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2013 ITWORLDCANADA.COM I T H E P U L S E O F C A N A D A ' S I C T C O M M U N I T Y SPECIAL ISSUE COMPUTING IN THE CLOUD Your guide to IaaS, PaaS, SaaS, and the other flavours of cloud computing, keeping your cloud secure, case studies on cloud implementations and more SLIDE SHOW WIRELESS GROWTH PAGE 4 MEETING THE CHALLENGE Pervasive mobility, big data analysis and other trends are driving new consumption models and a thirst for unfettered access, says HP's Charlie Atkinson

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Page 1: unfettered access, says HP's Charlie Atkinson ComPUtIng In

2 0 1 3I T W o r l d C a n a d a . C o m I

T H E P U l S E o F C a n a d a ' S I C T C o m m U n I T Y

S P E C I A L I S S U E

ComPUtIng In thE CLoUd

Your guide to IaaS, PaaS, SaaS, and the other flavours of cloud computing, keeping your cloud secure,

case studies on cloud implementations and more

SLIdE ShowWireless GroWth PaGe 4

MEETING THE CHALLENGEPervasive mobility, big data analysis and other trends are driving new consumption models and a thirst for

unfettered access, says HP's Charlie Atkinson

Page 2: unfettered access, says HP's Charlie Atkinson ComPUtIng In

Strategic Advice from the Smartest CIOs — No Appointment Necessary

CIOs get a lot of advice from market research, consultants and their vendor partners, but they always say that the best source of information comes from their peers.

CanadianCIO TV is an ongoing Web series where we talk across the entire C-suite to explore how executives can successfully move through each stage of a project cycle. Our guests include senior executives at TD Bank Financial Group, Canadian Tire, OCAD University and many more. Each clip focuses on how to make the business case, choose an ap-propriate vendor or implement and manage next-generation technologies. We’ll o� er pointed advice and actionable takeaways that you’ll be able to apply in your own organization immediately.

Join our C-suite conversation. Watch CanadianCIO TV.

Our guests include senior executives at TD Bank Financial Group, Canadian Tire, OCAD University and many

. Each clip focuses on how to make the business case, choose an ap-propriate vendor or implement and manage next-generation technologies. We’ll o� er pointed advice and actionable takeaways that you’ll be able to apply in your own organization immediately.

Watch CanadianCIO TV.

Strategic Advice from the Smartest CIOs — No Appointment Necessary

CIOs get a lot of advice from market research, consultants and their vendor partners, but they always say that the best source of information comes from their peers.

P R E S E N T E D BY

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SPECIAL CLOUD ISSUE I 3

MEETING THE CHALLENGEPervasive mobility, big data analysis and other trends are

driving new consumption models and a thirst for unfettered access, says HP's Charlie Atkinson

Page 4: unfettered access, says HP's Charlie Atkinson ComPUtIng In

4 I SPECIAL CLOUD ISSUE

AGENDAO P I N I O N S A N D C O M M E N T A R Y

AGENDAO P I N I O N S A N D C O M M E N T A R Y

SUBSCRIBE WEBSITE AUDIOVIDEO SLIDESHOW

PROBLEMS VIEWING THIS POLL? CLICK HERE

WIRELESS GRoWTH BY THE NUMBERS

We know smart phone sales are soaring and wireless networks are getting faster.

What specifi cally is coming down the pike in the mobile market? Watch this slide show.

CHRIS ANDERSoN:The democratizationof manwufacturing

The former Wired editor and writer of Made, Free and The Long Tail, discusses how technology is lowering the barriers to

manufacturing, and why the online media revolution was a dress rehearsal for the

digital creation of hard goods. See the video interview at http://bit.ly/120XxUG,

or click above to watch.

Page 5: unfettered access, says HP's Charlie Atkinson ComPUtIng In

P R E S E N T E D B Y

D E B AT E S E R I E S

Great Minds Think DifferentlyWe’re bringing IT leaders together on camera to discuss how to make Canada more competitive using the latest technologies. Watch the CanadianCIO Debate and weigh in on the hottest topics in IT management

EPISODE 2: The biggest big data questions, answered

It’s easy to forget that the “I” in CIO stands for information. The rise of big data – unstructured information that’s growing quickly and in great variety – may change that. In this CanadianCIO debate IT leaders from customers broker Willson International and utility provider Just Energy explore how they’re gaining insight from analytics.

WAT C H O ND E M A N D N O W :

itworldcanada.com/cio-debate

ash rajendraCIO, Just Energy Group

arik kaLininsky Vice-president of IT, Willson International

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6 I SPECIAL CLOUD ISSUE

Adapting to changing requirements with agility has public sector orga-nizations turning to private cloud in-

frastructures, and to integrator Compugen Inc. to help deploy them.

One of Canada’s largest privately owned and oper-ated IT service providers and systems integrators, the recent HP Partner in Excellence Award winner prides itself in providing customers from coast to coast with state-of-the-art, real-world solutions and highly qualified technical expertise. For its many public sec-tor customers, cloud discussions lean heavily to the private side, says CEO Harry Zarek.

“They are looking to better manage resources and resource utilization,” he says. “They’re asking, ‘Can we run it behind our firewall, but have a look and feel like public cloud, where we have a reasonable way of responding to the unpredictable demands that our community has?’”

Still, a significant move to the public cloud is still out of the question for the bulk of Compugen’s gov-ernment and public agency customers.

“Our customers aren’t going to throw the keys away, put a bunch of stuff on the public cloud and say, ‘Be gone.’ That’s just not happening, even if the analysts are saying it,” he says. “There’s nowhere near a critical mass.”

While some public sector customers are dipping toes into the public cloud for specific applications, Compugen is helping customers prepare for is a hybrid one. Here the HP Converged Infrastructure and cloud solutions that Compugen offers is an advantage; organizations aren’t required to im-

Public sectorturns to Compugen for private cloud

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SPECIAL CLOUD ISSUE I 7

mediately change provisioning methods or adopt cloud wholesale.

“The beauty of HP technology, in particular the Matrix, is that it allows you potential as an organiza-tion to move to a cloud-like infrastructure at your own speed. You don’t have to over-purchase to pre-pare for future capacity, and you can add additional capacity in a very practical, incremental way.”

Zarek points to the Government of Ontario as a perfect example of a government organization em-bracing public cloud where sensible. The provincial government last year began moving workloads from websites with publically available information to cloud-based hosting. He suggests it is logical, since the content was already public facing and didn’t in-clude personal information, while hosting internally is expensive and unresponsive to usage demands.

“I consider that a breakthrough, because people have always said the public sector won’t move because of confidentiality, but the reality is there’s some obvious information that just isn’t privileged. Why would you want to run, for example, travel information from a highly-secured government datacentre?”

Zarek says he’s seeing two core business applica-tions driving public sector customers to cloud and “cloud-like” infrastructures: business continuity and load-sharing.

He notes many are looking to virtualization to ef-ficiently replicate environments to avoid downtime in today’s seven-by-24-hour world; cloud, he says, provides a cost-effective method for setting up rep-lication servers across multiple locations.

“It brings a totally different magnitude or scale to backup, a massive simplification of what in the past only the largest organizations could do.”

While private businesses can see the effects of downtime in the black or red from lost opportuni-ties, citizens today also expect public agencies meet commercial-like availability and reliability. “The value is not being called by an MP or appearing on the front page.”

As well, public organizations see cloud as a means

to handle workload peaks, especially those with seasonal workload bursts. “Tax season is a great ex-ample,” Zarek says. “The government has millions of people sending in tax returns. It can’t use the same machine, and can’t just buy equipment for the peak season, but with a little investment on the front end it can shift excess workloads to another facility and maintain the same levels of responsiveness.”

Assessing what applications can be moved to the cloud, and a customer’s existing infrastructure and capabilities, is where Compugen’s work begins. Many organizations have almost no cloud capabilities, Za-rek notes, so the firm develops a roadmap detailing the journey to greater flexibility, storage and server efficiency, and better bandwidth utilization.

That assessment is crucial.The City of Mississauga, for example, recently

turned to Compugen to help them deal with its aging storage systems, the limits of which were being pushed by big data demands. The city was originally looking to simply add to its existing enterprise virtual arrays (EVAs), but an extensive assessment by the city, Compugen and HP uncov-ered a far better solution.

By upgrading to HP 3PAR SAN technology, featuring autonomic sub-LUN (sub-volume) tier-ing, and automated backup with zero detection and thin provisioning capabilities, the city could increase storage efficiency, simplify management, and cut operational costs. It can now handle data requirements for the foreseeable future, including becoming a host to municipal agencies, like police and firefighting services.

At the same time, Compugen’s assessment iden-tified an opportunity to upgrade the city’s virtual server farm to reduce the number of physical servers needed from 150 to only 15, reducing management complexity and warranty costs to help cover the cost of new equipment.

“They aren’t looking to shift things overnight,” Za-rek says. “But we’ve been able to provide customers like the City of Mississauga with initial benefits and a roadmap to transition to even more over time.”

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8 I SPECIAL CLOUD ISSUE

FEATURE

By Vawn HimmelsBacH

THEABCs

oF

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SPECIAL CLOUD ISSUE I 9

FEATURE

Sure, we all know about the cloud, but there are a lot of acronyms flying around that

can make the cloud a confusing place to be. There’s SaaS, IaaS and PaaS, but there’s also STaaS, SECaaS and TEaaS, among many others.

When IDC tracks SaaS, IaaS and PaaS, those markets are broken down into 60 submarkets in more than 200 markets. So while the defi-nition of cloud appears to be growing in com-plexity, what matters to customers is that it’s an elastic, self-service, shared service where they’re going to benefit from economies of scale, said David Senf, vice-president of the in-frastructure solutions group with IDC Canada.

Here’s a reference guide that can help you navigate your way through this alphabet soup of letters.

SaaSSaaS, or software-as-a-service, is a software delivery model for business applications that’s hosted in the cloud, delivered as a service and paid for on a subscription basis. The idea is that SaaS can meet business needs quickly and scale up or down as needed.

“Employee collaboration is an area where many companies feel comfortable using a cloud-based solution such as Yammer, Jive, Box, Google Apps or Microsoft Office365,” said Alan Lepofsky, vice-president and principal analyst with Constellation Research. “These tools allow people to share content, connect with colleagues, ask questions (and) share sta-tus updates.”

There are also cloud-based solutions for specific departmental functions such as sales (Salesforce, SugarCRM, CrushPath), marketing (Marketo, Eloqua, Constant Contact) and HR (Workday, Ultimate, Cornerstone).

“It has less to do with company size and more to do with industry,” said Lepofsky. “Organiza-tions that have sensitive data, such as finan-cial or medical, may be more reluctant to host information outside their firewall.”

One of the biggest benefits of cloud-based

software is the speed at which new features are made available, he said. When the next version of a product comes out, it’s instantly available to everyone versus having to update servers and laptops. No one is on an old version of Gmail, for example, but many customers are on an old version of MS Exchange.

Organizations that have cyclical needs for certain solutions might turn to SaaS, such as an educational organization that needs extra band-width during the fall semester, said Kristina Blazevski, senior consultant for Info-Tech Re-search Group. Others use it if they want to test the waters of a particular project before commit-ting, allowing them to scale in minutes or hours.

IaaSIaaS, or infrastructure-as-a-service, encom-passes the hardware components of a data centre, such as the storage, server, networking and cooling units. It’s ideal for organizations that either opt not to spend the money, or lack the space and resources (including IT experts) to manage it on a full-time basis, said Michelle Warren, president of MW Research & Con-sulting. They pay for the servers, storage and networking as required, which eliminates the time needed to calculate their daily, weekly and monthly hardware requirements.

IaaS is often used to complement existing on-premise infrastructure. “Some organiza-tions have a requirement for high compliance or security (and have) sensitive data they need to lock down,” said Blazevski. In that case, they may opt to keep that data on-premise, but use pieces of the cloud — using IaaS, for example, to supplement existing on-premise solutions.

“An organization with a large infrastructure or high level of automation in that infrastruc-ture could look to an external cloud to rapidly and cheaply add more capacity,” said Blazevski. But it’s also an option for startups. IaaS is all about getting something fast and on the cheap, without upfront capital expenditure. Mid-size and large organizations will probably always use a hybrid model, she added, since their re-quirements are so complex.

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10 I SPECIAL CLOUD ISSUE

FEATURE

“One of the things that will drive more IaaS will be big data,” said Senf. For Canadian orga-nizations, big data is a big problem. As they start to scale in terms of volume, velocity, variety and value, they may turn to the cloud. Some of their data might reside internally, for example, while they’ll use IaaS to run an analytics app.

PaaSPaaS, or platform-as-a-service, is a platform provided by a cloud provider that allows IT departments to build applications on top of the platform layer. It’s ideal for organizations that don’t want to invest the time or money on the expertise of a platform administra-tor. “Consider companies who aren’t in the IT industry or in the application development industry,” said Warren.

PaaS started out as a way for startups to deploy new apps without having to invest in infrastructure. They were looking for some-thing elastic and scalable, something they could dial up or down as needed. “We see it moving up-market,” said Senf. “We believe the Canadian public sector will be one of the areas where we’ll see some of that growth (as well as) fi nancial services.”

For larger organizations that do a lot of cus-tom app development, it makes sense to run diff erent confi gurations in the cloud, said Senf. (We sometimes see the acronym TEaaS, or test environment-as-a-service, for this.) PaaS, at this point, is mainly for testing and devel-opment, he said, adding this will change in the future as organizations have a better un-derstanding of how PaaS could benefi t them. “More workloads are making their way onto PaaS, particularly in Canada as we overcome the data residency concerns we have.”

SECaaSSome organizations haven’t or don’t want to fully invest in building out an elaborate se-curity strategy internally and would rather acquire security services from a specialized vendor, which is where SECaaS, or security-as-a-service, comes in.

One of the biggest concerns that organiza-tions have is losing control of their data, said Blazevski. But, for small and mid-sized organi-zations, security vendors are often able to pro-vide more advanced security than they could provide for themselves, which is where SECaaS is potentially a good fi t.

There’s lower spend on SECaaS relative to email or CRM, said Senf. “But we expect that services around anti-malware make sense to be located in the cloud, in particular as email and other services are going out there.” Security in the cloud is a high-growth area, he added, which could grow quickly to include services in areas such as vulnerability management.

StaaSSTaaS, or storage-as-a-service, tradition-ally falls under the IaaS umbrella. “Vendors are trying to diff erentiate themselves,” said Blazevski. “If their strength is in a particular piece of infrastructure or a service, a lot of them are leveraging that.” And while it’s good to have more defi nition to the term “cloud,” she said, the taxonomy is still evolving.

Essentially, STaaS is all about cost and speed of deployment. They may only need this ex-tra storage for a particular time period, said Blazevski. Or they may be in the middle of renegotiating a deal with their storage supplier, reinvesting in a SAN or virtual storage, but need to supply additional storage to keep the business running in the meantime. But some organiza-tions may decide to do everything in the cloud.

STaaS, like SECaaS, allows IT departments to parse out their requirements, as opposed to doing an overall migration to the cloud, said Warren. It’s ideal for organizations that have some IT professionals to handle in-house and outsourced requirements.

But for an eff ective cloud migration, CIOs have to look at their overall technology and business strategy and fi nd a solution that ad-dresses their entire situation. “It is a bigger picture, when done eff ectively, than simply tossing applications and processes into the cloud on an ad-hoc basis,” she said.

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HP STORAGE SOLUTIONS

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The Business and Operational Benefits Achieved with HP StoreVirtual 4000 Storage

A Research-based Report

by Mark Peters, Senior Analyst and Bill Lundell, Senior Research Analyst

December 2012

This ESG White Paper was commissioned by HPand is distributed under license from ESG.

© 2012 by The Enterprise Strategy Group, Inc. All Rights Reserved

The Business and Operational Benefits Achieved with HP StoreVirtual 4000

FUTURE PROOFING YOUR DATA CENTER STORAGE

A Custom Technology Adoption Profile Commissioned By HP

Future-Proofing Your Data Center Storage

October 2012

Introduction

For years, organizations have made hard choices on storage spending in the face of high growth as well as high

sensitivity to outages and data loss. Data grows as a result of more customers and transactions, fatter applications

and protocols, increased regulations, more redundancy for better data protection, digitization of paper processes,

brand-new workloads, and a host of other reasons. Regardless of the source of data growth though, firms face

increased storage spending as a result. Existing budgets may have expanded to keep pace, or they may be a barrier

to continued growth of the business, but juggling the need to grow and innovate with the desire to shrink costs is a

challenging decision point for most every business. To dig deeper on this topic, HP commissioned Forrester

Consulting to survey IT hardware decision-makers in North America about their storage requirements for this

Technology Adoption Profile (TAP). The data shows that the time is now for firms to reduce capital and operating

expense through improved tools and processes where excess exists, while at the same time investing in increased

flexibility and automation that can provide additional agility for businesses to respond to new opportunities

quickly.

Storage Capacity Is Growing Sharply, Along With Spending

Storage is a commodity whose consumption generally moves in one direction — up. Without archiving and

deletion programs, most firms tend to just accumulate more data, and they have a significant fear of cleaning out

the old. As applications get more advanced, storing more data per customer, transaction, or project, fthe old. As applications get more advanced, storing more data per customer, transaction, or project, fthe old. As applications get more advanced, storing irms generally more data per customer, transaction, or project, firms generally more data per customer, transaction, or project, f

expect their storage to increase as well. While server technology has seen a significant revolution in flexibility and

consumption from the increased use of virtualization, legacy storage technologies that are hard to manage and

limited in flexibility and automation still dominate much of the data center. As a result, most storage systems

continue to grow in spite of low utilization rates, leading to high costs both in absolute terms and in comparison

with other categories of IT. Some data points related to these trends include the following:

Storage represents a big portion of the overall IT budget. According to Forrester Forrsights surveys over

several years, storage spending as a portion of overall IT spending has gone up significantly. In 2007,

respondents to the survey attributed 10% of IT spending to storage, while in 2009 and 2010, that number

went up to 17%. In 2011 and 2012, the spending increase appears to have leveled off to 15%, but it still

represents a significant amount of money as well as a big percentage of what it takes to deliver IT. It also

serves to combat assumptions about storage being cheap — clearly, the components of storage have gone

down in price with disk drives becoming denser and cheaper every year, but given the high rate of spending,

the true cost of building redundant, high-performance storage environments along with the cost of staffing ce storage environments along with the cost of staffing ce storage environments along with the cost of staf

dgets may have expanded to keep pace, or they may b

to continued growth of the business, but juggling the need to grow and innovate with the desire to shr

challenging decision point for most every business. To dig deeper on this topic, HP commissioned Forre

Consulting to survey IT hardware decision-makers in North America about their storage requirements for

Technology Adoption Profile (TAP). The data shows that the time is now for firms to reduce capital and

expense through improved tools and processes where excess exists, while at the same time investing in

flexibility and automation that can provide additional agility for businesses to respond to new opport

Storage Capacity Is Growing Sharply, Along With Spending

Storage is a commodity whose consumption generally moves in one direction — up. Without archiving and

deletion programs, most firms tend to just accumulate more data, and they have a significant fear of c

the old. As applications get more advanced, storing more data per customer, transaction, or project, fthe old. As applications get more advanced, storing more data per customer, transaction, or project, fthe old. As applications get more advanced, storing

DEDUPE 2.0: WHAT HP HAS IN STORE

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Dedupe 2.0: What HP Has In Store(Once)

By Jason Buffington, Senior Analyst

June 2012

This ESG White Paper was commissioned by HP and is distributed under license from ESG.

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Dedupe 2.0: What HP Has In Store(Once)

By Jason Buffington, Senior Analyst

CONTEMPORARY MEANING OF AND DEMANDS UPON MID-RANGE STORAGE WHITEPAPER

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December  2012

This  ESG  White  Paper  was  commissioned  by  Hewlett-­‐Packardand  is  distributed  under  license  from  ESG.

©  2012  by  The  Enterprise  Strategy  Group,  Inc.  All  Rights  Reserved.

The  Contemporary  Meaning  ofDemands  upon—Midrange  StorageWith  a  Focus  on  HP  3PAR  StoreServ 7000’s  Ability  to  Deliver

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12 I SPECIAL CLOUD ISSUE

IT firm gives customersLong Viewof cloud

Not every business is at the same place in its journey to cloud, and IT consultancy Long View Systems

is helping customers at every step along their trek, with an eye on agility and future-proofing.

With a history of more than 13 years serving the Calgary oil and gas market, but now with SMB to enterprise clients across a broad range of indus-tries and geographies, Long View has become one of North America’s foremost providers of IT con-sulting, outsourcing solutions, and cloud services. Businesses come to Long View for the recognized expertise of its more than 1,000 employees, its focus on value and client service excellence.

They especially come to Long View for its ex-perience in cloud. In 2011, the company was the first in Canada to build an HP Cloud Centre of Excellence, in which its customers and prospects can experience HP Converged Infrastructure and cloud solutions for themselves. It can help those businesses see the opportunity and find justifica-tion for cloud migrations, given the tight budgets faced by most.

“It’s one thing to talk about benefits and have ROI numbers,” says Dave Frederickson, vice-president of business development, “But it’s a completely differ-ent thing to see just how quickly an Exchange server can be provisioned, taken down and then reallo-cated to another workload.”

Frederickson says customers are adopting a cloud model at their own speeds, based on size, industry and situations. Still, he adds, “everyone is trying to

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SPECIAL CLOUD ISSUE I 13

understand how to integrate a cloud offering into their current infrastructure.”

The firm’s enterprise customers, in many cases, had already turned to cloud-based architectures for their testing and development environments. They are now looking to transition to other workloads. For these customers, the initial proof of the power of cloud has come easily.

“Testing and development has proved to provide significant ROI, because it’s traditionally a significant cost they have to burn, and it’s only over a finite pe-riod of time,” Frederickson says. “Plus, typically, the next project can’t even leverage the development environment because the needs will be dramatically different and they have a tough time rolling it back out to production again.”

By not having to burden themselves with the capi-tal equipment costs, Long View customers using the cloud for testing and development have been able to see at least 30 per cent ROI, and in some cases much more; however, it’s not just about cutting costs. Agility and speed-to-market play major roles in these businesses’ cloud adoption.

“It improves their agility and that provides com-petitive advantage,” Frederickson says. “They’re now able to get to revenue faster, and able to get a service to the customers more quickly. It’s harder to measure, but what increase in revenue does that increase in customer satisfaction create?”

It’s significant enough that even if there weren’t savings from migrating development to the cloud, many of Long View’s enterprise customers would still take the plunge just for the time-to-revenue benefits, he says.

In the mid-range, Frederickson notes custom-ers have had a bigger preponderance to put more workloads on the cloud, “but again, it’s a thing in transition.” And, of course, smaller customers with-out existing legacy infrastructure are fast to see the benefits a cloud architecture brings them. For most of its customers, the shift to cloud-based IT has been driven by business unit needs.

There are a number of examples where Long View

customers are also turning to cloud computing to solve some “pretty complex” challenges. One in particular that he says has seen good results is to overcome the uncontrollable sprawl from mobility.

“Mobility demand has created almost a nuisance for the customers, and the sprawl was something they were unable to control, and we were able to use cloud to take that off their hands,” he says. “They were no longer able to fight the whole BYOD (bring your own device) trend, and we were able to port the whole thing over, do the consultation work to bring people up to speed, as well as handle things from an infrastructure perspective.”

Consulting around people and processes has been a crucial component of the work Long View has done in its clients’ cloud migrations. In fact, one of Frederickson’s suggestions for a reason for IT organizations to begin to look into the cloud now, if they aren’t doing so already, is to begin to change people’s mindsets and break down the silos of that exist between servers, storage and network. It helps to ease the transition.

For Long View and its customers it’s not about changing infrastructure, Frederickson notes. “You’ve got to redesign how people operate, and it’s very customized for each business. There is no cookie-cutter. You have to do an assessment and inventory of the knowledge and skill sets and remap them to a cloud approach.”

Here, HP Converged Infrastructure, such as HP BladeSystem and Matrix Operating Environment, helps. It lets LongView provide its customers with an architecture that meets today’s needs, but is flex-ible, so it can serve as foundation for implementing future virtualization and cloud computing strate-gies. Frederickson says feedback from customers with whom Long View has deployed Cloud System Matrix has been positive.

“The initial feedback has been that they’ve seen huge speed and agility improvements in their ability to deploy services and applications to their custom-ers—the business units—but also showing early signs of a really solid ROI.”

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14 I SPECIAL CLOUD ISSUE

NEWSI N B R I E F

canadians tslow to emBrace contactless paymentIn Canada, cash will not be king much lon-ger. A new report from research firm Technol-ogy Strategies International paints an inter-esting picture of the shifting pay-ment landscape in Canada.

According to the firm’s recent report, Canadian Payments Forecast – 2013, more than half of Canadian smartphone users have used their phones to make a payment. The majority of those mobile pay-ments today though are for remote payments, such as paying a bill through your bank’s mobile app, or buying a product or service over the Internet.

“The incidence of in-store payments us-ing mobile phones is very low,” said Christie Christelis, president of Technology Strate-gies International, in a statement. “But with the increasing penetra-tion of contactless payment acceptance terminals, coupled with the prolifera-

tion of NFC (near field communications)-enabled phones, we expect that by 2017 there will be almost 3 million regular mo-bile payment users in Canada.”

The report found that the main growth drivers of mobile pay-ments in the Canadian mar-ket are higher personal expen-diture on con-sumer goods and services,

and deeper penetra-tion of electronic payments into areas previously dominated by cash and cheques.

“The awareness of difference contactless payment options avail-able to consumers has jumped more than 20 per cent in the past two years,” said Christelis.

“Canadians are be-coming more familiar with contactless cards as a payment option and are using it more often. As a result, contactless payments have already been effective in displacing cash transactions, and we expect this displacement to become much more significant

over the next five years.”

— Jeff Jedrasmarketers struggle witH analytics: gartnerWhile companies al-locate a large amount of their marketing budgets to marketing analytics, organizations are still struggling to mine value from their analytics pro-grams, according to a survey by research firm Gartner Inc.

“Reports go unused or are misinterpreted, and the market for data-driven person-alization tools is still small,” according to Gartner’s Data-Driven Marketing Survey 2013. “Instead, there are many disconnect-ed analytic efforts, each with their own goals, vendors and labour costs.”

Gartner surveyed 242 marketing analyt-ics professionals from November to December 2012 to understand how organizations collect

analyze and use customer data.The research firm found that companies are spending and average of 21 per cent of their

marketing budgets on analytics.

The figure aver-ages out to 41 per cent for labour, 15 per cent for exter-nal data, 19 per cent for analytics

software, 14 per cent for external marketing analytics and 11 per cent for consultants.

Marketers, Gartner said, get value from data when they use analysis to develop and bring new products and services to mar-ket, gain better under-standing of their target audience and optimize campaigns and online presence to raise con-version rates.

However, in their interviews of market-ing professionals, re-searchers found many companies “see their analytics operations as a bit chaotic.”

“A typical analytic tool inventory includes mul-tiple cloud-based tools for Web, social, search engine marketing, advertising and email marketing,” the report said. “Only a small frac-tion of the organizations have stepped up to the challenge of integrating the analytics process and tools to get the big picture.”

— Nestor Arellano

relateD CoNteNt

NFC sputtering as mobile payments

driver, Gartner report shows

relateD CoNteNt

How retail is learning about

BI from the NSA

relateD CoNteNtLost client

data not encrypted:

IIROC

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HP VIRTUALIZATIONHP VIRTUALIZATIONHP VIRTUALIZATION

ONE OF THE NATION’S TOP 10 HEALTH SYSTEMS GETS EVEN BETTER

One of the nation’s top 10 health systems gets even betterKettering Health Network uses HP Client Virtualization and VMware View so that staff can reclaim 62,500 hours a year for patient care instead of computer systems

Case study

“Using HP Client Virtualization and VMware View, our 3,000 clinical users can easily save five minutes a day. That adds up to as much as 62,500 hours a year reclaimed for patient care.” 1

Bill Hudson, Director of Information Technology, Kettering Health Network

HP customer case study HP Client Virtualization with VMware View enables award- winning health network to reclaim 62,500 staff hours a year for patient care instead of computer systems

IndustryHealthcare

1 3,000 clinical users x 5 minutes saved/day x 250 working days a year = 3,750,000 minutes saved a year/60 minutes per hour = 62,500 hours per year.

Objective Use virtualization to reduce server and client costs, speed time to value, and enhance patient care

Approach• Reduce costly PC sprawl throughout facilities

• Maximize clinician-patient time by reducing clinician-PC time

IT improvements• 100-fold faster time to value on virtual machine

deployment (day vs. weeks)

• Enhanced information security due to data stored centrally vs. on endpoints

• Threefold faster deployment of tablet support vs. traditional environment

Business benefits • 100 percent payback in three years from hardware,

power, and maintenance cost reductions

• Increased IT resources available for new projects due to streamlined client maintenance

• Greater flexibility because users can access same desktop from inside or outside network

• Anticipated 62,500 hours of staff time reclaimed annually for patient care

The doctor will see you nowIt’s not just what your doctor knows, it’s how your doctor interacts with you when you visit. Care is something you feel, not just receive. If you’re a patient at the more than 60 facilities of the Kettering Health Network (Kettering) in the Dayton, Ohio area, it’s easier to have more of your doctor’s attention when you visit. Kettering has taken steps that enable its clinicians to focus less on technology, and more on you.

A barrier for today’s clinicians is paperwork. In many settings, the person giving you care must hunt through paper records and maintain them during your visit. In some settings, health records are now digitized. But to use them, clinicians must sign on to and manipulate many applications and screens. The result is a reduced amount of attention they can give to you.

Kettering is changing the way this is done. It’s helping clinicians have more time for patients by spending less time looking at the computer screen. Clinicians can sign on to a system at the beginning of the day, open needed applications, and interact with patients. When it’s time to continue on their rounds, they press a button to close their sessions. Then, at the next computer that is convenient, they need only tap the card reader with their ID card, and up comes their desktop, just the way they left it at the previous system.

speed time to value, and enhance patient care

Reduce costly PC sprawl throughout facilities

Maximize clinician-patient time by reducing

IT improvements100-fold faster time to value on virtual machine deployment (day vs. weeks)

Enhanced information security due to data stored centrally vs. on endpoints

Threefold faster deployment of tablet support vs.

something you feel, not just receive. If you’re a patient at the more than 60 facilities of the Kettering Health Network (Kettering) in the Dayton, Ohio area, it’s easier to have more of your doctor’s attention when you visit. Kettering has taken steps that enable its clinicians to focus less on technology, and more on

A barrier for today’s clinicians is paperwork. In many settings, the person giving you care must hunt through paper records and maintain them during your visit. In some settings, health records are now digitized. But to use them, clinicians must sign on to and manipulate many applications and screens. The result is a reduced amount of attention they can give to you.

Kettering is changing the way this is done. It’s helping

COMMUNITY HEALTH CENTER OUTPACES COMPETITION WITH HP CONVERGED INFRASTRUCTURE

Community health center outpaces competition with HP Converged InfrastructureJupiter Medical Center deployed HP Converged Infrastructure so it can deploy new applications faster to remain competitive with larger health care organizations in the area

Objective Provide cost-effective, scalable infrastructure to host medical applications and deploy a virtual desktop infrastructure

ApproachEvaluate storage solutions to find a low-cost solution that is easy to manage and will improve application reliability and performance; also evaluate blade solutions to improve agility and efficiency when deploying new applications

IT improvements• Eliminate six-figure cost for maintaining

storage system

• Reduce SAN downtime from 17 hours a year to zero

• Support Citrix VDI deployment

• Deploy new applications faster

Business benefits • Deliver patient information quickly and reliably

• Preserve limited capital

• Support government healthcare regulations in timely manner

• Qualify for healthcare regulation payment incentives

“With the synergy between HP blades, HP Virtual Connect, and HP 3PAR StoreServ, we are faster to market with our systems. Healthcare is so competitive and highly regulated, so for us to see customers’ needs and deliver applications faster helps us compete.”Stephen Meyer, Director of Technical Services, Jupiter Medical Center

HP customer case studyHP Converged Infrastructure

IndustryHealthcare

A constant pressureIn the United States, many healthcare organizations have consolidated to cut costs and spread the capital outlays for the latest technology across a larger organization. This consolidation has been successful to a large extent, but something can also get lost and that is a community focus.

Jupiter Medical Center, located in Jupiter, Florida, strives to provide world-class healthcare while still remaining a not-for-profit community hospital. Jupiter Medical Center offers services in a broad range of specialties and delivers many educational programs in its community. However, to keep up with the larger medical providers that surround it and to comply with Health IT regulations, Jupiter is under constant pressure to innovate in cost-effective ways to deliver patient care.

Managing technologyJupiter provides access to all of the latest medical technology, such as 3D breast tomosynthesis and 64-slice computed tomography (CT) scanners. Medical imaging has become an important service line at the hospital, and it requires extensive server and storage hardware to support the applications and massive imaging data.

Case study

to host medical applications and deploy a virtual

Evaluate storage solutions to find a low-cost solution that is easy to manage and will improve application reliability and performance; also evaluate blade solutions to improve agility and efficiency when deploying new applications

IT improvements• Eliminate six-figure cost for maintaining

Reduce SAN downtime from 17 hours a year to zero

Support Citrix VDI deployment

Deploy new applications faster

organization. This consolidation has been successful to a large extent, but something can also get lost and that is a community focus.

Jupiter Medical Center, located in Jupiter, Florida, strives to provide world-class healthcare while still remaining a not-for-profit community hospital. Jupiter Medical Center offers services in a broad range of specialties and delivers many educational programs in its community. However, to keep up with the larger medical providers that surround it and to comply with Health IT regulations, Jupiter is under constant pressure to innovate in cost-effective ways to deliver patient care.

Managing technologyJupiter provides access to all of the latest medical

ANALYZING THE ECONOMIC VALUE OF HP CLOUD SOLUTION FOR MICROSOFT

White Paper

Analyzing the Economic Value of HP Cloud Solution for Microsoft

By Mark Bowker, Senior Analyst and Kristine Kao, Research Analyst

December 2012

This ESG White Paper was commissioned by HP and Microsoftand is distributed under license from ESG.

Analyzing the Economic Value of HP Cloud Solution for Microsoft

By Mark Bowker, Senior Analyst and Kristine Kao, Research Analyst

CAPITALIZE ON THE NEXT PHASE OF VIRTUALIZATION

Business white paper

Capitalize on the next phase of virtualizationHP Virtualization Solutions: transform your business, virtually

GETTING THE MOST FROM YOUR CLOUD IMPLEMENTATION

Getting the Most from Your Cloud Implementation: How Hardware and Software Integration Provides a How Hardware and Software Integration Provides a

Competitive Advantage

www.frost.com

An Executive Brief

Sponsored by

Hewlett-Packard

November 2012

Getting the Most from Your Cloud Implementation: How Hardware and Software Integration Provides a How Hardware and Software Integration Provides a

Competitive Advantage

WHY LINUX VIRTUALIZATION IS READY FOR PRIME TIME

ADVANCING BUSINESS VALUE THROUGH VIRTUALIZATION

White  Paper

Advancing Business   through  VirtualizationQuantitative  and  Qualitative  Insights

By  Mark  Bowker,  Senior  Analyst,  and  Perry  Laberis,  Research  Associate

March  2013

This  ESG  White  Paper  was  commissioned  by  HPand  is  distributed  under  license  from  ESG.

©  2013  by  The  Enterprise  Strategy  Group,  Inc.  All  Rights  Reserved

Business  Value  through  Virtualization

ntitative  and  Qualitative  Insights

AVOIDING THE STALL: RIDING THE MOMENTUM OF THE NEXT LEVELS OF DATA CENTER VIRTUALIZATION

W H I T E P AP E R

A v o i d i n g t h e S t a l l : R i d i n g t h e M o m e n t u m o f t h e N e x t L e v e l s o f D a t a c e n t e r V i r t u a l i z a t i o n — A B u s i n e s s V a l u e P e r s p e c t i v eSponsored by: HP

Richard L. Villars Randy PerryJed Scaramella John DalyMarch 2013

E X E C U T I V E S U M M A R Y

IT executives at organizations large and small have successfully virtualized a large portion of their server infrastructure over the past five years. Today, over 50% of all applications run as virtual machines (VMs) on a virtualized server, and in many large organizations, levels of virtualization often exceed 80%.

These efforts reduced datacenter capital costs, heightened asset utilization, and enhanced IT staff productiv many datacenters tend to hit a barrier and stop short of successive virtualization. They anticipate diminishing returns as they evaluate continued virtualization of performance-sensitive, mission ing overloaded storage and network facilities, demands for overprovisioning of storage capacity and disruptions in administration workloads.

Their other major concern is about the never for more agile IT service delivery. While server virtualization allowed IT organizations to deliver applications in days, rather than weeks or months, new applications in areas such as cloud, mobile,and analytics require delivery of IT resources in hours or even minutes. This pace of service creation requires elimination of bottlenecks in storage and network resource provisioning.

It is very clear that datacenter managers need, in addition to server virtualization, the virtualization, pooling, and management of all the other resources that interoperate with their VMs. They require virtualized network interconnects and storage. They also need the tools to manage and automate these converged IT assets as an integrated datacenter system.

This more agile system is the key to enabling the shift to a cloud-based infrastructure IT delivery model.

Solution providers like HP are now addressing the need for more optimized and agile IT solutions. They are delivering virtualized storage, virtual application network (VAN) infrastructure, and the orchestration software to manage and automate all these ingredients as a single system.

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IT executives at organizations large and small have successfully virtualized a large of their server infrastructure over the past five years. Today, over 50% of all

virtual machines (VMs) on a virtualized server, and in many large levels of virtualization often exceed 80%.

efforts reduced datacenter capital costs, heightened asset utilization, and productivity; however, IDC finds that many datacenters tend to

and stop short of successive stages of datacenter resource virtualizationanticipate diminishing returns as they evaluate continued virtualization

sensitive, mission-critical applications — fearing overloaded storage facilities, demands for overprovisioning of storage capacity, and

administration workloads.

Their other major concern is about the never-ending demand for more agile IT service lization allowed IT organizations to deliver applications in

days, rather than weeks or months, new applications in areas such as cloudand analytics require delivery of IT resources in hours or even minutes.

EMPOWERING WORKFORCES WITH MOBILE WORK STYLES AND CLIENT VIRTUALIZATION

A Custom Technology Adoption Profile Commissioned By Citrix Systems And HP

Empowering Workforces With Mobile Work Styles And Client Virtualization

Introduction

The workplace is changing rapidly to accommodate mobile and flexible work styles, as employees expect the same

computing experience when working remotely as they get in the office. And those expectations are rising rapidly

among all employees not just in the executive hallways or engineering not just in the executive hallways or engineering labs. Companies are becoming

increasingly global and want to tap into offshore talent while still securing access to corporate data and applications alent while still securing access to corporate data and applications alent while still securing access to corporate data

anytime from anywhere on any device. Today, many firms are embracing bring-your-own-device (BYOD)

programs and innovative uses of virtualization technology, from the cloud to the data center to the endpoint device

(see Figure 1).

Figure 1

Welcome To The Multidevice World, In Which 90% Of Employees Use Two Or More Devices For Work

Base: 200 enterprise IT hardware decision-makers in North America, Europe, and Asia

Source: A commissioned study conducted by Forrester Consulting on behalf of Citrix Systems and HP, September 2012

To discover more about mobile work styles and client virtualization trends in today’s enterprises, Citrix Systems

and HP commissioned Forrester Consulting to survey IT decision-makers in North America, Europe, and Asia for

this Technology Adoption Profile (TAP). Coupled with Forrester’s existing Forrsights data, we found that IT is

turning to client virtualization to manage the growing complexity that BYOD programs and mobility initiatives

have created and is embracing end-to-end solutions to overcome the toughest client virtualization challenges

concerning cost, performance, scalability, and security.

Data Shows Surging Demand For Mobile And Flexible Work Styles

Five years ago, when the average employee toolkit was comprised mostly of a single operating system (OS) on

standard desktop or laptop hardware and email-based collaboration, IT had control over the entire technology

anytime from anywhere on any device. Today, many firms are embracing bring-your-own-device (BYOD)

programs and innovative uses of virtualization technology, from the cloud to the data center to the en

Welcome To The Multidevice World, In Which 90% Of Employees Use Two Or More Devices For Work

FEATURED WHITEPAPER

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FEATURE

MAkING THECLoUDSAFE

FoR YoURoRGANIzATIoN

By Howard solomon

16 I SPECIAL CLOUD ISSUE

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SPECIAL CLOUD ISSUE I 17

FEATURE

Cloud services are hot – almost every service provider offers them,

almost every IT news organi-zation writes about them and almost every Canadian CIO and IT manager is suspicious of them.

Want proof? According to 2012 IDC Canada study sponsored by Telus Corp., more than 85 per cent of 200 enterprises surveyed had “significant concerns” with data security in cloud.

It’s probably the horror stories that make IT professionals’ hair stand on end.

Like this one told by J. Paul Haynes, CEO of eSentire Inc., a Cambridge, Ont.-based managed security provider.

His company was brought in to in-vestigate a little data loss: An employee who’d given notice copied the compa-ny’s entire customer list from a cloud-based CRM application — which he had legitimate access to — before leaving, and then forwarded it to his spouse’s Gmail account.

“It was very scary from this organi-zation’s perspective,” Haynes recalls. “They had no way of detecting this as it was happening.”

“This new cloud world is great,” he said. “It gives utility model, compute on demand, use what you need. From a commercial perspective it’s great — but from a security perspective it raises an organization’s vulnerability by several degrees.

This is the lure and the curse of the cloud.

Cloud services range from the basic (like hosted email such as Gmail) to the common (software-as–a-service of-

ferings like Salesforce) to the complex (the emerging platform-as-a-service).

All promise (relatively) low-cost access-anywhere to applications and compute resources that an increasing number of organizations find irresist-ible – particularly as IT budgets are frozen or cut.

For the cautious, it doesn’t help that industry analysts are cheering on the sidelines. Almost all believe demand for cloud services is only going to grow.

For example, at a VMware Inc. forum last year in Toronto, Forrester Re-search analyst David Johnson predict-ed that software-as-a-service (SaaS) offerings will become the default way organizations get applications. On-premise apps will disappear.

Keep in-house any applications that are unique, he advised; outsource ev-erything else.

Yet in addition to the obvious worries of IT that putting data in the public cloud has security risks, there are few internationally-accepted security stan-dards cloud providers have to obey.

At the most, it’s a risk assessment. Another factor weighing on Cana-

dian organizations is the U.S. Patriot Act, which gives law enforcement agencies access to any data stored on U.S. soil. “The Patriot Act definitely comes into the conversation in almost every occasion as you drill into why (customers) are using or waiting for the right Canadian service to come along to meet their needs,” VMware Canada vice-president Grant Aitken acknowl-edged in an interview.

The Patriot Act is “the elephant in the room,” agrees Jim Reavis co-founder

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18 I SPECIAL CLOUD ISSUE

FEATURE

and executive director of the Cloud Security Alliance, an association for cloud providers, and cloud software and hardware makers that promotes best security practices. “I think that has stalled some adoption”

Nevertheless, Canadian organiza-tions are increasingly investigating and looking forward to cloud services.

It should be remembered that cloud services aren’t inherently dangerous – the biggest names in the business wouldn’t be in business if it was. The question is what should organizations do to minimize the risks?

Arguably the first is to recognize the lesson in the anecdote that started this article: That security breach wasn’t the fault of the cloud service but in the customer’s office.

“Security is a multifaceted problem,” says Adi Kabazo, manager of products and services for cloud services at Telus Corp., “and there’s no one silver bul-let for security. It has to have a holistic approach.”

The Cloud Security Alliance makes the same point, said Reavis: Enterpris-es need to be concerned about security of all their IT systems and information of all forms, including cloud service providers.

So before signing up for a cloud ser-vice, look at data security right under your nose. Does the firewall block the outflow of confidential or personal data? Is staff forbidden from using cloud storage sites like DropBox, where stolen data can be uploaded from an office PC and left for later pickup?

Is staff regularly reminded not to use the same passwords for applications and Web sites? Do they understand the danger that when hackers crack or steal a password for one cloud site, they immediately try it on others?

eSentire’s Haynes also argues that

because of the cloud CIOs or IT man-agers have to be part of upper man-agement to enforce internal security policies, if only to make sure C-level executives understand they have to lead by example.

In addition, Haynes said, it has to be made clear to staff that there will be consequences to misbehaviour. At one of his clients, staff was told all network activity is logged and sent to the corpo-rate compliance officer every six hours. Their personal work on social media sites such as Facebook isn’t be moni-tored — but if law enforcement has to be called to investigate suspicious activity, the logs will be turned over.

Having addressed internal security, an organization has to decide what cloud service to use. The common-sense rule for the cautious is don’t put mission-critical data in the cloud. So, for example, if you’re renting compute cycles for testing an application don’t use real data.

All the experts we interviewed agreed on one policy: Any corporate data should be encrypted before being sent into the cloud, with the provider having no access to the keys.

Which brings us to the stickiest prob-lem: Who to trust to be your provider?

The short answer is it depends on how transparent the service is to ques-tions about its security and privacy compliance, because ultimately your organization has to decide on the risk.

One place to start, suggests Zeus Kerravala of ZK Research, is asking if the provider’s security is as good as your organization’s.

Haynes notes that a reputable cloud service provider should at least be able to show an audit statement from an established accounting firm that its privacy and security controls meets certain standards.