2013년 10월 23일 수요일

Rodrick Gorden's blog ::SVLG's 2nd Data Center Energy Efficiency Summit






Rodrick Gorden's blog ::SVLG's 2nd Data Center Energy Efficiency Summit










               "In               the               next               five               years               outsourcing               as               we               know               it               will               disappear.

The               legion               of               Indian               service               providers               will               be               sidelined               or               absorbed.

U.S.

and               European               companies               that               pioneered               this               corner               of               the               high               tech               industry               will               suffer               similar               fates               if               they               don't               wake               up.

Who               will               emerge               as               the               new               leaders?

Google               and               Amazon.com,               brands               that               we               associate               with               search               and               retail,               will               become               better               known               for               outsourcing,"               according               to               Arjun               Sethi               and               Olivier               Aries               in               an               August               2010               businessweek.com               article.
               This               would               be               no               surprise               to               renowned               scientist               and               inventor               Ray               Kurzweil,               often               lauded               by               such               giants               as               Bill               Gates,               who               said               in               his               book,               "The               Singularity               Is               Near"               (Penguin               Books               2005),               that               the               pace               of               technological               achievement,               especially               in               computing               is               going               up               logarithmically.

The               "computations               per               second"               doubles               every               two               years,               if               not               every               year,               he               writes.
               With               the               world's               economies               tipping               on               the               razor's               edge               of               survival,               it               is               reasonable               to               assume               that               all               outsourcers,               especially               legal               process               outsourcers               such               as               famed               white-shoe               New               York               law               firm               giants               who,               since               2001               have               sought               to               cut               costs               by               sending               rote               work               to               countries               like               India,               will               quickly               abandon               those               brand-new               LPO               firms               within               Indian               boundaries,               if               it               means               saving               even               more               money.

The               "new               business               paradigm"               for               such               law               firms               (and               one-person               law               firms)               had               been               to               become               client-centric               and               lower               costs               by               having               well-educated               Indian               lawyers               do               mundane               work               for               10               percent               of               what               a               junior               associate               would               charge               in               the               heart               of               Manhattan.
               Even               as               the               LPO               industry,               after               just               10               years,               brags               about               its               already               being               a               billion-dollar               industry               just               within               the               U.S.,               the               dream               may               be               over.
               "Sound               ludicrous?

Not               if               you               follow               this               industry,"               Sethi               and               Aries               write,               and               Kurzweil               would               concur.

"Desktop               computers               yielded               to               laptops.

Web               portals               AOL,               MSN,               and               Yahoo!

are               giving               way               to               social               media               sites               Facebook,               Twitter,               and               LinkeIn.

Software               once               distributed               by               disk               is               now               available               as               apps               over               the               Web-often               for               less               than               the               cost               of               a               slice               of               pizza.

And               so               it               goes.

The               same               Darwinian               process               is               creating               a               fresh               ecosystem               in               outsourcing,               one               that               will               usher               in               an               era               of               consolidation               and               a               new               way               of               working               with               clients,"               they               wrote.
               "Outsourcing               companies               [still]               sell               customers               deals               that               can               span               a               decade               and               easily               run               to               tens               of               millions               of               dollars.

The               [LPO]               service               provider               [in               India,               or               the               Philippines               and               other               countries]               takes               on               the               expensive,               time-consuming               task               of               building               and               operating               the               digital               tools               that               the               customer               requires               to               vanquish               the               competition,               often               involving               development               of               custom               software               to               get               the               job               done.

To               do               that,               service               providers               need               aisles               of               powerful               computers,               armies               of               programmers,               and               lots               of               applications,               which               are               housed               either               at               the               client's               site               or               located               at               a               third-party               data               center               that's               usually               owned               and               paid               for               by               the               client               but               managed               and               maintained               by               the               outsourcer.

Accenture               is               a               good               example               of               the               old               model               of               outsourcing,               which               involves               long-term               contracts;               customized               software,               legacy               software,               or               both;               and               on-site               systems               integration               work,"               the               article               says.
               But,               "in               the               new               model,               outsourcers               provide               standard,               off-the-shelf               software               on               a               'pay-per-drink'               basis.

For               that,               they               will               leverage               [what               Kurzweil               would               welcome               with               open               arms,               the               brand-new]               so-called               cloud               technology,               which               lets               users               tap               into               computing               power               available               via               the               Internet,               rather               than               on               a               desktop               or               computer               server               housed               [in               India],"               the               two               authors               wrote.

"The               appeal               is               scale,               flexibility,               and               efficiency:               Thousands               of               server               computers               can               attack               a               task               more               quickly-and               cheaply-or               handle               a               patchwork               quilt               of               different               technologies               that               companies               use               to               run               their               businesses.

This               approach               will               let               businesses               outsource               entire               tasks               such               as               the               tracking               of               inventory,               paying               only               for               the               information               accessed               or               used."
               The               relentless               pressure               to               cut               costs               is               what               the               technological               evolution,               which               Kurzweil               says               will               change               the               very               definition               of               what               it               means               to               be               "human,"               is               all               about,               just               as               is               the               evolution               of               life               that               Darwin               discovered--survival               of               the               fittest               and               most               adaptable.
               "Outsourcing               is               about               saving               money,"               Sethi               and               Aries               wrote.

"Sure               the               pitch               usually               revolves               around               improving               business               processes,               but               no               client               is               going               to               pay               more               for               the               service               than               what               it               already               costs               to               maintain               their               systems.

Unfortunately,               outsourcing               vendors               have               maxed-out               efficiencies,               both               from               automation               and               from               moving               the               work               to               lower               cost-of-labor               destinations,               also               known               as               'labor               arbitrage.'               To               get               to               the               next               level               of               savings,               a               ruthless               search               for               greater               economies               of               scale               is               necessary."
               That's               where               the               cloud               comes               in.

It               shifts               the               center               of               gravity               in               outsourcing               from               physical               ownership               of               assets               and               process               expertise.

It               focuses               on               the               skills               necessary               to               efficiently               manage               computing               operations               that               can               scale               and               at               the               same               time               are               flexible               enough               to               handle               scores               of               different               tasks.
               Cloud               computing               provides               computation,               software,               data               access,               and               storage               services               that               do               not               require               end-user               knowledge               of               the               physical               location               and               configuration               of               the               system               that               delivers               the               services.

Parallels               to               this               concept               can               be               drawn               with               the               electricity               grid,               from               which               end-users               consume               power               without               needing               to               understand               the               component               devices               or               infrastructure               required               to               provide               the               service.
               Cloud               computing               describes               a               new               supplement,               consumption,               and               delivery               model               for               IT               services               based               on               Internet               protocols,               and               it               typically               involves               provisioning               of               scalable               and               often               virtualized               resources.

It               is               a               byproduct               and               consequence               of               the               ease-of-access               to               remote               computing               sites               provided               by               the               Internet.

This               may               take               the               form               of               web-based               tools               or               applications               that               users               can               access               and               use               through               a               web               browser               as               if               the               programs               were               installed               locally               on               their               own               computers.
               In               some               cases,               legacy               applications               (line               of               business               applications               that               until               now               have               been               prevalent               in               thin               client               Windows               computing)               are               delivered               via               a               screen-sharing               technology,               while               the               computing               resources               are               consolidated               at               a               remote               data               center-possibly               in               the               cooler-climed               countries               in               Scandanavia               instead               of               a               hot-weather               nation               such               as               India-location.
               These               factors               will               set               off               a               wave               of               global               consolidation               in               tech               services.

There               are               too               many               companies               in               this               space.

Consolidation               will               be               about               protecting               or               building               market               share               or               adding               technical               skills,               from               connectivity               and               networking               to               deep               expertise               in               the               delivery               of               services-on-demand.

This               is               why               most               Indian               outsourcing               companies               are               investing               to               get               up               to               speed               on               the               cloud.

How               quickly               can               they               build               sufficient               scale?

If               you               talk               with               many               LPO               experts,               cloud               computing               is               not               mentioned.

It               isn't               even               included               yet               in               their               global               LPO               conferences.

Perhaps               they               already               are               reading               the               handwriting               on               the               wall.
               In               their               businessweek.com               article,               the               authors               handicap               the               winners               and               losers               in               the               race               to               become               players               in               the               evolving               outsourcing               business:
               ·               The               Losers:               Mid-tier               Indian               outsourcers               will               be               acquired               by               larger,               more               aggressive               companies.

Indian               outsourcers               are               attractive               because               of               their               current               client               list,               operations               in               low-cost               countries,               and               process               expertise.

Most               of               them               are               too               small               to               build               enough               scale               and               expertise               in               the               backbone               capabilities               required               in               the               cloud.

Leading               Indian               players               like               MphasiS               and               eServe               have               already               fallen               prey               to               Hewlett-Packard               and               TCS,               respectively.

Some               larger               players               such               as               Infosys               and               Wipro               are               at               risk               of               losing               their               competitive               advantage.

Even               the               largest               Indian               companies               are               still               several               orders               of               magnitude               smaller               than               their               U.S.

competitors-HP,               Xerox               ,               Microsoft,               and               Google.

These               include               companies               such               as               Patni,               L&T               Infotech,               and               Satyam               (recently               acquired               by               Tech               Mahindra.

Therefore               we               expect               Indian               vendors               to               try               to               gain               scale               via               acquisitions               or               alliances               among               themselves.
               ·               The               Winners:               Amazon               and               Google               are               the               future               leaders               in               outsourcing.

They               are               already               providing               services               to               such               enterprises               as               Eli               Lilly               and               Pfizer.

They               own               data               centers               on               an               enormous               scale               and               know               how               to               operate               them               efficiently.

They               will               gain               capabilities               they               don't               yet               have-such               as               industry-specific               know-how               and               low-cost               workforces-by               acquiring               Indian               or               other               global               outsourcers.

Meanwhile,               Google               already               has               announced               a               partnership               with               Computer               Sciences               and               Amazon               has               announced               a               similar               one               with               Capgemini.

Indeed,               Amazon               has               made               so               much               headway               in               cloud               technology               that               this               area               of               their               business               will               generate,               according               to               an               estimate               recently               published               by               UBS,               something               in               the               order               of               $750               million               by               the               end               of               2011.

Then               there's               the               generational               issue               to               consider.

Amazon               and               Google               are               household               brands               for               the               generation               of               managers               and               leaders               that               is               now               rising               in               U.S.

management               ranks.

In               their               youth,               these               leaders               entrusted               personal               e-mails,               music               files,               pictures,               and               social               interactions               to               these               companies.

We               believe               it               will               be               a               logical               extension               for               this               generation               to               hire               these               companies               as               trusted               managers               and               hosts               of               their               corporate               services.
               ·               The               Possible               Winners:               Software               giants               such               as               Microsoft,               Oracle,               and               SAP               have               knowledge               around               enterprise               platforms               and               applications               that               can               unlock               further               efficiencies               for               clients.

They               also               have               robust               and               captive               client               portfolios.

Their               success               will               depend               on               the               speed               at               which               they               build               up               capabilities               they               are               currently               missing               in               connectivity,               infrastructure,               and               experience               in               the               cloud               itself.

It               will               also               depend               on               their               appetite               for               risk.

We               are               talking               here               about               nothing               less               than               reengineering               their               DNA.

For               example,               even               Microsoft               has               begun               to               forsake               its               license-based               software               to               introduce               new,               cloud-based,               office               software.

At               the               same               time,               Salesforce.com               has               aggressively               grown               by               shifting               its               CRM               applications               around               this               cloud-based               model.
               ·               Those               on               the               Fence:               Xerox,               HP,               and               Accenture               have               the               technical               and               financial               resources               to               expand               their               capabilities.

Recent               acquisitions-HP/EDS,               Dell/Perot               Systems,               and               Xerox/Affiliated               Computer               Services-show               that               they               understand               what's               coming.

Nevertheless,               it's               uncertain               that               these               behemoths               will               shift               seamlessly               from               large               integration               projects               to               cloud-based               solutions.

Unless               companies               such               as               HP,               Xerox,               and               Dell               continue               to               increase               their               momentum               into               the               cloud,               they               may               find               their               multibillion-dollar               acquisitions               go               to               waste.
               "The               outsourcing               market               is               on               the               verge               of               experiencing               its               most               massive               transformation               since               the               concept               arose               more               than               20               years               ago               [10               years               ago               for               legal               process               outsourcing].

For               outsourcers,               cloud               computing               creates               an               unprecedented               opportunity               to               reshape               how               services               get               delivered.

For               clients,               it               opens               up               a               new               era               characterized               by               the               arrival               of               new               players               that               are               eager               to               build               relationships               and               showcase               their               capabilities.

That               means               more               choice               and               a               new               model               that               will               sustain               the               price               advantage               that               outsourcing               has               hitherto               provided,"               wrote               Sethi               and               Aries.
               In               a               June               29,               2009               article               on               forbes.com,               Ed               Sperling               wrote               that               w               hen               executives               at               Amazon               took               a               hard               look               at               the               company's               business               a               few               years               ago,               they               realized               that               one               of               the               company's               core               competencies               had               become               managing               data               and               the               flow               of               information.

Not               only               was               Amazon               good               at               managing               data--it               was               significantly               better               than               many               other               companies.
               That               smelled               like               a               new               revenue               opportunity.

As               a               result,               three               years               ago,               the               company               best               known               for               selling               books               rolled               out               its               first               cloud               computing               services.

Andrew               R.

Jassy,               senior               vice               president               of               Web               services               at               Amazon,               told               Sperling               about               the               challenges               and               what               customers               think               about               the               Amazon               cloud.
               "The               pricing               is               independent               of               the               SLAs               (service-level               agreements).

We               have               a               99.95%               uptime               guarantee.

You               get               that               no               matter               what               size               you               are,"               Jassy               told               Sperling.

"Large               customers               aren't               starting               from               ground               zero.

They               have               a               pretty               significant               infrastructure.

They               have               legacy               software               they               have               to               figure               out               how               they're               going               to               migrate.

What               they               find               is               the               value               proposition               is               attractive               from               …from               a               scale               perspective               and               from               a               time               to               market               perspective.

We               can               provision               servers               in               minutes               vs.

weeks.

For               them               to               even               to               get               a               server               takes               eight               to               12               weeks.

This               way               they               can               run               the               test,               see               what               they               can               peel               off               and               they               start               to               build               a               year               or               two               plan               to               peel               off               parts               of               their               infrastructure."
               Sperling               asked               about               start-ups:               "It's               so               hard               to               get               funding               from               venture               capitalists               that               [these               services               are]               a               huge               benefit               to               start-ups.

They               don't               have               to               spend               that               CapEx               on               a               data               center               or               co-location               or               servers.

It's               a               huge               advantage               to               turn               CapEx               into               a               variable               expense.

They               also               don't               have               to               deal               with               a               legacy               infrastructure.

They're               building               their               services               directly               on               our               infrastructure."
               "The               hardest               decision               point               [regarding               outsourcing]               is               relinquishing               control,"               Jassy               said.

"When               it's               in               house               and               something               goes               wrong               you               know               whose               throat               to               choke.

Most               of               us,               when               there               are               any               issues,               want               to               be               action-oriented               in               fixing               problems.

When               you're               outsourcing               [your               data               center]               you               don't               have               that               same               level               of               control.

Every               decision               involves               a               risk-benefit               analysis.

What               we're               finding               is               companies               realize               they               may               have               less               control,               but               the               benefits               from               a               cost               perspective               outweigh               any               nervousness               about               the               [loss               of]               control.

That               is               the               battle               CIOs               are               waging."
               "We               will               need               additional               data               centers               based               upon               our               growth               over               the               past               three               years.

We               have               a               presence               on               the               East               Coast               and               the               West               Coast               and               in               Europe,               and               we're               starting               to               think               about               Asia.

I               expect               we'll               expand               geographically               because               our               customers               are               asking               for               that."
               In               a               January               2011               article               in               Outsoucing-center.com,               Kathleen               Goolsby               wrote               that               "               Jim               Stikeleather,               chief               technology               officer               at               Dell               Perot               Systems,               says               the               economic               value               of               cloud               computing               will               have               a               huge               impact               on               outsourced               services.

It               changes               companies'               ability               to               consume               IT.

And               RamPrasad               Kan,               chief               technologist               at               Wipro               Technologies,               says               cloud               technologies               are               a               game-changer.

'They               encompass               infrastructure,               platforms,               applications               and               BPO               services-and               this               an               'IT-as-a-service'               model."
               She               wrote               that               cloud-based               services               will               radically               change               the               outsourcing               business               from               the               service               providers'               perspective.

Stikeleather               told               her,               "There               will               be               many               more               complexities               involved               in               a               provider               [an               LPO               based               in               India]               offering               to               'take               over               your               IT               software               and               hardware               and               move               it               to               our               environment'               because               cloud-based               services               with               a               variety               of               vendors               will               comprise               a               large               component               of               the               buyer's               [the               law               firm's]               IT."
               Cloud-based               services               also               will               cause               an               evolution               and               huge               change               in               the               way               outsourcing               providers               price               their               services,               she               wrote.

"Stikeleather               says               customers               will               expect               their               entire               outsourcing               solution               to               be               billed               on               a               'natural               forecasting               unit'               that               correlates               with               the               buyer's               revenue               items.

He               expects               this               change               to               cause               a               lot               of               friction               over               the               next               five               years,               with               providers               protesting               'but               this               is               the               way               we've               always               done               it.'"
               LPOs               also               will               need               to               take               on               the               role               of               a               trusted               partner               to               integrate               cloud               services               of               multiple               service               providers               with               enterprise               IT,               she               wrote.

Stikeleather               said,               "Outsourcing               providers               are               going               to               move               up               the               value               chain,               offering               consulting               and               information               management               services-not               in               the               actual               delivery               of               IT,               but               in               how               buyers               should               provision               and               organize               their               systems               and               business               workflows."
               In               her               article,               Goolsby               wrote               that               buyers               should               ask               questions               about               the               LPO               provider's               ability               to               manage               the               long-term               IT               transformation               to               a               hybrid               cloud               environment               [involving               a               private               cloud               if               the               law               firm               is               big               enough               combined               with               an               intersection               with               a               multiple-user               cloud].
               One               problem               mentioned               in               her               article               is               that               of               an               accountability               shift               to               the               buyers               [law               firms]               who               will               have               to               take               on               more               responsibility               for               the               architecture               decisions,               instead               of               leaving               all               of               those               IT               decisions               up               to               the               LPO               provider               in               India               in               order               to               gain               the               advantage               of               much               cheaper,               more               flexible               services.
               However,               some               questions               remain               about               flexibility,               because               "standardization               will               be               very               high               in               the               cloud,"               Goolsby               writes,               quoting               another               expert,               "as               opposed               to               the               current               [LPO]               service               model               where               there               is               a               lot               of               customization.

The               question               to               buyers               will               be:               'Do               you               want               it?'-not               'How               do               you               want               it?'"
               There               are               also               concerns               about               a               cloud               provider               shutting               down               for               financial               or               legal               reasons,               which               has               happened               in               a               number               of               cases.

And               this               year's               short               outage               within               Amazon               Web               Services               didn't               alleviate               concerns.
               As               cloud               computing               is               achieving               increased               popularity,               issues               are               being               voiced               about               security               problems               that               may               be               introduced               through               adoption               of               this               new               model.

The               effectiveness               and               efficiency               of               traditional               protection               mechanisms               are               being               reconsidered               as               the               characteristics               of               this               innovative               deployment               model               differ               widely               from               those               of               traditional               architectures.
               The               relative               security               of               cloud               computing               services               is               a               contentious               issue               that               may               be               delaying               its               adoption.

Issues               barring               the               adoption               of               cloud               computing               are               due               in               large               part               to               the               private               and               public               sectors               unease               surrounding               the               external               management               of               security               based               services.

It               is               the               very               nature               of               cloud               computing               based               services,               private               or               public,               that               promote               external               management               of               provided               services.

This               delivers               great               incentive               among               cloud               computing               service               providers               in               producing               a               priority               in               building               and               maintaining               strong               management               of               secure               services.

Security               issues               have               been               categorized               into               sensitive               data               access,               data               segregation,               privacy,               bug               exploitation,               recovery,               accountability,               malicious               insiders,               management               console               security,               account               control,               and               multi-tenancy               issues.

Solution               to               various               cloud               security               issues               vary               through               cryptography,               particularly               public               key               infrastructure               (PKI),               use               of               multiple               cloud               providers,               standardization               of               APIs,               improving               virtual               machine               support               and               legal               support.
               However,               President               Obama               has               made               definite               moves,               because               of               the               great               cost               savings,               to               bring               more               and               more               government               functions               within               the               private,               public,               and               mixed               cloud               computing               models.




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      Network Design, Unified Communications, and Data Centers
      ... up for having bad luck. Without having access to all of the Shotlink data on the PGA Tour’s website, it’s still possible to get a sense of the kind of player...
      ... which help the call center decide whether their operations have...Aloha & Welcome to Quality Assessed, a consulting service of RJT Enterprises, ...


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