Emerson Network Power today announced that it is entering into a significant partnership with IBM to both integrate Emerson’s new Trellis DCIM suite into IBM’s ITSM products as well as to jointly sell Trellis to IBM customers. This partnership has the potential to reshape the DCIM market segment for several reasons:
Connection to enterprise IT — Emerson has sold a lot of chillers, UPS and PDU equipment and has tremendous cachet with facilities types, but they don’t have a lot of people who know how to talk IT. IBM has these people in spades.
IBM can use a DCIM offering — IBM, despite being a huge player in the IT infrastructure and data center space, does not have a DCIM product. Its Maximo product seems to be more of a dressed up asset management product, and this partnership is an acknowledgement of the fact that to build a full-fledged DCIM product would have been both expensive and time-consuming.
IBM adds sales bandwidth — My belief is that the development of the DCIM market has been delivery bandwidth constrained. Market leaders Nlyte, Emerson and Schneider do not have enough people to address the emerging total demand, and the host of smaller players are even further behind. IBM has the potential to massively multiply Emerson’s ability to deliver to the market.
I was part of a Forrester Team that recently completed a multi-country rollout tour with Emerson Network Power as they formally released their Trellis DCIM product, a comprehensive DCIM environment many years in the building. One of the key takeaways was both an affirmation of our fundamental assertions about DCIM, plus hints about its popularity and attraction for potential customers that in some ways expand on the original value proposition we envisioned. Our audiences were in total approximately 500 selected data center users, most current Emerson customers of some sort, plus various partners.
The audiences uniformly supported the fundamental thesis around DCIM – there exists a strong underlying demand for integrated DCIM products, with a strong proximal emphasis on optimizing power and cooling to save opex and avoid the major disruption and capex of new data center capacity. Additionally, the composition of the audiences supported our contention that these tools would have multiple stakeholders in the enterprise. As expected, the groups were heavy with core Infrastructure & Operations types – the people who have to plan, provision and operate the data center infrastructure to deliver the services needed for their company’s operations. What was heartening was the strong minority presence of facilities people, ranging from 10% to 30% of the attendees, along with a sprinkling of corporate finance and real-estate executives. Informal conversations with a number of these people gave us consistent input that they understood the need, and in some cases were formerly tasked by their executives, to work more closely with the I&O group. All expressed the desire for an integrated tool to help with this.
Only a few months since I authored Forrester’s "Market Overview: Data Center Infrastructure Management Solutions," significant changes merit some additional commentary.
The major vendor drama of the “season” is the continued evolution of Schneider and Emerson’s DCIM product rollout. Since Schneider’s worldwide analyst conference in Paris last week, we now have pretty good visibility into both major vendors' strategy and products. In a nutshell, we have two very large players, both with large installed bases of data center customers, and both selling a vision of an integrated modular DCIM framework. More importantly it appears that both vendors can deliver on this promise. That is the good news. The bad news is that their offerings are highly overlapped, and for most potential customers the choice will be a difficult one. My working theory is that whoever has the largest footprint of equipment will have an advantage, and that a lot depends on the relative execution of their field marketing and sales organizations as both companies rush to turn 1000s of salespeople and partners loose on the world with these products. This will be a classic market share play, with the smart strategy being to sacrifice margin for market share, since DCIM solutions have a high probability of pulling through services, and usually involve some annuity revenue stream from support and update fees.
Today, after two of its largest partners have already announced their systems portfolios that will use it, Intel finally announced one of the worst-kept secrets in the industry: the Xeon E5-2600 family of processors.
OK, now that I’ve got in my jab at the absurdity of the announcement scheduling, let’s look at the thing itself. In a nutshell, these new processors, based on the previous-generation 32 nm production process of the Xeon 5600 series but incorporating the new “Sandy Bridge” architecture, are, in fact, a big deal. They incorporate several architectural innovations and will bring major improvements in power efficiency and performance to servers. Highlights include:
Performance improvements on selected benchmarks of up to 80% above the previous Xeon 5600 CPUs, apparently due to both improved CPU architecture and larger memory capacity (up to 24 DIMMs at 32 GB per DIMM equals a whopping 768 GB capacity for a two-socket, eight-core/socket server).
Improved I/O architecture, including an on-chip PCIe 3 controller and a special mode that allows I/O controllers to write directly to the CPU cache without a round trip to memory — a feature that only a handful of I/O device developers will use, but one that contributes to improved I/O performance and lowers CPU overhead during PCIe I/O.
Significantly improved energy efficiency, with the SPECpower_ssj2008 benchmark showing a 50% improvement in performance per watt over previous models.
I recently published an update on power and cooling in the data center (http://www.forrester.com/go?docid=60817), and as I review it online, I am struck by the combination of old and new. The old – the evolution of semiconductor technology, the increasingly elegant attempts to design systems and components that can be incrementally throttled, and the increasingly sophisticated construction of the actual data centers themselves, with increasing modularity and physical efficiency of power and cooling.
The new is the incredible momentum I see behind Data Center Infrastructure Management software. In a few short years, DCIM solutions have gone from simple aggregated viewing dashboards to complex software that understands tens of thousands of components, collects, filters and analyzes data from thousands of sensors in a data center (a single CRAC may have in excess of 20 sensors, a server over a dozen, etc.) and understands the relationships between components well enough to proactively raise alarms, model potential workload placement and make recommendations about prospective changes.
Of all the technologies reviewed in the document, DCIM offers one of the highest potentials for improving overall efficiency without sacrificing reliability or scalability of the enterprise data center. While the various DCIM suppliers are still experimenting with business models, I think that it is almost essential for any data center operations group that expects significant change, be it growth, shrinkage, migration or a major consolidation or cloud project, to invest in DCIM software. DCIM consumers can expect to see major competitive action among the current suppliers, and there is a strong potential for additional consolidation.
My research team at Forrester helps tech vendor strategists anticipate and navigate in rapidly changing market environments. We can't take a siloed view on specific product and service categories, but rather broaden our perspective in order to trace cross-market dynamics around key issues such as sustainability, globalization, collaboration, mobility, and cloud. This puts tech vendors in better positions to act on emerging demand signals, competitive scenarios, and opportunities to select best-fit partner, channel, or acquisition targets.
The market for dedicated solutions and services that help companies manage their energy, emissions, and overall sustainability strategy is still nascent. The evolution of sustainability at larger software and IT service vendors started with their internal efforts, which is an important factor framing their portfolio and go-to-market strategies.
As a result, there are still a significant number of vendors that are converting their internal capabilities to analyze, define, and implement sustainability into customer-facing software and/or service portfolios. These portfolios of services go well beyond green IT, increasingly focused to serve clients wrestling with hot topics such as enterprise carbon and energy management (ECEM), green supply chain, and sustainability performance management.
My colleague, Daniel Krauss, and I have recently completed a comprehensive round of interviews and analysis with many different players offering sustainability consulting services, including software, IT and business services, hardware, and even industrial companies (see Figure 1).