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Tony Pearson is a Master Inventor, Senior IT Architect and Event Content Manager for [IBM Systems for IBM Systems Technical University] events. With over 30 years with IBM Systems, Tony is frequent traveler, speaking to clients at events throughout the world.
Lloyd Dean is an IBM Senior Certified Executive IT Architect in Infrastructure Architecture. Lloyd has held numerous senior technical roles at IBM during his 19 plus years at IBM. Lloyd most recently has been leading efforts across the Communication/CSI Market as a senior Storage Solution Architect/CTS covering the Kansas City territory. In prior years Lloyd supported the industry accounts as a Storage Solution architect and prior to that as a Storage Software Solutions specialist during his time in the ATS organization.
Lloyd currently supports North America storage sales teams in his Storage Software Solution Architecture SME role in the Washington Systems Center team. His current focus is with IBM Cloud Private and he will be delivering and supporting sessions at Think2019, and Storage Technical University on the Value of IBM storage in this high value IBM solution a part of the IBM Cloud strategy. Lloyd maintains a Subject Matter Expert status across the IBM Spectrum Storage Software solutions. You can follow Lloyd on Twitter @ldean0558 and LinkedIn Lloyd Dean.
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This week I am at the Data Center Conference 2009 in Las Vegas. There are some 1700 people registered this year for this conferece, representing a variety of industries like Public sector, Services, Finance, Healthcare and Manufacturing. A survey of the attendees found:
55 percent are at this conference for the first time.
18 percent once before, like me
15 percent two or three times before
12 percent four or more times before
Plans for 2010 IT budgets were split evenly, one third planning to spend more, one third planning to spend about the same, and the final third looking to cut their IT budgets even further than in 2009. The biggest challenges were Power/Cooling/Floorspace issues, aligning IT with Business goals, and modernizing applications. The top three areas of IT spend will be for Data Center facilities, modernizing infrastructure, and storage.
There are six keynote sessions scheduled, and 66 breakout sessions for the week. A "Hot Topic" was added on "Why the marketplace prefers one-stop shopping" which plays to the strengths of IT supermarkets like IBM, encourages HP to acquire EDS and 3Com, and forces specialty shops like Cisco and EMC to form alliances.
Day 2 began with a series of keynote sessions. Normally when I see "IO" or "I/O", I immediately think of input/output, but here "I&O" refers to Infrastructure and Operations.
Business Sensitivity Analysis leads to better I&O Solutions
The analyst gave examples from Alan Greenspan's biography to emphasize his point that what this financial meltdown has caused is a decline in trust. Nobody trusts anyone else. This is true between people, companies, and entire countries. While the GDP declined 2 percent in 2009 worldwide, it is expected to grow 2 percent in 2010, with some emerging markets expected to grow faster, such as India (7 percent) and China (10 percent). Industries like Healthcare, Utilities and Public sector are expected to lead the IT spend by 2011.
While IT spend is expected to grow only 1 to 5 percent in 2010, there is a significant shift from Capital Expenditures (CapEx) to Operational Expenses (OpEx). Five years ago, OpEx used to represent only 64 percent of IT budget in 2004, but today represents 76 percent and growing. Many companies are keeping their aging IT hardware longer in service, beyond traditional depreciation schedules. The analyst estimated over 1 million servers were kept longer than planned in 2009, and another 2 million will be kept longer in 2010.
An example of hardware kept too long was the November 17 delay of 2000 some flights in the United States, caused by a failed router card in Utah that was part of the air traffic control system. Modernizing this system is estimated to cost $40 billion US dollars.
Top 10 priorities for the CIO were Virtualization, Cloud Computing, Business Intelligence (BI), Networking, Web 2.0, ERP applications, Security, Data Management, Mobile, and Collaboration. There is a growth in context-aware computing, connecting operational technologies with sensors and monitors to feed back into IT, with an opportunity for pattern-based strategy. Borrowing a concept from the military, "OpTempo" allows a CIO to speed up or slow down various projects as needed. By seeking out patterns, developing models to understand those patterns, and then adapting the business to fit those patterns, a strategy can be developed to address new opportunities.
Infrastructure and Operations: Charting the course for the coming decade
This analyst felt that strategies should not just be focused looking forward, but also look left and right, what IBM calls "adjacent spaces". He covered a variety of hot topics:
65 percent of energy running x86 servers is doing nothing. The average x86 running only 7 to 12 percent CPU utilization.
Virtualization of servers, networks and storage are transforming IT to become on big logical system image, which plays well with Green IT initiatives. He joked that this is what IBM offered 20 years ago with Mainframe "Single System Image" sysplexes, and that we have come around full circle.
One area of virtualization are desktop images (VDI). This goes back to the benefits of green-screen 3270 terminals of the mainframe era, eliminating the headaches of managing thousands of PCs, and instead having thin clients rely heavily on centralized services.
The deluge in data continues, as more convenient access drives demand for more data. The anlyst estimates storage capacity will increase 650 percent over the next five years, with over 80 percent of this unstructured data. Automated storage tiering, ala Hierarchical Storage Manager (HSM) from the mainframe era, is once again popular, along with new technologies like thin provisioning and data deduplication.
IT is also being asked to do complex resource tracking, such as power consumption. In the past IT and Facilities were separate budgets, but that is beginning to change.
The fastest growing social nework was Twitter, with 1382 percent growth in 2009, of which 69 percent of new users that joined this year were 39 to 51 years old. By comparison, Facebook only grew by 249 percent. Social media is a big factor both inside and outside a company, and management should be aware of what Tweets, Blogs, and others in the collective are saying about you and your company.
The average 18 to 25 year old sends out 4000 text messages per month. In 24 hours, more text messages are sent out than people on the planet (6.7 billion). Unified Communications is also getting attention. This is the idea that all forms of communication, from email to texts to voice over IP (VoIP), can be managed centrally.
Smart phones and other mobile devices are changing the way people view laptops. Many business tasks can be handled by these smaller devices.
It costs more in energy to run an x86 server for three years than it costs to buy it. The idea of blade servers and componentization can help address that.
Mashups and Portals are an unrecognized opportunity. An example of a Mashup is mapping a list of real estate listings to Google Maps so that you can see all the listings arranged geographically.
Lastly, Cloud Computing will change the way people deliver IT services. Amusingly, the conference was playing "Both Sides Now" by Joni Mitchell, which has the [lyrics about clouds]
Unlike other conferences that clump all the keynotes at the beginning, this one spreads the "Keynote" sessions out across several days, so I will cover the rest over separate posts.