q&A, David Burns from Cincinnati Bell asked the very best question… “when are you going to make it easier for the Service Provider market to deal with the Microsoft Service Provider Licensing Agreement (SPLA) quarterly statistics pull and change the SPLA pricing to be more efficient and creative for the new Virtualization and Cloud offerings you have talked about?”

John’s response: “We hear your frustrations loud and clear and are working on some new ideas for the future version of SPLA.” My interpretation – “Dear Service Providers don’t expect anything new or easier to deal with in the next 6 months!”

His closing remarks: “Cloud is evolving = very early stages, lots of hype, but think of how this evolution will effect your business and how you can plug into it.”

IBM’s presentation was cleverly titled 2mor0@Wrk - Tomororow work and Web 2.0.

Overview

Web 2.0 is delivering a whole different paradigm of communication. The slide is Lotus Symphony - NOT PPT. Over 2 million downloads.

There is an information overload that impacts individual productivity in the workplace. It has a profound effect on organizational productivity. A more complex organization entity provides more pressure and more inefficiencies in workplace. Up to 70% of time can be used looking for the WRONG information.

Collaboration mitigates information overload. It allows you to identify experts and opinions.

The collaboration agenda. Enterprises are at the onset of exploring these features. Web 2.0 is giving us the capacity to do more. Collaboration optimizes business outcomes - global, secure and dynamic.The most progressive companies are looking at UNIFIED COMMUNICATIONS. Making sure that directories and profiles are fully mobile.

Collaboration should be a contextual part of the workflow, going directly into applications.

IBM’s collaboration strategy is to deliver these services through online or offline services.

Demonstration

Executive IT architect Ron Sebastian provided a demonstration of IBM’s collaboration strategy. IBM’s Web 2.0 solutions span delivery platforms:

• Platform - web as  platform
• Application - development
• People - social computing

Lotus Connections - a family of social computing software that provides profile lookup and community capabilities. Think of Facebook, Yahoo Groups, and delicious combined in one portal.

Ron demonstrated these social services embedded into a healthcare provider application. Semantic tagging is available, contact information and commenting. Not only are we providing service to customers, you can integrate sync capability to directly call the person you want.

The biggest aspect of Lotus Connection? It’s all integrated.

A new service - Project Bluehouse. This is a SaaS delivery of these collaborated capabilities. The store and share can manage and share documents within and outside the company. Access control is no longer an issue.

Collaborative Web 2.0 services available as standalone products that also work in a mobile environment.

Case Study: Natural Disaster Management Mashup

Boeing came up with twenty different scenarios that they could handle through their systems. The problem was the one they didn’t count on. One example was Katrina - how to deliver supplies to the area: what airports were open? Where could they land? The problem was they could not find one list of public, private and military airports, nor what was open. The mashup took different feeds to allow the deacon maker to make a more rapid and intelligent decision based on information on where they could fly in the appropriate supplies. From open information sites like AirNav.com and personal contacts, users were able to mashup the information to make better decisions.

Conclusion

IBM announced the IBM Center for Social Software, proving their commitment to connect, collaborate, and innovate. Users and academics can work together to how these innovations can be applied to businesses and provide value to the market.

There has been some question of whether or not IBM can pull this off and move into the collaborative Web 2.0 market. Despite some criticism, it looks like IBM has really taken a step forward in advancing their products and services to meet market needs.

People drive better business outcomes. Connecting, collaboration, and innovation is key. Having the right tools and information to do that eases pressure that many organizations feel and brings Web 2.0 technologies to the heart of businesses.

The session took place at the beginning of Partner Day. The “regular” conference sessions actually begin tomorrow. Today is spent focusing on partner issues and enablement.

The panel for this session included:

• Mark Chuang Group Manager, Product Marketing, VMware, Inc.
• Kenon Owens Staff Systems Engineer, VMware, Inc.

You have to remember that most of the Partners here are not vendors like ScienceLogic, but big and small shops that are selling IT, networking and now virtualization solutions into end-customer environments. For these guys, understanding what virtualization partner programs and tools are at NetApp, for example, is very useful. And many of these companies are already selling Microsoft software and surrounding services for Microsoft products. So if you’re VMware, what’s the message to these partners in the face of the Microsoft juggernaut?

Microsoft to partners: “You may not like to admit it, but you’re probably already in bed with us.”

VMware to partners: “Our hypervisor technology outperforms Hyper-V and Xen, especially at scale. And anyway, it’s not about the battle at the hypervisor. It’s about the V-services on top of the hypervisor – VMotion, Storage VMotion, DRS, etc.”

Interesting and what we all already know, or think we know. The scale issue is an interesting one – too soon for Hyper-V and who uses Xen? But also interestingly enough, no announcement or even talk about extending VMware management tools to other hypervisors. The point, as the VMware product marketing guy made a point of saying, is that the question they needed to answer used to be “Why Virtualization?” and now it’s “Why VMware?”.

One more tidbit – this survey run by VMware asking their customers:

What are the top 6 apps you are running on VMware today

• IIS
• Apache
• Active Directory
• SQL Server
• Sharepoint
• Exchange

That means, 5 of 6 are Microsoft applications. Certainly it makes it even more challenging for VMware to navigate a path here.

The change since 2004 – would have talked about why virtualize. And now why VMware. (Duh.)

Talking to partners – many of which already have a successful Microsoft business. How VMware enhances your existing Microsoft business.

Top 6 apps running on VMware today (5 of 6 are Microsoft applications)

• IIS
• Apache
• AD
• Sql server
• Sharepoint
• Exchange

Source: VMware survey

Esxi - VMware – true thin hypervisor; maximizes resources utilization (over 100% memory commitment – allows avg of 2:1 memory overcommit) – host system memory is usually the resource bottleneck – plus Advanced Scheduler runs VMs better under load and to a greater capacity (hard to show this part); performance acceleration – using binary translation (32bit), para-virtualization and Hardware Assist (for 64-bit)

(rvi – rapid virtualization indexing)

No parent partition that all hypervisors have to go through

Vs ms/xen

Parent partition – dom 0 => potentially problem at scale; i/o that could be a bottleneck

Hyper-v SPECjbb comparison

= 9 vms on VMware and hyper-v hypervisors

Outperform (CPU) by 50% - general purpose scheduler isn’t able to keep up? “got to be”

(cpu only test)

Also used VMmark – to demonstrate again that VMware is performance tuned and designed to run at scale vs Hyper-V

Size Does Matter:

Vmware ESXi: 32MB

Hyper-v – 2.6 GB

Xen – 1.2 GB

Hyper-V uses Microsoft Server Core – so the last two Patch Tuesdays had to make changes to Server Core (nothing to do with Hyper-V) but service interruption for Hyper-V.

VMware VMsafe – “Provides an unprecedented level of security” “virtual is more secure than Real” (uh oh – clearly didn’t read about the

*****************

VMware TEST:512 mb vms on server w/ 4gb ram –

7 vms - xensource (w/no memory overcommit)

6vms – hyper-v before error (w/no memory overcommit)

14vms - w/memory overcommit and management

Running sql io sim – heavy workloads

TCO – not just license; now ESXi is free – so hardware

809 - ESXi

871 – vi3 foundation ($995)

1168- vi3 enterprise ($5750)

1621 – hyper-v – 2x cost because of hw

Xen – 1618

Memory overcommit (89% in production vs. test/dev)

Survey – 37% of respondents at 2:1 RATIO OR HIGHER; real average is around 1.8: 1

*********************

This guy Mark sounds like a used car salesman:

“Always On, On Demand Data Center”

Hypervisor is very important but what is more important are the v-services on top of this. Manage shared, pooled resources. “Value Above the Hypervisor”

How does all this save “your customers” $$?

VMotion – saves cost on planned maintenance: no more overtime, no more time scheduling maintenance windows (see cost framework below)

10 (# of servers) x 6 (@ of updates) x [ (overtime cost 2hrs x $150/hr) + (scheduling downtime # of apps per server 15 x time spend scheduling per app 0.75 hr x $50/hr)] = $58,500

Same thing with using VMware Storage VMotion

Overtime cost + scheduling downtime + planning move + alternative tool cost - $68,750 (2.5 TeraBytes)

The Value of High Availability

- cost of lost business, lost work

- cost of lost productive time

4 hours of downtime x # of users per vm 10 x number of vms per host 15 x cost of user productive time $50/hr x failures per year in 10-host cluster 2 = $60K

(10 servers, 150 vms)

SAVINGS (using enterprise version)

Update management 149,760

HA 60K

DRS, VMotion Storage VMotion 187,250

808,259 – hw, power cooling, etc.