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.
As businesses get larger, and the need for effective alignment of the business with technology capabilities grows, enterprise architecture becomes an essential competency. But in China, many CIOs are struggling with setting up a high-performance enterprise architecture program to support their business strategies in a disruptive market landscape. This seems equally true for state-owned enterprises (SOEs) and multinational companies (MNCs).
To gain a better understanding of the problem, I had an interesting conversation with Le Yao, general secretary of Center for Informatization and Information Management (CIIM) and director of the CIO program at Peking University. Le Yao is one of the first pioneers introducing The Open Group Architecture Framework (TOGAF) into China to help address the above challenges. I believe that the five-year journey of TOGAF in China is just an early beginning for EA, and companies in the China market need relevant EA insights to help them support their business:
Taking an EA course is one thing; practicing EA is something else. Companies taking TOGAF courses in China seem to be aiming more at sales enablement than practicing EA internally. MNCs like IBM, Accenture, and HP are more likely to try to infuse the essence of the methodology into their PowerPoint slides for marketing and/or bidding purposes; IBM has also invited channel partners such as Neusoft, Digital China, CS&S, and Asiainfo to take the training.
TOGAF is too high-level to be relevant. End user trainees learning the enterprise architecture framework that Yao’s team introduced in China in 2007 found it to be too high-level and conceptual. Also, the trainers only went through what was written in the textbook without using industry-specific cases or practice-related information — making the training less relevant and difficult to apply.
To publish this post, I must first discredit myself. I'm 42, and while I love what I do for a living, Michael Dell is 47 and his company was already doing $1 million a day in business by the time he was 31. I look at guys like that and think: "What the h*** have I been doing with my time?!?" Nevertheless, Dell is a company I've followed more closely than any other but Apple since the mid-2000s, and in the past two years I've had the opportunity to meet with several Dell executives and employees - from Montpellier, France to Austin, Texas.
Because I cover both PC hardware as well as client virtualization here at Forrester, it puts me in regular contact with Dell customers who will inevitably ask what we as a firm think about Dell's latest announcements to go private, just as they have for HP these past several quarters since the circus started over there with Mr. Apotheker. Hopefully what follows here is information and analysis that you as an I&O leader can rely on to develop your own perspective on Dell with more clarity.
Complexity is Dell's enemy
The complexity of Dell as an organization right now is enormous. They have been on a "Quest" to re-invent themselves and go from PC and server vendor, to an end-to-end solutions vendor with the hope that their chief differentiator could be unique software to drive more repeatable solutions delivery, and in turn lower solutions cost. I say the word 'hope' deliberately because to do that means focusing most of their efforts around a handful of solutions that no other vendor could provide. It's a massive undertaking because as a public company, they have to do this while keeping cash-flow going in their lines of business from each acquisition and growing those while they develop the focused solutions. So far, they haven't.
When I returned to Forrester in mid-2010, one of the first blog posts I wrote was about Oracle’s new roadmap for SPARC and Solaris, catalyzed by numerous client inquiries and other interactions in which Oracle’s real level of commitment to future SPARC hardware was the topic of discussion. In most cases I could describe the customer mood as skeptical at best, and panicked and committed to migration off of SPARC and Solaris at worst. Nonetheless, after some time spent with Oracle management, I expressed my improved confidence in the new hardware team that Oracle had assembled and their new roadmap for SPARC processors after the successive debacles of the UltraSPARC-5 and Rock processors under Sun’s stewardship.
Two and a half years later, it is obvious that Oracle has delivered on its commitments regarding SPARC and is continuing its investments in SPARC CPU and system design as well as its Solaris OS technology. The latest evolution of SPARC technology, the SPARC T5 and the soon-to-be-announced M5, continue the evolution and design practices set forth by Oracle’s Rick Hetherington in 2010 — incremental evolution of a common set of SPARC cores, differentiation by variation of core count, threads and cache as opposed to fundamental architecture, and a reliable multi-year performance progression of cores and system scalability.
HP seems to be on a tear, bouncing from litigation with one of its historically strongest partners to multiple CEOs in the last few years, continued layoffs, and a recent massive write-down of its EDS purchase. And, as we learned last week, the circus has not left town. The latest “oops” is an $8.8 billion write-down for its purchase of Autonomy, under the brief and ill-fated leadership of Léo Apotheker, combined with allegations of serious fraud on the part of Autonomy during the acquisition process.
The eventual outcome of this latest fiasco will be fun to watch, with many interesting sideshows along the way, including:
Whose fault is it? Can they blame it on Léo, or will it spill over onto Meg Whitman, who was on the board and approved it?
Was there really fraud involved?
If so, how did HP miss it? What about all the internal and external people involved in due diligence of this acquisition? I’ve been on the inside of attempted acquisitions at HP, and there were always many more people around with the power to say “no” than there were people who were trying to move the company forward with innovative acquisitions, and the most persistent and compulsive of the group were the various finance groups involved. It’s really hard to see how they could have missed a little $5 billion discrepancy in revenues, but that’s just my opinion — I was usually the one trying to get around the finance guys. :)
On Tuesday November 8, after more than a year of pre-announcement disclosures that eventually left very little to the imagination, Intel finally announced the Itanium 9500, formerly known as Poulson. Added to this was the big surprise of HP announcing a refresh of its current line of Integrity servers, from blades to the large Superdome servers, with the new Itanium 9500.
As noted in an earlier post, the Itanium 9500 offers considerable performance improvements over its predecessors, and instantiated in HP’s new Integrity line it is positioned as delivering between 2X and 3X the performance per socket as previous Itanium 9300 (Tukwilla) systems at approximately the same price. For those remaining committed to Itanium and its attendant OS platforms, notably HP-UX, this is unmitigated good news. The fly in the ointment (I have never seen a fly in any ointment, but it does sound gross), of course, is HP’s dispute with Oracle. Despite the initial judgment in HP’s favor, the trial is a) not over yet, and b) Oracle has already filed for an early appeal of the initial verdict, which would ordinarily have to wait until the second phase of the trial, scheduled for next year, to finish. The net takeaway is that Oracle’s future availability on Itanium and HP-UX is not yet assured, so we really cannot advise the large number of Oracle users who will require Oracle 12 and later versions to relax yet.
Nathan Bedford Forrest, a Confederate general of despicable ideology and consummate tactics, spoke of “keepin up the skeer,” applying continued pressure to opponents to prevent them from regrouping and counterattacking. POWER7+, the most recent version of IBM’s POWER architecture, anticipated as a follow-up to the POWER7 for almost a year, was finally announced this week, and appears to be “keepin up the skeer” in terms of its competitive potential for IBM POWER-based systems. In short, it is a hot piece of technology that will keep existing IBM users happy and should help IBM maintain its impressive momentum in the Unix systems segment.
For the chip heads, the CPU is implemented in a 32 NM process, the same as Intel’s upcoming Poulson, and embodies some interesting evolutions in high-end chip design, including:
Use of DRAM instead of SRAM — IBM has pioneered the use of embedded DRAM (eDRAM) as embedded L3 cache instead of the more standard and faster SRAM. In exchange for the loss of speed, eDRAM requires fewer transistors and lower power, allowing IBM to pack a total of 80 MB (a lot) of shared L3 cache, far more than any other product has ever sported.
[For some reason this has been unpublished since April — so here it is well after AMD announced its next spin of the SeaMicro product.]
At its recent financial analyst day, AMD indicated that it intended to differentiate itself by creating products that were advantaged in niche markets, with specific mention, among other segments, of servers, and to generally shake up the trench warfare that has had it on the losing side of its lifelong battle with Intel (my interpretation, not AMD management’s words). Today, at least for the server side of the business, it made a move that can potentially offer it visibility and differentiation by acquiring innovative server startup SeaMicro.
SeaMicro has attracted our attention since its appearance (blog post 1, blog post 2) with its innovative architecture that dramatically reduces power and improves density by sharing components like I/O adapters, disks, and even BIOS over a proprietary fabric. The irony here is that SeaMicro came to market with a tight alignment with Intel, who at one point even introduced a special dual-core packaging of its Atom CPU to allow SeaMicro to improve its density and power efficiency. Most recently SeaMicro and Intel announced a new model that featured Xeon CPUs to address the more mainstream segments that were not a part of SeaMicro’s original Atom-based offering.
This week, the New York Times ran a series of articles about data center power use (and abuse) “Power, Pollution and the Internet” (http://nyti.ms/Ojd9BV) and “Data Barns in a Farm Town, Gobbling Power and Flexing Muscle” (http://nyti.ms/RQDb0a). Among the claims made in the articles were that data centers were “only using 6 to 12 % of the energy powering their servers to deliver useful computation. Like a lot of media broadsides, the reality is more complex than the dramatic claims made in these articles. Technically they are correct in claiming that of the electricity going to a server, only a very small fraction is used to perform useful work, but this dramatic claim is not a fair representation of the overall efficiency picture. The Times analysis fails to take into consideration that not all of the power in the data center goes to servers, so the claim of 6% efficiency of the servers is not representative of the real operational efficiency of the complete data center.
On the other hand, while I think the Times chooses drama over even-keeled reporting, the actual picture for even a well-run data center is not as good as its proponents would claim. Consider:
A new data center with a PUE of 1.2 (very efficient), with 83% of the power going to IT workloads.
Then assume that 60% of the remaining power goes to servers (storage and network get the rest), for a net of almost 50% of the power going into servers. If the servers are running at an average utilization of 10%, then only 10% of 50%, or 5% of the power is actually going to real IT processing. Of course, the real "IT number" is the server + plus storage + network, so depending on how you account for them, the IT usage could be as high as 38% (.83*.4 + .05).
This week the California courts handed down a nice present for HP — a verdict confirming that Oracle was required to continue to deliver its software on HP’s Itanium-based Integrity servers. This was a major victory for HP, on the face of it giving them the prize they sought — continued availability of Oracle’s eponymous database on their high-end systems.
However, HP’s customers should not immediately assume that everything has returned to a “status quo ante.” Once Humpty Dumpty has fallen off the wall it is very difficult to put the pieces together again. As I see it, there are still three major elephants in the room that HP users must acknowledge before they make any decisions:
Oracle will appeal, and there is no guarantee of the outcome. The verdict could be upheld or it could be reversed. If it is upheld, then that represents a further delay in the start date from which Oracle will be measured for its compliance with the court ordered development. Oracle will also continue to press its counterclaims against HP, but those do not directly relate to the continued development or Oracle software on Itanium.
Itanium is still nearing the end of its road map. A reasonable interpretation of the road map tea leaves that have been exposed puts the final Itanium release at about 2015 unless Intel decides to artificially split Kittson into two separate releases. Integrity customers must take this into account as they buy into the architecture in the last few years of Itanium’s life, although HP can be depended on to offer high-quality support for a decade after the last Itanium CPU rolls off Intel’s fab lines. HP has declared its intention to produce Integrity-level x86 systems, but OS support intentions are currently stated as Linux and Windows, not HP-UX.