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.

Once something is in place, it's hard to get it to move again

In Philosophiæ Naturalis, Sir Isaac Newton defined inertia as follows:

The vis insita, or innate force of matter, is a power of resisting by which every body, as much as in it lies, endeavours to preserve its present state, whether it be of rest or of moving uniformly forward in a straight line.

Although Newton was referring to physical objects, the power of inertia affects companies, markets, and relationships in the same manner.  Humans are creatures of habit, and change is challenging.  When faced with a choice of continuing along the same road or branching off in a new direction, most will choose familiarity.

Inertia in IT Architecture

Consider the impact of inertia on IT architecture: once the solution is in place, it tends to remain there for a very long time.  This rule applies to practices, architectures, solutions, and hardware and software.  It explains the continued presence of Token Ring, MS-DOS, Mac OS 9, and Palm organizers in so many companies.  It also explains the curious devotion IT pros field toward solutions that are backward compatible: Ethernet, Windows, Intel x86 architecture, and so on.

Once, while visiting the data center of a midsize financial institution, I spotted a stack of old IBM PC desktop computers in the corner.  The company had purchased a company, which itself had purchased a bank many years ago.  The loans from that long ago and far off institution were still serviced by this archaic hardware and software.  The company’s IT staff had squirreled away half a dozen replacement computers so they could migrate the application to new old hardware in the event of a failure.  If this isn’t inertia, I don’t know what it is.

Overcoming Inertia

An external force is required to overcome inertia, and one must desire to initiate a change.  New products and solutions must not merely be attractive, it must also be compelling enough to overcome this inertia.  In my experience, there are three reasons that companies change direction when it comes to IT architecture:

1. A noticeable irrefutable return on investment (ROI)
2. A tangible and necessary performance benefit
3. A unique and desirable function

Many new technologies show promise in all three areas, including 10 Gigabit Ethernet, Fibre Channel over Ethernet (FCoE), server virtualization, and data deduplication.  But these potential benefits are not necessarily compelling in all IT environments.

A company with a substantial investment in Fibre Channel SAN hardware may find that upgrading to 8 Gb Fibre Channel is more compelling than a switch to converged networking and FCoE.  Many companies have found it hard to justify the additional cost of data compression or deduplication technology when compared with the decreasing cost of capacity or the benefits of improved utilization through better storage management.  The growth of server virtualization has been steady, but the hold-outs indicate that many companies find it hard to justify the technology.

Stephen’s Stance

Contrary to our nerd dreams, mere technical superiority does not guarantee the success of a new product or solution.  It must be better, faster, and cheaper to achieve widespread success.  In short, it must demonstrate a compelling case, or inertia will set in and derail its progress.

© sfoskett for Stephen Foskett, Pack Rat, 2011. | The Three Requirements To Overcome Inertia
This post was categorized as Computer History, Personal, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.

IT infrastructure is following consumer technology out of the data center glass house and into the wide world

Dave Hitz over at NetApp poses a very interesting question: What is the ten-year trend in information technology that we are currently building to? He supplies these historical examples:

• 1982-1992: A computer on every (business) desk
• 1990s: Networking all those computers

He then goes on to suggest three ten-year trends that we might currently be living through:

1. Cloud/Outsourced Computing
2. Server Virtualization
3. Flash Memory

Although I agree on the importance of these three to enterprise IT, I don’t think they’ll be seen as the megatrends of this decade in hindsight. I suggest that, more than anything, we are witnessing a wholesale shift from information tied to place/device to information mobility. Cloud computing, server virtualization, and even flash memory are all contributors to this massive trend, along with the user-side trends of the post-PDA mobile phone, 3G data, social web services, and connected home.

What Is Mobility?

The meaning of mobility, to me, is expansive. It doesn’t just refer to taking a copy of your data with you, ubiquitous connectivity, or portable devices. Mobility is a new paradigm of computing.

• Your data no longer “sits” in one place – your data lives out there in the network!
• Your applications no longer “live” on this device or that – your applications live out there in the network!
• Your productivity environment no longer requires a particular piece of hardware – you expect to be productive everywhere on every device!

This doesn’t sound strange to the modern Internet user. We have completely accepted the role of Google, Facebook, Yahoo, Wikipedia and the rest in our personal lives. Just as they did in the early days of the PC, business people have transitioned these concepts into the professional world – witness Salesforce and LinkedIn! In all cases, we have endorsed the idea that certain types of information want to live in the cloud because it makes them better!

Once you’ve used these services, old-fashioned email, contact management, encyclopedias, maps, and the rest seem incredibly limiting. A GPS system that can’t update its maps seems antiquated, and we want it to have real-time traffic data, too. An iPod that needs to be physically connected to a PC to add music or applications is simply unacceptable. Time- and place-shifting technologies like TiVo To Go, over-the-air podcast downloads, and Slingboxes reset our expectations about availability and choice of entertainment, but they are mere symptoms of our changing perceptions. We want mobility of data, applications, and platforms, and we are getting it.

Consider two truly revolutionary platforms: the iPhone and the netbook. In both cases, we knowingly accept limitations in the name of portability, knowing that the cloud will give us what we can’t hold in our hands. These devices are limited in ways that would seem inconceivable just a few years ago: Apple has locked their platform up tighter than any in history, and netbooks are too small, underpowered, and cheap in all senses of the word. But we love them because they get us where we want to go, which is up and out!

Mobility and Enterprise IT

The concept of mobile data, applications, and devices is just as applicable to enterprise IT infrastructure as it is to personal technology. Some enterprise data must be kept close to the vest, especially where privacy laws and litigation concerns are applicable. But there is certainly a vast pool of corporate data that wants to be out working in the field! Setting this data free is the enterprise equivalent of the mobility megatrend!

Cloud computing is hype. Server virtualization is hype. Flash storage is hype. XaaS is hype. Web 2.0 is hype. But once the cloud of hype passes, we will be left with solid technologies to enable mobility and transform corporate computing. Why should corporate email have to punch through your firewall? Why should the intranet be limited to internal or VPN users? Why can’t customers interact with a (limited/controlled) set of your corporate records? Salesforce showed us that roaming users (sales teams) need greater access than most IT staff were ready to build. What if we applied the same ideas to other data types?

Many companies are already doing this. Microsoft offers a variety of internal/external services for their customers through Live (see Connect, for example). Many companies are using mail and productivity applications in the cloud from Google, MessageOne, and Zimbra. Backup and archiving as a service to mobile users is widespread (see Iron Mountain Connected and Mozy). And more and more corporate PR relies on blogs, twitter, and social networking sites. Corporate security and legal types are worried about data “escaping” from the eggshell of control they exert, but this cat is out of the bag. Enterprise IT will never be the same!

It comes down to a single core question that IT folks ought to have been asking themselves all along: What should be held internally and what should be let loose? We already “outsource” many non-core corporate functions. Sometimes we do this for cost reasons. But the most effective outsourcing decision is when a third party will do a better job, offering levels of expertise or service that an internal group could never realistically reach. We already buy enterprise software to leverage outside development (remember, this was not always the case!), so why not also buy enterprise services? Corporate-grade outsourced email, groupware, sales automation, and the like is not only more robust and less expensive than internal systems, they enable a disconnected, mobile workforce.

Today, I Was Angry

I bought a new album from Amazon, but I forgot to sync my iPhone with my laptop, so it was sitting at home when I wanted to listen to it in the car. Then I couldn’t find a colleague’s phone number because he moved to a new company and my address book didn’t automatically update. And I couldn’t review a presentation because I needed a special account to access a corporate document system behind a firewall.

These little accomplishments would have seemed like miracles just a few years ago: I remember the joy I felt ten years ago when I could read a web page offline on my Palm Pilot using AvantGo; I was amazed when I first fired up 802.11a wireless networking and could work anywhere in the office; I was gleeful to be able to take 5 GB of music with me on the train. But all this is past. Today, I want to access my portable data and work anywhere. We are in the midst of a revolution in the mobility and ubiquity of computing.

See my posts on Gestalt IT for similar enterprise IT infrastructure commentary

© sfoskett for Stephen Foskett, Pack Rat, 2009. | Ten-Year Trend: Mobility
This post was categorized as Apple, Computer History, Enterprise storage, Everything, Personal, Terabyte home, Virtual Storage. Each of my categories has its own feed if you'd like to filter out or focus on posts like this.