|By Paul Miller||
|December 14, 2012 07:00 AM EST||
Hewlett Packard used its Discover event in Frankfurt last week to reassert the company’s cloud credentials. Public, private, hybrid; HP is painting pictures that encompass them all, whilst seeking to protect hardware revenues and reassure conservative executives at some of its largest and most profitable customers. But HP has been here before, making bold claims and telling people what they wanted to hear about an HP cloud upon which enterprises could depend. This time, will the company deliver?
Earlier this year, satirical news site The Onion took a cruel but funny swipe at HP’s cloud pretensions. HP, the sketch suggested, had the answers, the technology, and a lot of cloud. The company has done — and continues to do — a lot right in this space, but it really did bring this derision upon itself. Mixed messaging, repeated announcements of amazing new cloud services that never quite saw the light of day, an endless stream of apparent strategy U-turns that must surely have left long-time HP executives as dizzy as those trying to understand their intentions? None of this helped HP. But now, Windows Azure is apparently behind us. PalmOS (or whatever it’s called these days) is no longer a glue to bind hardware, peripherals, software and data together. Amazon is an inevitable piece of the whole. And at HP, the new story is one (more or less) of an OpenStack public cloud called HP Cloud (or HP Public Cloud), a VMware private cloud called Cloud System, and a professional services sell called Managed Cloud for Enterprise (which is messily spread across large swathes of HP’s dreadful website, with no obvious landing page to link here).
A public cloud
The biggest cloud news out of Discover was probably the General Availability (at last) of HP’s OpenStack-powered public cloud offering. In keynotes and workshops, it was somewhat surprising to see the extent to which OpenStack and other enabling technologies were not mentioned. This was HP’s cloud, and the implication was clearly that HP know-how was what made it tick. HP hardware, HP software, HP cleverness. None of the ‘Intel Inside’ co-branding, Microsoft Diamond Sponsor loviness or VMware strategic partner rhetoric for this open source project, it seems. But, more relevantly, also none of the recognition that other named open source projects like the various Linux distributions do receive from HP.
Given the rather raw state of some OpenStack components, HP engineers have been busy stitching pieces together, but I would have expected HP to be telling more of a story about portability, about interoperability, and about the breadth and depth of the OpenStack community that customers would be joining. That story wasn’t told, and you had to know where to look to find much mention of the elusive OpenStack at all.
One place, it must be said, where the company was far more forthcoming was in the private Coffee Talks arranged for us by the team at Ivy. In frank cloud discussions such as those with Christian Verstraete, Chris Purcell, Florian Otel and others, far more of the detail — and rationale — was laid on the table.
Pricing is competitive, and it will be interesting to see how HP moves forward here. HP’s public cloud makes plenty of sense for enterprise customers already using HP kit and services elsewhere. But will a startup or a non-customer choose the HP Cloud in preference to Amazon or Google or Rackspace?
They might, if the messaging is right. German cloud analyst René Büst asserted in Frankfurt that “the next Instagram would never choose to start and grow on the HP Cloud”, as Amazon has all the mind-share in the startup community. Does HP care enough about the world beyond existing enterprise accounts to accept René’s challenge and entice that next cool startup? Is it, frankly, worth their while when their entire selling and support machine is geared toward people in suits who value fancy lunches and a Christmas card far more than credit card sign-up and cost competitiveness?
A private cloud
HP’s private cloud offering has been around a little longer, but the company reiterated — and reinforced — messages originally delivered at the Las Vegas Discover a few months back; Cloud System supports ‘bursting’ of compute jobs from an enterprise’s own private cloud to external providers such as HP’s public cloud and Amazon. This is a capability that will become increasingly important as even the most conservative enterprise customers begin their gradual transition out of the data centre and into the cloud.
Whatever Amazon and Salesforce executives might say in public about “the false cloud” or the number of Fortune 100 companies happily doing something on their public cloud infrastructure, they and we know that this is going to be a long game. HP’s flagship customers will move. Eventually, they’ll move almost everything. But it will take a decade or more, and there’s plenty of time to sell a few more private clouds and an awful lot of servers and storage arrays before that day comes.
A recognition of Amazon
HP’s messaging no longer tries to persuade customers that it will always meet every one of their cloud needs. HP has products and solutions to offer, but it is recognising that it needs to fit into a complex mixed environment. The company also recognises that Amazon is an inevitable part of that environment, and that HP solutions need to augment and add value with respect to Amazon. Helping customers to use Amazon when it’s appropriate is a far more effective strategy, long term, than either denying Amazon’s existence or insisting that its solutions are not fit for enterprise consumption. Neither are true, and HP’s customers are smart enough to realise that.
The SLA is king, maybe
One area in which HP is trying to differentiate itself from Amazon is in terms of Service Level Agreements, and this should play well with an enterprise audience. Rather than necessarily worrying about what hardware cloud infrastructure runs on, or whether it’s located on-premise, in a known and audited off-premise location, or out there in the fuzziness of the unbounded public cloud, HP is telling a story that focuses far more upon level of service, level of resilience, etc. This makes a lot of sense. I often don’t actually care whether data runs on my own machines or not. What I care about is whether or not my compliance and business requirements are being met. So instead of choosing public or private, off-premise or on, it makes a lot more sense to think about the business and compliance requirements that a particular solution helps me meet. One solution (on or off-premise) may be more secure, more robust, more disaster resilient, and it will come with an SLA (and a price tag) to reflect that. Another (again, on or off-premise) may be more suited to general crunching of less sensitive data. It’ll be more prone to failure, and cheaper. We tend to assume that our own data centre is the logical home of the former, and that the public cloud is a pretty cost-effective way to handle the latter. That’s not necessarily true, and that’s why it’s refreshing to at least begin to think in more nuanced terms. Unfortunately, although HP execs planted these ideas during their keynotes, the follow-up material quickly fell back into public v private, dodgy commodity kit v HP ‘enterprise grade’ hardware, etc. And that’s a shame.
Gartner’s Lydia Leong takes a deeper look at HP’s latest SLAs, and suggests that they may not be living up to their own rhetoric either. There’s plenty of work still to do in this area, and an effective means of differentiating service and value propositions is long overdue.
Dell goes the other way
HP uses OpenStack for the company’s public cloud, and VMware sits beneath their private offerings. Speaking at Dell World this week, Michael Dell announced that his company is doing the exact opposite; Dell’s existing VMware-powered public cloud is to be joined by a private cloud offering powered by OpenStack.
The public and private offerings of HP and Dell certainly aren’t directly comparable, but it is interesting that the two companies have reached such superficially odd decisions. It even raises the prospect that a customer of HP’s private cloud may find it easier to move to Dell’s public cloud than to HP’s, and that a customer of Dell’s private cloud may find it easier to move workloads to HP’s public cloud than to stick with Dell. Odd at best, this should be raising eyebrows in both Round Rock and Palo Alto.
Will the Converged Cloud actually, you know, Converge?
HP has a lot to say about convergence, both in terms of their hardware business but also in the cloud. And yet, it can be surprisingly difficult to see how the public and private pieces of the HP cloud portfolio really fit together. More often than I’d have expected, HP staffers discussing either the public or private cloud offerings spoke as if theirs was the only cloud in HP-land. A slip of the tongue once, or perhaps twice, but this was repeated again and again and again in Frankfurt. The joined-up story, and the reality of customers starting in either HP Cloud or Cloud System before realising a need to embrace parts of the other doesn’t seem to be getting through on the ground.
HP is a big ship, with some smart people and some great technology. But if it doesn’t tell a single — compelling — story and back it up with an attractive business model, it’s toast.
I can’t remember who it was, but someone in Frankfurt remarked in passing that HP would come through its current troubles “because it had technical chops.” Sadly for HP, that is simply not true. You can have the best technology in the world. But without a defined (or creatable) market requirement, a viable business proposition, and some credible messaging, all of that amazing technology is just some very expensive scrap metal. And a fatal red stain, spreading across the balance sheet.
HP has the technical pieces. It has the people pieces. It has some of the business model pieces. It has parts of the compelling story. It’s time the company joined those together credibly, filled in the gaps, and stopped shooting itself in the foot.
At least starve The Onion of material, so its writers have to try a little harder next time.
Disclosure: acting on behalf of Hewlett Packard, Ivy Worldwide invited me to Discover and covered travel and expenses associated with the trip. There was no requirement that I write about HP, and no requirement that any coverage be favourable.
- At Discover, HP takes the beta sticker off its public cloud (venturebeat.com)
- HP Switches On Public Cloud, Thanks To OpenStack (readwrite.com)
- Hewlett-Packard Cloud Strategy Starts Coming Together (seekingalpha.com)
- When an HP cloud is not an HP cloud (and whether it matters) [GigaOM] (gigaom.com)
- Rackspace CTO: Services & OpenStack – Not Price – Key To Winning Cloud Computing (readwrite.com)
- What HP’s cloud chief wants you to know about HP’s cloud [GigaOM] (gigaom.com)
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jun. 28, 2016 07:30 PM EDT Reads: 325
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jun. 28, 2016 07:15 PM EDT Reads: 238
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
Jun. 28, 2016 06:30 PM EDT Reads: 262
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Jun. 28, 2016 04:30 PM EDT Reads: 888
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Jun. 28, 2016 02:00 PM EDT Reads: 1,132
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jun. 28, 2016 01:00 PM EDT Reads: 809
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jun. 28, 2016 12:45 PM EDT Reads: 952
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Jun. 28, 2016 12:00 PM EDT Reads: 1,136
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jun. 28, 2016 10:30 AM EDT Reads: 478
When people aren’t talking about VMs and containers, they’re talking about serverless architecture. Serverless is about no maintenance. It means you are not worried about low-level infrastructural and operational details. An event-driven serverless platform is a great use case for IoT. In his session at @ThingsExpo, Animesh Singh, an STSM and Lead for IBM Cloud Platform and Infrastructure, will detail how to build a distributed serverless, polyglot, microservices framework using open source tec...
Jun. 28, 2016 10:00 AM EDT Reads: 446
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
Jun. 28, 2016 10:00 AM EDT Reads: 389
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Jun. 28, 2016 09:45 AM EDT Reads: 444
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change t...
Jun. 28, 2016 09:30 AM EDT Reads: 1,295
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 28, 2016 08:30 AM EDT Reads: 1,221
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Jun. 28, 2016 08:00 AM EDT Reads: 1,344
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
Jun. 28, 2016 08:00 AM EDT Reads: 474
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 26, 2016 05:00 PM EDT Reads: 1,349
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Jun. 26, 2016 05:00 PM EDT Reads: 1,260
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Jun. 26, 2016 04:00 PM EDT Reads: 1,313
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Jun. 26, 2016 04:00 PM EDT Reads: 1,394