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The Economics of Data

Influencer conversations Data Economics: Driving application and business value to your bottom line

#dataeconomy @furrier @dvellante @jeffreyfkelly @jeffjonas

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vaughn stewart8

@StorageDavidV i agree throwing flash makes everything faster - but thats not the end game nor sustainable. It has to be affordable, manageable and able to scale.

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right storage medium for the right job

Karla Magana Renoud Agree! Flash is not the ONE solution for storage, you need to establish your business objective/need and evaluate the best approach.

scale out and scale up baby!!!

you shouldn't separate business outcome/vale with the technology (and its associated costs) that enables it

Agreed, the economics have to make sense. The number of environments where the economics point to flash is accelerating.

Guillermina Sainz

Easy w/ automatic migration tools (Easy Tier), it only moves highly frequently used data to high performance storage like flash,storing the rest on less $$ devices

A lot of infrastructure conversations... how is risk (security, privacy, provenance) better managed to enable the data economy? and how risky are closed information environments? #unlockdatavalue

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Let it free and good things will happen

Dan Hushon not sure that #Free is the answer for enterprises nor economies which are based upon value exchange

sure but is free an economy?

great question - with new analytics capabilities you can infer a lot about someone - e.g. race, religion, political persuasion...doubt organizations can self-police

The experience of the internet would suggest that "let it free", while superficially appealing, is not a long term solution

can you explain your thinking on closed information environments and risk?

Dan Hushon a lack of a coherent strategy to address risk in effect closes the economic opportunities

You can't talk about data and infrastructure alone. Must consider applications into the mix. Can change the dynamics of both dramatically.

Dan Hushon agree fully which is why the #dataeconomy is certainly benefited by infrastructure, but not necessarily driven by it!

IMO. we need a marketplace... to enable value exchange, non-repudiation and even a DNS where D = Data to find stuff (ala common financial instruments)

Will data value have a "multiplicative effect" - i.e. data creating value for other data? How so?

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yes - #BigData becomes exponentially more valuable as you combine data sources -analysis of transactional data + social data for example provides more value than either data source alone

vaughn stewart10

Capacity efficient flash provides massive performance along with significant benefits in reducing datacenter requirements for power & rack space.

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Good point, putting Real-time Compression in front of Flash can provide significant savings!

Dave Vellante help us squint thru the urinary olympics of compression on flash - is it in, on or does dedupe cover it?

Chris Saul Dedupe and compression are really different ways of doing more or less the same thing. Reducing data volume.

DC pwr efficiency is huge...but not widely important for IT. It is for facilities. (i.e.: Gap)

Dave Vellante How many CIOs see the power bill - has that number increased in the past 5 years?

Tim Crawford Not nearly enough CIOs are responsible for DC pwr.

Pete Johnson #dataeconomy Power efficiency has a pretty big impact on DC density, though, not just the power bill

Tim Crawford Should have couched that stmt w/ Internal DCs. External Colo brings pwr more visibly to CIO.

Jeff Frick Not only the bill, but sometimes, you just can't get any more power to a legacy location.

Assuming costs keep decreasing, how good is Flash for long term / cold storage? What are the concerns, challenges?

Tony Pearson Flash is 300x more expensive than tape, I don't see why anyone would consider Flash for long-term storage!

Jeff Frick beyond cost (which is very important) I was more curious from a technology concern perspective.

Chris Saul Given density and low (or zero) power consumption, this is clearly a direction. We're not there yet and there are some longevity issues but we will get there for sure.

Hans De Leenheer your question does make sense! as silicon requires a lot less power comsumption it could make sense looking at high deduplication on silicon instead of spinning rust for long term. Comparing to a non-random-io model (tape) is not a question IMO

Hans De Leenheer in this there is a diff between long term retention for search and restore or archival for never-to-retrieve again. last part can be done on tape :D

That's the power of software defined storage. Flash can instantly benefit from any kind of advanced efficiency capability in a software defined world.

How important are open APIs to the data economy?

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viewed as extremely important for innovation to meet changing customer demands/requirements

Dave Vellante AWS has turned the data center into an API - I see open platforms (e.g. Openstack) as a way to replicate this powerful concept

HUGE, enables access to entire pools / lakes / oceans / rivers of new data to cross correlate and integrate with traditional stores. Tie it with Cloud, and it's easy to capture as well, reducing integration challenge.

critical - the larger #industrialinternet and the potential societal benefits are only possible with open and integrated systems and data http://wikibon.org/wiki/v/The_Industrial_Internet_and_Big_Data_Analytics%3A_Opportunities_and_Challenges

Do you mean "open standard" or "open source"? They are not exactly the same thing.

Dave Vellante How about a common API connected to a rich backend platform- e.g. AWS

APIs are the future and table stakes imho and data exchanges will be the next big thing (again)..old win in new bottle

#dataeconomy Do closed APIs even exist any more? Saw that all the time in the late 90s, not so much now

vaughn stewart10

Capacity efficient flash proxies massive performance along with significant benefits in reducing datacenter requirements for power & rack space.

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what about the "top line" value of new apps developed for flash - do you see that today or future?

getting more performance while solving density and power/cooling is critical hence big web scale guys build their own

@lleung says http://twitter.com/lleung/status/403216296025661440

RT @vStewed: @dvellante Move an app from disk to flash & it will run 5-10X faster. Build an application for flash & it’ll run 100X faster #…

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Sterling Mah Ingui

Using IBM FlashSystem a client deployed new apps linked to their banking services including a CRM-style application that helps in-branch tellers understand the complete relationship with the customer

Is there a perception that flash storage is still too expensive - I see it changing but what do people think?

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Karla Magana Renoud

it can seem that way if you just compare unit price, but if you factor in all the benefits at the overall solution level, you will see its very cost-effective

Jeff Kelly yes need to look at big picture - if flash allows you to serve customers better leading to more revenue, does that offset the price of flash over disk? could be other metrics besides revenue, namely customer satisfaction, to consider.

That perception is changing fast. Royal Caribbean Cruise lines is moving to all-flash for many of their applications very fast. Just one of many examples.

Dave Vellante ebay talks about moving to all flash

flash is more expensive. but if you are providing value with the increased performance, the biz case is "easy".

Not if you understand how to assess its cost...TCO actually goes down when you look at it holistically. How much does excess in terms of SW, servers, scaled out drive infrastructures really cost you versus the base cost of a flash system?

Most focus on performance of flash, but performance alone isn't enough for wide adoption. When one reduces the price (via storage savings), Flash can become ubiquitous #dataeconomy

Tony Pearson If you factor in the savings in reduced software licenses, electricity and floor space, Flash can be lower price than disk today.

Jeff Frick #Inevitable ? - with the passing of each day.

With IBM Watson now in the "Cloud" anyone traditional or startup can take advantage of this.

Isn't it safe to assume Moore's Law, and develop new applications with that in mind. Think that's part of AWS success, they know that core price / performance ratio continues to decline. Build with that assumption in place.

Tony Pearson Yes, but disk and tape are also dropping in price, the ratio is still important.

however, you have to put the thought into the biz case to justify. it's not "i want flash because..."

here's the Wikibon research looking at how flash lowers cost for the rest of the cost stack http://wikibon.org/wiki/v/Virtualization_of_Oracle_Evolves_to_Best_Practice_for_Production_Systems

Yes, there is a perception that flash is expensive. But it is directly related to the need (or not) for the performance/ value.

it is not about dollars per GB; it is about dollars per IOPS

Tim Crawford ...and if the application needs the perf/ justify the cost.

Dave Vellante and it's about business value - independent of $/XX

DRAM cache is also expensive, but nobody seems to question that either

John Furrier http://twitter.com/vStewed/status/403216429429698561

@az990tony It has to be the right combination of storage savings technologies to enable universal adoption #dataeconomy

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Just because I want/ can afford a Ferrari, doesn't mean I need it.

Stuart Miniman the environments that can't benefit from some flash are continuing to shrink http://wikibon.org/wiki/v/Hybrid_Storage_Poised_to_Disrupt_Traditional_Disk_Arrays

Tim Crawford Yes @stu, but do I need it? It's a value question. The Ferrari still goes faster.

Jeff Frick But in this case, is the Ferrari also more Toyota like in its reliability and maintainability?

@vStewed says http://twitter.com/vStewed/status/403216855105421312

@tcrawford @dvellante Surprisingly >1/2 of my engagements are driven by power & rack space needs - not performance @PureStorage #dataeconomy

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Jeff Frick @vStewed Interesting, shifting value priorities. That was also the focus of @davecapp 's talk, how do i keep growing my data, when my datacenter can't, for Space and Power limitations

How will "traditional" enterprises adopt #BigData technology considering their legacy environments? What role will cloud play in the data economy?

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I hope not by "paving the cowpath" but rather re-thinking their entire data strategy

#dataeconomy If they stick with their legacy envs, they won't. If you can deal with data gravity issues, #BigData = great fit for public cloud. Spin up your cluster, run your job, turn it off, capex budget smiles 8)

If the data economy requires massive scale is the SW-defined Data Center a fundamental part of the story? #SWGAI

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Absolutely. Putting a flash in a software defined environment allows for instant added value for capabilities like compression which can save a lot of money and allow more data to be put in flash.

yes; SW defined platforms help to transform the data center into a virtualized, efficient, simple to manage infrastructure

at #df13 Salesforce introduces Internet of Consumers vs Internet of Things.. Moving to what we coined as the Crowd Consumer how do business build a data strategy from ground up? #cloud #mobile #social infrastructure

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Start with the data I would say...what are the data sources? What's your data architecture? Who is in charge of data strategy? etc.

Chris Saul You make a good point. Internet of consumers or things does depend very much on what are the key data sources to YOUR business. So start with that thought

Hasn't the lead always been the Internet of Consumers? (at least after the visualization of the browser experience)

Chris Saul It HAS been but that was before interconnected things, which change the dynamic a lot.

Jeff Frick That, and I think the change to interconnected API based apps, instead of closed apps, use the same things/data in new innovative combinations to solve different questions, create and deliver new value - #Innovation

John Furrier I agree with Chris Saul but not interaction data and machine data brings new level of instrumentation and notification #InternetOfNotifications cc #df13

Are you asking how to deploy greenfield when the rest are trying to shoe-horn this into their existing IT infrastructures?

John Furrier lots of hype at events like #df13 so CIOs have to build it with legacy in mind..so legacy is the #1 question we get

TheTipping Point by Malcolm Gladwell ow.ly/r17P5 explains that the focus should be on key influencers that are socially connected

What was the Internet before it was the "Internet of Consumers"?

John Furrier Internet of PCs and terminals

Need to understand who your customers are, what value will they get out of the data you can provide, before you define the strategy

many smart folks in the crowd say that we need to understand the different "properties of data" .. @furrier quoted the term years ago "data chemistry"

John Furrier at #df13 i used the term data chemistry to talk about the role data has an the many properties it has in context to apps and other machine learning - multidimensional puzzle pieces cc @jeffjonas