Posts Tagged 'Customer Success'

April 29, 2014

The Media Industry is Making the Move to Cloud

Rumor has it that at the entire rendering of James Cameron’s “Avatar” using 3DFusion required more than 1 petabyte of storage space. This is equivalent to 500 hard drives of 2 terabytes each, or a 32 year-long MP3 file! The computing power behind this would consist of about 34 racks, each with 4 chassis containing 32 machines. All of that adds up to roughly 40,000 processors and 104 terabytes of RAM.

High-res, long-form media files that can reach hundreds of gigabytes of storage are regular phenomena in the media industry. Whether it’s making the next “Avatar” or creating the next big, viral ad campaign, technology is fundamental to the media industry. But, the investment required to set these up is enough to boggle the mind and dissuade even the high risk-takers. So, why buy when you can rent?

Cloud allows you to rent, own, use, and return the infrastructure with no capex. That gives users access to unlimited compute power, including servers, network, storage, firewalls, and ancillary services, all available on demand, with pay-as-you-go billing offered hourly or monthly.

Cloud services are an increasingly viable avenue for the industry to leverage and support the performance needs of online media storage, as well as collaboration environment. The benefits of a customizable approach to the cloud include: digital archives, production support, broadcast facility resiliency, high-intensity processing, and derivatives manufacturing for transcoding and encrypting. An on-demand, scalable infrastructure is the next step toward reducing production and operations costs, simplifying data access, and delivering content faster to the end user.

This year at ad:tech asean, SoftLayer will present on how the media industry is utilizing cloud infrastructure. So, I thought this would be a good opportunity to share some interesting customer stories about media companies at the top of their games and successfully growing their businesses on the cloud. Here are two of those stories.

The Loft Group, an Australian creative digital agency, specializes in creating e-learning campaigns for global brands. The company won a contract with cosmetics giant L’Oreal but realized that in order to go big with their platform, they needed technology that provided their support team with the necessary analytics. The Loft Group selected SoftLayer as the cloud platform for its digital e-learning campaigns. Moving their services to the cloud helped the company achieve global scale, consistent performance across multiple countries and grow at a pace which slashed a 3- to 5-year transformation timeline down to just months.

According to eMarketer’s forecast, global e-commerce sales will top $1.2 trillion by 2016. That growth is projected to continue by 20 percent every year. Ad personalization is playing a larger part in maximizing e-commerce business. To keep up with the demands of real-time ad personalization, companies like Struq, an ad personalization platform, require an infrastructure that can process high volumes at high speeds.

Struq offers highly targeted ad campaigns across a range of promotional platforms. The company often handles more than 2 terabytes of raw event data every day, processing more than 95 percent of requests in fewer than 30 milliseconds. And when the company’s growing European customer base demanded immediate server allocation, Struq turned to SoftLayer for scalability. We were able to offer on-demand provisioning as well as the low latency their customers required. A detailed story of how Struq achieved the requisite scalability and success with SoftLayer is available here.

More stories to come, so stay tuned! In the meantime, you can hear more customer stories during the first leg of ad:tech asean, a prelim roadshow in Jakarta, Kuala Lumpur and Bangkok.

-@namrata_kapur

August 6, 2009

Punishing Success

Let’s say you worked for years to become a world class athlete. As a kid, you were in the gym while other athletes were at the movies. You were in the weight room on Saturday nights when no one else was there. You shunned pizza and soda in favor of grilled fish and fresh fruit. By the time Letterman hit the evening airwaves, you were well into restorative sleep. You were out the door for your morning runs while other athletes snoozed. As a result of all this, now you perform at an elite level and are very successful at your sport. Suddenly, you find that there are people who have a vested interest in helping you maximize your athletic potential. Your coaches, your managers, and companies who pay you to endorse their products all want to see you do your best. Why? Because doing your best helps them be more successful.

So, they provide you with all the things you need to maximize your potential. You get the best training gear and training regimens. You get the best nutrition. You get the right amount of rest. All these things help you maximize your potential. Thus the relationship is a nice symbiotic cycle – the more success you experience, the more success your coaches, managers, and endorsement companies experience. Win-win. Makes sense, right?

So, imagine the silliness if your coaches, managers, etc., made the decision that because you were so fortunate in your success that you had to “give back” almost half your resources to train the athletes who loafed, stayed out late, partied and gorged on pizza. Because you’re such a hard-working and smart athlete, you don’t need all those resources to participate adequately in your sport, they rationalize. Consequently, you don’t hit your potential, your coaches and managers don’t distinguish themselves, and endorsing companies don’t call you. You then feel that you’ve been punished for your hard work and success.

Sadly, much of our government policy falls under this flawed logic. The IRS just released their latest income tax stats for the year 2007. For that year the top 1% of earners paid 40.4% of all income taxes collected. We all know that right now we’re coming out of a recession and we really folks to invest in businesses and hire people to get the economy moving. So how do the 2007 numbers compare to, say, the 1980’s? During the ‘80’s, we managed to shake off the “stagflation” of the ‘70’s and get the economy rolling again. It was during this time that many technology juggernaut companies were spawned – Microsoft being a good example. So, how much of the income taxes in the ‘80’s were paid by the top 1% of earners? The average for the 10 years from 1980-1989 was 22.2%.

Let’s do some quick math. $1.116 trillion in income taxes was collected in 2007. Of that, $455.3 billion was paid by the top 1% of earners. If they paid 22.2% as in the ‘80’s, they would have paid $247.8 billion in taxes, and right now we’d have $207.5 billion MORE dollars invested in our economy. That would be quite a stimulus package! Our current policy punishes success and chokes off fuel from our economic engines while we’re trying to climb out of a worse recession than we had in the ‘70’s. Not smart.

Some may think that this would simply mean that our government deficit would be $207.5 billion higher. This is not the case at all. These folks that make up that top 1% didn’t get there by being lazy or not putting their money to work. I know some folks in that group, and they WANT to put their money to work! I know one gentleman who had to be told some legal docs for a deal could not be prepared over the weekend because Christmas was on that weekend. These folks are like the world class athlete I mentioned above – by and large they’re disciplined and hard-working. Their money will build new businesses and create more jobs, and the government will collect far more revenue from this new economic activity than it would give up in collections from these top 1% folks. Think about it – how many of us have ever been hired by a “poor” person? Instead of punishing economic success, we should encourage it!

Bottom line, if government policy were to make sense, it would encourage these folks to maximize their economic potential and find the correct balance of revenue to collect and yet still promote economic growth. What would we prefer? That the government collects 50% of $1 trillion or 30% of $2 trillion? Hint: 30% of $2 trillion is a WAY better deal.

At SoftLayer, we think very differently about things. We simply do not punish our customers for succeeding. We empower them to be more successful – why? Because if our customers succeed, we succeed. We get this.

Can we prove this? Perhaps a look at how customers vote with their feet is an indicator. For the past few months, SoftLayer has seen the lowest percentage of customers terminating business with us in our history. If we punished our customers for their success, they would go elsewhere.

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