Archive for the ‘Finance’ Category

Level(3) Found God, Bought Metro Fiber

Wednesday, February 17th, 2010

I just read a great post on the Telecom Straight Shooter blog about Level(3)’s business.  Excerpt:

…all applications will originate and terminate in a metropolitan market with local access along with their associated revenues.  Long haul pipes are in vast quantity with plenty of inventory buried in the ground. In all fairness, however, if you are going to build a long haul network, you don’t undergo the expense to put only one pipe in the ground.

Metropolitan markets are 10x more expensive to build, operate and install than a long haul network. You actually require more fiber to be deployed in a metro setting in order to support stuffed, long haul dumb pipes from long haul networks dumping packets at a carrier hotel for metro distribution or third party interconnection facilities.

Pic >1k words: U.S. Health Care Ineffectiveness

Tuesday, January 5th, 2010

In case it isn’t clear to you, this graphic recently published by National Geographic shows that the U.S. spends the most on health care yet receives little treatment and has a negative correlation to life expectancy.  On the contrary, a country like Japan spends less money than average, accumulates more time receiving medical care, and has an excellent life expectancy.  Basically, in my humble opinion interpretation, U.S. healthcare == FAIL.

Healthcare Worldwide Spending, Visits, and Life Expectancy

Reflections on MPLS 2009

Monday, December 14th, 2009

It has been well over a month since I attended the MPLS 2009 conference and participated in the panel on Emerging Technologies and Business Architectural Impact, and it is about time (over-due) that I posted my thoughts.

Foremost, I should say Thank You to Monique Morrow for organizing such a great panel and inviting me to participate.  I’ve known Monique as a colleague and friend for a while now, and whenever we have chance to meet she never fails to impress me.  In the context of this panel, I was dumbfounded at the quality and breadth of the other participants that she secured.  Monique moderated the discussion such that the panel’s large size was a benefit rather than liability.  As a panel we managed to cover multiple topics with decent depth, and were each allowed to illustrate our different perspectives.  I’ve been told by several audience members that it was an excellent panel, and from my (admittedly biased) perspective I must agree.

As for the discussion itself, I very much enjoyed participating.  Considering the quality of the other panelists, I am honored to have been included; each of the other panelists are recognizable for their contributions and role in the industry.  Given my respect for the other panelists, I tried to enter the conversation prepared and did not hold back any of my significant thoughts during the discussion… for better or worse.

Some of my comments may have included points that were controversial.  For instance, one theme that ran through the entire discussion was the complex balance of cost vs. capacity vs. features in network devices.  I challenged comments from Vijay Gill (of Google) and Donn Lee (of Facebook) which argued in favor of very-large dumb switches. ("dumb" is my word choice, but I suspect they would agree)  From their perspectives, as engineers for large web properties, they need to scale out single-tenant environments to support Internet-scale traffic loads and a simple L2 or L3 switch would enable their topology.  But, I argued, they were "weird" in their requirements, which are unique to large web properties.  Service providers and enterprise environments need more features in order to deal with the complexity and changing "customer" requirements they face daily.

After the panel I had the opportunity to chat with Vijay and Donn, and they had an interesting view of the cost / capacity / features debate.  Their comments deserve some focus, so look for a future post on this topic.

Another topic was the relevance of standards, which wasn’t particularly controversial but which caused some interesting comments.  My point was that standards are critical to the industry, but in the same way that fundamental research is critical to science and technology (broadly speaking).  We need to put effort into standards because it brings people together and promotes the state of the art.  But we also need to recognize that functioning interoperable implementations are what matter, regardless of the standards conformance, etc.  In other words, standards bodies should work diligently but not take themselves too seriously in the process.

Regardless, I hope to be included in future panels such as this one (at the MPLS conference and/or elsewhere) and I’m glad to have had the opportunity at MPLS 2009.  I would absolutely recommend that you attend future panels by Monique, at MPLS 2010 or otherwise, whether I’m taking part or not. Though, obviously, it would be better with my opinion included. ;)

Broadcom to Acquire Dune Networks

Monday, November 30th, 2009

Interesting… Broadcom announced that they’re acquiring Dune Networks, makers of high-speed high-density switch fabric chips.

IRVINE, Calif., Nov. 30 /PRNewswire-FirstCall/ — Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has signed a definitive agreement to acquire Dune Networks, a privately-held company that develops switch fabric solutions for data center networking equipment. Data centers are scaling to provide significantly more bandwidth to meet the requirements of cloud computing, where computing resources, products and services, such as Software as a Service (SaaS), can be delivered real-time over the Internet. Dune Networks has developed a scalable chipset that supports bandwidth speeds of up to 100Gbps per port and can connect more than ten thousand servers (ports) in a single deployment.

Comment on Enterprise Transition to Cloud

Saturday, November 28th, 2009

I just wanted to share a comment that I recently posted to Vijay Gill’s blog, regarding cloud economics:

Enterprises are tricky. They are full of legacy apps that won’t magically transition to PaaS. And their internal IT isn’t very visible to the outside world. In other words, the enterprise cloud transition will take a long time and most people won’t know that it’s happening.

That being said, one should be careful about underestimating cloud service providers focused on the enterprise market. (And the dark horse impact of enterprises on the PaaS landscape.)

Obviously, I left a lot unsaid…  Perhaps I can elaborate in future posts.

Regardless, I’m interested in your feedback — what do you think about the enterprise transition to cloud?