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Data-centre software - Progress without profits

2015-09-24 07:53:18

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.