Perform better in the age of hybrid IT
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Perform better in the age of hybrid IT
- 1. Perform better In the age of hybrid IT Paul Muller Vice President, HP Software
- 2. Time of remarkable CHANGE
- 3. Peak performance Financial uncertainty New playbook Macro
- 4. Strategic Sourcing Converged Infrastructure Application Transformation and Techno
- 5. If Facebook can do it, why can’t you? 21st century at home, 19th at the office… “Green screen” image courtesy IBM http://www.ibm.com/developerworks/webservices/library/ws-hatsegl/
- 7. $5 TRILLION Spent on IT annually
- 9. 9 80%+ lack formal requirements 74% of outages detected by the end-user 10 hours to resolve 3 million attacks every day. 130 million credit card stolen 15 doctors and nurses fired 1.2 billion terabtyes of data 60% annual growth $3 million per e-discovery request 2 in 3 Projects fail
- 10. Is a stressed IT team Behind every great app… Financials HRMS E-commercePortal Service B Application Code / Business Logic ApplicationPlatforms Oracle Web-Logic .NET SAP J2EE Systems/Servers Windows Unix Main-frame AS400 Linux Virtual / Physical Network & Infrastructure Federated CMDBRun-time Service Model
- 11. CIO becomes the builder and broker of services Strategic Role Of CIO Changing TRANSFORM legacy infrastructure and applications and processes MANAGE and secureacross legacy applications and cloud assets CONSUMEoff-premises services securely buildon-premises cloud services Traditional Private Public
- 12. To perform better… Every business leader—including IT—has or should have a performance system. It can and should be digitizedand automated. It’s important that its coverage is comprehensive… …andcascadedthroughout the organization. It can continuously improve by featuring best practices from the broader professional community.
- 13. Perform Better. Critical Capabilities for Hybrid Delivery 13 HP IT Performance Suite EXECUTE SYSTEMATICALLY STRATEGY, PLANNING & GOVERNANCE STORE EFFICIENTLY ANALYZE IN REAL TIME SECURE PROACTIVELY BUILD FASTER OPERATE SIMPLY APPLICATION LIFECYCLE MANAGEMENT OPERATIONS MANAGEMENT INFORMATION MANAGEMENT SECURITY COMPLIANCE & RISK MANAGEMENT BUSINESS ANALYTICS HP Confidential
- 14. Improving IT Performance Automation Executive Scorecard Portfolio mgmt Project mgmt ApplicationLifecycleManagement Availability &Performance mgmt Automation Service Desk IT Risk mgmt Information mgmt DECIDE TAKE ACTION Foundation ProjectStatus ServiceMgmt SLAs Assets CostBreak-down ServiceModels MEASURE
- 15. Real world results from HP Software customers Better performance means better outcomes Improve service to customers Realize cost efficiencies 3ximprovement in first call resolution rates 9xfaster retrieval of patient records 66% reduction in unplanned failure rates 900% faster recovery from business critical outages $5M/yr saved by cutting mean time to resolution to seconds $19M/yr saved through 50% lower software testing costs $32M/yr saved in change management labor costs
- 19. Join the community of experts
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- Run time should be 35 minutes….
- Slide 2 – New season, new rules And all of the above would be so much easier if things would just sit still for long enough to catch our breaths, but the world around us is in constant change – some driven by the markets and others driven by your business’ fiscal seasons.Like the change of seasons, we’re also entering a new season for many field sports around the world – and each new season brings new rules, new players, and new budgets. Rugby:How has the game changed over the years? The game has changed immensely, probably professionalism has made the biggest change in the game. At the top of their game the athletes are fully professional, and they have been for over 10 years. That has allowed the athletes to get bigger, stronger, faster, and the game has improved with it. The other big change is some of the law changes that have been brought in through the years, from the point allocation for the scoring of tries changing from 3 to 5, to line-up lifting, to a whole host of others which has made the game a bit more of a pure sport and certainly more of an athletic spectacle than it has been in the distant past. It appeals to more people now.http://www.helium.com/items/1379745-rugby-union-law-changesThink about what’s it’s like to run an elite sporting team and it’s not that different from running an elite IT organization – it’s about optimizing across their salary cap and talent to innovate new plays that will drive improved results or outcomes.Nearly every CIO today is facing lower budgets (or salary cap). While it would be fair to imagine that the recent gains in the stock market and improvements in GDP numbers would result in increased IT budgets, a survey by CIO magazine indicates that 66% of the companies they examined plan to cut IT budgets in 2010 with a small number of companies do expect to increase their IT budgets modestly next year.And it’s not just IT that was impacted by budget reduction, the majority of business functions have been asked to tighten their belts in order to meet overall objectives and this has created a fierce competition for capital in the boardroom. Because of this competition that many CIOs feel they have to defend their spend and fight for capital if they are to ensure their business leverages IT in a way that puts them in a leading position as the downturn ends. If it can be said that anything positive comes from a downturn it might be that most CIO’s have led dramatic improvements in cost structure of their labor and put in place tight discipline on capital spend --- and if you haven’t now is the time to get those plans in place or you won’t have the credibility you need in Y10 budgeting.
- Slide 7There are tremendous efficiency and time to market benefits to be realized from these investments, however each of these innovations brings challenges of it’s own:Select statistics and talking points to suit audience from list below.Slide 8 - Governance 2.0 As if the challenges of managing large, geographically distributed networks aren’t enough, we all are faced with the prospect or the reality of a increased level of voluntary or legally mandated governance and compliance regimes for which the CIO is directly accountable. There are too many to list here, and many are industry specific, but for example many legislative acts require that you have disaster recovery capabilities in place. Privacy and security legislation, such as the U.S. Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley Act (SOX), requires investing in safeguarding your network operations with disaster recovery solutions to protect the data from accidental loss, but also to ensure that data location and privacy rules are met requiring sophisticated, automated information classification, masking and archival in order to lower the cost of continuous compliance.(citation req*)------------------------ additional facts/figures ------------------------------Application Modernization fuelling the innovation of business process and delivery channelsHow we develop software has changed radically with the adoption of AgileWorld Quality Report from Cap Gemini indicated a near universal adoption of Agile, but also that88% of customers say app complexity is rising81% say overall quality is better due to better tools, best practices, new approachesHowever 78% of all testing is still manual according to IDC, this needs to be automated to drive out costs and improve qualityAn industry study (IDC) found that over 25 critical bugs make it into production with an average weighted cost of just over $250,000 just to fix (not counting cost of downtime) Organizations must also tackle the large number of legacy application in production. We have found that most companies have 200-300% application overlap from legacy and duplicated business logic, which increases operational as well as compliance costs. When talking to many of our customers we find that these applications have not been decommissioned for several reasons, but often they struggle to;automate the discovery of those applications to understand the actual situation, Classify and migrate the data appropriatelyOr dispose or archive old data offline in a compliant mannerAccording to most estimates there are now 1.6 Billion users connected to the internetWeb 2.0 promises a much richer experience, really enabling SaaS models to be a realistic propositionWeb 2.0 also brings new challenges in quality, performance and application governanceAs with all innovations there are new risks, I’ll just touch on security Take Adobe Flash as just one example A recent Google search conducted by HP for login.swf revealed over 4000 Flash apps on the netAn HP analysis found over 35% of them DIDN’T conform to Adobe best practices including embedded passwords All of which could have been easily detected and corrected with application security scanning toolseg: recent prosecution of the three hackers involved in SQL injection attacks used to siphon off over 130 million credit card detailsVirtualizationSeemed like a “new thing” even last year, now mainstreamSignificant milestone this year, virtual servers “out shipped” physical servers at just over 7.5M unit/year in 2009By 2012 industry estimates are that over 2x as many virtual servers will ship as physical and over (citation reqd)Seeing more complex workloads moving to virtualization – no longer file/print – 42% increase in applications as a result (citation reqd)Complex, often brittle applications are moving over to a flexible, dynamic platformThis means it’s no longer enough to manage virtual “servers”, it’s about managing virtual servicesDynamic mapping, real time is critical if you are to be able to control, align and manage these servers to deliver on SLAsAND also to deliver on the cost promise (virtual server sprawl results in high TCO – especially if licensing is by VM)Another example of changes required are for inventory and backup –if you have to ignite every virtual sever once a day to scan for inventory and to backup the server drive up server utilization, increased power and cooling - huge amount of waste!CloudGreat opportunity, but need to think hard about governance issuesMany large companies rightly concerned that they must adopt quickly as the smaller nimble companies are able to get started on a “0 capital” basisBut just because it’s easy to acquire, doesn’t mean it requires any less diligence in managementThe security example applies equally to Cloud – utilize the same practices externally as internallyNot just app security, quality testing and performance become even more important as you are not always in the change loop, therefore while you are less concerned about capital equipment and running costs, you need to take some of those savings and apply them to investing automated quality and governance.About managing risk & having a clear understanding of your own costs to know if you’re getting a good dealAnother critical issue to address is data location, privacy and archival concernsFor example, recently a company (Linkup) lost 45% of their customers data and had to shut up shophttp://www.networkworld.com/news/2008/081108-linkup-failure.html?hpg1=bnThe other factor to take into account is downtime – even the largest and best funded SaaS/Cloud providers on the planet continue to have issues with downtimehttp://blogs.zdnet.com/projectfailures/?p=2291This requires enterprises consuming Cloud service to invest in Cloud specific monitoring to give you early warning of end-user outages and performance issues as well as requiring assurance tools that allow you to pinpoint whether that your own IT, the network provider or the Cloud provider are at fault.
- HP believes that it’s modern, composite applications and how they are consumed by the enterprise that will drives the new reality for CIOs.As we’ll discuss, cloud promises a vision of aRich client experience – but this will introduce new challenges for testing and monitoringWider range of access options – but this will challenge organizations perimeter security approaches, which will fail to protect them and their dataCloud brings a wider choice of infrastructure, middleware and applications choices across the stack – increased heterogeneity and complexity if managed in silos and not integrated into existing systemsThe flexibility and spped with which Cloud services can be consumed offers much faster time to market – but this flexibility will also result in anunprecedented increase in rate of change, and poorly managed change usually spells choas for our clients.The bottom line is that what’s new about cloud is the ability to rapidly innovate new applications and business processes – what hasn’t changed is IT’s accountability for delivering a high quality, secure experience across the entire service lifecycle.So what steps must a modern enterprise or service proivder take to master the cloud?
- HP believes that it’s modern, composite applications and how they are consumed by the enterprise that will drives the new reality for CIOs.As we’ll discuss, cloud promises a vision of aRich client experience – but this will introduce new challenges for testing and monitoringWider range of access options – but this will challenge organizations perimeter security approaches, which will fail to protect them and their dataCloud brings a wider choice of infrastructure, middleware and applications choices across the stack – increased heterogeneity and complexity if managed in silos and not integrated into existing systemsThe flexibility and spped with which Cloud services can be consumed offers much faster time to market – but this flexibility will also result in anunprecedented increase in rate of change, and poorly managed change usually spells choas for our clients.The bottom line is that what’s new about cloud is the ability to rapidly innovate new applications and business processes – what hasn’t changed is IT’s accountability for delivering a high quality, secure experience across the entire service lifecycle.So what steps must a modern enterprise or service proivder take to master the cloud?
- Key pointsTo succeed, HP believes we need to rethink the role of the CIO and of IT. Moving from IT as a sole “supplier” or builder of services, to becoming the builder AND the broker of IT services. That means going beyond building world-class, reliable services inside the datacenter, but to create a core competency in aligning business needs with the optimal mix of internally and externally available services and then seamlessly blending them into a reliable, secure and compliant end-to-end experience.Starting with being able to source and consume the services you need from the market – building a network of suppliers you trust that can be relied upon to deliver at a predictable price and performance.CIO’s also need build a capability to act as an internal service provider, matching the transparency and flexibility of externally available services for those areas where either economies of scale, competitive advantage, risk or compliance mean that it makes more sense to provide their own services.No matter whether they seek to leverage public or private cloud services, both business and IT processes require transformation if they are to maximize the benefits of cloud technologies and ready the enterprise for accelerated innovation and improved agility.Finally, CIO’s need to manage and secure the entire IT value chain using the same consistent, seamless tools and processes or they risk creating silos that introduce cost, complexity and risk to hybrid environments.
- It’s our view that every business leader has or should have a performance system (and by system we mean an approach for managing the objectives or outcomes you are held responsible for). Today many leaders may use slides or spreadsheets to communicate and track their goals, but it is our view that a performance system in this day and age should be both digitized and automated.It should be comprehensive (enable you to track and manage all of your goals)And it should cascade throughout your organization (so as a leader, my goals should cascade to the people on my leadership team and then their goals should cascade to their people, etc.).Finally we believe a performance system should be able to continuously improve, not only by tracking how we are performing against our goals, but also how we compare to others in our industry, or even to best practice leaders outside our industry.Other lines of business have systems for optimizing performanceWhether you are in finance and use ERP Whether you are in manufacturing where you use MRP and SCA optimize manufacturing and supply chain functionsWhether you are in a banking LOB where you use a core banking systemIT has traditionally not had a system for managing performance and has had to rely on spreadsheets or custom-built software.
- Improve Service to customers3x improvement in first call resolution rates – Vancouver Coastal Health 9x faster retrieval of patient records – Asante Health 66% reduction in unplanned failure rates - Neuberger Berman: 3 or 4 per month to less than 1 900% faster recovery - Boeing: reduced MTTR for business critical outages from 10 to 1 hoursRealize Cost efficienciesNSRI saved over $5 million annually by reducing the mean time to resolution from 2-3 hours to secondsConstellation Energy reduced IT labor costs devoted to changes from 30% to 10% saving $34.2M annuallyPetrobras slashed software test time by 50% and saved $38.6 million in 2 years.
- I’d like to get your feedback on today’s session, so we can help prioritize what might be the most useful next steps.We have a variety of ways we can help you. Let’s discuss what makes most sense from your perspective.Transformation Experience Workshop – ½ day, CIO and direct staffIT Performance Management Service – 2 week assessment service