ChinaNetCloud
Computing Infrastructure for High-Growth Companies
ChinaNetCloud
云络网络科技（上海）有限公司
StartONomics - Metrics
Servers, IDCs/DataCenters, CDNs, Operations
by Steve Mushero, Founder & CEO, CTO
June, 2009 Copyright © ChinaNetCloud

Topics ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Not your grandfather’s Internet
How things get bought & sold in China
Metrics and key things to think about
Architecture
© 2009 ChinaNetCloud StartONomics Beijing 2009 2

About Steve ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Founder, CEO & CTO of ChinaNetCloud
China’s only Internet Managed Services & Cloud Computing company
We run the backend-servers & infrastructure for Chinese Internet &
Game companies
Before that, CTO of Tudou (土豆网)
World’s largest bandwidth user
Over 100 million videos/day
50,000 new videos/day (over 1 million minutes)
Consulting to various large-scale sites like 51.com
Moved to Shanghai in 2005 from Silicon Valley
20 years of work at CTO in banking, Internet, health-care, operations
© 2009 ChinaNetCloud StartONomics Beijing 2009 3

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
World’s largest and still growing – 350M+ users
Very diverse – many regions, economically, culturally
1st Tier Cities – SH, BJ, GZ
2nd Tier Cities – HZ, SJ, SZ, CQ, TJ, NJ, CD, QD, DL, XM
3rd Tier Cities – WH, ZZ, WM, WZ, 50+ more
Where, who are your customers?
China Internet Population
300
300
3.0 亿人
253
2.53
250
Million of Users
2.5
2.10
210
网民人数
200
2.0 1.62
162
1.37
137
150
1.5 123
1.23
1.03 111
111
1.11
103
100
1.0
50
0.5
0
0.0
2005.06 2005.12 2006.06 2006.12 2007.06 2007.12 2008.06 2008.12
© 2009 ChinaNetCloud StartONomics Beijing 2009 4

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Many enormous players – more concentrated than the U.S.
Video
Hundreds of millions of videos/day
Costs millions of $$/month
Portals
SNS
P2P Downloads
Video / Movies
Games
Many very large MMORPG – Giant, The9 / NetEase
Many popular casual games
© 2009 ChinaNetCloud StartONomics Beijing 2009 5

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Monopoly Telcos/ISPs – just 30 of them !
ChinaNetCom – North, 30% of China
China Telecom – South, 60% of China
CERNET – Students, expensive & complicated
China RailCom and others
No competition
Limited service
Limited cooperation
Yankees vs. Rednecks (or North vs. South)
Very poor connections
Students isolated
Latency an issue, especially for games
© 2009 ChinaNetCloud StartONomics Beijing 2009 6

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
No BGP
Usually use 2-3 IP addresses per server
Requires cross-China strategy
No BGP, really!
Well, you can buy it in 2-3 IDCs for high prices
CDNs a fact of life
To connect north/south
To distribute content close to use
© 2009 ChinaNetCloud StartONomics Beijing 2009 7

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
IDCs (Data Centers) everywhere, but very diverse
Very small – often old office buildings, even new sites are small
Limited power – often 10-15 servers per rack, making racks expensive
Poor service a problem
Poor connections (overloading) a problem – understand city, province, backbone
Very wide variety of owners, agents, and contracts
21ViaNet, ChinaNetCenter, SRT are best
Choose your cities carefully
Shanghai inbound traffic very congested at night from HZ, SZ; use Ningbo
Your first server must be in your home city
Tied to ICP license
© 2009 ChinaNetCloud StartONomics Beijing 2009 8

Not your grandfathers’ Internet ChinaNetCloud
Computing Infrastructure for High-Growth Companies
ICP License
No foreign company or WOFE
Game License
What is a game ?
Content Controls
Don’t forget the cost and systems to do this
No Porn - yes, really
No Gambling
No sensitive content
Applies to foreign operators & languages
Automated filtering & human review
© 2009 ChinaNetCloud StartONomics Beijing 2009 9

How things get bought & sold in China ChinaNetCloud
Computing Infrastructure for High-Growth Companies
GuanXi is often critical
Baijiu 白酒 can be important
Unknowns get high prices and bad service
Very common for startups
Knowns get good prices and better service
50% off (more than trade discounts)
Get references for vendors
Contracts advisory at best
© 2009 ChinaNetCloud StartONomics Beijing 2009 10

How things get bought & sold in China ChinaNetCloud
Computing Infrastructure for High-Growth Companies
• Hongbao (红包) issues
• Buyers often accept money to buy
• Distorts the buying process, vendor selection, value
• Look at the merits
• Follow the money
• Control the money
© 2009 ChinaNetCloud StartONomics Beijing 2009 11

What you need - Servers ChinaNetCloud
Computing Infrastructure for High-Growth Companies
• Servers – everyone needs them
• Buy vs. lease – conserve capital
• Dell dominant, plus HP – Brand buying is surprising; few white boxes
• Don’t buy too much – Y20,000 is a good Dell (US$3,000)
• Scaling Architecture – Scale !
• Prepare for multiple of everything
• Session management critical
• DB management critical
• CDN support critical
• AJAX helpful
© 2009 ChinaNetCloud StartONomics Beijing 2009 12

What you need – IDC & Bandwidth ChinaNetCloud
Computing Infrastructure for High-Growth Companies
IDCs (Data Centers) are everywhere !
10x Price differences BJ/SH to country, Guanxi important
Racks – Up to Y7,000/rack/month ($1,030USD/mo)
Power – But no power !
10A good, 15A great, 20A amazing, 30A dreaming (220V)
Bandwidth – Expensive but big, LAN can be bottleneck
100Mbps shared min, 1Gbps for larger sites,
10G+ distributed for big guys, 100G+ video
Service – We’ve heard of that
© 2009 ChinaNetCloud StartONomics Beijing 2009 13

What you need - CDNs ChinaNetCloud
Computing Infrastructure for High-Growth Companies
CDNs
Must-have for real sites for geographic distribution
But cheap in most cases
You must code / prepare for this – AJAX is your friend
Limited foreign competition; limited technology/service
Usually sold by Mbps/Gbps, not Bytes per month
Free bandwidth during off-peak
ChinaNetCenter, TXNetworks, 21ViaNet are best
Should use CDN monitoring
NetWorkBench is best
© 2009 ChinaNetCloud StartONomics Beijing 2009 14

What you need - Operations ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Very hard to find people
Internet growing much faster than supply
Most people in mid-20s
Security
Not that important, so usually terrible
Performance
Requires experience and tools
Stability
Rarely thought of, 9s mean nothing
Backups
Not common, even for big sites
Monitoring
Basic at best
© 2009 ChinaNetCloud StartONomics Beijing 2009 15

ChinaNetCloud
Computing Infrastructure for High-Growth Companies
Thank You
Steve.Mushero@ChinaNetCloud.com
China Net Cloud Technology (Shanghai) Company Limited
X2 Space 1-601
1238 Xietu Lu, Shanghai, 200032 China
www.ChinaNetCloud.com
Sales@ChinaNetCloud.com
© 2009 ChinaNetCloud +86-(21)-6422-1946 Confidential
StartONomics Beijing 2009 16