1.5% sales tax savings, Apple's Remote Data Center Receiving Opportunity

GigaOm’s Katie Fehrenbacher went more in depth on Apple’s Reno Data Center than I did.

Apple makes progress on its solar-powered data center in Reno, but (of course) it’s controversial

 

18 MINS AGO

No Comments

Apple's solar farm next to its data center in Maiden, North Carolina
SUMMARY:

Apple’s Reno data center is already underway, but not surprisingly it’s a bit controversial: Apple has a deal for an 85 percent reduction on its property taxes.

In Katie’s post she points to another article about the receiving operations that is behind schedule. On page 2 of the article is an extra 1.5% sales tax savings.

Key to the sales tax break, however, is the ability to ship the computer equipment to a storefront inside a tourism improvement district. Under Nevada law, state officials can exempt a company from all but 2 percent of its 7.5 percent sales tax obligation. But if Apple opens a receiving center within such a district, it can whittle that remaining 2 percent down to 0.5 percent.

Let’s do simple math and just assume there is $15 million of capital equipment to be put in the 2.5 MW $15 million data center.  So the tax savings is $225,000 for this phase.  Is it worth it to build a receiving building, unload the material from a truck, unpack it, and put it back on a truck, ship it to the data center, unload it again, audit the material.  Doesn’t seem like it would be.  If Apple bought $1 billion of gear the tax savings is $15 million, but Apple needs to build the receiving operations, staff it, and run an extra processing step.  The numbers don’t make sense when you get into the details.

“They need it to work for them and their bottom line, and they’re struggling to make that pencil.”

...

“Owning or leasing a building, staffing the building, making sure the building is secure, paying for the operating costs and paying to transfer the equipment back and forth, and you’re starting to spend some money,” Hill said.

Disclosure:  I do part time freelance work for GigaOm Research.

We'll see if people innovate the use of Robotics in Data Centers

3 years ago I started researching the use of robotics in data centers when someone asked what will change the way data centers are built and operate.  I put this post up back in June 2011 on a robotics expert I saw who was using robotics in interesting scenarios.

President Obama’s media event was fluffy with little technical content.  Especially compared to the hour I spent on the same day listening to Hugh Durrant-Whyte, CEO of NICTA, ex research director at Australia’s robotics efforts.

Hugh Durrant-Whyte 

Research Director 
Professor of Mechatronic Engineering, Appointed 1995

At the Australian Centre for Field Robotics, USYD

My research focuses on two main areas; navigation of autonomous vehicles and senor data fusion. 
In navigation I pioneered the application of Kalman filter and target-tracking methods to the problem of robot localisation. This has had substantial impact in robotics; Many operational mobile robots now use these methods for localisation. I also introduced the revolutionary Simultaneous Localisation and Mapping (SLAM) method. Interest in SLAM is now exploding. My research work is now focused on general probabilistic SLAM problems appropriate to very unstructured, outdoor and underwater, environments.

DatacenterKnowledge has a guest post on the subject of robotics in the data center.  This is the first of three part series.

This week Data Center Knowledge presents a three-part series on data center automation and the potential role of robotics.


I’ll see if the end comes to the same design conclusions I came at how data centers could be changed.

Apple's 1 billion Reno Data Center has 1/66th built, $14.85 mil tax assessment

The media was all over Apple’s $1 bil data center in Reno.

Apple’s largest project in the area, however, is its new $1 billion iCloud data center that includes both a large, rural parcel of land within the nearby Reno Technology Park and plans to build new supporting facilities on the edge of downtown.

I don’t know about you, but my friends had a good laugh at speculation that Apple was building 1 billion worth of data centers in Reno.

Well here is a progress based on RGJ reporting on the tax benefits of the Reno data center.

Meanwhile, the data center is projected to generate more than $142,000 in property taxes for the 2013-14 fiscal year, according to the Department of Taxation. The amount is generated from a total taxable value of $14.85 million based on Washoe County Assessor data.

This construction cost fits with a 2.5 MW data center build.

Today, thanks to its high-profile tenant, the Reno Technology Park is starting to take shape. Earlier this summer, Apple completed its first phase — a 20,000-square-foot, 2.5-megawatt data center.

That is the wonderful power of the Apple brand.  Who else could get the amount of press coverage for a 2.5 MW, $15 mil data center building.  If you say this is the first of four phases, Reno could be 10MW and $60 Mil.  If this is one tenth, then you get 25MW and $150mil.  To get to $1Bil data center you need to multiple this first building by 66.

Wouldn't it be great if IT Services behaved like well mannered house guests, respect the territorial boundaries

The holiday season is a time of travel.  Which means either you are the guest at someone’s house or you are the host of guests.  Benjamin Franklin’s cited as the originator of the classic quote, and here is an article that build on the concept in Psychology Today.

Benjamin Franklin famously said that guests, like fish, begin tosmell after three days. Many of us are inclined to agree. I myself recently struggled to share my space and resources with a houseguest. I wanted to be hospitable yet I experienced an unexpectedly inhospitable reaction to my mackerel-like guest (herein known as “Mack”).  The dissonance was intense. What was up with that? Fortunately, my psychology arsenal includes tools from the psychology subdiscipline ofenvironmental psychology. It is there we find theories and research on human territoriality that explain the trouble with houseguests (at least some of it!). 

What comes to mind though is wouldn’t life be better if IT services behaved like well mannered house guests and respect the territorial boundaries of the host.

How many of you are frustrated when new IT service change your routine?

Houseguests then, are stressful to the extent that they disrupt our routines and usurp the high amount of control we normally enjoy in this personal territory. If their routines interfere with ours or if their presence restricts our normal uses of home spaces, stress is likely. 

Unfortunately new IT services don’t leave like a house guest, so their habits now influence yours.

How many of you think some of the IT services that come in leave a bad smell in your clean operations?

Of course, territoriality isn’t the whole picture. Among other things, increased household labor also makes guests “smelly” (often more of an issue for women in traditionally gendered households where they bear the brunt of cooking and cleaning). The moral of this story: if you want to stay a welcome houseguest, it probably pays to respect your host’s home as a primary territory, and to keep your visit short.

Danger, Yahoo Mail is having the T-Mobile Sidekick Experience that sunk the service

If you hang around the hot things in the technology it is easy to believe that email is dead.  I don’t know about you, but e-mail is part of how I communicate.  Many young people have dropped their e-mail accounts as their friends use social media.  Yahoo is finding out how important mail is with days of outages that appear there is no end in sight.

This event has the possibility of being as big a disaster as Microsoft’s Danger T-Mobile sidekick outage/data loss that caused users to drop the service.

October 2009 data loss[edit]

In early October 2009, a server malfunction or technician error at Danger's data centers resulted in the loss of all Sidekick user data. As Sidekicks store users' data on Danger's servers—versus using local storage—users lost contact directories, calendars, photos, and all other media not locally backed up. Local backup could be accomplished through an app ($9.99 USD) which synchronized contacts, calendar, and tasks, but not notes, between the web and a local Windows PC. In an October 10 letter to subscribers, Microsoft expressed its doubt that any data would be recovered.[6]

The customer's data that was lost was being hosted in Microsoft's data centers at the time.[7] Some media reports have suggested that Microsoft hired Hitachi to perform an upgrade to its storage area network(SAN), when something went wrong, resulting in data destruction.[8] Microsoft did not have an active backup of the data and it had to be restored from a month-old copy of the server data, totalling 800GB in size, from offsite backup tapes. The entire restoration of data took over 2 months for customer data and full functionality to be restored.[9]

The Danger/Sidekick episode is one in a series of cloud computing mishaps that have raised questions about the reliability of such offerings.[10]

When you look at what is one of the causes of a major outage you will eventually trace to operations.  The initial Yahoo mail outage was caused be a hardware failure.  Marissa Mayer has posted the latest as of 5p today.

The initial failure was in a storage system.

On Monday, December 9th at 10:27 p.m. PT, our network operating center alerted the Mail engineering team to a specific hardware outage in one of our storage systems serving 1% of our users. The Mail team immediately started working with the storage engineers to restore access and move to our back-up systems, estimating that full recovery would be complete by 1:30 p.m. PT on Tuesday.

So, Yahoo fixes the problem, but restoring service is not simple as users are affected in a wide range.

However, the problem was a particularly rare one, and the resolution for the affected accounts was nuanced since different users were impacted in different ways. Some of the affected users were unable to access their accounts, instead seeing an outdated “scheduled maintenance” page which was a confusing and incorrect message (this has since been corrected and updated). Further, messages sent to those accounts during this time were not delivered, but held in a queue.

Now the service is running unless you use IMAP.  What is IMAP?  It is the way many mail clients mobile and desktop download mail, but it is not as easy as POP.

While IMAP remedies many of the shortcomings of POP, this inherently introduces additional complexity. Much of this complexity (e.g. multiple clients accessing the same mailbox at the same time) is compensated for by server-side workarounds such as Maildir or database backends.

The IMAP specification has been criticised for being insufficiently strict and allowing behaviours that effectively negate its usefulness. For instance, the specification states that each message stored on the server has a "unique id" to allow the clients to identify the messages they have already seen between sessions. However, the specification also allows these UIDs to be invalidated with no restrictions, practically defeating their purpose.[13]

Unless the mail storage and searching algorithms on the server are carefully implemented, a client can potentially consume large amounts of server resources when searching massive mailboxes.

Users don’t care about these details on IMAP.  Marissa closes her status with the following.  Will that make the users who don’t have mail through IMAP feel better?

Above all else, we’re going to be working hard on improvements to prevent issues like this in the future. While our overall uptime is well above 99.9%, even accounting for this incident, we really let you down this week.

We can, and we will, do better in the future.

It’s still not clear what is going to happen to those users email accessible through IMAP.