Emulex Blog: Market Mantras

The VAR View: What CIOs Should Know about Network Convergence

Posted August 20th, 2009 by Shaun Walsh

It’s a bright and clear summer morning, you have your Starbucks in hand and you are off to your first meeting with a CIO about network convergence. You have heard all of the vendor pitches, built a PowerPoint deck with all of the right talking points… but is it enough? What does a CIO really need to know about network convergence at a strategic level to ensure you are a long-term partner and provider to his or her company?

Here are seven key points to hit as part of your CIO meeting:

    1. 10GbE is Moving into the Mainstream – 10GbE is becoming the main backbone in the X5500-based blade servers from IBM, HP, Sun and Dell. Next year, every major server vendor will be leveraging 10GbE with some form of converged NIC, iSCSI and Fibre Channel over Ethernet (FCoE) interface. This is because the cost of 10GbE is coming down, 10Gb Enhanced Ethernet provides the flexibility to support all key network protocols on a single wire and 10GbE will be the core networking technology for the next decade.

    2. Network Convergence Starts at the Host – Blades servers are very tight on I/O real estate and are the natural leaders for network convergence. Why guess how many IP and Fibre Channel ports you need, when you can load up on 10GbE ports and then just provision the bandwidth to each blade or virtual machine (VM) as required? This networking strategy will also easily change as VMs migrate and I/O needs evolve. In terms of hard dollars, this saves on host bus adapters (HBAs), NICs and hundreds of cables per rack. See our Convergenomics Cost Calculator for more details: http://www.emulex.com/files/tools/FCoE-Calculator.html

    3. Network Convergence Does Require Protocol Bridging/Switching – One thing most vendors dance around is that the first generation of network convergence solutions requires a protocol conversion box (like the Cisco Nexus 5000) to convert Enhanced Ethernet to standard IP and Fibre Channel. The cost of this box is more than offset by the savings in NICs, HBAs and cables. This piece of the solution is vital for protecting the investment data centers have in IP and Fibre Channel gear. Value-added resellers (VARs) need to tackle this issue up front with CIOs. As a rule, CIOs are smart folks, and they will arrive at this observation right away, put it on the table and take care of it out of the gate. These bridges are offered by Cisco, Brocade and Juniper, and IBM recently announced an embedded Enhanced Ethernet switch that fits blade center chassis.

    4. Network Convergence Provides Investment Protection – As CIOs move into their next round of server upgrades, buying connectivity that will last for the full lifecycle of the server makes sense. An early move to network convergence should be an easy decision for them if we (VARs and vendors) communicate the long-term value and investment protection to them. This is also a good time to leverage support from their favorite server, networking and storage vendors, who will all have strong network convergence programs.

    5. Network Convergence was Built for Green Field Data Centers - If this meeting with the CIO is about a new green field opportunity, then the move to network convergence based on 10GbE will not be a “no-brainer.” If this is a green field sales call, don’t go alone; make this a much more compelling story with a team sales call with reps from their favorite server, networking and storage vendors. This single call should make it clear to the CIO that network convergence is real and has strong industry support and a compelling value proposition.

    6. Network Management Is Converging – Up to this point, the lines between IP and Fibre Channel network management were fairly clear. Now, these lines will blur, and this is an issue that needs to be addressed upfront (we will hit this in an upcoming blog ).  CIOs need to look at regulatory, business continuance and security policies and best practices as they move into the network convergence world. For VARs, this is a key new area of professional services they can offer. It will provide more value that being a simple provider of the gear; it will differentiate your offering.

    7. Know Where They Are in Their Hardware Lifecycle Management – Now for the real driver of purchases: does this lower their current operational expenses? Are you speaking to them at a point where they are ready for a hardware refresh? Have the costs of owning, servicing and managing older gear exceeded the cost of the new amortization? Helping the CIO understand this will be a key to making the case for network convergence. If they don’t know, then you can help them do an audit to find out if this will really save them money. In discussions with Emulex’s CIO, Dave Goff, he indicated that, for his team, enhancing business programs is higher on the spending plan than refreshing hardware this year. You have to make sure the CIO knows that doing this will lower his cost and free up resources for other top priorities. I hope this list helps you plan your next CIO session on network convergence. This new market will change the game, not just on networking storage and servers, but will define which VAR has the right strategic partnership with CIOs and not only gets the Purchase Orders for the IT gear, but the coveted services revenues and the long-term partnerships that build long-term relationships.

The VAR View – Cash for Convergence: Merging IP and Fibre Channel for Fun and Profit

Posted August 10th, 2009 by Shaun Walsh

Welcome to the first entry in “The VAR View” series. As part of the Market Mantras Blog, we will begin a series of blog entries about how value-added resellers (VARs) can grow their business and profits with network convergence. This series will be dedicated to helping our partners get ready for the network convergence market and outline ways to merge IP and Fibre Channel for fun and profit. At the end of this blog, I have provided a sampling of titles for forthcoming blogs in this series.

Recently, the U.S. Congress allocated another $2 billion dollars for the “Cash for Clunkers” program and, since I love catch phases—typical marketing vice—I thought to myself, “Cash for Convergence”…what would that program look like? Let’s face it, market transitions are the best source of cash for the VAR community. That’s because, in the early phases of a market transition, it is VARs who invest and develop domain expertise and best practices. This provides the opportunity to build a profitable new practice: selling more consulting while developing sustainable professional services.

When I think about network convergence, I am reminded of the Voice over Internet Protocol (VoIP) transition. We had IP VARs on the right and telecom VARs on the left. For the most part, they were separate markets that did not overlap. VoIP brought these two markets together and created an entirely new class of VAR. VoIP VARs needed to know more than just the technical aspects of IP and telecom. They had to learn about selling IP-based telecom versus traditional phone systems; build new value positioning; overcome the technology adoption concerns; document the tangible return on investment (ROI) of the new VoIP solution; and call on new types of people in their accounts and understand the incredibly complex world of telecom billing services. In short, they worked hard for their money, but they created new value in their businesses with a differentiated, sustainable and profitable stream of hardware, software and services revenue.

I see the same opportunity for our VAR partners when I look at the network convergence market. This is not about replacing Fibre Channel pipes with 10GbE IP pipes. It is about building a business practice that is much more than merging networks to save on hardware. It will require a VAR to completely understand network management, security, business continuance, regulatory policies and many more items that are involved in the merged world of IP and Fibre Channel. As Billy Mays would say, “But that’s not all!”.The most challenging part will be the human factors. In the converged world, who owns the network now? Is it the applications administrator, because of virtualization? Is it the storage administrator because of the unique storage skills required? Or is it the networking administrator, because it is all based on 10GbE IP going forward? Or is it the security administrator? Also, who sets the policies for each part of the network? What are the best practices in the converged world? The list goes on and on.

When I look at the network convergence market opportunity, I see four key areas for VARs to add value:

  • General Contractor – We have to merge the current network plumbing into the converged world without breaking the current infrastructure and provide a path forward based on the upgraded network convergence architecture.
  • Group Therapist – Network convergence will force the administrative staff in many companies to go through the five phases of mourning before they reach acceptance of the new networking model. Sitting down with the various administrative staff to get them comfortable and accepting of the new networking model will probably be the most challenging part of the new business practice. They will need to be educated about providing the right tools, diagnostics and spheres of influence.
  • Purveyor of Best Practices – When you have the administrative staff buy-in, then you have to provide the right policies, configuration settings and best practices to support service level agreements (SLAs), security, regulatory, business continuance and other operational rules of the road in the new network convergence model.
  • Consigliore – As in “The Godfather,” every IT don needs a trusted consigliere to provide ongoing support, new equipment, services and support.

Building a new practice in network convergence will require some work, but the rewards should be a sustainable and profitable practice for our VAR partners across the globe. In future blog entries we will explore each of these topics in detail.

Additional Blog Topics for “The VAR View”:

  • Steps to Building a Network Convergence Practice
  • Shrinking the Admins – How to get “Group Think” about Network Convergence Administration
  • Getting your Network Convergence General Contractors License
  • Becoming the Professor of Professional Services in a Converged World
  • Building the new Network Convergence Rack: What you need to Know
  • Selling Network Convergence to the CIO…What He or She Needs to Know
  • Best Practices for Converged Networking Management
    • IP, iSCSI, FCoE
    • Provisioning
    • VM configuration and support