Standards


27
Oct 09

Competing in a Commodity Hosting Market

We knew it was going to happen but perhaps not so soon. Today Amazon announced that it would be reducing it’s pricing on EC2 linux instances by 15%. That’s a pretty significant cost reduction but we also have to factor in a whole bunch of other costs to figure out what their strategy seems to be.

Unlike with most bundled VPS services where you get a certain amount of disk space, bandwidth, memory and CPU resources, the Amazon model breaks things down into separate categories. You pay per use on everything. Instances per hour, Bandwidth and Storage per Gig, etc. Under this model it makes sense to shift your revenue to things that are higher margin. What that means is that with enough scale, you could almost afford to break even on the server instance and make money on other things – like bandwidth.

This is similar to the concept of “Freemium” in the Web Apps world. You get to use the basic version at a heavy heavy discount (in some cases free), but the add-ons, extra functionality, etc results in having to pay. The difference is that in the harsh reality of hosting, it costs real money to run a server.


15
Mar 08

Open Virtual Machine Format

Open standardized protocols are what made the Web possible. We have standards all the way up the computational stack, from agreeing on which pins mean what in a wire, to what an X button means in a user-interface. Companies who don’t embrace them are destined to isolate themselves on tiny technological islands. Specific implementations, however, don’t have to be shared and open. Huge markets with tiny verticals of implementation lock out competition, but they also prevent innovation. But sometimes something beautiful happens, and people get together to support a new kind of standard. An open, extensible standard that can be written and read by anyone. One place where this is just starting to happen is with computer virtualization.

The Open Virtual Machine Format, or OVF is a proposed universal format that aims to create a secure, extensible method of describing and packaging virtual containers. Because the standard is open, it means any environment supporting the standard can import and export those virtual machines between different hypervisor platforms. The current OVF specification includes definitions ranging from virtual machine metadata and disk format, all the way to detailed hardware specifications and logical network information. It also provides an ability for the virtual machine itself to get information from the hypervisor host, meaning that if you’re creative you could create some really nifty automated integration and deployment tools.

If that doesn’t mean much to you, then consider this: Industry heavy-weights like Dell, HP, IBM, Microsoft, VMware, and XenSource all took part in drafting the specification. As far support tools go, VMware has published what appears to be the first OVF container creation tool, available here.

There IS a big problem with OVF right now, and a lot of bloggers and analysts out there are getting it wrong. OVF is not and does not define a new virtual disk format, simply a wrapper around them. This means that OVF support doesn’t enable you to drag and drop virtual machines between Xen and VMware. Some formats can be converted externally using tools, however most of the current techniques involve booting up a system, and running a migration tool to be able to convert the image – not exactly ideal. OVF does include the ability to describe your specification in an HREF, which means that you could publish your spec, and create a system that could modify containers on the fly.

If Vmware, Xen, and Parallels are technolgical islands, then OVF may one day be the bridge that will allow you to travel between them.

Update It looks like OVF will be announced formally at the Catalyst 2008 conference. More information here.