Three Things Executives Should Take-Away From HP Discover 2013

Last week, more than 11,000 attendees from over 90 countries descended upon Las Vegas for HP Discover. Between the “New Style of IT” and “Make it Matter” themes there were some powerful stories told and established partnerships with companies like United Airlines, NASCAR, and others that showed how innovations are improving IT.

 

For me it’s a great conference to get a very broad understanding on HP’s top line strategy and a view into the entire portfolio. My focus at the event was to meet with industry peers, customers and HP leaders to discuss executive level concerns.

 

With the passing of a week since I listened to HP's CEO, Meg Whitman Keynote on the state of HP transformations, key announcements and the HP Point of View (PoV) on the ever changing landscape of IT I find myself still very positive and excited about the changes at HP. Listening to the keynote and spending the week with key product and marketing leadership it has provided a great deal of confidence in the HP strategy HP.

 

If you missed the event I would encourage you to check out the highlight video of Discover and also visit hp.com/discover or the HPNN HP Discover 2013 landing page where you can experience the best of Discover virtually.

 

I believe there are three take-aways from the event that both IT senor leadership and executives should think about.

 

#1: HP PoV on the "New style of IT"

Mike Walker: HP POV on New Style of IT

 

Meg walked through her vision for what IT will look like in the future. She calls this future the "New Style of IT". Meg and her executives have been very vocal on this topic with both George Kadifa and Bill Veghte chiming in over the past few months.

 

With this future there are two forces at play, these are both benefits and challenges:

 

Benefits

  • Simple - In the future simplicity is king. Just like consumer technology has paved the way in setting the tone of IT in the future.
  • Cost Reductions – Enabling shifts like Cloud, BYOD and self-service much opportunity exists to dramatically reduce the costs of IT.
  • Just in Time Capabilities – In time and fit-for-purpose capabilities that are not bloated with functionality not needed.

 

Challenges

  • Increasing Technology Agility - The speed in which we bring capabilities to market are expected to be much faster than today. The tolerance to wait 12 months for a solution is over. How do we harness consumer technologies that are paving this way of computing?
  • Architecture – How do we get the right architecture in place to be able to build on the growing dependence on IT and the speed in which it needs to be delivered?

 

 

While I believe there is more here, HP’s executive leadership including Meg believe in this and have positioned its technology investments towards what HP believes the future of IT holds.

Why is this important? Simply put, there is a clear and deliberate destination that HP is moving. As an IT decision maker you want to ensure that the investments you are making with your technology providers are secure and you know where they will lead you. HP is providing that leadership.

 

#3: Strategy

 

Mike Walker: Strategy

 

 

This belief in the New Style of IT is guiding the HP Strategy. Meg communicated that she is very much committed to this vision on the New Style of IT but also executing on it as well. She believes this based on some key trends:

  • Technology is expected to:  spans multiple devices, platforms, software and services to deliver services customers’ requests. As an example by 2020 50 billion devices will be connected wirelessly.
  • Information technology is a strategic asset to businesses
  • As an IT leader you are no longer in the dark and hidden engine room but rather you are consulting the captain on the course of the ship.
  • HP research says that by 2016 75 percent will be in some sort of cloud
  • Gartner says that By 2017 CMOs will be the biggest customer of IT

This all leads to HP’s Big Bets

It was reiterated that HP has three core pillars to the HP Strategy. Those include:

  1. Cloud
  2. Information Management
  3. Risk and Security

 

Take-Aways for Executives

Central to the HP strategy is Information Management. What I think executives need to understand in this ever evolving IT world is that information keeps getting more and more important. More than ever this information affects our business directly.

 

An example of this is NASCAR. Steve Phelps, senior vice president and chief marketing officer of NASCAR discussed on stage with Meg Whitman that information is core to their business and drives downstream business decisions in new and innovative ways. By using the NASCAR Fan and Media Engagement Center (FMEC), it allows NASCAR to make real-time responses to traditional, digital, broadcast and social media by collecting this data in-house and storing it together. They took this one step further with a full re-architecture of the NASCAR.com site to leverage these insights.

 

Two out of three of HP’s big bets relate directly to information: Information Management and Risk and Security. NASCAR illustrated this point by saying big data is the next generation for their business that is enabled by HP Autonomy.

 

#3: HP is Executing on its Strategy & Pulling off the Transformation 

Executing on the Strategy.jpg

 

HP is fundamentally shifting from the old world of just hardware and infrastructure management software to innovating into key areas highlighted in the strategy. In Meg’s keynote she recognized this fact and said, “We built the old world and we believe in the new style of IT”.

 

A couple of factors that is exciting for HP:

  1. Diverse portfolio – With the shift in the core mission and the HP strategy the HP portfolio has been diversified much over the past few years with security, big data, hardware and software. Information provided at the event by HP suggests that this is paying off. For example, 40 percent fortune 100 is leveraging HP’s converged cloud.
  2. Major investments in Research and Development – With projections from IDC that server market revenues fell by an estimated 3.2% year-over-year in the fourth quarter, after a big hit in Q3 of 11.9%. To address this issue that hits the core of the HP business R&D has paid off in a big way. Innovations like Moonshot that promise to reduce power consumption by 89%, reduce the footprint of servers by 80% and lower costs by 77%. Moved HP.com to the Moonshot infrastructure that has 300 million hits a day (that’s 9 billion hits per month) and today it’s powered by the equivalent of 12 60w light bulbs.

 

Product Strategy Videos

For more summaries on how HP is executing it’s strategies below are some videos that guide you:

 

 

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