March 1997, Volume 1, No. 1 Computer Systems Integrators: The Inside Story

Since software companies consider their product the driving force behind systems implementation -- the open systems movement makes them think the box is irrelevant -- most manufacturing-oriented software providers have well-staffed SI organizations or a list of partners. Among those partners is at least one, and more often all, of the top computer companies. It's a quid pro quo relationship, these "Alliance Programs" and partnerships.

We tried to establish a roundtable with representatives of the top six or so computer companies. Only two showed up. Roger Rose, VP for world-wide sales and marketing, Network and Systems Integration Services, Digital Equipment Corp. (DEC), was the first to respond. A close second was Mike Gallane, world-wide marketing manager, Hewlett-Packard's Professional Services Organization (PSO).

Here are their comments, with a little help from the "clean up the hype" software we just installed:

MSI: Why do you have an SI group?

Rose: New demands are being put on many IT (information technology) organizations to deliver mission-critical services, accommodate high usage and bandwidth applications, and to provide seamless connectivity and access to a variety of remote users and sites. However, successful networked computing requires a multi-discipline approach beyond the reach of many IT organizations. Matching the infrastructure to client/server applications demands integrating existing systems and messaging environments with newer technologies -- and making sure everything works. That's a tall order.

Typically, systems integration projects are complex, non-standard and require a high level of design and customization. They are almost always multi-vendor, multi-discipline -- and often multi-geographic -- in scope. They extend over a significant period of time and need a prime contractor who will oversee the entire solution. That means the choice of a systems integrator is critical. It should be someone who understands the customer's business, has technical expertise with industry and applications know-how, has successfully implemented similar projects, faced similar challenges, and will share the risks, take ownership and commit the necessary resources to deliver the solution.

Digital has been delivering successful systems integration for nearly 20 years, internally to enhance its own operations and externally to assist thousands of customers around the world. DEC can provide the expertise to handle the complexities involved in merging of systems, applications and networks into a reliable, flexible and efficient computing environment.

Gallane: Hewlett-Packard's Professional Services Organization provides systems integration, technology consulting, project management, education and training services that add value to HP's product offerings. HP has moved from "box selling" to solution selling; providing expertise at the solution level brings more value to HP customers. As a "computer-based SI organization," HP can offer a greater depth of technology expertise -- in both UNIX and Windows NT -- with a broader understanding of technology architectures and technology potentials, and expertise in engineering process management.

MSI: What would be the profile of a company using your SI services?

Gallane: HP's business units are built around vertical market sectors -- financial services, aerospace/defense, automotive, electronics, etc. -- and HP Professional Services are provided directly to mid- to large-size companies implementing enterprise-scale technology solutions. In the small- to mid-size segments, services are typically delivered through HP Certified Resellers and support partners. That varies by country.

Rose: Digital's Network and Systems Integration organization is focused on medium to large organizations in the financial, communications, manufacturing and public sectors. Our customers are located around the globe and have diverse requirements.

MSI: What differentiates your SI operation from a software-oriented SI group or a Big Six consultancy?

Rose: Digital's SI group is focused on providing networks, systems and applications services in those areas that are of greatest importance to our clientele. For example, an aging messaging system might need to be replaced while workgroup computing might require a new or improved network. Massive amounts of data and the technology to manipulate it across departments are giving rise to data warehousing while standalone PCs are giving way to networked computing solutions such as SAP and Baan.

Manufacturing operations require technology infrastructures that ensure streamlined management of enterprise-wide information to improve product quality and reduce time to market. Digital provides planning, designing and implementing services to deal with these changes and our expertise in manufacturing middleware technology is second to none. We offer a scope of systems integration resources unmatched by most competitors including a global network of more than 6,000 technical experts, more than half located outside the U.S. We have more than a dozen years of mainframe migration experience and know the information technology consequences of business process reengineering.

Gallane: HP's core competencies cannot be matched, particularly when dealing with larger, more complex infrastructures. For example, in a fully-integrated, multi-site distributed client/server infrastructure, there are very complex challenges for architecture, performance, management, security and integration. HP's expertise extends beyond the technologies and tools to include effectively-aligned process and IT organizational models, leveraged from HP's internal IT infrastructure -- such as the world's largest intranet -- and HP's outsourcing business.

I should note that HP also has a very strong partnering focus, working with the Big Six consultants in areas such as business process reengineering or the management of change. HP also works with applications providers to create supporting infrastructures that increase the success of the implementation and assure customer satisfaction.

MSI: Since you both seem to partner with all the major software applications companies, explain how your relationships work. Who introduces whom to the customer?

Gallane: Typically, HP will not make recommendations to customers regarding which software package to adopt. HP focuses on the IT infrastructure supporting various applications by optimizing the architecture for networking and systems management, and by designing processes for ongoing analysis of performance and security.

The process by which HP becomes involved as an implementation partner varies. Often the customer has an existing relationship with HP and wants us to lead the project as prime contractor. In other cases, the SI or applications provider will bring HP PSO in as their architecture or training partner for HP environments.

Rose: Digital has established relationships with a select number of partners who are certified under a stringent set of standards to help meet the needs of our customers. For example, MCI has been one of our largest customers for several years. Now, MCI will deliver to their customers, intranets based on Alpha systems, services and telecom provisioning.

Because any sophisticated network today is multi-vendor, Digital has significant relationships with key suppliers. We link our networking services and support to Cisco's products to provide a world-wide total solution for LANs, WANs and internetworks, for example. And of course we work with Digital's own hubs, routers and networking products.

We are also closely aligned with several Big Six firms. Andersen Consulting may take the lead on a project that requires their business process consulting expertise. Andersen then calls in Digital because of our recognized strengths and global reach.

MSI: Finally, what's coming in the hardware SI business?

Rose: Companies across all industries are see an enormous business potential in the Internet. Whether companies want to integrate their supply chain, expand sales or closely track and respond to customer needs, the Internet/intranet is exploding with possibilities. Companies also want to be able to do basic information sharing in better ways, like e-mail, file transfers and news groups. However, many organizations don't have the expertise or the IT architecture in place to fully exploit these new computing paradigms.

On both enterprise and departmental levels, companies need help in building or rebuilding their computing infrastructure to support the new demands placed by the intranet concept. They need help establishing information management systems that help them create, index and search vast amounts of information and perhaps most important, they need help integrating their legacy applications into their enterprise-wide intranets.

Gallane: In general, HP's Professional Services Organization will play an increasingly critical value-added role in providing services around the implementation of complex IT infrastructures. This will be particularly true with businesses that use IT as an aspect of their competitive advantage. It may be a critical success factor for HP's overall computer business as customers look to their IT vendors more for true business value.

HP will continue to have a focus on Internet and intranet solutions. PSO will continue to focus on being an "enabler" for partners and resellers as markets expand and new markets emerge. Suppliers that have historically been box-centric and those that have not balanced their activities with partners will face tough challenges in the future.

There you have it. An "inside" briefing on what DEC and HP see as their roles in the wonderful world of SI. Maybe once the other computer companies see this in print, they'll open up for us, too. Then again, maybe they are all too busy being systems integrators.