Technology and business leaders don’t always fully understand the true costs and risks associated with both building andoperating a data center. Data center facilities are one of the largest line items in an IT infrastructure budget, and these costs can run into the tens or even hundreds of millions over a data center’s lifetime. If you’re currently looking for more data center capacity, before you make a decision, it’s important to understand the cost and risk implications of your choice and justify the business case to your executives and budget holders.
Using Forrester’s Total Economic ImpactTM (TEI) methodology, we built an ROI calculator to help infrastructure & operations professionals evaluate three approaches to greenfield data center implementations: traditional builds, modular builds, and colocation. In this model, we quantify the costs, risks, and benefits associated with each scenario and calculate the net present value (NPV) of this investment over 15 years.
It's that time of year again - the US Open is under way in New York City, the end of summer looms, and Forrester Research's third annual joint survey with itSMF-USA to understand the state of ITSM is out in the field and calling for your participation!
Last year, the year-over-year data collected gave us some good and not-so-good news.
Compensation for ITSM professionals overwhelmingly increased.
ITIL's positive influence on the organization was compelling with over 70% of service management professionals agreeing the best practice framework improved productivity, and 65% finding it helps to deliver better service quality.
25% of survey takers did not know whether their incident mean time to resolution (MTTR) had increased, decreased, or remained the same over the past year.
A whopping 31% of them did not know what percentage of incidents were the result of a change to infrastructure, applications, processes or tools!
Microsoft CEO Steve Ballmer announced today that he will be retiring within 12 months. My Forrester colleague Ted Schadler laid out some of the strategic challenges his successor will face in coming years. Here, I add to Ted's analysis.
Microsoft remains one of the great global technology companies, a solid member of theFortune 50. Although it no longer enjoys the reputation for innovation it did in the 1990s, it’s a critical player in every aspect of end user computing (including devices, software, browsers, development platforms, and services) and of other technology product and service markets.
As CEO, Steve Ballmer solidified Microsoft’s stronghold in enterprise solutions. Microsoft built and maintained — or built and made itself into a key challenger — in several enterprise markets. Microsoft Office remains a titanic success, even as it faces lower-cost competition from Google and others. Windows Azure has been cultivated into a full-fledged contender in the cloud services market. Exchange remains entrenched in enterprises, as do many of Microsoft’s Server and Tools offerings. Microsoft remains the company to beat in some of these markets, and has become a formidable challenger (e.g. as Azure takes on Amazon Web Services) in others.
I recently spent an hour with Hewlett-Packard executive Stephen DeWitt, a longtime leader at the company who is currently leading up HP’s enterprise marketing efforts. I wanted to learn more about the value proposition of products and services HP is selling to infrastructure & operations professionals and to understand HP’s vision of the future for enterprise customers.
“It’s easy to think of HP as a ‘PC and printing’ company – and we’re obviously a huge player in those traditional product areas – but we have a broader vision for enterprises and for workers…all built around the new style of IT,” Stephen told me. “Our new enterprise campaign, for example, is going to introduce people to the degree of breakthrough innovation we are providing customers today, and how co-innovating with HP can empower your business in the dramatically changing world ahead.”
Q: What’s HP’s overall vision for enterprise solutions? How do you make that vision tangible and concrete for your customers?
HP is a portfolio company, from core to periphery, from cloud to the device. We work very closely with our customers to provide end to end solutions rather than just ad hoc or best of breed products, and we focus on solving for business outcomes and co-innovating with our customers.
However, this issue extends beyond IBM, Oracle and EMC. There is talk that Chinese government entities and state-owned enterprises (SOEs) will begin to shun foreign IT vendors in their IT environment, and instead replace them with local vendor solutions. A number of foreign vendors are already feeling the heat. In Cisco’s FY13 Q4 financial statement last week, its China bookings declined 6% YoY. We have observed similar trends for IBM in China, and believe it is a headwind that will challenge MNC vendors to further expand their China businesses.
While it has never been confirmed officially, the latest development seems to suggest the possibility of the Chinese government formalizing it as policy. In the past couple of months, I have already seen SOEs seeking out local suppliers, like Huawei, Inspur, Lenovo, and ZTE. The primary considerations were:
· CIOs are concerned that critical business and customer data might be compromised after the Snowden revelation.
· CIOs are cautious about holding off buying foreign equipment, pending new governmental policy in the coming years. Hence, they want to prepare to protect their current investments.
If you want to be the best in data center operations you are right to benchmark yourself against the cloud computing leaders – just don’t delude yourself into thinking you can match them.
In our latest research report, Rich Fichera and I updated a 2007 study that looked at what enterprise infrastructure leaders could learn from the best in the cloud and hosting market. We found that while they may have greater buying power, deeper IT R&D and huge security teams, many of their best practices apply to a standard enterprise data center – or at least part of it.
There are several key differences between you and the cloud leaders, many of which are detailed in the table below. Perhaps the starkest however is that for the clouds, they are the product. And that means they get budgetary priority and R&D attention that I&O leaders in the enterprise can only dream about.
Last week there were several of outages that got me thinking more about the cost of downtime. I get this question a lot: what is the industry average cost of downtime? I hate answering "it depends," but that's the truth. So much depends on the organization, the industry, the duration of the downtime, the number of people impacted, etc. And not all of it is about dollars and sense. Reputation, customer retention, employee satisfaction, and overall confidence can be shaken by even a short outage. Take, for example, the New York Times' mysterious outage on August 14, 2013, of around two hours. While two hours might not seem like much, in the middle of a news-heavy weekday, it made a lasting impression. The stock dropped, twitter exploded, and the Wall Street Journal dropped their paywall to try and capture readers. In this case, I argue the biggest impact of downtime was not the drop in stock price, but the loss of confidence and loss of competitive advantage.
by Clement Teo, Bryan Wang, Katyayan Gupta (this blog is also published by Clement Teo)
We recently met with Huawei executives during the launch of its latest product in China, the S12700 switch. The product, which ships in limited quantity in Q1 2014 is designed for managing campus networks, and acts as a core and aggregation switch in the heart of campus networks. While wired/wireless convergence, policy control and management come as standard features, the draw is the Ethernet Network Processor (ENP). The ENP competes against merchant silicon in competitive switch products, and Huawei claims to be able to deliver new programmable services in six months, compared to one to three years for competitive application-specific integrated circuit (ASIC) chips. This helps IT managers respond quicker to the needs of campus network users, especially in the age of BYOD, Big Data, and cloud computing.
When people think of futuristic user interfaces (Forrester analysts included), they often invoke the 2002 Tom Cruise movie Minority Report. The imagery in the movie offers a compelling vision of how next-generation technologies – gestural control, voice command, 3D visuals, multi-screen interactions – can empower computing experiences.
Where did Minority Report get this vision? From a man named John Underkoffler, Chief Scientist at a company called Oblong. He designed the computer interfaces in the film.
I had the pleasure of visiting Oblong’s Boston office recently, where I saw demonstrations of several technologies. Most interesting to me was the company’s Mezzanine offering, an “infopresence” conference room that the company sells to enterprises today.
The solution involves equipping a conference room (or multiples – it works as a long distance telepresence location) with a number of monitors (5 in the room I visited), teleconferencing equipment (industry standard products work well), and ceiling-mounted sensors (for interpreting gestural controls), and a whiteboard (a physical one, but visible to a camera). Workers control the room with a wand, which works via both gestural controls and a button.
Putting all of these things together, workers can collaborate both within the room itself and with remote teams (or remote individual team members). The resulting experience, in my view, offers two sets of benefits:
In our new report, Michael O'Grady and I outline our latest update of the tablet forecast. While in previous years we focused on the North American consumer market, this year’s report expands the analysis to include our viewpoint on the global market for both consumers and businesses.
Fundamentally, as we have been writing about for some time, we believe tablet sales and penetration will continue to grow rapidly. In developed markets, they will streak past “mass market” status to become what we term “mainstay” devices – a third form factor carried by most online consumers. Our forecast indicates that tablets have hit hyper-growth. By 2017, we find that:
In North America (US/Canada),60% of online consumers will own a tablet by 2017, making it a majority device. In Europe, 42% of online consumers will own one. While penetration rates won’t reach even 25% in aggregate in the developing world by that date, tablets will reach majority status in leading Asian markets like Singapore and South Korea.