P2P could make data centers obsolete

March 29, 2001 —

FLORENCE, ITALY- Made famous by Napster Inc., peer-to-peer (P2P) technology is
just approaching the top of the hype-cycle. After passing through the inevitable
subsequent phase of disillusionment, P2P has great potential in the business environment,
according to analyst firm Gartner Group Inc.

For instance, P2P could make data centers obsolete, and thus save companies
a significant amount of money, said Gartner Senior Analyst Nikos Drakos here
at the Gartner Europe Spring Symposium/ITxpo 2001. Drakos expects the first
P2P business applications to come out around 2004.

"In the ideal world, there will be no more expensive servers in data centers.
But in reality, we will see different systems for various applications. Some
(applications) will still need central billing or a repository. Companies will
have to decide what applications and data are good to keep central and what
to distribute," said Drakos.

In simple terms, P2P describes a model of computing in which computers talk
to each other over the Net in order to share information and computing resources.
Applications include file sharing, utilizing idle processing power to perform
complex computations, or tapping unused storage in PCs and servers to house
large databases.

"P2P architecture will cause radical rethinking of the way we build computation,
communication and collaboration systems. It gives us new freedom and an empty
data center," Drakos told an audience of IT managers who came to find out
if P2P is reality or hype.

The nascent computing model has several benefits, Drakos said. Bottlenecks,
like congested data centers or routes to the data centers can be removed by
placing the data on user computers. Gaining "the most power for the least
amount of dollars" is possible by leveraging the combined processing power
of the connected machines. Scalability becomes endless, as system resources
grow organically.

However, Drakos acknowledged, there are significant challenges to be overcome
before the P2P "utopia" can be reached. "The platform needs to
have enterprise qualities added to it," he said.

Security is the foremost hurdle, specifically issues such as authenticating
a user on a P2P platform and dealing with the "inherent P2P problem"
of host security caused by the lack of centralized control when data and processing
power are distributed among many computers. This decentralization also adds
to the complexity of managing the network and keeping it stable.

Audience members were excited about P2P potential, but also showed some reservations.

"I don't think P2P is merely a short-term hype, but I feel it will take
at least five years or so before P2P will integrate with classic business and
technology models," said Kevin Jackson, a planning and integration manager
from the U.K. who works at a mobile phone operator.

An attendee working in the aerospace and defense industry said he learned a
lot from the conference session.

"I did not quite know about P2P before today. The collaboration and computing
parts are very interesting," said Michel Thoraval, vice president information
management strategy at the Amsterdam-based European Aeronautic Defense and Space
Company NV.

Mikael Johnsson, responsible for European investments in software companies
at Stockholm-based Investor Growth Capital AB, came to find out if P2P companies
offer immediate profit potential. He was convinced to hold off investments.

"There is so much buzz, but this (P2P) will move into maturity. It will
take some time though until we start investing," said Johnsson, adding
that Investor Growth Capital typically invests in the last round of financing
for startups.

Meanwhile many companies, startups as well as established players, are getting
involved with P2P. In mid-Febuary, Sun Microsystems Inc. Chief Scientist and
Co-Founder Bill Joy outlined the company's plan to develop a foundational technology
for P2P communications called Juxtapose, or Jxta for short. Intel Corp. has
also showed interest in P2P.

Groove Networks Inc., a startup founded by Lotus Notes creator Ray Ozzie, has
developed a P2P platform combining software and services that allows small groups
inside companies to work together or with other companies.

Gartner's Europe Spring Symposium/ITxpo 2001, in Florence, Italy, runs through
Friday. Further information can be found at http://www.gartner.com/.

ITworld.com