Time for Fujitsu Malaysia to twist and shout and yet …

The worldwide storage market is going through unprecedented change as it is making baby steps out of one of the longest recessions in history. We are not exactly out of the woods yet, given the Eurozone crisis, slowing growth in China and the little sputters in the US economy.

Back in early 2012, Fujitsu has shown good signs of taking market share in the enterprise storage but what happened to that? In the last 2 quarters, the server boys in the likes of HP, IBM and Dell storage market share have either shrunk (in the case of HP and Dell) or tanked (as in IBM). I would have expected Fujitsu to continue its impressive run and continue to capture more of the enterprise market, and yet it didn’t. Why?

I was given an Eternus storage technology update by the Fujitsu Malaysia pre-sales team more than a year ago. It has made some significant gains in technology such as Advanced Copy, Remote Copy, Thin Provisioning, and Eco-Mode, but I was unimpressed. The technology features were more like a follower, since every other storage vendor in town already has those features.

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Is there no one to challenge EMC?

It’s been a busy, busy month for me.

And when the IDC Worldwide Quarterly Disk Storage Systems Tracker for 3Q12 came out last week, I was reading in awe how impressive EMC was at the figures that came out. But most impressive of all is how the storage market continue to grow despite very challenging and uncertain business conditions. With the Eurozone crisis, China experiencing lower economic growth numbers and the uncertainty in the US economic sectors, it is unbelievable that the storage market grew 24.4% y-o-y. And for the first time, 7,104PB was shipped! Yes folks, more than 7 exabytes was shipped during that period!

In the Top 5 external disk storage market based on revenue, only EMC and HDS recorded respectable growth, recording 8.7% and 13.8% respectively. NetApp, my “little engine that could” seems to be running out of steam, earning only 0.9% growth. The rest of the field, IBM and HP, recorded negative growth. Here’s a look at the Top 5 and the rest of the pack:

HP -11% decline is shocking to me, and given the woes after woes that HP has been experiencing, HP has not seen the bottom yet. Let’s hope that the new slew of HP storage products and technologies announced at HP Discover 2012 will lift them up. It also looked like a total rebranding of the HP storage products as well, with a big play on the word “Store”. They have names like StoreOnce, StoreServ, StoreAll, StoreVirtual, StoreEasy and perhaps more coming.

The Open SAN market, which includes iSCSI has EMC again at Number 1, with 29.8%, followed by IBM (14%), HDS (12.2%) and HP (11.8%). When combined with NAS numbers, the NAS + Open SAN market, EMC has 33.5% while NetApp is 13.7%.

Of course, it is just not about external storage because the direct-attached storage numbers count too. With that, the server vendors of IBM, HP and Dell are still placed behind EMC. Here’s a look at that table from IDC:

There’s a highlight of Dell in the table above. Dell actually grew by 4.0% compared to decline in HP and IBM, gaining 0.1%. However, their numbers seem too tepid and led to the exit of Darren Thomas, Dell’s storage group head honco. News of Darren’s exit was on TheRegister.

I also want to note that NAS growth numbers actually outpaced Open SAN numbers including iSCSI.

This leads me to say that there is a dire need for NAS technical and technology expertise in the local storage market. As the adoption of NFSv4 under way and SMB 2.0 and 3.0 coming into the picture, I urge all storage networking professionals who are more pro-SAN to step out of their comfort zone and look into NAS as well. The world is changing and it is no longer SAN vs NAS anymore. And NFSv4.1 is blurring the lines even more with the concepts of layout.

But back to the subject to storage market, is there no one out there challenging EMC in a big way? NetApp was, some years ago, recorded double digit growth and challenging EMC neck-and-neck, but that mantle seems to be taken over by HDS. But both are long way to go to get close to EMC.

Kudos to the EMC team for damn good execution!

Did Dell buy a dud?

In the past few weeks, I certainly have an axe to grind with Dell, notably their acquisition of Quest Software. I have been full of praise of how Dell was purchasing the right companies in the past and how the companies Dell acquired were important chess pieces that will propel Dell into the enterprise space. Until now …

Since its first significant acquisition into the enterprise with EqualLogic in 2008, there were PerotSystems, Kace, Scalent, Boomi, Compellent, Exanet, Ocarina Networks, Force10, SonicWall, Wyse Technologies, AppAssure, and RNA Networks. (I might have missed one or two). To me, all these were good buys, and these were solid companies with a strong future in their technology and offerings. Until Dell decides to acquire Quest Software.

At the back of my mind, why the heck is Dell buying Quest Software for? And for a ballistic USD2.4 billion! That’s hell of a lot of money to spend on a company which does not have a strong portfolio of solutions and are not exactly leaders in their respective disciplines, barring Quest’s Foglight and TOAD. A quick check into Quest’s website revealed that they are in the following disciplines:

 

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The reports are out!

It’s another quarter and both Gartner and IDC reports on disk storage market are out.

What does it take to slow down EMC, who is like a behemoth beast mowing down its competition? EMC, has again tops both the charts. IDC Worldwide Disk Storage Tracker for Q1 of 2012 puts EMC at 29.0% of the market share, followed by NetApp at 14.1%, and IBM at 11.4%. In fourth place is HP with 10.2% and HDS is placed fifth with 9.4%.

In the Gartner report, EMC has the lead of 32.5%, followed by NetApp at 12.7% and IBM with 11.0%. HDS held fourth place at 9.5% and HP is fifth with 9.0%. (more…)

Dell acquires Wyse Technology

There is no stopping Dell. It is in the news again, this time, acquiring privately owned Wyse Technology.

The name Wyse certainly brings back memories about the times where Wyse were the VT100 and VT220 terminals. They were also one of the early leaders in thin client computing, where it required an X Windows server to provide client applications on “dumb” workstations running X Windows Manager. They used to compute with companies like NCD (Network Computing Devices) and HummingBird. My first company, CSA, was a distributor of NCD clients and I remember Sime Darby was the distributor of Wyse thin clients.

Wyse as quoted:

Wyse Technology is the global leader in Cloud Client Computing. The Wyse portfolio includes industry-leading thin, zero and cloud PC client solutions with advanced management, desktop virtualization and cloud software supporting desktops, laptops and next generation mobile devices. Wyse has shipped more than 20 million units and has over 200 million people interacting with their products each day, enabling the leading private, public, hybrid and government cloud implementations worldwide. Wyse works with industry-leading IT vendors, including Cisco®, Citrix®, IBM®, Microsoft, and VMware® as well as globally-recognized distribution and service providers. Wyse is headquartered in San Jose, California, U.S.A., with offices worldwide.

The Dell acquisition of Wyse shows that Dell is serious about Virtual Desktop Infrastructure type of technology (VDI), especially when the client cloud computing space. And the VDI space is going to heat up as many vendors are pushing hard to get the market going.

Dell, for better or for worse, has just added another acquisition that fits into the jigsaw puzzle that they are trying to build. Wyse looks like a good buy as it has a mature technology and the legacy in the thin client space. I hope Dell will energize the Wyse Technology team but while acquisition is easy, the tough part will be the implementation part. How well Dell mobilizes the Wyse Technology team will depend on how well Wyse blends into Dell’s culture.

Server way of locked-in storage

It is kind of interesting when every vendor out there claims that they are as open as they can be but the very reality is, the competitive nature of the game is really forcing storage vendors to speak open, but their actions are certainly not.

Confused? I am beginning to see a trend … a trend that is forcing customers to be locked-in with a certain storage vendor. I am beginning to feel that customers are given lesser choices, especially when the brand of the server they select for their applications  will have implications on the brand of storage they will be locked in into.

And surprise, surprise, SSDs are the pawns of this new cloak-and-dagger game. How? Well, I have been observing this for quite a while now, and when HP announced their SMART portfolio for their storage, it’s time for me to say something.

In the announcement, it was reported that HP is coming out with its 8th generation ProLiant servers. As quoted:

The eighth generation ProLiant is turbo-charging its storage with a Smart Array containing solid state drives and Smart Caching.

It also includes two Smart storage items: the Smart Array controllers and Smart Caching, which both feature solid state storage to solve the disk I/O bottleneck problem, as well as Smart Data Services software to use this hardware

From the outside, analysts are claiming this is a reaction to the recent EMC VFCache product. (I blogged about it here) and HP was there to put the EMC VFcache solution as a first generation product, lacking the smarts (pun intended) of what the HP products have to offer. You can read about its performance prowess in the HP Connect blog.

Similarly, Dell announced their ExpressFlash solution that ties up its 12th generation PowerEdge servers with their flagship (what else), Dell Compellent storage.

The idea is very obvious. Put in a PCIe-based flash caching card in the server, and use a condescending caching/tiering technology that ties the server to a certain brand of storage. Only with this card, that (incidentally) works only with this brand of servers, will you, Mr. Customer, be able to take advantage of the performance power of this brand of storage. Does that sound open to you?

HP is doing it with its ProLiant servers; Dell is doing it with its ExpressFlash; EMC’s VFCache, while not advocating any brand of servers, is doing it because VFCache works only with EMC storage. We have seen Oracle doing it with Oracle ExaData. Oracle Enterprise database works best with Oracle’s own storage and the intelligence is in its SmartScan layer, a proprietary technology that works exclusively with the storage layer in the Exadata. Hitachi Japan, with its Hitachi servers (yes, Hitachi servers that we rarely see in Malaysia), already has such a technology since the last 2 years. I wouldn’t be surprised that IBM and Fujitsu already have something in store (or probably I missed the announcement).

NetApp has been slow in the game, but we hope to see them coming out with their own server-based caching products soon. More pure play storage are already singing the tune of SSDs (though not necessarily server-based).

The trend is obviously too, because the messaging is almost always about storage performance.

Yes, I totally agree that storage (any storage) has a performance bottleneck, especially when it comes to IOPS, response time and throughput. And every storage vendor is claiming SSDs, in one form or another, is the knight in shining armour, ready to rid the world of lousy storage performance. Well, SSDs are not the panacea of storage performance headaches because while they solve some performance issues, they introduce new ones somewhere else.

But it is becoming an excuse to introduce storage vendor lock-in, and how has the customers responded this new “concept”? Things are fairly new right now, but I would always advise customers to find out and ask questions.

Cloud storage for no vendor lock-in? Going to the cloud also has cloud service provider lock-in as well, but that’s another story.

 

Gartner WW ECB 4Q11

The Gartner Worldwide External Controller Based Disk Storage market numbers were out last night, and perennially follows IDC Disk Storage System Tracker.

The numbers posted little surprise, after a topsy-turvy year for vendors like IBM, HP and especially NetApp. Overall, the positions did not change much, but we can see that the 3 vendors I mentioned are facing very challenging waters ahead. Here’s a look at the overall 2011 numbers:

EMC is unstoppable, and gaining 3.6% market share and IBM lost 0.2% market share despite having strong sales with their XIV and StorWize V7000 solutions. This could be due to the lower than expected numbers from their jaded DS-series. IBM needs to ramp up.

HP stayed stagnant, even though their 3PAR numbers have been growing well. They were hit by poor numbers from the EVA (now renumbered as P6000s), and surprisingly their P4000s as well. Looks like they are short-lefthanded (pun intended) and given the C-level upheavals it went through in the past year, things are not looking good for HP.

Meanwhile, Dell is unable to shake off their EMC divorce alimony, losing 0.8% market share. We know that Dell has been pushing very, very hard with their Compellent, EqualLogic, and other technologies they acquired, but somehow things are not working as well yet.

HDS has been the one to watch, with its revenue numbers growing in double digits like NetApp and EMC. Their market share gain was 0.6%, which is very good for HDS standards. NetApp gained 0.8% market share but they seem vulnerable after 2 poor quarters.

The 4th quarter for 2011 numbers are shown below:

I did not blog about IDC QView numbers, which reports the storage software market share but just to give this entry a bit of perspective from a software point of view. From the charts of The Register, EMC has been gaining marketshare at the expense of the rest of the competitors like Symantec, IBM and NetApp.

Tabulated differently, here’s another set of data:

On all fronts, EMC is firing all cylinders. Like a well-oiled V12 engine, EMC is going at it with so much momentum right now. Who is going to stop EMC?

IDC 4Q11 Tracker numbers are in

It was a challenging 2011 but the tremendous growth of data continues to spur the growth of storage. According to IDC in its latest Worldwide Quarterly Disk Storage Systems Tracker, the storage market grew a healthy 7.7% in factory revenues, and the total disk storage capacity shipped was 6,279 petabytes, up 22.4% year-on-year! What Greg Schulz once said was absolutely true. “There is no recession in storage” 

Let’s look at the numbers. Overall, the positions of the storage vendors did not change much, but to me, the more exciting part is the growth quarter over quarter.

EMC and NetApp continue to post double digit growth perennially, with 25.9% and 16.6% respectively. Once again, taking market share from HP and others. HP, with the upheaval that is going on right now throughout the organization, got hit badly with a decline of 3.8%, while IBM held ground of 0.0%. And a data growth of 0.0% when the data growth is at more than 20% is not good, not good at all.

HDS, continuing its momentum with a good story, took a decent 11.6% and a fantastic number from HDS’s perspective. I have been out with my HDS buddies and I can feel their excitement and energy that I have never seen before. And that is a good indicator of the innovation and new technology that is coming out from HDS. They just need to work on their marketing and tell the industry more about what they are doing. Japanese can be so modest.

From the report, 2 things peeved me.

  • IDC reports that NetApp and HP are *tied* at 3rd. This does not make any sense at all! How can they be tied when NetApp has double digit growth, 11.2% market share and a revenue of USD$734 million while HP has negative growth, 10.3% market share and USD$677 million revenue? The logic boggles my mind!
  • They lumped Dell and Oracle into others! And others had a -1.4% growth. I am eager to find out how these 2 companies are doing, especially Dell who has been touting superb growth with their storage story.

Meanwhile, in TOTAL, here’s the table for the Total Worldwide Disk Storage Market share for 4Q11.

Numbers don’t lie. HP and IBM, in both 2nd and 3rd place respectively, are not in good shape. Negative growth in an upward trending market spells more trouble in the long run, and they had better buck up.

In this table, Dell gained and went up to #4 ahead of NetApp and from the look of things, Dell is doing all the right things to make sure that their storage market story is gelling together. Kudos! In fact, NetApp’s position and perception in the last 2-3 quarters have been shaky with Dell and HDS breathing down its neck. There isn’t likely to be significant dent to NetApp by HDS or Dell at this point in time, but having been the “the little engine that could” (that’s what I used to call NetApp) for the last few years, NetApp seems to be losing a bit of the extra “ooomph” that has excited the market in the past.

Lastly, I just want to say that my comments are based on the facts and figures in the tables published by IDC. I remember the last time I commented with the same approach, buddies of mine in the industry disagreed with me, saying that each of them are doing great in the Malaysian or South East Asian market.

Sorry guys, I blog I was see and I welcome you to take me to your sessions to let me know how well you are doing here. I would be glad to write more about it. (Hint, hint).

 

One smart shopper

Dell had just acquired AppAssure earlier this week, adding the new company into its stable of Compellent, EqualLogic, Perot Systems, Scalent, Force10, RNA Networks, Ocarina Networks, and ExaNet (did I miss anyone one?). This is not including the various partnerships Dell has with the likes of CommVault, VMware, Caringo, Citrix, Kaminario etc.

From 10,000 feet, Dell is building a force to be reckoned with. With its PC business waning, Dell is making all the moves to secure the datacenter space from various angles. And I like what I see. Each move is seen as a critical cog, moving Dell forward.

But the question is “Can Dell deliver?” It had just missed out Wall Street’s revenue expectation last week, but the outlook of Dell’s business, especially in storage, is looking bright. I caught this piece in Dell’s earnings call transcript, which said:

"Server and networking revenue increased 6%. Total storage 
declined 13% while Dell-owned IP storage growth accelerated 33% 
to $463 million, led by continued growth in all of our Dell IP 
categories including Compellent, which saw over 60% sequential 
revenue growth."

Those are healthy numbers, but what’s most important is how Dell executes in the next 12-18 months. Dell has done very well with both Compellent and EqualLogic and is slowly bringing out its Exanet and Ocarina Networks technology in new products such as the EqualLogic FS7500 and the DR4000 respectively. Naturally, the scale-out engine from Exanet and the deduplication/compression engine from Ocarina will find these technologies integrated into Dell Compellent line in the months to come. And I am eager to see how the “memory virtualization” technology of RNA Networks fits into Dell’s Fluid Data Architecture.

The technologies from Scalent and AppAssure will push Dell into the forefront of the virtualization space. I have no experience with both products, but by the looks of things, these are solid products which Dell can easily and seamlessly plug in to their portfolio of solutions.

The challenge for Dell is their people in the field. Dell has been pretty much a PC company, and still is. The mindset of a consumer based PC company versus a datacenter-centric, enterprise is very different.

Dell Malaysia has been hiring good people.These are enterprise-minded people. They have been moulded by the fires of the datacenters, and they were hired to give Dell Malaysia the enterprise edge. But the challenge for Dell Malaysia remains, and that is changing the internal PC-minded culture.

Practices such as dropping price (disguised as discounts) at first sign of competition, or giving away high-end storage solutions at almost-free price, to me, are not good strategies. Selling enterprise products with just speeds and feeds and articulating a product’s features and benefits, and lacking the regards for the customer’s requirements and pain points are missing the target all together. This kind of mindset, aiming for a quick sell, is not Dell would want. Yes, we agree that quarterly numbers are important, but pounding the field sales for daily updates and forecasts, will only push for unpleasant endings.

Grapevines aside, I am still impressed with how Dell is getting the right pieces to build its datacenter juggernaut.

Oracle Bested the Best in Quality

I have been an avid reader of SearchStorage Storage magazine for many years now and have been downloading their free PDF copy every month. Quietly snugged at the end of January 2012′s issue, there it was, the Storage magazine 6th annual Quality Awards for NAS.

I was pleasantly surprised with the results because in the previous annual awards, it would dominated by NetApp and EMC but this time around, a dark horse has emerged. It is Oracle who took top honours in both the Enterprise and the Mid-range categories.

The awards are the result of Storage Magazine’s survey and below is an excerpt about the survey:

 

In both categories covering the Enterprise and the Mid-Range, the overall ratings are shown below:

 

 

Surprised? You bet because I was.

The survey does not focus on speeds and feeds or comparing scalability or performance. Rather, the survey focuses on the qualitative aspects of the NAS products. There were many storage vendors who were part of the participation lists but many did not qualify to be make a dent of what the top 6 did. Here’s a list of the vendors surveyed:

 

The qualitative aspects of the survey focused on 5 main areas:

  • Sales force competency
  • Initial Quality
  • Product Features
  • Product Reliability
  • Technical Support

In each of the 5 main areas, customers were asked a series of questions. Here is a breakdown of those questions of each area.

Sales Force Competency

  1. Are the sales force knowledgeable about their products and their customer’s industries?
  2. How flexible are their sales effort?
  3. How good are they keeping the customer’s interest levels up?

Initial Product Quality

  1. Does the product need little or no vendor intervention?
  2. Ease of installation and ease of use
  3. Good value for money
  4. Reasonable requirement from Professional Service or needing little Professional Service
  5. Installation without defects
  6. Getting it right the first time

Product Features

  1. Storage management features
  2. Mirroring features
  3. Capacity scaling features
  4. Interoperable with other vendor’s products
  5. Remote replication features
  6. Snapshotting features

Product Reliability

  1. Vendor provide comprehensive upgrading procedures
  2. Ability to meet Service Level Agreement (SLA)
  3. Experiences very little downtime
  4. Patches applied non-disruptively

Technical Support

  1. Taking ownership of the customer’s problem
  2. Timely problem resolution and technical advice
  3. Documentation
  4. Vendor supplies support contractually as specified
  5. Vendor’s 3rd party partners are knowledgeable
  6. Vendor provide adequate training

These are some of the intangibles that customers are looking for when they qualify the NAS solutions from vendors. And the surprising was Oracle just became something to be reckoned with, backed by the strong legacy of customer-centric focus of Sun and StorageTek. If this is truly happening in the US, then kudos to Oracle for maximizing the Sun-Storagetek enterprise genes to put their NAS products to be best-of-breed.

However, on the local front, it seems to me that Oracle isn’t doing much justice to the human potential they have inherited from Sun. A little bird has told me that they got rid of some good customer service people in Malaysia and Singapore just last month and more could be on the way in 2012. All this for the sake of meeting some silly key performance indices (KPIs) of being measured by tasks per day.

The Sun people that I know here in Malaysia and Singapore are gurus who has gone through the fire and thrived and there is no substitute for quality. Unfortunately, in Oracle, it’s all about numbers, whether it is sales or tasks per day.

Well, back to the survey. And of course, the final question would be, “Is the product good enough that you would buy it again?” And the results are …

 

Good for Oracle in the US but the results do not fully reflect what’s on the ground here in Malaysia, which is more likely dominated by NetApp, HP, EMC and IBM.