Friday, June 26, 2009

IT Financial Management solutions provide visibility into total operations to reduce IT costs

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Read a full transcript of the discussion.

The global economic downturn has accelerated the need to reduce total IT costs through better identification and elimination of wasteful operations and practices. At the same time, IT departments need to better create and implement streamlined processes for delivering new levels of productivity, along with reduced time to business value.

But you can't well fix what you can't well measure. And so the true cost -- and benefits -- of complex and often sprawling IT portfolios too often remain a mystery, shrouded by outdated and often manual IT tracking and inventory tasks.

New solutions have emerged, however, to quickly improve the financial performance of IT operations through automated measuring and monitoring of what goes on, and converting the information into standardized financial metrics. This helps IT organizations move toward an IT shared services approach, with more efficient charge-back and payment mechanisms.

Gaining real-time visibility into dynamic IT cost structures provides a powerful tool for reducing cost, while also maintaining and improving overall performance -- and perception of worth. Holistic visibility across an entire IT portfolio also develops the visual analytics that can help better probe for cost improvements and uncover waste -- and then easily share the analysis and decisions rationale with business leaders.

To better understand how improved financial management capabilities can help enterprise IT departments, I recently interviewed two executives from Hewlett-Packard Software and Solutions: Ken Cheney, director of product marketing for IT Financial Management, and John Wills, practice leader for the Business Intelligence Solutions Group.

Here are some excerpts:
Cheney: The landscape has changed in such a way that IT executives are being asked to be much more accountable about how they’re operating their business to drive down the cost of IT significantly. As such, they're having to put in place new processes and tools in order to effectively make those types of decisions. ... We can automate processes. We can drive the data that they need for effective decision-making. Then, there is also the will there in terms of the pressure to better control cost. IT spend these days composes about 2 to 12 percent of most organizations’ total revenue, a sizable component.

Wills: If all of your information is scattered around the IT organization and IT functions, and it’s difficult to get your arms around. You certainly can’t do a good job managing going forward. A lot of that has to do with being able to look back and to have historical data. Historical data is a prerequisite for knowing how to go forward and to look at a project’s cost and where you can optimize cost or take cost down and where you have risk in the organization. So, visibility is absolutely the key.

IT has spent probably the last 15 years taking tools and technologies out into the lines of business, helping people integrate their data, helping lines of business integrate their data, and answering business questions to help optimize, to capture more customers, reduce churn in certain industries, and to optimize cost. Now, it’s time for them to look inward and do that for themselves.

Cheney: IT operates in a very siloed manner, where the organization does not have a holistic view across all the activities. ... The reporting methods are growing up through these silos and, as such, the data tends to be worked within a manual process and tends to be error-prone. There's a tremendous amount of latency there.

The challenge for IT is how to develop a common set of processes that are driving data in a consistent manner that allows for effective control over the execution of the work going on in IT as well as the decision control, meaning the right kind of information that the executives can take action on.

Wills: When you look at any IT organization, you really see a lot of the cost is around people and around labor. But, then there is a set of physical assets -- servers, routers, all the physical assets that's involved in what IT does for the business. There is a financial component that cuts across both of those two major areas of spend. ... You have a functional part of the organization that manages the physical assets, a functional part that manages the people, manages the projects, and manages the operation. Each one of those has been maturing its capability operationally in terms of capturing their data over time.

Industry standards like the Information Technology Infrastructure Library (ITIL) have been driving IT organizations to mature. They have an opportunity, as they mature, to take advantage and take it to the next level of extracting that information, and then synthesizing it to make it more useful to drive and manage IT on an ongoing basis.

Cheney: IT traditionally has done a very good job communicating with the business in the language of IT. It can tell the business how much a server costs or how much a particular desktop costs. But it has a very difficult time putting the cost of IT in the language of the business -- being able to explain to the business the cost of a particular service that the business unit is consuming. ... In order to effectively asses the value of a particular business initiative, it’s important to know the actual cost of that particular initiative or process that they are supporting. IT needs to step up in order for you to be able to provide that information, so that the business as a whole can make better investment decisions.

Wills: One of the things that business intelligence (BI) can help with at this point is to identify the gaps in the data that’s being captured at an operational level and then tie that to the business decision that you want to make. ... BI comes along and says, "Well, gee, maybe you’re not capturing enough detailed information about business justification on future projects, on future maintenance activity, or on asset acquisition or the depreciation of assets." BI is going to help you collect that and then aggregate that into the answers to the central question that a CIO or senior IT management may ask.

Cheney: By doing so, IT organizations will, in effect, cut through a lot of the silo mentality, the manual error-prone processes, and they'll begin

Virtual computing, cloud computing, and some of these trends that we see really point towards the time being now for IT organizations to get their hands around cost at a detailed level and to have a process in place for capturing those cost.

operating much more as a business that will get actionable cost information. They can directly look at how they can contribute better to driving better business outcomes. So, the end goal is to provide that capability to let IT partner better with the business.

... The HP Financial Planning Analysis offering allows organizations to understand costs from a service-based perspective. We're providing a common extract transform load (ETL) capability, so that we can pull information from data sources. We can pull from our project portfolio management (PPM) product, our asset management product, but we also understand the customers are going to have other data sources out there.

They may have other PPM products they’ve deployed. They may have ERP tools that they're using. They may have Excel spreadsheets that they need to pull information from. We'll use the ETL capabilities to pull that information into a common data warehouse where we can then go through this process of allocating cost and doing the analytics.

Wills: We really want to formalize the way they're bringing cost data in from all of these Excel spreadsheets and Access databases that sit under somebody’s desk. Somebody keeps the monthly numbers in their own spreadsheets in a different department and they are spread around in all of these different systems. We really want to formalize that.

... Part of Financial Planning and Analysis is Cost Explorer, a very traditional BI capability in terms of visualizing data that’s applied to IT cost, while you search through the data and look at it from many different dimensions, color coding, looking at variants, and having this information pop out of you.

Cheney: [Looking to the future], in many respects, cloud computing, software as a service (SaaS), and virtualization all present great opportunities to effectively leverage capital. IT organizations really need to look at it through the lens of what the intended business objectives are and how they can best leverage the capital that they have available to invest.

Wills: Virtual computing, cloud computing, and some of these trends that we see really point towards the time being now for IT organizations to get their hands around cost at a detailed level and to have a process in place for capturing those cost. The world, going forward, obviously doesn’t get simpler. It only gets more complex. IT organizations are really looked at for using capital wisely. They're really looked at as the decision makers for where to allocate that capital, and some of it’s going to be outside the four walls.
Read a full transcript of the discussion.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Learn more. Sponsor: Hewlett-Packard.

Wednesday, June 24, 2009

In 'Everything as a Service' era, quality of services and processes grows paramount, says HP's Purohit

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Read a full transcript of the discussion.

As services pervade how and what IT delivers, quality assurance early and often becomes the gatekeeper of success -- or the points of failure.

IT's job is evolving to make sure all services really work deep inside of business process -- regardless of their origins and sourcing. Quality of component services is therefore assurance of quality processes, and so the foundation of general business conduct and productivity.

Pervasive quality is no longer an option, especially as more uses of cloud-enabled services and so-called "fluid sourcing" approaches become the norm.

A large part of making quality endemic becomes organizational, of asserting quality in everything IT does, enforcing quality in everything IT's internal and external partners do. Success even now means quality in how the IT department itself is run and managed.

To better learn how service-enabled testing and quality-enabling methods of running IT differently become critical mainstays of IT success, last week at HP Software Universe in Las Vegas I interviewed Robin Purohit, vice president of Software Products at HP Software and Solutions.

Here are some excerpts:
Severe restrictions on IT budgets force you to rethink things. ... What are you really good at, and do you have the skills to do it? Where can you best leverage others outside, whether it’s for a particular service you want them to run for you or for help on doing a certain project for you? How do you make sure that you can do your job really well, and still support the needs of the business while you go and use those partners?

We believe flexible outsourcing is going to really take off, just like it did back in 2001, but this time you’ll have a variety of ways. We can procure those services over the wire on a rateable basis from whatever you want to call them -- cloud providers, software-as-a-service (SaaS) providers, whatever. IT's job will be to make sure all that stuff works inside the business process and services they’re responsible for.

If you think of it as marketplace of services that you're doing internally with maybe many outsource providers, making sure every one of those folks is doing their job well and that it comes together some way, means that you have to have quality in everything you do, quality in everything your partners do, and quality in the end process. Things like service-enabled testing, rather than service-oriented architecture (SOA), is going to become a critical mainstream attribute of quality assurance.

... What IT governance or cloud governance is going to be about is to make sure that you have a clear view of what your expectations are on both sides. Then, you have an automatic way of measuring it and tracking against it, so you can course correct or make a decision to either bring it back internally or go to another cloud provider. That’s going to be the great thing about the cloud paradigm -- you’ll have a choice of moving from one outsource provider to another.

The most important things to get right are the organizational dynamics. As you put in governance, you bring in outside parties -- maybe you’re doing things like cloud capabilities -- you're going to get resistance. You’ve got to train your team to how to embrace those things in the right way.

What we’re trying to do at HP is step up and bring advisory services to the table across everything that we do to help people think about

It’s all about allowing the CEO and their staffs to plan and strategize, construct and deliver, and operate services for the business in a co-ordinated fashion, and link all the decisions to business needs and checkpoints

how they should approach this in their organization, and where they can leverage potentially industry-best practices on the process side, to accelerate the ability for them to get the value out of some of these new initiatives that they are partaking in.

For the last 20 years, IT organizations have been building enterprise resource planning (ERP) systems and business intelligence (BI) systems that help you run the business. Now, wouldn’t it be great if there were a suite of software to run the business of IT?

It’s all about allowing the CEO and their staffs to plan and strategize, construct and deliver, and operate services for the business in a co-ordinated fashion, and link all the decisions to business needs and checkpoints. They make sure that what they do is actually what the business wanted them to do, and, by the way, that they are spending the right money on the right business priorities. We call that the service life cycle.

... There are things that we're doing with Accenture, for example, in helping on the strategy planning side, whether it’s for IT financial management or data-center transformation. We're doing things with VMware to provide the enabling glue for this data center of the future, where things are going to be very dynamically moving around to provide the best quality of service at the best cost.

... But, users want one plan. They don’t want seven plans. If there’s one thing they’re asking us to do more, faster, better, and with all of those ecosystem providers is to show them how they can get from their current state to that ideal future state, and do it in a coherent way.

There's no margin for error anymore.
Read a full transcript of the discussion.

Listen to the podcast. Download the podcast. Find it on iTunes/iPod and Podcast.com. Sponsor: Hewlett-Packard.

HP adds new consulting services to smooth the enterprise path to cloud adoption

Hewlett-Packard (HP), which already has an array of services to help customers chart their way through the challenges and opportunities of cloud computing, loaded two more arrows into its quiver yesterday with the announcement of HP Cloud Discovery Workshop and HP Cloud Roadmap Service.

The Palo Alto, Calif-based global IT giant is aiming the services at enterprise customers who are looking to efficiently drive business benefits from cloud. The goal, according to HP, is to help customers source, secure, and govern cloud services as an integral part of their IT strategy. [Disclosure: HP is a sponsor of BriefingsDirect podcasts.]

The HP Cloud Discovery Workshop is designed to help enterprise IT organizations learn about the cloud as a strategic service delivery option and how to leverage it as part of a broader IT service delivery strategy. Available in July, the workshop is designed to:
  • Educate customers on the cloud and multi-sourcing service delivery strategies

  • Outline benefits, risks and implications of the cloud within the business

  • Provide recommendations on people, process and technology for using the cloud as part of an IT and business strategy.
The HP Cloud Roadmap Service, a follow-on to the HP Cloud Discovery Workshop, offers customers a service for planning and adopting cloud as part of their service delivery strategy. The service will:
  • Provide specific recommendations for how customers should use cloud delivery and deployment models as part of their service delivery strategy

  • Recommend the right service strategy, governance and program model

  • Deliver a roadmap for cloud adoption, including a set of recommendations and benefits for what customers can achieve in practical and incremental steps
The array of cloud services currently offered to HP customers includes:
One of HP's newest offerings, prior to today's announcement, was Cloud Assure, which consists of HP services and software, including HP Application Security Center, HP Performance Center and HP Business Availability Center, and is delivered to customers via HP Software as a Service.

Cloud and upgraded computing future brightens despite overcast economy, Microsoft-sponsored survey finds

Even in this global recession, one-third of IT organizations plan to increase virtualization, including cloud-computing initiatives, in the next two years, according to a survey conducted by Harris Interactive and sponsored by Microsoft.

Seeing the downturn as an opportunity to upgrade, nearly two-thirds of 1,200 IT professionals surveyed in the U.S., U.K., Germany, and Japan plan to invest in new infrastructure technology, according to results released this week.

While news in the past year focused on budget cuts for IT, 98 percent of those surveyed by Harris are planning either to maintain or increase investment in infrastructure technologies. Top priorities for those taking the bold approach of investing and innovating despite tight budgetary times, include:
  • 42% plan increased investment in virtualization.

  • 36% plan increased investment in security.

  • 24% plan increased investment in systems management.

  • 16% plan increased investment in cloud computing.
Not surprisingly, keeping the lights on in the glass house is a bigger priority than innovation.

When the question comes down to investing in innovation versus “keeping the lights on,” the IT pros in the four countries surveyed responded that 37 percent of their budget is going to innovation while 63 percent is going to keep the lights on.

Innovation is less of a priority in the U.S. than it is in the other countries. When the percentages are broken out in the Harris report:
  • US: 29% innovation, 71% “keeping the lights on.”

  • UK: 41% innovation, 59% “keeping the lights on.”

  • Japan: 41% innovation, 59% “keeping the lights on.”

  • Germany: 35% innovation, 65% “keeping the lights on.”
These percentages may reflect the fact that U.S. IT had been hit harder by the recession than those in the other countries, said Bob Kelly, corporate vice president of infrastructure server marketing at Microsoft. But the overall percentages show a slight trend to innovation, he said during a teleconference highlight the survey results.

“The ratio of 63 to 37 percent is actually slightly changed,” Kelly said. “About two years ago when we did similar research we saw that it was 70/30. So really, in this downturn we’re seeing an increased focus on innovation.”

Further he said the current research indicates that companies are falling into two categories when it comes to dealing with the recession. One group is retrenching and just holding on to their existing IT infrastructure while waiting for the recovery. The second group actually views IT innovation strategically as a way to pull out of the recession.

“They’re seeing this as their strategic opportunity to really make hay and move their business forward to accelerate out the other side of this economic downturn,” Kelly said.

The survey confirmed Microsoft’s in-house belief that IT budgets still have room for investment in infrastructure innovations, he said. The Redmond folks hope that will include convincing corporate IT departments, which pretty much skipped the Vista era, to finally move from Windows XP to Windows 7.

More survey highlights are available at the Microsoft Core Infrastructure Optimization site.

BriefingsDirect contributor Rich Seeley provided research and editorial assistance on this post. He can be reached at RichSeeley@aol.com.

Tuesday, June 23, 2009

Web data gains some due respect as Kapow eases it into mission critical enterprise uses

In this Web 2.0 world, enterprises increasingly need data from public websites, including news sources such as CNN and even social networking sites such as Facebook, for integration into business intelligence (BI) and service-oriented and web-oriented architecture (SOA/WOA) applications.

Kapow Technologies
, which provides tools designed to speed finding, downloading, cleaning, and integrating data and content from the web, is releasing a new version of Kapow Web Data Server (formerly the Kapow Mashup Server) today. The new version includes a handy new “URL Blocking” feature that screens out web junk, such as banner ads, insuring that only data needed for the application in being downloaded. [Disclosure: Kapow Technologies is a sponsor of BriefingsDirect podcasts.]

Recently Stefan Andreasen, founder and CTO of Palo Alto, Calif.-based Kapow, demonstrated his company's value around managing data services quickly, without hand coding. At the Web 2.0 Expo in April, he demonstrated a, iPhone mashup application created using Kapow tools and IBM Rational EGL as an example of the conference's "Power of Less" theme.

“Traditionally, it would have taken at least three months and significant IT resources to create and integrate a web data source and serve it to a mobile device," Andreasen explained prior to the demo, "but today, through rapid application development technology from Kapow Technologies and IBM, two developers spent a total of three hours creating a dynamic personalized web application for the iPhone."

Kapow boasts that the Web Data Server 7.0 is “the industry’s only platform that can access, enrich and serve web data with complete assurance ― 100 percent of data, 100 percent of the time.”

The value is more than for convenience. More than ever, web-based content plays an essential role in many business processes and analytical presentations. Doing operational and business ecology business intelligence (BI) requires fast and easy integration of web-based content and data assets.

With Kapow's patented visual development and Web data automation platform customers can gain data access to any intranet or extranet business application, as well as any website or application on the web, the company says. This cuts out manual approaches, now quite common.

Rapid data access is vital for today's agile application development, like mobile, WOA and other types of agile business applications, Andreasen says. Regardless of whether

. . . today, through rapid application development technology from Kapow Technologies and IBM, two developers spent a total of three hours creating a dynamic personalized Web application for the iPhone.

or not developers have programmatic access via an application programming interface (API), Kapow provides easy access to enterprise and public web data, then extracts and transforms it into a standard web service or data feed, he explains.

A key element in the data server are the Kapow robots that the company says “use standard web protocols and security mechanisms to automate the navigation and interaction with any web application or website, providing secure and reliable access to the underlying data and business logic.”

Offering an example of an application built with its technologies, the company points to a hypothetical sales app providing “a full 360-degree view of prospects and customers by automatically extracting data from internal customer relationship management (CRM) systems, subscription data feeds such as Edgar Online, corporate sites, blogs and social media sites including LinkedIn, Technorati and Facebook.”

New features in the Kapow Web Data Server 7.0 version include:
  • "100 Percent Browser Engine Compliance," which handles complex web data sources, including JavaScript and AJAX intensive Websites.

  • Intuitive point-and-click integrated development environment (IDE) for “surgical data extraction accuracy with no coding.”

  • Scalability improvements offering real-time performance optimization and the ability to download large file downloads directly to disk for enterprise scale projects

  • Browser-Based Scheduler, which provides automation of data refresh and synchronization schedules.

  • Authentication for RoboServer, which provides “seamless integration with existing enterprise security and authentication systems.”
Availability and Pricing

Further information and pricing is availabile at http://kapowtech.com/index.php/products/overview.

BriefingsDirect contributor Rich Seeley provided research and editorial assistance on this post. He can be reached at RichSeeley@aol.com.