5 Ways Global and Regional Outsourcing is changing

Peter Blythe, Chief Architect, Systems Integrators & Outsourcers at Avnet Technology Solutions EMEA

According to IDC, the industry’s dramatic and disruptive shift to its 3rd Platform for innovation and growth will accelerate in 2015. Spending on these technologies and solutions — growing at 13% — will account for one-third of all industry revenue and 100% of growth. The 2nd Platform world will tip into recession by mid-2015. 1

Driven by some of the fastest changes that the IT market has seen for years, the traditional approach to outsourcing is becoming more difficult to apply, as client and consumer needs are constantly changing. Whether that is the need for mobile enabled applications, cloud delivered platforms and services, the need for delivering better business outcomes through use of the data and analytics, or the effect on brand reputation through instantaneous social feedback, the enterprise customer is becoming more demanding as technology moves to the third platform and organisations need to be more agile in the market place to survive.

If we look back 5-10 years, the IT Outsourcing (ITO) business was focused on running core IT functions for large organisations and government departments with long term contracts that have a typical length of 7-10 years. During the contract period, the outsourcer would deliver the core IT services and run the IT environment for the client and help drive down cost and improve the efficiency of the environment. However, this outsourcing approach was typically un-dynamic and often lead to the outsourcing contract being based on an old way of delivering outdated IT and IT efficiencies in a budget that was determined at the start of the contract.

So, with the change in contract length to typically 3 years with possible 2 year extensions, the introduction of cloud based infrastructure, services and applications, Global System Integrators (GSIs) need to be much more agile in their approach to their business.  Being large organisations themselves, they provide a good risk profile for the customer. However, on the downside, being large organisations they are not always as agile as smaller regional integrators or specialist companies when it comes to adapting to market change.

So how are the outsourcing businesses changing to adapt to the market change?

Adopting a more agile approach to outsourcing and adopting Systems Integration and Management (SIAM) models, in order to help deliver a consistent service level to their clients, no matter what services they are delivering.

By adopting the SIAM model, the systems integrator is able to deliver consistent service levels for the core outsourcing services to the client – whether they are delivered from an onshore, offshore or third party who has a specific industry or application knowledge for the specific area of outsourcing e.g. HCM, Retail etc. Additionally, by using this model, new services can be adopted and added into the service offering more quickly e.g. end user computing or SaaS.

Understanding the customers’ market and the specific market business needs. As an ITO it is not good enough to be able to deliver an outsourcing service alone, it is important to also understand the challenges and restrictions of the market you are entering.  For example, defence outsourcing is quite different from retail outsourcing. If they do not have the skills and market and business knowledge of that sector, it is very easy to see an outsourcing project go wrong and lose money due to unforeseen industry challenges.

Organisations are adopting DevOps processes. In order to deliver a more agile and faster approach to delivering applications and services, business are adopting the DevOps actions of: People, Process, Culture and Tools in order to deliver better Business Process Management outcomes. This is key to allow the systems integrator or outsourcer adapt to the changing cloud and consumer driven society and deliver front, back and mid-office solutions more rapidly to their clients.

Building Digital Practices. Outsourcers are building digital practices to help deliver the innovation that might otherwise be difficult to achieve under the traditional outsourcing model. These practices are designed to meet the needs of the third platform with cloud, mobility, social and Big Data Analytics at the core of the services they deliver. As with any IT project today, mobility is a key part of the deliverable outcome for the client, as it brings complete business and end user inclusion, so the digital practices have to have a mobility strategy as part of core offering they take to market.

Source: IDC MaturityScape Digital Transformation Stage Overview, March 2015. 

Focusing on the business transformation need – not just the ITO needs. Traditionally the systems integrator has been focussed on the IT side of outsourcing with separate businesses for consultancy & BPO. However, as the  change to the third platform accelerates, the ITO is changing to incorporate many of the elements from the business consultancy and BPO business as part of a wider business transformation offering.

In today’s channel, outsourcing businesses are being forced to adapt to the constant market change. Is your organisation using any other methods to adapt to the market change and to prepare for the third platform?

1 IDC Predictions 2015: Accelerating Innovation – and Growth – on the 3rd Platform, doc #252700, December 2014.

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Posted under IT infrastructure

Organisations should be adopting a new proactive approach to security breaches

Dieter Lott Avnet Technology Solutions EMEA

Dieter Lott, Vice President Business Development EMEA, Avnet Technology Solutions

IT infrastructure is in a constant state of change, and nowhere is this more evident than in the Security and Networking marketplace. New dynamics such as ‘Bring Your Own Device’ (BYOD) and hybrid computing trends are creating bigger security challenges for businesses as working cultures become more mobile. We’re seeing that the traditional methods of data protection are no longer enough as larger companies become increasingly subject to high profile data breaches, and cyber attacks become more calculated. Businesses of every size are slowly waking up to the principle that it’s no longer a case of ‘if’ you’re breached but ‘when’. Therefore, it is essential for any IT strategy to adopt a modern proactive approach to security breaches that takes into account business intelligence.

Traditionally, data breaches were seen to be the cause of external sources, and security efforts were designed to keep threats out by building walls around an organisation’s data. However, the requirements of an enterprise’s security solution are changing rapidly. The adoption of private, hybrid and public cloud solutions has allowed businesses to store their applications and information in a variety of places, all of which need addressing and securing. Therefore as businesses’ infrastructures become more complex to manage, insider threats become increasingly common.

These transformations are creating security gaps, and companies are facing the challenge of how to secure applications and devices in a way that’s not overly disruptive to the user but also provides the right level of corporate security. As companies adopt cloud solutions and broaden their network scope, they also begin to struggle with how to meet security compliance demands without sacrificing network availability. Users are also putting pressure on enterprise networks as they increasingly embrace mobile working practices. This level of flexibility increases the pressure on perimeter security, as users drive a greater volume of traffic onto the network by accessing services from multiple locations.

To move forward, organisations need to understand that breaches will very likely still happen, and it’s essential to have the right system and processes in place to manage an event once it’s happened. The modern approach to network security is all about the intelligence you have on your environment and the speed with which you can respond to a threat. The secret to which is using forensics and analytics to track a breach when it happens, and allow network managers to understand the damage that has been done  and find the person who has committed the offence.

In order to close the security gaps, businesses need network security solutions that give complete visibility and do more than just alert you to breaches. I believe the next generation of security software will evolve to operate in constant learning mode and be able to adapt to the strategies of potential threats in real time. There are a number of products and services already in existence in the market to help organisations manage such an event, and businesses should be looking to adopt a range of security solutions that can offer holistic support before, during and after a security breach.

There is much more focus now on the analytics of what’s happening in the network, how it’s happening and the forensics of ‘something’ has happened – what’s the damage that’s been done?’ These technologies can help businesses to plug the security intelligence gap which will enable them to move from a ‘defensive’ approach to one that’s ‘proactive’, to limit and prevent damage from security breaches – today and tomorrow.

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Posted under BYOD; celebrating mobility, IT Software

Ditch the Digital Duck Tape – Consider All Options with Hyper-Converged

Tom Corrigan, sales director, Avnet Technology Solutions, UK, explains why the channel is perfectly positioned to take advantage of new modular hyper-converged systems and why there is no time to lose.

The channel is buzzing with terms such as the software-defined data centre, converged systems, hybrid cloud and more recently, hyper-converged infrastructure.  But what does it all mean and what is the difference between converged and hyper-converged systems?  Most importantly, how can the UK channel develop strategies that drive profitable growth from this technology sector?

Analyst predictions are suggesting >150% market growth over 2015 and beyond and this dramatic growth has seen a large number of technology start-ups delivering very capable solutions focussed in this area. Equally as exciting is the breadth of emerging technologies being launched from the established vendors who have strategic relationships with Avnet both in the UK and across the region.

Alongside this vendor push we are seeing significant volumes of requests from business partners and their end-user communities around the delivery of integrated platforms to manage new application deployments rather than the provision of disparate compute, network and storage systems in legacy fashion. In line with this change in demand, reference architectures and converged systems have emerged as pre-defined combinations of server, storage and network solutions to help simplify platform design for what are often fairly complex workload requirements.

Hyper-converged infrastructure takes this to the next level and offers a fully integrated platform across compute, network, storage and hypervisors that are designed, configured and delivered as a single appliance. This modular design means they are quick to design, simpler to deploy and can be scaled out by adding more appliances as required.

So what does all this mean to business partners looking to broaden their capabilities beyond selling compute systems, storage arrays and perhaps introducing a hypervisor for virtualisaton? With potentially simplified technology for end-users, in terms of design and deployment, now is the time for partners to expand their skills to include the application stack and delivery of margin-rich services to support a hyper-converged infrastructure. By taking this approach, opportunities will open up around private cloud and application consulting in addition to application deployment, which is where the best margin opportunities reside for the channel community.

However, the first step to hyper-converged is to carefully choose which vendors to partner with.  Which eco-systems offer the most benefits? While hyper-converged is an emerging technology it has already been validated by many established vendors. The building blocks of most hyper-converged platforms may not yet be one size fits all, but certainly one size fits many.

Within our global markets Avnet is are seeing this change and we feel that now is the time to look beyond the digital duct tape that holds disparate hardware and software stacks together and consider a more consolidated approach to delivering applications and related services.

How can Avnet help? Well for starters, the strategic partnerships we hold globally, regionally and locally are with the leading technology providers and this gives us a huge head start as we can access the technology stack that best fits the customer requirements. To supplement this we have a dedicated in-house technical and sales team focused only on converged platforms. We also have immense capability to build these systems to order and at a scale across EMEA from our Tongeren facility, which is certified to the highest levels as required by our supplier partners.

Bringing new technologies to market and enabling the channel to capitalise on this clear market opportunity is hugely important as Avnet continues on its journey to transform technology into business solutions for customers around the world.

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Posted under IT infrastructure

The channel needs to wake up to converged infrastructure and emerging technologies in the data centre

Dieter Lott, Vice President Business Development, EMEA at Avnet Technology Solutions EMEA

Many organisations’ data centres today are made up of complicated legacy models. This has led to a drastic increase in IT complexity overall, creating big challenges when it comes to IT management, security, scalability and cost efficiency within data centres.

On top of this, today’s IT departments have a perplexing choice of technologies as they build and maintain their data centres to meet the demands of the digital economy. To address the needs of the new digitally savvy workforce too, larger organisations have built teams around the technology disciplines of server, storage and networking and the best-of-breed solutions in each area. The luxury of dedicated teams though isn’t available to all organisations.

One increasingly popular approach to this challenge is by implementing converged infrastructure and new emerging technologies in the data centre such as software defined networking (SDN), operational analytics and big data.

Converged infrastructure is now well and truly a growth market and the channel needs to address this now. This technology has the ability to bring together all fundamental hardware components in an intelligently engineered, purpose-built configuration. A key benefit of converged infrastructure is the fact that these systems are pre-configured, integrated, tested and installed as a single, cohesive unit, rather than ‘bolted together’ with a digital version of duct tape.

In a nutshell, by deploying converged infrastructure, organisations can reduce complexity, ease deployment and integration, lower expenses and improve their ability to deploy technology for truly transformative needs, rather than simply to ‘keep systems operating’.

But what else can it do and what should the channel be addressing?

  1. Accommodating new and emerging technologies – complex and rigid legacy systems make it difficult to integrate newer IT such as mobility and cloud computing.
  2. Bridging skills gaps – close integration points between the different technologies within the converged infrastructure stack and upper level management/orchestration software means IT management is greatly simplified and training requirements are often reduced. However, in order for customers to realise these benefits, the channel needs to address skills in delivering solutions and services in tools around management and orchestration.
  3. Businesses operate in silos – to realise the full potential of converged infrastructure, end customer businesses need to have a consolidated approach to managing their infrastructure, and channel organisations need the same joined up approach to delivering it.
  4. Limited resources – converged infrastructure can alleviate this challenge of limited resource by providing technology that is built to work together and can be managed in a simplified cohesive manner.
  5. Legacy infrastructure – standardisation of infrastructure is the key to simplifying infrastructure management. Converged infrastructure needs to be viewed not simply as a typical IT cost, but as a means to reducing complexity and operating costs over time.
  6. Complex regulatory environment – converged infrastructure creates a standardised model to ensure compliance is met as you can define the mould and repeat it, which is much simpler than maintaining compliance in a non-standardised, ad-hoc infrastructure.
  7. Ensuring continuity – the inability to respond to customer demands for even a moment can be massively detrimental to an organisation’s financial health –business continuity is key. This doesn’t mean simply saving data in the event of disaster but maintaining “business as usual” IT. Converged infrastructure simplifies disaster recovery planning as businesses can work with a standard model for infrastructure regardless of location.

On top of these challenges, the pace of change within data centres is spectacular and this is why converged infrastructure, and new emerging technologies like mobility, cloud and software defined networking (SDN), are already key discussion points in the IT industry due to the drive for more scalable IT architectures. The convergence of data centre tech and networking tech is causing this significant market shift.

Data centre infrastructure is becoming increasingly complex as end-users embrace a combination of on- and off-premise cloud solutions, as well as platform and software “as-a-service” models. At the same time, businesses are under pressure to align IT costs more effectively to performance, ensuring high demand times for IT are covered effectively without over-investing. This need is compelling IT organisations to place more emphasis on capacity forecasting and analytics – yet finding the different skill levels required for these new emerging technologies in the data centre is a real challenge. Gartner backed this when it found 80 percent of businesses “will find growth constrained from a lack of new data centre skills by 2016.” This means there’s a question over whether the channel has the IT skills to address market demands.

I believe we now have an opportunity in the channel; this is a chance for resellers to step in and fulfil the IT skills on behalf of their customers. The channel needs to help businesses in EMEA to understand how and why these technologies help to overcome business challenges and requirements for today – and tomorrow. What is more, it answers, to a certain extent, where the value proposition in the future reseller landscape lies. The role distributors play will be affected too. We will be trusted to provide both enablement and the skills and training that are required.

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Posted under IT infrastructure

FlexPod at the Avnet Solution Centre in Tongeren, Belgium

In a previous blog post, on our Avnet Advantage blog, there is the opportunity to watch a complete FlexPod solution be built in 3 minutes at the Avnet Global Solution Centre located in Chandler, Arizona.

Now you can take a deeper dive into the planning and construction of the FlexPod at the Avnet Solution Centre in Tongeren, Belgium. One of the few places in Europe where complete FlexPod solutions can be built and validated.

Watch the video below to take a tour of the centre, and see the FlexPod process.

FlexPod Assembly in EMEA

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Posted under Uncategorized

This post was written by on March 19, 2015