China Internet Metrics: ChinaNetCloud

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Startonomics Beijing - June 11, 2009 …

Startonomics Beijing - June 11, 2009
Steve Mushero, CEO & CTO, ChinaNetCloud

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  • 1. 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
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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