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ANN LIVERMORE
"Building the Next Generation of IT"
HP Technology@Work conference
Berlin, Germany
April 25, 2006
© Copyright 2006 Hewlett-Packard Development Company, L.P
All rights reserved. Do not use without written permission from HP.
Good afternoon. On behalf of HP, welcome to the first HP Technology@Work conference.
It's appropriate that we are holding the first of these conferences here in Berlin. Germany holds a special place in our corporate history. Back in 1959, when HP was only 20 years old, we set up our first manufacturing site outside of the U.S. in Boeblingen.
That successful first step - and the wonderful hospitality of the German people - gave us the confidence and expertise to become a truly global corporation, with operations in more than 170 countries on five continents around the world.
With that single act, HP became an international company.
And we grew from there.
Today, HP is on a journey to becoming the leading information technology company in the world.
I have been with HP for more than 20 years and I have never seen this company with greater capabilities or more resources to serve customers than it has today.
Starting with Mark Hurd - who has just celebrated his one-year anniversary as our CEO - we have one of the strongest leadership teams in the world.
We have both depth and breadth in our senior management team - a group that includes both proven veterans who, like myself, have many years of service with HP, and new leaders who have made their reputations elsewhere and are bringing an infusion of fresh thinking into the company.
As a result, the offerings and the expertise that we're able to provide to our customers continue to lead the industry, whether you're using our printing and imaging solutions, our PCs, our servers, our storage, our software or our services.
As I've said, HP's mission is to serve our customers as the world's leading information technology company. This is true for the consumer, capturing, printing and sharing digital photos using HP products; the small business person saving time and money by automating their finances - using HP computers; or the CIO of a global enterprise conducting millions of daily transactions, securely and reliably, using HP systems, software and services.
For our business, government and education customers, our mission is to be the best at helping them manage and transform their IT environments.
I'd ask you to remember that phrase: "To manage and transform their IT environments." We have chosen these words very carefully.
We say "manage" because we recognize that you have a business or processes to run - today. You have business challenges that you need to meet - today. You need to see measurable results - today.
And HP has the industry leading products and services to help you manage your IT environment today. Our HP OpenView software and our management services are key parts of HP's solution.
We say "transform" because we know that you are also concerned about where you need to be tomorrow.
Both technology and the competitive environment are changing so fast that you must be agile to change.
We can collaborate with you to design, build and manage the next generation of your IT environment.
Today, CIOs and IT decision makers are consumed with addressing four major priorities.
First, they want to maximize returns - on investment in capital equipment, human resources and every other aspect of the business.
Second, they need to mitigate risk, whether it's the continuity of the business or its overall security.
Third, they need to improve business performance, whether it's the service levels that are delivered by IT or by their business processes.
Together, these drivers - maximize returns, mitigate risk and improve performance - represent three traditional areas of focus.
But, in light of the realities of the world today, we must add a fourth driver, one that reflects the rapid change that virtually every organization - private or public, large or small - must face.
The fourth driver is the need to increase agility, and it's at least as important - and perhaps even more important - than the other three because the days of implementing IT for IT's sake are over.
You need to have IT enable you to be a more adaptive enterprise. You need to use IT to compete successfully in a dynamic marketplace.
To address that fourth need, business leaders must ask themselves several questions:
- When a decision is made, how fast can my IT respond?
- When I need to implement or deploy a solution, can my team and I manage every point that will be affected?
- How long will the change take?
- How much will it cost?
- What kind of resources will it require to deploy as well as to maintain on an ongoing basis?
The Adaptive Enterprise can help you find the answers.
At HP, we first started talking about the concept of the Adaptive Enterprise almost three years ago. And while some of our competitors have recently changed strategies, customers all over the world tell us that our message still makes sense.
Many of you have come to understand the benefits of becoming an Adaptive Enterprise. Some of you have taken the first steps in the journey towards using IT to make your business more adaptive to change.
At the same time, you've seen how the solutions that HP offers can help you to solve problems and gain measurable results - right now.
This morning I'll talk about some of the ways that HP can help manage your IT environment today. And I'll talk about some of the areas where HP is investing for tomorrow, to help you transform your IT environment and take advantage of the next generation of information technology.
First, let's look at what HP is doing today to help customers deal with the challenges they face in running their businesses.
I'll highlight four areas where you've told us that you want our help.
In these areas, HP has responded to your concerns by providing solutions that have led to measurable results… by leveraging our products, our services, and the offerings of our partners.
We can help you ensure the continuity of your critical systems and business processes.
We have industry-leading solutions in the area of business continuity and availability, whether it is building a mission-critical system around high-availability servers and storage or making business recovery faster with sophisticated planning and technical support.
No country is immune from the impact of natural disaster. We have seen it in the United States with Hurricane Katrina and the flooding of New Orleans. Both Germany and the Czech Republic have experienced severe flooding this year, with the Danube now flowing at more than twice its normal volume, threatening large parts of Romania and Bulgaria.
Of course, continuity doesn't always imply disaster - it can also mean transformation.
For example, in Nigeria, Access Bank asked us to help them grow their customer base and transaction volumes without any negative impact on performance.
HP teamed with the bank and other partners to drive transformation and ensure continuity - at the same time. Together, we reduced Oracle backup time, which used to take two hours, to just 20 minutes. Maintenance costs were cut by 40 percent. Customer wait-times in branches have been reduced to almost zero.
And all of this has been implemented with no interruptions in service to the bank or its customers.
I'll add that over the past twelve months, Access Bank has acquired two more banks and integrated them seamlessly on the same HP platform.
Everyone needs good control of their information technology.
Control is all about management.
And we have an incredible portfolio of software within our HP OpenView platform to help you get control of your environment.
Let me offer an example.
We installed, and now support, HP systems and software at GloBul, the fastest growing telecommunications company in Bulgaria.
The project was so successful that a company executive says, "having an HP Mission Critical Plan is like having a guardian angel."
Compliance.
You need to be in compliance with Basel II, with EU regulations on data protection, anti-money laundering directives and so on.
Government regulations governing the storage and retrieval of data are affecting everyone.
At Netcom, for example, HP's StorageWorks Reference Information Storage System makes it easy to comply with regulatory requirements. Any email more than three months old is now moved automatically to the HP system where it is indexed, archived and easily retrieved.
This has cut NetCom's Microsoft Exchange storage requirements by around 50 per cent, and users can find any information they need in seconds.
We have created solutions around Information Lifecycle Management - the blending of business processes and technologies to determine how data flows through an environment.
ILM helps end-users manage data from the second that it is created until the instant that it is no longer needed.
Through the skillful application of ILM, combined with our vast storage and services capabilities, we can help you to achieve your compliance obligations efficiently and cost-effectively.
In fact, just yesterday, we announced the launch of the largest Information Lifecycle Management product set in our history.
We are going to deliver an array of storage products, software and services that will enable our customers to accelerate data archiving and retrieval, increase worker productivity and simplify the protection of their customers' critical data.
You need to consolidate your IT environments to reduce operations costs and increase system utilization. This may mean reducing the number of data centers, consolidating servers and storage systems, or integrating application environments.
Let me share just one example of how our customers have addressed the issue of consolidation.
Syngenta is a world-leading agribusiness committed to developing sustainable agriculture through innovative research and technology. Based in Switzerland, Syngenta was formed in 2000 by a merger of Novartis and AstraZeneca and currently operates in every country in the world. I'm going to let you hear the rest of the story directly from Steve Holt, the CIO of Syngenta.
[Video plays]
As you've just seen, Steve needed to consolidate Syngenta's disparate databases around the world. Even more importantly, for his company to grow, the activities of his IT team needed to be much more aligned with the overall business.
Steve met those challenges by employing HP solutions that delivered consolidation - as well as continuity, control and compliance.
And HP, along with our partners, continues to work with Syngenta to help them build their next generation of IT.
Continuity, control, compliance and consolidation. Four challenges that top the list for most CIOs. And four areas where HP can help you to make your enterprise more adaptive today.
So, I've talked about what HP is doing today.
What are we doing about tomorrow?
What are we doing to help build the next generation of IT?
We believe that one of our greatest opportunities for helping our customers in the transformation process is to be found within the IT infrastructure itself.
According to IDC, over the next five years organizations will spend three times as much on the management and operation of their IT systems as they will spend on direct acquisition costs of the systems themselves.
As many of you in the audience know, this is a huge problem. You may have tried to address it by reducing your people costs, through labor arbitrage and offshoring. But that's not the only - or the best - solution to the problem.
Many of today's typical data centers are built on high-cost, separated islands of information technology. Systems can't talk to each other. Often, server and storage capacity goes unused because it can't be shared. In fact, in many cases, even apparently sophisticated corporations have IT resource utilization rates as low as 20 percent.
We need to build bridges to those islands.
The solution is to reduce the total amount of labor that's required to keep IT up and running - and put the people to work on more creative, innovative tasks.
IT processes must be automated to be truly efficient. Not only will this reduce management and operational costs, but it will also reduce the costs that inevitably arise from human error when people do things that technology can do better.
In the data center of the future, high-cost islands of IT will be replaced by low-cost pools of IT assets. The next generation of IT will be characterized by automated, 24/7 lights-out computing.
In one implementation of these new processes and technologies in HP, we achieved a 10x improvement in productivity.
At HP, we see Adaptive Infrastructure as the platform for the next-generation data center, because infrastructure is the foundation for both applications and business processes.
HP is one of the only companies on the planet with the scope - and the scale - to make the next-generation data center a reality.
Our vision is to deliver an integrated architecture, built on industry-standard services and storage, that combines virtualization, automation and management capabilities and provisions resources to meet your needs on a 24/7 basis.
This new breed of computing requires:
- software to enable it;
- services to build and deliver it;
- industry-standard servers and storage to power it; and
- a company that can make the investment in R&D that's needed to bring it all together.
HP is uniquely qualified to build the next generation of IT. Our servers, storage, software, and services are recognized by industry observers as best-in-class.
But it's the combined strength of our portfolio that really places us in a powerful position. To help our customers build an Adaptive Infrastructure, we are increasing our investment and offerings in several specific areas.
These are areas where HP will have industry-leading capabilities.
The first is around IT systems and services. Adaptive Infrastructure is built on top of industry standard products and services.
Today, one out of every three servers shipped in the world is an HP server. We ship a server every 14 seconds. In fact, we have shipped more servers than anyone for 14 consecutive quarters. We are No. 1 in Unix, No. 1 in Linux,
No. 1 in Windows and No. 1 in technology support services.
And HP is leading the mainstream adoption of blades by delivering the industry's most complete solution.
So, the first enabler of an adaptive enterprise is IT systems and services.
The second enabler is very closely related: power and cooling.
These two issues are, of course, very important because we are talking about very dense computing environments, particularly with bladed environments. Blades is the fastest growing part of our server business. And you will be seeing a series of services announcements from us about power and cooling.
Management is the third enabler of an Adaptive Infrastructure. As I said earlier, management is an area where we have a tremendously powerful portfolio.
We can optimize the infrastructure, we can automate key IT processes and we can align business needs and reporting with IT.
Today, HP OpenView is used by more than 75 percent of global Fortune 100 companies.
In the last few years, we've made eleven acquisitions to strengthen our management portfolio. We will continue to expand our capabilities through both organic and inorganic growth.
The fourth enabler of an Adaptive Infrastructure is security.
Let me highlight just a couple of HP capabilities in this area...
One is our identity management software offerings, which we have expanded through our acquisitions of TruLogica, Trustgenix and SelectAccess. By blending their capabilities with HP OpenView, we have a very robust capability.
A second is our Virus Throttle technology, an innovation that was first developed in HP Labs. Virus Throttle is available in our ProCurve Switch, HP ProLiant servers and our BladeSystem architecture.
Virus Throttle continually monitors systems and when a sudden, suspicious burst of activity occurs, the request is either completely blocked, slowed down or "throttled back". This gives network managers time to respond. In short, it stops viruses dead in their tracks.
The fifth enabler of Adaptive Infrastructure is virtualization.
In the next-generation data center, virtualization will result in the pooling and sharing of IT resources so that utilization is optimized and supply can automatically meet demand. HP offers virtualization in our servers, storage, networks, software and printers. In addition, we offer integrated virtualization solutions, such as the HP Virtual Server Environment, as well as virtualization services, through our Consulting and Integration practice.
The final enabler of Adaptive Infrastructure is automation.
Automation will be key to a 24x7, lights-out data center. Automation uses a model-based approach to control IT processes that support the business. This ensures that service levels are continually met. We can automate IT processes such as Service Desk, change and configuration management, and identity management, today. And there's a lot more to come.
So, the next-generation of IT will be characterized by automated, 24x7, lights-out computing. It will be enabled by systems and services, power and cooling, management, security, virtualization, and automation. These are all areas where HP has differentiated offerings today, and where you will see us continue to invest in the months and years ahead.
But even more important than what we will do for you is how we will work with you.
We want to build relationships that work for you, that make full use of our resources and expertise to give you what you want.
You can buy the products and build an Adaptive Infrastructure yourself. If you do, we provide the best technical support in the industry.
You can have HP design and implement an Adaptive Infrastructure for you to operate. HP Services is one of the industry's leading consulting and integration teams, and has a great deal of experience working with customers as they've deployed, and realized the benefits of, Adaptive Infrastructure.
You can work with our value-added partners to design and implement Adaptive Infrastructure. HP has one of the most extensive partner networks anywhere on the planet, including almost 154,000 channel partners worldwide. Many members of our world-class partner community are here at the conference.
You can also outsource the management and transformation of your infrastructure to HP, so that you can concentrate on running your business.
Customer choice is a critical part of our strategy. We are committed to working with you in any of these ways.
In conclusion, I would like to reinforce the four key points that I've made today.
First -- HP is a global information technology company with the scope and the scale to serve our customers now, and in the future. We're in a great position and we're focused on being the best IT provider on the planet.
Second -- we've got a strong leadership team and talented employees and a set of capabilities across the company that is unmatched in HP's history.
Third -- we've got an industry-leading portfolio of servers, storage, software and services - high-quality products and services with broad market acceptance.
In fact, we are No. 1 or 2 in every product category.
And finally, through our Adaptive Enterprise strategy, we have the power to combine that portfolio to create solutions that solve your business problems today and create the platform for the next generation of IT.
HP is here to be your partner on this journey.
Thank you, and enjoy the rest of the conference.
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