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Video Interview: Werner Vogels, CTO Amazon on Virtualization and the VC Threat

July 31, 2008 by Toon Vanagt 8 Comments

At the GigaOM Structure08 conference in San Francisco, we had the opportunity to question Amazon’s CTO Werner Vogels on his virtualization experience, while building the Amazon cloud. He confirmed Amazon Web Services are still powered by Xen hypervisors.

It is remarkable to hear the CTO of a multinational openly thank the open source community for their active support on Xen and hear him claim this to be the main reason for having chosen Xen as a crucial Amazon cloud-enabling building block.


Werner Vogels CTO Amazon.com from Toon Vanagt on Vimeo.

As we reported earlier, Amazon is also very open on its performance and welcomes independent companies to measure and report on parameters for public virtual computing facility such as security, availability, scalability, performance and cost.

Werner finished our video interview by explaining why cloud computing is even disruptive outside of the datacenter and transforms unexpected industries. Venture capitalists seem upset about side effects, such as start-up funding independence, as these fast growing tech companies are no longer in need to burn lots of VC-money on hardware platforms and technologies upfront. They can now scale their offering dynamically, driven by organic growth, while generating the necessary revenues to cover the extra cloud cost.

At Virtualization.com we like to think that “shift happens” and look forward to the upcoming VC-riots on Sand Hill Road against these unthankful self-sufficient start-ups 🙂

A full transcript of the interview is below. If you are interested in Amazon Web Services, you might also want to participate in our contest to win a free book, dedicated by Werner Vogels.


(00:00) Werner Vogels, welcome on Virtualization.com. You are the system administrator of a small bookshop. Could you tell us something more about yourself and on how you virtualized your infrastructure to such a dimension.

“I am the Chief Technology Officer for Amazon.com and I am responsible for the long term vision for technology within Amazon as well as how we can develop radically new technologies to support that business. But also the kind of businesses Amazon could move into, because of the unique technologies that we have developed.”

(00:33) Werner, I am a bit puzzled, because I did an interview with Xen founder Ian Pratt and he told me that Amazon is using this extensively. In your keynote here at the GigaOm Structure08 conference you just claimed you’re using no more third party applications. Did you refer to Xen in that respect?

“My remark about third parties applications was more about our enterprise stuff, where you look at databases and middleware… We do use some third party software and Xen is one of those. But we use them in the mode everybody in this world is using them. We don’t put these types of technologies to the extreme, because we want to make sure their vendors can support us, in a way they support any other customer they have. The remark I made this morning was more about when you really start pushing technology to the edge, we cannot blame vendors for not being able to support us.”

(1:30): How hard was it to integrate the Xen hypervisor into your cloud platform?

“I think Xen is a great product. It is easy to use. But most importantly is the very active community around it. I would not say many ‘issues’ around using Xen, but ‘challenges’ are addressed there with the things every virtual machine has to deal with. Things such as: I/O-issues, guaranteed scheduling issues, domain zero security concerns,…The community out there is very helpful. That was a very big reason for us in selecting Xen.”

(02:15) With “Security”, you just mentioned one of the big Virtualization issues at stake. How do you make absolutely sure that VM’s are isolated in a mixed customer cloud environment? Is Amazon using VLans to do achieve that or did you design proprietary solutions or techniques you can share with the community?

“It is our policy not to discuss specific security techniques. Except for that we have done extensive software development. To make sure that we can audit, maintain and manage the security issues.”

(02:45) You see this as one of your competitive advantages?

I like to believe that security is one of the main concerns and you have to address those upfront. There is no excuse. In this world of cloud computing the most fundamental promise needs to be that it is secure!

(03:10) Yesterday CloudStatus was launched and I imagine you are aware of this? Is Amazon happy about that?”

Absolutely, we love them. But I want to take a step back there. It is very important with things like CloudStatus, that they are actually reporting on things that make sense for our customers. So we are looking forward to working with them and to bring them into contact with our customers and to make sure that the things they are reporting on are useful to our customers…”

(03:40) You would like to advice CloudStatus on the Amazon parameter set they should be reporting on?

“It is up to them off-course. This is not going to be a winner take all business as there will be many cloud providers in the future. As I mentioned in my talk, we will be measured on security, availability, scalability, performance and at cost. So it is very important that we have independent companies measuring these kind of things.”

(04:18) When you talk about independent companies and open alternatives, one of the general concerns remains vendor lock-in. With Eucalyptus there is an open source equivalent, which sort of reverse engineered your APIs (Application Programming Interfaces) and is compliant with Amazon. Do you think that these options of knowing you can in-source your cloud if needed, helps to comfort prospective companies in selecting a cloud provider?

“Let’s first start of with the notion of vendor lock-in. As I mentioned in my talk, I like to believe that Amazon works very hard to provide APIs, which are so simple that there is hardly any vendor lock-in. We use standard techniques to give people access to our APIs. If you look at Eucalyptus, their need came out the schools, involved in high performance computing, on the one hand want to use the public cloud for doing parallel computing, but on the other hand one to keep a similar interface internally. I think they have been very successful to actually make sure that all these schools  adopt this same model.”

(05:32) A last question on your disruptive cloud platform. Could you explain how this technology also disrupts start-up funding cycles and the move from the CAPEX to OPEX expense models? [A capital expenditure (CAPEX) is the cost of developing or providing non-consumable parts for a product, service or system. Its counterpart an operating expense (OPEX) is an on-going cost for running that product]

“Last night I was at a reception, where a venture capitalist walked up to me, who said he hated Amazon, because we killed his business. After we talked for a while, he actually had to confess they also have to adapt to this new world. Where in the old world, they could lock themselves into a company; get their hand on a large part of the equity, because those companies had to spend a lot of money on resources upfront. What we see now is that the availability of these services makes companies start to think differently. Before start-ups maybe had the idea that the only way they could be successful was to have a very big exit. For that they needed a lot of hardware and lots of investments. Many companies based on the fact that these services are available are now moving to a model, where they think they can build a sustainable business. Maybe we can build great products and charge our customers for it. And if you then attract more customers, you spend more on the (development) of these services. Which is just fine as your income follows your customer needs.”

Amazon

Filed Under: Funding, Interviews, People, Videos

Seanodes Raises $2.4 Million From OSEO

July 23, 2008 by Robin Wauters 1 Comment

Seanodes, developer of what they call “Shared Internal Storage solutions”, today announced it has received about $2.4 million in funding from OSEO, France’s national agency for industrial innovation, in the form of a no-interest loan to support ongoing technology development and company growth.

“This additional funding will help to reinforce our R&D team and investments enabling us to accelerate the porting of our solution on VMware and Microsoft’s platforms,” said Christophe Guittenit, CTO of Seanodes.

Exanodes, the Seanodes software platform, allows virtualized infrastructure applications to marry unused disk space found in many server and storage clusters with existing or additional dedicated storage hardware to provide a powerful shared storage pool. Exanodes abstracts the storage layer from the physical devices enabling users to select the hardware and connectivity options that best suit their environment, today and tomorrow.

Seanodes

Filed Under: Funding Tagged With: Exanodes, Funding, investment, OSEO, Seanodes, Seanodes Exanodes, storage virtualization, virtualisation, virtualization

Endeavors Unable To Secure Funding, Suspends Shares

July 22, 2008 by Robin Wauters Leave a Comment

These are troubled times for application virtualization and streaming startup Endeavors Technologies, who recently released its Application Jukebox and split the offer into 3 separate editions. Apparently, the company has been unable to secure a large funding round after exploring a number of possible options, resulting in a suspension of ordinary shares which have stopped trading on the London Stock Exchange.

David Lee, Chairman of Endeavors commented:

“The continued decline in institutional confidence has undermined our best efforts to satisfactorily conclude the proposed re-construction of the company and our inability to attract the relevant level of investment appropriate to the company’s phase of development is deeply disappointing. We are exploring all available options”

A further announcement is expected to be made in due course.

[Source: Virtualization.info]

Filed Under: Funding, News Tagged With: application virtualization, David Lee, Endeavors, Endeavors Technologies, Funding, London Stock Exchange, problems, shares, suspension of shares, trouble, virtualisation, virtualization

Xeround Raises $16 Million In Second Round

July 11, 2008 by Robin Wauters Leave a Comment

Xeround, an Israel-based startup in the database virtualization area, today announced it has closed a $16 million round of Series B funding led by Ignition Partners and Trilogy Partnership. Also participating in the round were existing investors Benchmark Capital and Giza Venture Capital. The newly acquired funds will be used to increase sales and marketing activities as well as to step up research and development to advance the product roadmap.

Xeround has developed a live, scalable Intelligent Data Grid, a cloud computing database with data virtualization capabilities. With Xeround’s offerings, applications no longer need to know where data resides or if it is being managed with relational, hierarchical or object models.

“We chose to raise a round of strategic funding to help us broaden our reach in both North America and Europe and to invest further in sales, marketing and product development,” said Charlotte Yarkoni, CEO of Xeround, Inc. “We believe our business model and approach to data management will continue to provide a truly unique market offering that delivers the performance, scalability and flexibility to support numerous applications in the telecommunications industry and beyond.”

[Source: Blocks and Files]

Filed Under: Funding Tagged With: Funding, IDG, Intelligent Data Grid, second round, series B, Series B funding, virtualisation, virtualization, Xeround, Xeround IDG, Xeround Intelligent Data Grid

rPath Raises $10 Million More

June 24, 2008 by Robin Wauters Leave a Comment

rPath, which got on our radar thanks to some high-profile customers, today announced that the company has closed a $10M round of venture financing. The Series C round was led by rPath’s existing backers, General Catalyst, North Bridge Venture Partners and Wakefield Group. The company says it plans to use this new capital to increase its leadership in enabling cloud computing.

rPath

“As the demand for cloud computing continues to explode, rPath is in a unique position to drive adoption as the fastest and most scalable approach for delivering applications to cloud computing environments such as Amazon’s Elastic Compute Cloud (EC2), Citrix’s XenServer, and VMware’s Virtual Infrastructure,” said Billy Marshall, rPath founder and CEO.

Since the beginning of 2008, rPath has seen a surge of interest in its technology resulting in an increase of over 100% in new customers, including 3SP, Avinity Systems, CERN, Cynapse, Department of Energy, DigitalStakeout, Firescope, VIP Tone and Webalo.

[Source: Private Equity HUB]

Filed Under: Funding Tagged With: financing, Funding, General Catalyst, North Bridge Venture Partners, rPath, Series C, venture capital, venture financing, virtualisation, virtualization, Wakefield Group

Parascale Raises $11+ Million In Series A Funding For Linux Cloud Storage

June 23, 2008 by Robin Wauters Leave a Comment

Parascale, a provider of cloud storage solutions for rich media content in traffic-intensive applications, today announced that it has closed an $11.37 million Series A financing round led by venture capital firms Charles River Ventures and Menlo Ventures.

Parascale

Parascale plans to use the funding for product development and marketing initiatives in preparation for the launch of Parascale Cloud Storage (PCS), an application that aggregates disk storage on multiple standard Linux servers providing one highly scalable storage cloud, accessible via standard file access protocols.

According to the news release, Parascale has developed a new class of storage solutions designed to support the wave of content-intensive applications, including video-on-demand, digital document archiving, scientific data analysis, video surveillance and medical image remote diagnosis among others. The company’s PCS software is patented technology which automatically and transparently migrates and replicates files among storage nodes to balance and optimize performance – without interruption in client access.

Parascale PCS

“With Charles River Ventures and Menlo Ventures, we have the two premier investors in the storage space supporting our company,” said Sajai Krishnan, Parascale CEO. “In the very specific technology domain where Parascale operates , clustered storage, Charles River’s success with EqualLogic has been the best clustered SAN-storage exit. Menlo’s investment in Spinnaker Networks has been arguably the best clustered NAS-storage exit. It is an honor to have Bruce Sachs of Charles River and John Jarve of Menlo on our board. Their voting with their wallets in leading the Series A round, is an affirmation of Parascale’s team, business model and opportunity.”

[Source: ByteandSwitch]

Filed Under: Funding Tagged With: Charles River Ventures, cloud storage, financing, Funding, linux, Linux cloud storage, Menlo Ventures, Parascale, Parascale Cloud Storage, Parascale funding, Parascale PCS, PCS, Series A funding, virtualisation, virtualization

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