Hastening Trends Around Cloud, Mobile, Push ApplicationTransformation as Priority, Says ResearchEdited transcript of a spo...
.When you get recessionary periods, hyper growth in particular markets, and the injection of newtechnologies, people look ...
Theyre always on, and therefore the expectations of those people who are going to be with usnow for the next 60-70 years i...
The whole expectation around the application is changing and I think it’s irreversible. Were notgoing to go backwards. Wer...
So, do we ever switch off? The answer is probably no. Maybe we just switch off a little bit of thetime, but this whole not...
Gardner: You and I spoke recently about the pace here. We’ve seen the transitions over the past15 or 20 years, but I don’t...
Gardner: They really want to see the expression of the technology and not to be so consumedwith the technology itself.Evan...
If you look like anybody else, why is anyone going to come to you? If youre going tocommoditize, some companies may not wa...
As I heard on a television program, we are compelled to travel into the future. It’s not beingcorny. That’s what were doin...
the application securities in the product have really changed the rules on security, not to view thisas a bolt on.Anybody ...
The flip side is that people that are using the Microsoft Dynamics customer relationshipmanagement (CRM) package. Maybe the...
Cloud Service Automation runs on the cloud system, which is enabled by BladeSystem Matrix.What that’s doing is provisionin...
could they get rid of some? The ones they want to move forward, do they need to change?Obviously, there are functional dif...
Evans: People just need to get to their heads around it, because we appreciate it. There are somebig questions to answer. ...
Edited transcript of a sponsored podcast discussion on converging forces that will compelenterprises to take a close look ...
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Edited transcript of a sponsored podcast discussion on converging forces that will compel enterprises to take a close look at their application portfolios.

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Hastening Trends Around Cloud, Mobile, Push Application Transformation as Priority, Says Research

  1. 1. Hastening Trends Around Cloud, Mobile, Push ApplicationTransformation as Priority, Says ResearchEdited transcript of a sponsored podcast discussion on converging forces that will compelenterprises to take a close look at their application portfolios.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HP.Dana Gardner: Hi. This is Dana Gardner, Principal Analyst at Interarbor Solutions, and yourelistening to BriefingsDirect. Today, we present a sponsored podcast discussion on the fast-moving trends supporting the rationale for application transformation. We will see how these same trends are pointing to a deeper payoff from the well-managed embrace of hybrid computing models. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.] An added requirement for application transformation is to make them available more securely, even in these hybrid implementations, while addingautomation and governance features across their entire service lifecycle. We also have some newresearch that describes how top level enterprise executives are reacting to these fast-movingtrends, buffeting nearly all global businesses.Lastly, well examine some new products and services from HP designed to help companiesmove safely, yet directly, to transform their applications, improve their hosting options, and freeup resources that can be used to provide the innovation needed to support better businessprocesses. Its and the support of business processes, after all, that’s the real goal of theseactivities.Im here with an HP application transformation expert to dig into the new research and to betterunderstand HP’s response to these market and technology shifts. Please join me now inwelcoming Paul Evans, Worldwide Lead for Application Transformation for HP EnterpriseBusiness. Welcome back, Paul.Paul Evans: Thank you, Dana.Gardner: Lets dig into these some of these trends. Were looking at things that are moving veryrapidly. We have some mega trends. Were looking at new business models. Were still diggingour way out of a very deep recession. Paul, give me the landscape, if you will, of what’s going onand why now is such an opportune time to look at applications.Evans: We see three mega trends, and we validate this with customers. We haven’t just madethese up. And, the three mega trends really come down to firstly that people are evolving theirbusiness models.
  2. 2. .When you get recessionary periods, hyper growth in particular markets, and the injection of newtechnologies, people look at how to make money and how to save money. They look at their business model and see they can make a change there. Of course, if you change the business model, then that means you change the business process. If you change the business process, the digital expression of a business process is an application. So, people need to change their apps. So, you change your model and the process and need to change your app, because for most people now, the app is pretty much the digital expression of their business. For many of us, when we go online or do some form of transaction, at the end of the day, it’s an app that is authenticating this, validating the transaction, making the transaction, whatever it may be. That’sone mega trend we see happening.The second mega trend is that technology innovation just keeps on going, whether it’s theinfusion of cloud architectures that people are looking towards, or the whole mega trend aroundmobile connectivity. That is a game changer in their mind. It’s a radical transformational time forapplications, as they accommodate and exploit those technologies.No precedentSome people just accommodate them and say, "Okay, we can do things better, maybe lessexpensively. We can be more innovative, more flexible in this way, or maybe we can do thingsdifferently. Maybe we can do things like we have never ever done them before." I don’t believe theres any precedent for the mobile evolution that were going to see coming towards us through smartphones, pads, or whatever it may be. We cant look back over our shoulder and say, "What we did five years ago well just do that again, and it will be wonderful." I don’t think there is any precedent here. There is an opportunity for people to do some really innovative things.Third, it’s the whole nature of the changing workforce. The expectations of people that arejoining with the community every day on the net is very different from the people at the otherend of the spectrum and their experience.When we look at young people joining the net and when we look at young people coming intothe workforce, their expectation is very high in terms of what they want, what they need, andwhat they would like to achieve. This is in terms of the tools they utilize, whether it’s socialnetworking, whether it’s just the fact that their view is that they are sort of always on thenetwork, whether it’s through their mobile or whether it’s through their notebook or whateverdevice they use.
  3. 3. Theyre always on, and therefore the expectations of those people who are going to be with usnow for the next 60-70 years is starting from a position of, we have always known the web, wehave always liked the web, we have always had the web. So their view is, we just want to seemore of it and better. We want to see things as services rather than processes. The expectation ofthose people is also having a lot of effect. Those three mega trends affect the way thatorganizations have to respond.Gardner: Applications, of course, have been very important for quite some time, whether thecomputing model was mainframe or client-server, or distributed web. What strikes me asdifferent now, Paul, is that these applications are coming from different places, and were usingbits and pieces of applications to support processes and we need to have them accessible at anygiven time, hence your instant-on. Were looking at not only a shift in technology, but even thedefinition of an application is up for grabs. Would you agree with that?Evans: Oh yeah, and this area is so close to my heart. There were days when you got most ofyour apps from the IT function, because they were central. So you got a window onto them. Yougot a device that allowed you to access them.We went through the PC revolution and we all wandered off to the store on weekends and boughtthat shrink-wrapped software, which, of course, drove the IT function crazy, because then everydesktop was different and we got support issues.Then, you wanted a bigger PC because you were running more software, even though the ITfunction didn’t actually support the software. So, you had sort of anarchy breaking out. Then youhad the response to the anarchy which was, "No, there will be a desktop. It will be this. It willhave this suite of software. And, God forbid you put anything extra on it.So, people did the obvious thing. Well, they said, okay, fine, well do it at home then. They builtan environment at home that reflected their lifestyle, their wants, their preferences, theirplatforms, and apps.Mobile platformThen, the walls started to come down, because once we got into this whole notion of the mobileplatform, people realized that they can sit at home and download apps, a lot of them for non-business purposes, games, or whatever, but a lot of them for data access, data manipulation, anddata presentation.So, there were a lot of guys sitting at home in the evening -- and when I say guys, I mean in thegeneric sense, male and female -- saying, "I can do this better. I can make this look nicer. I cando this processing on a device that I can just sit on my couch while watching the TV and dosomething with."
  4. 4. The whole expectation around the application is changing and I think it’s irreversible. Were notgoing to go backwards. Were going to keep on driving forward, because people like HP andothers see the real value here. Were going to start to have a different approach to apps. It’s goingto be more component driven and it’s not going to be monolithic.We have to go away from the monolithic app anyway, because it’s not a flexible device. Its notsomething that easily delivers innovation and agility. People have already understood that thecost of maintaining those monolithic, legacy applications is not acceptable.On the front side of that, there are people who say that the future holds great things. The futureholds the ability for us to not only download apps, but maybe download components of apps.Whereas mashups today are in the realm of the more technically oriented, mashups are going tofind their way into our everyday life.People do it today. They send an email to their friend and say, "By the way, if you want to cometo my house, here is the link to the map with the driving direction." It’s a very simple mashup,but its something that is very effective.Were going to get far more sophisticated in how we do those things, and theyll be tailored tothis whole notion of context awareness. So, theyll understand where they are and what theyredoing. Things will change by virtue of the context of the person, where theyre based or whatdevice they are using.I really get excited by the fact were just starting down that road, and there is a lot of good stuffmore to come.Gardner: So, people are going to have the ability with their business processes, just as they doin their personal lives, to intercept and react to events, to data, and to changes. Theyre going todo this 24x7, based on what works for them or what’s important for those business processes.It sounds like we’re into an instant-on enterprise always and forever. Thats the vision. It seemsinevitable. Many organizations are well into this, but it seems that CIOs are caught in the middle,if the expectations are high, but their capabilities are rooted in the past.Whats going on with these higher-level business executives who see and appreciate the visionand understand how this will benefit their business, but aren’t quite sure how to get there?Blurring linesEvans: Youre right. You put it in a nutshell. In a way its sad when we say our personal livesand our business lives are blurred into one. If Im talking to a lot of customers at the same time,maybe I’ve got a regional audience, Ill ask how many people do email on their holiday? I neveractually want to know the answer, because I know what the answer is going to be. About 95percent of the hands go up.
  5. 5. So, do we ever switch off? The answer is probably no. Maybe we just switch off a little bit of thetime, but this whole notion these days of always on, instant-on, or whatever is something thatunfortunately is here to stay. We just have to be somewhat disciplined, sometimes saying that wedon’t need to be on today. We could afford a day off.If Im a CIO or in senior leadership of any organization, I look one way and I see that the appsare actually running my business today or they’re making my profit, measuring my profit,measuring my revenue. Those apps have a real value, because they have embedded intellectualproperty that means something.Its not a productivity app. Productivity apps are relatively straightforward, because you couldget that from somewhere else. I could potentially get it at a different price, and we really do talkto our customers very hard about that.We tell them to understand whats core to the business and understand what is productivity.Because if its productivity, which is not going to give you any fundamental differentiation, thenyou really should be purchasing at the lowest possible price.You can look at an on-premise supply, you can look at off-premise, you can look at outsourcingor out-tasking, or you can look to the cloud. There are a lot more choices available to people whomaybe could lower the cost, and that has a direct impact on the bottom line.But, if youre looking at core applications, something that is fundamental to your business,theyre not so easy to just move around. The CIO looks at those and say, "I’ve got this massiveinvestment. What do I do?" Then, he swings around and sees the world of cloud and mobileheading towards them and says, "Now Im challenged, because the CFO or CEO is telling me Ineed performance improvement, if I need to get into these new markets whatever it maybe."At the same time, they needs to cut cost, be really innovative, and explore all these newtechnologies. He wants to understand what hes going to do with the old ones, which may takemoney and funding to achieve. At the same time, he wants to exploit and be innovative with thenew. That’s a very difficult position to sit in the middle of and not feel the stretches and strains.We sit with the CEOs on their side of the table and try and understand the balance of whatbusiness is looking to achieve, whether that would be improvement in product delivery ormarketing and customer satisfaction. The things that people look to a technology group for andsay, "Our website experience is losing its market share. Do something about it," that’s in theCIO’s regime. He looks around the other way and says, "But, I have got all these line of businessguys that also want me to keep on making product or making whatever and I need to understandwhat I do with legacy."So, we sit on their side of the table and say lets make a list, lets prioritize, lets understand someof the fundamentals of good business and your technology and come up with a list of actionableitems. You got to have a plan that is not 12 months, because this is not a 12-month thing.
  6. 6. Gardner: You and I spoke recently about the pace here. We’ve seen the transitions over the past15 or 20 years, but I don’t think either one of us has seen anything happen quite as rapidly as thismobile, cloud, data, and behavioral shift. They all reinforce one another. Now, you wanted toplumb into that and find out a bit more. So, you’ve done some research. Here in the spring of2011, people understand that the stopwatch has been clicked, the time is ticking. What weresome of your findings?Fundamental audienceEvans: We actually went to the C-suite -- the CEO, CIO, and CFO -- and just tried tounderstand from them how they see things, because they are clearly a fundamental audience thatwe need to work with and understand their opinions and how their opinions have changed.Two or three years ago, during the heavy economic times, cost was all it was all about. Take costout. Take cost out. Don’t worry about the functionality; I need to take cost out. Now, that’schanged. Weve seen, both from the public and the private sector, the view that weve got to beinnovative. Innovation is going to be the way we keep ourselves different, keep ourselves alivethe way we move forward.A business requirement is that we need to innovate. If we stand still, were probably goingbackwards. I know that sounds ridiculous, but you have do more than just keep up to speed.Youve got to accelerate. And, we asked the C-suite if innovation therefore is important.Ninety five percent of the people we talked to said innovation is key to the success of theorganization. As I said, that was both public and private. Of course, the private sector would, butwhy would the public sector, because they dont have any competition? But, they are servingcitizens who have expectations and want the same level of service that we see from a privateorganization in the public domain.So, one, the audience said to us that innovation is key. Two, we didn’t see any massive differencebetween public and private. Then, we asked them how they relate innovation and technology.Basically, they told us that technology is the innovation engine. It is the thing that makes theminnovative. Theyre going to have new products and new services, but whether the technology isinvolved in the front end or the back end of that, it’s involved. It’s not an administration functionanymore. Its the life blood of what they do.So its not HP saying this. Its our customer saying to us that technology would be the engine thatthey will use to be innovative going forward. We told them, "Well, technology is a big thing. Areare we talking about mobiles? Are we talking about blade servers? What do you see?Applications and software that derive more flexible process was the number one area where theywould invest first, across all the audiences. So, their view was that they know there are lots ofpieces for technology, but if they want to innovate, they see that applications and software is thevehicle that gets them there.
  7. 7. Gardner: They really want to see the expression of the technology and not to be so consumedwith the technology itself.Evans: As I said earlier, we use this term that technology is the digital expression of the businessprocess. It is the business process, and we do it in a digital environment, in a digital fabric, youmight say.Actually, customers will say, "Do you agree with this or disagree with this? What do you think?"And we can give them any of our opinions to start with, but unanimously CEO, CFO, CIO cameback and said that applications and software are what its all about.Focus on applicationsThere were three times more votes for that than the second place choice, which was to invest inmore people. What it’s saying is that we could apply more people to our process, but way aheadof anything was that weve got to focus on applications in software.Gardner: Youre not going to succeed, if you can’t do that. How is HP responding to this? Nowthat you understand that their priorities are becoming more in tune with where youve seen themarket going for some time, what is your response? What do you take back from that?Evans: For a long time, it felt like we are bashing our head against a brick wall. Weve seen thatclients are spending 70-80 percent of their IT budgets on maintenance. The smart guys in thecompany look around and say that doesnt feel right.Around 2005, internally, we had a new CIO, Randy Mott come on board. He looked around andclearly felt that there was room for improvement. Our IT costs were not great -- about fourpercent of revenue, which for an IT organization wasn’t bad. His view was that he could get itdown to two, and could make it more flexible, more adaptive, more agile, and more innovative atthe same time.It’s a well-documented case study that HP went through this rationalization, this applicationportfolio. We went from 7,000 apps to 2,000. Then, we turn our attention to our customers andwe see our customers struggling with the same thing.For the last year or two, we felt sometimes like an endangered species and banging our headsagainst the wall saying that we believe it’s the portfolio. Some people, although they appreciatedthe advice, sometimes ignored it. Maybe before the economic downturn, their view was that iswas costing a lot of money, but they could afford a lot of money.Since the downturn, theres been a reawakening. Not only are you going to save money, butyoure going to do more with less in terms of financials. More importantly, youre going to haveto get some differential innovation going.
  8. 8. If you look like anybody else, why is anyone going to come to you? If youre going tocommoditize, some companies may not want to live in a commoditized environment. So, theyneed to be different. They need to have something special and treat their customers, products, orservices in a different way.Weve been actively on this trail of wanting to help customers get hold of those portfolios, and,you might say, do a bit of spring cleaning. With the acquisition of EDS, we got a lot of peoplewho not so much understood HP, but actually understood other than those environments, so thatwe could bridge that gap. When a customer says, "Im running a mainframe. You probably don’tunderstand those," yes, we do.What to keepWhen a CIO says, "What do I do now? What do I go with? The bulk of my apps are running onthe mainframe, and I have a funny feeling I don’t need to do that," we can have a joined-upconversation about how they can migrate from that environment and we understand the nuances.We dont just say to take everything is off the mainframe. Were not that naïve. We try tounderstand what they should keep, what they should change, and what they should retire.Gardner: Paul, weve spoken a bit about a changed set of requirements here. It’s not just amatter of sloughing off old apps and it’s not just a matter of moving from one compute style toanother. Were talking about transformation in terms of what applications actually are, where theycome from internal clouds, on premises, or maybe from external clouds. But, we also need tomake sure that weve got security and automation, otherwise it doesn’t scale. It becomes morechaotic, and we also need to govern across these different hosting environments.So, it’s really a very substantial undertaking. How is it that these people don’t feel overwhelmed?What do you bring to them in terms of products and services that helps set the table rather thanput them into a deep depression?Evans: Well, theres nothing I can do about depression, but I’ll try. Anyone whos been keepingtheir eyes on HP for a while would have seen some significant investments, especially in thesoftware area,, and this preceded the research where customers are telling us that apps andsoftware are pretty important.The investments in companies like ArcSight and Fortify have been there because, as they say inice hockey terms, were trying to predict where the puck is going to go, and were trying to movetowards where the puck will be, as opposed to where it is now.Weve been investing in acquisitions, but also investing in internal R&D, looking at thecustomer’s environment to see what things are really top of mind. Effectively, we know thischange is irreversible. The technology industry, whether you like it or not, never goes backwards.
  9. 9. As I heard on a television program, we are compelled to travel into the future. It’s not beingcorny. That’s what were doing. Were looking at this, so the new range of products and servicesthat were bringing out are around several of those core areas.One, is that people need to get a real good handle on what theyve got. A lot of CIOs we meet anda lot of people we talk to the IT function will openly admit that they have a no clear idea whattheir portfolio looks like. They don’t know how much it’s costing them. They don’t know whatthe components are. They don’t know how well theyre aligned for the business.They don’t know what sort of technology underpinnings theyve got and what sort of securitylevel theyre implementing. That sounds like a pretty terrible picture, but unfortunately it’s prettymuch reality. There are definite clients we meet who do know, but theyre pretty rare.Gardner: Thats what I find as well -- people really dont know what they’ve got.Application portfolio managementEvans: You’ve to get your head around that first, because if you dont know what you’ve got,then how the hell can you move forward? So, weve invested a lot in Application PortfolioManagement, a new software product, combined that with a whole portfolio of services toexploit it, which really gives people a very rich graphical environment and the ability tounderstand the portfolio and make decisions.Thats an area were paying real attention to, because we believe that unless people get that clearline of sight on their sampled portfolio, theyre going to have a challenge. Basically, we get a lotof questions. One is, "Ive got an applications portfolio. What should I move to the cloud,assuming it’s private? Should I move all of it?" Its probably unlikely youre going to moveeverything to the cloud, because moving stuff like intellectual property may not be such a goodidea.This whole notion of where weve been in the past -- service-oriented architecture (SOA) andshared services -- is a real underpinning. Some people think SOA died. SOA did not die. Itsactually one of the technological underpinnings for going forward in creating these sharedservices which were going to be calling a cloud environment.We tell people we can help them understand which apps are fit to go to the cloud and should goto the cloud. This is how we get them to the cloud. By the way, well also tell you the ones thatshouldnt.We get that question a lot. Of course, when you talk cloud, you invariably get people talkingabout the biggest excuse not to go to cloud, which is that its not secure.As I said, were into irreversible change. We know there may be challenges, which is why theacquisition of companies like ArcSight and Fortify, and what we have brought out recently with
  10. 10. the application securities in the product have really changed the rules on security, not to view thisas a bolt on.Anybody that is familiar with the notion of a stack knows we go from hardware at the bottom toapplication at the top with all the intermediate layers. We could bolt on a security enhancementto a piece of the stack with the view that we’ll stop you coming in.Unfortunately, as you are aware, there are unscrupulous people who know their way aroundcertain bolt-ons, and have a way of infiltrating. From reports in the press, it’s very clear aboutwhat can happen when they do. Weve taken is a totally different approach.Make security something that is inherent within the whole process. So that once you are throughthe gatekeeper, you cant just have a lot of fun and games inside the code. Once you are in, yourenot going to get very far. Also, monitor this in real-time. Dont make this a static process, make ita dynamic process, so that you can dynamically see vulnerabilities and react to those in real-time.So, it would be the software is saying that its going to stop this, and stop us from having aproblem. Theres a big investment for us in this whole notion of security.Gardner: The security cuts across these products. You’ve talked about an application portfoliomanagement product. What else is coming out here in April?Hybrid deliveryEvans: Well, obviously, this whole notion of hybrid delivery with the cloud, and looking atdifferent models to deliver things. People are coming to us and saying that they have someproductivity applications that maybe they shouldnt be running in an extremely expensiveenvironment. We see a lot of people who run an app on a mainframe. We ask why, and the userresponds because they always have. Maybe its time that it didn’t.If youre short of cash and trying to be innovative, why would you want to spend a whole truckof cash on something that you dont need to. Go and spend it on something you should.We need to help people understand how they can migrate their productivity up. MicrosoftExchange is a good example. Big productivity -- messaging is a productivity. Yes, it helps peopledo what they do every day.If Im running Exchange, I can move this to a private cloud environment, still within my firewall.The biggest challenge everybody faces is . how do you provision for it? How much infrastructuredo I need to give people the response they are looking for?Now, everyone runs out of processing power and everyone runs out of storage. I do every day,especially storage. But, the point is how to separate environments that can smooth those peaksand troughs. We believe exchange services for private cloud is the way to do that.
  11. 11. The flip side is that people that are using the Microsoft Dynamics customer relationshipmanagement (CRM) package. Maybe they don’t want to be in the CRM business. They want tobuild relationships with customers, want to understand who they are andwhat they are. Maybe they don’t want to be in the whole provisioning business.So, what were offering is what we call Enterprise Cloud Services for Microsoft Dynamics CRM,which says we will put this on our service. The customer just buys a service through the net andpays per usage. If they don’t use it, they don’t pay.Were going to see a lot more of that style of hybrid delivery where you pay per use. What Iwant, I use, and I pay for. What I don’t want, I put it back. I don’t have to take any responsibilityfor infrastructure and storage and all the stuff that goes with it. I want to give that responsibilityto someone else and get on with my core business.Gardner: Let me make sure I understand. Youre talking about Microsoft Exchange, emailcollaboration, personal information manager (PIM). These are very important and aren’t goingaway, but the way in which you utilize your resources might shift. I think you are saying its asoftware-as-a-service (SaaS) model, but not necessarily, purely a SaaS model. It’s kind of sharedservices -- consume as you need and then pay as you consume.SaaS modelEvans: It’s a SaaS model and other options. There was a model once where everyone was onpremises. Then, the whole notion of outsourcing came in, and people looked at that and felt itwas pretty good. So, they went to outsourcing.We believe that this whole notion will be called "hybrid delivery." It will be a mixture of all ofthem -- on premises, off premised, people running services inside their firewall as private clouds.It’s actually a public provision service where it will be provisioned for them outside their firewalland then they buy what they want.Also, one of the components of the announcement we are bringing out is what we call CloudService Automation, which were extremely proud of. This is really for the people who want toget a cloud service up and running, want to do it fast, and don’t want to have to spend the nexttwo years playing computer scientist. They want to get up, running, provisioned, and out there.It just shows the pace of this market. We brought version one of this product out in January. InApril, were bringing out the next version with a significant level of enhancement aroundprovisioning and manageability, and 4000 scripts embedded. So, people can just assemble things.Back to the question you asked me earlier about the way the apps are going, this is reallyassembling procedures where the customer wants to do and can through a drag-and-dropenvironment. Some people view that as nearly impossible.
  12. 12. Cloud Service Automation runs on the cloud system, which is enabled by BladeSystem Matrix.What that’s doing is provisioning an infrastructure, giving people the choices of networkcomponents, upgrading systems, and their virtualization environment. All of this is through drag-and-drop. Its just staring at the screen and saying they want Linux on that, HP-UX on that,Windows on that, and a VMware on that, and then drop it on.Then, taking applications again, they want a database here, and all of this by magic happens inthe background. And then the real clever bit will provision this for 10,000 transactions an hour.All of a sudden, they hit 11,000 transactions. Now, what happens? We can already program it sothat, if we hit 11,000, were going to burst out and go to another service provider, who we trust,that will take that peak loading. When the peak loading is complete, it will return back into theoriginal environment.So this is what we call fundamental building blocks of people that are looking to deploy a cloudenvironment.Gardner: This sounds exciting, because were giving people really what they want, which is theability to be flexible. We are giving the architect the role of deciding how systems work, ratherthan the administrator, but you are also targeting some very important application sets,collaboration and communication and then CRM.But if this works for those two application sets, it should work for others. So, I assume that this isjust the beginning in terms of the applications you are going to be giving the same treatment?Irreversible changeEvans: Well, I think we can blue sky it out and say that this is the way it’s going to be. As Isaid, irreversible change, compelled to travel in the future, all that. But, there is some real sort ofdown to earth tactical things you’ve got to think about.Take for example, the client environment. We’ve talked a lot about the server, but the clientworld is changing at a high speed by virtue of people’s desire to use devices that are not chainedto the desk anymore -- whether that’s more portable, notebook type machines, smartphones, padsor whatever. You’ve also got to take into account the fact that there are a lot of enterpriseapplications that you still use on traditional desktop PCs. You cant ignore those and should not.A year after launching, about 13 percent of the Windows XP base moved to Windows Vista. So,the bulk of the market stayed with XP for whatever reason. Now,. theyre saying they need tomake that move, but some of these desktop apps are pretty sophisticated. This is not just simpleproductivity stuff. This is a part of the enterprise portfolio. Therefore, they also need to getworried about it big time and fairly quickly.So what we’ve done for our customers is to look at their volume, their desktop environment, andcome up with what apps theyve got, what they do, are they useful, do they need all of them,
  13. 13. could they get rid of some? The ones they want to move forward, do they need to change?Obviously, there are functional differences between XP and Windows 7.We’ve got some background in this. We’ve got some skills. We’ve actually set up a factoryenvironment, because we think this is a volume thing. This is not ones and twos. This is volume.By virtue of our knowledge and experience we can give you a very good return on yourinvestment because we know all of the differences. We know all the gotchas. When you’ve usedthe special feature inside XP, we know how that will translate to Windows 7.By the way, we can also tell you some things in Windows 7 that you maybe want to use, becausethat could make your environment more secure, more robust, more whatever. So we’re settingthat up as a piece of our application transformation portfolio. As I said, its not just the clientworld, but its the server world as well.Gardner: How about some examples? Do you have any folks that have been doing this already,that are deploying in this fashion, leveraging for innovation, transforming applications, targetingcertain apps and then taking them to a hybrid model? Tell me a little bit about them and what thepayoffs are? Its still perhaps a little hypothetical to say if you do this, you get blank, but whatsactually happening on the street?Evans: We’ve actually set up a new program called The Re-Inventors. These are people whohave taken a position that innovation is what its about. The status-quo is not going to get them towhere theyre going to be. Our first re-inventor came from DreamWorks and talks about theexploitation of fundamental technologies from HP.Public sectorThe second re-inventor we’re announcing is the Flemish Government. Although theyre in thepublic sector, their view was that they cannot continue with paper-based processes. Theyreinaccurate, inefficient, and ineffective. We’re promoting that as a part of our re-inventorsprogram who demonstrated that they took a very much a paper-based environment and put it intothe digital world. They used the digital expression, and are providing a level of service to theircitizens that is second to none.As I said, there is always this view that the public sector has no competition, so why do theyhave to do this, but they do. If people have the right motivations, and a sense of service,deploying the digitally-based solutions, rather than manual, is absolutely the way to go. That’swhat we’re talking about in terms of this new re-inventors program and specifically the FlemishGovernment.Gardner: For those folks who have not yet taken the plunge, but see the writing on the wall,how does one get started? How can we learn more about the research that you’ve done and someof the findings and also some of these products that you run out during April.
  14. 14. Evans: People just need to get to their heads around it, because we appreciate it. There are somebig questions to answer. We don’t trivialize this. This is not a game. This is serious. Seriousproblems need serious people to respond.We have our traditional URL, which is relatively simple, hp.com/go/applicationtransformation.There, you can then go off and explore things that will interest you.At a higher level, if people are interested in this whole Re-inventors Program, we have anotherURL which may be an even better starting point -- www.hp.com/go/instanton. There you canlearn about the Re-inventors Program, whether app trends, hybrid delivery, or whatever. Itsmeant to be a resource pool, where you can just sit down and say, "Im interested in this. Can Ifind the persons in the same industry as me doing this. Can I go and read about that?"In the application transformation space as, we set up a TV channel on what we call HP TV. Thereis a link on the website. You can listen to HP material. You can listen to customers -- the ItalianMinistry of Education or the New York Stock Exchange, among others. You can hear Gartneranalysts talk about the future of applications, what this whole notion of context-aware or cloud ormobility means. Massimo Pezzini from Gartner is on there talking about that.Were saying to people that were trying to help. If they want more, they can come and tell us,whether its the whole program, which is this whole instant-on program, or whether it’s droppingdown into any one of the solution areas like app transformation.It tells people not only that here’s HP and this is what we do, but we also believe people needsome context. Its not only HP, but I want to understand what other people think. Were trying tocreate that sort of pull. So, we have a link on the CIO Magazine for people who want to join acommunity.Were just trying to help people see that this is really important. We have been sort of screamingand shouting for the last year or two, and we believe that people are really onto this now. HP hasa role to play in pointing people in the right direction.Gardner: Thank you Paul. Weve been listening to a sponsored podcast discussion on the fastmoving trends and some new product supporting the need for application transformation andleveraging hybrid computing models. I want to thank our guest. Weve been here with PaulEvans, Worldwide Lead for Application Transformation for HP Enterprise Business. Thanks somuch, Paul.Evans: Thanks, Dana.Gardner: This is Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks for listeningand come back next time.Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: HP.
  15. 15. Edited transcript of a sponsored podcast discussion on converging forces that will compelenterprises to take a close look at their application portfolios. Copyright Interarbor Solutions,LLC, 2005-2011. All rights reserved.You may also be interested in: • HP Software GM Jonathan Rende on How ALM Enables IT to Modernize Business Faster • HP Premier Services Closes Gap Between Single Point of Accountability and Software Sprawl • HPs Kevin Bury on How Cloud and SaaS Will Help Pave the Way to Increased Efficiency in IT Budgets for 2011 • HPs Instant-On Enterprise Initiative Takes Aim at Shifting Needs of Business and Government

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