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Open Source Commentary from Navica's CEO, Bernard Golden

April 2007

In This Issue

  • The New Economics of IT, Part II

  • Navica News

The New Economics of IT, Part II

Last month’s newsletter, you’ll remember, focused on the factors wrenching the old economics of IT: expensive hardware, complex (and expensive) software, and organizational talent devoted to tweaking the software infrastructure in order to get the last drop of performance wrung out of it. All based on an assumption that the underlying capabilities of the hardware and software components are inadequate to meet IT’s functionality requirements; therefore, endless tinkering is a fundamental requirement. In essence, this assumption is that your IT infrastructure is like a Ferrari: designed for maximum performance, staggeringly expensive, and always in the shop for repairs.

As the newsletter noted, this assumption is all wrong for today’s economics of IT. Unlike the past, today’s hardware performance is incredible. In fact, we have too much performance. Most data centers are stuffed with horsepower-laden servers operating at less than 10% of capacity. Consequently, operating a software infrastructure designed to wring every ounce of performance out of puny hardware makes as little sense as using a Ferrari to ferry groceries home from the grocery story. Most of us make do with more different transportation for this purpose: a practical sedan, a very practical truck, or an ultra-practical minivan. The metaphor I used last month was that we are treating our infrastructure like a thoroughbred, when we should be thinking about it as a draft horse.

If you start thinking about your infrastructure like a draft horse, or a minivan, you change your perspective completely. Best-of-breed goes out the window; instead, you seek out best value for money. You no longer assume a high performance infrastructure; instead you seek out commodity hardware. And, crucially, you avoid complex software solutions that require complicated configuration and integration. You insist on straightforward, self-contained infrastructure components that integrate via standards-based mechanisms.

What is the order of battle for the new economics of IT?

First, commodity hardware. Many companies are already doing that with respect to their servers. However, look to other categories for their commodity equivalents, e.g., commodity network switches, etc.. You should pay a category leader tax only when you need the category leader. Otherwise, you’re overpaying for what you need. Admit it, you’re feeling queasy right about now, aren’t you? You’ve delighted in jettisoning your Sparc servers in favor of x86 boxes. But, take away my Cisco in favor of 3com (or, to really drive home the comparison, Linksys)? Take a hint from Google. You’re not buying a durable, you’re buying a disposable. If you ever outgrow your hardware, throw it away and start again. If you need to dump your minivan for a Ferrari, go ahead. But don’t buy a Ferrari today because you might someday get a call to run at Monaco.

Second, inelegant software solutions. Admit it, now you’re really queasy, right? Thinking about doing something inelegant stresses every nerve in your body. I mean, we’ve grown up with complex designs, five year roadmaps, elaborate architectures, all done – of course! – in the name of busting a gut to distribute pesky bits over a rickety infrastructure. Well, if you don’t like the term inelegant, how about a more acceptable euphemism: simple. Insist on standards-based integration. Things like Web services. And XML. Both get criticized for poor performance, as though poor performance means anything. In a world of commodity, disposable hardware, it’s easier to add more metal for performance than it is to optimize complex software. And believe me, it’s easier to deal with a sales rep from Ingram Micro than it is to deal with the one guy in your shop who understands the hairball he put together to string together two proprietary interfaces.

Third, issue different marching orders to your staff. Stop taking elegant solutions from them. Insist on simple building blocks that can have stuff replaced within the infrastructure, not complex integrated stuff that requires a wholesale rip-and-replace to change anything. Every time you let someone fall in love with his (or her) creation, you’re signing up for a lifetime re-enlistment. The approved term for this kind of deliberate design is enterprise architecture. Make sure your staff creates one and that it’s layered, uses clean, standard interfaces, and incorporates only easily replaceable components.

Fourth, just say no to proprietary sales reps. They dream up reasons why you need to buy their latest and greatest. And then you’re locked into their framework, their roadmap, their need to meet quarterly estimates, their agenda. Just look at Vista. Companies are having to develop three-year strategic plans to deal with an OS upgrade – an upgrade that delivers no discernable end user value, but does deliver more ability for Microsoft to integrate Vista with a lot of other Microsoft server products, that they’ll then try and sell you on the basis of “works best with Vista,” which “you’ve already invested in.” It’s never-ending.

Fifth, open source. This doesn’t mean occasionally considering it. And it definitely doesn’t mean evaluating it by the standards of how you’ve done things with proprietary software. I’m amazed at some of the comments I get to my blog postings on CIO. People criticize open source because it doesn’t “deliver business value.” What they typically mean is that they’re used to letting the vendor do their job of deciding what their infrastructure should look like, then providing them a roadmap of their infrastructure development plans, and then pre-integrating the solution with the vendor’s favored software partners. So, naturally, when you look at open source, it fails to do that. No open source vendor is going to do a dog-and-pony show and then build your proof-of-concept to get you committed to their solution. Instead of asserting that open source doesn’t deliver business value, run an experiment. Find out for yourself what the costs of doing open source are. And besides, as open source economics eats away at the margins of proprietary vendors, they’re going to start looking more like open source vendors. They’ll do less of the legwork for you. So get used to thinking for yourself.

Sixth, reinvent your staff skill sets. If you’re going to need to be more self-reliant, get ready. Bring more real technical talent in the door. And, if you don’t want to do that, hire some outside expertise. But be careful. Most system integrators have grown fat and happy in the proprietary world. They’ll be the first to tell you that open source is a great vision, but the reality is that “you need to rely on the established vendors.” They’re just afraid for their business model. Unisys and CapGemini have established open source practices. See what they have to say.

Seven, reinvest your savings in doing something new. Experiment. You will save money with the above six items. Take the savings and do some new things. This is critical. When the economic realities of a situation change, it offers new opportunities for those that grasp them. You have to go for it. Otherwise, you’ll be stuck endlessly optimizing a complex, inferior infrastructure. If computing is cheap, then it’s possible to invent new business offerings that take advantage of cheap computing. If you can’t find something better to do with the millions you’ll save by saying no to Vista, you deserve to be fired.

The old joke is there are three types of people: those who make something happen, those who observe something has happened, and those who say “what happened?” I’ll add a fourth type, those who insist nothing can happen because it’s too difficult to get started. In today’s economy, this latter type is an endangered species with poor life expectancy.

Navica News

You can hear me speak at these upcoming events:

May 10, 10:00 a.m.: "Open Source Virtualization: Creating an Action Plan", Red Hat Summit, San Diego, CA

If you are interested in having me speak at your organization:

Contact me directly via email.

 


 
 

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