Tbr event perspective_hp_cloud

Tbr event perspective_hp_cloud



Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company ...

Technology Business Research is a different kind of research company. Our bottoms-up approach provides a look at the technology industry unlike anything you’ve seen before. We analyze company performance in professional services, networking and mobility, computing and hardware, and software on a quarterly basis, leveraging our data to create industry benchmarks and landscapes that provide a business perspective on leaders and laggards and their business plans. We are experts in the business of technology.



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Tbr event perspective_hp_cloud Tbr event perspective_hp_cloud Document Transcript

  • TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C . TBR EVENT PERSPECTIVE HP fires on all cylinders in the race to the top spot among cloud vendors HP Cloud Analyst Event 2012 Boston, March 29, 2012 Authors: Stuart Williams (stuart.williams@tbri.com), Director, Software Practice Ramunas Svarcas, Senior Analyst, Professional Services Practice Jillian Mirandi, Analyst, Software Practice Cassandra Mooshian, Analyst, Professional Services Practice Contributing Author: Christian Perry, Senior Analyst, Computing PracticeTBR PerspectiveHP is repositioning and reintroducing itself into the cloud market. The company’s rebooted cloud strategy wasannounced at HP Cloud Summit, held on March 29 in Boston, where executives unveiled a new, more integratedvision for HP technology and services. TBR believes HP deserves a fair hearing from customers and partners whomay have been waiting for a more comprehensive public, private and hybrid cloud strategy. Competitors willdiscover that HP now has the offerings, tools and platforms – as well as its historic strength in technology andservices – to win cloud-related and cloud-influenced business. There are no clear winners yet – especially in theemerging arena of complex hybrid cloud environments. The key question for HP’s overall cloud business is whetherthe company can align and manage its business units to continue to project one cohesive and differentiatedmessage to the marketplace.2011 marked a transformational year, during which HP focused its resources internally rather than on newportfolios, to organize and strategize for coming years. From a market perspective, this caused HP to fall behindcompetitors in the cloud landscape. Out of that reorganization, CEO Meg Whitman announced cloud as a majorarea of focus to drive growth and unity across HP’s former silos. Though HP lagged behind competitors in terms ofproviding cloud solutions aimed at helping customers consume third-party cloud services, HP retains strength inproviding cloud infrastructure solutions that enable customers to build out cloud environments. As such, the
  • TBRcompany is well positioned among cloud vendors to deliver cloud services and solutions, touting an openarchitecture, internal IP, hybrid capabilities and experience.Event OverviewTBR analysts attended HP’s 2012 Cloud Analyst event on March 29 in Boston. HP discussed its vision and strategyfor its cloud business, one that spans horizontally across the company’s portfolios of hardware, networking,software, services and professional services. In an opening presentation, Bill Veghte, chief strategy officer andexecutive vice president of HP Software, explained HP’s converged service model approach to cloud computing,saying, “we can’t get by with dedicated silos anymore.” This speaks to Whitman’s strategy of unifying the businessunits and going to market with one voice. The rest of the morning consisted of four more presentations: HP clouduse cases and demonstrations performed by HP cloud executives; an HP cloud customer panel of four; an HP CTOpanel; and a panel of HP EVPs from its ESSN, Software and Enterprise Services groups. During a series of one-on-one sessions, HP cloud executives, including Marge Breya (VP, Worldwide Marketing, HP Software), Arthur Filip (VPand GM, Technology Consulting) and Ewald Comhaire (director, Global Infrastructure Services, HP EnterpriseServices) informed TBR analysts of recent cloud-related developments and provided insight into HP’s cloudstrategy and roadmap.Throughout the day, HP executives echoed the importance their new chief executive places on having one unifiedstrategy. Executives from HP’s business units sat together on stage and often completed one another’s thoughtson HP’s cloud go-to-market and delivery strategies. The HP Converged Cloud is “integrated by design” and providescustomers with three “C’s” – choice, confidence and consistency. The company utilizes its software IP, includingthat of recently acquired companies Autonomy and Vertica, to provide BI and analytics capabilities that span clouddelivery models and the layers within each. HP takes a common architecture approach to its cloud solutions,basing them on its Converged Infrastructure to enable one consumption model. HP’s vendor-agnostic approachallows its cloud business to leverage its large partner and channel ecosystems to co-brand and co-sell solutions,partially eliminating some direct sales costs and expanding reach into global markets. Partner programs such asCloudAgile (its cloud channel program) and the HP PartnerONE Cloud Builder Specialist enable HP to align withpartners to capitalize on demand for cloud environments and services.Members of the customer panel indicated one of their greatest challenges is that demand is exceeding capacity interms of the management of environments; this indicates a significant need for an environment that can handlethe increasingly demanding workloads of today and tomorrow. One customer was hopeful about the business andIT benefits cloud would provide to him and his company, saying, “The typical IT shop spends 80% of its timebuilding and maintaining its IT infrastructure … cloud will allow us to flip that ratio and focus more on businessvalue.” TBR believes these candid responses from HP’s cloud customers underscore the importance of cloudenvironments in making operations more efficient and enabling employees to contribute to higher-value work.Through cloud, customers can focus on business problem solving as opposed to IT problem solving, which can leadto improved revenue streams and customer satisfaction and more rapid delivery of products to market.The one shortcoming TBR perceived during the event was the lack of adequate representation in the formalpresentations from the HP Professional Services organizations. While HP Services will play a pivotal role inproviding insight to clients who embark on the cloud journey, the integration of services into the overall commonarchitecture approach has yet to be formally vocalized. TBR believes bringing together the various HP silos into oneunified body, focusing on infrastructure transformation to cloud environments, be it private, public or hybrid, willneed to be led by a strong consulting initiative. Consulting will need to be integrated into the overall solution fabricand expanded to include industry specific business consulting. HP’s heritage as a product and software company isimpacting its evolution into a full professional services organization. HP is providing first the products andsoftware/cloud services, while consulting offerings are being developed to accommodate the new infrastructure www.tbri.com
  • TBRofferings. A technology company at its core, HP has historically led sales of its solutions with hardware, laterwrapping services and software around the hardware to add value; however, TBR believes this tendency isbeginning to level out and will continue to do so going forward. Recent research conducted by TBR on the CloudProfessional Services market indicates clients require an understanding of how business needs are met by cloudsolutions; thus, a full business consultative service offering is necessary in addition to IT consulting expertise.Key Offerings, Impact and OpportunitiesDevOps, combined with open source, enables customers to significantly shorten time-to-codeand to increase visibility into development and operations by moving the functions closertogetherThe most significant drivers of cloud adoption are agility, flexibility and scalability, and the greatest barrier issecurity. HP’s cloud-powered DevOps (development plus operations) brings the development process andoperations closer together to increase overall business productivity while maintaining a highly secureenvironment. With HP’s hybrid approach, customers can run, develop and test in the public cloud while keepingdata highly secure in the private cloud. Vendors such as AWS, Salesforce.com and Google are unable to offer highlydynamic hybrid clouds that can manage all processes, data and operations while switching workloads from publicto private. With its DevOps solution, HP customers can understand every aspect of IT, recognize wherebreakdowns are and take proactive, corrective action either automatically or manually.HP’s strategy of providing hardware that customers require to provision and manage resources in their ownprivate cloud environments remains largely unchanged. Customers will also maintain the option of buying privateclouds as a service. For customers already using one of these private cloud variants or planning to implementeither, public cloud addition presents an intriguing option beyond hybrid environments for testing and similar usecases. With the public cloud option, HP-equipped datacenters can extend on-premises capacity on a flexible basiswithout committing to additional hardware purchases and the space required to hold it. Although this servicealready exists through other public cloud providers, administrators already using on-premises HP hardware andsoftware likely will appreciate the more seamless experience of a converged environment.A major strategy within HP Cloud is open development. TBR believes open development is becoming increasinglyimportant and will be a key aspect of future PaaS solutions, and HP is well positioned to capitalize on the market.HP is using cloud-based open source software vendor OpenStack as the foundation of many of its public, privateand hybrid cloud offerings. Competing open platforms include VMware’s Cloud Foundry and RedHat. According toTBRs Winter 2012 Cloud Adoption Study and 4Q11 Public Cloud Market Landscape Study, PaaS developmentplatforms are the smallest adopted segment as compared to SaaS applications and IaaS compute and storage, butare the fastest growing, at 53% year-to-year. As the least adopted and fastest-growing public cloud segment, TBRbelieves PaaS marks the greatest opportunity for vendors and will drive the next wave of cloud adoption.HP is investing heavily in its Enterprise Services business, growing its cloud and technologyconsulting capabilitiesTBR believes HP’s efforts to build out its consultant, sales and delivery teams will drive traction for the company inthe cloud space. HP’s cloud professional services, including its roadmap and consulting services, provide customerswith tailored solutions to address their specific industry and business pain points, enabling them to tailor to theirclients’ needs as well as drive efficiencies. Education services, such as HP’s Cloud Discovery Workshop, cloudsimulation and curriculum services and its Certification in Cloud Security Knowledge (CCSK) program, allowcustomers to attain hands-on experience with HP’s cloud security and manageability software and talk directly toHP cloud experts. www.tbri.com
  • TBRTBR anticipates continued demand for cloud consulting services as enterprise, SMB and public sector organizationsseek expert guidance on the ways cloud can positively affect their profitability. As organizations come to realizeboth the IT and business benefits of deploying cloud environments, the number of people involved in the decisionmaking process will only increase. Cloud consultants play an integral role in the alignment of CIO, CTO and CFOneeds as the line between business and IT in customer organizations blurs, as it has within IT organizations such asHP and its peers. HP’s CFO Roundtable, a global series to educate CFOs on the benefits of cloud computing, willhelp customer organizations better align financial and technology roadmaps.Technology Business Research, Inc. is a leading independent technology market research and consulting firmspecializing in the business and financial analyses of hardware, software, networking equipment, wireless, portaland professional services vendors. Serving a global clientele, TBR provides timely and accurate market research andbusiness intelligence in a format that is uniquely tailored to clients’ needs. TBR analysts are available to furtheraddress client-specific issues or information needs on an inquiry or proprietary consulting basis.TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.©2012 Technology Business Research Inc. This report is based on information made available to the public by the vendor and other publicsources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable orresponsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is notand should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value,purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact TechnologyBusiness Research, Inc. for permission to reproduce. www.tbri.com