Click here to close now.

Welcome!

@MicroservicesE Blog Authors: Pat Romanski, Liz McMillan, Elizabeth White, Carmen Gonzalez, Sematext Blog

Related Topics: CloudExpo® Blog, @MicroservicesE Blog, @ContainersExpo Blog, BigDataExpo® Blog, SDN Journal, DevOpsSummit® Blog

CloudExpo® Blog: Article

People Time versus Product Costs

Every recent major innovative change in networking has been about operational efficiencies; about people time, not product costs

Financially, IT is a study in capital versus operating expenditures. It's a study in short term versus long term; in product cost versus people time.

The major innovative shifts in the industry - starting with cloud and moving on to SDN and devops - have really been about the latter - operations - despite the initial laser-focus on capital cost savings. That's because over time, the bulk of the cost of any product, solution or service is always in people time. Whether measured in dollars or hours, most of the costs in IT are the result of configuration, management, upgrades and maintenance over time. Refresh cycles are generally the demesne of financial analysts and vendors, but they play heavily into the reasons why operational costs are almost always higher than capital costs. IT simply doesn't replace its entire network or any large portion of its infrastructure often. There are very predictable cycles on which such events occur and in between, the operational costs are wracking up the bulk of the total cost of ownership.

Battle of Standardization versus Commoditization

The cost of an OpenFlow-enabled white box switch, for example, is certainly lower than its proprietary counterparts from well-known networking leaders due to commoditization. But it's still only a small portion of the total cost of ownership, which needs to take into consideration the operational savings from greater efficiencies driven from standardization that enable automation and orchestration to reduce people time-related costs.

so much winOperational costs end up being the great equalizer; the people time saved by automating and orchestration the network is true whether the target of that automation and orchestration is a white box or a top-of-the-line proprietary switch.

It could be argued, in fact, that proprietary hardware, having a long and proven history and existing partnerships (ecosystems) will ultimately net even greater savings because of the ability to leverage those existing partnerships to integrate across multiple systems. That means less people time spent by IT integrating and testing and tweaking, which in turn drives down the operational costs associated with the solution.

Regardless, the reality remains that it is operational efficiencies and thus people that are the ultimate beneficiaries of recent transformational technologies. The reason it may be acceptable to "rip and replace" that enterprise-class network fabric with an OpenFlow-enabled, white box switching fabric is precisely because the long term return on investment is so compelling. But that's true of proprietary, more expensive solutions, too, that come with guarantees that can't be offered by the disposable-driven nature of commoditized products.

Craig Matsumoto summed it up nicely in his article, "White Box Week: How Cheap Is ‘Commodity?’"

Even proponents agree that capex — the cheapness of the boxes themselves — won’t drive this market. Capex gets customers’ attention (who doesn’t like the idea of spending less money?) but it’s really the operational savings that hook them.

In the battle of capex versus opex, opex is really the driving force behind almost all the "trends" in networking and infrastructure. Cloud? It's about operational efficiencies and service velocity. Devops? it's about operationalizing continuous deployment and delivery. SDN? It's about network service velocity, and operationalizing the network.

It's all about people time, not product cost.

More Stories By Lori MacVittie

Lori MacVittie is responsible for education and evangelism of application services available across F5’s entire product suite. Her role includes authorship of technical materials and participation in a number of community-based forums and industry standards organizations, among other efforts. MacVittie has extensive programming experience as an application architect, as well as network and systems development and administration expertise. Prior to joining F5, MacVittie was an award-winning Senior Technology Editor at Network Computing Magazine, where she conducted product research and evaluation focused on integration with application and network architectures, and authored articles on a variety of topics aimed at IT professionals. Her most recent area of focus included SOA-related products and architectures. She holds a B.S. in Information and Computing Science from the University of Wisconsin at Green Bay, and an M.S. in Computer Science from Nova Southeastern University.

@MicroservicesExpo Stories
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT transformation?
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
SYS-CON Events announced today that SUSE, a pioneer in open source software, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SUSE provides reliable, interoperable Linux, cloud infrastructure and storage solutions that give enterprises greater control and flexibility. More than 20 years of engineering excellence, exceptional service and an unrivaled partner ecosystem power the products and support that help ...
The release of Kibana 4.x has had an impact on monitoring and other related activities.  In this post we’re going to get specific and show you how to add Node.js monitoring to the Kibana 4 server app.  Why Node.js?  Because Kibana 4 now comes with a little Node.js server app that sits between the Kibana UI and the […]
There’s a lot of discussion around managing outages in production via the likes of DevOps principles and the corresponding software development lifecycles that does enable higher quality output from development, however, one cannot lay all blame for “bugs” and failures at the feet of those responsible for coding and development. As developers incorporate features and benefits of these paradigm shift, there is a learning curve and a point of not-knowing-what-is-not-known. Sometimes, the only way ...
Virtualization is everywhere. Enormous and highly profitable companies have been built on nothing but virtualization. And nowhere has virtualization made more of an impact than in Cloud Computing, the rampant and unprecedented adoption of which has been the direct result of the wide availability of virtualization software and techniques that enabled it. But does the cloud actually require virtualization?
Right off the bat, Newman advises that we should "think of microservices as a specific approach for SOA in the same way that XP or Scrum are specific approaches for Agile Software development". These analogies are very interesting because my expectation was that microservices is a pattern. So I might infer that microservices is a set of process techniques as opposed to an architectural approach. Yet in the book, Newman clearly includes some elements of concept model and architecture as well as p...
I’ve been thinking a bit about microservices (μServices) recently. My immediate reaction is to think: “Isn’t this just yet another new term for the same stuff, Web Services->SOA->APIs->Microservices?” Followed shortly by the thought, “well yes it is, but there are some important differences/distinguishing factors.” Microservices is an evolutionary paradigm born out of the need for simplicity (i.e., get away from the ESB) and alignment with agile (think DevOps) and scalable (think Containerizati...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
How can you compare one technology or tool to its competitors? Usually, there is no objective comparison available. So how do you know which is better? Eclipse or IntelliJ IDEA? Java EE or Spring? C# or Java? All you can usually find is a holy war and biased comparisons on vendor sites. But luckily, sometimes, you can find a fair comparison. How does this come to be? By having it co-authored by the stakeholders. The binary repository comparison matrix is one of those rare resources. It is edite...
T-Mobile has been transforming the wireless industry with its “Uncarrier” initiatives. Today as T-Mobile’s IT organization works to transform itself in a like manner, technical foundations built over the last couple of years are now key to their drive for more Agile delivery practices. In his session at DevOps Summit, Martin Krienke, Sr Development Manager at T-Mobile, will discuss where they started their Continuous Delivery journey, where they are today, and where they are going in an effort ...
There is no question that the cloud is where businesses want to host data. Until recently hypervisor virtualization was the most widely used method in cloud computing. Recently virtual containers have been gaining in popularity, and for good reason. In the debate between virtual machines and containers, the latter have been seen as the new kid on the block – and like other emerging technology have had some initial shortcomings. However, the container space has evolved drastically since coming on...
The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential. The DevOps Summit at Cloud Expo – to be held June 3-5, 2015, at the Javits Center in New York City – will expand the DevOps community, enable a wide...
Cloud Expo, Inc. has announced today that Andi Mann returns to DevOps Summit 2015 as Conference Chair. The 4th International DevOps Summit will take place on June 9-11, 2015, at the Javits Center in New York City. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at ...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.