The next BriefingsDirect Voice of the Innovator discussion explores the latest insights into hybrid cloud success strategies.
As with the often ad hoc adoption of public cloud services by various groups across an enterprise, getting the right mix and operational coordination required of true hybrid cloud cannot be successful if it’s not well managed. While many businesses recognize there’s a hybrid cloud future, far fewer are adopting a hybrid cloud approach with due diligence, governance, and cost optimization.
Stay with us as we examine
the innovation maturing around hybrid cloud models and operations and learn how proper
common management of hybrid cloud can make or break the
realization of its promised returns.
Listen
to the podcast. Find it on iTunes. Read a full transcript or download a copy.
Here to explain how to safeguard successful hybrid cloud deployments and operations is Erik Vogel, Global
Vice President of Hybrid IT and Cloud at Hewlett Packard Enterprise (HPE). The interview is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.
Here are some excerpts:
Gardner: The cloud model was very attractive, people jumped into it, but like with many things, there are unintended consequences. What’s driving cloud and hybrid cloud adoption, and what’s holding people back?
The pendulum is definitely shifting back toward consuming lots of different solutions with lots of different capabilities and services. And we are seeing it moving much faster than it did before because of that loss of a gatekeeper.
When you talk about where we get inspiration, it’s really about looking at those adjacencies. It’s understanding what’s happening in the broader as-a-service market and taking the best of what’s happening and saying, “How can we employ those types of techniques, those tricks, those lessons learned into what we are doing?” And that’s really driving a lot of our development and inspiration in terms of how we are innovating as a company within HPE.
Here are some excerpts:
Gardner: The cloud model was very attractive, people jumped into it, but like with many things, there are unintended consequences. What’s driving cloud and hybrid cloud adoption, and what’s holding people back?
Vogel: All
enterprises are hybrid at this point, and whether they have accepted that
realization depends on the client. But pretty much all of them are hybrid. They
are all using a combination of on-premises, public cloud, and software-as-a-service
(SaaS) solutions. They have brought all of that into the enterprise. There are
very few enterprises we talk to that don’t have some hybrid mix already in
place.
Hybrid is here, but needs rationalization
 |
| Vogel |
But when we ask them how they got
there; most have done it in an ad hoc fashion. Most have had developers who went
out to one or multiple hyperscale cloud providers, or the business units went out
and started to consume SaaS solutions, or IT organizations built their own
on-premises solutions whether that’s an open private cloud or a Microsoft
Azure Stack environment.
They have done all of this in
pockets within the organization. Now, they are seeing the challenge of how to start
managing and operating this in a consistent, common fashion. There are a lot of
different solutions and technologies, yet everyone has their own operating model,
own consoles, and own rules to work within.
And that is where we see our
clients struggling. They don’t have a holistic strategy or approach to hybrid,
but rather they’ve done it in this bespoke or ad hoc fashion. Now they realize
they are going to have to take a step back to think this through and decide what
is the right approach to enforce common governance and gain common management
and operating principles, so that they’re not running 5, 6, 8 or even 10 different
operating models. Rather, they need to ask, “How do we get back to where we
started?” And that is a common operating model across the entire IT estate.
Gardner: IT traditionally
over the years has had waves
of adoption that led to heterogeneity that created complexity. Then that had
to be managed. When we deal with multicloud and hybrid cloud, how is that different
from the UNIX wars, or distributed computing,
and N-tier
computing? Why is cloud a more difficult heterogeneity problem to solve
than the previous ones?
Vogel: It’s
more challenging. It’s funny, we typically referred to what we used to see in
the data center as the Noah’s Ark data center. You would typically walk
into a data center and you’d see two of everything, two of every vendor, just
about everything within the data center.
And it was about 15 years ago
when we started to consolidate all of that into common infrastructures, common
platforms to reduce the operational complexity. It was an effort to reduce total
cost of ownership (TCO) within the data center and to reduce that Noah’s Ark data
center into common, standardized elements.
Now that pendulum is starting
to swing back. It’s becoming more of a challenge because it’s now so easy to consume
non-standard and heterogeneous solutions. Before there was still that
gatekeeper to everything within the data center. Somebody had to make a
decision that a certain piece of infrastructure or component would be deployed
within the data center.
Now, we have developers go to a
cloud and consume with just a swipe of a credit card, any of the three or four hybrid
hyperscale solutions, and literally thousands of SaaS solutions. Just look at
the Salesforce.com platform and all of
the different options that surround that.
All of a sudden, we lost the
gatekeeper. Now we are seeing sprawl toward more heterogeneous solutions occurring
even much faster than what we saw 10 or 15 years ago with the Noah’s Ark data center.
The pendulum is definitely shifting back toward consuming lots of different solutions with lots of different capabilities and services. And we are seeing it moving much faster than it did before because of that loss of a gatekeeper.
Gardner: Another
difference is that we’re talking mostly about services. By consuming things as
services, we’re acquiring them not as a capital expenditure that has a three-
to five-year cycle of renewal, this is on-demand consumption, as you use it.
That makes it more complicated,
but it also makes it a problem that can be solved more easily. Is there something
about the nature of an all-services’ hybrid and multicloud environment on an
operations budget that makes it more solvable?
Services become the norm
Vogel: Yes,
absolutely. The economics definitely play into this. I have this vision that
within the next five years, we will no longer call things “as a service”
because it will be the norm, the standard. We will only refer to things that
are not as a service, because as an industry we are seeing a push
toward everything being consumed as a service.
From
an operating standpoint, the idea of consuming and paying for only what
we use is very, very attractive. ... [Before] we would end up
overbuying, pay the full load, and still pay for full maintenance and
support, too.
From an operating standpoint,
the idea of consuming and paying for only what we use is very, very attractive.
Again, if you look back 10 or 15 years, typically within a data center, we’d be
buying for a three- or four-year lifespan. That forced us to make predictions
as to what type of demand we would be placing on capital expenditures.
And what would happen? We
would always overestimate. If you looked at utilization of CPU, of disk, of
memory, they were always 20 to 25 percent; very low utilization, especially
pre-virtualization. We would end up overbuying, pay the full load, and still
pay for full maintenance and support, too.
There was very little ability to
dial that up or down. The economic capability of being able to consume
everything as a service is definitely changing the game, even for things
you wouldn’t think of as a service, such as buying a server. Our enterprise
customers are really taking notice of that because it gives them the ability to
flex the expenditures as their business cycles go up and down.
Rarely do we see enterprises
with constant demand for compute capacity. So, it’s very nice for them to be
able to flex that up and down, adjust the normal seasonal effects within a
business, and be able to flex that operating expense as their business
fluctuates.
That is a key driver of moving
everything to an as-a-service model, giving flexibility that just a few years
ago we did not have.
Gardner: The
good news is that these are services -- and we can manage them as services. The
bad news is these are services coming from different providers with different
economic and consumption models. There are different application programming
interfaces (APIs), stock keeping unit (SKU) definitions, and management
definitions that are unique to their own cloud organization. So how do we take
advantage of the fact that it’s all services but conquer the fact that it’s
from different organizations speaking, in effect, different languages?
Vogel: You’re
getting to the heart of the challenge in terms of managing a hybrid environment.
If you think about how applications are becoming more and more composed
now, they are built with various different pieces, different services, that may
or may not be on-premises solutions.
One of our clients, for
example, has built an application for their sales teams that provides real-time
client data and client analytics before a seller goes in and talks to a customer.
And when you look at the complexity of that application, they are using Salesforce.com,
they have an on-premises customer database, and they get point of sales
solutions from another SaaS provider.
They also have analytics
engines they get from one of the cloud hyperscalers. And all of this comes
together to drive a mobile app that presents all of this information seamlessly
to their end-user seller in real-time. They become better armed and have more
information when they go meet with their end customer.
When we look at how these new
applications or services – I don’t even call them applications because they are
more services built from multiple applications -- they are crossing multiple
service providers, multiple SaaS providers, and multiple hyperscalers.
And as you look at how we
interface and connect with those, how we pass data, exchange information across
these different service providers, you are absolutely right, the taxonomies are
different, the APIs are different, the interfaces and operations challenges are
different.
When that seller goes to make
that call, and they bring up their iPad app and all of a sudden, there is no
data or it hasn’t been refreshed in three months, who do you call? How do you
start to troubleshoot that? How do you start to determine if it’s a Salesforce
problem, a database problem, a third-party service provider problem? Maybe it’s
my encrypted connection I had to install between Salesforce and my on-premises
solution. Maybe it’s the mobile app. Maybe it’s a setting on the iPad itself.
Adding up all of that
complexity is what’s building the problem. We don’t have consistent APIs,
consistent taxonomies, or even the way we look at billing and the underlying
components for billing. And when we break that out, it varies greatly between
service providers.
This is where we understand the
complexity of hybrid IT. We have all of these different service providers all working
and operating independently. Yet we’re trying to bring them together to provide
end-customer services. Composing those different services creates one of the
biggest challenges we have today within hybrid cloud environment.
Gardner: Even
if we solve the challenge on the functional level -- of getting the apps and
services to behave as we want -- it seems as much or more a nightmare for the chief
financial officer (CFO) who has to determine whether you’re getting a good deal
or buying redundancy across different cloud providers. A lot of times in
procurement you cut a deal on volume. But how you do that if you don’t know
what you’re buying from whom?
How do we pay for these
aggregate cloud services in some coordinated framework with the least amount of
waste?
How to pay the bills
Vogel: That
is probably one of the most difficult jobs within IT today, the finance side of
it. There are a lot of challenges of putting that bill together. What does that
bill really look like? And not just at an individual component level. I may be
able to see what I’m paying from Amazon Web Services (AWS)
or what Azure Stack is costing me. But how do we aggregate that? What is the
cost to provide a service? And this has been a challenge for IT forever. It’s
always been difficult to slice it by service.
We knew what compute costs, what
network costs, and what the storage costs were. But it was always difficult to
make that vertical slice across the budget. And now we have made that problem
worse because we have all these different bills coming in from all of these
different service providers.
The procurement challenge is
even more acute because now we have these different service providers. How do
we know what we are really paying? Developers swipe credit cards, where they
don’t even see the bill or a
true accounting of what’s being spent across the public clouds. It comes through
as a credit card expense and so not really directed to IT.
We need to get our hands
around these different expenses, where we are spending money, and think
differently about our procurement models for these services.
In the past, we talked about this
as a brokerage but it’s a lot more than that. It’s more about strategic
sourcing procurement models for cloud and hybrid cloud-related services.
Our
IT procurement models have to change to address the problem of how we
really know what we are paying for. Are we getting the strategic value
out of the expenses within hybrid that we had expected?
It’s less about brokerage and
looking for that lowest-cost provider and trying to reduce the spend. It’s more
about, are we getting the service-level agreements (SLAs) we are paying for?
Are we getting the services we are paying for? Are we getting the uptime we are
paying for?
Our IT procurement models have
to change to address the problem of how we really know what we are paying for.
Are we getting the strategic value out of the expenses within hybrid that we
had expected?
Gardner: In business
over the years, when you have a challenge, you can try to solve it yourself and
employ intelligence technologies to tackle complexity. Another way is to find a
third-party that knows the business better than you do, especially for small-
to medium-sized businesses (SMBs).
Are we starting to see an
ecosystem develop where the consumption model for cloud services is managed
more centrally, and then those services are repurposed and resold to the actual
consumer business?
Third-parties help hybrid manage costs
Vogel: Yes, I
am definitely starting to see that. There’s a lot is being developed to help
customers in terms of consuming and buying these services and being smarter
about it. I always joke that the
cheapest thing you can buy is somebody else’s experience, and that is
absolutely the case when it comes to hybrid cloud services providers.
The reality is no enterprise
can have expertise in all three of the hyperscalers, in all of the hundreds of
SaaS providers, for all of the on-premises solutions that are out there. It
just doesn’t exist. You just can’t do it all.
It really becomes important to
look for people who can aggregate this capability and bring the collective
experience back to you. You have to reduce overspend and make smarter
purchasing decisions. You can prevent things like lock-in to and reduce the
risk of buying via these third-party services. There is tremendous value being
created by these firms that are jumping into that model and helping clients
address these challenges.
The third-parties have people
who have actually gone out and consumed and purchased within the hyperscalers,
who have run workloads within those environments, and who can help predict what
the true cost should be -- and, more importantly, maintain that optimization
going forward.
It’s not just about going in and
buying anymore. There is ongoing optimization that has to incur, ongoing cost
optimization where we’re continuously evaluating about the right decisions. And
we are finding that the calculus changes over time.
So, while it might have made a
lot of sense to put a workload, for example, on-premises today, based on the
demand for that application and on pricing changes, it may make more sense to
move that same workload off-premises tomorrow. And then in the future it may also
make sense to bring it back on-premises for a variety of reasons.
You have to constantly be
evaluating that. That’s where a lot of the firms playing in the space can add a
lot of value now, in helping with ongoing optimization, by making sure that we
are always making the smart decision. It’s a very dynamic ecosystem, and the
calculus, the metrics are constantly changing. We have the ability to
constantly reevaluate. That’s the beauty of cloud, it’s the ability to flex
between these different providers.
Gardner: Erik,
for those organizations interested in getting a better handle on this, are
there any practical approaches available now?
The right mix of data and advice
Vogel: We
have a tool, called HPE
Right Mix Advisor, which is our ability to go in and assess very large
application portfolios. The nice thing is, it scales up and down very nicely.
It is delivered in a service model so we are able to go in and assess a set of
applications against the variables I mentioned, in the weighing of the factors,
and come up with a concrete list of recommendations as to what should our
clients do right now.
In fact, we like to talk not
about the thousand things they could do -- but what are the 10 or 20 things
they should start on tomorrow morning. The ones that are most impactful for
their business.
The Right
Mix Advisor tool helps identify those things that matter the most for the
business right now, and provides a tactical plan to say, “This is what we
should start on.”
And it’s not just the tool, we
also bring our expertise, whether that’s from our Cloud Technology Partners (CTP) acquisition,
RedPixie,
or our existing HPE business where we have done this for years and years. So,
it’s not just the tool, but also experts, looking at that data, helping to
refine that data, and coming up with a smart list that makes sense for our
clients to get started on right now.
And of course, once they have
accomplished those things, we can come back and look at it again and say, “Here
is your next list, the next 10 or 20 things.” And that’s really how Right Mix
Advisor was designed to work.
Gardner: It
seems to me there would be a huge advantage if you were able to get enough data
about what’s going on at the market level, that is to aggregate how the cloud
providers are selling, charging, and the consumption patterns.
If you were in a position to gather
all of the data about enterprise consumption among and between the cloud
providers, you would have a much better idea of how to procure properly, manage
properly, and optimize. Is such a data well developing? Is there anyone in the
right position to be able to gather the data and start applying machine learning (ML)
technologies to develop predictions about the best course of action for a
hybrid cloud or hybrid IT environment?
Vogel: Yes.
In fact, we have started down that path. HPE has started to tackle this by
developing an expert system, a set of logic rules that helps make those
decisions. We did it by combining a couple of fairly large datasets that we
have developed over the last 15 years, primarily with HPE’s history of doing a
lot of application migration work. We really understand on the on-premises side
where applications should reside based on how they are architected and what the
requirements are, and what type of performance needs to be derived from that
application.
HPE
has developed an expert system, a set of logic rules, that helps make
those hybrid decisions. We did it by combining a couple of fairly large
datasets that we have developed over the last 15 years. We understand
the on-premises side ... We have now combined that with our other
datasets from our acquisitions of CTP and RedPixie.
We have combined that with
other datasets from some of our recent cloud acquisitions, CTP and RedPixie,
for example. That has brought us a huge wealth of information based on a
tremendous number of application migrations to the public clouds. And we are
able to combine those datasets and develop this expert system that allows us to
make those decisions pretty quickly as to where applications should reside
based on a number of factors. Right now, we look at about 60 different
variables.
But what’s really important
when we do that is to understand from a client’s perspective what matters. This
is why I go back to that strategic sourcing discussion. It’s easy to go in and
assume that every client wants to reduce cost. And while every client wants to
do that -- no one would ever say no to that -- usually that’s not the most
important thing. Clients are worried about performance. They also want to drive
agility, and faster time to market. To them that is more important than the
amount they will save from a cost-reduction perspective.
The first thing we do when we
run our expert system, is we go in and weight the variables based on what’s
important to that specific client, aligned to their strategy. This is where it
gets challenging for any enterprise trying to make smart decisions. In order to
make strategic sourcing decisions, you have to understand strategically what’s
important to your business. You have to make intelligent decisions about where
workloads should go across the hybrid IT options that you have. So we run an
expert system to help make those decisions.
Now, as we collect more data,
this will move toward more artificial
intelligence (AI). I am sure everybody is aware AI requires a lot of data, since
we are still in the very early stages of true hybrid cloud and hybrid IT. We
don’t have a massive enough dataset yet to make these decisions in a truly
automated or learning-type model.
We started with an expert
system to help us do that, to move down that path. But very quickly we are
learning, and we are building those learnings into our models that we use to
make decisions.
So, yes, there is a lot of
value in people who have been there and done that. Being able to bring
that data together in a unified fashion is exactly what we have done to help
our clients. These decisions can take a year to figure out. You have to be able
to make these decisions quickly because it’s a very dynamic model. A lot of
things are constantly changing. You have to keep loading the models with the
latest and greatest data so you are always making the best, smartest decision,
and always optimizing the environment.
Innovation, across the enterprise
Gardner: Not
that long ago, innovation in a data center was about speeds and feeds. You
would innovate on technology and pass along those fruits to your consumers. But
now we have innovated on economics, management, and understanding indirect and
direct procurement models. We have had to innovate around intelligence technologies
and AI. We have had to innovate around making the right choices -- not just on
cost but on operations benefits like speed and agility.
How has innovation changed
such that it used to be a technology innovation but now cuts across so many different
dynamic principles of business?
Vogel: It’s
a really interesting observation. That’s exactly what’s happening. You are
right, even as recently as five years ago we talked about speeds and feeds,
trying to squeeze a little more out of every processor, trying to enhance the
speed of the memory or the storage devices.
But now, as we have pivoted
toward a services mentality, nobody asks when you buy from a hyperscaler -- Google Cloud,
for example -- what central processing unit (CPU) chips they are running or
what the chip speeds are. That’s not really relevant in an as-a-service world.
So, the innovation then is around the service sets, the economic models, the
pricing models, that’s really where innovation is being driven.
At HPE, we have moved in that
direction as well. We provide our HPE GreenLake
model and offer a flex-capacity approach
where clients can buy capacity on-demand. And it becomes about buying compute
capacity. How we provide that, what speeds and feeds we are providing becomes
less and less important. It’s the innovation around the economic model that our
clients are looking for.
We are only going to continue
to see that type of innovation going forward, where it’s less about the
underlying components. In reality, if you are buying the service, you don’t
care what sort of chips and speeds and feeds are being provided on the back end
as long as you are getting the service you have asked for, with the SLA, the
uptime, the reliability, and the capabilities you need. All of what sits behind
that becomes less and less important.
Think about how you buy
electricity. You just expect 110 volts at 60 hertz coming out of the wall, and
you expect it to be on all the time. You expect it to be consistent, reliable,
and safely delivered to you. How it gets generated, where it gets generated -- whether
it’s a wind turbine, a coal-burning plant, a nuclear plant -- that’s not
important to you. If it’s produced in one state and transferred to another over
the grid, or if it’s produced in your local state, that all becomes less
important. What really matters is that you are getting consistent and reliable
services you can count on.
And we are seeing the same
thing within IT as we move to that service model. The speeds and feeds, the
infrastructure, become less important. All of the innovation is now being
driven around the as-a-service model and what it takes to provide that service.
We innovate at the service level, whether that’s for flex capacity or
management services, in a true as-a-service capability.
Gardner: What
do your consumer organizations need to think about to be innovative on their
side? How can they be in a better position to consume these services such as hybrid
IT management-as-a-service, hybrid cloud decision making, and the right mixture
of decisions-as-a-service?
What comes next when it comes
to how the enterprise IT organization needs to shift?
Business cycles speed IT up
Vogel: At a
business level, within almost every market or every industry, we are moving
from what used to be slow-cycle business to standard-cycles. In a lot of cases it’s
moving from standard-cycle business to a fast-cycle business. Even businesses
that were traditionally slow-cycle or standard-cycle are accelerating. This underlying
technology is creating that.
So every
company is a technology company. That is becoming more and more true every
day. As a result, it’s driving business cycles faster and faster. So, IT, in
order to support those business cycles, has to move at that same speed.
And we see enterprises moving
away from a traditional IT model when those enterprises’ IT cannot move at the
speed the business is demanding. We will still see IT, for example, take six
months to provide a platform when the business says, “I need it in 20 minutes.”
We will see a split between
traditional IT and a digital innovation group within the enterprise. This group
will be owned by the business unit as opposed to core IT.
So, businesses are responding
to IT not being able to move fast enough and not being able to provide the
responsiveness and the level of service by going out and looking outside and
consuming services externally.
At
HPE, as we look at some of the services we have announced, they are to
help our clients move faster and to provide operational support and
management for hybrid to remove that burden from IT so they can focus on
the things that accelerate their businesses.
As we move forward, how can
clients start to move in this direction? At HPE, as we look at some of the
services we have announced and will be rolling out in the next six-12 months, they
are to help our clients move faster. They are designed to provide operational
support and management for hybrid to take that burden away from IT, especially
where IT may not have the skill sets or capability and be able to provide that
seamless operating experience to our IT customers. Those customers need to focus
on the things that accelerate their business -- that is what the business units
are demanding.
To
stay relevant, IT is going to have to do that, too. They are going to have
to look for help and support so that they can move at the same speed and pace
that businesses are demanding today. And I don’t see that slowing down. I don’t
think anybody sees that slowing down; if anything, we see the pace continuing
to accelerate.
When I talked about fast-cycle
-- where services or solutions we put into the market may have had a market
shelf life of two to three years -- we are seeing it compressed to six months.
It’s amazing how fast competition comes in even if we are doing innovative type
of solutions. So, IT has to accelerate at that speed as well.
The HPE
GreenLake hybrid cloud offering, for example, gives our clients the ability
to operate at that speed by providing managed services capabilities across the
hybrid estate. It provides a consistent platform, and then allows them to
innovate on top of it. It takes away the management operation from their focus
and lets them focus on what matters to the business today, which is innovation.
Gardner: For
you personally, Erik, where do you get inspiration for innovation? How do you
think out of the box when we can now see that that’s a necessary requirement?
Inspired by others
Vogel: One
of the best parts about my job is the time I get to spend with our customers
and to really understand what their challenges are and what they are doing. One
of the things we look at are adjacent businesses.
We try to learn what is
working well in retail, for example. What innovation is there and what lessons
learned can we apply elsewhere? A lot of times the industry shifts so quickly
that we don’t have all of the answers. We can’t take a product-out approach any
longer. We really have to start looking at the customers’ back end. And I think
having kind of that broad view and looking outside is really helping us. It’s
where we are getting a lot of our inspiration.
For example, we are really
focused on the overall experience that our clients have with HPE, and trying to
drive a very consistent, standardized, easy-to-choose type of experience with
us as a company. And it’s interesting as an engineering company, with a lot of
good development and engineering capabilities, that we tend to look at it from
a product-out view. We build a portal that they can work within, we create
better products, and we get that out in front of the customer.
But by looking outside, we are
saying, “Wait a minute, what is it, for example, about Uber that everybody likes?” It’s not
necessarily that their app is good, but it’s really about the clean car, it’s
about not having to pay when you get out of the car, not have to fumble for a
credit card. It’s about seeing a map and knowing where the driver is. It’s
about a predictable cost, where you know what it’s going to cost. And that
experience, that overall experience is what makes Uber, Uber. It’s not just
creating an app and saying, “Well, the app is the experience.”
We are learning a lot from
adjacent businesses, adjacent industries, and incorporating that into what we
are doing. It’s just part of that as-a-service mentality where we have to think
about the experience our customers are asking for and how do we start building
solutions that meet that experience requirement -- not just the technical
requirement. We are very good at that, but how do we start to meet that
experience requirement?
And this has been a real
eye-opener for me personally. It has been a really fun part of the job, to look
at the experience we are trying to create. How do we think differently? Rather
than producing products and putting them out into the market, how do we think
about creating that experience first and then designing and creating the
solutions that sit underneath it?
When you talk about where we get inspiration, it’s really about looking at those adjacencies. It’s understanding what’s happening in the broader as-a-service market and taking the best of what’s happening and saying, “How can we employ those types of techniques, those tricks, those lessons learned into what we are doing?” And that’s really driving a lot of our development and inspiration in terms of how we are innovating as a company within HPE.
Listen
to the podcast. Find it on iTunes. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.
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