HP Premier Services Provides Comprehensive Support to Help Enterprises Manage IT Complexity
HP Premier Services Provides Comprehensive Support to HelpEnterprises Manage IT ComplexityTranscript of a sponsored podcast on HPs latest services offering to manage on-premisessoftware implementations.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HPDana Gardner: Hi. This is Dana Gardner, Principal Analyst at Interarbor Solutions, and yourelistening to BrieﬁngsDirect.Today, we present a sponsored podcast discussion on how new models for IT support services are required to provide a single point of accountability when multiple software implementations are involved. [Disclosure: HP is a sponsor of Brieﬁngs Direct podcasts.] Long before cloud and hybrid computing models become a concern, the challenge before IT is how to straddle complexity and how to corral and manage, as a lifecycle, the vast software implementations already on premises.Even before such models as cloud computing models are added to the mix, IT needs to get ahandle on supporting these multiparty software instances, along with the complex integrationsand custom extensions across and between them.Of course, more of these workloads are supported these days by virtualized containers and by aservice-level commitment. So, who are you going to call when things go wrong or whenmaintenance needs to affect one element of the stack without hosing the rest? How do youmanage at the service level agreement (SLA) or multiple SLA level?Not only does IT need a one-hand-to-shake value on comprehensive support more than ever, butIT departments may need to increasingly opt to outsource more of the routine operational tasksand software support to free up their IT knowledge resources and experts for transformation,security initiatives, and new business growth projects.Nowadays, the focal point for IT operational success lies not so much in just choosing thesoftware and services mixture, but also in the management and support of these systems andimplementations and the SLAs as an ecosystem, and that ecosystem must be managedcomprehensively with ﬂexibility and for the long-term.More than ever, ﬁnger pointing on who is accountable or responsible amid a diverse and fastmoving software environment cannot be allowed, not in an Instant-On Enterprise.
Consequently, were here with an executive from HP Software to examine an expanding set ofnew HP Premier Services that are designed to combine custom software support and consultingexpertise to better deliver managed support outcomes across an entire software implementation.Please join me now in welcoming Anand Eswaran, Vice President, Global Professional Servicesat HP Software. Welcome back to BrieﬁngsDirect.Anand Eswaran: The pleasure is mine, Dana.Gardner: Anand, what is the problem, as I have been describing it, this level of complexity ofmultiple systems, multiple types of computing? Were talking about spanning, I suppose,paradigms of computing. How did we get to where we are and what is it that people need to startthinking about doing differently?Setting the contextEswaran: Let me start by at least setting the context on the business problem or customer problem that were trying to address. One is, as you just so eloquently explained, IT complexity is increasing by the day. Having multiple vendors accountable for different parts of the IT strategy and IT implementation is a huge problem. The second dimension of the problem is the software industry paradigm in general. If you look at the software industry and how the software industry works with the customers, you have discrete lifecycles in which we touch the customer.The ﬁrst is when we actually start to engage with them in solving a business problem for them.We paint the ROI that we could get by virtue of deploying our software solution, and based onthat the customer makes a buying decision. Once that buying decision is made, in reality whatthey have bought is a product, which is the core part of that solution.The second lifecycle for the customer is when we actually deploy the solution that theypurchased. Once we deploy that solution, whether it is the professional services organization ofthe software company, a channel partner, or a systems integrator (SI), the third step is that wedeploy it in production and then we transition operation and maintenance of it back to thecustomer.Taking a step back, if there is a problem, then the customer’s ﬁrst call is to customer support,which is inside the software organization. And, if the support organization deems that theproblem is actually the manner in which the product was implemented and not the product itself,then we transition back to the customer and ask them to contact the organization they used todeploy the product.
Because of the complexity of the solution and because multiple organizations are accountable fordifferent discrete parts of the solution, the customer is left holding the bag on to ﬁgure out howto navigate the complexity of the software organization. How do you pinpoint exactly where theproblem is and then engage the right party?So, at the heart of it what were trying to do is simplify the complexity of how a customer or anIT organization deals with the complexity of their stack.The second thing is that an IT organization is always striving to ﬂip the ratio of innovation andoperations. As you look today, it is 70 percent operations and 30 percent innovation. If you getthat single point of accountability, which you so beautifully explained, they can focus more oninnovation and supporting the business needs, so that their company can take advantage ofgreater market share, versus operations and maintaining the stack they already have.Gardner: It’s interesting, because a lot of the rationale that I hear from moving to cloudcomputing in general is because of a failure to manage this complexity. But, maybe the solutionis to manage the complexity, before you start moving into additional models. Is cloud as a trendfueling this? What else is behind the need to get a better handle on multiple instances ofsoftware?Eswaran: One is the loud and clear feedback from the customers. As we look back in the lasttwo years of Customer Advisory Boards we do, where we have different CIOs participating, themain feedback element, which always features in the top three, is "Help us take accountabilityfor the full business value."Business outcomesWe talk about business values. Business outcome is probably the most clichéd word, but you can never deliver on a business outcome until you take accountability for the full lifecycle. So, the feedback is the necessity to make sure that the business outcome we promise to the customer is realized, and we take accountability for it as the ﬁrst and most important reason, Dana. And youre right, cloud is a big trend and cloud talks about exactly the same things, which is: "Let us completely make this whole process of managingthe operations in the stack transparent to you, Mr. Customer."The reality is that cloud is still nebulous. Different companies have different interpretations ofcloud. Customers are still a little nervous about going into the cloud, because were still notcompletely sure about quality, security, and all of those things. So, this is the ﬁrst or second stepyou take before you get comfortable to get to the cloud.What were able to do here is take complete control of that complexity and make it transparent tothe customer -- in a way, quasi deliver the same outcomes which we say a cloud can deliver.
That’s the second thing: cloud is a trend, and were making sure that we actually address it beforewe get there.The third thing, which is very interesting is that a lot of these services are also things wereproviding to the cloud service providers. So, in a way, were making sure that people who offerthat cloud service are able to leverage our services to make sure that they can offer the sameoutcomes back to the customer. So, it’s a full lifecycle.Gardner: That’s an interesting point. These services providers, these hosts, these cloudproviders can’t manage their margins and provide a quality service at an affordable price, if theydon’t employ these same sorts of comprehensive support.Now, if we need to change how the software and multiple implementations are managed, you asa services provider, as a support provider, probably need to change as well. So what’s differentnow about how you are coming to market than several years ago?Eswaran: Let me just ﬁrst spend maybe 35 seconds telling you what is it that were talking abouttoday. If you look at classical customer support as part of a software organization, the supportorganization supports the product, and that’s why you have the complexity for the customer aswe talked about.What were announcing and launching is enhancing and elevating that support from just being aproduct to actually being the entire project and the solution for the customer. This is where, whenwe deploy a solution for a customer, which involves our technology, our software, for the mostpart, a service element to actually make it a reality, we will support the full solution.Thats the principal thing now that will allow us to not just talk about business outcomes whenwe go through the selling lifecycle, but it will also allow us to make those business outcomes areality by taking full accountability for it. That is at the heart of what we are announcing today --extending customer support from a product to the project and from a product to the full solution.Gardner: Is it fair to say, Anand, that youre looking at this now from that SLA or multiple SLAaspect -- that youre sort of an über SLA manager? Does that take it to the next level?Two dimensionsEswaran: Absolutely. And if I walk through what HP Premier Services is, that probably willshed more light on it. As I explain HP Premier Services, there are two dimensions to it.The ﬁrst dimension is the three choice points, and the ﬁrst of those is what has classically beencustomer support. We just call it Foundation, where customer support supports the product. Youhave a phone line you can call. That doesnt change. Thats always been there.The second menu item in the ﬁrst dimension is what we term as Premier Response, and thismenu item is where we actually take that support for the product and extend it to the full project
and the full solution. This is new and this is the ﬁrst level of the extension we are going to offerto the customer.The third menu item takes it even further. We call it Premier Advisory. In addition to justsupporting the product, which has always been there, or just extending it to support a solutionand the project -- both of those things are reactive -- we can engage with the customer to beproactive about support.Thats proactive as in not just reacting to an issue, but preempting problems and preemptingissues, based on our knowledge of all the customers and how they have deployed the solution.We can advise the customer, whether its patches, whether its upgrades, whether its other issueswe see, or whether its a best practice they need to implement. We can get proactive, so wepreempt issues. Those are the three choice points on the ﬁrst dimension.The second dimension is a different way to look at how were extending Premier Services for thebeneﬁt of the customer. Again, the ﬁrst choice point in the second dimension is called PremierBusiness. We have a named account manager who will work with the customer across the entirelifecycle. This is already there right now.The second part of the second dimension is very new, and large enterprise customers will derivea lot of value from it. Its called Premier TeamExtend. Not only we will be do the ﬁrst threechoice points of foundation, support for the whole solution, and proactive support, we willextend and take control for the customer of the entire operation of that solution.At that point, you almost mimic a software-as-a-service (SaaS) solution, but if there are reasons acustomer wouldnt want to do SaaS and wouldnt want to do managed services, but want to hostit on-site and have the full solution hosted in the customer premises, we will still deploy thesolution, have them realize the full beneﬁt of it, and run their solution and operate their solution.By virtue of that, we make anything and everything to do with the back end -- infrastructure,upgrades, and all of that -- completely transparent to the customer. All they care about is thebusiness outcome. If its a solution we have deployed to cut outages by 3 percent and get servicelevels uptime up to 99.99 percent, thats what they get.Complete transparencyHow we do it, the solutions involved, the service involved, and how were managing it iscompletely transparent. The fundamental headline there is that it allows the customer to go backto 70 percent innovation and 30 percent maintenance and completely ﬂip the ratio.Those are the ﬁve choice points, which is what HP Premier Services is about, which starts to rollthe ball up the hill and help the customer.Gardner: Let me drill in on that Premier TeamExtend. That really sounds like a new ﬂavor onthis whole sourcing equation, even on where you get your IT value.
If I understand correctly, you are almost saying that you can get the best of the SaaS or cloudimplementation, whereby you have that one interaction, that one manager. You have a cost pointthat you can appreciate. You have levels of service management that you put in place.But, you dont have to take the risk of moving this off premises or even changing the architecturefundamentally. Its really changing how you manage this particular set of software assets and,therefore, you can get the best of both worlds. Or am I overstating it?Eswaran: No, youre not overstating it. In fact, the reason it works really well for us is that whatyou said is exactly true. Let me give you a couple of use cases where it starts to make a bigdifference.Within HP, as we all know, we have Enterprise Services (ES), with outsourcing services we offerto our customers.There are many instances in which ES has offered a software solution to the customer as part ofan outsourcing solution. Weve offered Premier Services to our ES team, so they can can offerthat über, one throat to choke, one point of accountability solution for the customers they workwith without necessarily having to say, "If you have a software problem, you probably need to goto HP Software Customer Support." We help ES take full accountability at the back end.We work across HP to make this whole vision of one throat to choke, one point of accountability,and making accountability for the business outcome for the customer a reality.You said exactly the right thing, you didn’t overstate it.. We can also offer the same service to allthe outsourcing providers or cloud service providers we work with.Gardner: There has to be some technical capability involved here. The last time we spoke, itwas around Business Service Management 9 (BSM9), which you released last year. Is there atechnical capability where you can come in and implement BSM 9, which allows you to thenmanage these implementations remotely and at a competitive cost, which would allow you tocome back and offer something like Premier TeamExtend?Eswaran: Absolutely. There are a couple of things. One is, there is technical capability involved.The second is that were offering this across the entire HP Software portfolio stack. BSM 9,would be applicable, when we are talking about offering this service in the operation space of ourHP Software products. But, we can also do the same thing in the application space. We can alsodo the same thing for certain HP Services projects, which may not have that big productfootprint.Across the portfolioSo, this is a service that were offering across the entire portfolio for all solutions we put in frontof customers. Some of them may involve BSM, and some of them may not. People may ask
whats different. "Why are you able to do it today? The customer problem you are talking aboutsounds pretty native. Why haven’t you done this forever?"Dana, if you look at a software organization, the segmentation between support and services isvery discrete, whether inside the company or whether it is support working with servicesorganization outside the company, and that’s the heart of the problem.What were doing here is a pretty big step. You hear about "services convergence" an awful lot inthe industry. People think that’s the way to go. What they mean by services convergence is thatall the services you need across the customer lifecycle merges to become one, and that’s what weare doing here.Were merging what was customer support, which is a call center, and that’s why they cant takeaccountability for a solution. They are good at diagnostics, but theyre not good at full-ﬂedgedsolutions. Theyre merging that organization.What that organization brings in is scale, infrastructure, and absolute global data center coverage.Were merging that with the Professional Services (PS) organization. When the rubber hits theroad, PS is the organization or the people who deploy these solutions.And by virtue of a very, very extensive PS team within HP Software, we operate in 80 or 90countries. We have coverage worldwide. By merging those two, you get the best of both worlds,because you get scale, coverage, infrastructure, capability. Thats how were able to provide theservice where we take accountability for this whole solution.Gardner: So, whereas I as an IT customer would have to manage different aspects of support,youre going to bring that together on your end and allow me to purchase those in a moreintegrated and comprehensive fashion.What I really like about it too is that it allows me to have ﬂexibility in how I would acquire andinvest in these types of services. I can do it at a fairly gradual pace and/or I can isolate speciﬁcapplications and say, "Lets push those out into this more comprehensive support, becauseeventually I might want to move to a cloud model or a SaaS model." It seems that it gives mequite a bit more as an architecture decision process and more to work with as a consumer.Eswaran: Absolutely. In my view, and in HP Software’s view, this is a fairly groundbreakingsolution. If I were to characterize everything we talked about in three words, the ﬁrst would besimplify. The second would be proactive -- how can we be proactive, versus reacting to issues.And, how can we, still under the construct of the ﬁrst two, offer the customers choice.Customers are at different points of maturity, of the appetite they have for risk, and the appetitethey have for the capabilities that they bring to the table. They are at different points in thetrajectory across a variety of those different parameters, and were offering choice to them.
Customer choiceWere not just giving them one thing, which theyre pretty much forced to take, but if its a verymature customer, with extensive capability on all the products and IT strategies that theyreputting into place, they don’t need to go to TeamExtend. They can just maybe take a Foundationwith just the ﬁrst bit of HP Premier Services, which is Premier Response. That’s all they need totake.If there is an enterprise that is so focused on competitive differentiation in the marketplace andthey dont want to worry about maintaining the solutions, then they could absolutely go toPremier TeamExtend, which offers them the best of all worlds.Choice is a very big deal for us, so that customers can actually make the decision and we canrecommend to them what they should be doing.Gardner: I like the idea of being able to dip your toe in the water and try some things out. Ifthey work, pursue them, and then examine the different hosting options you might have furtherout. A lot of companies seem to be putting the cart in front of the horse.Theyre saying, "Were going to go to the sourcing options like cloud, SaaS or hybrid, but wereally haven’t ﬁgured out how we would manage the service and support." It seems as if you are,in a sense, encouraging them to do that ﬁrst and then think about the sourcing option.Eswaran: Absolutely.Gardner: This sounds great in theory, but what happens in practice? Do you have any examplesof where you have done this -- whether you can tell me who they are or what happened in ageneral sense? What are some of the outcomes when you do this based on your suggestionsacross these different four levels?Eswaran: Were still working on being able to release customer names, but let me walk youthrough the use cases, so we understand kind of what we are talking about here.Were working with a large organization in the U.S., where the biggest issue the customer hadwas the need to cut outages in their data centers by 40 percent. They were struggling on thatcount.If you look at the classical model, you sell your product, BSM, operations, orchestration, SA.Essentially, what youre doing there is selling them a product. Youre using a servicesorganization to deploy those products and then you turn it back to support.Now, we can talk about how we do this, but when the customer’s only need was to cut outagesby 40 percent, no one organization can take accountability for that ﬁnal outcome. We can put asolution that gets them there, but eventually they are stuck holding the bag and hoping that this
solution will actually do that. If theres a problem, they basically have to ﬁgure out who theyneed to go to, to make sure the problem goes away.Limited launchWe committed to them that we would put a solution in place which would cut their outages by40 percent, because weve been in limited launch mode for the last nine months on HP PremierServices.We were able to deploy the solution, the entire operation stack, across that IT organization. Wewere able to now hold ourselves, HP Software, accountable for what we committed to them. Sureenough, at this point in time, the customer’s business outcomes are completely and fully realized.What you see as a subtext to this is that it’s not just the cost savings that we will enable to thedifferent customers because of what we do. Its not just ﬂipping the ratio from operations toinnovation. Those are huge things, but the key is that were able to commit and guarantee servicelevels. Were able to commit and guarantee business outcomes. That’s not what we were able todo in the past.We work with a large ﬁnancial services organization, where we talked about cutting their defectlevels in half across the entire stack, by virtue of a test automation solution we are putting inplace.Again, because of what we are doing here, we actually made that a possibility, because we nowmanage and take control of the full lifecycle for the customer. I think the initial math was that thedefect level they had was close to 7 percent or 6.5 percent, which was causing them a spend of$125 million. So, cutting that in half is a huge cost saving for the customer.That is the kind of discussions were able to engage in with our customers today, guarantee abusiness outcome, and follow through, because were in control of the full customer lifecycle.Gardner: How would I know if I am in a right position or a good position to start availingmyself of these types of services? Are there any telltale signs inside an organization, whether it’sfrom a cost structure, whether it’s from availability and performance perspective, whether it’sfrom a reluctance of IT to bring on more or new technology or solutions?Are there sort of some telltale signs that would indicate whether moving towards this morecomprehensive service and support approach would be the right thing, the right ﬁt, the righttiming?Eswaran: Absolutely. If you feel youre bouncing around between different organizations, as youtry to get control of your IT infrastructure, whether if you work with an external SI and you donot feel that there is enough in sync happening between support and an external SI and you feelfrustrated about it, this falls right in the sweet spot.
If you feel that you need to start moving away from just projects to business outcome basedsolutions you need to deploy in your IT organization, this falls right in the sweet spot for it.If you feel that you want to spend less of your time maintaining solutions and more of your timethinking about the core business your company is in and making sure that your innovation is ableto capture a bigger market share and bigger business beneﬁts for the company you work for, andyou want some organization to take accountability for the operations and maintenance of thestack you have, this falls right in the sweet spot for it.Smaller companiesThe last thing, interestingly enough, is that we see a little bit of uptake from even smaller andmedium-sized companies, where they do not have enough people, and they do not want to worryabout maintenance of the stack based on the capability or the experience of the people they haveon these different solutions -- whether its operations, whether its applications, whether it issecurity across the entire HP software stack. So, if youre on any of those four or ﬁve differentuse cases, this falls right in the sweet spot for all of them.Gardner: What about availability? When will these services be available? Where can we learnmore about them? How should an organization engage? Who do they talk to? Is this a softwarediscussion, a services discussion, a help desk discussion? How do you learn more, and when arethese available?Eswaran: Weve been in limited launch mode since June of last year. We wanted to make surethat we engage with a limited set of customers, make sure this really works, work out all thelogistics, before we actually do a full public general availability launch. So, it is effectiveimmediately.From an engagement standpoint, just work with the regular software team members or HP teammembers you work with. This is a service within HP. It is provided by HP Software Services, butyour method of engagement should just be with the regular HP people you work with.The whole purpose of this is to take complexity away. So work with whoever you work with.They have the ability to dip into HP and avail this service.If it is software, thats very simple, because we provide that service. If it is ES, work with them,because we provide the service to ES as well. So, work with the usual HP counterparts or pointof contact you have, and they will make sure this service is available for you.Gardner: And I imagine if you wanted to just do a quick search you could go to HP PremierServices online on your web search and you will probably ﬁnd a lot of information there.Eswaran: You should be able to ﬁnd a lot of information there. Were publicly announcing thison March 8, and well have a lot more detail to share then.
Go down to HP Software component of the HP website and you should be able to ﬁnd datasheetsand all of that, and then work with your regular HP point of contact. They will be able to get youany other information you need.Gardner: Great. Weve been discussing about how new models are coming together for ITsupport services and why they are necessary to provide more of a single point of accountabilitywhen multiple software implementation is involved. And as we have discussed this more, Ivelearned that this is really an opportunity to create stepping stones to future models, a bit more ofan architected approach to service with an integrated support characteristic. That to me is prettyexciting.So I want to thank our guest. Weve been here with Anand Eswaran, Vice President ofProfessional Services for HP Software. Thanks so much, Anand.Eswaran: Thank you, Dana.Gardner: And this is Dana Gardner, Principal Analyst at Interarbor Solutions. Youve beenlistening to a sponsored BrieﬁngsDirect podcast. Thanks for listening and come back next time.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HPTranscript of a sponsored podcast on HPs latest services offering to manage on-premisessoftware implementations. Copyright Interarbor Solutions, LLC, 2005-2011. All rights reserved.You may also be interested in: • HPs Kevin Bury on How Cloud and SaaS Will Help Pave the Way to Increased Efﬁciency in IT Budgets for 2011 and Beyond • HP Uniﬁes Software Support Services • HP Introduces Services to Ease Complexity of Software Integration • HPs Bill Veghte on Managing Complexity Amid Converging IT Inﬂection points