|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)
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Dec. 4, 2016 03:00 PM EST Reads: 3,238
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 4, 2016 02:15 PM EST Reads: 1,984
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Dec. 4, 2016 02:00 PM EST Reads: 904
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Dec. 4, 2016 02:00 PM EST Reads: 1,896
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 4, 2016 02:00 PM EST Reads: 558
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, 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.
Dec. 4, 2016 01:45 PM EST Reads: 2,153
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 4, 2016 01:30 PM EST Reads: 1,532
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Dec. 4, 2016 12:45 PM EST Reads: 2,120
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 4, 2016 12:30 PM EST Reads: 1,670
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 4, 2016 12:00 PM EST Reads: 770
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 11:45 AM EST Reads: 376
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 4, 2016 11:15 AM EST Reads: 901
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Dec. 4, 2016 11:15 AM EST Reads: 2,204
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 4, 2016 10:45 AM EST Reads: 881
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 4, 2016 09:45 AM EST Reads: 550
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Dec. 4, 2016 09:30 AM EST Reads: 805
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Dec. 4, 2016 09:30 AM EST Reads: 610
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 4, 2016 08:00 AM EST Reads: 717
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 4, 2016 06:45 AM EST Reads: 1,236
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...
Dec. 4, 2016 06:15 AM EST Reads: 6,989