HP charts a course for the enterprise CIO from the inside out

Last week, HP (NYSE: HPQ) held their Discover Conference in Barcelona, Spain and the first since announcing their split into two major technology companies. Post split, HP Enterprise, the half focused on enterprise-class solutions, will need to demonstrate a strong leadership position to remain relevant in the dynamic and ever-changing enterprise space. Not a short order for such a large incumbent as HP. The split, however, brings into focus a renewed vigor to go after the enterprise CIO.

Looking inside to look outside

Over the past two years, HP assembled a powerhouse of CIO talent. The talent is not an advisory council, but rather executive leadership within the HP machine. In August 2012, HP went outside to hire Ramon Baez as their Global CIO. Previously, Baez was Vice President and CIO at Kimberly Clark. Then, in July 2014, HP made two other significant CIO hires. Former Clorox SVP & CIO Ralph Loura joined HP as CIO of HP’s Enterprise Group. At the same time, HP hired Paul Chapman as CIO of HP Software. Paul was formerly VP of Global Infrastructure & Cloud Operations at VMware. All three are highly respected among both their CIO peers and fellow executive colleagues. And one only needs to spend a few minutes with each to see how their thinking aligns with HP’s vision of the New Style of IT.

In their former roles, all three individuals accomplished many of the very activities that HP is helping their customers with today. For HP as a provider of products, solutions and services, it only needs to look internally to gain insight on which direction to take. Think of it as having the inside track on the transformational CIO.

On day one of the conference, I had the opportunity to join Paul Chapman and Paul Muller, VP of Strategic Marketing, HP Software to discuss The Evolving CIO.

Emphasis on cloud and big data

At Discover Barcelona, HP’s Helion cloud solutions and Haven data solutions were front-and-center at the front of each exhibit hall.

FullSizeRender-1 FullSizeRender-2

HP’s Helion cloud division continued their beat toward an OpenStack based ecosystem. The group, soon to be lead by former Eucalyptus CEO Marten Mickos, is placing a strong showing behind the OpenStack platform with solutions that address the enterprise challenges with Private Cloud to Public Cloud solutions.

Even so, there is still quite a bit of work to be done by both HP and their customers. Enterprises are still, in large part, working out how best to leverage cloud-based solutions. In addition, OpenStack has its own set of challenges to become a viable product for the masses. HP’s intent is to bridge the gap between what the enterprise needs and the current state of the technology. Mickos’ new position heading up the Helion division is already starting to turn a battleship in great need to a significant course correction.

On the big data front, HP made a splash in June 2013 with their HAVEn set of core technologies. The idea was to bring the best of both worlds with their acquisitions of Vertica and Autonomy. Since the announcement, the products were perceived to be a grouping of parts rather than a cohesive solution. At Discover Barcelona, HP unveiled their updated branding to Haven that signifies the integration of the products into a more comprehensive solution.

While the marketing is coming together, it is unclear that customers are resonating with the broader appeal of Haven beyond just that of each component. Haven is, however, moving to a Helion application offered in the cloud or on-premises, which could appeal more broadly to enterprise CIOs.

Infrastructure incredibly important

At the conference, HP made it clear that infrastructure remains incredibly important. And from the size of the crowds around their Converged Systems areas, it would seem customers are resonating with the same view. Anecdotally, the hardware areas were the most crowded sections of the exhibit floor.

IMG_0363

Packed within the Converged Systems group is HP’s OneView management platform. Today, OneView presents a management platform for the broader infrastructure platform. However, the real value will come from the ecosystem HP is building around the platform.

A comprehensive management platform is one area that will become increasingly more important for the CIO facing a potpourri of different vendors, providers and solutions.

Devil in the details

Ultimately, for HP, the devil is in the details. For the enterprise CIO, however, HP presents some interesting potential in their portfolio. They do have some formidable challenges ahead as they split in two and bring focus to the enterprise of tomorrow. Neither is easy, but will be interesting to see how HP fares moving forward.

Originally posted @ Gigaom Research 12/8/2014

http://research.gigaom.com/2014/12/hp-charts-a-course-for-the-enterprise-cio-from-the-inside-out/

Think you are ready to build a cloud? Think again.

There is plenty of banter about what it truly takes to play in cloud. Do you think you are ready to jump into the deep end? Is your team ready? What about your processes? And finally, is the technology ready to take the leap? Read on before you answer.

Two months ago, I wrote “8 Reasons Not to Move to Cloud” to address the common reasons why organizations are hesitant to move to cloud. This post is geared to address the level one must play if they want to build their own clouds. Having built cloud services myself, I can say from experience that it is not for the faint of heart.

Automation and agility

Traditional corporate infrastructure is typically not automated or agile. Meaning, a change in the requirements or demands may constitute a change in architecture, which in turn, requires a manual change in the configurations. All of this takes time, which works against the real-time expectations of cloud provisioning.

Cloud-based solutions must have some form of automation and agility to address the changing demands coming from customers. Customers expect real-time provisioning of their resources. Speed is key here and only possible with automation. And a prerequisite for automation is standardization.

Standardization is key

The need for standardization is key when building cloud-based solutions. In order to truly enable automation, there must be a level of assumption around hardware configurations, architecture, and logical network. Even relatively small things such as BIOS version, NIC model and patch level can throw havoc into cloud automation. From a corporate perspective, even the same model of server hardware could have different versions of BIOS, NIC and patches.

Add logical configurations such as network topology, and the complexities start to mount. Where are the switches? How is the topology configured? Which protocols are in play for which sections of the network? One can quickly see how a very small hiccup can throw things into whack pretty quickly.

For the average corporate environment, managing physical and logical configurations at this level is challenging. Even for those operating at scale, it is a challenge. This is one reason why those at scale build their own systems; so they can control the details.

The scale problem

At scale, however, the challenge is more than just numbers. Managing at scale requires a different mode of thinking. In a traditional corporate environment, when a server fails, an alert goes off to dispatch someone to replace the failed component. In parallel, the impacted workload is moved or changed to limit the impact to users. These issues can range from a small fire to a three-alarm inferno.

At scale, those processes simply collapse under the stress. This is where operating at scale requires a different mode of thinking. Manual intervention for every issue is not an option.

The operations math problem

First, the cloud architecture must endure multiple hardware failures. Single points of failure must come out of the equation as much as possible. I wrote about this back in 2011 with my post “Clouds, Failure and Other Things That Go Bump in the Night.” This is where we revert to probability and statistics. There will be hardware failures. Even entire data centers will fail. The challenge is how to change out operational thinking to assuming failure. I detail this a bit further in my post “Is the cloud unstable and what can we do about it?

Discipline, discipline, discipline

All of these lead to a required chance in discipline. No longer is one able to simply run into the data center to fix something. No longer are humans able to fix everything manually. In fact, the level of discipline goes way up with cloud. Even the smallest mistake can have cataclysmic consequences. Refer to the November Microsoft Azure outage that was caused by a ‘performance update’. Process, operations, configurations and architectures must all raise their level of discipline.

Consider the consequences

Going full-circle, the question is: Should an enterprise or corporate entity consider building private clouds? For the vast majority of organizations, the answer should be no. But there are exceptions. Refer to my post way back in 2009 on the “Importance of Private Clouds.” Internal private clouds may present challenges for some, but hosted private clouds provide an elegant alternative.

In the end, building clouds are hard and complicated. Is it plausible for an enterprise to build their own cloud? Yes. Typically, it may come as a specific solution to a specific problem. But the hurdle is pretty high…and getting higher every day. Consider the consequences before making the leap.

 

Originally posted @ Gigaom Research 12/1/2014

http://research.gigaom.com/2014/12/think-you-are-ready-to-build-a-cloud-think-again/

CIOs are getting out of the Data Center business

More than three years ago, a proclamation was made (by myself, Mark Thiele and Jan Wiersma) that the data center was dead. Ironically, all three of us come from an IT background of running data centers within IT organizations.

At the time, it was an event in London, England where the attendees were utterly dumbfounded by such a statement. Keep in mind that this event was also a data center specific event. To many this statement was an act of heresy.

But the statement had truth and the start of a movement already at foot. Ironically, companies in leading roles were already starting down this path. It was just going to take some time before the concept became common thinking. Even today, it still is not common thinking. But the movement is starting to gain momentum. Across the spectrum of industries from healthcare to financial services, CIO’s and their contemporaries are generally making a move away from data centers. Specifically, moving away from managing their own, dedicated corporate data centers.

Enterprise data center assets

And by data center, we are talking about the physical critical facility and equipment that is the data center. We are not talking about the servers, storage or network equipment within the data center facility. These data center assets (the facility) are moving into a new phase of maturity. While still needed, companies are realizing that they no longer need to manage their own critical facilities in order to provide the level of service required.

Moving along the spectrum

As companies look at alternatives to operating their own data centers, there are a number of options available today. For many years, colocation, or the renting of data center space, was the only viable option for most. Today, the options for colocation vary widely as do alternatives in the form of cloud computing. Companies are moving along a spectrum from traditional corporate data centers to public cloud infrastructure.

 

DataCenterCloudSpectrum

It is important to note that companies will not move entire data centers (en masse) from one mode to another. The specific applications, or workloads, will spread across the spectrum with some number leveraging most if not all of the modes. Over time, the distribution of workloads shifts toward the right and away from corporate data centers.

In addition, even those moving across the spectrum may find that they are not able to completely reduce their corporate data center footprint to zero for some time. There may be a number of reasons for this, but none should preclude an effort to reduce the corporate data center footprint.

Additional cloud models

For clarity sake, Platform as a Service (PaaS) and Software as a Service (SaaS) are intentionally omitted. Yet, both ultimately play a role in the complexity of planning a holistic cloud strategy. As with any strategy discussion, one needs to consider many factors beyond simply the technology, or in this case facility, when making critical decisions.

Starting with colocation

Last year, I wrote a blog titled “Time to get on the colocation train before it is too late.” The premise was foretelling the impending move from corporate data centers to colocation facilities. While colocation facilities are seeing an uptick in interest, the momentum is only now starting to build.

For many IT organizations, the first step along the spectrum is in moving from their corporate data center to colocation. Moving infrastructure services from one data center to another is not a trivial step, but a very important one. Moving a data center will test an IT organization in many ways that highlight opportunities for improvement in their quest to ultimately leverage cloud computing. One of those is in their ability to fully operate ‘lights out’ or without the ability to physically enter the data center. The reason is that unlike the corporate data center that was down the hall, a colocation facility may physically be 1,000 miles away or more!

Where to go from here

Plan, plan, and plan. Moving a data center can take months to years even with aggressive planning. Start by thinking about what is strategic, differentiating and supports the corporate strategy. Consider the options that exist in both the colocation and cloud marketplace. You might be surprised how far the colocation marketplace has evolved in just the past few years! And that is just the start.

The opportunities for CIO’s and their IT organization are plentiful today. Getting out of the data center business is just one of the first moves that more and more CIO’s are starting to take. Move where it makes sense and seize the opportunity. For those already down this path, the results can be quite liberating!

 

Originally posted @ Gigaom Research 11/10/14

http://research.gigaom.com/2014/11/cios-are-getting-out-of-the-data-center-business/

There comes a point when it is not just about storage space

Is the difference between cloud storage provides about free space? In a word, no. I wrote about the cloud storage wars and potential bubble here:

The cloud storage wars heat up

http://avoa.com/2014/04/29/the-cloud-storage-wars-heat-up/

4 reasons cloud storage is not a bubble about to pop

http://avoa.com/2014/03/24/4-reasons-cloud-storage-is-not-a-bubble-about-to-pop/

Each of the providers is doing their part to drive value into their respective solutions. To some, value includes the amount of ‘free’ disk space included. Just today, Microsoft upped the ante by offering unlimited free space for their OneDrive and OneDrive for Business solutions.

Is there value in the amount of free space? Maybe, but only to a point. Once they offer an amount above the normal needs (or unlimited), the value becomes a null. I do not have statistics, but would hazard a venture that ‘unlimited’ is more marketing leverage where most users only consume less than 50GB each.

Looking beyond free space

Once a provider offers unlimited storage, one needs to look at the feature/ functionality of the solution. Not all solutions are built the same nor offer similar levels. Enterprise features, integration, ease of use and mobile access are just a few of the differentiators. Even with unlimited storage, if the solution does not offer the feature you need, storage value is greatly diminished.

The big picture

For most, cloud storage is about replacing a current solution. On the surface the amount of free storage is a quick pickup. However, the real issue is in the compatibility and value beyond just the amount of free storage. Does the solution integrate with existing solutions? How broad is their ecosystem? What about Single Sign On (SSO) support? How much work will it take to implement and train users? These are just a few of the factors that must be considered.

 

Originally posted @ Gigaom Research 10/27/14

http://research.gigaom.com/2014/10/there-comes-a-point-when-it-is-not-just-about-storage-space/

Is the cloud unstable and what can we do about it?

Originally posted @ Gigaom Research 9/29/2014

http://research.gigaom.com/2014/09/is-the-cloud-instable-and-what-can-we-do-about-it/

 

The recent major reboots of cloud-based infrastructure by Amazon and Rackspace has resurfaced the question about cloud instability. Days before the reboot, both Amazon and Rackspace noted that the reboots were due to a vulnerability with Zen. Barb Darrow of Gigaom covered this in detail here. Ironically, all of this came less than a week before the action took place, leaving many flat-footed.

Outages are not new

First, let us admit that outages (and reboots) are not unique to cloud-based infrastructure. Traditional corporate data centers face unplanned outages and regular system reboots. For Microsoft-based infrastructure, reboots may happen monthly due to security patch updates. Back in April 2011, I wrote a piece Amazon Outage Concerns are Overblown. Amazon had just endured another outage of their Virginia data center that very day. In response, customers and observers took shots at Amazon. However, is Amazon’s outage really the problem? In the piece, I suggested that customers were misunderstanding the problem when they think about cloud-based infrastructure services.

Cloud expectations are misguided

As with the piece back in 2011, the expectations of cloud-based infrastructure have not changed much for enterprise customers. The expectation has been (and still is) that cloud-based infrastructure is resilient just like that within the corporate data center. The truth is very different. There are exceptions, but the majority of cloud-based infrastructure is not built for hardware resiliency. That’s by design. The expectation by service providers is that application/ service resiliency rests further up the stack when you move to cloud. That is very different than traditional application architectures found in the corporate data center where infrastructure provides the resiliency.

Time to expect failure in the cloud

Like many of the web-scale applications using cloud-based infrastructure today, enterprise applications need to rethink their architecture. If the assumption is that infrastructure will fail, how will that impact architectural decisions? When leveraging cloud-based infrastructure services from Amazon or Rackspace, this paradigm plays out well. If you lose the infrastructure, the application keeps humming away. Take out a data center, and users are still not impacted. Are we there yet? Nowhere close. But that is the direction we must take.

Getting from here to there

Hypothetically, if an application were built with the expectation of infrastructure failure, the recent failures would not have impacted the delivery to the user. Going further, imagine if the application could withstand a full data center outage and/ or a core intercontinental undersea fiber cut. If the expectation were for complete infrastructure failure, then the results would be quite different. Unfortunately, the reality is just not there…yet.

The vast majority of enterprise applications were never designed for cloud. Therefore, they need to be tweaked, re-architected or worse, completely rewritten. There’s a real cost to do so! Just because the application could be moved to cloud does not mean the economics are there to support it. Each application needs to be evaluated individually.

Building the counterargument

Some may say that this whole argument is hogwash. So, let us take a look at the alternative. If one does build cloud-based infrastructure to be resilient like that of its corporate brethren, it would result in a very expensive venture at a minimum. Infrastructure is expensive. Back in the 1970’s a company called Tandem Computers had a solution to this with their NonStop system. In the 1990’s, the Tandem NonStop Himalayan class systems were all the rage…if you could afford them. NonStop was particularly interesting for financial services organizations that 1) could not afford the downtime and 2) had the money to afford the system. Consequently, Tandem was acquired by Compaq who in turn was acquired by HP. NonStop is now owned by HP as part of their Integrity NonStop products. Aside from Tandem’s solutions, even with all of the infrastructure redundancy, many are still just a data center outage away of impacting an application. The bottom line is: It is impossible to build a 100% resilient infrastructure. That is true either due to 1) it is cost prohibitive and 2) becomes a statistical probability problem. For many, the value comes down to the statistic probably of an outage compared with the protections taken.

Making the move

Over the past five years or so, companies have looked at the economics to build redundancy (and resiliency) at the infrastructure layer. The net result is a renewed focus on moving away from infrastructure resiliency and toward low-cost hardware. The thinking is: infrastructure is expensive and resiliency needs to move up the stack. The challenge is changing the paradigm of how application redundancy is handled by developers of corporate applications.

Seven Things the CIO should consider when adopting a holistic cloud strategy

Originally posted @ Gigaom Research 8/25/14

http://research.gigaom.com/2014/08/seven-things-the-cio-should-consider-when-adopting-a-holistic-cloud-strategy/

 

As conversations about cloud computing continues to focus on IT’s inability at holistic adoption, organizations outside of IT continue their cloud adoption trek outside the prevue of IT. While many of these efforts are considered Shadow IT efforts and frowned upon by the IT organization, they are simply a response to a wider problem.

The IT organization needs to adopt a holistic cloud strategy. However, are CIOs really ready for this approach? Michael Keithley, Creative Artists Agency’s CIO just returned from CIO Magazine’s CIO 100 Symposium which brings together the industry’s best IT leaders. In his blog post, he notes that “(he) was shocked to find that even among this elite group of CIOs there were still a significant amount of CIOs who where resisting cloud.” While that perspective is widely shared, it does not represent all CIOs. There are still a good number of CIOs that have moved to a holistic cloud strategy. The problem is that most organizations are still in a much earlier state of adoption.

In order to develop a holistic cloud strategy, it is important to follow a well-defined process. The four steps are straightforward and fit just about any organization:

  1. Assess: Provide a holistic assessment of the entire IT organization, applications and services that is business focused, not technology focused. For the CIO, they are a business leader that happens to have responsibility for technology. Understand what is differentiating and what is not.
  2. Roadmap: Use the options and recommendations from the assessment to provide a roadmap. The roadmap outlines priority and valuations that ultimately drive the alignment of IT.
  3. Execute: This is where the rubber hits the road. IT organizations will learn more about themselves through action. For many, it is important to start small (read: lower risk) and ramp up quickly.
  4. Re-Assess & Adjust: As the IT organization starts down the path of execution, lessons are learned and adjustments needed. Those adjustments will span technology, organization, process and governance. Continual improvement is a key hallmark to staying in tune with the changing demands.

For many, following this process alone is not enough to develop a holistic cloud strategy. In order to successfully leverage a cloud-based solution, several things need to change that may contradict current norms. Today, cloud is leveraged in many ways from Software as a Service (SaaS) to Infrastructure as a Service (IaaS). However, it is most often a very fractured and disjointed approach to leveraging cloud. Yet, the very applications and services in play require that organizations consider a holistic approach in order to work most effectively.

When considering a holistic cloud strategy, there are a number of things the CIO needs to consider including these six:

  1. Challenge the Status Quo: This is one of the hardest changes as the culture within IT developed over decades. One example is changing the mindset that ‘critical systems may not reside outside your own data center’ is not trivial. On the other hand, leading CIOs are already “getting out of the data center business.” Do not get trapped by the cultural norms and the status quo.
  2. Differentiation: Consider which applications and services are true differentiators for your company. Focus on the applications and services that provide strategic value and shift more common functions (ie: email) to alternative solutions like Microsoft Office 365 or Google Apps.
  3. Align with Business Strategy: Determine how IT can best enable and catapult the company’s business strategy. If IT is interested in making a technology shift, consider if it will bring direct positive value to the business strategy. If it does not, one should ask a number of additional questions determining the true value of the change. With so much demand on IT, focus should be on those changes that bring the highest value and align with the business strategy.
  4. Internal Changes: Moving to cloud changes how organizations, processes and governance models behave. A simple example is how business continuity and disaster recovery processes will need to change in order to accommodate the introduction of cloud-based services. For organizations, cloud presents both an excitement of something new and a fear from loss of control and possible job loss. CIOs need to ensure that this area is well thought out before proceeding.
  5. Vendor Management: Managing a cloud provider is not like every other existing vendor relationship. Vendor management comes into sharp focus with the cloud provider that spans far more than just the terms of the Service Level Agreement (SLA).
  6. Exit Strategy: Think about the end before getting started. Exiting a cloud service can happen for good or bad reasons. Understand what the exit terms are and in what for your data will exist. Exporting a flat file could present a challenge if the data is in a structured database. However, that may be the extent of the provider’s responsibility. When considering alternative providers, recognize that shifting workloads across providers is not necessarily as trivial as it might sound. It is important to think this through before engaging.
  7. Innovation: Actively seek out ways to adopt new solutions and methodologies. For example, understand the value from Devops, OpenStack, Containers and Converged Infrastructure. Each of these may challenge traditional thinking, which is ok.

Those are seven of the top issues that often come up in the process of setting a holistic cloud strategy. Cloud offers the CIO, the IT organization and the company as a whole one of the greatest opportunities today. Cloud is significant, but only the tip of the iceberg. For the CIO and their organization, there are many more opportunities beyond cloud today that are already in the works.

The number of 9’s don’t matter but business metrics do

Originally posted @ Gigaom Research 8/11/14

http://research.gigaom.com/2014/08/the-number-of-9s-dont-matter-but-business-metrics-do/

Information Technology (IT) organizations across the globe use a number of metrics to measure their success, failure and standing. One of the more popular metrics is the ‘number of 9’s’ as a measure of system uptime. Why use 9’s? It is relatively easy for technology organizations to measure system performance. Unfortunately, it does not matter outside of IT.

What are 9s?

The number of 9’s refers to the percentage of system uptime. Typically, we hear about three 9’s, four 9’s or five 9’s. Three 9’s refers to 99.9% uptime, or .1% downtime whereas five 9’s refers to an ever-illusive 99.999% uptime or a mere .001% downtime.

These metrics have been used for a very long time; from internal IT organizations reporting status to Service Level Agreements (SLAs) from service providers. The number of 9’s is used as a metric to set performance targets…and measure progress toward them. The problem is, they are technology focused. When looking at the inverse as a function of downtime, it equates to the following table:

Downtime TableEven at four-9’s, that equates to a maximum of only 52.56 minutes of downtime per year. Unfortunately, this means very little if the company is in retail and those 52 minutes of downtime came during Black Friday or Cyber Monday. In addition, the number may be artificially low as other factors may not be included in the calculation.

The Fallacy of Planned vs. Unplanned Downtime

First, it is important to differentiate between scheduled downtime and unplanned downtime (outages). Most measure their system performance based on the amount of unplanned downtime and exclude any scheduled downtime from the calculations. There has been an ongoing debate for years whether to include scheduled downtime.

Arguably, if a system is down (planned or unplanned), it is still down and unavailable. In today’s world of 24×7, 100% uptime expectations, planned downtime must be considered. Ironically, the inclusion of planned downtime causes uptime figures to drop and may cause a rethinking of how applications and services are architected.

Technology Metrics

In today’s world, do these metrics even make sense anymore? They are not business metrics…unless you are a service provider that makes your business about uptime. For the majority of IT organizations, these metrics are just ‘technology’ metrics that have little to no relevance to the business at hand. Just ask a line of business owner what five-9’s means to their line of business. For IT, it is hard to connect the dots between percentage uptime and true business impact. And by business impact, this refers to business impact measured in dollars.

Business Metrics

If not 9’s, what business metrics should IT be focused on? Most companies use a common set of metrics to gauge business progress. Those may include Cost to Acquire a Customer (CAC), Lifetime Value of Customer (LVC) and Gross Margin. Customer engagement is a key area of focus that includes customer acquisition, retention & churn. For IT, these metrics may seem very foreign. However, to a company, they are very real. Increasingly so, IT must connect the dots between that new technology and the value it brings to business metrics. As IT evolves to a business focused organization, so should their metrics of success.

The Role of the CIO

The CIO, above all others, is best positioned to take the lead in this transformation. Instead of looking for ways to express technological impact, look for ways to express business impact. It may seem like a subtle change in nomenclature, but the impact is huge. Business metrics provide a single view that all parts of a company can directly work toward improving.

A good starting point is to understand how the company makes money. Start with reading the income statement, balance sheet and cash flow statement. Are there any hotspots that IT can contribute to? And what (business) metrics should IT use to measure their progress.

Not only will this shift IT thinking to be business focused, it will also highlight better alignment with other business leaders across the company.

Death of the Data Center

Back in 2011, Mark Thiele (@mthiele10), Jan Wiersma (@jmwiersma) and I shared the stage at a conference in London, England for a panel discussion on the future of data centers. The three of us are founding board members with Data Center Pulse; an industry association of data center owners and operators with over 6,000 members that span the globe.

Our common theme for the panel: Death of the Data Center. Our message was clear and poignant. After decades of data center growth, a significant change was both needed and on the horizon. And this change was about to turn the entire industry in its head. The days of building and operating data centers of all shapes, sizes and types throughout the world was about to end. The way data centers are consumed has changed.

Fast forward the clock to 2014, a different conference (ECF/ DCE) and a different city (Monte Carlo, Monaco). The three of us shared the stage once again to touch on a variety of subjects ranging from SMAC to DCIM to the future of data centers. During my opening keynote presentation on the first day, I referred back to our statement from three years earlier professing “Death of the Data Center.”

Of course, making this statement at a Cloud and Data Center conference might have bordered on heresy. But the point still needed to be made. And it was more important today than ever. The tectonic shift we discussed three years in London was already starting to play out. Yet, the industry as a whole was still trying to ignore the fact that evolution was taking over. And by industry I’m referring to both internal IT organizations along with data center and service providers. How we look at data centers was changing and neither side was ready to admit change was afoot.

The Tectonic Data Center Evolution

During the economic downturn in 2008 and 2009, a shift in IT spending took place. At the same time, cloud computing was truly making its own entrance. Companies of all sizes (and their IT organizations) were pulling back their spending and rethinking what ‘strategic spending’ really meant. Coming into focus was the significant costs associated with owning and operating data centers. The common question: Do we still really needed our own data center?

This is a tough question to consider for those that always believed that data, applications, and systems needed to be in their own data center in order to be 1) manageable and 2) secure. Neither of those hold true today. In fact, by many accounts, the typical enterprise data center is less secure than the alternatives (colocation or cloud).

The reality is: This shift has already started, but we are still in the early days. Colocation is not new, but the options and maturity of the alternatives is getting more and more impressive. The cloud solutions that are part of a data center’s ecosystem are equally impressive.

Data Center Demand

Today, there is plenty of data center capacity. However, there is not much new capacity being built by data center providers due to the fear of over capacity and idle resources. The problem is, when the demand from enterprises starts to ramp up. It takes years to bring a new data center facility online. We know the demand is coming, but when. And when it does, it will create a constraint on data center capacity until new capacity is built. I wrote about this in my post Time to get on the Colocation Train Before it is Too Late.

Are Data Centers Dying?

In a word, are data centers going away? No. However, if you are an enterprise running your own data center, expect a significant shift. At a minimum, the size of your existing data center is shrinking if not completely going away. And if you are in an industry with regulatory or compliance requirements, the changes still apply. I have worked with companies some of the most regulated and sensitive industries including Healthcare, Financial Services and Government Intelligence Communities. All of which are considering some form of colocation and cloud today.

Our point was not to outline a general demise of data centers, but to communicate an impending shift in how data centers are consumed. To some, there was indeed a demise of data centers coming. However, to others, it would generate significant opportunity. The question where are you in this equation and are you prepared for the impending shift?

HP Launches Helion to Address Enterprise Cloud Adoption

Today, HP takes a huge step forward to address the broad and evolving enterprise cloud demand through their HP Helion announcement. HP Helion presents HP’s strategy to provide a comprehensive cloud portfolio. As HP’s CEO Meg Whitman mentioned, “HP is in it to win.” HP is investing over $1b in their cloud-based solutions. It’s clear that HP is working hard to win the new enterprise game.

Traditional IT demand is not going away, but the demand for cloud is increasing. Most enterprises struggle to leverage traditional IT while adopting Transformational IT. Providers, such as HP, need to address this complex and hybrid approach. With Helion, HP ups the ante in addressing this demand.

Today, HP launches their Helion brand encompassing their entire cloud portfolio. The formerly know HP Cloud solution is now part of the Helion branding. But the key change isn’t the branding change. It’s the end-to-end products that address an enterprise’s needs regardless of their state of cloud adoption.

Open Source Software Part of HP’s Strategy

HP’s commitment to OpenStack is not new. They have two board members as part of the OpenStack Foundation. And their further commitment to embrace OpenStack as part of their core cloud offerings furthers both HP and the OpenStack movement as a whole. OpenStack is a key opportunity for enterprises and service providers alike. However, open source software, and specifically OpenStack has presented significant challenges for enterprise adoption.

One of the first solutions from HP is their OpenStack Community Edition (OCE). OCE is intended for entry-level use up to 30 nodes. OCE is an approachable way for enterprises interested in OpenStack to get started. For enterprises interested in going beyond 30 nodes, HP’s commercial solution bridges the gap.

OCE is not only open source, but supported by HP. It’s also one of the first distributions based on the OpenStack Icehouse release. HP intends to ship updates every six weeks, which will keep the distribution fresh. HP OCE is available today as a free download.

Also announced today was HP’s commitment to Cloud Foundry. Cloud Foundry presents an additional opportunity for enterprises to embrace cloud through PaaS. For many enterprises, PaaS presents the solution between a core infrastructure solution and SaaS solutions. Plus, PaaS provides portability for applications based on a specific platform.

In Summary

HP Helion presents one of the most comprehensive end-to-end solutions for enterprises today. OpenStack is very interesting for enterprises, but difficult to consume. Helion lowers the bar and gives enterprises options they’ve been clamoring for.

First Impressions of EMC World

EMC World, EMC’s core annual conference is this week in Las Vegas and there are a number of very core things to watch out for. EMC’s presence in the enterprise space is legendary. However the enterprise space is gaining momentum in the enterprise IT evolution. The question is: Is EMC in a position to support these changes and continue to provide the leadership they’re known for. Bottom line: Companies are moving to the cloud. On the surface, this could present disaster for EMC. Key will be EMC’s ability to shift and help customers embrace the cloud.

Importance of Storage

Storage has grown up. No longer are the days where storage is just a place to store data and files. Storage is now key to the success of any given application. EMC clearly understands this and needs to evolve to this change. This is new! But it provides a radical shift in opportunity for companies like EMC. Look for EMC to make the connection between applications and storage.

Partnerships & Ecosystem Development

EMC provides leadership to enables IT to provide greater business value. The key is to evolve quickly and provide solutions that are needed both today and moving forward.

One could argue that no one company can (or should) be everything to everyone. Even very large enterprise providers such as EMC, need to embrace this shift. One example of EMC’s recent shift is their partnership with SAP. Frankly, this is a great sign of maturity on the part of EMC. Similarly, HP recently started providing their ‘Shark’ solutions for SAP’s HANA. Look for EMC to embrace this relationship and look to other key relationships between EMC and key enterprise players.

Open Source Software Integration

It is clear that open source software (like OpenStack) is changing the way enterprise solutions are built and consumed within a completely new economic model. The more mature enterprise-class providers will acknowledge this shift and embrace it. Look for EMC to provide greater integration with open source solutions.

Enterprise to Service Provider Shifts

Historically, enterprise-class providers create solutions specifically for enterprises…not service providers. Service provider requirements are quite different from that of their enterprise counterparts. At the same time, the shift in demand from enterprise to service provider happens over time, not all at once. Look for EMC to acknowledge this shift in terms of integration between solutions and changes in their management tools. The impact of general-purpose storage solutions also changes the paradigm for EMC. EMC needs to demonstrate value beyond the underlying physical hardware.

The VMware and Pivotal Impact

A constant question for EMC is how VMware and Pivotal play a role in EMC’s future. Both companies provide solutions that support the evolving changes within the enterprise. But potentially create a loggerhead for openness. Can EMC embrace the changes and innovation from both VMware and Pivotal, but still maintain flexibility in their open approach to alternative solutions? Look for indications of this through their partnerships and reference architectures.

Timing is Everything

EMC provides core storage solutions for key enterprise applications. In many ways, these are the very applications that are both sensitive to enterprises and harder to move. In both cases, this translates to risk. Enterprise customers have been hesitant to make the shift from traditional storage solutions to alternative approaches. That attitude is changing. Change is no longer an option it is a requirement. How is EMC taking a leadership role to help existing enterprise customers make this shift? Look for EMC to provide examples of flexibility beyond the traditional enterprise constraints.

In Summary

This year, more than any in the past, is a watershed year for EMC. This year, the stars are aligning where customers are open for change, looking for help and ready to get started. The traditional enterprise sacred cows are up for grab. Now is the time for EMC to demonstrate how they can make this shift and continue to provide leadership to the enterprise customer.