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by qthrul
4247 days ago
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Disclaimer: VCE employee here. VCE is an EMC Federation Company [tm] with investments from Cisco and VMware. > We would LOVE getting out of that part of our business [...] That's a common theme when I meet with some unique companies that are still building out their own stacks of kit and just enough software to keep their consumption patterns consistent. It is about necessity some years but often comes down to the assembly line methods and sunk investments. I'm curious how much variance you guys have / tolerate or if you ever see reaching VMI (maybe you are already there?) procurement levels? Market wise, it isn't too outlandish to expect many of the "super highly reliable" options to have a future that is a spectrum of DIY + software (100% roll your own) all the way up to a full experience (status quo). Today, that roll your own option is a progression of hardware compatibility lists to reference architectures but there are only a few companies that go beyond that. I'm curious to hear how much you see as "too much money" to keep your team from getting out of the rack/stack/burn/test/QA/QC/deploy. Do you plow the "too much money" less "build pods cheaper" into a value that can be compared an opportunity cost for the labor involved? |
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Early on the "too much money" would have been maybe a 20 percent premium. But now that we have scaled up and have all the teams in place, "too much money" is probably even a 1 percent premium. In other words, if we moved to a commercial solution now it would be because we actually SAVE money over using our own pods. That shouldn't be impossible - a commercial operation could make their profit margin out of a variety of savings, like maybe their drives fail less often than ours do because they do better vibration dampening. Or since this is "end-to-end cost of ownership" if the commercial system could save half of our electricity bill by being lower power then they can keep 100 percent of that.
We have a simple spreadsheet that calculates the cost of space rental for datacenter cabinets, the electricity pods use, the networking they use, the cost of all the switches, etc. It isn't overwhelmingly complex or anything. It includes the cost of salaries of datacenter techs with a formula that says stuff like "for every 400 pods we hire one more datacenter tech", stuff like that. Hopefully if we went to a commercial built storage system we could increase the ratio like only hire one more datacenter tech every 800 pods. The storage vendor could pocket the salary of that employee we did not hire.
Or heck, maybe a large vendor can get a better price on hard drives than we get. We buy retail.
> reaching VMI (maybe you are already there?) procurement levels?
I'm not completely sure I understand the question, but here is one answer: in a modern web and email and connected world with tons of competition, I'm not sure there are any economies of scale past the first 10 computers you build. Places will laser cut and fold sheet metal in units of "1" for extremely reasonable prices, it's AMAZING what the small manufacturers can do for you nowadays.