Driving down OpEx with technology - Infrastructure Management Software Blog -
Driving down OpEx with technology

It's been a good number of months since I traveled in Europe but I just spent a couple of weeks hopping around on business. There were some interesting changes to the travel experience which got me thinking about parallels in the IT Operations world.
 
First was the check-in experience with Air France / KLM. Basically self-service check-in at a kiosk, with a bag drop. "Nothing new there!" I hear you say. Well what was new was that it was not optional - at least not as far as I could see. There were no check-in agents at desks - only a few floor-walkers minding the kiosks and folks on the bag drop. Obviously this represents a significant cost saving, but that is not my point.

We've all seen this stuff deployed in airports for a while but airlines have been cautious about forcing customers to use it. That was not the case here. All of the regular economy class customers had to use the automated check-in. I guess the airline has overcome (or over-ridden) any fears about the effectiveness of the technology or the danger of impacting the service provided to the customers in favor of some tangible reductions in OpEx.
 
At the other end of the trip I also saw changes in hotel check-out. Now the US has been pretty good at speeding check-out by providing express check-out services. You know the deal, your bill is posted under your door at some horribly early hour of the morning. Your credit card is charged the amount shown unless you decide to go and pursue the regular check-out service. Of course the hotel also benefits because they can deploy less staff to service the check-out transactions. Europe has not adopted this approach. I'm not sure why but I guess it may be some differences in legislation regarding charging someone's credit card without them being present.
 
So the challenge for European hotels is how to maintain quality of service (a rapid check-out) but reduce the OpEx of having lots of staff present during the check-out rush hour in the mornings. A Pullman Hotel in Paris had applied technology to solve this problem. As I headed into the lobby to check out on Friday morning I was ushered towards a bank of (you guessed it) kiosks. The experience was a carbon copy of the airport check-in - just different cards being provided by me and documents being printed by the kiosk. After I had been 'processed' I sat in the lobby waiting for some colleagues to join me. There were three check-out staff that I could see - one on a regular desk duty, two floor-walking the kiosks. The Pullman is a big hotel.
 
Then I started thinking about how the airlines and the hotel were displaying behaviors which are very similar to what we are seeing in the IT Operations space. The drive is to reduce OpEx whilst maintaining service levels. The approach adopted is to use technology to automate activities which have required manual interactions.
The technology is being put into service in spite of any misgivings over its ability to be 100% effective. The companies are willing to take some calculated risks in order to get a demonstrable reduction in OpEx.
 
I see the same behaviors in IT Operations. Forward looking companies are applying technology to automate wherever possible - automate event correlation, automate analysis and problem isolation, automate fixes, automate provisioning. The technology to do a lot of this has been around for years, but previous objections to its deployment - fears over the certainty that the technology will be 100% effective - are being pushed aside as the sights are firmly set on reducing OpEx.
 
For Operations Center, Jon Haworth


Posted 03-30-2009 7:02 PM by pspielvogel

Comments

michael luther wrote re: Driving down OpEx with technology
on 04-16-2009 8:15 PM

Jon,

We are seeing the same thing. Uplogix has developed a product that extends automation out to the very edge of the network via management appliances. This gives us the ability to deliver a wide range of FCAPS capabilities directly to devces, even during outages.

One example of what this means -- if a config push drops a router (or remote branch) completely offline, how long does it take to get that outage diagnosed and fixed? Because we sit out at the branch, we are able to keep managing during and through that outage, to identify the problem and automatically fix it, in a matter of 10-15 minutes. All without human intervention.

What are your thoughts on this kind of approach to completing the full cycle of automation? We see it a s a logical extension of what you're doing at HP, and our customers seem to agree.

BTW, we integrate with HP Openview...

Best,

Michael

mluther@uplogix.com

jonhaworth wrote re: Driving down OpEx with technology
on 04-23-2009 10:10 PM

Thanks for the comment Michael.

My experience is that there are a number of hurdles that need to be overcome with regards to adoption of automation - automation of any kind.

The obvious one is the cost equation

- what does it cost to implement versus the costs of doing something manually,

- how often do you have to perform the manual activity,

- how much additional value can you derive from the automation (less or no downtime),

And then there is the 'trust' aspect. If people don't trust the technology to perform consistently and accurately every time then the cost equation becomes a moot discussion - unless there are very compelling reasons to make cost over-ride trust issues (like a recession).

It's a balance - a seesaw. Right now cost considerations are higher - and a strong cost reduction equation will over-ride the FUD.  

The good thing is that I believe more companies will dip their toes in the automation pool and discover that the water is quite agreeable. We will see broader adoption of automation technologies in other areas of IT operations - and I'm sure that the kind of technology that you describe will be compelling.

I'm not familiar with your specific solution but it sounds interesting.

Jon

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