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

IoT

How Ferrara Candy depends on automated IT intelligence to support rapid business growth

How Ferrara Candy depends on automated IT intelligence to support rapid business growth

A discussion on how a global candy maker unlocks end-to-end process and economic efficiency through increased actionable insight and optimization of servers and storage.

How Texmark Chemicals pursues analysis-rich, IoT-pervasive path to the ‘refinery of the future’

How Texmark Chemicals pursues analysis-rich, IoT-pervasive path to the ‘refinery of the future’

Listen to this podcast discussion on how Texmark, with support from HPE and HPE channel partner CB Technologies, has been combining the refinery of the future approach with the best of OT, IT,  and IoT technology solutions to deliver data-driven insights that promote safety, efficiency, and unparalleled sustained operations.

How the Internet of Things Is Cultivating a New Vision for Agriculture

ABOUT THE AUTHOR  IsaacRo  Technologist in the making and proud geek. I crave chaos from disruptive tech trends: #IoT #BigData #AI. Currently leading Digital Marketing and Events @HPE_IoT

ABOUT THE AUTHOR

IsaacRo

Technologist in the making and proud geek. I crave chaos from disruptive tech trends: #IoT #BigData #AI. Currently leading Digital Marketing and Events @HPE_IoT

To head off the threat of food shortages for a global population estimated to top 9 billion by 2050, the world’s agricultural output must double. That mandates innovation to improve monitoring of conditions in the field in order to reduce inputs while maximizing yield and nutritional value. It also means processing data from agricultural land, machines and facilities more efficiently to accelerate research.

These are ideal applications for IoT technologies and edge computing, which is why Hewlett Packard Enterprise is partnering with Purdue University, one of the world’s leading agricultural colleges, to create a new vision for farming and agricultural research in the 21st century. The partnership’s efforts attracted a lot of attention at HPE Discover Las Vegas in June. HPE’s Janice Zdankus, VP for Quality, and Purdue University Executive Sponsor, joined Patrick Smoker, Director and Department Head of Agriculture IT at Purdue, to talk about massive innovation to drive a smarter, more connected, more sustainable agriculture.

Watch the video to learn:

  • How edge computing powered by HPE Edgeline and connectivity tech from Aruba, an HPE company, capture terabytes of data from every inch of Purdue’s 1400-plus acre field research station
  • How intelligent edge technologies accelerate time-to-discovery for research teams
  • How the partners’ innovations will support economic development in Purdue’s home state of Indiana and around the world.

Patrick expanded on these comments in an interview with tech blogger Jake Ludington. How will IoT technologies – including wearables – improve the health and living conditions of livestock? How does the university’s research translate into entrepreneurial opportunities? Watch the video to find out.

Janice also talked with Jake in the interview below. Learn how the partnership with Purdue fits into the broader framework of HPE’s philanthropic efforts, and what comes next for the partners’ digital agriculture initiative.

The Intelligent Edge was one of the main themes at HPE Discover 2018. We announced new edge-to-cloud solutions that enable organizations to run unmodified enterprise-class applications and management software at the edge. Learn more in this post: Unleash the power of the cloud, right at your edge. The latest HPE Edgeline Systems capabilities.

Learn more about HPE Edgeline Converged Edge Systems here.

Featured Articles:

Intelligent IoT Powers Purdue’s Digital Agriculture Initiative for Food Security Worldwide

Purdue University partners with HPE and Aruba in digital-agriculture initiative to fight world hunger

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:

Pay-as-you-go IT models provide cost and operations advantages for Northrop Grumman

The next BriefingsDirect IT business model innovation interview explores how pay-as-you-go models have emerged as a new way to align information technology (IT) needs with business imperatives.

We’ll now learn how global aerospace and defense integrator Northrop Grumman has sought a revolution in business model transformation in how it acquires and manages IT.

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

Here to help explore how cloud computing-like consumption models can be applied more broadly is Ron Foudray, Vice President, Business Development for Technology Services at Northrop Grumman. The interview is conducted by Dana Gardner, Principal Analyst at Interarbor Solutions.

A tale of two hospitals—How healthcare economics in Belgium hastens need for new IT buying schemes

The next BriefingsDirect data center financing agility interview explores how two Belgian hospitals are adjusting to dynamic healthcare economics to better compete and cooperate.

We will now explore how a regional hospital seeking efficiency -- and a teaching hospital seeking performance -- are meeting their unique requirements thanks to modern IT architectures and innovative IT buying methods

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

Here to help us understand the multilevel benefits of the new economics of composable infrastructure and software defined data center (SDDC) in the fast-changing healthcare field are Filip Hens, Infrastructure Manager at UZA Hospital in Antwerp, and Kim Buts, Infrastructure Manager at Imelda Hospital in Bonheiden, both in Belgium.The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

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 UBC gained TCO advantage via flash for its EduCloud cloud storage service

The next BriefingsDirect cloud efficiency case study explores how a storage-as-a-service offering in a university setting gains performance and lower total cost benefits by a move to all-flash storage.

We’ll now learn how the University of British Columbia (UBC) has modernized its EduCloud storage service and attained both efficiency as well as better service levels for its diverse user base.

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

Here to help us explore new breeds of SaaS solutions is Brent Dunington, System Architect at UBC in Vancouver. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: How is satisfying the storage demands at a large and diverse university setting a challenge? Is there something about your users and the diverse nature of their needs that provides you with a complex requirements list? 

Dunington: A university setting isn't much different than any other business. The demands are the same. UBC has about 65,000 students and about 15,000 staff. The students these days are younger kids, they all have iPhones and iPads, and they just want to push buttons and get instant results and instant gratification. And that boils down to the services that we offer.

Dunington

Dunington

We have to be able to offer those services, because as most people know, there are choices -- and they can go somewhere else and choose those other products.

Our team is a rather small team. There are 15 members in our team, so we have to be agile, we have to be able to automate things, and we need tools that can work and fulfill those needs. So it's just like any other business, even though it’s a university setting.

HPE

Delivers

Flash Performance

Gardner: Can you give us a sense of the scale that describes your storage requirements?

Dunington: We do SaaS, we also do infrastructure-as-a-service (IaaS). EduCloud is a self-service IaaS product that we deliver to UBC, but we also deliver it to 25 other higher institutions in the Province of British Columbia.

We have been doing IaaS for five years, and we have been very, very successful. So more people are looking to us for guidance.

Because we are not just delivering to UBC, we have to be up running and always able to deliver, because each school has different requirements. At different times of the year -- because there is registration, there are exam times -- these things have to be up. You can’t not be functioning during an exam and have 600 students not able to take the tests that they have been studying for. So it impacts their life and we want to make sure that we are there and can provide the services for what they need.

Gardner: In order to maintain your service levels within those peak times, do you in your IaaS and storage services employ hybrid-cloud capabilities so that you can burst? Or are you doing this all through your own data center and your own private cloud?

On-Campus Cloud

Dunington: We do it all on-campus. British Columbia has a law that says all the data has to stay in Canada. It’s a data-sovereignty law, the data can't leave the borders.

That's why EduCloud has been so successful, in my opinion, because of that option. They can just go and throw things out in the private cloud.

The public cloud providers are providing more services in Canada: Amazon Web Services (AWS) and Microsoft Azure cloud are putting data centers in Canada, which is good and it gives people an option. Our team’s goal is to provide the services, whether it's a hybrid model or all on-campus. We just want to be able to fulfill those needs.

Gardner: It sounds like the best of all worlds. You are able to give that elasticity benefit, a lot of instant service requirements met for your consumers. But you are starting to use cloud pay-as-you-go types of models and get the benefit of the public cloud model -- but with the security, control and manageability of the private clouds.

What decisions have you made about your storage underpinnings, the infrastructure that supports your SaaS cloud?

Dunington: We have a large storage footprint. For our site, it’s about 12 petabytes of storage. We realized that we weren’t meeting the needs with spinning disks. One of the problems was that we had runaway virtual workloads that would cause problems, and they would impact other services. We needed some mechanism to fix that.

We wanted to make sure that we had the ability to attain quality of service levels and control those runaway virtual machines in our footprint.

We went through the whole request for proposal (RFP) process, and all the IT infrastructure vendors responded, but we did have some guidelines that we wanted to go through. One of the things we did is present our problems and make sure that they understood what the problems were and what they were trying to solve.

And there were some minimum requirements. We do have a backup vendor of choice that they needed to merge with. And quality of service is a big thing. We wanted to make sure that we had the ability to attain quality of service levels and control those runaway virtual machines in our footprint.

Gardner: You gained more than just flash benefits when you got to flash storage, right?

Streamlined, safe, flash storage

Dunington: Yes, for sure. With an entire data center full of spinning disks, it gets to the point where the disks start to manage you; you are no longer managing the disks. And the teams out there changing drives, removing volumes around it, it becomes unwieldy. I mean, the power, the footprint, and all that starts to grow.

Also, Vancouver is in a seismic zone, we are right up against the Pacific plate and it's a very active seismic area. Heaven forbid anything happens, but one of the requirements we had was to move the data center into the interior of the province. So that was what we did.

When we brought this new data center online, one of the decisions the team made was to move to an all-flash storage environment. We wanted to be sure that it made financial sense because it's publicly funded, and also improved the user experience, across the province.

Gardner: As you were going about your decision-making process, you had choices, what made you choose what you did? What were the deciding factors?

Dunington: There were a lot of deciding factors. There’s the technology, of being able to meet the performance and to manage the performance. One of the things was to lock down runaway virtual machines and to put performance tiers on others.

But it’s not just the technology; it's also the business part, too. The financial part had to make sense. When you are buying any storage platform, you are also buying the support team and the sales team that come with it.

Our team believes that technology is a certain piece of the pie, and the rest of it is relationship. If that relationship part doesn't work, it doesn’t matter how well the technology part works -- the whole thing is going to break down.

Because software is software, hardware is hardware -- it breaks, it has problems, there are limitations. And when you have to call someone, you have to depend on him or her. Even though you bought the best technology and got the best price -- if it doesn't work, it doesn’t work, and you need someone to call.

So those service and support issues were all wrapped up into the decision.

HPE

Delivers

Flash Performance

We chose the Hewlett Packard Enterprise (HPE) 3PAR all-flash storage platform. We have been very happy with it. We knew the HPE team well. They came and worked with us on the server blade infrastructure, so we knew the team. The team knew how to support all of it. 

We also use the HPE OneView product for provisioning, and it integrated into that all. It also supported the performance optimization tool (IT Operations Management for HPE OneView) to let us set those values, because one of the things in EduCloud is customers choose their own storage tier, and we mark the price on it. So basically all we would do is present that new tier as new data storage within VMware and then they would just move their workloads across non-disruptively. So it has worked really well.

The 3PAR storage piece also integrates with VMware vRealize Operations Manager. We offer that to all our clients as a portal so they can see how everything is working and they can do their own diagnostics. Because that’s the one goal we have with EduCloud, it has to be self-service. We can let the customers do it, that's what they want.

Gardner: Not that long ago people had the idea that flash was always more expensive and that they would use it for just certain use-cases rather than pervasively. You have been talking in terms of a total cost of ownership reduction. So how does that work? How does the economics of this over a period of time, taking everything into consideration, benefit you all?

Economic sense at scale

Dunington: Our IT team and our management team are really good with that part. They were able to break it all down, and they found that this model would work at scale. I don’t know the numbers per se, but it made economic sense.

Spinning disks will still have a place in the data center. I don't know a year from now if an all-flash data center will make sense, because there are some records that people will throw in and never touch. But right now with the numbers on how we worked it out, it makes sense, because we are using the standard bronze, the gold, the silver tiers, and with the tiers it makes sense.

The 3PAR solution also has dedupe functionality and the compression that they just released. We are hoping to see how well that trends. Compression has only been around for a short period of time, so I can’t really say, but the dedupe has done really well for us.

Gardner: The technology overcomes some of the other baseline economic costs and issues, for sure.

We have talked about the technology and performance requirements. Have you been able to qualify how, from a user experience, this has been a benefit?

Dunington: The best benchmark is the adoption rate. People are using it, and there are no help desk tickets, so no one is complaining. People are using it, and we can see that everything is ramping up, and we are not getting tickets. No one is complaining about the price, the availability. Our operational team isn't complaining about it being harder to manage or that the backups aren’t working. That makes me happy.

The big picture

Gardner: Brent, maybe a word of advice to other organizations that are thinking about a similar move to private cloud SaaS. Now that you have done this, what might you advise them to do as they prepare for or evaluate a similar activity?

Not everybody needs that speed, not everybody needs that performance, but it is the future and things will move there.

Dunington: Look at the full picture, look at the total cost of ownership. There’s the buying of the hardware, and there's also supporting the hardware, too. Make sure that you understand your requirements and what your customers are looking for first before you go out and buy it. Not everybody needs that speed, not everybody needs that performance, but it is the future and things will move there. We will see in a couple of years how it went.

Look at the big picture, step back. It’s just not the new shiny toy, and you might have to take a stepped approach into buying, but for us it worked. I mean, it’s a solid platform, our team sleeps well at night, and I think our customers are really happy with it.

Gardner: This might be a little bit of a pun in the education field, but do your homework and you will benefit.

HPE

Delivers

Flash Performance

Dunington: Yes, for sure.

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 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 modern architects transform the messy mix of hybrid cloud into a force multiplier

The next BriefingsDirect cloud strategies insights interview focuses on how IT architecture and new breeds of service providers are helping enterprises manage complex cloud scenarios.

We’ll now learn how composable infrastructure and auto-scaling help improve client services, operations, and business goals attainment for a New York cloud services and architecture support provider.

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

Here to help us learn what's needed to reach the potential of multiple -- and often overlapping -- cloud models is Arthur Reyenger, Cloud Practice Lead and Chief Cloud Architect at International Integrated Solutions (IIS) Ltd. in New York.

Here are some excerpts:

Gardner: How are IT architecture and new breeds of service providers coming together? What’s different now from just a few years ago for architecture when we have cloud, multi-cloud, and hybrid cloud services? 

Reyenger

Reyenger

Reyenger: Like the technology trends themselves, everything is accelerating. Before, you would have three-year or even five-year plans that were developed by the business. They were designed to reach certain business outcomes, they would design the technology to support that and it was then heads-down to build my rocket ship.

It’s changed now to where it’s a 12-month strategy that needs to be modular enough to be reevaluated at the end of those 12 months, and be re-architected -- almost as if it were made of Lego blocks.

Gardner: More moving parts, less time.

Reyenger: Absolutely.

Gardner: How do you accomplish that? 

Reyenger: You leverage different cloud service providers, different managed services providers, and traditional value-added resellers, like International Integrated Solutions (IIS), in order to meet those business demands. We see a large push around automation, orchestration and auto-scaling. It’s becoming a way to achieve those business initiatives at that higher speed.

Gardner: There is a cloud continuum. You are choosing which workloads and what data should be on-premises, and what should be in a cloud, or multi-clouds. Trying to do this as a regular IT shop -- buying it, specifying, integrating it -- seems like it demands more than the traditional IT skills. How is the culture of IT adjusting? 

Reyenger: Every organization, including ours, has its own business transformation that they have to undergo. We think that we are extremely proactive. I see some companies that are developing in-house skill sets, and trying to add additional departments that would be more cloud-aware in order to meet those demands.

On the other side, you have folks that are leveraging partners like IIS, which has acumen within those spaces to supplement their bench, or they are building out a completely separate organization that will hopefully take them to the new frontier.

Gardner: Tell us about your company. What have you done to transform?

Get the

Updated Book

HPE Synergy for Dummies

Reyenger: IIS has spent 26 years building out an amazing book of business with amazing relationships with a lot of enterprise customers. But as times change, you need to be able to add additional practices like our cloud practice and our managed services practice. We have taken the knowledge we have around traditional IT services and then added in our internal developers and delivery consultants. They are very well-versed and aware of the new architecture. So we can marry the two together and help organizations reach that new end-state.

It's very easy for startups to go 100 percent to the cloud and just run with it. It’s different when you have 2,000 existing applications and you want to move to the future as well. It’s nice to have someone who understands both of those worlds -- and the appropriate way to integrate them. 

Gardner: I suppose there is no typical cloud engagement, but what is a common hurdle that organizations are facing as they go from that traditional IT mindset to the more cloud-centric thinking and hybrid deployment models? 

The cloud answer

Reyenger: The concept of auto-scaling or bursting has become very, very prevalent. You see that within different lines of business. Ultimately, they are all asking for essentially the same thing -- and the cloud is a pretty good answer.

At the same time, you really need to understand your business and the triggers. You need to be able to put the necessary intelligence together around those capabilities in order to make it really beneficial and align to the ebbs and flows of your business. So that's been one of the very, very common requests across the board.

We've built out solutions that include intellectual property from IIS and our developers, as well as cloud management tools built around backup to the cloud to eliminate tape and modernize backup for customers. This builds out a dedicated object store that customers can own that also tiers to the different public cloud providers out there.

And we’ve done this in a repeatable fashion so that our customers get the cloud consumption look and feel, and we’ve leveraged innovative contractual arrangements to allow customers to consume against the scope of work rather than on lease. We’ve been able to marry that with the different standardized offerings out there to give someone the head start that they need in order to achieve their objectives. 

Gardner: You brought up the cloud consumption model. Organizations want the benefit of a public cloud environment and user experience for bursting, auto-scaling, and price efficiency. They might want to have workloads on-premises, to use a managed service, or take advantage of public clouds under certain circumstances.

How are you working with companies like Hewlett Packard Enterprise (HPE), for example, to provide composable auto-scaling capabilities with the look and feel of public cloud on their private cloud?

Get the

Updated Book

HPE Synergy for Dummies

Reyenger: Now it’s becoming a multi-cloud strategy. It’s one thing to say only on-premises and using one cloud. But using just one cloud has risk, and this is a problem.

We try to standardize everything through a single cloud management stack for our customers. We’re agnostic to a whole slew of toolsets around both orchestration and automation. We want to help them achieve that.

Intelligent platform performance

We looked at some of the very unique things that HPE has done, specifically around their Synergy platform, to allow for cloud management and cloud automation to deliver true composable infrastructure. That has huge value around energizing a company’s goals, strengthening their profitability, boosting productivity, and enhancing innovation. We've been able to extend that into the public cloud. So now we have customers that truly are getting the best of both worlds.

Composable infrastructure is having true infrastructure that you can deploy as code. It’s being able to standardize on a single RESTful API set. 

Gardner: How do you define composable infrastructure? 

Reyenger: It’s having true infrastructure that you can deploy as code. You’ll hear a lot of folks say that and what it really means is being able to standardize on a single RESTful API set.

That allows your platform to have intelligence when you look at infrastructure as a service (IaaS), and then delivering things as either platform (PaaS) or software as a service (SaaS) -- from either a DevOps approach, or from the lines of business directly to consumers. So it’s the ability to bridge those two worlds.

Traditionally, you may have underlying infrastructure that doesn't have the intelligence or doesn't have the visibility into the cloud automation. So I may be scaling, but I can't scale into infinity. I really need an underlying infrastructure to be able to mold and adapt in order to meet those needs.

We’re finally reaching the point where we have that visibility and we have that capability, thanks to software-defined data center (SDDC) and a platform to ultimately be able to execute on. 

Gardner: When I think about composable infrastructure, I often wonder, “Who is the composer?” I know who composes the apps, that’s the developer -- but who composes the infrastructure?  

Reyenger: This gets to a lot of the digital transformation that we talked about in seeking different resources, or cultivating your existing resources to gain more of a developer’s view.

But now you have IT operations and DevOps both able to come under a single management console. They are able to communicate effectively and then script on either side in order to compose based on the code requirements. Or they can put guardrails on different segments of their workloads in order to dictate importance or assign guidelines. The developers can ultimately make those requests or modify the environment. 

Gardner: When you get to composable infrastructure in a data center or private cloud, that’s fine. But that’s sort of like 2D Chess. When I think about multi-cloud or hybrid cloud -- it’s more like 3D Chess. So how do I compose infrastructure, and who is the composer, when it comes to deciding where to support a workload in a certain way, and at what cost?

Consult before composing

Reyenger: We offer a series of consulting services around the delivery of managed services and the actual development to take an existing cloud management stack -- whether that is Red Hat CloudForms, vRealize from VMware, or Terraform -- it really doesn't matter.

We are ultimately allowing that to be the single pane of glass, the single console. And then because it’s RESTful API integrations into those public cloud providers, we’re able to provide that transparency from that management interface, which mitigates risk and gives you control.

Then we deploy things like Puppet, Chef, and Ansible within those different virtual private clouds and within those public cloud fabrics. Then, using that cloud management stack, you can have uniformity and you can take that composition and that intelligence and bring it wherever you like -- whether that's based on geography or a particular cloud service provider preference.

There are many different ways to ultimately achieve that end-state. We just want to make sure that that standardization, to your point, doesn’t get lost the second you leave that firewall.

Get the

Updated Book

HPE Synergy for Dummies

Gardner: We are in the early days of composability of infrastructure in a multi-cloud world. But as the complexity and scale increases, it seems likely to me that we are going to need to bring things like machine learning and artificial intelligence (AI) because humans doing this manually will run out of runway.

Projecting into the future, do you see a role for an algorithmic, programmatic approach putting in certain variables, certain thresholds, and contextual learning to then make this composable infrastructure capability part of a machine process? 

Reyenger: The things that companies like HPE have done, and their new acquisition, Nimble, as well as at Red Hat, and several others in the industry, to leverage the intelligence they have from all of their different support calls and lifecycle management across applications allows them to provide feedback to the customer.

And in some cases, if you are tying it back from an automation engine that will actually give you the information as to how to solve your problem. A lot of the precursors to what you are talking about are already in the works and everyone is trying to be that data-cloud management company.

We will see more of that single pane of glass that they will leverage across multiple cloud providers. 

It's really early to ultimately pick favorites, but you are going to see more standardization. Rather than having 50 different RESTful APIs that everyone is standardizing on and that are constantly changing, so that I have to provide custom integrations. What we will see is more of that single pane of glass they will leverage across multiple cloud providers. That will leverage a lot of the same automation and orchestration toolsets that we talked about. 

Gardner: And HPE has their sights set on this with Project New Hybrid IT Stack? 

Reyenger: 100 percent. 

Gardner: Looking at composable infrastructure, auto-scaling, using things like HPE Synergy, if you’re an enterprise and you do this right, how do you take this up to the C-Suite and say, “Aha, we told you so. Now give us more so we can do more”? In other words, how does this improve business outcomes? 

Fulfilling the promise

Reyenger: Every organization is different. I’ve spent a good chunk of my career being tactically deployed within very large organizations that are trying to achieve certain goals.

For me, I like to go to a customer’s 10-K SEC filing and look at the promises they’ve made to their investors. We want to ultimately be able to marry back what this IT investment will do for the short-term goals that they are all being judged against, as well as from both the key performance indicators (KPI) standpoint and from the health of the company.

It means meeting DevOps challenges and timelines, ruling out new green space workload issues, and taking data that sits within traditional business intelligence (BI) relational databases and giving access to some of that data to different departments. They should be able to run big data analytics against that data from those departments in real-time.

These are the types of testing methodologies that we like to set up so that we can help a customer actually rationalize what this means today in terms of dollars and cents and what it could mean in terms of that perceived value. 

Gardner: When you do this well, you get agility, and you get to choose your deployment models. It seems to me that there's going to be a concept that arises of minimal viable cloud, or hybrid cloud.

Are we going to see IT costs at an operating level adjusted favorably? Is this something that ultimately will be so optimized -- with higher utilization, leveraging the competitive market for cloud services -- that meaningful decreases will occur in the total operating costs of IT in an organization?

An uphill road to lower IT costs

Reyenger: I definitely think that it’s quite possible. The way that most organizations are set up today, IT operations rolls back into finance. So if you sit underneath the CFO, like most organizations do, and a request gets made by marketing or sales or another line of business -- it has to go up the chain, get translated, and then come back down.

A lot of times it's difficult to push a rock up a hill. You don’t have all the visibility unless you can get back up to finance or back over to that line of business. If you are able to break down those silos, then I believe that your statement is 100 percent true.

But changing all of those internal controls for a lot of these organizations is very difficult, which is why some are deploying net-new teams to be ultimately the future of their internal IT service provider operations.

Get the

Updated Book

HPE Synergy for Dummies

Gardner: Arthur, I have been in this business long enough to know that every time we’ve gotten into the point where we think we are going to meaningfully decrease IT costs, some other new paradigm of IT comes up that requires a whole new round of investment. But it seems to me that this could be different this time, that we actually are getting to a standardized approach for supporting workloads and that traditional economics that impact any procurement service will become in effect here, too.

Mining to minimize risk

Reyenger: Absolutely. One of our big pushes has been around object storage. This still allows for traditional file- and block-level support. We are trying to help customers achieve that new economic view -- of which cloud approach ultimately provides them that best price point, but still gives them low risk, visibility, and control over their data.

I will give you an example. There is a very large financial exchange that had a lot of intellectual property (IP) data that they traditionally mined internally, and then they provided it back to different, smaller financial institutions as a service, as financial reports. A few years back, they came to us and said, “I really want to leverage the agility of Amazon Web Services (AWS) in terms of being able to spin up a huge Hadoop form and mine this data very, very quickly -- and leverage that without having to increase my overall cost. But I don’t feel comfortable providing that data into S3 within AWS, where now they have two extra copies of my data as part of the service level agreement. So what do I do?”

And we ultimately stood up the same object storage service next to AWS, so you wouldn’t have to pay any data eviction fees, and you could mine everything right there, leveraging the AWS Redshift, or Hadoop-as-a-service. 

Then once these artifacts, or these reports, were created, they no longer had the IP. The reports came from the IP, but these are all roll-ups and comparisons, and now they are not sensitive to the company. We went ahead and put those into S3 and allowed Amazon to manage all of their customers’ identity and access management to go ahead and get access to that -- and that all minimized risk for this exchange. We are able to prevent anyone outside of the organization to get behind the firewall to get at their data. You don’t have to worry about the SLAs associated with keeping this stuff up and available and it became a really nice hybrid story.

We help customers gain all the benefits associated with cloud – without taking on any of the additional risk.

These are the types of projects that we really like to work on with customers, to be able to help them gain all the benefits associated with cloud – without taking on any of the additional risk, or the negatives, associated with jumping into cloud with both feet. 

Gardner: You heard your customers, you saw a niche opportunity for object storage as a service, and you have put that together. I assume that you want a composable infrastructure to do that. So is this something on a HPE Synergy a future foundation? 

Reyenger: HPE Synergy doesn’t really have the disk density to get to the public cloud price point, but it does support object storage natively. So it's great from a DevOps standpoint for object storage. We definitely think that as time progresses and HPE continues down the Synergy roadmap that that cloud role will eventually fix itself.

A lot of the cloud role is centered on hyper-converged infrastructure. And in this kind of mantra, I don’t see compute and storage growing at the same rates. I see storage growing considerably faster than the need for compute. So this is a way for us to be able to help supplement a Synergy deployment, or we can help our customers get the true ROI/TCO they are looking for out of the hyper-converged. 

Gardner: So maybe the question I should ask is what storage providers are you using in order to make this economically viable?

Get the

Updated Book

HPE Synergy for Dummies

Reyenger:  We are absolutely using the HPE Apollo storage line, and the different flavors of solid-state disks (SSD) down to SATA physical drives. And we are leveraging best-in-breed object storage software from Red Hat. We also have an OpenStack flavor as well.

We leverage things like automation and orchestration technologies, and our ServiceNow capabilities -- all married with our RIP in order to give customers the choice of buying this, deploying it, and having us layer services on top if you want or if you want to consume a fully managed service for something that’s on-premises. I have a per-GB price and the same SLAs as those public cloud providers. So all of it’s coming together to allow customers to really have the true choice and flexibility that everyone claimed you could years ago.

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:

As enterprises face hybrid IT complexity, new management solutions beckon

The next BriefingsDirect Voice of the Analyst interview examines how new machine learning and artificial intelligence (AI) capabilities are being applied to hybrid IT complexity challenges.

We'll explore how mounting complexity and a lack of multi-cloud services management maturity must be solved in order for businesses to 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 companies and IT leaders are seeking new means to manage an increasingly complex transition to sustainable hybrid IT is Paul Teich, Principal Analyst at TIRIAS Research in Austin, Texas. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.


Here are some excerpts:

Gardner: Paul, there’s a lot of evidence that businesses are adopting cloud models at a rapid pace. There is also lingering concern about the complexity of managing so many fast-moving parts. We have legacy IT, private cloud, public cloud, software as a service (SaaS) and, of course, multi-cloud. So as someone who tracks technology and its consumption, how much has technology itself been tapped to manage this sprawl, if you will, across hybrid IT.

Teich

Teich

Teich: So far, not very much, mostly because of the early state of multi-cloud and the hybrid cloud business model. As you know, it takes a while for management technology to catch up with the actual compute technology and storage. So I think we are seeing that management is the tail of the dog, it’s getting wagged by the rest of it, and it just hasn’t caught up yet.

Gardner: Things have been moving so quickly with cloud computing that few organizations have had an opportunity to step back and examine what’s actually going on around them -- never mind properly react to it. We really are playing catch up.

Teich: As we look at the options available, the cloud giants -- the public cloud services -- don’t have much incentive to work together. So you are looking at a market where there will be third parties stepping in to help manage multi-cloud environments, and there’s a lag time between having those services available and having the cloud services available and then seeing the third-party management solution step in.

Gardner: It’s natural to see that a specific cloud environment, whether it’s purely public like AWS or a hybrid like Microsoft Azure and Azure Stack, want to help their customers, but they want to help their customers all get to their solutions first and foremost. It’s a natural thing. We have seen this before in technology.

There are not that many organizations willing to step into the neutral position of being ecumenical, of saying they want to help the customer first, manage it all from the first.

As we look to how this might unfold, it seems to me that the previous models of IT management -- agent-based, single-pane-of-glass, and unfortunately still in some cases spreadsheets and Post-It notes -- have been brought to bear on this. But we might be in a different ball game, Paul, with hybrid IT, that there’s just too many moving parts, too much complexity, and that we might need to look at data-driven approaches. What is your take on that?

Learn More About

Hybrid IT Management

Solutions From HPE

Teich: I think that’s exactly correct. One of the jokes in the industry right now is if you want to find your stranded instances in the cloud, cancel your credit card and AWS or Microsoft will be happy to notify you of all of the instances that you are no longer paying for because your credit card expired. It’s hard to keep track of this, because we don’t have adequate tools yet.

When you are an IT manager and you have a lot of folks on public cloud services, you don't have a full picture.

That single pane of glass, looking at a lot of data and information, is soon overloaded. When you are an IT manager, you are at a mid-sized or a large corporation, you have a lot of folks paying out-of-pocket right now, slapping a credit card down on public cloud services, so you don’t have a full picture. Where you do have a picture, there are so many moving parts.

I think we have to get past having a screen full of data, a screen full of information, and to a point where we have insight. And that is going to require a new generation of tools, probably borrowing from some of the machine learning evolution that’s happening now in pattern analytics.

Gardner: The timing in some respects couldn’t be better, right? Just as we are facing this massive problem of complexity of volume and velocity in managing IT across a hybrid environment, we have some of the most powerful and cost-effective means to deal with big data problems just like that.

Life in the infrastructure

Paul, before we go further let’s hear about you and your organization, and tell us, if you would, what a typical day is like in the life of Paul Teich?

Teich: At TIRIAS Research we are boutique industry analysts. By boutique we mean there are three of us -- three principal analysts; we have just added a few senior analysts. We are close to the metal. We live in the infrastructure. We are all former engineers and/or product managers. We are very familiar with deep technology.

My day tends to be first, a lot of reading. We look at a lot of chips, we look at a lot of service-level information, and our job is to, at a very fundamental level, take very complex products and technologies and surface them to business decision-makers, IT decision-makers, folks who are trying to run lines of business (LOB) and make a profit. So we do the heavy lifting on why new technology is important, disruptive, and transformative.

Gardner: Thanks. Let’s go back to this idea of data-driven and analytical values as applied to hybrid IT management and complexity. If we can apply AI and machine learning to solve business problems outside of IT -- in such verticals as retail, pharmaceutical, transportation -- with the same characteristics of data volume, velocity, and variety, why not apply that to IT? Is this a case of the cobbler’s kids having no shoes? You would think that IT would be among the first to do this.

Dig deep, gain insight

Teich: The cloud giants have already implemented systems like this because of necessity. So they have been at the front-end of that big data mantra of volume, velocity -- and all of that.

To successfully train for the new pattern recognition analytics, especially the deep learning stuff, you need a lot of data. You can’t actually train a system usefully without presenting it with a lot of use cases.

The public clouds have this data. They are operating social media services, large retail storefronts, and e-tail, for example. As the public clouds became available to enterprises, the IT management problem ballooned into a big data problem. I don’t think it was a big data problem five or 10 years ago, but it is now.

That’s a big transformation. We haven’t actually internalized what that means operationally when your internal IT department no longer runs all of your IT jobs anymore.

We are generating big data and that means we need big data tools to go analyze it and to get that relevant insight.

That’s the biggest sea change -- we are generating big data in the course of managing our IT infrastructure now, and that means we need big data tools to go analyze it, and to get that relevant insight. It’s too much data flowing by for humans to comprehend in real time.

Gardner: And, of course, we are also talking about islands of such operational data. You might have a lot of data in your legacy operations. You might have tier 1 apps that you are running on older infrastructure, and you are probably happy to do that. It might be very difficult to transition those specific apps into newer operating environments.

You also have multiple SaaS and cloud data repositories and logs. There’s also not only the data within those apps, but there’s the metadata as to how those apps are running in clusters and what they are doing as a whole. It seems to me that not only would you benefit from having a comprehensive data and analytics approach for your IT operations, but you might also have a workflow and process business benefit by being an uber analyst, by being on top of all of these islands of operational data. 

Learn More About

Hybrid IT Management

Solutions From HPE

To me, moving toward a comprehensive intelligence and data analysis capability for IT is the gift that keeps giving. You would then be able to also provide insight for an uber approach to processes across your entire organization -- across the supply chains, across partner networks, and back to your customers. Paul, do you also see that there’s an ancillary business benefit to having that data analysis capability, and not ceding it to your cloud providers?

Manage data, improve workflow

Teich: I do. At one end of the spectrum it’s simply what do you need to do to keep the lights on, where is your data, all of it, in the various islands and collections and the data you are sharing with your supply chain as well. Where is the processing that you can apply to that data? Increasingly, I think, we are looking at a world in which the location of the stored data is more important than the processing power.

The management of all the data you have needs to segue into visible workflows.

We have processing power pretty much everywhere now. What’s key is moving data from place to place and setting up the connections to acquire it. It means that the management of all the data you have needs to segue into visible workflows.

Once I know what I have, and I am managing it at a baseline effectively, then I can start to improve my processes. Then I can start to get better workflows, internally as well as across my supply chain. But I think at first it’s simply, “What do I have going on right now?”

As an IT manager, how can I rein in some of these credit card instances, credit card storage on the public clouds, and put that all into the right mix. I have to know what I know first -- then I can start to streamline. Then I can start to control my costs. Does that make sense?

Gardner: Yes, absolutely. And how can you know which people you want to give even more credit to on their credit cards – and let them do more of what they are doing? It might be very innovative, and it might be very cost-effective. There might also be those wasting money, spinning their wheels, repaving cow paths, over and over again.

If you don’t have the ability to make those decisions with insight, without the visibility, and then further analyze it as to how best to go about it – it seems to me a no-brainer.

It also comes at an auspicious time as IT is trying to re-factor its value to the organization. If in fact they are no longer running servers and networks and keeping the trains running on time, they have to start being more in the business of defining what trains should be running and then how to make them the best business engines, if you will.

If IT departments needs to rethink their role and step up their game, then they need to use technologies like advanced hybrid IT management from vendors with a neutral perspective. Then they become the overseers of operations at a fundamentally different level. 

Data revelation, not revolution

Teich: I think that’s right. It’s evolutionary stuff. I don’t think it’s revolutionary. I think that in the same way you add servers to a virtual machine farm, as your demand increases, as your baseline demand increases, IT needs to keep a handle on costs -- so you can understand which jobs are running where and how much more capacity you need.

One of the things they are missing with random access to the cloud is bulk purchasing. And so at a very fundamental level, helping your organization manage which clouds you are spending on by aggregating the purchase of storage, aggregating the purchase of compute instances to get just better buying power, doing price arbitrage when you can. To me, those are fundamental qualities of IT going forward in a multi-cloud environment.

They are extensions of where we are today; it just doesn’t seem like it yet. They have always added new servers to increasing internal capacity and this is just the next evolutionary step.

Gardner: It certainly makes sense that you would move as maturity occurs in any business function toward that orchestration, automation and optimization – rather than simply getting the parts in place. What you are describing is that IT is becoming more like a procurement function and less like a building, architecture, or construction function, which is just as powerful.

Not many people can make those hybrid IT procurement decisions without knowing a lot about the technology. Someone with just business acumen can’t walk in and make these decisions. I think this is an opportunity for IT to elevate itself and become even more essential to the businesses.

Teich: The opportunity is a lot like the Sabre airline scheduling system that nearly every airline uses now. That’s a fundamental capability for doing business, and it’s separate from the technology of Sabre. It’s the ability to schedule -- people and airplanes – and it’s a lot like scheduling storage and jobs on compute instances. So I think there will be this step.

But to go back to the technology versus procurement, I think some element of that has always existed in IT in terms of dealing with vendors and doing the volume purchases on one side, but also having some architect know how to compose the hardware and the software infrastructure to serve those applications.

Connect the clouds

We’re simply translating that now into a multi-cloud architecture. How do I connect those pieces? What network capacity do I need to buy? What kind of storage architectures do I need? I don’t think that all goes away. It becomes far more important as you look at, for example, AWS as a very large bag of services. It’s very powerful. You can assemble it in any way you want, but in some respect, that’s like programming in C. You have all the power of assembly language and all the danger of assembly language, because you can walk up in the memory and delete stuff, and so, you have to have architects who know how to build a service that’s robust, that won’t go down, that serves your application most efficiently and all of those things are still hard to do.

So, architecture and purchasing are both still necessary. They don’t go away. I think the important part is that the orchestration part now becomes as important as deploying a service on the side of infrastructure because you’ve got multiple sets of infrastructure.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: For hybrid IT, it really has to be an enlightened procurement, not just blind procurement. And the people in the trenches that are just buying these services -- whether the developers or operations folks -- they don’t have that oversight, that view of the big picture to make those larger decisions about optimization of purchasing and business processes.

That gets us back to some of our earlier points of, what are the tools, what are the management insights that these individuals need in order to make those decisions? Like with Sabre, where they are optimizing to fill every hotel room or every airplane seat, we’re going to want in hybrid IT to fill every socket, right? We’re going to want all that bare metal and all those virtualization instances to be fully optimized -- whether it’s your cloud or somebody else’s.

It seems to me that there is an algorithmic approach eventually, right? Somebody is going to need to be the keeper of that algorithm as to how this all operates -- but you can’t program that algorithm if you don’t have the uber insights into what’s going on, and what works and what doesn’t.

What’s the next step, Paul, in terms of the technology catching up to the management requirements in this new hybrid IT complex environment?

Teich: People can develop some of that experience on a small scale, but there are so many dimensions to managing a multi-cloud, hybrid IT infrastructure business model. It’s throwing off all of this metadata for performance and efficiency. It’s ripe for machine learning.

We're moving so fast right now that if you are an organization of any size, machine learning has to come into play to help you get better economies of scale.

In a strong sense, we’re moving so fast right now that if you are an organization of any size, machine learning has to come into play to help you get better economies of scale. It’s just going to be looking at a bigger picture, it’s going to be managing more variables, and learning across a lot more data points than a human can possibly comprehend.

We are at this really interesting point in the industry where we are getting deep-learning approaches that are coming online cost effectively; they can help us do that. They have a little while to go before they are fully mature. But IT organizations that learn to take advantage of these systems now are going to have a head start, and they are going to be more efficient than their competitors.

Gardner: At the end of the day, if you’re all using similar cloud services then that differentiation between your company and your competitor is in how well you utilize and optimize those services. If the baseline technologies are becoming commoditized, then optimization -- that algorithm-like approach to smartly moving workloads and data, and providing consumption models that are efficiency-driven -- that’s going to be the difference between a 1 percent margin and a 5 percent margin over time.

The deep-learning difference

Teich: The important part to remember is that these machine-training algorithms are somewhat new, so there are several challenges with deploying them. First is the transparency issue. We don’t quite yet know how a deep-learning model makes specific decisions. We can’t point to one aspect and say that aspect is managing the quality of our AWS services, for example. It’s a black box model.

We can’t yet verify the results of these models. We know they are being efficient and fast but we can’t verify that the model is as efficient as it could possibly be. There is room for improvement over the next few years. As the models get better, they’ll leave less money on the table.

We’re also validating that when you build a machine-learning model that it’s covering all the situations you want it to cover. You need an audit trail for specific sets of decisions, especially with data that is subject to regulatory constraints. You need to know why you made decisions.

So the net is, once you are training a machine-learning model, you have to keep retraining it over time. Your model is not going to do the same thing as your competitor's model. There is a lot of room for differentiation, a lot of room for learning. You just have to go into it with your eyes open that, yeah, occasionally things will go sideways. Your model might do something unexpected, and you just have to be prepared for that. We’re still in the early days of machine learning.

Gardner: You raise an interesting point, Paul, because even as the baseline technology services in the multi-cloud era become commoditized, you’re going to have specific, unique, and custom approaches to your own business’ management.

Your hybrid IT optimization is not going to be like that of any other company. I think getting that machine-learning capability attuned to your specific hybrid IT panoply of resources and assets is going to be a gift that keeps giving. Not only will you run your IT better, you will run your business better. You’ll be fleet and agile.

If some risk arises -- whether it’s a cyber security risk, a natural disaster risk, a business risk of unintended or unexpected changes in your supply chain or in your business environment -- you’re going to be in a better position to react. You’re going to have your eyes to the ground, you’re going to be well tuned to your specific global infrastructure, and you’ll be able to make good choices. So I am with you. I think machine learning is essential, and the sooner you get involved with it, the better.

Before we sign off, who are the vendors and some of the technologies that we will look to in order to fill this apparent vacuum on advanced hybrid IT management? It seems to me that traditional IT management vendors would be a likely place to start.

Who’s in?

Teich: They are a likely place to start. All of them are starting to say something about being in a multi-cloud environment, about being in a multi-cloud-vendor environment. They are already finding themselves there with virtualization, and the key is they have recognized that they are in a multi-vendor world.

There are some start-ups, and I can’t name them specifically right now. But a lot of folks are working on this problem of how do I manage hybrid IT: In-house IT, and multi-cloud orchestration, a lot of work going on there. We haven’t seen a lot of it publicly yet, but there is a lot of venture capital being placed.

I think this is the next step, just like PCs came in the office, smartphones came in the office as we move from server farms to the clouds, going from cloud to multi-cloud, it’s attracting a lot of attention. The hard part right now is nailing whom to place your faith in. The name brands that people are buying their internal IT from right now are probably good near-term bets. As the industry gets more mature, we’ll have to see what happens.

Learn More About

Hybrid IT Management

Solutions From HPE

Gardner: We did hear a vision described on this from Hewlett Packard Enterprise (HPE) back in June at their Discover event in Las Vegas. I’m expecting to hear quite a bit more on something they’ve been calling New Hybrid IT Stack that seems to possess some of the characteristics we’ve been describing, such as broad visibility and management.

So at least one of the long-term IT management vendors is looking in this direction. That’s a place I’m going to be focusing on, wondering what the competitive landscape is going to be, and if HPE is going to be in the leadership position on hybrid IT management.

Teich: Actually, I think HPE is the only company I’ve heard from so far talking at that level. Everybody is voicing some opinion about it, but from what I’ve heard, it does sound like a very interesting approach to the problem.

Microsoft actually constrained their view on Azure Stack to a very small set of problems, and is actively saying, “No, I don’t.” If you’re looking at doing virtual machine migration and taking advantage of multi-cloud for general-purpose solutions, it’s probably not something that you want to do yet. It was very interesting for me then to hear about the HPE Project New Hybrid IT Stack and what HPE is planning to do there.

Gardner: For Microsoft, the more automated and constrained they can make it, the more likely you’d be susceptible or tempted to want to just stay within an Azure and/or Azure Stack environment. So I can appreciate why they would do that.

Before we sign off, one other area I’m going to be keeping my eyes on is around orchestration of containers, Kubernetes, in particular. If you follow orchestration of containers and container usage in multi-cloud environments, that’s going to be a harbinger of how the larger hybrid IT management demands are going to go as well. So a canary in the coal mine, if you will, as to where things could get very interesting very quickly.

The place to be

Teich: Absolutely. And I point out that the Linux Foundation’s CloudNativeCon in early December 2017 looks like the place to be -- with nearly everyone in the server infrastructure community and cloud infrastructure communities signing on. Part of the interest is in basically interchangeable container services. We’ll see that become much more important. So that sleepy little technical show is going to be invaded by “suits,” this year, and we’re paying a lot of attention to it.

Gardner: Yes, I agree. I’m afraid we’ll have to leave it there. Paul, how can our listeners and readers best follow you to gain more of your excellent insights?

Teich: You can follow us at www.tiriasresearch.com, and also we have a page on Forbes Tech, and you can find us there.

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:

Inside story: How Ormuco abstracts the concepts of private and public cloud across the globe

The next BriefingsDirect cloud ecosystem strategies interview explores how a Canadian software provider delivers a hybrid cloud platform for enterprises and service providers alike.

We'll now learn how Ormuco has identified underserved regions and has crafted a standards-based hybrid cloud platform to allow its users to attain world-class cloud services just about anywhere.

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

Here to help us explore how new breeds of hybrid cloud are coming to more providers around the globe thanks to the Cloud28+ consortium is Orlando Bayter, CEO and Founder of Ormuco in Montréal, and Xavier Poisson Gouyou Beachamps, Vice President of Worldwide Indirect Digital Services at Hewlett Packard Enterprise (HPE), based in Paris. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Let’s begin with this notion of underserved regions. Orlando, why is it that many people think that public cloud is everywhere for everyone when there are many places around the world where it is still immature? What is the opportunity to serve those markets?

Bayter: There are many countries underserved by the hyperscale cloud providers. If you look at Russia, United Arab Emirates (UAE), around the world, they want to comply with regulations on security, on data sovereignty, and they need to have the clouds locally to comply.

Bayter

Bayter

Ormuco targets those countries that are underserved by the hyperscale providers and enables service providers and enterprises to consume cloud locally, in ways they can’t do today.

Gardner: Are you allowing them to have a private cloud on-premises as an enterprise? Or do local cloud providers offer a common platform, like yours, so that they get the best of both the private and public hybrid environment?

Bayter: That is an excellent question. There are many workloads that cannot leave the firewall of an enterprise. With that, you now need to deliver the economies, ease of use, flexibility, and orchestration of a public cloud experience in the enterprise. At Ormuco, we deliver a platform that provides the best of the two worlds. You are still leaving your data center and you don't need to worry whether it’s on-premises or off-premises.

It's a single pane of glass. You can move the workloads in that global network via established providers throughout the ecosystem of cloud services.

It’s a single pane of glass. You can move the workloads in that global network via established providers throughout the ecosystem of cloud services.

Gardner: What are the attributes of this platform that both your enterprise and service provider customers are looking for? What’s most important to them in this hybrid cloud platform?

Bayter: As I said, there are some workloads that cannot leave the data center. In the past, you couldn’t get the public cloud inside your data center. You could have built a private cloud, but you couldn’t get an Amazon Web Services (AWS)-like solution or a Microsoft Azure-like solution on-premises.

We have been running this now for two years and what we have noticed is that enterprises want to have the ease-of-use, sales, service, and orchestration on-premises. Now, they can connect to a public cloud based on the same platform and they don’t have to worry about how to connect it or how it will work. They just decide where to place this.

They have security, can comply with regulations, and gain control -- plus 40 percent savings compared with VMware, and up to 50 percent to 60 percent compared with AWS.

Gardner: I’m also interested in the openness of the platform. Do they have certain requirements as to the cloud model, such as OpenStack?  What is it that enables this to be classified as a standard cloud?

Bayter: At Ormuco, we went out and checked what are the best solutions and the best platform that we can bring together to build this experience on-premises and off-premises.

We saw OpenStack, we saw Docker, and then we saw how to take, for example, OpenStack and make it like a public cloud solution. So if you look at OpenStack, the way I see it is as concrete, or a foundation. If you want to build a house or a condo on that, you also need the attic. Ormuco builds that software to be able to deliver that cloud look and feel, that self-service, all in open tools, with the same APIs both on private and public clouds.

Learn How Cloud 28+

Provides an Open Community

Of Cloud Service Providers

Gardner: What is it about the HPE platform beneath that that supports you? How has HPE been instrumental in allowing that platform to be built?

Community collaboration

Bayter: HPE has been a great partner. Through Cloud28+ we are able to go to markets in places that HPE has a presence. They basically generate that through marketing, through sales. They were able to bring deals to us and help us grow our business.

From a technology perspective, we are using HPE Synergy. With Synergy, we can provide composability, and we can combine storage and compute into a single platform. Now we go together into a market, we win deals, and we solve the enterprise challenges around security and data sovereignty.

Gardner: Xavier, how is Cloud28+ coming to market, for those who are not familiar with it? Tell us a bit about Cloud28+ and how an organization like Ormuco is a good example of how it works.

Poisson: Cloud28+ is a community of IT players -- service providers, technology partners, independent software vendors (ISVs), value added resellers, and universities -- that have decided to join forces to enable digital transformation through cloud computing. To do that, we pull our resources together to have a single platform. We are allowing the enterprise to discover and consume cloud services from the different members of Cloud28+.

We launched Cloud28+ officially to the market on December 15, 2016. Today, we have more than 570 members from across the world inside Cloud28+. Roughly 18,000 distributed services may be consumed and we also have system integrators that support the platform. We cover more than 300 data centers from our partners, so we can provide choice.

In fact, we believe our customers need to have that choice. They need to know what is available for them. As an analogy, if you have your smartphone, you can have an app store and do what you want as a consumer. We wanted to do the same and provide the same ease for an enterprise globally anywhere on the planet. We respect diversity and what is happening in every single region.

Ormuco has been one of the first technology partners. Docker is another one. And Intel is another. They have been working together with HPE to really understand the needs of the customer and how we can deliver very quickly a cloud infrastructure to a service provider and to an enterprise in record time. At the same time, they can leverage all the partners from the catalog of content and services, propelled by Cloud28+, from the ISVs.

Global ecosystem, by choice 

Because we are bringing together a global ecosystem, including the resellers, if a service provider builds a project through Cloud28+, with a technology partner like Ormuco, then all the ISVs are included. They can push their services onto the platform, and all the resellers that are part of the ecosystem can convey onto the market what the service providers have been building.

We have a lot of collaboration with Ormuco to help them to design their solutions. Ormuco has been helping us to design what Cloud28+ should be, because it's a continuous improvement approach on Cloud28+ and it’s via collaboration.

If you want to join Cloud28+ to take, don't come. If you want to give, and take a lot afterward, yes, please come, because we all receive a lot.

As I like to say, “If you want to join Cloud28+ to take, don't come. If you want to give, and take a lot afterward, yes, please come, because we all receive a lot.”

Gardner: Orlando, when this all works well, whatdo your end-users gain in terms of business benefits? You mentioned reduction in costs, that's very important, of course. But is there more about your platform from a development perspective and an operational perspective that we can share to encourage people to explore it?

Bayter: So imagine yourself with an ecosystem like Cloud28+. They have 500 members. They have multiple countries, many data centers.

Now imagine that you can have the Ormuco solution on-premises in an enterprise and then be able to burst to a global network of service providers, across all those regions. You get the same performance, you get the same security, and you get the same compliance across all of that.

For an end-customer, you don’t need to think anymore where you’re going to put your applications. They will go to the public cloud, they will go to the private cloud. It is agnostic. You basically place it where you want it to go and decide the economies you want to get. You can compare with the hyperscale providers.

That is the key, you get one platform throughout our ecosystem of partners that can deliver to you that same functionality and experience locally. With a community such as Cloud28+, we can accomplish something that was not possible before.

Gardner: So, just hoping to delineate between the development and then the operations in production. Are you offering the developer an opportunity to develop there and seamlessly deploy, or are you more focused on the deployment after the applications are developed, or both?

Development to deployment 

Bayter: With our solution, same as AWS or Azure allows, a developer can develop their app via APIs, automated, use a database of choice (it could be MySQL, Oracle), and the load balancing and the different features we have in the cloud, whether it’s Kubernetes or Docker, build all that -- and then when the application is ready, you can decide in which region you want to deploy the application.

So you go from development, to deployment technology of your choice, whether it’s Docker or Kubernetes, and then you can deploy to the global network that we’re building on Cloud28+. You can go to any region, and you don’t have to worry about how to get a service provider contract in Russia, or how do I get a contract in Brazil? Who is going to provide me with the service? Now you can get that service locally through a reseller, a distributor, or have an ISV deploythe software worldwide.

Gardner: Xavier, what other sorts of organizations should be aware of the Cloud28+ network?

Learn How Cloud 28+

Provides an Open Community

Of Cloud Service Providers

Poisson: We have the technology partners like Ormuco, and we are thankful for what they have brought to the community. We have service providers, of course, software vendors, because you can publish your software in Cloud28+ and provision it on-premises or off-premises. We accelerate go-to-market for startups, they gain immediate global reach with Cloud28+. So to all the ISVs, I say, “Come on, come on guys, we will help you reach out to the market.”

System integrators also, because we see this is an opportunity for the large enterprises and governments with a lot of multi-cloud projects taking care, having requirements forsecurity. And you know what is happening with security today, it's a hot topic. So people are thinking about how they can have a multi-cloud strategy. System integrators are now turning to Cloud28+ because they find here a reservoir of all the capabilities to find the right solution to answer the right question.

Universities are another kind of member we are working with. Just to explain, we know that all the technologies are created first at the university and then they evolve. All the startups are starting at the university level. So we have some very good partnerships with some universities in several regions in Portugal, Germany, France, and the United States. These universities are designing new projects with members of Cloud28+, to answer questions of the governments, for example, or they are using Cloud28+ to propel the startups into the market.

Ormuco is also helping to change the business model of distribution. So distributors now also are joining Cloud28+. Why? Because a distributor has to make a choice for its consumers. In the past, a distributor had software inventory that they were pushing to the resellers. Now they need to have an inventory of cloud services.

There is more choice. They can purchase hyperscale services, resell, or maybe source to the different members of Cloud28+, according to the country they want to deliver to. Or they can own the platform using the technology of Ormuco, for example, and put that in a white-label model for the reseller to propel it into the market. This is what Azure is doing in Europe, typically. So new kinds of members and models are coming in.

Digital transformation

Lastly, an enterprise can use Cloud28+ to make their digital transformation. If they have services and software, they can become a supplier inside of Cloud28+. They source cloud services inside a platform, do digital transformation, and find a new go-to-market through the ecosystem to propel their offerings onto the global market.

Gardner: Orlando, do you have any examples that you could share with us of a service provider, ISV or enterprise that has white-labeled your software and your capabilities as Xavier has alluded to? That’s a really interesting model.

Bayter: We have been able to go-to-market to countries where Cloud28+ was a tremendous help. If you look at Western Europe, Xavier was just speaking about Microsoft Azure. They chose our platform and we are deploying it in Europe, making it available to the resellers to help them transform their consumption models.

They provide public cloud and they serve many markets. They provide a community cloud for governments and they provide private clouds for enterprises -- all from a single platform.

If you look at the Europe, Middle East and Africa (EMEA) region, we have one of the largest managed service providers. They provide public cloud and they serve many markets. They provide a community cloud for governments and they provide private clouds for enterprises -- all from a single platform.

We also have several of the largest telecoms in Latin America (LATAM) and EMEA. We have a US presence, where we have Managed.com as a provider. So things are going very well and it is largely thanks to what Cloud28+ has done for us.

Gardner: While this consortium is already very powerful, we are also seeing new technologies coming to the market that should further support the model. Such things as HPE New Stack, which is still in the works, HPE Synergy’s composability and auto-bursting, along with security now driven into the firmware and the silicon -- it’s almost as if HPE’s technology roadmap is designed for this very model, or very much in alignment. Tell us how new technology and the Cloud28+ model come together.

Bayter: So HPE New Stack is becoming the control point of multi-cloud. Now what happens when you want to have that same experience off-premises and on-premises? New Stack could connect to Ormuco as a resource provider, even as it connects to other multi-clouds.

With an ecosystem like Cloud28+ all working together, we can connect those hybrid models with service providers to deliver that experience to enterprises across the world.

Learn How Cloud 28+

Provides an Open Community

Of Cloud Service Providers

Gardner: Xavier, anything more in terms of how HPE New Stack and Cloud28+ fit? 

Partnership is top priority

Poisson: It’s a real collaboration. I am very happy with that because I have been working a long time at HPE, and New Stack is a project that has been driven by thinking about the go-to-market at the same time as the technology. It’s a big reward to all the Cloud28+ partners because they are now de facto considered as resource providers for our end-user customers – same as the hyperscale providers, maybe.

At HPE, we say we are in partnership first -- with our partners, or ecosystem, or channel. I believe that what we are doing with Cloud28+, New Stack, and all the other projects that we are describing – this will be the reality around the world. We deliver on-premises for the channel partners.

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

IoT capabilities open new doors for Miami telecoms platform provider Identidad IoT

The next BriefingsDirect Internet of Things (IoT) strategies insights interview focuses on how a Miami telecommunications products provider has developed new breeds of services to help manage complex edge and data scenarios.

We will now learn how IoT platforms and services help to improve network services, operations, and business goals -- for carriers and end users alike.

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

Here to help us explore what is needed to build an efficient IoT support business is Andres Sanchez, CEO of Identidad IoT in Miami. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: How has your business changed in the telecoms support industry and why is IoT such a big opportunity for you?

Sanchez: With the new OTT (Over the Top content) technology, and the way that it came into the picture and took part of the whole communications chain of business, the business is basically getting very tough in telecoms. When we begin evaluating what IoT can do and seeing the possibilities, this is a new wave. We understand that it's not about connectivity, it's not about the 10 percent of the value chain -- it's more about the solutions.

Sanchez

Sanchez

We saw a very good opportunity to start something new and to take the experience we have with the technology that we have in telecoms, and get new people, get new developers, and start building solutions, and that's what we are doing right now.

Gardner: So as the voice telecoms business trails off, there is a new opportunity at the edge for data and networks to extend for a variety of use cases. What are some the use cases that you are seeing now in IoT that is a growth opportunity for your business?

Sanchez: IoT is everywhere. The beauty of IoT is that you can find solutions everywhere you look. What we have found is that when people think about IoT, they think about connected home, they think about connected car, or the smart parking where it's just a green or red light when the parking is occupied or not. But IoT is more than that.

There are two ways to generate revenue in IoT. One is by having new products. The second is understanding what it is on the operational level that we can do better. And it’s in this way that we are putting in sensors, measuring things, and analyzing things. You can basically reduce your operational cost, or be more effective in the way that you are doing business. It's not only getting the information, it's using that information to automate processes that it will make your company better.

Gardner: As organizations recognize that there are new technologies coming in that are enabling this smart edge, smart network, what is it that’s preventing them from being able to take advantage of this?

Manage your solutions

with the HPE

Universal IoT Platform

Sanchez: Companies think that they just have to connect the sensors, that they only have to digitize their information. They haven’t realized that they really have to go through a digital transformation. It's not about connecting the sensors that are already there; it's building a solution using that information. They have to reorganize and to reinvent their organizations.

For example, it's not about taking a sensor, putting the sensor in the machine and just start taking information and watching it on a screen. It’s taking the information and being able to see and check special patterns, to predict when a machine is going to break, when a machine at certain temperatures starts to work better or worse. It's being able to be more productive without having to do more work. It’s just letting the machines do the work by themselves.

Gardner: A big part of that is bringing more of an IT mentality to the edge, creating a standard network and standard platforms that can take advantage of the underlying technologies that are now off-the-shelf.

Sanchez: Definitely. The approach that Identidad IoT takes is we are not building solutions based on what we think is good for the customer. What we are doing is building proof of concepts (PoCs) and tailored solutions for companies that need digital transformation.

I don’t think there are two companies doing the same thing that have the same problems. One manufacturer may have one problem, and another manufacturer using the same technology has another completely different problem. So the approach we are taking is that we generate a PoC, check exactly what the problems are, and then develop that application and solution.

But it's important to understand that IoT is not an IT thing. When we go to a customer, we don’t just go to an IT person, we go to the CEO, because this is a change of mentality. This is not just a change of process. This is not purely putting in new software. This is trying to solve a problem when you may not even know the problem is there. It's really digital transformation.

Gardner: Where is this being successful? Where are you finding that people really understand it and are willing to take the leap, change their culture, rethink things to gain advantages?

One solution at a time

Sanchez: Unfortunately, people are afraid of what is coming, because people don't understand what IoT is, and everybody thinks it's really complicated. It does need expertise. It does need to have security -- that is a very big topic right now. But it's not impossible.

When we approach a company and that CEO, CIO or CTO understands that the benefits of IoT will be shown once you have that solution built -- and that probably the initial solution is not going to be the final solution, but it's going to be based on iterations -- that’s when it starts working.

If people think it’s just an out-of-the-box solution, it's not going to work. That's the challenge we are having right now. The opportunity is when the head of the company understands that they need to go through a digital transformation.

Manage your solutions

with the HPE

Universal IoT Platform

Gardner: When you work with a partner like Hewlett PackardEnterprise (HPE), they have made big investments and developments in edge computing, such as Universal IoT Platform and Edgeline Systems. How does that help you as a solutions provider make that difficult transition for your customers easier, and encourage them to understand that it's not impossible, that there are a lot of solutions already designed for their needs?

Sanchez: Our relationship with HPE has been a huge success for Identidad IoT. When we started looking at platforms, when we started this company, we couldn't find the right platform to fulfill our needs. We were looking for a platform that we could build solutions on and then extrapolate that data with other data, and build other solutions over those solutions.

When we approached HPE, we saw that they do have a unique platform that allows us to generate whatever applications, for whatever verticals, for whatever organizations – whether a city or company. Even if you wanted to create a product just for end-users, they have the ability to do it.

Also, it's a platform that is so robust that you know it’s going to work, it’s reliable, and it’s very secure. You can build security from the device right on up to the platform and the applications. Other platforms, they don't have that.

Our business model correlates a lot with the HPE business model. We think that IoT is about relationships and partnerships -- it’s about an ecosystem. The approach that HPE has to IoT and to ecosystem is exactly the same approach that we have. They are building this big ecosystem of partners. They are helping each other to build relationships and in that way, they build a better and more robust platform.

Gardner: For companies and network providers looking to take advantage of IoT, what would you suggest that they do in preparation? Is there a typical on-ramp to an IoT project? 

A leap of faith

Sanchez: There's no time to be prepared right now. I think they have to take a leap of faith and start building the IoT applications. The pace of the technology transformation is incredible.

When you see the technology right now, today -- probably in four months it's going to be obsolete. You are going to have even better technology, a better sensor. So if you wait --most likely the competition is not going to wait and they will have a very big advantage.

Our approach at Identidad IoT is about platform-as-a-service (PaaS). We are helping companies take that leap without having to create very big financial struggles. And the companies will know that by our using the HPE platform, they are using the state-of-the-art platform. They are not using just a mom-and pop-platform built in a garage. It's a robust PaaS -- so why not to take that leap of faith and start building it? Now is the time.

Gardner: Once you pick up that success, perhaps via a PoC, that gives you ammunition to show economic and productivity benefits that then would lead to even more investment. It seems like there is a virtuous adoption cycle potential here.

Sanchez: Definitely! Once we start a new solution, usually the people who are seeing that solution, they start seeing things that they are not used to seeing. They can pinpoint problems that they have been having for years – but they didn't understand why.

For example, there's one manufacturer of T-shirts in Colombia. They were having issues with one specific machine. That machine used to break after two or three weeks. There was just this small piece that was broken. When we installed the sensor and we started gathering their information, after two or three breaks, we understood that it was not the amount of work -- it was the temperature at which the machine was working.

So what they did is once the temperature reached a certain point, we automatically started some fans to normalize the temperature, and then they haven't had any broken pieces for months. It was a simple solution, but it took a lot of study and gathering of information to be able to understand that break point -- and that's the beauty of IoT.

Gardner: It's data-driven, it's empirical, it’s understood, but you can't know what you don't know until you start measuring things, right?

Listen to things

Sanchez: Exactly! I always say that the “things” are trying to say something, and we are not listening. IoT enables the people, the companies, and the organization to start listening to the things, and not only to start listening, but to make the things to work for us. We need the applications to be able to trigger something to fix the problem without any human intervention -- and that's also the beauty of IoT.

Gardner: And that IoT philosophy even extends to healthcare, manufacturing, transportation, any place where you have complexity, it is pertinent.

Manage your solutions

with the HPE

Universal IoT Platform

Sanchez: Yes, the solution for IoT is everywhere. You can think about healthcare or tracking people or tracking guns or building solutions for cities in which the city can understand what is triggering certain pollution levels that they can fix. Or it can be in manufacturing, or even a small thing like finding your cellphone.

It’s everything that you can measure. Everything that you can put a sensor on, you can measure -- that's IoT. The idea is that IoT will help people live better lives without having to take care of the “thing;” things will have to take care of themselves.

Gardner: You seem quite confident that this is a growth industry. You are betting a significant amount of your future growth on it. How do you see it increasing over the next couple of years? Is this a modest change or do you really see some potential for a much larger market?

Sanchez: That's a really good question. I do see that IoT is the next wave of technology. There are several studies that say that by 2020 there are going to be 50 billion devices connected. I am not that futuristic, but I do see that IoT will start working now and probably within the next two or three years we are going to start seeing an incremental growth of the solutions. Once people understand the capability of IoT, there's going to be an explosion of solutions. And I think the moment to start doing it is now. I think that next year it’s going to be too late.

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:

·     Inside story on developing the ultimate SDN-enabled hybrid cloud object storage environment 

·     How IoT and OT collaborate to usher in the data-driven factory of the future 

·     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

How IoT and OT collaborate to usher in the data-driven factory of the future

The next BriefingsDirect Internet of Things (IoT) technology trends interview explores how innovation is impacting modern factories and supply chains.

We’ll now learn how a leading-edge manufacturer, Hirotec, in the global automotive industry, takes advantage of IoT and Operational Technology (OT) combined to deliver dependable, managed, and continuous operations.

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

Here to help us to find the best factory of the future attributes is Justin Hester, Senior Researcher in the IoT Lab at Hirotec Corp. in Hiroshima, Japan. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: What's happening in the market with business and technology trends that’s driving this need for more modern factories and more responsive supply chains?

Hester: Our customers are demanding shorter lead times. There is a drive for even higher quality, especially in automotive manufacturing. We’re also seeing a much higher level of customization requests coming from our customers. So how can we create products that better match the unique needs of each customer?

As we look at how we can continue to compete in an ever-competitive environment, we are starting to see how the solutions from IoT can help us.

Gardner: What is it about IoT and Industrial IoT (IIoT) that allows you to do things that you could not have done before?

Hester: Within the manufacturing space, a lot of data has been there for years; for decades. Manufacturing has been very good at collecting data. The challenges we've had, though, is bringing in that data in real-time, because the amount of data is so large. How can we act on that data quicker, not on a day-by-day basis or week-by-week basis, but actually on a minute-by-minute basis, or a second-by-second basis? And how do we take that data and contextualize it?

Hester

Hester

It's one thing in a manufacturing environment to say, “Okay, this machine is having a challenge.” But it’s another thing if I can say, “This machine is having a challenge, and in the context of the factory, here's how it's affecting downstream processes, and here's what we can do to mitigate those downstream challenges that we’re going to have.” That’s where IoT starts bringing us a lot of value.

The analytics, the real-time contextualization of that data that we’ve already had in the manufacturing area, is very helpful.

Gardner: So moving from what may have been a gather, batch, analyze, report process -- we’re now taking more discrete analysis opportunities and injecting that into a wider context of efficiency and productivity. So this is a fairly big change. This is not incremental; this is a step-change advancement, right?

A huge step-change 

Hester: It’s a huge change for the market. It's a huge change for us at Hirotec. One of the things we like to talk about is what we jokingly call the Tuesday Morning Meeting. We talk about this idea that in the morning at a manufacturing facility, everyone gets together and talks about what happened yesterday, and what we can do today to make up for what happened yesterday.

Instead, now we’re making that huge step-change to say,  “Why don't we get the data to the right people with the right context and let them make a decision so they can affect what's going on, instead of waiting until tomorrow to react to what's going on?” It’s a huge step-change. We’re really looking at it as how can we take small steps right away to get to that larger goal.

In manufacturing areas, there's been a lot of delay, confusion, and hesitancy to move forward because everyone sees the value, but it's this huge change, this huge project. At Hirotec, we’re taking more of a scaled approach, and saying let's start small, let’s scale up, let’s learn along the way, let's bring value back to the organization -- and that's helped us move very quickly.

Gardner: We’d like to hear more about that success story but in the meantime, tell us about Hirotec for those who don't know of it. What role do you play in the automotive industry, and how are you succeeding in your markets?

Hester: Hirotec is a large, tier-1 automotive supplier. What that means is we supply parts and systems directly to the automotive original equipment manufacturers (OEMs), like Mazda, General Motors, FCA, Ford, and we specialize in door manufacturing, as well as exhaust system manufacturing. So every year we make about 8 million doors, 1.8 million exhaust systems, and we provide those systems mainly to Mazda and General Motors, but also we provide that expertise through tooling.

For example, if an automotive OEM would like Hirotec’s expertise in producing these parts, but they would like to produce them in-house, Hirotec has a tooling arm where we can provide that tooling for automotive manufacturing. It's an interesting strategy that allows us to take advantage of data both in our facilities, but then also work with our customers on the tooling side to provide those lessons learned and bring them value there as well.

Gardner: How big of a distribution are we talking about? How many factories, how many countries; what’s the scale here?

Hester: We are based in Hiroshima, Japan, but we’re actually in nine countries around the world, currently with 27 facilities. We have reached into all the major continents with automotive manufacturing: we’re in North America, we’re in Europe, we’re all throughout Asia, in China and India. We have a large global presence. Anywhere you find automotive manufacturing, we’re there supporting it.

Discover How the

IoT Advantage

Works in Multiple Industries

Gardner: With that massive scale, very small improvements can turn into very big benefits. Tell us why the opportunity in a manufacturing environment to eke out efficiency and productivity has such big payoffs.

Hester: So especially in manufacturing, what we find when we get to those large scales like you're alluding to is that a 1 percent or 2 percent improvement has huge financial benefits. And so the other thing is in manufacturing, especially automotive manufacturing, we tend to standardize our processes, and within Hirotec, we’ve done a great job of standardizing that world-class leadership in door manufacturing.

And so what we find is when we get improvements not only in IoT but anywhere in manufacturing, if we can get 1 percent or 2 percent, not only is that a huge financial benefit but because we standardized globally, we can move that to our other facilities very quickly, doubling down on that benefit.

Gardner: Well, clearly Hirotec sees this as something to really invest in, they’ve created the IoT Lab. Tell me a little bit about that and how that fits into this?

The IoT Lab works

Hester: The IoT Lab is a very exciting new group, it's part of our Advanced Engineering Center (AEC). The AEC is a group out of our global headquarters and this group is tasked with the five- to 10-year horizon. So they're able to work across all of our global organizations with tooling, with engineering, with production, with sales, and even our global operations groups. Our IoT group goes and finds solutions that can bring value anywhere in the organization through bringing in new technologies, new ideas, and new solutions.

And so we formed the IoT Lab to find how can we bring IoT-based solutions into the manufacturing space, into the tooling space, and how actually can those solutions not only help our manufacturing and tooling teams but also help our IT teams, our finance teams, and our sales teams.

Gardner: Let's dig back down a little bit into why IT, IoT and Operational Technology (OT) are into this step-change opportunity, looking for some significant benefits but being careful in how to institute that. What is required when you move to a more an IT-focused, a standard-platform approach -- across all the different systems -- that allows you to eke these great benefits?

Tell us about how IoT as a concept is working its way into the very edge of the factory floor.

Discover How the

IoT Advantage

Works in Multiple Industries

Hester: One of the things we’re seeing is that IT is beginning to meld, like you alluded to, with OT -- and there really isn't a distinction between OT and IT anymore. What we're finding is that we’re starting to get to these solution levels by working with partners such as PTC and Hewlett Packard Enterprise (HPE) to bring our IT group and our OT group all together within Hirotec and bring value to the organization.

What we find is there is no longer a need in OT that becomes a request for IT to support it, and also that IT has a need and so they go to OT for support. What we are finding is we have organizational needs, and we’re coming to the table together to make these changes. And that actually within itself is bringing even more value to the organization.

Instead of coming last-minute to the IT group and saying, “Hey, we need your support for all these different solutions, and we’ve already got everything set, and you are just here to put it in,” what we are seeing, is that they bring the expertise in, help us out upfront, and we’re finding better solutions because we are getting experts both from OT and IT together.

We are seeing this convergence of these two teams working on solutions to bring value. And they're really moving everything to the edge. So where everyone talks about cloud-based computing -- or maybe it’s in their data center -- where we are finding value is in bringing all of these solutions right out to the production line.

We are doing data collection right there, but we are also starting to do data analytics right at the production line level, where it can bring the best value in the fastest way.

Gardner: So it’s an auspicious time because just as you are seeking to do this, the providers of technology are creating micro data centers, and they are creating Edgeline converged systems, and they are looking at energy conservation so that they can do this in an affordable way -- and with storage models that can support this at a competitive price.

What is it about the way that IT is evolving and providing platforms and systems that has gotten you and The IoT Lab so excited?

Excitement at the edge  

Hester: With IoT and IT platforms, originally to do the analytics, we had to go up to the cloud -- that was the only place where the compute power existed. Solution providers now are bringing that level of intelligence down to the edge. We’re hearing some exciting things from HPE on memory-driven computing, and that's huge for us because as we start doing these very complex analytics at the edge, we need that power, that horsepower, to run different applications at the same time at the production line. And something like memory-driven solutions helps us accomplish that.

It's one thing to have higher-performance computing, but another thing to gain edge computing that's proper for the factory environment. In a manufacturing environment it's not conducive to a standard servers, a standard rack where it needs dust protection and heat protection -- that doesn't exist in a manufacturing environment.

The other thing we're beginning to see with edge computing, that HPE provides with Edgeline products, is that we have computers that have high power, high ability to perform the analytics and data collection capabilities -- but they're also proper for the environment.

I don't need to build out a special protection unit with special temperature control, humidity control – all of which drives up energy costs, which drives up total costs. Instead, we’re able to run edge computing in the environment as it should be on its own, protected from what comes in a manufacturing environment -- and that's huge for us.

Gardner: They are engineering these systems now with such ruggedized micro facilities in mind. It's quite impressive that the very best of what a data center can do, can now be brought to the very worst types of environments. I'm sure we'll see more of that, and I am sure we'll see it get even smaller and more powerful.

Do you have any examples of where you have already been able to take IoT in the confluence of OT and IT to a point where you can demonstrate entirely new types of benefits? I know this is still early in the game, but it helps to demonstrate what you can do in terms of efficiency, productivity, and analytics. What are you getting when you do this well?

IoT insights save time and money

Hester: Taking the stepped strategy that we have, we actually started at Hirotec very small with only eight machines in North America and we were just looking to see if the machines are on, are they running, and even from there, we saw a value because all of a sudden we were getting that real-time contextualized insight into the whole facility. We then quickly moved over to one of our production facilities in Japan, where we have a brand-new robotic inspection system, and this system uses vision sensors, laser sensors, force sensors -- and it's actually inspecting exhaust systems before they leave the facility.

We very quickly implemented an IoT solution in that area, and all we did was we said, “Hey, we just want to get insight into the data, so we want to be able to see all these data points. Over 400 data points are created every inspection. We want to be able to see this data, compared in historical ways -- so let’s bring context to that data, and we want to provide it in real-time.”

Discover How the

IoT Advantage

Works in Multiple Industries

What we found from just those two projects very quickly is that we're bringing value to the organization because now our teams can go in and say, “Okay, the system is doing its job, it's inspecting things before they leave our facility to make sure our customers always get a high-quality product.” But now, we’re able to dive in and find different trends that we weren't able to see before because all we were doing is saying, “Okay, this system leaves the facility or this system doesn't.”

And so already just from that application, we’ve been able to find ways that our engineers can even increase the throughput and the reliability of the system because now they have these historical trends. They were able to do a root-cause analysis on some improvements that would have taken months of investigation; it was completed in less than a week for us.

And so that's a huge value -- not only in that my project costs go down but now I am able to impact the organization quicker, and that's the big thing that Hirotec is seeing. It’s one thing to talk about the financial cost of a project, or I can say, “Okay, here is the financial impact,” but what we are seeing is that we’re moving quicker.

And so, we're having long-term financial benefits because we’re able to react to things much faster. In this case, we’re able to reduce months of investigation down to a week. That means that when I implement my solution quicker, I'm now bringing that impact to the organization even faster, which has long-term benefits. We are already seeing those benefits today.

Gardner: You’ll obviously be able to improve quality, you’ll be able to reduce the time to improving that quality, gain predictive analytics in your operations, but also it sounds like you are going to gain metadata insights that you can take back into design for the next iteration of not only the design for the parts but the design for the tooling as well and even the operations around that. So that intelligence at the edge can be something that is a full lifecycle process, it goes right back to the very initiation of both the design and the tooling.

Data-driven design, decisions 

Hester: Absolutely, and so, these solutions, they can't live in a silo. We're really starting to look at these ideas of what some people call the Digital Thread, the Digital Twin. We’re starting to understand what does that mean as you loop this data back to our engineering teams -- what kind of benefits can we see, how can we improve our processes, how can we drive out into the organization?

And one of the biggest things with IoT-based solutions is that they can't stay inside this box, where we talked about OT to IT, we are talking about manufacturing, engineering, these IoT solutions at their best, all they really do is bring these groups together and bring a whole organization together with more contextualized data to make better decisions faster.

And so, exactly to your point, as we are looping back, we’re able to start understanding the benefit we’re going to be seeing from bringing these teams together.

Gardner: One last point before we close out. It seems to me as well that at a macro level, this type of data insight and efficiency can be brought into the entire supply chain. As you're providing certain elements of an automobile, other suppliers are providing what they specialize in, too, and having that quality control and integration and reduced time-to-value or mean-time-to-resolution of the production issues, and so forth, can be applied at a macro level.

So how does the automotive supplier itself look at this when it can take into consideration all of its suppliers like Hirotec are doing?

Start small 

Hester: It's a very early phase, so a lot of the suppliers are starting to understand what this means for them. There is definitely a macro benefit that the industry is going to see in five to 10 years. Suppliers now need to start small. One of my favorite pictures is a picture of the ocean and a guy holding a lighter. It [boiling the ocean] is not going to happen. So we see these huge macro benefits of where we’re going, but we have to start out somewhere.

Discover How the

IoT Advantage

Works in Multiple Industries

A lot of suppliers, what we’re recommending to them, is to do the same thing we did, just start small with a couple of machines, start getting that data visualized, start pulling that data into the organization. Once you do that, you start benefiting from the data, and then start finding new use-cases.

As these suppliers all start doing their own small projects and working together, I think that's when we are going to start to see the macro benefits but in about five to 10 years out in the industry.

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:

·       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

·       Veikkaus digitally transforms as it emerges as new combined Finnish national gaming company

 ·       HPE takes aim at customer needs for speed and agility in age of IoT, hybrid everything

DreamWorks Animation crafts its next era of dynamic IT infrastructure

The next BriefingsDirect Voice of the Customer thought leader interview examines how DreamWorks Animation is building a multipurpose, all-inclusive, and agile data center capability.

Learn here why a new era of responsive and dynamic IT infrastructure is demanded, and how one high-performance digital manufacturing leader aims to get there sooner rather than later. 

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

Here to describe how an entertainment industry innovator leads the charge for bleeding-edge IT-as-a-service capabilities is Jeff Wike, CTO of DreamWorks Animation in Glendale, California. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Tell us why the older way of doing IT infrastructure and hosting apps and data just doesn't cut it anymore. What has made that run out of gas?

Wike: You have to continue to improve things. We are in a world where technology is advancing at an unbelievable pace. The amount of data, the capability of the hardware, the intelligence of the infrastructure are coming. In order for any business to stay ahead of the curve -- to really drive value into the business – it has to continue to innovate.

Gardner: IT has become more pervasive in what we do. I have heard you all refer to yourselves as digital manufacturing. Are the demands of your industry also a factor in making it difficult for IT to keep up?

Wike: When I say we are a digital manufacturer, it’s because we are a place that manufacturers content, whether it's animated films or TV shows; that content is all made on the computer. An artist sits in front of a workstation or a monitor, and is basically building these digital assets that we put through simulations and rendering so in the end it comes together to produce a movie.

Wike

Wike

That's all about manufacturing, and we actually have a pipeline, but it's really like an assembly line. I was looking at a slide today about Henry Ford coming up with the first assembly line; it's exactly what we are doing, except instead of adding a car part, we are adding a character, we’re adding a hair to a character, we’re adding clothes, we’re adding an environment, and we’re putting things into that environment.

We are manufacturing that image, that story, in a linear way, but also in an iterative way. We are constantly adding more details as we embark on that process of three to four years to create one animated film.

Gardner: Well, it also seems that we are now taking that analogy of the manufacturing assembly line to a higher plane, because you want to have an assembly line that doesn't just make cars -- it can make cars and trains and submarines and helicopters, but you don't have to change the assembly line, you have to adjust and you have to utilize it properly.

So it seems to me that we are at perhaps a cusp in IT where the agility of the infrastructure and its responsiveness to your workloads and demands is better than ever.

Greater creativity, increased efficiency

Wike: That's true. If you think about this animation process or any digital manufacturing process, one issue that you have to account for is legacy workflows, legacy software, and legacy data formats -- all these things are inhibitors to innovation. There are a lot of tools. We actually write our own software, and we’re very involved in projects related to computer science at the studio.

We’ll ask ourselves, “How do you innovate? How can you change your environment to be able to move forward and innovate and still carry around some of those legacy systems?”

How HPE Synergy

Automates

Infrastructure Operations

And one of the things we’ve done over the past couple of years is start to re-architect all of our software tools in order to take advantage of massive multi-core processing to try to give artists interactivity into their creative process. It’s about iterations. How many things can I show a director, how quickly can I create the scene to get it approved so that I can hand it off to the next person, because there's two things that you get out of that.

One, you can explore more and you can add more creativity. Two, you can drive efficiency, because it's all about how much time, how many people are working on a particular project and how long does it take, all of which drives up the costs. So you now have these choices where you can add more creativity or -- because of the compute infrastructure -- you can drive efficiency into the operation.

So where does the infrastructure fit into that, because we talk about tools and the ability to make those tools quicker, faster, more real-time? We conducted a project where we tried to create a middleware layer between running applications and the hardware, so that we can start to do data abstraction. We can get more mobile as to where the data is, where the processing is, and what the systems underneath it all are. Until we could separate the applications through that layer, we weren’t really able to do anything down at the core.

Core flexibility, fast

Now that we have done that, we are attacking the core. When we look at our ability to replace that with new compute, and add the new templates with all the security in it -- we want that in our infrastructure. We want to be able to change how we are using that infrastructure -- examine usage patterns, the workflows -- and be able to optimize.

Before, if we wanted to do a new project, we’d say, “Well, we know that this project takes x amount of infrastructure. So if we want to add a project, we need 2x,” and that makes a lot of sense. So we would build to peak. If at some point in the last six months of a show, we are going to need 30,000 cores to be able to finish it in six months, we say, “Well, we better have 30,000 cores available, even though there might be times when we are only using 12,000 cores.” So we were buying to peak, and that’s wasteful.

What we wanted was to be able to take advantage of those valleys, if you will, as an opportunity -- the opportunity to do other types of projects. But because our infrastructure was so homogeneous, we really didn't have the ability to do a different type of project. We could create another movie if it was very much the same as a previous film from an infrastructure-usage standpoint.

By now having composable, or software-defined infrastructure, and being able to understand what the requirements are for those particular projects, we can recompose our infrastructure -- parts of it or all of it -- and we can vary that. We can horizontally scale and redefine it to get maximum use of our infrastructure -- and do it quickly.

Gardner: It sounds like you have an assembly line that’s very agile, able to do different things without ripping and replacing the whole thing. It also sounds like you gain infrastructure agility to allow your business leaders to make decisions such as bringing in new types of businesses. And in IT, you will be responsive, able to put in the apps, manage those peaks and troughs.

Does having that agility not only give you the ability to make more and better movies with higher utilization, but also gives perhaps more wings to your leaders to go and find the right business models for the future?

Wike: That’s absolutely true. We certainly don't want to ever have a reason to turn down some exciting project because our digital infrastructure can’t support it. I would feel really bad if that were the case.

In fact, that was the case at one time, way back when we produced Spirit: Stallion of the Cimarron. Because it was such a big movie from a consumer products standpoint, we were asked to make another movie for direct-to-video. But we couldn't do it; we just didn’t have the capacity, so we had to just say, “No.” We turned away a project because we weren’t capable of doing it. The time it would take us to spin up a project like that would have been six months.

The world is great for us today, because people want content -- they want to consume it on their phone, on their laptop, on the side of buildings and in theaters. People are looking for more content everywhere.

Yet projects for varied content platforms require different amounts of compute and infrastructure, so we want to be able to create content quickly and avoid building to peak, which is too expensive. We want to be able to be flexible with infrastructure in order to take advantage of those opportunities.

HPE Synergy

Automates

Infrastructure Operations

Gardner: How is the agility in your infrastructure helping you reach the right creative balance? I suppose it’s similar to what we did 30 years ago with simultaneous engineering, where we would design a physical product for manufacturing, knowing that if it didn't work on the factory floor, then what's the point of the design? Are we doing that with digital manufacturing now?

Artifact analytics improve usage, rendering

Wike: It’s interesting that you mention that. We always look at budgets, and budgets can be money budgets, it can be rendering budgets, it can be storage budgets, and networking -- I mean all of those things are commodities that are required to create a project.

Artists, managers, production managers, directors, and producers are all really good at managing those projects if they understand what the commodity is. Years ago we used to complain about disk space: “You guys are using too much disk space.” And our production department would say, “Well, give me a tool to help me manage my disk space, and then I can clean it up. Don’t just tell me it's too much.”

One of the initiatives that we have incorporated in recent years is in the area of data analytics. We re-architected our software and we decided we would re-instrument everything. So we started collecting artifacts about rendering and usage. Every night we ran every digital asset that had been created through our rendering, and we also collected analytics about it. We now collect 1.2 billion artifacts a night.

And we correlate that information to a specific asset, such as a character, basket, or chair -- whatever it is that I am rendering -- as well as where it’s located, which shot it’s in, which sequence it’s in, and which characters are connected to it. So, when an artist wants to render a particular shot, we know what digital resources are required to be able to do that.

One of the things that’s wasteful of digital resources is either having a job that doesn't fit the allocation that you assign to it, or not knowing when a job is complete. Some of these rendering jobs and simulations will take hours and hours -- it could take 10 hours to run.

At what point is it stuck? At what point do you kill that job and restart it because something got wedged and it was a dependency? And you don't really know, you are just watching it run. Do I pull the plug now? Is it two minutes away from finishing, or is it never going to finish?

Just the facts

Before, an artist would go in every night and conduct a test render. And they would say, “I think this is going to take this much memory, and I think it's going to take this long.” And then we would add a margin of error, because people are not great judges, as opposed to a computer. This is where we talk about going from feeling to facts.

So now we don't have artists do that anymore, because we are collecting all that information every night. We have machine learning that then goes in and determines requirements. Even though a certain shot has never been run before, it is very similar to another previous shot, and so we can predict what it is going to need to run.

Now, if a job is stuck, we can kill it with confidence. By doing that machine learning and taking the guesswork out of the allocation of resources, we were able to save 15 percent of our render time, which is huge.

I recently listened to a gentleman talk about what a difference of 1 percent improvement would be. So 15 percent is huge, that's 15 percent less money you have to spend. It's 15 percent faster time for a director to be able to see something. It's 15 percent more iterations. So that was really huge for us.

Gardner: It sounds like you are in the digital manufacturing equivalent of working smarter and not harder. With more intelligence, you can free up the art, because you have nailed the science when it comes to creating something.

Creative intelligence at the edge

Wike: It's interesting; we talk about intelligence at the edge and the Internet of Things (IoT), and that sort of thing. In my world, the edge is actually an artist. If we can take intelligence about their work, the computational requirements that they have, and if we can push that data -- that intelligence -- to an artist, then they are actually really, really good at managing their own work.

It's only a problem when they don't have any idea that six months from now it's going to cause a huge increase in memory usage or render time. When they don't know that, it's hard for them to be able to self-manage. But now we have artists who can access Tableau reports everyday and see exactly what the memory usage was or the compute usage of any of the assets they’ve created, and they can correct it immediately.

On Megamind, a film DreamWorks Animation released several years ago, it was prior to having the data analytics in place, and the studio encountered massive rendering spikes on certain shots. We really didn't understand why.

After the movie was complete, when we could go back and get printouts of logs to analyze, we determined that these peaks in rendering resources were caused by his watch. Whenever the main character’s watch was in a frame, the render times went up. We looked at the models, and well-intended artists had taken a model of a watch and every gear was modeled, and it was just a huge, heavy asset to render.

But it was too late to do anything about it. But now, if an artist were to create that watch today, they would quickly find out that they had really over-modeled that watch. We would then need to go in and reduce that asset down, because it's really not a key element to the story. And they can do that today, which is really great.

HPE Synergy

Automates

Infrastructure Operations

Gardner: I am a big fan of animated films, and I am so happy that my kids take me to see them because I enjoy them as much as they do. When you mention an artist at the edge, it seems to me it’s more like an army at the edge, because I wait through the end of the movie, and I look at the credits scroll -- hundreds and hundreds of people at work putting this together.

So you are dealing with not just one artist making a decision, you have an army of people. It's astounding that you can bring this level of data-driven efficiency to it.

Movie-making’s mobile workforce

Wike: It becomes so much more important, too, as we become a more mobile workforce. 

Now it becomes imperative to be able to obtain the information about what those artists are doing so that they can collaborate. We know what value we are really getting from that, and so much information is available now. If you capture it, you can find so many things that we can really understand better about our creative process to be able to drive efficiency and value into the entire business.

Gardner: Before we close out, maybe a look into the crystal ball. With things like auto-scaling and composable infrastructure, where do we go next with computing infrastructure? As you say, it's now all these great screens in people's hands, handling high-definition, all the networks are able to deliver that, clearly almost an unlimited opportunity to bring entertainment to people. What can you now do with the flexible, efficient, optimized infrastructure? What should we expect?

Wike: There's an explosion in content and explosion in delivery platforms. We are exploring all kinds of different mediums. I mean, there’s really no limit to where and how one can create great imagery. The ability to do that, the ability to not say “No” to any project that comes along is going to be a great asset.

We always say that we don't know in the future how audiences are going to consume our content. We just know that we want to be able to supply that content and ensure that it’s the highest quality that we can deliver to audiences worldwide.

Gardner: It sounds like you feel confident that the infrastructure you have in place is going to be able to accommodate whatever those demands are. The art and the economics are the variables, but the infrastructure is not.

Wike: Having a software-defined environment is essential. I came from the software side; I started as a programmer, so I am coming back into my element. I really believe that now that you can compose infrastructure, you can change things with software without having to have people go in and rewire or re-stack, but instead change on-demand. And with machine learning, we’re able to learn what those demands are.

I want the computers to actually optimize and compose themselves so that I can rest knowing that my infrastructure is changing, scaling, and flexing in order to meet the demands of whatever we throw at 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:

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: