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Oxide Computer raises $445M (SEC Form D)

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Re: Oxide Computer raises $445M (SEC Form D)

#51

Earlier quoted context omitted.

Logical. They probably will be aquihired by someone like Broadcom.

I can't think of an outcome that would be more odious to Steve Tuck and Brian Cantrill. Brian in particular still talks about the soul-crushing experience of Oracle's hostile takeover of Sun Microsystems.

How about the sellout of Joyent to Samsung?

Re: Oxide Computer raises $445M (SEC Form D)

#52

Earlier quoted context omitted.

Logical. They probably will be aquihired by someone like Broadcom.

Is there anything they're doing that can't be replicated by hypervisor/management software on commodity x86 servers? Seems like their "secret sauce" is a software stack that "just works" more than any actual special feature of the hardware . I feel like Broadcom with its VMWare acquisition could easily take these guys out if they wanted to (or for that matter, any OEM that has a line of servers + network & storage ha…

What can't be replicated is a culture of simplicity, quality, and security. I've seen this firsthand working at IBM.

Re: Oxide Computer raises $445M (SEC Form D)

#54
post #46

Earlier quoted context omitted.

VC funding is not for "a sustainable long-term business".

Read the blog post on their series C [0]. It's not long, but the most relevant excepts are: > So if we didn’t need to raise, why seek the capital? Well, we weren’t seeking it, really. But our investors, seeing the business take off, were eager to support it. And we, in turn, were eager to have them: they were the ones, after all, who joined us in taking a real leap when it felt like there was a lot more risk on the t…

It says "they've entirely derisked capital" and now ~6 months later they raised twice as much. Lying is a strong word but that post clearly wasn't accurate at the time.

They've raised a lot of money and there will be pressure for an exit sooner rather than later.

Re: Oxide Computer raises $445M (SEC Form D)

#55
post #30
post #20

Earlier quoted context omitted.

You are 100% correct but you’d be shocked at the mortal terror that “self hosting” inflicts in the minds of even people who should really know better. Also forget Dell. Check out DataPacket.com and other metal hosters. You don’t need to physically rack unless you are huge or have special hardware or security needs. The cloud industry has done an incredible job at a kind of soft pervasive propaganda that running stuff…

You’re expressing a very narrow engineer’s perspective that doesn’t consider the realities of managing bare metal hosting at any kind of scale. These are business decisions, made in terms of core competencies, capex vs. opex, and the difficulties and cost of building out a reliable, sustainable hosting operation that handles all the compliance and security requirements, and the full range of “ilities” that real busin…

You’re forgetting blame: if an on-prem system has an issue, that’s 100% on you. If AWS/GCP/Azure has an outage, that’s just bad luck, and everyone else suffers too.

Re: Oxide Computer raises $445M (SEC Form D)

#56

Earlier quoted context omitted.

I can't think of an outcome that would be more odious to Steve Tuck and Brian Cantrill. Brian in particular still talks about the soul-crushing experience of Oracle's hostile takeover of Sun Microsystems.

How about the sellout of Joyent to Samsung?

Joyent was likely a part of what convinced Brian Cantrill that a new cloud machine was needed. They had their own stack running on commodity OEM hardware in their own cloud - likely a painful experience, since Brian talks a lot about how much of a difference it makes to own the complete root of trust and everything in it.

Re: Oxide Computer raises $445M (SEC Form D)

#57
post #9

I've seen posts about Oxide for years now, but do they actually ship hardware? I've never seen images, or posts about companies with their new Oxide Thingamajig™

We've shipped kind of a lot of hardware at this point!

there are even images of it on our website!

Re: Oxide Computer raises $445M (SEC Form D)

#58
Just like the last Oxide post, I just have to say how excited I am for their product as a concept. I really hope to see them continue to do well!

Selfishly of course so I can make sure there are more episodes of Oxide and Friends for years to come. Adam annd Bryan's ability to reference thirty year old simpsons episodes is unmatched.

Re: Oxide Computer raises $445M (SEC Form D)

#59
post #14

Earlier quoted context omitted.

tbf they are probably looking for customers with cloud spend ending in 'm'

I wonder what's the selling point at that scale. If your ~monthly~ cloud spend ends in "M", you can easily justify hiring the talent needed to wrangle conventional bare-metal (in fact you can do so at much lower spends, but at these spends it becomes a rounding error). Edit: my bad, read that as monthly instead of yearly. Still, a yearly spend of millions would still make sense to bring that in-house.

VC or private equity fueled companies are weird. At my place we are spending 8 figures a year just in AWS, and it's not like they planning to move to bare metal but, they're in fact removing stuff from their old datacenter. And that bill doesn't include some of the other SaaS like Mongo or Elastic.

With bills of that magnitude, each time I do a little house cleaning and delete some old data, change storage classes, or discover some unused servers... the savings (that are barely a rounding error on their bill) could pay for a whole year of an engineer or a bunch of servers that could power a good chunk of their production traffic.

Re: Oxide Computer raises $445M (SEC Form D)

#60
post #16

Earlier quoted context omitted.

We had the opposite experience. We contacted them through their form this year and they were happy to discuss with us even when we communicated from the beginning we wouldn't be customer in the short to medium term and even for single rack systems.

How did that compare to the big firms? HPE, Dell, and so on.

The rack were not insanely expensive, expandable so you don't have to build fully stacked racks from the beginning. Purely based on a hardware, compares to other blade systems but pricier.

The interesting part was the software, management interface, Terraform provider and how everything just fit together. Having storage, network and compute all in a single managed rack package brings a lot of value and brings down TCO. Really appreciated the security group like approach to network policies.

Unfortunately I haven't worked with HPE or Dell recently so I'm not sure what they currently offer.

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