Public Computing Clouds Could Be More Secure That Private Ones

June 26, 2009

At the top of the list of corporate concerns about cloud computing is security.

But before long companies debating whether to migrate their applications into a hosted cloud may find public networks are safer than their own.

Not all private companies maintain the same discipline, says Suns Greg Papadopoulos

Not all private companies maintain the same discipline, says Sun's Greg Papadopoulos

Most public clouds are run in a more secure manner than the networks enterprises maintain on their own, says Sun Microsystems CTO Greg Papadopoulos.

Not all private companies maintain the same discipline, he said Thursday at the Structure 09 conference in San Francisco.

Cloud computing is among the most talked about trends in modern computing – especially today when its promise of lower costs turns heads in corporate suites. Many IT managers are said to be looking closely at moving applications into hosted clouds as they seek to free up technology budgets for new projects and hope to add flexibility to their computing infrastructures.

But the most significant drawback is security. Companies rightly fear that their important customer data could be compromised or stolen if it is hosted in a public cloud.

During a panel discussion at the conference, Papadopoulos turned that thinking on its ear.  The incentive for an employee at a public data center to rifle a company’s data is arguably less than an employee at the company itself, who knows its value, he said.

It could end up that public centers are the more compliant places to be, he said.

Papadoploulos’ thinking could be right. But it will take time for enterprise customers to swallow this counter intuitive pill.


Sun Will Become Part Of Oracle Because It Failed To Notice Subtle Change

June 13, 2009

Sun Microsystems has a storied past in the era of big-system computing. It was the “.” in dot com and the originator of the phrase the “network is the computer.”

Now it is to become part of Oracle and one reason is that it failed to react to subtle changes reshaping the industry, says former Executive Vice President of Global Sales Operations Masood Jabbar.

Masood Jabbar said he was deeply saddened by the Oracle deal

Masood Jabbar said he was deeply saddened by the Oracle deal

Oracle agreed to buy Sun in April after edging out rival suitor IBM, and on July 16 Sun shareholders will vote on whether to seal the deal.

“I’m deeply, deeply saddened by it because we built a great franchise,” Jabbar said on Saturday during an address at the OPENforum 2009 conference in Mountain View.

Jabbar said he remembers extraordinary times at Sun, such as renting out the Palace of Versailles in France to hold a costume party for his sales force. He boasts of flying Elton John to Hawaii to entertain his top performers.

People don’t know “how hard we played,” he said.

But while Sun worked hard, it didn’t excel when things change very slowly, he added. “That is the cancer in a company that people don’t detect, most people don’t see.”

These change took place both inside Sun and outside, where more powerful low-cost computers stole business from Sun’s high-end boxes.

Jabbar offered advice for tomorrow’s Suns:

First, be paranoid. Second, “when it ain’t broke, break it.” That way, you can fix it correctly, he said.

Third, “you must change before you have to change,” he said. And finally, pay attention to co-founder Bill Joy’s technology rule: innovation will occur and probably elsewhere.


Microsoft Testing A Fully Mobile Data Center

June 5, 2009

Data-center costs continue to act as a drag on corporate IT budgets.

Microsoft testing a free standing, fully modular data center, says Ray Ozzie

Microsoft testing a free standing, fully modular data center, says Ray Ozzie

Equipment costs, cooling, power – they all add up to deterrents for forms often rushing to get new facilities in place.

To ease the deployment and costs of data centers, several top computer shops have pioneered the concept of the mobile data center. This data center in a trailer concept has been actively promoted, for instance, by Sun Microsystems.

Microsoft, too, has been active, and on Thursday, the software giant said it is taking its efforts to the next step: a fully mobile, portable data center, right down to the power and cooling.

During an appearance Thursday at the Churchill Club in Palo Alto, Chief Software Architect Ray Ozzie said the company is testing its fourth generation center, which he described as free standing and entire modular.

Buy a piece of property and build a wall around it. Everything else can be carted in by trailer, says Ozzie: cooling, power, racks of thousands of PCs to get the facility to scale.

Microsoft’s third generation mobile data center is in deployment now, but isn’t quite as containerized.

“There will be data centers on every country on earth,” Ozzie says. And while Microsoft’s mobile units are for sale, the company is building the infrastructure for itself as well, says Ozzie.


Oracle Guns For Java, Sun’s Hardware Comes Along For The Ride

April 20, 2009

Oracle has never been afraid to remake the technology industry.

Almost a half a decade ago, it kicked off a major consolidation in the enterprise software market with its hostile bid for PeopleSoft.

Oracles merger with Sun is seen as a defensive bid to control Java

Oracle's merger with Sun is seen as a defensive bid to control Java

Now it is shifting the dynamics among software and hardware firms, melding its ever expanding database, middleware and applications empire to include Sun Microsystems’ server hardware. The company said it would buy Sun for $7.4 billion, or $5.6 billion after backing out Sun’s cash.

That will lead to awkward relations with Hewlett-Packard, a long-term partner, and other firms that make a business supplying hardware for Oracle’s software. IBM is already an intense rival, so the ties between the companies may not fray further.

But to focus on the conglomeration of hardware and software misses the point. Oracle bought Sun primarily for Java. The prospect of IBM buying Sun and controlling Java was too much for Larry Ellison and company. Oracle’s entire software stack is built on Java.

“We view this deal as a defensive maneuver on
Oracle’s part to keep Sun, a long time ally, out of the hands of IBM, a long time enemy,” says Cowen analyst Peter Goldmacher. “We are positive that Oracle never wanted to get into the hardware business, but when faced with the likelihood of IBM owning Sun’s Java assets and the company’s installed customer base, Oracle was forced to buy Sun.”

But all this raises an interesting question. Despite gaining Sun’s Java – and its other software assets including the Solaris OS and its open-source MySQL database – can Oracle make due with its lower margins of a hardware business?

“By promising to make Sun hardware ‘profitable,’ Oracle seems to be suggesting that growth in software alone is not sufficient and that consolidation should be extended,” says Miko Matsumura, deputy CTO at Software AG. “Instead of taking a fundamental open source approach which is primarily driven by services revenue anyway, Oracle is moving to a systems approach. This is not a terribly optimistic acquisition in my opinion.”


M&A Shoot Out Seen For The Datacenter

March 23, 2009

Three broad-shouldered tech titan have their sites on the datacenter.

They all have plenty of money in their pockets. And they all have plenty of desire to capitalize on the big changes coming to way corporations manage and store the tons of digital data they create.

Cisco, IBM and H-P have the datacenter in their sights

Cisco, IBM and H-P have the datacenter in their sights

So it is not hard to imagine a coming acquisitions binge as they try to out-position each other.

The heated battle went public last week when Cisco Systems announced its data center strategy and the introduced a blade server, taking it directly into the path of IBM and Hewlett-Packard.

Cisco, more so, raised $4 billion in February, which analysts believe it will use for mergers and buyouts to supplement the partnerships it is forging to strengthen its product portfolio.

It may not  be alone. IBM is said to be considering an acquisition of Sun Microsystems, with its tape storage and other datacenter businesses.

Meanwhile, H-P last year acquired integration and consulting firm EDS, dramatically increasing its capabilities in corporate technology services.

So, which companies are most likely on the block? According to UBS analyst Nikos Theodosopoulos, possible candidates include Juniper Networks, Brocade Communications Systems, Netapp,, Accenture, EMC, VMware and BMC Software.

Cisco could easily be the most aggressive.

However, “we view the convergence of storage and networking in the data center as at least two years away,” says Theodosopoulos, with the recession “the lack of confidence on unified standards pushing out this market.”


Cisco Hopes To Commoditize HP, Sun And IBM

March 16, 2009

Sun Microsystem’s famous proclamation that “the network is the computer” may be more true than ever.

And Cisco System may be the firm to prove it. Cisco announced on Monday its first foray into servers – unveiling an Intel-based blade server designed to go inside a Unified Computing System that includes storage, networking and virtualization.

Cisco wants to deliver the whole enchilada with its Unified Computing System, says Miko Matsumura

Cisco wants to deliver the whole enchilada with its Unified Computing System, says Miko Matsumura

So why buy a server from Hewlett-Packard, Sun or IBM if you can get it fully integrated from Cisco? If the server offers better performance, that might be a reason.

But if instead hardware becomes a commodity and the real “special sauce” is in how a company delivers data and services to its users, then it might not matter.

Cisco has already been expanding its reach for several years. It pushed into home networking, consumer goods, set-top boxes, IP phones. Servers is another logical step.

“They are really trying to deliver the whole enchilada,” says Miko Matsumura, deputy CTO at software maker Software AG.

Delivering the complete meal comes with several benefits. First, customers have only one company to work with and blame if something goes wrong. Integration is Cisco’s problem, not the buyer’s.

Second, as Web applications become more complex and software mashups more common, computing systems are having an increasingly difficult time communicating with one another. Communications are hampered as subtle variations appear in the typical seven layers of protocols networks use to communicate.

Cisco has the potential to solve this by integrating networking gear, servers and storage with a layer of virtualization, says Matsumura. “The router is a virtual router. The storage is virtual storage.”

Users (and IT workers) see less and less of the complexity.

So why buy a stand-alone server from H-P?


Bill Joy Sees Enormous Opportunity In Thin Film Solar Cells

February 13, 2009

Enormous opportunities lie ahead for thin-film solar cells, said Bill Joy, partner at the venture firm Kleiner Perkins Caufield & Byers.

But the fall in the price of oil threatens a generation of green-energy entrepreneurs, setting back the nation’s efforts to combat global warming, Joy said this week during an on-stage interview at the Churchill Club.

We take the climate status quo too lightly, say Bill Joy

We take the climate status quo too lightly, say Bill Joy

Joy, a co-founded Sun Microsystems who now invests in clean-tech startups at KP, said the government could bring stability to alternative-fuel markets by demanding a percentage of the country’s energy come from renewable sources.

At the same time, Silicon Valley can play a role in developing thin-film solar cells because of its expertise with semiconductors, he said. But the valley will not be the only center of innovation in green tech, Joy added, suggesting Boston, Pittsburgh, Atlanta and Germany have specialties to harness.

At Kleiner, partners have been working with former Vice President and climate crusader Al Gore to find solutions to global warming. – and investment ideas.

The alternative is letting the planet become inhospitable. “We take the status quo too lightly,” said Joy.


Sun Takes On Adobe’s Flash, Microsoft’s Silverlight With JavaFX

December 4, 2008

Sun Microsystems released its competitor to Adobe System’s popular Flash and Microsoft’s Silverlight on Thursday, trying to edge its way into already heavily contested market.

Sun stresses JavaFXs ability to run on multiple screens

Sun stresses JavaFX's ability to run on multiple screens

The computer maker began shipping JavaFX, a software technology began talking about 18 months ago and which came out in a preview version in July.

JavaFX runs on top of Java and is intended to let developers build applications using multimedia and graphical content in Java. This new functionality would have required Flash or another software in the past.

With the commercial release, Java users will have to upgrade their runtime with a download.

Sun says a version for mobile devices will ship in 2009 – probably earlier in the year than later. Future development will bring JavaFX to the television.

JavaFX will come up against some powerful competitors in Adobe’s ubiquitous Flash, Microsoft’s budding Silverlight and the Web technologies in Google’s new Chrome browser.

Sun says JavaFX and the Java environment has a leg up over Flash. First, they can more readily be used to link an application to the business applications, or “business logic,” and data sources running behind a corporate Web site. They also are more tailored to run with mobile screens, televisions, routers and desktop application independent of a browser.

Flash has begun an ambitious initiative to better run on mobile phones.

“We’ve solved the hard problem first,” says Jeet Kaul, senior vice president of Java engineering at Sun, referring to the ability to run on screens and devices beyond the PC. “We have solved the embedded story really well.”


Sun Micro Feels The Brunt Of The Economic Slowing, But Can’t Decide Where To Cut, Unlike TSMC, Which Slashed Capital Spending

October 30, 2008
CEO Jonathan Schwartz says company still looking at cost cuts

CEO Jonathan Schwartz says company still looking at cost cuts

The worldwide economic slowdown has been hard on Sun Microsystems. First-quarter sales fell 7.1 percent and the company swung from a profit last year to a loss of $1.7 billion, which included a charge.

Business with U.S. financial firms was particularly devastated. Sales fell 20 percent.

So what it a struggling computer company to do? In Sun’s case, nothing it could spell out to Wall Street analysts on a conference call Thursday.

“We understand we’re going to have to balance our costs for the new reality,” said CEO Jonathan Schwartz. But the details? Sun wouldn’t say.

Sun has long been hesitant to pull the trigger on layoffs. During the dot.com downturn beginning in 2001, the company resisted deep cuts into staff and expenses at a time when other firms shed jobs like a retriever loses hair in the summer.

The strategy may make nice with employees, but it hasn’t produced the best business results.

Compare Sun to another high-tech giant that released quarterly earnings on Thursday: Taiwan Semiconductor Manufacturing Company. TSMC took decisive action. The world’s largest chip foundry said third-quarter sales were hurt by the economic slowdown and that fourth-quarter revenue would be weak as well.

The global semiconductor market should decline 5 percent to 9 percent next year, the company said, offering a dour outlook.

As a result, TSMC slashed 2009 capital spending by 20 percent from the $1.8 billion spending planned this year – reacting quickly to the crisis.

Yes, the environment is challenging, and customers are “pushing off large scale system purchases,” as Schwartz noted. But what are you going to do about it?

We’ll get back to you, was Sun’s answer.


Downturn So Far Hit Hardware And Chip Companies Harder Than Software And Services

October 22, 2008
Nasdaq market is down again

Nasdaq market is down again

I hope I don’t end up eating these words. Quarterly results from Citrix will come out this afternoon and from Microsoft tomorrow. So a better picture of the demand landscape should soon appear.

Yet the companies showing the greatest damage so far from the worsening economic environment are makers of hardware and chips. Intel cautioned about its fourth-quarter outlook, and so did Linear Technology, Altera, Sun Microsystems, Texas Instruments, Novellus, Advanced Micro Devices, PMC Sierra and Dell. Some of these companies have significant internal problems beyond their exposure to the economy.

But even mighty Apple said uncertainty was in the air and pulled in expectations for the end-of-year holiday quarter.

In all fairness, several software firms have complained as well that the broad economic weakness is curtailing their businesses. SAP is one, and VMware, despite a steady financial report, was downbeat looking forward.

In addtion, companies such as Yahoo and eBay, more closely tied to consumer spending and advertising have been downright gloomy looking forward. Google didn’t paint a rosy picture either.

But so far the worst of impact seems to have fallen on firms like Linear, which pulled in revenue expectations for the fourth quarter, and Altera.

Texas Instruments plans layoffs, and Sun projected a huge loss.

At IBM, while third-quarter sales of hardware and chips fell 11 percent, overall revenue rose 5 percent with software and services turning in healthy reports.

On the other hand, Indian outsourcer Infosys said a slump in business from financial firms will probably spread to retail and manufacturing.

Maybe it is just a matter of time for the services and software industries.


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