Continuing my week in Las Vegas for the Data Center Conference 2009, I attended a keynote session on Service Management. There were two analysts that co-presented this session.
One analyst was the wife of a real CEO, and the other was the wife of a real CIO, so the two analysts explained that there was a langauge gap between IT and business. Use the analogy of a clock, business is concerned with the time shown on the front face is correct and ticking properly, but behind the scenes, the gears of the clock, represent IT, finance, supply chain and other operations.
Based on recent surveys, there is a 45 percent "alignment" between the goals of CEO and the goals of a CIO. CEOs are concerned about decision making, workforce productivity, and customer satisfaction. CIOs on the other hand are worried about costs, operations and change initiatives. Both CEOs and CIOs are focused on innovations that can improve business process. Service management strives to shorten the language gap between business and IT, by helping to drive operational excellence that benefits both CEO and CIO goals. Recent surveys found the key drivers for this are controlling costs, improving customer satisfaction, availability, agilty and making better business decisions.
Unfortunately, in this economy, the idea of "transformation" is out, and "restructuring" is in. In much the same way that employees have abandoned career development in favor of simple job preservation, companies are focused on tactical solutions to get through this financial meltdown, rather than launching transformation projects like deploying Service Management tools.
How much influence does the CIO have on running the rest of the business? Various surveys have found the following, ranked from most influential to least:
- 5-9 percent, Enterprise Leader
- 15-18 percent, Trusted Ally
- 25-32 percent, Partner
- 27-35 percent, Transactional
- 7-20 percent, At Risk
The bottom rank not only have little or no influence, but are at risk of losing their jobs. Evaluations based on a Maturity model finds many I&O operations in trouble, 11 percent taking some pro-active measures, 59 percent committed to improvement, and 30 percent aware of the problems.
IT Service Management tries to bring a similar discipline as Portfolio Management and Application Lifecycle Management. Why can't IT be treated like any other part of the business portfolio? What is the business value of IT? IT can help a business run, grow and even transform. IT can help consolidate and centralize shared services to help leverage resources and offer cost optimizations not just for itself, but for the business as a whole.
CIOs that can adopt IT Service Management can have a "Jacks or Better" chance for a seat at the executive table to help drive the business forward.
technorati tags: service+management, CIO, CEO, GDC09, LSC28, transformation, restructuring, ITSM
Continuing my coverage of the IBM Dynamic Infrastructure Executive Summit at the Fairmont Resort in Scottsdale, Arizona, we had a day full main-tent sessions. Here is a quick recap of the sessions presented in the afternoon.
- Taming the Information Explosion
Doug Balog, IBM Vice President and Disk Storage Business Line Executive, presented on the information explosion. Storage Admins are focused on managing storage growth and the related costs and complexity, proper forecasting and capacity planning, and backup administration. IBM's strategy is to help clients in the following areas:
- Storage Efficiency - getting the most use out of the resources you invest
- Service Delivery - ensuring that information gets to the right people at the right time
- Data Protection - protecting data against unethical tampering, unauthorized access, and unexpected loss and corruption
Cory Vokey, Senior Manager of IT Systems Operations at Research in Motion, Ltd., the people who bring you BlackBerry phone service, provided a client testimonial for the XIV storage system. Before the XIV, RIM suffered high storage costs and per-volume software licensing. Over the past 15 months, RIM deployed XIV as a corporate standard. With the XIV, they have had 100 percent up-time, and enjoyed 50 percent costs savings compared to their previous storage systems. They have increased capacity 300 percent, without any increase to their storage admin staff. XIV has greatly improved their procurement process, as they no longer need to "true up" their software licenses to the volume of data managed, a sore point with their previous storage vendor.
- Mainframe Innovations and Integration
Tom Rosamillia, IBM General Manager of the System z mainframe platform, presented on mainframe servers. After 40 years, IBM's mainframe remains the gold standard, able to handle hundreds of workloads on a single server, facilitating immediate growth with scalability. The key values of the System z mainframe are:
- Industry leading virtualization, management and qualities of service
- A comprehensive portfolio for business intelligence and data warehousing
- The premier platform for modernizing the enterprise
- A large and growing portfolio of leading-applications ISV support
Steve Phillips, CIO of Avnet, presented the client testimonial for their use of a System z10 mainframe. Last year, Avnet was ranked Fortune's Number One "Most admired" for Technology distribution. Avnet distributes technology from 300 suppliers to over 100,000 resellers, ISVs and end users. They have modernized their system running SAP on System z with DB2 as the database management system, using Hypersockets virtual LAN inside the server to communicate between logical partitions (LPARs). The folks at Avnet especially like the ability for on-the-fly re-assignment of capacity. This is used for end-of-quarter peak processing, and to adjust between test and development workloads. They also like the various special purpose engines available:
- z Integrated Information Processor (zIIP) for DB2 workloads
- z Application Assist Processor (zAAP) for Java processing under WebSphere
- Integrated Facility for Linux (IFL) for Linux applications
- Cloud Computing: Real Capabilities, Real Stories
Mike Hill, IBM Vice President of Enterprise Initiatives, presented on IBM's leadership in cloud computing. He covered three trends that are driving IT today. First, there is a consumerization and industrialization of IT interfaces. Second, a convergence of the infrastructure that is driving a new focus on standards. Third, delivering IT as a service has brought about new delivery choices. The result is cloud computing, with on-demand self-service, ubiquitous network access, location-independent resource pooling, rapid elasticity, and flexible pricing models. Government agencies and businesses in Retail, Manufacturing and Utilities are leading the charge to cloud computing.
Mike covered IBM's five cloud computing deployment models, and shared his views on which workloads might be ready for cloud, and which may not be there yet. Organizations are certainly seeing significant results: reduced labor costs, improved capital utilization, reduced provisioning cycle times, improved quality through reduced software defects, and reduced end user IT support costs.
Mitch Daniels, Director of Technology at ManTech International Corporation, presented the customer testimonial for an IBM private cloud for Development and Test. Mantech chose a private cloud as they work with US Federal agencies like Department of Defense, Homeland Security and the Intelligence community. The private cloud was built from:
- IBM Cloudburst virtualized server environment
- Tivoli Unified Process to document process and workflow
- Tivoli Service Automation Manager to request, deliver and manage IT services
- Tivoli Self-Service Portal and Service Catalog to allow developers and testers to request resources as needed
The result: Mantech saved 50 percent in labor costs, and can now provision development and test resources in minutes instead of weeks.
- The IBM Transformation Story
Leslie Gordon, IBM Vice President of Application and Infrastructure Services Management, presented IBM's own transformation story, becoming the premier "Globally Integrated Enterprise". Based on IBM's 2009 CIO study, CIOs must balance three roles with seemingly contradictory demands:
- Make innovations real, be both an insightful visionary but also an able pragmatist
- Raise the Return on Investment (ROI) of IT, determine savvy ways to create value but also be ruthless at cutting costs
- Expanding the business impact of IT, be a collaborative business leader with the other C-level executives, but also be an inspiring manager for the IT staff.
In this case, IBM drinks its own champagne, using its own solutions to help run its internal operations. In 1997, IBM used over 15,000 applications, but this has been simplified down to 4500 applications today. Thousands of servers were consolidated to Linux on System z mainframes. The applications workloads were categorized as Blue, Bronze, Silver, and Gold to help prioritize the consolidation. IBM's key lessons from all this were:
- Gather data at the business unit level, but build the business case from an enterprise view.
- Start small and monitor progress continually, run operations concurrently with transformational projects
- Address cultural and organizational changes by deploying transformation in waves
I found the client testimonials insightful. It is always good to hear that IBM's solutions work "as advertised" right out of the box.
technorati tags: IBM, dyninfra, summit, Scottsdale, RIM, XIV, zIIP, zAAP, IFL, Avnet, LPAR, ManTech, ROI, CIO
Continuing my coverage of the Data Center 2010 conference, Monday I attended four keynote sessions.
- Opening Remarks
The first keynote speaker started out with an [English proverb]: Turbulent waters make for skillful mariners.
He covered the state of the global economy and how CIOs should address the challenge. We are on the flat end of an "L-shaped" recovery in the United States. GDP growth is expected to be only 4.7 percent Latin America, 2.3 percent in North America, 1.5 percent Europe. Top growth areas include 8.0 percent India and 8.6 percent China, with an average of 4.7 growth for the entire Asia Pacific region.
On the technical side, the top technologies that CIOs are pursuing for 2011 are Cloud Computing, Virtualization, Mobility, and Business Intelligence/Analytics. He asked the audience if the "Stack Wars" for integrated systems are hurting or helping innovation in these areas.
Move over "conflict diamonds", companies now need to worry about [conflict minerals].
He proposed an alternative approach called Fabric-Based Infrastructure. In this new model, a shared pool of servers is connected to a shared pool of storage over an any-to-any network. In this approach, IT staff spend all of their time just stocking up the vending machine, allowing end-users to get the resources they need.
- Crucial Trends You Need to Watch
The second speaker covered ten trends to watch, but these were not limited to just technology trends.
- Virtualization is just beginning - even though IBM has had server virtualization since 1967 and storage virtualization since 1974, the speaker felt that adoption of virtualization is still in its infancy. Ten years ago, average CPU utilization for x86 servers of was only 5-7 percent. Thanks to server virtualization like VMware and Hyper-V, companies have increased this to 25 percent, but many projects to virtualized have stalled.
- Big Data is the elephant in the room - storage growth is expected to grow 800 percent over the next 5 years.
- Green IT - Datacenters consume 40 to 100 times more energy than the offices they support. Six months ago, Energy Star had announced [standards for datacenters] and energy efficiency initiatives.
- Unified Communications - Voice over IP (VoIP) technologies, collaboration with email and instant messages, and focus on Mobile smartphones and other devices combines many overlapping areas of communication.
- Staff retention and retraining - According to US Labor statistics, the average worker will have 10 to 14 different jobs by the time they reach 38 years of age. People need to broaden their scope and not be so vertically focused on specific areas.
- Social Networks and Web 2.0 - the keynote speaker feels this is happening, and companies that try to restrict usage at work are fighting an uphill battle. Better to get ready for it and adopt appropriate policies.
- Legacy Migrations - companies are stuck on old technology like Microsoft Windows XP, Internet Explorer 6, and older levels of Office applications. Time is running out, but migration to later releases or alternatives like Red Hat Linux with Firefox browser are not trivial tasks.
- Compute Density - Moore's Law that says compute capability will double every 18 months is still going strong. We are now getting more cores per socket, forcing applications to re-write for parallel processing, or use virtualization technologies.
- Cloud Computing - every session this week will mention Cloud Computing.
- Converged Fabrics - some new approaches are taking shape for datacenter design. Fabric-based infrastructure would benefit from converging SAN and LAN fabrics to allow pools of servers to communicate freely to pools of storage.
He sprinkled fun factoids about our world to keep things entertaining.
- 50 percent of today's 21-year-olds have produced content for the web. 70 percent of four-year-olds have used a computer. The average teenager writes 2,282 text messages on their cell phone per month.
- This year, Google averaged 31 billion searches per month, compared 2.6 billion searches per month in 2007.
- More video has been uploaded to YouTube in the last two months than the three major US networks (ABC, NBC, CBS) have aired since 1948.
- Wikipedia averages 4300 new articles per day, and now has over 13 million articles.
- This year, Facebook reached 500 million users. If it were a country, it would be ranked third. Twitter would be ranked 7th, with 69% of their growth being from people 32-50 years old.
- In 1997, a GB of flash memory cost nearly $8000 to manufacture, today it is only $1.25 instead.
- The computer in today's cell phone is million times cheaper, and thousand times more powerful, than a single computer installed at MIT back in 1965. In 25 years, the compute capacity of today's cell phones could fit inside a blood cell.
See [interview of Ray Kurzweil] on the Singularity for more details.
- The Virtualization Scenario: 2010 to 2015
The third keynote covered virtualization. While server virtualization has helped reduce server costs, as well as power and cooling energy consumption, it has had a negative effect on other areas. Companies that have adopted server virtualization have discovered increased costs for storage, software and test/development efforts.
The result is a gap between expectations and reality. Many virtualization projects have stalled because there is a lack of long-term planning. The analysts recommend deploying virtualization in stages, tackle the first third, so called "low hanging fruit", then proceed with the next third, and then wait and evaluate results before completing the last third, most difficult applications.
Virtualization of storage and desktop clients are completely different projects than server virtualization and should be handled accordingly.
- Cloud Computing: Riding the Storm Out
The fourth keynote focus on the pros and cons of Cloud Computing. First they start by defining the five key attributes of Cloud: self-service, scalable elasticity, shared pool of resources, metered and paid per use, over open standard networking technologies.
In addition to IaaS, PaaS and SaaS classifications, the keynote speaker mentioned a fourth one: Business Process as a Service (BPaaS), such as processing Payroll or printing invoices.
While the debate rages over the benefits between private and public cloud approaches, the keynote speaker brings up the opportunites for hybrid and community clouds. In fact, he felt there is a business model for a "cloud broker" that acts as the go-between companies and cloud service providers.
A poll of the audience found the top concerns inhibiting cloud adoption were security, privacy, regulatory compliance and immaturity. Some 66 percent indicated they plan to spend more on private cloud in 2011, and 20 percent plan to spend more on public cloud options. He suggested six focus areas:
- Test and Development
- Prototyping / Proof-of-Concept efforts
- Web Application serving
- SaaS like email and business analytics
- Department-level applications
- Select workloads that lend themselves to parallelization
The session wrapped up with some stunning results reported by companies. Server provisioning accomplished in 3-5 minutes instead of 7-12 weeks. Reduced cost of email by 70 percent. Four-hour batch jobs now completed in 20 minutes. 50 percent increase in compute capacity with flat IT budget. With these kind of results, the speaker suggests that CIOs should at least start experimenting with cloud technologies and start to profile their workloads and IT services to develop a strategy.
That was just Monday morning, this is going to be an interesting week!
technorati tags: IBM, GDP, Cloud Computing, virtualization, mobility, BI, CIO, Big Data, Green IT, Google, Twitter, Facebook, IaaS, PaaS, SaaS, BPaaS
Continuing my coverage of the [IBM Storage Innovation Executive Summit], that occurred May 9 in New York City, this is my seventh and final in a series of blog posts on this event.
- Cosmic Scale of Data
Dan Galvan, IBM VP of Marketing for Storage, was the next speaker. With 300 billion emails being sent per day, 4.6 billion cell phones in the world, and 26 million MRIs per year, there is going to be a huge demand for file-based storage. In fact, a recent study found that file-based storage will grow at 60 percent per year, compared to 15 percent growth for block-based storage.
Dan positioned IBM's Scale-out Network Attached Storage (SONAS) as the big "C:" drive for a company. SONAS offers a global namespace, a single point of management, with the ability to scale capacity and performance tailored for each environment.
The benefits of SONAS are great. We can consolidate dozens of smaller NAS filers, we can virtualize files across different storage pools, and increase overall efficiency.
- Powering advanced genomic research to cure cancer
The next speaker was supposed to be Bill Pappas, Senior Enterprise Network Storage Architect, Research Informatics at [St. Jude Children’s Research Hospital]. Unfortunately, St. Jude is near the flooding of the Mississippi river, and he had to stay put. An IBM team was able to capture his thoughts on video that was shown on the big screen.
Thanks to the Human Genome project, St. Jude is able to cure people. They see 5700 patients per year, and have an impressive 70 percent cure rate. The first genetic scan took 10 years, now the technology allows a genome to be mapped in about a week. Having this genomic information is making vast strides in healthcare. It is the difference of fishing in a river, versus putting a wide net to catch all the fish in the Atlantic ocean all at once.
Recently, St. Jude migrated 250 TB of files from other NAS to an IBM SONAS solution. The SONAS can handle a mixed set of workloads, and allows internal movement of data from fast disk, to slower high-capacity disk, and then to tape. SONAS is one of the few storage systems that supports a blended disk-and-tape approach, which is ideal for the type of data captured by St. Jude.
- IBM's own IT transformation
Pat Toole, IBM's CIO, presented the internal transformation of IBM's IT operations. He started in 2002 in the midst of IBM's effort to restructure its process and procedures. They identified four major data sources: employee data, client data, product data, and financial data. They put a focus to understand outcomes and set priorities.
The result? A 3-to-1 payback on CIO investments. This allowed IBM to go from server sprawl to consolidated pooling of resources with the right levels of integration. In 1997, IBM had 15,000 different applications running across 155 separate datacenters. Today, they have reduced this down to 4,500 applications and 7 datacenters. Their goal is to reduce down to 2,225 applications by 2015. Of these, only 250 are mission critical.
Pat's priorities today: server and storage virtualization, IT service management, cloud computing, and data-centered consolidation. IBM runs its corporate business on the following amount of data:
- 9 PB of block-based storage, SVC and XIV
- 1 PB of file-based storage, SONAS
- 15 PB of tape for backup and archive
Pat indicated that this environment is growing 25 percent per year, and that an additional 70-85 PB relates to other parts of the business.
By taking this focused approach, IBM was able to increase storage utilization from 50 to 90 percent, and to cut storage costs by 50 percent. This was done through thin provisioning, storage virtualization and pooling.
Looking forward to the future, Pat sees the following challenges: (a) that 120,000 IBM employees have smart phones and want to connect them to IBM's internal systems; (b) the increase in social media; and (c) the use of business analytics.
After the last session, people gathered in the "Hall of the Universe" for the evening reception, featuring food, drinks and live music. It was a great day. I got to meet several bloggers in person, and their feedback was that this was a very blogger-friendly event. Bloggers were given the same level of access as corporate executives and industry analysts.
technorati tags: IBM, NYC, Summit, Dan Galvan, SONAS, Bill Pappas, St Jude, Research Hospital, CIO, Pat Toole, SVC, XIV