How could a company as mighty and diverse as HP have had so many issues with executive management?

HP stumbled mightily in 2011, and it had nothing to do with product or people. Even sales remained strong, though the PC business is changing. HP’s mighty stumble was a crisis of confidence due to a chain of shenanigans at the very top. This culminated with the short reign of Léo Apotheker, leaving HP to reassure the market of its strategy.

HP And the Enterprise IT Industry

Sometimes, it’s hard to get a sense of scale when talking about very large things. How big is the solar system? How far away is the nearest star? The same is true of earthly things, exemplified by popular misconceptions about the global financial crisis. It’s difficult for people to understand just how much money a trillion dollars is.

In my little world of enterprise storage, it’s difficult to reconcile “big storage” players like EMC and NetApp with “big storage and everything else” players like HP, Dell, Oracle and IBM. Sure, EMC and NetApp lead the pack in terms of market share, but they’re nowhere near as large as the integrated players. HP has more than 7 times the revenue of EMC, which makes 3 times more than NetApp.

This old slide might need updating, but you get the picture...

HP is an incredibly diverse company, dominant in the PC, printing, and blade server market and top 5 just about everywhere else, including networking, services, and enterprise storage. And HP has nearly 325,000 employees, all working to move the company forward in one direction or another.

NetApp is a motorcycle, with one drive wheel pushing it forward at high speed; HP is more like NASA’s shuttle crawler-transporter, a 16 motor mammoth. Single-purpose companies can be agile, but they can also be derailed by market downturn or technological shift. Storage specialists like NetApp continually try to innovate and acquire to keep themselves vital, while larger companies like Cisco and EMC try to diversify while maintaining market leadership. HP doesn’t need to try; it is diverse.

HP Is a Very Large Thing

I watched HP's rise in the server market of the 1990's

HP has long been synonymous with innovation, high-technology, and silicon Valley. I have been an HP customer as long as I have been in IT, and watched as they integrated technology from Apollo and Convex in the 1990’ s. The server products that resulted became the dominant UNIX platform, but HP’ s innovative storage concepts didn’ t take the market by storm.

After HP merged with Compaq (which brought Tandem and Digital Equipment Corporation), the company vaulted ahead in the Wintel market and also gained valuable storage expertise. Throughout the last decade, HP was firing on all cylinders and dominant in nearly every arena. The company owns half the blade server market, is tied for first in servers, leads in PCs and printers, and is a contender in networking and storage. It’s simply impossible to say what HP is in a single sentence.

HP storage has an extremely broad product range, which management is working to reconcile. Acquisitions of LeftHand, Ibrix, and 3PAR gave HP storage shot in the arm to be sure. An injection of startup mojo has energized the marketing and product groups within HP just when the company needed it. HP’ s market share has grown somewhat as a result, though not as much as the hyper-focused NetApp. HP networking similarly took on 3Com, bedeviling Cisco in the Ethernet switch market.

The Executive Soap Opera

It takes a lot to bring a mammoth to its knees, but a shot between the eyes usually does the trick. While the many engines of HP push it forward, the company’s upper management has seemed, at times, suicidal. Business schools could design an entire curriculum around the folly of Patricia “I spy” Dunn and Mark “penny-pinching” Hurd. Who would think that HP management could top this?

From August 2010 through September 2011, HP dominated IT headlines in completely the wrong way. The board wanted a change, and selected Léo Apotheker to transform HP. But it was a soap opera from the very start, with Oracle hiring Mark Hurd and sending Apotheker into hiding among accusations of corporate espionage while at SAP.

The new CEO didn’t seem to understand HP at all, though he was intent on steering it in a new direction. Apotheker set about dismantling HP’s consumer and end-user businesses, killing Palm/WebOS and threatening to sell off the PC business. The company was to focus instead on enterprise computing, but these drastic moves spooked the entire industry.

It wasn’t long before HP’s board struck again, with a shake up at the hands of Ray Lane and former eBay CEO Meg Whitman brought in to replace Apotheker. The first order of business for the new HP executive team appears to be reassuring the entire world that management has not gone completely insane.

Stephen’s Stance

To an outsider like me, the most disappointing thing about HP’s mighty stumble is that it has nothing to do with the people who really make the company what it is. I have met many creative, hard-working individuals in HP’s storage, server, networking, and printer groups, and they could not be more different from the executive soap opera. I only hope that this new board and CEO will bring some stability and let HP cruise forward once again.

Disclaimer: HP has sponsored the Tech Field Day events which I organize, and has on occasion invited me to attend events at their expense.  But I do similar work with nearly every company in the IT industry, and this piece is my own opinion.

© sfoskett for Stephen Foskett, Pack Rat, 2012. | HP’s Mighty Stumble
This post was categorized as Computer History, Enterprise storage, Gestalt IT. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Do you want X-series or P-series storage? Is A-series networking gear any good? And where did all these HP products come from?

HP has always been an alphabet soup company, assigning just about every item in their bewildering array of products a unique product number. Like Mercedes-Benz cars, even the product names are a mix of letters and numbers that can be off-putting to browsers. Now that they have grown to supersize proportions through internal expansion and acquisition, just about everyone outside the company seems to have trouble decoding the product line, so I decided to take a stab at decoding the enterprise lineup in plain english.

An Important Note

This is not a political activity. I’m not trying to comment on which product is better than which or pigeonhole something by calling it “midrange” when HP thinks it’s “high-end”. I’m trying to be descriptive and helpful to prospective buyers working to understand the multitude of products sold by HP.

I welcome your input. In fact, I demand it! I don’t know which product is which and need your help to improve this list. Please feel free to comment and suggest corrections and additions (wireless?)

Storage Products (“StorageWorks”)

HP’s storage products are divided into three categories:

• P-series is block (SAN) storage using Fibre Channel or iSCSI
• X-series is file (NAS) storage
• Disk backup will presumably get a letter series in the future

Storage Product Notes

HP engineering input into OEMed products ranges from minimal to substantial. The EML tape library, for example, is very different from the standard Oracle (STK) product on which it is based. The high-end Hitachi-based storage includes substantial HP input as well.

HP StorageWorks VP of Marketing Tom Joyce informed me that the 3PAR T- and F-Class boxes won’t be renamed at this point. This is probably a good move – capitalize on the value of the 3PAR name rather than the virtually-unknown “P-series” nomenclature.

Others tell me that the StorageWorks 4400 is hitting end-of-life in the now-ish timeframe. So it won’t get a new name either.

Networking Products

HP’s networking products are divided into three categories:

• A-series is enterprise-class core switching, routing, and 200+ AP wireless
• E-series is mid-market and SMB switching and smaller wireless
• V-series is SMB and SoHo web-managed and unmanaged switching and wireless

Networking Product Notes

HP’s 3Com acquisition focused primarily on the H3C (former Huawei/3Com joint venture) high-end switching and routing products. Although some 3Com gear remains in the E-series line (particularly stackable switches), the low-end fixed-port switches have seemingly been eliminated from the product line. The Colubris acquisition provided HP with scalable wireless products now slotted below the H3C gear.

Stephen’s Stance

Product lines are always confusing at large companies, and doubly so where acquisitions bring in legacy products and customers. I wish HP the best of luck sorting all this out!

Note: The photo at the top is of a Japanese clone of the Enigma Machine from World War II.

Image credit: Japanese WWII Enigma Machine by Radio Rover

© sfoskett for Stephen Foskett, Pack Rat, 2010. | Stephen’s HP Product Line Decoder Ring
This post was categorized as Computer History, Enterprise storage, Personal. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

Who will power the enterprise? The smart money is betting on a few superpowers taking over.

After years spent focusing on personal technology, businesses are increasingly turning back to the enterprise. There are many reasons for this, but the biggest one is the poor economy. Individuals simply have less free cash to spend on gadgets and software, and the meagre profits are increasingly going into the pockets of a single company: Apple.

The corporate IT market is much more dynamic and competitive, with a few very large “superpower” companies discovering their power to drive purchasing decisions. If a supplier can create an integrated “stack” of hardware and software, they can push product purchases that might otherwise be overlooked or postponed. This is the main reason that enterprise IT acquisitions work so well: Where a small company must fight to sell their product, a large one can hitch it to a much more strategic sale and have it pulled along.

The old IBM model is the prototype, with that company once selling everything from office equipment to datacenter gear as well as the consulting and integration services to make it all work.

HP has spent almost two decades bulking up to become the new IBM, buying their way into open systems laptops, desktops, and servers (Compaq), networking (3Com), services (EDS), and storage (Compaq, LeftHand, Ibrix, and perhaps 3Par). HP has been remarkably proficient at executing on this enterprise plan: In talking to enterprise IT folks, I often hear IBM-esque sentiments regarding the new HP. They tell me they’re willing to give HP the benefit of the doubt when it comes to new technologies and products, buying on basis of the company’s reputation and ability to make everything work. This bodes well for the company’s post-Hurd future, and HP has the most-complete “enterprise stack” in the business.

But HP has a target on its back, pinned there by Dell. The folks from Round Rock believe they can be more efficient (and thus profitable) than HP in the same markets, and have been making moves to fortify their enterprise offerings. Dell was always more of a manufacturing than R&D business, but they have shown a desire to broaden their focus. Intrigued by the high-margin mid-enterprise storage business built from their EqualLogic acquisition and their success selling EMC storage, Dell is moving into the enterprise. They matched HP/EDS by purchasing Perot and have made smaller buys in storage (Ocarina, Exanet) as well as the big move for 3Par.

The next big emerging stack player is Oracle. The acquisition of Sun gave Oracle a strong hardware base to complement their command of enterprise software, and many expect further acquisitions. But Oracle is playing a different game than HP and Dell, focusing on the high-margin enterprise space and ignoring more competitive outlying areas. Many suspect the company might make a play in the network space (Brocade, Juniper, and F5 have been mentioned) but storage is possible as well. CEO Larry Ellison is a major investor in Pillar Data Systems, so many expect a spin-in here. But Oracle has the appetite for something much bigger, even EMC or NetApp.

Then there is Cisco, who have attempted to parlay their data center networking strength into a broader position. But Cisco’s halting moves into storage (Fibre Channel switching and SAN extension) did not displace the market leaders, and their server products (UCS) have not made much of a dent on HP, IBM, and Dell either. A solid partnership with EMC has delayed further forays into the enterprise storage market, and Cisco seems puzzlingly interested in low-margin access businesses (Linksys, Flip) and their Cius tablet.

There are other players in the enterprise space as well. EMC has diversified under CEO Joe Tucci, taking a dominant position in server virtualization (VMware) and making a strong enterprise security acquisition (RSA). But the many faces of enterprise storage remains EMC’s strength, and they seem content to partner with Cisco for a stack sale. Hitachi, NEC, and Fujitsu also offer varying enterprise hardware and software stacks, but their comparatively small sales presence in the US market limits their ability to execute. In the final analysis, only IBM, HP, Dell, and perhaps Oracle can claim to be enterprise IT superpowers at this point.

Image credit: Steam Engine by Stuck in Customs

© sfoskett for Stephen Foskett, Pack Rat, 2010. | Meet the Enterprise IT Superpowers
This post was categorized as Computer History, Enterprise storage, Gestalt IT, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

I’ve long wished for a new enterprise storage superpower. Competition is good for everyone, and the enterprise storage space has always been highly competitive. Traditional SAN storage powers (EMC, HDS, HP, and IBM) have been under continual attack from tech-heavy upstarts like EqualLogic, LeftHand, Compellent, Xiotech, and 3Par. The smaller (revenue-wise) NAS market has been more serial, with NetApp knocking off Auspex, then challenged by EMC. Yet innovators have been thick there as well, from Exanet to Ibrix, Isilon to Onstor.

Through it all, one thing has been clear: The major companies, though perhaps lagging in technology, were usually able to withstand the attack of the upstarts through sheer strength of salesforce. Storage is a strategic investment, and selection of a storage platform is much more far-reaching than many IT product decisions. The inertia of an installed storage environment makes it a real challenge to switch vendors, giving the established players massive leverage.

It became clear to me and many others that the best way for upstart companies (and, by extension, technologies) was to be part of an established vendor’s sales process. OEM relationships were a big part of this (witness the success of BlueArc and even NetApp and HDS) but acquisition was a much stronger proposition. If customers were warmer to OEM products than independent sales, they are much hotter when it comes to acquired technology. HP, Dell, IBM, and EMC have all demonstrated the power that comes when an established company buys a startup and puts the power of their sales force behind these new products.

This explains Dell’s fantastic success with EqualLogic. They took a product that was emerging as dominant in its niche (midrange iSCSI SAN) and blasted it into the market, while at the same time optimizing manufacturing and deployment. EMC did the same with Clariion and DataDomain, and HP is showing strong signs of health with LeftHand and Ibrix. Then there is IBM, who took XIV out of Israel and made it a source of irritation to the rest of the industry.

Many industry watchers have long wondered what would happen if the smaller guys got together, forming a new superpower of their own. Would 3Par, BlueArc, and Sepaton be a real challenger? What about Xiotech or Compellent and Isilon or FalconStor? Is mixing and matching some smaller companies a recipe for success? The answer was often a counter-question: What if someone like Dell, who knows how to manufacture and sell, picked them up instead? This seemed much more like a sure-thing, since the established management and financials stave off potential integration issues.

It appears that this is the future. Established players will pick up smaller companies, fortifying their offerings and accelerating sales in a way the little guys weren’t capable of. Dell’s billion-dollar acquisition of 3Par reportedly headed off a similar offer from HP, and will likely spark another acquisition. I imagine the management teams at Compellent and Xiotech just got a lot busier…

Clearly, Dell and HP are playing this game. IBM and EMC are in it, too. But what about Cisco and Oracle? Could they be planning storage acquisitions of their own, to the detriment of partners like EMC and Hitachi? What about the strong contingent from Japan, NEC and Hitachi? And who gets picked up next? We shall see!

© sfoskett for Stephen Foskett, Pack Rat, 2010. | Dell + EqualLogic, Exanet, Ocarina, 3Par = What?
This post was categorized as Computer History, Enterprise storage, Gestalt IT. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

HP invited bloggers to Colorado to show off their storage offerings at Tech Day 2009

Well that was interesting! I spent Monday and Tuesday with a dozen bloggers in Colorado Springs learning about HP’s key StorageWorks products from the executives and engineers of that storied company. Throughout the event, we listened, asked tough questions, and tweeted incessantly. HP Tech Day generated an avalanche of publicity for the company, including press articles and cries of FUD and misdirection.

Here is the truth: HP and Ivy did a darn fine job of putting together a set of sessions to tell us what they have. They presented folks who really knew their stuff, warts and all. They invited a variety of independent voices and let us ask and say anything we wanted with no expectations, let alone an NDA. This was a stellar event, and every other IT company should be asking why they didn’t do it first.

Won’t Be Fooled

But what was HP Tech Day really all about? Did they brainwash us into thinking the EVA was exciting? Did HP hoodwink and misdirect us from noticing the gaps and overlaps in their product line? Were we dazzled enough to no longer question their storage strategy? Of course not! Robin Harris has seen it all before. Rich Brambley can dissect a presentation with the best of them. Nigel Poulton questions everything he sees. This was not a love-fest, and there were some seriously uncomfortable moments for the HP crew.

We were all savvy enough to know what the score was: HP (and especially their StorageWorks product line) has never received much press or blogger attention. They invited us in to spread the word about their products and get blog exposure. And it worked! The storage Twitter-sphere was dominated with #HPTechDay postings for days, and attendees did indeed blog about the stuff they saw. It was a success from HP’s perspective, and now that we know more about their products we will likely cover them in the future.

I personally never blogged much about HP products. I compared them to Ford, called one product an all-time cool flop, and covered their acquisition of LeftHand and Ibrix, but that’s about it. I didn’t even notice that they had started selling LSI’s StoreAge-based virtualization platform, and didn’t know enough about their other product releases over the last two years to mention them. If it hadn’t been for Calvin Zito and the HP Tech Day, I probably wouldn’t mention them in the future, either. They just weren’t on my radar.

We Were Educated

This has changed as a result of Tech Day. I now know that EVA is still pretty much what I thought it was but that it is fairly simple to configure. I now know that HP has two lines of deduplication appliances, and that one is homegrown. I now know that HP develops and sells a FC SAN virtualization platform based on the LSI/StoreAge product. This was great product exposure for HP: Even though I still don’t think I’ll focus on these offerings, at least I now know that they exist.

We also saw some more interesting content: HP plans to leverage their excellent ProLiant server and blade technology to underpin a line of commodity-based storage and consolidated virtualization offerings. This is exciting stuff, and builds on HP’s base and their recent acquisitions. The most interesting concept I saw was a combination of a blade chassis and ultra-dense storage system with VMware ESX, LeftHand, Ibrix, and HP’s management software. They definitely plan to challenge Cisco/EMC and IBM in this market.

But the best part of the event was the people of HP. The company was smart enough to bring in the techies rather than executive marketing droids. They gave us straight and honest answers about their product capabilities and their place within the company, sometimes to the chagrin of others in the room. We saw conflicting definitions, product line overlaps, internal competition, and got a feel for the realities of this massive company. Every company is like this, but most would never admit what we already know. By not showering us with slick FUD, HP won our respect in a way that I would not have thought possible.

Colorado Take-Away

The event was great. Every other IT company should wise up and do the same. But I bet they won’t have the nerve to do it as openly, and I expect HP will be more careful next time too. As for HP’s products, let me lay out my honest opinion:

1. LeftHand was a bargain. HP could replace their entire sub-XP block storage product line with LeftHand variants based on commodity Intel hardware. I think they should.
2. Ibrix is too new to judge, but will likely take a seat next to LeftHand in a unified commodity-based scale-out SAN/NAS platform.
3. I hope HP hasn’t lost focus on their excellent Hitachi-based XP line, since it’s the only challenger they have to EMC Symmetrix at the high end of the market.
4. HP’s excellent server and blade hardware should be leveraged throughout the company and oddball hardware should be curtailed.
5. HP has an interesting lineup of Windows Storage Server and Windows Home Server hardware aimed at the low-end SOHO and SMB market. I’m not a Windows hater, but wouldn’t it be cool to have a super-low-end LeftHand variant there too?
6. I wonder if HP’s home-grown in-line deduplication (the D2D line) could replace the Sepaton-sourced post-process VLS line or vice-versa if an acquisition of that company happens.
7. I don’t “get” SVSP, the LSI/StoreAge SAN virtualization platform. It’s nice and it seems to work, but why introduce a FC SAN virtualization platform at this point? Maybe it sells when integrated with EVA, but not as a standalone product.
8. Where are all the storage arrays that use 2.5″ disk drives that HP talked about over the last few years? And where are the flash solid state drives?
9. They were like deer in the headlights with no story when I asked about sub-LUN automated tiered storage since even full-LUN automation has not yet been released. Might EMC get there first?
10. As for the absence of DCB and FCoE, HP seems to think that Virtual Connect and Flex-10 are good enough for now. HP will OEM a CNA soon and might possibly consider the Cisco Nexus 4000. Maybe. They had better have a more-convincing story when this stuff takes off next year!
11. Most importantly, where is the cloud strategy? I applaud HP for not overusing the current buzzword, but it almost seems like they are avoiding the topic entirely.

I am left thinking that HP is like a boxed puzzle. All of the pieces are there, but they haven’t been put into place yet. Let’s hope Dave Donatelli and his crew can help them work it out when he takes his post as czar of servers, networking, and storage next year. For now, I’ve gained a lot of respect for the people of HP and a pile of knowledge about their storage products. And HP has gained my attention.

© sfoskett for Stephen Foskett, Pack Rat, 2009. | The Truth About HP’s Tech Day
This post was categorized as Enterprise storage, Everything, Gestalt IT, Personal, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.