The Race To Reduce Complexity And Gain Market Share Is On:
IBM’s On-Demand Operating Environment 
and HP’s Demand More

We can always tell we're moving from a new idea to a mainstream market when the second tier vendors arrive.  Just as IBM and HP are starting to tidy up their earlier announcements about how to use a combination of On-Demand delivery techniques and Managed Systems to significantly reduce cost and complexity, we are starting to hear from the second tier.  Well save them for next week because there's way too much to tell you about IBM and HP.

IBM's On-Demand Operating Environment

IBM is taking its autonomic technology, its enhanced system management, and its on-demand delivery and adding to it the notion of using these enablers, together with business process improvements and special offerings from its Global Finance division to transform its customers' businesses.  It calls this overarching concept the IBM On-Demand Operating Environment and it includes:

integration of every type of application and computing environment

automation of systems management

virtualization of resources based on business policies, open standards, and a broad set of shared components.

IBM will provide this through custom offerings from its Global Services unit, hosted offerings from its On-Demand unit, and packaged offerings that can be implemented more simply and quickly.  That makes them suitable for delivery through business partners and for use in the mid-market, as well as for getting started in larger organizations.

Since all of this is based on IBM products and concepts that have been building for several years, there are already customers using some parts of the offering, with more to come.  IBM itself is an excellent example of a company transformed and enabled by these new technologies and delivery methods.

HP's Demand More

IBM'S two-day analyst briefing on its On-Demand Operating Environment and its underpinnings was followed a few days later by HP's marketing extravaganza around its Demand More theme for its Adaptive Computing technology.  Like IBM, HP has been talking about Adaptive Computing for more than six months (they briefed analysts last October and rolled out a formal announcement in November, 2002).  This is a way for HP to wrap a marketing theme around the pieces and offer more details.

Again, there is the notion of reducing complexity through automation, systems management, and the ability to buy computing on demand (that is, as you need it).  HP has a few flavors that are a bit different than IBM.  For example:

HP claims that it was able to integrate HP and Compaq through the use of its Adaptive, Demand More environment.  We're sure they used whatever was available, but feel we should note that lots of the things they described last week aren't shipping yet and, we'd guess, aren't being used internally et either.

HP offers a UDC (Utility Data Center), which is a highly automated, managed facility.  HP has already shipped these to customers and implemented the UDC internally.  It is also possible to access UDC services as a hosted offering.  IBM has somewhat similar offerings, but put together a bit differently.  This is a good idea (regardless of your vendor of choice) and you can expect the usual competitive comments. 

At IBM the emphasis is on a top-to-bottom IBM offering.  That's because IBM is in the HW, middleware software, and services businesses. At HP a lot more emphasis is placed on partnering.  HP does have a substantial software offering for some parts of the middleware, partly based on enhancements to its OpenView software, but it partners for other parts of its software offering.  HP is providing substantially more services this year than previously, but still is a much smaller service provider than IBM, so they obviously do more partnering.

 Bottom Line

The two biggest enterprise vendors in the market, IBM and HP, have decided that their next battle is right here.  Their offerings have similarities, but they are not identical.  Their go-to-market strategies differ, with IBM using partners more for application software and mid-market customers, HP relying on partners across their entire offering.  This is not a matter of right or wrong, just different approaches.

Shortly, we'll take the 10 pounds of information we've collected from IBM and HP (as well as Sun, Microsoft, and others) and publish the comparison charts and comments we've been working on.  There you will find more details on timetables and products.

The computer landscape is going to change significantly over the next five years,  It will be more automated, better managed, much more reactive to the business needs of the companies who invest in technology.  The battle is just beginning as to who will provide these systems, exactly what customers will like best, and just what these systems will do.

You get to choose:  When to play and who to play with.  These are critical decisions and on the one hand we envy you the opportunities you have, but not the difficulty in selecting.

(back to top)  

Comments or Questions: Send Email to opinions@wohl.com

Home/ Search / 2005 Articles / Issue Archive / Free Newsletter

Entire contents © 2001  by Amy D. Wohl. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden.