Home Messages Index
[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index

[News] Linux Dominates Distributed Cache

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

Gear6’s Web Cache Makes Web Scalability Easier

,----[ Quote ]
| Gear6 today released Web Cache in an effort to commercialize the Internet’s 
| predominant (de facto, for Linux) distributed caching protocol, memcached.  
| Every Top 20 web site not owned by Microsoft uses memcached (Facebook has 
| almost 1,000 servers dedicated to its memcached tier) and 50-60 percent of 
| all Alexa-ranked Top 10,000 sites use it to some degree, according to Joaquin 
| Ruiz, EVP of products and corporate development at Gear6. With Web Cache, 
| Gear6 is offering a turnkey solution that brings high availability to 
| memcached, as well as significant capital and operating expenditure savings.      
`----

http://gigaom.com/2009/04/20/gear6s-web-cache-makes-web-scalability-easier/

_________________________________________________________________
Comes vs. Microsoft - exhibit px07062, as text
Orig. PDF: http://boycottnovell.com/wp-content/uploads/2009/01/px07062.pdf
_________________________________________________________________
    From: Gary Schare
    Sent: Friday, January 18, 2002 5:45 PM
    To: Bob Muglia, Chris Phillips
    Cc: Brat O’Rourke; Joe Powell; Troy Batterberry; Rob Green
    Subject: eCDNs and storage

    Hi Bob and Chris,

    I want to bring you up to date on some analysis currently underway in DMD
to propose a strategy for the Enterprise Content Delivery Network (eCDN)
market. We recently submitted a Think-Week paper (enclosed) that addresses the
primary situation, threats, and opportunities in this market. Further
conversations about this topic have made us realize that there is a very close
affinity between eCDNs and storage solutions. This affinity is affirmed by the
success that Network Appliance has had in selling eCDN solutions based on an
attach strategy to their existing storage solutions. Essentially their message
is “You already buy storage from us. Our eCDN products extend that storage out
to the edge of your network where rich-media content can be more efficiently
delivered to the end-user.”

    I think that after reading through this short paper (approx 4 pages) you’ll
want to become involved in the strategic discussions and possibly see that
success in this market may be core to your own storage solutions strategy.

    As a summary, here are some bullets from the paper.

    Situation

    * Digital media and rich-media (a combination of digital media and web
content) is by far the most bandwidth intensive content carried across both
commercial and private networks It is the primary driver for content delivery
solutions that: 1) speed the delivery of web content, 2) ensure an acceptable
streaming media experience, and 3) significantly reduce the bandwidth load on
the network backbone.

    Strategic Threat

    If Microsoft does not address the enterprise need for content delivery
networks, it will:

    * See large scale deployment of Linux-based caching appliances and servers
that will also pull through or attach to Linux/Solaris-based content
management, storage and Oracle database solutions.

    * Risk losing our 69% Windows Media usage share in the enterprise to
MPEG-4. CDN product vendors who now pay a royalty to Microsoft to license the
Windows Media protocol on non-Windows platforms (our only revenue in the value
chain.)

    * Leave a significant portion of the eCDN value chain to other software
vendors Even if all eCDN vendors move to Windows servers today, it is the
management/distribution application layer that commands the premium in the
overall cost of the solution. Microsoft is not on a path to participate in
this portion of the value chain.

    Thanks in advance for your interest in this topic. Look forward to
follow-on discussions.

    As a side note, this topic came up in a Jimall review on ISA back in
November. He asked us to come back with a

    6/9/2003

    MS-CC-Bu 000000103210
    HIGHLY CONFIDENTIAL

    comprehensive analysis of the opportunities and threats. This work is
underway but not yet scheduled with Jim.

    Gary Schare
    Director of Enterprise Marketing
    Windows Digital Media Division

    6/9/2003

    MS-CC-Bu 000000103211
    HIGHLY CONFIDENTIAL

    Microsoft Corporation
    Draft ThinkWeek Proposal
    Enterprise Content Delivery Networks (eCDN)
    Future Impact for Microsoft

    Final Draft 2.0

    Executive Summary
    Content Delivery Networks (CDNs) enable efficient and intelligently managed
distribution of rich-media (digital media and web content)to the edge of both
Enterprise and Commercial (cable/teleco) networks. Unlike the Commercial CDN
market, the enterprise CDN (eCDN) market for products and services (forecast
at $1.3 billion worldwide by 2005) is relatively unclaimed but is the new
focus for server hardware/software vendors and service providers. Intense
competition for the eCDN market and the lack of a managed content distribution
strategy leave Microsoft vulnerable to being marginalized in this emerging and
very strategic segment. By having no strategy, Microsoft abrogates server
operating system market share to Linux and relinquishes incremental software
revenue to vendors delivering the management intelligence software that is the
premium in the CDN value chain. We also may lose our digital media format
leadership if CDN vendors move to standard formats (such as MPEG-4)to avoid
paying Microsoft a protocol royalty to serve Windows Media content from
non-Windows platforms.

    Microsoft should quickly assemble a team to evaluate the opportunities,
options and trade-offs that lead to a clearly defined and actionable Microsoft
CDN strategy

    Situation
    * Digital media and rich-media (a combination of digital media and web
content) is by far the most bandwidth intensive content carried across both
commercial and private networks. It is the primary driver for content delivery
solutions that: 1) speed the delivery of web content, 2) ensure an acceptable
streaming media experience, and 3) significantly reduce the bandwidth load on
the network backbone.

    * A Content Delivery Network (CDN) is a network of servers co-located in
ISP or Cable/Teleco facilities, designed to intelligently cache and serve web
content and streaming media content over the Internet, based on user request
patterns.

    * An Enterprise CDN (eCDN) performs a similar function on a private
network, and may in fact be an end-to-end solution that addresses content
publishing, policy management, end-user discovery and delivery to the edge of
the network, often in branch offices or other remote sites.

    * Enterprises are rapidly increasing their use of streaming media for
eLearning and corporate communications due to the economic downturn and travel
reductions caused by the fallout from 9/11 (Enterprise usage ranges from 26%1
to 35%2 today and increases to between 42% and
    47%3 in 2002).

    * There is a very high correlation between the use of streaming media and
the deployment of eCDN technologies. Conversely, eCDN solutions are the
primary enabler for enterprise deployment of streaming solutions. 4

    * Hardware/software vendors, such as Inktomi, Network Appliance and Cisco,
have CDN focused solutions that intelligently manage the distribution of
content to the network edge In response to

    ____________
    1 Market Decisions Corporation (MS), 2001
    2 The HTRC Group, 2001
    3 Gartner Group, 2001
    4 The HTRC Group, 200t

    6/9/2003
    Microsoft Confidential

    1

    MS-CC-Bu 000000103212
    HIGHLY CONFIDENTIAL

    Microsoft Corporation
    Draft ThinkWeek Proposal

    the loss of .COM business and increasing demand in the Enterprise, these
vendors have turned their attention to selling eCDN solutions

    * Increased use of streaming media wili drive additional storage and
network upgrades. Vendors with a CDN/caching attach story, such as NetApp and
Cisco, have high visibility and leverage with IT decision makers NetApp
attaches their CDN solution to their NAS and SAN solutions, while Cisco sell
content delivery as a natural extension of their network solutions. The
selling process for both of these vendors can be seamless - based on the
reality that their rich-media caching products are mere extensions of the
infrastructure they’ve already deployed inside the firewall While lacking the
relationships with corporate IT decision makers, Inktomi appears to have the
most technically advanced solution based on its unique method of managing and
distributing content.

    * eCDN/CDN/caching product vendors running on non-Windows platforms, such
as Cisco (Linux) & NetApp (proprietary), currently pay Microsoft a royalty for
licensing Windows Media protocols, allowing them to stream WM content in
dedicated caching appliances (DCA) This royalty is roughly equivalent to the
cost of Windows 2000 Server. Inktomi solutions run on Solaris and Linux,
although they’re preparing to roll out a Windows-based solution.

    * The only Windows-based solution comes from infolibria, a small company in
which Microsoft recently made a small strategic investment, Infolibria, has
little market share or momentum as they have no influence with IT decision
makers and little if any market differentiation..

    * eCDN/CDN/caching product vendors are producing sophisticated management
software that not only pushes content to the edge, but also provides policy
management, data repair, comprehensive logging and reporting, and integration
with billing and ecommerce applications. This software is commanding a premium
in the CDN value chain. For example, a feature-laden edge server commands $15k
to $30k of which MS received about $1k in either server OS revenue or protocol
license royalty.

    * CDN service providers such as Akamai, Digital Island and iBeam are also
(and for the same reasons as the product vendors) shifting their focus to
include the enterprise intranet/extranet offerings. Many are developing
solutions deployable inside the firewall in addition to their Internet hosting
solutions Virtually all of the 20,000 servers used by Internet CDN’s
(including 16,000 by Akamai alone) are Linux or Solaris based (Only about 1000
are Windows-based Windows Media servers.)

    * CDNs have developed complex algorithms that define the most efficient way
to distribute content across multiple networks, and they have more experience
distributing that content across a variety of networks than anyone else. They
plan to use this expertise, along with a complete solutions selling approach
(content creation, eCDN hardware, and Internet hosting) to win business
against the eCDN product vendors

    * Cablecos & telcos are acquiring major CDNs in a move to be the central
player in the content delivery value chain. Cable & Wireless bought both
Digital Island and Exodus and Williams bought iBeam.

    * Microsoft has no defined strategy for delivering an eCDN platform or
solution. The once logical home for this–ISA Server–is pulling back from
adding further cache/proxy functionality and will focus primarily on
delivering firewall/security functionality.

    6/9/2003
    Microsoft Confidential

    2

    MS-CC-Bu 000000103213
    HIGHLY CONFIDENTIAL

    Microsoft Corporation
    Draft ThinkWeek Proposal

    Threats & Opportunities

    Microsoft can stave off major competitive threats to Microsoft strategic
initiatives and generate significant incremental revenue by delivering a
software platform for intelligently managing content delivery across the
network (public or private). Delivering an eCDN solution will ensure Windows
server and Windows Media format adoption while at the same time preempting
large scale deployment of Linux and MPEG-4 in the enterprise. Microsoft will
be able to participate in a market projected to be $1.3 Billion by 2005, as
well as provide Microsoft with a content delivery platform that can extend the
scalability of other Microsoft distributed servers (such as CMS and SPS).
Server hardware/software product vendors and network service providers are
both targeting the enterprises to deliver eCDN solutions+ Regardless of which
solution is deployed, Microsoft has the opportunity for insertion into the
value chain by delivering an eCDN software platform that enables both
product-based and service-based solutions.

    Strategic Threat
    If Microsoft does not address the enterprise needs for content delivery
networks, it will:

    * See large scale deployment of Linux-based caching appliances and servers
that will also pull through or attach to Linux/Solaris-based content
management, storage and Oracle database solutions.

    * Risk losing our 69% Windows Media usage share in the enterprise5 to
MPEG-4 CDN product vendors who now pay a royalty to Microsoft to license the
Windows Media protocol on non-Windows platforms (our only revenue in the value
chain.) If this becomes too costly for vendors and enterprise customers–who by
the way are dumping Real Networks on the Intranet due to cost6–they could
simply dump us in favor of the inferior but maturing MPEG-4 standard. (The
issue of an enterprise-deployable MPEG-4 player will be solved in the short
term, probably by RN.)

    * Leave a significant portion of the eCDN value chain to other software
vendors.Even if all eCDN vendors move to Windows servers today, it is the
management/distribution application layer that commands the premium in the
overall cost of the solution. Microsoft is not on a path to participate in
this portion of the value chain.

    * Fail to participate in a potentially large market, estimated to include
80% of enterprises by 20067.

    Revenue
    The forecast CAGR (2005) of the combined worldwide eCDN market is $1.3 B,
consisting of:
    * $1.079 B for eCDN products, including hardware and software
    * $239 M for eCDN services on the Intranet and Extranet
    Examples of Enterprise customers deploying eCDN solutions include Sears
(600 Inktomi/Linux servers), Merck (170 Cisco/Linux servers), Allstate
(Between 4 and 15K NetApp appliances depending on final architecture), and
AT&T (900 InfolibriaJWin2k or Inktomi/Linux).

    Opportunity Sources -Today any MS revenue from this market is strictly from
server OS licenses. Although product vendors and service providers will
account for more Windows Media servers and potentially more Windows servers
and SQL Server as the market grows, the larger opportunity for

    ______
    5 The HTRC Group, 2001, Market Decisions Corporation (MS), 2001
    6 Anecdotal: DMD-Inktomi meeting, 18DecO1, and other customer/vendor
feedback
    7The Gartner Group, 2001

    6/9/2003
    Microsoft Confidential

    3

    MS-CC-Bu 000000103214

    HIGHLY CONFIDENTIAL

    Microsoft Corporation
    Draft ThinkWeek Proposal

    incremental revenue lies principally in the lucrative management software
for intelligent content delivery that spans cache/proxy technology (the basis
for moving/prestuffing content in the network), IIS/WMS (the bit pumps), Index
Server (for content directory services), security, and a layer on top of this
that manages the replication and management of content in a distributed
infrastructure. In addition, IIS, WMS, and cache/proxy technology is becoming
largely commoditized. Incremental revenue comes from rising up the food chain
and offering a solution that ties these technologies together.
    Revenue Risk - With no competitive Windows-based solution, we miss out on
the premium software revenue altogether. Among the products at risk are .Net
Server, Office XP, UDRM Another consideration is that CDNs and eCDN vendors
have experienced serious revenue losses stemming from the economic downturn
and COM demise Significant competitive wins in the enterprise space could
reverse that situation, giving competitors the R&D/development resources to
produce even more compelling solutions and penetrate the enterprise datacenter
even more deeply

    Incremental Benefits
    Distributed server products such as CMS and SPS could build upon a
Microsoft content delivery platform to build solutions that scale through
content replication and policy management without having to build that
functionality from scratch. In addition, eCDN solutions will pull through
incremental Windows server and database servers and drive incremental
consulting revenue through MCS, GSIs and MCPs to plan, customize and integrate
these solutions into the IT infrastructure.

    Recommendation

    Microsoft should quickly assemble a team to evaluate the opportunities,
options, and trade-offs that lead to a clearly defined and actionable
Microsoft eCDN strategy. This strategy should align with the following goals:

    1. Enable Enterprise customers and commercial network providers to deploy a
Windows-based content delivery network solution
    2. Empower server hardware/software product vendors and commercial networks
to deliver compelling Windows-based products and services
    3. Provide an extensible content delivery platform on which
distributed .NET Enterprise Servers can build scalable solutions;
    4. Enable Microsoft to participate in the revenue premium for the software
intelligence that manages & distributes content to the edge of the network
(rather than just the underlying operating system that hosts this software.)

    References

    * The Developing Enterprise Edge - Streaming Media and CDN’s in the
Enterprise

    o HTRC Group (http://www.htrcgroup.com/home.html)
    o \\dmsts\public\enteprise\CDN\Researchk2001_SCE_Study.PDF

    * DMD Semiannual Tracker- Streaming Media in the Enterprise

    o Market Decisions Corporation

    6/9/2003
    Microsoft Confidential

    4

    MS-CC-Bu 000000103215
    HIGHLY CONFIDENTIAL
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.9 (GNU/Linux)

iEYEARECAAYFAknuSRIACgkQU4xAY3RXLo5BXwCfbOwWsdpWm29baOHKwJPfGz47
5zgAoIDh0tdhzv7MhQSWT1bBCZoL0PAa
=24qk
-----END PGP SIGNATURE-----

[Date Prev][Date Next][Thread Prev][Thread Next]
Author IndexDate IndexThread Index