Posts Tagged ‘HP’

Human Services ends IBM, HP outsourcing

January 19th, 2012

In his first interview with ZDNet Australia since taking over the role from long-running CIO John Wadeson in October last year, the former ANZ CIO said that as part of the department’s Service Delivery Reform program, long-running contracts that IBM has with Medicare and HP has with the Child Support Program (CSP) will not be renewed, and will instead be brought in house, in line with other agencies in the mega-department.

“It’s about value creation,” he said. “The Centrelink program … has a huge capacity, because of the strengths that can be shared. Harvesting that value is what we’re going to be doing in the next two to three years.”

In this financial year’s Federal Budget, the department was given $530 million to consolidate the ICT systems for each agency within the department. DHS also successfully integrated the Department of Veteran Affairs completely at the end of 2011, and Sterrenberg said that should the government require it, DHS is in a good position to acquire other government agencies.

“What we’ve created by the integration of the agencies is set up, almost like the business term would be, a mergers and acquisition capability to [integrate other agencies]“.

Sterrenberg said that this capability would work better for agencies that deliver services directly to the public, and would be particularly useful in the event of a disaster.

“You want to be able to deploy a range of services to the broader community, and having a service arm like DHS enables that,” he said. “Everything we do, we think about whole of government. I think there’s a lot of good thinking around where we can help each other. If you can do it working together, that’s the way to go.”

One of the major projects under the Service Delivery Reform program is to consolidate 14 DHS datacentres into just three, and Sterrenberg revealed that the department is already ahead of schedule on this initiative.

“We’ve completed a lot of the mainframe work. We’ve moved CSP onto the mainframe; we’ve moved DVA onto the mainframe. We’ve moved most of CSP out. We’ve closed Macquarie and Bruce, [and] we’ve got most of the stuff out of Belconnen.”

Sterrenberg said that the timetable for moving out of datacentres tends to be determined by when the leases for those locations end. The department is now in the planning stages for moving Medicare out, which Sterrenberg said could have been done earlier, were it not for the IBM contract.

“We believe we could have gone quicker with Medicare, but we have a sourcing contract with IBM, so it makes sense to do it that way,” he said.

Despite the hurdles, Sterrenberg said that by the end of 2012, the department will be six to nine months ahead of schedule on the datacentre consolidation.

Moving to a common communications platform would be a much larger task for Human Services. The infrastructure planning, such as the directory design for the platform, was completed in September, Sterrenberg said, and a small pilot of 500 desktops running Windows 7 was completed at the end of 2011, but there is a huge task ahead to roll it out to all 37,000 DHS staff.

“It’s about bridging multiple domains, multiple networks, moving four to five SoEs [standard operating environments] to a single SoE, to move to a single IP-addressing layer across everything, and create a single environment for all DHS people,” he said.

“The hard work is right to get the construct right, so that it cannot just service the current DHS agencies, but also whatever comes beyond.”

The aim is to have 10,000 desktops rolled out by June, and an additional 15,000 by the end of 2012, leaving just over 10,000 left for the next year. The desktops will have thin clients, so department staff will be able to log in using a swipe card, as part of a two-factor authentication process. This roll-out will also bring about the end of Lotus Notes for Centrelink and Medicare, which has been on the cards since 2010.
Moving from ANZ to Human Services

Sterrenberg praised the legacy of his long-time predecessor John Wadeson, and the 3800 IT staff under him.

“It’s actually better than expected. I was very pleasantly surprised that the previous CIO John Wadeson left a really good legacy. You don’t do that overnight; it’s four or five years in the making,” he said. “Particularly in the quality of staff we have in the ICT are exceptional. We have a very sound base to work from.

“I would rate some of our mainframe teams as the best, certainly in Australia, if not broader.”

He said that he sees a lot of similarities between coming from a bank to moving to Human Services, particularly given the volume of payments the department makes to the general public, and the back-end technologies used. He said that desktop consolidations and desktop roll-outs are all experiences that the private sector knows well, although he said that the government is about a year behind corporate Australia.

One of the major differences, he said, is that the government role is a lot more transparent.

“Everything you do is very open for all to see, and I think that is the right thing. We’re dealing with huge amounts of investments of public money, and, as such, that level of scrutiny has to be there,” he said.

But that’s a powerful motivator, too.

“One of the things I was saying to an ex-banking colleague the other day is that you don’t wake up without motivation. Everything you do is delivering a service to the community. And you just know it has a huge responsibility attached to it, because if our systems do not pay, people will not have money for rent, will not have money for food, in some cases,” he said, adding that his staff feel that way, too.

“They’re absolutely passionate about providing service to their customer, and in some way that motivation is not always there in corporations I’ve worked for in the past,” he said.

Recruiting the right skills set is still an issue for Human Services, though, and he said that the department is looking for more workers outside of Canberra, where it is much tougher to find workers. The department is also continuing to work with universities to encourage school leavers to take up ICT degrees to get those skills, but he said that a lot of it has to do with public perception of those roles.

“I think there is a view that you are a code cutter, whereas nowadays, a very small portion of the work is code cutting,” he said.

He said that working for the government is also undersold to students.

“We actually are using some of the latest technologies to serve the communities, and I don’t think it is well understood. Everything that you do in corporate you can do for us and more. The cherry on the cake is that you’re serving the community. You’re making a difference.”

Source:http://www.zdnet.com.au/human-services-ends-ibm-hp-outsourcing-339330003.htm

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Elders inks seven-year outsourcing deal with HP

December 7th, 2011

In an announcement yesterday, HP revealed that diversified local company Elders had signed it for a seven-year infrastructure and applications services agreement. Elders is a 172-year-old company incorporating the Elders rural services businesses and the automotive and forestry operations acquired and developed by Futuris Corporation.

According to the agreement, Elders will utilise cloud technology to deploy its enterprise technology refresh program – Project Connect. HP Enterprise Cloud Services will provide Elders with secure processing capacity and real-time data access that will enable the company to respond quickly to the changing business conditions intrinsic to agribusiness. This will help Elders to drive innovation by getting new services and products faster to the market, avoiding the typical protracted capital acquisition and systems deployment processes.

Shaun Hughes, Chief Information Officer, Elders Australia stated that outsourcing to HP was an integral part of the company’s transformation program. “HP’s cloud will provide us with a robust infrastructure and service delivery model that enables us to scale up for each of our program releases, and the applications methodologies and tools HP brings to the table enable us to de-risk the legacy development components of our build,” Hughes said.

In October, HP had announced new solutions and services based on HP Converged Infrastructure that would help businesses and service providers to efficiently deliver cloud services and to minimise risk, lower costs and leverage existing investments.

As part of a phased four-year program, Elders can utilise a combination of existing technology along with automated processes and procedures for application and infrastructure management and security. HP will also offer its full range of Technology Outsourcing services to modernise and refresh the technology environment. HP Data Centre Services, according to the vendor, will help to guarantee high accessibility to IT services and uninterrupted reliable operations. HP also will deliver Network Management Services to remotely manage and monitor Elders’ 540 distributed networks across Australia.

Additionally, HP will provide a set of Security Services, offering comprehensive security oversight of the managed environment in accordance with Elders’ security standards and policies. To plan for a cloud environment, HP will use HP Storage, ESL E-series Tape Libraries and HP BladeSystem servers to refresh Elders’ hardware.

HP will synchronise Elders’ technology infrastructure with the Information Technology Infrastructure Library (ITIL) Version 3 service management framework using products from its HP Software suite.

HP will also supply Workplace Services for all of Elders’ computing devices, including printers, handheld devices and desktop and notebook PCs. All of these infrastructure and applications services will be provided from HP global delivery centres in Australia and the Philippines, minimising risk for clients like Elders while offering them greater flexibility and cost efficiency.

Source:http://delimiter.com.au/2011/12/07/elders-inks-seven-year-outsourcing-deal-with-hp/

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Meg Whitman on the CA economy, layoffs and outsourcing at HP (VIDEO)

October 6th, 2011

Meg Whitman is Day 8 into her new gig as HP CEO, but she took time out to honor a previous commitment to talk to the Public Policy Institute of California in SF about how to grow the state’s economy.

Much of it sounded reheated to those who have followed her gubernatorial campaign. State needs to cut regs, increase “efficiency” of government by 5 percent (not a lot of detail on how, or how many people to lay off), keep taxes low, and promote charter schools. For a complete look at Meg’s slides, check out the PPIC site here. We’ll revisit this later.

Afterward her speech, Meg was back in CEO mode — and indeed she seemed much more relaxed in handling biz-related questions than she did as a guv candidate fending off political queries. Not that they got any easier. First one: Will there be any layoffs at HP? Too early to tell. Check back in mid-November, she said.

Given that her talk was about growing the California economy — and the problems of doing biz in what she described as a high-tax, over-regulated state, — we wanted to know if she would have any hesitation outsourcing HP jobs or growing the business?

Source:http://blog.sfgate.com/nov05election/2011/10/05/meg-whitman-on-the-ca-economy-layoffs-and-outsourcing-at-hp-video/

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A warning from HP: Don’t get fired over the cloud

September 26th, 2011

In the future, CIOs will get fired for becoming beguiled by the tyranny of choice offered by cloud computing. They will lose control of which applications are running where and where servers are physically located. Costs will run out of control as systems are spun up and left running. And when outages are suffered and the CIO doesn’t know about it, that too will lead to a swift and ignominious exit.

But it is not all bad news. These things can be avoided.

Pete Karolczak, SVP and general manager of Infrastructure Technology Outsourcing at HP Enterprise Services, welcomes the end of traditional outsourcing and embraces the disruption of cloud computing. He says he believes HP’s Enterprise Cloud Services is positioning the company to deliver against real requirements in the market while avoiding the pitfalls that will befall the unwary (at least for the parts that his clients entrust to him).

What the cloud means for wholesale outsourcing is nothing more than an end to the traditional ‘mess for less’ contracts that have dominated the industry since its inception. The challenges of traditional outsourcing contracts, the longevity, the controversy, the legacy and the contract negotiations or renegotiations are about to become yesterday’s war. With wholesale outsourcing, the issue was often about how many processes and their supporting technologies and people would shift to a single third-party supplier.

Today, the cloud does not mean there will be less outsourcing but the landscape will be very different. This landscape will consist of clusters of services. And from a supplier’s perspective this means choosing to operate in markets that guarantee a win.

THE NEW WORLD ORDER
Karolczak welcomes the end of traditional outsourcing. “I recognize it, I’m leading it; I embrace the end of comprehensive outsourcing. It will be replaced by more discreet clusters of services. For my end user [of the future], the application hosting environment, the web hosting environment, the back office enterprise resource planning (ERP) will all be with different suppliers while the network could be at another supplier,” Karolczak says.

“Let’s take data center hosting. You could run your apps in someone’s public cloud. You could try three providers and decide which one you prefer and after one year choose a preferred supplier. The switching costs are relatively low.”

Karolczak advises providers to think as the customer would. “They will be seduced by choice and fragment their operations so entirely that they will regret it within two years. The good news is that we’re going to help them and some will be enlightened enough to help themselves.”

Take for example Infrastructure-as-a-Service (IaaS) and network service provision. Within these offerings there will still be a lot of areas the customer will want to manage itself. Karolczak says as a result he believes we’ll see more and more customers adopting a multiple choice approach when it comes to services.

THE DANGER IN CHANGE
But here’s the rub: “You will be fired as a CIO if you don’t know where things are running. You will be fired if something goes down and you don’t know about it. If you are a CIO and some of your apps are running on Amazon and you don’t know about it then your costs are running out of control. If they are running a mission-critical app and it gets breached, you will get fired.”

Much of this comes down to service management and security. “Those horizontals must traverse this fragmented world of choice. Service management in the New World Order changes dramatically,” Karolczak says. “In the Cloud you had better know which applications are in the Cloud and which cloud they sit on. One of the delusions of the Cloud is that you have unlimited bursts of separation. But you can’t, in most situations, separate the apps from the Cloud.”

No one jumps to the future state instantaneously, and there are key differences between the traditional outsourcing deal and the cloud options, he says.

“The beauty of the cloud is that you don’t need to move all 2,000 applications at once. You move one app at a time, pilot one and then move three. This is the perpetually hybrid model. You’ll never be in a future state because once you get there there will be a new future state.”

This acceptance of forever being in flux appears to be a major, if little recognized, aspect of moving to the Cloud.

More and more customers will take this route, Karolczak says. Within large suppliers every major service line will expose its new generation as a service offering. Every new customer or renewal of existing deal is looking at going discreet. “I will try to win seven out of seven, or I will look to win three out of seven [cloud deals from one company],” Karolczak says, highlighting the fragmentation that is about to become a major part of outsourcing.

RETHINKING APPS
The attraction of all of this disruption is the promised reduction in cost and introduction of flexibility. Karolcak says the beauty of cloud is that it is a destination that is so much cheaper than anything ever seen.

“By the nature of the destination this is a pennies on the dollar offering,” Karolczak says. But then you must think of how you get there. “You need to transform your apps to get there,” he says. “There is no such thing as free cloud. The annuity business is cheap, and you need to rewrite your apps to get to the cloud. You need to stop expecting customized infrastructure for every app. You need to change your apps not to care. If you need high availability you need to build it into the app.”

“We (HP) are also focusing on the journey to help customers take advantage of the annuity price point. But the next time you install SAP you can’t run it on Amazon, it doesn’t work that way. Even on a hardened cloud, it is more standardized than anything before in order to hit the price point,” Karolczak says.

“In the past we have trained our application teams to have the infrastructure customized for them and now we need to wean them from that. The apps need to run on standardized infrastructure which is the nature of cloud.” It is not ‘one size fits all’ and there are options in configurations which mean you most certainly can’t say: “I want it exactly the way I always had it.” The apps need to modernize to fit on the Cloud.

FROM CHAOS…
“The beauty of cloud — this spill and fill —changes what was operation’s worst enemy. You can pay as you go (because you don’t have to put the 1,000 servers in the Cloud).” Managing change more methodically means your journey to the Cloud is not as chaotic. “It is risky,” Karolczak says. “But pay-as-you go is really good for you and really good for me. I don’t inadvertently sign up for a fixed contract and lose money because I guessed wrong. You don’t put me out of business and I don’t put you out of business because I’m milking you dry. It is a natural intuitive commercial model. Commercials are tough enough and whenever you have a predictable commercial model it is actually a good thing.”

“It is also outcome based. The phone bill isn’t a $1bn black-box bill, but it is a line item — if you turn the knob to the right the volume goes up.” The cloud also promises repeatability. The more consistent, the more reliable, the more scaleable means the better the quality. Suppliers will be happy to have fewer escalations, and customers will as well. The cloud also gets outsourcing suppliers out of the ‘mess for less’ outsourcing model. “We actually get to become really good at certain things we do well multiple times. Mess for less is a hard business,” he says.

THE CLOUD FOR HP
So where is HP with its cloud goals?

“When you set up an enterprise cloud instance — it is like a hotel — I can’t sell rooms until I build the hotel and I can’t build the hotel until I own the land. The good news is I own a lot of land, a lot of data centers around the world. I first need to build the core then I can start adding blades,” Karolczak says.

HP is going to set up ten-plus cores around the world. (“We’re still doing business planning.”) He says: “That will include an equally large number for messaging collaboration cloud services. So by the end of 2012 we’ll have global presence in cloud and those customers who are able to move will start the journey. Will anybody be 100% moved by the end of 2012, I doubt it.”

Source:http://www.datacenterdynamics.com/focus/archive/2011/09/dont-get-fired-over-the-cloud

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North American Data Center Outsourcing Market 2010-2014

September 16th, 2011

Technavio’s analysts forecast the Data Center Outsourcing market in North America to grow at a CAGR of 12 percent over the period 2010-2014. One of the key factors contributing to this market growth is the increasing need to reduce data center capital and operational costs. The Data Center Outsourcing market in North America has also been witnessing increasing adoption of private cloud-based data center outsourcing. However, the growing number of end-users’ concerns for data center security could pose a challenge to the growth of this market.

Key vendors dominating this market include HP, IBM, CSC, and Dell.

Technavio’s North America Data Center Outsourcing Market 2010 -2014 report has been prepared based on an in-depth analysis of the market with inputs from industry experts. The report focuses specifically on North America and the current Data Center Outsourcing market landscape and its growth prospects. The report also includes a discussion on the key vendors operating in this market.

Source:http://www.marketwatch.com/story/north-american-data-center-outsourcing-market-2010-2014-2011-09-15

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HP announces inauguration of two new facilities in Bangalore

September 9th, 2011

HP Enterprise Services announced the inauguration of two new facilities in Bangalore, India. The new facilities will increase the capacity of the Best Shore hub in India and will offer infrastructure technology outsourcing (ITO) services to clients across the globe in a shared service delivery environment.

Earlier, HP had announced that it expects to add more than 500,000 square feet of real estate in FY11 through three new facilities in Bangalore and one in Chennai to deliver multiple services to clients across the globe. Additional facilities will be added before year end and will increase the hub’s capacity to deliver applications as well as infrastructure technology outsourcing services in India.

HP’s Best Shore hubs are designed to enhance the client experience by giving them access to technical expertise and tailored solutions to meet their unique requirements. The hubs also help reduce delivery complexity by providing multiple services from a single location and support rising client demand for low-cost, scalable services. They also integrate with other delivery centers to create a global sourcing model that is balanced, flexible and best-in-class.

“Global sourcing has the potential to not only support short term, tactical goals of cost savings, but also long term advantages of increased competitiveness, efficiencies and above all, innovation,” said Prakash M S, director, Best Shore ITO India Center, HP. “At HP’s Best Shore ITO India Center, we are driving non-linear growth through automation and innovation.

This new facility will deliver next generation infrastructure services to our clients across the globe. Given HP’s leadership in this space, our employees in India get the opportunity to move up the value chain and deliver high-end infrastructure engineering and architect roles as well.”

HP has additional delivery centers worldwide that are critical to its overall sourcing model, providing specific skills, languages and time zones that clients require. Other hub locations include Bulgaria, China, Costa Rica, Malaysia and the Philippines. These mature HP Best Shore locations operate in time zone-relevant countries and offer a significant employee base that can deliver highly scalable services to clients.

Source:http://www.indiainfoline.com/Markets/News/HP-announces-inauguration-of-two-new-facilities-in-Bangalore/5238486099

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HP opens two sprawling outsourcing centres in Bangalore, expansion on track

September 8th, 2011

HP, arguably the World’s largest IT company, has opened two out of the four new IT outsourcing facilities it plans to add in India this year.

The two facilities, part of its plan to make India one of its six global hubs for services, will provide Infrastructure (technology) Outsourcing services for HP’s global clientbase, it said.

In all, it is set to inaugurate 4 new buildings in 2011 to house its burgeoning Indian IT workforce — three in Bangalore and one in Chennai — totalling a whopping 500,000 square feet.

It said it remained committed to meeting its expansion target for India.

HP, which was primarily a computer maker seven or eight years ago, burst on to the services market after it found its main competitor IBM make the transition profitably even as the hardware market became commoditized.

Despite acquiring the IT services firm EDS, HP is still estimated to have only around 200,000 services employees, or about half of what IBM has. The latter is estimated to have 25-30% of its workforce in India.

HP’s announcement at making India a “Best Shore Hub” — its market term for a services hub — was seen as an effort to similarly take advantage of the mature, cheap and abundant IT services talent base in the country.

Its other former-hardware-turned hybrid competitor, such as Dell too had announced an aggressive plan to make India its hub for services.

The annoucement has come barely two months after Microsoft unveiled a sprawling 154,000 square feet facility in Bangalore.

HP had announced that it will start recruiting talent to fill in the empty chairs as well.

IT is one of India’s biggest sources of employment — both direct and indirect, with millions of engineers drawing their livelihood from the business.

Source:http://rtn.asia/1000_hp-opens-two-sprawling-outsourcing-centres-bangalore-expansion-plan-track

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