.banner-thumbnail-wrapper { display:none; }

Hyper-Converged

Inside story: How HP Inc. moved from a rigid legacy to data center transformation

Inside story: How HP Inc. moved from a rigid legacy to data center transformation

A discussion on how a massive corporate split led to the re-architecting and modernizing of IT to allow for the right data center choices at the right price over time.

How Norway’s Fatland beat back ransomware thanks to a rapid backup and recovery data protection stack approach

How Norway’s Fatland beat back ransomware thanks to a rapid backup and recovery data protection stack approach

Learn how an integrated backup and recovery capability allowed production processing systems to be snap back into use in only a few hours.

HPE and Citrix team up to make hybrid cloud-enabled workspaces simpler to deploy

HPE and Citrix team up to make hybrid cloud-enabled workspaces simpler to deploy

A discussion on how hyperconverged infrastructure and virtual desktop infrastructure are combining to make one of the more traditionally challenging workloads far easier to deploy, optimize, and operate.

Citrix and HPE team to bring simplicity to the hybrid core-cloud-edge architecture

Citrix and HPE team to bring simplicity to the hybrid core-cloud-edge architecture

A discussion on how Citrix and Hewlett Packard Enterprise are aligned to bring new capabilities to the coalescing architectures around data center core, hybrid cloud, and edge computing.

Huge waste in public cloud spend sets stage for next wave of total cloud governance solutions, says 451's Fellows

Huge waste in public cloud spend sets stage for next wave of total cloud governance solutions, says 451's Fellows

A discussion on how IT leaders face an increasingly complex mix of identifying and automating for both best performance and best price points across all of their cloud options.

Path to client workspace automation paved with hyperconverged infrastructure for New Jersey college

The next BriefingsDirect hyperconverged infrastructure (HCI) use case discussion explores how a New Jersey college has embarked on the time-saving, virtual desktop infrastructure (VDI) modernization journey.

We will now learn how the combination of HCI and VDI makes the task of deploying and maintaining the latest end-user devices far simpler -- and cheaper than ever before.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. 

Here to explore how a new digital and data-driven culture can emerge from uniting the desktop edge with the hyper-efficient core are Tom Gillon, Director of Network and User Services at County College of Morris (CCM) in Randolph, New Jersey; Michael Gilchrist, Assistant Director of Network Systems at County College of Morris (CCM), and Felise Katz, CEO of PKA Technologies, Inc. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What are the trends driving your needs at County College of Morris to modernize and simplify your personal computer (PC) architecture?

Gillon: We need to be flexible and agile in terms of getting software to the students, when they need it, where they need it.

Gillon

Gillon

With physical infrastructure that really isn’t possible. So we realized that VDI was the solution to meet our goals -- to get the software where the students need it, when they need it, and so that’s a top trend that got us to this point.

Gardner: And is the simplicity of VDI deployments something you are looking at universally, or is this more specific to just students?

Gillon: We are looking to deploy VDI all throughout the college: Faculty, staff, and students. We started out with a pilot of 300 units that we mostly put out in labs and in common areas for the students. But now we are replacing older PCs that the faculty and staff use as well.

Gardner: VDI has been around for a while, and for the first few years there was a lot of promise, but there was also some lag from complications in that certain apps and media wouldn’t run properly; there were network degradation issues. We’ve worked through a lot of that, but what are some of your top concerns, Michael, when it comes to some of those higher-order infrastructure performance issues that you have to conquer before you get to the proper payoff from VDI?

Get Your Gorilla Guide

To HCI Implementation Strategies

Gilchrist: You want to make sure that the user experience is the same as what they would experience on a physical device, otherwise they will not accept it.

Just having the horse power -- nowadays these servers are so powerful, and now you can even get graphics processing units (GPUs) in there -- you can run stuff like AutoCAD or Adobe and still give the user the same experience that they would normally have on a physical device. That’s what we are finding. Pretty good so far.

Gardner: Felise, as a Hewlett Packard Enterprise (HPE) Platinum Partner, you have been through this journey before, so you know how it was rough-and-tumble there for a while with VDI. How has that changed from your perspective at PKA Technologies?

Katz: When HPE made the acquisition of SimpliVity that was the moment that defined a huge game-changer because it enabled us, as a solution provider, to bring the right technology to CCM. That was huge.

Gardner: When you’re starting out on an IT transition, you have to keep the wings on the airplane while you’re changing the engines, or vice versa. You have to keep things going while you are doing change. Tom, how did you manage that? How did you keep your students getting their apps? How have you been able to swap things out in a way that hasn’t been disruptive?

Gillon: The beauty of VDI is that we can switch out a lab completely with thin clients in about an hour. And we didn’t realize that going in. We thought it would take us most of the day. And then when we did it, we were like, “Oh my God, we are done.” We were able to go in there first thing in the morning and knock it out before the students even came in.

That really helped us to get these devices out to where the students need them and to not be disruptive to them.

That really helped us to get these devices out to where the students need them and not be disruptive to them.

Gardner: Tom, how did it work from your perspective in terms of an orderly process? How was the support from your partners like PKA? Do you get to the point where this becomes routine?

Gillon: PKA has the expertise in this area. We worked with them previously on an Aruba wireless network deployment project, and we knew that’s who we wanted to work with, because they were professional and thorough.

Moving to the thin client systems deployments, we contacted PKA and they put together a solution that worked well for us. We had not been aware of SimpliVity combined with HPE. They determined that this would be the best path for us, and it turned out to be true. They came in and we worked with HPE, setting this up and deploying it. Michael did a lot of that work with HPE. It was very simple to do. We were surprised at how simple it was.

Academic pressure 

Gardner: Felise, as a solution partner that specializes in higher education, what’s different from working at a college campus environment from, say, a small- to medium-sized business (SMB) or another type of enterprise? Is there something specific about a college environment, such as the number of apps, the need for certain people and groups in the college to have different roles within responsibilities? How did it shake out?

Katz: That’s an interesting question. As a solution provider, as an owner of a business, we always put our best foot forward. It really doesn’t matter whether it’s an academic institution or a commercial customer, it always has to be done in the right way.

Katz

Katz

As a matter of fact, in academics it’s even more profound, and a lot more pressured, because you are dealing with students, you are dealing with faculty, and you are dealing with IT staff. Once we are in a “go” mode, we are under a lot of pressure. We have a limited time span between semesters -- or vacations and holidays -- where we have to be around to help them to get it up and running.

We have to make sure that the customer is enabled. And with these guys at CCM, they were so fabulous to work with. They enabled us to help them to do more with less -- and that’s what the solution is all about. It’s all about simplification. It’s all about modernization. It’s all about being more efficient. And as Michael said so eloquently, it’s all about the experience for the students. That’s what we care about.

Choose an HCI for VDI Solution

That’s Right for Your Needs

Gardner: Michael, where are you on your VDI-enablement journey? We heard that you want to go pervasively to VDI. What have you had to put in place -- in terms of servers in the HPE SimpliVity HCI case -- to make that happen?

Gilchrist: So far, we have six servers in total. Three servers in each of our two data centers that we have on campus, for high redundancy. That’s going to allow us to cover our initial pilot of 300 thin clients that we are putting out there.

As far as the performance of the system goes, we are not even scratching the surface in terms of the computing or RAM available for those first 300 endpoints.

When it comes to getting more thin clients, I think we’re going to be able to initially tack on more thin clients to the initial subset of six servers. And as we grow, the beauty of SimpliVity is that we just buy another server, rack it up, and bolt it in -- and that’s it. It’s just plug and play.

Gardner: In order to assess how well this solution is working, let’s learn more about CCM. It’s 50 years old. What’s this college all about?

Data-driven college transformation 

Gillon: We are located in North Central New Jersey. We have an enrollment of about 8,000 students per semester; that’s for credit. We also have a lot of non-credit students coming and going as well.

As you said, we are 50-years-old, and I’ve been there almost 23 years. I was the second person hired in the IT Department.

I have seen a lot come and go, and we actually just last year inaugurated our third college president, just three presidents in 50 years. It’s a very stable environment, and it’s really a great place to work.

Gardner: I understand that you have had with this newest leadership more of a technical and digital transformation focus. Tell us how the culture of the college has changed and how that may have impacted your leaping into some of the more modern infrastructure to support VDI.

GillonOur new president is very data-driven. He wants data on everything, and frankly we weren't in a position to provide that. 

We also changed CIOs. Our new CIO came in about a year after the new president, and he has also a strong data background. He is more about data than technology. So, with that focus we really knew that we had to get systems in place that are capable of quick transitions, and this HCI system really did the job for us. We are looking to expand further beyond that. 

Gardner: Felise, I have heard other people refer to hyperconverged infrastructure architectures like SimpliVity as a gift that keeps giving. Clearly the reason to get into this was to support the VDI, which is a difficult workload. But there are also other benefits.

The simplification from HCI has uncomplicated their capability for growth and for scale.

What have been some of the other benefits that you have been able to demonstrate to CCM that come with HCI? Is it the compression, the data storage savings, or a clear disaster recovery path that they hadn’t had before? What do you see as some of the ancillary benefits? 

KatzIt's all of the above. But to me -- and I think to both Tom and Michael -- it's really the simplification, because [HCI] has uncomplicated their capability for growth and for scale. 

Look, they are in a very competitive business, okay, attracting students, as Tom said. That’s tough, that's where they have to make the difference, they have to make a difference when that student arrives on campus with his, I don’t know, how many devices, right?

One student, five devices 

Gillon: It averages five now, I think.

Katz: Five devices that come on board. How do you contend with that, besides having this huge pipe for all the data and everything else that they have to enable? And then you have new ways of learning that everybody has to step up and enable. It's not just about a classroom; it’s a whole different world. And when you’re in a rural part of New Jersey, where you’re looking to attract students, you have to make sure you are at the top of your game.

Gardner: Expectations are higher than ever, and the younger people are even more demanding because they haven’t known anything else.

KatzYes, just think about their Xbox, their cell phones, and more devices. It's just a huge amount. And it's not only for them, it's also for your college staff.

Gardner: We can’t have a conversation about IT infrastructure without getting into the speeds and feeds a little bit. Tell us about your SimpliVity footprint, energy, maintenance, and operating costs. What has this brought to you at CCM? You have been doing this for 23 years, you know what a high-maintenance server can be like. How has this changed your perspective on keeping a full-fledged infrastructure up and running?

Ease into IT

Gillon: There are tremendous benefits, and we are seeing that. The six servers that we have put in, they are replacing a lot of other devices. If we would have gone with a different solution, we would have had a rack full of servers to contend with. With this solution, we are putting three devices in each of our server rooms to handle the load of our initial 300 VDI deployments -- and hopefully more soon. 

There are a lot of savings involved, such as power. A lot of our time is being saved because we are not a big shop. Besides Michael and myself, I have a network administrator, and another systems administrator -- that’s it, four people. We just don't have the time to do a lot of things we need to do -- and this system solves a lot of those issues.

Gilchrist: From a resources utilization standpoint, the deduplication and compression that the SimpliVity system provides is just insane. I am logically provisioning hundreds of terabytes of information in my VMware system -- and only using 1.5 terabytes physically. And just the backup and restore, it's kind of fire and forget. You put this stuff in place and it really does do what they say. You can restore large virtual machines (VMs) in about one or two seconds and then have it back up and running in case something goes haywire. It just makes my life a lot easier. 

I’m no longer having to worry about, “Well, who was my back-up vendor? Or who is my storage area network (SAN) vendor? And then there’s trying to combine all of those systems into one. Well,HPE SimpliVity just takes care of all of that. It’s a one-stop shop; it’s a no-brainer. 

Gardner:All in one, Felise, is that a fair characterization?

Get Your Gorilla Guide

To HCI Implementation Strategies

KatzThat is a very, very true assessment. My goal, my responsibility is to bring forward the best solution for my customers and having HPE in my corner with this is huge. It gives me the advantage to help my clients, and so we are able to put together a really great solution for CCM. 

Gardner: There seems to be a natural progression with IT infrastructure adoption patterns. You move from bare metal to virtualization, then you move from virtualization to HCI, and then that puts you on a path to private cloud -- and then hybrid cloud. And in doing this modernization, you get used to the programmatic approach to infrastructure, so composable infrastructure

Do you feel that this progression is helping you modernize your organization? And where might that lead to, Tom?

Gillon: I do. With the experience we are gaining with SimpliVity, we see that this can go well beyond VDI, and we are excited about that. We are getting to a point where our current infrastructure is getting a little long in the tooth. We need to make some decisions, and right now the two of us are like, this is only decision we want to make. This is the way we are going to go.

Gardner: I have also read that VDI is like the New York of IT -- if you can do it there, you can do it anywhere. So what next workloads do you have in mind? Is this enterprise resource planning (ERP), is it business apps? What?

Gillon: All of the above. We are definitely looking to put some of our server loads into the VDI world, and just the benefits that SimpliVity gives to us in terms of business continuity and redundancy, it really is a no-brainer for us. 

And yes, ERP, we have our ERP system currently virtualized, and the way Michael has things set up now, it's going to be an easy transition for us when we get to that point. 

Gardner: We have talked a lot about the hardware, but we also have to factor in the software. You have been using the VMware Horizon approach to VDI and workspaces, and that’s great, but what about moving toward cloud?

Do you want to have more choice in your hypervisor? Does that set you on another path to make choices about private cloud? What comes next in terms of what you support on such a great HCI platform? 

A cloudy future?

Gillon: We have decisions to make when it comes to cloud. We are doing some things in the cloud now, but there are some things we don't want to do in the cloud. And HPE has a lot of solutions. 

We recently attended a discussion with the CEO of HPE [Antonio Neri] about where they are headed, and they say hybrid is the way to go. You are going to have some on-premises workloads, you are going to have some off-premises. And that's where we see CCM going as well.

Gardner: What advice would you give to other organizations that are maybe later in starting out with VDI? What might save them a step or two?

Get yourself a good partner because there are so many things that you don't know about these systems.

Gillon: First thing, get yourself a good partner because there are so many things that you don't know about these systems. And having a good partner like PKA, they brought a lot to the table. They could have easily provided a solution to us that was just a bunch of servers.

Gilchrist: Yes, they brought in the expertise. We didn’t know about SimpliVity, and once they showed us everything that it can do, we were skeptical. But it just does it. We are really happy with it, and I have to say, having a good partner is step number one.

Gardner: Felise, what recommendations do you have for organizations that are just now dipping their toe into workloads like VDI? What is it about HCI in particular that they should consider? 

Look to the future 

Katz: If they are looking for flexible architecture, if they are looking for the agility, to be able to make those moves down the road -- and that's where their minds are – then they really have to do the due diligence. Tom, Michael and their team did. They were able understand what their needs are, what right requirements are for them -- not just for today but also going down the road to the future.

When you adopt a new architecture, you are displacing a lot of your older methodologies, too. It’s a different world, a hybrid world. You need to be able to move, and to move the workloads back and forth. 

It’s a great time right now. It's a great place to be because things are working, and they are clicking. We have the reference architectures available now to help, but it’s really first about doing their homework.

Choose an HCI for VDI Solution

That’s Right for Your Needs

CCM is really a great team to work with. It's really a pleasure, and it’s a lot of fun. 

And I would be remiss not to say, I have a great team. From my sales to my technical: Strategic Account Manager Angie Moncada, Systems Engineer Patrick Shelley, and Vice President of Technology Russ Chow, they were just all-in with them. That makes a huge difference when you also connect with HPE on the right solutions. So that’s really been great.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Panel explores new ways to solve the complexity of hybrid cloud monitoring

The next BriefingsDirect panel discussion focuses on improving performance and cost monitoring of various IT workloads in a multi-cloud world.

We will now explore how multi-cloud adoption is forcing cloud monitoring and cost management to work in new ways for enterprises.

Our panel of Micro Focus experts will unpack new Dimensional Research survey findings gleaned from more than 500 enterprise cloud specifiers. You will learn about their concerns, requirements and demands for improving the monitoring, management and cost control over hybrid and multi-cloud deployments.

We will also hear about new solutions and explore examples of how automation leverages machine learning (ML) and rapidly improves cloud management at a large Barcelona bank.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. 

To share more about interesting new cloud trends, we are joined by Harald Burose, Director of Product Management at Micro Focus, and he is based in Stuttgart; Ian Bromehead, Direct of Product Marketing at Micro Focus, and he is based in Grenoble, France, and Gary Brandt, Product Manager at Micro Focus, based in Sacramento. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Let's begin with setting the stage for how cloud computing complexity is rapidly advancing to include multi-cloud computing -- and how traditional monitoring and management approaches are falling short in this new hybrid IT environment.

Enterprise IT leaders tasked with the management of apps, data, and business processes amid this new level of complexity are primarily grounded in the IT management and monitoring models from their on-premises data centers.

They are used to being able to gain agent-based data sets and generate analysis on their own, using their own IT assets that they control, that they own, and that they can impose their will over.

Yet virtually overnight, a majority of companies share infrastructure for their workloads across public clouds and on-premises systems. The ability to manage these disparate environments is often all or nothing.

The cart is in front of the horse. IT managers do not own the performance data generated from their cloud infrastructure.

In many ways, the ability to manage in a hybrid fashion has been overtaken by the actual hybrid deployment models. The cart is in front of the horse. IT managers do not own the performance data generated from their cloud infrastructure. Their management agents can’t go there. They have insights from their own systems, but far less from their clouds, and they can’t join these. They therefore have hybrid computing -- but without commensurate hybrid management and monitoring.

They can’t assure security or compliance and they cannot determine true and comparative costs -- never mind gain optimization for efficiency across the cloud computing spectrum.

Old management into the cloud

But there’s more to fixing the equation of multi-cloud complexity than extending yesterday’s management means into the cloud. IT executives today recognize that IT operations’ divisions and adjustments must be handled in a much different way.

Even with the best data assets and access and analysis, manual methods will not do for making the right performance adjustments and adequately reacting to security and compliance needs.

Automation, in synergy with big data analytics, is absolutely the key to effective and ongoing multi-cloud management and optimization.

Fortunately, just as the need for automation across hybrid IT management has become critical, the means to provide ML-enabled analysis and remediation have matured -- and at compelling prices.

Great strides have been made in big data analysis of such vast data sets as IT infrastructure logs from a variety of sources, including from across the hybrid IT continuum.

Many analysts, in addition to myself, are now envisioning how automated bots leveraging IT systems and cloud performance data can begin to deliver more value to IT operations, management, and optimization. Whether you call it BotOps, or AIOps, the idea is the same: The rapid concurrent use of multiple data sources, data collection methods and real-time top-line analytic technologies to make IT operations work the best at the least cost.

IT leaders are seeking the next generation of monitoring, management and optimizing solutions. We are now on the cusp of being able to take advantage of advanced ML to tackle the complexity of multi-cloud deployments and to keep business services safe, performant, and highly cost efficient.

We are on the cusp of being able to take advantage of ML to tackle the complexity of multi-cloud deployments and keep business services safe.  

Similar in concept to self-driving cars, wouldn’t you rather have self-driving IT operations? So far, a majority of you surveyed say yes; and we are going to now learn more about that survey information. 

Ian, please tell us more about the survey findings.

IT leaders respond to their needs 

Ian Bromehead: Thanks, Dana. The first element of the survey that we wanted to share describes the extent to which cloud is so prevalent today.

Bromehead

Bromehead

More than 92 percent of the 500 or so executives are indicating that we are already in a world of significant multi-cloud adoption.

The lion’s share, or nearly two-thirds, of this population that we surveyed are using between two to five different cloud vendors. But more than 12 percent of respondents are using more than 10 vendors. So, the world is becoming increasingly complex. Of course, this strains a lot of the different aspects [of management].

What are people doing with those multiple cloud instances? As to be expected, people are using them to extend their IT landscape, interconnecting application logic and their own corporate data sources with the infrastructure and the apps in their cloud-based deployments -- whether they’re Infrastructure as a Service (IaaS) or Platform as a Service (PaaS). Some 88 percent of the respondents are indeed connecting their corporate logic and data sources to those cloud instances.

What’s more interesting is that a good two-thirds of the respondents are sharing data and integrating that logic across heterogeneous cloud instances, which may or may not be a surprise to you. It’s nevertheless a facet of many people’s architectures today. It’s a result of the need for agility and cost reduction, but it’s obviously creating a pretty high degree of complexity as people share data across multiple cloud instances.

The next aspect that we saw in the survey is that 96 percent of the respondents indicate that these public cloud application issues are resolved too slowly, and they are impacting the business in many cases.

Some of the business impacts range from resources tied up by collaborating with the cloud vendor to trying to solve these issues, and the extra time required to resolve issues impacting service level agreements (SLAs) and contractual agreements, and prolonged down time.

What we regularly see is that the adoption of cloud often translates into a loss in transparency of what’s deployed and the health of what’s being deployed, and how that’s capable of impacting the business. This insight is a strong bias on our investment and some of the solutions we will talk to you about. Their primary concern is on the visibility of what’s being deployed -- and what depends on the internal, on-premise as well as private and public cloud instances.

People need to see what is impacting the delivery of services as a provider, and if that’s due to issues with local or remote resources, or the connectivity between them. It’s just compounded by the fact that people are interconnecting services, as we just saw in the survey, from multiple cloud providers. Sothe weak part could be anywhere, could be anyone of those links. The ability for people to know where those issues are isnot happening fast enough for many people, with some 96 percent indicating that the issues are being resolved too slowly.

How to gain better visibility?

What are the key changes that need to be addressed when monitoring hybrid IT absent environments? People have challenges with discovery, understanding, and visualizing what has actually been deployed, and how it is impacting the end-to-end business.

They have limited access to the cloud infrastructure, and things like inadequate security monitoring or traditional monitoring agent difficulties, as well as monitoring lack of real-time metrics to be able to properly understand what’s happening.

It shows some of the real challenges that people are facing. And as the world shifts to being more dependent on the services that they consume, then traditional methods are not going to be properly adapted to the new environment. Newer solutions are needed. New ways of gaining visibility – and the measuring availability and performance are going to be needed.

I think what’s interesting in this part of the survey is the indication that the cloud vendors themselves are not providing this visibility. They are not providing enough information for people to be able to properly understand how service delivery might be impacting their own businesses. For instance, you might think that IT is actually flying blind in the clouds as it were.

The cloud vendors are not providing the visibility. They are not providing enough information for people to be able to understand service delivery impacts. 

So, one of my next questions was, Across the different monitoring ideas or types, what’s needed for the hybrid IT environment? What should people be focusing on? Security infrastructure, getting better visibility, and end-user experience monitoring, service delivery monitoring and cloud costs – all had high ranking on what people believe they need to be able to monitor. Whether you are a provider or a consumer, most people end up being both. Monitoring is really key.

People say they really need to span infrastructure monitoring, metric that monitoring, and gain end-user security and compliance. But even that’s not enough because to properly govern the service delivery, you are going to have to have an eye on the costs -- the cost of what’s being deployed -- and how can you optimize the resources according to those costs. You need that analysis whether you are a consumer or the provider.

The last of our survey results shows the need for comprehensive enterprise monitoring. Now, people need things such as high-availability, automation, the ability to cover all types of data to find issues like root causes and issues, even from a predictive perspective. Clearly, here people expect scalability, they expect to be able to use a big data platform.

For consumers of cloud services, they should be measuring what they are receiving, and capable of seeing what’s impacting the service delivery. No one is really so naive as to say that infrastructure is somebody else’s problem. When it’s part of this service, equally impacting the service that you are paying for, and that you are delivering to your business users -- then you better have the means to be able to see where the weak links are. It should be the minimum to seek, but there’s still happenings to prove to your providers that they’re underperforming and renegotiate what you pay for.

Ultimately, when you are sticking such composite services together, IT needs to become more of a service broker. We should be able to govern the aspects of detecting when the service is degrading. 

So when their service is more PaaS, then workers’ productivity is going to suffer and the business will expect IT to have the means to reverse that quickly.

So that, Dana, is the set of the different results that we got out of this survey.

A new need for analytics 

Gardner: Thank you, Ian. We’ll now go to Gary Brandt to learn about the need for analytics and how cloud monitoring solutions can be cobbled together anew to address these challenges.

Gary Brandt: Thanks, Dana. As the survey results were outlined and as Ian described, there are many challenges and numerous types of monitoring for enterprise hybrid IT environments. With such variety and volume of data from these different types of environments that gets generated in the complex hybrid environments, humans simply can’t look at dashboards or use traditional tools and make sense of the data efficiently. Nor can they take necessary actions required in a timely manner, given the volume and the complexity of these environments.

Brandt

Brandt

So how do we deal with all of this? It’s where analytics, advanced analytics via ML, really brings in value. What’s needed is a set of automated capabilities such as those described in Gartner’s definition of AIOps and these include traditional and streaming data management, log and wire metrics, and document ingestion from many different types of sources in these complex hybrid environments.

Dealing with all this, trying to, when you are not quite sure where to look, when you have all this information coming in, it requires some advanced analytics and some clever artificial intelligence (AI)-driven algorithms just to make sense of it. This is what Gartner is really trying to guide the market toward and show where the industry is moving. The key capabilities that they speak about are analytics that allow for predictive capabilities and the capability to find anomalies in vast amounts of data, and then try to pinpoint where your root cause is, or at least eliminate the noise and get to focus on those areas.

We are making this Gartner report available for a limited time. What we have found also is that people don’t have the time or often the skill set to deal with activities and they focus on -- they need to focus on the business user and the target and the different issues that come up in these hybrid environments and these AIOpscapabilities that Gartner speaks about are great.

But, without the automation to drive out the activities or the response that needs to occur, it becomes a missing piece. So, we look at a survey -- some of our survey results and what our respondents said, it was clear that upward of the high-90 percent are clearly telling us that automation is considered highly critical. You need to see which event or metric trend so clearly impacts on a business service and whether that service pertains to a local, on-prem type of solution, or a remote solution in a cloud at some place.

Automation is key, and that requires a degree of that service definition, dependency mapping, which really should be automated. And to be declared more – just more easily or more importantly to be kept up to date, you don’t need complex environments, things are changing so rapidly and so quickly.

Sense and significance of all that data? 

Micro Focus’ approach uses analytics to make sense of this vast amount of data that’s coming in from these hybrid environments to drive automation. The automation of discovery, monitoring, service analytics, they are really critical -- and must be applied across hybrid IT against your resources and map them to your services that you define.

Those are the vast amounts of data that we just described. They come in the form of logs and events and metrics, generated from lots of different sources in a hybrid environment across cloud and on-prem. You have to begin to use analytics as Gartner describes to make sense of that, and we do that in a variety of ways, where we use ML to learn behavior, basically of your environment, in this hybrid world.

And we need to be able to suggest what the most significant data is, what the significant information is in your messages, to really try to help find the needle in a haystack. When you are trying to solve problems, we have capabilities through analytics to provide predictive learning to operators to give them the chance to anticipate and to remediate issues before they disrupt the services in a company’s environment.

When you are trying to solve problems, we have capabilities through analytics to provide predictive learning to operators to remediate issues before they disrupt. 

And then we take this further because we have the analytics capability that’s described by Gartner and others. We couple that with the ability to execute different types of automation as a means to let the operator, the operations team, have more time to spend on what’s really impacting the business and getting to the issues quicker than trying to spend time searching and sorting through that vast amount of data.

And we built this on different platforms. One of the key things that’s critical when you have this hybrid environment is to have a common way, or an efficient way, to collect information and to store information, and then use that data to provide access to different functionality in your system. And we do that in the form of microservices in this complex environment.

We like to refer to this as autonomous operations and it’spart of our OpsBridge solution, which embodies a lot of different patented capabilities around AIOps. Harald is going to speak to our OpsBridgesolution in more detail.

Operations Bridge in more detail  

Gardner: Thank you, Gary. Now that we know more about what users need and consider essential, let’s explore a high-level look at where the solutions are going, how to access and assemble the data, and what new analytics platforms can do.

We’ll now hear from Harald Burose, Director of Product Management at Micro Focus.

Harald Burose: When we listen carefully to the different problems that Ian was highlighting, we actually have a lot of those problems addressed in the Operations Bridge solution that we are currently bringing to market.

Burose

Burose

All core use cases for Operations Bridge tie it to the underpinning of the Vertica big data analytics platform. We’re consolidating all the different types of data that we are getting; whether business transactions, IT infrastructure, application infrastructure, or business services data -- all of that is actually moved into a single data repository and then reduced in order to basically understand what the original root cause is.

And from there, these tools like the analytics that Gary described, not only identify the root cause, but move to remediation, to fixing the problem using automation.

This all makes it easy for the stakeholders to understand what the status is and provide the right dashboarding, reporting via the right interface to the right user across the full hybrid cloud infrastructure.

As we saw, some 88 percent of our customers are connecting their cloud infrastructure to their on-premises infrastructure. We are providing the ability to understand that connectivity through a dynamically updated model, and to show how these services are interconnecting -- independent of the technology -- whether deployed in the public cloud, a private cloud, or even in a classical, non-cloud infrastructure. They can then understand how they are connecting, and they can use the toolset to navigate through it all, a modern HTML5-based interface, to look at all the data in one place.

They are able to consolidate more than 250 different technologies and information into a single place: their log files, the events, metrics, topology -- everything together to understand the health of their infrastructure. That is the key element that we drive with the Operations Bridge.

Now, we have extended the capabilities further, specifically for the cloud. We basically took the generic capability and made it work specifically for the different cloud stacks, whether private cloud, your own stack implementations, a hyperconverged (HCI) stack, like Nutanix, or a Docker container infrastructure that you bring up on a public cloud like AzureAmazon, or Google Cloud.

We are now automatically discovering and placing that all into the context of your business service application by using the Automated Service Modeling part of the Operations Bridge.

Now, once we actually integrate those toolsets, we tightly integrate them for native tools on Amazon or for Docker tools, for example. You can include these tools, so you can then automate processes from within our console.

Customers vote a top choice

And, best of all, we have been getting positive feedback from the cloud monitoring community, by the customers. And the feedback has helped earn us a Readers’ Choice Award by the Cloud Computing Insider in 2017, by being ahead of the competition.

This success is not just about getting the data together, using ML to understand the problem, and using our capabilities to connect these things together. At the end of the day, you need to act on the activity.

Having a full-blown orchestration compatibility within OpsBridgeprovides more than 5,000 automated workflows, so you can automate different remediation tasks -- or potentially point to future provisioning tasks that solve the problems of whatever you can imagine. You can use this to not only identify the root cause, but you can automatically kick off a workflow to address the specific problems.

If you don’t want to address a problem through the workflow, or cannot automatically address it, you still have a rich set of integrated tools to manually address a problem.

Having a full-blown orchestration capability with OpsBridge provides more than 5,000 automated workflows to automate many different remediation tasks.

Last, but not least, you need to keep your stakeholders up to date. They need to know, anywhere that they go, that the services are working. Our real-time dashboard is very open and can integrate with any type of data -- not just the operational data that we collect and manage with the Operations Bridge, but also third-party data, such as business data, video feeds, and sentiment data. This gets presented on a single visual dashboard that quickly gives the stakeholders the information: Is my business service actually running? Is it okay? Can I feel good about the business services that I am offering to my internal as well as external customer-users?

And you can have this on a network operations center (NOC) wall, on your tablet, or your phone -- wherever you’d like to have that type of dashboard. You can easily you create those dashboards using Microsoft Office toolsets, and create graphical, very appealing dashboards for your different stakeholders.

Gardner: Thank you, Harald. We are now going to go beyond just the telling, we are going to do some showing. We have heard a lot about what’s possible. But now let’s hear from an example in the field.

Multicloud monitoring in action

Next up is David Herrera, Cloud Service Manager at Banco Sabadell in Barcelona. Let’s find out about this use case and their use of Micro Focus’s OpsBridge solution.

David Herrera: Banco Sabadell is fourth largest Spanish banking group. We had a big project to migrate several systems into the cloud and we realized that we didn’t have any kind of visibility about what was happening in the cloud.

Herrera

Herrera

We are working with private and public clouds and it’s quite difficult to correlate the information in events and incidents. We need to aggregate this information in just one dashboard. And for that, OpsBridgeis a perfect solution for us.

We started to develop new functionalities on OpsBridge, to customize for our needs. We had to cooperate with a project development team in order to achieve this.

The main benefit is that we have a detailed view about what is happening in the cloud. In the dashboard we are able to show availability, number of resources that we are using -- almost in real time. Also, we are able to show what the cost is in real time of every resource, and we can do even the projection of the cost of the items.

The main benefit is we have a detailed view about what is happening in the cloud. We are able to show what the cost is in real time of every resource.

[And that’s for] every single item that we have in the cloud now, even across the private and public cloud. The bank has invested a lot of money in this solution and we need to show them that it’s really a good choice in economical terms to migrate several systems to the cloud, and this tool will help us with this.

Our response time will be reduced dramatically because we are able to filter and find what is happening, andcall the right people to fix the problem quickly. The business department will understand better what we are doing because they will be able to see all the information, and also select information that we haven’t gathered. They will be more aligned with our work and we can develop and deliver better solutions because also we will understand them.

We were able to build a new monitoring system from scratch that doesn’t exist on the market. Now, we are able to aggregate a lot of detailing information from different clouds.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Micro Focus.

You may also be interested in:

How HudsonAlpha transforms hybrid cloud complexity into an IT force multiplier

The next BriefingsDirect hybrid IT management success story examines how the nonprofit research institute HudsonAlpha improves how it harnesses and leverages a spectrum of IT deployment environments.

We’ll now learn how HudsonAlpha has been testing a new Hewlett Packard Enterprise (HPE) solution, OneSphere, to gain a common and simplified management interface to rule them all.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Here to help explore the benefits of improved levels of multi-cloud visibility and process automation is Katreena Mullican, Senior Architect and Cloud Whisperer at HudsonAlpha Institute for Biotechnology in Huntsville, Alabama. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What’s driving the need to solve hybrid IT complexity at HudsonAlpha?

Mullican: The big drivers at HudsonAlpha are the requirements for data locality and ease-of-adoption. We produce about 6 petabytes of new data every year, and that rate is increasing with every project that we do.

Mullican

Mullican

We support hundreds of research programs with data and trend analysis. Our infrastructure requires quickly iterating to identify the approaches that are both cost-effective and the best fit for the needs of our users.

Gardner: Do you find that having multiple types of IT platforms, environments, and architectures creates a level of complexity that’s increasingly difficult to manage?

Mullican: Gaining a competitive edge requires adopting new approaches to hybrid IT. Even carefully contained shadow IT is a great way to develop new approaches and attain breakthroughs.

Gardner: You want to give people enough leash where they can go and roam and experiment, but perhaps not so much that you don’t know where they are, what they are doing.

Software-defined everything 

Mullican: Right. “Software-defined everything” is our mantra. That’s what we aim to do at HudsonAlpha for gaining rapid innovation.

Gardner: How do you gain balance from too hard-to-manage complexity, with a potential of chaos, to the point where you can harness and optimize -- yet allow for experimentation, too?

Mullican: IT is ultimately responsible for the security and the up-time of the infrastructure. So it’s important to have a good framework on which the developers and the researchers can compute. It’s about finding a balance between letting them have provisioning access to those resources versus being able to keep an eye on what they are doing. And not only from a usage perspective, but from a cost perspective, too.

Simplified 

Hybrid Cloud

Management

Gardner: Tell us about HudsonAlpha and its fairly extreme IT requirements.

Mullican: HudsonAlpha is a nonprofit organization of entrepreneurs, scientists, and educators who apply the benefits of genomics to everyday life. We also provide IT services and support for about 40 affiliate companies on our 150-acre campus in Huntsville, Alabama.

Gardner: What about the IT requirements? How you fulfill that mandate using technology?

Mullican: We produce 6 petabytes of new data every year. We have millions of hours of compute processing time running on our infrastructure. We have hardware acceleration. We have direct connections to clouds. We have collaboration for our researchers that extends throughout the world to external organizations. We use containers, and we use multiple cloud providers. 

Gardner: So you have been doing multi-cloud before there was even a word for multi-cloud?

Mullican: We are the hybrid-scale and hybrid IT organization that no one has ever heard of.

Gardner: Let’s unpack some of the hurdles you need to overcome to keep all of your scientists and researchers happy. How do you avoid lock-in? How do you keep it so that you can remain open and competitive?

Agnostic arrangements of clouds

Mullican: It’s important for us to keep our local datacenters agnostic, as well as our private and public clouds. So we strive to communicate with all of our resources through application programming interfaces (APIs), and we use open-source technologies at HudsonAlpha. We are proud of that. Yet there are a lot of possibilities for arranging all of those pieces.

There are a lot [of services] that you can combine with the right toolsets, not only in your local datacenter but also in the clouds. If you put in the effort to write the code with that in mind -- so you don’t lock into any one solution necessarily -- then you can optimize and put everything together.

Gardner: Because you are a nonprofit institute, you often seek grants. But those grants can come with unique requirements, even IT use benefits and cloud choice considerations.

Cloud cost control, granted

Mullican: Right. Researchers are applying for grants throughout the year, and now with the National Institutes of Health (NIH), when grants are awarded, they come with community cloud credits, which is an exciting idea for the researchers. It means they can immediately begin consuming resources in the cloud -- from storage to compute -- and that cost is covered by the grant.

So they are anxious to get started on that, which brings challenges to IT. We certainly don’t want to be the holdup for that innovation. We want the projects to progress as rapidly as possible. At the same time, we need to be aware of what is happening in a cloud and not lose control over usage and cost.

Simplified 

Hybrid Cloud

Management

Gardner: Certainly HudsonAlpha is an extreme test bed for multi-cloud management, with lots of different systems, changing requirements, and the need to provide the flexibility to innovate to your clientele. When you wanted a better management capability, to gain an overview into that full hybrid IT environment, how did you come together with HPE and test what they are doing?

Variety is the spice of IT

Mullican: We’ve invested in composable infrastructure and hyperconverged infrastructure (HCI) in our datacenter, as well as blade server technology. We have a wide variety of compute, networking, and storage resources available to us.

The key is: How do we rapidly provision those resources in an automated fashion? I think the key there is not only for IT to be aware of those resources, but for developers to be as well. We have groups of developers dealing with bioinformatics at HudsonAlpha. They can benefit from all of the different types of infrastructure in our datacenter. What HPE OneSphere does is enable them to access -- through a common API -- that infrastructure. So it’s very exciting.

Gardner: What did HPE OneSphere bring to the table for you in order to be able to rationalize, visualize, and even prioritize this very large mixture of hybrid IT assets?

Mullican: We have been beta testing HPE OneSphere since October 2017, and we have tied it into our VMware ESX Server environment, as well as our Amazon Web Services (AWS) environment successfully -- and that’s at an IT level. So our next step is to give that to researchers as a single pane of glass where they can go and provision the resources themselves.

Gardner: What this might capability bring to you and your organization?

Cross-training the clouds

Mullican: We want to do more with cross-cloud. Right now we are very adept at provisioning within our datacenters, provisioning within each individual cloud. HudsonAlpha has a presence in all the major public clouds -- AWSGoogleMicrosoft Azure. But the next step would be to go cross-cloud, to provision applications across them all.

For example, you might have an application that runs as a series of microservices. So you can have one microservice take advantage of your on-premises datacenter, such as for local storage. And then another piece could take advantage of object storage in the cloud. And even another piece could be in another separate public cloud.

But the key here is that our developer and researchers -- the end users of OneSphere – they don’t need to know all of the specifics of provisioning in each of those environments. That is not a level of expertise in their wheelhouse. In this new OneSphere way, all they know is that they are provisioning the application in the pipeline -- and that’s what the researchers will use. Then it’s up to us in IT to come along and keep an eye on what they are doing through the analytics that HPE OneSphere provides.

Gardner: Because OneSphere gives you the visibility to see what the end users are doing, potentially, for cost optimization and remaining competitive, you may be able to play one cloud off another. You may even be able to automate and orchestrate that.

Simplified 

Hybrid Cloud

Management

Mullican: Right, and that will be an ongoing effort to always optimize cost -- but not at the risk of slowing the research. We want the research to happen, and to innovate as quickly as possible. We don’t want to be the holdup for that. But we definitely do need to loop back around and keep an eye on how the different clouds are being used and make decisions going forward based on the analytics.

Gardner: There may be other organizations that are going to be more cost-focused, and they will probably want to dial back to get the best deals. It’s nice that we have the flexibility to choose an algorithmic approach to business, if you will.

Mullican: Right. The research that we do at HudsonAlpha saves lives and the utmost importance is to be able to conduct that research at the fastest speed.

Gardner: HPE OneSphere seems geared toward being cloud-agnostic. They are beginning on AWS, yet they are going to be adding more clouds. And they are supporting more internal private cloud infrastructures, and using an API-driven approach to microservices and containers.

The research that we do at HudsonAlpha saves lives, and the utmost importance is to be able to conduct the research at the fastest speed.

As an early tester, and someone who has been a long-time user of HPE infrastructure, is there anything about the combination of HPE SynergyHPE SimpliVity HCI, and HPE 3PAR intelligent storage -- in conjunction with OneSphere -- that’s given you a "whole greater than the sum of the parts" effect?

Mullican: HPE Synergy and composable infrastructure is something that is very near and dear to me. I have a lot of hours invested with HPE Synergy Image Streamer and customizing open-source applications on Image Streamer -– open-source operating systems and applications.

The ability to utilize that in the mix that I have architected natively with OneSphere -- in addition to the public clouds -- is very powerful, and I am excited to see where that goes.

Gardner: Any words of wisdom to others who may be have not yet gone down this road? What do you advise others to consider as they are seeking to better compose, automate, and optimize their infrastructure? 

Get adept at DevOps

Mullican: It needs to start with IT. IT needs to take on more of a DevOps approach.

As far as putting an emphasis on automation -- and being able to provision infrastructure in the datacenter and the cloud through automated APIs -- a lot of companies probably are still slow to adopt that. They are still provisioning in older methods, and I think it’s important that they do that. But then, once your IT department is adept with DevOps, your developers can begin feeding from that and using what IT has laid down as a foundation. So it needs to start with IT.

It involves a skill set change for some of the traditional system administrators and network administrators. But now, with software-defined networking (SDN) and with automated deployments and provisioning of resources -- that’s a skill set that IT really needs to step up and master. That’s because they are going to need to set the example for the developers who are going to come along and be able to then use those same tools.

That’s the partnership that companies really need to foster -- and it’s between IT and developers. And something like HPE OneSphere is a good fit for that, because it provides a unified API.

On one hand, your IT department can be busy mastering how to communicate with their infrastructure through that tool. And at the same time, they can be refactoring applications as microservices, and that’s up to the developer teams. So both can be working on all of this at the same time.

Then when it all comes together with a service catalog of options, in the end it’s just a simple interface. That’s what we want, to provide a simple interface for the researchers. They don’t have to think about all the work that went into the infrastructure, they are just choosing the proper workflow and pipeline for future projects.

We want to provide a simple interface to the researchers. They don't have to think about all the work that went into the infrastructure.

Gardner: It also sounds, Katreena, like you are able to elevate IT to a solutions-level abstraction, and that OneSphere is an accelerant to elevating IT. At the same time, OneSphere is an accelerant to the adoption of DevOps, which means it’s also elevating the developers. So are we really finally bringing people to that higher plane of business-focus and digital transformation?

HCI advances across the globe

Mullican: Yes. HPE OneSphere is an advantage to both of those departments, which in some companies can be still quite disparate. Now at HudsonAlpha, we are DevOps in IT. It’s not a distinguished department, but in some companies that’s not the case.

And I think we have a lot of advantages because we think in terms of automation, and we think in terms of APIs from the infrastructure standpoint. And the tools that we have invested in, the types of composable and hyperconverged infrastructure, are helping accomplish that.

Gardner: I speak with a number of organizations that are global, and they have some data sovereignty concerns. I’d like to explore, before we close out, how OneSphere also might be powerful in helping to decide where data sets reside in different clouds, private and public, for various regulatory reasons.

Is there something about having that visibility into hybrid IT that extends into hybrid data environments?

Mullican: Data locality is one of our driving factors in IT, and we do have on-premises storage as well as cloud storage. There is a time and a place for both of those, and they do not always mix, but we have requirements for our data to be available worldwide for collaboration.

So, the services that HPE OneSphere makes available are designed to use the appropriate data connections, whether that would be back to your object storage on-premises, or AWS Simple Storage Service (S3), for example, in the cloud.

Simplified 

Hybrid Cloud

Management

Gardner: Now we can think of HPE OneSphere as also elevating data scientists -- and even the people in charge of governance, risk management, and compliance (GRC) around adhering to regulations. It seems like it’s a gift that keeps giving.

Hybrid hard work pays off

Mullican: It is a good fit for hybrid IT and what we do at HudsonAlpha. It’s a natural addition to all of the preparation work that we have done in IT around automated provisioning with HPE Synergy and Image Streamer.

HPE OneSphere is a way to showcase to the end user all of the efforts that have been, and are being, done by IT. That’s why it’s a satisfying tool to implement, because, in the end, you want what you have worked on so hard to be available to the researchers and be put to use easily and quickly.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

South African insurer King Price gives developers the royal treatment as HCI meets big data

The next BriefingsDirect developer productivity insights interview explores how a South African insurance innovator has built a modern hyperconverged infrastructure (HCI) IT environment that replicates databases so fast that developers can test and re-test to their hearts’ content.

We’ll now learn how King Price in Pretoria also gained data efficiencies and heightened disaster recovery benefits from their expanding HCI-enabled architecture

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Here to help us explore the myriad benefits of a data transfer intensive environment is Jacobus Steyn, Operations Manager at King Price in Pretoria, South Africa. The discussion is moderated by  Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What have been the top trends driving your interest in modernizing your data replication capabilities?

Steyn: One of the challenges we had was the business was really flying blind. We had to create a platform and the ability to get data out of the production environment as quickly as possible to allow the business to make informed decisions -- literally in almost real-time.

Gardner: What were some of the impediments to moving data and creating these new environments for your developers and your operators?

How to solve key challenges

With HPE SimpliVity HCI

Steyn: We literally had to copy databases across the network and onto new environments, and that was very time consuming. It literally took us two to three days to get a new environment up and running for the developers. You would think that this would be easy -- like replication. It proved to be quite a challenge for us because there are vast amounts of data. But the whole HCI approach just eliminated all of those challenges.

Gardner: One of the benefits of going at the infrastructure level for such a solution is not only do you solve one problem-- but you probably solve multiple ones; things like replication and deduplication become integrated into the environment. What were some of the extended benefits you got when you went to a hyperconverged environment?

Time, Storage Savings 

Steyn: Deduplication was definitely one of our bigger gains. We have had six to eight development teams, and I literally had an identical copy of our production environment for each of them that they used for testing, user acceptance testing (UAT), and things like that.

Steyn

Steyn

At any point in time, we had at least 10 copies of our production environment all over the place. And if you don’t dedupe at that level, you need vast amounts of storage. So that really was a concern for us in terms of storage.

Gardner: Of course, business agility often hinges on your developers’ productivity. When you can tell your developers, “Go ahead, spin up; do what you want,” that can be a great productivity benefit.

Steyn: We literally had daily fights between the IT operations and infrastructure guys and the developers because they were needed resources and we just couldn’t provide them with those resources. And it was not because we didn’t have resources at hand, but it was just the time to spin it up, to get to the guys to configure their environments, and things like that.

It was literally a three- to four-day exercise to get an environment up and running. For those guys who are trying to push the agile development methodology, in a two-week sprint, you can’t afford to lose two or three days.

Gardner: You don’t want to be in a scrum where they are saying, “You have to wait three or four days.” It doesn’t work.

Steyn: No, it doesn’t, definitely not.

Gardner: Tell us about King Price. What is your organization like for those who are not familiar with it?

As your vehicle depreciates, so does your monthly insurance premium. That has been our biggest selling point.  

Steyn: King Price initially started off as a short-term insurance company about five years ago in Pretoria. We have a unique, one-of-a-kind business model. The short of it is that as your vehicle’s value depreciates, so does your monthly insurance premium. That has been our biggest selling point.

We see ourselves as disruptive. But there are also a lot of other things disrupting the short-term insurance industry in South Africa -- things like Uber and self-driving cars. These are definitely a threat in the long term for us.

It’s also a very competitive industry in South Africa. Sowe have been rapidly launching new businesses. We launched commercial insurance recently. We launched cyber insurance. Sowe are really adopting new business ventures.

How to solve key challenges

With HPE SimpliVity HCI

Gardner: And, of course, in any competitive business environment, your margins are thin; you have to do things efficiently. Were there any other economic benefits to adopting a hyperconverged environment, other than developer productivity?

Steyn: On the data center itself, the amount of floor space that you need, the footprint, is much less with hyperconverged. It eliminates a lot of requirements in terms of networking, switching, and storage. The ease of deployment in and of itself makes it a lot simpler.

On the business side, we gained the ability to have more data at-hand for the guys in the analytics environment and the ratings environment. They can make much more informed decisions, literally on the fly, if they need to gear-up for a call center, or to take on a new marketing strategy, or something like that.

Gardner: It’s not difficult to rationalize the investment to go to hyperconverged.

Worth the HCI Investment

Steyn: No, it was actually quite easy. I can’t imagine life or IT without the investment that we’ve made. I can’t see how we could have moved forward without it.

Gardner: Give our audience a sense of the scale of your development organization. How many developers do you have? How many teams? What numbers of builds do you have going on at any given time?

Steyn: It’s about 50 developers, or six to eight teams, depending on the scale of the projects they are working on. Each development team is focused on a specific unit within the business. They do two-week sprints, and some of the releases are quite big.

It means getting the product out to the market as quickly as possible, to bring new functionality to the business. We can’t afford to have a piece of product stuck in a development hold for six to eight weeks because, by that time, you are too late.

Gardner: Let’s drill down into the actual hyperconverged infrastructure you have in place. What did you look at? How did you make a decision? What did you end up doing? 

Steyn: We had initially invested in Hewlett Packard Enterprise (HPE) SimpliVity 3400 cubes for our development space, and we thought that would pretty much meet our needs. Prior to that, we had invested in traditional blades and storage infrastructure. We were thinking that we would stay with that for the production environment, and the SimpliVity systems would be used for just the development environments.

The gains we saw were just so big ... Now we have the entire environment running on SimpliVity cubes.  

But the gains we saw in the development environment were just so big that we very quickly made a decision to get additional cubes and deploy them as the production environment, too. And it just grew from there. Sowe now have the entire environment running on SimpliVity cubes.

We still have some traditional storage that we use for archiving purposes, but other than that, it’s 100 percent HPE SimpliVity.

Gardner: What storage environment do you associate with that to get the best benefits?

Keep Storage Simple

Steyn: We are currently using the HPE 3PAR storage, and it’s working quite well. We have some production environments running there; a lot of archiving uses for that. It’s still very complementary to our environment.

Gardner: A lot of organizations will start with HCI in something like development, move it toward production, but then they also extend it into things like data warehouses, supporting their data infrastructure and analytics infrastructure. Has that been the case at King Price?

Steyn: Yes, definitely. We initially began with the development environment, and we thought that’s going to be it. We very soon adopted HCI into the production environments. And it was at that point where we literally had an entire cube dedicated to the enterprise data warehouse guys. Those are the teams running all of the modeling, pricing structures, and things like that. HCI is proving to be very helpful for them as well, because those guys, they demand extreme data performance, it’s scary.

How to solve key challenges

With HPE SimpliVity HCI

Gardner: I have also seen organizations on a slippery slope, that once they have a certain critical mass of HCI, they begin thinking about an entire software-defined data center (SDDC). They gain the opportunity to entirely mirror data centers for disaster recovery, and for fast backup and recovery security and risk avoidance benefits. Are you moving along that path as well?

Steyn: That’s a project that we launched just a few months ago. We are redesigning our entire infrastructure. We are going to build in the ease of failover, the WAN optimization, and the compression. It just makes a lot more sense to just build a second active data center. So that’s what we are busy doing now, and we are going to deploy the next-generation technology in that data center.

Gardner: Is there any point in time where you are going to be experimenting more with cloud, multi-cloud, and then dealing with a hybrid IT environment where you are going to want to manage all of that? We’ve recently heard news from HPE about OneSphere. Any thoughts about how that might relate to your organization?

Cloud Common Sense

Steyn: Yes, in our engagement with Microsoft, for example, in terms of licensing of products, this is definitely something we have been talking about. Solutions like HPE OneSphere are definitely going to make a lot of sense in our environment.

There are a lot of workloads that we can just pass onto the cloud that we don’t need to have on-premises, at least on a permanent basis. Even the guys from our enterprise data warehouse, there are a lot of jobs that every now and then they can just pass off to the cloud. Something like HPE OneSphere is definitely going to make that a lot easier for us. 

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Containers, microservices, and HCI help governments in Norway provide safer public data sharing

The next BriefingsDirect digital transformation success story examines how local governments in Norway benefit from a common platform approach for safe and efficient public data distribution.

We’ll now learn how Norway’s 18 counties are gaining a common shared pool for data on young people’s health and other sensitive information thanks to streamlined benefits of hyperconverged infrastructure (HCI)containers, and microservices.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. 

Here to help us discover the benefits of a modern platform for smarter government data sharing is FrodeSjovatsen, Head of Development for FINT Project in Norway. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What is driving interest in having a common platform for public information in your country?

SjovatsenWe need interactions between the government and the community to be more efficient. Sowe needed to build the infrastructure that supports automatic solutions for citizens. That’s the main driver.

Gardner: What problems do you need to overcome in order to create a more common approach?

Common API at the core

SjovatsenOne of the biggest issues is [our users] buy business applications such as human resources for school administrators to use and everyone is happy. They have a nice user interface on the data. But when we need to use that data across all the other processes -- that’s where the problem is. And that’s what the FINT project is all about.

Sjovatsen

Sjovatsen

[Due to apps heterogeneity] we then need to have developers create application programming interfaces (APIs), and it costs a lot of money, and it is of variable quality. What we’re doing now is creating a common API that’s horizontal -- for all of those business applications. It gives us the ability to use our data much more efficiently.

Gardner: Please describe for us what the FINT project is and why this is so important for public health.

SjovatsenIt’s all about taking the power back, regarding the information we’ve handed the vendors. There is an initiative in Norway where the government talks about getting control ofallthe information. And the thought behind the FINT project is that we need to get ahold of all the information, describe it, define it, and then make it available via APIs -- both for public use and also for internal use.

Gardner: What sort of information are we dealing with here? Why is it important for the general public health? 

SjovatsenIt’s all kinds of information. For example, it’s school information, such as about how the everyday processes run, the schedules, the grades, and so on. All of that data is necessary to create good services, for the teachers and students. We also want to make that data available so that we can build new innovations from businesses that want to create new and better solutions for us.

Learn More About

HPE Pointnext Services

Gardner: When you were tasked with creating this platform, why did you seek an API-driven, microservices-based architecture? What did you look for to maintain simplicity and cost efficiency in the underlying architecture and systems?

Agility, scalability, and speed

SjovatsenWe needed something that was agile so that we can roll out updates continuously. We also needed a way to roll back quickly, if something fails. 

The reason we are running this on one of the county council’s datacenters is we wanted to separate it from their other production environments. We need to be able to scale these services quickly. When we talked to Hewlett Packard Enterprise (HPE), the solution they suggested was using HCI.

Gardner: Where are you in the deployment and what have been some of the benefits of such a hyperconverged approach? 

SjovatsenWe are in the late stage of testing and we’re going into production in early 2018. At the moment, we’re looking into using HPE SimpliVity

Container comfort

Gardner: Containers are an important part of moving toward automation and simplicity for many people these days. Is that another technology that you are comfortable with and, if so, why?

SjovatsenYes, definitely. We are very comfortable with that. The biggest reason is that when we use containers, we isolate the application; the whole container is the application and we are able to test the code before it goes into production. That’s one of the main drivers.

The second reason is that it’s easy to roll out andit’s easy to roll back. We also have developers in and out of the project, and containers make it easy for them to quickly get in to the environment they are working on. It’s not that much work if they need to install on another computer to get a working environment running.

Gardner: A lot of IT organizations are trying to reduce the amount of money and time they spend on maintaining existing applications, so they can put more emphasis into creating new applications. How do containers, microservices, and API-driven services help you flip from an emphasis on maintenance to an emphasis on innovation?

Learn More About

HPE Pointnext Services

SjovatsenThe container approach is very close to the DevOps environment, so the time from code to production is very small compared to what we did before when we had some operations guys installing the stuff on servers. Now, we have a very rapid way to go from code to production.

Gardner: With the success of the FINT Project, would you consider extending this to other types of data and applications in other public sectoractivities or processes? If your success here continues, is this a model that you think has extensibility into other public sector applications?

Unlocking the potential

SjovatsenYes, definitely. At the moment, there are 18 county councils in this project. We are just beginning to introduce this to all of the 400 municipalities [in Norway]. So that’s the next step. Those are the same data sets that we want to share or extend. But there are also initiatives with central registers in Norway and we will add value to those using our approach in the next year or so.

Gardner: That could have some very beneficial impacts, very good payoffs.

SjovatsenYes, it could. There are other uses. For example, in Oslo we have made an API extend over the locks on many doors. So, we can now have one API to open multiple locking systems. So that’s another way to use this approach.

In Oslo we have made an API extend over the locks on many doors. We can now have one API to open multiple locking systems.

Gardner: It shows the wide applicability of this. Any advice, Frode, for other organizations that are examining more of a container, DevOps, and API-driven architecture approach? What might you tell them as they consider taking this journey?

SjovatsenI definitely recommend it -- it’s simple and agile. The main thing with containers is to separate the storage from the applications. That’s probably what we worked on the most to make it scalable. We wrote the application so it’s scalable, and we separated the data from the presentation layer.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Ericsson and HPE accelerate digital transformation via customizable mobile business infrastructure stacks

The next BriefingsDirect agile data center architecture interview explores how an Ericsson and Hewlett Packard Enterprise (HPE) partnership establishes a mobile telecommunications stack that accelerates data services adoption in rapidly advancing economies. 

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. 

We’ll now learn how this mobile business support infrastructure possesses a low-maintenance common core -- yet remains easily customizable for regional deployments just about anywhere. 

Here to help us define the unique challenges of enabling mobile telecommunications operators in countries such as Bangladesh and Uzbekistan, we are joined by Mario Agati, Program Director at Ericsson, based in Amsterdam, and Chris James-Killer, Sales Director for HPE. The interview is conducted by Dana Gardner, Principal Analyst at Interarbor Solutions

Here are some excerpts:

Gardner: What are the unique challenges that mobile telecommunications operators face when they go to countries like Bangladesh?

Agati

Agati

Agati: First of all, these are countries with a very low level of revenue per user (RPU). That means for them cost efficiency is a must. All of the solutions that are going to be implemented in those countries should be, as much as possible, focused on cost efficiency, reusability, and industrialization. That’s one of the main reasons for this program. We are addressing those types of needs -- of high-level industrialization and reusability across countries where cost-efficiency is king.

Gardner: In such markets, the technology needs to be as integrated as possible because some skill sets can be hard to come by. What are some of the stack requirements from the infrastructure side to make it less complex?

James-Killer: These can be very challenging countries, and it’s key to do the pre-work as systematically as you can. So, we work very closely with the architects at Ericsson to ensure that we have something that’s repeatable, that’s standardized and delivers a platform that can be rolled out readily in these locations. 

Even countries such as Algeria are very difficult to get goods into, and so we have to work with customs, we have to work with goods transfer people; we have to work on local currency issues. It’s a big deal.

Learn More About the

HPE and Ericsson Alliance

Gardner: In a partnership like this between such major organizations as Ericsson and HPE, how do you fit together? Who does what in this partnership?

Agati: At Ericsson, we are the prime integrator responsible for running the overall digital transformation. This is for a global operator that is presently in multiple countries. It shows the complexity of such deals.

We are responsible for delivering a new, fully digital business support system (BSS). This is core for all of the telco services. It includes all of the business management solutions -- from the customer-facing front end, to billing, to charging, and the services provisioning.

In order to cope with this level of complexity, we at Ericsson rely on a number of partners that are helping us where we don’t have our own solutions. And, in this case, HPE is our selected partner for all of the infrastructure components. That’s how the partnership was born.

Gardner: From the HPE side, what are the challenges in bringing a data center environment to far-flung parts of the world? Is this something that you can do on a regional basis, with a single data center architecture, or do you have to be discrete to each market?

Your country, your data center

James-Killer: It is more bespoke than we would like. It’s not as easy as just sending one standard shipping container to each country. Each country has its own dynamic, its own specific users. 

The other item worth mentioning is that each country needs its own data center environment. We can’t share them across countries, even if the countries are right next to each other, because there are laws that dictate this separation in the telecommunications world. 

James-Killer

James-Killer

So there are unique attributes for each country. We work with Ericsson very closely to make sure that we remove as many itemized things as we can. Obviously, we have the technology platform standardized. And then we work out what’s additionally required in each country. Some countries require more of something and some countries require less. We make sure it’s all done ahead of time. Then it comes down to efficient and timely shipping, and working with local partners for installation.

Gardner: What is the actual architecture in terms of products? Is this heavily hyper-converged infrastructure (HCI)-oriented, and software-defined? What are the key ingredients that allow you to meet your requirements?

James-Killer: The next iterations of this will become a lot more advanced. It will leverage a composable infrastructure approach to standardize resources and ensure they are available to support required workloads. This will reduce overall cost, reduce complexity, and make the infrastructure more adaptable to the end customers’ business needs and how they change over time. Our HPE Synergy solution is a critical component of this infrastructure foundation. 

At the moment we have to rely on what’s been standardized as a platform for supporting this BSS portfolio.

This platform has been established for years and years. So it is not necessarily on the latest technology ... but it's a good, standardized, virtualized environment to run this all in a failsafe way.

We have worked with Ericsson for a long time on this. This platform has been established for years and years. So it is not necessarily on the latest technology; the latest is being tested right now. For example, the Ericsson Karlskrona BSS team in Sweden is currently testing HPE Synergy. But, as we speak, the current platform is HPE Gen9 so it’s ProLiant Servers. HPE Aruba is involved; a lot of heavy-duty storage is involved as well. 

But it’s a good, standardized, virtualized environment to run this all in a failsafe way. That’s really the most critical thing. Instead of being the most advanced, we just know that it will work. And Ericsson needs to know that it will work because this platform is critical to the end-users and how they operate within each country.

Gardner: These so-called IT frontiers countries -- in such areas as Southeast Asia, Oceania, the Middle East, Eastern Europe, and the Indian subcontinent -- have a high stake in the success of mobile telecommunications. They want their economies to grow. Having a strong mobile communications and data communications infrastructure is essential to that. How do we ensure the agility and speed? How are you working together to make this happen fast?

Architect globally, customize locally

Agati: This comes back to the industrialization aspect. By being able to define a group-wide solution that is replicable in each of these countries, you are automatically providing a de facto solution in countries where it would be very difficult to develop locally. They obtain a complex, state-of-the-art core telco BSS solution. Thanks to this group initiative, we are able to define a strong set of capabilities and functions, an architecture that is common to all of the countries. 

That becomes a big accelerator because the solution comes pre-integrated, pre-defined, and is just ready to be customized for whatever remains to be done locally. There are always aspects of the regulations that need to be taken care of locally. But you can start from a predefined asset that is already covering some 80 percent of your needs.

Learn More About the

HPE and Ericsson Alliance

In a relatively short time, in those countries, they obtain a state-of-the-art, brand-new, digital BSS solution that otherwise would have required a local and heavy transformation program -- with all of the complexity and disadvantages of that.

Gardner:And there’s a strong economic incentive to keep the total cost of IT for these BSS deployments at a low percentage of the carriers’ revenue. 

Shared risk, shared reward

Agati: Yes. The whole idea of the digital transformation is to address different types of needs from the operator’s perspective. Cost efficiency is probably the biggest driver because it’s the one where the shareholders immediately recognize the value. There are other rationales for digital transformation, such as relating to the flexibility in the offering of new services and of embracing new business models related to improved customer experiences. 

On the topic of cost efficiency, we have created with a global operator an innovative revenue-share deal. From our side, we commit to providing them a solution that enables them a certain level of operational cost reduction. 

The current industry average cost of IT is 5 to 6 percent of total mobile carrier revenue. Now, thanks to the efficiency that we are creating from the industrialization and re-use across the entire operator’s group, we are committed to bringing the operational cost down to the level of around 2 percent. In exchange, we will receive a certain percentage of the operator’s revenue back. 

That is for us, of course, a bold move. I need to say this clearly, because we are betting on our capability of not only providing a simple solution, but on also providing actual shareholder value, because that's the game we are actually playing in now.

It's a real quality of life issue ... These people need to be connected and haven't been connected before.

We are risking our own money on it at the end of the game. So that's what makes the big difference in this deal against any other deal that I have seen in my career -- and in any other deal that I have seen in this industry. There is probably no one that is really taking on such a huge challenge.

Gardner: It's very interesting that we are seeing shared risks, but then also shared rewards. It's a whole different way of being in an ecosystem, being in a partnership, and investing in big-stakes infrastructure projects.

Agati: Yes. 

Gardner: There has been recent activity for your solutions in Bangladesh. Can you describe what's been happening there, and why that is illustrative of the value from this approach?

Bangladesh blueprint

Agati:Bangladesh is one of the countries in the pipeline, but it is not yet one of the most active. We are still working on the first implementation of this new stack. That will be the one that will set the parameters and become the template for all the others to come. 

The logic of the transformation program is to identify a good market where we can challenge ourselves and deliver the first complete solution, and then reuse that solution for all of the others. This is what is happening now; we’re in the advanced stages of this pilot project.

Gardner: Yes, thank you. I was more referring to Bangladesh as an example of how unique and different each market can be. In this case, people often don't have personal identification; therefore, one needs to use a fingerprint biometric approach in the street to sell a SIM to get them up and running, for example. Any insight on that, Chris?

Learn More About the

HPE and Ericsson Alliance

James-Killer: It speaks to the importance of the work that Ericsson is doing in these countries. We have seen in Africa and in parts of the Middle East how important telecommunications is to an individual. It's a real quality of life issue. We take it for granted in Sweden; we certainly take advantage of it in my home country of Australia. But in some of these countries you are actually making a genuine difference.

These people need to be connected and haven’t been connected before. And you can see what has happened politically when the people have been exposed to this kind of technology. So it's admirable, I believe, what Ericsson is doing, particularly commercially, and the way that they are doing it. 

It also speaks to Ericsson's success and the continued excitement around LTE and 4G in these markets; not actually 5G yet. When you visit Ericsson's website or go to Ericsson’s shows, there's a lot of talk about autonomous vehicles and working with Volvo and working with Scania, and the potential of 5G for smart cities initiatives. But some of the best work that Ericsson does is in building out the 4G networks in some of these frontier countries.

Agati: If I can add one thing. You mentioned how specific requirements are coming from such countries as Bangladesh, where we have the specific issue related to identity management. This is one of the big challenges we are now facing, of gaining the proper balance between coping with different local needs, such as different regulations, different habits, different cultures -- but at the same time also industrializing the means, making them repeatable and making that as simple as possible and as consistent as possible across all of these countries. 

There is a continuous battle between the attempts to simplify and the reality check on what does not always allow simplification and industrialization. That is the daily battle that we are waging: What do you need and what don’t you need. Asking, “What is the business value behind a specific capability? What is the reasoning behind why you really need this instead of that?”

We at Ericsson want to be the champion of simplicity and this project is the cornerstone of going in that direction.

At the end of the game, this is the bet that we are making together with our customers -- that there is a path to where you can actually find the right way to simplification. Ericsson has recently been launching our new brand and it is about this quest for making it easier. That's exactly our challenge. We want to be the champion of simplicity and this project is the cornerstone of going in that direction.

Gardner: And only a global integrator with many years of experience in many markets can attain that proper combination of simplicity and customization.

Agati: Yes.

Listen to the podcastFind it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Retailers get a makeover thanks to data-driven insights, edge computing, and revamped user experiences

Retailers get a makeover thanks to data-driven insights, edge computing, and revamped user experiences

The Connected Consumer for Retail offering takes the cross-channel experience and enhances it for the brick-and-mortar environment. 

How VMware, HPE, and Telefonica together bring managed cloud services to a global audience

The next BriefingsDirect Voice of the Customer optimized cloud design interview explores how a triumvirate of VMware, Hewlett Packard Enterprise (HPE), and Telefonica together bring managed cloud services to global audiences. 

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. 

Learn how Telefonica’s vision for delivering flexible cloud services capabilities to Latin American and European markets has proven so successful. Here to explain how they developed the right recipe for rapid delivery of agile Infrastructure-as-a-Services (IaaS) deployments is Joe Baguley, Vice President and CTO of VMware EMEA, and Antonio Oriol Barat, Head of Cloud IT Infrastructure Services at Telefonica. The interview is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What challenges are mobile and telecom operators now facing as they transition to becoming managed service providers?

Oriol Barat: The main challenge we face at this moment is to help customers navigate in a multi-cloud environment. We now have local platforms, some legacy, some virtualized platforms, hyperscale public cloud providers, and data communications networks. We want to help our customers manage these in a secure way.

Gardner: How have your cloud services evolved? How have partnerships allowed you to enter new markets to quickly provide services?

Oriol Barat

Oriol Barat

Oriol Barat: We have had to transition from being a hosting provider with data centers in many countries. Our movement to cloud was a natural evolution of those hosting services. As a telecommunications company (telco), our main business is shared networks, and the network is a shared asset between many customers. So when we thought about the hosting business, we similarly wanted to be able to have shared assets. VMware, with its virtualization technology, came as a natural partner to help us evolve our hosting services.

Gardner: Joe, it’s as if you designed the VMware stack with customers such as Telefonica in mind.

Baguley: You could say that, yes. The vision has always been for us at VMware to develop what was originally called the software-defined data center (SDDC). Now, with multi-cloud, for me, it’s an operating system (OS) for clouds.

Baguley

Baguley

We’re bringing together storage, networking and compute into one OS that can run both on-premises and off-premises. You could be running on-premises the same OS as someone like Telefonica is running for their public cloud -- meaning that you have a common operating environment, a common infrastructure.

So, yes, entirely, it was built as part of this vision that everyone runs this OS to build his or her clouds.

Gardner: To have a core, common infrastructure -- yet have the ability to adapt on top of that for localized markets -- is the best of all worlds.

Baguley: That’s entirely it. Like someone said, “If all of the clouds are running the same OS, what’s the differentiation?” Well, the differentiation is, you want to go with the biggest player in Latin America. You want to go with the player that has the best direct connections: The guys that can give you service levels maybe that the cloud providers can’t give. They can give you over-the-top services that other cloud providers don’t provide. They can give you an integrated solution for your business that includes the cloud -- and other enterprise services.

It’s about providing the tools for cloud providers to build differentiated powerful clouds for their customers.

Learn How HPE and VMware Solutions
Enable a New Style of Business

Gardner: Antonio, please, for those of our listeners and readers that aren’t that familiar with Telefonica, tell us about the breadth and depth of your company.

Oriol Barat: Telefonica is one of the top 10 global telco providers in the world. We are in 21 countries. We have fixed and mobile data services, and now we are in the process of digital transformation, where we have our focus in four areas: cloud, security, Internet of Things (IoT), and big data.

We used to think that our core business was in communications. Now we see what we call a new core of our business at the intersection of data communications, cloud, and security. We think this is really the foundation, the platform, of all the services that come on top.

Gardner: And, of course, we would all like to start with brand-new infrastructure when we enter markets. But as you know, we have to deal with what is already in place, too. When it came time for you to come up with the right combination of vendors, the right combination of technologies, to produce your new managed services capabilities, why did you choose HPE and VMware to create this full solution?

Sharing requires trust

Oriol Barat: VMware was our natural choice with its virtualization technologies to start providing shared IT platforms -- even before cloud, as a word, was invented. We launched “virtual hosting” in 2007. That was 10 years ago, and since then we have been evolving from this virtual hosting that had no portal but was a shared platform for customers, to the cloud services that we have today.

The hardware part is important; we have to have reliable and powerful technology. For us, it’s very important to provide trust to the customers. Trust, because what they are running in their data centers is similar to what we have in our data centers. Having VMware and HPE as partners provides this trust to the customers so that they will move the applications, and they know it will work fine.

Gardner: HPE is very fond of its Synergy platform, with composable infrastructure. How did that help you and VMware pull together the full solution for Telefonica, Joe?

Learn More End-to-End Solutions
From HPE and VMware

Baguley: We have been on this journey together, as Antonio mentioned, since 2007 -- since before cloud was a thing. We don’t have a test environment that’s as big as Telefonica’s production environment -- and neither does HPE. What we have been doing is working together -- and like any of these journeys, there have been missteps along the way. We stumbled occasionally, but it’s been good to work together as a partnership.

As we have grown, we have also both understood how the requirements of the market are changing and evolving. Ten years ago providing a combined cloud platform on a composable infrastructure was unheard of -- and people wouldn’t believe you could do it. But that’s what we have evolved together, with the work that we have done with companies such as Telefonica.

The need for something like HPE Synergy and the Gen10 stack -- where there are these very configurable stacks that you can put together -- has literally grown out of the work that we have done together, along with what we have done in our management stack, with the networking, compute, and storage.

Gardner: The combination of composable infrastructure and SDDC makes for a pretty strong tag team.

Baguley: Yes, definitely. It gives you that flexibility and the agility that a cloud provider needs to then meet the agility requirements of their customers, definitely.

Gardner: When it comes to bringing more end users into the clouds for your managed services providers, one of the important things is for end users to move into that cloud with as much ease as possible. Because VMware is a de facto standard in many markets with its vSphere Hypervisor, how does that help you, being a VMware stack, create that ease of joining these clouds?

Seamless migrations

Oriol Barat: Having the same technology in the customer data center and in our cloud makes things a lot easier. In the first place, in terms of confidence, the customer can be confident that it’s going to work well when it is in place. The other thing is that VMware is providing us with the tools that make these migrations easier.

Baguley: At VMworld 2017, we announced VMware Hybrid Cloud Extension (HCX), which is our hybrid cloud connector. It allows customers to locally install software that connects at a Layer 2 [network] level, as well as right back to vSphere 5.0 in clouds. Those clouds now are IBM and VMware cloud native, but we are extending it to other service providers like Telefonica in 2018.

The important thing here is by going down this road, people can take some of the fear out of going to the cloud.

So a customer can truly feel that their connecting and migrations will be seamless. Things like vSphere vMotion across that gap are going to be possible, too. I think the important thing here is by going down this road, people can take some of the fear out of going to the cloud, because some of the fear is about getting locked in: “I am going to make decisions that I will regret in two years by converting my virtual machines (VMs) to run on another platform.” Right here, there isn’t that fear, there is just more choice, and Telefonica is very much part of that story of choice.

Gardner: It sounds like you have made things attractive for managed service providers in many markets. For example, they gain ease of migration from enterprises into the provider’s cloud. In the case of Telefonica, users gain support, services and integration, knowing that the venerable vendors like VMware and HPE are behind the underlying services.

Do you have any examples where you have been able to bring this total solution to a typical managed service provider account? How has it worked out for them?

Everyone’s doing it

Oriol Barat: We have use cases in all the vertical industries. Because cloud is a horizontal technology, it’s the foundation of everything. I would say that all companies of all verticals are in this process of transformation.

We have a lot of customers in retail that are moving their platforms to cloud. We have had, for example, US companies coming to Europe and deploying their SAP systems on top of our platforms.

For example in Spain, we have a very strong tourism industry with a lot of hotel chains that are also using our cloud services for their reservation systems and for more of their IT.

We have use cases in healthcare, of companies moving their medical systems to our clouds.

We have use cases of software vendors that are growing software-as-a-service (SaaS) businesses and they need a flexible platform that can grow as their businesses grow.

A lot of people are using these platforms as disaster recovery (DR) for the platforms that they have on-premises.

I would say that all verticals are into this transformation.

Learn How HPE and VMware Solutions
Enable a New Style of Business

Gardner: It’s interesting, you mentioned being able to gain global reach from a specific home economy by putting data centers in place with a managed service provider model.

It’s also important for data sovereignty and compliance and General Data Protection Regulation (GDPR) and other issues for that to happen. It sounds like a very good market opportunity.

And that brings us to the last part of our discussion. What happens next? When we have proven technology in place, and we have cloud adoption, where would you like to be in 12 months?

Gaining the edge

Baguley: There has been a lot of talk at recent events, like HPE Discover, about intelligent edge developments. We are doing a lot at the edge, too. When you look at telcos, the edge is going to become something quite interesting.

What we are talking about is taking that same blend of storage, networking and compute, and running it on as small a device as possible. So think micro data centers, nano data centers. How far out can we push this cloud? How much can we distribute this cloud? How close to the point of need can we get our customers to execute their workloads, to do their artificial intelligence (AI), to do their data gathering, et cetera?

And working in partnership with someone who has a fantastic cloud and a fantastic network just means that a customer who is looking to build some kind of distributed edge-to-cloud core capability is something that Telefonica and VMware could probably do over the next 12 months. That could be really, really strong.

Gardner: Antonio?

Oriol Barat: In this transformation that all the enterprises are in, maybe we are in the 20 percent of execution range. So we still have 80 percent of the transformation ahead of us. The potential is huge.

Looking ahead with our services, for example, it’s very important that the network is also in transformation, leveraging the software-defined networking (SDN) technologies. These networks are going to be more flexible. We think that we are in a good position to put together cloud services with such network services -- with security, also with more software-defined capabilities, and create really flexible solutions for our customers.

Learn More End-to-End Solutions
From HPE and VMware

Baguley: One example that I would like to add is if you can imagine that maybe Real Madrid C.F. are playing at home next weekend ... It’s theoretical that Telefonica could have the bottom of those network base stations -- because of VMware Network Functions Virtualization (NFV), it’s no longer specific base station hardware, it’s x86 HPE servers in there. They can maybe turn around to a betting company and say, “Would you like to move your front-end web servers with running containers to run in the base station, in Real Madrid’s stadium, for the four hours in the afternoon of that match?” And suddenly they are the best performing website.

That’s the kind of out-there transformative ideas that are now possible due to new application infrastructures, new cloud infrastructures, edge, and technologies like the network all coming together. So those are the kind of things you are going to see from this kind of solutions approach going forward.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Infatuation leads to love—How container orchestration and federation enables multi-cloud competition

The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way.

And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud hosts.

This BriefingsDirect cloud services maturity discussion focuses on new ways to gain container orchestration, to better use serverless computing models, and employ inclusive management to keep the container love alive.

How modern storage provides hints on optimizing and best managing hybrid IT and multi-cloud resources

The next BriefingsDirect Voice of the Analyst interview examines the growing need for proper rationalizing of which apps, workloads, services and data should go where across a hybrid IT continuum.

Managing hybrid IT necessitates not only a choice between public cloud and private cloud, but a more granular approach to picking and choosing which assets go where based on performance, costs, compliance, and business agility.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Here to report on how to begin to better assess what IT variables should be managed and thoughtfully applied to any cloud model is Mark Peters, Practice Director and Senior Analyst at Enterprise Strategy Group (ESG). The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Now that cloud adoption is gaining steam, it may be time to step back and assess what works and what doesn’t. In past IT adoption patterns, we’ve seen a rapid embrace that sometimes ends with at least a temporary hangover. Sometimes, it’s complexity or runaway or unmanaged costs, or even usage patterns that can’t be controlled. Mark, is it too soon to begin assessing best practices in identifying ways to hedge against any ill effects from runaway adoption of cloud? 

Peters: The short answer, Dana, is no. It’s not that the IT world is that different. It’s just that we have more and different tools. And that is really what hybrid comes down to -- available tools.

Peters

Peters

It’s not that those tools themselves demand a new way of doing things. They offer the opportunity to continue to think about what you want. But if I have one repeated statement as we go through this, it will be that it’s not about focusing on the tools, it’s about focusing on what you’re trying to get done. You just happen to have more and different tools now.

Gardner: We hear sometimes that at as high as board of director levels, they are telling people to go cloud-first, or just dump IT all together. That strikes me as an overreaction. If we’re looking at tools and to what they do best, is cloud so good that we can actually just go cloud-first or cloud-only?

Cloudy cloud adoption

Peters: Assuming you’re speaking about management by objectives (MBO), doing cloud or cloud-only because that’s what someone with a C-level title saw on a Microsoft cloud ad on TV and decided that is right, well -- that clouds everything.

You do see increasingly different people outside of IT becoming involved in the decision. When I say outside of IT, I mean outside of the operational side of IT.

You get other functions involved in making demands. And because the cloud can be so easy to consume, you see people just running off and deploying some software-as-a-service (SaaS) or infrastructure-as-a-service (IaaS) model because it looked easy to do, and they didn’t want to wait for the internal IT to make the change.

All of the research we do shows that the world is hybrid for as far ahead as we can see.

Running away from internal IT and on-premises IT is not going to be a good idea for most organizations -- at least for a considerable chunk of their workloads. All of the research we do shows that the world is hybrid for as far ahead as we can see. 

Gardner: I certainly agree with that. If it’s all then about a mix of things, how do I determine the correct mix? And if it’s a correct mix between just a public cloud and private cloud, how do I then properly adjust to considerations about applications as opposed to data, as opposed to bringing in microservices and Application Programming Interfaces (APIs) when they’re the best fit?

How do we begin to rationalize all of this better? Because I think we’ve gotten to the point where we need to gain some maturity in terms of the consumption of hybrid IT.

Learn More About

Hybrid IT Management

Solutions From HPE

Peters: I often talk about what I call the assumption gap. And the assumption gap is just that moment where we move from one side where it’s okay to have lots of questions about something, in this case, in IT. And then on the other side of this gap or chasm, to use a well-worn phrase, is where it’s not okay to ask anything because you’ll see you don’t know what you’re talking about. And that assumption gap seems to happen imperceptibly and very fast at some moment.

So, what is hybrid IT? I think we fall into the trap of allowing ourselves to believe that having some on-premises workloads and applications and some off-premises workloads and applications is hybrid IT. I do not think it is. It’s using a couple of tools for different things.

It’s like having a Prius and a big diesel and/or gas F-150 pickup truck in your garage and saying, “I have two hybrid vehicles.” No, you have one of each, or some of each. Just because someone has put an application or a backup off into the cloud, “Oh, yeah. Well, I’m hybrid.” No, you’re not really.

The cloud approach

The cloud is an approach. It’s not a thing per se. It’s another way. As I said earlier, it’s another tool that you have in the IT arsenal. So how do you start figuring what goes where?

I don’t think there are simple answers, because it would be just as sensible a question to say, “Well, what should go on flash or what should go on disk, or what should go on tape, or what should go on paper?” My point being, such decisions are situational to individual companies, to the stage of that company’s life, and to the budgets they have. And they’re not only situational -- they’re also dynamic.

I want to give a couple of examples because I think they will stick with people. Number one is you take something like email, a pretty popular application; everyone runs email. In some organizations, that is the crucial application. They cannot run without it. Probably, what you and I do would fall into that category. But there are other businesses where it’s far less important than the factory running or the delivery vans getting out on time. So, they could have different applications that are way more important than email.

When instant messaging (IM) first came out, Yahoo IM text came out, to be precise. They used to do the maintenance between 9 am and 5 pm because it was just a tool to chat to your friends with at night. And now you have businesses that rely on that. So, clearly, the ability to instant message and text between us is now crucial. The stock exchange in Chicago runs on it. IM is a very important tool.

The answer is not that you or I have the ability to tell any given company, “Well, x application should go onsite and Y application should go offsite or into a cloud,” because it will vary between businesses and vary across time.

If something is or becomes mission-critical or high-risk, it is more likely that you’ll want the feeling of security, I’m picking my words very carefully, of having it … onsite.

You have to figure out what you're trying to get done before you figure out what you're going to do with it.

But the extent to which full-production apps are being moved to the cloud is growing every day. That’s what our research shows us. The quick answer is you have to figure out what you’re trying to get done before you figure out what you’re going to do it with. 

Gardner: Before we go into learning more about how organizations can better know themselves and therefore understand the right mix, let’s learn more about you, Mark. 

Tell us about yourself, your organization at ESG. How long have you been an IT industry analyst? 

Peters: I grew up in my working life in the UK and then in Europe, working on the vendor side of IT. I grew up in storage, and I haven’t really escaped it. These days I run ESG’s infrastructure practice. The integration and the interoperability between the various elements of infrastructure have become more important than the individual components. I stayed on the vendor side for many years working in the UK, then in Europe, and now in Colorado. I joined ESG 10 years ago.

Lessons learned from storage

Gardner: It’s interesting that you mentioned storage, and the example of whether it should be flash or spinning media, or tape. It seems to me that maybe we can learn from what we’ve seen happen in a hybrid environment within storage and extrapolate to how that pertains to a larger IT hybrid undertaking.

Is there something about the way we’ve had to adjust to different types of storage -- and do that intelligently with the goals of performance, cost, and the business objectives in mind? I’ll give you a chance to perhaps go along with my analogy or shoot it down. Can we learn from what’s happened in storage and apply that to a larger hybrid IT model?

Learn More About

Hybrid IT Management

Solutions From HPE

Peters: The quick answer to your question is, absolutely, we can. Again, the cloud is a different approach. It is a very beguiling and useful business model, but it’s not a panacea. I really don’t believe it ever will become a panacea.

Now, that doesn’t mean to say it won’t grow. It is growing. It’s huge. It’s significant. You look at the recent announcements from the big cloud providers. They are at tens of billions of dollars in run rates.

But to your point, it should be viewed as part of a hierarchy, or a tiering, of IT. I don’t want to suggest that cloud sits at the bottom of some hierarchy or tiering. That’s not my intent. But it is another choice of another tool.

Let’s be very, very clear about this. There isn’t “a” cloud out there. People talk about the cloud as if it exists as one thing. It does not. Part of the reason hybrid IT is so challenging is you’re not just choosing between on-prem and the cloud, you’re choosing between on-prem and many clouds -- and you might want to have a multi-cloud approach as well. We see that increasingly.

What we should be looking for are not bright, shiny objects -- but bright, shiny outcomes.

Those various clouds have various attributes; some are better than others in different things. It is exactly parallel to what you were talking about in terms of which server you use, what storage you use, what speed you use for your networking. It’s exactly parallel to the decisions you should make about which cloud and to what extent you deploy to which cloud. In other words, all the things you said at the beginning: cost, risk, requirements, and performance.

People get so distracted by bright, shiny objects. Like they are the answer to everything. What we should be looking for are not bright, shiny objects -- but bright, shiny outcomes. That’s all we should be looking for.

Focus on the outcome that you want, and then you figure out how to get it. You should not be sitting down IT managers and saying, “How do I get to 50 percent of my data in the cloud?” I don’t think that’s a sensible approach to business. 

Gardner: Lessons learned in how to best utilize a hybrid storage environment, rationalizing that, bringing in more intelligence, software-defined, making the network through hyper-convergence more of a consideration than an afterthought -- all these illustrate where we’re going on a larger scale, or at a higher abstraction.

Going back to the idea that each organization is particular -- their specific business goals, their specific legacy and history of IT use, their specific way of using applications and pursuing business processes and fulfilling their obligations. How do you know in your organization enough to then begin rationalizing the choices? How do you make business choices and IT choices in conjunction? Have we lost sufficient visibility, given that there are so many different tools for doing IT?

Get down to specifics

Peters: The answer is yes. If you can’t see it, you don’t know about it. So to some degree, we are assuming that we don’t know everything that’s going on. But I think anecdotally what you propose is absolutely true.

I’ve beaten home the point about starting with the outcomes, not the tools that you use to achieve those outcomes. But how do you know what you’ve even got -- because it’s become so easy to consume in different ways? A lot of people talk about shadow IT. You have this sprawl of a different way of doing things. And so, this leads to two requirements.

Number one is gaining visibility. It’s a challenge with shadow IT because you have to know what’s in the shadows. You can’t, by definition, see into that, so that’s a tough thing to do. Even once you find out what’s going on, the second step is how do you gain control? Control -- not for control’s sake -- only by knowing all the things you were trying to do and how you’re trying to do them across an organization. And only then can you hope to optimize them.

You can't manage what you can't measure. You also can't improve things that can't be managed or measured.

Again, it’s an old, old adage. You can’t manage what you can’t measure. You also can’t improve things that can’t be managed or measured. And so, number one, you have to find out what’s in the shadows, what it is you’re trying to do. And this is assuming that you know what you are aiming toward.

This is the next battleground for sophisticated IT use and for vendors. It’s not a battleground for the users. It’s a choice for users -- but a battleground for vendors. They must find a way to help their customers manage everything, to control everything, and then to optimize everything. Because just doing the first and finding out what you have -- and finding out that you’re in a mess -- doesn’t help you.

Learn More About

Hybrid IT Management

Solutions From HPE

Visibility is not the same as solving. The point is not just finding out what you have – but of actually being able to do something about it. The level of complexity, the range of applications that most people are running these days, the extremely high levels of expectations both in the speed and flexibility and performance, and so on, mean that you cannot, even with visibility, fix things by hand.

You and I grew up in the era where a lot of things were done on whiteboards and Excel spreadsheets. That doesn’t cut it anymore. We have to find a way to manage what is automated. Manual management just will not cut it -- even if you know everything that you’re doing wrong. 

Gardner: Yes, I agree 100 percent that the automation -- in order to deal with the scale of complexity, the requirements for speed, the fact that you’re going to be dealing with workloads and IT assets that are off of your premises -- means you’re going to be doing this programmatically. Therefore, you’re in a better position to use automation.

I’d like to go back again to storage. When I first took a briefing with Nimble Storage, which is now a part of Hewlett Packard Enterprise (HPE), I was really impressed with the degree to which they used intelligence to solve the economic and performance problems of hybrid storage.

Given the fact that we can apply more intelligence nowadays -- that the cost of gathering and harnessing data, the speed at which it can be analyzed, the degree to which that analysis can be shared -- it’s all very fortuitous that just as we need greater visibility and that we have bigger problems to solve across hybrid IT, we also have some very powerful analysis tools.

Mark, is what worked for hybrid storage intelligence able to work for a hybrid IT intelligence? To what degree should we expect more and more, dare I say, artificial intelligence (AI) and machine learning to be brought to bear on this hybrid IT management problem?

Intelligent automation a must

Peters: I think it is a very straightforward and good parallel. Storage has become increasingly sophisticated. I’ve been in and around the storage business now for more than three decades. The joke has always been, I remember when a megabyte was a lot, let alone a gigabyte, a terabyte, and an exabyte.

And I’d go for a whole day class, when I was on the sales side of the business, just to learn something like dual parsing or about cache. It was so exciting 30 years ago. And yet, these days, it’s a bit like cars. I mean, you and I used to use a choke, or we’d have to really go and check everything on the car before we went on 100-mile journey. Now, we press the button and it better work in any temperature and at any speed. Now, we just demand so much from cars.

To stretch that analogy, I’m mixing cars and storage -- and we’ll make it all come together with hybrid IT in that it’s better to do things in an automated fashion. There’s always one person in every crowd I talk to who still believes that a stick shift is more economic and faster than an automatic transmission. It might be true for one in 1,000 people, and they probably drive cars for a living. But for most people, 99 percent of the people, 99.9 percent of the time, an automatic transmission will both get you there faster and be more efficient in doing so. The same became true of storage.

We used to talk about how much storage someone could capacity-plan or manage. That’s just become old hat now because you don’t talk about it in those terms. Storage has moved to be -- how do we serve applications? How do we serve up the right place in the right time, get the data to the right person at the right time at the right price, and so on?

We don’t just choose what goes where or who gets what, we set the parameters -- and we then allow the machine to operate in an automated fashion. These days, increasingly, if you talk to 10 storage companies, 10 of them will talk to you about machine learning and AI because they know they’ve got to be in that in order to make that execution of change ever more efficient and ever faster. They’re just dealing with tremendous scale, and you could not do it even with simple automation that still involves humans.

It will be self-managing and self-optimizing. It will not be a “recommending tool,” it will be an “executing tool.”

We have used cars as a social analogy. We used storage as an IT analogy, and absolutely, that’s where hybrid IT is going. It will be self-managing and self-optimizing. Just to make it crystal clear, it will not be a “recommending tool,” it will be an “executing tool.” There is no time to wait for you and me to finish our coffee, think about it, and realize we have to do something, because then it’s too late. So, it’s not just about the knowledge and the visibility. It’s about the execution and the automated change. But, yes, I think your analogy is a very good one for how the IT world will change.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: How you execute, optimize and exploit intelligence capabilities can be how you better compete, even if other things are equal. If everyone is using AWS, and everyone is using the same services for storage, servers, and development, then how do you differentiate?

How you optimize the way in which you gain the visibility, know your own business, and apply the lessons of optimization, will become a deciding factor in your success, no matter what business you’re in. The tools that you pick for such visibility, execution, optimization and intelligence will be the new real differentiators among major businesses.

So, Mark, where do we look to find those tools? Are they yet in development? Do we know the ones we should expect? How will organizations know where to look for the next differentiating tier of technology when it comes to optimizing hybrid IT?

What’s in the mix?

Peters: We’re talking years ahead for us to be in the nirvana that you’re discussing.

I just want to push back slightly on what you said. This would only apply if everyone were using exactly the same tools and services from AWS, to use your example. The expectation, assuming we have a hybrid world, is they will have kept some applications on-premises, or they might be using some specialist, regional or vertical industry cloud. So, I think that’s another way for differentiation. It’s how to get the balance. So, that’s one important thing.

And then, back to what you were talking about, where are those tools? How do you make the right move?

We have to get from here to there. It’s all very well talking about the future. It doesn’t sound great and perfect, but you have to get there. We do quite a lot of research in ESG. I will throw just a couple of numbers, which I think help to explain how you might do this.

We already find that the multi-cloud deployment or option is a significant element within a hybrid IT world. So, asking people about this in the last few months, we found that about 75 percent of the respondents already have more than one cloud provider, and about 40 percent have three or more.

You’re getting diversity -- whether by default or design. It really doesn’t matter at this point. We hope it’s by design. But nonetheless, you’re certainly getting people using different cloud providers to take advantage of the specific capabilities of each.

This is a real mix. You can’t just plunk down some new magic piece of software, and everything is okay, because it might not work with what you already have -- the legacy systems, and the applications you already have. One of the other questions we need to ask is how does improved management embrace legacy systems?

Some 75 percent of our respondents want hybrid management to be from the infrastructure up, which means that it’s got to be based on managing their existing infrastructure, and then extending that management up or out into the cloud. That’s opposed to starting with some cloud management approach and then extending it back down to their infrastructure.

People want to enhance what they currently have so that it can embrace the cloud. It’s enhancing your choice of tiers so you can embrace change.

People want to enhance what they currently have so that it can embrace the cloud. It's enhancing your choice of tiers so you can embrace change. Rather than just deploying something and hoping that all of your current infrastructure -- not just your physical infrastructure but your applications, too -- can use that, we see a lot of people going to a multi-cloud, hybrid deployment model. That entirely makes sense. You're not just going to pick one cloud model and hope that it  will come backward and make everything else work. You start with what you have and you gradually embrace these alternative tools. 

Gardner: We’re creating quite a list of requirements for what we’d like to see develop in terms of this management, optimization, and automation capability that’s maybe two or three years out. Vendors like Microsoft are just now coming out with the ability to manage between their own hybrid infrastructures, their own cloud offerings like Azure Stack and their public cloud Azure.

Learn More About

Hybrid IT Management

Solutions From HPE

Where will we look for that breed of fully inclusive, fully intelligent tools that will allow us to get to where we want to be in a couple of years? I’ve heard of one from HPE, it’s called Project New Hybrid IT Stack. I’m thinking that HPE can’t be the only company. We can’t be the only analysts that are seeing what to me is a market opportunity that you could drive a truck through. This should be a big problem to solve.

Who’s driving?

Peters: There are many organizations, frankly, for which this would not be a good commercial decision, because they don’t play in multiple IT areas or they are not systems providers. That’s why HPE is interested, capable, and focused on doing this. 

Many vendor organizations are either focused on the cloud side of the business -- and there are some very big names -- or on the on-premises side of the business. Embracing both is something that is not as difficult for them to do, but really not top of their want-to-do list before they’re absolutely forced to.

From that perspective, the ones that we see doing this fall into two categories. There are the trendy new startups, and there are some of those around. The problem is, it’s really tough imagining that particularly large enterprises are going to risk [standardizing on them]. They probably even will start to try and write it themselves, which is possible – unlikely, but possible.

Where I think we will get the list for the other side is some of the other big organizations --- Oracle and IBM spring to mind in terms of being able to embrace both on-premises and off-premises.  But, at the end of the day, the commonality among those that we’ve mentioned is that they are systems companies. At the end of the day, they win by delivering the best overall solution and package to their clients, not individual components within it.

If you’re going to look for a successful hybrid IT deployment took, you probably have to look at a hybrid IT vendor.

And by individual components, I include cloud, on-premises, and applications. If you’re going to look for a successful hybrid IT deployment tool, you probably have to look at a hybrid IT vendor. That last part I think is self-descriptive. 

Gardner: Clearly, not a big group. We’re not going to be seeking suppliers for hybrid IT management from request for proposals (RFPs) from 50 or 60 different companies to find some solutions. 

Peters: Well, you won’t need to. Looking not that many years ahead, there will not be that many choices when it comes to full IT provisioning. 

Gardner: Mark, any thoughts about what IT organizations should be thinking about in terms of how to become proactive rather than reactive to the hybrid IT environment and the complexity, and to me the obvious need for better management going forward?

Management ends, not means

Peters: Gaining visibility into not just hybrid IT but the on-premise and the off-premise and how you manage these things. Those are all parts of the solution, or the answer. The real thing, and it’s absolutely crucial, is that you don’t start with those bright shiny objects. You don’t start with, “How can I deploy more cloud? How can I do hybrid IT?” Those are not good questions to ask. Good questions to ask are, “What do I need to do as an organization? How do I make my business more successful? How does anything in IT become a part of answering those questions?”

In other words, drum roll, it’s the thinking about ends, not means.

Gardner:  If our listeners and readers want to follow you and gain more of your excellent insight, how should they do that? 

Peters: The best way is to go to our website, www.esg-global.com. You can find not just me and all my contact details and materials but those of all my colleagues and the many areas we cover and study in this wonderful world of IT.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Globalization risks and data complexity demand new breed of hybrid IT management, says Wikibon’s Burris

The next BriefingsDirect Voice of the Analyst interview explores how globalization and distributed business ecosystems factor into hybrid cloud challenges and solutions.

Mounting complexity and a lack of multi-cloud services management maturity are forcing companies to seek new breeds of solutions so they can grow and thrive as digital enterprises. 

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Here to report on how international companies must factor localization, data sovereignty and other regional factors into any transition to sustainable hybrid IT is Peter Burris, Head of Research at Wikibon. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Peter, companies doing business or software development just in North America can have an American-centric view of things. They may lack an appreciation for the global aspects of cloud computing models. We want to explore that today. How much more complex is doing cloud -- especially hybrid cloud -- when you’re straddling global regions?

Burris: There are advantages and disadvantages to thinking cloud-first when you are thinking globalization first. The biggest advantage is that you are able to work in locations that don’t currently have the broad-based infrastructure that’s typically associated with a lot of traditional computing modes and models.

Burris

Burris

The downside of it is, at the end of the day, that the value in any computing system is not so much in the hardware per se; it’s in the data that’s the basis of how the system works. And because of the realities of working with data in a distributed way, globalization that is intended to more fully enfranchise data wherever it might be introduces a range of architectural implementation and legal complexities that can’t be discounted.

So, cloud and globalization can go together -- but it dramatically increases the need for smart and forward-thinking approaches to imagining, and then ultimately realizing, how those two go together, and what hybrid architecture is going to be required to make it work.

Gardner: If you need to then focus more on the data issues -- such as compliance, regulation, and data sovereignty -- how is that different from taking an applications-centric view of things?

Learn More About

Hybrid IT Management

Solutions From HPE

Burris: Most companies have historically taken an infrastructure-centric approach to things. They start by saying, “Where do I have infrastructure, where do I have servers and storage, do I have the capacity for this group of resources, and can I bring the applications up here?” And if the answer is yes, then you try to ultimately economize on those assets and build the application there.

That runs into problems when we start thinking about privacy, and in ensuring that local markets and local approaches to intellectual property management can be accommodated.

But the issue is more than just things like the General Data Protection Regulation (GDPR) in Europe, which is a series of regulations in the European Union (EU) that are intended to protect consumers from what the EU would regard as inappropriate leveraging and derivative use of their data.

It can be extremely expensive and sometimes impossible to even conceive of a global cloud strategy where the service is being consumed a few thousand miles away from where the data resides, if there is any dependency on time and how that works.

Ultimately, the globe is a big place. It’s 12,000 miles or so from point A to the farthest point B, and physics still matters. So, the first thing we have to worry about when we think about globalization is the cost of latency and the cost of bandwidth of moving data -- either small or very large -- across different regions. It can be extremely expensive and sometimes impossible to even conceive of a global cloud strategy where the service is being consumed a few thousand miles away from where the data resides, if there is any dependency on time and how that works.

So, the issues of privacy, the issues of local control of data are also very important, but the first and most important consideration for every business needs to be: Can I actually run the application where I want to, given the realities of latency? And number two: Can I run the application where I want to given the realities of bandwidth? This issue can completely overwhelm all other costs for data-rich, data-intensive applications over distance.

Gardner: As you are factoring your architecture, you need to take these local considerations into account, particularly when you are factoring costs. If you have to do some heavy lifting and make your bandwidth capable, it might be better to have a local closet-sized data center, because they are small and efficient these days, and you can stick with a private cloud or on-premises approach. At the least, you should factor the economic basis for comparison, with all these other variables you brought up.

Edge centers

Burris: That’s correct. In fact, we call them “edge centers.” For example, if the application features any familiarity with Internet of Things (IoT), then there will likely be some degree of latency considerations obtained, and the cost of doing a round trip message over a few thousand miles can be pretty significant when we consider the total cost of how fast computing can be done these days.

The first consideration is what are the impacts of latency for an application workload like IoT and is that intending to drive more automation into the system? Imagine, if you will, the businessperson who says, “I would like to enter into a new market expand my presence in the market in a cost-effective way. And to do that, I want to have the system be more fully automated as it serves that particular market or that particular group of customers. And perhaps it’s something that looks more process manufacturing-oriented or something along those lines that has IoT capabilities.”

The goal is to bring in the technology in a way that does not explode the administration, management, and labor cost associated with the implementation.

The goal, therefore, is to bring in the technology in a way that does not explode the administration, managements, and labor cost associated with the implementation.

The other way you are going to do that is if you do introduce a fair amount of automation and if, in fact, that automation is capable of operating within the time constraints required by those automated moments, as we call them.

If the round-trip cost of moving the data from a remote global location back to somewhere in North America -- independent of whether it’s legal or not – comes at a cost that exceeds the automation moment, then you just flat out can’t do it. Now, that is the most obvious and stringent consideration.

On top of that, these moments of automation necessitate significant amounts of data being generated and captured. We have done model studies where, for example, the cost of moving data out of a small wind farm can be 10 times as expensive. It can cost hundreds of thousands of dollars a year to do relatively simple and straightforward types of data analysis on the performance of that wind farm.

Process locally, act globally

It’s a lot better to have a local presence that can handle local processing requirements against models that are operating against locally derived data or locally generated data, and let that work be automated with only periodic visibility into how the overall system is working closely. And that’s where a lot of this kind of on-premise hybrid cloud thinking is starting.

It gets more complex than in a relatively simple environment like a wind farm, but nonetheless, the amount of processing power that’s necessary to run some of those kinds of models can get pretty significant. We are going to see a lot more of this kind of analytic work be pushed directly down to the devices themselves. So, the Sense, Infer, and Act loop will occur very, very closely in some of those devices. We will try to keep as much of that data as we can local.

But there are always going to be circumstances when we have to generate visibility across devices, we have to do local training of the data, we have to test the data or the models that we are developing locally, and all those things start to argue for sometimes much larger classes of systems.

Gardner: It’s a fascinating subject as to what to push down the edge given that the storage cost and processing costs are down and footprint is down and what to then use the public cloud environment or Infrastructure-as-a-Service (IaaS) environment for.

But before we go into any further, Peter, tell us about yourself, and your organization, Wikibon.

Learn More About

Hybrid IT Management

Solutions From HPE

Burris: Wikibon is a research firm that’s affiliated with something known as TheCUBE. TheCUBE conducts about 5,000 interviews per year with thought leaders at various locations, often on-site at large conferences.

I came to Wikibon from Forrester Research, and before that I had been a part of META Group, which was purchased by Gartner. I have a longstanding history in this business. I have also worked with IT organizations, and also worked inside technology marketing in a couple of different places. So, I have been around.

Wikibon's objective is to help mid-sized to large enterprises traverse the challenges of digital transformation. Our opinion is that digital transformation actually does mean something. It's not just a set of bromides about multichannel or omnichannel or being “uberized,” or anything along those lines.

The difference between a business and a digital business is the degree to which data is used as an asset. 

The difference between a business and a digital business is the degree to which data is used as an asset. In a digital business, data absolutely is used as a differentiating asset for creating and keeping customers.

We look at the challenges of what does it mean to use data differently, how to capture it differently, which is a lot of what IoT is about. We look at how to turn it into business value, which is a lot of what big data and these advanced analytics like artificial intelligence (AI), machine learning and deep learning are all about. And then finally, how to create the next generation of applications that actually act on behalf of the brand with a fair degree of autonomy, which is what we call “systems of agency” are all about. And then ultimately how cloud and historical infrastructure are going to come together and be optimized to support all those requirements.

We are looking at digital business transformation as a relatively holistic thing that includes IT leadership, business leadership, and, crucially, new classes of partnerships to ensure that the services that are required are appropriately contracted for and can be sustained as it becomes an increasing feature of any company’s value proposition. That's what we do.

Global risk and reward

Gardner: We have talked about the tension between public and private cloud in a global environment through speeds and feeds, and technology. I would like to elevate it to the issues of culture, politics and perception. Because in recent years, with offshoring and looking at intellectual property concerns in other countries, the fact is that all the major hyperscale cloud providers are US-based corporations. There is a wide ecosystem of other second tier providers, but certainly in the top tier.

Is that something that should concern people when it comes to risk to companies that are based outside of the US? What’s the level of risk when it comes to putting all your eggs in the basket of a company that's US-based?

Burris: There are two perspectives on that, but let me add one more just check on this. Alibaba clearly is one of the top-tier, and they are not based in the US and that may be one of the advantages that they have. So, I think we are starting to see some new hyperscalers emerge, and we will see whether or not one will emerge in Europe.

I had gotten into a significant argument with a group of people not too long ago on this, and I tend to think that the political environment almost guarantees that we will get some kind of scale in Europe for a major cloud provider.

If you are a US company, are you concerned about how intellectual property is treated elsewhere? Similarly, if you are a non-US company, are you concerned that the US companies are typically operating under US law, which increasingly is demanding that some of these hyperscale firms be relatively liberal, shall we say, in how they share their data with the government? This is going to be one of the key issues that influence choices of technology over the course of the next few years.

Cross-border compute concerns

We think there are three fundamental concerns that every firm is going to have to worry about.

I mentioned one, the physics of cloud computing. That includes latency and bandwidth. One computer science professor told me years ago, “Latency is the domain of God, and bandwidth is the domain of man.” We may see bandwidth costs come down over the next few years, but let's just lump those two things together because they are physical realities.

The second one, as we talked about, is the idea of privacy and the legal implications.

The third one is intellectual property control and concerns, and this is going to be an area that faces enormous change over the course of the next few years. It’s in conjunction with legal questions on contracting and business practices.

Learn More About

Hybrid IT Management

Solutions From HPE

From our perspective, a US firm that wants to operate in a location that features a more relaxed regime for intellectual property absolutely needs to be concerned. And the reason why they need to be concerned is data is unlike any other asset that businesses work with. Virtually every asset follows the laws of scarcity. 

Money, you can put it here or you can put it there. Time, people, you can put here or you can put there. That machine can be dedicated to this kind of wire or that kind of wire.

Data is weird, because data can be copied, data can be shared. The value of data appreciates as we us it more successfully, as we integrate it and share it across multiple applications.

Scarcity is a dominant feature of how we think about generating returns on assets. Data is weird, though, because data can be copied, data can be shared. Indeed, the value of data appreciates as we use it more successfully, as we use it more completely, as we integrate it and share it across multiple applications.

And that is where the concern is, because if I have data in one location, two things could possibly happen. One is if it gets copied and stolen, and there are a lot of implications to that. And two, if there are rules and regulations in place that restrict how I can combine that data with other sources of data. That means if, for example, my customer data in Germany may not appreciate, or may not be able to generate the same types of returns as my customer data in the US.

Now, that sets aside any moral question of whether or not Germany or the US has better privacy laws and protects the consumers better. But if you are basing investments on how you can use data in the US, and presuming a similar type of approach in most other places, you are absolutely right. On the one hand, you probably aren’t going to be able to generate the total value of your data because of restrictions on its use; and number two, you have to be very careful about concerns related to data leakage and the appropriation of your data by unintended third parties.

Gardner: There is the concern about the appropriation of the data by governments, including the United States with the PATRIOT Act. And there are ways in which governments can access hyperscalers’ infrastructure, assets, and data under certain circumstances. I suppose there’s a whole other topic there, but at least we should recognize that there's some added risk when it comes to governments and their access to this data.

Burris: It’s a double-edged sword that US companies may be worried about hyperscalers elsewhere, but companies that aren't necessarily located in the US may be concerned about using those hyperscalers because of the relationship between those hyperscalers and the US government.

These concerns have been suppressed in the grand regime of decision-making in a lot of businesses, but that doesn’t mean that it’s not a low-intensity concern that could bubble up, and perhaps, it’s one of the reasons why Alibaba is growing so fast right now.

All hyperscalers are going to have to be able to demonstrate that they can protect their clients, their customers’ data, utilizing the regime that is in place wherever the business is being operated.  

All hyperscalers are going to have to be able to demonstrate that they can, in fact, protect their clients, their customers’ data, utilizing the regime that is in place wherever the business is being operated. [The rationale] for basing your business in these types of services is really immature. We have made enormous progress, but there’s a long way yet to go here, and that’s something that businesses must factor as they make decisions about how they want to incorporate a cloud strategy.

Gardner: It’s difficult enough given the variables and complexity of deciding a hybrid cloud strategy when you’re only factoring the technical issues. But, of course, now there are legal issues around data sovereignty, privacy, and intellectual property concerns. It’s complex, and it’s something that an IT organization, on its own, cannot juggle. This is something that cuts across all the different parts of a global enterprise -- their legal, marketing, security, risk avoidance and governance units -- right up to the board of directors. It’s not just a willy-nilly decision to get out a credit card and start doing cloud computing on any sustainable basis.

Burris: Well, you’re right, and too frequently it is a willy-nilly decision where a developer or a business person says, “Oh, no sweat, I am just going to grab some resources and start building something in the cloud.”

I can remember back in the mid-1990s when I would go into large media companies to meet with IT people to talk about the web, and what it would mean technically to build applications on the web. I would encounter 30 people, and five of them would be in IT and 25 of them would be in legal. They were very concerned about what it meant to put intellectual property in a digital format up on the web, because of how it could be misappropriated or how it could lose value. So, that class of concern -- or that type of concern -- is minuscule relative to the broader questions of cloud computing, of the grabbing of your data and holding it a hostage, for example.

There are a lot of considerations that are not within the traditional purview of IT, but CIOs need to start thinking about them on their own and in conjunction with their peers within the business.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: We’ve certainly underlined a lot of the challenges. What about solutions? What can organizations do to prevent going too far down an alley that’s dark and misunderstood, and therefore have a difficult time adjusting?

How do we better rationalize for cloud computing decisions? Do we need better management? Do we need better visibility into what our organizations are doing or not doing? How do we architect with foresight into the larger picture, the strategic situation? What do we need to start thinking about in terms of the solutions side of some of these issues?

Cloud to business, not business to cloud

Burris: That’s a huge question, Dana. I can go on for the next six hours, but let’s start here. The first thing we tell senior executives is, don’t think about bringing your business to the cloud -- think about bringing the cloud to your business. That’s the most important thing. A lot of companies start by saying, “Oh, I want to get rid of IT, I want to move my business to the cloud.”

It’s like many of the mistakes that were made in the 1990s regarding outsourcing. When I would go back and do research on outsourcing, I discovered that a lot of the outsourcing was not driven by business needs, but driven by executive compensation schemes, literally. So, where executives were told that they would be paid on the basis of return in net assets, there was a high likelihood that the business was going to go to outsourcers to get rid of the assets, so the executives could pay themselves an enormous amount of money.

Think about how to bring the cloud to your business, and to better manage your data assets, and don't automatically default to the notion that you're going to take your business to the cloud.

The same type of thinking pertains here -- the goal is not to get rid of IT assets since those assets, generally speaking, are becoming less important features of the overall proposition of digital businesses.

Think instead about how to bring the cloud to your business, and to better manage your data assets, and don’t automatically default to the notion that you’re going to take your business to the cloud.

Every decision-maker needs to ask himself or herself, “How can I get the cloud experience wherever the data demands?” The goal of the cloud experience, which is a very, very powerful concept, ultimately needs to be able to get access to a very rich set of services associated with automation. We need visible pricing and metering, self-sufficiency, and self-service. These are all the experiences that we want out of cloud.

What we want, however, are those experiences wherever the data requires it, and that’s what’s driving hybrid cloud. We call it “true private cloud,” and the idea is of having a technology stack that provides a consistent cloud experience wherever the data has to run -- whether that’s because of IoT or because of privacy issues or because of intellectual property concerns. True private cloud is our concept for describing how the cloud experience is going to be enacted where the data requires, so that you don’t just have to move the data to get to the cloud experience.

Weaving IT all together

The third thing to note here is that ultimately this is going to lead to the most complex integration regime we’ve ever envisioned for IT. By that I mean, we are going to have applications that span Software-as-a-Service (SaaS), public cloud, IaaS services, true private cloud, legacy applications, and many other types of services that we haven’t even conceived of right now.

And understanding how to weave all of those different data sources, and all those different service sources, into coherent application framework that runs reliably and providers a continuous ongoing service to the business is essential. It must involve a degree of distribution that completely breaks most models. We’re thinking about infrastructure, architecture, but also, data management, system management, security management, and as I said earlier, all the way out to even contractual management, and vendor management.

The arrangement of resources for the classes of applications that we are going to be building in the future are going to require deep, deep, deep thinking.

That leads to the fourth thing, and that is defining the metric we’re going to use increasingly from a cost standpoint. And it is time. As the costs of computing and bandwidth continue to drop -- and they will continue to drop -- it means ultimately that the fundamental cost determinant will be, How long does it take an application to complete? How long does it take this transaction to complete? And that’s not so much a throughput question, as it is a question of, “I have all these multiple sources that each on their own are contributing some degree of time to how this piece of work finishes, and can I do that piece of work in less time if I bring some of the work, for example, in-house, and run it close to the event?”

This relationship between increasing distribution of work, increasing distribution of data, and the role that time is going to play when we think about the event that we need to manage is going to become a significant architectural concern.

The fifth issue, that really places an enormous strain on IT is how we think about backing up and restoring data. Backup/restore has been an afterthought for most of the history of the computing industry.

As we start to build these more complex applications that have more complex data sources and more complex services -- and as these applications increasingly are the basis for the business and the end-value that we’re creating -- we are not thinking about backing up devices or infrastructure or even subsystems.

We are thinking about what does it mean to backup, even more importantly, applications and even businesses. The issue becomes associated more with restoring. How do we restore applications in business across this incredibly complex arrangement of services and data locations and sources?

There's a new data regime that's emerging to support application development. How's that going to work -- the role the data scientists and analytics are going to play in working with application developers?

I listed five areas that are going to be very important. We haven’t even talked about the new regime that’s emerging to support application development and how that’s going to work. The role the data scientists and analytics are going to play in working with application developers – again, we could go on and on and on. There is a wide array of considerations, but I think all of them are going to come back to the five that I mentioned.

Gardner: That’s an excellent overview. One of the common themes that I keep hearing from you, Peter, is that there is a great unknown about the degree of complexity, the degree of risk, and a lack of maturity. We really are venturing into unknown territory in creating applications that draw on these resources, assets and data from these different clouds and deployment models.

When you have that degree of unknowns, that lack of maturity, there is a huge opportunity for a party to come in to bring in new types of management with maturity and with visibility. Who are some of the players that might fill that role? One that I am familiar with, and I think I have seen them on theCUBE is Hewlett Packard Enterprise (HPE) with what they call Project New Hybrid IT Stack. We still don’t know too much about it. I have also talked about Cloud28+, which is an ecosystem of global cloud environments that helps mitigate some of the concerns about a single hyperscaler or a handful of hyperscale providers. What’s the opportunity for a business to come in to this problem set and start to solve it? What do you think from what you’ve heard so far about Project New Hybrid IT Stack at HPE?

Key cloud players

Burris: That’s a great question, and I’m going to answer it in three parts. Part number one is, if we look back historically at the emergence of TCP/IP, TCP/IP killed the mini-computers. A lot of people like to claim it was microprocessors, and there is an element of truth to that, but many computer companies had their own proprietary networks. When companies wanted to put those networks together to build more distributed applications, the mini-computer companies said, “Yeah, just bridge our network.” That was an unsatisfyingly bad answer for the users. So along came Cisco, TCP/IP, and they flattened out all those mini-computer networks, and in the process flattened the mini-computer companies.

HPE was one of the few survivors because they embraced TCP/IP much earlier than anybody else.

We are going to need the infrastructure itself to use deep learning, machine learning, and advanced technology for determining how the infrastructure is managed, optimized, and economized.

The second thing is that to build the next generations of more complex applications -- and especially applications that involve capabilities like deep learning or machine learning with increased automation -- we are going to need the infrastructure itself to use deep learning, machine learning, and advanced technology for determining how the infrastructure is managed, optimized, and economized. That is an absolute requirement. We are not going to make progress by adding new levels of complexity and building increasingly rich applications if we don’t take full advantage of the technologies that we want to use in the applications -- inside how we run our infrastructures and run our subsystems, and do all the things we need to do from a hybrid cloud standpoint.

Ultimately, the companies are going to step up and start to flatten out some of these cloud options that are emerging. We will need companies that have significant experience with infrastructure, that really understand the problem. They need a lot of experience with a lot of different environments, not just one operating system or one cloud platform. They will need a lot of experience with these advanced applications, and have both the brainpower and the inclination to appropriately invest in those capabilities so they can build the type of platforms that we are talking about. There are not a lot of companies out there that can.

There are few out there, and certainly HPE with its New Stack initiative is one of them, and we at Wikibon are especially excited about it. It’s new, it’s immature, but HPE has a lot of piece parts that will be required to make a go of this technology. It’s going to be one of the most exciting areas of invention over the next few years. We really look forward to working with our user clients to introduce some of these technologies and innovate with them. It’s crucial to solve the next generation of problems that the world faces; we can’t move forward without some of these new classes of hybrid technologies that weave together fabrics that are capable of running any number of different application forms.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

How mounting complexity, multi-cloud sprawl, and need for maturity hinder hybrid IT’s ability to grow and thrive

The next BriefingsDirect Voice of the Analyst interview examines how the economics and risk management elements of hybrid IT factor into effective cloud adoption and choice.

We’ll now explore how mounting complexity and a lack of multi-cloud services management maturity must be solved in order to have businesses grow and thrive as digital enterprises.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or  download a copy

Tim Crawford, CIO Strategic Advisor at AVOA in Los Angeles joins us to report on how companies are managing an increasingly complex transition to sustainable hybrid IT. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Tim, there’s a lot of evidence that businesses are adopting cloud models at a rapid pace. But there is also lingering concern about how to best determine the right mix of cloud, what kinds of cloud, and how to mitigate the risks and manage change over time.

As someone who regularly advises chief information officers (CIOs), who or which group is surfacing that is tasked with managing this cloud adoption and its complexity within these businesses? Who will be managing this dynamic complexity?

Crawford

Crawford

Crawford: For the short-term, I would say everyone. It’s not as simple as it has been in the past where we look to the IT organization as the end-all, be-all for all things technology. As we begin talking about different consumption models -- and cloud is a relatively new consumption model for technology -- it changes the dynamics of it. It’s the combination of changing that consumption model -- but then there’s another factor that comes into this. There is also the consumerization of technology, right? We are “democratizing” technology to the point where everyone can use it, and therefore everyone does use it, and they begin to get more comfortable with technology.

It’s not as it used to be, where we would say, “Okay, I'm not sure how to turn on a computer.” Now, businesses may be more familiar outside of the IT organization with certain technologies. Bringing that full-circle, the answer is that we have to look beyond just IT. Cloud is something that is consumed by IT organizations. It’s consumed by different lines of business, too. It’s consumed even by end-consumers of the products and services. I would say it’s all of the above.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: The good news is that more and more people are able to -- on their own – innovate, to acquire cloud services, and they can factor those into how they obtain business objectives. But do you expect that we will get to the point where that becomes disjointed? Will the goodness of innovation become something that spins out of control, or becomes a negative over time?

Crawford: To some degree, we’ve already hit that inflection-point where technology is being used in inappropriate ways. A great example of this -- and it’s something that just kind of raises the hair on the back of my neck -- is when I hear that boards of directors of publicly traded companies are giving mandates to their organization to “Go cloud.”

The board should be very business-focused and instead they're dictating specific technology -- whether it’s the right technology or not. That’s really what this comes down to. 

What’s the right use of cloud – in all forms, public, private, software as a service (SaaS). What’s the right combination to use for any given application? 

Another example is folks that try and go all-in on cloud but aren’t necessarily thinking about what’s the right use of cloud – in all forms, public, private, software as a service (SaaS). What’s the right combination to use for any given application? It’s not a one-size-fits-all answer.

We in the enterprise IT space haven't really done enough work to truly understand how best to leverage these new sets of tools. We need to both wrap our head around it but also get in the right frame of mind and thought process around how to take advantage of them in the best way possible.

Another example that I've worked through from an economic standpoint is if you were to do the math, which I have done a number of times with clients -- you do the math to figure out what’s the comparative between the IT you're doing on-premises in your corporate data center with any given application -- versus doing it in a public cloud.

Think differently

If you do the math, taking an application from a corporate data center and moving it to public cloud will cost you four times as much money. Four times as much money to go to cloud! Yet we hear the cloud is a lot cheaper. Why is that?

When you begin to tease apart the pieces, the bottom line is that we get that four-times-as-much number because we’re using the same traditional mindset where we think about cloud as a solution, the delivery mechanism, and a tool. The reality is it’s a different delivery mechanism, and it’s a different kind of tool.

When used appropriately, in some cases, yes, it can be less expensive. The challenge is you have to get yourself out of your traditional thinking and think differently about the how and why of leveraging cloud. And when you do that, then things begin to fall into place and make a lot more sense both organizationally -- from a process standpoint, and from a delivery standpoint -- and also economically.

Gardner: That “appropriate use of cloud” is the key. Of course, that could be a moving target. What’s appropriate today might not be appropriate in a month or a quarter. But before we delve into more … Tim, tell us about your organization. What’s a typical day in the life for Tim Crawford like?

It’s not tech for tech’s sake, rather it’s best to say, “How do we use technology for business advantage?” 

Crawford: I love that question. AVOA stands for that position in which we sit between business and technology. If you think about the intersection of business and technology, of using technology for business advantage, that’s the space we spend our time thinking about. We think about how organizations across a myriad of different industries can leverage technology in a meaningful way. It’s not tech for tech’s sake, and I want to be really clear about that. But rather it’s best to say, “How do we use technology for business advantage?”

We spend a lot of time with large enterprises across the globe working through some of these challenges. It could be as simple as changing traditional mindsets to transformational, or it could be talking about tactical objectives. Most times, though, it’s strategic in nature. We spend quite a bit of time thinking about how to solve these big problems and to change the way that companies function, how they operate.

A day in a life of me could range from, if I'm lucky, being able to stay in my office and be on the phone with clients, working with folks and thinking through some of these big problems. But I do spend a lot of time on the road, on an airplane, getting out in the field, meeting with clients, understanding what people really are contending with.

I spent well over 20 years of my career before I began doing this within the IT organization, inside leading IT organizations. It’s incredibly important for me to stay relevant by being out with these folks and understanding what they're challenged by -- and then, of course, helping them through their challenges.

Any given day is something new and I love that diversity. I love hearing different ideas. I love hearing new ideas. I love people who challenge the way I think.

It’s an opportunity for me personally to learn and to grow, and I wish more of us would do that. So it does vary quite a bit, but I'm grateful that the opportunities that I've had to work with have been just fabulous, and the same goes for the people.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: I've always enjoyed my conversations with you, Tim, because you always do challenge me to think a little bit differently -- and I find that very valuable.

Okay, let’s get back to this idea of “appropriate use of cloud.” I wonder if we should also expand that to be “appropriate use of IT and cloud.” So including that notion of hybrid IT, which includes cloud and hybrid cloud and even multi-cloud. And let’s not forget about the legacy IT services.

How do we know if we’re appropriately using cloud in the context of hybrid IT? Are there measurements? Is there a methodology that’s been established yet? Or are we still in the opening innings of how to even measure and gain visibility into how we consume and use cloud in the context of all IT -- to therefore know if we’re doing it appropriately?

The monkey-bread model

Crawford: The first thing we have to do is take a step back to provide the context of that visibility -- or a compass, as I usually refer to these things. You need to provide a compass to help understand where we need to go.

If we look back for a minute, and look at how IT operates -- traditionally, we did everything. We had our own data center, we built all the applications, we ran our own servers, our own storage, we had the network – we did it all. We did it all, because we had to. We, in IT, didn’t really have a reasonable alternative to running our own email systems, our own file storage systems. Those days have changed.

Fast-forward to today. Now, you have to pick apart the pieces and ask, “What is strategic?” When I say, “strategic,” it doesn’t mean critically important. Electrical power is an example. Is that strategic to your business? No. Is it important? Heck, yeah, because without it, we don’t run. But it’s not something where we’re going out and building power plants next to our office buildings just so we can have power, right? We rely on others to do it because there are mature infrastructures, mature solutions for that. The same is true with IT. We have now crossed the point where there are mature solutions at an enterprise level that we can capitalize on, or that we can leverage.

Part of the methodology I use is the monkey bread example. If you're not familiar with monkey bread, it’s kind of a crazy thing where you have these balls of dough. When you bake it, the balls of dough congeal together and meld. What you're essentially doing is using that as representative of, or an analogue to, your IT portfolio of services and applications. You have to pick apart the pieces of those balls of dough and figure out, “Okay. Well, these systems that support email, those could go off to Google or Microsoft 365. And these applications, well, they could go off to this SaaS-based offering. And these other applications, well, they could go off to this platform.”

And then, what you're left with is this really squishy -- but much smaller -- footprint that you have to contend with. That problem in the center is much more specific -- and arguably that’s what differentiates your company from your competition.

Whether you run email [on-premises] or in a cloud, that’s not differentiating to a business. It’s incredibly important, but not differentiating. When you get to that gooey center, that’s the core piece, that’s where you put your resources in, that’s what you focus on.

This example helps you work through determining what’s critical, and -- more importantly -- what’s strategic and differentiating to my business, and what is not. And when you start to pick apart these pieces, it actually is incredibly liberating. At first, it’s a little scary, but once you get the hang of it, you realize how liberating it is. It brings focus to the things that are most critical for your business.

Identify opportunities where cloud makes sense – and where it doesn’t. It definitely is one of the most significant opportunities for most IT organizations today. 

That’s what we have to do more of. When we do that, we identify opportunities where cloud makes sense -- and where it doesn’t. Cloud is not the end-all, be-all for everything. It definitely is one of the most significant opportunities for most IT organizations today.

So it’s important: Understand what is appropriate, how you leverage the right solutions for the right application or service.

Gardner: IT in many organizations is still responsible for everything around technology. And that now includes higher-level strategic undertakings of how all this technology and the businesses come together. It includes how we help our businesses transform to be more agile in new and competitive environments.

So is IT itself going to rise to this challenge, of not doing everything, but instead becoming more of that strategic broker between in IT functions and business outcomes? Or will those decisions get ceded over to another group? Maybe enterprise architects, business architects, business process management (BPM) analysts? Do you think it’s important for IT to both stay in and elevate to the bigger game?

Changing IT roles and responsibilities

Crawford: It’s a great question. For every organization, the answer is going to be different. IT needs to take on a very different role and sensibility. IT needs to look different than how it looks today. Instead of being a technology-centric organization, IT really needs to be a business organization that leverages technology.

The CIO of today and moving forward is not the tech-centric CIO. There are traditional CIOs and transformational CIOs. The transformational CIO is the business leader first who happens to have responsibility for technology. IT, as a whole, needs to follow the same vein.

For example, if you were to go into a traditional IT organization today and ask them what’s the nature of their business, ask them to tell you what they do as an administrator, as a developer, to help you understand how that’s going to impact the company and the business -- unfortunately, most of them would have a really hard time doing that.

The IT organization of the future, will articulate clearly the work they’re doing and how that impacts their customers and their business, and how making different changes and tweaks will impact their business. They will have an intimate knowledge of how their business functions much more than how the technology functions. That’s a very different mindset, that’s the place we have to get to for IT on the whole. IT can’t just be this technology organization that sits in a room, separate from the rest of the company. It has to be integral, absolutely integral to the business.

Gardner: If we recognize that cloud is here to stay -- but that the consumption of it needs to be appropriate, and if we’re at some sort of inflection point, we’re also at the risk of consuming cloud inappropriately. If IT and leadership within IT are elevating themselves, and upping their game to be that strategic player, isn’t IT then in the best position to be managing cloud, hybrid cloud and hybrid IT? What tools and what mechanisms will they need in order to make that possible?

Learn More About

Hybrid IT Management

Solutions From HPE

Crawford: Theoretically, the answer is that they really need to get to that level. We’re not there, on the whole, yet. Many organizations are not prepared to adopt cloud. I don’t want to be a naysayer of IT, but I think in terms of where IT needs to go on the whole, on the sum, we need to move into that position where we can manage the different types of delivery mechanisms -- whether it’s public cloud, SaaS, private cloud, appropriate data centers -- those are all just different levers we can pull depending on the business type.

Businesses change, customers change, demand changes and revenue comes from different places. IT needs to be able to shift gears just as fast and in anticipation of where the company goes. 

As you mentioned earlier, businesses change, customers change, demand changes, and revenue comes from different places. In IT, we need to be able to shift gears just as fast and be prepared to shift those gears in anticipation of where the company goes. That’s a very different mindset. It’s a very different way of thinking, but it also means we have to think of clever ways to bring these tools together so that we’re well-prepared to leverage things like cloud.

The challenge is many folks are still in that classic mindset, which unfortunately holds back companies from being able to take advantage of some of these new technologies and methodologies. But getting there is key.

Gardner: Some boards of directors, as you mentioned, are saying, “Go cloud,” or be cloud-first. People are taking them at that, and so we are facing a sort of cloud sprawl. People are doing micro services and as developers spinning up cloud instances and object storage instances. Sometimes they’ll keep those running into production; sometimes they’ll shut them down. We have line of business (LOB) managers going out and acquiring services like SaaS applications, running them for a while, perhaps making them a part of their standard operating procedures. But, in many organizations, one hand doesn’t really know what the other is doing.

Are we at the inflection point now where it’s simply a matter of measurement? Would we stifle innovation if we required people to at least mention what it is that they’re doing with their credit cards or petty cash when it comes to IT and cloud services? How important is it to understand what’s going on in your organization so that you can begin a journey toward better management of this overall hybrid IT?

Why, oh why, oh why, cloud?

Crawford: It depends on how you approach it. If you’re doing it from an IT command-and-control perspective, where you want to control everything in cloud -- full stop, that’s failure right out of the gate. But if you’re doing it from a position of -- I’m trying to use it as an opportunity to understand why are these folks leveraging cloud, and why are they not coming to IT, and how can I as CIO be better positioned to be able to support them, then great! Go forth and conquer.

The reality is that different parts of the organization are consuming cloud-based services today. I think there’s an opportunity to bring those together where appropriate. But at the end of the day, you have to ask yourself a very important question. It’s a very simple question, but you have to ask it, and it has to do with each of the different ways that you might leverage cloud. Even when you go beyond cloud and talk about just traditional corporate data assets -- especially as you start thinking about Internet of things (IoT) and start thinking about edge computing -- you know that public cloud becomes problematic for some of those things.

The important question you have to ask yourself is, “Why?” A very simple question, but it can have a really complicated answer. Why are you using public cloud? Why are you using three different forms of public cloud? Why are you using private cloud and public cloud together?

Once you begin to ask yourself those questions, and you keep asking yourself that question … it’s like that old adage. Ask yourself why three times and you kind of get to the core as the true reason why. You’ll bring greater clarity as to the reasons, and typically the business reasons, of why you’re actually going down that path. When you start to understand that, it brings clarity to what decisions are smart decisions -- and what decisions maybe you might want to think about doing differently.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: Of course, you may begin doing something with cloud for a very good reason. It could be a business reason, a technology reason. You’ll recognize it, you gain value from it -- but then over time you have to step back with maturity and ask, “Am I consuming this in such a way that I’m getting it at the best price-point?” You mentioned a little earlier that sometimes going to public cloud could be four times as expensive.

So even though you may have an organization where you want to foster innovation, you want people to spread their wings, try out proofs of concept, be agile and democratic in terms of their ability to use myriad IT services, at what point do you say, “Okay, we’re doing the business, but we’re not running it like a good business should be run.” How are the economic factors driven into cloud decision-making after you’ve done it for a period of time?

Cloud’s good, but is it good for business?

Crawford: That’s a tough question. You have to look at the services that you’re leveraging and how that ties into business outcomes. If you tie it back to a business outcome, it will provide greater clarity on the sourcing decisions you should make.

For example, if you’re spending $5 to make $6 in a specialty industry, that’s probably not a wise move. But if you’re spending $5 to make $500, okay, that’s a pretty good move, right? There is a trade-off that you have to understand from an economic standpoint. But you have to understand what the true cost is and whether there’s sufficient value. I don’t mean technological value, I mean business value, which is measured in dollars.

If you begin to understand the business value of the actions you take -- how you leverage public cloud versus private cloud versus your corporate data center assets -- and you match that against the strategic decisions of what is differentiating versus what’s not, then you get clarity around these decisions. You can properly leverage different resources and gain them at the price points that make sense. If that gets above a certain amount, well, you know that’s not necessarily the right decision to make.

Economics plays a very significant role -- but let’s not kid ourselves. IT organizations haven’t exactly been the best at economics in the past. We need to be moving forward. And so it’s just one more thing on that overflowing plate that we call demand and requirements for IT, but we have to be prepared for that.

Gardner: There might be one other big item on that plate. We can allow people to pursue business outcomes using any technology that they can get their hands on -- perhaps at any price – and we can then mature that process over time by looking at price, by finding the best options.

But the other item that we need to consider at all times is risk. Sometimes we need to consider whether getting too far into a model like a public cloud, for example, that we can’t get back out of, is part of that risk. Maybe we have to consider that being completely dependent on external cloud networks across a global supply chain, for example, has inherent cyber security risks. Isn’t it up to IT also to help organizations factor some of these risks -- along with compliance, regulation, data sovereignty issues? It’s a big barrel of monkeys.

Before we sign off, as we’re almost out of time, please address for me, Tim, the idea of IT being a risk factor mitigator for a business.

Safety in numbers

Crawford: You bring up a great point, Dana. Risk -- whether it is risk from a cyber security standpoint or it could be data sovereignty issues, as well as regulatory compliance -- the reality is that nobody across the organization truly understands all of these pieces together.

It really is a team effort to bring it all together -- where you have the privacy folks, the information security folks, and the compliance folks -- that can become a united team. 

It really is a team effort to bring it all together -- where you have the privacy folks, the information security folks, and the compliance folks -- that can become a united team. I don’t think IT is the only component of that. I really think this is a team sport. In any organization that I’ve worked with, across the industry it’s a team sport. It’s not just one group.

It’s complicated, and frankly, it’s getting more complicated every single day. When you have these huge breaches that sit on the front page of The Wall Street Journal and other publications, it’s really hard to get clarity around risk when you’re always trying to fight against the fear factor. So that’s another balancing act that these groups are going to have to contend with moving forward. You can’t ignore it. You absolutely shouldn’t. You should get proactive about it, but it is complicated and it is a team sport.

Gardner: Some take-aways for me today are that IT needs to raise its game. Yet again, they need to get more strategic, to develop some of the tools that they’ll need to address issues of sprawl, complexity, cost, and simply gaining visibility into what everyone in the organization is – or isn’t -- doing appropriately with hybrid cloud and hybrid IT.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or  download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

Case study: How HCI-powered private clouds accelerate efficient digital transformation

The next BriefingsDirect cloud efficiency case study examines how a world-class private cloud project evolved in the financial sector.

We’ll now learn how public cloud-like experiences, agility, and cost structures are being delivered via a strictly on-premises model built on hyper-converged infrastructure for a risk-sensitive financial services company.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Jim McKittrick joins to help explore the potential for cloud benefits when retaining control over the data center is a critical requirement. He is Senior Account Manager at Applied Computer Solutions (ACS) in Huntington Beach, California. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Many enterprises want a private cloud for security and control reasons. They want an OpEx-like public cloud model, and that total on-premises control. Can you have it both ways?

McKittrick: We are showing that you can. People are learning that the public cloud isn't necessarily all it has been hyped up to be, which is what happens with newer technologies as they come out.

Gardner: What are the drivers for keeping it all private?

McKittrick

McKittrick

McKittrick: Security, of course. But if somebody actually analyzes it, a lot of times it will be about cost and data access, and the ease of data egress because getting your data back can sometimes be a challenge.

Also, there is a realization that even though I may have strict service-level agreements (SLAs), if something goes wrong they are not going to save my business. If that thing tanks, do I want to give that business away? I have some clients who absolutely will not.

Gardner: Control, and so being able to sleep well at night.

McKittrick: Absolutely. I have other clients that we can speak about who have HIPAA requirements, and they are privately held and privately owned. And literally the CEO says, “I am not doing it.” And he doesn’t care what it costs.

Gardner: If there were a huge delta between the price of going with a public cloud or staying private, sure. But that deltais closing. So you can have the best of both worlds -- and not pay a very high penalty nowadays.

McKittrick: If done properly, certainly from my experience. We have been able to prove that you can run an agile, cloud-like infrastructure or private cloud as cost-effectively -- or even more cost effectively -- than you can in the public clouds. There are certainly places for both in the market.

Gardner: It's going to vary, of course, from company to company -- and even department to department within a company -- but the fact is that that choice is there.

McKittrick: No doubt about it, it absolutely is.

Gardner: Tell us about ACS, your role there, and how the company is defining what you consider the best of hybrid cloud environments.

McKittrick: We are a relatively large reseller, about $600 million. We have specialized in data center practices for 27 years. So we have been in business quite some time and have had to evolve with the IT industry.

We have a head start on what's really coming down the pipe -- we are one to two years ahead of the general marketplace.

Structurally, we are fairly conventional from the standpoint that we are a typical reseller, but we pride ourselves on our technical acumen. Because we have some very, very large clients and have worked with them to get on their technology boards, we feel like we have a head start on what's really coming down the pipe --  we are maybe one to two years ahead of the general marketplace. We feel that we have a thought leadership edge there, and we use that as well as very senior engineering leadership in our organization to tell us what we are supposed to be doing.

Gardner: I know you probably can't mention the company by name, but tell us about a recent project that seems a harbinger of things to come.

Hyper-convergent control 

McKittrick: It began as a proof of concept (POC), but it’s in production, it’s live globally.

I have been with ACS for 18 years, and I have had this client for 17 of those years. We have been through multiple data center iterations.

When this last one came up, three things happened. Number one, they were under tremendous cost pressure -- but public cloud was not an option for them.

The second thing was that they had grown by acquisition, and so they had dozens of IT fiefdoms. You can imagine culturally and technologically the challenges involved there. Nonetheless, we were told to consolidate and globalize all these operations.

Thirdly, I was brought in by a client who had run the US presence for this company. We had created a single IT infrastructure in the US for them. He said, “Do it again for the whole world, but save us a bunch of money.” The gauntlet was thrown down. The customer was put in the position of having to make some very aggressive choices. And so he effectively asked me bring them “cool stuff.”

You could give control to anybody in the organization across the globe and they would be able to manage it.

They asked, “What's new out there? How can we do this?” Our senior engineering staff brought a couple of ideas to the table, and hyper-converged infrastructure (HCI) was central to that. HCI provided the ability to simplify the organization, as well as the IT management for the organization. You could give control of it to anybody in the organization across the globe and they would be able to manage it, working with partners in other parts of the world.

Gardner: Remote management being very important for this.

Learn How to Transform

To A Hybrid IT

Environment

McKittrick: Absolutely, yes. We also gained failover capabilities, and disaster recovery within these regional data centers. We ended going from -- depending on whom you spoke to -- somewhere between seven to 19 data centers globally, down to three. We were able to consolidate down to three. The data center footprint shrank massively. Just in the US, we went to one data center; we got rid of the other data center completely. We went from 34 racks down to 3.5.

Gardner: Hyper-convergence being a big part of that?

McKittrick: Correct, that was really the key, hyper-convergence and virtualization.

The other key enabling technology was data de-duplication, so the ability to shrink the data and then be able to move it from place to place without crushing bandwidth requirements, because you were only moving the changes, the change blocks.

Gardner: So more of a modern data lifecycle approach?

McKittrick: Absolutely. The backup and recovery approach was built in to the solution itself. So we also deployed a separate data archive, but that's different than backup and recovery. Backup and recovery were essentially handled by VMware and the capability to have the same machine exist in multiple places at the same time.

Gardner: Now, there is more than just the physical approach to IT, as you described it, there is the budgetary financial approach. So how do they maybe get the benefit of the  OpEx approach that people are fond of with public cloud models and apply that in a private cloud setting?

Budget benefits 

McKittrick: They didn't really take that approach. I mean we looked at it. We looked at essentially leasing. We looked at the pay-as-you-go models and it didn't work for them. We ended up doing essentially a purchase of the equipment with a depreciation schedule and traditional support. It was analyzed, and they essentially said, “No, we are just going to buy it.”

Gardner: So total cost of ownership (TCO) is a better metric to look at. Did you have the ability to measure that? What were some of the metrics of success other than this massive consolidation of footprint and better control over management?

McKittrick: We had to justify TCO relative to what a traditional IT refresh would have cost. That's what I was working on for the client until the cost pressure came to bear. We then needed to change our thinking. That's when hyper-convergence came through.

What we would have spent on just hardware and infrastructure costs, not including network and bandwidth -- would have been $55 million over five years, and we ended up doing it for $15 million.

The cost analysis was already done, because I was already costing it with a refresh, including compute and traditional SAN storage. The numbers I had over a five-year period – just what we would have spent on hardware and infrastructure costs, and not including network and bandwidth – would have been $55 million over five years, and we ended up doing it for $15 million.

Gardner: We have mentioned HCI several times, but you were specifically using SimpliVity, which is now part of Hewlett Packard Enterprise (HPE). Tell us about why SimpliVity was a proof-point for you, and why you think that’s going to strengthen HPE's portfolio.

Learn How to Transform

To A Hybrid IT

Environment

McKittrick: This thing is now built and running, and it's been two years since inception. So that's a long time in technology, of course. The major factors involved were the cost savings.

As for HPE going forward, the way the client looked at it -- and he is a very forward-thinking technologist -- he always liked to say, “It’s just VMware.” So the beauty of it from their perspective – was that they could just deploy on VMware virtualization. Everyone in our organization knows how to work with VMware, we just deploy that, and they move things around. Everything is managed in that fashion, as virtual machines, as opposed to traditional storage, and all the other layers of things that have to be involved in traditional data centers.

The HCI-based data centers also included built-in WAN optimization, built-in backup and recovery, and were largely on solid-state disks (SSDs). All of the other pieces of the hardware stack that you would traditionally have -- from the server on down -- folded into a little box, so to speak, a physical box. With HCI, you get all of that functionality in a much simpler and much easier to manage fashion. It just makes everything easier.

Gardner: When you bring all those HCI elements together, it really creates a solution. Are there any other aspects of HPE’s portfolio, in addition now to SimpliVity, that would be of interest for future projects?

McKittrick: HPE is able to take this further. You have to remember, at the time, SimpliVity was a widget, and they would partner with the server vendors. That was really it, and with VMware.

Now with HPE, SimpliVity can really build out their roadmap. There is all kinds of innovation that's going to come.

Now with HPE, SimpliVity has behind them one of the largest technology companies in the world. They can really build out their roadmap. There is all kinds of innovation that’s going to come. When you then pair that with things like Microsoft Azure Stack and HPE Synergy and its composable architecture -- yes, all of that is going to be folded right in there.

I give HPE credit for having seen what HCI technology can bring to them and can help them springboard forward, and then also apply it back into things that they are already developing. Am I going to have more opportunity with this infrastructure now because of the SimpliVity acquisition? Yes.

Gardner:  For those organizations that want to take advantage of public cloud options, also having HCI-powered hybrid clouds, and composable and automated-bursting and scale-out -- and soon combining that multi-cloud options via HPE New Stack – this gives them the best of all worlds.

Learn How to Transform

To A Hybrid IT

Environment

McKittrick: Exactly. There you are. You have your hybrid cloud right there. And certainly one could do that with traditional IT, and still have that capability that HPE has been working on. But now, [with SimpliVity HCI] you have just consolidated all of that down to a relatively simple hardware approach. You can now quickly deploy and gain all those hybrid capabilities along with it. And you have the mobility of your applications and workloads, and all of that goodness, so that you can decide where you want to put this stuff.

Gardner: Before we sign off, let's revisit this notion of those organizations that have to have a private cloud. What words of advice might you give them as they pursue such dramatic re-architecting of their entire IT systems?

A people-first process 

McKittrick: Great question. The technology was the easy part. This was my first global HCI roll out, and I have been in the business well over 20 years. The differences come when you are messing with people -- moving their cheese, and messing with their rice bowl. It’s profound. It always comes back to people.

The people and process were the hardest things to deal with, and quite frankly, still are. Make sure that everybody is on-board. They must understand what's happening, why it's happening, and then you try to get all those people pulling in the same direction. Otherwise, you end up in a massive morass and things don't get done, or they become almost unmanageable.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

How Nokia refactors the video delivery business with new time-managed IT financing models

The next BriefingsDirect IT financing and technology acquisition strategies interview examines how Nokia is refactoring the video delivery business. Learn both about new video delivery architectures and the creative ways media companies are paying for the technology that supports them.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

Here to describe new models of Internet Protocol (IP) video and time-managed IT financing is Paul Larbey, Head of the Video Business Unit at Nokia, based in Cambridge, UK. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: It seems that the video-delivery business is in upheaval. How are video delivery trends coming together to make it necessary for rethinking architectures? How are pricing models and business models changing, too? 

Larbey: We sit here in 2017, but let’s look back 10 years to 2007. There were a couple key events in 2007 that dramatically shaped how we all consume video today and how, as a company, we use technology to go to market.

Larbey

Larbey

It’s been 10 years since the creation of the Apple iPhone. The iPhone sparked whole new device-types, moving eventually into the iPad. Not only that, Apple underneath developed a lot of technology in terms of how you stream video, how you protect video over IP, and the technology underneath that, which we still use today. Not only did they create a new device-type and avenue for us to watch video, they also created new underlying protocols.

It was also 10 years ago that Netflix began to first offer a video streaming service. So if you look back, I see one year in which how we all consume our video today was dramatically changed by a couple of events.

If we fast-forward, and look to where that goes to in the future, there are two trends we see today that will create challenges tomorrow. Video has become truly mobile. When we talk about mobile video, we mean watching some films on our iPad or on our iPhone -- so not on a big TV screen, that is what most people mean by mobile video today.

The future is personalized 

When you can take your video with you, you want to take all your content with you. You can’t do that today. That has to happen in the future. When you are on an airplane, you can’t take your content with you. You need connectivity to extend so that you can take your content with you no matter where you are.

Take the simple example of a driverless car. Now, you are driving along and you are watching the satellite-navigation feed, watching the traffic, and keeping the kids quiet in the back. When driverless cars come, what you are going to be doing? You are still going to be keeping the kids quiet, but there is a void, a space that needs to be filled with activity, and clearly extending the content into the car is the natural next step.

And the final challenge is around personalization. TV will become a lot more personalized. Today we all get the same user experience. If we are all on the same service provider, it looks the same -- it’s the same color, it’s the same grid. There is no reason why that should all be the same. There is no reason why my kids shouldn’t have a different user interface.

There is no reason why I should have 10 pages of channels that I have to through to find something that I want to watch.

The user interface presented to me in the morning may be different than the user interface presented to me in the evening. There is no reason why I should have 10 pages of channels that I have to go through to find something that I want to watch. Why aren’t all those channels specifically curated for me? That’s what we mean by personalization. So if you put those all together and extrapolate those 10 years into the future, then 2027 will be a very different place for video.

Gardner: It sounds like a few things need to change between the original content’s location and those mobile screens and those customized user scenarios you just described. What underlying architecture needs to change in order to get us to 2027 safely?

Larbey: It’s a journey; this is not a step-change. This is something that’s going to happen gradually.

But if you step back and look at the fundamental changes -- all video will be streamed. Today, the majority of what we view is via broadcasting, from cable TV, or from a satellite. It’s a signal that’s going to everybody at the same time.

If you think about the mobile video concept, if you think about personalization, that is not going be the case. Today we watch a portion of our video streamed over IP. In the future, it will all be streamed over IP.

And that clearly creates challenges for operators in terms of how to architect the network, how to optimize the delivery, and how to recreate that broadcast experience using streaming video. This is where a lot of our innovation is focused today.

Gardner: You also mentioned in the case of an airplane, where it's not just streaming but also bringing a video object down to the device. What will be different in terms of the boundary between the stream and a download?

IT’s all about intelligence

Larbey: It’s all about intelligence. Firstly, connectivity has to extend and become really ubiquitous via technology such as 5G. The increase in fiber technology will dramatically enable truly ubiquitous connectivity, which we don’t really have today. That will resolve some of the problems, but not all.

But, by the fact that television will be personalized, the network will know what’s in my schedule. If I have an upcoming flight, machine learning can automatically predict what I’m going to do and make sure it suggests the right content in context. It may download the content because it knows I am going to be sitting in a flight for the next 12 hours.

Gardner: We are putting intelligence into the network to be beneficial to the user experience. But it sounds like it’s also going to give you the opportunity to be more efficient, with just-in-time utilization -- minimal viable streaming, if you will.

How does the network becoming more intelligent also benefit the carriers, the deliverers of the content, and even the content creators and owners? There must be an increased benefit for them on utility as well as in the user experience?

Larbey: Absolutely. We think everything moves into the network, and the intelligence becomes the network. So what does that do immediately? That means the operators don’t have to buy set-top boxes. They are expensive. They are very costly to maintain. They stay in the network a long time. They can have a much lighter client capability, which basically just renders the user interface.

The first obvious example of all this, that we are heavily focused on, is the storage. So taking the hard drive out of the set-top box and putting that data back into the network. Some huge deployments are going on at the moment in collaboration with Hewlett Packard Enterprise (HPE) using the HPE Apollo platform to deploy high-density storage systems that remove the need to ship a set-top box with a hard drive in it.

HPE Rethinks

How to Acquire, Pay For

And Use IT

Now, what are the advantages of that? Everybody thinks it’s costly, so you’ve taken the hard drive out, you have the storage in the network, and that’s clearly one element. But actually if you talk to any operator, their biggest cause of subscriber churn is when somebody’s set-top box fails and they lose their personalized recordings.

The personal connection you had with your service isn’t there any longer. It’s a lot easier to then look at competing services. So if that content is in the network, then clearly you don’t have that churn issue. Not only can you access your content from any mobile device, it’s protected and it will always be with you.

Taking the CDN private

Gardner: For the past few decades, part of the solution to this problem was to employ a content delivery network (CDN) and use that in a variety of ways. It started with web pages and the downloading of flat graphic files. Now that's extended into all sorts of objects and content. Are we going to do away with the CDN? Are we going to refactor it, is it going to evolve? How does that pan out over the next decade?

Larbey: The CDN will still exist. That still becomes the key way of optimizing video delivery -- but it changes. If you go back 10 years, the only CDNs available were CDNs in the Internet. So it was a shared service, you bought capacity on the shared service.

Even today that's how a lot of video from the content owners and broadcasters is streamed. For the past seven years, we have been taking that technology and deploying it in private network -- with both telcos and cable operators -- so they can have their own private CDN, and there are a lot of advantages to having your own private CDN.
You get complete control of the roadmap. You can start to introduce advanced features such as targeted ad insertion, blackout, and features like that to generate more revenue. You have complete control over the quality of experience, which you don't if you outsource to a shared service.

There are a lot of advantages to having your own private CDN. You have complete control over the quality of experience which you don't if you outsource to a shared service.

What we’re seeing now is both the programmers and broadcasters taking an interest in that private CDN because they want the control. Video is their business, so the quality they deliver is even more important to them. We’re seeing a lot of the programmers and broadcasters starting to look at adopting the private CDN model as well.

The challenge is how do you build that? You have to build for peak. Peak is generally driven by live sporting events and one-off news events. So that leaves you with a lot of capacity that’s sitting idle a lot of the time. With cloud and orchestration, we have solved that technically -- we can add servers in very quickly, we can take them out very quickly, react to the traffic demands and we can technically move things around.

But the commercial model has lagged behind. So we have been working with HPE Financial Services to understand how we can innovate on that commercial model as well and get that flexibility -- not just from an IT perspective, but also from a commercial perspective.

Gardner:  Tell me about Private CDN technology. Is that a Nokia product? Tell us about your business unit and the commercial models.

Larbey: We basically help as a business unit. Anyone who has content -- be that broadcasters or programmers – they pay the operators to stream the content over IP, and to launch new services. We have a product focused on video networking: How to optimize a video, how it’s delivered, how it’s streamed, and how it’s personalized.

It can be a private CDN product, which we have deployed for the last seven years, and we have a cloud digital video recorder (DVR) product, which is all about moving the storage capacity into the network. We also have a systems integration part, which brings a lot of technology together and allows operators to combine vendors and partners from the ecosystem into a complete end-to-end solution.

HPE Rethinks

How to Acquire, Pay For

And Use IT

Gardner: With HPE being a major supplier for a lot of the hardware and infrastructure, how does the new cost model change from the old model of pay up-front?

Flexible financial formats

Larbey: I would not classify HPE as a supplier; I think they are our partner. We work very closely together. We use HPE ProLiant DL380 Gen9 Servers, the HPE Apollo platform, and the HPE Moonshot platform, which are, as you know, world-leading compute-storage platforms that deliver these services cost-effectively. We have had a long-term technical relationship.

We are now moving toward how we advance the commercial relationship. We are working with the HPE Financial Services team to look at how we can get additional flexibility. There are a lot of pay-as-you-go-type financial IT models that have been in existence for some time -- but these don’t necessarily work for my applications from a financial perspective.

 Our goal is to use 100 percent of the storage all of the time to maximize the cache hit-rate.

In the private CDN and the video applications, our goal is to use 100 percent of the storage all of the time to maximize the cache hit-rate. With the traditional IT payment model for storage, my application fundamentally breaks that. So having a partner like HPE that was flexible and could understand the application is really important.

We also needed flexibility of compute scaling. We needed to be able to deploy for the peak, but not pay for that peak at all times. That’s easy from the software technology side, but we needed it from the commercial side as well.

And thirdly, we have been trying to enter a new market and be focused on the programmers and broadcasters, which is not our traditional segment. We have been deploying our CDN to the largest telcos and cable operators in the world, but now, selling to that programmers and broadcasters segment -- they are used to buying a service from the Internet and they work in a different way and they have different requirements.

So we needed a financial model that allowed us to address that, but also a partner who would take some of the risk, too, because we didn’t know if it was going to be successful. Thankfully it has, and we have grown incredibly well, but it was a risk at the start. Finding a partner like HPE Financial Services who could share some of that risk was really important. 

Gardner: These video delivery organizations are increasingly operating on subscription basis, so they would like to have their costs be incurred on a similar basis, so it all makes sense across the services ecosystem.

Our tolerance just doesn't exist anymore for buffering and we demand and expect the highest-quality video.

Larbey: Yes, absolutely. That is becoming more and more important. If you go back to the very first the Internet video, you watched of a cat falling off a chair on YouTube. It didn’t matter if it was buffering, that wasn't relevant. Now, our tolerance just doesn’t exist anymore for buffering and we demand and expect the highest-quality video.

If TV in 2027 is going to be purely IP, then clearly that has to deliver exactly the same quality of experience as the broadcasting technologies. And that creates challenges. The biggest obvious example is if you go to any IP TV operator and look at their streamed video channel that is live versus the one on broadcast, there is a big delay.

So there is a lag between the live event and what you are seeing on your IP stream, which is 30 to 40 seconds. If you are in an apartment block, watching a live sporting event, and your neighbor sees it 30 to 40 seconds before you, that creates a big issue. A lot of the innovations we’re now doing with streaming technologies are to deliver that same broadcast experience.

HPE Rethinks

How to Acquire, Pay For

And Use IT

Gardner: We now also have to think about 4K resolution, the intelligent edge, no latency, and all with managed costs. Fortunately at this time HPE is also working on a lot of edge technologies, like Edgeline and Universal IoT, and so forth. There’s a lot more technology being driven to the edge for storage, for large memory processing, and so forth. How are these advances affecting your organization? 

Optimal edge: functionality and storage

Larbey: There are two elements. The compute, the edge, is absolutely critical. We are going to move all the intelligence into the network, and clearly you need to reduce the latency, and you need to able to scale that functionality. This functionality was scaled in millions of households, and now it has to be done in the network. The only way you can effectively build the network to handle that scale is to put as much functionality as you can at the edge of the network.

The HPE platforms will allow you to deploy that computer storage deep into the network, and they are absolutely critical for our success. We will run our CDN, our ad insertion, and all that capability as deeply into the network as an operator wants to go -- and certainly the deeper, the better.

The other thing we try to optimize all of the time is storage. One of the challenges with network-based recording -- especially in the US due to the content-use regulations compliance -- is that you have to store a copy per user. If, for example, both of us record the same program, there are two versions of that program in the cloud. That’s clearly very inefficient.

The question is how do you optimize that, and also support just-in-time transcoding techniques that have been talked about for some time. That would create the right quality of bitrate on the fly, so you don’t have to store all the different formats. It would dramatically reduce storage costs.

The challenge has always been that the computing processing units (CPUs) needed to do that, and that’s where HPE and the Moonshot platform, which has great compute density, come in. We have the Intel media library for doing the transcoding. It’s a really nice storage platform. But we still wanted to get even more out of it, so at our Bell Labs research facility we developed a capability called skim storage, which for a slight increase in storage, allows us to double the number of transcodes we can do on a single CPU.

That approach takes a really, really efficient hardware platform with nice technology and doubles the density we can get from it -- and that’s a big change for the business case.

Gardner: It’s astonishing to think that that much encoding would need to happen on the fly for a mass market; that’s a tremendous amount of compute, and an intense compute requirement. 

Content popularity

Larbey: Absolutely, and you have to be intelligent about it. At the end of the day, human behavior works in our favor. If you look at most programs that people record, if they do not watch within the first seven days, they are probably not going to watch that recording. That content in particular then can be optimized from a storage perspective. You still need the ability to recreate it on the fly, but it improves the scale model.

Gardner: So the more intelligent you can be about what the users’ behavior and/or their use patterns, the more efficient you can be. Intelligence seems to be the real key here.

Larbey: Yes, we have a number of algorithms even within the CDN itself today that predict content popularity. We want to maximize the disk usage. We want the popular content on the disk, so what’s the point of us deleting a piece of a popular content just because a piece of long-tail content has been requested. We do a lot of algorithms looking at and trying to predict the content popularity so that we can make sure we are optimizing the hardware platform accordingly.

Gardner: Perhaps we can deepen our knowledge about this all through some examples. Do have some examples that demonstrate how your clients and customers are taking these new technologies and making better business decisions that help them in their cost structure -- but also deliver a far better user experience?

In-house control

Larbey: One of our largest customers is Liberty Global, with a large number of cable operators in a variety of countries across Europe. They were enhancing an IP service. They started with an Internet-based CDN and that’s how they were delivering their service. But recognizing the importance of gaining more control over costs and the quality experience, they wanted to take that in-house and put the content on a private CDN.

We worked with them to deliver that technology. One of things that they noticed very quickly, which I don’t think they were expecting, was a dramatic reduction in the number of people calling in to complain because the stream had stopped or buffered. They enjoyed a big decrease in call-center calls as soon as they switched on our new CDN technology, which is quite an interesting use-case benefit.

When they deployed a private CDN, they reached costs payback in less than 12 months.

We do a lot with Sky in the UK, which was also looking to migrate away from an Internet-based CDN service into something in-house so they could take more control over it and improve the users’ quality of experience. 

One of our customers in Canada, TELUS, when they deployed a private CDN, they reached costs payback in less than 12 months in terms of both the network savings and the Internet CDN costs savings.

Gardner: Before we close out, perhaps a look to the future and thinking about some of the requirements on business models as we leverage edge intelligence. What about personalization services, or even inserting ads in different ways? Can there be more of a two-way relationship, or a one-to-one interaction with the end consumers? What are the increased benefits from that high-performing, high-efficiency edge architecture? 

VR vision and beyond

Larbey: All of that generates more traffic -- moving from standard-definition to high-definition to 4K, to beyond 4K -- it all generates more network traffic. You then take into account a 360-degree-video capability and virtual reality (VR) services, which is a focus for Nokia with our Ozo camera, and it’s clear that the data is just going to explode.

So being able to optimize, and continue to optimize that, in terms of new codec technology and new streaming technologies -- to be able to constrain the growth of video demands on the network – is essential, otherwise the traffic would just explode.

There is lot of innovation going on to optimize the content experience. People may not want to watch all their TV through VR headsets. That may not become the way you want to watch the latest episode of Game of Thrones. However, maybe there will be a uniquely created piece of content that’s an add-on in 360, and the real serious fans can go and look for it. I think we will see new types of content being created to address these different use-cases.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in:

·       How IoT capabilities open new doors for Miami Telecoms Platform Provider Identidad

·       DreamWorks Animation crafts its next era of dynamic IT infrastructure

·       How Enterprises Can Take the Ecosystem Path to Making the Most of Microsoft Azure Stack Apps

·       Hybrid Cloud ecosystem readies for impact from Microsoft Azure Stack

·       Converged IoT systems: Bringing the data center to the edge of everything

·       IDOL-powered appliance delivers better decisions via comprehensive business information searches

·        OCSL sets its sights on the Nirvana of hybrid IT—attaining the right mix of hybrid cloud for its clients

·       Fast acquisition of diverse unstructured data sources makes IDOL API tools a star at LogitBot

·       How lastminute.com uses machine learning to improve travel bookings user experience

·       HPE takes aim at customer needs for speed and agility in age of IoT, hybrid everything

How Imagine Communications leverages edge computing and HPC for live multiscreen IP video

The next BriefingsDirect Voice of the Customer HPC and edge computing strategies interview explores how a video delivery and customization capability has moved to the network edge -- and closer to consumers -- to support live, multi-screen Internet Protocol (IP) entertainment delivery. 

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

We’ll learn how hybrid technology and new workflows for IP-delivered digital video are being re-architected -- with significant benefits to the end-user experience, as well as with new monetization values to the content providers.

Our guest is Glodina Connan-Lostanlen, Chief Marketing Officer at Imagine Communications in Frisco, Texas. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Your organization has many major media clients. What are the pressures they are facing as they look to the new world of multi-screen video and media?

Connan-Lostanlen: The number-one concern of the media and entertainment industry is the fragmentation of their audience. We live with a model supported by advertising and subscriptions that rely primarily on linear programming, with people watching TV at home.

Connan-Lostanlen

Connan-Lostanlen

And guess what? Now they are watching it on the go -- on their telephones, on their iPads, on their laptops, anywhere. So they have to find the way to capture that audience, justify the value of that audience to their advertisers, and deliver video content that is relevant to them. And that means meeting consumer demand for several types of content, delivered at the very time that people want to consume it.  So it brings a whole range of technology and business challenges that our media and entertainment customers have to overcome. But addressing these challenges with new technology that increases agility and velocity to market also creates opportunities.

For example, they can now try new content. That means they can try new programs, new channels, and they don’t have to keep them forever if they don’t work. The new models create opportunities to be more creative, to focus on what they are good at, which is creating valuable content. At the same time, they have to make sure that they cater to all these different audiences that are either static or on the go.

Gardner: The media industry has faced so much change over the past 20 years, but this is a major, perhaps once-in-a-generation, level of change -- when you go to fully digital, IP-delivered content.

As you say, the audience is pulling the providers to multi-screen support, but there is also the capability now -- with the new technology on the back-end -- to have much more of a relationship with the customer, a one-to-one relationship and even customization, rather than one-to-many. Tell us about the drivers on the personalization level.

Connan-Lostanlen: That’s another big upside of the fragmentation, and the advent of IP technology -- all the way from content creation to making a program and distributing it. It gives the content creators access to the unique viewers, and the ability to really engage with them -- knowing what they like -- and then to potentially target advertising to them. The technology is there. The challenge remains about how to justify the business model, how to value the targeted advertising; there are different opinions on this, and there is also the unknown or the willingness of several generations of viewers to accept good advertising.

That is a great topic right now, and very relevant when we talk about linear advertising and dynamic ad insertion (DAI). Now we are able to -- at the very edge of the signal distribution, the video signal distribution -- insert an ad that is relevant to each viewer, because you know their preferences, you know who they are, and you know what they are watching, and so you can determine that an ad is going to be relevant to them.

But that means media and entertainment customers have to revisit the whole infrastructure. It’s not necessary rebuilding, they can put in add-ons. They don’t have to throw away what they had, but they can maintain the legacy infrastructure and add on top of it the IP-enabled infrastructure to let them take advantage of these capabilities.

Gardner: This change has happened from the web now all the way to multi-screen. With the web there was a model where you would use a content delivery network (CDN) to take the object, the media object, and place it as close to the edge as you could. What’s changed and why doesn’t that model work as well?

Connan-Lostanlen: I don’t know yet if I want to say that model doesn’t work anymore. Let’s let the CDN providers enhance their technology. But for sure, the volume of videos that we are consuming everyday is exponentially growing. That definitely creates pressure in the pipe. Our role at the front-end and the back-end is to make sure that videos are being created in different formats, with different ads, and everything else, in the most effective way so that it doesn’t put an undue strain on the pipe that is distributing the videos.

We are being pushed to innovate further on the type of workflows that we are implementing at our customers’ sites today, to make it efficient, to not leave storage at the edge and not centrally, and to do transcoding just-in-time. These are the things that are being worked on. It’s a balance between available capacity and the number of programs that you want to send across to your viewers – and how big your target market is.

The task for us on the back-end is to rethink the workflows in a much more efficient way. So, for example, this is what we call the digital-first approach, or unified distribution. Instead of planning a linear channel that goes the traditional way and then adding another infrastructure for multi-screen, on all those different platforms and then cable, and satellite, and IPTV, etc. -- why not design the whole workflow digital-first. This frees the content distributor or provider to hold off on committing to specific platforms until the video has reached the edge. And it’s there that the end-user requirements determine how they get the signal.

This is where we are going -- to see the efficiencies happen and so remove the pressure on the CDNs and other distribution mechanisms, like over-the-air.

Explore

High-Performance Computing

Solutions from HPE

Gardner: It means an intelligent edge capability, whereas we had an intelligent core up until now. We’ll also seek a hybrid capability between them, growing more sophisticated over time.

We have a whole new generation of technology for video delivery. Tell us about Imagine Communications. How do you go to market? How do you help your customers?

Education for future generations

Connan-Lostanlen: Two months ago we were in Las Vegas for our biggest tradeshow of the year, the NAB Show. At the event, our customers first wanted to understand what it takes to move to IP -- so the “how.” They understand the need to move to IP, to take advantage of the benefits that it brings. But how do they do this, while they are still navigating the traditional world?

It’s not only the “how,” it’s needing examples of best practices. So we instructed them in a panel discussion, for example, on Over the Top Technology (OTT), which is another way of saying IP-delivered, and what it takes to create a successful multi-screen service. Part of the panel explained what OTT is, so there’s a lot of education.

There is also another level of education that we have to provide, which is moving from the traditional world of serial digital interfaces (SDIs) in the broadcast industry to IP. It’s basically saying analog video signals can be moved into digital. Then not only is there a digitally sharp signal, it’s an IP stream. The whole knowledge about how to handle IP is new to our own industry, to our own engineers, to our own customers. We also have to educate on what it takes to do this properly.

One of the key things in the media and entertainment industry is that there’s a little bit of fear about IP, because no one really believed that IP could handle live signals. And you know how important live television is in this industry – real-time sports and news -- this is where the money comes from. That’s why the most expensive ads are run during the Super Bowl.

It’s essential to be able to do live with IP – it’s critical. That’s why we are sharing with our customers the real-life implementations that we are doing today.

We are also pushing multiple standards forward. We work with our competitors on these standards. We have set up a trade association to accelerate the standards work. We did all of that. And as we do this, it forces us to innovate in partnership with customers and bring them on board. They are part of that trade association, they are part of the proof-of-concept trials, and they are gladly sharing their experiences with others so that the transition can be accelerated.

Gardner: Imagine Communications is then a technology and solutions provider to the media content companies, and you provide the means to do this. You are also doing a lot with ad insertion, billing, in understanding more about the end-user and allowing that data flow from the edge back to the core, and then back to the edge to happen.

At the heart of it all

Connan-Lostanlen: We do everything that happens behind the camera -- from content creation all the way to making a program and distributing it. And also, to your point, on monetizing all that with a management system. We have a long history of powering all the key customers in the world for their advertising system. It’s basically an automated system that allows the selling of advertising spots, and then to bill them -- and this is the engine of where our customers make money. So we are at the heart of this.

We are in the prime position to help them take advantage of the new advertising solutions that exist today, including dynamic ad insertion. In other words, how you target ads to the single viewer. And the challenge for them is now that they have a campaign, how do they design it to cater both to the linear traditional advertising system as well as the multi-screen or web mobile application? That's what we are working on. We have a whole set of next-generation platforms that allow them to take advantage of both in a more effective manner.

Gardner: The technology is there, you are a solutions provider. You need to find the best ways of storing and crunching data, close to the edge, and optimizing networks. Tell us why you choose certain partners and what are the some of the major concerns you have when you go to the technology marketplace?

Connan-Lostanlen: One fundamental driver here, as we drive the transition to IP in this industry, is in being able to rely on consumer-off-the-shelf (COTS) platforms. But even so, not all COTS platforms are born equal, right?

For compute, for storage, for networking, you need to rely on top-scale hardware platforms, and that’s why about two years ago we started to work very closely with Hewlett Packard Enterprise (HPE) for both our compute and storage technology.

Explore

High-Performance Computing

Solutions from HPE

We develop the software appliances that run on those platforms, and we sell this as a package with HPE. It’s been a key value proposition of ours as we began this journey to move to IP. We can say, by the way, our solutions run on HPE hardware. That's very important because having high-performance compute (HPC) that scales is critical to the broadcast and media industry. Having storage that is highly reliable is fundamental because going off the air is not acceptable. So it's 99.9999 percent reliable, and that’s what we want, right?

It’s a fundamental part of our message to our customers to say, “In your network, put Imagine solutions, which are powered by one of the top compute and storage technologies.”

Gardner: Another part of the change in the marketplace is this move to the edge. It’s auspicious that just as you need to have more storage and compute efficiency at the edge of the network, close to the consumer, the infrastructure providers are also designing new hardware and solutions to do just that. That's also for the Internet of Things (IoT) requirements, and there are other drivers. Nonetheless, it's an industry standard approach.

What is it about HPE Edgeline, for example, and the architecture that HPE is using, that makes that edge more powerful for your requirements? How do you view this architectural shift from core data center to the edge?

Optimize the global edge

Connan-Lostanlen: It's a big deal because we are going to be in a hybrid world. Most of our customers, when they hear about cloud, we have to explain it to them. We explain that they can have their private cloud where they can run virtualized applications on-premises, or they can take advantage of public clouds.

Being able to have a hybrid model of deployment for their applications is critical, especially for large customers who have operations in several places around the globe. For example, such big names as Disney, Turner –- they have operations everywhere. For them, being able to optimize at the edge means that you have to create an architecture that is geographically distributed -- but is highly efficient where they have those operations. This type of technology helps us deliver more value to the key customers.

Gardner: The other part of that intelligent edge technology is that it has the ability to be adaptive and customized. Each region has its own networks, its own regulation, and its own compliance, security, and privacy issues. When you can be programmatic as to how you design your edge infrastructure, then a custom-applications-orientation becomes possible.

Is there something about the edge architecture that you would like to see more of? Where do you see this going in terms of the capabilities of customization added-on to your services?

Connan-Lostanlen: One of the typical use-cases that we see for those big customers who have distributed operations is that they like to try and run their disaster recovery (DR) site in a more cost-effective manner. So the flexibility that an edge architecture provides to them is that they don’t have to rely on central operations running DR for everybody. They can do it on their own, and they can do it cost-effectively. They don't have to recreate the entire infrastructure, and so they do DR at the edge as well.

We especially see this a lot in the process of putting the pieces of the program together, what we call “play out,” before it's distributed. When you create a TV channel, if you will, it’s important to have end-to-end redundancy -- and DR is a key driver for this type of application.

Gardner: Are there some examples of your cutting-edge clients that have adopted these solutions? What are the outcomes? What are they able to do with it?

Pop-up power

Connan-Lostanlen: Well, it’s always sensitive to name those big brand names. They are very protective of their brands. However, one of the top ones in the world of media and entertainment has decided to move all of their operations -- from content creation, planning, and distribution -- to their own cloud, to their own data center.

They are at the forefront of playing live and recorded material on TV -- all from their cloud. They needed strong partners in data centers. So obviously we work with them closely, and the reason why they do this is simply to really take advantage of the flexibility. They don't want to be tied to a restricted channel count; they want to try new things. They want to try pop-up channels. For the Oscars, for example, it’s one night. Are you going to recreate the whole infrastructure if you can just check it on and off, if you will, out of their data center capacity? So that's the key application, the pop-up channels and ability to easily try new programs.

Gardner: It sounds like they are thinking of themselves as an IT company, rather than a media and entertainment company that consumes IT. Is that shift happening?

Connan-Lostanlen: Oh yes, that's an interesting topic, because I think you cannot really do this successfully if you don’t start to think IT a little bit. What we are seeing, interestingly, is that our customers typically used to have the IT department on one side, the broadcast engineers on the other side -- these were two groups that didn't speak the same language. Now they get together, and they have to, because they have to design together the solution that will make them more successful. We are seeing this happening.

I wouldn't say yet that they are IT companies. The core strength is content, that is their brand, that's what they are good at -- creating amazing content and making it available to as many people as possible.

They have to understand IT, but they can't lose concentration on their core business. I think the IT providers still have a very strong play there. It's always happening that way.

In addition to disaster recovery being a key application, multi-screen delivery is taking advantage of that technology, for sure.

Explore

High-Performance Computing

Solutions from HPE

Gardner: These companies are making this cultural shift to being much more technically oriented. They think about standard processes across all of what they do, and they have their own core data center that's dynamic, flexible, agile and cost-efficient. What does that get for them? Is it too soon, or do we have some metrics of success for companies that make this move toward a full digitally transformed organization?

Connan-Lostanlen: They are very protective about the math. It is fair to say that the up-front investments may be higher, but when you do the math over time, you do the total cost of ownership for the next 5 to 10 years -- because that’s typically the life cycle of those infrastructures – then definitely they do save money. On the operational expenditure (OPEX) side [of private cloud economics] it’s much more efficient, but they also have upside on additional revenue. So net-net, the return on investment (ROI) is much better. But it’s kind of hard to say now because we are still in the early days, but it’s bound to be a much greater ROI.

Another specific DR example is in the Middle East. We have a customer there who decided to operate the DR and IP in the cloud, instead of having a replicated system with satellite links in between. They were able to save $2 million worth of satellite links, and that data center investment, trust me, was not that high. So it shows that the ROI is there.

My satellite customers might say, “Well, what are you trying to do?” The good news is that they are looking at us to help them transform their businesses, too. So big satellite providers are thinking broadly about how this world of IP is changing their game. They are examining what they need to do differently. I think it’s going to create even more opportunities to reduce costs for all of our customers.

IT enters a hybrid world

Gardner: That's one of the intrinsic values of a hybrid IT approach -- you can use many different ways to do something, and then optimize which of those methods works best, and also alternate between them for best economics. That’s a very powerful concept.

Connan-Lostanlen: The world will be a hybrid IT world, and we will take advantage of that. But, of course, that will come with some challenges. What I think is next is the number-one question that I get asked.

Three years ago costumers would ask us, “Hey, IP is not going to work for live TV.” We convinced them otherwise, and now they know it’s working, it’s happening for real.

Secondly, they are thinking, “Okay, now I get it, so how do I do this?” We showed them, this is how you do it, the education piece.

Now, this year, the number-one question is security. “Okay, this is my content, the most valuable asset I have in my company. I am not putting this in the cloud,” they say. And this is where another piece of education has to start, which is: Actually, as you put stuff on your cloud, it’s more secure.

And we are working with our technology providers. As I said earlier, the COTS providers are not equal. We take it seriously. The cyber attacks on content and media is critical, and it’s bound to happen more often.

Initially there was a lack of understanding that you need to separate your corporate network, such as emails and VPNs, from you broadcast operations network. Okay, that’s easy to explain and that can be implemented, and that's where most of the attacks over the last five years have happened. This is solved.

They are going to get right into the servers, into the storage, and try to mess with it over there. So I think it’s super important to be able to say, “Not only at the software level, but at the hardware firmware level, we are adding protection against your number-one issue, security, which everybody can see is so important.”

However, the cyber attackers are becoming more clever, so they will overcome these initial defenses.They are going to get right into the servers, into the storage, and try to mess with it over there. So I think it’s super important to be able to say, “Not only at the software level, but at the hardware firmware level, we are adding protection against your number-one issue, security, which everybody can see is so important.”

Gardner: Sure, the next domino to fall after you have the data center concept, the implementation, the execution, even the optimization, is then to remove risk, whether it's disaster recovery, security, right down to the silicon and so forth. So that’s the next thing we will look for, and I hope I can get a chance to talk to you about how you are all lowering risk for your clients the next time we speak.

Explore

High-Performance Computing

Solutions from HPE

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.

You may also be interested in: