5 ms·

I was skeptical as well, if only because just being a better product isn't enough to win the market. Everything we hear about Oxide sounds like an impressive gr

I was skeptical as well, if only because just being a better product isn't enough to win the market. Everything we hear about Oxide sounds like an impressive green field implementation of a data center, but is that enough? Do the people making buying decisions at this scale care if their sysadmins have better tools?

9dev 1y ago
If it translates to improved efficiency, sure. And this big of a round seems to indicate that idea has some merit
transpute 1y ago
What percentage of enterprise IT compute has not moved to a public cloud?
- dmoy 1y ago
  I'm not sure anyone really knows uptime institute publishes some good numbers from survey, which puts on prem + colo still at >50% last I checked. And still some additional 5% in like... on prem in closets. Last year Amazon said it was 85% on prem. I dunno who has the right numbers.
- cortesoft 1y ago
  I know I have been involved in multiple efforts to move the same workloads into and then out of the cloud, as corporate budgeting requirements prioritized either capex or opex at different times.
- chadk 1y ago
  Only 30% have moved to the public cloud https://www.goldmansachs.com/insights/articles/cloud-revenues-poised-to-reach-2-trillion-by-2030-amid-ai-rollout https://www.goldmansachs.com/insights/articles/cloud-revenue...
- esseph 1y ago
  Every single company I've worked with over the past 5 years has been repatriating from the cloud to their own DCs or colo. The cloud doesn't pan out for long running, predictable workloads. Most companies are and will continue to use VMs for many years.
zer00eyz 1y ago
> Do the people making buying decisions at this scale care if their sysadmins have better tools? Look at who oxide is selling to and for what reasons. It's about compute + software at rack scales. It does not matter if it is good it matters that it's integrated. Gear at this level is getting sold with a service contract and "good" means you dont have to field as many calls (keeping the margins up). > Everything we hear about Oxide sounds like an impressive green field implementation of a data center, but is that enough? Look at their CPU density and do the math on power. It's fairly low density. Look at the interconnects (100gb per system). Also fairly conservative. It's the perfect product to replace hardware that is aging out, as you wont have to re-plumb for more power/bandwidth, and you still get a massive upgrade.
- keeda 1y ago
  As someone only tangentially familiar with this domain, I have questions about this: > Look at their CPU density and do the math on power. It's fairly low density. Look at the interconnects (100gb per system). Also fairly conservative. It's the perfect product to replace hardware that is aging out, as you wont have to re-plumb for more power/bandwidth, and you still get a massive upgrade. It sounds like the CPU density and network bandwidth are not great. If it's only suitable to replace aging systems, does that not limit their TAM? Or is that going to be their beachhead for grabbing further market share.
  - steveklabnik 1y ago
    I am not saying that I fully endorse the characterization of the parent, but it is true that we started selling these systems two years ago, and new hardware comes out with better stats all the time. Given how small we are, new designs and refreshes take a while. Part of growing as a company is being able to do this more often. We'll get there :)
  - adgjlsfhk1 1y ago
    For a small company, a limited TAM isn't a problem (and honestly is probably an advantage) if the overall market is big. Datacenters as a whole are a ~$30B market per year. The last thing you want as a small company is a bunch of different customers pulling you in different directions. By limiting your TAM, you limit the number of problems you need to solve for a few years, and if everything goes well and you start outgrowing your TAM, you can expand later.
esseph 1y ago
I imagine most of the customers are highly technical, not typical generic business class.

9dev 1y ago

If it translates to improved efficiency, sure. And this big of a round seems to indicate that idea has some merit

transpute 1y ago

What percentage of enterprise IT compute has not moved to a public cloud?

dmoy 1y ago
I'm not sure anyone really knows uptime institute publishes some good numbers from survey, which puts on prem + colo still at >50% last I checked. And still some additional 5% in like... on prem in closets. Last year Amazon said it was 85% on prem. I dunno who has the right numbers.
cortesoft 1y ago
I know I have been involved in multiple efforts to move the same workloads into and then out of the cloud, as corporate budgeting requirements prioritized either capex or opex at different times.
chadk 1y ago
Only 30% have moved to the public cloud https://www.goldmansachs.com/insights/articles/cloud-revenues-poised-to-reach-2-trillion-by-2030-amid-ai-rollout https://www.goldmansachs.com/insights/articles/cloud-revenue...
esseph 1y ago
Every single company I've worked with over the past 5 years has been repatriating from the cloud to their own DCs or colo. The cloud doesn't pan out for long running, predictable workloads. Most companies are and will continue to use VMs for many years.

zer00eyz 1y ago

> Do the people making buying decisions at this scale care if their sysadmins have better tools? Look at who oxide is selling to and for what reasons. It's about compute + software at rack scales. It does not matter if it is good it matters that it's integrated. Gear at this level is getting sold with a service contract and "good" means you dont have to field as many calls (keeping the margins up). > Everything we hear about Oxide sounds like an impressive green field implementation of a data center, but is that enough? Look at their CPU density and do the math on power. It's fairly low density. Look at the interconnects (100gb per system). Also fairly conservative. It's the perfect product to replace hardware that is aging out, as you wont have to re-plumb for more power/bandwidth, and you still get a massive upgrade.

keeda 1y ago
As someone only tangentially familiar with this domain, I have questions about this: > Look at their CPU density and do the math on power. It's fairly low density. Look at the interconnects (100gb per system). Also fairly conservative. It's the perfect product to replace hardware that is aging out, as you wont have to re-plumb for more power/bandwidth, and you still get a massive upgrade. It sounds like the CPU density and network bandwidth are not great. If it's only suitable to replace aging systems, does that not limit their TAM? Or is that going to be their beachhead for grabbing further market share.
- steveklabnik 1y ago
  I am not saying that I fully endorse the characterization of the parent, but it is true that we started selling these systems two years ago, and new hardware comes out with better stats all the time. Given how small we are, new designs and refreshes take a while. Part of growing as a company is being able to do this more often. We'll get there :)
- adgjlsfhk1 1y ago
  For a small company, a limited TAM isn't a problem (and honestly is probably an advantage) if the overall market is big. Datacenters as a whole are a ~$30B market per year. The last thing you want as a small company is a bunch of different customers pulling you in different directions. By limiting your TAM, you limit the number of problems you need to solve for a few years, and if everything goes well and you start outgrowing your TAM, you can expand later.

esseph 1y ago

I imagine most of the customers are highly technical, not typical generic business class.