integrated systems: new opportunities in data center ... · pdf filedefinition and...
TRANSCRIPT
![Page 1: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/1.jpg)
This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Integrated Systems: the key arena for data center success
Adrian O‟Connell
Research Director
Gartner Research
![Page 2: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/2.jpg)
Agenda
What are Integrated Systems?
Data center systems trends
2012 market trends
Product portfolio dynamics
Vendor Scorecard
Position in the value chain
Forecast assumptions and scenarios
Recommendations
Recommended reading, Q&A
![Page 3: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/3.jpg)
Definition and segmentation
“Integrated Systems are a class of data center systems that deliver a combination of server, shared-storage and network devices in a pre-integrated stack.”
These systems are segmented into three types;
• Integrated Workload Systems: Server, storage and network integrated with database and/or application software to provide appliance or appliance-like functionality.
• Integrated Infrastructure Systems: Server, storage and network integrated to provide shared compute infrastructure.
• Integrated Reference Architectures: Products in which predefined, pre-sized components are designated as options for an integrated system, whereby the user and/or channel can make configuration choices between the predefined options
System Type Vendor Model
Integrated Workload Oracle Exadata
HP App System
IBM PureApplication
Integrated Infrastructure VCE Vblock
HP CloudSystem
I BM PureFlex
Integrated Reference Architecture NetApp/Cisco FlexPod
EMC et al VSPEX
HDS et al UCP Select
![Page 4: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/4.jpg)
The growing influence of hyperscale sees opportunities for self-build, ODMs and Open Compute.
The growing influence of hyperscale sees opportunities for self-build, ODMs and Open Compute.
The growing influence of hyperscale sees opportunities for self-build, ODMs and Open Compute.
Data Center Systems Trends
Hardware vendors have to evolve
portfolios, redraw alliances and reconsider
routes to market.
Hardware vendors have to evolve
portfolios, redraw alliances and reconsider
routes to market.
Hardware vendors have to evolve
portfolios, redraw alliances and reconsider
routes to market.
As the data center is increasingly software-
defined, hardware vendors risk losing influence of key
control points.
As the data center is increasingly software-
defined, hardware vendors risk losing influence of key
control points.
As the data center is increasingly software-
defined, hardware vendors risk losing influence of key
control points.
Cloud changes who the customers are: from enterprises to hyperscale and xSP data centers.
Cloud changes who the customers are: from enterprises to hyperscale and xSP data centers.
Cloud changes who the customers are: from enterprises to hyperscale and xSP data centers.
xSP Data Center (DCO, CSP, Hosters)
Physical Delivery Physical Delivery
Traditional
Virtualization
Appliances
Big Data Flash
ELE servers SDN
Market Disrupters
Power Cooling
Energy Floorspace
Application software
Infrastructure software
Component Suppliers
Server Storage
Network
Data Center Systems
Data Center Facilities
Containers
Mo
du
lar
Tra
ditio
nal
Service DeliveryService Delivery
Hyperscale
Data Center (Google, Amazon, et al.)
![Page 5: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/5.jpg)
Opportunity Varies by Customer Segment
Internal
Data
Cen
ter
Siz
e
External
Compute Service Provision
Larg
e
Sm
all
Large Enterprise
Small and Midsize Business
xSP
(Web Hosters, Data Center Outsourcers,
Communications Service Providers etc)
Hyperscale
(Google, Amazon, Facebook, Twitter etc)
One size does not fill all
Is the purchaser of the system an end-user or a channel?
How does your strategy vary by customer segment?
![Page 6: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/6.jpg)
Integrated Systems: User Benefits Should Influence Positioning
0% 10% 20% 30% 40%
Other
Simplified vendor sourcing
Improved vendor support offerings
Improved agility
Reduced staffing needs
Reduced TCO (Total Cost of Ownership)
Better overall system performance
Improved quality of service
Reduced IT operational costs
Better overall system manageability
Integrated Reference Architectures Integrated Applications (Workload) Integrated Infrastructure
Q: What are the top three benefits your organization associates with each of the following technologies?
N = 487, 489, 466
Adopt a segmented positioning and messaging strategy for different customer segments.
![Page 7: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/7.jpg)
0
100
200
300
400
500
600
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Reve
nu
e (
Mill
ion
s o
f D
olla
rs)
Integrated Infrastructure Integrated Workloads Reference Architecture
Small share of data center hardware whole, but growing rapidly (5% of total revenue in 2012)
Large enterprises and xSPs are currently the key target markets, with SMB relatively underserved.
Storage architectures; a key driver for many current sales
Significant opportunity for overall segment growth as well as competitive share gain
All vendors face a challenge in best articulating their "better together" message
2012 Market Trends
Note - all figures are preliminary, work in progress
Traditional Systems
Integrated Systems
Servers
Storage
Networking
![Page 8: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/8.jpg)
Portfolio Complexity – finding the sweet spot
Horizontal Integration
Vert
ical In
tegra
tion
Low High
Integrated Infrastructure
Integrated Workloads
There is a spectrum of integration levels and offerings
Appliance configurations can limit flexibility
All offerings are complex, whether in terms of technology integration or managing the partner ecosystem
OS
/ H
yp
erv
isor
Ap
plic
ations
Mid
dle
wa
re
Or can less = more…?
Does more = better?
![Page 9: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/9.jpg)
Polling Question #1
What are the most important factors driving users‟ choices of integrated systems vendors?
A) Ease of integration with installed base of applications
B) Performance levels of new applications to be deployed
C) Their existing server supplier
D) Their existing storage supplier
E) Their existing network supplier
![Page 10: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/10.jpg)
Integrated Systems: Vendor Selection Factors
17%
15%
11%
10%
8%
12%
8%
8%
6%
5%
1%
18%
16%
15%
10%
10%
9%
8%
6%
5%
2%
16%
13%
14%
14%
15%
6%
10%
3%
5%
3%
Ease of integration with installed base of applications
Performance levels for new applications to be deployed
Functionality of management tools
Lowest TCO (Total Cost of Ownership)
Reputation for support
They are our organization‟s existing server supplier
Purchase cost
They are our organization‟s existing storage supplier
They are our organization‟s existing network supplier
Recommendation from reseller and/or systems integrator
Other
Most important 2nd most important 3rd most important
Q: What were / are the three most important factors, in ranking order, driving your organisation‟s choice of its integrated systems vendor(s)?”
N = 499
Tailor Messaging to Specific Customer Requirements
![Page 11: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/11.jpg)
Integrated Systems: Vendor Confidence Outlines Opportunities and Challenges
1%
1%
1%
2%
2%
2%
2%
4%
5%
5%
5%
16%
25%
27%
27%
26%
42%
45%
42%
48%
55%
50%
83%
73%
71%
70%
71%
47%
46%
44%
32%
33%
34%
0%
1%
1%
1%
1%
9%
7%
10%
15%
7%
10%
IBM
Cisco
Oracle
HP
Dell
NetApp
EMC
Teradata
VCE
Fujitsu
HDS
1-2 rating 3-5 rating 6-7 rating Don't Know
Extremely high amount
of confidence
No confidence at all
Invest in brand and product awareness activities in order to continue to
maximize competitive share opportunity
Q: What is your organization‟s level of confidence for each of the following technology vendors with respect to their capabilities (product and support) around integrated systems, in general?
N = 499
![Page 12: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/12.jpg)
Vendor Scorecard
Cisco
(incl. VCE & Flexpod)
Dell
EMC
HDS HP
Doing Well
• Strong partnerships
• Driving mindshare around convergence
• Increased focus on Active Infrastructure
• Focus on under-served mid-market
• Technology and partnership strengths
• Reference architecture market entrance
• Solid momentum for UCP
• Flexible integrated and reference architecture options
• Broad portfolio with flexible deployment options
• Strong partner framework
Must do better
• Geographic mix can still improve
• Need to broaden ISV partnerships
• Expand into higher-end offerings
• Ongoing customer perceptions efforts
• Continued reference architecture ramp
• Clarifying portfolio positioning
• Awareness outside of storage environments
• Further workload integration
• Improve positioning against high-end storage competition
• Simplify options for partners and users
![Page 13: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/13.jpg)
Vendor Scorecard
IBM NetApp
Oracle
VCE Others
Doing Well
• Good awareness around PureSystems
• Breadth of portfolio capabilities
• Early positioning of reference architecture
• Strong market momentum
• Strong positioning in integrated workload systems
• Broadening product portfolio
• Driven momentum for integrated infrastructure
• Very high-end capabilities
• Strong offerings in integrated workload areas
• Opportunity in emerging markets
Must do better
• Articulate overall positioning
• Transparency of user benefits
• Extend range both up and downstream
• Further integration of workloads
• Extend Exadata momentum into other product line areas
• Drive more competitive wins to offset heritage Sun hardware erosion
• Extend range downstream
• Ongoing communication around perceived alliance challenges
• Greater customer awareness
• Positioning versus large multinationals
![Page 14: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/14.jpg)
Polling Question #2
Considering the total profit pool across the data center hardware market, will the impact of integrated systems on this overall profit pool be;
A) Positive?
B) Neutral?
C) Negative?
![Page 15: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/15.jpg)
Position in the Value Chain – Go To Market
If users are to achieve cost-savings, where does it come from?
Do current channel programs incentivize the right behaviour?
Market education activities need to address go-to-market partners as well as end-users
Design Design
Manufacture Manufacture
Integrate Integrate
Deploy Deploy
Support Support
Dem
and G
en
Dem
and G
en
Sale
s
Sale
s
Mark
et E
ducation /
Enable
ment
Mark
et E
ducation /
Enable
ment
![Page 16: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/16.jpg)
Common Data Center Assumptions
Data
Cen
ter
Siz
e
Compute Service Provision
Internal External
Larg
e
Sm
all
Large Enterprise
Small and Midsize Business
xSP
Hyperscale 2012 Data Center Revenue = $85.4bn
2016 Data Center Revenue = $102.5bn (CAGR 4.7%)
Server CAGR = 3%
Storage CAGR = 9%
Networking CAGR = 4%
System Lifecycles remain extended
Internal spend falls from 80% to 65%
DC infrastructure scales exponentially with country size
Economic growth remains constrained
![Page 17: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/17.jpg)
Setting the Integrated Systems TAM
Data
Cen
ter
Siz
e
Compute Service Provision
Internal External
Larg
e
Sm
all
Large Enterprise
Small and Midsize Business
xSP
Hyperscale
Integrated Systems TAM is less than the data center whole
Strong Demand
Strong vendor
positioning
Moderate -
Strong Demand
Strong vendor
positioning
Zero Demand
Zero vendor
positioning
Moderate
Demand
Weak vendor
positioning
TAM factors & adoption rates are both key variables
TAM Factors
• Demographic, technology, cultural
•Storage – Server attach rates
• Un-addressable ECB storage segments
• Software category constraints (ie database vs email)
• User requirements (performance, simplicity, maturity etc)
TAM Factors
• Demographic, technology, cultural
•Storage – Server attach rates
• Un-addressable ECB storage segments
• Software category constraints (ie database vs email)
• User requirements (performance, simplicity, maturity etc)
Adoption Factors
• User readiness / Market adoption
• User organisational structures
• User focus on operational savings
• Vendor positioning
• Closed versus open vendor approaches
• Degree of Innovation coming from small / start-up vendors versus established vendors
Adoption Factors
• User readiness / Market adoption
• User organisational structures
• User focus on operational savings
• Vendor positioning
• Closed versus open vendor approaches
• Degree of Innovation coming from small / start-up vendors versus established vendors
![Page 18: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/18.jpg)
Scenario 1 – Appliance Abundance
Integrated Infrastructure and Integrated Workload systems drive a high share of enterprise spending
Why would this happen?
Why would this happen?
What are the signposts? What are the signposts?
Enterprise and enterprise-oriented xSPs dominate spending
Integrated systems confer demonstrable ROI savings
Interoperability challenges do not materialize
Alternate architectures have modest adoption
Ongoing budget constraints drive focus on operational
improvements
Hyperscale remains a relatively small proportion of total
Users demand more transparency in RFPs
Vendor focus on 3rd party interoperability
Limited investment in ELE, external cloud providers etc
Increased user focus on management tool functionality
0
4
8
12
16
2011 2012 2013 2014 2015 2016
Re
ve
nu
e (
US
$b
n)
Note - all figures are
preliminary, work in
progress
![Page 19: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/19.jpg)
Scenario 2 – A Flexible Future
Why would this happen?
Why would this happen?
What are the signposts? What are the signposts?
Users demand more flexibility than integrated systems
provide
Integrated systems vendors focus more on wallet share than
user benefits
Vendors deliver savings across the IT organization
High rate of technology innovation at 3rd party component
level
Vendors establish business models that leverage strong,
open, ecosystem
High level of integrated systems RFPs have non-standard
configuration requests
Systems vendors margins increase
More senior levels of customer engagement
Increased rate of technology innovation from small / start-up
vendors
Vendors with a strong partnering focus achieve the best
share gains
Reference Architecture systems drive most momentum and raise the TAM
0
4
8
12
16
20
2011 2012 2013 2014 2015 2016
Re
ve
nu
e (
US
$b
n)
Note - all figures are
preliminary, work in
progress
![Page 20: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/20.jpg)
Scenario 3 – Traditional Values
Why would this happen?
Why would this happen?
What are the signposts? What are the signposts?
Enterprise spending shrinks at higher rate
Expectations for ROI improvements are not met
Interoperability challenges are frequent
Alternate architectures have high adoption
Vendors fail to properly position offerings and articulate the
benefits
Weakening economic environment, hyperscale growth
Update / replacement demand is very weak
Limited vendor co-operation / collaboration
Hyperscale, Webscale IT, ELE, ODM growth
Ongoing confusion amongst users between vendor offerings
Traditional (discrete) systems vastly predominate over integrated systems
0
4
8
12
2011 2012 2013 2014 2015 2016
Re
ve
nu
e (
US
$b
n)
Note - all figures are
preliminary, work in
progress
![Page 21: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/21.jpg)
Recommendations
Recognize that the market is still nascent. Current deployment practices will evolve.
Improve transparency of comparisons. Users need to be able to quantify the potential benefits.
Focus on how integrate-able, as well as integrated, the offerings are. Users need flexibility.
View integrated systems holistically in the context of broader data center market trends. Effective routes to market need to account for how ISV, xSP and reseller roles are evolving.
![Page 22: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/22.jpg)
Recommended reading
Market Share Analysis: Data Center Hardware Integrated Systems, 1Q11-2Q12
Market Trends: Integrated Systems, Worldwide, 2012
Tech Go-to-Market Survey Analysis: Perceived Benefits of Integrated Systems and Key Factors in Vendor Selection
Marketing Essentials: How Shifts in Buying Centers for Data Center Hardware Infrastructure Will Impact Your Business
How IT Departments Must Change to Exploit Different Types of Appliances
Upcoming Research
Integrated Systems Market Sizing, 2012 (and quarterly updates)
Integrated Systems Market Forecast, 2012-2017
![Page 23: Integrated Systems: new opportunities in data center ... · PDF fileDefinition and segmentation “Integrated Systems are a class of data center systems that deliver a combination](https://reader031.vdocuments.site/reader031/viewer/2022022423/5a9fbec67f8b9a62178d1f4a/html5/thumbnails/23.jpg)
• Visit gartner.com/webinars
– Today's presentation is available to download on the Attachment
Tab of our webinar portal or will be available shortly on our
webinar page
– Check out the schedule of upcoming Gartner webinars (plus on-
demand webinars) and don„t forget to share these resources with
your colleagues
• Contact your Gartner account executive with any additional
questions, comments or for a complimentary copy of today's
presentation
Simple steps for increasing the value
of today's webinar experience
25