Welcome!

@CloudExpo Authors: Pat Romanski, Liz McMillan, Elizabeth White, Nate Vickery, Gopala Krishna Behara

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog

@CloudExpo: Article

IT Operations Modernization By @Dana_Gardner | @CloudExpo [#Cloud]

HP tools help energy provider manage acquisitions

IT Operations Modernization Helps Energy Powerhouse Exelon Acquire Businesses

This next BriefingsDirect IT innovation discussion examines how Exelon Corporation, based in Chicago, employs technology and process improvements to not only optimize their IT operations but also to both help manage a merger and acquisition transition, and to bring outsourced IT operations back in-house.

To learn more about how this leading energy provider in the US, with a family of companies having $23.5 billion in annual revenue, accomplishes these goals we're joined by Jason Thomas, Manager of Service, Asset and Release Management at Exelon. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: I gave a brief overview of Exelon, but tell us a little bit more. It's quite a large organization that you're involved with.

Thomas: We are vast and expansive. We have a large nuclear fleet, around 40-odd nuclear power plants in three utilities, ComEd in Chicago, in the Illinois space; PECO out of Philadelphia; and BG and E in Baltimore.

So we have large urban utilities center. We also have a large retail presence with the Constellation brand and the sale of power both to corporations and to users. So there's a lot of that we do obviously in the utility space, and there are some element of the trade, the commodity trading side, as well in trading power in these markets.

Gardner: I imagine it must be quite a large IT organization to support all that?

Thomas: There are 1,200 to 1,300 IT employees across the company.

Gardner: Tell us about some of the challenges that you've been facing in managing your IT operations and making them more efficient. And, of course, we'd like to hear more about the merger between Constellation and Exelon back in 2012.

Merger is a challenge

Thomas: The biggest challenge is the merger. Obviously, our scale and the number of, for lack of a better word, things that we had to monitor, be aware of, and know about vastly increased. So we had to address that.

Thomas

A lot of our efforts around the merger and post-merger were around bringing everything into one standard monitoring platform, extending that monitoring out, leveraging the Business Service Management (BSM) suite of products, leveraging Universal Configuration Management Database (UCMDB).

Then there was a lot around consolidating asset management. In early 2013, we moved to Asset Manager as our asset manager platform of choice, consolidating data from Exelon from their tool, the Cergus CA Argis tool, into Asset Manager in support of moving to new IT billing that would be driven out of the data and Asset Manager in leveraging some of the executive scorecard and financial manager pieces to make that happen.

There was also a large effort through 2013 to move the company to a standardized platform to support our service desk, incident management, and also our service catalog for end-users. But a lot of this was driven last year around the in-sourcing of our relationship with Computer Sciences Corporation for our IT operations.

This was to basically realize a savings to the company of $12 to $15 million annually from the management of that contract, and also to move both the management and the expertise in house and leverage a lot of the processes that we built up and that had grown through the company as a whole.

Gardner: So knowing yourself well in terms of your IT infrastructure and all the elements of that is super important, and then bringing in-sourcing transition to the picture, involves quite a bit of complexity.

You've leveled the playing field and you have that common set of tools that you're going to drive to take you to the next level.

What do you get when you do this well? Is there a sense of better control, better security, or culture? What is it that rises to the top of your mind when you know that you have your IT service management (ITSM) in order, when you have your assets and configuration management data in order. Is it sleeping better at night? Is it a sense of destiny you have fulfilled -- or what?

Thomas: Sleeping better at night. There is an element of that, but there's also sometimes the aspect of, "Now what's next?" So, part of it is that there's an evolutionary aspect too. We've gotten everything in one place. We're leveraging some of the integrations, but then what’s next?

It's more restful. It's now deciding how we better position ourselves to show the value of these platforms. Obviously, there's a clear monetary value of what we did to in-source, but now how do we show the business the value that we have done? Moving to a common set of tools helps to get there. You've leveled the playing field and you have that common set of tools that you're going to drive to take you to the next level.

Gardner: What might that next level be? Is it a cloud transition? Is it more of a hybrid sourcing for IT? Is this enabling you to take advantage of the different devices in terms of mobile? Where does it go?

Automation and cloud

Thomas: A lot of it is really around automation, the intermediate step around cloud. We've looked at cloud. We do have areas where the company has leveraged it. IT is still trying to wrap their heads around how we do it, and then also how we expose that to the rest of the organization.

But the steps we’ve done around automation are very key in making leaner operations, IT operations, but also being able to do things in an automated fashion, as opposed to requiring the manual elements that, in some cases, we had never done prior to the merger.

Gardner: Any examples? You mentioned $15 million in savings, but are there any other metrics of success or key performance indicator (KPI)-level paybacks that you can point to in terms of having all this in place for managing and understanding your IT?

Thomas: We're still going through what it is we're going to measure and present. There's been a standard set of things that we've measured around our availability and our incidents and whether these incidents are caused by IT, by infrastructure.

One of the key things is how you're changing and how you do IT operations.

We've done a lot better operationally. Now it's taking some of those operational aspects and making them a little bit more business-centric. So for the KPIs, we're going through that process of determining what we're going to measure ourselves against.

Gardner: Jason, having gone through quite a big and complex undertaking in getting your ITSM and Application Lifecycle Management (ALM) activities, what comnes next? Maybe a merger and acquisition is going to push you in a new direction.

Thomas: We recently announced the intent to acquire Pepco Holdings, which is the regional utility in Washington, DC area, that further widens our footprint in the mid-Atlantic area. So yeah, we get to do it all over again with a new partner, bringing Pepco in and doing some elements of this again.

Gardner: Having gone through this and anticipating yet another wave, what words of wisdom might you provide in hindsight for those who are embarking on a more automated, streamlined, and modern approach to IT operations?

Thomas: One of the key things is how you're changing and how you do IT operations. Moving towards automation, tools aside, there's a lot of organizational change if you're changing how people do what they do or changing people's jobs or the perception of that.

You need to be clear. You need to clearly communicate, but you also need to make sure that you have the appropriate support and backing from leadership and that the top-down communication is the same message. We certainly had that, and it was great, but there's alway going to be that challenge of making sure everybody is getting that communication, getting the message, and getting constant reinforcement of that.

Organizational changes resulting from a large merger or acquisition are huge. It's key to show the benefits, even to the people who are obviously going to reap some of these immediate benefits,  those in IT. You know the business is going to see some. It's couching that value in the means or method appropriate for those actors, all of those stakeholders.

Full circle

Gardner: Of course, you have mentioned working through a KPI definition and working the executive scorecard. That makes if full circle, doesn’t it?

Thomas: Defining those KPIs, but also having one place where those KPIs can be viewed, seen easily, and drilled into is big. To date, it's been a challenge to provide some of that historiography around that data. Now, you have something where you can even more readily drill into it to see that data -- and that’s huge.

Presenting that, being able to show it, and being able to show it in a way that people can see it easily, is huge, as opposed to just saying, "Well, here's the spreadsheet with some graphs" or "Here’s a whiz-bang PowerPoint doc."

Gardner: And, Jason, I suppose this points to the fact that IT is really maturing. Compared to other business services and functions in corporations, things that had been evolving for 80 or 100 years, IT is, in a sense, catching up.

Now, you have something where you can even more readily drill into it to see that data -- and that’s huge.

Thomas: It's catching up, but I also think it's more of a reflection. It's reflection of a lot of the themes of the new style of IT. A lot of that is that consumerization aspect. In fact,  if you look at the last 10 years ago, the wide presence of all of these, your smart devices and your smartphones, is huge.

We have brought to most people something that was never easily accessible. And having to take that same aspect and make it part of how you present what you do in IT is huge. You see it in how you're manifesting it in your various service catalogs and some of the efforts that we're undertaking to refine and better the processes that underlie our technical service catalog to have a better presentation layer.

That technical service catalog will refer to what we've seen with Propel. It's an easier, nicer, friendlier way to interact, and people expect that. Why can’t this be more like my app store, or why can't this be more like X.

Is IT catching up or has IT become more reachable, has become more warm and fuzzy as opposed to something that’s cold, hard, and stored away somewhere? You kind of know about it, and perhaps the guys in the basement are the ones who are doing all the heavy lifting, and it's more tangible.

Gardner: Humanization of IT, perhaps.

Thomas: Absolutely.

Gardner: All right, one last area I want to get into before we sign off. We've heard quite a bit  about The Machine, HP unveiling more detail from its labs activities. It’s not necessarily on a product roadmap yet, but it’s described through a lower footprint, much more rapid ability to join compute and memory, and then  reduce the size of the data center down to a size of a refrigerator.

I know that it's on the horizon, but how does that strike you, and how interesting is that for you?

Ramp up/ramp down

Thomas: It's interesting, because it allows you to get to bit more ability to ramp up or ramp down, based on what you need, as opposed to you having x amount of servers and x amount of storage that's always somewhere. It gives you a lot more flexibility and, to some extent, gives you a bit more tenability. It's directly applicable to certain aspects of the business, where you need that capability to ramp up and ramp down much more easily.

I had a conversation with one of my peers about that. We were talking about how both that and the Moonshot aspect and the ability to have that for a lot of the customer-facing websites, and the ability to tie them, in particular, the utility customer-facing websites whose utilization tends to spike during weather events.

While they don't spike all at the same time, there is the potential opportunity in the Mid-Atlantic of all the utilities spiking at the same time around a hurricane or Sandy-esque event. There's obviously a need to able to respond to that kind of demand, and that technology positions you with the flexibility to do that rather quickly and easily.

You may also be interested in:

 

 

More Stories By Dana Gardner

At Interarbor Solutions, we create the analysis and in-depth podcasts on enterprise software and cloud trends that help fuel the social media revolution. As a veteran IT analyst, Dana Gardner moderates discussions and interviews get to the meat of the hottest technology topics. We define and forecast the business productivity effects of enterprise infrastructure, SOA and cloud advances. Our social media vehicles become conversational platforms, powerfully distributed via the BriefingsDirect Network of online media partners like ZDNet and IT-Director.com. As founder and principal analyst at Interarbor Solutions, Dana Gardner created BriefingsDirect to give online readers and listeners in-depth and direct access to the brightest thought leaders on IT. Our twice-monthly BriefingsDirect Analyst Insights Edition podcasts examine the latest IT news with a panel of analysts and guests. Our sponsored discussions provide a unique, deep-dive focus on specific industry problems and the latest solutions. This podcast equivalent of an analyst briefing session -- made available as a podcast/transcript/blog to any interested viewer and search engine seeker -- breaks the mold on closed knowledge. These informational podcasts jump-start conversational evangelism, drive traffic to lead generation campaigns, and produce strong SEO returns. Interarbor Solutions provides fresh and creative thinking on IT, SOA, cloud and social media strategies based on the power of thoughtful content, made freely and easily available to proactive seekers of insights and information. As a result, marketers and branding professionals can communicate inexpensively with self-qualifiying readers/listeners in discreet market segments. BriefingsDirect podcasts hosted by Dana Gardner: Full turnkey planning, moderatiing, producing, hosting, and distribution via blogs and IT media partners of essential IT knowledge and understanding.

@CloudExpo Stories
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, described how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launching ...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...