Aug 06

ITunesI’ve just read on Slashdot that Google, according to its head of business development, Chris Sacca, isn’t going to release, or work for that matters, on any digital music sale service/website anytime soon.

And I must say, I agree with them. It is a huge market indeed, but, I think, not yet mature enough.

ITunes is a great service, an appreciable and clever approach to this money-fare. ITunes does not only work, it also binds the customer to Apple.
Once you’ve downloaded a song from ITunes you have no means of getting out the ITunes/IPod vicious circle.

I’m also eager to check out Microsoft’s new service, which is due to be launched soon. Hopefully it will not be just an ITunes clone but a significant improvement to Apple’s approach.

With this I don’t want to say that ITunes is not a great service. However it has been tough for Apple to strike a deal with the music majors and keep selling every song at the same price, and I believe it’s not going to get any easier. At least anytime soon.

This is not Google’s style, I don’t think they’re likely to find a compromise with those weighty music giants, rather then find I should probably say seek a middle ground.
My opinion is that they’ll wait for us, the audience, to make up our minds and decide what do we really want, pay per download (ITunes model), subscription fee (Napster), single songs or entire CDs.

For example for me the packaging is really important. If I buy a CD or a DVD I like to have also some sort of original/cool-looking package to expose in my living room.

Google will have enough time to join this business when the demands will be well defined and the majors will be ready to kneel to our decisions. The vox populi will tell Google when it’ll be time to barge into the market and innovate.

What do you think?

Aug 03

A few days ago I found this news on the net and I thought it was worth reporting in this space.

Some of you may know that Nasdaq, on July the 3rd, has created a new listing tier. The NASDAQ Global Select Market. A tier with the highest listing standards in the world. At the moment it lists approximately 1450 companies.

This new exchange made a real gaffe not few days ago. It erroneously knocked down Google (GOOG) of $350 a share in a mere 10 minutes.
On Thursday the 27th of July Google closing price was $387.12. Just a minute after the closure of the market at 4 p.m. the firm announced its second-quarter results: Better then expected earnings but decelerating revenue growth compared to the first-quarter.

What happened then is astounding. In the following minutes the stock went down to $364 and then up to $391. At that point somebody from Instinet-ATS, a Nasdaq company, entered an order probably inputing a wrong figure which started generating trades between 4:10 and 4:12 at the price of $38. This ill-timed mistake generated a queue of trades at prices between $37.81 and $38.05.

It is funny that such a highly ranked exchange has no means of controlling the price entered by a trader. Which should usually be contained between +/-10% of the last valid trade price.

Earlier that week a private investor had built up his position in Google of 200 units at a price of roughly $380 for an approximate grand total of $76000.
You can clearly imagine his surprise when he was told by his broker that the stock had dropped to the price of $38 per share. Resulting in a loss of about $68400.
The broker was however kind enough to reassure its client that it could have been a mistake. But they couldn’t guarantee it given the volatility of Google’s shares.
Nonetheless, the customer, according to the broker representative, became hysterical, complaining of chest pains and crying. “The way he sounded, I thought for sure the man was going to have a heart attack,” he said.

While the poor investor was struggling and clinging to his life with his fingernails Nasdaq took its sweet time to admit the mistake and announce its decision of voiding all after-hours Google trades below $352.07 (10% less of the day’s closing price). Nasdaq in fact waited until 5:01 p.m. to do so.
The good news is that our investor trapped in this series of incredibly unfortunate circumstances survived the hour. Even so, I’m quite sure that his life expectancy decreased of at least 5 years.

To give you a clearer idea of what our ill-fated hero went through during that hour I’ve created two charts.
To generate these charts I have assumed the investor took his position on Monday the 17th of July and calculated his returns using every day closing price adjusted for dividends and splits from Yahoo Finance.

This first one reports the real performance of its holding.
Real position return
Whereas this second one reports how his performances would have been, and effectively have been in his mind, during that surreal hour.
Fake position return and heatbeat

Aug 03

I’ve been recently investigating on what it’d take to host a hugeServer Farmly successful website. For example, something like MySpace.com.

Good example according to its 27.4 billion page-views just during the month of April 2006 and to its performances notwithstanding that amount of traffic. And bad example for its recent problems and down-times.

MySpace is one of the most popular websites on the net, in just a few years it has become so famous that it is frankly difficult to imagine how a company can possibly keep up with its growth when it’s happening at such a fast pace.

Not a long time ago we’ve all seen the site fall miserably to the ground for what it was alleged to be a simple power failure in its server farm. Let me repeat this again because this is a point which ought to be stressed. Its server farm, singular.

I can’t believe that.

And it is in fact not true, as to the sixth of april this was MySpace’s extensive IT architecture: 2,682 Web servers, 90 Cache servers with 16GB RAM, 450 Dart Servers, 60 database servers, 150 media processing servers, 1,000 disks in a SAN (storage area network) deployment, three data centers and 17,000MB per second of bandwidth throughput.
Other still impressive numbers about MySpace.com are the amount of space it sets aside for MP3s and videos: 100TB. And the additional 200TB for dynamic content.

Three data centers. So what was alleged to be a simple power failure was clearly something more. Unless those three data centers remained power-less at the same time. For a long time.

Nevertheless MySpace.com deserves our admiration. It is, after all, a network that is, and has been, growing beyond any possible forecast. Roughly 250.000 new users per day.
Those failure are not, however, what you’d expect from a giant, a monster of the net.
Geographical mirroring is one of the fundamentals things in hosting a successful website. if you really want to ensure to all your customers the constant availability of your website you have better give it some serious thoughts.

Of course this feature feature does not come free nor it is easy to implement, the content of your website needs to be replicated in real time (as often as possible, as it happens) between all the mirrors you have scattered across the earth.
Even this would-be-bullet-proof solution, however, has its weaknesses. With the current DNS it is, in fact, impossible to send a client directly to the relevant mirror. All the connections have to reach/”strike”, the same location (Please correct me if I’m wrong here). Ideally just a load balancer/router configured to forward the requests to the designated mirror. Even this solution (involving more than one load balancer or router, ideally an indefinite number of backup machines) can sometimes prove itself unreliable.

Another factor to consider when creating a geographically separated mirror of your website is that you’ll need (and you’ll pay for it, to be sure) more bandwidth that you’d normally use. A large part to serve the website to your users, the rest to replicate it through all the mirrors.

You do not only need your content to be replicated all over the world to host flourishing websites, you also need a massive “fire power” in each and every one of these locations.
There are two possible ways to go at this. The first is “develop as fast as possible an application that is not scalable and then, if your business is successful, bank on massive computational power” and the second “Create a scalable software so that when the time comes you’ll rise up to the occasion without incurring in excessive hardware costs”.

Both creed works, because ideally, even if your application is not scalable, you’ll have enough success and enough money saved from the development to fix the pieces that need mending, thus effectively switching to plan B. I’ve talked about this in one of my previous posts (Critical Code Mass) and I’m certainly not going to repeat myself here.
The former approach saves you some costs at the beginning but might prove itself more expensive than the latter in an advanced stage. What most entrepreneurs would say is, as might be expected, lets pick the first one and hope to sell the entire enterprise before it actually gets to the critical point.
Unfortunately few of the buyers feel that way and have the annoying habit of putting your code through a due diligence process.

Enough already, lets get back to the main subject.

We covered GM (Geographical mirroring), but, as I said a couple of mouthfuls before. GM is not enough. You also need great deal of power behind each node.

You would, naturally, put a load balancer and an indefinite number of web servers in each mirror. And you’d discover at your expenses that it is still not enough. You’d soon run into storage performance problems.

Once you’ve reached that stage, the solution is to Switch to a SAN (Storage Area Network) architecture.
And now, after you’ve distributed your data over multiple servers in a SAN, you feel safe, you finally see the light at the end of the tunnel… Wishful thinking… You are wrong.
What you are hosing is a website, and, as such, it is bound to create troublesome “hot spots” on the storage system associated with the most frequented areas of the website.

The next natural step in this upward spiral is the virtualization of your storage space. This means that more than one server will be providing the same content and they will appear as a single storage device to their client.
This can be, as for all the previously mentioned technologies, achieved through hardware or software means. The most famous of which is the InForm® Operating System, owned by 3PAR. The firm which, indeed, serves MySpace.com (both hardware and software solution).

At this point you might argue that I’ve discussed only of storage solution and haven’t said a word about web-servers and their limits. I decided not to do so because, regrettably, or luckily if you’re not the kind of geek who appreciates the implementation of big and complicated networks, there’s no final or more comfortable solution. You just need to buy more bandwidth, optimize you code and queries, and of course, buy more servers to put behind the load balancers in each and everyone of your mirrors.

Now then, you might think we’ve covered allot of possible solutions. In fact, we’ve considered almost everything about MySpace’s architecture. Even so, this is just the beginning if you think about it.
My space is, as it happens, not yet providing its services to China, but looking at the feasibility of the venture.

Now that is a challenge, a challenge that I don’t feel like undertaking (even just in the form of a blog post, and it’s also too late). I’ll let MySpace.com do it and I’ll be following their progress and their architecture adjustments closely.

I’m sorry if I did make any mistake or if this article is in any way inexact, I’m not big as a technician and I don’t pretend to be an expert on net/hosting-matters.
Oh, I’m also sorry for writing such long articles but I can’t help myself, I like writing I still find this sort of things fascinating.

Take it easy,

Steph

Aug 01

First post on the new blog.
I just wanted to express my gratitude towards all the people that took the time to help me find the platform and the hosting for this blog.

A special thank goes to Andrea for putting up with me during the installation and configuration of WordPress.

Take it easy

Stefano

Aug 01

All right, no big updates. I’ve been incredibly busy at work during the last three weeks.

I’m writing this post because I’m seriously getting tired of this blog.com thingy, I can’t modify the CSS or customize the appearance of the blog in any way.

I’m looking for a new space, maybe blogspot? I’m no expert on the matter so I’m open to suggestions here.

Go well

Stefano

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