Institute of Business Value: Infrastructure Study Part 2

Catch the latest findings from Institute of Business Value in "Infrastructure Matters Part 2" on how the right infrastructure can fine-tune #analytics based decisions & maximize #cloud economics with #open #innovation #IBMsystems #openpower #storage #smartercomputing

https://m.youtube.com/watch?v=uvIi4arcq_M&sns=fb

6 Tips To POWER Up Enterprise Mobility!

It’s not hard to imagine that every person shares 14 instagram photos every day for a year.  That’s equivalent to 190 Exabytes of mobile data traffic projected for 2018 according to Cisco Mobile Traffic Forecast. Mobile data traffic grew 81 percent last year, 18 times more than all traffic across the global internet in 2000.

The growth comes from videos, smart phones, iOS  devices, 4G connections and M2M (machine to machine connections) goes mainstream.  By end of 2018, there will be more on mobile-connected devices on earth than people – 10 billion devices vs 7.6 billion people!

Lead with mobile

While 67% of CIOs and IT professionals believe mobility will impact their business, 85% of enterprises have no plans to employ a single mobile leader and they are not working too closely with the IT infrastructure team.

CIO Insights says mobile app testing will take up a quarter of IT budget. IBM Worklight Study predicts 75% of Fortune 500 companies will deploy HTML5 mobile apps.  Appcelerator Mobile Study finds that the first apps developed likely to be made up of 38% on B2C, 47% B2B and 63% B2E.

It’s crucial for an organization to consider these areas:

1. Develop Right From The Start

Users are going to want a more valuable experience – consistent user experience, personalized services, more functionality, better reliability and faster response time. 

It’s less complicated and requires less testing for developers to write applications for reliable hardware solutions than is to make software more resilient to compensate for the hardware’s shortcomings. Running with IBM Power lets developers focus on the user experience rather than on infrastructure workarounds.

Power is preloaded with a wide range of tools and applications to simply mobile development, such as WebSphere, which with Power’s SMT8 (the multi-threading technology) makes application development run faster and more efficiently. It saves future worries when you develop the mobile applications RIGHT from the start.

Worklight Foundation software, also part of the power Systems solution portfolio, helps users build, test, run and manage mobile applications. It has an automated versioning that saves time and expense to code and run on any device type, without having to be rewritten, enabling faster time to market and a broader market from these applications.

  

2. Access & Keep Data Secure

To deliver personalization for customers, mobile apps need to link to traditional systems, such as customer, inventory and supply databases.

Tech news reports are full of concern over data management: where data is stored, by whom and for what purpose. Most users are not familiar with data management process or user agreements.

The mobile space in the role of systems of engagement (SOE) needs to link to the traditional systems of record (SOR) where there are structured tools that support a wide array of data processing and data storage.

SORs are critical for delivering mobile experiences.  A physical in-house server allows for both the security and reliability of enterprise data. It helps create a very controlled environment for the data to live.  An internal system is practical for customers with concerns about intellectual property or confidential data.

IBM Power Systems is a mobile infrastructure solution offering security, high performance, reliability and versatility to mobile platform.

3. Process Information Fast

Mobile users expect dynamic content, but they also expect a consistent user experience – in terms of speed, functionality and reliability.  IBM Senior Solution Architect Bruce Semple says, “When you reach for your mobile device, you want to start that app up – you assume it’s going to be there. If it doesn’t work, you might unload it and get a different one.”

The challenge is maintaining the value of the experience while executing complex data-sourcing processes and computations that deliver relevant information to the end user.

This is why infrastructure is so important.  IT departments often go for x86 servers thinking they are cheaper, but they have not considered the cost of losing potential customers or worse, losing customers from not being able to deliver the customized experience expected.

Imagine, on any two-lane road, each lane can support only one stream of traffic in each direction; an eight-lane highway can move more traffic simultaneously, reducing congestion and decreasing the time and energy it takes each vehicle to reach its destination.

This analogy demonstrates how a Power8 system handles data as compared with an x86 server. Having eight processor threads per core (as compared with two threads per core on x86), Power8 is geared to handle the advanced queries faster, keeping response time short so users experience no latency.

4. Built for Big Data

Power8 not only opens the “road”, it creates “paring lots’ for data, with greater memory capacity. Power8 , built for big data, is perfectly suited for the mobile environment. There’s a much larger memory bandwidth and capacity, that means more memory can be placed under a single CPU, providing a better user experience using fewer systems.  Power8’s ability to process and holder larger chunks of information permits the delivery of richer content while maintaining the platform’s immediacy.

Power Systems are about twice as fast on average as leading competitors. If you combine Power hardware with optimized software, IBM Power is 82 times faster on big data. The real benefit comes in when we consider next generation applications with advanced mobile interaction and richer file sizes.

5. Prepare To Scale

Companies who deploy mobile strategies must remember to foresee the growth rate at the time of its inception.  Some companies attempt to launch lightweight apps that an introduction into the marketplace may explode into a large end user base. 

Some think that pubic cloud can help buffer the increase. But if it is not planned as part of the private and hybrid cloud strategy, it will not cater to the viral adoption that may trigger dramatic increase in user volume.

Unexpected events can trigger flash adoption of a mobile platform. In some instances, the change is limited to such a short period of time that extending the server sprawl to compensate would be wasteful once traffic returns to normal levels.

For retailer Bin-Ton, this was the case during the 2013 holiday season. As is true of many retailers, ecommerce business sees its highest traffic during the holiday season. Unlike brick and mortar equivalents, if an online or mobile site crashes, there is no backup system. The previous year Bon-Ton had seen its x86 servers reach a peak utilization of a dangerous 95%-96%. IBM was able to transition them over to PowerLinux servers that were fine-tuned to provide a per-core throughput 2.5 times greater than they were seeing previously.  This translated to using only 50% of the server’s computing power under the same level of stress.

Power Systems are resilient enough to allocate more computing power in these instances, scaling with demand to constantly deliver a consistent user experience, no matter how many people are connecting.

6. Open Development & Mutual Innovation

To accommodate the immediacy of today’s mobile market and help people customize their systems, Power’s Coherent Accelerator Processor Interface (CAPI) capabilities open the door for vendors and members of the OpenPower Foundation to add hardware and software accelerators tightly coupled to the Power system.

Power’s OpenPower Foundation lets technology companies collaborate for mobile, so any company can help enhance the capabilities of the Power infrastructure.  This offers a stream of innovation that is available to Power Systems clients.

The mutually beneficial consortium establishes an ecosystem of innovation around mobile development, says Bruce Anthony, CTO of Mobile & Wireless Systems, IBM STG. It offers a greater degree of openness and innovation in terms of how technology is made available to infrastructure companies. And as they understand the unique needs of their customers and the infrastructure that they’re supplying, they can apply that knowledge about their customers directly into the technology and either add new instructions or take advantage of the CAPI interface to create accelerators.

Enable The Future

With the evolving mobile landscape, there will be challenges for developers and enterprises alike.  Our advice is – don’t think about today’s mobile apps, think about what you could do with mobile in the future.  We should enable the future.

IBM-Apple Strikes in Enterprise Mobility with “AppleCare for Enterprise”

This week, Apple has launched a new AppleCare for Enterprise website as the first output from the Enterprise Mobility Deal that Apple (AAPL) and IBM made in July 2014.

Apple enterprise customers will be able to receive round-the-clock phone support to priority on-site repairs and personalized assistance from Apple experts so that businesses can keep their Apple devices working smoothly.  Each company subscribing to AppleCare for Enterprise will get a “personal liaison” to handle its account, who can respond to urgent issues within an hour. Businesses can sign up for onsite hardware service for either two or three years provided by IBM Global Technology Services.

Customers can also get free replacements for “up to 10 percent” of covered iOS devices — so if one out of 10 of your employees has fumble fingers and cracks their screen, businesses can get those iPhones and iPads replaced without additional cost.

Let’s check out what else is in store from  enterprise app pact of Watson meets iPad that the two IT heavyweights Apple and IBM had forged in July 2014.

The Apple-IBM Enterprise Mobility Deal

Dubbed the IBM MobileFirst for iOS, the collaboration includes:

• Apple and IBM will create more than 100 vertical-focused enterprise apps built only for the iPhone and iPad. Target markets include retail, healthcare, banking, travel and transportation, telecommunications and insurance starting in the fall.
• IBM's cloud services such as device management, security and analytics will be optimized for iOS. Private app catalogs and productivity suites will be available. Services will be available on IBM's Bluemix development platform.
• AppleCare will be tailored for enterprise deployments with support on-site via IBM.
• There's a commitment to use IBM's Fiberlink MaaS360 for mobile device management. 
• Apple is standardizing on IBM's analytics and big data apps. 
• IBM will package device activation, supply and management for the iOS partnership. IBM will also sell industry-focused iPhones and iPads as a bundle.
• Big Blue's 100,000 consultants will push Apple wares in the field.
• And finally, IBM's financing arm will be in on the deal.

What’s In It For Apple

While Apple's iOS dominates the consumer market space, it is no where to be seen as Androids rule in the enterprise space.

Apple’s CEO Tim Cook faces increasing competition in the consumer space, saying “The market opportunity reference is critical. Apple has been knocked for lack of an iTV or iWatch (at least for now), but if it mines the enterprise better it'll keep the cash cow going for years.”

With IBM’s vast army, Apple can now get into the enterprise space without having to exclusively build and market to corporations.

Jefferies analysts Sundeep Bajikar and Mark Lipacis said to investors that the Apple-IBM partnership could bring in 42 million new users for Apple. That could amount to billions in iPhone and iPad sales, giving Apple a needed boost to iPad sales in particular — especially in the enterprise.

Apple’s Tim Cook adds, "We're putting IBM's renowned big data analytics at iOS users’ fingertips, which opens up a large market opportunity for Apple. This is a radical step for enterprise and something that only Apple and IBM can deliver.”

What’s In It For IBM

IBM CEO Ginni Rometty said the alliance will transform "the way people work, industries operate and companies perform."

Besides the “cool” cred, IBM now gets to resell the devices, have them configured out of the box, preloaded with apps, software and policies such as security that the enterprise needs.  IBM gets the supply, activation and mobile device management (MDM) business.  IBM will also offer app development for custom-built apps, using its big data, analytics and software stack.

Apple's Tim Cook shares about the apps, "We think that the core thing that unleashes this is a better go-to-market, which IBM clearly brings to the table. But more importantly, apps written with mobile first-in-mind. Not all of the enterprise apps written for iPad have been ported from a desktop arrangement and not taken full advantage of mobile."

IBM Gets A Head Start in Mobile Enterprise Leadership

Forrester analyst Frank Gillett believes, “The Apple IBM partnership is a landmark agreement. Given IBM’s market strength and coverage, this partnership gives Apple enterprise capabilities and credibility at one stroke -- and gives IBM a premium advantage in the race for mobile enterprise leadership.”

The AppleCare for Enterprise is only the first. Watch this space for more new innovations to come.

Move to Value: IBM Invests In Systems

As IBM consolidates the Microelectronics manufacturing with GlobalFoundries, questions were raised as to whether this would be further divestment of the systems business and why IBM would pay GlobalFoundries $1.5 billion in cash over the next three years to take the chip operations off its hands.

In a 10-year partnership, GlobalFoundries will supply IBM with Power processors in exchange for access to IBM's intellectual property. That would allow GlobalFoundries to access key chip making technology and guarantee the chips  IBM needs for its systems, like mainframe, power servers and its Watson data-analytics technology.  

IBM Divests Microelectronics To Invest In Systems

IBM needs “to narrow their focus, get their A-game on, and any distractions from a core business perspective, such as this deal, need to be put in the rear-view mirror," FBR Capital Markets analyst Daniel Ives told Reuters.  "From an IBM and investor perspective, it takes one troubled area out of the core franchise."

The cost of making chips has risen, and semiconductor development is getting more complex, making the business less viable.  Besides using its own Power chips, IBM also sold them to game console manufacturers like Sony, Nintendo and Microsoft.  However, IBM still lacks scale and despite generating $1.4 billion revenue, has $700 million loss in the last year.  

According to Ana Hunter, Vice President of Foundry Services at Samsung, putting together a factory to make the next generation of semiconductors will cost about $10 billion. Globalfoundries will book around $10bn over the next year in capital expenditures – which shows you just how expensive it is to compete in the chip building side of the industry.  It makes sense to consolidate the manufacturing with foundry to pool investments and risk.

IBM East Fishkill Factory to be transferred to GlobalFoundires

(Image Courtesy of Dutchess County Economic Development Corporation)

Matt Eastwood, an analyst at IDC, said the deal makes sense because of the changing economics of the semiconductor manufacturing business. "The cost of semiconductor manufacturing is going to continue to increase, making it a business where scale will matter more and more going forward…(GlobalFoundries) also hopes that IBM's focus on growing the OpenPower ecosystem will create new demand for semiconductor manufacturing services.”

By divesting the semiconductor manufacturing business to GlobalFoundries who can scale up and build Power cores for a wider customer base, IBM will also free up capital to be reallocated to other areas.  IBM will focus on the research and design of high-end chips, servers and super-computers.  This is part of their focus on enterprise-class systems innovation.

Arvind Krishna, General Manager of IBM's Manufacturing & Development said "Over time, you will get the at-scale manufacturing that actually assures the longer-term sustainability of these systems," he said. 

“This is another milestone in our journey to transform the IBM Systems and Technology Group,” said IBM Senior Vice President, Tom Rosamilia. “The agreement focuses on the strengths of each company. GlobalFoundries will drive continued leadership in scale manufacturing becoming our premier supplier of semiconductor technology, and IBM will continue to create breakthrough R&D innovations that will fuel the next era of computing systems."

 IBM Watson, a cognitive computing built on IBM Power System

IBM’s Commitment to Systems

The systems strategy is clear: “We will continue to be a leader in high-performance systems, storage and cognitive computing, while continuing to invest in advanced semiconductor R&D.”  IBM’s research mission is unchanged -- to deliver technology leadership that differentiates their systems today while continuing the leading edge work to create the advanced semiconductor technologies of the future.” said IBM Senior Vice President, Tom Rosamilia.

Over the past year, IBM has made bold decisions, steering its portfolio toward world class systems and technology innovation. The company has

• deployed new cloud and mobile solutions for the mainframe; 
•  opened the Power architecture to more than 60 members through the OpenPOWER Foundation to expand the use of the architecture;
• invested in software defined storage capabilities and high performance Flash;
• announced investments in the next generation of chip technology, 
• developed cognitive computing systems which can help process natural language and unstructured data created by sensors and mobile devices, and
• speed up development of Watsons which is already making impact in areas like personal medicine

All of these actions reflect IBM's deep commitment to lead in enterprise-class systems.

"Given that all the design, all the software, all the operating systems, all of the firmware and all of the other system advantages that we put in remain with IBM, my basic answer would be it does not impact our mainframe, or power system or our storage clients at all," he said. 

IBM OpenPower Foundation Members at all layers of the stack

The OpenPOWER Foundation members are developing their own Power chip for server applications. Founding members include Google, Samsung, Tyan, nVidia, Mellanox.   

Google has also shown an interest in Power architecture, said Richard Dougherty, founder of analyst firm Envisioneering Group. While its large-scale data centers run mostly off x86-based systems, Google has also designed a Power server board.

Google mother board with IBM Power chip

 

The highly regarded IBM Research labs, which boasts Nobel Prize winners on staff, will also continue to rethink and reshape computer design. IBM in July announced it would pour $3 billion over five years into hardware research that could lead to quantum computers and cognitive systems that mimic brain functionality. A brain-like chip was announced in August, and the researchers have made progress in investigating chip materials beyond silicon. For example, this is a 16-chip version of IBM’s neurosynaptic (brain-like) computer.

16-chip version of IBM's neurosynaptic (brain-like) computer