Facebook has posted the following Data Center Energy Efficiency Tour.
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Facebook has posted the following Data Center Energy Efficiency Tour.
Andy Bechtolstheim presented at GigaOm and discussed a bunch of cool topics for the data center crowd. I am going to cheat and refer to Barb Darrow's notes as I was sitting next to her during the presentation and why type when I can copy the good stuff. :-) I saw Andy a few weeks ago in NYC at the Open Compute and was curious what he would say at GigaOm Roadmap.
Bechtolsheim: AWS, open source rewrite rules for startups
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Today’s tech entrepreneurs would be out of their minds to build out their own data centers rather than renting capacity from Amazon or another low-cost provider.
That wasn’t a direct quote, but it’s pretty much the takeaway from Andy Bechtolsheim, the co-founder of Arista Networks(and also of Sun
Andy made the point people would be nuts to build their own data centers.
A company might build out its own infrastructure only if it’s raised a lot of venture capital, he said. But it needs to be a lot. And even then, maybe AWS is a better way. “Netflix … uses Amazon for infrastructure. Here’s the leading, largest company in a field deciding it’s cheaper and more efficient to use a competitor for infrastructure rather than building its own.”
Andy mentioned the Open Compute Project.
Bechtolsheim is also on the board of the new Open Compute Foundation, formed by Facebook to propagate specs for standard, energy-efficient data center infrastructure. OCF hopes to bring open-source innovation that so improved software tools into the hardware realm.
For those brave souls wanting to build data centers, the OCF blueprint could help. But, Bechtolsheim said, that’s for truly big companies that need to do huge webscale computing, not for startups.
Bottom Line.
For nearly every entrepreneur weighing a tech startup, it’s better to rent than to buy or build.
The full presentation is here.
For those of you Open Compute Project fans that Facebook has hosted in Palo Alto and NYC. The following are the subscriber lists you can get updates on the latest discussions.
Hacking Conventional Computing Infrastructure
We started a project at Facebook a little over a year ago with a pretty big goal: to build one of the most efficient computing infrastructures at the lowest possible cost. We decided to honor our hacker roots and challenge convention by custom designing and building our software, servers and data centers from the ground up – and then share these technologies as they evolve.
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James Hamilton presented at the Open Compute Summit hosted by Facebook in NYC. His slides are on line.




What few know is one of the biggest factors that influences data center locations for the the Web2.0 companies is their tax bills. Washington Post publishes an AP article about Facebook and the State of Oregon.
After luring Facebook data center, Oregon pokes social media giant with confusion over taxes
By Associated Press, Published: October 31
SALEM, Ore. — The promise of lucrative tax breaks helped persuade Facebook to build a data center in one of Oregon’s most economically depressed counties. Now, the state and the company are in a dispute over how much Facebook may owe in property taxes, and the social networking giant fears it could be taxed on intangible assets like the value of its powerful brand.
It is interesting how Facebook's industry classification potentially influences its future tax bill.
Oregon lumps Facebook with 75 other corporations classified as cable and Internet companies. Many of them are television and Internet access providers, but the list includes technology companies including Google, Microsoft, Yahoo Inc. and AOL Inc.
State officials say their decision doesn’t change Facebook’s tax bill — about $26,000 this year — and the money still goes to local governments in Crook County. But Facebook is concerned that the state will someday try to tax the company based on the value of its intangible assets, perhaps including computer files, patents, its labor force and goodwill.