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Why virtualise ?

Posted by Gordon Hughes Aug 14, 2009

I was recently at a roundtable discussion on the subject of virtualisation, where both end users and vendors were present. I thought I’d share with you some of the questions that were raised during the session, and the answers that were given.

Q. Why are so many businesses interested in virtualisation ?

The primary motivator was around cost reduction and lack of budget. Virtualisation is clearly helping some companies save money and live within very tight budgets. One company lost a couple of servers that they couldn’t afford to replace, so they too out the hard drives, copied them onto another more powerful server and just brought them up on a virtual machine to replace the hardware that died. Another company found they had to adjust the UPS supply at least once a year. By virtualising, they were able to skip some of these adjustment cycles and also halve the number of servers in their computer room.

Q. What is the cost of virtualisation  ?

There is clearly a need for an initial investment, in SANS and Blade servers, but once that investment has been made, then it allows you to forget about the hardware. Any future development work can be done quickly and simply without having to go back for further investment every time you need to do new development.

Q. Was power and space a consideration ?

Absolutely. The analyst community suggests that power will become the largest cost in six to seven years. We already know that no more power can be fed into Canary Wharf in London, which of course is a major headache for the Financial Service community headquartered there.

Q How difficult was the move to virtualisation ?

“It wasn’t as hard as our IT people expected” was one response. The observation was made that storage virtualisation was more complex that servers. The challenge when remapping resources wasn’t really the technology but knowing what the asset base was. When a system has been in use for several years, you may not actually know who’s using it until you turn it off ! but once done, the savings in software licences and power are very clear .

Just a few interesting observations. Do you have any comments or additional thoughts ? I look forward to hearing from you.

Gordon.

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Well it's about time someone mentioned clouds, isn't it ?

Focusing as I do on Financial Services, then I've been recently thinking about cloud computing, and more specifically so-called Private Clouds. if we take the definition that a private cloud may be used to provide shared resources to multiple organizations, then surely there are numerous examples in the banking world of private clouds that have been around for many years. The oldest example (I would suggest) is S.W.I.F.T. (Society for Worldwide Interbank Financial Telecommunications) which was founded in 1973 and first went live in 1977 wih 518 banks in 22 countries. The primary role of S.W.I.F.T. for those of you who may not be familiar with it, is "to provide the proprietary communications platform, productd and services that allow its customers to connect and echange financial information securely and reliably". So, 'Funds Transfer as a Service' then ?

Other examples in the trading world could include market data feeds (information as a service), Exchanges (trading as a service), all of which, I would argue, fit the definition of private cloud computing, and most of which are today running on Intel processors, delivering extremely high performance with ultra-low latency.

So, my questions are these: Would you agree with my hypotheses ? Do you have alternative examples in the Financial Services sector ? Are there similar examples in other industries such as Manufacturing, Oil and Gas,Retail ?

I look forward to reading your posts !

Gordon

 

 

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Greetings, Blogger Community,

 

Over the forthcoming weeks and months I would like to generate some discussion around one of my current favourite topics - mobile banking and payments. We're seeing a lot of news items almost on a daily basis, about the huge growth of mobile banking, and mobile payments. Firstly, let's get some definitions in place (these are mine, by the way, and open to challenge !)

 

Mobile Banking: The use of handheld/mobile devices to perform personal banking functions that have in recent years been performed through Internet banking. I'm sure most people these days are familiar with Internet Banking - access to account information for account balances, transfer of funds between accounts, bill payment (i.e. transferring funds to pre-defined recipients such as utility companies, inland revenue. etc)

 

Mobile Payments: Use of handheld/mobile devices for paying for services or goods, instead of paying with cash, cheques, credit/debit cards.

 

We can get onto the subject of security on another discussion thread (and that could be quite a long one !), but the discussion I'd like to kick off here is around whether the current usage of mobile phones and smart phones is adequate for mobile banking purposes, or would Mobile Internet Devices (see http://www.intel.com/products/mid/), because of their larger screens and therefore their ability in theory to provide a richer and  more rewarding user experience, be a more attractive proposition. Will smartphones actually be displaced by MIDs, as has been suggested might happen in markets such as Asia ?

 

I look forward to hearing your comments. 

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