The importance of datacentres can be understood from the gowing size and number of data centres across the globe.Companies go in for various approaches when they decide to go for a DC. Say for an banking application or applications which need real time information it is very necessary that data should be as close as possible, to make sure of the speed and also to make
it possible for the support staff to rectify the errors if any.This is the reason the computers in corporate data centres were often housed in the firm's basement and dedicated “server farms”.
On the other hand for companies like Microsoft & Yahoo datacentres are mostly used as data storage areas/systems hence for them the prioriy is safety and security rather than the speed as real time use of that data might be less. Hence such companies go in for some really secluded place say for eg: Quincy in the centre of state Washington, about three hours drive from the nearest city.
One of the major reasons for going for such far off locations is the geographical advantage that they possess. Some of these locations close to dams and rivers, there by making sure that ample cheap power is available, as power is required in lumpsome for Datacentres.To have a feel of the quantity of power required by these datacentres, i quote: Microsoft's $500mn facility in Chicago will need three electrical substations with a total capacity of 198 megawatts.
Prempted with above concerns and data centre regulations, companies are now trying to consolidate and simplify their computing infrastructure. Hewlett-Packard, the world's biggest computer-maker, for instance, is replacing its 85 data centres across the world with just six in America.
Friday, May 23, 2008
Friday, April 25, 2008
US Slowdown isn't Exactly Bad for Indian IT
Its a long perceived notion that US recession shall hit the Indian economy specially the IT sector really hard, but then there is a different school of thoughts as well. It says that the recession might not exactly be bad for the Indian IT sector.
A report from Gartner says US economic slowdown will lead buyers of IT services to consider increasing the percentage of their labour in offshore, lower-cost locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service
With concerns that the US economic slowdown could extend to other geographies, organisations are refocusing on IT cost reduction and taking steps to accelerate the use of offshore labour, Gartner said. Buyers of IT services will shift from cost-containment goals to a greater focus on cost reduction and productivity increases in their sourcing decisions. This will lead to a steady increase in the adoption and expansion of offshore services - primarily from India, but increasingly from other countries as well.
But the flip side of the recession would be that there could be a drastic cut in the IT expenditure of these firms , meaning the indian IT companies might not be able to negotiate for increased charge backs.And with the salaries in the Indian IT companies increasing at a fast pace the IT companies might take a hit !
A report from Gartner says US economic slowdown will lead buyers of IT services to consider increasing the percentage of their labour in offshore, lower-cost locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service
With concerns that the US economic slowdown could extend to other geographies, organisations are refocusing on IT cost reduction and taking steps to accelerate the use of offshore labour, Gartner said. Buyers of IT services will shift from cost-containment goals to a greater focus on cost reduction and productivity increases in their sourcing decisions. This will lead to a steady increase in the adoption and expansion of offshore services - primarily from India, but increasingly from other countries as well.
But the flip side of the recession would be that there could be a drastic cut in the IT expenditure of these firms , meaning the indian IT companies might not be able to negotiate for increased charge backs.And with the salaries in the Indian IT companies increasing at a fast pace the IT companies might take a hit !
Sunday, February 10, 2008
Petro Dollars & World Economy
The ever increasing prices of oil has strengthened the hold exercised by petro dollar holders on the world economy.High oil prices are a sort of tax on oil importing nations but they generate windfall revenues for the oil exporting countries specially in the gulf region. In 2006 petro dollars were the single largest source of net global capitalin flow. A major chunk of these revenues are recycled into the global market , making petro dollars a strong player in the market.
Where are these petroldollars used ??
Central Banks
Part of petrodollars end up in the cenral banks ,which invest in foreign assets to stablize foreign currencies against balance of payment fluctuations.
Sovereign Wealth Funds
These are state owned investment funds , used to invest oil surpulses into the global financial markets.
Goverment Investment Corporations
Increasingly, oil exporters channel some of their wealth into smaller, more targeted funds, such as Dubai International Capital (DIC) and Istithmar. These entities invest directly in domestic and foreign corporate assets, shunning the portfolio approach of the sovereign wealth funds.
Goverment Controlled Companies
Fueling Liquidity
In fixed income markets this increased liquidity has significantly lowered the interest rates.
Its estimated that total foreign net purchases of US bonds have brought down long-term rates by about 130 basis points.Taking into account the allocations of GCC investors,it is estimated that each year equity markets receive $200 billion in petrodollars, accounting for about $2 trillion—or 4 percent—of their capitalization
Some observers worry that this new liquidity is having an inflationary effect on asset prices, perhaps fueling bubbles.
Concern Is ....
Despite the many beneficial effects of petrodollars in increasing global liquidity and spurring the growth of various financial-asset classes throughout the world, the rise of investors in oil-exporting countries has created concerns.
One worry is that the huge size of petrodollar sovereign wealth funds, coupled with their relatively high appetite for risk, could make global capital markets more volatile. The limited transparency of these funds amplifies the anxiety.
A final concern: the long-term economic impact of higher oil prices. In the 1970s their rise sparked inflation in the major oil-consuming economies and sent global banks on a petrodollar-fueled lending spree in Latin America
Where are these petroldollars used ??
Central Banks
Part of petrodollars end up in the cenral banks ,which invest in foreign assets to stablize foreign currencies against balance of payment fluctuations.
Sovereign Wealth Funds
These are state owned investment funds , used to invest oil surpulses into the global financial markets.
Goverment Investment Corporations
Increasingly, oil exporters channel some of their wealth into smaller, more targeted funds, such as Dubai International Capital (DIC) and Istithmar. These entities invest directly in domestic and foreign corporate assets, shunning the portfolio approach of the sovereign wealth funds.
Goverment Controlled Companies
Fueling Liquidity
In fixed income markets this increased liquidity has significantly lowered the interest rates.
Its estimated that total foreign net purchases of US bonds have brought down long-term rates by about 130 basis points.Taking into account the allocations of GCC investors,it is estimated that each year equity markets receive $200 billion in petrodollars, accounting for about $2 trillion—or 4 percent—of their capitalization
Some observers worry that this new liquidity is having an inflationary effect on asset prices, perhaps fueling bubbles.
Concern Is ....
Despite the many beneficial effects of petrodollars in increasing global liquidity and spurring the growth of various financial-asset classes throughout the world, the rise of investors in oil-exporting countries has created concerns.
One worry is that the huge size of petrodollar sovereign wealth funds, coupled with their relatively high appetite for risk, could make global capital markets more volatile. The limited transparency of these funds amplifies the anxiety.
A final concern: the long-term economic impact of higher oil prices. In the 1970s their rise sparked inflation in the major oil-consuming economies and sent global banks on a petrodollar-fueled lending spree in Latin America
Saturday, February 9, 2008
SatyamWay
Found this interesting piece of info while reading an interview of Mr.Ramalinga Raju , founder and chairman of Satyam Computers.This is something which happened in 1991 ,when the west wasn't very sure of outsourcing work to India.And its then that Satyam got its first fortune 500 client in India.This happened in US Midwest where in Satyam took up a rented house , across its customer's software development centre .Ten satyam engineers field tested the benefits of Global IT offshoring by pretending they were in India.They worked nights to simulate the time difference and for 6 months never met their customers across the street in person , communicating only through a dedicated satellite link"In the end the team worked better from this place called Little India as compared to working onsite"....
That was a really different way of proving ones's credentials.
From then on Ramalinga Raju an commerce graduate & an MBA has been on the path of trying out new things .Currently they are working on a new business model which they call the "Satyam Way".
will write abt the satyam way in my next post .....
Ref : Mckinsey Quaterly
That was a really different way of proving ones's credentials.
From then on Ramalinga Raju an commerce graduate & an MBA has been on the path of trying out new things .Currently they are working on a new business model which they call the "Satyam Way".
will write abt the satyam way in my next post .....
Ref : Mckinsey Quaterly
Monday, February 4, 2008
MicroSoft Bids for Yahoo
Yahoo offlate has been in troubled waters where in there shares have lost 30% of their value over the last one year.They also decieded to lay off around 1000 employess.
Now they have found an interested partner in the form of Microsoft who beleive that MS & yahoo as such would be the right combination to deliver maximum value to the share holders.
Microsfot's $31 a share offers a 62 percent premium for shareholders.
This acquisition if successfull would create a ruckos in the field of online advertising, currently worth $40 billion and expected to grow to $80 billion in next three years .
Google was early to understand the power of Internet , MS though late on this , is trying to catch up pace with this acquisition..
Thursday, January 10, 2008
@Dubai
Finally I am in SPJCM dubai , its been an eventful journey all through .Never thought one day i would find myself in dubai ! But then things have been going greatand I ended up here
The flight journey was quite good , with lots of beverages and food been served.The only disappointment would have been the air-hostessess ;-)(I was in an Air India Flight).Thanks to couple of my other batchmates whom i met at the airport the journey was quite a fun.And as such i beleive in travelling light and so wasn't carrying many accoutrements.
Though the flight was good we had a tough time at the dubai airport , as there were quite a fewformalities to be completed , as in a retina test and all , of which we weren't aware of !But all's well tat end's well once we were done with all our formalities we met the spjcm person who had come down t recive us.I really hope this wasn't an harbinger of the tough times to come :-)But then once we came out of the airport we got imbibed in the dubai freeways and the profiligacyof the people which can be seen the cars they own.It was really a delirious feeling , which i shallremember for long time to come.That's it abt an landmark journey of life , which I am sure is going to have an great impact on my life ...Will continue my experiences in the next post as well..ciao !!
The flight journey was quite good , with lots of beverages and food been served.The only disappointment would have been the air-hostessess ;-)(I was in an Air India Flight).Thanks to couple of my other batchmates whom i met at the airport the journey was quite a fun.And as such i beleive in travelling light and so wasn't carrying many accoutrements.
Though the flight was good we had a tough time at the dubai airport , as there were quite a fewformalities to be completed , as in a retina test and all , of which we weren't aware of !But all's well tat end's well once we were done with all our formalities we met the spjcm person who had come down t recive us.I really hope this wasn't an harbinger of the tough times to come :-)But then once we came out of the airport we got imbibed in the dubai freeways and the profiligacyof the people which can be seen the cars they own.It was really a delirious feeling , which i shallremember for long time to come.That's it abt an landmark journey of life , which I am sure is going to have an great impact on my life ...Will continue my experiences in the next post as well..ciao !!
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