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May 2008

May 31, 2008

Jeff Bezos Talks About Why Amazon is an innovator in Web Services

GigaOm has an interview Amazon's Jeff Bezos about Amazon Web Services.

This video confirms 2 reasons why I think AWS is successful. Being a retailer, Amazon has low margins and needs to be efficient. (they know how to do pricing to maximize profit.) And, being a retailer, they have to hit dates to meet retail schedules (no compromises on delivery).

Here are more details for you to digest.

  • How and when Amazon began its cloud computing effort.
  • Why Amazon has become an innovator with Amazon Web Services and how it relates to their core business of being an online retailer.
  • Whether or not Wall Street recognizes Amazon’s cloud efforts.
  • What’s next for Amazon Web Services.
  • Whether or not Amazon has plans for a VC fund or for cloud computing startups.

For even more info about Amazon’s cloud computing efforts, join us at our upcoming conference, Structure ‘08, where CTO Werner Vogels will be delivering a keynote address.

May 29, 2008

Amazon Web Services provides resizable compute capacity

AWS blog posts an entry they have added the capability to two new "high-cpu" instance types.

Amazon EC2 users now have access to a pair of new "High-CPU" instance types. The new instance types have proportionally more CPU power than memory, and are suitable for CPU-intensive applications. Here's what's now available:

The High-CPU Medium Instance is billed at $0.20 (20 cents) per hour. It features 1.7 GB of memory, 5 EC2 Compute Units (2 virtual cores with 2.5 EC2 Compute Units Each), and 350 GB of instance storage, all on a 32-bit platform.

The High-CPU Extra Large Instance is billed at $0.80 (80 cents) per hour. It features 7 GB of memory, 20 EC2 Compute Units (8 virtual cores with 2.5 EC2 Compute Units each), and 1,690 GB of instance storage, all on a 64-bit platform.

Behind the scenes amazon uses Citrix Xen for virtualization.

Amazon Elastic Compute Cloud, also known as "EC2", is a commercial web service which allows paying customers to rent computers to run computer applications on. EC2 allows scalable deployment of applications by providing a web services interface through which customers can request an arbitrary number of Virtual Machines, i.e. server instances, on which they can load any software of their choice. Current users are able to create, launch, and terminate server instances on demand, hence the term "elastic". The Amazon implementation allows server instances to be created in zones that are insulated from correlated failures.[1]. EC2 is one of several Web Services provided by Amazon.com under the blanket term Amazon Web Services (AWS).

EC2 uses Xen Virtualization. Each virtual machine, called an instance, is a virtual private server and can be one of three sizes; small, large or extra large. Instances are sized based on EC2 Compute Units which is the equivalent CPU capacity of physical hardware.

1 EC2 Compute Unit equals 1.0-1.2 GHz 2007 Opteron or 2007 Xeon processor. The three available Instance sizes are sized as follows:

Small Instance

The small instance (default) is the "equivalent of a system with 1.7 GB of memory, 1 EC2 Compute Unit (1 virtual core with 1 EC2 Compute Unit), 160 GB of instance storage, 32-bit platform " [1]

Large Instance

The large instance is the "equivalent of a system with 7.5 GB of memory, 4 EC2 Compute Units (2 virtual cores with 2 EC2 Compute Units each), 850 GB of instance storage, 64-bit platform"

Extra Large Instance

The extra large instance is the "equivalent of a system with 15 GB of memory, 8 EC2 Compute Units (4 virtual cores with 2 EC2 Compute Units each), 1690 GB of instance storage, 64-bit platform."

Wouldn't it be great if enterprise IT was run this way. Amazon is figuring out how to sell compute better than anyone else, and that is their business as a retailer.

Greening the Data center with IBM Tivoli Software

IBM released a marketing document on how Tivoli software provides an integrated approach to managing software. It's pretty good for a marketing document on integrating the information for a green data center.

IBM assumes a PUE of 2.0 and don't discuss how they can use their tools to improve PUE.

The one thing I did find useful is their electricity use by component, 2000 to 2006.image

For now a green data center tool I like is Mike Manos's Scry.

Down on the Server Farm, writes The Economist

The Economist continues its coverage of the data center industry by another writer in Seattle, referencing - Jonathan Koomey, Rich Miller (Data Center Knowledge), Mike Manos (Microsoft), Mike Foust (Digital Realty Trust).  The writer even mentions Microsoft Cblox containers.

The real-world implications of the rise of internet computing

Data Islandia

EVEN when the sky is blue over Quincy, clouds hang in the air. The small town in the centre of the state of Washington is home to half a dozen huge warehouses that power the global “computing clouds” run by internet companies such as Yahoo! and Microsoft. The size of several football pitches, these data centres are filled with thousands of powerful computers and storage devices and are hooked up to the internet via fast fibre-optic links.

Yet even more intriguing than the buildings' size is their location. Quincy is literally in the middle of nowhere, three hours' drive from the nearest big city, Seattle. But it turns out to be a perfect location for data centres. As computing becomes a utility, with services that can be consumed from everywhere and on any device, ever more thought is being put into where to put the infrastructure it needs.

Where the cloud touches down is not just the business of the geeks. Data centres are essential to nearly every industry and have become as vital to the functioning of society as power stations are. Lately, centres have been springing up in unexpected places: in old missile bunkers, in former shopping malls—even in Iceland. America alone has more than 7,000 data centres, according to IDC, a market-research firm. And each is housing ever more servers, the powerful computers that crunch and dish up data. In America the number of servers is expected to grow to 15.8m by 2010—three times as many as a decade earlier.

Data Centers Lack Tools and Commitment for Green Initiatives, says ARI survey

Aperture Research Institute has a survey report, "Data Centers lack tools and commitment to deliver on the ambitions of their green initiatives."

One of the results

Only 24 per cent of the organisations we surveyed said that the IT department charges the business for energy use.

I don't know about you, but I find the 24 per cent number high, but maybe it includes those who count power bills in their calculation in charge backs, not those companies who provide direct energy charge backs base on usage. 

So, 76 per cent of the companies do not look at the power bill in their charge back. We may have to wait until the power bill gets so large, the finance department gets a clue the large power bill is coming from its data centers.

Maybe I need to look at writing for an article for http://www.cfo.com/ on energy charge backs for data centers. CFO.com had an article on energy, but it's dated Aug 8, 2006.

May 28, 2008

Amazon Data Centers, A New Web Service Force?

On Amazon.com web services blog, there is a graph of bandwidth consumed by AWS vs. Amazon's web sites.

Lots of Bits

In January of 2008 we announced that the Amazon Web Services now consume more bandwidth than do the entire global network of Amazon.com retail sites.

Amazon.com CEO Jeff Bezos has been showing a chart of the relative bandwidth usage and I just received permission to post it here:

Aws_bandwidth

 

Amazon's Web Services growth has created a new force in online services. And Amazon's secret to its success may be its customer service focus.  Amazon is like a Nordstrom style retailer in that the customer is right.  How else can you explain amazon's rapid growth vs. the competition.

Power Plant Construction Costs More Than Double since 2000

WSJ has an article highlighting the difficulties in new power plant construction.

Construction costs for power plants have more than doubled since 2000, according to new index data to be released Tuesday, and inflationary pressures will continue to put the squeeze on electricity prices.

The findings are bad news for consumers and utilities alike, and help explain why power-plant development has become something of a quagmire in the U.S. -- with no type of plant emerging as a reasonably priced option that can meet rising demand for electricity.

[power plants]

The analysis comes in the form of a price index from Cambridge Energy Research Associates Inc., a research and consulting firm in Massachusetts that is a unit of IHS Co. Similar to the consumer-price index, it calculates the cost of building new power plants based on the cost of materials and other factors.

"Costs for labor, materials, equipment and design and engineering -- all are up," said Candida Scott, senior director of cost and technology for CERA. As a result, the cost of building new plants is up 19% from a year ago and up 69% from 2005.

The skyrocketing price tag comes as the world is roiled by surging electricity demand and as it weathers various supply disruptions, some caused by what appear to be changing weather patterns.

In all, CERA says, the construction of new generating capacity that would have cost $1 billion in 2000 would cost $2.31 billion if construction began today.

According to the index, all types of power plants are feeling the pinch. Components and construction materials for nuclear power plants scored the biggest run-up in costs, up 173% -- nearly tripled -- since 2000. Most of that increase has taken place since 2005. Costs for turbines used to generate wind power more than doubled, at 108%, and natural gas-fueled and coal-fired plants saw their capital costs nearly double, up 92% and 78%, respectively.

May 26, 2008

Server Tech collected Set of Power Calculation Tools - Cisco, Dell, HP, IBM, and Sun

I was going over Server Technology's white paper on Planning, Implementing and Application of Cabinet Power Distribution Units, and found a useful set of links for power calculator from Server vendors.

The power ratings found on the product nameplates are notoriously high when compared to its actual power consumption. The reason for this is that manufacturers design power supplies to be used across multiple product lines and also in anticipation of additional features and upgrades in the future. Best practices are to check the equipment manufacturers' website to see if they have real-world power loads and capacities available. See Appendix A for a listing of power calculator tools available from Cisco, Dell, HP, IBM and Sun.

Appendix A

Power Calculation Tools
Cisco
http://tools.cisco.com/cpc/
Dell
http://www.dell.com/calc
Hewlett Packard
http://www.hp.com/go/bladesystem/powercalculator
IBM
http://www.ibm.com/systems/bladecenter/powerconfig
Sun
Power Calculators are available but not in one centralized location. At www.sun.com use their search feature and query for "Power Calculator"

The Dell Web based tool on above site is informative.

Energy efficiency is not just a problem of power (kWh), not just a problem of cooling (BTUs), not just a problem of performance (MIPS) and not just a data center issue — it's all of the above. It is your ultimate challenge. We believe it's time to confront all of these issues all together. To get started, use Dell's Data Center Capacity Planner to better understand your "Green print."

Web Version

Green IT Survey by Net App India

EFYTimes.com has an article about Green IT survey by Net App India.

Monday, May 26, 2008:  According to a new survey by NetApp, a majority of companies believe that the power utilities should provide an incentive on net savings achieved on power consumption in data centres. Delhi based companies see this as most important, with 77 per cent of respondents wanting 10 per cent or more of the power consumption savings as incentives; Mumbai follows with 66 per cent respondents wanting this incentive; followed by Bengaluru with 62 per cent.

Reduction in energy costs is the key driver of Green IT for 36 per cent of all respondents, according to the finding, and 25 per cent believe that simplification of IT infrastructure is the key driver, while environmental concerns top the list for only 23 per cent of respondents. And, 11 per cent of the respondents gave priority to savings in real estate requirements (to host IT assets at a data centre) as the key driver of Green IT.


The 'Green IT' survey conducted in India also finds 40 per cent respondents believe that server consolidation can significantly reduce power consumption in data centres, while 27 per cent believe that storage efficiency can curtail data centre power consumption. Thirty-two per cent of respondents who recommend server consolidation also believe storage efficiency can have a significant impact on power consumption.


Around 28 per cent of the respondents admit that they have not yet measured power, cooling and space costs in their data centres, whereas 19 per cent say that power, cooling and space eats up over 20 per cent of their IT budgets. Twenty-six per cent put this figure at 10-20 per cent of the IT budget, while 22 per cent respondents put it at 5-10 per cent.

Christian Belady's Article on Annual Amortized Costs in the Data Center for a 1U server

I've seen this graphic many times in presentations, and I wanted more background on it.

image

The original article is here. With the details behind Christian's calculations.

In a recent article, the 3-year Energy Cost to Acquisition Cost ratio (EAC) [3] was introduced as a metric to understand the cost of energy relative to the cost of the server. Today, for 1U servers this is approaching unity and comes as a surprise to most data center managers. To convince the reader, it is a simple calculation to determine the energy cost of the server:

3-yr Energy Use Cost = 3 yrs x (8760 hrs/yr) x ($0.10/kWhr) x (Server Power in kW) x PUE (1) where PUE is the Power Usage Effectiveness [3] or the Data Center Electrical Load over the IT Electrical Load. For a well managed data center this value is usually about 2.0 (or less), which implies that for every Watt of server power, an additional Watt is consumed by the chillers, UPSs, air handlers, pumps, etc. Indications are that for some data centers this value can be as high as 3.0 [4] and in some cases higher. Usually, this variation is completely due to how well the cooling environment is designed in the data center and has a direct relationship to the energy cost [5].

Using equation (1) for a 1U server (which, when fully configured, costs about $4,000 and consumes about 500 W) and a PUE of 2.0 results in a cost of energy of $2,628. This is almost as much as the server itself, but the reality is that in many cases the cost is much higher. In Japan, energy costs are twice as much, so this number would be double. To make matters worse, in data centers where the cooling design is poor (PUE = 3.0, for example), the cost of energy would be 50% higher.

This means that the energy cost would be $3,942 in the U.S. and $7,884 in Japan. Clearly, there can be huge savings in this energy cost by focusing on optimizing the cooling in the data center as shown in the articles identified earlier [3,5].

Unfortunately, the energy usage is not the only cost driver that scales with power. In 2005, fundamental research [6] was published showing that the infrastructure cost is a big portion of the TCO and quantified the real cost drivers in the data center, which included the amortized cost of the power and cooling infrastructure. This research shows that a fundamental problem is the over-provisioning of cooling due to poor cooling and the lack of understanding of the environment. In addition, The Uptime Institute has also introduced a simplified way for estimating the cost of data center infrastructure [7] based on Tier ratings. For brevity, only Tier IV data centers (with dual redundant power throughout) will be examined since this is the recommended approach for mission critical operations. The Uptime Institute’s Infrastructure Cost (IC) equation for a Tier IV data center is as follows:

IC = Total Power x ($22,000/kW of UPS output for IT) + ($2370/m2 of allocated raised floor for IT) (2)

While, admittedly, the authors state that there is a large error band around this equation, it is very useful in capturing the magnitude of infrastructure cost. In fact, it is this author’s contention that this equation could be fine tuned for more accuracy using PUE because poor cooling will mean that more infrastructure will be needed.

However, that discussion is beyond the scope of this paper. Again, looking at the 500 watts of power consumed by the 1U server and using equation (2) and ignoring the IT space the server occupies, the cost of infrastructure to support that server would be enormous at $11,000. The reality is that this cost would be amortized over 10 to 15 years so real annual cost of the infrastructure is $1,100 per year. For the 3-year life of the server, this equates to $3,300 or again close to the cost of the server. Note that there is also an adjustment in the cost as a result of the space occupied by the server, but its calculation is beyond the scope of this discussion.

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