The Open Group's Cloud Work Group advances understanding of cloud-use benefits for enterprises

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Sponsor: The Open Group. Follow the conference on Twitter: #OGSEA.

BriefingsDirect now presents a sponsored podcast discussion on the ongoing activities of The Open Group’s Cloud Computing Work Group. We'll meet and talk to the new co-chairmen of the Cloud Work Group, learn about their roles and expectations, and get a first-hand account of the group’s 2010 plans.

Join us as we examine the evolution of cloud, how businesses are grappling with that, and how they can learn to best exploit cloud-computing benefits, while fully understanding and controlling the risks. These topics and ore will also be under discussion at The Open Group's Architecture Practitioners and Security Practitioners conferences this week in Seattle.

In many ways, cloud computing marks an inflection point for many different elements of IT, and forms a convergence of other infrastructure categories that weren’t necessarily working in concert in the past. That makes cloud interesting, relevant, and potentially dramatic in its impact. What has been less clear is how businesses stand to benefit. What are the likely paybacks and how enterprises can prepare for the best outcomes?

We're here with an executive from The Open Group, as well as the new co-chairmen of the Cloud Work Group, to look at the business implications of cloud computing and how to get a better handle on the whole subject.

Please join David Lounsbury, Vice President for Collaboration Services at The Open Group; Karl Kay, IT Architecture Executive with Bank of America, and co-chairman of the Cloud Work Group, and Robert Orshaw, IBM Cloud Computing Executive, and co-chair of the Cloud Work Group. The discussion is moderated by BriefingsDirect's Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Lounsbury: One of the things that everybody has seen in cloud is that there has been a lot of take up by small to medium businesses who benefit from the low capital expenditure and scalability of cloud computing, and also a lot by individuals who use software as a service (SaaS). We've all seen Google Docs and things like that. That’s fueled a lot of the discussion of cloud computing up to now, and it's a very healthy part of what's going on there.

But, as we get into larger enterprises, there's a whole different set of questions that have to be asked about return on investment (ROI) and how you merge things with the existing IT infrastructure. Is it going to meet the security needs and privacy needs and regulatory needs of my corporation? So, it's an expanded set of questions that might not be asked by a smaller set of companies. That's an area where The Open Group is trying to focus some of its activities.

There is a whole different scale that has to occur when you go into an enterprise, where you have got to think of all the users in the enterprise. What does it take to fund it? What does it take to secure it, protect the corporate assets and things like that, and integrate it, because you want services to be widely available?

Orshaw: A few years ago, there was a tremendous amount of hype, and the dynamics, flexibility, and pricing structures weren’t there. It's an exciting time now that you're seeing that from a flexibility, dynamic, and pricing standpoint, we're there. That's both in the private cloud and the public cloud sector -- and we'll probably get into more detail about the offerings around that.

A tremendous amount has happened over the past few years to improve the market adoption and overall usability of both public and private clouds.

In a former life, I was CIO of a large industrial manufacturing company that had 49 separate business units. Cloud today can be an issue in the beginning for CIOs. For example, at that large manufacturing company, in order for a business unit to provision new development test environments or production environments for implementing new applications and new systems, they would have to go through an approval process, which could take a significant amount of time.

Once approved, we would have centralized data centers and outsourced data centers. We would have to go through and see if there was existing capacity. If there wasn’t, we would then go ahead and procure that and install it. So, we're talking weeks, and perhaps even a few months, to provision and get a business unit up and running for their various projects.

These autonomous business units that weren’t very happy with that internal service to begin with, are now finding it very easy to go out with a credit card or a local purchase order to Amazon, IBM, and others and get these environments provisioned to them in minutes.

This is creating a headache for a lot of CIOs, where there is a proliferation of virtual cloud environments and platforms being used by their business units, and they don’t even know about it. They don’t have control over it. They don’t even know how much they're spending. So, the cloud group can have a significant effect on this, helping improve that environment.

Kay: Certainly the leading items like cost savings and time to market are two of the big motivators that we look to for cloud. In a lot of cases, our businesses are driving IT to adopt cloud as opposed to the opposite. It's really a matter of how we blend in the cloud environment with all of our security and regulatory requirement and how we make it fit within the enterprise suite of platform offerings.

The work groups are really focused on trying to deliver some short-term value. In the business use cases, they're really trying to define a clear set of business cases and financial models to make it easier to understand how to evaluate cloud with certain scenarios.

We're seeing a skill-set change on the technical side, in that, if you look at the adoption of cloud, you shift from being able to directly control your environments and make changes from a technical perspective, to working with a contractual service level agreement (SLA) type of model. So it's definitely a change for a lot of the engineers and architects working on the technical side of the cloud.

The Cloud Architecture Group is looking to deliver a reference architecture in 2010. One of the things we've discovered is that there are a lot of similarities between the reference architecture that we believe we need for cloud and what already has been built in the SOA reference architectures. I think we'll see a lot of alignment there. There are probably some other elements that will be added, but there's a lot of synergy between the work that’s already going on in SOA and SOI and the work that we are doing in cloud.

Number of activities

Lounsbury: There are a number of activities inside The Open Group. Enterprise architecture is a very large one, but also real-time and embedded systems for control systems and things of that nature. We've got a very active security program, and also, of course, we've got some more emerging technologically focused areas like service oriented architecture (SOA) and cloud computing.

We have a global organization with a large number of industrial members. As you've seen, from our cloud group, we always try to make sure that this is a perspective that’s balanced between the supply side and the buy side. We're not just saying what a vendor thinks is the greatest new technology, but we also bring in the viewpoint of the consumers of the technology, like a CIO, or as Karl represents on the Cloud Group, an architect on the design side. We make sure that we're balancing the interests.

We did a number of presentations reaching back to our Seattle conference about a year ago on cloud computing. We've reached out to other organizations to work with them to see if there is interest in working together on cloud activities. We've staged a series of presentations.

We've gotten about 500 participants virtually, and that represents about 85-90 companies participating.

The members decided in mid-2009 to form a work group around cloud computing. The work group is a way that we can bring together all aspects of what's going on in The Open Group, because cloud computing touches a lot of areas: security, architecture, technology, and all those things. Also, as part of that we've reached out to other communities to open a nonmember aspect of the Cloud Work Group as well.

Orshaw: At the end of this, we'll have a complete model for both public and private cloud. It's an exciting endeavor by the team, and I'm excited to see the outcome. We'll have short-term milestones, where we'll produce, document, and publish results every two months or so. We hope, towards the end of the year, to have all of these wrapped up into these global models that I described.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Sponsor: The Open Group. Follow the conference on Twitter: #OGSEA.

Security, simplicity and control ease make desktop virtualization ready for enterprise uptake

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

The growing interest and value in PC desktop virtualization strategies and approaches has its roots in both technology and economics. Recently, a lot has happened technically that has matured the performance and economic benefits of desktop virtualization and the use of thin-client devices.

At the same time as this functional maturity improved, we are approaching an inflection point in a market that is accepting of new clients and new client approaches like desktop virtualization.

Indeed, the latest desktop virtualization model empowers enterprises with lower total costs, greater management of software, tighter security, and the ability to exploit low-cost, low-energy thin client devices. It's an offer that more enterprises are going to find hard to refuse.

In desktop virtualization, the workhorse is the server, and the client assists. This allows for easier management, support, upgrades, provisioning, and control of data and applications. Users can also take their unique desktop experience to any supported device, connect, and pick up where they left off. And, there are now new offline benefits too.

Here to help us learn more about the role and outlook for desktop virtualization, we're joined by Jeff Groudan, vice president of Thin Computing Solutions at HP. The BriefingsDirect interview is conducted by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Groudan: There certainly are some things in the market that are sure driving a potential inflection point [for client virtualization]. The market-driven things coming out of the recession are opening a lot of customers up to re-looking at some deployments that they may have delayed or specific IT projects that they have put on hold.

Just to put it into context, there was recently some data from Gartner. They feel like there are well over 600 million desktop PCs in offices today. Their belief is that over the next five years, upwards of 15 percent of those could be replaced by thin clients. So that's quite a number of redeployments and quite an inflection point for client virtualization.

In addition, there has been an ongoing desire to increase security and a lot of new compliance requirements that the customers have to address. In addition, in general, as they are looking for ways to save on costs, they are consistently and constantly looking for different ways to more efficiently manage their distributed PC environments. All of these things are driving the high level of interest in virtualizing PCs.

One of the key benefits of client virtualization is the ability to keep all the data behind the firewall in the data center and deploy thin clients to the edge of the network. Those thin clients, by design, don't have any local data.

You're also seeing better performance on the hardware side and the infrastructure side. It's really also helping bring the cost per seat of the client virtualization deployment down into ranges that are lot more interesting for large deployments. Last, and near and dear to my heart, you're seeing more powerful, yet cost-effective, thin clients that you can put on the desk and that really ensure those end-users get the experience that you want them to get.

Not an IT panacea

Our general coaching to customers is that client virtualization is not necessary for everyone, for every user group, or every application set. But, certainly, for environments where you need to get them more manageable, you need more flexibility.

When you think about the cost savings of client virtualization, usually the costs come from some of the long-term acquisition costs.

You need higher degrees of automation in order to manage a high number of distributed PCs with the benefits from centralized control, reduced labor costs, and the ability to manage remote or hard to get at locations -- things like branches, where you don't have a local IT. Those are great targets for early client virtualization deployments.

All of a sudden, the data-center guys need to be thinking about the end-user. The end-user guys need to be thinking about the data center. Roles and responsibilities need to be hammered out. How do you charge the capital expense versus operational expense? What gets budgeted where? My advice is: as you're thinking about the technical architecture and all of the savings end-to-end, you need to also be thinking about the internal business processes.

We look at this market in two ways, in the context of client virtualization and in the broader context of thin computing. Just zeroing in on client virtualization, we call it Client Virtualization HP. It's desktop virtualization. It's the same animal.

We look it as a specific set of technologies and architectures that dis-aggregate the elements of a PC, which allows customers to more easily manage and secure their environment. What we're really doing is taking advantage of a lot of the new software capabilities that matured on the server side, from a server virtualization and utilization perspective. We're now able to deploy some of those technologies, hypervisors, and protocols on the client side.

The first is that you don't want to have customers having to figure out how to architect the stuff on their own. If you think about PCs 20-25 years ago, customers didn't know how to architect a distributed PC environment. In 25 years, everybody has gotten good at it. We're still at the early stages on client virtualization.

Our specific objective is figuring out how to simplify virtualization, so that customers get past the technology, and really start to deliver the full benefit of virtualization, without all the complexity.

So our focus is to deliver more complete integrated solutions, end to end from the desktop to the data center, lay it all out, and reference designs so customers can very comfortably understand how to go build out a deployment. They certainly may want to customize it. We want to get them 80-90 percent there just by telling them what we have learned.

Wide applicability across industries

There are opportunities for just about every industry. We've seen certain verticals on the cutting edge of this. Financial services, healthcare, education, and public sector are a few examples of industries that have really embraced this quickly. They have two or three themes in common. One is an acute security need. If you think about healthcare, financial services, and government, they all have very acute needs to secure their environments. That led them to client virtualization relatively quickly.

We certainly have some very exciting launches coming up in the next couple of months where we're really focused on total cost per seat. How do we let people deploy these kinds of solutions and continue to get further economic benefits, delivering better tighter integration across the desktop to the data center?

The ease of deployment of these solutions can get easier-and-easier, and then ease of use and manageability tools. They allow the IT guys to deploy large deployments of client virtualization with as little touch and as little complexity as we can possibly make it. We're trying to automate these kinds of solutions. We're very excited about some of the things we'll be delivering to our customers in the next couple of months.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

Technology, process and people must combine smoothly to achieve strategic virtualization benefits

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

For more information on virtualization and how it provides a foundation for private clouds, plan to attend the HP Cloud Virtual Conference in March. Register now for this event:
Asia, Pacific, Japan - March 2
Europe Middle East and Africa - March 3
Americas - March 4

The latest BriefingsDirect podcast discussion delves into proper planning and implementation of data-center virtualization to gain strategic-level advantage in enterprises.

Because companies generally begin their use of server virtualization at a tactical level, there is often a complex hurdle in expanding the use of virtualization. Analysts predict that virtualization will support upwards of half of server workloads in just a few years. Yet, we are already seeing gaps between an enterprise’s expectations and their ability to aggressively adopt virtualization without stumbling in some way.

These gaps can involve issues around people, process and technology and often, all three in some combination. Process refinement, proper methodological involvement, and swift problem management often provide proven risk reduction, and provide surefire ways of avoiding pitfalls as virtualization use moves to higher scale.

The goal becomes one of a lifecycle orchestration and governed management approach to virtualization efforts so that the business outcomes, as well as the desired IT efficiencies, are accomplished.

Areas that typically need to be part of any strategic virtualization drive include sufficient education, skilled acquisition, and training. Outsourcing, managed mixed sourcing, and consulting around implementation and operational management are also essential. Then, there are the usual needs around hardware, platforms and system as well as software, testing and integration.

So, we’re here with a panel of Hewlett Packard (HP) executives to examine in-depth the challenges of large scale successful virtualization adoption. We’ll look at how a supplier like HP can help fill the gaps that can hinder virtualization payoffs.

Please join me in welcoming our panel: Tom Clement, worldwide portfolio manager in HP Education Services; Bob Meyer, virtualization solutions lead with HP Enterprise Business; Dionne Morgan, worldwide marketing manager at HP Technology Services; Ortega Pittman, worldwide product marketing, HP Enterprise Services, and Ryan Reed, worldwide marketing manager at HP Enterprise Business. The discussion is moderated by BriefingsDirect's Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excepts:

Meyer: The downturn has really forced anybody who is on the front to go headlong into virtualization. Today, we are technically ahead of where we were a year or two ago with the virtualization experience.

Everybody has significant amounts of virtualization in the production environment. They’ve been able to get a handle on what it can do to see what the real results and tangible benefits are. They can see, especially on the capital expenditure side, what it could do for the budgets and what benefits it can deliver.

Now, looking forward, people realize the benefits, and they are not looking in it just as an endpoint. They're looking down the road and saying, "Okay, this technology is foundational for cloud computing and some other things." Rather than slowing down, we’ll see those workloads increase.

They went from just single percentage points a year and a half ago to 12-15 percent now. Within two years, people are saying it should be about 50 percent. The technology has matured. People have a lot of experience with it. They like what they see in results, and, rather than slow down, it's bringing efficiency to things like the new services model.

Morgan: Many people have probably heard the term "virtual machine sprawl" or "VM sprawl," and that's one of the risks. Part of the reason VM sprawl occurs is because there are no clear defined processes in place to keep the virtualized environment under control.

Virtualization makes it so easy to deploy a new virtual machine or a new server, that if you don’t have the proper processes in place, you could have more and more of the these virtual machines being deployed and you lose control. You lose track of them.

That's why it's very important for our clients to think about ... how they're going to continue to manage virtualization on an on-going basis, so they keep it under control.

Pittman: Many, times small, medium, and large organizations have the virtualization needs, but might not have the skills on hand.

The skill demand and the instant ability to get started is something that we take a lot of pride in, and in the global track record of doing that very well is something that HP Enterprise Services can bring from an outsourcing perspective. That's where HP Enterprise Services comes to add value with meeting customers' needs around skills.

Clement: Our 30-plus years of experience in providing customer training has shown, time and time again, that technology investments by themselves don’t ensure success.

The business results that clients want in virtualization won’t be achieved until those three elements you just mentioned -- technology, process and people -- are all addressed and aligned.

The business results that clients want in virtualization won’t be achieved until those three elements you just mentioned -- technology, process and people -- are all addressed and aligned.

That's really where training comes in. Increasing the technical skills of our customers' people is often one of the most effective ways for them to grow, increase their productivity and boost the success rates of their virtualization initiatives.

In fact, an interesting study just last year from IDC found that 60 percent of the factors leading to the general success in the IT function are attributed to the skills of people involved. Our education team can help address both the people and process parts of the equation.

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For more information on HP's Virtual Services, please go to: www.hp.com/go/virtualization and www.hp.com/go/services.

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Reed: We see a shift in the way that IT organizations have considered what they think would be strategic to their end business function. A lot of that is driven through the analysis that goes into planning for a virtual server environment.

When doing something like a virtual server environment, the IT organizations have to take a step back and analyze whether or not this is something that they’ve got the core competency to support. Often times, they come to the conclusion that they don’t have the right set of skills, resources, or locations to support those virtual servers in terms of their data-center location, as well as where those resources are sitting.

So, during the planning of virtual server environments, IT organizations will choose to outsource the planning, the implementation, and the ongoing management of that IT infrastructure to companies like HP.

It's definitely a good opportunity for IT organizations to take a step back and look at how they want to have that IT infrastructure managed, and often times outsourcing is a part of that conversation.

Meyer: One thing virtualization does very nicely is blur the connections between the various pieces of infrastructure, and the technology has developed quite a bit to allow that to ebb and flow with the business needs.

And, you're right. The other side of that is getting the people to actually work and plan together. We always talk about virtualization as not an end-point. It's an enabler of technology to get you there.

If you put what we’re talking about in context, the next thing that people want to go to is maybe build a private-cloud service delivery model. Those types of things will depend on that cooperation. It's not just virtualization that that's causing but it's really the newest service delivery models. Where people are heading with their services absolutely requires management and a look at new processes as well.

Pittman: We’d like to work with our customers to understand that it's a starting point to consolidate, but there is a lot more in the broader ecosystem consider, as they think about optimizing their IT environment.

One of HP’s philosophies is the whole concept of converged infrastructure. That's thinking about the infrastructure more holistically and addressing the applications, as you said, as well as your server environments and not doing one off, but looking more holistically to get the full benefit.

Moving forward, that's something that we certainly could help customers do from an outsourcing standpoint in enabling all of the parts, so there aren’t gaps that cause bigger problems than the one hiccup that started the whole notion of virtualization in the beginning.

Morgan: We think about this in terms of their life cycle. We like to start with a strategy discussion, where we have consultants sit down with the client to better understand what they’re trying to accomplish from a business objective perspective. We want to make sure that the customers are thinking about this first from the business perspective. What are their goals? What are they trying to accomplish? And, how can virtualization help them accomplish those goals?

Then, we also can help them with their actual return on investment (ROI) analysis and we have ROI tools that we can use to help them develop that analysis. We have experts to help them with the business justification. We try to take it from a business approach first and then design the right virtualization solution to help them accomplish those goals.

Pittman: HP Enterprise Services worked with the Navy/Marine Corps Intranet (NMCI), which is the world’s largest private network, serving and supporting sailors, marines, and civilians in more than 620 locations worldwide.

They were experiencing business challenges in productivity and innovation and in the security areas. Our approach was to consolidate 2,700 physical servers down to 300, reducing outage minutes by almost half. This decreased NMCI’s IT footprint by almost 40 percent and cut carbon emissions by almost 7,000 tons.

We minimized their downtime and controlled cost. We accelerated transfer times, transparency and optimal performance.

Virtualizing the servers in this environment enabled them to eliminate carbon emissions equivalent to taking 3,600 cars off the road for one year. So, there were tremendous improvements in that area. We minimized their downtime and controlled cost. We accelerated transfer times, transparency and optimal performance.

All of this was done through the outsourcing virtualization support of HP Enterprise Services and we're really proud that that had a huge impact. They were recognized for an award, as a result of this virtualization improvement, which was pretty outstanding. We talked a little earlier about the broader benefits that customers can expect, the services that help make all of this happen.

In our full portfolio within the IT organization of HP, that would be server management services, data center modernization, network application services, storage services, web hosting services, and network management services. All combined, they made this happen successfully. We're really proud of that, and that's an example of the very large-scale impact that's reaping a lot of benefit.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

For more information on virtualization and how it provides a foundation for private clouds, plan to attend the HP Cloud Virtual Conference in March. Register now for this event:
Asia, Pacific, Japan - March 2
Europe Middle East and Africa - March 3
Americas - March 4

You may also be interested in:

• Caught between a peak and a valley -- how CIOs can survive today, while positioning for tomorrow
  
  
• Proper cloud adoption requires a governance support spectrum of technology, services, best practices
  
  
• Open source and cloud: A curse or blessing during recession? BriefingsDirect analysts weigh in

Business event processing and SOA: Joined at the hip

This guest BriefingsDirect post comes courtesy of Jason Bloomberg, managing partner at ZapThink.

By Jason Bloomberg, edited by Ronald Schmelzer

At the dawn of the computer age, forecasters predicted all manner of changes in day-to-day life, including fully automated kitchens, cars that drove themselves, paperless offices, and more. In all of these now-quaint views of the future, the prognostication focused on applying the technologies of the future to the problems of the present. Where an office had a filing cabinet full of paper, the future will put that paper in a computer, and voila: The paperless office!

The reality of the last 50 years, of course, is quite different. As technology evolved, so too did our appetite for information. Where the size of the filing cabinet in a 1950s office constrained the quantity of information a business could manage, today we have no such limitations. But rather than stopping at a simplification of existing business, we continue to push the limits of the technology at our disposal. If we have terabytes of storage, then to be sure we’ll soon have terabytes of information to fill it. If we have networks running at gigabit speeds, then you can rest assured the quantity of information we’ll attempt to push through such pipes will soon consume whatever capacity we have.

In many ways, in fact, it is the quantity and variety of information on the move, rather than simply at rest, that defines the modern business world. Today’s businesses operate in a complex ecosystem of connected, interrelated events, where each event creates information that flies around our networks. From fluctuating interest rates to customer transactions to manufacturing processes, business events drive the business while simultaneously causing the creation and movement of information.

In particular, it is the tight interrelationship between business events—occurrences in the real world that are relevant to the business, and software events, which are messages that such events generate, that creates both a problem as well as an opportunity for businesses. The sheer quantity and variety of events promises to swamp any organization unprepared for the onslaught of network traffic that today’s business generates. But on the other hand, business events are also the lifeblood of the organization, as everything the business does appears in real time in the event traffic on their network. Sometimes the patterns such events exhibit are easy to identify, but more often they are hard to detect and correlate. Organizations need to process and leverage business events to provide insight into the workings of their organization in order to run the business and empower the people within it.

What is business event processing?

The key to leveraging business events is to apply software that processes software events—such as messages on the network—in such a way as to gain insight into, and control over the business events that generate them. Such software is known as Business Event Processing (BEP). BEP software helps businesses detect, analyze, and respond to complex events to take advantage of emerging opportunities, handle unexpected exceptions, and redirect resources as necessary—essentially, dealing with business events on the business level, independent of the technology context for those events. BEP software often forms part of a Business Process Management (BPM) solution, which combines event pattern detection with dynamic process execution.

The goal of BEP is to detect and interpret business situations, resulting in effective business decision making. BEP enables organizations to extract events from multiple sources, detect business situations based on patterns of events, and then derive new events through aggregation of events as well as by adding new information. BEP software helps companies identify patterns and establish connections between events, and then initiates a new event, or a trigger, when an important trend emerges.

BEP is becoming increasingly important across the business environment because it enables a wide variety of organizations to proactively analyze and respond to small market changes that can have significant business impact. BEP also has a variety of other uses, for example:

• Retailers’ BEP solutions proactively alert them about the success or failure of a product as goods move off the shelf, allowing them to make real time changes to pricing, inventory, and marketing campaigns
  
  
• E-commerce vendors leverage BEP to help identify fraud and reduce abandoned shopping carts
  
  
• Trading markets use BEP to uncover and compare minute changes throughout global markets to support buy/sell decisions as well as to ensure the timely execution of bids
  
  
• The massive multi-player online game industry uses BEP to uncover unauthorized activities among tens of thousands of actions per second
  
  
• Fleet management companies leverage BEP to help them make instantaneous decisions on how to deal with products that are lost in transit or delayed due to unforeseen circumstances.

Business event processing in an SOA context

BEP describes a wide range of ways that enterprises approach events, from simple to complex. Opening an account, making a withdrawal, buying an item, changes in sensor or meter readings, or sending an invoice are all examples of common business events. Regardless of the potential complexity of such events, organizations must both recognize new events and understand the importance of business critical events in a noisy environment. Only by recognizing important events in real time will such companies be able to leverage their IT systems and business processes to speed response and reduce the need for manual processing.

And for every type of application, there is potentially a new type of event.

Events, however, do not exist in a vacuum—they depend upon various applications and systems across the IT infrastructure to create and consume them. And for every type of application, there is potentially a new type of event. The BEP challenge, therefore, is dealing with environments of broad heterogeneity, separating what’s important to the business from the underlying complexity of the technology.

In other words, BEP does not stand alone in the IT organization. It requires a flexible architecture that can abstract the underlying heterogeneity the IT environment presents. Today’s enterprises are implementing Service-Oriented Architecture (SOA) for this purpose. SOA is a set of best practices for organizing IT resources in a flexible way to support agile business processes by representing IT capabilities and information as Services, which abstract the complexity of the underlying technology from the business. Businesses then define events and their responses through the IT perspective of interacting with Services.

Applying SOA to business events: Heterogeneity and flexibility

The story of how to apply SOA to business events take place simultaneously on two levels: above and below the Service abstraction. Above this abstraction is the business environment, where the business is able to leverage BEP to glean real time information about the business independent of the underlying technology. In contrast, below the Service abstraction, events are messages moving from one Service endpoint to another, typically (but not necessarily) in XML format.

It is below the Service abstraction, in fact, that applying SOA to business events provides much of its value to the organization. Service interfaces, by their nature, send and/or receive messages, so the broader the SOA implementation, the more the message traffic between Service endpoints represents the operations of the business. From the BEP perspective, however, such messages are events, and provide visibility into the business in an ad hoc, real time manner.

. . . If managers have visibility into business events, then they can then take more effective, proactive steps to optimize production and reduce costly slowdowns.

While the SOA-enabled BEP story offers business value beneath the Service abstraction, the benefits to the organization above the abstraction are every bit as important. After all, as the pace of business accelerates, there are business benefits from optimizing how the organization handles business events. Improved customer responsiveness, more optimal usage of physical assets and better management of complex value chains all benefit from improvements in event processing. Furthermore, if managers have visibility into business events, then they can then take more effective, proactive steps to optimize production and reduce costly slowdowns.

Similarly, event processing can improve customer service and increase customer satisfaction. Because event processing can identify important events and deliver the right information to the right place at the right time, managers can mitigate or avoid a wide range of problems. Such benefits accrue not only in individual instances, but also across business processes, as well. Visibility into events helps line of business managers deal with changes in business process, thus making the business more reactive.

Combined with SOA and BPM, therefore, BEP extends the value of each as well as the synergies between them. Following SOA best practices can leverage the value of both BPM and BEP, as SOA hides the complexity of the IT environment from the business aspects of the solutions. The bottom line is that BPM, SOA and BEP combine to meet the needs of the business more effectively than any one or two of the approaches can separately.

The ZapThink take

The exponential growth of information in the business world continues unabated, and there’s no reason to expect it to slack off in the future. This growth is driving the need for event processing, as well as the enabling technologies of Web 2.0 and the underlying architecture of SOA. The combination of these three approaches provides a foundation for flexibility, composability, integration, and scalability. At the heart of this synergy are open standards, which facilitate all the various interactions among systems that goes into Business Event Processing. Furthermore, existing security, governance, and BPM technologies round out the set of enabling technologies that feed this confluence of approaches.

The bottom line, however, is the business story. BEP, combined with SOA, further bridges the gap between business and IT.

The bottom line, however, is the business story. BEP, combined with SOA, further bridges the gap between business and IT. Only the business knows the relevance of business events, SOA abstracts the underlying technology, and Web 2.0 provides an empowering interface to increasingly powerful, real time capabilities and information.

The challenge with discussing this synergy among BEP, SOA, and Web 2.0 is that no one term does it justice. SOA is a critical part of this story, but is only a part. SOA delivers a set of principles for organizing an organization’s resources to provide a business-centric abstraction, because the business doesn’t care what server, network, or data center the implementation underlying a Service runs on. All they care is that the Service works as advertised.

This guest BriefingsDirect post comes courtesy of Jason Bloomberg, managing partner at ZapThink.

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Time to give server virtualization's twin, storage virtualization, a top place at IT efficiency table

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

The latest BriefingsDirect podcast discussion hones in on storage virtualization. You've heard a lot about server virtualization over the past few years, and many enterprises have adopted virtual servers to improve their ability to manage runtime workloads and high utilization rates to cut total cost.

But, as a sibling to server virtualization, storage virtualization has some strong benefits of its own, not the least of which is the ability to better support server virtualization and make it more successful.

We'll look at how storage virtualization works, where it fits in, and why it makes a lot of sense. The cost savings metrics alone caught me by surprise, making me question why we haven't been talking about storage and server virtualization efforts in the same breath over these past several years.

Here to help understand how to better take advantage of storage virtualization, we're joined by Mike Koponen, HP's StorageWorks Worldwide Solutions marketing manager. The discussion is moderated by BriefingsDirect's Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Koponen: Storage requirements aren’t letting up from regulatory requirements, expansion, 24x7 business environments, and the explosion of multimedia. Storage growth is certainly not stopping due to a slowed down economy.

So enterprises need to boost efficiencies from their existing assets as well as the future assets they're going to acquire and then to look for ways to cut capital and operating expenditures. That's really where storage virtualization fits in.

We found that in a lot of businesses they may have as little as 20 percent utilization of their storage capacity. By going to storage virtualization, they can have a 300 percent increase in that existing storage asset utilization, depending upon how it's implemented.

So storage virtualization is a way to increase asset utilization. It's also a way to save on administrative cost, and it's also a way to improve operational efficiencies, as businesses deal with the increasing storage requirements of their businesses. In fact, if businesses don't reevaluate their storage infrastructures at the same time as they're reevaluating their server infrastructures, they really won't realize the full potential of a server virtualization.

In the past, customers would just continue to deploy servers with direct-attached storage (DAS). All of a sudden, they ended up with silos or islands of storage that were more complex to manage and didn't have the agility that you would need to shift storage resources around from application to application.

Then, people moved into deploying network storage or shared storage, storage area networks (SANs) or network-attached storage (NAS) systems and realized a gain in efficiency from that. But, the same can happen. You can end up with islands of SAN systems or NAS systems. Then, to bump things up to the next level of asset utilization, network storage virtualization comes into play.

Now, you can pool all those heterogeneous systems under one common management environment to make it easy to manage and provision these islands of storage that you wound up with.

Studies show swift pay-back

A recent white paper recently done by IDC focuses on the business value of storage virtualization. It looked at a number of factors -- reduced IT labor, reduced hardware and software cost, reduced infrastructure cost, and user productivity improvements. Virtualized storage had a range of payback anywhere from four to six months, based on the type of virtualized storage that was being deployed.

There are different needs or requirements that drive the use of storage virtualization and also different benefits. It may be flexible allocation of tiered storage, so you can move data to different tiers of storage based upon its importance and upon how fast you want to access it. You can take less business-critical information that you need to access less frequently and put it on lower cost storage.

The other might be that you just need more efficient snap-shotting, a replication of things, to provide the right degree of data protection to your business. It's a function of understanding what the top business needs are and then finding the right type of storage virtualization that matches those.

In order to take advantage of the advanced capabilities of server virtualization, such as being able to do live migration of virtual machines and to put in place high availability infrastructures, advanced server virtualization require some form of shared storage.

So, in some sense, it's a base requirement that you need shared storage. But, what we've experienced is that, when you do server virtualization, it places some unique requirements on your storage infrastructure in terms of high availability and performance loads.

Server virtualization drives the creation of more data from the standpoint of more snapshots, more replicas, and things like that. So, you can quickly consume a lot of storage, if you don't have an efficient storage management scheme in place.

Server virtualization drives the creation of more data from the standpoint of more snapshots, more replicas, and things like that. So, you can quickly consume a lot of storage, if you don't have an efficient storage management scheme in place.

And, there's manageability too. Virtual server environments are extremely flexible. It's much easier to deploy new applications. You need a storage infrastructure that is equally as easy to manage, so that you can provision new storage just as quickly as you can provision new servers.

As a result, you certainly get an increased degree of data protection by being able to meet backup windows and not having to compromise the amount of information you back up, because you're trying to squeeze more backups through a limited number of physical servers. When you do server virtualization, you're reducing the number of physical servers and running more virtual ones on top of that reduced number.

You might be trying to move same number of backups through a fewer number of physical servers. You also then end up with this higher degree of data protection, because with a virtualized server storage environment you can still achieve the volume of backups you need in a shorter window.

From an HP portfolio standpoint, we have some innovative products like the HP LeftHand SAN system that's based on a clustered storage architecture, where data is striped across the arrays and the cluster. If a single array goes down in the cluster, the volume is still online and available to your virtual server environment, so that high degree of application availability is maintained.

For people who want to learn more about storage virtualization and what HP has to offer to improve their business returns, I suggest, they go to www.hp.com/go/storagevirtualization. There they can learn about the different types of storage virtualization technologies available. There are also some assets on that website to help them with the justification of putting storage virtualization within their companies.

Listen to the podcast. Find it on iTunes/iPod and Podcast.com. Read a full transcript or download a copy. Learn more. Sponsor: Hewlett-Packard.

Security skills provide top draw across still challenging U.S. IT jobs landscape

Listen to the podcast. Read a full transcript or download a copy. Find it on iTunes/iPod and Podcast.com. Learn more. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

Special offer: Download a free, supported 30-day trial of Active Endpoint's ActiveVOS at www.activevos.com/insight.

Gain additional data and analysis from Foote Partners on the IT jobs market.

The latest BriefingsDirect Analyst Insights Edition, Volume 48, centers on the IT job landscape for 2010. We interview David Foote, CEO and chief research officer, as well as co-founder, at Foote Partners LLC of Vero Beach, Fla.

David closely tracks the hiring and human resources trends across the IT landscape. He'll share his findings of where the recession has taken IT hiring and where the recovery will shape up. We'll also look at what skills are going to be in demand and which ones are not. David will help those in IT, or those seeking to enter IT, identify where the new job opportunities lie.

This periodic discussion and dissection of IT infrastructure related news and events, with a panel of industry analysts and guests, comes to you with the help of our charter sponsor, Active Endpoints, maker of the ActiveVOS business process management system, and through the support of TIBCO Software. I'm your host and moderator Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

I co-founded this company with a former senior partner at McKinsey. We developed a number of products and took them out in 1997. We not only have that big IT executive and trends focus as analysts, but also very much a business focus.

We've also populated this company with people from the HR industry, because one of the products we are best known for is the tracking of pay and demand for IT salaries and skills.

We have a proprietary database -- which I'll be drawing from today -- of about 2,000 companies in the U.S. and Canada. It covers about 95,000 IT workers. We use this base to monitor trends and to collect information about compensation and attitudes and what executives are thinking about as they manage IT departments.

For many years, IT people were basically people with deep technical skills in a lot of areas of infrastructure, systems, network, and communications. Then, the Internet happened.

All of a sudden, huge chunks of the budget in IT moved into lines of business. That opened the door for a lot of IT talent that wasn't simply defined as technical, but also customer facing and with knowledge of the business, the industry, and solutions. We've been seeing a maturation of that all along.

What's happened in the last three years is that, when we talk about workforce issues and trends, the currency in IT is much more skills versus jobs, and part of what's inched that along has been outsourcing.

If you need to get something done, you can certainly purchase that and hire people full-time or you can rent it by going anywhere in the world, Vietnam, Southeast Asia, India, or many other places. Essentially, you are just purchasing a market basket of skills. Or, these days, you can give it over to somebody, and by that I mean managed services, which is the new form of what has been traditionally called outsourcing.

It's not so much about hiring, but about how we determine what skills we need, how we find those, and how we execute. What's really happened in two or three years is that the speed at which decisions are made and then implemented has gotten to the point where you have to make decisions in a matter of days and weeks, and not months.

Resisting the temptation

There have been some interesting behaviors during this recession that I haven't seen in prior recessions. That lead me to believe that people have really resisted the temptation to reduce cost at the expense of what the organization will look like in 2011 or 2012, when we are past this recession and are back into business as usual.

People have learned something. That's been a big difference in the last three years. ... Unemployment in IT is usually half of what it is in the general job market, if you look at Bureau of Labor Statistics (BLS) numbers. I can tell you right now that jobs, in terms of unemployment in IT, have really stabilized.

In the last three months [of 2009] there was a net gain of 11,200 jobs in these five [IT] categories. If you look at the previous eight months, prior to September, there was a loss of 31,000 jobs.

Gain additional up-to-date data and analysis from Foote Partners on the IT jobs market.

So going into 2010, the services industry will absolutely be looking for talent. There's going to be probably a greater need for consultants, and companies looking for help in a lot of the execution. That's because there are still a lot of hiring restrictions out there right now. Companies simply cannot go to the market to find bodies, even if they wanted to.

Companies are still very nervous about hiring, or to put it this way, investing in full-time talent, when the overhead on a full-time worker is usually 80-100 percent of their salaries. If they can find that talent somewhere else, they are going to hire it.

There are certain areas, for example, like security, where there is a tendency to not want to hire talent outside, because this is too important to a company. There are certain legacy skills that are important, but in terms of things like security, a lot of the managed services that have been purchased in 2009 were small- to medium-sized companies that simply don't have big IT staffs.

If you have 5,000, 6,000, or 7,000 people working in IT, you're probably going to do a lot of your own security, but small and medium size have not, and that's an extremely hot area right now to be working in.

We track the value of skills and premium pay for skills, and the only segment of IT that has actually gained value, since the recession started in 2007, is security, and it has been progressive. We haven't seen a downturn in its value in one quarter.

High demand for security certification

Since 2007, when this recession started, overall the market value of security certs is up 3 percent. But if you look at all 200 certified skills that we track in this survey that we do of 406 skills, overall skills have dropped about 6.5 percent in value, but security certifications are up 2.9.

It is a tremendous place to be right now. We've asked people exactly what skills they're hiring, and they have given us this list: forensics, identity and access management, intrusion detection and prevention systems, disk file-level encryption solutions, including removable media, data leakage prevention, biometrics, web content filters, VoIP security, some application security, particularly in small to medium sized companies (SMBs), and governance, compliance, and audit, of course.

The public sector has been on a real tear. As you do, we get a lot of privileged information. One of the things that we have heard from a number of sources, I can't tell you the reason why, is that a lot of recruiting is happening in the private sector right now with the National Security Agency and Homeland Security -- in-the-trenches people.

I think there was a feeling that there weren't enough real deep technical, in-the-trenches kind of talent, in security. There were a lot of policy people, but not enough actual talent. Because of the Cyber Security Initiative, particularly under the current administration, there has been a lot of hiring.

Managed services looks like one of the hottest areas right now, especially in networking and communication: Metro Ethernet, VPNs, IP voice, and wireless security. And if you look at the wireless security market right now, it’s a $9 billion market in Europe. It’s a $5.7 billion market in Asia-Pacific. But in North America it’s between $4 and 5 billion.

There's a lot of activity in wireless security. We have to go right down into every one of these segments. I could give you an idea of where the growth is spurting right now. North America is not leading a lot of this. Other parts of the world are leading this, which gives our companies opportunities to play in those markets as well.

For many years, as you know, Dana, it was everybody taking on America, but now America is taking on the rest of the world. They're looking at opportunities abroad, and that’s had a bigger impact on labor as well. If you're building products and forming alliances and partnerships with companies abroad, you're using their talent and you're using your talent in their countries. There is this global labor arbitrage, global workforce, that companies have right now, and not just the North American workforce.

Listen to the podcast. Read a full transcript or download a copy. Find it on iTunes/iPod and Podcast.com. Learn more. Charter Sponsor: Active Endpoints. Also sponsored by TIBCO Software.

Special offer: Download a free, supported 30-day trial of Active Endpoint's ActiveVOS at www.activevos.com/insight.

Gain additional data and analysis from Foote Partners on the IT jobs market.

Apple and Oracle on way to do what IBM and Microsoft could not: Dominate entire markets

I was a bit distracted from the Apple iPad news due to the marathon Oracle conference Wednesday on its shiny new Sun Microsystems acquisition.

But the more I thought about it, the more these two companies are extremely well positioned to actually fulfill what other powerful companies tried to do and failed. Apple and Oracle may be unstoppable in their burgeoning power to dominate the collection of profits across vast and essential markets for decades.

Apple is well on the way to dominating the way that multimedia content is priced and distributed, perhaps unlike any company since Hearst in its 1920s heyday. Apple is not killing the old to usher in the new, as Google is. Apple is rescuing the old media models with a viable online direct payment model. Then it will take all the real dough.

The iPad is a red herring, almost certainly a loss leader, like Apple TV. The real business is brokering a critical mass of music, spoken word, movies, TV, books, magazines, and newspapers. All the digital content that's fit to access. The iPad simply helps convince the producers and consumers to take the iTunes and App Store model into the domain of the formerly printed word. It should work, too.

Oracle is off to becoming the one-stop shop for mission-critical enterprise IT ... as a service. IT can come as an Oracle-provided service, from soup to nuts, applications to silicon. The "service" is that you only need go to Oracle, and that the stuff actually works well. Just leave the driving to Oracle. It should work, too.

This is a mighty attractive bid right now to a lot of corporations. The in-house suppliers of raw compute infrastructure resources are caught in a huge, decades-in-the-making vice -- of needing to cut costs, manage energy, reduce risk and back off of complexity. Can't do that under the status quo.

In doing complete IT package gig, Oracle has signaled the end of the best-of-breed, heterogeneous, and perhaps open source components era of IT. In the new IT era, services are king. The way you actually serve or acquire them is far less of a concern. Enterprises focus on the business and the IT comes, well, like electricity.

This is why "cloud" makes no sense to Oracle's CEO Larry Ellison. He'd rather we take out the word "cloud" from cloud computing and replace it with "Oracle." Now that makes sense!

All the necessary ingredients

Oracle has all the major parts and smarts it needs to do this, by the way. Oracle may need an acquisition or two more for better management and perhaps hosting. But that's about it.

Like Apple, Oracle is not killing the old IT era to usher in the new. Oracle is rescuing the old IT models with a viable complete IT acquisition model. Then it too will take all the real dough.

Incidentally, IBM tired to, and came quite close to a similar variety of enterprise IT domination. That was more than 30 years ago. IBM was an era or two too early. Microsoft tried, and came moderately close -- at least in vision -- to the same thing, moving from the desktop backward into the data center. But, alas, Microsoft was also an era too early.

Both Sun and IBM were seduced over the past 15 years by the interchangeable parts version of IT ... It's what Java is all about. Microsoft hated Java, never veered from their all-us-or-nothing mantle, which is now passing to Oracle. But Microsoft never had the heft in the core enterprise data center to pull it off. Oracle does.

Yes, Apple and Oracle have clearly learned well from their brethren. And the timing has never been better, the recession a god-send.

So now as consumers, we have some big choices .... er, actually maybe we have a big buy-in, yes, but maybe not too much in the way of choices. As any mainstream consumer and producer of media, I will really need to do business with Apple. Not too much choice. Convenience across the content supply chain has become the killer app. And I love it all the way.

I want my MTV, my New York Times, my Mahler and my Madmen. Apple gets it to me as I wish at an acceptable price. Case closed. The end device is not so important any more, be it big, medium or small, be it Mac or PC. Because of my full-bore consumer seduction, the producers of the content need to follow the gold Apple ring. Same for consumer applications and games, though they are all fundamentally content.

As an IT services buyer, Oracle is making a similar offer. Convenience is killer for IT managers too. Oracle, through its appliances, integrated stack, data ecosystem, tuned high-end hardware, business applications, business intelligence, and sales account heft, leaves me breathless. And taking a next breath will probably have an Oracle SLA attached. Whew!

Critical mass in the accounts that matter

Oracle is already irreplaceable in all -- and I mean all -- the major enterprise accounts. Oracle can substantially now reduce complexity across the IT infrastructure front, while seemingly cutting costs, apparently reducing risk. But a huge portion of the total savings goes into Oracle's pockets, making it stronger in more ways in more accounts for 20 years. Now they can take the lion's share of the profits in the IT as a service era. I call that dominance.

So let's hear it for the balancing acts still standing. Go IBM! Go Microsoft! Go Google! Go HP! Go SAP! How about Cisco and EMC? You all go for as long as you can, please. Or at least as long as it takes for the next IT and media eras to arrive. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

These handful of companies are about the only insurance policies against Apple and Oracle being able to price with impunity across vast markets that deeply affect us all.