Friday, September 21, 2018

How Norway’s Fatland Faced a Ransomware Debacle and Beat It Thanks to Rapid Backup and Recovery Data Protection

Transcript of a discussion on how a comprehensive backup and recovery capability allowed a complex meatpacking production processing system to snap back into use in only a few hours after an encryption attack
 
Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise. 

Dana Gardner: Hello, and welcome to the next edition of the BriefingsDirect Voice of the Customer podcast series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing discussion on digital transformation success stories. Stay with us now to learn how agile businesses are fending off disruption -- in favor of innovation.

Gardner
Our next mission-critical system’s rapid recovery case study explores how Norway’s venerable meat processing business, Fatland, successfully defended itself against a nasty ransomware attack.

We’ll now learn how a comprehensive backup and recovery capability that uses protocols that can’t be attacked allowed Fatland’s production processing systems to be snapped back into use in only a few hours.

Here to help us learn what a rapid backup and “recoveryware” approach can do to avoid down time and data loss disasters is our panel. We’re here with Terje Wester, the CEO at Fatland based in Norway. Welcome to the podcast.

Terje Wester: Thank you very much.

Gardner: We’re also here with Patrick Osborne, Vice President and General Manager of Big Data and Secondary Storage at Hewlett Packard Enterprise (HPE). Welcome, Patrick.

Patrick Osborne: Thanks so much for having me.

Gardner: Terje, getting all of your systems back up in a few hours after an aggressive ransomware attack in 2017 probably wasn’t what first drove you to have a comprehensive backup and recovery capability. What were the early drivers that led you to put in a more modern approach to data lifecycle management?

Safety First


Wester: First of all, we have HPE end-to-end at Fatland. We have four production sites. At one production site we have our servers. We are running a meat business, doing everything from slaughtering to processing and packing. We deal with the farmers; we deal with the end customers. It’s really important to have good IT systems, also safe systems.

Wester
When we last invested in these HPE systems, we wanted something that was in front of the line, which was safe, because the uptime in the company is so important. Our IT people had the freedom to choose what they thought was the best solution for us. And HPE was the answer. We tested that really hard on this ransomware episode we had in September.

Gardner: Patrick, are you finding in the marketplace that people have primary reasons for getting into a comprehensive data protection mode? It can become a gift that keeps giving.

Osborne: A lot of our customers are now focusing on security. It’s definitely top of mind. What we are trying to provide is more of an integrated approach, so it’s not a secondary or an afterthought that you bolt on.


Whether it’s our server products, with silicon root of trust, or our storage products, with things like we have done for Fatland such as Recovery Manager Central (RMC), or with our integrated offerings such as our hyper-converged infrastructure (HCI) product line -- the theme is the same. What we are trying to weave through this is that data protection and availability are an endemic piece of the architecture. You get it on day one when you move to a modernized architecture, as opposed to running into a ransomware or an availability issue and then having to re-architect after-the-fact.

What we are trying to do with a number of customers is, from day one, when you renew your infrastructure, it has all of this availability and security built in. That’s one of the biggest things that we see, that’s helpful for customers these days.
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Gardner: Data and security integration are, in fact, part of the architecture. Security is not a separate category or a chunk that you bolt on later.

Osborne: Exactly.

Gardner: Terje, tell us a about the .NM4 crypto virus. In 2017, this hit a lot of people. Some were out for days. What happened when this hit your organization?

Rapid response, recovery


Wester: These people were trying to attack us. They started to visit our servers and got in on a Thursday. They worked until that Friday night and found an opening. This was something that happened in the middle of the night and they closed down the servers. They put in this ransomware, so that closed down everything.

On Saturday, we had no production. So, Saturday and Sunday for us were the days to work on and solve the problem. We contacted HPE for consultants, to determine what to do. They came over from Oslo on Sunday, and from Sunday afternoon to early Monday morning we recovered everything.

On Monday morning we started up, I think, only about 30 minutes behind schedule and the business was running. That was extremely important for us. We have live animals coming in on Sunday to be slaughtered on Monday. We have rapid processing. Christmas was around the corner and everything that we produce is important every day. The quick recovery was really important for us.

Gardner: You are an older, family-run organization, dating back to 1892. So, you have a very strong brand to protect.

On Monday morning we started up only 30 minutes behind schedule and the business was running. That was extremely important to us. The quick recovery was really important.
Wester: That’s right, yes.

Gardner: You don’t want to erode that brand. People want to continue to hold the trust they have had in you for 125 years.

Wester: They do. The farmers have been calling us for slaughtering of their cattle for generations. We have the typical supermarket chains in Norway as our main customers. We have a big daily turnover, especially in September through October, when all the lambs are coming in. It’s just a busy period and everybody trusts that we should work for them every day, and that’s our goal, too.

Gardner: Patrick, what was it about the HPE approach, the Recovery Manager Central and StoreOnce, that prevented the ransomware attack, in this case, from causing the significant downtime that we saw in other organizations?

Osborne: One of the important things to focus on is that in the case of Fatland it’s not so much the money that you would have had to pay for the ransomware, it’s the downtime. That is key.

Osborne
Using our architecture, you can take application or data-specific point-in-time copies of the data that’s critical -- either mission-critical or business-critical -- at a very granular level. You can orchestrate that, and then send that all off to a secondary system. That way you have an additional layer of security.

What we announced in November 2017 at Discover in Madrid is the ability to go even further beyond that and send an additional copy to the cloud. At all layers of the infrastructure, you will be able to encrypt that data. We designed the system around not so much backup -- but to be able to restore quickly.

The goal is to provide a very aggressive recovery time objective (RTO) in a very granular recovery point objective. So, when a team like Terje’s at Fatland recognizes that they have a breach, you can mitigate that, essentially staunch the issue, and be able to rapidly recover from a well-known set of data that wasn’t compromised.

For us it’s all about architecting to rapidly recover, of making that RTO as quickly as possible. And we see a lot of older architectures where you have a primary storage solution that has all of your data on it and then not a really good backup infrastructure.

What turned into two days of disruption for Fatland could have been many more days, if not weeks, in older infrastructure. We really just are focused on mitigation of RTO.
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Gardner: In the case of the cryptovirus, did the virus not encrypt the data at all, or was it encrypted but you were able to snap back to the encryption-free copies of the data fast?

Osborne: When we do this at the storage layer, we are able to take copies of that data and then move it off to a secondary system, or even a tertiary system. You then have a well-known copy of that data before it’s been encrypted. You are able to roll back to a point in time in your infrastructure before that data has been compromised, and then we can actually go a step further.

Some of the techniques allow you to have encryption on your primary storage. That usually helps if you are changing disk drives and whatnot. It’s from a security perspective. Then we are actually able to encrypt again at the data level on secondary storage. In that case, you have a secure piece of the infrastructure with data that's already been encrypted at a well-known point in time, and you are able to recover. That really helps out a lot.

Gardner: So, their encryption couldn't get past your encryption?

Osborne: Yes.

Gardner: The other nice thing about this rapid recovery approach is that it doesn't have to be a ransomware or a virus or even a security issue. It could be a natural disaster; it could be some human error. What's important is the business continuity.

Now that you have been through the ransomware attack, how is your confidence in always being up and running and staying in business in general, Terje?

Business continuity bonus


Wester: We had been discussing this quite a lot before this ransomware issue. We established better backup systems, but now we are looking into extending them even more, to have another system that can run from the minute the main servers are down. We have a robotized system picking out meat for the supermarket chains 24x7, and when their main server stops, something should be able to take over and run the business. So, within a very short time we will also have that solution in place, with good help from HPE.

Gardner: Patrick, not that long ago the technology to do this may have been there, but the costs were prohibitive. The network and latency and issues were prohibitive. What's happened in the past several years that allows you to go to a company such as Fatland and basically get them close to 99.9999 percent availability across the board?

Osborne: In the past, you had customers with a preferred vendor for servers, a preferred vendor for networking, and another preferred vendor for storage. That azimuth is changing to a vertically oriented stack. So, when Terje has a set of applications or business needs, we are able to, as a portfolio company, bring together that whole stack.

In the past, the customer was the integrator, and the cost was in bringing many, many different disparate solutions together. They would act as the integrator. That was probably the largest cost back in the day.

We're now bringing together something that's vertically oriented and has security and data protection availability throughout the stack. At the end of the day it's a business enabler for a business of any size.
Now, we’re bringing together something that's more vertically oriented and that has security and data protection availability throughout the stack. We’re making these techniques and levels of availability for customers of any size, where IT is not really their core competency. At the end of day, it's a business enabler, right?

Wester: Right, absolutely.

Osborne: The second piece from a networking perspective is that very large and low-cost bandwidth has definitely changed the game in terms of being able to move data, replicate data from on-premise, even off-premise to the cloud, that's certainly been an enabler as well.

Gardner: We are seeing mirroring of entire data centers in amazing amounts of time.

Also, you have an integrated stack approach, with HPE focused on security engineered in, across the board, from the silicon up. What are some of the newer technologies that we can expect to see that further increases higher availability, lower risk and lower cost?

Shared signature knowledge


Osborne: Terje's team had cryptovirus on-premise, a breach with a number of different signatures. We are now focusing on artificial intelligence (AI) for the data center. So, taking the human factor out of it to help recognize the problems faster.

So, if they have a breach, and that has certain signatures found in the infrastructure, we can take that and apply that knowledge to other customers. And likewise, they may have some things that happened to them that can benefit Fatland as well.

Using machine learning techniques, we have a number of things that we have brought to the table for what we call predictive analytics in the data center. So HPE Aruba on the networking side has a number of capabilities, too.

We are bringing InfoSight, which is our predictive analytics for storage, and extending that to other parts of the infrastructure. So, servers, networking, and storage. You can start to see signatures in more places.

The General Data Protection Regulation (GDPR) has been implemented, and there are some high fines. You have to report within 72 hours. So, anything you can do to take the human factor out of this, from a technology perspective is a win for everyone, and we have a big investment in that.
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Gardner: And that gets back to the idea that strategic data protection is the gift that keeps giving. As more systems are integrated, the more data analysis can be done, signatures patterns shared with other organizations, and you can ultimately become predictive rather than reactive.

Terje, the level of confidence that you have seems to be high, it's perhaps going to get higher. What other recommendations might you have for other organizations that are thinking about this? Did it turn out to be a good investment, and what sort of precautions might you have for others if they haven't done this already?

Communication is key


Wester: Data itself is not part of our core business. But communication is. It is extremely important for us to communicate internally and externally all the time.

In every organization, IT people need to talk to the management and the board about these safety issues. I think that should be brought to the table before these problems come up.

We have good systems, HPE end-to-end. Of course, one thing that is important is to have modern technology in place, so we could have a quick recovery, and that was a good thing.

Most important for us was that the IT management had the trust from us -- the management and the board -- to invest in what they thought was the best solution. We still saw some operational breaches and we need to do better. This is a big focus with us. Every organization should invest time to look into the infrastructure to see what to do to make it safer for quick recovery, which is important for any company. Bring it on to the table for the board, for the management, for a really good discussion -- it’s worth that.

Gardner: I’m afraid we’ll have to leave it there. We have been exploring how Norway's Fatland successfully defended itself against a nasty ransomware attack. And we have learned how the many benefits of having a comprehensive data protection backup and recovery capability can benefit mission-critical systems -- and now at lower cost and better performance than ever.

So please join me in thanking our guests, Terje Wester, CEO at Fatland in Norway. Thank you, sir.

Wester: Thank you.

Gardner: And Patrick Osborne, Vice President and General Manager of Big Data and Secondary Storage at HPE. Thank you, Patrick.

Osborne: Thanks, Dana. Thanks for having us.

Gardner: And a big thank you to our audience as well for joining us for this BriefingsDirect Voice of the Customer digital transformation success story discussion.

I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of Hewlett Packard Enterprise-sponsored interviews. Thanks again for listening. Please pass this content along to your IT community, and do come back next time.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise. 

Transcript of a discussion on how a comprehensive backup and recovery capability allowed a complex meatpacking production processing system to snap back into use in only a few hours after an encryption attack. Copyright Interarbor Solutions, LLC, 2005-2018. All rights reserved.

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Tuesday, September 18, 2018

How Datacenter Adjacency and Global Partnership Ecosystems Propel Adoption of Hybrid Cloud

Transcript of a discussion on how Equinix, Microsoft Azure Stack, and Cloud28+ together are advancing and extending hybrid cloud options across the globe.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise

Dana Gardner: Hello, and welcome to the next edition of the BriefingsDirect Voice of the Customer podcast series. I’m Dana Gardner, Principal Analyst at Interarbor Solutions, your host and moderator for this ongoing discussion on digital transformation success stories.

Gardner
Our next hybrid cloud advancement interview explores how the triumvirate of a global data center hosting company, a hybrid cloud platform provider, and a global cloud community are solving some of the most vexing problems for bringing high-performance clouds to more regions around the globe.

We will now learn how Equinix, Microsoft Azure Stack, and Hewlett Packard Enterprise (HPE)’s Cloud28+ are helping managed service providers (MSPs) and businesses alike obtain world-class hybrid cloud services.

Here to help us explore new breeds of hybrid cloud solutions is David Anderson, Global Alliance Director at Equinix for its Microsoft alliance.

Welcome, David.

David Anderson: Thanks for having me, Dana.

Gardner: We are also here with Xavier Poisson, Vice-President of Worldwide Services Providers Business and Cloud28+ at HPE. Welcome.

Xavier Poisson: Hi, Dana, thanks.

Interconnected cloud interactions


Gardner: It seems to me there is a paradox when it comes to the hybrid cloud -- that it works best in close proximity technologically yet has the most business payoff when you distribute it far and wide. So how are Equinix, Microsoft, and HPE together helping to solve this paradox of proximity and distribution?

Anderson
Anderson: That’s a great question. You are right that hybrid cloud does tend to work better when there is proximity between the hybrid installation and the actual public cloud you are connecting to. That proximity can actually be lengthened with what we call interconnectedness.

Interconnectedness is really business-to-business (B2B) and business-to-cloud private network Ethernet connections. Equinix is positioned with more than 200 data centers worldwide, the most interconnections by far around the world. Every network provider is in our data centers. We also work with cloud providers like Microsoft. The Equinix Cloud Exchange connects businesses and enterprises to those clouds through our Equinix Cloud Exchange Fabric. It’s a simple one-port virtual connection, using software-defined networking (SDN), up to the public clouds.

That provides low-latency and high-performance connections -- up to 10 Gigabit network links. So you can now run a hybrid application and it’s performing as if it’s sitting in your corporate data center not far away.


The idea is to be hybrid and to be more dispersed. That dispersion takes place through the breadth of our reach at Equinix with more than 200 data centers in 45 metro areas all over the world -- and so, interconnected all over.

Plus, there are more than 50 Microsoft Azure regions. We’re working closely with Microsoft so that we can get the cloud out to the customers fairly easily using the network service providers in our facilities. There are very few places on Earth where a customer can’t get from where they are to where we are, to a cloud – and with a really high-quality network link.

Gardner: Xavier, why is what we just heard a good fit for Cloud28+? How do you fit in to make hybrid clouds possible across different many regions?

Poisson
Poisson: HPE has invested a lot in intellectual property in building our own HPE and Microsoft Azure Stack solution. It’s designed to provide the experience of a private cloud while using Microsoft as your technology’s tool.

Our customers want two things. The first is to be able to execute clouds on-premises, but also to connect to wider public clouds. This is enabled by what we are doing with a partner like Equinix. We can jump from on-premises to off-premises for an end-user customer.

The second is, when a customer decides to go to a new architecture around hybrid cloud, they may need to get reach and this reach is difficult now.

So, how we can support partners to find the right place, the right partners at the right moment in the right geographies with the right service level agreements (SLAs) for them to meet their business needs?

The fact that we have Equinix inside of Cloud28+ as a very solid partner is helping our customers and partners to find the right route. If I am an enterprise customer in Australia and I want to reach into Europe, or reach into Japan, I can, through Cloud28+, find the right service providers to operate the service for me. But I will also be hosted by a very compelling co-location company like Equinix, with the right SLAs. And this is the benefit for every single customer.

This has a lot of benefits for our MSPs. Why? Because our MSPs are evolving their technologies, evolving their go-to-market strategies, and they need to adapt. They need to jump from one country to another country, and they need to have a sustainable network to make it all happen. That’s what Equinix is providing.
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We not only help the end-user customers, but we also help our MSPs to build out their capabilities. Why? We know that with interconnectedness, as was just mentioned, that they can deliver direct cloud connectivity to all of their end users.

Together we can provide choice for partners and end-user customers in one place, which is Cloud28+. It’s really amazing. 

Gardner: What are some of the compelling new use cases, David? What are you seeing that demonstrates where this works best? Who should be thinking about this now as a solution?

Data distribution solutions


Anderson: The solution -- especially combined with Microsoft Azure Stack -- is suited to those regions that have had data sovereignty and regulatory compliance issues. In other words, they can’t actually put their data into the public cloud, but they want to be able to use the power, elasticity, and the compute potential of the public cloud for big data analytics, or whatever else they want to do with that data. And so they need to have that data adjacent to the cloud.

Same for an Azure Stack solution. Oftentimes it will be in situations where they want to do DevOps. The developers might want to develop in the cloud, but they are going to bring it down to a private Azure Stack installation because they want to manage the hardware themselves. Or they actually might want to run that cloud in a place where public Azure may not yet have an availability zone. That could be sub-Saharan Africa, or wherever it might be -- even on a cruise ship in the middle of the ocean.

There's a lot of legacy hardware out there. The need is for applications to run on a cloud, but the hardware can't be virtualized. These workloads could be moved to Equinix and then connect to a cloud.
Another use case that we are driving hard right now with Microsoft, HPE, and Cloud28+ is on the idea of an enterprise cage, where there is a lot of legacy hardware out there. The need is for applications to run to some degree on a cloud, but the hardware can’t be virtualized. But these workloads could be moved to an Equinix data center and connected to the cloud. They can then use the cloud for the compute part, and all of a sudden they are still getting value out of that legacy hardware, in a cloud environment, in a distributed environment.

Other areas where this is of value include a [data migration] appliance that is shipped out to a customer. We’ve worked a lot with Microsoft on this. The customer will put up to 100 TB of data on the appliance. It then gets shipped to one of our data centers where it’s hooked up through high-speed connection to Azure and the data can be ingested into Azure.

Now, that’s a onetime thing, but it gives us and our service providers on Cloud28+ the opportunity to talk to customers about what they are going to do in the cloud and what sort of help might you need.

Scenarios like that provide an opportunity to learn more about what enterprises are actually trying to do in the cloud. It allows us then to match up the service providers in our ecosystem, which is what we use Cloud28+ for with enterprise customers who need help.

Gardner: Xavier, it seems like this solution democratizes the use of hybrid clouds. Smaller organizations, smaller MSPs with a niche, with geographic focus, or in a vertical industry. How does this go down market to allow more types of organizations to take advantage of the greatest power of hybrid cloud?

Hybrid cloud power packaged


Poisson: We have packaged the solutions together with Equinix by default. That means that MSPs can just cherry pick to provide new cloud offerings very quickly.

Also, as I often say, the IT value chain has not changed that much. It means that if you are a small enterprise, let’s say in the United States, and you want to shape your new generation of IT, do you go directly to a big cloud provider? No, because you still believe in your systems integrator (SI), and in your value-added reseller (VAR).

Interestingly, when we package this with Equinix and Microsoft, having this enterprise cage, the VARs can take the bull by the horns. Because, when the customer comes to them and says, “Okay, what should I do, where should put my data, how can I do the public cloud but also a private cloud?” The VAR can guide them because they have an answer immediately -- even for small- to medium-sized (SMB) businesses.
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Our purpose at Cloud28+ is to explain all of this through thought leadership articles that we publish -- explaining the trends in the market, explaining that the solutions are there. You know, not a lot of people know about Equinix. There are still people who don’t know that they can have global reach.

If you are a start-up, for example, you have a new business, and you need to find MSPs everywhere on the globe. How you do that? If you go to Cloud28+ you can see that there are networks of service providers or learn what we have done with Equinix. That can empower you in just a few clicks.

We give the access to partners who have been publishing more than 900 articles in less than six months on various topics such as security, big data, interconnection, globalization, artificial intelligence (AI), and even the EU’s General Data Protection Regulation (GDPR). They learn and they find offerings because the articles are connected directly to those offering services, and they can get in touch.

We are easing the process -- from the thought leadership, to the offerings with explanations. What we are seeing is that the VARs and the SIs are still playing an enormous role. 

So, it’s not only Microsoft, with HPE, and with the data centers of Equinix, but we put the VARs into the middle of the conversation. Why? Because they are near the SMBs. We want to make everything as simple as you just put in your credit card and you go. That’s fair enough for some kinds of workloads.

But in most cases, enterprises still go to their SIs and their VARs because they are all part of the ecosystem. And then, when they have the discussion with their customers, they can have the solution very, very quickly.

Gardner: Seems to me that for VARs and SIs, the cloud was very disruptive. This gives them a new lease on life. A middle ground to take advantage of cloud, but also preserve the value that they had already been giving.

Take the middle path


Poisson: Absolutely. Integration services are key, application migrations are key, and security topics are very, very important. You also have new areas such as AI and blockchain technologies.

For example, in Asia-Pacific and Europe, Middle East and Asia (EMEA), we have more-and-more tier-two service providers that are not only delivering their best services but are now investing in practices around AI or blockchain -- or combine them with security -- to upgrade their value propositions in the market.

For VARs and for Sis, it is all benefit because they know that solutions exist, and they can accompany their customers to the transition. For them, this is all also a new flow of revenue.

Gardner: As we get the word out that these distributed hybrid cloud solutions are possible and available, we should help people understand which applications are the right fit. What are the applications that work well in this solution?

The hybrid solution gives SIs, service providers, and enterprises more flexibility than if they try and move an application completely into the cloud.
Anderson: The interesting thing is that applications don’t have to be architected in a specific way, based on the way we do hybrid solutions. Obviously, the apps have to be modern.

I go back to my engineering days 25 years ago, when we were separating data and compute and things like that. If they want to write a front-end and everything in platform-as-a-service (PaaS) on Azure and then connect that down to legacy data, it will work. It just works.

The hybrid situation gives SIs, service providers, and enterprises more flexibility than if they try and move an application, whatever it is, completely into the cloud, because that actually takes a lot more work.

Some service providers believe that hybrid is a transitory stage, that enterprises would go to hybrid just to buy them time till they go fully public cloud. I don’t believe Microsoft thinks that way, and we certainly don’t think that way. I think there is a permanent place for hybrid cloud.

In fact, one of the interesting things when I first got to Equinix was that we had our own sellers saying, “I don’t want to talk to the cloud guys. I don’t want them in our data centers because they are just going to take my customers and move them to the cloud.”

The truth of the matter is that demand for our data centers has increased right along with the increase in public cloud consumption. So it’s a complementary thing, not a substitution thing. They need our data centers. What they are trying to do now is to close their own enterprise data centers.

And they are getting into Equinix and finding out that the connectivity possibilities and -- especially in the Global 2000 enterprises -- nobody wants cloud vendor lock-in. They are all multicloud. Our Equinix Cloud Exchange Fabric solution is a great way to get in at one point and be able to connect to multiple cloud providers from right there.

It gives them more flexibility in how they design their apps, and also more flexibility in where they run their apps.

Gardner: Do you have any examples of organizations that have already done this? What demonstrates the payoffs? When you do this well, what do you get for it?

Cloudify your networks



Anderson: We have worked with customers in these situations where they have come in initially for a connection to Microsoft, let’s say. Then we brought them together with a service provider and worked with them on network transformations to the point where they have taken their old networks – a lot of Multiprotocol Label Switching (MPLS) and everything else that were really very costly and didn’t perform that well -- and ended up being able to rework their networks. We like to say they cloudify their networks, because a lot of enterprise networks aren’t really ready for the heavy load of getting out to the cloud.

And we ended up increasing their performance by up to 10, 15, 20 times -- and at the same time cut their networking costs in half. Then they can turn around and reinvest that in applications. They can also then begin to spin up cloud apps, and just provision them, and not have to worry about managing the infrastructure.

They want the same thing in a hybrid world, which is where those service providers that we find on Cloud28+ and that we amplify, come in. They can build those managed services, whether it’s a managed Azure Stack offering or anything else. That enables the enterprise IT shops to essentially do the same thing with hybrid that they are doing with public cloud – they can buy it on a consumption model. They are not managing the hardware because they are offloading that to someone else.
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Because they are buying all of their stuff in the same model -- whether it’s considered on-premises or a third-party facility like ours, or a totally public cloud. It’s the same purchasing model, which is making their procurement departments happy, too.

Gardner: Xavier, we have talked about SIs, VARs, and MSPs. It seems to me that for who we used to call independent software vendors (ISVs), the former packaged software providers, that this hybrid cloud model also offers a new lease on life. Does this work for the applications providers, too?

Extend your reach


Poisson: Yes, absolutely. And we have many, many examples in the past 12 months of ISVs, software companies, coming to Cloud28+ because we give them the reach.

Lequa AB, a Swedish company, for example, has been doing identity management, which is a very hot topic in digital transformation. In the digital transformation you have your role when you speak to me, but in your other associations you have another role. The digital transformation of these roles needs to be handled, and Lequa has done that.

And by partnering with Cloud28+, they have been able to extend their reach in ways they wouldn’t ever have otherwise. Only in the past six months, they have been in touch with more than 30 service providers across the world. They have already closed deals.
If I am only providing baseline managed information services, how can I differentiate from the hyperscale cloud providers? MSPs now care more about the applications to differentiate themselves in the market.

On one side of the equation for ISVs, there is a very big benefit -- to be able to reach ready-to-be-used service providers, powered by Equinix in many cases. For the service providers, there is also an enormous benefit.

If I am only providing baseline managed information services, how can I differentiate from the hyperscale cloud providers? How can I differentiate from even my own competitors? What we have seen is that the MSPs are now caring more about the application makers, the former ISVs, in order for them to differentiate in the market.

So, yes, this is a big trend and we welcome into Cloud28+ more and more ISVs every week, yes.

Gardner: David, another concern that organizations have is as they are distributing globally, as there are more moving parts in a hybrid environment, things become more complex. Is there something that HPE is doing with new products like OneSphere that will help? How do we allow people to gain confidence that they can manage even something that’s a globally distributed hybrid set of applications?

Confident connections in global clouds


Anderson: There are a number of ways we are partnering with HPE, Microsoft, and others to do that. But one of the keys is the Equinix Cloud Exchange Fabric, where now they only have to manage one wire or fiber connection in a switching fabric. That allows them to spin up connections to virtually all of the cloud providers, and span those connections across multiple locations. And so that makes it easier to manage.

The APIs that drive the Equinix Cloud Exchange Fabric can be consumed and viewed with tools such as HPE OneSphere to be able to manage everything across the solution. The MSPs are also having to take on more and be the ones that provide management.

As the huge, multinational enterprises disperse their hybrid clouds, they will tend to view those in silos. But they will need one place to go, one view to look at, to know what’s in each set of data centers.

At Equinix, our three pillars are the ideas of being able to reach everywhere, interconnect everything, and integrate everything. That idea says we need to be the place to put that on top of HPE with the service providers because then that gives you that one place that reaches those multiple clouds, that one set of solid, known, trusted advisors in HPE and the service providers that are really certified through Cloud28+. So now we have built this trusted community to really serve the enterprises in a new world.

Gardner: Before we close out, let’s take a look into the crystal ball. Xavier, what should we expect next? Is this going to extend to the edge with the Internet of Things (IoT), more machine learning (ML)-as-a-service built into the data cloud? What comes next?

The future is at the Edge


Poisson: Today we are 810 partners in Cloud28+. We cover more than 560 data centers in more than 34 countries. We have been publishing nearly 30,000 cloud services in only two years. You see how fast it has been growing.

What do we expect in the future? You named it: Edge is a very hot topic for us and for Equinix. We plan to develop new offering in this area, even new data center technology. It will be necessary to have new findings around what a data center of tomorrow is, how it will consume energy, and what we can do with it together.

We are already engaged in conversations between Equinix, ourselves, and another company within the Cloud28+ community to discuss what the future data center could be.

A huge benefit of having this community is that by default we innovate. We have new ideas because it's coming through all of the partners. Yes, edge computing is definitely a very hot spot.

For the platform itself, I believe that even though we do not monetize in the data center, which is one of the definitions of Cloud28+, the revenues at the edge are for the partners, and this is also by design.

Nonetheless, we are thinking of new things such as a smart contracting around IoT and other topics, too. You need to have a combination of offerings to make a project. You need to have confidentiality between players. At the same time, you need to deliver one solution. So next it may be solutions on best ways for contracting. And we believe that blockchain can add a lot of value in that, too.

Cloud28+ is a community and a digital business platform. We are thinking of such things as smart contracting for IoT and using blockchain in many solutions.
Cloud28+ is a community and a digital business platform. By the way, we are very happy to have been recognized as such by Gartner in several research notes since September 2017. We want to start to include these new functions around smart contracting and blockchain.

The other part of the equation is how we help our members to generate more business. Today we have a module that is integrated into the platform to amplify partner articles and their offerings through social media. We also have a lead-generation engine, which is working quite well.

We want to launch an electronic lead-generation capability through our thought leadership articles. We believe that if we can give the feedback to the people filling in these forms, with how they position versus all of their peers, on how they position versus the industry analysts, they will be very eager to engage with us.

And the last piece is we need to examine more around using ML across all of these services and interactions between people. We need to deep dive on this to find what value we can bring from out of all this traffic, because we have such traffic now inside Cloud28+ that trends are becoming clear.
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For instance, I can say to any partner that if they publish an article on what is happening in the public sector today, it will have a yield that is x-times the one that has been published at an earlier date. All this intelligence, we have it. So what we are packaging now is how to give intelligence back to our members so they can capture trends very quickly and publish more of what is most interesting to the people.

But in a nutshell, these are the different things that we see.

Gardner: And I know that evangelism and education are a big part of what you do at Cloud28+. What are some great places that people can go to learn more?

Poisson: Absolutely. You can read not only what the partners publish, but examine how they think, which gives you the direction on how they operate. So this is building trust.

For me, at the end of the day, for an end-user customer, they need to have that trust to know what they will get out of their investments.

Gardner: I’m afraid we will have to leave it there. We have been exploring how the triumvirate of a global data center hosting company, a hybrid cloud platform provider, and a global cloud community are solving some of the most vexing problems for bringing high-performance clouds to more regions around the globe. And we have learned how new breeds of hybrid cloud solutions are allowing more users to attain world-class cloud services nearly anywhere.

So please join me in thanking our guests, David Anderson, Global Alliance Director at Equinix for its Microsoft Alliance. Thank you, David.

Anderson: Thank you, Dana. It’s been a pleasure.

Gardner: We have also been here with Xavier Poisson, Vice President of Worldwide Service Providers Business and Cloud28+ at HPE. Thank you, sir.

Poisson: Thank you, Dana. A pleasure.

Gardner: And a big thank you as well to our audience for joining us for this BriefingsDirect Voice of the Customer digital transformation success story discussion.

I'm Dana Gardner, Principal Analyst at Interarbor Solutions, your host for this ongoing series of Hewlett Packard Enterprise sponsored interviews. Thanks again for listening. Please pass this along to your own IT community, and do come back next time.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise

Transcript of a discussion on how Equinix, Microsoft Azure Stack, and Cloud28+ together are advancing and extending hybrid cloud options across the globe. Copyright Interarbor Solutions, LLC, 2005-2018. All rights reserved.

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