Packet’s not-so-secret weapon: energy-sipping bare-metal servers using ARM processors.
A
little-known startup is making a big bet that it can parlay new ARM chips, and
backing from a Japanese investment giant, to make its presence felt among the
cloud computing giants.
The
company, Packet, on Tuesday is launching new rentable “bare metal” computing
services based on the ARM v8 chip architecture from its data centers in New
Jersey, Northern California, Amsterdam, and Tokyo. Customers can set up and
launch these resources within minutes, Packet said
The
move is unusual because ARM chips are not commonly found in the servers that
power corporate data centers or public cloud computer services, such as those
sold by Amazon AMZN -1.47% Web Services. They do, however, dominate the
smartphone market—scratch an Apple AAPL
-1.87% iPhone (God forbid) and you’ll
see an ARM chip. And many techies see ARM’s energy-efficient design as an
interesting option for servers going forward.
Bare
metal servers, unlike typical cloud-based servers, are not virtualized. That
means they can run certain jobs, like databases, faster than virtualized cloud
servers. IBM IBM -2.15% , Rackspace RAX 0.00%
and some other cloud companies already offer bare metal options for
rent.
New
York-based Packet, which disclosed $9.4 million in funding from Softbank in
September, aims to satisfy what it sees as a growing market for bare-metal
computing on demand. Softbank is a great ally for Packet, since it is buying
ARM Holdings for $32 billion. ARM Holdings is the U.K. company that controls
and licenses ARM processor designs to manufacturers.
Packet
CEO Zachary Smith acknowledges that this is a David and Goliath tale in many
ways. Intel chips dominate cloud computing services and equipment, as they do
inside corporate data centers. And Amazon Web Services and Microsoft MSFT -0.71%
Azure are the behemoths in the public cloud market; both organizations
sell (or rent) massive amounts of computing power to customers from their
Intel-dominated data centers.
Smith
has no problem stipulating that Intel owns “99 point whatever percent” of the
data center chip architecture, with a smattering of IBM-backed Power chips and
Oracle ORCL -1.42% SPARC chips here and there. Likewise, he
admits that Intel INTC 0.23% x86 chips work with everything, that Intel
fields a huge partner ecosystem of software, hardware and add-on providers, and
that it also owns the biggest-and-best fabrication facilities.
But,
he also insists that big changes over the past year are shifting the balance of
power. “There are a billion smartphones out there with ARM chips,” Smith noted.
As a result, there many manufacturers and plenty of ARM licensees working with
the technology. What that means is ARM now has an ecosystem all its own, which
is something Softbank and Packet hope to capitalize on.
Taking
on established cloud giants like Amazon Web Services is a long shot but there
are some critical nuances to consider.
First,
the market for rentable computer resources is growing fast enough now to float
many boats, including newcomers, provided they have funding and innovative
services that corporate developers and their IT strategy overlords want.
Second,
even cloud giants admit that new chip technologies will be critical as cloud
computing matures. Energy-efficient ARM chips that already power an estimated
95% of smartphones are bound to get a look, especially if their use can reduce
data center power requirements. Microsoft and Google also talk up x86
alternative chips for some uses. And Amazon last year bought Annapurna Labs, an
ARM chip licensee. Clearly, there is interest here.
Smith
contended that the widespread use of ARM chips in other scenarios is also
making it easier for cloud service providers (and others) to get early previews
of the technology and to develop offerings using it.
