Welcome!

Containers Expo Blog Authors: Elizabeth White, Liz McMillan, XebiaLabs Blog, Pat Romanski, Stackify Blog

Related Topics: @CloudExpo, FinTech Journal

@CloudExpo: Blog Feed Post

Hewlett Packard: A Tale of Many Clouds

HP has the technical pieces. It has the people pieces, some of the business model pieces. It has parts of the compelling story.

Hewlett Packard used its Discover event in Frankfurt last week to reassert the company’s cloud credentials. Public, private, hybrid; HP is painting pictures that encompass them all, whilst seeking to protect hardware revenues and reassure conservative executives at some of its largest and most profitable customers. But HP has been here before, making bold claims and telling people what they wanted to hear about an HP cloud upon which enterprises could depend. This time, will the company deliver?

Earlier this year, satirical news site The Onion took a cruel but funny swipe at HP’s cloud pretensions. HP, the sketch suggested, had the answers, the technology, and a lot of cloud. The company has done — and continues to do — a lot right in this space, but it really did bring this derision upon itself. Mixed messaging, repeated announcements of amazing new cloud services that never quite saw the light of day, an endless stream of apparent strategy U-turns that must surely have left long-time HP executives as dizzy as those trying to understand their intentions? None of this helped HP. But now, Windows Azure is apparently behind us. PalmOS (or whatever it’s called these days) is no longer a glue to bind hardware, peripherals, software and data together. Amazon is an inevitable piece of the whole. And at HP, the new story is one (more or less) of an OpenStack public cloud called HP Cloud (or HP Public Cloud), a VMware private cloud called Cloud System, and a professional services sell called Managed Cloud for Enterprise (which is messily spread across large swathes of HP’s dreadful website, with no obvious landing page to link here).

A public cloud

The biggest cloud news out of Discover was probably the General Availability (at last) of HP’s OpenStack-powered public cloud offering. In keynotes and workshops, it was somewhat surprising to see the extent to which OpenStack and other enabling technologies were not mentioned. This was HP’s cloud, and the implication was clearly that HP know-how was what made it tick. HP hardware, HP software, HP cleverness. None of the ‘Intel Inside’ co-branding, Microsoft Diamond Sponsor loviness or VMware strategic partner rhetoric for this open source project, it seems. But, more relevantly, also none of the recognition that other named open source projects like the various Linux distributions do receive from HP.

Given the rather raw state of some OpenStack components, HP engineers have been busy stitching pieces together, but I would have expected HP to be telling more of a story about portability, about interoperability, and about the breadth and depth of the OpenStack community that customers would be joining. That story wasn’t told, and you had to know where to look to find much mention of the elusive OpenStack at all.

One place, it must be said, where the company was far more forthcoming was in the private Coffee Talks arranged for us by the team at Ivy. In frank cloud discussions such as those with Christian Verstraete, Chris Purcell, Florian Otel and others, far more of the detail — and rationale — was laid on the table.

Pricing is competitive, and it will be interesting to see how HP moves forward here. HP’s public cloud makes plenty of sense for enterprise customers already using HP kit and services elsewhere. But will a startup or a non-customer choose the HP Cloud in preference to Amazon or Google or Rackspace?

They might, if the messaging is right. German cloud analyst René Büst asserted in Frankfurt that “the next Instagram would never choose to start and grow on the HP Cloud”, as Amazon has all the mind-share in the startup community. Does HP care enough about the world beyond existing enterprise accounts to accept René’s challenge and entice that next cool startup? Is it, frankly, worth their while when their entire selling and support machine is geared toward people in suits who value fancy lunches and a Christmas card far more than credit card sign-up and cost competitiveness?

A private cloud

HP’s private cloud offering has been around a little longer, but the company reiterated — and reinforced — messages originally delivered at the Las Vegas Discover a few months back; Cloud System supports ‘bursting’ of compute jobs from an enterprise’s own private cloud to external providers such as HP’s public cloud and Amazon. This is a capability that will become increasingly important as even the most conservative enterprise customers begin their gradual transition out of the data centre and into the cloud.

Whatever Amazon and Salesforce executives might say in public about “the false cloud” or the number of Fortune 100 companies happily doing something on their public cloud infrastructure, they and we know that this is going to be a long game. HP’s flagship customers will move. Eventually, they’ll move almost everything. But it will take a decade or more, and there’s plenty of time to sell a few more private clouds and an awful lot of servers and storage arrays before that day comes.

A recognition of Amazon

HP’s messaging no longer tries to persuade customers that it will always meet every one of their cloud needs. HP has products and solutions to offer, but it is recognising that it needs to fit into a complex mixed environment. The company also recognises that Amazon is an inevitable part of that environment, and that HP solutions need to augment and add value with respect to Amazon. Helping customers to use Amazon when it’s appropriate is a far more effective strategy, long term, than either denying Amazon’s existence or insisting that its solutions are not fit for enterprise consumption. Neither are true, and HP’s customers are smart enough to realise that.

The SLA is king, maybe

One area in which HP is trying to differentiate itself from Amazon is in terms of Service Level Agreements, and this should play well with an enterprise audience. Rather than necessarily worrying about what hardware cloud infrastructure runs on, or whether it’s located on-premise, in a known and audited off-premise location, or out there in the fuzziness of the unbounded public cloud, HP is telling a story that focuses far more upon level of service, level of resilience, etc. This makes a lot of sense. I often don’t actually care whether data runs on my own machines or not. What I care about is whether or not my compliance and business requirements are being met. So instead of choosing public or private, off-premise or on, it makes a lot more sense to think about the business and compliance requirements that a particular solution helps me meet. One solution (on or off-premise) may be more secure, more robust, more disaster resilient, and it will come with an SLA (and a price tag) to reflect that. Another (again, on or off-premise) may be more suited to general crunching of less sensitive data. It’ll be more prone to failure, and cheaper. We tend to assume that our own data centre is the logical home of the former, and that the public cloud is a pretty cost-effective way to handle the latter. That’s not necessarily true, and that’s why it’s refreshing to at least begin to think in more nuanced terms. Unfortunately, although HP execs planted these ideas during their keynotes, the follow-up material quickly fell back into public v private, dodgy commodity kit v HP ‘enterprise grade’ hardware, etc. And that’s a shame.

Gartner’s Lydia Leong takes a deeper look at HP’s latest SLAs, and suggests that they may not be living up to their own rhetoric either. There’s plenty of work still to do in this area, and an effective means of differentiating service and value propositions is long overdue.

Dell goes the other way

HP uses OpenStack for the company’s public cloud, and VMware sits beneath their private offerings. Speaking at Dell World this week, Michael Dell announced that his company is doing the exact opposite; Dell’s existing VMware-powered public cloud is to be joined by a private cloud offering powered by OpenStack.

The public and private offerings of HP and Dell certainly aren’t directly comparable, but it is interesting that the two companies have reached such superficially odd decisions. It even raises the prospect that a customer of HP’s private cloud may find it easier to move to Dell’s public cloud than to HP’s, and that a customer of Dell’s private cloud may find it easier to move workloads to HP’s public cloud than to stick with Dell. Odd at best, this should be raising eyebrows in both Round Rock and Palo Alto.

Will the Converged Cloud actually, you know, Converge?

HP has a lot to say about convergence, both in terms of their hardware business but also in the cloud. And yet, it can be surprisingly difficult to see how the public and private pieces of the HP cloud portfolio really fit together. More often than I’d have expected, HP staffers discussing either the public or private cloud offerings spoke as if theirs was the only cloud in HP-land. A slip of the tongue once, or perhaps twice, but this was repeated again and again and again in Frankfurt. The joined-up story, and the reality of customers starting in either HP Cloud or Cloud System before realising a need to embrace parts of the other doesn’t seem to be getting through on the ground.

HP is a big ship, with some smart people and some great technology. But if it doesn’t tell a single — compelling — story and back it up with an attractive business model, it’s toast.

I can’t remember who it was, but someone in Frankfurt remarked in passing that HP would come through its current troubles “because it had technical chops.” Sadly for HP, that is simply not true. You can have the best technology in the world. But without a defined (or creatable) market requirement, a viable business proposition, and some credible messaging, all of that amazing technology is just some very expensive scrap metal. And a fatal red stain, spreading across the balance sheet.

HP has the technical pieces. It has the people pieces. It has some of the business model pieces. It has parts of the compelling story. It’s time the company joined those together credibly, filled in the gaps, and stopped shooting itself in the foot.

At least starve The Onion of material, so its writers have to try a little harder next time.

Disclosure: acting on behalf of Hewlett Packard, Ivy Worldwide invited me to Discover and covered travel and expenses associated with the trip. There was no requirement that I write about HP, and no requirement that any coverage be favourable.

Image by Flickr user Jose Roberto V Moraes

More Stories By Paul Miller

Paul Miller works at the interface between the worlds of Cloud Computing and the Semantic Web, providing the insights that enable you to exploit the next wave as we approach the World Wide Database.

He blogs at www.cloudofdata.com.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.