China Internet Metrics: ChinaNetCloud

Copyright © ChinaNetCloud

ChinaNetCloudComputing Infrastructure for High-Growth Companies

ChinaNetCloud云络网络科技（上海）有限公司

June, 2009

StartONomics - Metrics

Servers, IDCs/DataCenters, CDNs, Operations

by Steve Mushero, Founder & CEO, CTO

2StartONomics Beijing 2009


© 2009 ChinaNetCloud

Topics

Not your grandfather’s Internet

How things get bought & sold in China

Metrics and key things to think about

Architecture




About Steve

Founder, CEO & CTO of ChinaNetCloudChina’s only Internet Managed Services & Cloud Computing companyWe run the backend-servers & infrastructure for Chinese Internet & Game companies

Before that, CTO of Tudou (土豆网)World’s largest bandwidth userOver 100 million videos/day50,000 new videos/day (over 1 million minutes)

Consulting to various large-scale sites like 51.comMoved to Shanghai in 2005 from Silicon Valley20 years of work at CTO in banking, Internet, health-care, operations




Not your grandfathers’ Internet

World’s largest and still growing – 350M+ usersVery diverse – many regions, economically, culturally

1st Tier Cities – SH, BJ, GZ2nd 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?

1.03 1.111.37

1.62

2.10

2.53

1.23

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2005.06 2005.12 2006.06 2006.12 2007.06 2007.12 2008.06

网民人数

亿人

China Internet Population

Mil

lio

n o

f U

sers

0

50

100

150

200

250

300

103 111111 123 137162

210

253

300

2008.12





Many enormous players – more concentrated than the U.S.

VideoHundreds of millions of videos/dayCosts millions of $$/month

Portals

SNS

P2P DownloadsVideo / Movies

GamesMany very large MMORPG – Giant, The9 / NetEaseMany popular casual games





Monopoly Telcos/ISPs – just 30 of them !ChinaNetCom – North, 30% of ChinaChina Telecom – South, 60% of ChinaCERNET – Students, expensive & complicatedChina RailCom and others

No competitionLimited serviceLimited cooperation

Yankees vs. Rednecks (or North vs. South)Very poor connectionsStudents isolated

Latency an issue, especially for games





No BGPUsually use 2-3 IP addresses per serverRequires cross-China strategy

No BGP, really!Well, you can buy it in 2-3 IDCs for high prices

CDNs a fact of lifeTo connect north/southTo distribute content close to use





IDCs (Data Centers) everywhere, but very diverseVery small – often old office buildings, even new sites are smallLimited power – often 10-15 servers per rack, making racks expensivePoor service a problemPoor connections (overloading) a problem – understand city, province, backboneVery wide variety of owners, agents, and contracts21ViaNet, ChinaNetCenter, SRT are best

Choose your cities carefullyShanghai inbound traffic very congested at night from HZ, SZ; use Ningbo

Your first server must be in your home cityTied to ICP license





ICP LicenseNo foreign company or WOFE

Game LicenseWhat is a game ?

Content ControlsDon’t forget the cost and systems to do thisNo Porn - yes, reallyNo GamblingNo sensitive contentApplies to foreign operators & languagesAutomated filtering & human review





GuanXi is often criticalBaijiu 白酒 can be important Unknowns get high prices and bad service

Very common for startups

Knowns get good prices and better service50% off (more than trade discounts)

Get references for vendorsContracts advisory at best





• 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




What you need - Servers

• 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




What you need – IDC & Bandwidth

IDCs (Data Centers) are everywhere !10x Price differences BJ/SH to country, Guanxi importantRacks – 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




What you need - CDNs

CDNsMust-have for real sites for geographic distribution

But cheap in most cases You must code / prepare for this – AJAX is your friendLimited foreign competition; limited technology/serviceUsually sold by Mbps/Gbps, not Bytes per month

Free bandwidth during off-peak

ChinaNetCenter, TXNetworks, 21ViaNet are bestShould use CDN monitoring

NetWorkBench is best




What you need - Operations

Very hard to find peopleInternet growing much faster than supplyMost people in mid-20s

SecurityNot that important, so usually terrible

PerformanceRequires experience and tools

StabilityRarely thought of, 9s mean nothing

BackupsNot common, even for big sites

MonitoringBasic at best




Thank You

[email protected]

16


China Net Cloud Technology (Shanghai) Company LimitedX2 Space 1-6011238 Xietu Lu, Shanghai, 200032 China

[email protected]+86-(21)-6422-1946 Confidential© 2009 ChinaNetCloud