Welcome!

Linux Containers Authors: Elizabeth White, PagerDuty Blog, Liz McMillan, Pat Romanski, Yeshim Deniz

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
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
SYS-CON Events announced today that SourceForge has been named “Media 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. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
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.
SYS-CON Events announced today that B2Cloud 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. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" 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. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that NetApp has been named “Bronze 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. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion 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. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.