Microsoft is spending billions of dollars to beef up its Internet infrastructure — which includes building its own content delivery network, boosting its network backbone capacity five times and building gigantic data centers as it girds up to compete with Google, the real Big Daddy of the web. Microsoft’s Internet infrastructure czar, Debra Chrapaty, shares the details in a video interview. Continue Reading

A few minutes after she delivered a speech at our Structure 08 conference in San Francisco, I caught up with Microsoft’s corporate VP of global foundation services, Debra Chrapaty, for a video chat. I think a more appropriate title for her would be Mr. Softie’s Internet Infrastructure Czar. I found her very knowledgeable, engaging and open with her opinions. “We have some new innovations up our sleeve that are going to knock the socks of anything anyone is doing, including our friends down south,” she told me. She didn’t name Google, of course, but we all know who she was talking about.

Her candor was one of the reasons I wanted decided to share the video with you guys. The common theme of the conversation: Microsoft is spending liberally to build out its Internet infrastructure, including upgrading its backbone network and scaling out its data center infrastructure by adding new technologies.

When I asked her exactly how much Microsoft was spending on it, she dodged the question, saying just that it was a big number. This much we do know: Two years ago, the company was spending close to $2 billion on its infrastructure; it has since undertaken the development of six data centers, with parts of two networks already online.

Facts About Microsoft-Owned Data Centers
Adding 10,000 servers a month
New data centers being planned/under construction are equivalent of over 15 US football fields of data center space.
Plans to cut of 30% to 40% in data-center power costs company-wide over the next two years.
Current network backbone runs at about 100 gigabits per second, but soon Microsoft plans to bump it to 500 Gigabits. I think this could be big for Level 3, long time partner of Microsoft.
Building out its own CDN (Edge) network – 99 nodes on a 100 gigabit per second backbone.
For Microsoft, total data grows ten times every three years. The data in near future will soon approach 100s of petabytes. This includes data from all of their online services.
Source: Microsoft, GigaOM
Location Status
Quincy, Washington Opened April 2007, construction continues
When complete, it will consume 48 megawatts of energy. Microsoft can tap up to 72 MW of energy coming from hydro power. Microsoft is paying about 1.8 cents per kilowatt, but will rise to between 2.6-to-2.9 cents per kilowatt as more capacity goes online. Two data centers in this location.
San Antonio, Texas Under Construction, planned opening September 2008
It will be 447,000 square feet on 44 acres. Microsoft is building two data centers here
Dublin, Ireland Under Construction
first Windows Live data center outside the U.S.
Northlake, Illinois Under Construction, Phase one to go live in October 2008
The first floor of this facility is going to be entirely made of containers and would house Microsoft search.
Iowa TBD
Source: Microsoft

Watch the video to get the full low-down, but if you’re in a hurry, here are some highlights, including her quotes from our conversation.

  • “We are building data centers but I don’t want to say not just data centers. We are already on to our second generation data centers. More utilization, better density and more power efficient.” For Chrapaty, power efficiency is not just talk, it’s her mission — she is the driving force behind Microsoft’s server utilization.
  • “Infrastructure is a differentiator. I use FedEx as an example. They are world’s most predominant distribution company. It wasn’t that they had a great brand or they had all these plans. No, what they did was find these strategic landing fields where they could get in and out quickly to key distribution points across the globe. It defined their company. I think the same is true in the infrastructure now. Data centers are already becoming a scarce resource.” Google realized this a long time ago; Microsoft is now demonstrating how it can put money to work and build an advantage over others.
  • Like Google, Microsoft is taking the design of servers into its own hands. “We are doing some unique things in the mother board designs, server designs, and because we are Microsoft, operating systems.”
  • She’s a big champion of container data centers, which essentially act like the trailers on long-haul trucks, optimized and packed with all sorts of gear — servers, switches, storage systems — that’s wheeled in and plugged into the power grid and the network. Sounds like Rackable Systems and Verari are major suppliers of these containers to Microsoft; the company is making extensive use of them in their Chicago facility.
  • Her comments indicate that Microsoft has plans to offer managed services to large corporations.
  • She lets us know first that they are building a IOWA data center, which is huge for Iowa. Google has one in Iowa too.
  1. call me a pedant, but when someone who says they’ve been in the data centre business for 20 years mixes up watts with kilowatts, it always strikes me as a little dodgy.

    But maybe that’s just me….

  2. [...] video or read a summary of the main points. Both items available on the GigaOM.com Web site here. The information is quite dense, and I won’t try to summarize it. Navigate to GigaOM and [...]

  3. [...] Om’s post here Filed under: data [...]

  4. [...] Debra Chrapaty of Microsoft at Structure has brought out an incredible piece of news.   The video found here is full of details about Microsofts program.   She is as plain speaking as they come and [...]

  5. trying to compete with google on its turf was Microsofts biggest mistake if they would stick to operating systems they would be better off

  6. [...] Inside Microsoft’s Internet Infrastructure & Its Plans For The Future – GigaOM Microsoft is spending liberally to build out its Internet infrastructure, including upgrading its backbone network and scaling out its data center infrastructure by adding new technologies. [...]

  7. Cool, we just published a similar video interview with Arne Josefsberg, General Manager Online Infrastructure at Microsoft (at the VIP reception before Structure 08):


  8. Bunch of bull, have been with Mr. Soft for a year in the relevant group..and all I can say is they are going nowhere with their search, ad strategies and partnering efforts. Too much chaos, too many egos running like chickens with their heads cut off, too many ex-consultants ;-) well, since when did suits innovate?! Mr. Soft =/= online business. Those data centers could have been bomb shelters a few decades back, not now.

  9. So Google builds out data center infrastructure, optimizes the linux kernel, and builds its own servers, and operates ad platform based on auctions, and the only thing MS can come up with that is different is a glorified shopping comparison engine masquerading as search engine?

    Pathetic. All but a handful of VCs tend to do the same, only back ideas and technology that is proven to be working already. Market dominance doesn’t work that way on the web. Me-too/ table-stakes will just keep the head above water.


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