IBM sells x86 Server business, and doubles capacity of Softlayer Cloud - Sounds like a Good Swap

There is all kinds of news on IBM selling its x86 Server business to Lenovo.

 

Lenovo to Buy IBM Low-End Server Business for $2.3 Billion

Chinese Computer Maker Aims to Expand Corporate-Client Business Beyond Office PCs

Updated Jan. 23, 2014 8:13 a.m. ET
 
The press release is here.  And there is not a single mention of Softlayer who in theory would be using IBM x86 Servers.
 
On Jan 17, 2014 IBM announced it would spend $1.2 bil to double its Softlayer Cloud capacity and word server does not show up.

IBM Commits $1.2 Billion to Expand Global Cloud Footprint

Builds a Massive Network of Local Cloud Hubs for Businesses Worldwide with 40 Data Centers Across Five Continents

ARMONK, N.Y. - 17 Jan 2014: IBM (NYSE: IBM) today announced plans to commit  over $1.2 billion to significantly expand its global cloud footprint. This investment includes a network of cloud centers designed to bring clients greater flexibility, transparency and control over how they manage their data, run their business and deploy their IT operations locally in the cloud. 

I once asked a Softlayer person if they have started running IBM servers in their Cloud environment.  His answer surprised me.  No.  We can’t run the IBM Servers.  We have fine tuned our automation to work with a particular BIOS we control and make sure is on all servers.
Check the this picture of IBM Softlayer CEO Lance Crosby.  Notice how he is back of the server rack and not in front of the servers.  I know the server vendor, but it is not appropriate to share and who knows if they have changed since I talked to the Softlayer person last summer.
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Wonder if the IBM folks got a wake-up call when they realized they couldn’t use their own servers in their cloud environment without making a lot of changes to accommodate the Softlayer BIOS and probably break a huge amount of other management tools.
 
 

Can Facebook develop the antibodies to protect its Business? 80% user loss assumes no

There is a huge amount of news on Facebook losing up to 80% of its user base by 2017.

Study: Facebook to Lose 80 Percent of Users, Become the Next MySpace

PC Magazine - ‎3 hours ago‎
Just like an infectious disease, social networks can spread rapidly, gaining millions of users in a short amount of time, and then abruptly die off. It happened to MySpace, and Facebook could be next, according to a new study from Princeton University.
 

Facebook Is About to Lose 80% of Its Users, Study Says

TIME - ‎Jan 21, 2014‎
Basically, Facebook users will lose interest in Facebook over time as their peers lose interest — if the model is correct. ”Ideas, like diseases, have been shown to spread infectiously between people before eventually dying out, and have been successfully ...
 

Facebook like an infectious disease, will lose 80 percent of users, says Princeton ...

NBCNews.com - ‎7 hours ago‎
Don't worry, like a viral outbreak, Facebook use will explode before plummeting down to Myspace levels of obscurity, says a new study from Princeton University. Using epidemiological models used to study the rapid spread of disease, the researchers found ...
 

Is Facebook like a spreading disease that's about to fade away? Princeton study ...

MarketWatch (blog) - ‎4 hours ago‎
Facebook could end up shedding a big chunk of its 2 billion users in three years, says a Princeton University study that cited 'disease-like dynamics' in the social network's upcoming doom. The study, by two Princeton PhD candidates Joshua Spechler and ...
 

Facebook Doomsday: Princeton researchers predict 80 percent users will quit by ...

Tech Times - ‎12 minutes ago‎
(Photo : Tech Times) The latest study from Princeton using epidemiological models reveal that the popularity of Facebook has begun to wane, and may see a dramatic 80 percent drop in peak user base between 2015 and 2017. These models were validated ...

There are a couple of points I want to make.  I think most people didn’t go through the whole document.  If they did they would have seen some nice graphics

The Facebook user projections.

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Current Facebook traffic vs. Myspace.

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When you look at decline linear progression of MySpace decline it seems like Facebook should follow the same slow decline vs. the bell curve shape.

This is all theoretical.  I would assume Facebook figures out the antibodies to protect its business and keep users.  The size of Facebook is much bigger than MySpace so it kind of like saying that the behavior of rabbits  can represent the behavior of bears.  Don’t think so.

Honestly, a Startup is surprised at its failure because it couldn't crack the business model?

I read this GigaOm post on a startup shutting its doors.

Chris “moot” Poole pens an honest goodbye to his failed startup, DrawQuest

 

2 HOURS AGO

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ChrisPoole20121
SUMMARY:

Chris Poole’s big post-4chan startup, DrawQuest, is shutting down, and his fair, graceful blog post should be required reading for all startup CEOs.

After four years and one big strategy shift, Christopher “moot” Poole’s big venture after 4Chan, DrawQuest, is shuttering its doors. Poole honestly detailed the experience in a blog post on the matter, which discusses the failure that came despite a relatively healthy community that the “draw a day” app created:

What was funny is the founder made this point.

“It may seem surprising that a seemingly successful product could fail, but it happens all the time,” Pool said. “Although we arguably found product/market fit, we couldn’t quite crack the business side of things.”

Here is a post on advice to startups that focuses on the business model with a nice explanation of the equation to solve.  If you don’t have a business model that works then you will no survive and your product is not successful in the eyes of the business owners.

The Essence of a Business Model

As outlined in the Business Models introduction, a simple way to focus on what matters in your business model is look at these two questions:

  • Can you find a scalable way to acquire customers
  • Can you then monetize those customers at a significantly higher level than your cost of acquisition

Thinking about things in such simple terms can be very helpful. I have also developed two “rules” around the business model, which are less hard and fast “rules, but more guidelines. These are outlined below:

Luckily I figured out the business model problem 5 years ago and have told my business partners that the #1 thing we will do is be innovative in developing business models.  We will do business different than others and then fit the technology.  

Google adds another 59MW of Wind Power in 2015 in Sweden to support future expansion in Hamina, Finland Data Center

Google announced a Swedish wind power project to support its Finland Data Center growth.

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More Swedish wind power for Google’s Finnish data center

 

Google buys 10 years of renewable energy in deal with Nordic wind farm developer Eolus Vind AB, financing construction of four new wind farms.

 

Stockholm, January 22, 2014 - Google and Eolus Vind AB, a leading Nordic wind farm developer and operator, today announced that Google will buy the entire electricity output of 4 new wind farms, to be built in 4 municipalities in southern Sweden, for a period of ten years, starting early 2015.  The new power purchase agreement (PPA) is Google’s second such agreement in Sweden in less than 12 months, and sixth agreement globally to procure renewable energy for its data centers.

 

The deal will provide Google’s Hamina, Finland, data center with additional renewable energy as the facility expands in coming years. This cross-border arrangement is possible thanks to Europe’s increasingly integrated energy market - and in particular, Scandinavia’s Nord Pool market - which allows Google to buy renewable energy with Guarantee of Origin certification in Sweden, and consume an equivalent amount of power elsewhere in Europe.  


The press has picked this up as well. When you combine Google with Renewable Energy the press coverage is better than most.

 

Eolus to Establish Wind Farms That Will Supply Google's Finnish Data Center ...

Wall Street Journal - ‎6 hours ago‎
HASSLEHOLM, Sweden, Jan. 22, 2014 (GLOBE NEWSWIRE) -- Eolus Vind AB and Google have signed a ten year agreement in which Google will buy all electricity generated by 29 wind turbines that Eolus establishes in four wind farms in southern Sweden.
 

 

Google locks in four new Swedish wind farms for Finnish datacentre

ZDNet - ‎2 hours ago‎
The deal with Nordic operator Eolus is the second 'purchase power agreement' (PPA) Google has made in Sweden to indirectly supply power to its datacentre, more than 1,000km away in Hamina, Finland. The Finnish facility is currently undergoing a €450m ...
 

 

Google seals second Swedish wind farm deal

Financial Times - ‎7 hours ago‎
Google has made its third bet on green energy in the space of three months, with a deal to buy all the electricity generated by four Swedish wind farms for 10 years. The transaction is similar to one that the technology group sealed seven months ago with ...
 

 

Google to buy more wind power for Finnish data center

GigaOM - ‎46 minutes ago‎
The additional wind power comes on top of what Google announced last year, that it planned to buy wind power from one large (72 MW) wind farm in Northern Sweden, to be built and operated by Swedish wind farm developer O2 in 2015. The new wind ...
 

 

Google Logging In To Swedish Wind Farms

North American Windpower - ‎2 hours ago‎
Google has signed a 10-year agreement with Swedish developer Eolus Vind AB to buy all of the electricity generated by four wind farms under development in southern Sweden. Eolus says the projects will supply the internet company's Finish data center with ...


Is competing to be #1 more important than making friends? Not in our family

This weekend was the first slalom race for the kids.  I am proud of the kids.  I don’t know about you but when I was in grade school I don’t think I could get in the starting gate for a slalom race in front of lots of people.

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I found this post on Parents who ruin sports for their kids by obsessing about winning.  One point made which I think many times is true is...

Parents think they want success for their kids but in many ways they want if for themselves.  Their kids, it turns out, want pizza.

But this statement isn’t quite true for my kids as they really don’t like pizza that much even though I have a pizza oven. :-)  We do want success for the kids and their is more to sports than winning.

By focusing too heavily on winning not only do we parents fail to focus on what is important, but far worse, we refute what is important. We lose sight of sports as a vehicle for learning and, instead, convert it into a means for parents to live out their own athletic dreams or take a gamble on the unlikely event that sports will pave a road into college. I would argue that athletic competitions offer one of the very best venues for learning some of life’s most important lessons.  But these lessons don’t require victories, and in fact many, like some of the following, are best taught in defeat:

What is sad is to see some of the kids talking to their team members asking what their time was.  No statement "great race.  You did well."  Just "what was your time?” Thinking I know I beat you. I want to hear your time.   Most of the parents don’t bother asking the kids or parents what time the others had they just go to the live timing site and look up their kids time vs. others.  http://live-timing.com/races.php.  I’ve heard some people say it is fun to look up the times.  No it is not fun to look up the time of your child vs. others.  It is an addiction to think you are better because your kid beats another.

My son isn’t the top in the group.  He is ecstatic to be make it into the top 10.  What I did notice though when I recorded some videos is what happened to many other kids racing vs. mine.  When my son enters the starting gate you can hear girls and boys same age and up to 4 years older calling his name.  Below is the video of my son starting.  The best part is hearing the kids cheer him on.

There are others who get to the starting gate and there is not a single person calling out their name.  Why? Others on the team don't know the person.  Those in their age group have raced down the hill ahead of them and are at the bottom of the hill or they are behind them in line waiting their turn.  The kids watching are the kids who have already made their run and came back up to cheer on their team mates or the others who have to wait a while before their turn.  Oh and many of those kids who don’t hear the words of support are the same kids who are focused on being #1.  The time they get is what is important.  Thanks Mom for making the priority to have the best time.

My son has the talent and focus to make friends.  He knows their names.  Cheers them on.  Says good things about their racing.  Eats lunch with them and hangs out playing games.  Not to beat them, but to be social and have fun.  Is it fun to race with your friends and cheer their victory or is it fun to look at the scoreboard and know your child beat another due to their competitive obsession, best gear, best training, and hope others miss a gate who might have beat you?

My daughter has the same talent, but her little brother has the bigger cheer section.  Which creates a different competition on who is more social of the siblings. :-)

This kind of reminds of what goes in many companies with overly competitive employees who think being #1 in performance is the most important thing to focus on, caring little if they get along with others and work as a team.