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Click here to read the entire eWeek.com article.

Every time new technology is delivered, tech refresh is highlighted as a way to save money or gain a business advantage on your competition.  It’s no different with the launch of the Intel® Xeon® Series 5500 server processor.  Many benchmarks show the new Xeon Series 5500 processor is twice as fast as the previous generation Xeon 5400 processor.  With its energy efficient design the Xeon Series 5500, when compared to 4-year old server technology, can deliver a full ROI in 8 months.

What’s different today is the availability of tools that can help you estimate the ROI for server refresh in your IT environment.  The “Xeon Estimator” tool, designed jointly by Intel and Alinean enables you to perform simple ROI analysis on you environment using many “default” values, or a deep dive analysis by allowing you to set specific values on dozens of important enterprise infrastructure variables.  The tool creates a full ROI analysis report based on the specifics of your environment.

But you don’t have to take my word for it.  Jeffrey Burt of eweek.com wrote an article, “Intel Online Calculator Measures Server Performance, Efficiency” describing the Xeon Estimator tool, as well as several other tools available to measure your return on investment around technology refresh. 

Click here to view and use the Xeon Estimator tool.  And feel free to give feedback via this blog; the good and the areas of improvement.

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Thanks to everyone who shared their IT best practices through the Intel Premier IT Knowledge Award program.  Judges from Intel and CXO Media poured over the very qualified submissions and had the hard job of narrowing to a handful of finalists.  Two awards (one for management of client fleet, one for data center) will be chosen by a panel of judges from Intel and CXO Media.  One additional award winner will be chosen by the IT community members of Intel Premier IT Professional via online voting.

So it's your turn. 

Users can find the link to vote on http://ipip.intel.com

For those who are not program members, membership is free and takes just a few minutes. You'll also stay up-to-date with best practices and technology insights online, in publications and local events.

The Intel Premier IT Knowledge Awards program was designed to recognize and reward North American IT managers/groups who have generated best practices, driving business value and innovation.   

The finalists represent diversity of business size, type, and solutions deployed using Intel architecture.

 

Data Center Management

Applied Materials

HD Supply

RichRelevance

Toyota Motor Sales, Inc.

Client Fleet Management

Hay Group

Our Kids of Miami-Dade/Monroe, Inc. 

Polycom, Inc.

Raleigh Pediatrics Associates

 

Award winners will receive industry recognition in an upcoming issue of CIO magazine as well as invited guest at either the CIO 100 Symposium and Awards or the CIO: The Year Ahead event. 

 

Let us know who your favorite IT hero is. 

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The April 1 issue of CIO magazine stressed the importance of “Marketing IT to the Business.” Per the call to "innovate and communicate," you can also market your projects via industrywide recognition.  Which brings me to the Premier IT Awards, where we’re a few weeks to the end of our call for submissions.

 

CIO custom solutions group and Intel have been receiving numerous IT department submissions from around North America that demonstrate best practices in data center or client fleet management.    Grassroots IT innovation and dedication to driving business value.  The submissions span projects valued from $10K to $2.5M, from customers with in-house vs. managed data centers and client solutions.   Intel products at the center of these solutions include not just Intel Core 2 processors with vPro technology or Intel Xeon processor-based servers, but Intel Itanium processor-based servers, Intel XScale technology and devices.

Just a few examples of our diverse submissions include a:

-Law firm

-Leading transportation company

-State government

-Non-profit healthcare network

-Managed service providers with small/medium business customers

-One of Fortune magazine 100 Best Companies to Work For

 

The short list of contenders for the awards will be posted on the Intel Premier IT Professional site soon.  And you’ll have the chance to vote for the “people’s choice” winner if you’re a member (it’s free to join).

 

If you think you’re too small or your industry doesn’t lend itself to driving business value because you’re state/local government or a nonprofit, I encourage you to think again.  Submit your best practices.  For more information visit the program website or if you have any questions, ask me here.

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Small and medium sized businesses (SMB) have been called the engine for our economy given their sheer numbers (more than 98% in Canada). It has also been observed that this constituency will be the leading edge of the economic recovery in large part due to their size and an ability to be more nimble and responsive to opportunities that a larger organization may not be able to react to. This sounds good in theory, but is it reflected in reality?

For the last 16 months, I’ve had the privilege of speaking directly with group of small business owners from varying industries across Canada. However, they should not be seen as representative of the “average” SMB. What potentially makes them unique is their conviction that strategic investments in technology have enabled their business success. As such, their experiences and insights have been enlightening.

The following (in no particular order) are key issues facing this group:

  • Access to credit;
  • Government stimulus programs which incent the wrong behaviours; and
  • Stimulus programs which are more trouble to access than they are worth.

But while they acknowledge the challenging circumstances in which they are currently operating, almost all of them stated that the first 3 months of 2009 were incredibly healthy, in some cases their best ever quarter. It is through that lens that I give you this list of their suggestions (again, in random order) on how SMBs can best weather the current recession:

  • Focus on becoming more efficient across the entire value chain, not simply making short term, knee-jerk cuts and changes;
  • Manage costs and wrap services around your products where possible in order to extend your reach into the customer;
  • Continue making investments in core competencies – now is not the time to let your quality slide; and
  • Innovation = Survival.

So does this reflect what other smaller and mid-sized businesses are experiencing? Please share with us your thoughts, your current situation and most importanly your best practices on how to weather -- and thrive -- in this economic crisis.

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CIO magazine has received some great submissions from IT organizations for the Intel Premier IT Awards.  Stellar examples of best practices in client fleet and data center management.  But some of you, literally dozens, have incomplete drafts waiting to be submitted for award consideration. 

 

With the deadline for submission May 29, 2009 getting closer, I ask you: If you've come this far, what's keeping you from getting your submission to the finish line? And if you haven't considered submitting for the award ... why not?

 

Winning submissions for client fleet management and data center management as well as a "people's choice" winner will be profiled in CIO magazine.  Plus, a winner in each category will also be CIO magazine's guest at the CIO 100 Symposium & Awards or CIO: The Year Ahead events.  And a recogntion plaque for your company or office.  Eligible nominees are North American IT end-user organizations.

 

At our Intel Premier IT events, on Open Port, and elsewhere, we hear loud and clear from you that these are challenging times for IT.  And, in conjunction with CIO magazine, we'd love to provide some honor and recognition for the work you've done.

 

If you have a question about eligiblity or other critera, ask away.  To paraphrase a TV doctor: "Hello, IT.  We're listening."  And we hope to hear from you, here or through the official award website: http://www.premieritawards.com

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Can your IT group "bring it" with best practices in client fleet and data center management? If you're willing to share your BKMs, CIO magazine may recognize you in their May 2009 issue.  The winners will be chosen by CIO and Intel judges, plus a "people's choice" selected by members of Intel Premier IT Professional (ipip.intel.com) and will be profiled in a spread in CIO magazine.  Deadline is February 12.  Learn more at www.premieritawards.com

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You may recall Nicholas G Carr for his classic Harvard Business Review article about the commoditization of IT.

 

 

In his recent book The Big Switch: Rewiring the World, from Edison to Google quoted in Bill Snyder's CIO Magazine article he claims data centers will become obsolete with the adoption of cloud computing.

 

 

Looking beyond the hyperbole, my thought is that as the cloud is adopted in the industry, patterns of ownership for data centers will change. The situation won't be black and white, that is, either corporate owned data centers or everything in the cloud.

 

 

To the extent that corporate applications have a modular architecture, what we'll see is a gradual outsourcing of non-critical application components to cloud resources. Corporate owned data centers may become smaller, but servers that otherwise would have been there will be purchased by the outsourcing provider. This is consistent with of efficient markets. Coase argues that an optimizing process is at work where the size of an organization (or a data center in this case) is the result of finding the balance between competing tendencies ("transaction costs").

 

 

It is hard to believe that data centers will disappear. Companies may decide that their crown jewel applications and data are better run in house. However, to the extent that these applications are modular and federated, non-critical components or components not associated with LOB will be outsourced. Fewer servers will be needed to run the applications, leading to smaller data centers.

 

 

The servers needed to run the non-critical functions will not go away; the will be owned (or leased) by the outsourcing provider. These servers will run in a highly optimized, multi-tenant and virtualized environment. The overal effect is that resource usage is optimized over the whole ecosystem.

 

 

In this outsourced, multi-tenant environment, manageability and monitoring capabilities become paramount, including the conveyance of metadata across multiple logical levels and the ability to provide multiple logical views to support iron clad SLAs.

 

Virtualization as an essential ingredient to make the cloud work because it allows applications and their hosts to be scheduled independently. The article also brings issues of security and transparency standing in the way of the cloud. More than a fundamental roadblock, these issues are a function of industry maturity, and it is reasonable to expect that they will be eventually addressed once the outsourced resources become quantifiable with respect to the businesses served.

 

 

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As I sit here fresh from a leadership conference for IT employees, I find myself thinking about that. Does IT need radical change? After hearing several examples of how people engineered solutions to solve specific problems or reviewed projects they had developed over the past year, I can answer with a definite yes. While it wasn’t simply this experience that pushed me to realization, it definitely helped complete the pattern I had noticed in today’s IT.

 

I spend most of my normal role investigating and researching emerging and next generation technologies. With this role came many headaches from pounding my head against the wall of established processes, procedures and preconceived notions. But to borrow an idea from Gene Meieran, that is simply the toll I am paying on this road to my success. But I look at this and ask a simple question, why?

 

When pushing to adopt a new technology, why do we have to wait until it meets all of our established requirements? Why do we try to make vendor’s products adapt to us, versus us considering the possibility to adapt to them? Why does it take us 2 years to adopt a new operating system or major product? Why do we run projects for 18-24 months to implement a product that exists out on the shelf today? In looking at several examples of what people consider successful products today, I look to see what makes them different, attractive, and a must have. I then ask what would it take to make IT different, attractive and a must have for any corporation.

 

Five or six years ago, people came to work and looked to IT to get the latest hardware, OS and innovations, because we had it here. We spent the dollars and time to solve problems and innovate. But in the last few years, people have adopted technology must faster at home than we do at work. They use the iPhone, a Wii, social networking tools, cloud based services, etc. They are enabled at home with more options than we provide as an IT shop. We use instant messaging in IT, not because we developed it as a way to eliminate small emails, but because instant messaging was a consumer product that grew so fast, that IT had to adopt it. Social networking is doing the same thing. So I wonder, what would it take to get IT back ahead of the curve and become an enabler of new ideas and solutions, rather than an implementer & reinventer of existing technology?

 

We need to get back to freethinking and innovation that is core to our roots. Companies like Intel were founded on thoughts like the famous quote from Robert Noyce – “Don’t be encumbered by the past, go out and do something wonderful” yet in our day to day life I see many encumbered by the past and am waiting for the wonderful. We choose solutions that have more of the one size fits all. Instead of picking the best solutions for the roles that exist; we try to find the one item that can solve all of our problems. Rather than choosing the optimal product for the “one size”, we should look at the product that enables the end user to perform optimally. Imagined if corporations took this approach with their products. Image a shoe manufacture that developed the one size fits all. It would be an opened toe, ¾ shank athletic tread, men’s size 10, 3-inch heel, sneaker pump. It would meet most of the needs of the shoe-wearing world, but wouldn’t be the right shoe for many, if anyone. So why do we settle for the same model in IT? We need to be innovative. We need to look at Apple, Google, Nintendo and others. They didn’t just develop products that do what everyone else’s products do today, but they did them differently & in many cases better. What does it take to make your part of IT the next iPod, iPhone or Wii? How can we enable our partners to perform optimally? What does it take to just go out and do something without worrying about how many existing committees; review boards, processes and groups have to be engaged to just get it going? The answer is radical change. We need to change how we work. We need to change the level of control we have today. We need to shrink what we try to manage. We need to strive to enable the partners versus totally control their work life. We need to ask so what every once in a while. When someone says if we do A then B might happen. Ask the question, so what? We spend all this time doing the day-to-day moving from spot to spot, never worrying about the resources, costs and effort put into the status quo. When we try to implement something new, it goes under the microscope and quite often is held to a different standard than existing solutions. Requirements seem to be a never-ending monster of growth, instead of the simple point-by-point items they should be for solutions. Many times the solutions themselves are actually listed as the requirements. So I challenge us all to start a process of Radical Change. Start asking the question So What? Start pushing back on the status quo, quit being encumbered and start a process of innovation. Help your partners perform optimally and be a key part of their success rather than just one of their suppliers. It won’t be easy, it won’t always be fun, but it will be rewarding.

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In a previous post, Virtual Service Oriented Grids: Scalable Enterprise Computing, I mentioned how the convergence of three old technologies is facilitating large scale computing in the enterprise. It is no coincidence that there are historical drivers for this transformation. In the IT world in the mid to late 1990s, you may recall that this was the era of eCommerce where most business activities under the sun became "Webified" and even the craziest ideas became capitalized. It as a boom which led to the inevitable bust. Some say it was triggered because work on the Millennium Bug stopped once the issue was "solved". No matter the reason, the momentum was unsustainable.

 

There was a lot of soul searching after the bust. Only a few survivors remain today, the most remarkable examples being Amazon.com, Google, Ebay and Yahoo. If there is one lesson coming from this period is that an essential element for sustainability is that Information Technology and Business need to be aligned.

 

 

The increasing adoption of Service Oriented Architectures or SOA represents the increasing recognition by IT organizations of the need for business and technology alignment. In fact, under SOA there is no difference between the two. The unit of delivery for SOA is a service, which is usually defined in business terms. In other words, SOA represents the up-leveling if IT, empowering IT organizations to meet the business needs of the community it serves. This up-leveling creates a gap, because for IT, eventually business requirements need to be translated into technology based solutions.

 

 

Our research indicates that this gap is being fulfilled by the resurgence of two very old technologies, namely virtualization and grid computing. To begin with, SOA allowed the de-coupling of data from applications through the magic of XML.

 

 

A lot of work that used to be done by application developers and integrators now gets done by computers. When most data centers run at 5 to 10 percent utilization, growing and deploying more data centers is not a good solution. Virtualization technology came very handy to address this situation, allowing the de-coupling of applications from the platforms in which they run. It acts as the gearbox in a car ensuring efficient transmission of power from the engine to the wheels.

 

 

The net effect of virtualization is that it allows utilization factors to go up in the 60 to 70%. The technique has been applied to mainframes for decades. Deploying virtualization to tens of thousands of servers has not been easy.

 

 

Finally, grid technology has allowed very fast, on the fly resource management, where resources are allocated not when a physical server is provisioned, but for each instance that a program is run.

 

 

Virtual service oriented grids represents the maturation of the three underlying technologies. The coming of age for a technology takes place whenever business, process and standardization become overriding considerations. Virtual service oriented grids rely heavily on standardization to attain interoperability, it is guided by governance at the corporate level, and are very much policy based and SLA driven. The underlying technologies become black boxes, their behavior defined by service level agreements (SLAs).

 

 

For any application, the management of the components is centralized, but the components ("servicelets") are assumed to be distributed. The servicelets are fungible and can be integrated in real time by design to allow applications to scale up and down, to be assembled and torn down as business conditions dictate.

 

 

In the next few entries we will go through a few examples. The subject is rich enough for a book, which indeed we have written. The book is scheduled for publication in September 2008 through Intel Press. Here is the book preface as a preview: New Book Excerpt from Intel Press: The Business Value of Service Oriented Grids.

 

 

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This week, we'll have guest Intel blogger Enrique Castro-Leon, Enterprise and Data Center Architect and Technology Strategist. As a preface I'd like to share the preface from the forthcoming Intel Press book Enrique has co-authored, "The Business Value of Service Oriented Grids." The preface (also in our resources area) tees up the history that brought us to service oriented grids and an industry example of how using virtualization and service orientation can help a mature business. If you'd like more, let us know you're reading and give us a shout.

 

And don't forget our other guest blogging by the Intel Business Exchange managers this week.

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It never fails. Somebody always contacts me a few days after each IPIP event and asks for the links to the IT Best Practices book we mentioned and gave away at the IPIP event.

 

Here are the links to the individual IT Subject Matter Expert books. The three books I have listed were all penned by Intel IT employees and pull largely from our internal learnings and implementations, but for healthy balance also include external research and sharing from other organizations as well. And I've also provided a link to the overall Intel Press website, specifically to the IT Best practices area....where these and other "IT Best Practices" books are listed.

 

This is the order these books were published in and the order in which i suggest they be read.

 

Managing Information Technology for Business Value
+Practical Strategies for IT and Business Managers+
by Martin Curley, Published January 2004

Measuring the Business Value of Information Technology
+Practical Strategies for IT and Business Managers+
by David Sward, Published July 2006

Managing IT Innovation for Business Value
+Practical Strategies for IT and Business Managers+
by Esther Baldwin and Martin Curley, Published March 2007

Link to Intel Press IT Best Practices area:
http://www.intel.com/intelpress/bpp-series.htm

If you have read any of these books i'd love to get your comments....also, please share any great books you have read that have made a difference in your career or have helped you make great business decisions.

 

Cheers! ....and great reading

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