Jan 2, 2019 · 22m · a16z
a16z Podcast | The Consumerization of IT
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of the a16z Podcast, host Peter Levine and guest CEOs Yoram Novak and Florian Liebert discuss how mobile hardware efficiency, open-source containerization, and consumer-grade UX design are transforming enterprise data centers and software.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →
The host as informed peer 4.2 Guest teaching 2.7 Guest disagreement 1.0 The host pushing back 2.5
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 17:22 Yoram reframes open source threat to software stack
Yoram directly refutes the host's implicit premise that open source will eat proprietary software, clarifying that open source only dominates lower stack levels while proprietary value resides in higher-level customization.
Hardest push from the host ▶ 16:44 Host interrogates guest business model paradoxesThe host directly confronts Yoram on why open source hasn't destroyed his proprietary business, while simultaneously challenging Flo on how an open source company can actually monetize when software is free.
Biggest teaching moment ▶ 14:17 Flo details Linux cgroups origins behind DockerFlo educates the host on how Google contributed cgroups to the Linux kernel four years prior, serving as the foundational lightweight isolation layer enabling modern Docker containers.
The host holds their own ▶ 20:28 Host analyzes historic engineering flaws in UXThe host demonstrates strong domain expertise by pointing out how systems companies historically neglected UI/UX design because system engineers prioritized backend mechanics over user interfaces.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| ARM Processors, Flash Storage, and Hardware Commoditization | 4 | 3 | 1 | 4 | The host plays devil's advocate by posing incumbent skepticism regarding the reliability and viability of ARM processors and commodity flash in data centers. The guests respond collaboratively, explaining power efficiency gains and software-driven fault tolerance. | |
| Data Center Evolution: On-Premises, Public Cloud, and Hybrid Models | 3 | 2 | 1 | 1 | The host prompts an open-ended question about data center evolution across on-prem and cloud setups. Flo highlights fluid spot markets while Yoram outlines hybrid models and private cloud persistence. | |
| Startup Agility versus Incumbent Dilemma in Infrastructure | 4 | 3 | 1 | 2 | The host sets up a discussion around innovator's dilemma and incumbent vulnerabilities. The guests analyze VMware's dilemma against Linux container workloads, with lighthearted humor around pricing models. | |
| Open Source Revolution: Linux Kernel, Containers, and Docker | 3 | 4 | 1 | 1 | The host guides the discussion toward open source trends in infrastructure. Flo provides a detailed breakdown of Linux kernel cgroups and Docker abstractions, while Yoram contrasts open source hypervisors like KVM with proprietary models. | |
| Monetizing Open Source vs Proprietary Software and the Value of UX | 6 | 3 | 2 | 7 | The host aggressively pushes both guests to justify their commercial models given their opposing open source vs proprietary strategies. Later, the host offers sharp domain expertise regarding systems engineers historically underinvesting in user experience. | |
| Consumerization of Enterprise Software UX and Conclusion | 5 | 1 | 0 | 0 | The guests agree on the software consumerization trend, and the host concisely synthesizes the main episode takeaways regarding hardware evolution and modern UX expectations. |
Statements from this episode (12)
Levine: Mobile hardware supply chains will replace PC architectures in data centers
“What I'm specifically talking about with respect to the consumerization of IT is the idea that the components of mobile devices will become the basis for hardware in the data center of the future. And so, not unlike we saw the PC revolution replace mainframes …”
Liebert: Data centers will move to plug-and-play pooled chip architectures
“We're going to see plug and play Data centers where you can just add chips, remove chips, and they're just added to the pool.”
Novak: Hardware commoditization always wins, requiring smart software to manage failure
“Any time commodities, commoditization happened in the hardware from a cost point of view, from a Advanced technology point of view, it's always winning, and what you need to make it all work together is smart software that put all the pieces together and make …”
Novak: ARM processors will become powerful enough for enterprise data centers
“The same thing I believe will happen with processors where ARM processor Which is much more or much better in power and cooling over time will become powerful enough.”
Yoram Novak: Commodity flash storage and software will replace disk drives
“Flash is definitely going to take over. Again, power cooling and especially performance of flash, even if reliability is not there. And software is going to bridge the gap and basically provide the performance that you need with the reliability that you need a…”
Liebert: Compute infrastructure will shift to dynamic job-based pricing
“And I think as we see that with more and more companies evolving, we, we're going to be We're going to be pricing jobs, individual compute jobs, rather than just providing a static pool of resources. I think that's where we're going clearly.”
Liebert: Enterprise data centers are undergoing a tectonic shift to Linux
“We're seeing this tectonic shift right now in data centers from Windows over to Linux.”
Liebert: Google cgroups provided the foundation for Docker containerization
“The roots there are actually, well, the roots lie actually at Google. So, four or five years ago, Google contributed, ah, cgroups to the Linux kernel. And cgroups are the foundation for what is now Docker, right?”
Novak: Open-source KVM is the main virtualization engine for cloud providers
“So VMware and Hyper-V definitely are there, but KVM, which is open source, in many cases, especially with cloud provider, Is the main virtualization scheme.”
Novak: Sufficiently good open-source software consistently displaces proprietary infrastructure
“When the open source is good enough and pervasive enough, it does take over. It may not be as good. For example, if you look at KVM and VMware and you look at the features and function, but if it's free, It has a lot more value, and people are building a lot o…”
Novak: Proprietary software value must continually move higher up the stack
“Now over time, things go up. So whatever used to be proprietary over time may become open source. You just need to keep up one level on top of it and providing more value than anybody else can at your level.”
Liebert: Open-source companies can monetize by building superior user experience
“And I think where we can provide additional value that we can charge for is in, in making this open source easier to use. And coming from companies like Airbnb and Twitter, where UX is, is really essential, I think we can apply the same to open source, and I t…”