Tuesday, March 04, 2014

Case Study: How Dell Converts Social Media Analytics Benefits into Strategic Business Advantages

Transcript of a BriefingsDirect podcast on how social media creates a gold mine of information for businesses of all sizes and how proper analytics and responses build a competitive advantage.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

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 the expanding role and heightening importance of social media data as an essential ingredient for companies to gain strategic business advantage.

Gardner

We’ll examine specifically how Dell has recognized the value of social media for more than improved interactions and brand awareness. Dell has successfully learned from social media how to meaningfully increase business sales and revenue.

According to Dell, the data, digital relationships, and resulting analysis inherent in social media and social networks interactions provide a lasting resource for businesses and their customers. And this resource has a growing and lasting impact on many aspects of business -- from research, to product management, to CRM, to helpdesk, and, yes, to sales.

To learn more about how Dell has been making the most of social media for the long haul, please join me now in welcoming Shree Dandekar, Senior Director of Business Intelligence and Analytics at Dell Software. Welcome, Shree.

Shree Dandekar: Good Morning, Dana, thanks for having me on.

Gardner: We’re glad you’re here. Businesses seem to recognize that social media and social-media marketing are important, but they haven’t very easily connected the dots in how to use social media for actual business results. What do you think has been holding them back from not yet realizing the payoffs?

Dandekar: There is an interesting dynamic happening between enterprises and some of the small businesses. But before I go there, let’s talk about the landscape in terms of the adoption of social media by businesses overall.

Dandekar
It’s not that businesses don’t realize the value of social media. In fact, many businesses are looking at simple, social media listening and monitoring tools to start their journey into social media.

The challenge is that when you make these investments into any kind of a listening or monitoring capability, people tend to stop there. It takes them a while to start collecting all the data on LinkedIn, Facebook, or Twitter. It takes some time for them to make some meaningful sense out of that. That’s where the dynamic comes in when you talk to an enterprise business. They’ve really moved on.

So, there are several stages within a social media journey, the very first one being listening and monitoring, where you start capturing and aggregating data.

From there, you start doing some kind of sentiment analysis. You go into some kind of a social-media engagement, which leads to customer care. Then, you go into questions like social return on investment (ROI) and then, try to bring in business data and mash up that together. This is what’s known as Social CRM.

So, if you say that these are the six stages of social-media maturity model or a social-media lifecycle, some of the enterprise businesses have really matured in the first three or four phases, where they have taken social media all the way to customer care. Where they are struggling now is in implementing technologies where you can derive an actual ROI or business value from this data.

Listening and monitoring

Whereas, if you look at some of the small businesses or even mid-sized companies, they have just started getting into listening and monitoring, and the reason is that there are not many tools out there that appeal to them.

I won’t name any specifically, but you know all the big players in the social media listening space. They tend to be expensive and require a lot of reconfiguration and hands-on training. The adoption of social media in the small-sized business or even mid-sized businesses has been slow because these guys don't want to invest in these types of tools.

By the way, here is another big differentiator. If you look at enterprises, they don't shy away from investing in multiple tools, and Dell is a great example. We have a Radian6 deployment, social-media engagement tools, and our own analytic tools that we build on top of that. We tried each and every tool that's out there because we truly believe that we have to gain meaningful insights from social media, and we won't shy away from experimenting with different tools.

Mid-sized companies don't have the budget or resources to try out different tools. They want a single platform that can do multiple things for them – essentially a self-service-enabled social-media intelligence platform.

If I start with listening, I just want to understand who is talking about me, who my influences are, who are my detractors, what are my competitors talking about, and whether or not I can do a quick sentiment analysis. That's where I want to start.

Gardner:  I was very impressed to learn that Dell has been doing social media since 2006, so going quite a ways back. How important is this to Dell as a company and how important do you think other companies should view this? Is this sort of a one-trick pony, or is there a lasting and expanding value to doing social media interactions analysis?
Dell was built on the value of going direct to consumers and the blog had to communicate and live by those same values.

Dandekar: In addition to leadership from the top, it took a perfect storm to propel us fully into social. In July 2006 when pictures and a report surfaced online out of Osaka, Japan of a Dell laptop spontaneously combusting due to a battery defect (which happened to impact not just Dell, but nearly every laptop manufacturer), it was a viral event of the sort you don’t want. But we posted a blog titled “Flaming Notebook” and included a link to a photo showing our product in flames – which caused some to raise an eyebrow.

I will pause there for a second. How many of you would do that if something similar happened to your business? But Michael Dell made it crystal clear: Dell was built on the value of going direct to consumers and the blog had to communicate and live by those same values.

This is 2006, when the internet and the true value of blogging and everything was just becoming more relevant. That was a turning point in the way we did customer care and the way we engaged with our customers. We realized that people are not only going to call an 800 support number, but are going to be much more vocal about it through sources like social media blogging on Twitter and Facebook.

That's how our journey in social media began and it’s been a multi-year, multi-investment journey. We started looking at simple listening and monitoring. We built a Social Media Command Center. And even before that, we built communities for both our employees and our customers to start interacting with Dell.

Idea Storm

One of the most popular communities that we built was called Idea Storm. This was a community in which we invited our customers to come in and share ideas product improvements they want. This community was formed around 2007. To date, there have been close to 550 different ideas that we got from this community that have been implemented in Dell products.

Similarly, we launched Employee Storm, which was for all the employees at Dell, and the idea was similar. If there are some things in terms of processes or products that can be changed, that was a community for people to come in and share those ideas.

Beyond that, as I said, we built a Social Media Command Center back in 2010. And we also stood up the Social Media and Communities University program. We started training our internal users, our employees, to take on social media.

Dell firmly believes that you need to train employees to make them advocates for your brand instead of shying away and saying, “You know what, I'm scared, because I don't know what this guy is going to be saying about me in the social media sphere.”

Instead, we’re trying to educate them on what is the right channel and how to engage with customers. That's something that Dell has developed over the last six years.
Social media has become a core part of our DNA, and it fits well because of the fact that our DNA has always been built on directly interacting with our customers.

Gardner: Well, that's very interesting. You’ve taken a one-way interaction, made it two-way, and then expanded well beyond that. How far and wide do the benefits of social media go? Are you applying this to help desk, research, new products, service and support, or all the above? Is there any part of Dell that doesn't take advantage from social media?

Dandekar: No, social media has become a core part of our DNA, and it fits well because of the fact that our DNA has always been built on directly interacting with our customers. If a customer is going to use social media as one of their primary communication channels, we really need to embrace that channel and make sure we can communicate and talk to our customers that way.

Gardner: I also was impressed to learn that you are directly making sales through Twitter to the tune of millions of dollars. How does that work? How do other companies learn from your example of not only having many business benefits that are so called soft benefits, but also direct sales? How do you make direct sales through Twitter?

Dandekar: We've invested a lot in this space. We have a big channel through Salesforce.com where we interact with all the leads that come in through Salesforce.

Taking that relationship to the next level, is there a way I can smartly link the Salesforce leads or opportunities to someone's social profile? Is there a way I can make those connections, and how smartly can I develop some sales analytics around that? That way, I can target the right people for the right opportunities.

Creating linkage

That's one step that Dell has taken compared to some of our industry competitors, to be very proactive in making that linkage. It’s not easy. It requires some investment on your part to take that next step. That's also very close to the sixth stage that I talked about, which is social CRM.

You’ve done a good job at making sure you’re taking all the social media data, massaging it, and deriving insight just from that. Now, how can you bring in business data, mash it up with social data, and then create even powerful insights where you can track leads properly or generate opportunities through Twitter, Facebook or any other social media sources?

Gardner: Shree, it seems to me that what you’re doing is not only providing value to Dell, but there is a value to the buyer as well. I think that as a personal consumer and a business consumer I’d like for the people that I am working with in the supply chain or in a procurement activity to know enough about me that they can tailor the services, gain insight into what my needs are, and therefore better serve me. Is there an added-value to the consumer in doing all this well, too?

Dandekar: Absolutely. The power of social media is real-time. Every time you get a product from Dell and tweet about it or say you like it on Facebook, there is a way that I can, in real-time, get back to that customer and say I heard you and thanks for giving us positive or a negative feedback on this. For me to take that and quickly change a product decision or change a process within Dell is the key.
The power of social media is real-time.

There are several examples. One example that comes to mind is the XPS 13 platform that we launched. The project was called “Project Sputnik.” This was an open-source notebook that we deployed on one of our consumer platforms XPS 13.

We heard a lot of developers saying they like Dell, but really wanted a cool, sexy notebook PC with all the right developer tools deployed on that platform. So, we started this project where we identified all the tools that would resonate with developers, packaged them together, and deployed it on the XPS 13 platform.

From the day when we announced the platform launch, we were tracking the social media channels to see if there was any excitement around this product.

The day we launched the product, within the first three or four hours, we started receiving negative feedback about the product. We were shocked and we didn’t know what was going on.

But then, through the analytics that we have developed on top of our social media infrastructure, we were able to pinpoint that one of the product managers had mistakenly priced the notebook higher than that of a Windows notebook. The price should not have been higher than that of a Windows notebook, and that’s why a lot of developers were angry. They thought that we were trying to price it higher than traditional notebooks.

We were able to pinpoint what the issue was and within 24 hours, we were able to go back to our product and branding managers and talk to them about the pricing issue. They changed the pricing on dell.com and we were able to post a blog on Engadget.

Brand metrics

Then, in real time, we were able to monitor the brand metrics around the product. After that, we saw an immediate uptick in product sentiment. So, the ability to monitor product launches in real time and fix issues in real time, related with product launches, is pretty powerful.

One traditional way you would have done that is something called Net Promoter Score (NPS). We use NPS a lot within Dell. The issue with it is that it is survey-based. You have to send out the survey. You collect all the data. You mine through it and then you generate a score.

That entire process takes 90 to 120 days and, by the time you get it, you might have missed out on a lot of sales. If there was a simple tweak, like pricing, that I could have done overnight, I would have missed out on it by two months.

That’s just an example, where if I had waited for NPS to tell me that pricing was wrong, I would have never reacted in real-time and I would have lost my reputation on that particular product.

Gardner: It’s pretty important nowadays to have that short latency between reacting to a market and satisfying a market. We don’t have the luxury of going a year or two. That’s super important these days.
The ability to monitor product launches in real time and fix issues in real time, related with product launches, is pretty powerful.

Shree, as you mentioned, Dell has doing this now for quite a few years. What are they getting for their effort? How extensive is your listening and analysis from social media?

Dandekar:  Just to cite some quick stats, Dell has more than 21 million social connections through fans on Facebook, followers on Twitter, Dell community members, and more across the social web.

We talked about customer care and the engagement centers, and I talked about those six stages of the social media journey. Based on the Social Media Command Center that we have deployed within Dell, we also have a social outreach services team that responds to an average of 3,500 posts a week in 14 languages and we have an over 97 percent resolution rate.

We talked about Idea Storm and I had talked about the number of ideas that have been generated out of that. Again, that’s close to 550 plus ideas to date.

Then, we talked about the Social Media and Communities University. That’s an education program that we have put in place, and to date, we have close to 17,000 plus team members who have completed the social media training certification through that program.

Social-media education

By the way, that’s the same module that we have started deploying through our social media professional services offering, where we’ve gone in and instituted the Social Media and Communities University program for our customers as well.

We have had a high success rate just finding some of the customers that have benefited through our social media professional services team and also deploying Social Media Command Center.

Red Cross is a great example where we have gone and deployed the Social Media Command Center for them to be much more proactive in responding to people during the times of calamities.

Clemson University is another example, where we've gone and deployed a Social Media Command Center for them that’s used for alternate academic research methods and innovative learning environments.

Gardner: Tell me a little bit about what SNAP is. It seems like we are taking some of this ability to peer into markets and go even deeper than just input and data -- we are really getting into what's motivating people and how that works in a complex ecosystem.

Dandekar: SNAP stands for Social Net Advocacy Pulse. This was a product that we developed in-house. As I said, we have been early users of listening and monitoring platforms and we have deployed Social Media Command Centers within Dell.
It takes a long time to get to that ease of use ability for anybody to go in and look at all these social conversations and quickly pinpoint to an issue.

The challenge, as we kept using some of these tools, was that we realized that the sentiment accuracy was really bad. Most of the times when you take a quote and you run it through one of the sentiment analyzers, it pretty much comes back saying it's neutral, when there’s actually a lot of rich context that’s hidden in the quote that was never even looked at.

The other thing was that we were tracking a lot of metrics around graphs and charts and reports, which was important, but we kind of lost the ability to derive actual meaningful insights from that data. We were just getting bogged down by generating these dashboards for senior execs without making a linkage on why something happened and what were some of the key insights that could have been derived from this particular event.

None of these tools are easy to use. Every time I have to generate a report or do something from one of these listening platforms, it requires some amount of training. There is an expectation that the person who is going to do that has been using this tool for some time. It takes a long time to get to that ease of use ability for anybody to go in and look at all these social conversations and quickly pinpoint an issue.

Those are some of the pain points that we realized. We asked, “Is there a way we can change this so we can start deriving meaningful insights? We don’t have to look at each and every quote and say, it's a neutral sentiment. We can actually start deriving some meaningful contact out of these quotes.”

Here is an example. A customer purchased a drive to upgrade a dead drive from a Dell Mini 9 system, which originally came with an 8 GB PCI solid state drive. He took the 16 GB drive and replaced the 8 GB drive that was dead. The BIOS on the system instantly recognized it and booted it just fine. That’s the quote that we got from one of the customer’s feedback.

Distinct clauses

If I had run that quote through one of the regular sentiment analyzing solutions, it would have pretty much said it's neutral, because there was really nothing much that it could get from that it. But if you stop for a second and read through that quote, you realize that, there are a couple of important distinct clauses that can be separated out.

One thing is that he’s talking about a hard drive in the first line. Then, he’s talking about the Dell Mini 9 platform, and then he’s talking about a good experience he had with swapping the hard drive and that the BIOS was able to quickly recognize the drive. That’s a positive sentiment.

Instead of looking at the entire statement and assigning a neutral rating to it, if I can chop it down into meaningful clauses, then I can go back to customer care or my product manager and say, “Out of this, I was able to assign an intensity to the sentiment analysis score.” That makes it even more meaningful to understand what the quote was.

It's not going to be just a neutral or it's not going to be a positive or negative every time you run it through a sentiment analysis engine. That’s just one flavor.

You asked about sentiment gravity. That’s just one step in the right direction, where you take sentiment and assign a degree to it. Is it -2, -5, +5, or +10? The ability to add that extra color is something that we wanted to do on top of our sentiment analysis.
I can really mine that data to understand how I can take that and derive meaningful insights out of that.

Beyond that, what if I could add where the conversation took place. Did it take place on Wall Street Journal or Forbes, versus someone’s personal blog, and then assign it an intensity based on where the conversation happened?

The fourth area that we wanted to add to that was author credibility. Who talked about it? Was it a person who is a named reputed person in that area, or was it an angry off customer who just had a bad experience. Based on that, I can rate and rank it based on author credibility.

The fifth one we added was relevance. When did this event actually happen? If this event happened a year or two back, or even six months back, and someone just wants to cite it as an example, then, I really don’t want to give it that high rating. I might change the sentiment to reflect that it's not that relevant based on today’s conversations.

If I take some of these attributes, sentiment, degree of sentiment, where the conversation happened, who talked about it and when and why did that conversation happen and then convert that into a sentiment score, that’s now a very powerful mechanism for me to calculate sentiment on all these conversations that are happening.

That gives me meaningful insights in terms of context. I can really mine that data to understand how I can take that and derive meaningful insights out of that. That’s what SNAP does, not just score a particular quote by pure sentiment, but add these other flavors on top of that to make it much more meaningful.

Make it usable

Gardner: So the information is out there, people are telling you what they want, they’re interacting in such a way that you can gain very valuable insights, if you take the proper steps to get that information and make it usable in your own organization.

Dandekar: That’s right.

Gardner: I’m going to put you on this spot here, Shree, because you mentioned earlier that small to medium-sized businesses are looking for a one-stop shop to do this.

You’ve already demonstrated what Dell is doing internally. Have you considered productizing this and perhaps creating a service for the smaller companies that want to do this sort of social analysis and help them along the way?
We also want to make sure we’re bringing tools to market to service those mid-market companies as well.

Dandekar: We’re still working through those details and figuring out as we always do the best ways to bring solutions to market, but for us, mid-market is our forte. That’s an area where Dell has really excelled. For us to be in the forefront of enterprise social media is great, but we also want to make sure we’re bringing tools to market to service those mid-market companies as well.

By the way, we have stood up several solutions for our customers. One of them is the Social Media Command Center. We’ve also stood up social media professional services and we offer consulting services even to small- and mid-sized companies on how to mature in a social media maturity cycle. We are also looking at bringing SNAP to market. But if you’re talking about specific software solutions, that’s an area that we’re certainly looking into, and I would just say, “Stay tuned.”

Gardner: We’ll certainly look for more information along those lines. It's something that makes a lot of sense to me. Looking to the future, how will social become even more impactful?

People are increasing the types of activities they do on their mobile devices and that includes work and home or personal use and a combination of them, simultaneous perhaps. They look to more cloud models for how they access services, even hybrid clouds. It’s stretching across your company’s on-premises activities and more public cloud or managed service provider hosted services.

We expect more machine-to-machine data and activities to become relevant. Social becomes really more of a fire hose of data from devices, location, cloud, and an ever-broadening variety of devices. Maybe the word social is outdated. Maybe we’re just talking about data in general?

How do you see the future shaping up, and how do we consider managing the scale of what we should expect as this fire hose grows in size and in importance?

Embarking on the journey

Dandekar: This is a great question and I like the way you went on to say that we shouldn’t worry about the word social. We should worry about the plethora of sources that are generating data. It can be Facebook, LinkedIn, or a machine sensor, and this fits into the bigger picture of what's going to be your business analytics strategy going forward.

Since we’re talking about this in the context of social, a lot of companies that we talk to -- it can be an enterprise-size company or a mid-market-size company -- most of the time, what we end up seeing is that people want to do social media analytics or they want to invest in the social media space. Some of their competitors are doing that, and they really don’t know what to expect when they embark on this journey.

A lot of companies have already gone through that transformation, but many companies are still stuck in asking, “Why do I need to adopt social media data as part of my enterprise data management architecture?”

Once you cross that chasm, that’s where you actually start getting into some meaningful data analytics. It's going to take a couple of years for most of the businesses to realize that and start making their investments in the right direction.
It's going to take a couple of years for most of the businesses to realize that and start making their investments in the right direction.

But coming back to your question on what's the bigger picture, I think it’s business analytics. The moment you bring in social media data, device data, the logs, sources like Salesforce, NetSuite -- all this data together now presents the unified picture using all the datasets that were out there.

And these datasets can also be datasets like something from Dun and Bradstreet, which has a bunch of data on leads or sales, mixing that data with something like Salesforce data and then bringing in social media data. If I can take those three datasets and convert that into a powerful sales analytics dashboard, I think that’s the nirvana of business analytics. We’re not there yet, but I do feel a lot of industry momentum going in that direction.

Gardner: I agree that that’s the end game and we’re only a few innings in, but it's very impressive and an exciting time to be looking out to that.

I'm afraid we’ll have to leave it there. You've been listening to a sponsored BriefingsDirect Podcast discussion on how social media data has emerged as an essential ingredient and how companies gain strategic business advantage.

And we've seen how Dell has been making the most of social media for the long haul by positively impacting many aspects of it's business. We've also heard that getting a handle on managing the flow of social media puts organizations -- whether they are small, medium or large enterprises -- in a position to better manage all kinds of data as that data becomes available.

So a big thank you to our guest, Shree Dandekar, Senior Director of Business Intelligence and Analytics at Dell Software.

Dandekar: Thanks, Dana.

Gardner: And of course a big thank you, too, to our audience for joining this insightful discussion. This is Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks again, for listening and don’t forget to come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Transcript of a BriefingsDirect podcast on how social media creates a gold mine of information for businesses of all sizes and how proper analytics and responses build a competitive advantage. Copyright Interarbor Solutions, LLC, 2005-2014. All rights reserved.

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Thursday, February 20, 2014

Istanbul-based Finansbank Manages Risk and Security Using HP ArcSight, Server Automation

Transcript of a sponsored BriefingsDirect podcast on how a large Turkish bank uses HP server tools for rapid applications deployment while ensuring heightened security.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on IT innovation and how it’s making an impact on people’s lives.

Gardner
Once again, we’re focusing on how companies are adapting to the new style of IT to improve IT performance and deliver better user experiences, and business results. This time, we’re coming to you directly from the HP Discover 2013 Conference in Barcelona.

We’re here the week of December 9 to learn directly from IT and business leaders alike how big data, mobile, and cloud, along with converged infrastructure are all supporting their goals.

Our next innovation case study interview focuses on Finansbank, an Istanbul-based bank, and how they better manage risk. To learn how, we’re joined by Ugur Yayvak, Senior Designer of Infrastructure at Finansbank in Istanbul. Welcome.

Ugur Yayvak: Thank you.

Gardner: Tell us a bit about your organization and how you're operating in terms of keeping compliance and risk issues in check?

Yayvak
Yayvak: Finansbank is one of the largest banks in Turkey and it has more than 12,000 employees and 600 branches in the country. Banking is a competitive world in Turkey, and for compliance we have to be rapid. We have to do things faster. And security is a big deal for us.

Gardner: And what sort of challenges have you had in terms of managing your systems in order to keep up with their compliance and regulatory issues and needs?

Yayvak: Because we’re a bank, we need to obey the payment-card industry (PCI) and Sarbanes-Oxley (SOX) rules. To accomplish this, we had to create some scripts to check the data on the servers. It takes lots of time to do compliance reporting. Security is a must for the servers, because of attacks. We need to be compliant and secure and we need to move fast on the server side.

Gardner: And so as you began to look for solutions to these problems, how did you come up with a solution? Where did you go for help?

Compliance and integrity

Yayvak: First of all, we needed a compliance and integrity-check solution. We did a proof of concept (POC) with three different vendors and we checked for performance, compliance, tool support, ease of use, reporting tools, and the support that the vendor would give us. After all that, we chose HP Server Automation.

Gardner: Tell us a little bit about that process. How long have you been using HP Server Automation software?

Yayvak: We’ve been using it for six months. Three months was for the implementation process, but during implementation, we created our first rules. We did some basic agent rollouts on the servers. Now, we have 90 percent coverage on all of our UNIX servers on the Server Automation site.

Gardner: Have you been experimenting with other HP products, perhaps something around service management for ongoing operations?

Yayvak: We’re using Service Management and also the ArcSight tool. We integrated Server Automation with the Service Management, ArcSight, and also Operations Orchestration to do our jobs in less time.

Gardner: What have been some of the results that you’ve seen since you've been implementing these solutions? What have you been gaining in terms of better control and how are your auditors viewing this rollout?
With the help of the Server Automation, it’s very simple and we can get the results in much less  time.

Yayvak: We’re creating monthly reports for our audit teams, and it takes less time. With the help of Server Automation, we’ve scheduled our jobs and the audit rules and reports that we want to share with our audit teams.

It takes much less time than it did before. Also, with the help of the scripts, the daily system administration tasks are very easy. Previously, we were doing everything by hand. With the help of the Server Automation, it’s very simple and we can get the results in much less  time.

Gardner: As you gain more automation for your configuration and your servers, does that offer you some advantage if should you choose to migrate to a new platform or even to a different type of hosting environment?

If there is an opportunity to take this beyond just operations into transformation, should you want to move your servers to a co-lo or a managed service provider or even a cloud provider?

Yayvak: We don’t have a plan, but maybe after using this product, we might.

Looking to the future

Gardner: What about the future? Do you have plans to move further, perhaps using ArcSight? Are there other security benefits that you have in mind?

Yayvak: One is to improve audit server automation, because there are some scripts that we’ve changed. Those changes that we’ve done on the servers must be audited. We also want to integrate Server Automation with ArcSight to track the changes that we’ve made. And if we’ve made an error, we will be alerted by the ArcSight server.

Gardner: Because you’re such a large organization with many branch offices, is there full centralization? Is this all happening in one data center or are you able to use this across a wider distribution?

Yayvak: Right now, we’re using our central data center, and also the disaster recovery site. But maybe later on, we can implement this for the branches to take care of the data servers there.

Gardner: That usually means some significant cost savings.

Yayvak: For sure.
We need to be compliant and secure and we need to move fast on the server side.

Gardner: Okay, is there anything here at the Discover show in Barcelona that is intriguing to you? What announcements or advances in the products capture your interest?

Yayvak: The new version of Server Automation came out this year, and we wanted to know what has changed. Also Finansbank will use lots of HP's products like Service Manager, Orchestration Manager, Operations Manager. This event was a good place to learn what has changed across these services.

Gardner: Well great. I’m afraid we'll leave it there. We’ve been talking about how Finansbank in Istanbul has been improving their server automation and bringing a better compliance and audit capability as a result. I'd like to thank our guest, Ugur Yayvak, Senior Designer of Infrastructure at Finansbank.

I'd also like to thank our audience as well for joining us for this special new style of IT discussion coming to you directly from the HP Discover 2013 Conference in Barcelona.

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

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a sponsored BriefingsDirect podcast on how a large Turkish bank uses HP server tools for rapid applications deployment while ensuring heightened security. Copyright Interarbor Solutions, LLC, 2005-2014. All rights reserved.

You may also be interested in:

Tuesday, February 04, 2014

HP Service Virtualization Eases Developer and Operations Lifecycle Support for Shunra Software

Transcript of a BriefingsDirect podcast on the benefits to software development from greater use of service and network virtualization.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Dana Gardner: Hello, and welcome to the next edition of the HP Discover Podcast Series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing sponsored discussion on IT innovation and how it’s making an impact on people’s lives.

Gardner
Once again, we’re focusing on how companies are adapting to the new style of IT to improve IT performance, deliver better user experiences, and boost business results. This time, we’re coming to you directly from the recent HP Discover 2013 Conference in Barcelona.

We’re here to learn directly from IT and business leaders alike how big data, mobile, and cloud -- along with converged infrastructure -- are supporting their goals in new and interesting ways.

Our next innovation case study highlights how Shunra Software uses service virtualization to help its developer users to improve the distribution, creation, and lifecycle of software applications. To learn how, we're joined by Todd DeCapua, Vice President of Channel Operations and Services at Shunra Software, based in Philadelphia. Welcome, Todd.

Todd DeCapua: Thank you, Dana. It's great to be here with you.

Gardner: Let's think a little bit about this market. There are a lot of trends affecting software developers. They have mobile on their minds. They have time constraints issues. They have to be faster, better, and cheaper along the apps lifecycle way. What among the trends is most important for developers?

DeCapua
DeCapua: One of the biggest ones -- especially around innovation and thinking about results, specifically business results -- is Agile. Agile development is something that, fortunately, we've had an opportunity to work with quite a bit. Our capabilities are all structured around not only what you talked about with cloud and mobile, but we look at things like the speed, the quality, and ultimately the value to the customers.

We’re really focusing on these business results, which sometimes get lost, but I try to always go back to them. We need to focus on what's important to the business, what's important to the customer, and then maybe what's important to IT. How does all that circle around to value?

Gardner: With mobile we have many more networks, and people are grasping at how to attain quality before actually getting into production. How does service virtualization come to bear on that?

Distributed devices

DeCapua: As you look at almost every organization today, something is distributed. Their customers might be on mobile devices out in the real world, and so are distributed. They might be working remotely from home. They might have a distribution center or a truck that has a mobile device on it.

There are all these different pieces. You’re right. Network is a significant part that unfortunately many organizations have failed to notice and failed to consider, as they do any type of testing.

Network virtualization gives you that capability. Where service virtualization comes into play is looking at things like speed and quality. What if the services are not available? Service virtualization allows you to then make them available to your developers.

In the early stage, where Shunra has been able to really play a huge difference in these organizations is by bringing network virtualization in with service virtualization. We’re able to recreate their production environments with 100 percent scale -- all prior to production.

Getting back to the idea of innovation, some people are seeing these as innovations of a test environment. When we think about the value to the business, now you’re able to deliver the product working. So, it is about the speed to market, quality of product, and ultimately value to your customer and to your business.

Gardner: And another constituency that we should keep in mind are those all-important operators. They’re also dealing with a lot of moving parts these days -- transformation, modernization, and picking and choosing different ways to host their data centers. How do they fit into this and how does service virtualization cut across that continuum to improve the lives of operators?
Service virtualization and network virtualization can benefit them is by being able to recreate these scenarios.

DeCapua: You’re right, because as the delivery has sped up through things like Agile, it's your operations team that is sitting there and ultimately has to be the owners of these applications. Service virtualization and network virtualization can benefit them by being able to recreate these in-production scenarios.

Unfortunately, there are still some reactive actions required in production today, so you’re going to have a production incident. But, you can now understand the network in production, capture those conditions, and recreate that in the test environment. You can also do the same for the services.

We now have the ability to quickly and easily recreate a production incident in a prior-to-production environment. The operations team can be part of the team that's fixing it, because again, the ultimate question from CIOs is, “How can you make sure this never happens again?”

We now have the way to quickly and confidently recreate incidents and fix it the first time, not having to change code in production, on the fly. That is one of the scariest moments in any of the times when I've been at the customer site or when I was an employee and had to watch that happen.

Agile iterations

Gardner: As you mentioned earlier, with Agile, we’re seeing many more iterations on applications as they need to be rapidly improved or changed. How does service and network virtualization aid in being able to produce many more iterations of an application, but still maintain that high quality?

DeCapua: One of our customers actually told us that -- prior to leveraging network virtualization with service virtualization -- he was doing 80 percent of his testing in-production, simply because he knew the shortcomings, and he needed to test it, but he had no way of re-creating it. Now, let's think about Agile. Let's think about how we shift and get the proven enterprise tools in the developer’s hands sooner, more often, so that we can drive quality early in the process.

That's where these two components play a critical role. As you look at it more specifically and go just a hair deeper, how in integrated environments can you provide continuous development and continuous deployment? And with all that automated testing that you’re already doing, how you can incorporate performance into that? Or, as I call it, how do you “build performance in” from the beginning?

As a business person, a developer, a business analyst, or a Scrum Master, how is it that you’re building performance into your user scenarios today? How is it that you’re setting them up for understanding how that feature or function is going to perform? Let's think about it as we’re creating, not once we get two or three sprints into use and we have our hardening sprint, where we’re going to run our performance scenario. Let's do it early, and let's do it often.
Get the proven enterprise tools in the developer’s hands sooner, more often, so that we can drive quality early in the process.

Gardner: If we’re really lucky, we can control the world and the environment that we live in, but more often than not these days, we’re dealing with third-party application programming interfaces (APIs). We’re dealing with outside web services. We have organizational boundaries that are being crossed, but things are happening across that boundary that we can't control.

So, is there a benefit here, too, when we’re dealing with composite applications, where elements of that mixed service character are not available for your insight, but that you need to be able to anticipate and then react quickly should a change occur?

DeCapua: I can't agree with you more. It’s funny, I am kind of laughing here, Dana, because this morning I was riding the metro in Barcelona and before I got to the stop here, I looked down to my phone, because I was expecting a critical email to come in. Lo and behold, my phone pops up a message and says, “We’re sorry, service is unavailable.”

I could clearly see that I had one out of five bars on the Orange network, and I was on the EDGE network. So, it was about a 2.5G connection. I should still have been able to get data, but my phone simply popped up and said, “Sorry, cannot retrieve email because of a poor data connection.”

I started thinking about it some more, and as I was engaging with other folks today at the show, I asked them why is it that the developer of the application found it necessary to alert me three times in a row that it couldn’t get my email because of a poor data connection? Why didn’t it just not wait 30 seconds, 60 seconds, 90 seconds until it did, and then have it reach out and query it again and pull the data down?

Changing conditions

This is just one very simple example that I had this morning. And you’re right, there are constantly changing conditions in the world. Bandwidth, latency, packet loss and jitter are those conditions that we’re all exposed to every day. If you’re in a BMW driving down the road at 100 miles per hour, that car is now a mobile phone or a mobile device on wheels, constantly in communication. Or if you’re riding the metro or the tube and you have your mobile device on your hands, there are constantly changing conditions.

Network virtualization and service virtualization give you the ability to recreate those scenarios so that you can build that type of resiliency into your applications and, ultimately, the customers have the experience that you want them to have.

Gardner: Todd, tell us a bit about Shunra and your application-performance engineering solutions?

DeCapua: So, application performance engineering (APE) is something that was created within the industry over a number of years. It's meant to be a methodology and an approach. Shunra plays a role in that.

A lot of people had thought about it as testing. Then people thought about it as performance testing. At the next level, many of us in the industry have defined it is application engineering. It’s a lot more than just that, because you need to dive behind the application and understand the in’s and the out’s. How does everything tie together?
Understanding APE will help you to reduce those types of production incidents.

You’d mentioned some of the composite applications and the complexities there -- and I’m including the endpoints or the devices or mobile devices connecting through it. Now, you introduce cloud into the equation, and it gets 10 times worse.

Thinking about APE, it's more of an art and a skill. There is a science behind it. However, having that APE background knowledge and experience gives you the ability to go into these composite apps, go into these cloud deployments, and leverage the right tools and the right process to be able to quickly understand and optimize the solutions.

Gardner: It's fairly obvious to me, but I do get this question from time to time. Why aren’t the older scripting and test-bed approaches to quality control good enough? Why can't we keep doing what we've been doing?

DeCapua: This question is very often asked of me, too. In the United States recently, October 1 of 2013, there was a large healthcare system being rolled out across the country. Unfortunately, they used the old testing methodologies and have had some significant challenges. HP and Shunra were both engaged on October 2 to assist.

Understanding APE will help you to reduce those types of production incidents. All due to inaccurate results in the test environment, using the current methodologies, about 50 percent of our customers come to us in a crisis mode. They say, “We just had this issue, I know that you told us this is going to happen, but we really need your help now.”

They’re also thinking about how to shift and how to build performance in all these components -- just have it built in, have it be automatic, and get the results that are accurate.

Coming together

Gardner: Of course HP has service virtualization, you have network virtualization. How are they coming together? Explain the relationship and how Shunra and HP together go to market?

DeCapua: To many people's surprise, this relationship is more than a decade old. Shunra’s network-virtualization capability has, for a long time, been built in to HP LoadRunner, also is now being built into HP Performance Center.

There are other capabilities that we have that are built into their Unified Functional Testing (UFT) products. In addition, within service virtualization, we’re now building that product into there. It’s one that, when you think about anything that has some sort of distribution or network involved, network virtualization needs to come into play.

Some people have a hard time initially understanding the service virtualization need, but a very simple example I often use is an organization like a bank. They’ll have a credit check as you’re applying for a loan. That credit check is not going to be a service that the bank creates. They’re going to outsource it to one of the many credit-check services. There is a network involved there.

In your test environment, you need to recreate that and take that into consideration as a part of your end-to-end testing, whether it's functional, performance, or load. It doesn’t matter.
In your test environment, you need to recreate that and take that into consideration as a part of your end-to-end testing, whether it's functional, performance, or load.

As we think about Shunra, network virtualization and the very tight partnership that we've had with HP for service virtualization, as well as their ability to virtualize the users, it's been an OEM relationship. Our R and D teams sit together as they’re doing the development so that this is a seamless product for the HP customer to be able to get the benefit and value for their business and for their customers.

Gardner: Let's talk a little bit about what you get when you do this right. It seems to me the obvious point is getting to the problem sooner, before you’re in production, extending across network variables, across other composite application-type variables. But, I’m going to guess that there are some other benefits that we haven't yet hit on.

So, when you've set up you're testing, when you have virtualization as your tool, what happens in terms of paybacks? Not just the obvious ones, but it seems to me that this becomes a strategic benefit, influencing your business in terms of your overall performance, not just your application's performance.

DeCapua: There are many benefits there, which we have already covered. There are dozens more that we could get into. One that I would highlight, being able to pull all the different pieces that we've been talking about, are shorter release times.

TechValidate did a survey in February of 2013. The findings were very compelling in that they found a global bank was able to speed up their deployment or application delivery by 30 to 40 percent. What does that mean for that organization as compared to their competitor? If you can get to market 30 to 40 percent faster, it means millions or billions of dollars over time. Talk about numbers of customers or brands, it's a significant play there.

Rapid deployment

There are other things like rapid deployment. As we think about Agile and mobile, it's all about how fast we get this feature function out, leveraging service virtualization in a greater way, and reducing associated costs.

In the example that I shared, the customer was able to virtualize the users, virtualize the network, and virtualize the services. Prior to that, he would never have been able to justify the cost of rebuilding a production environment for test. Through user virtualization, network virtualization, and service virtualization, he was able to get to 100 percent at a fraction of the cost.

Time and time again we mention automation. This is a key piece of how you can test early, test often, ultimately driving these accurate results and getting to the automated optimization recommendations.

Gardner: How about getting started for organizations that have been doing traditional testing? Perhaps they’ve been using some HP products but they’ve been resisting going the full service virtualization monty, if you will. Any suggestions about skills, organization, how do you get started?
Let's start with that small scale, doing it right, and delivering that speed, quality, and value.

DeCapua: The most fun piece for me is that you actually need to do something. I can't tell you how many times I get started, and people say, “Yeah, this is a great idea. Yeah, it's wonderful.” They walk out of one of the session at HP Discover and they say, “Yes, I love it. Yeah, I've got my next three things that I need to do.”

It’s more than a tool. It’s really about the people. How is it that you can get this vision? Maybe it starts with one simple business case. Let's go through what that business case is to help me to understand what's the value to your organization. Can we calculate out some return on investment (ROI)? Can we get to what is the break-even point of this investment?

I hate to start talking about business and I hate to start talking about metrics. But as we look at the history of innovation, or what it means with the new style of IT, being able to improve IT performance, delivering the better user experience, and ultimately, who is paying the bill -- it's the business. So, if we can't deliver better business results, this is all for naught.

To get started, there are a number of different pieces that I recommend. But rather than create this huge strategy and everything else, what I would recommend doing is -- I hate to use the term “minimum viable product,” but really that's what I hear when I am in the smaller startup organizations.

It's, “What is that minimum viable product? How can we deliver the most value with the least investment in the shorter period of time, show that incremental value, and then start expanding it more?” It could be expanding it to other teams. It could be expanding it into the other business units, and then it could be going to the entire enterprise. But, let's start with that small scale, doing it right, and delivering that speed, quality, and value.

Gardner: Before we wrap it up, I’d like to just look a bit into the future. Things have been moving so rapidly. What comes next in terms of software productivity? Where should organizations be thinking in terms of vision?

Slow down

DeCapua: I see Agile, mobile, and cloud. There are some significant risks out in the marketplace today. As organizations look to leverage these capabilities to benefit their business and the customers, maybe they need to just slow down for a moment and not create this huge strategy, but go after “How can I increase my revenue stream by 20 percent in the next 90 days?” Another one that I've had great success with is, “What is that highest visibility, highest risk project that you have in your organization today?”

As I look at The Wall Street Journal, and I read the headlines everyday, it's scary. But, what's coming in the future? We can all look into our crystal balls and say that this is what it is. Why not focus on one or two small things of what we have now, and think about how we’re mitigating our risk of  looking at larger organizations that are making commitments to migrate critical applications into the cloud?

You’re biting off a fairly significant risk, which that there isn’t a lot there to catch you when you do it wrong, and, quite frankly, nearly everybody is doing it wrong. What if we start small and find a way to leverage some of these new capabilities? We can actually do it right, and then start to realize some of the benefits from cloud, mobile, and other channels that your organization is looking to.

Gardner: I guess, too, the role of software keeps increasing in many organizations. It's not a tool. It's becoming the business itself and, as a fundamental part of the business, requires lots of tender love and care, right?
The more that we can think about that and tune ourselves and make ourselves lean and focused on delivering better quality products, we’re going to be in the winning circle more often.

DeCapua: You got it. The only other bit that I would add on to that is looking at the World Quality Report that was presented this morning by HP, Capgemini, and Sogeti, they highlighted that there is an increased spend from the IT budget, and a rather significant increase in spend from last year in testing.

It’s exactly what you’re saying. Organizations didn’t enter the market thinking of themselves as a software house. But time and time again, we’re seeing how people who treat what they do as a software house ultimately is improving not only life for their internal customers, but also their external customers.

So I think you’re right. The more that we can think about that and tune ourselves and make ourselves lean and focused on delivering better quality software products, we’re going to be in the winning circle more often.

Gardner: Well, very good. I’m afraid we’ll have to leave it there. We’ve been learning about how Shunra Software is improving its network virtualization and service virtualization in partnership with HP for overall improved software-development quality. Please join me in thanking our guest Todd DeCapua, Vice President of Channel Operations and Services at Shunra Software. Thank you, Todd.

DeCapua: Thank you very much, Dana. I appreciate the opportunity, and thank you all.

Gardner: Yes, thanks to our audience for joining the special discussion coming to you from the HP Discover 2013 Conference in Barcelona. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this on-going series of HP-sponsored discussions. Thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: HP.

Transcript of a BriefingsDirect podcast on the benefits to software development from service and network virtualization. Copyright Interarbor Solutions, LLC, 2005-2014. All rights reserved.

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