A tale of two storage companies – NetApp and Vantara (HDS-Insight Grp-Pentaho)

It was the worst of times. The industry changes had been gathering for a decade almost and by this time were starting to hurt.

The cloud was taking over all new business and some of the old. Flash’s performance was making high performance easy and reducing storage requirements commensurately. Software defined was displacing low and midrange storage, which was fine for margins but injurious to revenues.

Both companies had user events in Vegas the last month, NetApp Insight 2017 last week and Hitachi NEXT2017 conference two weeks ago.

As both companies respond to industry trends, they provide an interesting comparison to watch companies in transition.

Company role

  • NetApp’s underlying theme is to change the world with data and they want to change to help companies do this.
  • Vantara’s philosophy is data and processing is ultimately moving into the Internet of things (IoT) and they want to be wherever the data takes them.

Hitachi Vantara is a brand new company that combines Hitachi Data Systems, Hitachi Insight Group and Pentaho (an analytics acquisition) into one organization to go after the IoT market. Pentaho will continue as a separate brand/subsidiary, but HDS and Insight Group cease to exist as separate companies/subsidiaries and are now inside Vantara.

NetApp sees transitions occurring in the way IT conducts business but ultimately, a continuing and ongoing role for IT. NetApp’s ultimate role is as a data service provider to IT.

Customer problem

  • Vantara believes the main customer issue is the need to digitize the business. Because competition is emerging everywhere, the only way for a company to succeed against this interminable onslaught is to digitize everything. That is digitize your manufacturing/service production, sales, marketing, maintenance, any and all customer touch points, across your whole value chain and do it as rapidly as possible. If you don’t your competition will.
  • NetApp sees customers today have three potential concerns: 1) how to modernize current infrastructure; 2) how to take advantage of (hybrid) cloud; and 3) how to build out the next generation data center. Modernization is needed to free capital and expense from traditional IT for use in Hybrid cloud and next generation data centers. Most organizations have all three going on concurrently.

Vantara sees the threat of startups, regional operators and more advanced digitized competitors as existential for today’s companies. The only way to keep your business alive under these onslaughts is to optimize your value delivery. And to do that, you have to digitize every step in that path.

NetApp views the threat to IT as originating from LoB/shadow IT originating applications born and grown in the cloud or other groups creating next gen applications using capabilities outside of IT.

Product direction

  • NetApp is looking mostly towards the cloud. At their conference they announced a new Azure NFS service powered by NetApp. They already had Cloud ONTAP and NPS, both current cloud offerings, a software defined storage in the cloud and a co-lo hardware offering directly attached to public cloud (Azure & AWS), respectively.
  • Vantara is looking towards IoT. At their conference they announced Lumada 2.0, an Industrial IoT (IIoT) product framework using plenty of Hitachi software functionality and intended to bring data and analytics under one software umbrella.

NetApp is following a path laid down years past when they devised the data fabric. Now, they are integrating and implementing data fabric across their whole product line. With the ultimate goal that wherever your data goes, the data fabric will be there to help you with it.

Vantara is broadening their focus, from IT products and solutions to IoT. It’s not so much an abandoning present day IT, as looking forward to the day where present day IT is just one cog in an ever expanding, completely integrated digital entity which the new organization becomes.

They both had other announcements, NetApp announced ONTAP 9.3, Active IQ (AI applied to predictive service) and FlexPod SF ([H]CI with SolidFire storage) and Vantara announced a new IoT turnkey appliance running Lumada and a smart data center (IoT) solution.

Who’s right?

They both are.

Digitization is the future, the sooner organizations realize and embrace this, the better for their long term health. Digitization will happen with or without organizations and when it does, it will result in a significant re-ordering of today’s competitive landscape. IoT is one component of organizational digitization, specifically outside of IT data centers, but using IT resources.

In the mean time, IT must become more effective and efficient. This means it has to modernize to free up resources to support (hybrid) cloud applications and supply the infrastructure needed for next gen applications.

One could argue that Vantara is positioning themselves for the long term and NetApp is positioning themselves for the short term. But that denies the possibility that IT will have a role in digitization. In the end both are correct and both can succeed if they deliver on their promise.



Hitachi and the coming IoT gold rush

img_7137Earlier this week I attended Hitachi Summit 2016 along with a number of other analysts and Hitachi executives where Hitachi discussed their current and ongoing focus on the IoT (Internet of Things) business.

We have discussed IoT before (see QoM1608: The coming IoT tsunami or not, Extremely low power transistors … new IoT applications). Analysts and companies predict  ~200B IoT devices by 2020 (my QoM prediction is 72.1B 0.7 probability). But in any case there’s a lot of IoT activity going to come online, very shortly. Hitachi is already active in IoT and if anything, wants it to grow, significantly.

Hitachi’s current IoT business

Hitachi is uniquely positioned to take on the IoT business over the coming decades, having a number of current businesses in industrial processes, transportation, energy production, water management, etc. Over time, all these industries and more are becoming much more data driven and smarter as IoT rolls out.

Some metrics indicating the scale of Hitachi’s current IoT business, include:

  • Hitachi is #79 in the Fortune Global 500;
  • Hitachi’s generated $5.4B (FY15) in IoT revenue;
  • Hitachi IoT R&D investment is $2.3B (over 3 years);
  • Hitachi has 15K customers Worldwide and 1400+ partners; and
  • Hitachi spends ~$3B in R&D annually and has 119K patents

img_7142Hitachi has been in the OT (Operational [industrial] Technology) business for over a century now. Hitachi has also had a very successful and ongoing IT business (Hitachi Data Systems) for decades now.  Their main competitors in this IoT business are GE and Siemans but neither have the extensive history in IT that Hitachi has had. But both are working hard to catchup.

Hitachi Rail-as-a-Service

img_7152For one example of what Hitachi is doing in IoT, they have recently won a 27.5 year Rail-as-a-Service contract to upgrade, ticket, maintain and manage all new trains for UK Rail.  This entails upgrading all train rolling stock, provide upgraded rail signaling, traffic management systems, depot and station equipment and ticketing services for all of UK Rail.

img_7153The success and profitability of this Hitachi service offering hinges on their ability to provide more cost efficient rail transport. A key capability they plan to deliver is predictive maintenance.

Today, in UK and most other major rail systems, train high availability is often supplied by using spare rolling stock, that’s pre-positioned and available to call into service, when needed. With Hitachi’s new predictive maintenance capabilities, the plan is to reduce, if not totally eliminate the need for spare rolling stock inventory and keep the new trains running 7X24.

img_7145Hitachi said their new trains capture 48K data items and generate over ~25GB/train/day. All this data, will be fed into their new Hitachi Insight Group Lumada platform which includes Pentaho, HSDP (Hitachi Streaming Data Platform) and their Content Analytics to analyze train data and determine how best to keep the trains running. Behind all this analytical power will no doubt be HDS HCP object store used to keep track of all the train sensor data and other information, Hitachi UCP servers to process it all, and other Hitachi software and hardware to glue it all together.

The new trains and services will be rolled out over time, but there’s a pretty impressive time table. For instance, Hitachi will add 120 new high speed trains to UK Rail by 2018.  About the only thing that Hitachi is not directly responsible for in this Rail-as-a-Service offering, is the communications network for the trains.

Hitachi other IoT offerings

Hitachi is actively seeking other customers for their Rail-as-a-service IoT service offering. But it doesn’t stop there, they would like to offer smart-water-as-a-service, smart-city-as-a-service, digital-energy-as-a-service, etc.

There’s almost nothing that Hitachi currently supplies as industrial products that they wouldn’t consider offering in an X-as-a-service solution. With HDS Lumada Analytics, HCP and HDS storage systems, Hitachi UCP converged infrastructure, Hitachi industrial products, and Hitachi consulting services, together they are primed to take over the IoT-industrial products/services market.

Welcome to the new Hitachi IoT world.


Mobile devices as a cache for cloud data

Howard Marks (DeepStorage.net) and I were on a GreyBeard’s podcast last month (PB are the new TB) talking with the CTO (Brian Carmody [@initzero]) of hybrid storage vendor, Infinidat, who just happened to mention in passing that “our mobile devices pretty much act as caches for cloud data”. That’s interesting.

Mobile app’s caching data

There’s a part of me that couldn’t agree more. Most of my mobile mail uses IMAP which acts as a browser for email residing elsewhere. Radio apps stream music from the cloud. Photo apps can store pictures on the cloud. Social media apps (Facebook, LinkedIN, Twitter, etc.) use the cloud to store posts/pokes/photos and only cache minimal data locally. There are many more apps that act similarly.

But not all data is cached

On the other hand, I have downloaded all of my music library to my mobile devices. There was a time when I was more selective but later generation devices have more than enough storage to hold it all.

Movies are another.  Most purchased movies are download to my desktop. With only 64GBs of storage on my iPad/iPhone, I have to be a bit more judicious with which movies I store on the devices. Most of the time, when I am watching movies on mobile devices, I don’t have Internet access, so caching/streaming won’t work. Yet, for some services (Amazon Prime Video & Apple TV) I do stream at home and then the TV or AppleTV caches cloud media.

My photo library is similar, there’s just too many photos to fit them all on the  device. So for now, they reside on my desktop, only a select subset are copied to the device.

Contacts, passwords, calendars and countless other datums that reside on the cloud or my desktop computer are also replicated (not cached) on mobile devices. Could they be cached, probably, but with the need for these items, even when internet service is not available, caching them makes no sense.

Storage caching vs. mobile device caching

Storage caches are pretty sophisticated and Infinidat’s as sophisticated as any of them. Historically, storage caching is resilient in the face of power outages, storage device failures, software bugs, etc. Essentially, when storage data hits the cache the storage system “guarantees” to write it to backend storage, some time in the future. Read data caching requires less resilience/fault tolerance because data already resides somewhere else on backend storage.

It’s unclear whether mobile caching has similar strengths. As each app caches data in it’s own way, there would be less resilience in mobile caching than storages subsystem caches. But I am no app developer, so don’t have a clue as to what caching services are available within the mobile app ecosystem.

Device internet speed too slow

One thing that keeps me storing data on my mobile devices is the speed of Wi-Fi and cellular internet. It’s often much slower than I would like. I suppose when these speed up there would be less need to save data on my mobile devices. But by that time, mobile storage will bemuch cheaper as well and I will have even more data to cache/store. So who knows.

Then again in the foreseeable future, there will be times without cellular or Wi-Fi Internet. So , storing data on the mobile device will always be the way to go at least for some data.

Maybe Brian’s right

From my perspective, Brian is partially right about the mobile devices caching cloud data. But maybe it’s just because I am old school that I decide to store a lot of data on my mobile devices.

From Brian’s perspective, all that data is stored elsewhere (desktop or cloud). So it all could be cached and probably should be.

As the world rolls out IoT, with even less storage at the edge, caching cloud data will become even more of a necessity. Hopefully by then Internet access will become even more universal than it is already.


Photo Credits: Blake Patterson, iPhone apps sphere