Marc Benioff, CEO of Salesforce.com, recently invested in Xsigo. He joins a group of other savvy, high-profile investors including Vinod Khosla of Khosla Ventures, and Ray Lane of Kleiner Perkins, so he’s in pretty good company. Why would these guys — all of whom are adroit at spotting the “next big thing” — finance a data center infrastructure company when cloud computing is emerging as the future of IT?
There are three reasons why I believe Xsigo is a great bet for them.
1) Xsigo is an integral part of the cloud revolution. Inside every cloud you’ll find physical data centers. To reach the full potential of the cloud we are transforming the way those data centers are designed and run. Xsigo delivers a key part of that transformation, the technology needed to make data centers cloud-ready.
2) Xsigo is proven. Our gear is in production use at Fortune 500 and Global 2000 companies such as Salesforce.com, Disney, Accenture, and Capgemini, VMware, EMC, and many others.
3) We are about to assert our leadership even further. At VMworld 2010 we will announce a new technology that every enterprise data center manager will need to consider.
So what makes Xsigo’s technology so compelling?
Building a more flexible data center
The problem Xsigo solves is data center inflexibility. Today’s data center technologies were not designed for the cloud. They were designed for the way we used to run IT, with servers, storage, and networks, interconnected by hard wires and fixed resource mappings.
For the cloud we want a resource-on-demand, utility model — an agile design that allows assets to be configured and then re-configured as needed. Whether the data center is hosting a public cloud such as Salesforce.com or a company’s own private cloud, that agility enables the flexibility and fluid scalability that make the cloud concept so powerful.
Xsigo has the technology to do this, and can do it in a very non-disruptive way. Unlike previous approaches to the agile data center (remember “grid computing”?), Xsigo fits in with existing server, networking and storage technologies. And it fully complements server virtualization.
Why Xsigo virtual I/O
Xsigo’s sells virtual I/O, a technology that brings data center connectivity under software control. That may sound a little abstract, but it’s actually pretty straightforward.
You’ve seen the typical data center with cables running everywhere. An enterprise data center is inherently complex, with servers, network switches, and data storage devices interconnected by miles of cables that are weaved into racks, under floor tiles, and through overhead cable trays. It’s a management challenge to install. And once completed, it’s very costly to change.
That inflexibility was OK in the pre-cloud era. Back then, servers ran just one application for their entire five-year life, so connectivity was simpler and far more static.
The cloud is real. And it changes everything.
In the cloud era, we place new demands on server connectivity. Now a server may run 20 different applications, which necessitates far more connections to networks and storage — 10 to 20 cables per server is common. The resulting complexity is not only expensive, but is also hard to change. Adding new servers takes more time, and reconfiguring existing servers is nearly impossible. All of which impacts scalability and flexibility, two core values of the cloud.
In a cloud infrastructure, the demands on a server will definitely change over time. Data center architects try to anticipate requirements when they design an installation, but doing that accurately over the life of a server is virtually impossible. A company may grow, enter new lines of business, or undergo a merger, all of which will change IT demands. Compliance requirements change. HIPAA, SOX, and payment card industry rules, for example, impact data center design.
And then there is technology change. During the next five years (the life span of a server installed today), there will be at least three new network types introduced. What does the data center manager do with the existing servers? Connect them to the new technology (a costly project), or leave them off the new networks and thereby limit his flexibility? Neither is an attractive option.
The concept of the cloud is to accommodate change. But to make change truly seamless we need a better infrastructure model – a more flexible data center foundation. And that’s what Xsigo is doing.
Xsigo lets you connect any server to anything in the data center, and then change those connections anytime you want… in software. And Xsigo consolidates those connections to just one cable. It’s the equivalent of having up to 64 cables inside one. Need to change the configuration? It’s a simple software command that can be done at any time without ever touching a wiring bundle or taking a server down.
The next wave in data center design
The implications of this are huge, big enough in fact to attract some serious competition. Cisco and HP both have virtual I/O technologies built into their server product lines. But Xsigo’s answer is better specifically because it’s not built into a server. It is open, which means you can connect all of your servers from all vendors to a single virtual I/O management environment – an infrastructure cloud.
For cloud providers, this can help enable new service offerings, rather than presenting a barrier to them. And for enterprise data centers, it complements server virtualization to create the other half of the private cloud; it is the flexible, virtualized infrastructure that meshes with the virtualized servers.
All of which is why I believe this is a great investment.
Investors look for the white spaces on the technology horizon, where new products or services can create a richer picture or fill in the gaps. Cloud computing has created a richer picture, giving companies new options for IT. But it’s also created a gap: the need for an infrastructure that’s as flexible as the IT model it supports.
In Xsigo, these investors saw the opportunity to be a part of the cloud revolution, filling a gap that the cloud model created. And in the process, a chance to be a part of the next big thing in the data center.