1 Special Advertising Section businessweek.com/adsections All Things to All Companies S1 As businesses increasingly make use of Software-as-a- Service (SaaS) solutions and deploy infrastructures in the cloud, the hybrid cloud is proving to be the smart model for IT departments as they juggle a long list of variables. Large organizations understand that it can make business and economic sense to own some capacity, rather than renting everything from a public cloud provider. And many feel more comfortable using an on-premise infrastructure they control. But the most important driver in hybrid s adoption is that it takes into account that IT is an aggregate of applications, services and infrastructure that were developed or purchased at different times for different purposes. The question for companies, then, is not whether their IT should be hybrid, but how they can get the best from a hybrid model how to build effective bridges between their traditional IT and cloud infrastructures to improve IT efficiency, developer productivity and business agility, says Paul Cormier, President, Products and Technologies, at Red Hat, the leading provider of open source solutions. There are two key aspects to bridging the old and the new, Cormier notes. The first is to fully understand the hybrid model when making technology, product and partner choices, to ensure that enterprises will have the ability to deploy on disparate infrastructures. Businesses also need to maintain consistency for applications running in a hybrid environment, and this is only possible if there is common infrastructure software, such as an operating system and middleware, running across this otherwise heterogeneous environment. The key is flexibility, says Cormier. If a company deploys an application or service across multiple technology stacks, it needs to know it will be able to move from one stack to another to take advantage of newly available technologies, or to react to a vendor s pricing change. Application portability isn t the only consideration when adopting hybrid IT. Applications are nothing without their associated data, and companies need to explore software-based It s flexible, adaptable, accessible, fast and efficient. It s cloud computing, and it s the utility knife of modern business Turnbull/Getty images
2 THE FUTURE IS BEING BUILT RIGHT IN FRONT OF OUR EYES A decade ago, it was open source against the world. Now, open technology and Linux are the foundation of the datacenter. Together we are building the next cloud just like we built the next operating system. It s open. It s hybrid. And it s all yours. Think Red Hat is just Linux? Think again. redhat.com/cloud IaaS PaaS Cloud management Red Hat and the Shadowman logo are trademarks of Red Hat, Inc., registered in the U.S. and other countries. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.
3 Special Advertising Section businessweek.com/adsections S3 Top 10 Strategic Technology Trends for 2014 Mobile Device Diversity and Management The unexpected consequence of BYOD policies is a doubling or even tripling of the mobile workforce, according to Gartner. This is straining IT and finance departments. Mobile Apps and Applications The market for tools to create consumer- and enterprise-facing apps is complex, with well over 100 vendors. For the next few years, no single tool will be optimal for all types of mobile applications, so expect to employ several. The Internet of Everything Most enterprises and technology vendors have yet to explore the possibilities of an expanded Internet, and are not operationally or organizationally ready for everything to be digitized. Hybrid Cloud and IT as Service Broker Bringing together personal clouds and external private cloud services is an imperative. Enterprises should design private cloud services with a hybrid future in mind. Cloud/Client Architecture Cloud/client computing models are shifting, due in part to more robust capabilities in mobile devices and increased demand on networks, and its resultant cost. The Era of Personal Cloud Watch for a shift away from devices and toward services. The specifics of devices will become less important for organizations to worry about. No one device will be the primary hub. Software-Defined Anything Encapsulates the momentum toward improved standards for infrastructure programmability and data center interoperability driven by automation inherent in cloud computing, DevOps and fast infrastructure provisioning. Web-Scale IT A pattern of global-class computing that delivers capabilities of large cloud service providers within an enterprise IT setting by rethinking positions across several dimensions. Smart Machines Through 2020, the smart machine era will blossom with a proliferation of contextually aware and intelligent personal assistants, smart advisors, advanced global industrial systems and autonomous vehicles. 3-D Printing Worldwide shipments of 3D printers are expected to grow 75 percent this year, followed by a near-doubling of unit shipments in Market hype has made organizations aware that 3D printing can reduce costs through improved designs. hybrid storage solutions that allow them to operate at Web scale and to store and replicate data cost-effectively. With a hybrid model, you re not restricted to a particular cloud s native services, and you can easily change providers, or run the applications on your own infrastructure, if you want to, Cormier notes. Further, a company can use open source management tools and strategies to unify the elements it needs to run its applications. As well as allowing for implementation flexibility, open source tools reduce complexity and operational costs. By itself, however, being hybrid doesn t guarantee maximum flexibility, Cormier says. That you get by adopting open technologies, and by considering openness in sourcing decisions. Open source gives companies control of their technology roadmap while allowing them to take advantage of the innovation made possible by the open source development model, Cormier points out. Open source also ensures that no one vendor or provider controls a company s technology or product direction. Beyond open source, open encompasses areas such as open standards; freedom from intellectual property restrictions; and vibrant communities that are driving the technology forward. In the cloud Infrastructure-as-a-Service (IAAS) space, OpenStack provides a great example of how these various aspects of openness come together to create a rapidly advancing open source project. Most business enterprises realize it makes sense to embrace hybrid IT. They see that the future of their IT will be hybrid, and the clouds they build or source will be hybrid, as well, Cormier says. The key concern then becomes how they transition successfully. That entails being crystal-clear about what hybrid IT offers, and then taking advantage of open technologies and approaches to maximize the benefits it can deliver. Gathering data more efficiently Companies that previously only sold software or, for instance, network monitoring products, are now leveraging the cloud to give customers the ability to gather data more efficiently, and gain greater insights from it, through Software-as-a-Service (SaaS), cloud-based environments and other offerings. One company, Schneider Electric, the France-based multinational that produces integrated energy management solutions used across multiple market segments including industry, buildings and data centers, has transformed itself over the past five years by acquiring software companies and forming partnerships to incorporate the cloud in its products. We are taking our historical technology things we ve done for decades and finding ways to leverage it in the cloud to make our customers more efficient, says Kent Evans, Marketing Director at Schneider Electric. Schneider Electric still has all its legacy tools, but now they re bolted onto some very advanced software technology to enable customers to access them through the cloud. Evans likens the cloud s transformation of Schneider Electric s legacy business to the huge changes GPS made to travel and mapping. Where previously we provided primarily sensors and electrical equipment, it now means that our customers can manage it better, faster and remotely, he explains. Schneider Electric, which generated revenues of $31 billion in 2013, made two major software acquisitions to transform its legacy business. Three years ago it acquired Telvent, a global information technology company specializing in SCADA, GIS and related IT systems for pipeline, energy utility, traffic, agriculture and environmental monitoring industries. And in January, Schneider data: gartner
4 ARE YOUR TOP PEOPLE LOOKING ELSEWHERE? Know who s a flight risk before it s too late. Introducing Retention Predictor from UltiPro, the human capital management platform for people-powered businesses everywhere. Of the million bits of employee information in the UltiPro cloud, our data scientists developed an algorithm using dozens of indicators that can better determine employee retention probability. Imagine having a check engine light on your top performers likelihood to stay or go. In a global marketplace where retaining talent is critical, that kind of insight isn t just nice to have. It s a competitive advantage. Learn more about the predictive insights of UltiPro at UltimateSoftware.com/Cloud From FORTUNE Magazine, Time Inc. Used under license. FORTUNE 100 Best Companies to Work For is a registered trademark of Time Inc. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee.
5 Special Advertising Section businessweek.com/adsections S5 Electric concluded its acquisition of Invensys plc, a company that designs and supplies advanced technologies for oil refineries, power stations, mining companies and appliance manufacturers. The acquisition of these companies radically changed what Schneider Electric is, Evans says. Now the focus is to fully embed and integrate them, and roll up all the disparate pockets of expertise we have into one streamlined solution. That solution is StruxureWare, an integrated plug-and-play platform of applications and suites from Schneider Electric that connects seamlessly with whatever other systems a company is using. The StruxureWare project can be divided into two vectors, Evans notes. One is a marketing vector, so its goal is alignment, branding and a standard, intuitive user interface for the customer. The other is R&D, with the goal of interoperability. We want all our software bricks interoperable, so a company s employees will not have to learn different systems. That s an important step, and driven by what our customers have asked for. StruxureWare delivers visibility into energy and resource use across an organization, giving users accurate and, more importantly, actionable operational information, to better conserve resources, optimize performance and manage a sustainability strategy. Our goal is to maximize the value found where IT and operational technology overlap, Evans adds. To further increase its ability to offer flexible, agile and costeffective solutions for its customers, Schneider Electric recently selected Microsoft Windows Azure, the cloud infrastructure platform, as a preferred cloud provider for StruxureWare. While the ability to effectively crunch more data offers many new benefits for the future, Evans notes that companies need to focus more on the data they already manage to generate efficiencies. We see high potential in Big Data; however, most companies are still dealing with small-data problems, Evans says. They re not tracking their data or performance very well, not grasping such basics as energy efficiency. They must master this before they can unlock the full value of Big Data for their enterprise. He notes that Schneider Electric is now well positioned to help customers at both ends of the data spectrum, big and small. With StruxureWare, we re helping them shore up any gaps in their current approach, Evans explains. And because we ve invested heavily in software and talent recruitment, we have the people who can make sense of their bigger data stacks, too. Managing talent from the cloud Another area of business that s being revolutionized by the cloud and Big Data analysis is human capital management (HCM). A pioneer in delivering cloud-based HCM solutions, Ultimate Software Most enterprises realize it makes sense to embrace hybrid IT. They see that the future of their IT will be hybrid, and their clouds will be hybrid. began offering comprehensive payroll, HR and talent management delivered through SaaS in 2002 before its competitors. With its flagship UltiPro product, Ultimate provides a comprehensive approach to people management that helps organizations engage employees and improve work experiences. Because UltiPro is a unified HCM solution with millions of employee records supported in the cloud, we have the unique ability to analyze tremendous amounts of people data, says Josh Aversa, Senior Technical Product Manager at Ultimate Software. UltiPro helps organizations leverage this wide range of data for detailed insights into a workforce that can then guide business decisions and actions. Ultimate provides businesses with a unified suite of cloud technology that manages talent acquisition, payroll, compensation management, benefits enrollment, performance reviews, succession planning and more. Having a complete picture of an individual everything from job history to performance information can help organizations better understand and support the needs of their employees. Ultimate is delivering key data metrics to its UltiPro customers at the point of decision making, enabling businesses to find the right insights, at the right time, to drive better business results. For example, Aversa says, by using predictive algorithms to mine employee data when evaluating which employees to promote, employers could uncover traits or behaviors that indicate which employees will be high performers. Previously, these decisions might have been conducted in a subjective way, he explains. By using UltiPro, a manager can quickly use fact-based analysis to pinpoint or determine which employees are consistently performing well. By identifying the traits or behaviors of the best performers over time, and by looking for correlation and causation, a company could discover which recruits will make the best hires and perhaps future leaders. Ultimate Software, which is based in Weston, Fla., says its UltiPro solution supports over 15 million people records, across 150 countries, and delivers a quantifiable return on investment for its more than 2,700 customers. Successful use of Big Data uncovers valuable information that can be used to predict future behaviors and outcomes, and ultimately provide better business results, Aversa notes. Analysis of this data can give indicators as to what qualities an employee will need to function well in a particular job, and can provide guidance on how a company should invest in training so it can grow the strongest possible workforce, as well as continually improve it. UltiPro also can help companies take proactive measures to identify and retain top talent. Studies show that it can cost from $5,000 to $20,000 to replace a single hourly employee, and the fallout from losing an executive can be huge. We can look at this data to analyze why certain employees voluntarily left the company and why others stay, and idenfity the key indicators of attrition, Aversa says, adding that UltiPro can quantify data about each employee into a consistent retention score that identifies those in danger of leaving. The key is UltiPro s ability to make valuable insights readily available when decisions need to be made. Big Data isn t just about the vast amount of available data, but more importantly about the unprecedented opportunities for visibility it can provide to businesses, Aversa says. With UltiPro, we are delivering clear insights that are embedded into the solution, so our customers can be confident they are taking proper actions that will drive a competitive edge. John O Mahony
6 We drive data center efficiency. EcoBreeze with Two Economizer Modes Facility Power Module StruxureWare for Data Centers Reference Designs Our innovative data center physical infrastructure with full-visibility management lowers operating costs. Rack-to-row-to-room-to-building architecture lowers cost. Improving both efficiency and system uptime requires a second look at today s data centers! Featuring innovative and industry-leading physical infrastructure components, Schneider Electric data centers uniquely span traditional IT white space and facilities to improve interoperability, deliver true data center agility, and achieve cost-saving energy and operational efficiency. Our integrated architecture also lowers total cost of ownership, enables fast and easy design and deployment, and promises the highest availability. It comprises best-of-breed components available from a single source and through a global supply and services chain. From our well-known APC InRow cooling units to our innovative EcoBreeze facility cooling module with two economizer modes to our unparalleled data center management software StruxureWare for Data Centers, Schneider Electric products can be found literally in every data center domain. We offer the most energy-efficient components all uniquely engineered as a system. In the long run, the Schneider Electric rack-to-row-to-room-tobuilding approach reduces total data center life cycle cost up to 13 percent and 30 percent of data center physical infrastructure cost over 10 years! In fact, it s the foundation of our Business-wise, Future-driven data centers. TM > EcoBreeze with Two Economizer Modes Only the scalable EcoBreeze automatically switches between air-to-air heat exchange and indirect evaporative cooling to maximize conditions year-round. > Data Center Facility Power Module Our modular, step-and-repeat approach to facility power lets you expand capacity in 500 kw increments as needed, cutting OpEx by up to 35 percent and CapEx from 10 to 20 percent. > StruxureWare for Data Centers With building-to-server visibility, StruxureWare for Data Centers enables you to make informed decisions about your physical infrastructure. > Reference Designs Our standardized architectures for various data center conf gurations, from 200 kw to 20 MW, reduce time, cost, complexity, and system risk. > Data Center Life Cycle Services Including energy management services, professional services from planning, build/retrof t, and operations help ensure highest system availability and eff ciency. Business-wise, Future-driven. Get on the road to data center efficiency with our FREE white paper efficiency kit and enter to win a Samsung Galaxy Note 3. Visit: Key Code: g982u 2014 Schneider Electric. All Rights Reserved. Schneider Electric, APC, Square D, InRow, EcoBreeze, StruxureWare, and Business-wise, Future-driven are trademarks owned by Schneider Electric Industries SAS or its affiliated companies. All other trademarks are property of their respective owners _GMA-US_Note3