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Facebook’s Open Compute Project hits over $2.5 billion in revenues

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The Open Compute Project began its life at Facebook as a revolutionary idea to do for data center hardware what Linux and open source software did for the software market. In other words, the OCP comes up with cutting-edge, super-efficient designs that any company can use to build their own hardware.

And the OCP has succeeded, by most reasonable metrics. The project has created a fanatical following among data center engineers, and has led to the creation of products in 10 categories, including networking, servers, and storage.

And in terms of dollars and cents: On Thursday, the preliminary results of a new market assessment report commissioned by OCP was released. That report finds that companies spent more than $2.5 billion on OCP-designed products in, up from $1.16 billion year the before.

Read: AT&T signed an ‘8-digit’ deal that isn’t good news for VMware, Cisco, or Huawei — but could be great for Google Cloud

And this report doesn’t actually reveal the true amount being spent on OCP gear.

It deliberately hides what the project’s board member companies are spending on their OCP equipment, which includes Facebook, Goldman Sachs, Intel, Microsoft and Rackspace. Those companies run enormous data centers and buy a lot of data center equipment, meaning the real figure is likely higher.

The reason the board members are excluded is to try and show that the project is having an impact beyond the handful of companies in leadership roles — although it’s a bit coy of the organization to keep mum on how much money those companies pour into the ecosystem.

Even so, the commissioned report makes a fair case that OCP is creating a multi-billion market.

Excluding the purchases of board members, OCP products account for nearly 1% of the total data center market, which it pegs at $127 billion, the report says.

Interestingly, the report also finds that the overall data center equipment market is shrinking, from $137 billion in 2017 to $127 billion in 2018. Companies across the board are reducing their use of private data centers, as their use of the cloud increases. And OCP includes many of the big cloud providers that are taking those workloads, including Microsoft, Google and Rackspace.

Simply put, that means that OCP has been eating the data center market in a measurable way.

Engineers love it

OCP’s goal is to take the power out of the hands of traditional server and networking vendors like Hewlett Packard Enterprise, Dell, or Cisco, and put it into the hands of the companies who buy and use that hardware.

While all three of those companies have joined the project, OCP members design their own servers, storage, and networking gear, making them cost less and perform faster than traditional commercial alternatives. Then, they share their designs for free. Anyone can modify those designs for their own use, or share them with the group.

Attendees at the OCP Summit conference
OCP

Engineers love it. They get to freely collaborate with other top engineers trying to solve the same problems without worrying about protecting intellectual property or trade secrets.

Contract manufactures are available to build the gear, too, to make it easier for even smaller companies to take advantage of OCP gear.

OCP has also become such a big thing that a growing list of vendors, including HPE and Dell, also make commercial products that match OCP specifications. So OCP-designed products can be bought off-the-shelf. They don’t have to be custom-ordered, lowering the bar to entry.

Next up: the telecom industry

With a loyal following of data center engineers, OCP and Facebook have moved on to a related industry: telecom equipment.

Through OCP, telecom providers like AT&T and Deutsche Telekom are working on open source designs for routers and the other equipment that run their networks. This is gear that would challenge networking giants including Cisco and Juniper.

A few years ago, Facebook also launched a telecom-specific organization called the Telecom Infra Project. It is working on projects like open source telecom radio transmitters. This is gear that would take on the likes of Ericsson, Nokia and Huawei at this especially critical time, when telcos are upgrading their networks to 5G.

Meanwhile, the telecom industry has also decided that it wanted to lead its own open-source hardware project, away from Facebook.

A project called the O-RAN Alliance has gained steam, and includes a who’s who of the major telecom companies worldwide. This includes AT&T, T-Mobile, Verizon, Sprint, SoftBank, SK Telecom, Telefónica, and others.

The industry scuttlebutt is that the two groups, TIP and O-RAN, are going to announce some sort of collaboration next week at Mobile World Congress so they don’t duplicate efforts as they work to to upend the global telecom equipment industry.

Read: Bill Gates warns of the dangers of cow farts — and the world should take his words seriously

Amy Wheelus, AT&T VP of Network Cloud & Infrastructure heads Airship
YouTube/TelecomTV

OCP’s market research report doesn’t shed much light on how much money the telecos might shift to these new open source creations.

But it does show that telecom companies are one of the major users of OCP gear — including servers, storage and OCP’s optical networking equipment.

Meanwhile AT&T has taken open source even further. It’s leading a project called Airship to share software that it’s building to run and manage its 5G network. This software can be used for lots of other data center needs at all sorts of other companies.

The radical idea that launched OCP is turning into a full-fledged hardware industry coup.

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Putin wants his own private internet

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New Russian laws could soon isolate the country’s Runet from the rest of the internet as it seeks to tighten its grip on the information that flows in and out of the country.

A new bill, backed by President Vladimir Putin and Moscow lawmakers, is currently being pushed through parliament which would create a single command post from which local authorities can manage and even halt information flowing across the internet in Russia.

The country’s so called “Sovereign Internet” bill is being portrayed by Putin as a defensive response to the Trump Administration’s new cyber strategy that would allow the US to launch offensive measures against Russia and any other nation states known for committing nefarious activities online.

Andrei Soldatov, author of “The Red Web: The Kremlin’s Wars on the Internet”, told Bloomberg that he thinks the law isn’t aimed at foreign threats but at quelling civil unrest, saying:

“This law isn’t about foreign threats, or banning Facebook and Google, which Russia can already do legally. It’s about being able to cut off certain types of traffic in certain areas during times of civil unrest.” 

Sovereign internet

The law, currently in draft form, was co-authored by KGB veteran Andrei Lugovoi who’s wanted in the UK for the murder of a renegade agent, is actually a mixture of several bills, some of which have been in development for years.

According to Putin, the ultimate goal is to ensure that the Runet continues to function in the event that the US tries to block Russia from accessing the rest of the internet.

If the bill does pass, the country would install special boxes with tracking software at the thousands of exchange points that link it to the rest of the web. These units would feed data into a central nerve center from which regulators could analyze web traffic and reroute traffic that they do not deem appropriate for the Russian populace.

Russian censorship has grown stronger in recent years and if Putin has his way, the country’s internet will soon resemble that of China’s where access to the outside web is blocked by the Great Firewall.

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The Internet Has Become A ‘Completely Out-Of-Control Monster,’ Warns Successor Of Man Who Created It

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Nearly 30 years ago a group of scientists at a Swiss physics institution came up with a novel idea to share data and work between themselves across the globe. The groundbreaking concept was the brainchild of Sir Tim Berners-Lee, whose vision for a “decentralized information management system” eventually gave birth to the world wide web.

Fast forward three decades and the internet has invaded all corners of the globe and governs all areas of life. It has become a power without equal. Some have suggested it has become a Frankenstein’s monster which needs to be reined in, and fast

One such person is Francois Fluckiger, the man who would become Sir Tim’s successor at CERN, the European Organization for Nuclear Research.

The Daily Mail reports that Fluckiger believes fake news, privacy threats, and online bullying have all conspired to turn the internet into a “completely out-of-control monster.”

When Sir Tim left CERN’s web team in 1994, Fluckiger picked up the reins. He has since retired, and although he has hailed the web as one of the three major inventions of the 20th century, he believes it has morphed into something almost unrecognizable from its early days.

“One has to ask oneself if we did not, in the end, create a completely out-of-control monster,” said Fluckiger.

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Bali’s silent day: No flights, internet on New Year

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Bali’s airport will close for 24 hours, the internet will be turned off and streets emptied as the island in Indonesia observes its New Year with an annual day of silence.

‘Nyepi’ begins at 6 AM on Thursday, clearing beaches and all public spaces of people except for special patrols to ensure silence is observed. For the second year, phone companies will turn off the mobile internet on the island, home to more than four million people.

Balinese will stay indoors, covering windows and keeping lights off for the day of reflection.

“A day of silence to mark Saka (Balinese calendar) New Year for us is an opportunity to restart life with a pure heart,” said Wayan Gota, a hotel manager in Kuta, one of the island’s tourist hotspots.

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