VMworld Case Study: City of Pittsburgh's IT Success and the Beneficial Synergy Between Virtualized Servers and Desktops

Transcript of a BriefingsDirect Podcast from the VMworld 2011 Conference on how the City of Pittsburgh has launched a major virtualization effort to serve a variety of city departments.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series coming to you from the VMworld 2011 Conference in Las Vegas. We're here in the week of August 29 to explore the latest in cloud computing and virtualization infrastructure developments.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, and I’ll be your host throughout this series of VMware-sponsored BriefingsDirect discussions. [Disclosure: VMware is a sponsor of BriefingsDirect podcasts.]

Our next VMworld case study interview focuses on the City of Pittsburgh’s Information Systems organization and how they’ve deeply embraced virtualization at the server level and now increasingly at the desktop level. We’ll see how critical city services in Pittsburgh are being supported using VMware View 4.6 and the new 5.0 version and how the beneficial synergy between virtualized servers and desktops is shaping up.

To learn more, please join me now in welcoming Alex Musicante, the System Security Architect in the City Information Systems department in Pittsburgh. Welcome to the show, Alex.

Alex Musicante: Welcome.

Gardner: Your environment is almost 100 percent virtualized on the server side. First, why is there such a holistic embrace, and how has that provided the confidence for you to move now aggressively into the desktop virtualization space as well?

Musicante: The City of Pittsburgh decided to embrace virtualization five years or so ago, and we did this in a development environment with VMware. The confidence was not there for the server virtualization, and we decided it's a good place to offer development to our internal engineers.

From there, we kept building and building, and we decided to put our first production system on there. Without a problem, everything started going. What virtualization had to offer for us was higher availability, higher reliability.

When we were remote, we had full console access. We were able to offer higher reliability on our development than our production. That was what led us to go to production. It's very difficult in this day and age with budgets and all that. We're now doing more with less. In order to be able to accommodate that and be able to handle the increased workload with fewer people, it has been embracing server virtualization, and virtualization in general.

Gardner: And to what level are you at server-side virtualization and how many servers are involved at this point?

Musicante: In server virtualization we currently have 16 hosts, 98 percent virtual. There are about 250 or so virtual machines (VMs) between two data centers; and we are using VMware Site Recovery Manager to replicate or to bring up the replicated site in the event of a disaster or any planned maintenance that we need to perform at one data center versus the other.

Gardner: I’d like to hear more about your desktop virtualization strategy, but let's learn a little bit more about the scope and scale of your mission-critical set of services. How many users? You're supporting the mayor’s office, police, and fire. Tell us a little bit about what your department is doing in the City of Pittsburgh?

3,000 users

Musicante: The City of Pittsburgh’s City Information Systems Department, which I work for, has about 3,000 users that they support. That ranges from all public safety -- Police, Fire, EMS, and Building Inspection -- to the branches of government -- the Mayor’s Office, the City Council, and Controller’s Office as well as other important departments like the Finance Department, Personnel, Human Resources, and Parks and Recreation. That's who we're supporting, and each and every one of them has their own little caveats of technology that they need.

Gardner: You’re also of course concerned about security, performance, disaster recovery, which you’ve already mentioned. How has virtualization helped you not just in cutting cost, but in making these more hardened, more resilient services?

Musicante: In terms of hardening and security, when we took our virtualization approach, we started out by saying that we were going to physical-to-virtual (P2V) and migrate a lot of these machines. As we proceeded and matured in that environment, we decided that we were going to build fresh and build new.

So when we did our server virtualization, we looked at virtualization in general. It became an opportunity for us to evaluate how we were going to harden things, how we were going to secure things, and since now we don’t have to support that many physical servers, we can expand on our current capacity, and hardware.

We’re able to separate things, where servers that were multi-functional servers, database server, file server, web server, all in one, now get to be three different servers, and only allow communications to the specific application and supports what they need.

Storage came about and offered a lot more flexibility and a lot of benefit to the City of Pittsburgh, but it was not without hassle.

Gardner: Any issues around storage? Has that been something that you’ve been able to wreak some efficiencies out as well?

Musicante: Storage was very interesting for the City of Pittsburgh. They were coming from an environment where everything was on direct-attached storage (DAS), and going to a storage area network (SAN) environment, which they had. They had an array with an HP 6000, but they were only using 500 gigabytes at the time. So storage transition was huge in terms of reliability, but as well as cost at the same time.

It was an unexpected thing from the city’s perspective, as they were not in the market for an array where everything is central. It was all individual and unique to each host and physical server. So storage came about and offered a lot more flexibility and a lot of benefit to the City of Pittsburgh, but it was not without hassle.

Gardner: So you’ve gone through that process -- 98 percent is very impressive on your server, and your infrastructure. What prompted you to now take the additional step to use View and move into desktop virtualization?

Musicante: The City of Pittsburgh moved into desktop virtualization with very similar characteristics as we looked at the server virtualization as how can we offer higher reliability and higher support, give us more management from a central standpoint back at our remote offices, and offer them to the clients and given them the same if not a better level service for additional benefits from administrative.

Security provisioning

There were a bunch of reasons, and those are like pushing out software updates without downtime for the users. They just log off and get a new one. It was security provisioning software, keeping all the storage and everything is back in our data center, so nothing leaves the facility.

Those were motivating factors as well as keeping administrative cost down. That was the push, and it actually took off. It took some time, but it's being embraced more than I ever would have thought it would have been.

Gardner: Let's learn a little bit more about the nature of your distribution requirements. Obviously, you've got City Hall. You’ve got some centralization. You’ve got police headquarters and fire headquarters, but you’ve also got a lot of distributed sites around the city. So let us better understand your distribution requirements when you’re going to desktop virtualization?

Musicante: There are 175 remote facilities, and they range from connectivity of facilities that are on dark fiber, with 100, 200, 300, 500 users, to these individual remote offices that are located in the park facility, and they have one or two employees that are coming across the DSL line.

One of the major complaints was the problem with connectivity where people are on DSL. They would load the roaming profile or pull documents or upload files and they would see this huge lag where it took them upwards of 30 minutes to start their day off. They're now able to go into View, sign-in, and they're in. So we pretty much recovered 30 extra minutes for some of these employees on a daily basis.

Currently, we're in a mixed mode. We have two environments which we're trying to expedite to move off of.

Gardner: How are you leveraging the PCoIP bandwidth improvements for the WAN?

Musicante: Very well. With each version it's definitely gotten better. Still from a management side we do maintain an IPSec tunnel to all of our facilities.

So PC-over-IP has been what we’ve been using for our remote facilities, even back in the 3.0 days. When 4.1 PC-over-IP came out, 4.5, 4.6, it's been progressively getting better and has higher availability with more response. When 4.6, matured, they gave us the View Security Server, and even now with 5, it has increased and lowered the actual requirements necessary for traffic. So some of our facilities are not feeling the same same pain that they were prior to.

Gardner: As you’ve been making this transition, it would be good to understand better how you’ve adopted version 5. To what degree are you using version 5 for View on your desktop virtualization installations?

Musicante: Currently, we're in a mixed mode. We have two environments which we're trying to expedite to move off of, but we currently have a 4.6 environment and a 5.0 environment. Right now with our 5.0 environment we are embracing Persona Management for some of our EMS employees.

Gardner: That’s another one of those ancillary benefits that people don’t always appreciate but it’s pretty important.

Everything is identical

Musicante: Absolutely. It wasn’t something that we were expecting, but at the same time, when we go back with 20/20 hindsight, we reevaluated and said that that makes sense. Everything is now identical. We use non-persistent machine. So every time they log in, it's a brand-new machine and it’s configured identically the way we want it. The only factor that’s different for each user is their profile.

Gardner: You know how to resolve them, it’s not starting from scratch.

Musicante: Absolutely not starting from scratch. That’s also one of the beautiful benefits. As we move and as we mature with the product and as the product matures itself, we seem to be taking a very parallel progression between the two -- the City of Pittsburgh and VMware View. Persona Management right now has been doing wonders for that.

Those departments that have migrated over and wanted to take this “experiment” of Persona Management have been pleasantly surprised. Definitely, that’s also a point to bring up. When you hear problems from people, when end-users complain, there’s always something that they target. It was networking at one point. Then it moved on to virtualization and everyone said it was the promised virtualization, whether it was or wasn’t.

With View, it actually stands alone. It an outlier. Our users call and they say, "I would like to be on View. I would like to be on that system." For an end-user come back to us and request that blows our mind. We appreciate it. It means we’ve done something right. And it also has to be attributed back to VMware. They’ve done something right.

Gardner: Now that you’ve gotten your feet wet, and then some, with 5.0, what are some of the other salient benefits?

So every time they log in, it's a brand-new machine and it’s configured identically the way we want it.

Musicante: That’s going to give us extra 5 percent. There is always that server virtualization where you’d only get that 95 percent, although we got past that. There’s that 5 percent that you couldn’t for or you wouldn’t for whatever reason. That’s the same market for the desktop virtualization and 5 percent was for high graphic intensive people. We're able to now start to achieve that and we're looking to try to achieve that.

We've not gone through some of the advanced 3D accelerated graphic things that are now out with 5. We are in the process of testing, but it’s currently in our test labs within our department. It’s also in terms of deriving the benefit. We have all of our infrastructure. We're going to with a more green approach. So we're going with zero client. They're currently Dell FX 100s. So they may take one tenth of the power, but there is very little there.

I know that VMware View 5.0 3D acceleration is going to be there and is going to help out, but those people are going to be using the repurposed machines, taking their machine, putting a stripped down version of 7 and use it from there. So we're trying to achieve that, but it’s multiple facets.

Gardner: When we think about your adoption pattern around virtualization, you took your time, learned through your development environment, walked in, made some progress and then really ramped up on adoption for your server side. You’ve followed a similar pattern now with desktops.

What’s next? Is there an additional synergy between a private cloud implementation, where you can get even better synergy efficiency? Tell me what you think about this fear and moving towards even higher plane of efficiency and productivity on that overall delivery from a central data center environment?

Going toward the cloud

Musicante: It’s really unclear where we're going to go. As far as cloud and where the cloud is taking the City of Pittsburgh and where the City of Pittsburgh is going with cloud, City of Pittsburgh currently is in the process of taking that last two percent of our system that isn’t virtualized, which is Exchange, and we are currently in the process of going towards the cloud. So it’s actually going to be going to Google Apps for government for mail.

As far as cloud within ourselves, the City of Pittsburgh is using its resources that we’ve regained or recouped from all of our consolidation purposes, especially with the government processes and mentality of doing more with less. There is a lot of fellow government agencies that we're now going to be partnering with to provide them infrastructure as a service.

That’s where some of the other product lines come in like vCloud Director, to be able to allow them to still manage their infrastructure to use our resources, and we can now ourselves be a cloud provider, which I have been marketing as Cloud9 because there are nine entities including the City of Pittsburgh -- nine entities that we are going to consolidate.

Gardner: I'm impressed with the fact that you’ve been able to move through this progression, recoup those savings, and then apply it to the innovation that get you yet more productivity and savings that you can further apply. That’s commendable. Any words of advice for folks that are perhaps not as far along as you’ve been on this progression? What 20/20 hindsight and words of wisdom might you supply them?

Musicante: With server virtualization, everyone is involved in it, and that is the easy part. Desktop virtualization, is where we got hit hard and the lessons that will be learned is that end-user’s matter. Every step of the way, you need their input. It’s not just an administrative decision saying this is the right thing. You need to be good at psychology to convince your users that this is what they want, and getting them to the point of seeing that this is the best approach or getting their input.

The only thing that I could say is to involve your users. Get them in the proof of concept from the beginning.

That really makes all the difference in the world. You’ll have the same end result and you’ll get to the same target, to the same place, but you need their input. It was not the same with server virtualization. That was for the administrators. They owned it. It was their territory. These desktops that you're taking from the users, yes, they’ll have a better reliability, better up-time, better everything, and better end-user experience, but they feel that that’s theirs, and rightly so.

The only thing that I could say is to involve your users. Get them in the proof of concept from the beginning. Get their input, what they need, what they want, how they want to access it, and with that it’ll no doubt be a sure success.

Gardner: And if you can do it in such a way that they are asking by brand for the virtualized desktop approach, that sounds like an optimal outcome.

Musicante: Absolutely.

Gardner: We’ve been talking about the beneficial synergy between virtualized servers and desktops and how that’s shaping up in Pittsburgh. Join me in thanking our guest. We’ve been here with Alex Musicante, System Security Architect in the City Information Systems Department there in Pittsburgh. Thank you so much, Alex.

Musicante: Thank you so much. Have a good one.

Gardner: Thanks, and also thanks to our audience for joining this special podcast coming to you from the 2011 VMworld Conference in Las Vegas.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host throughout this series of VMware-sponsored BriefingsDirect discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Transcript of a BriefingsDirect Podcast from the VMworld 2011 Conference on how the City of Pittsburgh has launched a major virtualization effort to serve a variety of city departments. Copyright Interarbor Solutions, LLC, 2005-2011. All rights reserved.

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From VMworld, Cosmetics Giant Revlon Harnesses the Power of Private Cloud to Produce Impressive Savings and Cost Avoidance

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series coming to you from the VMworld 2011 Conference in Las Vegas. We're here in the week of August 29 to explore the latest in cloud computing and virtualization infrastructure developments.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, and I’ll be your host throughout this series of VMware-sponsored BriefingsDirect discussions.

Today’s consensus is no longer around an "if" for cloud computing, but the "when" and what types of cloud models are best suited for any particular company. The present challenge then is about the proper transitions to leveraging cloud for improved IT and for far better business results. [Disclosure: VMware is a sponsor of BriefingsDirect podcasts.]

Here at VMworld, as part of the main keynote address, one company and its design and implementation of a private cloud rose above the rest. Revlon and its CIO were in the spotlight for such impressive returns on their cloud. In just two years, Revlon has benefited by nearly $70 million from savings due to cost avoidance and reductions.

Here to tell us about how such savings emerged and to describe one of the most efficient enterprise private cloud implementations in the world is David Giambruno, Senior Vice President and CIO at Revlon. Welcome, David.

David Giambruno: Hello. How are you today?

Gardner: I'm great. We’ve heard so much about your private cloud, and I was really impressed, but something that jumped out of me is that you seem to have jumped into this all-in, rather than piecemeal. Is there a reason for doing private cloud completely, rather than piecemeal? What’s the benefit for doing it that way?

Giambruno: I reference us to Southwest Airlines. What I mean by that is their whole business models were around one plane, one plane to service, and getting very good at that.

From a technology standpoint, we look at ourselves as doing oneness. We pick one way and we get very good at. We own that technology, so we can command it. It’s really about the density of our skill sets and our capability around that order to execute for the business.

When you look at that, it drives a degree of simplicity of execution, because at the end of the day, what we're really focused on is delivering IT capability back to the business faster, cheaper, better. That’s essentially what our cloud was planned to do and has delivered.

Gardner: And this is no small undertaking. It's over 530 applications, 15,000 automated moves a month. Give us a sense of what you’ve done with this singular approach to full competency at this particular data center and your approach to private cloud?

Giambruno: It’s not a data center. It’s the globe. That’s important for everyone to understand. Revlon’s cloud covers all of Revlon’s presences globally. It’s not just a single data center. We have a core data center and then we have little data centers around the world that everything replicates between and things move between.

Entire ecosystem

We’ve built this entire ecosystem to deliver our applications. We started this about five years ago with this whole idea of oneness. We re-ITed the planet. We have one DNS and DHCP structure. We have one global directory. We have one SAN globally. We have one desktop image. We have one server image. That simplicity allowed us to use the cloud as a competitive advantage.

We've saved or avoided $70 million in last two years. If you go by a simple timeline, the first 18 months was laying that oneness foundation. We did that in 18 months. The second 18 months was the virtualization of the servers, the network, and the storage systems globally.

At the end of the 18 months, we were done. That was the first three years. We’ve been running this way for the last two years. We're not in the "I think" mode. We're looking now at how we continually extend the capability of our cloud.

Gardner: Our listeners might be familiar with Revlon, your brand, but tell us more about the scope of your operations and the extent to which IT is supporting your business.

Giambruno: Revlon is a global cosmetics, hair color, beauty tools, fragrance, skincare, anti-perspirant/deodorants, and beauty care company. The vision of Revlon is to deliver glamor, excitement, and innovation through high-quality products at affordable prices.

We didn’t spend any additional money, other than our normal capital refresh. The thing that we did was change the way we're spending our money

We are arguably one of the strongest consumer franchises in the world. Our brand is incredibly powerful. We've got offices around the world. Our global headquarters are in New York. Our flagship manufacturing facility is in Oxford, North Carolina, and our consumers are women around the world. Our products are sold in more than 100 countries.

So we are big, as far as our reach and our capability. Essentially, our cloud delivers roughly 95 percent of all Revlon IT services around the world. We've got a couple of systems that aren’t in there yet. They will be shortly, but for all intents and purposes, we operate everything off of our cloud.

Gardner: Let’s go back to how you got to this point and how you're able to enjoy such significant savings. You have a comprehensive virtualized approach of servers, network, applications, and services. Why is that important?

Giambruno: Again, it’s that density of skill sets. Through this whole implementation, we only used about 10 percent professional services. We didn’t spend any additional money, other than our normal capital refresh. The thing that we did was change the way we're spending our money.

We took that leap to do things differently, because at the end of the day -- I always say this just to keep my and my team’s frame of reference -- we make cosmetics and personal care products. We have lots of brands, but it’s the idea of simplicity.

Faster, better, cheaper

We're not a revenue-generating piece of Revlon. How we can add value back to the business is by doing things faster, better, cheaper? If we're not spending that money, we're avoiding spending money, or giving money back, that means it can go into new product development. It can go into R&D. It can go into marketing. All activities focused on driving profitable growth.

Getting technology to facilitate the business and do things faster and more effectively is really important. To me, it’s the most material thing we’ve done - if you look at your projects. We’ve increased the number of projects we complete every year by 300 percent. When you talk about the business alignment, getting what they want done faster, cheaper, better, to me, that’s it.

Gardner: And you're talking about spanning the cycle from full development to implementation. What’s the role that the cloud has played in terms of increasing the ease in which you move from development to operations?

Giambruno: I've got a couple of buckets. We have reliability. Currently, our cloud has been operating at north of six nines uptime, which has allowed me to take resources out of operations, put them into projects and working with the business.

That’s resulted in speed. If you want a server, if there is a demand for new application or testing something, our cycle time for getting a server up is anywhere from 15-20 minutes and there isn’t the associated cost. For us, a server is just a file. If you want one, great, here you go.

One of the greatest things that we monitor is our ratio of physical to logical servers. When we started this, our server ratio was 1:7. We are now 1:34.

And we manage capacity on the top line. So we essentially move that infrastructure barrier and cost. We’ve disconnected it. One of the greatest things that we monitor is our ratio of physical to logical servers. When we started this, when we first went live three-and-a-half or four years ago, our server ratio was 1:7. We are now 1:34. That’s essentially a 500 percent increase in capacity without the cost.

That makes a material difference in the business not having to pay for things. The speed at which we can nail up applications and the accuracy at which we can do it has made a material difference in our ability to deliver projects to the business.

Gardner: In addition to improving this cycle for development flexibility and resources, you've also devoted significant improvements to disaster recovery (DR). Tell me a little bit about why the private cloud has helped you in DR.

Giambruno: One of the things that we’ve learned very quickly was rate of change. When you're on a cloud, every time someone hits a keystroke on a keyboard, that’s a change in your cloud. Our rate of change is anywhere between 20-30 terabytes a week.

We made a conscious decision as we don’t tier anything in DR; we literally copy everything. There are two pieces of things. I'm most impressed with what my team has done.

Cheaper storage

One is if you take that rate of change and attach it to storage growth, you're roughly at $27 million a year. Through a series of technologies that we employ, we turn that $27 million into $400,000 of storage that we actually have to pay for. So, our shareholders get that benefit, because I don’t think anybody else’s shareholders would have that interest in place.

The second thing is that it does allow us to copy everything. Roughly a month ago, we lost our factory in Venezuela to a fire. Fortunately, no one was hurt, but from the time someone made a phone call, two hours and 40 minutes later -- and roughly two hours of the time of finding people, because it was a Sunday afternoon -- we moved the country of Venezuela up into our DR side, had everything running, and we're giving the users virtual desktops so they could keep working. That’s the power.

Gardner: Peace of mind and trust.

Giambruno: And it’s not fake. We’ve done it. Globally, we are minus-15 minutes replication in their stuff. That’s a little longer or little shorter depending where it is and time of the day, but it goes back to the simplicity. We just copy everything so we don’t have to worry about it.

Gardner: Without going too far down in the weeds, WAN acceleration devices have helped you in a large extent with that in terms of managing that amount and the speed.

Giambruno: Exactly. I don’t think you could run an internal cloud, or much less an external cloud, with the rate of change without those. I'm a huge fan of that.

Gardner: All right. Let’s see metrics wise what this gets for you in data reduction. What sort of volumes have you been able to improve?

We keep finding ways to squeak more out, because, again, the less money we can use, the better for the business.

Giambruno: We’ve run about 96 percent data reduction for everything from compression and de-duplication. As we’ve gone through this, we've also learned that with different storage protocols, block versus CIFS, you get better compression. Running at NFS you pick up 15 percent utilization over block.

Everybody has different business cases for why they need either, but we keep finding ways to squeak more out, because, again, the less money we can use, the better for the business. The more efficient and effective we are, the better for the business, and the less they have to spend on this.

Conversely, we keep leveraging those capabilities in extending our cloud. So we can sling a Windows 7 desktop to an iPad, or we're enabling our cloud so people can use resources wherever they are, regardless of the device. That just makes their lives easier and their ability to do business better, so we can support people growing the company.

Gardner: It’s really impressive to me, David that the more value that you derive from you architecture and approach, the more it contributes to other things. For example, what you’ve described is great for DR, but you’re also reducing your racks, restructuring your server licensing, and also getting to improve asset utilization. So it’s sort of a snowball, but in a virtuous way.

The asset is never cold

Giambruno: It’s interesting because in our DR site we run our test and dev. So the asset is never cold. We're actually using the virtual servers while they are not being used for DR to run all our tests and dev. It just contributes to the uptime. The data is already there.

We reuse assets all the time, and as we go forward, we have plans to go active-active. So now end-of-life servers that are coming out for maintenance, we just throw them in DR, because they can just stay there forever. It doesn’t matter to us if one dies a year. So what? It’s really that ability to keep using those assets to extend capabilities.

Gardner: How about the stack? Can you describe some of your products and what they’ve done for you? Are you venturing to some new areas around either management or governance to try to continue to tweak this to get more bang for the buck?

Giambruno: The bang for the buck for us is that we're working really hard on essentially creating an internal marketplace, like the Apple marketplace or the Android marketplace.

We’ve got desktop virtualization, but we see huge value to the business in creating this internal marketplace. We know a user. We know their devices. We know the applications they're supposed to be using. Depending on the device that they connect, we can format the application they are using and its view to that device to deliver them in context.

To some degree, it’s like going from a LAN to a trusted WAN, where we know the device that’s registered to you. We know you as a user so we can deliver very securely your information, and that information never leaves my data center. So you are only ever viewing the information they are working with.

When that device comes out, our cloud will understand context. We'll be able to deliver that application in the context of the person.

Gardner: If I heard you correctly, you're not only allowing the users to exploit more and better devices, perhaps more suited to what they do in terms of a work style or mobility, but you're also now creating an application marketplace. How does that benefit from your cloud infrastructure?

Giambruno: Our cloud can send them anything. The applications are already running on the cloud. Essentially, when that device comes out, our cloud will understand context. We'll be able to deliver that application in the context of the person. You've got a highly secure environment. We're not moving data anywhere. We’ve got control of the device. We understand who the person is, and so we can deliver in context what they are supposed to have access to, regardless of where they are.

If you have an iPad or anything like that, you have an icon on the front. You’ll have a Revlon marketplace. You open that up, and there will be a list of applications that you have access to that are already authorized for you to have access to, and we will start sending you those applications.

Gardner: It sounds like a real boon to productivity.

Giambruno: We have third-party manufacturers. We have third-party logistics. So we're starting to have the ability to leverage our cloud to deliver applications and have our suppliers and partners work with us much closely.

Management dashboard

The third tangent is the management dashboard -- our ability to deliver information to our management teams so they can make good business decisions faster, because this is essentially all about speed. It's the speed of getting information to our management team so they can make the decisions, understand what’s happening, and ask good questions of the organization in order to make a really good decisions. We're a CPG company and it’s a very competitive environment. To me, our cloud is really about using technology as a competitive advantage.

Gardner: We're about out of time. Any advice for folks listening to our podcast today who might not be fully into this full cloud press that you’ve been describing, but once you start realizing that advantage of a virtuous cycle adoption that gets more efficiency, that gets more improvement, and lower cost. So what’s your advice for folks getting started?

Giambruno: I tend to live by "isms" to make very clear pictures, because I had to move own organization through them. Two things: trust or verify, which maps into the second, which is just try. They are very symbiotic.

Trust and verify that you’re delivering the capabilities that the business needs and that you know they need.

As you look at this, just try, and as you go through that, trust and verify that you’re delivering the capabilities that the business needs and that you know they need. As you go along that path, you can build trust and confidence in yourself and your capabilities, your team can build trust and confidence, and you can show that to your business units.

That's like that snowball that you get rolling. Once everybody realizes that it can be done, it’s more of a human experience thing than it is the technology. The technology works, and we’ve been doing this for a couple of years. I couldn’t imagine operating any other way any longer until the next big geometry train comes, but that’s probably another 10 or 15 years.

Gardner: Great. I really enjoyed your presentation up on the stage. We’ve been talking about successful private cloud and virtualization adoption in a managed and secure way. Joining us right after his VMworld keynote address is David Giambruno, Senior Vice President and CIO at Revlon. Thanks so much, David.

Giambruno: Thank you very much.

Gardner: We’ve been joined here for a special podcast coming to you from the 2011 VMworld Conference in Las Vegas. I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host throughout this series of podcast discussions. Thanks again for listening and come back next time.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Transcript of a podcast discussion from the VMworld 2011 Conference on how Revlon has leveraged the cloud to obtain $70 million in savings and cost avoidance in only two years. Copyright Interarbor Solutions, LLC, 2005-2011. All rights reserved.

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From VMworld, NYSE Euronext on Hybrid Cloud Vision and Strategy Behind the Capital Markets Community Platform Vertical Cloud

Transcript of a BriefingsDirect podcast from the VMworld 2011 Conference focusing on NYSE Euronext's use of cloud in making a foray into providing customer services in a vertical market.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series coming to you from the VMworld 2011 Conference in Las Vegas. We're here in the week of August 29 to explore the latest in cloud computing and virtualization infrastructure developments.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, and I’ll be your host throughout this series of VMware-sponsored BriefingsDirect discussions. [Disclosure: VMware is a sponsor of BriefingsDirect podcasts.]

When we hear about cloud, especially public clouds, we often encounter one-size-fits-all services. Advanced adapters of cloud delivery models are quickly creating more specialized hybrid clouds for certain industries. And they're looking to them as both major sources of new business, and the means to bring much higher IT efficiency to their clients.

Today, we'll learn about how the NYSE Euronext recently unveiled one such vertical offering, their Capital Markets Community Platform. We’ll see how they built the cloud, which amounts to a Wall Street IT services destination, what it does, and how it’s different from other cloud offerings.

Here to tell us about how specialized clouds are changing the IT game in such vertical industries as finance is Steve Rubinow, Executive Vice-President and Chief Information Officer at NYSE Euronext. Welcome, Steve.

Steve Rubinow: Hello there.

Gardner: I’d like to hear more about how you put your cloud together, but before we do that, you are delivering more than compute power on demand. You have some very specialized services of historical trading data, innovative trading services, and even third-party applications. And you're supporting these both inside your cloud as well as your clients'. So maybe you could help us understand how you came about to define this type of offering. Why have you done it this way?

Rubinow: It’s the convergence of a couple of trends and also things that our customer started to tell us. Like a lot of companies, we started to use cloud technology within our own company to service our own internal needs for the reasons that many people do -- lower cost, more flexibility, more rapid spin up, those kinds of things, and we found, of course, that was very useful to us.

At the same time, we've talked to a lot of our customers via our commercial division, which we call NYSE Technologies. By virtue of all the turbulence that's happened in the world, especially in the financial markets in the last couple of years, a lot of our customers -- big ones, small ones, banks, brokerages, and everyone in between -- said the infrastructure that we traditionally have supported within our own companies, is a new model that we could adapt, given these technologies that are available, and given that we NYSE Technologies wants to provide these services. We asked if we should take a different look at what we are doing and see if we should pursue some of these things.

What it comes down right down to is that many of these companies said that maintaining their own infrastructure is not a competitive advantage for them. It’s really a cost of doing business like telephones and office furniture. It would be better if someone else helped them with it, maybe not 100 percent, but like we propose to do, and everyone wins. They get lower cost and they get to offload a burden that wasn’t particularly strategic to them.

We say we can do it with good service and at a good price, and everybody comes away a winner. So we launched this program this summer, with one offering called Compute on Demand, which has a number of attributes that make it different than your run-of-the-mill public cloud.

Higher Requirements

In the capital markets community, we have some attributes of infrastructure, a higher requirement, that most companies wouldn’t care so much about, but in our industry they are very, very critical. We have a higher level of security than an average company would probably pay attention to.

And reliability, as you can imagine. The markets need to be up all the time when they are supposed to be open. A few seconds makes a big difference. So we want to make sure that we pay extra attention to reliability.

Another thing is performance. Our industry is very performance-sensitive. Many of the executions are measured in micro-seconds. Any customer of ours, including ourselves, are sensitive to make sure that any infrastructure that we would depend on has the ability to make sure that transactions happen. You don’t find that in the run-of-the-mill public cloud because there just isn’t a need for the average company to do that.

For that reason, we thought our private offering, our community cloud, was a good idea. By the way, our customers seem to be nodding their heads a lot to the idea as well.

Gardner: Could I understand a bit more about the architecture? You do have public cloud services, those being hosted by you and delivered to your clients, but you're also having some element of this as your clients choose on-premises. How does that work? What's the split or why have it a hybrid model?

We're a very rich source of market data, as one might imagine. We generate a lot of market data ourselves because of the large marketplace we are.

Rubinow: In the spirit of trying to accommodate all the needs that people will have, for many of the cloud services, you get the most leverage out of them, if you as a customer are situated in the data center with us.

Many customers choose to do that for the simple reason of speed-of-light issues. The longer the network is between Point A and Point B, the longer it takes a message to get across it. In an industry where latency is so important, people want to minimize that distance, and so they co-locate there. Then, they have high-speed access to everything that's available in the data center.

Of course, customers outside the data center certainly can have access to those services as well. We have a dedicated network that we call SFTI, Secure Financial Transaction Infrastructure. That was designed to support high speed, high reliability, and high resiliency, things that you would expect from a prominent financial services network. Our customers come to our data centers over that network, and they can avail themselves of the services that we have there too.

Earlier in the conversation I talked about the attributes of the infrastructure, but there's something that we also have in our data center that our customers make use of. They have for a while, and now even more so, in a more flexible manner via some of these cloud services.

We're a very rich source of market data, as one might imagine. We generate a lot of market data ourselves because of the large marketplace we are. We take data from other marketplaces, consolidate them, and provide feeds of those data to our customers. We want to make sure we do that in a fast, cost-effective, flexible way.

Historical data

We have historical data that lot of our customers would like to take a look at and analyze, rather than having to store the data themselves. We have it all here for them. We have applications like risk management and other services that we intend to offer in the future that customers would be hard-pressed to find somewhere else, or if they could find it somewhere else, they probably won't find it in as efficient a manner. So it makes sense for them to come to us to take a look at it and see how they can take advantage of it here.

Gardner: And so it certainly seems that,with the mission-critical nature of the issues and the requirements that you mentioned that applying a cloud model here, if you can do it there you could probably do it anywhere. Let's learn a little bit more about NYSE for those folks on the podcast that aren't familiar with you. Tell us about your organization, your global nature, and where you expect to deliver these cloud services over time?

Rubinow: The full name of the company is NYSE Euronext, and that reflects the fact that we are a collection of markets not only in the United States but also in Europe. We operate a number of cash and derivative exchanges in Europe as well. So we talk about the whole family being part of NYSE Euronext.

We segment our business into three segments. There is the cash business, which is global. There is the derivatives business, which is global, and those are the things that people would have normally associated our company with, because the thing we've been doing for many years.

The newest piece of our business is the piece that I've referred to earlier and that's our commercial technology business, which we call NYSE Technologies. Through that segment of the business, we offer all these services, whether it be software products we might develop that our customers take advantage of or services as we've already referenced.

Over the years, we've been offering these services to our customers, and then a couple of years ago we decided to do it in a much bigger way, because we realized the need was there.

The genesis of that is that we did a lot of good things for ourselves in terms of high speed, high performance, high transaction volumes, reliability, security, functionality, low cost -- all these things that are necessary to be a major competitor in today's market.

In a small way, over the years, we've been offering these services to our customers, and then a couple of years ago we decided to do it in a much bigger way, because we realized the need was there. Our customers told us that they would take advantage of these services. So we made a bigger effort in that regard. Right now, the commercial part of our business is several hundred million dollars a year in terms of revenue.

We have great expectations to grow that significantly over the next few years, and it's through that that we offer it. Now, our two major hubs, our data centers that we just built. are almost brand spanking new. They are full production facilities. We finished them last year.

One is in northern New Jersey and the other one is outside of London. Most of the space in those data centers are for our customers, not for us. We certainly have a piece of those data centers that we run our core operations from, because they were designed to do that, but we also had in mind all the products and services that we can offer our customers that choose to be in the data center with us. So you'll find that a good number of our customers have taken us up on that, and are co-located with us.

We plan to have additional centers not identical to our prime data centers that we have in London and New Jersey, but in Asia, Europe, and North America, where customers can come, take advantage of services that we offer there and then can connect to the other data centers as need be.

Question of latency

I have to add one note in terms of latency. For people who aren't familiar with our obsession with latency, the true textbook cloud profile means that one could execute cloud-like services. If we had 20 data centers across the world, they could be executed across any of those data centers and transparent to the customer as long as they get done.

In ours latency-sensitive world, we are a little bit constrained with some of the services that we offer. We can't afford to be moving things around from data center to data center, because those network differences, when you're measuring things in micro-seconds, are very noticeable to our customers. So some of our services could be distributed across the world, but some of our services are very tied to a physical location to make sure we get the maximum performance.

To add further to that, one of the cornerstone technologies, as we all know, of cloud computing is virtualization. That gives you a lot of flexibility to make sure that you get maximum utilization of your compute resources.

Some of the services we offer can't use virtualization. They have to be tied to a physical device. It doesn't mean that we can't use a lot of other offerings that VMware provides to help manage that process, but some are tied to physical devices, because virtualization in some cases introduces an overhead. Again, when you're measuring in micro-seconds, it's noticeable. Many other of our services where virtualization is key to what we do to offer the flexibility in cost to our customers.

So we have kind of a mixed bag of unique provisioning that's designed for the low-latency portion of our business, and then more general cloud technologies that we use for everything else in our business. You put the two of them together and we have a unique offering that no one else that we know of in the world offers, because we think we're the first, it’s not among the first, to do this.

You put the two of them together and we have a unique offering that no one else that we know of in the world offers.

Also, we have a very focused target customer base here. It's not for the average company. It's for those customers that demand these kinds of things, and we're determined to make sure they get what they want.

Gardner: Okay, Steve, you've certainly outlined a very impressive capability set and because you're involved with cloud services, whether they're built on virtualization infrastructure or not, it seems to me that you're going to be able to add more services and really judge closely what your customers want and demand, gather their trust, demonstrate your value, and then perhaps be in a position to add even more services over the coming year. So this is a rather big business undertaking for you. This cloud is really an instrument for your business in a major way.

Rubinow: That's right. Sometimes we think the core of our business is trading. That is the core. That's our legacy That's the core of what we do. It's a very important source of our business, and it generates a lot of the things that we've been talking about. Without our core business we wouldn’t have the market data to offer to our customers in a variety of formats.

The technologies that we used to make sure that we were the leader in the marketplace in terms of trading technology and all the infrastructure to support that, that's also what we're offering our customers. What we're trying to do is cover all the bases in the capital markets community, and not only trading services, which of course is the center of what we do and it's core to everything that we do.

All the things that surround that our customers can use to support their traditional trading activities and then other things that they didn't used to look to us to do. These are things like extensive calculations that they would not have asked the NYSE to do, but today they do it, because we provide the infrastructure there for them.

Fulfilling a need

It’s the inner layer of trading technology plus everything on the periphery that we can imagine and offer to our customers that our customers can imagine themselves as fulfilling a need of theirs. We're intent on doing that. If you think of this as a supply-chain approach, we’re trying to cover every base we can in the supply chain to make sure that we can be a primary provider for all of our customers’ needs in the space.

Gardner: It’s a little bit soon, I suppose, to develop metrics of success. As you pointed out, you've been doing this now just for the summer in a full general availability mode. But do you have any sense from your customers? Are they witnessing removal of redundancy? Are they able to remove costs. And do they have some ability to compare and contrast the way they did business as usual and the way that they’re starting to employ more of your services? What are some of the underlying numbers perhaps of how this works economically?

Rubinow: From a metrics standpoint, it's probably too early to provide metrics, but I can tell you, qualitatively speaking, the few customers that we have that were early adopters are happy to get on stage with us and give great testimonials about their experience so far. So that’s a really good leading indicator.

Again, without offering numbers, our pipeline of people wanting these services globally has been filling very nicely. So we know we've hit a responsive chord. We expect that we will fulfill the promises that we’re offering and that our customers will be happy. It’s too early, though, to say, "Here's three case studies that show, our customers are saying how it’s gone, because they haven’t been in it long enough to deliver those metrics.

Gardner: Speaking of being on stage, you yourself have been on stage here at VMworld in Las Vegas and told your story. Maybe you could reiterate a bit or summarize what it is that you’ve done vis-à-vis VMware to enable this capability.

Many of the things needed to be done from scratch, because we didn’t have models to look for that we could copy in a marketplace.

Rubinow: When we were putting together our cloud architecture and thinking about the special needs that we had -- and I keep on saying it’s not run-of-the-mill cloud architecture -- we we’re trying to make sure that we did it in a way that would give us the flexibility, facilities, and cost that we needed. Many of the things needed to be done from scratch, because we didn’t have models to look for that we could copy in a marketplace.

And we also realized that we couldn’t do it ourselves; we have a lot of smart people here, but we don’t have all the smart people we need. So we had to turn to vendors. We were talking to everyone that had a cloud solution. Lots of vendors have lots of solutions. Some are robust, and some are not so robust.

When it came down to it, there were only a couple of vendors that we felt were smart enough, able enough, and real enough to deliver the things to us that we felt we needed to get started. I'm sure we will progress over time, and there will be other people who will include the picture.

Top of the list

But VMware was at the top of that list of technologies that we have been using internally for several years, been very happy with. Based on our historical relationship with VMware and the offerings that VMware have in the traditional VMware space, plus the cloud offerings, things like Cloud Director and other things, that we felt that those were good cornerstone technologies to make sure we have the greatest chance of success with few surprises.

And we needed partners to push the envelope, because we view ourselves as being innovative and groundbreaking, and we want to do things that are first in the industry. In order to do those with better certainty of outcome, you have to have good partners, and I think that’s what we found at VMware.

Gardner: We’re almost out of time but now that you've had this experience with building out this cloud in a fashion where, if you could do it your way, you can probably apply this to many other industries in terms of performance and security.

What did you learn? Is there any 20-20 hindsight or Monday morning quarterback types of insights that you could offer to others who are considering such cloud and/or vertical specialty cloud implementations?

Rubinow: It goes back to the comments I just made in terms of choosing your partners carefully. You can’t afford to have a whole host of partners, dozens of them, because it would get very confusing. There's a lot of hype in the marketplace in terms of what can be done. You need people that have abilities, can deliver them, can service them, and can back them up.

You can’t afford to have a whole host of partners, dozens of them, because it would get very confusing.

Every one of us who’s trying to do something a little bit different than the mainstream, because we have a specific need that we’re trying to service, has to go into it with a careful eye towards who we’re working with.

So I would say to make sure that you ask the right questions. Make sure you kick the tires quite a bit. Make sure that you can count on what you’re going to implement and acquire. It’s like implementing any new technology It’s not unique to cloud.

If you're leading the charge, you still want to be aggressive but it’s a risk management issue You have to be careful what you’re doing internally. You have to be careful who you’re working with. Make sure that you dot your I’s and cross your T’s. Do it as quickly as you can to get to market, but just make sure that you keep your wits about you.

Gardner: Excellent. We’ve been talking about advanced adoption of specialized cloud delivery models and how they’re changing the game for IT in such vertical industries as finance. Also, I imagine that this is really going to be changing your business model So congratulations on that.

Rubinow: Thanks.

Gardner: We’ve been talking with Steve Rubinow, the Executive Vice President and Chief Information Officer at NYSE Euronext. I appreciate your time, Steve.

Rubinow: Thank you.

Gardner: And thanks to our audience for joining this special podcast, coming to you from the 2011 VMworld Conference in Las Vegas.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host throughout this series of podcast discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: VMware.

Transcript of a BriefingsDirect podcast from the VMworld 2011 Conference focusing on NYSE Euronext's use of cloud in making a foray into providing customer services in a vertical market. Copyright Interarbor Solutions, LLC, 2005-2011. All rights reserved.

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HP's Liz Roche on Why Enterprise Technology Strategy Must Move Beyond the 'Professional' and 'Consumer' Split

Transcript of a BriefingsDirect podcast on how rapid changes in consumer technology use are finding their way into enterprise IT.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: HP.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you're listening to BriefingsDirect.

Today, we present a sponsored podcast discussion on some deep rumblings of change in how IT provides services and value to its many types of users.

The past several years have spurred a changing set of expectations from users as they engage with technology and services, as both consumers and workers. The sense is that they want to get as much ease of use and productivity from enterprise technology as from their smartphones, social networks, tablets, and cloud-based offerings. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

That means that IT needs to rethink things a bit, to develop a "prosumer" strategy, whereby both the applications and services they provide to internal employees and their end-user customers increasingly bear the hallmarks of modern consumer services.

Their applications may need to behave more like apps. Their provisioning may need to be more like app stores. And self-service and intuitive adoption of new features need to be built in as primary requirements. Ease in social collaboration has become a must.

So how can IT adjust to this shift? What must they do differently, or more importantly, how must they think differently? This is the type of problem that a product or technology itself cannot address. It requires a comprehensive and methodological perspective, one that impacts consumers, business goals, and behaviors around technology use and adoption.

We're here now with an innovator and leader in HP’s Technology Consulting group to learn how enterprises can tackle and exploit such complex challenges as developing a prosumer strategy.

Please join me now in welcoming Liz Roche, a Director in the HP Technology Consulting organization. Welcome to BriefingsDirect, Liz.

Liz Roche: Thanks, Dana. Great to be here. [To connect further with Liz Roche, visit her at her micro site.]

Gardner: It seems that, not that long ago, corporations and businesses were adopting cutting-edge technology and then it would slowly trickle into homes and consumer use, usually in some sort of a watered down approach. You might remember the Bob Interface that Microsoft had. What’s changed since then, Liz?

Roche: A couple of things. First of all, when we look at the velocity of IT innovation, we look at Moore’s Law, which originally described integrated circuits, and that the number of transistors that can be placed on these integrated circuit boards would double approximately every two years.

It has been common for us in IT to take a single data point and apply it across a broad spectrum of disciplines, but if you take that Moore’s Law notion and apply it to technology, it's unbelievably clear that the velocity of innovation continues to double and triple.

Technological singularity

In fact, there are futurists out there who believe that, at some point, this exponential improvement described in Moore’s Law will lead to something that folks are calling a technological singularity, where progress in technology occurs almost instantaneously and is rolled out to the general population.

Cutting-edge technology is no longer limited to the particular geography or location in which it’s going to be used. It’s now focused on the user and the role, and we are going to see that continue.

Gardner: We've seen some mega-trends too with mobile and ubiquitous wireless connectivity. It seems that the adoption of technology now seems to be moving at the volition of the savvy consumer, and the younger folks are growing up in ways in which they are savvy from the get-go. So there seems to be some very large cultural, global trends that are also supporting this.

Roche: Absolutely. If we look at some of the economic trends, you'll start to see that folks who went to college 20 or 30 years ago got out of school with the expectation of working their way up a corporate ladder and adopting technology and tools that were provided by the corporation. The folks who are coming up these days have been weaned on technology.

A really big mega-trend is that our workers of today and tomorrow, not us who are already in the workplace, those folks coming up, are going to not just demand technology that will enable their work and their life, but they will expect it and indeed may not be able to function as well without it.

Mega-trends include the consumerization of IT. At HP, we're calling it the Instant-On Enterprise, where everything and everyone is connected. Immediate gratification and instantaneous results are mandatory. There is this notion of 24×7, always-on commerce. We could go on and on, but I think the big trends are in that general category, at least as pertains to the prosumer.

Gardner: Then, of course, there are also economic shifts. There's been a lot of venture capital directed at applications and services that are consumer-oriented. We've certainly seen tremendous uptake on the social networks by consumers.

So, the application becomes a business for many of these newer companies, and they can move very quickly. They want to be first to market. They want to carve out large market share, and that also accelerates things like social networks, sharing of photos, entertainment streams, and so on.

How do you see the economics of this shifting and pushing the adoption patterns that enterprises need to try to catch up to?

Roche: It's funny, because in many ways it has become a numbers game. Some of these applications or businesses price their products at low or no cost -- with the objective being conversion to paid, either subscriptions or paid services and advertising, but also the value of the connection, the value of the social network as part of the business model.

Shared knowledge

Organizations or enterprises today are going to be taking philosophies like that and applying it to more traditional goods and services in the marketplace, where the value isn't necessarily on the initial transactions. It’s not about a 99-cent Angry Birds [app]. It's about what happens once you're using the technology, the product, the service, the relationships that you form, the advertising, and the knowledge that can be shared.

Gardner: So we have this cauldron of bubbling and churning change, and of course shifts like this can offer terrific opportunity, as we have seen from some companies that have come into markets and been very successful very quickly. Facebook certainly comes to mind. There's also, of course, challenges, and perhaps peril, when shifts happen and you don't react to them properly.

We have now enterprises looking at these shifts, looking at how consumer and business technology adoption patterns are merging, melding, or at least certainly have a more complex relationship than in the past. What is it that you think organizations need to try to do in order to be on that advantageous side of shifts, rather than at a disadvantage?

Roche: A bunch of things. Let's start with the big picture. Organizations that are truly instant-on enterprises are those that serve their constituents, customers, employees, partners with whatever they want and need instantly, at any point in time, through any channel. So organizations that are instant-on, and those are the kinds of organizations that we need to evolve to, are going to explore better ways to run business and government by designing new process and methods, by building flexible systems that interact with greater personalization.

I think back to 10 or 15 years ago, when we were talking about mass customization and the science fiction world that was all about personalization of every transaction and every purchase. Companies are going there. I think companies will also need to look at frameworks for transacting efficiently and securely.

Creating a framework for this instant-on enterprise will enable this whole idea of everybody on, and the prosumer, the professional, and the consumer coming together as one person, one view, with two different sides to them, two worlds.

Governance is going to become ever more important. There are certainly legal and ethical goals and constraints. Creating a framework for this instant-on enterprise will enable this whole idea of everybody on, and the prosumer, the professional, and the consumer coming together as one person, one view, with two different sides to them, two worlds. That's going to have to be where organizations move to support.

Gardner: I suppose as we see these two worlds, consumer and business or professional, we certainly don't want to have to create distinct infrastructures to support those activities. It's certainly a time for convergence and consolidation as well. So we look for a more common and extensible infrastructure to support all of these activities.

The other thing that struck me by what you are saying is that this needs to be inclusive. It's not just a technology equation. It's business, culture, behavior, demographics, and localization -- really a complex undertaking. Help me understand about how you at HP are looking at this. It seems to be a terrific opportunity.

Roche: HP has a long, very cool history of being really innovative, but at HP today, our vision is to provide seamless and context-aware experiences for this connected world.

We're in a particularly interesting time and place to provide this to our customers, because we are going through it ourselves, both internally -- as an employee I can see it -- but also in how we interact with our customers, our partners, and all our constituents. [To connect further with Liz Roche, visit her at her micro site.]

Not just about prosumers

Just by way of example, at HP it's not just about prosumers, folks like me doing personal activities during work hours and work during personal hours. It's about these personal activities evolving into becoming work activities.

I'm not just messing around on YouTube because I like looking at the latest videos. I'm working You Tube, because that's where our HP Channel is. It’s one of the places where our HP Channel lives and it's one of the ways that I communicate with my clients. The same thing with Twitter and Facebook, and indeed even this podcast, speaking with you. These are prime examples of things that we at HP place a very high value on and our technology infrastructure has been overhauled to support that.

The other interesting thing about HP being well-positioned to do this is that we have a depth and breadth of both services and products that meet almost every requirement of this new instant-on enterprise.

Certainly, we would never expect to see an HP-only environment. We are very, very focused on what's right for our clients and our customers. But, the fact that I can reach back into my toolkit of HP brain power and HP Labs and our various products and service units and gain access to the information and the mind share that my clients need, is a hugely valuable tool to have at my disposal.

Gardner: Clearly, HP has a large portfolio, terrific global reach, lots of technology, and as you point out, crosses the boundary and barrier between consumer activities and business activities. But, what about the technology consulting organization, how does that come to bear on these sorts of problems, on making a shift to a more prosumer thinking and approach to IT?

The way our services are structured, we're designed to meet the various needs of transforming to an instant-on enterprise.

Roche: Let's talk a little bit about what all clients should look for in a consulting organization.

The way our services are structured, we're designed to meet the various needs of transforming to an instant-on enterprise, I mean that is the entire backbone of how we have structured ourselves.

If you look at our Converged Infrastructure team, for example, we have folks who are not only designing services to support a converged infrastructure, but we have folks who are looking at helping organizations create a transformation vision for what it means, how to get there, what your roadmaps need to look like, or how mature are you as an organization.

One of the things that we like to do a lot and, in fact, anyone considering working with a consulting partner should look for this as well, is to help folks understand their own maturity. I'm not talking about the traditional capability maturity model. We certainly we can do that, but we like to look at things in a slightly different way. We like to look at organizational culture and the risk profile of that organization. That’s unique to how we work at HP.

If I look at an organizational maturity model, we're looking at where culturally folks are going to be placed in terms of how they want to take a risk. Are they a science-fiction type organization where they're comfortable being on the bleeding edge, extremely early adopter organizations.

I've got this taxonomy in my brain from way back when I was an industry analyst and we used to talk about future organizations, which are these early adopter IT organizations, not bleeding edge, but willing to be early adopters.

Broker of services

There are the folks that are in the mainstream, and then there are the stalled IT organizations that look to deliver IT support, rather than moving to enable the business with IT and to have a seat at the table and to be not just a provider but an actual broker of services.

When you're a broker of IT services, which is what we teach our clients to be, you are providing not just IT support, but you're also providing new cost models for business process enablement. You're looking at things like service delivery in one of three ways: traditional, which is in-house or outsourced, private cloud, public cloud.

At HP Consulting, we believe that you're driving to create a service portfolio that drives a value chain. And the value chain delivers these services to the consumer, customer, citizen, via whatever channel is most appropriate -- web, chat, IM, etc.

Gardner: I suppose too, Liz, when you focus this problem set through a consultative solution or methodology, you're also going to gain the experience of what those consultants have found in other regions of the world, or industry to industry, or from having worked in a consumer environment, to then taking that into a business environment.

That’s something you don’t get from technology alone. It’s really experiential, a tribal knowledge. It seems to me that the consultative function is perhaps more important when we come into this period of change that we are facing now than almost any other.

We've been working really hard to make sure that we share our experiences, and to capture that tribal knowledge, to systematically input it into places where others can access it.

Roche: It’s one of the things that is pervasive throughout HP Consulting, that it really takes a village to deliver services and top-notch innovation to our clients.

Every time I walk into a client site with a team of consultants, it’s not just one of us working independently in our area of specialty. It’s about all of us working together. It’s about that tribal knowledge.

We've been working really hard to leverage the innovation in the field. So we need a really strong knowledge management capability. We've been working really hard to make sure that we share our experiences, and as you say, through tribal knowledge, to capture that tribal knowledge, to systematically input it into places where others can access it. And, of course, all while respecting the privacy and the non-disclosures we have with our clients.

When I walk into a healthcare organization to start working on a digital hospital activity, let's say, I've got the knowledge of all the folks who have come before me, including our long history of innovations.

The bottom line is that if someone says to me, what's very different and special about your team walking in versus someone else's team walking in, I'm going to say it is the depth and breadth of HP that's behind me, including the way that we work with our customers and partner with our clients to bring the depth and breadth of HP to bear in every engagement.

Gardner: So we're crossing chasm of consumer to business. We're crossing chasms of sourcing with cloud versus on-premises, and we're certainly looking at the difference that a consultative understanding of the processes and the technology, so crossing the chasm of business issues and IT issues.

That's nothing new. We've seen that, but it just seems to me that the stakes are higher now, and that people need to be treated as people. This is not a matter of throwing a data center over the wall and saying, "Here, good luck with that." You really need to have almost a behavioral, empathetic, sympathetic approach to bringing people into change. It's not easy to change.

Resistance to change

Roche: No, it's not. And while it may seem a little trite to say it, if anything is going to derail a project, it's going to be resistance to change, lack of a good change management strategy, and lack of executive support and governance.

The cool thing about this whole instant-on enterprise approach that we are taking is that we do actually have a taxonomy for change, and the taxonomy is both social and technology, and it basically is a way to connect all these different constituents to meet their needs.

The taxonomy itself says, if you're going to transform to an instant-on enterprise, the first level of the taxonomy is looking at the business and government requirements. Within IT, the best practice today seems to be all about alignment, business IT alignment.

We think that it's really not about alignment, but it's about taking that next step towards empowerment and empowering the business with IT. That means becoming a strategic service broker. That's the third level of this taxonomy.

To be a strategic service broker, you need to look at disciplines like converged infrastructure, security, information optimization, application and infrastructure transformation, and look to deliver those through those three service delivery mechanisms we spoke of earlier -- public cloud, private cloud, or traditional delivery, which includes outsourcing. Build those up into a service portfolio and roll it out in terms of services that are delivered.

We do actually have a taxonomy for change, and the taxonomy is both social and technology.

If you group this whole thing together, you're looking at a hybrid delivery capability, where there is no one-size-fits-all for every organization, but the taxonomy acts as a map and a rallying point to get to this idea of everybody on and supporting the prosumer. [To connect further with Liz Roche, visit her at her micro site.]

Gardner: How about some examples of how this can work when it's pulled together properly, when you have the alignment of services, consulting, technology, business buy-in, and so forth? I know that you've had experience within HP doing this yourselves, but what about outside examples? Maybe you can’t name the companies, but maybe the industries or at least the use case scenarios where this is working?

Roche: We actually have several great success stories with clients and I'm going to start with one client, Black & Veatch. We worked with them recently to deploy a unified communications solution from Microsoft that, for them, is going to pay for itself in 18 months, which is pretty amazing when you consider that we did this, basically creating a virtual environment to help Black & Veatch solve their client’s problems.

We worked with the client to design a unified communications solution and configure the architecture. We set up an infrastructure, including servers and load balancers and the like. We tested our Unified Communications software and voice, and we obviously are using voice over IP (VoIP).

We did all sorts of enhanced service desk and helpdesk implementations. And we also provided our own helpdesk -- or we set one up for them that was staff by HP to resolve issues during the cut-over. We did lots of training to help the users adapt to the new systems.

Reduced risk

After we put in place new converged technologies like IM and Mobile Access and desktop sharing, we replaced their phone system, and we gave them integrated fax and voicemail and email. We ended up reducing the risk of their outages through lots of built-in redundancies. We did this all in about 20 weeks.

As I said, they expect this project will pay for itself in 18 months, and essentially we gave Black & Veatch the ability to communicate and collaborate internally and with their customers around the world.

We worked with another client recently as well to provide them digital healthcare and digital hospital capabilities, that included things like video, telemedicine, that included the converged infrastructure to support voice and IM and other things like that.

We also worked with them to provide automated client case-management technology. I'm speculating a little bit, because some of the decisions haven’t totally been made, but imagine nurses walking into patient rooms carrying HP TouchPads, for example, rather than lugging the big heavy carts that nurses today do when they are doing automated medical records. It's really cool stuff like that, but again speaks to the whole nature of the prosumer.

We're working with education, a couple of education organizations, and in one instance working with some speech therapists to use tablet devices and handheld devices to help students with speech problems throughout their therapy. Rather than use flash cards, they're using specially built software that students can touch and listen to and things like that. Again, it's this integration of consumer and professional capabilities.

The idea that you have is provisioning that might look like app stores. Applications might look like apps on your device.

Gardner: Those are some really concrete examples of what’s happening and how the user is sort of empowered. I think we're going to see more of this of course.

Are there any harbingers of where you see the trends pointing us in terms of how technology and methodology consulting come together? One of the big things of course with the economy still being tough in many regions is how to do more with less. Is there a continuing economic incentive or I suppose even an engine of adoption that we should expect in the future, Liz?

Roche: Absolutely. In fact, I might even go so far as to call it an economic imperative. You talk about a harbinger of things to come, and I would say look at this whole reemergence of this prosumer trend. When I say reemergence, I'm talking about back in the '80s when Alvin Toffler first made up the idea that there is a convergence. He wasn’t calling it a professional, but he was calling it a producer and a consumer.

If we take that and look at how it has evolved into this notion that one person with a separate consumer and professional life is over and that we are looking for convergence, that’s the harbinger. The idea that you have, as you said in your introduction, provisioning that might look like app stores. Applications might look like apps on your device.

But as we see technology continue to increase in its velocity, as we see more and more technology adopted into our homes earlier and more deeply embedded into everything we do. That’s where we are going to see the future go.

Tight integration

Just think for a minute about our pets. We're embedding our pets with microchips that have not just their name and their address, but maybe if they have got some medical risks, they are on there.

I think we are going to start seeing things like that, that tight integration, maybe not embedded in our bodies, but certainly medical records, certainly integrated payment devices, the idea that paper money goes away and we have one card that does every thing. Organizations that aren’t at least thinking in that direction are really going to miss the boat.

Gardner: In any event, it certainly sounds like whatever steps you take today will have a greater impact because this is an ongoing effect. I don’t see any end in sight to the tremendous amount of change that we're facing. I'm sure that these are going to be ongoing discussions.

I want to thank our guest today. We have been here with Liz Roche, a Director in the HP Technology Consulting Organization. Thanks so much, Liz.

Roche: Thanks, Dana. It was an absolute pleasure to be here.

Gardner: And I want to thank our audience for joining us for this sponsored podcast discussion. This is Dana Gardner, Principal Analyst at Interarbor Solutions. You've listening to BriefingsDirect. Thanks, and come back next time.

To connect further with Liz Roche, visit her at her micro site.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect podcast on how rapid changes in consumer technology use are finding their way into enterprise IT. Copyright Interarbor Solutions, LLC, 2005-2011. All rights reserved.

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