Baseline200911 DL

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Client: Microsoft
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1. The quanTifiable goalsand schedule for achieving themthat
a company establishes when it undertakes an information technology
initiative. 2. THe sTanDaRD or expected leVel of PeRfoRManCe
associated with a given TeCHnology initiative.
baseli ne | noVeMbeR 2009 | i ssue 100
BASELI NEONLI NE
WWW. B A S E L I N E MA G . C OM
mINdINg yOur mOBILE ASSEtS
theres no sense bemoaning the proliferation of mobile
devices in the enterprise. that genie escaped years ago.
now its up to it executives to manage the myriad mobile
devices used by employees, develop coherent usage
policies, and deploy security technologies and practices
to protect corporate assets.
20 | iT sTRaTegy
StrAtEgy IS NOt ENOugh
if your it strategy is underperforming when it comes to
delivering business value, try focusing on capabilities that can
help you execute that strategy. you need to understand the
capabilities you already have and the ones you still need.
CoVeR sToRy
MobiliTy 22|
28 | VeRTiCal View
NONprOfIt OrgANIzAtIONS
tEchNOLOgy hELpS SAvE thE wOrLd
the boys & Girls Clubs of america, the salvation army and
the World Wildlife Fund must deal with many of the same
technology challenges facing for-profit enterprises, but
they dont have the same resources available to them. they
meet these challenges by making the same equipment
serve double-duty and by using technology to cut costs.
32 | TeCHknow
whAtS thE BESt ApprOAch tO
BuSINESS cONtINuIty?
there are a lot of steps involved in ensuring business continuity,
but these four strategies provide a good starting point. Read
how other companies have used these strategies successfully.
BL_0911_TOC_Edit_v2.indd 3 10/22/09 4:14:29 PM
9 | WORKBOOK
CREATING PARTNER PROCESSES
THAT ENABLE AGILITY
Process improvement and innovation initiatives must be
able to respond dynamically to rapid change and must
span a companys business network.
10 | GAMEPLAN
10 | DEVELOPING MANAGERS
FOR TEAM-DRIVEN SUCCESS
Managers need to learn how to correct any behaviors that
hinder leadership and obstruct or alienate employees.
11 | CLEARING AWAY INFRASTRUCTURE MUCK
Turning to a cloud solution eliminates the need to manage
most, if not all, of the infrastructure maintenance.
14 | PREPARING FOR HURRICANE ICANN
A storm of new domain names is brewing at ICANN, and
trademark owners need to keep a close eye on this situation.
15 | DEVELOPING STRONG WORK RELATIONSHIPS
Here are three guidelines for bridging the gap that often
separates departments and their managers.
16 | JOB SITE
CORPORATE PORTAL
THE VERDICT IS IN
Thanks to the law firms intranet, attorneys at Sonnenschein
Nath & Rosenthal get 24/7 access to client information.
18 | JOB SITE
FORECASTING AND FINANCIAL MANAGEMENT
FINDING A CURE FOR FORECASTING PROBLEMS
Integrating its forecasts with its budgeting process enables
Grandi Salumifici Italiani to produce more accurate sales forecasts.
34 | OUT OF SCOPE
Stories cover digital ants, a better way to find your body mass
index and an island that wants to be a data center hub.
OPINION
7 | STARTING POINT
EILEEN FERETIC: Taking Up the Gauntlet
Business and technology managers cant give up, despite
mounting challenges and shrinking resources.
8 | PERSPECTIVES
SHAWN BANERJI: The CIO Challenge
Finding the correct balance of innovation and cost reduction is
at the center of the CIOs dilemma.
2 8 E . 2 8 T H S T . , N E W Y O R K , N Y , 1 0 0 1 6
W W W . B A S E L I N E M A G . C O M
E DI T ORI AL
Eileen Feretic, Editor | 212.503.5625
eileen.feretic@ziffdavisenterprise.com
Stephen Veith, Vice President/Group Publisher | 212.503.5742
stephen.veith@ziffdavisenterprise.com
Edward Cone, Online Managing Editor | 336.378.2516
ed.cone@ziffdavisenterprise.com
Rick Dagley, Copy Chief
rick.dagley@ziffdavisenterprise.com
David Strom, Technology Writer
david@strom.com
Sam Greengard, Contributing Writer
sam@greengard.com
Steve Raia, Creative Director
steve.raia@ziffdavisenterprise.com
Michael Wirtz, Production Designer
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Contributing Writers
Shawn Banerji, Richard Brennan, Jonathon Hance, Andy Jurczyk,
William Moskal, Kerry Paterson, Chuck Phillips, Armentano Raco,
Constance Gall Rhebergen, Jeffrey Whittle, Nick Wreden, Jay Yates
Z I F F DAVI S E NT E RP RI S E CORP ORAT E
Steve Weitzner, Chief Executive Officer
Michael Caruso, Chief Financial Officer/General Manager
Matthew Sweeney, President, Sales and Marketing
Dave Colford, Senior Vice President Sales
Carine Roman, Senior Vice President/
Finance & Online Operations
Peter Westerman, Senior Vice President/Audience Marketing
Josh Heitsenrether, Senior Vice President/
Integrated Marketing & Client Services
Jack Margo, Senior Vice President/Internet Operations
Stephen Veith, Vice President/Group Publisher
Eric Lundquist, Vice President/Editorial and Strategic Content
Thomas Matthews, Vice President, IT Services
Stephen Wellman, Director, Community and Content
Kelsey Voss, Circulation Director
Dorrett McDonald, Circulation Manager
Guy Currier, Research Director
Deirdre Kelly, Manager, Human Resources
BL_0911_TOC_Edit_v2.indd 4 10/22/09 4:14:35 PM
2009 Fujitsu America, Inc. All rights reserved. Fujitsu, the Fujitsu logo and ETERNUS are trademarks or registered trademarks of Fujitsu Limited in the United
States and other countries. Intel, the Intel logo, Xeon and Xeon Inside are trademarks of Intel Corporation in the United States and other countries. All other trade-
marks are the property of their respective owners.
See how to give business continuity
a boost at: www.fujitsudailyfuel.com
A sales force that never quits needs
enterprise storage that never quits.
From downloading the latest sales forecasts to collaborating with
his team on a seven-gure proposal, Thomas depends on having
the latest data at his ngertips 24/7. Robust, reliable Fujitsu
ETERNUS
storage systems with Intel
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processors deliver
the total business continuity solution he demands, including multi-
vendor systems management to eliminate complexity issues. And
the fact that its affordable? Thats the cream in his Italian Roast.
Name: Thomas Montoya
Drink: Aged Sumatra
with lots of
Italian Roast
Job: Heads a sales
force of 52 people
09FU326.2_Baseline_100609.indd 1 10/6/09 4:42:53 PM DummyPagesForAds.indd 4 10/22/09 4:55:12 PM
WWW. B A S E L I NE MA G . C OM
2 8 E . 2 8 T H S T . , N E W Y O R K , N Y , 1 0 0 1 6
W W W . B A S E L I N E M A G . C O M
AD S AL E S
Matthew Sweeney, President, Sales and Marketing | 212.503.5744
Dave Colford, Senior Vice President, Sales | 212.503.5621
SALES EAST
Peggy Schecter, Vice President, Eastern Regional Manager | 212.503.5639
Frank Bilich, Vice President, Global Accounts | 212.503.5634
Kelli Turtz, Regional Account Director | 212.503.5635
Dana Bulkenstein, Regional Account Manager | 212.503.5678
Heather ODea, Account Services Manager | 212.503.5791
Jenny Ruggieri, Account Executive, Global Accounts | 954-577-4311 ext 08
Christopher Asher, Account Executive | 212.503.5651
Florina Belorusets, Account Coordinator | 212.503.5746
Whitney Tavis, Account Coordinator | 212-503-5624
TEXAS
Thomas Rousseau, Senior Vice President, Strategic Accounts | 512.344.9448
SALES WEST
Lee Sellers, Vice President, Western Regional Manager | 415.547.8476
Mark Glasner, Executive Account Director | 415.547.8313
Sandra Gibson, Strategic Account Director | 415.547.8844
Barbara Stapakis, Account Executive | 415.547.8453
Rachel Gordon, Account Executive | 415.547.8452
Heather ONeill, Account Coordinator | 415.547.8451
Maria Plummer, Account Coordinator | 415.547.8317
Baseline (ISSN 1541 3004) is published monthly, except for combined issue
Jan./Feb. and July/Aug., by Ziff Davis Enterprise. 28 E. 28th St., New York, NY,
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ONLINE
FACEBOOK CAN BE DANGEROUS
Posting too much information on social networking sites can be
hazardous to your employment,
reports contributing writer Ericka
Chickowski. While many younger
workers think nothing of sharing
photos of that wild weekend
in Cabo, hiring managers may
question their judgmentand
make decisions based on that
information.
go.baselinemag.com/Facebook
SOUTHWEST UPGRADES
CUSTOMER SERVICE
When is a robocall from
a big company welcome?
When it saves you time
and hassles. Southwest
Airlines is upgrading
its customer service by
using automated calling
software to alert passen-
gers about delays and schedule changes, says writer David Carr
in this online exclusive.
go.baselinemag.com/Southwest
MOST POPULAR ONLINE
STORIES IN OCTOBER
1. Oversharing on Social Nets Sinks Job Prospects
2. IT Jobs at Risk
3. Budgeting for the New Austerity
4. Staffing Projections for Q3 2009
5. Merging Wells-Fargo and Wachovia
6. Southwest Upgrades Customer Service
7. Are Recruiters Worth It?
8. Business Intelligence for All
9. Truths About Project Planning
10. Preparing for Pandemic
FEATURED THIS MONTH
BL_0911_TOCWeb_Ad_v2.indd 6 10/22/09 4:16:28 PM
Starting Point
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WWW. Baseli nemaG. Com
Business and iT managers canT give up, despiTe
mounTing challenges and shrinking resources.
By EilEEn FErEtic
A different set of challenges face nonprofit
organizations: They have the same needs and
issues as for-profit enterprises, but they have
fewer resources with which to handle them.
Despite this disadvantage, the Boys & Girls
Clubs of America, the Salvation Army and
the World Wildlife Fund are determined to
maximize their use of technology to support
their mission. (See Technology Helps Save
the World on page 28.)
In our Job Site stories, two very different
enterprises deal with their challenges with the
help of technology. The law firm Sonnenschein
Nath & Rosenthal needed to
give its attorneys and support
professionals 24/7 access to
their clients information. The
solution: a portal that provides
instant access to all of the firms
intellectual property. (See The
Verdict Is In on page 16.)
At Grandi Salumifici
Italiani, a packaged meat
business in Italy, the challenge
involved the need to integrate its business forecasts with
its budgeting processes to better predict the demand for its
products. There, the answer included forecasting and finan-
cial management tools. (See Finding a Cure for Forecasting
Problems on page 18.)
Other challenges are not so straightforward. Shawn Banerji,
with executive search firm Russell Reynolds, says that infor-
mation officers are grappling with issues ranging from budget
constraints to increased regulatory scrutiny. These and related
issuessuch as the cross-industry trend of corporate restruc-
turingsconspire to place a greater burden on the CIO as a
transformational leader. (See The CIO Challenge on page 8.)
This issue can cover only a fraction of the challenges
facing business and technology managers. But Baseline will
tackle other challenges in future issues, and we want to hear
about yours. Does your enterprise plan to play it safe in 2010
by trying to save its way to success? Or will it take up the
gauntlet and make strategic investments that will generate
future growth? Please let us know: Write to us at Eileen.
Feretic@ziffdavisenterprise.com.3
eileen FereTic is The ediTor oF Baseline. share your
ThoughTs aBouT Business-Technology challenges
wiTh her aT eileen.FereTic@ZiFFdavisenTerprise.com. P
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About 10 yeArs Ago, I worked wIth
an executive who would cut you off when-
ever you said, We have a problem. No, he
would respond. We dont have a problem.
We have a challenge, and were going to
meet it head on.
Whats the difference? Well, that execu-
tive believed that a challenge demanded
action. You can ignore a problem, he said,
but you cant turn away from a challenge,
which is a throwing down of the gauntlet.
Though I initially viewed this approach as
merely corporate-speak, I eventually came
to appreciate this take-charge philosophy.
We are all facing multiple challenges in
this tough economy, which has affected virtually every
industry and region of the country. We cant turn
away from these difficulties, no matter how daunting
they are, but when challenges keeping piling up and
the resources needed to meet them keep shrinking,
its hard to maintain an optimistic, can-do attitude.
Thats why many executives have adopted a play-it-
safe policy this year, keeping costs and investments as
low as possible in an effort to ride out the storm.
Thats what makes the managers and executives featured in
this issue so remarkable. They havent given up, and the word
retreat is not in their vocabulary. The examples they set and
the advice they offer provide valuable guidance to managers and
executives faced with more challenges than they can handle.
Consider the IT and business people who are struggling
to cope with the proliferation of mobile devices in the enter-
prise. (See Minding Your Mobile Assets on page 22.) When
asked about the status of mobility in the enterprise, Sean
Ryan of IDC answered: CIOs and other IT executives face
enormous challenges. With so many devices and so much frag-
mentation in the marketplace, its difficult to develop sound
policies, procedures and practices that address all the issues.
Fortunately, a growing number of technology executives
are doing just that: establishing usage policies and dealing
with security concerns. We spent a lot of time talking to
users, and we put a control group in place to better under-
stand how they use devices, says Ken Smith of the Addison
Avenue Federal Credit Union. Based on the information it
learned, the company developed a policy document, along
with administrative and security strategies.
Enterprise mobility is clearly an area with ongoing chal-
lenges that will require business and IT managers to constantly
monitor and reevaluate their policies and procedures.
Many executives
have adopted a
play-it-safe policy
this year, keeping
costs and investments
as low as possible.
taking UP
thE gaUntlEt
BL_0911_StartPoint_v2.indd 7 10/22/09 4:10:24 PM
perspectives
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Finding the correct balance oF innovation and
cost reduction is at the center oF the cios dilemma.
By shawn Banerji
remainder of this year, information officers
anticipate improvements in 2010.
Over the first six months of 2009, the
Information Officers Practice (IOP) at
Russell Reynolds Associates conducted
numerous formal interviews and anecdotal
conversations with CIOs and their direct
reports from a range of industries. Following
are some common themes that emerged
from those conversations:
1. Within our broad network of informa-
tion officers, there is agreement that this is
the most challenging economic cycle theyve
faced in their professional
careers and the most pres-
sure they ve felt with
respect to performance and
job security.
2. Approximately half of
these executives are under a
mandate to reduce informa-
tion technology expendi-
tures, while simultaneously
increasing productivity and
operating efficiency.
3. Public company exec-
utives are directly involved in the corporate governance
process in an unprecedented fashion. This transcends
legacy events, such as Sarbanes-Oxley, to include enterprise
risk management, compliance and regulatory oversight.
4. Vendor management and strategic sourcing have
emerged as critical accountabilities within the CIO suite.
Two-thirds of the information officers that we engaged
report that a viable strategy for building effective third-
party partnerships is high on their must-do list. They say
that, for the first time, they have gained genuine board-
level visibility.
5. Most telling, the vast majority of information officers
we interviewed acknowledge that despiteand perhaps
because ofthese conditions and circumstances, they are
more willing to evaluate new career opportunities than ever
before. 3
shawn banerji is a member oF the inFormation
oFFicers and business and ProFessional services
Practices within the technology sector at russell
reynolds associates, a global executive search Firm
headquartered in new york. he recruits chieF inForma-
tion and technology oFFicers in various industries.
The markeTplace for IT leadershIp
continues to be volatile. The Forbes Global
2000 saw numerous senior-level IT seats
change hands or disappear over the first
six months of 2009.
Information officers are grappling with
issues ranging from budget constraints to
increased regulatory scrutiny. These and
related issuessuch as the cross-industry
trend of corporate restructuringscon-
spire to place a greater burden on the CIO
as a transformational leader. The change-
agent CIO role has consistently been paid
lip service in the halls of technology, but
real transformation has historically con-
stituted just a fraction of the executives day job.
Clearly, identifying the correct balance of innova-
tion and cost reduction is at the center of the CIOs
dilemma over the next 18 months. Information
officers must consistently do more with less, while
effectively partnering with line management to
drive enterprise and unit-level change at almost
unprecedented levels.
These expectations have correspondingl y
increased the visibility of the CIO role, as well as
the level of direct accountability to which the func-
tion is held. At one extreme, many CIOs have resorted to
a bunker mentality, while others use these difficulties as a
reason to build relationships that were previously hindered
by the absence of genuine incentive on the part of func-
tional leadership and line management.
A recent Gartner poll of CIO priorities suggests that
aligning technology resources with business goals is this
years top technology priority for information officers.
It may be that financial limitations encourage CIOs to
increase proximity to business partners, with a focus on
helping to shape cost-cutting measures by introducing new
and improved business processes.
Despite additional challenges resulting from the
economic downturn, a survey published by UBS in late
July indicates that IT leaders in the United States and
Europe appear less pessimistic about budget cuts than
they were only a few months ago. In the United States,
CIOs originally expecting budgets to decline by as much as
5 percent over the next year now predict cuts closer to the
1.5 percent mark.
There is a sense that while CFO scrutiny over corpo-
rate spending will continue to be necessarily high for the
information officers
must consistently do
more with less, while
effectively partnering
with line management
to drive enterprise and
unit-level change.
the ciO challenge

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9

Creating Partner Processes
That Enable Agility
BY FREDRIC FISHMAN
TO ENABLE AGILITY, PROCESS IMPROVEMENT AND INNOVATION INITIATIVES MUST BE ABLE TO RESPOND
DYNAMICALLY TO RAPID CHANGE AND MUST SPAN A COMPANYS BUSINESS NETWORK.
Technology-based initiatives have long enabled business organi-
zations to coordinate activities with their business partners. For
instance, many companies share their forecasts and plans with
suppliers and distributors to extract networkwide efficiencies.
Other companies, such as retailers, let their suppliers decide
when and how much stock to replenish so they can pursue
greater efficiencies for all concerned.
Although efficiencies can be extracted by coordinating
activities across a business network, such processes cant
sense and respond to unforeseen events. Simply put, such
business networks improve performance in a predictable envi-
ronment, but they provide, at best, a false sense of security
under rapidly changing conditions.
Agility requires the dynamic configuration of processes
across a business network. This reality is driving a shift toward
real-time business networks, which require five key enablers:
1. Processes that support changes in customer require-
ments: Agility requires customer needs to be sensed and inter-
preted so they can be negotiated and translated into production
and distribution specifications across the business network.
2. The enablement of business network intelligence:
Business network intelligence requires disparate informa-
tion to be first aggregated and then filtered and distributed
to where its needed. Companies must set up processes
not only to share information between two partners, but
also to aggregate information across the entire busi-
ness network and create intelligence for agile behavior.
This requires effective decision-making and governance
arrangements.
3. Creating agility in business partner relationships: Agile
partnering requires companies to initiate, reconfigure or sever ties
with others as business conditions and customer requirements
change. Both core and noncore activities can be distributed across
partners, but the nature of the partnershipas well as service
level, responsiveness and cost requirementsmust shape the
processes needed to drive changes in partner relationships.
4. Allocating and coordinating dynamic business
network activity: Distributing activities for real-time
configuration of products and services requires visibility into
contracted resources and capacities, and the service levels
at which these activities need to be completed.
5. Achieving and supporting business network service
management: This requires a clear definition of outcomes
and the approaches needed to achieve them, as well as
metrics and learning for continuous improvement. Governance,
contracts and service-level agreements must directly support
the defined business outcomes.
Fredric Fishman is senior vice president of solutions and services at
BTM Corporation. BTM Corporation innovates new business models and
enhances financial performance by converging business and technology
with its products and intellectual property.
2009 BTM Corporation | info@btmcorporation.com
WWW. BASELI NEMAG. COM
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BL_0911_Workbook_v2.indd 9 10/22/09 4:19:18 PM
By William moskal
investors knoW that past per-
formance is no indication of future
returns. Unfortunately, this can also
hold true for employees as they rise
through the management ranks.
When new managers fail to recog-
nize that theyre on a path with greater
responsibilities, they may cling to tasks
at which they once excelled but that
now belong to those they lead. Managers
need to learn how to correct any behav-
iors that hinder leadership and uninten-
tionally obstruct or alienate employees.
Subversion in lieu of supervision
occurs from neglect as well as from
command and control rigidity. Delays,
dissension and turnover can result from
the following executive behaviors:
micromanagement: Decisions are
imposed, not delegated. First-line
authority is overruled openly. There
are frequent project status checks, and
brainstorming is given a low priority.
Communication gaps: Goals, strate-
gies, expectations and timelines are
not shared. E-mail copying and for-
warding is not used as an awareness
tool. Feedback is withheld.
inconsistency: There are abrupt
reversals, deadline changes and fre-
quent new priorities.
intimidation: Theres a disproportion-
ate focus on discipline, not coaching,
including public criticism and rudeness.
self-promotion: Opportunities are
not shared, and credit is hoarded.
lack of mentoring: Subordinate
managers are not groomed for
advancement. Cross-training and
interdepartmental assignments are
not encouraged, and access to upper
management is restricted.
The reassuring news is that manag-
ers who unwittingly build barriers can
also remove them. The most productive
results arise when senior management
recognizes a need for structural and cul-
tural change, rather than paying isolated
attention to midlevel managers.
Senior executives should take a
wide-angle look to identify opportuni-
ties to empower and motivate front-
line managers, while avoiding corrective
approaches that stigmatize and single
out individuals. Proven approaches for
strengthening behavior follow a three-
step process: awareness, readiness and
commitment (ARC).
The first stepawarenessinvolves
enlightening managers by challenging
assumptions and creating new under-
standings. Readinessthe second step
involves searching for better tools
and approaches. These two steps may
involve anonymous surveys, 360-degree
evaluations or focus groups. Also, train-
ing can address issues that range from
delegating and mentoring to problem-
solving and leadership styles.
Commitment is the staying power
step. It requires time and effort to indoc-
trinate managers with new behaviors and
ensure they stay committed to change.
learn it, Do it, aChieve it
Heres how conference room lessons can
turn into game-changing actions:
Old way: Inefficient delegating
plagues organizations. Its basic human
nature: Managers think they delegate,
but, typically, they simply dump tasks
and responsibilities onto subordinates.
New way: Managers delegate the top
three items on their desk and follow
up periodically to monitor progress. They
also provide support and resources to
ensure success. Multiple goals are accom-
plished: Front-line managers gain knowl-
edge, confidence and respect. Supervisors
gain time for strategic planning, pro-
cess improvements and new initiatives.
Coaching and succession are addressed.
Old way: Decisions flow from discus-
sions that have no forceful pushback or
where negativity is based on presumed
outcomes and reflexive pessimism.
New way: Rotate an official dissent
role among line managers to develop
contrarian ideas. Sanctioned opposition
can be a powerful tool for collaborative
decision making, analytic skill building
and improved outcomes.
Old way: Ineffective initiatives are
buried quietly, perhaps with overt or
covert blame. Any failure is a career ding.
New way: The word failure is rarely
or never heard. Setbacks are seen as
learning opportunities that foster prob-
lem solving.
Its easier to summarize strategies and
tactics than to transform a workplace
with robust, durable changes that sup-
port front-line managers, elevate their
impact and inspire their loyalty. With a
top-down tone and visible commitment,
those transformations can be measured
in reduced costs, increased productivity,
higher employee satisfaction scores and
improved retention. Sincerity, flexibility
and patience are vital tools for reshap-
ing an environment into one that helps
entry-level managers thrive. 3
William Moskal, with IRI Consultants in
Detroit, is an authority in team building,
leadership development and coaching.
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Developing Managers
for Team-Driven Success
BL_0911_GamePlan_v3.indd 10 10/22/09 4:02:15 PM
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11
Clearing Away Infrastructure Muck
By ChuCk phillips
marketing has approaCheD you With an interesting
idea for an interactive gaming application that could go
viral in a big way and draw hundreds of thousands of visi-
torsmillions evento your Website. The research for the
game, dubbed Project X, is done, the numbers look good and
everyone is excited about its potential.
Now its time to think about the costs, specifically the
infrastructure required to launch such a campaign.
Traditionally, your best and only option has been to buy or
lease the various components of the infrastructure and con-
tract with one or more content delivery networks (CDNs)
for added performance and scalability. This approach comes
with its fair share of problems.
The first is cost. Maintaining infrastructure is a pricey,
ongoing expenditure. The second is hardware provisioning,
which most IT professionals know is a tricky game because
it forces you to walk a fine line between wasted resources and
potential downtime in the event of massive traffic spikes.
Another new, increasingly viable option is cloud comput-
ing, which allows you to convert infrastructure from a capital
expenditure into a relatively inexpensive operating expen-
diture by outsourcing the undifferentiated muck, what
Amazon CEO Jeff Bezos terms the infrastructure life cycle,
to a so-called cloud provider. By outsourcing to a cloud solu-
tion, you eliminate the need to manage most, if not all, of the
muck, thereby mitigating your operating expenditures.
ClouD manifestations
There are three primary manifestations of cloud computing:
software as a service: SaaS options are plentiful and
diverse. SaaS is usually tailored to solve specific problems
and would be a candidate for reducing operating expendi-
tures elsewhere in your operation, but our focus now is on
Project X.
platform as a service: PaaS offerings such as Googles
AppEngine or Microsofts Azure Services Platform would
be a better option for Project X. PaaS provides a comput-
ing platform without the muck. However, in order to
deploy Project X with PaaS, your developers would need
to adhere to the APIs provided. Therefore, you may want
a solution with less of a learning curve and a little more
freedom to define your technology stack.
infrastructure as a service: Arguably, IaaS providers, such
as Amazon Web Services (AWS), offer the most familiar
and least restrictive computation resources. Computation
resources are virtual, but look and feel much like those that
your developers and systems engineers are used to.
Your team is free to choose the development platform
and programming frameworks that make sense for Project
X. AWS offerings are sold as metered servicesas utilities,
basically. You pay only for the services you use, and there is
no contract, no provisioning process and no muck. You put
the heavy lifting on the shoulders of the security experts and
engineers at AWS so you can spend your money on providing
value to your users in ways that they can recognize.
Thanks to the self-serve, elastic nature of IaaS, you avoid
the tricky task of hardware provisioning. No more waste
from overplanning for traffic that didnt come. No more
downtime and disgruntled users that result from underplan-
ning. Using a metered, auto-scaling infrastructure that grows
and shrinks based on demand means that you pay only for
what you need.
Cloud computing is a business-driven technology, mean-
ing that the business is coming to IT with real problems to
solve. Capital and operating expenditures are only a couple
of the necessary business evils that cloud computing tends
to mitigate.
Cloud computing can also take some of the sting out of
unmet expectations. If your campaign doesnt meet expec-
tations and needs to be shut down, you arent stuck paying
for infrastructure that must be reconfigured for another use
or, even worse, eBay-ing it at a loss. Instead, you quietly
decommission the site.
While the concept of cloud computing isnt new, the
realization of it is. IT executives are regularly approached
with initiatives like Project X that have dynamic and costly
infrastructure requirements. Cloud-based infrastructure is
an increasingly viable alternative for themand youto
consider seriously. 3
Chuck Phillips is CTO at Digitaria, a digital marketing and tech-
nology firm based in San Diego.
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Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at www.ibm.com/legal/copytrade.shtml. International Business Machines Corporation 2009.
1
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.
Building the engines of a Smarter Planet:
Robust backup. Rapid recovery.
Reliable return on your investment.
As the engines of a smarter planet, midsize businesses are busy fueling innovation and a global economy. And
with so much information flowing across their organizations, the implications of lost data can be tremendous.
They need a dynamic infrastructure that provides smarter ways to help protect and quickly recover data when
anything goes wrong, no matter the cause. And they need a reliable, cost-effective solution. The IBM
Comprehensive
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can help protect your company from loss of data by providing automated backup
and near-instant recovery. In other words, every time you make a change, it makes a backupwhich helps to shorten
backup gaps from days to minutes. Heres how to get started:
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Protect your assets. IBM System x
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See the savings. The data protection
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Understand where you are. Know your
business risks and whats most important to
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help you see risk exposure and develop a
backup schedule.
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Recover data quickly. IBM Tivoli
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data as its created and recovers it when
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84307_06_MMT_09_23.pgs 09.22.2009 21:33 PDFX1a
Ad No.: MMT-09-23 SAP No.: IMN.IMNMM.09010.K.011
Ad Title: IBM Mid-Market - 2009 Print CDPS
To appear in: STD Sized Pubs
Bleed: 17.25w x 11.25h Trim: 15.5w x 10.5h Safety: 14.875 x 9.75 Gutter: 1/2(total)
Creative Director: Vicki Azarian Art Director: Gina Whitt Copywriter: Anne Geri
Account Exec: Lisa Wang Print Producer: Michael Piscatelli Trafc: Eric Makar
84307_06_MMT_09_23
Midsize businesses are the engines of a Smarter Planet.
The IBM Express Advantage
Concierge can connect you to the right IBM

Business Partner. Call 877-IBM-ACCESS or visit ibm.com/engines/data2
1
Actual savings and costs will vary depending on individual customer congurations and environment. IBM Global Financing offerings are provided through IBM Credit LLC in the United States and other IBM subsidiaries and divisions
worldwide to qualied commercial and government customers. Rates are based on a customers credit rating, nancing terms, offering type, equipment type and options, and may vary by country. Other restrictions may apply. Rates and
offerings are subject to change, extension or withdrawal without notice. IBM, the IBM logo, ibm.com, Smarter Planet and the planet icon are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide.
Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at www.ibm.com/legal/copytrade.shtml. International Business Machines Corporation 2009.
1
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.
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84307_06_MMT_09_23.pgs 09.22.2009 21:33 PDFX1a
a storm of neW Domain names
is brewing at the Internet Corporation
for Assigned Names and Numbers with
projected landfall as early as the first
quarter of 2010. If ICANN imple-
ments its proposed domain name archi-
tecture, hundreds of new generic top-
level domain names (gTLDs) will flood
the marketplace. Like homeowners pre-
paring for a hurricane, trademark own-
ers should track the storm, board up
trademarks, create a disaster supply kit
and prepare to clean up any damage.
Track the storm. Currently, there
are 21 active gTLDs (including .com,
.net, .org and .gov) that identify Internet
space the way zIP codes identify real
space. Like street addresses, lower-level
domain names (such as google.com) can
pinpoint a specific cyberspace loca-
tion within a gTLD. Under the pro-
posed initiative, however, new gTLDs
may include brand-specific domain
extensions such as .mycompanyname,
geographic-centric domain names such
as .texas and generic domain extensions
such as .software.
Since the previous expansions of
new gTLDs, Web-based communities,
hosted services and Web applications
(i.e., Web 2.0) have transformed how
individuals and organizations access
and share information. Many Web 2.0
communities, for example, now offer
membership to businesses and provide
personalized community Web addresses
(such as community.com/companyname)
so that members can promote their
community presence.
To develop an effective storm plan,
brand owners should follow the new
gTLD proposals, monitor the category
level of the brewing storm, and under-
stand the potential impact to their busi-
nesses and trademarks.
Board-up trademarks. ICANN is
currently seeking comments on vari-
ous trademark protection measures
to help brand owners board up their
windows. All trademark holders should
immediately seek registration for any
valuable unregistered trademarks, both
domestically (with the U.S. Trademark
Office) and internationally.
Then, all registered trademarks
previously registered and recently
obtainedshould be filed with a
proposed Trademark Clearinghouse,
which, if adopted, will provide a data-
base of validated trademarks utilized
by new gTLD registries to implement
either of the following:
a Trademark Watch service to
notify trademark owners of any new
domain name registrations matching
their trademarks and to notify regis-
trants that matching trademark regis-
trations exist; or
a Sunrise Period during which
trademark owners could register
domain names matching their trade-
marks prior to the general registration
on a new gTLD.
Before the ICANN storm hits,
brand owners should join Web 2.0 com-
munities, secure brand-related domain
names and register their trademarks.
Create a disaster supply kit. To
weather a storm, its best to stock up on
supplieswhether batteries or gTLDs
before they become scarce, and hence
more valuable. Currently, the .com space
is perceived to be scarce. In the first half
of this year, seven .com domain names
were purchased for sums of more than
$1 million each. In contrast, the .biz
space is not scarce. Of the 109 million
domain names registered under the top-
five most popular gTLDs, only 2 million
(1.8 percent) use the .biz gTLD.
Regardless of the ultimate suc-
cess of new gTLDs, brand owners
should stock up on any suitable new
gTLD for an initial one-year term.
For example, an Internet jeweler
might register mycompany.jewelry,
as well as mycompany.community.
Brand owners should direct these
new gTLDs to appropriate sections of
their Website and use standard traffic-
monitoring tools to determine whether
to renew the initial registrations. Given
the typically low cost to register and the
potentially high value associated with
certain gTLDs, a bundle of registrations
for a limited term are like spare batteries
cheap yet possibly valuable.
Prepare to clean up any damage.
Various dispute-resolution policies are
available to help trademark holders fend
off cyber-squatters. These include the
proposed Uniform Rapid Suspension
System (under which a domain name can
be frozen for the life of the registration,
only to resolve to a specific error page);
ICANNs existing Uniform Domain-
Name Dispute-Resolution Policy (under
which a domain name registration can
be canceled, transferred or otherwise
changed); and a lawsuit alleging cyber-
squatting, trademark infringement or
other causes of action (under which vari-
ous types of damages may be sought).
Although .com domain names may
retain their value for years to comein
which case this storm may end up be-
ing only a tropical depressionbrand
owners would still be wise to prepare
for Hurricane ICANN. 3
The authors are members of the Intellectual
Property practice group in the Houston office
of the international law firm Bracewell &
Giuliani LLP. Jeffrey S. Whittle is a partner
and head of the firms Intellectual Property
practice group, Constance Gall Rhebergen is
also a partner, and Jonathon K. Hance and
Jay Yates are associates.
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Preparing for Hurricane ICAnn
By Jeffrey s. Whittle, ConstanCe gall rheBergen, Jonathon k. hanCe anD Jay yates
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in toDays high-paCeD, highly interDepenDent WorlD,
we face an interesting challenge: How do you talk about
important topics with other managers whose specialty,
agenda and physical location make it difficult to speak your
mind freely and clearly?
Too often, distance and conflicting interests wreak havoc
on candid dialogue and teamwork. As a result, peer managers
end up competing for scarce resources rather than working
together to contribute to the bottom line. Here are three
tips for bridging the gap that often separates departments
and their managers:
1. fight your battles in private. Gossip is perhaps the
No. 1 relationship killer among peers. When people disagree
with one another, they may bad-mouth their colleague to
others. Thats especially easy to do when your peers office
is on a different flooror in a different buildingand his or
her direct reports are nowhere within earshot.
This kind of behavior is disloyal, and it also harms the
relationship. The more you gossip about your peers, the less
likely youll be to ever have an honest relationship.
So, if you have a bone to pick, talk to your colleague in
private. Ask for a brief meeting and explain that you want to
deal with a problem before it spins out of control. Discuss
your concerns clearly but tentatively, and then ask your peer
for his or her view on the matter. If you dont feel comfort-
able doing that, then keep your gripes to yourself.
Lesson: If you want better relationships, never air your dirty
laundry in public.
2. initiate opportunities to relate. Complex topics
deserve real-time, two-way communication. If you cant meet
face to face with your peer, then talk on the phone. Dont let
the ease of sending e-mails replace genuine dialogue.
Most importantly, dont sit back and wait for distant
colleagues to come to you. Take the initiative. Ask for time
to discuss issues in person. Then, get out of your office and
go to their location. If the topic is likely to take more than
several minutes, suggest a chat over lunch. That way, you get
face time and can get your peers input without draining their
work time.
Lesson: If you want better relationships, seek face time with your
colleagues.
3. Become a master of crucial conversations. Many
people believe they have to make a choice when discussing a
problem with a peer manager: They can either be blunt and
speak the truththus putting their relationship at riskor
they can avoid ruffling the other persons feathers by never
sharing their honest opinion.
Many people dont realize that when the stakes are high,
they can be both honest and respectfuleven though opin-
ions may differ and emotions run strong. Its in these pivotal,
crucial conversations that relationships are either damaged
or preserved.
Valued leaders are quick to speak their minds, but when
they do so, theyre always respectful. When they disagree,
they share their honest views, while taking care to use tenta-
tive language. Here are a few tips to remember when you find
yourself in a crucial conversation with a peer manager:
listen for hesitance. Some individuals may be reluctant to
honestly express their differing views. A peers minor pause
or faint praise for an idea should sound an alarm that indi-
cates he or she doesnt agree but isnt speaking up.
Choose tentative language. Express your views firmly,
but soften the blow of excessive advocacy by employing
a curious tone and tentative language. Avoid the tempta-
tion to oversell, which will shut down others opposing
views or opinions. Instead, present your ideas as ideas, not
as demands.
invite differing views. Allow your peers to disagree
with you or offer opposing opinions by playing devils
advocate. After you express your views, make it safe for
others to honestly express their opposing views by invit-
ing different opinions. Say, What might I have missed
here? or What do we need to do differently to make
this work for you?
Lesson: If you want better relationships, learn to listen and then
speak respectfully when conversations become crucial. 3
Kerry Patterson is the co-author of three best-sellers: Crucial
Conversations, Crucial Confrontations and Influencer. He is
also a speaker and consultant, and co-founder of VitalSmarts, which
focuses on corporate training and organizational performance.
Please send your questions and comments
on any of these GamePlan articles to
editors@baselinemag.com.
Developing Strong Work
Relationships
By kerry patterson
In 2007, when Sonnenschein Nath & Rosenthal launched what it now calls the Portal, the firm had to ensure that its attorneys had
continuous access to all of its information, even in the event of problems with power, servers, databases or severe weather. The
Portal, the companys intranet, provides access to all its intellectual property and supports extranet communications with clients.
All legal documents, financial reports and human resources paperworkliterally everything needed by the attorneys and their
support staff to practice law and run day-to-day operationsare accessed there. Sonnenschein CIO Andy Jurczyk led the team
that launched the project and ensured that continuous access was provided to this business-critical application.
THANKS TO THE COMPANYS INTRANET, THE ATTORNEYS AT
SONNENSCHEIN NATH & ROSENTHAL GET 24/7 AVAILABILITY TO ALL
THE INFORMATION THEY NEED TO SATISFY THEIR CLIENTS AND DO
THEIR JOBS EFFECTIVELY. By Andy Jurczyk
JOB SITE: CORPORATE PORTAL
16
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JOB SITE SUMMARY
W
ITH MORE THAN 14 OFFICES IN THE UNITED
States anu Europe anu more than areas oI
expertise, the law Iirm oI Sonnenschein ath &
Rosenthal LLP serves the legal anu public-interest neeus oI
some oI the worlu's best known anu most aumireu corpo-
rations, nonproIits anu inuiviuuals. 1he company, which is
heauquartereu in Chicago, employs approximately attor-
neys anu support proIessionals.
ot surprisingly, given the uemanuing nature oI our busi-
ness, Sonnenschein attorneys are generally on call / to
proviue services to their clients. \ithout access to what we
call the Portal, business comes to a halt. 1hat's why we hau
to implement a solution that woulu ensure continuous access
to this business-critical application.
Prior to the Portal, we relieu on core business systems
with a homegrown intranet to access the vital uocuments,
intelligence anu communications crucial Ior our business
operations. 1his methou requireu us to use an array oI uispa-
rate programs, each with a uiIIerent user interIace anu cor-
responuing training requirements.
BL_0911_JobSite_SNR_v3.indd 16 10/22/09 4:05:04 PM
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17
1his wasn't scalable Irom a user perspective, anu
although these systems were backeu up, there was still the
risk oI very uisruptive uowntime causeu by external Iac-
tors, incluuing haruware Iailures or uisasters. \e neeueu to
ensure continuous access to all our critical systems, even iI a
planneu or unplanneu outage was aIIecting the I1 servers.
Sonnenschein is committeu to making technology
investments that improve prouuctivity anu client com-
munications anu support growth. \e recognizeu that our
home-grown intranet was a roaublock, so
we embarkeu on a project to implement
a new system. \e neeueu a completely
new I1 mouel that woulu aggregate uata,
stanuaruize the interIace, automate com-
plex workIlows, anu proviue continuous
anu reliable access regaruless oI time or
location.
UNINTERRUPTED ACCESS
One oI the imperatives in the project
was proviuing our attorneys with the
ability to access legal uocuments anytime,
anywhere-even Irom an Apple iPhone
through a secure VP.
1o maximize the service we proviue our
clients, anu to increase prouuctivity anu
competitiveness, we createu the Portal
using MicrosoIt SharePoint. 1he Portal
also hosts the extranet, which is the attorneys' communi-
cation hot line to live anu historical client uiscussions. \e
selecteu SharePoint because using the technology was just
as easy as searching on the \eb, anu it woulu not require
any training because it was similar to MicrosoIt OIIice.
1o make this application even easier to use, we scrappeu
our existing user interIaces anu createu one interIace across
all applications. 1his woulu help streamline I1 operations
while cutting uown on user training.
One oI the most important requirements Ior the Portal
was to ensure we coulu proviue / availability to our attor-
neys. 1his meant that the Portal neeueu to be completely
isolateu Irom outages aIIecting I1, whether planneu or
unplanneu. It was crucial that it be resilient anu reliable.
1he manuate Irom the top is that any amount oI uown-
time is simply unacceptable. \e neeueu a proven solution
to ensure consistent uptime at our uata centers in Chicago
anu Inuiana, both oI which are hot, which means they
are running prouuction systems. Both oI these Iacilities
simultaneously ueliver access to mission-critical applica-
tion services anu are subject to routine maintenance. In an
emergency, such as a tornauo or power outage, one uata
center neeus to be able to seamlessly host the entire busi-
ness so the staII can have continuous access to business-
critical inIormation.
HIGH AVAILABILITY
1o protect the Portal Irom uowntime, we neeueu a solu-
tion that proviueu high-availability anu uisaster recovery.
My team anu I conuucteu an extensive review oI several
prouucts, but we Iounu that most were incapable oI Iully
protecting our SharePoint environment because they were
unable to replicate its inuexing system.
\e chose everIail soItware because it is a resilient anu
reliable high-availability solution that coulu guarantee the
Portal's seamless integrity. Auuitionally, we Iounu that the
prouuct got great reviews Irom some other companies that
were using it Ior SharePoint.
\e selecteu a continuous-availability solution that
proactively monitors the health oI the entire SharePoint
environment, incluuing physical server
haruware, network inIrastructure anu
operating system. II a problem shoulu
occur, our solution woulu take a variety oI
pre-emptive, corrective actions without
resorting to a Iull-system Iailover. In
extreme cases, a nonuisruptive, seam-
less Iailover to the seconuary server can
occur automatically-anu transparently
to users.
1o get a better unuerstanuing oI the
environment, we conuucteu our own
installation. Over a periou oI several weeks,
we testeu the prouuct anu completeu the
installation. Luring that time, we workeu
with the technical support team to ensure
that any issues coulu be resolveu quickly.
An important part oI the process was the
level oI support we receiveu.
1he everIail protection oI the Portal went live in
Lecember Since then, we've hau only one unplanneu
instance oI uowntime, which was causeu by a network
Iailure. 1he technology perIormeu so seamlessly that we
never knew about the Iailover. 1ouay, we regularly conuuct
switchovers Ior routine maintenance anu patch upuates-
without a glitch.
Since ueploying the Portal, we've improveu eIIiciency
anu prouuctivity, anu the ROI has been impressive. For
example, one oI our largest clients was looking to outsource
extranet Iunctions to a thiru-party venuor at a consiuerable
cost. AIter comparing the Portal's capabilities with that
oI the outsourceu solution, our client chose our Portal
Ior its auvanceu search anu selI-service Ieatures, as well as
its ease oI use.
\ith the auuition oI new attorneys anu increaseu usage
oI the Portal, it has become the key resource Ior uay-to-uay
operations, making availability an unquestionable necessity
Ior the Iirm. \ith the high-availability uisaster recovery
solution protecting this application, we are conIiuent that
the Portal is protecteu against uowntime-no matter what
the cause. 1his ensures that our legal team has continuous
access to business-critical uocuments anu customer inIor-
mation anytime, anywhere. 3
7dZo @khYpoa _i 9?E Wj Iedd[diY^[_d DWj^ Hei[dj^Wb" W bWm
\_hc^[WZgkWhj[h[Z_d9^_YW]e$
Andy Jurczyk,
CIO at Sonnenschein
Nath & Rosenthal
JOB OPENINGS: Submit your Job Site article
submissions to editors@baselinemag.com.
BL_0911_JobSite_SNR_v3.indd 17 10/22/09 4:05:05 PM
Grandi Salumifici Italiani, a packaged meat business headquartered in Modena, Italy, needed to integrate its forecasts with its
budgeting processes. In 2007, the firm created an internal task force that included IT and marketing people to define improvement
targets and key performance indicators. Based on the task forces recommendation, Armentano Raco, trade marketing manager,
chose a financial management and forecasting system. With the new system and process, forecasting is more standardized, the
staff is more focused on meeting deadlines and the margin of error has been reduced.
BY INTEGRATING ITS FORECASTS WITH ITS BUDGETING PROCESS,
GRANDI SALUMIFICI ITALIANI HAS BEEN ABLE TO PRODUCE MORE
ACCURATE, TIMELY SALES FORECASTS. By Armentano Raco
JOB SITE: FORECASTING AND FINANCIAL MANAGEMENT
18
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HEN DEALING WITH A PERISHABLE PRODUCT, ITS
absolutely critical to Iorecast uemanu accurately.
At Cranui SalumiIici Italiani, we can't aIIoru to be
wrong about projecteu uemanu because the steps neeueu to
make renowneu prouucts such as Parma or Prosciutto ham
involve sizable costs, so we must have accurate Iorecasts.
\e also neeu to integrate our Iorecasts with our buugeting
processes to operate eIIiciently.
1he packageu meat business in Europe is highly Irag-
menteu. 1astes anu preIerences vary Irom region to region,
anu Italians, in particular, appreciate Ioous prepareu using
trauitional ingreuients anu slow cooking methous.
1o continue oIIering these trauitional tastes while taking
auvantage oI the eIIiciencies oI a large company, \nibon
anu SenIter mergeu in 2000 anu became Cranui SalumiIici
Italiani (CSI). Business has grown by uouble uigits each year,
anu, in the most recent year, we prouuceu nearly JJ0,000
metric tons, or 242 million pounus, oI prouuct, which were
solu in 30 countries. \e now have J,350 prouucts, eight sales
channels, J,000 retail customers, J5 Iactories, 300 sales
agents anu 40 uirect sales representatives.
As we've grown, auuing other small manuIacturers, we
ueciueu to invest in both people anu technology. \e consiuer
technology critical to giving our managers the knowleuge they
neeu to make uecisions, since inaccurate or incomplete uata can
paralyze our uecision making anu jeoparuize our bottom line.
In 2007, we createu an internal task Iorce consisting oI
I1 anu marketing people to ueIine improvement targets anu
key perIormance inuicators. \e brought in several venuors
to show us their uemanu planning, Iorecasting anu Iinancial
CONTINUED ON PAGE 19 P
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BL_0911_JobSite_Grandi_v3.indd 18 10/22/09 4:03:44 PM
TIME TO INVEST IN
INFRASTRUCTURE
N O V E M B E R 2 0 0 9 I S S U E 0 3
TOOLS FOR BUILDING A
BETTER SOA STRATEGY
CAN THE INTERNET
LEAD TO SMARTER
HEALTH CARE?
Few would argue with the belief that we need to revitalize
our nations power infrastructure. But is now the right time to
make such a huge and complicated investment?
ST_0911_CVR_v4.indd 1 10/22/09 10:16:13 AM
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81059_03_SGP_09_23.pgs 07.23.2009 23:33 PDFX1a
Untitled-1 2 10/22/09 10:37:26 AM
Ad Title: IBM Smarter Planet - Service Management
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Bleed: 16.5w x 11h Trim: 15.25w x 10.5h Safety: 14w x 10h Gutter: .5"
81059_03_SGP_09_23
80 70 70 100 10.2 7.4 7.4 100 100 100 100 100 60 100 100 70 70 30 30 100 100 60 100 100 100 100 70 70 30 30 100 100 60 70 70 40 70 70 30 30 100 40 100 40 40 100 10 40 40 20 70 70 3.1 2.2 2.2 70 40 40 75 66 66 50 40 40 25 19 19
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product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at www.ibm.com/legal/copytrade.shtml.
Service in the age
of smart assets.
Smart assets are making it possible to spread intelligence far beyond
the four walls of the datacenter into everything from power lines
to railroad lines to assembly lines. The challenge is: how do you
choreograph these two worldsthe physical and the digitalto
provide the quality services your customers expect and the exibility
your business needs?
IBMs approach to service management can help you extend greater
visibility, control and automation through all of your companys
servicesinside and outso you can easily modify existing services
or quickly add new ones, laying the groundwork for a more dynamic
infrastructure. Were helping companies all over the world20 of the
20 top telcos, 10 of the 20 biggest utilities and 7 of the 10 largest
automotive manufacturersreach beyond the datacenter to deliver
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81059_03_SGP_09_23.pgs 07.23.2009 23:33 PDFX1a
Untitled-1 3 10/22/09 10:37:27 AM
NOVE MB E R 200 9 >> I SSU E 03
Editor in Chief
Stephen Wellman
Contributing Editors
David Greeneld
John Jainschigg
Eric Lundquist
Creative Director
Steve Raia
Graphic Designers
Walter Makarucha Jr.
Michael Wirtz
Production Manager
Michael DiCarlis
Ziff Davis Enterprise
Steve Weitzner, CEO
Kevin Neary, CFO
Matthew Sweeney,
President, Sales & Mktg.
Dave Colford, Sr. VP, Sales
Carine Roman, Sr. VP,
Finance & Online Ops
SMARTER TECHNOLOGY
Published by Ziff Davis Enterprise
28 East 28th Street
12th Floor
New York, N.Y. 10016
No material may be reproduced in any form
without the written permission of the publisher.
For information about Smarter Technology
magazine, call 212-503-5900.
A>=<A=@320G(
10
COVER STORY
Is the Smart Grid
a Dumb Idea?
by Dave Greeneld
Revitalizing our nations power grid promises huge benets:
It will eliminate blackouts and brownouts, prevent terrorist
attacks, provide real-time insight into energy costs and
help make us energy independent. So whats the problem?
Well, for one thing, it could cost up to $50 billion.
CONTENTS
8 SMARTER TECH TIDBITS
Internet apps that could help reform health care;
ve collaboration tools for any business; grid
computing goes global; ve mobile tools for
augmented reality.
21 FIVE ON SOA
SOA Consortium announces success for Phase 1
plans; SOA for Dummies hits second edition;
delivering ways to make SOA actionable; new
SOA working group goes live; IBM announces
WebSphere and PureScale DB2 upgrades.
6 EDITORS NOTE
Building Smarter Technology
Requires Investment
by Stephen Wellman
Now is the time for government and business
to invest in infrastructure that can deliver on
the promise of renewable energy and exible,
adaptable IT architectures.
22 END NOTE
The Five Next Steps in
Service-Oriented Architectures
by Eric Lundquist
CIOs and other IT executives must be prepared
to follow these ve steps if they want their SOA
systems to work effectively in the next decade.
Cover Illustration: Jon Watson
ST_0911_TOC_v3.indd 4 10/22/09 10:18:57 AM

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Can the boundaries of a business be
defined by its people instead of its walls?
On a smaller, flatter, smarter planet, we increasingly find ourselves working with people far outside the walls
of the enterprise: partners, suppliers, customers and remote employees. IBM is incorporating new tools, like
social software, wikis and presence awareness, throughout our collaboration portfolioas well as new ways
of accessing these tools through the cloud. Cloud-based solutions like LotusLive let your people work with
whomever they want, regardless of what side of the firewall theyre on. All backed by the legendary security
you expect from IBM. Now you can extend your collaboration infrastructure without the cost and complexity
of additional infrastructure. So you dont have to tear down your walls to reach beyond them.
Lets build a smarter planet. ibm.com/collaborate
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Ad Title: IBM Smarter Planet - Collaboration
EWeek, Baseline, CIO, CSO, Network World, ComputerWorld, Information Management
Size: Page Color: 4/c, Bleed
Bleed: 8.25w x 11h Trim: 7.625w x 10.5h Safety: 7w x 10h Gutter:
81204_02_SGP_09_19
81204_02_SGP_09_19.pgs 07.31.2009 08:50 PDFX1a
Untitled-1 3 10/22/09 10:38:13 AM
I
N TODAYS BUSINESS CLIMATE, MANY ECONOMISTS
and pundits have compared the current U.S. economy to
Japans in the 1990s, the infamous lost decade. Enterprise
IT in the United States has gone through something of a
lost decade of its own since the rst downturn at the end of
2000. With the exception of a few years during the middle
of this decade, most IT departments have been in cost-
cutting mode, and in the existing economic environment,
the temptation to cut even more is stronger than ever.
If we are ever going to rebuild our nations
economy, our businesses must stop cutting IT
spending. We as a nation, both corporate and
civil, must begin investing in our infrastruc-
ture. Its time for our government to invest in
our national infrastructure, and its time for
corporate America to start investing in tech-
nology again.
In this issues cover story, Smarter Technology
writer Dave Greeneld takes an in-depth look at the prom-
ise of the smart grid, a new national power grid enhanced
with network technologies, many of which were originally
designed for IP communications. A smart grid promises a
nation in which blackouts and brownouts are eliminated,
power is transmitted more efciently, and everyone from
big business to consumers benets from a more stable, reli-
able and effective national power distribution system.
The smart grid promises to make the electric car a real, vi-
able product, by allowing for power on demandand more
efcient electrical distribution to charge those vehicles.
The smart grid will require a substantial federal invest-
ment, along with close collaboration both from politicians
and key business stakeholders. If we invest in the smart grid
and execute it properly, we may at last fulll the promise of
energy independence.
A new grid also promises new products and services
in short, a new market for alternative energies. But if we
dont make this investment, the rest of our plans for a green
tech economy may not pan out.
This month, Smarter Technology also looks at service-
oriented architecture (SOA), with a set of strategic
recommendations and a selection of helpful tools and
research. While most large enterprises have deployed some
kind of SOA, many of these deployments are almost a
decade old. Businesses that hope to leverage the investment
in these systems in the next decade need to plan now to
upgrade and expand their SOA infrastructures. They also
must be able to better leverage new Web 2.0 technologies,
such as collaboration.
In many cases, the businesses that deployed SOA systems
ve or 10 years ago are completely different today from
what they were like when their systems were installed. This
often means that new business processes have been created,
but the technology that powers them has not kept up with
the innovation in processes.
IT leaders need to adapt their SOA systems to
meet the constantly changing needs of the busi-
ness processes they power. And this adaptation
often requires investments in technology, either
through upgrades of existing components or,
in some cases, replacing the entire SOA.
CIOs and other senior IT executives who
want to keep up with current trends in IT
especially the move to more personalized access to cor-
porate data for different userswill need more efcient
and robust SOAs to enable them to achieve that goal. For
example, many IT managers are being pressured to cre-
ate multiple application dashboards, each personalized for
the individual needs of different departments and even,
in some cases, of different employees within the various
departments. Any IT organization looking to create this
kind of customized, personalized access to business intelli-
gence data or CRM systems will benet from a more robust
and exible SOA.
Enterprises that are also looking to expand the selection of
mobile devices can benet from better SOA, especially as IT
managers are faced with the task of using their mobile device
management (MDM) solutions to support different kinds of
smartphones and operating systems within one network.
In short, continued IT cost-cutting will only go so far.
At some point, the nation and its businesses must upgrade
their infrastructures and place their bets on the promise of
new technologies. The time to invest is now. If we dont, I
fear we may be looking at another lost decade for enter-
prise ITand a lost decade for the nation as a whole.
Stephen Wellman is Editor in Chief of Smarter Technology and
Director of Community & Content with Ziff Davis Enterprise. You
can reach him at stephen.wellman@ziffdavisenterprise.com.
Building Smarter Technology
Requires Investment
by Stephen Wellman
ST_0911_Wellman_v1.indd 6 10/22/09 10:19:23 AM
Finding meaning in the noise.
An unprecedented amount of information flows through companies every day. But to what effect?
A recent study found that 52% of managers have no confidence in the information they rely on to do
their job. Without the right approach to business intelligence, companies struggle to turn all that
information into sound decisions. IBM business intelligence and performance management solutions
give you the smarter tools you need to access the right information, making it available to the right
people when and how they need it. Today IBM is helping over 20,000 companies spot trends, mitigate
risk and make better decisions, faster. In fact, we helped a major retail supplier achieve this by cutting
their average financial reporting time by almost 50%.
Lets build a smarter planet. ibm.com/intelligence
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82952_02_SGP_09_32_R1.pgs 08.24.2009 21:52 PDFX1a
Untitled-1 3 10/22/09 10:38:54 AM
Five Steps to
Smarter Collaboration
in Your Business
Successful collaboration begins with
... collaboration. Here are ve must-dos
before you give your CEO the keys to the
company Twitter account.
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Augmented Reality
Tools for Mobile Devices
An emerging array of platforms, tools and apps
use GPS, orientation sensors, 3-D
graphics, live video, Web ser-
vices, open APIs and engaging
user interfaces to create a new
class of augmented reality (AR)
systems for mobile devices.
Google is gung ho; Apple
is lagging (for now). Heres
who and what to watch.
http://tinyurl.com/laofwt
World Community
Grid: Brother, Can
You Spare Some
CPU Time?
The World Community Grid
painlessly harnesses unused
PC power to research the
toughest global problems.
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Can the Internet Lead
to Smarter Health Care?
Health care is poised for disruption by the
same movements that are revolutionizing
technology in other spheres: open source,
open data standards, Web services and the
notion of radical transparency.
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anymore. What makes them truly unique is the underlying softwarethe invisible threadthat infuses
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81195_03_SGP_09_26.pgs 08.19.2009 21:46 PDFX1a
Untitled-1 3 10/22/09 10:39:53 AM
Few would argue with the belief that we need to
revitalize our nations power infrastructure, but
numerous challenges complicate the deployment
of smart grids. by Dave Greeneld
Is the smart grid
ST_0911_Ft1_grid_v6.indd 10 10/22/09 10:17:13 AM
Is the smart grid
T
he reshaping of our national power
grid will provide profound benets
to consumers, but it will also bring
enormous liabilities that could equalor
even outweighthe very problems we
hope to solve.
Without question, something has to
change in the electrical grid. While decreased
economic activity has leveled off the rise in
demand in the short term, long-term fore-
casts still show signicant growth. According
to the North American Electric Reliability
Corp. (NERC), an organization of U.S. elec-
trical grid operators, transmission capacity
continues to lag behind demand and will
need to increase by more than 10 percent
over the next 10 years.
A power network utilizing the latest in
computing technologies will eliminate black-
outs and brownouts due to undercapacity
and will enable better overall reliability
through advanced monitoring and manage-
ment. Customers will become savvier in
how they use electricity by gaining real-time
insight into their energy costs.
The smart grid will also help prevent ter-
rorist attacks by building in redundancies
and self-healing capabilities. And like the
Internet, it will become the platform upon
which new types of products and services
can be built, such as using hybrid and elec-
tric cars to store energy and then sell it back
to the network.
With such profound benets, how could
anyone oppose a smart grid? Well, for one
thing, estimates say that rebuilding the grid
will cost far more than the $4.5 billion
in federal funds allocated and instead will
top off somewhere between $13 billion and
$50 billion.
Whats more, real-time pricing could
adversely impact more vulnerable segments
of society who may not be able to easily
change their power consumption habits to
accommodate continually changing prices
of energy. Theres also the increasing risk of
privacy and security breaches, given the cre-
ation of an intelligent, distributed comput-
ing network. In addition, the standards be-
ing developed for managing and running the
power grid may perpetuate the same insular
thinking that has traditionally categorized
the utility industry.
Is that a reason to do nothing? Hardly.
But organizations should limit their expecta-
tions and plan to open their checkbooks. The
electrical grid needs to evolve, as do policies
and processes, but were not done paying for
itnot by a long shot.
THE SCALE OF THE PROBLEM
According to a report by the Department of
Energy, over the past 40 years there have been
ve massive blackoutsthree of them in the
past nine years. The lack of real-time analytics
and, to a lesser extent, the slow response
times of mechanical switches have been
signicant factors in these occurrences. The
power grids have been so antiquated that, in
most cases, utilities only know about an out-
age when customers report the problem.
The risks posed by a failing grid are
enormousmuch more than just the
inconvenience of consumers losing a few
cartons of milk and some frozen food. Bil-
lions of dollars could be lost. The Northeast
blackout of 2003, for example, resulted in a
$56 billion loss.
If a blackout lasted long enough, the lack
of electricity would have dire consequences
for the survivability of the country. Without
electricity for a year, nine out of 10 people
would die from disease, exposure or star-
vation, according to Dr. William Grahamth,
Ronald Reagans former science adviser.
Though the grid can fail as a result of
over-consumption, its centralized struc-
ture also leaves it vulnerable to terrorist
attacks. And an attack on one region could
have national consequences because the
is the smart grid
80 70 70 100 10.2 7.4 7.4 100 100 100 100 100 60 100 100 70 70 30 30 100 100 60 100 100 100 100 70 70 30 30 100 100 60 70 70 40 70 70 30 30 100 40 100 40 40 100 10 40 40 20 70 70 3.1 2.2 2.2 70 40 40 75 66 66 50 40 40 25 19 19
B
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EWeek, Baseline, CIO, CSO, NetworkWorld, ComputerWorld, Information Management
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85520_01_SGP_09_27_R3
1
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at www.ibm.com/legal/copytrade.shtml. Intel, the Intel logo, Xeon and Xeon Inside are trademarks or registered trademarks of Intel Corporation in the United States and other countries. International Business Machines Corporation 2009. All rights reserved.
1
2
Thinking outside the box
depends on whats in the box.
The systemic inefciencies in many server rooms today, in terms of both energy
consumption and utilization, are becoming unsustainable. It isnt simply a question
of cost its also about maintaining day-to-day operations. A recent study found
that an estimated half of all businesses experience IT outages due to power and
cooling issues.
1
As we build out the infrastructure of a smarter planet, companies need to consider
not only how much power is under the hood of their next server purchase, but
also how much energy will be consumed to provide that power. Thats where
smarter tools like the IBM BladeCenter
HS22 come in. Its designed to give you

greater efciency at every level, from its highly efcient design and Intel
Xeon
Processor 5500 Series to its advanced management software like IBM Systems
Director that actively monitors and limits power consumption. All of which can
add up to 93% in energy savings over the previous generation of rack servers.
Learn how you can see a return on your investment in as little as three months
2
at ibm.com/hs22
Systems, software and services for a smarter planet.
85520_01_SGP_09_27_R3.pgs 10.08.2009 19:11 PDFX1a
Untitled-1 2 10/22/09 10:35:32 AM
80 70 70 100 10.2 7.4 7.4 100 100 100 100 100 60 100 100 70 70 30 30 100 100 60 100 100 100 100 70 70 30 30 100 100 60 70 70 40 70 70 30 30 100 40 100 40 40 100 10 40 40 20 70 70 3.1 2.2 2.2 70 40 40 75 66 66 50 40 40 25 19 19
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Bleed: 16.5w x 11h Trim: 15.25w x 10.5h Safety: 14 x 10 Gutter: .5 (total)
85520_01_SGP_09_27_R3
1
2
1
2
Thinking outside the box
depends on whats in the box.
The systemic inefciencies in many server rooms today, in terms of both energy
consumption and utilization, are becoming unsustainable. It isnt simply a question
of cost its also about maintaining day-to-day operations. A recent study found
that an estimated half of all businesses experience IT outages due to power and
cooling issues.
1
As we build out the infrastructure of a smarter planet, companies need to consider
not only how much power is under the hood of their next server purchase, but
also how much energy will be consumed to provide that power. Thats where
smarter tools like the IBM BladeCenter
HS22 come in. Its designed to give you

greater efciency at every level, from its highly efcient design and Intel
Xeon
Processor 5500 Series to its advanced management software like IBM Systems
Director that actively monitors and limits power consumption. All of which can
add up to 93% in energy savings over the previous generation of rack servers.
Learn how you can see a return on your investment in as little as three months
2
at ibm.com/hs22
Systems, software and services for a smarter planet.
85520_01_SGP_09_27_R3.pgs 10.08.2009 19:11 PDFX1a
Untitled-1 3 10/22/09 10:35:36 AM
At the GridWeek conference in Washington, D.C., in
September, the Department of Commerce unveiled the
90-page standards road map for developing tomor-
rows open smart grid. While generally praised as being
thorough and a good rst step, the road map may be
too narrowly focused, thinking mostly about a grid for
today and less about the shape of a grid for the future.
The road map was developed by the National Institute
of Standards and Technology (NIST) and covers seven
areas: bulk generation, transmission, distribution, markets,
operations, service provider and customer. Within each area,
actors and applications are identied, with top priority given
to standardizing the highest priority areas, such as Demand
Response, Electric Storage and Electric Transportation.
Its better than I thought it would be, said Rajit Gadh,
director of the UCLA Wireless Internet for Mobile Enter-
prise Consortium (WINMEC) after reviewing the document.
NIST has put a stake in the ground and identied that
smart grid is a system that has to be developed and built.
The road map also identies an initial set of 77 stan-
dards for the smart grid. It looks like about 40 of them
are new, says Alison Silverstein, an independent energy
consultant and former regulator. Priorities were also
identied for additional standards and revisions to ex-
isting standards. Demand Response (DR) communica-
tions, for example, are widely seen as a top priority, with
deployment of smart meters already under way. A draft
DR specication is targeted for January 2010.
Security, a hot topic for the smart grid, also got some
attention in the road map. Initial steps toward a smart grid
cyber-security strategy and a requirements document were
identied. Finally, action plans with timelines were laid out
for standards organizations to identify and ll the gaps.
The road map is the beginning of the standards pro-
cess and will evolve as comments are received. One
of the big questions will be governance. Building the
smart grid is a far bigger challenge than dening a set
of LAN standards or even creating the IP architecture.
More than a dozen standards development organiza-
tions need to be coordinated, and a lot of moving parts
have to be cheerled. The individuals involved in coordinating
those efforts, setting processes and policies, would carry
considerable inuence. In an area with as much investment
as smart grids, thats bound to draw a lot of interest.
More fundamentally, there continue to be con-
cerns that the model dened in the document is too
proscriptive and too limited to what the utilities know
well. The road map calls for systems engineering dis-
ciplines to be applied to the standards process, but
not scientic practices. It identies specic standards,
but it seems to prevent the research community from
creating new technologies that could radically improve
the smart grid.
The 40,000-foot view is that while this document is
good, timely and overall will have a very positive effect on
the eld, theres not enough discussion about innovation,
says Gadh. ZigBee, for example, is clearly singled out,
but there are hundreds of other innovations going on in
the area. Will they be excluded from the road map?
To some extent, Gadhs question should be answered
by the road maps eight-layer model (see below) developed
by the GridWise Architecture Council. At the bottom of the
model is Basic Connectivity followed by Network Interoper-
ability, Syntactic Interoperability and all the way up to Eco-
nomic/Regulatory Policy. One would expect ZigBee to fall
under basic connectivity, so alternative ZigBee approach-
es that adhere to the same upper layer API would work
effectively, but thats still conjecture at this point.
Ultimately, the Smart Grid is envisioned as a way of
enabling homes to contribute energy back to the grid.
Thats remarkably similar to peer-to-peer networks,
but the conceptual model introduced by the road map
describes a hierarchical model, according to Gadh. If we
want every rooftop to generate energy, then this docu-
ment needs more work, he says.D.G.
IS THE SMART GRID ROAD MAP OUTDATED?
8. Economic/Regulatory Policy
7. Business Objectives
6. Business Procedures
5. Business Context
4. Semantic Understanding
3. Syntactic Interoperability
2. Network Interoperability
1. Basic Connectivity
Political and economic objectives emboiled
in policy and regulation
Strategic and tactical objectives shared
between businesses
Alignmnt between operational business
processes and procedures
Awareness of the business knowledge
related to a specific interaction
Understanding of the concepts contained in
the message data structures
Understanding of data structure in messages
exchanged between systems
Mechanism to exchange messages between
multiple systems across a variety of networks
Mechanism to establish physical and logical
connections between systems
Organizational
Informational
Technical
DRIVER LAYER DESCRIPTION
Source: NIST Framework and Roadmap for Smart Grid Interoperability Standards Release 1.0 (Draft), p.20
(www.nist.gov/public_affairs/releases/smartgrid_interoperability.pdf)
interconnectedness between regions could lead to a
cascading effect that could disrupt the countrys ability
to function.
However, the electrical grid doesnt need to halt to
have a severe impact on the economy and the environ-
ment. Todays distribution network was never designed for
transporting large quantities of power over long distances.
As such, renewable energy thats prominent in one part
of the countrysuch as wind power in the Midwest
remains unavailable to other segments of the nation, such
as the Northeast.
how we GoT here
Our power problems today largely stem from how we built
the national grid in the frst place. The American power
grid wasnt a planned network in the way we might think
today of corporate networks. Much like the Internet, it was
a patchwork of networks cobbled together over the course
of a century.
Until 1996, utilities were vertically integrated entities
that supplied all facets in the power chain, selling to the
company that supplied the transmission lines and built the
power plant or relied on exchanges with other utilities. The
networks were built around generation stations located
near the energy sources needed to drive them. Radiating
out from the generating stations were high-voltage trans-
mission lines and then lower-voltage distribution lines.
Over time, the utilities joined their networks together
when they realized the potential reliability that could be
achieved through interconnection and generation-sources
diversifcation. Interconnection also enabled neighboring
power systems to transfer power locally or regionally. Yet,
the industry remained static and the networks limited.
Despite these connections, the grids were never planned
for national operation. They simply werent designed to
transmit large quantities of power over long distances, such
as from the Midwest to the Northeast.
In 1996, the Federal Energy Regulatory Commission
(FERC) took the frst step toward addressing those prob-
lems by opening the power grid to competition and elimi-
nating vertical integrated entities. The landmark Orders
888 and 889 required utilities to allow non-utilities, or
independent power producers, to access and use the utilitys
transmission network. Thus, the wholesale energy market
was born. From 1996 to 1999, wholesale power marketers
increased sales by more than sixfold.
Even so, utilities were slow to upgrade or change the
fundamentals of the transmission network. For one thing,
the costs were daunting, ranging from $50 billion to $100
billion. And a confusing assortment of government regula-
tions and deregulation policies discouraged utilities from
upgrading their networks. Regulations also capped the ROI
that utilities could realize on an investment, limiting their
ability to recoup the costs of major structural changes.
In 2004, a U.S.-Canadian task force published the re-
sults of their research into the massive blackout of 2003.
They called for reforms that effectively gave FERC greater
power to enforce the standards, increased the role of re-
gional reliability councils, and improved the data collection
and cooperation of various regional utilities. But the lack
of federal legislation for energy-related reform in 2004
meant the U.S. electricity grid continued to languish in
essentially the same condition as it was in during the time
of the 2003 blackout.
As late as 2007, pundits were sceptical that utilities
would invest in building a smart grid. Utilities are grossly
risk-averse and grossly hesitant to adopt new technology,
Alison Silverstein, an energy industry consultant and a
former regulator, said in 2007.
But that was then, and this is now. President Obamas
focus on grid modernization as a way to improve
the economy and the environment energized the once-
moribund process of grid evolution. The American
Recovery and Reinvestment Act of 2009, better known as
the Stimulus Bill, added the necessary money, allocating
$4.5 billion toward grid efforts.
The world has changed a lot in two years, and many
utilities want more rate-based assets, says Silverstein. We
have regulators who want more reliability and effciency
and public policy, and a public worried about greenhouse
gasses and global warming. Customers also want more op-
tions, more control and moderated costs.
The SmarT Grid SoluTion
Revitalizing the electrical grid encompasses a broad range
of technologies that target all facets of the infrastructure
aimed at improving the reliability, security, effciency,
environmentally friendly nature, safety and pricing of the
electrical grid.
The change instituted by the smart grid that is most ap-
parent to consumers is the installation of advanced meters
in customer premises. (See Designing Smart Meters on
page 20.) There are 2.5 billion electrical meters, and only
8 percent of them currently have any kind of automation,
says Richard Shockey, chair of the technical working group
at the SIP Forum, an initiative to promote the use of the SIP
(Session Initiation Protocol) stack.
By installing smarter meters, consumers will be able to
receive real-time or near-real-time information about their
power consumption, enabling them to know enough to
reduce their power usage in response to higher prices or
vary usage based on demand.
Research suggests that such programs should have a
signifcant impact on traffc load. A study conducted by
Freeman, Sullivan & Co. of Pacifc Gas & Electric Co.s
SmartRate tariff, one of the frst examples of peak pric-
ing, showed that an average power load was reduced by
16.6 percent between 2 p.m. and 7 p.m. for nine days dur-
ing the summer of 2008.
Over time, utilities are expected to establish demand-
response programs that curtail power usage in response to
supply or market conditions. Demand response will enable
utilities to turn off smart devices or run them on lower
power when needed.
Consumption and production of an electrical grid must
be balanced if it is to function properly. Too much produc-
tion can cause fuctuations in voltages; too little results in
brownouts and blackouts. Utilities would like the ability
to reduce demand on the electrical grid during periods
of peak consumption. Demand-response programs will
enable them to do just that. With a smart grid, utilities will
be able to send messages down to smart devices in homes
to turn off appliances or run them on lower power.
Ultimately, wireless sensors, such as the ones be-
ing developed at the UCLA Wireless Internet for Mobile
Enterprise Consortium (WINMEC), could be used in the
home or ofce to monitor environmental variables in a
building, such as temperature, humidity, motion and shock.
The system would be able to detect if one room were more
populated and then redirect energy appropriately, says Rajit
Gadh, director of WINMEC.
Advanced meters are just the most visible part of an
IT network overlay that enables utility providers to gather
information about the usage and availability of the power
grid. Smart censors within the network are expected to
enable utilities to better monitor, diagnose and respond
to power changes in the network. Through ongoing self-
assessment, the network will be able to identify issues and
then take action to address those issues.
This will be done securely in order to protect against
natural disaster and attackswhether they are physical
or launched through a computer. These devices will be
interconnected through a two-way, standards-based net-
work. The National Institute of Standards and Technology
(NIST), the group responsible for developing a plan for the
standards architecture, issued the road map as this issue
was going to print. (See Is the Smart Grid Road Map
Outdated? on page 14.)
Using simplied interconnection processes and interop-
erability standards, the grid will accommodate a diverse
range of generation and storage optionsfrom electric
cars to alternative energy plants. And not all of these energy
plants will be the usual standardized affair.
In his keynote at the GridWeek conference in Septem-
ber in Washington, D.C., U. S. Energy Secretary Steven Chu
called for easy-to-use home energy systems.
Right now, the percentage of power coming from alter-
native energy sources is still in the single digits for many
reasons, not the least of which is that alternative energy
sources arent feasibleor sometimes even possiblein all
parts of the country. When theres no wind, for example,
windmills dont generate power. Chu contends that new
long-haul transmission lines are needed to bring power
throughout the nation.
Energy storage will play an equally important role.
Since energy must be consumed when created, todays
network is designed to always operate at peak capacity.
Yet more than 25 percent of hourly loads on the distri-
bution networkand more than 10 percent of the as-
sets needed for power generationare required less than
5 percent of the year. That may not sound like much,
but it represents hundreds of billions of dollars in
investments. Using new techniques to store elec-
tricity during times of surplus will help balance the
load on the network at critical times.
Thats why its important to use the batteries in
electric automobiles. It has always been my goal
to do energy arbitrage with plug-in vehicles, Chu
said in his keynote. If you get half the cars with
50 to 60 kilowatt hours of energy storage, its an
incredible amount of energy storage ... and if youre
willing to sell half the energy storage back to the
company, much of our energy storage problems
will be taken care of.
FUNDING PROJECTS
Eager to tap into federal funding, utilities across the
country are setting up a bevy of smart grid trials.
Smart-metering projects are predominant, with
45,119,212 smart meters deployed across 38 re-
gions in the United States, according to Coincident,
which has released a beta of its online AMI/Smart
Metering visualization tool. Currently, the tool does
not cover a number of states, including New York.
It has always been my goal
to do energy arbitrage with
plug-in vehicles.
Hourly Loads as Fraction of Peak, Sorted from Highest to Lowest
Percentage of Year
L
o
a
d

F
a
c
t
o
r

(
%
)
100% 80% 60% 40% 20% 0%
0%
20%
40%
60%
80%
100%
90%
75%
5% = ~440 hrs/yr
Generation
Distribution
PEAK REDUCTION IS PARAMOUNT
By eliminating the 5 percent of the time each year when power generation and
distribution peak, the United States would save hundreds of billions of dollars.
Source: Investing in Our Energy Future, Secretary Steven Chu, U.S. Department of Energy
Secretary Steven Chu,
U.S. Department of Energy

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81189_03_SGP_09_30.pgs 08.05.2009 14:13 PDFX1a
Untitled-1 3 10/22/09 10:40:46 AM
(AMI [advanced metering interface] is the emerging speci-
fcation for tomorrows smart electrical meters capable of
responding to control and requests from utilities.)
California is the smartest of the states tracked by
Coincident, with 10,128,000 meters (79.01 percent of
all residences). Connecticut has the fewest meters planned
(3,000 meters representing .21 percent of residences),
though as a percentage, Colorado is slightly lower (3,500
meters representing .17 percent of residences).
Within Canada, Ontario has the most planned meters
and the most as a percentage in North America: 4,3262,647
meters representing 91.33 percent of residences. British
Columbia has the fewest smart meters planned, at just 80
(under .01 percent).
Oncor, a utility in Texas, has one of the more developed
smart grid implementations: It deployed about 300,000
smart meters, a number that is expected to reach 700,000
by the end of the year, says spokesperson Carol Peters. When
complete, the reach will cover about a third of the state of
Texas. As of January 2010, customers who have advanced
meters will be able to see their energy consumption on a
Web portal in 15-minute intervals.
In New York, state regulators reviewed a $385 million
plan by Consolidated Edison to deploy smart meters, sen-
sors and other devices throughout the utilitys 94,000-mile
network. Half of the funding would come from consumers,
with the other half to come from federal stimulus funds
through a Department of Energy grant. The equipment
would be used to monitor power usage and prevent poten-
tial breakdowns, like the blackouts that crippled Washing-
ton Heights in 1999 and Long Island City in 2006.
Today, Con Edison is testing the smart grid program
in a $6 million pilot program in Queens that covers
about 1,500 customers. Consumers will be outftted with
advanced meters and plugs for hybrids, and solar panels
will be installed on the roof of LaGuardia Community Col-
lege as an experiment in green energy.
STandard headacheS
For all the positive movement in smart grids, there contin-
ues to be good reasons for IT professionals to be sceptical.
Driven by investment capital and encouraged by President
Obama, the utility industry has moved quickly to develop
the necessary standards frameworks to enable product de-
velopment. This push has led to backing known protocols,
such as Zigbeea low-power protocol specialized for sen-
sor networkspotentially at the expense of newer, more
sophisticated protocols.
We have not given the academic and research com-
munity time to do some serious dialogue in the feld, says
WINMECs Gadh. If we standardized on the frst analog
cellular protocol in the early 70s, there [would have been]
no room for innovation. Then we wouldnt have had the 3G
and 4G innovation that we have now.
Whats more, theres good reason to believe that these
standards wont be fully based on Internet standards. In
Smart Grids: The Battleground of Tomorrows Internet
on www.smartertechnology.com, Erich Gunther, chairman
and CTO of EnerNex, said at the Smart Grid Summit, SIP is
not in the road map for NIST. (EnerNex is tasked by NIST
to develop the fundamental principles of interaction across
the smart grid.)
The SIP Forums Shockey retorted: What is the alterna-
tive? SIP has 10 years of development built into it. XMPP
[Extensible Messaging and Presence Protocol] could be
extended, potentially, but no other protocol set has the
development of SIP.
Why the utility industry may choose to develop its own
standards is a matter of some speculation. It could sim-
ply be that the industry as a whole is looking for the best
solution to address its specifc needs. On the other hand,
energy and telecommunication providers target the same
customers. Could such a move be a preliminary attempt at
protecting their customer base?
The worlds of telecom and utilities are on a collision
course, says Jon Arnold, co-founder of Intelligent Com-
munications Partners, organizer of the Smart Grid Summit.
Its a bit like IBM and Microsoft, where they will some-
times compete and sometimes work together. Both com-
munities are chasing the same customers; who will own
those customers is another matter.
PricinG ProblemS
The scope of demand response is unclear. Its a big question
as to whether participation should be universally manda-
tory for residential customers, says consultant Silverstein.
At frst, widespread adoption of real-time pricing and a
demand-response program may sound appealing. After all,
the greater the adoption, the greater the potential savings
for society. But one can quickly see potentially nightmarish
scenarios.
Peak pricing will occur under peak demand. For exam-
ple, its very hot and everybody has cranked up the air con-
ditioning. Consumers with no choice but to use the electri-
cal equipment will fnd their bills soar. What could day-care
centers do if prices quadrupled in the summer? And what
about the elderly, who need to keep their thermostat set
high to stay suffciently warm in the winter?
There are also the implications for business. Will orga-
nizations that run expensive equipment schedule them for
off-peak usage? At frst glance, that might sound like a good
idea, but what happens when youre talking about essen-
tial services, such as those provided in a hospital? Will we
see health care costs increase during peak times because of
increased power costs?
Data center managers also have to wonder how their
electricity costs will be impacted. With the bulk of their
electric consumption coming from the running of com-
puting equipment, theres little they can do at this point
to cut their electricity costs. Utilizing data centers in areas
with low-cost energy will continue to be important.
Silverstein argues that the issues may not be as dramatic
as that: A lot of people, equipment and businesses can
manage their electricity use by using a scalpel rather than a
hatchet. She points out that you dont have to turn off the
air conditioning for three hours on a hot day, but you could
pre-cool the room in the morning and then cycle air condi-
tioning on and off every 20 minutes in the afternoon.
For example, a hospitals energy management system
could be tuned so that when theres a big energy drain on
one system, another one would cycle off for the 30 seconds
or ve minutes of the duration of that usage.
ALTERNATIVE ENERGY
The success of alternative power and grid operations
hinges on energy storage, noted Secretary Chu in his key-
note. At the same time, the batteries needed for the kinds
of storage he envisions are years away.
The most widely touted ideausing hybrid or electric
cars to store energy and then sell it back into the net-
workisnt simple. I spoke with GM [executives], who
told me they would have to void a cars warranty if it
were being used to sell power back into the grid, says
WINMECs Gadh.
Whats more, talk about the use of renewable energies,
such as wind, may be politically correct, but the reality
is that most of the U.S. population does not live in areas
where windor another source of renewable energy
is feasible. New transmission lines are needed to bring
power from states where wind power is plentiful to other
regions. Yet theres little incentive for those states to build
out those lines.
Nor are things necessarily looking better. Last month,
the U.S. Fourth Circuit Court of Appeals ruled that states
should retain rights over whether or not to build power over
electric transmission line projects, such as the Potomac-
Appalachian Transmission Highline (PATH).
The case concerned Piedmont Environmental Council
(PEC) regarding rules set by the Federal Energy Regulatory
Commission in the implementation of the Energy Policy
Act of 2005.
The decision directly upholds a states right to reject a
transmission line project without fear of the federal gov-
ernment stepping in to overrule that states determination,
Christopher Miller, president of PEC, stated in a press re-
lease. In plain language, the utilities do not get a second
chance if the state rejects a line based upon the merits.
SECURITY AND PRIVACY
While distributed computing may have brought us the
Internet, it also ushered in a new age of security and pri-
vacy headaches. The same will hold true for the smart
gridonly worse.
Security is a huge issue with the smart grid; its on
such a scale that it makes security within IT look simple,
says Ralph Martinez, chief scientist at BAE Systems, a
defense, security and aerospace contractor.
Certainly the stakes are higher. Last April, The Wall Street
Journal reported that spies from China, Russia and other
countries had penetrated the U.S. electrical grid, leaving
behind software that could be used to disrupt the system.
The Chinese have attempted to map our infrastructure,
such as the electrical grid, a senior intelligence ofcial
told The Journal. So have the Russians.
Scaremongering? Theres precedent to think not. Ac-
cording to the Government Accountability Ofce, in 2002,
70 percent of energy and power companies experienced
some kind of severe cyber-attack to their computing or en-
WA
ID
NV
AZ
NM
UT
CO
WY
MT ND
SD
NE
KS
MN
WI
IL
TN
KY
MS
AL
FL
GA
SC
NC
VA
WV
IN
MI
OH
PA
NY
DE
MD
D.C.
NJ
CT
RI
VT
NH
ME
MA
IA
MO
AR
LA
OK
TX
OR
CA
A
B
C
D
E
F
43-114
19-42
10-18
6-9
3-5
1-2
F3 by State
Quantity of Data
Centers by State
POWER TO THE DATA
So you need a data center, but dont want to spend a lot on energy costs? Check out this map and then go to the links below.
Source: Data Center Map (www. datacentermap.com); Energy Information Administration, Table 5. U.S. Average Monthly Bill by Sector, Census Division, and State 2007
(www.eia.doe.gov/cneaf/electricity/esr/table5.html)
ergy management systems. (Read A Systems View of the
Modern Grid, a report published in 2007 by the National
Energy Technology Laboratory for the U.S. Department
of Energy.)
The big question then is, What level of cyber-secu-
rity is needed for various types of smart grid technologies,
especially AMI? asks consultant Silverstein. To what
degree is extending the two-way communications perim-
eter extending the grids vulnerability to attack?
IT pros know that answer rsthand: substantially. At the
2009 BlackHat conference, Mike Davis, a senior security
consultant at IOActive, a Seattle-based research company,
demonstrated a proof-of-concept attack in which a mal-
ware was designed to propagate from meter to meter, en-
abling attackers to remotely shut down meters.
Assuming the same meters at each home, within one
day, the malware could infect 15,000 residences. Such an
attack could open the way to service disruptions and extor-
tion attempts against the service providers.
Implicit in the concern over the security of the meters
is also how the information gathered from them will be
used. Smart meters gather detailed time-of-use information
on customers. This concern will only grow as smart devices
enter the home, providing detailed insight into the homes
power usage.
Condentiality and privacy are criticaland not just
when there are security breaches. IT vendors, such as
Google and IBM, are creating applications for managing
and using data from smart meters. With Google Power-
Meter, for example, users can add a Home Energy gadget
to their iGoogle home page and receive historical data
and forecasts for energy spending.
The Big Brotherish implications are apparent. To its
credit, Google says that with PowerMeter, No personally
identifying information will be shared between Google
and the users utility. Clearly, though, standards and con-
sistent privacy practices need to be enacted if consumers
are to be protected.
Perhaps the greatest risk that privacy and other technol-
ogy challenges pose to the development of smart grids isnt
the actual loss of information. Its the risk that utilities will
continue to be overly cautious, reverting to their age-old
practices of closed, secured systems.
At the Smart Grid Summit in September, the ques-
tion turned to open or closed AMI interfaces. Fears about
the security and privacy concerns surrounding AMI led
EnerNexs Gunther to say that he would not recommend
having an open AMI interface.
To which SIP pundit Shockey retorted, If the DoD
[Department of Defense] can use open standards, then
why not with the AMI?
Shockey isnt alone. In a recent editorial, Bob Metcalf,
the inventor of Ethernet, urged consumers to petition the
Federal Communications Commission to get involved in
creating an open smart grid.
The shift toward a truly open and effective smart grid
will hinge on people listening to experts like Shockey and
Metcalf. If we, the consumers and businesses, are going to
foot the bill for this new Internet revolution, then we might
as well reap the full benets of that investment.
DESIGNING SMART METERS
Smart electricity meters will change the way energy is con-
servedby reporting usage wirelessly, by telling consumers
how much their current usage is costing and by leveling loads
on the grid by shifting the use of nonessential appliances to
off-peak times. To realize those benetsand to make room for
innovations such as wind turbines, solar panels and recharging
electric vehicleswe must build intelligence into meters.
Enter Freescale Semiconductor. The company described a
new ColdFire microcontroller aimed at simplifying the design
of such smart meters at the Metering Europe Conference and
Exhibition in Barcelona, Spain, in October. Freescales special-
ized microcontroller for smart meters comes with dedicated
peripherals, rmware and a turnkey reference design.
There is a tremendous amount of stimulus money avail-
able to modernize the electricity grids, says John Weil, global
product and enablement manager of microcontrollers at
Freescale. To manage smart energy functions, weve designed
a special microcontroller [with] all the necessary software and
even a reference design showing how it can work together.
Whether the meter is tracking single-phase home usage
or industrial usage by three-phase motors, Freescales Cold-
Fire microcontroller (MCF51EM) has the capability and soft-
ware support to instill smarts into electricity meters. It was de-
signed to lower system, power consumption and maintenance
costs by including on-chip analog-to-digital converters, pro-
grammable delay blocks, an independent real-time clock with
calendaring functions, dual secure ash memory banks, an
automated meter-reading interface and drivers for an LCD.
The ColdFire microcontroller also benets from two
identical but completely separate rmware memories. By
allowing utility companies to download rmware without dis-
turbing the current operation of the meter, problems with
updates can be eliminated. After a download is completed
and veried, a special ColdFire instruction quickly swaps the
two rmware blocks to realize the new functionality.
Smart meters also need to interface with wireless mo-
dems (mostly in the United States) and with power-line-
based communications lines (mostly in Europe), prompting
Freescale to include a 5-volt interface to external automated
meter-reading circuits, eliminating the need for external
components.
A special edition of Freescales CodeWarrior Development
Studio for Microcontrollers includes all the development soft-
ware needed for smart meter applications, along with the real-
time operating system, the NTFS File System and the real-time
TCP/IP communication routines. R. Colin Johnson
Sure, we IT folks and developers learned about SOA
by reading edgy blogs by supergeniuses like Udi
Dahan (shout-out to Udi!) and struggling under the
weight of ponderous volumes from OReilly. But that
doesnt mean your boss, or the CEO, has to endure
the same level of paincertainly not when your point
is made more effectively by helping your business
leaders understand SOA as a way to think about
business process, rather than the collection of under-
the-hood disciplines, languages, standards and prod-
ucts that implementers need to deal with.
If the suits have a sense of humor, a good solu-
tion might be SOA for Dummies, released in April in
its second edition. To give you an idea of how fast
this stuff evolves, the rst edition came out just two
years ago. http://tinyurl.com/ygz5loj
The Standard Performance Evaluation Corp. (SPEC)
creator of benchmarks for evaluating the performance
of Web servers, Java application servers, network le
storage, high-performance graphics systems and other
demanding technologieshas formed a working group
to examine ways to measure performance for middle-
ware and database applications in an SOA framework.
Membership in the working group is open to ven-
dors, universities, R&D organizations and users of SOA
technologies. SPEC is especially interested in encourag-
ing participation by end users, which will help ensure
that the eventual scope of its benchmarks reect both
the range of products in use and the ways in which these
products are deployed. Service-oriented architectures
are being deployed within enterprises of many sectors,
including government, banking, retail and manufactur-
ing, says Andrew Spyker, an SOA runtime architect and
chair of the new group. http://tinyurl.com/ylz46wm
33
44
55
Large-scale SOA applications in supply chain manage-
ment, health care, nance, high-turnover retail and
other key areas have increasing requirements for scale.
An exploding array of network endpoints, from heavily
trafcked Web pages to RFID tags on inventory, are
originating transactions and supplying data to the big-
gest SOA systems. Going forward, theres huge need
to handle a very large number of transactions awlessly
and to organize acquired data in scalable, performance-
oriented databases for retrieval and use.
IBM announced enhancements to two key product
familiesWebSphere and DB2aimed at solving these
related problems. The WebSphere announcement
pertains to transaction-processing scale, and the DB2
announcement relates to high-performance master data
management. http://tinyurl.com/ygmlcam
The Armstrong Process Group consults in business-
process engineering, as well as training and certifying
implementers. Its the kind of organization you should
probably call after reading SOA for Dummies, but before
starting a top-down BPM re-engineering project. Among
its recent course offeringswhich can be delivered in a
traditional classroom setting or partly via computer-based
trainingis a full certication program in TOGAF-8
(The Open Group Architecture Framework) principles,
applications and development methodologies.
To get a feel for how these folks think, we recommend
you download their recent whitepaper titled Delivering
Actionable Enterprise Architecture. The paper seeks to
clarify the investments a given architecture requires, as an
aid to aligning that architecture with business strategy and
payback. http://tinyurl.com/yjm5u7k
Delivering Actionable Enterprise Architecture
The rst week of October was a big one for SOA. On Oct. 5th,
the SOA Consortium, one of the industrys oldest multivendor
associations, announced successful completion of the rst
phase of its advocacy mission: to encourage 75 percent of
large enterprises to adopt service-oriented architecture by
2010. Recent announcements from Forrester, Gartner and
other analyst rms suggest that this level of adoption has
already been attained across the Global 2000 (companies with
more than 20,000 employees).
Whats ahead? The SOA Consortium will be fusing with
the Object Management Group BPM Consortium, under the
leadership of Karen Larkowski, currently OMG/BPM program
director, and dening the second phase of its advocacy in
terms of BPMs Business Ecology initiative. This initiative is
focused on erasing the constraining lines between business
and information technology so that IT becomes a ubiquitous,
integral and vital asset to the company. ... This sounds like a
very good idea. http://tinyurl.com/2dsnmq
SPEC Launches SOA Working Group for Benchmark Denition
IBM WebSphere Enhancements and PureScale DB2 Tackle SOA at Scale
SOA for Dummies, v2.0
SOA Consortium Announces Phase 1 Success
ST_0911_FiveOn_SOA_v6.indd 21 10/22/09 10:16:44 AM
T
HE TERM SERVICE-ORIENTED ARCHITECTURE
should win a medal for having survived the largest
acronym barrage in technology history. No sooner was SOA
able to shrug off the affront that it was really just warmed-
over modular programming from the 1970s than it was
forced to counter the terminology that it was metadata
wrapped in an XML container communicating via SOAP
(Simple Object Access Protocol).
Despite being encumbered with a sufcient number
of acronyms and hype-enthused press releases
to drag it permanently under water, the con-
cept of computing services being assembled
and delivered in the name of business strategy
has survived for a very good reason: The idea
makes sense. Rather than treating every busi-
ness application as a greeneld for lengthy app
development, why not make use of what you
have and what others are offering? Assemble
the application irrespective of what hardware a company
has and get on with the business of business.
Here are ve steps that need to take place to make SOA
real for all businesses great and small:
1. GOVERNANCE: Just as virtualized hardware systems
need strong administrative tools to avoid the descent into
computing chaos, the same is true of service applications.
In fact, Id argue that companies planning to broadly adopt
SOA should start with governance.
Applications built from internal and external services
will generate prodigious amounts of data that has to be ac-
cessed, acted upon and exchanged. Having loosely coupled
applications does not mean they are loosely controlled.
2. SECURITY: If you build a business process that
involves private customer data, you are responsible for
the well-being of that data, period. If that process involves
using resources outside your company, you should be
absolutely certain about the security procedures in place
and the liabilities involved.
3. BUSINESS PROCESS: As application developers
have learned to their misfortune over the years, business
operations do not operate in neat boxes, and the appli-
cation you carefully modeled three years ago bears little
resemblance to how the business runs today. The next big
thing in service-oriented architectures is to build services
that can operate and morph in real time to truly reect
business operations.
The analysts at Gartner and elsewhere are trying to coin the
term SOA 2.0 (http://tinyurl.com/yl4e5yq) for this next
iteration of services. While I am hesitant to tag anything with
the 2.0 name, there does need to be some way to describe
services that are oriented to evolving with the business.
4. AN SOA ROI CALCULATOR: The
SOA concept makes a lot of sense. You can re-
use chunks of services that you pay for or rent
instead of building everything from scratch.
You can look at what you are currently pay-
ing for business application development and
start asking why you cant get more use from
those applications.
Why not reuse those services within the company for
new applications or maybe start leasing those services on
the outside? Developing an ROI calculation based on the
entire software application life cycle is a tricky prospect,
but it would help SOA adoption.
5. LEARN THE LANGUAGE OF BUSINESS:
Technology advocates of service-oriented architectures
speak one language, and business executives speak the lan-
guage of business. Business executives have no idea, nor
should they, about the concepts surrounding BPEL, SOA,
SOAP or mashups. They know that economic indicators are
pointing to the end of the current recession, and they want
to get their company ready to do some business.
You need to learn the language of business if you are
going to sell SOA in your company. Practice giving an
entire presentation about the benets of service-oriented
architectures without once using an acronym. By all means,
avoid getting into the details of technology standards.
Instead, understand the business you are in and explain
how you can make your company run faster, smarter and
less expensively using SOA.
Eric Lundquist is the Vice President of Strategic Content with
Ziff Davis Enterprise. You can reach him at eric.lundquist@
ziffdavisenterprise.com.
The Five Next Steps in
Service-Oriented Architectures
by Eric Lundquist
ST_0911_Lundqst_v2.indd 22 10/22/09 10:17:49 AM
IBM, the IBM logo, ibm.com, Smarter Planet and the planet icon are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names
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83388_03_SGP_09_36.pgs 09.15.2009 14:14 PDFX1a
Untitled-1 3 10/22/09 10:41:39 AM
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81191_05_SGP_09_22_R1.pgs 09.15.2009 14:20 PDFX1a
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19
CONTINUED FROM PAGE 18
integration solutions. In 200S, baseu on the task Iorce's
recommenuation, I chose SAS Financial Management anu
SAS Forecast Server, to run on two uual-core IBM servers.
Combining these separate applications was challenging, but
we were able to uo it with help Irom SAS, anu we completeu
the implementation in Iive months.
\e selecteu this system baseu on cost anu its robust Iore-
casting capabilities, which are critical Ior
our business. For example, iI we incorrectly
preuict in September that the uemanu Ior
our precookeu prouucts will be low uuring
the peak-season Christmas holiuays, we
coulu Iace major losses.
BeIore we useu SAS Ior Iorecasting, our
sales Iorce createu Iorecasts using spreau-
sheets. InIormation was entereu by multiple
parties anu, as we trieu to create Iorecasts,
inIormation was sometimes manipulateu in
a way that createu inaccuracies.
DEVELOPING THE PROCESS
Our new Iorecasting process was uevelopeu
over the course oI a year. \e Iirst selecteu
several company estimators, traue marketing
experts anu other proIessional staIIers to
Iorm a team oI J5 people who are now calleu
Iorecasters. 1he team ueIineu the Iorecasting mouel, which
the I1 staII then implementeu in SAS. In the past, upwaru oI
340 people hau been involveu at some level in Iorecasting sales.
By limiting input to a group oI people with speciIic skill sets,
we were able to greatly improve our Iorecasts.
Lata entry has been streamlineu to prevent multiple ver-
sions oI the truth. Anu having a smaller group oI Iorecasting
experts prevents conIusion causeu by too many staIIers using
uiIIerent spreausheets with uiIIering estimates.
Our Iorecasters now work with monthly sales inIormation
to create Iorecasts three months out. 1he SAS Iorecasting tool
works with Excel spreausheets, anu the navigation system is
similar to a Pivot table, so it is Iamiliar to users.
1he process begins with estimators who work on Iorecasts
Ior the Iollowing one to three months uuring the Iirst nine to
J2 uays oI the preceuing month. 1he evaluation matrix is struc-
tureu so that each estimator can Iinu inIormation Ior a speciIic
group oI customers with similar purchasing behaviors anu Ioou
assortments. 1he estimators can look at the prior year's uata
Ior that month or uata Irom the past three months. All the uata
is linkeu to both total volume anu promotional volume.
\hen the estimators Iinish this process, project leauers
aujust anu analyze the results with the help oI traue marketing
uirectors anu sales uirectors. 1he valiuateu results are sent
uirectly to stock managers responsible Ior prouuction plan-
ning. Our error rate is currently about J5 percent, uown Irom
JS percent, anu we want to reuuce it to arounu 5 percent.
STANDARDIZING FORECASTING
\ith the new process, Iorecasting is more stanuaruizeu, the
staII is more Iocuseu on meeting ueaulines anu our margin
oI error has been reuuceu. \hoever makes the estimate
now sees new items automatically highlighteu or can view
items listeu in uecreasing oruer oI importance. 1his is critical
because newly introuuceu items might neeu more attention
than trauitional sellers. In auuition, items that consume
a larger percentage oI the marketing buuget, cost more to
manuIacture or have slimmer margins may neeu more atten-
tion than other prouucts.
\e are also able to create what-iI scenarios. For instance,
iI the price oI a key raw ingreuient goes up,
we can mine our uata to uetermine how
much prouuct will sell at a higher price-
ensuring that we uon't unuer- or overpro-
uuce. \e can also look at how uiIIerent
prouuct sizes sell in existing markets to
get a better iuea oI what size package to
recommenu to retailers who are auuing
one oI our prouucts.
One oI the goals we've set Ior our
Iorecasting is to reuuce the inciuence oI
slow-moving prouucts Irom 2 percent to
J percent, since having to sell prouucts at low
prices when they get near their expiration
uate results in losses. \e are making prog-
ress on this, having reuuceu slow-moving
prouucts Irom 2 percent to J.7 percent in just
the Iirst six months oI using the solution.
At the same time, we also uon't want to
unuerstock anu be out oI stock more than 3 percent oI the
time. \ith our Iorecasting solution, we're working to reuuce
that to 2 percent or J percent.
\e use the Financial Management tool in conjunction with
the Iorecasting tool. \hile the Iorecasting tool builus Irom
the bottom up, the Financial Management tool can builu a
buuget Irom the top uown-helping us make uecisions about
which prouucts to support with auuitional Iunus.
1he Iorecasters use the buuget to help the sales team
unuerstanu how much they have to sell-anu at what price-
to make buuget. InIormation becomes transparent, to the
point that a selI-teaching process is createu, anu the Iore-
caster continuously sharpens his or her Iorecasting skills.
Although we haven't yet completeu our Iull investment
return analysis oI this project, it appears to be successIul.
Since a major purpose was to save money on misseu ueliveries
anu wasteu Ioous, the Iact that we were able to reuuce costs
in those areas is a uistinct auvantage. In auuition, inuicators
such as reuuceu errors anu Iewer out-oI-stock situations show
that the project has been beneIicial Ior us.
\e think these solutions will prove just as useIul in the
Iuture. \hether we're expanuing into the overseas market
or purchasing other small companies, we are well-positioneu
to grow into the next uecaue. 3
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Armentano Raco,
trade marketing manager
for Grandi Salumifici Italiani
JOB OPENINGS: Submit your Job Site article
submissions to editors@baselinemag.com.
BL_0911_JobSite_Grandi_v3.indd 19 10/22/09 4:03:47 PM
I
F TECHNOLOGY DISAPPEARED, WHAT WOULD YOUR
business look like: Virtually every company is a tech-
nology company in some way: Either technology is your
prouuct or service, or it supports your prouucts or services.
I1 typically eats up percent to percent oI a company's
overall annual revenues anu oIten percent to percent
oI its capital expenuitures, accoruing to J^[;n[Ykj_l[i=k_Z[
je?d\ehcWj_edJ[Y^debe]o (\iley, ). o wonuer I1-relateu
nightmares keep executives up at night.
\hy uo technology strategies oIten unuerperIorm when it
comes to uelivering business value: \sually it's because they
lack the strategy-to-capabilities-to-initiative minuset that can
be instrumental in uelivering an executable technology strategy
that's better aligneu with business objectives, potentially saving
signiIicant amounts oI money.
First, let's be clear about what this minuset means anu why
it's important. 1hough business is obviously more complex,
Iootball oIIers a perIect analogy.
It happens every Iall. \e watch our Iavorite Iootball teams
either squanuer their season or, iI we're lucky, win the Super
Bowl. How uiu they waste all that talent: Contrarily, how uiu
they get so Iar with j^Wj talent: 1hen there are the teams that
continue to excel year aIter year-regaruless oI the players.
How uo they uo it: By thinking Iirst about strategy, then
about the capabilities neeueu to execute that strategy anu,
Iinally, about the plays or tactics to implement the strategy.
\hile the best Iootball organizations have a clear strategy,
they also have the capabilities to execute on that strategy. You
can't be a passing team without the ability to throw, catch anu
block. Even iI you have the best quarterback in the league,
without the other skills to complement him, you are not
going to win many games. It is the iuentiIication oI a clear
strategy (we are going to be a passing team), the iuentiIication
oI key capabilities requireu to execute that strategy (block,
catch, throw), anu the tactics or plays with which to uevelop
those capabilities that leau to success.
A hail Mary pass may create a lot oI excitement Ior a Iew
minutes, but a single play rarely wins the Super Bowl. either
will a single I1 project that's not backeu by capabilities urive
business success. Having the right capabilities in place is what
wins in both Iootball anu I1.
DONT LEAP BEFORE YOU LOOK
\hen companies leap Irom business strategy uirectly
to technology initiatives, they risk the consequence oI
not having the core capabilities necessary to leverage the
system or application appropriately in oruer to ensure the
success oI the project. Most people become Iascinateu with
the promise oI technology anu are happy to uive immeui-
ately into the next juicy project without unuerstanuing the
longer-term business implications.
I1 strategy shoulu Iocus on business results anu not on the
technological possibilities available. 1he leauership team Iirst
neeus to unuerstanu the capabilities they alreauy have anu the
ones they will neeu beIore engaging with speciIic projects.
\hen you leap Irom strategy uirectly to technology
project implementation, the Iollowing things can happen:
Projects become one-oII anu monolithic, as opposeu to
mouular, auuing signiIicant time to completion.
1echnology strategies become conIuseu with using the
newest technologies insteau oI Iocusing on uelivering on
business objectives, thus wasting resources.
It becomes uiIIicult to uetermine how eIIectively busi-
ness objectives are auuresseu, risking the chance that
costly mistakes will be repeateu.
Companies Iail to beneIit Irom the competitive auvan-
tage I1 can proviue.
\hat can be been uone uiIIerently to avoiu these conse-
quences: One option is taking an approach that moves Irom
the uesireu business strategy to a uetermination oI necessary
capabilities, anu then to the projects that builu anu enable
those capabilities.
IF YOUR IT STRATEGY IS UNDERPERFORMING, TRY FOCUSING ON
CAPABILITIES THAT CAN HELP YOU EXECUTE THAT STRATEGY.
By Richard Brennan
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IT STRATEGY
STRATEGY
IS NOT ENOUGH
BL_0912_Ft_ITStrat_v5.indd 20 10/22/09 3:56:45 PM
Technology organizations typically fall into one of three
categories in terms of how they manage their IT strategies
and investments. Every organization falls somewhere on the
steward, partner or differentiator continuum, depending on its
market and how focused it is on capabilities or tactics. Its pos-
sible for various IT organizations within a company to operate
in different areas on the continuum, depending on strategy.
steward/partner/dIfferentIator contInuum
stewards are the caretakers of the systems, focused on
not allowing anything to go wrong with the technology
on their watch. They take direction from the business
with little input beyond costs and timeline projections,
so their planning horizon is limited.
partners are active participants in the planning
process, providing input into projects and offering alter-
natives and options. Their planning horizon is medium-
term:typically 12 months. Partners seek to leverage
existing capabilitiesrather than develop new capabili-
tiesto drive business results.
differentiators are active participants in the planning
process, providing input into projects and offering alter-
natives and options. Their planning horizon is long-term,
focusing on portfolios of projects geared toward deliv-
ering new capabilities to achieve competitive advantage.
Regardless of which category your technology organiza-
tion falls into, it has capabilities that will constantly need
to be refined and developed. The key to being successful is
ensuring that the strategic role you choose for your organiza-
tion supports the business strategy being developed.
If your business is in a low-end technology industry, you
might be operating effectively in a steward role. On the
other hand, if you operate in an industry that is a heavy user
of technologyor technology is your productyoud better
be a strong differentiator. You need to determine where your
technology organization is along this continuum and where it
needs to be to make good on its business strategies.
When tied to business objectives and strategy, technology is
an essential tool that improves performance and increases busi-
ness value. IT should be considered in terms of the capabilities
that are needed to realize business objectives. Its your business
objectives that define where you want to go, and, more often
than not, it is IT capabilities that will help you get there. 3
Richard Brennan is a managing director in Tipperary Partners,
a Denver-based technology strategy and advisory firm.
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eight common technology capabilities
There is no definitive list of technical capabilities that an IT organization needs. Capabilities will vary based on
the business strategy youve put in place. What follows is a list of eight common technology capabilities, but
there are many others.
Its important to remember that it could be detrimental to try to excel at more than three or four capabilities.
Its acceptable to be at the industry average in others. Use this list as an example of how to determine and define
capabilities. Modify it to fit your enterprise and industry, and come up with a few capabilities of your own.
operatIonal: Expert in operating systems, networks, data centers; scaling them efficiently while
appropriately managing risks
development: Expert in leveraging the appropriate technology to code and deploy complex systems
InnovatIve: Expert at introducing technologies and processes
project management: Expert at managing and delivering complex projects within budget and timeframe
archItectural: Expert in designing reliable, scalable and extensible applications and systems
data management: Expert at collecting, managing, organizing and providing access to data
process: Expert in establishing and managing operational and business processes
agIle: Expert in reacting quickly to the changing technical/business environmentR.B.
conducting an
assessment
Following are the steps involved in conducting a capabili-
ties assessment:
1
Identify the business strategy against which you
will be assessing the capabilities. The strategy
points out which capabilities to improve, acquire and
simply maintain.
2
develop the framework. Starting with these capabili-
ties, adapt and add to the list to develop a tailor-made
technical capabilities framework.
3
gather input from multiple groups on the current and
desired capabilities. This can be done in a number of
ways, including surveying company-wide or constituent-
wide leadership teams.
4
Identify the most critical capabilities requiring atten-
tion. Focus attention on no more than three technical
capabilities that are required to deliver on strategy goals.
5
create the strategy. Identify core projects and initia-
tives to develop, acquire or maintain the identified
capabilities. Its essential to assign responsibilities and
measure their impact.R.B.
BL_0912_Ft_ITStrat_v5.indd 21 10/22/09 3:56:46 PM
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THERES NO SENSE BEMOANING THE PROLIFERATION
OF MOBILE DEVICES IN THE ENTERPRISE. THAT GENIE
ESCAPED YEARS AGO. NOW ITS UP TO IT EXECUTIVES
TO MANAGE THE MYRIAD MOBILE DEVICES USED BY
EMPLOYEES, DEVELOP COHERENT USAGE POLICIES AND
DEPLOY SECURITY TO PROTECT CORPORATE ASSETS.
BY SAMUEL GREENGARD
Minding Your
Mobile Assets
BL_0911_Mobility_v3_ef.indd 22 10/22/09 3:54:20 PM
ENTERPRISE MOBILITY
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I LLUSTRATI ON BY RANDY LYHUS
A
SK ANY EXECUTIVE FOR A LIST OF GAME-CHANGING
technologies, anu mobility is likely to appear near
the top. Smartphones, PLAs, laptops, netbooks,
\i-Fi, cellular broaubanu anu a variety oI other tools make it
possible to exchange e-mail, sales leaus anu other uata Irom
almost any point on Planet Earth. 1he wiuespreau avail-
ability oI real-time communication has ushereu in a new era
oI opportunity anu eIIiciency.
Forrester Research reports that 73 percent oI global
enterprise work Iorces will be mobile by 20J2. Managing a
plethora oI uevices, ueveloping coherent policies anu insti-
tuting auequate security are no small tasks.
CIOs anu other I1 executives Iace enormous challenges,
says Sean Ryan, research analyst Ior Mobile Enterprise at
ILC. \ith so many uevices anu so much Iragmentation in
the marketplace, it's uiIIicult to uevelop sounu policies, pro-
ceuures anu practices that auuress all the issues.
\nIortunately, the situation isn't getting any easier. \hile
executives may clamor Ior BlackBerrys, a sales Iorce may
uemanu iPhones. \hile some workers connect their laptops
via secure cellular connections, others tap into the network
via unsecure \i-Fi.
1hen there's the issue oI business versus personal use.
\ith so many options anu possibilities, I1 can Iinu itselI
reeling. \ho proviues the uevices anu who pays Ior them:
Shoulu an organization stanuaruize on one or two platIorms,
or create an open environment: Anu what security policies
are requireu to keep corporate assets saIe:
1here is no one-size-Iits-all approach. It's important Ior
an organization to thoroughly unuerstanu its business pro-
cesses anu workIlows-as well as who is using the uevices anu
how they are using them, says Bill Clark, research vice presi-
uent at Cartner. In auuition, it's vital to builu a Iramework
that's Ilexible anu cost-eIIicient. A craule-to-grave viewpoint
is essential, he auus. \ithout strong oversight, it's uiIIicult
to manage mobility eIIectively.
A SOUND APPROACH
Mobile technology has emergeu as a mainstream tool that
reaches every level oI an enterprise-anu beyonu. However,
getting a hanule on mobile assets anu ueveloping a strategy
Ior managing them can prove uaunting. Although soItware
applications can hanule the mechanics oI keeping track oI
uevices, they uo nothing to help an organization uevelop a
coherent strategy Ior purchasing, issuing, anu overseeing the
technology anu the way it is useu.
A 2009 mobility stuuy conuucteu by Motorola Iounu that
the biggest challenges Iacing a mobile enterprise are cost oI
haruware, security concerns anu risks, cost oI soItware, inte-
gration, service anu support, uiIIiculties in employee training
anu support, anu uiIIiculties integrating mobile applications
into the existing inIrastructure. Although the survey Iocuseu
on the hospitality inuustry, it's clear that these issues are
something that all organizations must cope with.
A starting point, Clark says, is to iuentiIy what tasks take
preceuence, anu then map uevices anu tools to speciIic roles
across the organization. \hile BlackBerrys may be iueal Ior
executives who message heavily, an iPhone loaueu with the
right CRM application or uatabase tool may unleash the Iull
Minding Your
Mobile Assets
potential oI a sales Iorce or Iielu support agent. It's impor-
tant to eliminate steps, simpliIy uata entry anu access, anu
make people more strategic, he says.
OI course, no two businesses are createu equal. SaIelite
AutoClass repairs anu replaces automobile winushielus at
Iacilities anu mobile service vans scattereu across every \.S.
state. 1he company, heauquartereu in Columbus, Ohio,
Iounu that by consoliuating on a single platIorm-in this case,
BlackBerrys equippeu with a Bluetooth pen anu a printer-it
coulu streamline an array oI processes anu manage scheu-
uling anu Iielu transactions Iar more eIIiciently. It auopteu
the mobile platIorm Iour years ago. 1ouay, it has more than
3,300 smartphones in the Iielu, says Chris Lelong, uirector
oI open systems anu inIrastructure.
Stanuaruizing on a single platIorm was all about uol-
lars anu sense. Since Iielu technicians require the uevices
Ior messaging anu hanuling transactions, the company
installeu a BlackBerry Enterprise Server anu createu a
blacklist anu whitelist oI \eb sites. 1here are no limits
on voice calls. Insteau, the company uses trip wires that
inuicate only whether an employee is placing international
calls or venturing beyonu an establisheu thresholu Ior calls
or text messages.
SaIelite allows some executives to use iPhones or \inuows
Mobile uevices because they have more complex require-
ments. 1here is a smattering oI other uevices but, Irom
an operational perspective, the BlackBerry is the uevice oI
choice because it simpliIies I1 management anu proviues
tight controls, Lelong notes.
In Iact, the company oversees the entire mobile uevice
environment with a Iour-person I1 staII. Stanuaruization,
along with a mature, robust BlackBerry platIorm, has alloweu
us to maximize ROI, he auus.
STANDARDIZATION IS DIFFICULT
SaIelite's situation is not typical, anu many Iirms Iinu it uiI-
Iicult to stanuaruize on a single mobile uevice or platIorm.
LiIIerent uepartments anu employees have uiverse neeus,
so locking in on a single system can unuermine prouuctivity.
As Cartner's Clark puts it: An organization that lacks
Ilexibility anu the right tools can Iinu itselI at a strategic
uisauvantage.
PlatIorms anu preIerences are key issues Iacing the
ationwiue Mutual Insurance Co. 1he Columbus, Ohio,
Iirm, with SJ.7 billion in 200S sales, has trauitionally relieu
on BlackBerrys Ior messaging anu voice communication. It
has also useu cellular broaubanu-equippeu laptops Ior certain
situations. 1he goal has been to make uata wiuely avail-
able within a secure, manageu environment, says Robert
Burkhart, uirector oI new technology.
In the past, ationwiue owneu smartphones anu var-
ious employee-useu uevices, but it may soon shiIt to an
employee ownership mouel. 1he proliIeration oI iPhones
anu other uevices-along with more auvanceu management
anu security capabilities-is Iorcing uecision-makers to
rethink things.
1here's no reason Ior people to carry two or more
uevices, Burkhart says. Anu pricing plans have come uown
to the point where limits Ior personal calls anu minutes
aren't necessary. But the Iirm will likely continue to impose
caps on uata usage.
1o embrace a more open anu Ilexible environment,
ationwiue turneu to Sybase AIaria, which supports Open
Mobile Alliance Levice Management stanuarus. Burkhart
says the environment also helps reuuce costs by oIIering
troubleshooting anu help-uesk capabilities, while passing the
bulk oI the responsibility onto manuIacturers anu carriers.
Cartner's Clark says it's essential to unuerstanu orga-
nizational roles anu usage patterns so the enterprise
uoesn't overspenu on uevices or on calling anu uata plans.
ot everyone neeus an iPhone, he says. ot everyone
neeus a uata plan loaueu with minutes. An organization
must look at the eIIicient use oI resources anu basic cost-
containment issues.
DIALING INTO A STRATEGY
It's critical to create a strategy Ior managing a mobile
environment. Applications such as Sybase AIaria, 1rellia,
MicrosoIt Systems Center Levice Manager anu Ouyssey
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E NT E RP RI S E MOBI L I T Y
According to Plan
Its not unusual for an enterprise to rely on more than one
cellular service provider. In many cases, different devices
and services demand a multipartner approach. Of course, its
crucial to negotiate contracts with different providers.
As Chris Delong, director of open systems and infrastruc-
ture at Safelite AutoGlass, explains, Negotiating with vendors
is somewhat of an art. You try to get the best deal you can
based on your bargaining position.
Volume counts, to be sure. But theres also the issue of
ensuring that employees are on the right plans, that theyre
not blasting past data limits and paying higher rates, and that
theyre using the best available network. In some cases, such
as with laptops and netbooks, Bill Clark, research vice presi-
dent at Gartner, says that its easy for employees to rack up
daily Wi-Fi charges through providers like T-Mobile and Boingo,
when a cellular modem could cut costs. Too often, he says,
organizations set up systems and then neglect to re-examine
them or make needed changes.
Online sites such as OnlineBillReview.com and Validas
analyze bills and find inconsistencies and waste. They charge
modest fees or take a cut of the savings, but many organiza-
tions find it worthwhile.
In addition, experts advise organizations to make sure
that employees dont have phones they dont need and
features they dont use. For example, not every worker
requires an unlimited dialing plan or a multimedia messaging
service (MMS).
Finally, try to consolidate accounts to a single carrier, if
possible. Volume typically translates into lower costs, and its
increasingly possible to pool minutes.S.G.
PLANNING AND LEADERSHIP FOR A BETTER WORLD
A NEW ONLINE MULTIMEDIA COMMUNITY THAT OFFERS A UNIQUE VISION ON THE
TECHNOLOGIES THAT HAVE THE MOST POTENTIAL TO CHANGE OUR WORLD.
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It all starts with Smarter Technology.
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Software Athena provide increasingly sophisticated mobile
management features. These include the ability to configure
devices remotely, enforce different sets of policies for dif-
ferent users and devices, and view applications running on
all of them.
Many of these packages also provide diagnostics features
and support troubleshooting and help desk activities. The
latter is important because mobile devices travel off premises
and away from hands-on IT support.
IDCs Ryan urges enterprises to examine device manage-
ment applications carefully. And theres no single template
even within the same industry. Some organizations support
only a single platform, and others support multiple plat-
forms, he says. You have to understand what you want to
achieve and where youre headed so you dont wind up getting
boxed in.
Flexibility is only part of the story, however. Mobile
device management also involves thinking through a spate
of practical issues, such as who pays the phone bill, who
owns the phone number, how to deliver tech support, and
which applications the enterprise allows on smartphones
and laptops. Further complicating matters, various groups
of employees usually have entirely different needs and
usage patterns.
These are all issues that Soberman LLP, a Toronto-based
public accounting firm, faced when it moved to a mobile
platform. The 150-person company has specialists who
spend about 90 percent of their time in the field providing
accounting and auditing services. In some cases, they are
at a client site for a week to 10 days. As a result, mobile
tools are essential, and staying connected to enterprise
systems is unavoidable. Whats more, security, privacy and
confidentiality are vital, notes Susan Hodkinson, chief
operating officer.
Soberman has turned to a mix of devices and systems.
Accountants mostly carry BlackBerrys, but employees also
rely on laptops equipped with dial-up, 3G data cards, Wi-Fi
and WiMax. And a few executives carry netbooks.
Within this environment, its crucial to achieve a high
level of IT compliance and security. So Soberman opted
for a Trellia mobile management system that provides pro-
visioning, simplifies compliance and standardizes various
processes. The solution also helps the company track billing
and cost issues, including which devices make sense for
various user groups.
No less important, the application allows the firm to
designate which Wi-Fi networks employees are allowed
to connect with and the order in which they can con-
nect. Creating a whitelist and a blacklist is enormously
important, says Robin Persaud, senior network engineer at
Soberman. Were able to secure the devices and the network
far more effectively.
These systems can assist in other ways. Many organiza-
tions, including Safelite and Soberman, are moving away
from a reimbursement model for mobility devices and are
adopting an employer-paid model. This approach makes it
easier to control the device and phone number, while also
amping up security. It also sheds paperwork by eliminating
expense reports for mobile devices.
For many companies, it makes a lot more sense to
set limits and look for exceptions, rather than tracking
everyone and everything, says IDCs Ryan.
mAking security count
Although mobility offers compelling advantages, it also pres-
ents an array of security concerns. For example, its estimated
that 70 percent or more of enterprise data now resides in
some form on mobile devices. Remarkably, approximately
three out of four organizations lack comprehensive formal-
ized policies for dealing with mobile devices and data.
As workers try to connect their personal devices to a
corporate network and access Microsoft Exchange Servers
and other applications, the potential headaches mushroom.
Typical corporate asset management and security issues are
also magnified by the fact that mobile and wireless devices
travel beyond the physical boundaries of the enterprise.
Moreover, content streams past the corporate firewall,
e nt e rp ri s e mobi l i t y
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aligning your mobile
management strategy

Effective mobile device management means tackling a number
of challenges. According to Christopher Isaac, a partner at
PricewaterhouseCoopers Advisory Practice, an organization
should focus on several key areas:
strAtegy
A mobility strategy thats in line with overall company or
IT objectives
Executive support to avoid unrealized benefits, cost overruns
and poor decision making
mAnAgement
A consistent framework for evaluating, monitoring and
measuring performance of mobility solutions
policy And governAnce
Avoiding security, privacy or regulatory violations due to the
lack of a defined mobility policy and governance structure
Steering clear of excess expenditures due to a focus on
individual segmented solutions
technology
Adoption of sound management practices to boost the
odds of a successful rollout and spur the adoption of new
mobile solutions
A focus on core business processes rather than the available
technology
business process
The creation of new business models, operational effective-
ness and an enhanced user experience
A sound project management approach that reducesif
not eliminatesdeployment delays and cost overruns and
improves return on benefits.S.G.
and smartphones and computers are easily lost or stolen.
Theres also the issue of ensuring that devices can no longer
be used to access corporate data after an employee leaves
the company.
When IDC asked business leaders whether their organi-
zations have deployed mobile device management tools to
track handheld devices used by employees, only 53 percent
answered yes. Although this figure is a major improvement
over 2008, when only a third of companies had management
and security systems in place, it still translates into a huge
risk. As Ryan puts it, Mobile
management and security are
closely linked.
In fact, Vodaphone UK
found that 25 percent of all
businesses have experienced
security breaches as a result of
employees using their laptops
and mobile devices outside of
workand essentially ignoring
company policies. Moreover,
half of all workers werent
aware that different policies
exist for using devices and sys-
tems for work versus outside of
work. No less unsettling: One-
third of the respondents either
didnt know their organization
had an IT policy or they had
never read it.
Administration and security issues are inextricably linked
at Addison Avenue Federal Credit Union, which serves
140,000 members at companies scattered across 10 states
and Puerto Rico. It also reaches members around the world
through its online channels. Three years ago, the company,
based in Palo Alto and Rocklin, Calif., developed a policy
framework for meshing business requirements with a mobile
strategy.
We spent a lot of time talking to users, and we put a
control group in place to better understand how they use
devices, says Ken Smith, director of customer support and
information security. From this, the firm created a policy
document for its employees, including the sales force. This
led to specific administration and security strategies.
Addison Avenue divides mobile accounts into two tiers:
company-liable and employee-liable. The organization owns
the devices and phone numbers for the first group. We pay
the bills, Smith says. The second group, however, required
a bit more analysis. These individuals select and provision
their own device, he says. They get the bill, and we reim-
burse them for certain uses. We know that they do need to
use the device for business purposes from time to time.
That meant defining a set of standards and security
policiesand ensuring that the employees understood and
acknowledged them. Whereas a BlackBerry Enterprise
Server provides much of the protection needed for the
company-owned BlackBerry devices, Addison Avenue is
testing security for other devices, including iPhones and
Windows Mobile smartphones. In addition, the company
uses device locks for time-outs and has remote management
and wipe capabilities on company-issued devices.
IDCs Ryan says the ability to track and lock devices,
encrypt data and use a remote-wipe feature is essential.
Smartphones, netbooks, notebooks and other devices con-
stantly go missing, he points out. With the amount of data
stored on these devicesand the ability to access enterprise
applications and databasestheres no margin for error.
Moreover, the right software slides the dial on device
management from policy to practice. Theres no possi-
bility of employees forgetting
or sidestepping a rule. Finally,
organizations can implement
blocking features or lock down
specific components, such as
camera phones, that may pose a
security risk.
connecting to success
Mobile device management
isnt likely to get simpler any
time soon. Ryan sees the con-
sumerization of mobile devices
continuing and various plat-
formsincluding BlackBerry,
iPhone, Windows Mobile,
Palm, Android and Symbian
remaining viable over the next
few years. Whats more, com-
plex business requirements,
greater regulatory concerns and rapidly changing tech-
nology make mobile device management a challenging
IT proposition. It creates issues that dont exist for tradi-
tional IT, he says.
The good news, says Christopher Isaac, a partner at
PricewaterhouseCoopers Advisory Practice, is that the
Internet and the maturation of mobile and wireless tech-
nologies are ushering in greater simplicity and an ability to
connect various platforms and systems. Also, growing com-
petition among providers translates into opportunities for
astute companies.
Convergence means that hardware suppliers are com-
peting with software providers, who are competing with
service providers, he says. In such circumstances, opportu-
nities abound to negotiate favorable service agreements.
Nevertheless, organizations must take a proactive stance.
Those that plot out a business case and develop policies and
procedures for handling mobile devices are likely to reduce
costs, improve efficiency and trim risk. Theres no single
route to success, but a focus on managing the environment
holistically pays dividends.
The genie is out of the bottle, cautions IDCs Ryan.
Employees expect leading-edge mobility tools, and the
enterprise requires them to compete effectively. So its up to
IT to manage the environment effectively. 3
Please send your questions and comments on
this article to editors@baselinemag.com.
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Its up
to IT to
manage the
environment
effectively.
Sean Ryan, IDC
VERTICAL VIEW: NONPROFIT ORGANIZATIONS
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THE BOYS & GIRLS CLUBS OF AMERICA,
THE SALVATION ARMY AND THE WORLD
WILDLIFE FUND MUST DEAL WITH MANY
OF THE SAME TECHNOLOGY CHALLENGES
FACING FOR-PROFIT ENTERPRISES, BUT
THEY DONT HAVE THE SAME RESOURCES
AVAILABLE TO THEM.
Technology
Helps Save
the World
G
IVING KIDS THE KEYS TO THE INTERNET WITHOUT
exposing them to malware anu other uangers that
lurk on the \eb. Making sure relieI teams can stay
in touch uuring uisasters. Communicating eIIectively with
uonors anu other supporters.
1hese are just a Iew oI the challenges Iacing the Boys
& Cirls Clubs oI America (BCCA), the Salvation Army
anu the \orlu \iluliIe Funu (\\F). 1hese nonproIit
organizations must ueal with many oI the same technology
challenges Iacing Ior-proIit enterprises, but they uon't have
the same resources available to them.
So how uo they meet these challenges: \ith help Irom
corporate beneIactors, by making the same equipment
serve uouble-uuty anu by using technology to cut costs.
1ake the BCCA, which is heauquartereu in Atlanta. It
proviues everything Irom homework help anu nutritional
tips to sports anu other recreational activities, primarily
By Nick Wreden
BL_0911_VV_v4.indd 28 10/22/09 4:17:32 PM
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to at-risk kius. Almost all oI the more than 4,300 BCCA
clubs nationwiue, run by J,J00-plus organizations, have
computers with \eb access Ior research, communications
anu games.
At a time when even sophisticateu corporate staIIs
strain to maintain barricaues against \eb threats,
the BCCA was challengeu to ensure Internet
protection anu saIety with club staIIers who
were more skilleu at working with kius
than with computers. Compounuing the
challenge was an extremely heteroge-
neous environment comprising more
than 0,000 workstations, with auton-
omous locations making their own
haruware anu soItware selections-
incluuing those that aIIect security.
Auuitionally, the 4,300 BCCA clubs
represent a patchwork oI network envi-
ronments. Some are networkeu as part oI
larger organizations that have at least some I1
staII, while others are stanualone clubs.
\e neeueu an automateu solution that coulu
work well within a Iragmenteu environment
where there might not be much computer
expertise on-site, says John Coslin, C1O
oI the BCCA. 1he kius aren't always
Internet savvy, so a best-oI-breeu auto-
mateu solution was neeueu to protect
equipment anu proviue a saIe online
environment, without requiring a lot oI
time, attention or expertise.
Any solution to what Coslin calls
a Heinz 57 environment hau to meet
three criteria. First, it hau to be easily
upuateu to meet shiIting uigital threats.
Seconu, it hau to work on inuiviuual PCs or
among \As. Finally, it hau to be Iinancially
palatable to the clubs, which struggle to raise auequate
Iunus to accomplish their mission.
1o achieve these goals, the BCCA relieu on
a partnership with CA, which incluueu more
than S4. million in uonations. 1he three-
year partnership proviues the clubs with
CA Internet Security Suite anu technical
consulting, which ueliver sophisticateu
network anu PC protection.
It took about a year to correlate
the number oI PCs with the number
oI licenses, uevelop simple instructions
Ior the local staII to loau the soItware
with the appropriate license onto each
PC, automate soItware uistribution to the
clubs, anu then ensure that once soItware was
uownloaueu, each PC coulu be upuateu in the
backgrounu, regaruless oI whether it resiueu on a network
or an inuiviuual PC, says Coslin.
About halI the clubs have now been automateu, anu the
BCCA is aggressively pushing implementation into the
remaining clubs.
1he BCCA also relieu on CA to improve business
continuity. Previously, backup hau been a manual, time-
consuming process that incluueu oII-site storage. 1he
system was ruuimentary, subject to human error, Coslin
recalls. It woulu have taken a long time to get a uata center
up anu running aIter a uisaster.
1o avoiu that scenario, BCCA automateu
backups using CA SM. It also createu
a warm uisaster recovery center in an
existing warehouse in Atlanta.
\e now can quickly come online
with e-mail Ior employees anu other
critical tier J applications, Coslin
reports. 1he relationship with CA
helps our organization operate better
anu Irees up resources that we can use
to work with the kius.
HELPING WITH DISASTERS
As the BCCA works to prevent security-relateu
problems that can harm chiluren, the Salvation
Army's Southern 1erritory prepares to help people
uuring hurricanes anu other natural uisasters.
Luring those challenging times, communica-
tions are oIten uiIIicult-anu sometimes
impossible. Cell phone towers anu
telephone lines may be out oI com-
mission, complicating the urgent neeu
to summon resources anu cooruinate
relieI eIIorts.
1o ensure that relieI teams can
stay in touch, the Salvation Army,
Iounueu in JS5 anu now operating in
JJS countries, uepenus on mobile com-
munications units that enable the teams to
allocate resources anu cooruinate activities
among volunteers anu organizations via e-mail,
phones anu even viueo conIerencing.
\hile the Salvation Army is Iamous Ior its
thriIt stores anu Christmastime eIIorts, we
are also heavily involveu in uisaster relieI,
says Rou Parks, inIormation technology
uirector anu CIO at the Salvation Army's
\SA Southern 1erritory, which is heau-
quartereu in Atlanta. AIter Hurricane
Katrina, we maue a large investment
in mobile communications anu other
technology to improve eIIectiveness.
1he Salvation Army's technology
investments incluue Iour mobile com-
munications units that enable voice, uata
anu other communications. One unit is a
mobile truck Ieaturing a J.2-meter satellite
uish, while the other units have .9-meter uishes.
1hese portable 4by-7Ioot units are usually transporteu in
customizeu, ruggeuizeu trailers, but they can be carrieu in
iI access is blockeu.
All the selI-supporting units incluue uiesel generators,
anu have computing anu communications capabilities.
BL_0911_VV_v4.indd 29 10/22/09 4:18:01 PM
Please send your questions and comments on
this article to editors@baselinemag.com.
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VE RT I CAL VI E W: NONP ROF I T ORGANI Z AT I ONS
The goal is
to target those
individuals most
likely to respond to
a campaign, based
on their previous
donation history
and profile.
Phil Redmond,
World Wildlife Fund
Laptops contain Lotus otes uatabases anu other applica-
tions, while BlackBerrys, satellite links, viueo conIerencing
anu ham (amateur) rauio capabilities ensure reliable con-
tact even in the haruest-hit areas.
1he mobile communications units are prepositioneu
in Atlanta, Charlotte, .C., 1ampa, Fla., anu Jackson,
Miss. Each one serves as the hub oI a J0-person inciuent
response team anu a two-person technical support team.
All the units are reauy to roll when a uisaster
threatens anu can stay in place as long as
necessary. For example, some units
have remaineu in place Ior weeks
or even months at a time when
hurricanes hit.
1he Salvation Army will
also leverage LiIeSize viueo
conIerencing capability to
Iacilitate regional meet-
ings anu the training oI
oIIicers, employees anu vol-
unteers. It not only helps
us improve uisaster coor-
uination, but it also saves
us an enormous amount oI
money through lower travel
costs, while ensuring that we
meet our ongoing euucational
anu communications requirements,
says Parks. As a nonproIit, stewaru-
ship is a high priority.
MANAGING DONORS
In auuition to managing resources, nonproIits must also
manage their uonors anu other supporters. 1he task is
complicateu because the liIebloou oI many nonproIits
consists not oI the big checks written by a Iew, but rather
the small uonations Irom the many.
Lirect mail is the liIeline to these uonors, but postage,
printing anu prouuction get expensive. Also, solicitations
can get lost amiu the glossy brochures that crowu every
mailbox. As a result, the \orlu \iluliIe Funu (\\F)
walks the same tightrope as other nonproIits: It must
minimize mailing costs so resources can be applieu to its
mission, while still maximizing uonors anu uonations.
Heauquartereu in \ashington, L.C., the \\F has
been protecting nature anu wiluliIe Ior more than 45
years. As the worlu's leauing conservation organization,
the \\F works in J00 countries with support Irom
J.2 million members in the \niteu States anu almost 5 mil-
lion globally.
1o increase the return Irom uirect-mail appeals, the
\\F has uepenueu on sophisticateu statistical analysis
soItware Irom SAS Ior about Iive years. By combining
analysis oI the attributes oI existing uonors with insight
into the characteristics oI consumers on purchaseu lists,
the Iunu can prouuce mailing lists uesigneu to optimize
response. Auuitionally, the same soItware allows the \\F
to analyze what impact variables such as photos, copy anu
special oIIers have on response anu uonations.
1he result: better segmentation, more accurate tar-
geting anu Iewer mailings with greater returns. 1he analysis
also builus a Iounuation Ior improveu messaging anu mail-
ings in the Iuture.
For example, the \orlu \iluliIe Funu allows its uonors
to auopt an animal, such as a penguin, tiger, pygmy ele-
phant or any oI J00 enuangereu, threateneu or vulnerable
animals Ior as little as S25 in exchange Ior photos, cer-
tiIicates anu other mementos. By analyzing the
proIiles oI those who responu to auoption
appeals, the \\F can better tailor
Iuture appeals.
\hen I Iirst arriveu, I thought
success uepenueu on regular mail-
ings to all current anu potential
uonors, says Phil Reumonu,
the \\F's uirector oI
e-business. But with mil-
lions oI such prospects,
the costs oI such a shotgun
approach rise rapiuly.
It is more eIIicient
anu eIIective to segment
mailings, anu hopeIully get
a larger response rate at a
lower cost. 1he goal is to target
those inuiviuuals most likely to
responu to a campaign, baseu on
their previous uonation history anu
proIile.
In auuition to increasing response, non-
proIits seek to eliminate uuplicate mailings, which
increase costs anu have a negative impact on a nonproIit's
image. \ho wants to uonate to an organization that
appears so wasteIul:
1o avoiu this issue, the \\F uses the SAS uIPower
Stuuio, a uata-cleansing soItware system. 1he soItware
goes beyonu the routine task oI scrubbing uuplicate entries
anu compares all Iielus in a uonor recoru. 1hat means that
an existing uonor is not re-entereu as a new uonor even
iI he or she has moveu or changeu other attributes. 1his
capability also gives the \\F's management a more accu-
rate picture oI uonors.
In auuition, the \\F scientists in the Conservation
Strategy & Science uepartment use JMP statistical analysis
soItware Irom SAS to analyze species uata anu track animal
migrations across regions to uetermine Iactors that may be
aIIecting their movement.
\hile Ior-proIit organizations have a business mission,
nonproIits are on a mission to make the worlu a better
place, whether that's by improving the lives oI chiluren,
getting uisaster victims back on their Ieet or preserving
enuangereu species Ior Iuture generations.
For nonproIits, I1 is about much more than just saving
uata or money. It's about saving the worlu. 3
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BUSINESS CONTINUITY IS CRITICAL TO DELIVERING WORLD-
class service to your customers, so it's important to unuerstanu
the variety oI approaches available. \hether you ultimately
ueciue to employ clouu services or a remote hot site uata center,
unuerstanuing the implications oI your uecisions may be more
important than the actual technologies you ueploy.
Many I1 managers anu executives realize that proviu-
ing continuous uptime is an ongoing process oI improving
systems anu Iinuing overlookeu or new weak points in these
systems. So let's take a closer look at what's involveu, what
steps managers have taken anu the lessons they've learneu.
Certainly, there is a lot more work to be uone. Symantec's
IiIth annual I1 Lisaster Recovery (LR) Research Report,
releaseu earlier this year, Iounu that one-Iourth oI all Iailover
tests to a recovery uata center hau some Iailures.
1he goou news is that the number oI C-level executives
involveu in uisaster planning ( percent oI the responuents)
has uoubleu Irom last year's LR survey. It's uiIIicult to tell
whether that is because oI the high costs oI LR planning, the
Iact that more mission-critical applications are now part oI
LR plans that aIIect more potential customers, or just because
CIOs are more aware oI anu attentive to business continuity.
LOCATION, LOCATION, LOCATION
1he Iirst uecision that shoulu be part oI any business continuity
plan is where to locate the backup uata center. 1here are Iour
basic strategies you can pursue:
1. Make your headquarters data center your second-
ary center, anu have a high-banuwiuth connection to a
remote primary uata center. II you go this route, you will want
primary Internet connections to the primary uata center.
1hat was the case Ior \altham, Mass.-baseu Oco, which
built a uata center a Iew miles away Irom its heauquarters.
Our heauquarters coulu go away tomorrow, anu our custom-
ers woulun't' even know because none oI our customer uata is
hosteu here, says Joe 1aylor, network operations manager.
2. Combine resources with a nearby organization. A
Iew municipal I1 managers are using each other's uata cen-
ters as their backups anu senuing encrypteu uata across on a
regular basis. 1his works only iI you have matching storage
area network (SA) haruware-anu iI there's a certain level
oI trust between the organizations.
1he city oI Maryville, 1enn., took this route anu partnereu
with a neighboring city's I1 uepartment. Maryville hau that
city, Alcoa, 1enn., match its SA solution with a uuplicate
Pillar Lata Systems storage technology that it hau.
\e uiun't neeu two-seconu recovery time at our LR site,
says 1erry McCoy, Maryville's I1 uirector. Our counterparts
in Alcoa were thinking about this at about the same time.
Since we neeueu to increase our uisk space, they purchaseu our
existing Pillar Irom us, anu we bought a newer mouel. Our goal
is to Iail over to their uata center anu them |to Iail over] to ours.
1eaming up was also a goou solution Ior the Alvarauo,
1exas, school uistrict anu the nearby Clen Rose school uis-
trict. I neeueu a more reliable solution than senuing backup
tapes oIIsite, says Kyle Berger, executive uirector oI tech-
nology services Ior the Alvarauo uistrict. \e linkeu up with
another school uistrict miles away anu have become LR
sites Ior each other. ow we are expanuing our network to
other uistricts arounu the state.
Whats the Best Approach
to Business Continuity?
HERES A LOOK AT WHATS INVOLVED IN ENSURING BUSINESS CONTINUITY, WHAT
STEPS MANAGERS HAVE TAKEN AND THE LESSONS THEYVE LEARNED. BY DAVID STROM
di sast er recovery
save backup
remot e
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BL_0911_Techknow_v2.indd 32 10/22/09 4:12:48 PM
Each district uses Compellent SANs to enable the replica-
tion of data, as well as the encryption of sensitive data, such as
student and financial records. There is a level of trust involved,
Berger says, but each participating district is required to
have quarterly health checks on their SAN to make sure they
are up-to-date on software and security. These are done by
our common VAR to make sure they are all consistent.
3. Use one of your own remote offices for an offsite
location. Thats what GreenBank in Greeneville, Tenn., did,
with two of its offices. We back up 400 gigabytes of data every
night between two ExaGrid disk-based backup systems that
are located 100 miles apart, says IT Manager Jason ODell.
Both data centers are live full time. Now I dont have to
rely on my network administrator to track down a backup tape
and hope that hes got the right one to start a restore. My help
desk people can restore data with just a few mouse clicks.
The Louisiana Supreme Court based in New Orleans
changed its strategy after Hurricane Katrina. Going through
Katrina, we were battle-tested, recalls Peter Haas, the
courts director of technology services. We had a much
clearer understanding of what everything meant. We started
looking for tools to remove single points of failure [without]
creating a lot of added overhead or staff.
The court ended up deploying a backup data center in one
of its offices 250 miles away. I can put someone there in three
hours if I have to, he says, and it is far enough away that it is
out of harms way with the hurricanes that threaten us. Every-
thing is monitored remotely, and we can fail over individual
pieces of our infrastructure in a matter of minutes and not have
to worry about how long routine maintenance will take.
The court is using a variety of CA products, including
XOsoft High Availability software and ARCserve for back-
ups. We had a situation with a faulty system attendant
mailbox on our Microsoft Exchange server, Haas explains.
We used our WAN sync tool to fail over to our remote data
center and then were able to rebuild our Exchange server in
our main data center to fix the problem. We have even done
these failovers using a laptop on our VPN and a Verizon 3G
broadband cellular data connection. It was that easy.
4. Use the cloud for your backup data center. Using
the cloud for DR makes sense for the United States Golf
Association in Far Hills, N.J., because it supplements the
organizations in-house operations and gives an extra mea-
sure of coverage for the data housed on its critical servers.
If I went the route of keeping a second data center inter-
nally for DR, the equipment would basically sit idle, says
Jessica Carroll, the associations IT director. That is a great
deal of cash outlay, and with the systems becoming outdated
after several months, its not the most efficient backup plan.
The cloud offers smart flexibility and expedient recovery.
Another golfing association is also using the cloud. Up
until last year, the Professional Golf Association Tour in
Ponte Vedra, Fla., was paying an annual subscription to have
access to a remote relocation facility.
The problem with our older DR subscription model is
that we had to go to the premises and load tapes and applica-
tions, and then our staff would have to get there, says Steve
Evans, the associations CIO. The hurricane issue makes it
difficult to get your people on a plane ahead of the evacua-
tion schedules, so, with this model, it would typically take us
about four days to get everything up and running.
As the tour created new applications and expanded its enter-
prise resource planning applications, it found this subscription
model outdated and unsatisfying, and ended up choosing
CDWs hosting facilities in Madison, Wis., for a cloud-based
continuous replication of key servers. With this new system,
we can be up in just a few hours, and we can have a lot more
flexibility to test individual applications for failover or to
schedule particular business upgrades more easily, Evans says.
Learning FroM Mistakes
Kelley Drye is an international law firm with offices in a
Manhattan building that was damaged after a major steam pipe
exploded in 2007. We couldnt get in here for six days and
didnt have a good DR plan then, says IT Director Tom Nohs.
Since then, the firm has implemented a variety of busi-
ness continuity services, including offsite colocation and
cloud-based e-mail. We were in the planning stages to do a
major colocation and cloud-based DR e-mail to a Jersey City,
N.J., data center, and we eventually moved all our servers
there, Nohs says. We also employ Dells e-mail manage-
ment services for doing DR for all our e-mail firmwide.
Kelley Drye replicates its Microsoft Exchange data across
the cloud to Dells service. In case of an outage, users can access
their e-mail messages by using a Web browser and a secure
URL. I dont have to change my Domain Name System servers,
and my users can be working immediately, giving me plenty of
time to restore the services behind the scenes, Nohs explains.
Any move to a cloud-based DR plan should focus on the
support record of the provider. One reason we went with
Dells service is because we have had a long history of using their
hardware, and they have a great support model, Nohs says.
No matter which strategy you pursue, make sure that you
test a complete failover to the backup data center regularly.
Part of this test is to run with the same loads on which your
production systems operate because, otherwise, you wont
catch everything.
New Orleans-based Tidewater Marine tests its DR sys-
tems annually, but when the company put its DR site under
load, it found that the architecture was insufficient to handle
the load, explains John Chaffe, director of IT. We did not
originally build the DR SAN to the exact specifications of
the live SAN, he acknowledges.
Another lesson learned. 3
DAtA ProteCtion
Please send your comments and questions on this
TechKnow article to editors@baselinemag.com.
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Watered Down Data
Can the island nation of Mauritius become an international data center hub? (A question thats
surely been on all of our minds.) Economic development officials in this island chain in the western
Indian Ocean believe that it can, by connecting Africa, Asia and the Middle East, according to an
article on DatacenterKnowledge.com (www.datacenterknowledge.com/archives/2009/09/21/
mauritius-pitches-sea-cooled-data-centers/).
A key part of that pitch is the ocean itself and its potential to help data center operators slash
their cooling costs, writes Datacenter Knowledge. It seems that the country has plans to develop
something called sea water air conditioning (SWAC) to tap into deep, cold water currents that
come within two miles of the island. This cold water will then be piped back to a data center
complex, where it will be used as the main cooling system, obviating the need for more power-
hungry chillers.
According to the article, the SWAC concept is not unique to MauritiusCornell University, in
Ithaca, N.Y., uses water from Lake Cayuga for data center coolingso its a mature technology, says
Steve Wallage of the Broad Group, a U.K. consultancy
focused on the data center sector. You tend to
have a high up-front cost in the pipe work, he
says, but the long-term saving is in the 75 percent
to 90 percent range on the cooling build.
We wish Mauritius the best, for, as we know,
still, cold waters run cheap.
BY
TIM
MORAN
$350
Billion
The potential cost of upgrading the
U.S. broadband infrastructure,
according to the FCC, which is
crafting a national broadband plan
aimed at increasing usage in both
rural and urban areas.
Source: www.reuters.com
BY THE NUMBERS
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A (Digital) Bugs Life
Cyber-security threats are no picnic, for sure, but if
researchers are successful, ants will come to the rescue in
protecting computer networks from intruders. Digital ants, that is.
According to a recent story from Help Net Security (HNS) (www.net-security.org/secworld.
php?id=8195), security experts are deploying a new defense modeled after one of natures
hardiest creaturesthe ant. HNS explains that unlike traditional security devices, which are
static, these digital ants wander through computer networks looking for threats, such as
computer worms. ... When a digital ant detects a threat, it doesnt take long for an army of
ants to converge at that location, drawing the attention of human operators who step in to
investigate.
Wake Forest Professor of Computer Science Errin Fulp, an expert in security and computer
networks, believes this concept of swarm intelligence can transform the nature of cyber-
security because it can quickly adapt to ever-changing threats. Glenn Fink, a research scientist at
Pacific Northwest National Laboratory in Richland, Wash., came up with the idea of copying ant
behavior. PNNL, one of 10 Department of Energy laboratories, conducts cutting-edge research
in cyber-security, and Fink teamed up with Fulp to join a project at PNNL that tested digital ants
on a network of 64 computers. In that study, Fulp introduced a worm into the network, and the
digital ants successfully found it.
According to Fulp, the digital-ants concept will work best in large networks with many similar
machines. But can the ants get out of control and cause unwanted damage? No worry, say the
researchers. Software sentinels located at each machine report to network sergeants that are
monitored by humans, who supervise the colony and maintain ultimate control.
Just dont go getting potato chip crumbs all over the keyboard. You never know.
Heavy Calculations
Do you know your BMIbody mass
index? George Fernandez, a professor of
applied statistics and director of the Center
for Research Design and Analysis at the
University of Nevada, Reno, is pretty sure you
dontor, at least, that you dont know how
to figure it out. Thats why, according to an
article on the universitys Nevada News site
(www.unr.edu/nevadanews/templates/details.
aspx?articleid=5168&zoneid=8), he decided
the world needed an alternative to weight in
pounds is multiplied by 703 and then divided
by height in inches squared.
Fernandez fired up some SAS software
and devised a simpler way of calculating a
maximum weight limit. Theres a baseline
height and weight: 5 feet, 9 inches and
175 pounds for men, 5 feet and 125
pounds for women. The article explains
that, from that starting point, you
calculate how much taller or shorter
you are, in inches. If youre a man,
you add or subtract 5 pounds
for every inch you are taller or
shorter than 5 feet, 9 inches.
Women add or subtract 4.5
pounds for each inch over
or under 5 feet.
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