Last month I wrote a short blog post introducing the new US Digital Services Playbook. I'm happy to announce that we're going to be publishing a series of short reports that take a closer look at the CIO's role in implementing the plays in the playbook.
The first of these client briefs, published today, summarizes why we believe CIOs should study the playbook and incorporate its plays into their team's standard operating practices.
The remaining briefs will take each of the four play categories and drill down into the implications for the CIO and their teams.
In a surprising move, HP and Cisco announced that HP will be reselling a custom-developed Cisco Nexus switch, the “Cisco Nexus B22 Fabric Extender for HP,” commonly called a FEX in Cisco speak. What is surprising about this is that the FEX is a key component of Cisco’s Nexus switch technology as well as an integral component of Cisco’s UCS server product, the introduction of which has pitted the two companies in direct and bitter competition in the heart of HP’s previously sacrosanct server segment. Combined with HP’s increasing focus on networking, the companies have not been the best of buds for the past couple of years. Accordingly, this announcement really makes us sit up and take notice.
So what drove this seeming rapprochement? The coined word “coopetition” lacks the flavor of the German “Realpolitik,” but the essence is the same – both sides profit from accommodating a real demand from customers for Cisco network technology in HP BladeSystem servers. And like the best of deals, both sides walk away thinking that they got the best of the other. HP answers the demands of what is probably a sizable fraction of their customer base for better interoperability with Cisco Nexus-based networks, and in doing so expects to head off customer defections to Cisco UCS servers. Cisco gets both money (the B22 starts at around $10,000 per module and most HP BladeSystem customers who use it will probably buy at least two per enclosure, so making a rough guess at OEM pricing, Cisco is going to make as much as $8,000 to $10,000 per chassis from HP BladeSystems that use the B22) from the sale of the Cisco-branded modules as well as exposure of Cisco technology to HP customers, with the hope that they will consider UCS for future requirements.
Federal CIO Vivek Kundra’s recent presentation to the Brookings Institution outlined how the US administration is moving to a “Cloud-first” approach to consolidating the US government technology infrastructure. Since the US government is the largest buyer of information technology in the world, spending over $76 billion supporting over 10,000 systems, we can be sure that a Cloud-first policy will have a major impact on technology vendors and the services they offer - not only to the US government but to all IT buyers.