HP's Anton Knolmar Recaps Highlights of Software Universe Conference, Looks to Future

Transcript of a BriefingsDirect podcast with HP's Anton Knolmar on HP announcements and customer reaction from Software Universe conference in Washington, DC.

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

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series, coming to you from the HP Software Universe 2010 Conference in Washington D.C. We're here the week of June 14, 2010, to explore some major enterprise software and solutions trends and innovations making news across HP’s ecosystem of customers, partners, and developers.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions and I'll be your host throughout this series of HP sponsored Software Universe Live discussions.

We're here again with Anton Knolmar, Vice President of Marketing for HP Software & Solutions. Welcome back. How is the show going for you, Anton?

Anton Knolmar: Thank you, Dana. It’s going very well. I'm really excited about having so many customers here. We've been sold out, which is a good sign. Customers are also really interested about sharing their solutions and sharing their information with us. At the end of the day, where we are totally committed is providing value to those customers.

We kicked it off the first day on the main stage, with our new Executive Vice President, Bill Veghte, talking about IT as an inflection point and how, with our solution portfolio, can help our customers provide even greater value for their organizations. That was a good lead-in.

I was even more excited, when we had customers on stage. Delta Air Lines’ Theresa Wise did a fantastic job explaining the challenges they were facing with integrating and acquiring Northwest Airlines, and getting those two companies together using our portfolio.

We got compliments and feedback about Dara Torres and what she was showing on stage here, on how you can compete, independent of what age, if you try to give your best in your personal, private, and business life. This was a good learning experience for all of our customers.

Then, we moved to the next event, our blockbuster product announcement, BSM 9.0, rolling this one out across the world, with different solutions in a single pane of glass, with the automation, and simplification.

It’s not "one solution fits all," and that’s what we are trying to do with our customers as well -- a really customized solution approach.

The feedback we received from our customers is that this is exactly what they've been looking for. And, they are even looking forward to more simplification. The simpler we can make it for them in their complex life, in their complex environment, whatever comes in from cloud, from virtualization, from new technologies, the better they all feel and the better we can serve them.

Gardner: We heard, of course, about the inflection point that you and Bill Veghte referred to -- lots more virtualization, cloud permutations, different types of use, thinking about sourcing, and the the mobility factor. When these come together, it seems to be almost a black hole for some folks. They're a little bit worried about how to deal with it, but they know that they can’t avoid it.

What have you been hearing from the participants in some of the panels and the executive tracks? How are people approaching some of these inflection points?

Knolmar: It wasn't just one customer who had one story to tell. We had to set aside an executive track, where we had a different levels of customers, talking about the problems and how they're facing problems. It’s not "one solution fits all," and that’s what we are trying to do with our customers as well -- a really customized solution approach.

What they're telling us in terms of this broad range of delivery is that it's a huge opportunity for everyone in the cloud. Also, everyone is saying, "We hate the word cloud," but that’s the word everyone uses. The delivery models that are out there at the moment, the new technology, the mobility factor, the growth of the smartphones, the mobile devices, is a big thing, and will be more in the future.

Being future-ready

Our customers are still challenged with their current environment, with their legacy environment. They say, "We still have mainframes to manage and all this new technology is coming in here." What they're trying to do is, and what we are trying to equip them with the current portfolio that we have, is to manage, monitor, and make the best out of the current investments, but also with our solutions portfolio, to be future ready.

So whatever new technology comes out, they're equipped and they can adopt this immediately in their current environment. They should be really happy with what we announced this week to be future ready for their future investments, as well whatever comes up.

Gardner: And, we're here in Washington D.C. with a very large public-sector crowd, as you pointed out earlier, a record-breaking attendance for you. Is there anything in particular from the public sector that you have found here as a takeaway?

Knolmar: A public sector track naturally combines nicely with being in Washington, and I hope we can continue this, even moving a little bit forward for next year. The public sector has similar problems, not too much different from what you hear from our other customers. Naturally there's more governmental, federal interest, in terms of how the budget process works in these areas.

Everyone wants to get the latest technologies deployed and get the best out of them, maximize, be cost efficient, and be effective, as well as serve their business and their lines of business.

But, from the overall topics and overall themes, everyone wants to get the latest technologies deployed and get the best out of them, maximize, be cost-efficient, and be effective, as well as serve their business and their lines of business. We hear similar stories from the public sector customers.

Gardner: As we wrap up Software Universe 2010, where are we going next? Are there some initiatives we should look forward to? It seems that folks are energized. Where can we lead them next in terms of anticipating some new solutions to their problems?

Knolmar: As you said, this was an exciting moment for us, getting our blockbuster out. A new blockbuster is coming, so stay tuned for that. That happens in September. We will also take Software Universe on the road. The next event is happening in Israel in a few weeks. We have a big crowd coming in, 1,500 customers, which is a huge gathering for Israelis.

The other piece is that we have HP TechForum, which is our sister conference, where we get the enterprise business, going on in Las Vegas this week. We're definitely excited. Stay tuned here. We're in Europe, in Barcelona, at the end of November, with our next Software Universe event. Hopefully, we can transmit and tell a bit more stories with you, Dana, from Software Universe, Barcelona. Thank you.

Gardner: Very good. We've been discussing the excitement at Software Universe in Washington and looking forward to some additional rollouts, news, and solutions from the software community at HP.

We've been joined by Anton Knolmar, Vice President of Marketing at HP Software & Solutions. Thanks again for joining.

Knolmar: Thank you.

Gardner: And thanks to our audience for joining this special BriefingsDirect podcast, coming to you from the HP Software Universe 2010 Conference in Washington D.C. Look for other podcasts from this HP event on the hp.com website, as well as via the BriefingsDirect Network.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this series of Software Universe Live 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: HP.

Transcript of a BriefingsDirect podcast with HP's Anton Knolmar on HP announcements and customer reaction from Software Universe conference in Washington, DC. Copyright Interarbor Solutions, LLC, 2005-2010. All rights reserved.

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HP's Anand Eswaran Outlines New Pragmatic Approaches to Solutions, Simplicity for Offering 'Everything as a Service'

Transcript of a BriefingsDirect podcast with HP's Anand Eswaran on professional services and a new approach to offering customer support, from HP's latest software conference in Washington, DC.

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

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series, coming to you from the HP Software Universe 2010 Conference in Washington D.C. We're here the week of June 14, 2010, to explore some major enterprise software and solutions trends and innovations making news across HP’s ecosystem of customers, partners, and developers.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions and I'll be your host throughout this series of HP sponsored Software Universe Live discussions.

We're now joined by Anand Eswaran, Vice President of Professional Services for HP Software & Solutions. Welcome back to BriefingsDirect.

Anand Eswaran: Lovely to be back here, Dana.

Gardner: We've heard a lot here at the conference about governance, management solutions, and new products. I'd like to hear a bit more about what you're bringing to the table from the Professional Services and solutions’ point of view.

Eswaran: I'll take the time to talk about what we're doing here, and then we can approach the larger context of where we're going.

This week, we announced the launch of a new portfolio element called Solution Management Services, and I'll refer to it as SMS through this conversation.

Very briefly, what it does is offer the ability for us to support the entire solution for the customer, which is different from the past, where software companies could only support the product. That’s the heart of what it means. But, it’s the first step in a very large industry transformation we are ushering in, and it would be great to have a chat about that.

Gardner: We've certainly heard a lot about hybrid computing and virtualization. We're expecting more mobile devices to come into play in the enterprise. This is creating a rather difficult transition period -- but with an awful lot of potential. Many people are looking at it as a way to increase their productivity and ultimately to cut costs.

So, the question is how to get there. Where do you see professional services fitting in to the hardware, software, and services combination?

Eswaran: Good question, Dana. Let me take a step back on this. If I look at the industry across two dimensions; the first dimension is the software industry in general, not just HP Software. You see organizations constructed in different ways. You have the support organization, which basically supports the product, and you have the consulting organization, which basically deploys the solution.

When a customer is thinking about a solution, they make a buying decision. The next step for them is to deploy the products they buy as a result of that solution, which they committed to from a roadmap standpoint. Once they finish that, they have to operate and maintain the solution they put in place.

The classic problem in the industry is that, when the customer has a problem, after they have deployed the solution, they call the support organization. The support organization, if they determine the problem is actually with the project and the customizations, cannot support it. Then, the customer will be punted back to the consulting organization, whoever they used. In some ways, the industry plays a little bit of ping-pong with the customer, which is a really bad place to be.

Simple and transparent

What we're trying to do is get to the heart of it and say that we cannot introduce our organizational complexity to the customer. We want to make it simple. We want to make it transparent to them.

The second thing is that everybody talks about business outcomes, but if there are multiple organizations responsible for the same business outcome for the customer, then, in my view, nobody is responsible for the business outcome for the customer. That’s the second thing at the heart of the problem we're trying to solve.

Where we're going with this is that we're looking at what we call the concept of services convergence, where we're trying to make sure that we support the full solution for the customer, remove internal organizational complexity, and truly commit to, and take accountability for, the business outcome for the customer.

Specifically what it means is that we've put up an 18-month roadmap to fuse the services and the support organizations into one entity. We basically take care of the customer across the full lifecycle of the solution, build the solution, deploy the solution, and maintain the solution, They they have one entity, one organization, one set of people to go to across the entire lifecycle. That’s what we're doing.

To put it back in the context of what I talked about at the new portfolio launch, SMS is the first step and a bridge to get to eventual services convergence. SMS is a new portfolio with which the consulting organization is offering the ability to support the solution, until we get to one entity as true services in front of the customer. That’s what SMS is. It’s a bridge to get to services convergence.

Our goal is to support the full solution, no matter what percentage of it is not HP Software products.

The cool part is that this is an industry-leading thing. You don’t see services convergence, that’s industry leading. The second is, when we talk about solutions, 5, 10, 15, or 20 percent of the solution may not be HP products. Our goal is to support the full solution, no matter what percentage of it is not HP Software products. So that takes the accountability for truly creating business outcomes for the customer.

Gardner: It strikes me too that we've been talking here at the conference about the evolving nature of IT. It's changing more to services brokering and procurement, using all of the available sourcing options, figuring out what the right mix should be for each particular organization, and then, of course, tracking that over time as to what makes sense.

Is there a relationship between this changing nature of IT that we are forecasting, and this new, simple approach to services that you're discussing?

Eswaran: Absolutely. Just as SMS is the first step toward services convergence, services convergence is the critical step to offering "Everything as a Service" for the customer. If you don’t have the organizations aligned internally, if you don’t have the ability to truly support the full lifecycle for the customer, you can never get to a point of offering Everything as a Service for the customer.

If you look at services as an industry, it hasn't evolved for the last 40 or 50 years. It’s the only industry in technology which has remained fairly static. Outside of a little bit of inflection on labor arbitrage, offshoring, and the entire BPO industry, which emerged in the 1990s, it's not changed.

Moving the needle

Our goal is to move the needle to have the ability to offer Everything as a Service. Anything that is noncompetitive, anything that is not core to the business of an organization, should be a commodity and should be a service. Services convergence allows us to offer Everything as a Service to the customer. That’s where we are heading.

Gardner: As you come with this to the market, are there certain verticals that you're focused on first, or are there certain segments of the market? How do you yourselves manage the wide variety of potential applicability for this?

Eswaran: Great question. As we look at it, we see the biggest value in first treating it as a horizontal. Because this is going to be such an inflection point in how technology is consumed by the customers, we want to get the process, we want to get the outcomes, and we want to get what this means for the customer right the first time.

Once we get there, the obvious next step is to overlay that horizontal process of offering Everything as a Service.

For us, the first phase is a horizontal phase in making all of IT available as a service to the customer. Once we get there, the obvious next step is to overlay that horizontal process of offering Everything as a Service, with vertical and industry taxonomies.

We have a lot of expertise and experience in specific verticals, financial services, healthcare, government, and public sector, like patent and copyrights management. We have a lot of obvious competencies and taxonomies, which we will very quickly overlay into the concept of services convergence and Everything as a Service.

Gardner: We chatted briefly the other day about how the history of management in IT over the past 20 years or so, in many cases, has created islands of management. HP has been in a position of moving beyond those islands, perhaps sooner than the pack. Is that something that now comes as an advantage, now that we're at a more heterogeneous and hybrid form of computing? Is there a historical context that we can now look to to better understand what’s going to come next?

Eswaran: Absolutely. That’s a very insightful question. If you look at the last few years and at the roadmap which HP has built, whether it is software assets, like Mercury, Peregrine, Opsware, and all of it coming together, whether it is the consulting assets, like the acquisition of EDS, which is now called HP Enterprise Services (ES), there was a method to the madness.

A different approach

Let me give you an example to make this really simple. We're talking to a large organization, from a test automation standpoint, across the whole network. If you look at the past, the way services organizations would approach this is labor arbitrage -- 20 people, three years, $X million in cost, and this is what we do for you.

We want to approach it in a very different way. We want to tell the customer, "You have a 5 percent defect level across the entire stack, from databases and networks, all the way up to your application layer. And that’s causing you a spend of $200 million to offer true business outcomes to your customer, the business."

Instead of offering a project to help them mitigate the risk and cost, our offer is different. We are saying, "We'll take a 5 percent defect level and take it to 2.5 percent in 18 months. That will save you north of a $100 million of cost." Our pricing proposal at that point is a percentage of the money we save you. That’s truly getting to the gut of business outcomes for the customer.

It also does one really cool thing. It changes the pattern of approvals that anybody needs to get to go do a project, because we are talking about money and tangible outcomes, which we will bring about for you.

The last five years is the reason we're at the point that we are going to lead the industry in offering Everything as a Service.

That's not going to be possible without the assets we have consolidated from a software, hardware, or ES standpoint. We have thousands of testers as part of the ES acquisition. We have the thought leadership from a product standpoint, which we have consolidated using our software assets. We have the thought leadership from a services standpoint, within the professional services community. All of this comes together and that makes it possible.

So, the last five years is the reason we're at the point that we are going to lead the industry in offering Everything as a Service.

Gardner: I think that heads up the fact that the present course is just not sustainable when you add in these extra variables of outsourcing, about hybrid models, virtualization, mobility, and so forth.

Eswaran: Absolutely. When you talk about inflection points in the history of technology, the Internet probably was the biggest so far. We're probably at something that is going to be as big, in terms of how consumption happens for customers. Everything non-core, everything noncompetitive is a service, is a commodity.

There are many different mechanisms of consumption. Cloud is one of them. It’s going to take a little bit of maturity for customers to evolve to a private cloud, and then eventually consume anything non-core and noncompetitive as part of the public cloud.

We're getting geared, whether it’s infrastructure, data centers, software assets, automation software, or whether it is consulting expertise, to weave all of that together. We've geared up now to be able, as a best practice, to offer multi-source, hybrid delivery, depending on, one, the customer appetite, and two, where we want to lead the industry, not react to the industry.

Gardner: Well, great. Thank you so much. We have been joined by Anand Eswaran, Vice President of Professional Services for HP Software & Solutions.

Eswaran: Thank you, Dana.

Gardner: And thank you to our audience for joining this special BriefingsDirect podcast, coming to you from the HP Software Universe 2010 Conference in Washington D.C. Look for other podcasts from this HP event on the hp.com website, as well as via the BriefingsDirect Network.

I am Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this series of Software Universe Live 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: HP.

Transcript of a BriefingsDirect podcast with HP's Anand Eswaran on professional services and a new approach to offering customer support, from HP's latest software conference in Washington, DC. Copyright Interarbor Solutions, LLC, 2005-2010. All rights reserved.

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• HP's Bill Veghte on managing complexity amid converging IT 'inflection points'
  

Motorola Shows Dramatic Savings in IT Operations Costs with 'ERP for IT' Tools Based on HP PPM

Transcript of a BriefingsDirect podcast with Motorola's Judy Murrah on cost optimization using PPM, recorded at HP's Software Universe conference in Washington, DC.

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

Dana Gardner: Hello, and welcome to a special BriefingsDirect podcast series, coming to you from the HP Software Universe 2010 Conference in Washington D.C. We're here the week of June 14, 2010, to explore some major enterprise software and solutions trends and innovations making news across HP’s ecosystem of customers, partners, and developers.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions and I'll be your host throughout this series of HP sponsored Software Universe Live discussions.

We're looking at a compelling case-study today, Motorola, in the area of productivity, cost optimization, and their IT efficiency efforts -- a winner of HP's Excellence Award this year. We're going to hear more about that from Judy Murrah, Senior Director of IT, at Motorola. Welcome to BriefingsDirect.

Judy Murrah: Thank you, Dana. Great to be here.

Gardner: As I said, you've won an Award of Excellence here at the HP Conference. You have also won a CIO Magazine award recently. Tell us a little bit about your role and, why cost optimization has gotten you these accolades?

Murrah: It certainly was a team effort. My role at Motorola IT is in what we call CIO Operations. I'm responsible for our project management office (PMO) portfolio, quality, communications, and other activities that support our IT operations. Cost optimization is on everybody’s mind these days, especially with the economy the way it is, and with many business initiatives out there.

For us, at Motorola, it really was driven by the pace of change that our business needs to take at this point. You don’t really think too much about change and cost optimization being related, but we have had, over time, a very complex IT environment grow. We have thousands of systems in a company that has grown organically and through mergers, acquisitions, and divestitures.

In order to really be part of the business imperatives to move forward in next-generation business processes, it was too complex to make changes. So, we focused on reducing those systems and doing it in a way that was directly aligned to business change and the directions they would like to go into.

Gardner: What are the requirements from the business side? A lot of people are trying to align their IT efforts with more of what the business is looking for. Of course, that’s also a changing game at this point. Many businesses are dynamic in nature. How does the cost optimization fit in, when you're also trying to align IT with business?

Murrah: That’s the place where we started and where we saw the magic unfold. We sat with our business partners, top leadership on both sides -- our CIO and the business presidents and executive teams -- and talked through every business function.

Business competitiveness

We looked at it on a scale of business competitiveness and how important that particular business function is to the business. Then, on the other axis, if you picture the famous 2×2 matrix, we looked at the complexity and cost of that business function.

Just to give you an example, if we talk about engineering as a business function, to Motorola, which is a technology company, that’s a critical competitive differentiator, very important, high on the scale of competitiveness. If we look at the complexity and cost of running that today, in Motorola, we have a lot of systems and it’s a high-cost area.

We did that for every business function we have. We laid it out and then talked through where we would like those functions to move in the future. By mapping it out visually, it helped us to know that some areas were just costing more money than the value they brought to the business. When you see that, you put data on a piece of paper, and you have a visual, it is a very good way to align business and IT around a common goal.

Gardner: Do you have any numbers; perhaps numbers of projects or applications that give us the size of the scale and scope of what you're managing?

Murrah: We have somewhere in the neighborhood of 1,800 systems in the company. We manage about 1,000 projects per year that flow out of these decisions. We have about 1,500 employees in the IT organization and are very heavily outsourced in some of the functions. So, we have another few thousand folks who we consider a part of the team, and that’s who have all made this happen.

Gardner: We've been hearing a lot here at Software Universe about automation and simplicity, when it comes to the management tasks. Many organizations are dealing with huge scales, as you are. How do you view moving toward the visibility and then into automation, and then into some simplicity?

Murrah: You're talking about the IT tools and the management of all this process. The only way we could have managed this is our implementation of one tool and one process, that’s used across the whole Motorola IT environment -- HP’s Project and Portfolio Management Center (PPM). It gives us one place where we contain our "source of truth" for our investment dollars, for the priorities of the business request coming through, and for the things that we've decided to work on.

In that tool, we have every one of our people resources named, as well as what they're working on, and we look at their utilization and movement to the most critical areas. We also manage our project execution to the timelines, schedules, and budgets that we commit to our business partners.

What’s very important then is that all of this underlying data and management process that we use can be presented back to the business in very good dashboards and reporting, so that we all stay on top of where we are and can be proactive on change, if it’s needed.

Gardner: So, the system of record is what’s working for you. We've had this in business, in other areas, around finance and ledger and so forth, for years. It’s just amazing to me sometimes that we are moving to this in IT, maybe 20 or 30 years behind where business was. Is that how it strikes you?

Justifying the investment in IT

Murrah: That's exactly right. I always talk about how IT is sometimes like the cobbler’s children, as the old saying goes. It’s very difficult to justify the investment in IT tools at some points in time, unless you have ones like this, that are showing payback to the business and you use them in a way that everyone is now depending on it. It does become the enterprise resource planning (ERP) system of the IT organization.

Gardner: Do you have any metrics of success? Do you have some sense of any cost savings, either qualitative, quantitative, what did you get from going through this?

Murrah: Well, in the last two years we have reduced our cost structure by about 40 percent. That is a big number to do while the business is operating. We have also, on our large projects that we run through the system, shown about a 150 percent payback or return on investment (ROI) for those. That means that the value of the investment for us was placed in the right places.

We have also, on our large projects that we run through the system, shown about a 150 percent payback or return on investment (ROI) for those. That means that the value of the investment for us was placed in the right places.

We've been able to reduce IT support costs by about 25 percent. Previous to this more consolidated system, we were operating in such silos that there were many people doing the same things. So by consolidating, we eliminated about 25 percent of the wasted work.

Gardner: That’s quite impressive. Now, I know that HP PPM is accessed on-premises and/or as a service. Did you experiment across sourcing options?

Murrah: We did. About a year ago we moved from a hosted environment, internal to Motorola, to the HP software-as-a-service (SaaS) environment. It works like a charm. No issues with performance. We have had great responsiveness from HP. It does help reduce our support cost, somewhere around 40 to 50 percent.

Gardner: Was there any indication that the SaaS model helped in terms of adoption, participation, from the user perspective, did they seem to benefit?

Murrah: Moving from hosted to SaaS didn’t affect usability, adoption, or anything. That really was almost seamless. We were using the same application before and after.

Gardner: Same application, lower cost?

Murrah: That’s right.

Gardner: Can you offer us perhaps some look into the future of what you're planning and managing your ERP for IT, as you termed it. Are there some next steps that will perhaps win you the next award?

Murrah: Yeah, we'll keep our eye on that for the future. I think a couple of areas that we need to work at going forward are more on our application support area. That's bringing the tool to manage resources and activities and support operations, tying it a little more tightly into our financial management, and getting a little more granular on the skills and our ability to move our resources around from place to place.

Gardner: Great. We have been talking about managing complexity and projects with Motorola, which has won an HP Award of Excellence for their efforts. We've been talking to Judy Murrah, Senior Director of IT for Motorola. Thanks so much.

Murrah: Thank you, Dana.

Gardner: And thanks to our audience for joining this special BriefingsDirect podcast, coming to you from the HP Software Universe 2010 Conference in Washington D.C. Look for other podcasts from this HP event on the hp.com website, as well as via the BriefingsDirect Network.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this series of Software Universe Live 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: HP.

Transcript of a BriefingsDirect podcast with Motorola's Judy Murrah on cost optimization using PPM, recorded at HP's Software Universe conference in Washington, DC. Copyright Interarbor Solutions, LLC, 2005-2010. All rights reserved.

You may also be interested in:

• HP's Bill Veghte on managing complexity amid converging IT 'inflection points'
• New HP products take aim at managing complexity in 'hybrid data center' era
• HP's Robin Purohit Unpacks Business Service Management 9 a Way to Address Complexity in Hybrid Data Centers
• Delta Air Lines improves customer self-service apps quickly using automated quality assurance tools strategically