Hosting Firms Have New Answer to 'I Want My Own Server'

Virtualization is great and all, but sometimes a customer just wants their own server. For many companies, however, off-the-shelf servers are too big, too powerful and too hot-making the typical data-center fare too costly. t's a problem that faced Dell's in-house skunkworks, the Data Center Solutions (DCS) group, last year. Their solution? Build a compact server based on the Via Nano processor -- a low-power, low-cost chip found in increasingly popular netbooks, says Todd Brannon, market development manager for Dell's DCS. The mini-server, known as the XS11-VX8 or Fortuna, almost fits in a 3.5-inch floppy case and requires a fraction of the power of a typical enterprise server.
"The servers we typically build for our mainstream IT customers are too much for these applications," Brannon says. "What we are finding is that the hardware requirements are very different for these massive 'hyperscale' environments."
While Brannon is quick to stress that the server is a custom design only suited for a limited market, Dell is not alone in pursuing the low-power market.
In February, Microsoft showed off a data-center cabinet filled with netbook processors that could be run using a standard AC outlet. The company demonstrated the solution to hardware makers as a possible solution to cut back on energy consumption in data centers.
The problem for many companies is that server performance, and power consumption, has leaped ahead in the past five years, improving by a factor of 11, according to Dell's Brannon. For companies that make heavy use of virtualization, the gains mean more efficient computer resources. However, for customers who want to host a single application on a single server, today's run-of-the-mill servers are too high-powered.
"If you are a managed hosting company, the workloads on those servers have not gone up 11 times, so they have a problem that, if they buy an enterprise-class system, they are way over-provisioned," Brannon says.
Dell fit 12 Fortuna servers in a 2U rack, allowing for a higher density of servers per data-center cabinet, without appreciably increasing the power consumed.

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Organisations 'turning to outsourced managed hosting'

In times of economic uncertainty, managed hosting solutions become more popular among large organisations, it has been asserted.

According to IT industry analyst IDC, users' preference for predictable periodic expenses and potential cost savings from vendors' economics of scale in a downturn tends to drive take-up of outsourcing and managed services.

Adam Lee, IDC associate market analyst for the New Zealand IT services market, commented: "With some skin left in the game, vendors can better convince customers of their commitment towards fulfilling service level agreements. Outcome-based contracts and price-per-mainframe capacity are some of the examples."

The company went on to say increasing pressures on vendors to help their customers ride through the economic storm is leading to a preference for discrete outsourcing over enterprise-wide information system outsourcing.

Earlier this week, IDC stated the popularity of open-source managed hosting solutions is on the rise.

The group added that vendors of open source enterprise applications are attracting equity investments and experiencing growth rates are typically above 20 per cent each year. 


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