Enterprise

Inside Facebook's Fantastic Plan To Dominate Cisco's $23 Billion Market

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Facebook Open Compute Project Najam Ahmad
Facebook Director, Technical Operations Najam Ahmad  Najam Ahmad

Hands down, one of the most important tech projects Facebook has ever created is the Open Compute Project (OCP).

Business Insider recently spoke with two of Facebook's OCP leaders to get the skinny on their latest, ambitious plan.

To recap: OCP launched two years ago to create "open source" data center hardware. That means hardware vendors like HP, Dell and Cisco don't control the product designs. Instead, customers like Facebook and Goldman Sachs do.

OCP's designs call for fewer materials and minimal cost, but require faster performance than what vendors typically offer.

More importantly, OCP gives the designs away to everyone for free. Any enterprise can take them, modify them, and send them out to contract manufacturers, who are standing by to build them.

The project has also grown far beyond Facebook, although Facebook VP of Supply Chain Operations Frank Frankovsky is still its leader. The OCP board also includes executives from Intel, Rackspace, Arista Networks, and Goldman Sachs.

Earlier this month, OCP announced plans to push into the $23 billion Ethernet switch market, a project led by Facebook Director of Technical Operations Najam Ahmad.

Its goal is to create an "open source" network switch. A network switch connects the Ethernet cables within a building or across a campus. It also performs lots of other functions, from security to making the network run faster.

OCP's project could compete with switches from Cisco, HP and Dell. Alternatively, these vendors could join the group and participate. Dell and HP, for example, have been involved in the server project.

Cisco, however, owns ~60% of the network switch market and it's unclear, so far, if Cisco will play nice or play dirty with OCP. 

OCP is not the only group working on such things. A group called the Open Network Foundation (ONF) is creating standards, or blueprints, for software-defined networking gear. There's also another group called OpenDaylight, led by Cisco and IBM, working on open source SDN software.

Here's what Ahmad and Frankovsky told us about OCP's plans in a lightly edited transcript:

Frank Frankovsky Facebook
Facebook open source hardware guru Frank Frankovsky   Facebook

Business Insider: OCP has moved from servers to storage to motherboards and other hardware equipment. Why has it grown so much?

Frank Frankovsky: Over the last two years we've seen a ton of progress made around the server hardware and the storage hardware and the data centers. People are making really cool and meaningful technology contributions with a lot of derivative work. Some of those are interesting things that no one at Facebook ever thought about.

When you give one thing to the community, you tend to get 10 things back. And you just don't know what those 10 things are.

BI: What's the goal for your network project and how is it different from what other groups are doing?

Najam Ahmad: ONF actually reached out to OCP and asked us if we can tackle this.

Today, if you wanted to buy a switch, it's a package that has hundreds of applications and features. OCP will create a [design for] a [switch] box that when it boots up, it looks for an operating system of your choice. We're trying to separate the hardware and the software and give you choices.

BI: Wow, that's ambitious. A box that will work with all SDN software. Is Cisco participating? This is Cisco's big fear, that a commodity box will come along and hurt their business.

Ahmad: We had our first engineering summit for OCP at MIT [two weeks ago] and we held a whole day workshop on networking. Cisco was at that meeting. They definitely know what's going on and they are participating in the conversations.

So it's either a threat or an opportunity on how they respond from here. They are open to submit proposals and [see] if the user community selects them.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.