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A flock of startups is making cloud computing faster and more flexible, but
most of them will not survive
Sep 19th 2015 | SAN FRANCISCO
WHEN my hair gets long, I kind of look like him. Matei Zaharia jokingly
evades the question about what he thinks of being compared to Bill Gates. But
the 30-year-old Romanian-Canadian computer scientist is indeed reminiscent of
Microsoft s former boss in his early days: he is considered one of the most
brilliant geeks of his generation; he has developed an exciting new technology,
called Spark, to crunch data; and he is one of the founders of a promising
startup, Databricks.
Yet in an important way the two men are different: Mr Zaharia has no interest
in making billions. After spending two years helping get Databricks off the
ground, he has recently reduced his involvement with the firm and become a
professor at the Massachusetts Institute of Technology. I like to work on
long-term and risky projects something you can do at university, but not at
startups, he explains.
This combination progress without profits makes Mr Zaharia a poster-child for a
branch of the IT industry that is crucial to many websites and apps, but gets
much less attention than the latest smartphone or the next social-media
sensation. Databricks, and a bunch of other startups, provide software that
makes data centres run more efficiently and lets them handle vast amounts of
data.
The operators of the biggest data centres, such as, say, Amazon or Facebook,
already have this sort of software installed. But the next stage, which the
startups are concentrating on, is to make it sufficiently user-friendly for
non-tech businesses. The sector is improving rapidly, but may never make anyone
filthily rich even those who are keener than Mr Zaharia on money.
The model for this sort of software was virtualisation, the idea of splitting a
computer into several virtual machines , each with its own operating system
and programs. Originally developed for mainframe computers, virtualisation
became popular in the late 2000s as a way of making corporate data centres more
efficient by spreading work around servers that were being under-used. The
company that pioneered this, VMware, has grown rapidly.
A startup called Docker is now seeking the same sort of success with
containerisation . It slices big and complex online applications into more
manageable parts, which can be handled separately, meaning that small teams of
programmers can focus on improving the code in one container. Upgrades can be
installed at any time without the need to wait until a new version of the
entire application is ready.
Since containers make developers much more productive, Docker s software has
proved hugely popular. The firm claims there have been more than 800m downloads
since the program was first released in March 2013. Some of Docker s customers
have already made it an important part of their software supply chain. Gilt, an
e-commerce site, for instance, used containers to cut seven big applications
into 400 smaller ones.
Orchestration is perhaps the most important addition to this class of
software. Whereas virtualisation carves up one computer into many,
orchestration makes a bunch of machines (a cluster ) look like one big
computer by moving containers around between them. In July Google made public
its version of the technology, called Kubernetes, so others can use it. CoreOS,
another startup, has added a version to its software package. Mesosphere, which
makes an operating system for data centres, has integrated Kubernetes into it.
Firms not only need help with running and updating their applications, they
also need assistance in managing their growing piles of data. This is the remit
of Hadoop, a database program with an accompanying set of number-crunching
tools. The package also originated at Google, but is now marketed by firms such
as Cloudera and Hortonworks. The software lets companies create and analyse
data lakes , vast repositories for all kinds of information.
Sifting through these digital waters is often slow, which is why Databricks Mr
Zaharia developed Spark, a sort of spreadsheet for big piles of data. It allows
these to be handled in real time as the information comes in, for instance,
from websites and sensors. Although it is only a few years old, Spark has
already attracted a following of hundreds of developers and users. In June IBM
announced that it would put its weight behind the software.
Their popularity notwithstanding, it is not clear whether these startups will
ever become good businesses. In contrast to software firms in the past, they
will not make money by selling copies of their programs. In most cases these
are open-source , ie, the software s creators publish the source code, so
anybody can work with it. They do so out of a mixture of altruism and a belief
that the product, and thus the market for it, will develop quicker if people
are free to collaborate on it.
Instead, the startups are looking to make a living by charging for add-ons of
various sorts. Hortonworks offers subscriptions for things such as
troubleshooting and updates. Docker and CoreOS are planning to charge for
management tools. Databricks has turned Spark into a set of web-based services
which, for instance, allow subscribers to visualise data.
Even so, it will be tough to survive in competition with giants like Amazon and
Microsoft, which are offering comprehensive cloud-computing services. What is
more, many potential customers may prefer to get all the pieces from one firm
rather than stitching together software from startups, says Simon Crosby, a
virtualisation veteran who works for Bromium, a provider of online-security
software.
The current plethora of data-centre-software startups is likely to shrink as
they run out of venture capital. Some firms will be gobbled up by established
software firms, such as VMware and Red Hat. But they may be remembered fondly
by data-centre managers for having made computing cheaper, faster and more
flexible.