Splitted-Desktop Systems (SDS) Jean-Marie Verdun President
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1 Splitted-Desktop Systems (SDS) Jean-Marie Verdun President
2 We rethink everything SDS is a french design house focusing on designing today s computer and datacenter infrastructure. We care about our earth, are focused on green and recyclable technologies. We think that disruptive and technology sharing is the only way to solve upcoming challenges
3 Executive Team Jean-Marie Verdun President, CEO Passionate by technology Jean-Marie has participated to the expansion of major IT technologies during the past 20 years including the Alpha chip, highly parallel scientific clusters and free software. Richard Bedrossian Financial manager Richard joined SDS at the beginning of This is is first startup experience after having worked during 15 years as accounting consultant and reviewer. He follows SDS from day 1. Isabelle Verdun General Manager Isabelle handles daily operations at SDS, as well as human resources, accounting and financial operations. Vicente Tomas Q&A, Production Manager Vicente was our third employees and handle the production and quality test team. He is an experienced IT and consumer electronic person following 10 years at LaCie.
4 Cloud Computing is the next big thing And we build it from Ground 10 Millions servers produced per year 280 Millions PC produced per year 958 Millions Smart phones produced per year SDS hardware engineers are 200% focused on designing new hardware technologies to support high devices count and corporate infrastructure. We believe this could happen only using disruptive approach by redesigning everything from ground with the global infrastructure in mind.
5 What do we offer? Engineering services Our engineering team develops innovative solution based on the knowledge we acquired during our past 20 years of experience in the IT industry Open Compute Hardware All our developments are performed under the Open Compute license. We do provide Open Compute hardware! Support Our support team provides on site support with an innovative approach and process. Production and Staging Our production team assemble in France any kind of configuration on site or prestaged at SDS warehouse Purchasing Our purchasing department provides consulting and help to source new technologies everywhere in the world
6 Customer value proposition: Live Free or Die Cloud market growth Only major players or ultra flexible actors can survive IaaS average cost Open Innovation is the only solution to disaggregate costs and insert value in hardware platform for small and medium Clouds providers or users
7 SDS Business and margin model High volume business through central buying services (OCP parts and required options). Very low margin used to fix initial customer cost issues. Engineering Engineering services are developing next generation of OCP systems through Crowdfundings / Sponsoring approach. 50% attach rate from support customers. Purchased goods staging and deployment services mid range revenue with higher margin than purchasing. 60% attach rate from purchasing. Production and staging Circle size represent revenue percentage. Border thickness represents margin proportion against revenue. Open Compute Hardware Support On site hardware support with weekly, bi-monthly or monthly operations. Higher margin than traditional hardware support business because the customer pay for the parts and interventions are pre-scheduled. 30% attach rates from staging.
8 Why we will succeed SDS is not single, but part of an eco system, backed by major IT players, and driven by us in Europe.
9 OCP Europe summit First international event of Paris- Saclay Campus with more than 1000 attendees. SDS is leading the organization with the foundation. Official European OCP launch with Fortune 500 and CAC40 companies. Polytechnique campus is the place where the event will happen HEC International MBA students involved in Business model, and OCP implementation in Europe.
10 We drive the community in Europe Bi monthly Meetup in countries Quarterly European engineering workshop Annual Summit Project coordinations with Project lead
11 The competition: Quanta and ODM Strength One of the biggest ODM in the world Hyve partner Starting operation in Europe Weakness Aligned for high volume Dual strategy with bad channel behavior
12 The competition: Hyve Strength Subsidiary of Synnex Facebook privileged partner First ultra active OCP company US based Weakness Structured to address big customers (Wholesaler vs VAR model) Not present in Europe Facebook dependant We need to prove that OCP is not Hyve
13 The competition: OEM and traditional partners Strength Extremely good relationship with part manufacturer Established brand Strong services Weakness Business model change Go to market Added value?
14 What s need to be done Sustain growth to create a pan-european company in 3 years by successfully bring SDS as an established community leader in November 2014 Adapt SDS Offices but stay in Paris-Saclay Campus Acquire OCP demo hardware and showroom Secure 5 beta OCP sites in Europe for customer testimonial in October (travel cost) Hire 3 key resources ( 1 sales manager, 1 purchasing manager, 1 electrical engineer) Expand Meetup concept everywhere in Europe Keep innovating and active in the community
15 Server mechanical cost breakdown from server to building 1 Server generation has a 5 Years lifecycle Server chassis Server Infrastructure (Cluster chassis, racks ) 30 to 200 $US Datacenter building $US / sq meter 15 Years lifetime Basic minimal mechanical cost is about: Chassis + ½ Infrastructure + 1/3 Datacenter sq m (84 server per rack) Total = = 84 $US per server 50 to 300 $US 5 Years lifetime 10 Years lifetime 8 servers group per generation is minimum 672 $US 8 servers group during datacenter lifecycle is minimum 2016 $US These hypothesis are based on datacenter ownership not hosting
16 Rugged POD The challenge Create an outdoor computer casing which can support servers, power and network Work in any kind of environment without air conditioning or humidity control Must support low cost and shall be easy to industrialize Remove the need for any datacenter building Target production cost 1200 $US with 15 years lifecycle The solution Use immersive cooling technology into a sealed barrel Support up to 8 micro ATX motherboard Up to 800 Watts per barrel (36 cm diameter/60l) Use Shell Diala as coolant
17 Cloud server cost breakdown and interconnect A server CPU cost about $US and runs at 70 C Tj A mobile CPU cost about 150 $US and runs at 95 C Tj with very closed performances to server part Is there something wrong? Fabric flexibility is key for Hadoop class application and multiple data pattern access A 40 Gb/s NIC is about 600 $US without switch
18 Datacenter as a PCB The challenge Create a Cloud Computing server which might run up to 35 C degrees Reduce as much as possible cabling between nodes Share I/O devices (network NIC, storage interface) which are very costly compared to compute resources Reduce compute node cost to sub 600 $US Fabric included The solution Use industry standard mobile part with ECC support (they expose higher Tj) Use PCI-e Fabric rather than Ethernet (PCI is free on most CPU) No NIC Use SR-IOV to share devices Put everything on the same PCB!
19 They are our customers and partners
20 And next? Expand business Open subsidiaries where the community is the most active in Europe. Create adaptive designs through small engineering team. Create ready to use solution with software pre-loaded and work with ISVs to expand customer coverage. Introduce OCP hardware in traditional channel
21 Business opportunity hypothesis 2013 European server market numbers (*) French server market is about 280k units / Year European server market is about 2 400k units / Year Total European market value is about 12 B $US / Year HP: 30%, IBM/Lenovo: 28%, Dell:15%, Fujitsu:12%, Others: remaining But Cloud, IaaS, PaaS is a subset of it focused on low cost And IBM sales to Lenovo might create some opportunities 5% European unit server market share in 3 years might be doable if we execute a fast track plan (*) Source Gartner
22 Human resources Open 3 subsidiaries during the next 3 years One in Northern Europe, UAE, North America Hire 3 lobbyists ( 2 North America, 1 Europe) Setup dual sales team with 1 sales / 1 presales
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