Datacenter economics.

They’re different, now.

To understand how, let’s examine a modern “factory” for a car manufacturer such as Ford. It consists of not only the machines, people, and robots in the assembly line, but parts suppliers, a transportation network, inventory, logistics, communications, and a great many other components. That car manufacturer fine-tunes the combination of those components to achieve a particular balance of design, cost, quality, reliability, brand awareness, etc. that reflects its business model.  That balance can be altered to suit changes in the business model during changing business conditions.

 A different car manufacturer, such as Bentley, does the same thing, thought it weighs factors differently.  It might, for instance, give greater emphasis to exclusivity of materials over cost.

Most enterprise datacenters are nothing like automobile factories.  They’re more like the plumbing and electrical systems.  More complex, more flexible than electrical systems, but still regarded as overhead: necessary to run the business, but not in the same way as the automobile factory.  That’s about to change: the datacenter will soon become much more like an automobile factory. Why?
Because of something Ericsson calls digital industrialization.

 “… in the near future the vast majority of end points on networks are going to be machines independent of humans, rather than humans holding machines. New use cases will include data collection and control signaling, alongside voice, media and messaging.”…”We do not know exactly what these use cases will require from the underlying compute, storage and network infrastructures, but early indications are that today’s design assumptions will be challenged, and that the future will require a new hyperscale approach.” source: Ericsson White Paper: Next Generation Datacenter Infrastructure

Regardless of what your business delivers through the cloud, it probably competes with other businesses that deliver the same thing.  As a result, you probably differentiate on cost, speed, customer service, quality, brand, or something else.  Whichever criteria differentiates your business, your datacenter must be designed from the outset to deliver exactly that.  If you design a datacenter for speed, but your business differentiates on price, you’re not going to do well.

“The companies that have already accomplished this transformation are the public cloud providers (Google, Facebook and Amazon, among others), which have developed their own “hyperscale” computing approaches, and changed the rules of the game in data center design, construction and management.”  source: Ericsson White Paper: Next Generation Datacenter Infrastructure

Listen to Howard Wu, Product Line Head for Hyper Cloud Solutions at Ericsson, explain it in this video taped at Intel Developer Forum (IDF) in San Francisco:

You can begin your datacenter’s evolution into a hyperscale cloud with the Ericsson HDS 8000.  The first implementation of the Intel ® Rack Scale Architecture, the HDS 8000 is part of a cloud portfolio from Ericsson designed to enable your business to compete in the era of digital industrialization.  Read more here:

Don’t miss this white paper, which describes in detail the changes that digital industrialization will bring to enterprise datacenters:

Ericsson White Paper: Next Generation Datacenter Infrastructure (pdf)


Cloud Infrastructure

Rick Ramsey

I started my high tech training as an avionics technician in the US Air Force. While studying Economics at UC Berkeley, I wrote reference manuals and developer guides for two artificial intelligence languages, ART and SYNTEL. At Sun Microsystems I wrote about hardware, software, and toolkits for developers and sysadmins, and published “All About Administering NIS+.” I served as information architect before joining BigAdmin, which morphed into the Systems Community at Oracle. I left Oracle in May of 2015, and now write for Ericsson.

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