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Figure 1: Source: IDC’s Future Enterprise Resiliency and Spending Survey, Wave 2, March 2022

Broadcom

For today’s teams, it is exceedingly complex and costly to support multiple generations of infrastructure and applications. What’s worse, according to an IDC report on network observability, this is the number one challenge to achieving digital transformation success.

The right data will lead you to the right root cause

The reality is that teams lost visibility and control when workloads started moving to cloud and SaaS environments. To get that visibility and control back, you need to be able to collect, correlate, and contextualize network and user experience data from all networks—whether you own the infrastructure or not.

Today, it is actually possible to realize complete network monitoring visibility, even across multiple generations of network infrastructure. You can establish unified views of bare metal infrastructures, VMs, and containers, even those hosted in ISP, cloud, and SaaS environments. 

In action: Full NetOps visibility and control

I recently caught up with an IT executive at a U.S.-based financial services institution. This organization provides services to banks all over the nation. When the organization began migrating services and workloads to the cloud and adapting to hybrid work realities, they realized they had an urgent network monitoring need. Customer and employee services were suddenly reliant upon internal corporate networks, ISPs, and cloud service providers. When customers and employees encountered downtime and performance issues, they needed to be able to quickly identify which domain the problem was arising in.

Their team was able to establish the comprehensive network monitoring capabilities outlined above, including across ISP networks, their data centers, and the cloud. Now, they’re tracking the user experience, no matter where customers or employees are located.

This visibility provided immediate dividends. For example, when a banking customer began reporting timeouts and latency issues, the financial service firm’s NetOps team was able to quickly identify the cause of the issue: a misconfigured load balancer running on the customer’s network. This is a great example of how teams can improve mean time to innocence (MTTI) when they have the right data in front of them. The NetOps team could quickly determine the issue wasn’t arising in their environment.

Not only does this provide significant improvement in operational efficiency and service levels, but it enables better, more proactive customer service. As a senior systems manager with the financial services firm stated, “We showed the customer that we really do care about them and their business, and we can continue to improve the outcomes our services provide.”

Conclusion

Everyone is talking about network observability today, but any industry analyst or seasoned IT veteran will agree: network observability is really just about having a network monitoring system that collects a complete and diverse set of network data and delivers actionable insights. By harnessing these capabilities, this financial services firm was able to improve network delivery, optimize the user experience, maintain business continuity, and achieve better business outcomes.

Click here to learn more.

Networking

Posted on Posted in Digital transformation, General topics Tagged with , , , , , ,

Hewlett Packard Enterprise (HPE) is in talks to acquire cloud computing firm Nutanix, Bloomberg reported on Thursday, quoting sources familiar with the matter. 

The deal between the two companies could be mutually benefitial according to experts.

Nutanix offers its customers an open, software-defined hybrid cloud platform. HPE, on the other hand, calls itself an edge-to-cloud company that helps customers protect, analyze, and act on their data and applications from anywhere. 

“The two companies have a symbiotic and competitive relationship. It is symbiotic because when Nutanix goes to the market to sell the HCI products, it sometimes uses HP servers to package the HCI deal,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research. “At the same time, HPE has a portfolio called SimpliVity, which is hyper-competitive with Nutanix.”

In recent months, there have been talks on and off between the two companies, the Bloomberg report said.   

Nutanix is valued at over $6.5 billion

As of Wednesday, Nutanix had a market capitalization of about $6.5 billion, while HPE was worth over three times of that at $21.6 billion.

For the financial year 2022, Nutanix posted revenue of $1.6 billion while HPE revenue stood tall at $28.5 billion. 

“The enterprise software business is a scale business, a big boys’ play. So, Nutanix will either have to acquire firms and get to the next level of scale or they will have to consider an option of getting acquired from other firms,” said Pareekh Jain, CEO at Pareekh Consulting.

In October, Nutanix was reportedly exploring sale opportunities after receiving a takeover interest.  

“HPE has more than 100,000 customers, over five times the size of Nutanix customer base. From HPE’s perspective, they will get a growth portfolio which they can cross-sell to their customers, and Nutanix will get to work with a larger customer base of the HP group,” Jain said. 

During the COVID-19 pandemic, the demand for cloud computing firms surged as businesses had to speed up the process of their digital offerings. Spending on cloud services in 2022 has been $490.3 billion, according to Gartner, and is expected to reach nearly $600 billion by next year, growing at over 20% year-on-year.  

HPE has a large legacy portfolio, while Nutanix has a growth portfolio with more software solutions, Jain said. “HPE wants to get into high-growth areas of cloud software, so Nutanix is the right fit for them. Nutanix can help HPE accelerate the transformation into new cloud services.” 

Customers might have to pay more for cloud services

While the deal with Nutanix, HPE could have a twin advantage—lower operational costs, and a higher potential to charge more for its cloud services.

HPE currently uses Microsoft or VMware for the virtualization platform. If they use the Nutanix platform, the licensing cost can benefit HPE directly, Gogia said.

Customers on the other hand can expect higher pricing post the acquisition as HPE will get a more dominant market share, allowing them to command higher pricing, Gogia said. “While the deal can give customers better support from the companies, they can also expect higher pricing. As seen in the past, after the company has been acquired the licensing cost and pricing overall go north in the range of 20% to 30%.”

Mergers and Acquisitions