OpenStack Private Clouds Save Companies Money

This post has been authored by Young-Sae Song a Corporate Vice President of Product Marketing, Data Center Server Solutions at AMD


Looking back at the growth of public cloud services, there are three distinct phases that spurred adoption. The first phase was all about convenience.  In most cases, individual developers found it easier to use public cloud services rather than dealing with their company’s internal IT groups. Pricing was very low, so people just charged their credit cards and expensed it.  As more people began doing this, many companies put in controls and policies for how and when public cloud services could be used.


The second phase of public cloud services has been about mobility.  There has been an explosion of mobile devices to the point where the Internet of Things became a mainstream term.  Use of public cloud services has expanded to be accessible by mobile devices and new, innovative services are now also delivered in the cloud.  In this phase, the public cloud infrastructure had to change.  Basic computing services were not enough.  The cloud needed to offer storage services, graphics services and software as a service .


Which puts us into the third phase of public cloud services. The third phase is about offering a wide range of services efficiently and at a low cost.  Simple compute and storage functionality has been complemented with the availability of Hadoop, NoSQL databases, content delivery networks and the list goes on. Building and managing large data centers is expensive.  So it makes sense that large companies are better able to scale the development and management of the infrastructure and applications and offer it to others at a lower cost.  The other big benefit is that there is no upfront cost, you pay as you go for only what you use.


So how can a private cloud make sense economically?


Using traditional data center servers and software to build a private cloud is probably not going to be price-competitive with public cloud services. To overcome the economics of a public cloud service requires an extraordinary innovation that allows companies to build out private clouds with the same or better economics.

AMD’s Freedom™ Fabric ASIC is that innovation.  The SeaMicro SM15000 server converges compute, storage and networking into a single system that uses up to 25% less power than traditional data center servers and provides one of the industry’s highest density solutions.  The system is optimized for OpenStack, and a production ready private cloud can be set up and running in less than four hours.  All of these capabilities are enabled by the Freedom Fabric’s ability to enable servers to share storage and networking resources.


At the end, it all comes down to the numbers, and a high level analysis shows that using the SM15000 server with OpenStack compared to major public cloud services could generate significant economic savings over time.  Of course it comes down to a company’s individual use case, but public clouds are not always the best option for cloud services.  With the maturing of OpenStack as a viable large scale cloud operating system and fundamental hardware innovations that deliver higher density, efficiency and simpler operations, private clouds have the technologies to emerge as the cloud of choice.


AMD will be attending the OpenStack Summit in Paris.  To see the SeaMicro SM15000 server, please visit us at Booth 22.  We will also be showcasing a live system running Ubuntu OpenStack on Canonical Track Day Room 253 (Tuesday 4th November).




Young-Sae Song is a Corporate Vice President of Product Marketing, Data Center Server Solutions at AMD. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites, and references to third party trademarks, are provided for convenience and illustrative purposes only. Unless explicitly stated, AMD is not responsible for the contents of such links, and no third party endorsement of AMD or any of its products is implied.

via AMD Blogs



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