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.
As you’re all well aware by now, a perfect storm of technology innovations — including cloud, analytics, mobile, and social — is fundamentally disrupting the way your company engages with its customers (as well as employees and partners). For service providers in particular, the main challenge is understanding how to best leverage these technology innovations to remain relevant and ultimately generate more business value. So it’s exciting to see a service provider like Cisco Services come up with new offerings that respond to this challenge in innovative ways.
I met with Cisco Services Asia Pacific Japan and China (APJC) executives last week in Seoul to discuss their strategy in Asia. I wanted to highlight a few takeaways that I believe will be important for sourcing professionals in Asia and beyond:
Cisco Services is a key enabler of Cisco’s overall transformation. Cisco Services used to be a captive consulting organization providing support and technology services for a product company. In a recent analyst call, John Chambers identified Cisco Services as one of the main levers that will help Cisco transition from a transaction-oriented to an annuity-based business model and help the company become the largest IT company globally. The company’s aim is for Cisco Services to represent 24-26% of total revenues in the next 3-5 years. These goals are extremely audacious; achieving them will require huge efforts from Cisco, including some targeted acquisitions in the services space.
Early this year, on January 15, I published our first research on testing for the Agile and Lean playbook. Connected to that research, my colleague Margo Visitacion and I also published a self-assessment testing toolkit. The toolkit helps app-dev and testing leaders understand how mature their current testing practices and organization are for Agile and Lean development.
The Agile Testing Self-Assessment Toolkit
So what are the necessary elements to assess Agile testing maturity? Looking to compromise between simplicity and comprehensiveness, we focused on the following:
Testing team behavior. Some of the questions we ask here look at collaboration around testing among all roles in the Scrum teams. We also ask about unit testing: Is it a mandatory task for developers? Are all of the repeititive tests that can be run over and over at each regression testing automated?
Organization. In our earlier Agile testing research, we noticed a change in the way testing gets organized when Agile is being adopted. So here we look at the role test managers are playing: Are they focusing more on being coaches and change agents to accelerate adoption of the new Agile testing practices? Or are managers still operating in a command-and-control regime? Is the number of manual testers decreasing? Are testing centers of excellence (TCOEs) shifting to become testing practice centers of excellence (TPCOEs)?
DevOps is a movement for developers and operations professionals that encourages more collaboration and release automation. Why? To keep up with the faster application delivery pace of Agile. In fact, with Agile, as development teams deliver faster and in shorter cycles, IT operations finds itself unprepared to keep up with the new pace. For operations teams, managing a continuous stream of software delivery with traditional manual-based processes is Mission Impossible. Vendors have responded to DevOps requirements with more automation in their release management, delivery, and deployment tools. However, there is a key process that sits between development and operations that seems to have been given little attention: testing.
In fact, some key testing activities, like integration testing and end-to-end performance testing, are caught right in the middle of the handover process between development and operations. In the Agile and Lean playbook, I’ve dedicated my latest research precisely to Agile testing, because I’ve seen testing as the black beast in many transformations to Agile because it was initially ignored.
The most notable news to come out of the VMworld conference last week was the coronation of Pat Gelsinger as the new CEO of VMware. His tenure officially started over the weekend, on September 1, to be exact.
For those who don’t know Pat’s career, he gained fame at Intel as the personification of the x86 processor family. It’s unfair to pick a single person as the father of the modern x86 architecture, but if you had to pick just one person, it’s probably Pat. He then grew to become CTO, and eventually ran the Digital Enterprise Group. This group accounted for 55% of Intel’s US$37.586B in revenue according to its 2008 annual report, the last full year of Pat’s tenure. EMC poached him from Intel in 2009, naming him president of the Information Infrastructure Products group. EMC’s performance since then has been very strong, with a 17.5% YoY revenue increase in its latest annual report. Pat’s group contributed 53.7% of that revenue. While he’s a geek at heart (his early work), he proved without a doubt that he also has the business execution chops (his later work). Both will serve him well at VMware, especially the latter.
Bridgekeeper: "What ... is your name?"
Traveler: "John Swainson of Dell."
Bridgekeeper: "What ... is your quest?"
Traveler: "Hey! That's not a bad idea!"
We suspect Dell's process was more methodical than that!
This acquisition was not a surprise, of course. All along, it has been obvious that Dell needed stronger assets in software as it continues on its quest to avoid the Gorge of Eternal Peril that is spanned by the Bridge of Death. When the company announced that John Swainson was joining to lead the newly formed software group, astute industry watchers knew the next steps would include an ambitious acquisition. We predicted such an acquisition would be one of Swainson's first moves, and after only four months on the job, indeed it was.
The Dell brand is one of the most recognizable in technology. It was born a hardware company in 1984 and deservedly rocketed to fame, but it has always been about the hardware. In 2009, its big Perot Systems acquisition marked the first real departure from this hardware heritage. While it made numerous software acquisitions, including some good ones like Scalent, Boomi, and KACE, it remains a marginal player in software. That is about to change.
Ciscoannounced today its intent to acquire NewScale, a small, but well-respected automation software vendor. The financial terms were not disclosed, but it is a small deal in terms of money spent. It is big in the sense that Cisco needed the kind of capabilities offered by NewScale, and NewScale has proven to be one of the most innovative and visible players in that market segment.
The market segment in question is what has been described as “the tip of the iceberg” for the advanced automation suites needed to create and operate cloud computing services. The “tip” refers to the part of the overall suite that is exposed to customers, while the majority of the “magic” of cloud automation is hidden from view – as it should be. The main capabilities offered by NewScale deal with building and managing the service catalog and providing a self-service front end that allows cloud consumers to request their own services based on this catalog of available services. Forrester has been bullish on these capabilities because they are the customer-facing side of cloud – the most important aspect – whereas most of the cloud focus has been directed at the “back end” technologies such as virtual server deployment and workload migration. These are certainly important, but a cloud is not a cloud unless the consumers of those services can trigger their deployment on their own. This is the true power of NewScale, one of the best in this sub-segment.
Like many movements before it, IT is rapidly evolving to an industrial model. A process or profession becomes industrialized when it matures from an art form to a widespread, repeatable function with predictable result and accelerated by technology to achieve far higher levels of productivity. Results must be deterministic (trustworthy) and execution must be fast and nimble, two related but different qualities. Customer satisfaction need not be addressed directly because reliability and speed result in lower costs and higher satisfaction.
IT should learn from agriculture and manufacturing, which have perfected industrialization. In agriculture, productivity is orders of magnitude better. Genetic engineering made crops resistant to pests and environmental extremes such as droughts while simultaneously improving consistency. The industrialized evolution of farming means we can feed an expanding population with fewer farmers. It has benefits in nearly every facet of agricultural production.
Manufacturing process improvements like the assembly line and just-in-time manufacturing combined with automation and statistical quality control to ensure that we can make products faster and more consistently, at a lower cost. Most of the products we use could not exist without an industrialized model.