At the same time it looks like its commodity x86 server business will face increased competition – Lenovo buys IBM x86 server business – HP is beefing up its much more lucrative enterprise services portfolio to address end-to-end data center infrastructure management (DCIM) and IT service management (ITSM). With these breakthrough offerings, we can help you achieve better operational efficiency, capacity planning and intelligence sharing across IT infrastructure, data center facilities and IT service management, stated Chris Coggrave, worldwide director of IT Infrastructure Services at HP Technology Services Consulting.
HP’s new Converged Management Consulting services include: HP Converged Management Workshop; HP Converged Management Roadmap Service; HP Converged Management Design Service; and HP Converged Management Implementation Services. Both Nlyte Software, which focuses on data center management and optimization, and Schneider Electric, which specializes in energy management, were contributors to the new offerings.
“This follows the convergence theme we’ve been driving over the last three years,” said Coggrave. “It’s about breaking down the silos.”
The challenge is how to integrate all of these silos so customers get the maximum benefits, he said. The idea is to “translate the data center from headache to harmony.”
The latest numbers from Gartner expect that of the $3.8 trillion to be spent on IT this year (up 3.1% from 2013), data center system budgets will grow 2.6% year-over-year to $143 billion, enterprise software will jump 6.5% to $320 billion, while IT services, the biggest IT expenditure after telecom services, will climb 4.5% to $922 billion. Gartner has slightly revised downward the IT services compound annual growth rate between 2012 and 2017, primarily due to reductions in IT outsourcing — specifically, in colocation, hosting and data center outsourcing growth rates.
It is seeing CIOs increasingly reconsidering data center build-out and instead planning faster-than-expected moves to cloud computing. Despite these small reductions, Gartner continues to anticipate consistent four to five percent annual growth through 2017.
It’s still early days for DCIM, but 2014 is expected to be a breakout year, so HP’s timing is good. According to Forrester Research, IT infrastructure hardware, software, and data center facilities accounted for almost half (40%) of 2013 enterprise IT budgets, but a new approach – workload-centric, software-defined, and hybrid – is required for consolidation and optimization. Application-centric infrastructure optimizes infrastructure around what matters most. Software-defined infrastructure amplifies consolidation and “customer” access. Finally, hybrid cloud management increases your relevancy in the cloud era.
Companies need to learn how they can evolve from being the kind of company that reacts to incidents, lurching from crisis to crisis to anticipating failures to automating processes used for infrastructure management, according to Enterprise Management Associates. DCIM is a key part of that evolution, said EMA.
In December Gartner predicted that capacity concerns will make DCIM a $1 billion market. More than a third (36%) of attendees at a Gartner conference reported they will be likely to significantly implement DCIM tools in their data center in 2014, and another 25% predicted they will implement in the next two years. By 2017, DCIM will be deployed in 60% of larger data centers (more than 3,000 square feet) in North America.
DCIM will be grow more than tenfold, from $307 million in 2011, to $3.14 billion in 2017, according to a recent report from MarketsandMarkets. The major forces driving the market are factors such as availability and sustainable IT, which will positively impact the data center infrastructure management market because of the global push for Green data centers.
As these data centers have become IT aware you can start bringing these different areas into a single pane of glass, said Tim Swiader, Senior Program Manager, HP Technology Services Consulting. “We’re really starting to see an era where you can bring that into a reality.”
Coggrave said one of the challenges is that there are approximately 70 or 80 individual DCIM products available. “Each one has excellent features… but a challenge for organization in how they fit together.”
HP’s objective is to help customers embrace DCIM, and avoid a rip-and-replace strategy. “All customers are at different stages. It’s like a maturity model… there are various steps involved.”
That makes education a critical component. “It’s difficult for some customers to understand what benefit they’ll get.” While many enterprises have implemented various management solutions, Coggrave thinks very few have gone beyond the dabbling stage.
“We’re looking at business case scenarios. What is the pain felt and how can you reduce that pain.”
Both the day-long Workshop and Roadmap Services are currently available, said Coggrave. The other two, Design and Implementation, will be rolled out later this year. “A lot of DCIM vendors are already working with us to build links into our tools,” he added.
Looking ahead, HP is working on how to help move customers from one state to the next without having to resort to a big-bang approach. “There’s a lot more pressure on enterprises to actually do something,” said Coggrave. “If they don’t they will be left behind from a competitive basis.”