@seekingalpha Dozens of @Intel #datacenter architecture patent applications were just published. The architecture is centered on disaggregated processor, memory and storage, all connected by #photonics. This information is new to the Internet (zero hits on Google).
If you still need a reason to buy Intel (INTC), this is it. For the past decade, the data center industry has been focusing on reinventing itself as The Cloud - a convenient, scalable, as-a-service design which allows the end-users to focus on their product instead of the countless other worries that were historically bundled behind-the-scenes with successful software (the "apps" as we affectionately know them today).  For reference, pictured above is one of Google's (GOOG) (NASDAQ:GOOGL) first data centers, located at Stanford University back in the 1990s B.B. (Before Beiber). At that time, if you wanted to publish an app (like Google.com), you had to worry about a myriad of things. Geography - where would your servers be located and how much latency would that cost? Even today, it costs me a quarter of a second to get to the other side of the planet and back. Back then, it was more. Staffing - if you hire one important person, you need to hire a second one so that they may share vacations, bathroom breaks and, hopefully, sick days. This hinges on geography as you will typically pay a huge multiplier to locate your data center in a high-demand area (e.g. - Silicon Valley). HR and background checks and training - oh my! Hardware - it used to be that you could just buy IBM (IBM) and Cisco (CSCO) gear and get used to paying the enormous maintenance fees. If there was a failure, you'd have a part within a few hours. Availability Planning - what happens if your customer base doubles next week? What happens if the power goes out for a week? What happens when some yokel in a backhoe digs up your Internet connection? Better reserve some extra space in the data center for expansion, secure a fuel contract for a couple weeks worth of fuel for the backup power generators, and get multiple geographically-diverse Internet connections. Regulatory Compliance - If I want to sell my app into regulated industries, then the compliance trickles down and now I need to think about Hungry Hungry HIPAA, SEC, FINRA, SOC2, SSAE18 and much, much more. The list goes on. When the software developers at Pinterest turned loose their app unto the world, they didn't worry about any of this stuff - they just put it on Amazon (AMZN) AWS for next to nothing with the understanding that they'd need to pay a small premium to Amazon if their product became successful. This allowed them to grow 10-fold in just months, as outlined by this 2012 article. At that time, they were just a handful of employees sitting on top of infrastructure which was fielding 650,000 requests per second. This was the point where those in the industry understood the power of The Cloud - it was clear that the cloud economies of scale would quickly dwarf those at all but the largest of businesses.
No comments:
Post a Comment