2012/9/19 HCTSNA

by Gene Kim on

#hctsna

Rachel Chalmers

  • @TheInfoPro: RT @451research: @rachelchalmers at #HCTSNA- 32% of companies have plans to spend on cloud in the next 30 days.
  • @danielkennedy74: @Beaker Idea that it's easier to move data than it is people, under the theme of 'the Internet of things'...and stuff...
  • @davidpowellbham: "On premises resources can't scale to meet demand." -Chalmers from @451Research at #HCTSNA #cloud
  • @SecZone: "@451wendy: "I like atoms, but bits are easier, greener and cheaper to move around." - @rachelchalmers #HCTSNA < huh?" < A cloud thing
  • @451Research: @rachelchalmers at #HCTSNA- 32% of companies have plans to spend on cloud in the next 30 days.
  • @JimGroganSr: #HCTSNA #Chalmers being an information company means connecting a constellation of endpoints with smart devices and less-smart sensors
  • @mthiele10: New Coka Cola Freestyle machines will mix the drink you like and reference your phone the next time u come. @rachelchalmers
  • @danielkennedy74: Everything w/ an IP addy. The left hand knows what the right is doing...via TCP/IP. @rachelchalmers predictions of the singularity
  • @mastachand: #HCTSNA @rachelchalmers: cloud computing market will be $70B next year. Gartner says it'll $109B in 2012. What's the reason for such a diff?
  • @mthiele10: More and more enterprises are redefining themselves today as Information companies. @rachelchalmers
  • @mthiele10: .@rachelchalmers Takes the stage at #HCTSNA. Talking about growth. Cloud to be $70 bil by '13 and is growing 60% per year
  • @VineethRam: #HCTSNA 2012 CEO Martin McCarthy: Uptime Institute evolving from Global Datacenter Facilities Authority to Digital Infrastructure Authority
  • @TheInfoPro: RT @jimgrogansr: #HCTSNA #Chalmers cloud computing defies economy, growing at 62% year to year.
  • RT @TheInfoPro: RT @jimgrogansr: #HCTSNA #Chalmers cloud computing defies economy, growing at 62% year to year.
  • .@rachelchalmers: Mars Rover: "processing dual camera -> 3d: reqs only 17 lines of java code"
  • .@rachelchalmers: Brickstream: now has 3d video analytics appliance: use in traffic, uqueing, behavioral applications in retail"
  • @wickett: NASA using #aws workflow to assemble images #HCTSNA
  • RT @wickett: NASA using #aws workflow to assemble 3D stereoscopic images #HCTSNA
  • .@rachelchalmers: "I'm world's largest space geek... & train geek, too." "instrumenting rail networks reduced derailments by 75%"
  • .@rachelchalmers: "Using bits to optimize how many atoms they can squeeze through their physical rail network"
  • .@rachelchalmers: "What do all these case studies of the Internet of things teach us? haven't even started yet. ubiquitous"
  • .@rachelchalmers: "How to prepare? Cloud computing, big data, paas, identity management"
  • .@rachelchalmers: "Enterprises don't just have Google-envy, they envy service providers"
  • Haha... @rachelchalmers: "Enterprise software vendors now have a reputation of being... umm, 'gougy.'"
  • Anyone catch what was rewritten from XXX to Erlang, without users noticing?
  • .@rachelchalmers: "APIs are now like contracts. You change APIs and you're jeopardizing revenue streams. Stable APIs are rqqd"
  • .@rachelchalmers: "Opscode chef backend was rewritten from Ruby to Erlang to handle new requirements, w/o customers noticing"
  • Thanks @wickett! :)
  • .@rachelchalmers: service providers need to partner with IT orgs as they transform themeselves into internal service providres/integrators
  • @danielkennedy74: API's as contracts...trust in stability is the requirement (via @rachelchalmers). Twitter could take a lesson...
  • RT @danielkennedy74: API's as contracts...trust in stability is the requiremnt (via @rachelchalmers). Twitter could take a lesson...
  • .@rachelchalmers: "Work as if you live in the early days of a better nation" from SF great Alistair ??
  • .@rachelchalmers: "Work as if u live in the early days of a better nation": author Alasdair Gray, "Lanark" ("will bend ur mind")
  • @rachelchalmers: @RealGeneKim Alasdair Gray http://en.wikipedia.org/wiki/Alasdair_Gray - read Lanark, it will bend your mind!

Scott Ottaway, Worldwide Industry Director, Microsoft

  • Ottaway, 12 years at MSFT, responsible for helping drive with hosting service providers and telcos
  • Ottaway, MSFT: "approx 20% of all server installs are off-prem, growing 3x faster than on-prem. 1/3 data will be in cloud by 2020"
  • Ottaway: "14K+ Windows server partners, 8500 SQL Server, 5500 Exchange, 1600 Sharepoint"
  • Ottaway: "
  • @451Research: @Microsoft at #HCTSNA- 32 million Windows Servers deployed WW.
  • RT @451Research: @Microsoft at #HCTSNA- 32 million Windows Servers deployed WW.

  • Bryan Surace, Senior Program Manager, Citrix: delivered HyperV at 2008.

  • Surace: Our goal

  • 451 Group: "Est of Cloud svcs market (IaaS/PaaS/etc): $5B being spent across 250 vendors"
  • 451 Group: "2012 revenue: IaaS: $680M vs. managed hosting: $12B"

DH Capital

  • Boulder, CO and NYC
  • Peter Hopper, DH Capital, Founder and CEO
  • Hopper, DH Capital: focuses on hosting and operations
  • Hopper, DH Capital: 99 transactions, $5.7B; 55 m/a, 44 privcate capital placement
  • $4.1B in m/a; $1.7B private placement, capital or debt
  • Hopper, DH Capital: "We focus on hosting; 99 transactions, totaling $5.7B in transactions: M&A and private capital"
  • Hopper: 44 hosting related transactions, totaling more than $3.9B in value
  • Hopper, "Valuations in public sector: 3 models: colo, REIT, or managed hosting/cloud"
  • Hopper, "Recurring revenue model: Colo: last qtr revenue (MRQ)far more relevant than trailing 12 months (TTM): multiple MRQ/EBITA
  • Hopper, "REIT: 18x MRQ/EBITDA; Hosting: Rackspace: 21.3x MRQ/EBITDA"
  • Hopper: Showing graph of EV/LQA EBITDA of Hosting, Colo vs. REIT
  • Hopper: "Multiple of Colo, REIT and Hosting at all time highs. Why? Fundamentals never better. Rackspace has highest multiple"
  • Hopper: "On average, industry growing at 5% qtr/qtr growth for 2+ years; hardpressed to find other industries growing like this"
  • Hopper: "5-10% q/q ebitda growth, that's worth 20x multiple for Rackspace"
  • Hopper: "EBITDA margin: Colo 40%, REIT margin: 60%, Managed: 35%"
  • @451Research: Peter Hopper, CEO, DH Capital- M&A focus on EBITDA multiples-- managed hosting sector at all-time highs. #HCTSNA
  • Hopper: "How much revenue per 25 sq ft of data center space? Equinex: $2K revenue, $1K EBITDA per rack"
  • Hopper: "REIT; $767 revenue/rack
  • Hopper: "Hosting: Rackspace: generating $15K revenue/rack; 35% margin nets $5K EBITDA/rack"
  • Hopper: "Equinex: Very capital intensive, but geneated EBITDA"
  • Hopper: "In 2012, already 20 M&A transactions, $17.7B; multiples going up, # deals going up; vibrant M&A market"
  • Hopper: "2009-2012: 55 deals in hosting, $29+ billions; that's a vibrant deal market"
  • Hopper: "We do not believe data center is over capacity; we believe in many markets, not enough supply to meet demand"
  • Hopper: "Next 12 months? whole space pricing model gaining traction vs. bundled rack/space pricing"
  • Hopper: "PUE: power/usage/effectiveness metrics: mattering more, but lots of misinformation
  • Hopper: "People don't want raw materials, they want finished goods; thus hosting shift to vertical focus"
  • Hopper: "Cincinnati Bell entrance into hosting one of the best examples of value creation in recent times (!!); Verizon, too"
  • Hopper: "Expect flurry of deals before year end; capital gain increase is equiv to 9% incr in tax rate; many ppl will unload"
  • Hopper: "If capital raise/sale is on horizon, get your financials in order; do you have audited financials?"
  • Hopper: "Do you have financial model that projects out 2 years or more?"
  • Hopper: "Do you have large customers nearing contract expiration, or concentration of expirations coming up"
  • Hopper: "Are customer contracts transferrable; lots of times, we pull material contracts, and we find that it's not xferable"
  • Hopper: "Rev/KW, avg monthly gross/net; capacity utilization, contract waterfall (any big renewals?), sales force stats"
  • Hopper: "Cash flow/EBITDA is the main arbiter of value"
  • argh! Missed most of "why I killed Pluto" keynote, busy talking to @jezhumble! Can he start talk over?@marcocoulter: RT @451Research: And now... the man who killed Pluto. Mike Brown talks about his discovery of Eris. #HCTSNA

RT @marcocoulter: RT @451Research: And now... the man who killed Pluto. Mike Brown talks about his discovery of Eris. #HCTSNA
* Brown: "Why did I kill Pluto? Scientists care about classification; it's important to get right, otherwise we ask the wrong q's"
* @ehanselman: Pluto gets the Kuiper Belt from @plutokiller at #HCTSNA It's not a matter of semantics!
* Brown: "We took pictures of Ares
* @marcocoulter: Pluto could not stay a planet because we found a bigger object further out in the solar system - eris. #HCTSNA
*
RT @marcocoulter: Pluto could not stay a planet because we found a bigger object further out in the solar system - eris. #HCTSNA
* Brown: "10 years ago, we discovered a 'planet' with year of 12K years; only 200 years of those we can detect it"
* Brown: "1 in 60 chance of detecting it. Means that there are 30-60 others like it that we haven't detected"
* Brown: "30 are probably the size of Pluto; 15 are twice the size of Pluto"
* Brown: "if we find another plant past Pluto the size of Mars, we'll have huge another arg of what is and isn't planet again"
* Brown: "LSST (large scale synoptic? telescope) in Chile will take pic of entire night sky every 5 days; this used to take 5 yrs"
* Brown: "Years ago, the data pipeline requirements to ship data from Chile to US researchers would have been impossible"
* Brown: "his blog/website: www.mikebrownsplanet.com; @plutokiller"
* Brown: "@marcocoulter: Synoptic telescope will generate 20TB of data each night. Phew! #HCTSNA
*
RT @marcocoulter: Synoptic telescope will generate 20TB of data each night. Phew! #HCTSNA
* Brown: "@e
hanselman: "It would be so awesome to discover something that would destroy the earth" @plutokiller @ #HCTSNA
* RT @e_hanselman: Brown: "It would be so awesome to discover something that would destroy the earth" @plutokiller @ #HCTSNA
* Brown: "My daughter has lunchbox with Pluto as planet. Why? My friends thinks it's funny." (Outraged that Pluto size exaggerated)
* Brown: "If you wait around here for 10 billion years,
* Q: "Why is Neptune wobbling?" A: "Bad data. Early data and crude tools led to wrong conclusion. It's exactly where it should be. No gravitation source, no giant planet lurking twice distance of solar system"
* Brown: "We have great data now. Neptune is exactly where it should be. No giant planet lurking within 2x radius of solar system"
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