Women in business leadership — networking their way to success

The next BriefingsDirect digital business insights panel discussion focuses on the evolving role of women in business leadership. We’ll explore how pervasive business networks are impacting relationships and changes in business leadership requirements and opportunities for women.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: SAP Ariba.

To learn more about the transformation of talent management strategies as a result of digital business and innovation, please join me in welcoming our guests, Alicia Tillman, Chief Marketing Officer at SAP Ariba, and Lisa Skeete Tatum, Co-founder and CEO of Landit in New York. The panel was recorded in association with the recent 2017 SAP Ariba LIVE conference in Las Vegas, and is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Alicia, looking at a confluence of trends, we have the rise of business networks and we have an advancing number of women in business leadership roles. Do they have anything to do with one another? What’s the relationship?

Tillman: It is certainly safe to say that there is a relationship between the two. Networks historically connected businesses mostly from a transactional standpoint. But networks today are so much more about connecting people. And not only connecting them in a business context, but also from a relationship-standpoint as well.

Alicia Tillman

Tillman

There is as much networking and influence that happens in a digital network as  does from meeting somebody at an event, conference or forum. It has really taken off in the recent years as being a way to connect quickly and broadly — across geographies and industries. There is nothing that brings you speed like a network, and that’s why I think there is such a strong correlation to how digital networking has taken off — and what a true technical network platform can allow.

Gardner: When people first hear “business networks,” they might think about transactions and applications talking to applications. But, as you say, this has become much broader in the last few years; business networks are really about social interactions, collaboration, and even joining companies culturally.

How has that been going? Has this been something that’s been powerful and beneficial to companies?

Tillman: It’s incredibly powerful and beneficial. If you think about how buying habits are these days, buyers are very particular about the goods that they are interested in, and, frankly, the people that they source from.

If I look at my buying population in particular at SAP Ariba, there is a tremendous movement toward sustainable goal or fair-trade types of responsibilities, of wanting to source goods from minority-owned businesses, wanting to source only organic or fair-trade products, wanting to only partner with organizations where they know within their supply chain the distribution of their product is coming from locations in the world where the working conditions are safe and their employees are being paid fairly.

A network allows for that; the SAP Ariba Network certainly allows for that, as we can match suppliers directly with what those incredibly diverse buyer needs are in today’s environment.

Gardner: Lisa, we just heard from Alicia about how it’s more important that companies have a relationship with one another and that they actually look for culture and character in new ways. Tell us about Landit, and how you’re viewing this idea of business networks changing the way people relate to their companies and even each other?

Skeete Tatum: Our goal at Landit is to democratize career success for women around the globe. We have created a technology platform that not only increases the success and engagement of women in the workplace, but it also enables companies in this new environment to attract, develop, and retain high-potential diverse talent.

Our goal at Landit is to democratize career success for women around the globe.

Lisa Skeete Tatum

Skeete Tatum

We do that by providing each woman with the personalized playbook in the spirit of one-size-fits-one. That empowers them with the access to the tools, the resources, the know-how, and, yes, the human connections that they need to more successfully navigate their paths.

It’s really in response to the millions of women who will find themselves at an inflection point; whether they are in a company that they love but are just trying to figure out how to more successfully navigate there, or they may be feeling a little stuck and are not sure how to get out. The challenge is: “I am motivated, I have the skills, I just don’t know where to start.”

We have really focused on knitting what we believe are those key elements together — leveraged by technology that actually guides them. But we find that companies in this new environment are often overwhelmed and trying to figure out a way to manage this new diverse workforce in this era of connectedness. So we give them a turnkey, one-size-fits-one solution, too.

As Alicia mentioned, in this next stage of collaborative businesses, there are really two things. One, we are more networked and more visible than ever before, which is great, because it’s created more opportunities and flexibility than we have seen — not to mention more access. However, those opportunities are highly dependent on how someone showcases their value, their contribution, and their credibility, which makes it even more important to cultivate not only your brand and your network. It goes beyond just individual capabilities of getting at what is the sponsorship in the support of a strong network.

The second thing I would say, that Alicia also mentioned, is that today’s business environment — which is more global, more diverse in its tapestry — requires businesses to create an environment where everyone feels valued. People need to feel like they can bring the full measure of their talent and passion to the workplace. Companies want amazing talent to find a place at their company.

Gardner: If I’m at a company looking to be more diverse, how would I use Landit to accomplish that? Also, if I were an individual looking to get into the type of company that I want to be involved with, how would I use Landit?

Connecting supply and demand for talent

Skeete Tatum: As an individual, when you come on to Landit, we actually give you one of the key ingredients for success. Because we often don’t know what we don’t know, we knit together the first step, of “Where do I fit?” If you are not in a place that fits with your values, it’s not sustainable.

So we help you figure out what is it that fits with “all of me,” and we then connect you to those opportunities. Many times with diversity programs, they are focused just on the intake, which is just one component. But you want people to thrive when they get there.

Many times with diversity programs, they are focused just on the intake, which is just one component. But you want people to thrive when they get there.

And so, whether it is building your personal brand or building your board of advisors or continuing with your skill development in a personalized, relevant way — or access to coaching because often many of us don’t have that unless we are in the C-suite on the way — we are able to knit that together in a way that is relevant, that’s right-sized for the individual.

For the company, we give them a turnkey solution to invest in a scalable way, to touch more lives across their company, particularly in a more global environment. Rather than having to place multiple bets, they place one bet with Landit. We leverage that one-size-fits-one capability with things that we all know are keys to success. We are then able to have them deliver that again, whether it is to the newly minted managers or people they have just acquired or maybe they are leaders that they want to continue to invest in. We enable them to do that in a measurable way, so that they can see the engagement and the success and the productivity.

Gardner: Alicia, I know that SAP Ariba is already working to provide services to those organizations that are trying to create diversity and inclusion within their supply chains. How do you see Landit fitting into the business network that SAP Ariba is building around diversity?

Tillman: First, the SAP Ariba Network is the largest business to business (B2B) network on the planet. We connect more than 2.5 million companies that transact over $1 trillion in commerce annually. As you can imagine, there is incredible diversity in the buying requirements that exist amongst those companies that are located in all parts of the world and work in virtually every industry.

One of things that we offer as an organization is a Discovery tool. When you have a network that is so large, it can be difficult and a bit daunting for a buyer to find the supplier that meets their business requirements, and for a supplier to find their ideal buyer. So our SAP Ariba Discovery application is a matching service, if you will, that enables a buyer to list their requirements. You then let the tool work for you to allow matching you to suppliers that most meet your requirements, whatever they may be.

I’m very proud to have Lisa present at our Women in Leadership Forum at SAP AribaLIVE 2017. I am showcasing Lisa not only because of her entrepreneurial spirit and the success that she’s had in her career — that I think will be very inspirational and motivational to women who are looking to continue to develop their careers — but she has also created a powerful platform with Landit. For women, it helps provide a digital environment that allows them to harness precisely what it is that’s important to them when it comes to career development, and then offers the coaching in the Landit environment to enable that.

For women, it helps provide a digital environment that allows them to harness precisely what it is that’s important to them when it comes to career development.

Landit also offers companies an ability to support their goals around gender diversity. They can look at the Landit platform and source talent that is not only very focused on careers — but also supports a company in their diversity goals. It’s a tremendous capability that’s necessary and needed in today’s environment.

Gardner: Lisa, what has changed in the past several years that has prompted this changed workforce? We have talked about the business network as an enabler, and we have talked about social networks connecting people. But what’s going to be different about the workforce going forward?

Collaborative visibility via networking

Skeete Tatum: There are three main things. First, there is a recognition that diversity is not a “nice to have,” it’s a “must-have” from a competitive standpoint; to acquire the best ideas and gain a better return on capital. So it’s a business imperative to invest in and value diversity within one’s workforce. Second, businesses are continuing to shift toward matching opportunities with the people who are best able to do that job, but in a less-biased way. Thirdly, business-as-usual isn’t going to work in this new reality of career management.

Business-as-usual isn’t going to work in this new reality of career management.

It’s no longer one- or bi-directional, where it’s just the manager or the employee. It’s much more collaborative and driven by the individual. And so all of these things … where there is much more opportunity, much more freedom. But how do you anchor that with a problem and a framework and a connectivity that enables someone to more successfully navigate the new environment and new opportunities? How do you leverage and build your network?  Everyone knows they need to do it, but many people don’t know how to do it. Or when your brand is even more important, visibility is more important, how do you develop and communicate your accomplishments and your value? It is the confluence of those things coming together that creates this new world order.

Gardner: Alicia, one of the biggest challenges for most businesses is getting the skills that they need in a timely fashion. How do we get past the difficulty of best matching hiring?  How do we use business networks to help solve that?

Tillman: This is the beauty of technology. Technology is an enabler in business to form relationships more quickly, and to transact more quickly. Similarly, technology also provides a network to help you grow from a development standpoint. Lisa’s organization, Landit, is one example of that.

Within SAP Ariba we are very focused on closing the gap in gaining the skills that are necessary to be successful in today’s business environment. I look at the offering of SAP SuccessFactors – which is  focused on empowering the humancapital management (HCM) organization to lead performance management and career development. And SAP Fieldglass helps companies find and source the right temporary labor that they need to service their most pressing projects. Combine all that with a business network, and there is no better place in today’s environment to find something you need — and find it quickly.

But it all comes down to the individual’s desire to want to grow their skills, or find new skills, to get out of their comfort zone and try something new. I don’t believe there is a shortage of tools or applications to help enable that growth and talent. It comes down to the individual’s desire to want to grab it and go after it.

Maximize your potential with technology

Skeete Tatum: I couldn’t agree more. The technology and the network are what create the opportunity. In the past, there may have been a skills gap, but you have to be able to label it, you have to be able to identify it in a way that is relevant to the individual. As Alicia said, there are many opportunities out there for development, but how do you parse that down and deliver it to the individual in a way that is relevant — and that’s actionable? That’s where a network comes in and where the power of one can be leveraged in a scalable way.

Now is probably one of the best times to invest in and have an individual grow to reach their full potential. The desire to meet their goals can be leveraged by technology in a very personal way.

Gardner: As we have been hearing here at SAP Ariba LIVE 2017, more-and-more technologies along the lines of artificial intelligence (AI) and machine learning (ML) – are taking advantage of all the data and analyzing it and making it actionable — can now be brought to bear on this set of issues of matching workforce requirements with skill sets.

Where should we expect to see these technologies reduce the complexity and help companies identify the right workforce, and the workforce identify the right companies?

Skeete Tatum: Having the data and being able to quantify and qualify it gives you the power to set a path forward. The beauty is that it actually enables everyone to have the opportunity to contribute, the opportunity to grow, and to create a path and a sense of belonging by having a way to get there. From our perspective, it is that empowerment and that ownership — but with the support of the network from the overall organization — that enables someone to move forward. And it enables the organization to be more successful and more embracing of this new workforce, this diverse talent.

Tillman: Individuals should feel more empowered today than ever before to really take their career development to unprecedented levels. There are so many technologies, so many applications out there to help coach you on every level. It’s up to the individual to truly harness what is standing in front of them and to really grab hold of it — and use it to their advantage to reach their career goal.

Gardner: Lisa, what should you be thinking about from a personal branding perspective when it comes to making the best use of tools like Landit and business networks?

Skeete Tatum: The first thing is that people actually have to think of themselves as a brand, as opposed to thinking that they are bragging or being boastful. The most important brand you have is the brand of you.

Second, people have to realize that this notion of building your brand is something that you nurture and it develops over time. What we believe is important is that we have to make it tangible, we have to make it actionable, and we have to make it bite-size, otherwise it seems overwhelming.

So we have defined what we believe are the 12 key elements for anyone to have a successful brand, such as have you been visible, do you have a strategic plan of you, are you seeking feedback, do you have a regular cadence of interaction with your network, et cetera. Knowing what to do and how to do it and at what cadence and at what level is what enables someone to move forward. And in today’s environment, again, it’s even more important.

Pique their curiosity by promoting your own

Tillman: Employers want to be sure that they are attracting candidates and employing candidates that are really invested in their own development. An employer operates in the best interest of the employee in terms of helping to enable tools and allow for that development to occur. At the same time, where candidates can really differentiate themselves in today’s work environment is when they are sitting across the table and they are in that interview. It’s really important for a candidate to talk about his or her own development and what are they doing to constantly learn and support their curiosity.

Employers want curious people. They want those that are taking advantage of development and tools and learning, and these are the things that I think set people apart from one another when they know that individually they are going to go after learning opportunities and push themselves out of their comfort zone to take themselves – and ultimately the companies that employ them – to the next level.

Gardner: Before we close out, let’s take a peek into the crystal ball. What, Alicia, would be your top two predictions given that we are just on sort of an inflection point with this new network, with this new workforce and the networking effect for it?

Tillman: First, technology is only going to continue to improve. Networks have historically enabled buyers and sellers to come together and transact to build their organizations and support growth, but networks are taking on a different form.

Technology is going to continue to enable priorities professionally and priorities personally. Technology is going to become a leading enabler of a person’s professional development.

Second, individuals are going to set themselves apart from others by their desire and their hunger to really grab hold of that technology. When you think about decision-making among companies in terms of candidates they hire and candidates they don’t, employers are going to report back and say, “One of the leading reasons why I selected one candidate over another is because of their desire to learn and their desire to grab hold of technologies and networks that were standing in front of them to bring their careers to an unprecedented level.”

Gardner: Lisa, what are your top two predictions for the new workforce and particularly for diversity playing a bigger role?

Skeete Tatum: Technology is the ultimate leveler of the playing field. It enables companies as well as the individual to make decisions based on things that matter. That is what enables people to bring their full selves, the full measure of their talent, to the workplace.

In terms of networks in particular, they have always been a key element to success but now they are even more important. It actually poses a special challenge for diverse talent. They are often not part of the network, and they may have competing personal responsibilities that make the investment of the time and the frequency in those relationships a challenge.

Sometimes there is a discomfort with how to do it. We believe that through technology people will have to get comfortable with being uncomfortable. They need to learn not only how to codify their network, but also have the right access to the right person with the right cadence, and access to that know how, that guidance, can be delivered through technology.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: SAP Ariba.

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The next line of defense—How new security leverages virtualization to counter sophisticated threats

When it comes to securing systems and data, the bad guys are constantly upping their games — finding new ways to infiltrate businesses and users. Those who protect systems from these cascading threats must be ever vigilant for new technical advances in detection and protection. In fact, they must out-innovate their assailants.

The next BriefingsDirect security insights discussion examines the relationship between security and virtualization. We will now delve into how adaptive companies are finding ways to leverage their virtualization environments to become more resilient, more intelligent, and how they can protect themselves in new ways.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

To learn how to ensure that virtualized data centers do not pose risks — but in fact prove more defensible — we are joined by two security-focused executives, Kurt Roemer, Chief Security Strategist at Citrix, and Harish Agastya, Vice President for Enterprise Solutions at Bitdefender. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Kurt, virtualization has become widespread and dominant within data centers over the past decade. At that same time, security has risen to the very top of IT leadership’s concerns. What is it about the simultaneous rise of virtualization and the rise of security concerns? Is there any intersection? Is there any relationship that most people may miss?

Roemer: The rise of virtualization and security has been concurrent. A lot of original deployments for virtualization technologies were for remote access, but they were also for secure remote access. The apps that people needed to get access to remotely were usually very substantial applications for the organization —  things like order processing or partner systems; they might have been employee access to email or internal timecard systems. These were things that you didn’t really want an attacker messing with — or arbitrary people getting access to.

Roemer.Kurt (1)

Roemer

Security has grown from just providing basic access to virtualization to really meeting a lot of the risks of these virtualized applications being exposed to the Internet in general, as well as now expanding out into the cloud. So, we have had to grow security capabilities to be able to not only keep up with the threat, but try to keep ahead of it as well.

Gardner: Hasn’t it historically been true that most security prevention technologies have been still focused at the operating system (OS)-level, not so much at the virtualization level? How has that changed over the past several years?

Roemer: That’s a good question. There have been a lot of technologies that are associated with virtualization, and as you go through and secure and harden your virtual environments, you really need to do it from the hardware level, through the hypervisor, through the operating system level, and up into the virtualization system and the applications themselves.

We are now seeing people take a much more rigorous approach at each of those layers, hardening the virtualization system and the OS and integrating in all the familiar security technologies that we’re used to, like antivirus, but also going through and providing for application-specific security.

So if you have a SAP system or something else where you need to protect some very sensitive company data and you don’t want that data to be accessed outside the office arbitrarily, you can provide very set interfaces into that system, being able to control the clipboard or copy and paste, what peripherals the application can interface with; i.e., turn off the camera, turn off the microphone if it’s not needed, and even get down to the level of with the browser, whether things like JavaScript is enabled or Flash is available.

So it helps to harden the overall environment and cut down on a lot of the vulnerabilities that would be inherent by just leaving things completely wide open. One of the benefits of virtualization is that you can get security to be very specific to the application.

Gardner: Harish, now that we are seeing this need for comprehensive security, what else is it that people perhaps don’t understand that they can do in the virtualization layer? Why is virtualization still uncharted territory as we seek to get even better security across the board?

Let’s get better than physical

Agastya: Customers often don’t realize when they are dealing with security in physical or virtual environments. The opportunities that virtual environments provide to them are to have the ability to take security to a higher level than physical-only. So better than physical is, I think, a key value proposition that they can benefit from — and the technology innovation of today has enabled that.

Harish Agastya

Agastya

There is a wave of innovation among security vendors in this space. How do we run resource-intensive security workloads in a way that does not compromise the service-level agreements (SLAs) that those information technology operations (IT Ops) administrators need to deliver?

There is a lot of work happening to offload security-scanning mechanisms on to dedicated security virtual appliances, for example. Bitdefender has been working withpartners like Citrix to enable that.

Now, the huge opportunity is to take that story further in terms of being able to provide higher levels of visibility, detection, and prevention from the attacks of today, which are advanced persistent threats. We seek to detect how they manifest in the data center and — in a virtual environment — what you have the opportunity to do, and how you can respond. That game is really changing now.

Gardner: Kurt, is there something about the ability to spin up virtualized environments, and then take them down that provides a risk that the bad guys can target or does that also provide an opportunity to start fresh: To eliminate vulnerabilities, or learn quickly and adapt quickly? Is there something about the rapid change that virtualization enables that is a security plus?

Persistent protection anywhere

Roemer: You really hit on the two sides of the coin. On one side, virtualization does oftentimes provide an image of the application or the applications plus OS that could be fairly easy for a hacker to steal and be able to spin up offline and be able to get access to secrets. So you want to be able to protect your images, to make sure that they are not something that can be easily stolen.

On the other side, having the ability to define persistence — what do you want to have to persist between reboots versus what’s non-persistent — allows you to have a constantly refreshed system. So when you reboot it, it’s exactly back to the golden image — and everything is as it should be. As you patch and update you are working with a known quantity as opposed to the endpoint where somebody might have administrative access and it has installed personal applications and plug-ins to their browser and other things like that that you may or may not want to have in placer.

The nice thing with virtualization is that it’s independent of the OS, the applications, the endpoints, and the varied situations that we all access our apps and data from.

Layering also comes into play and helps to make sure that you can dynamically layer in applications or components of the OS, depending on what’s needed. So if somebody is accessing a certain set of functionality in the office, maybe they have 100% functionality. But when they go home, because they are no longer in a trusted environment or maybe not working on a trusted PC from their home system, they get a degraded experience, seeing fewer applications and having less functionality layered onto the OS. Maybe they can’t save to local drives or print to local printers. All of that’s defined by policy. The nice thing with virtualization is that it’s independent of the OS, the applications, the endpoints, and the varied situations that we all access our apps and data from.

Gardner: Harish, with virtualization that there is a certain level of granularity as to how one can manage their security environment parameters. Can you expand on why having that granular capability to manage parameters is such a strong suit, and why virtualization is a great place to make that happen?

On the move, virtually

Agastya: That is one of the opportunities and challenges that security solutions need to be able to cope with.

As workloads are moving across different subgroups, sub-networks, that virtual machine (VM) needs to have a security policy that moves with it. It depends on what type of application is running, and it is not specific to the region or sub-network that that particular VM is resident on. That is something that security solutions that are designed to operate in virtual environments have the ability to do.

Security moves with the workload, as the workload is spawned off and new VMs are created. The same set of security policies associated with that workload now can protect that workload without needing to have a human step in and determine what security posture needs to belong to that VM.

See the IDC White Paper, Hypervisor Introspection: A Transformative Approach to Advanced Attack Detection.

That is the opportunity that virtualization provides. But it’s also a challenge. For example, maybe the previous generations of solutions predated all of this. We now need to try and address that.

We love the fact that virtualization is happening and that it has become a very elastic software-defined mechanism that moves around and gives the IT operations people so much more control. It allows an opportunity to be able to sit very well in that environment and provide security that works tightly integrated with the virtualization layer.

Gardner: I hear this so much these days that IT operations people are looking for more automation, and more control.

Kurt, I think it’s important to understand that when we talk about security within a virtualization layer, that doesn’t obviate the value of security that other technologies provide at the OS level or network level. So this isn’t either-or, this is an augmentation, isn’t that correct, when we talk about virtualization and security?

The virtual focus

Roemer: Yes, that’s correct. Virtualization provides some very unique assets that help extend security, but there are some other things that we want to be sure to focus on in terms of virtualization. One of them is Bitdfender Hypervisor Introspection (HVI). It’s the ability for the hypervisor to provide a set of direct inspect application programming interfaces (APIs) that allow for inspection of guest memory outside of the guest.

When you look at Windows or Linux guests that are running on a hypervisor, typically when you have tried to secure those it’s been through technology installed in the guest. So you have the guest that’s self-protecting, and they are relying on OS APIs to be able to effect security. Sometimes that works really well and sometimes the attackers get around OS privileges and are successful, even with security solutions in place.

One of the things that HVI does is it looks for the techniques that would be associated with an attack against the memory of the guest from outside the guest. It’s not relying on the OS APIs and can therefore catch attacks that otherwise would have slipped past the OS-based security functionality.

Gardner: Harish, maybe you can tell us about how Citrix and Bitdefender are working together?

Step into the breach, together

Agastya: The solution is Bitdefender HVI. It works tightly with Citrix’s XenServer hypervisor, and it has been available in a controlled release for the last several months. We have had some great customer traction on it. At Citrix Synergy this year wewill be making that solution generally available.

We have been working together for the last four years to bring this groundbreaking technology to the market.

What is the problem we are trying to solve? It is the issue of advanced attacks that hit the data center when, as Kurt mentioned, advanced attackers are able to skirt past endpoint security defense mechanisms by having root access and operating at the same level of privilege as the endpoint security that may be running within the VM.

They can then essentially create a blind spot where the attackers can do anything they want while the endpoint security solution continues to run.

See the IDC White Paper, Hypervisor Introspection: A Transformative Approach to Advanced Attack Detection.

These types of attacks stay in the environment and the customer suffers on average 200 days before a breach is discovered. The marketplace is filled with stories like this and it’s something that we have been working together with Citrix to address.

The fundamental solution leverages the power of the hypervisor to be able to monitor attacks that modify memory. It does that by looking for the common attack mechanisms that all these attackers use, whether it’s buffer overflows or it’s heap spraying, the list goes on.

They all result in memory modification that the endpoint security solution within the VM is blinded to. However, if you are leveraging the direct inspect APIs that Kurt talked about — available as part of Citrix’s XenServer solution – then we have the ability to look into that VM without having a footprint in there. It is a completely agentless solution that runs outside the security virtual appliance. It monitors all of the VMs in the data center against these types of attacks. It allows you to take action immediately, reduces the time to detection and blocks the attack.

Gardner: Kurt, what are some of the major benefits for the end-user organization in deploying something like HVI? What is the payback in business terms?

Performance gains

Roemer: Hypervisor Introspection, which we introduced in XenServer 7.1, allows an organization to deploy virtualization with security technologies behind it at the hypervisor level. What that means for the business is that every guest you bring up has protection associated with it. Even if it’s a new version of Linux that you haven’t previously tested and you really don’t know which antivirus you would have integrated with it; or something that you are working on from an appliance perspective — anything that can run on XenServer would be protected through these direct inspect APIs, and the Bitdefender HVI solution. That’s really exciting.

It also has performance benefits because you don’t have to run antivirus in every guest at the same level. By knowing what’s being protected at the hypervisor level, you can configure for a higher level of performance.

Now, of course, we always recommend having antivirus in guests, as you still have file-based access and so you need to look for malware, and sometimes files get emailed in or out or produced, and so having access to the files from an anti-malware perspective is very valuable.

So for the business, HVI gives you higher security, it gives you better performance, and the assurance that you are covered.

But you may need to cut down some of the scanning functionality and be able to meet much higher performance objectives.

Gardner: Harish, it sounds like this ability to gain introspection into that hypervisor is wonderful for security and does it in such a way that it doesn’t degrade performance. But it seems to me that there are also other ancillary benefits in addition to security, when you have that ability to introspect and act quickly. Is there more than just a security benefit, that the value could go quite a bit further?

The benefits of introspection

Agastya: That’s true. The ability to introspect into memory has huge potential in the market. First of all, with this solution right now, we address the ability to detect advanced attacks, which is a very big problem in the industry — where you have everything from nation-sponsored attacks to deep dark web, malicious components, attack components available to common citizens who can do bad things with them.

The capability to reduce that window to advanced attack detection is huge. But now with the power of introspection, we also have the ability to inject, on the fly, into the VM, additional solutions tools that can do deep forensics, measure network operations and the technology can expand to cover more. The future is bright for where we can take this between our companies.

Gardner: Kurt, anything to add on the potential for this memory introspection capability?

Specific, secure browsers

Roemer: There are a couple things to add. One is taking a look at the technologies and just rolling back through a lot of the exploits that we have seen, even throughout the last three months. There have been exploits against Microsoft Windows, exploits against Internet Explorer and Edge, hypervisors, there’s been EternalBlue and the Server Message Block (SMB) exploits. You can go back and be able to try these out against the solution and be able to see exactly how it would catch them, and what would have happened to your system had those exploits actually taken effect.

If you have a team that is doing forensics and trying to go through and determine whether systems had previously been exploited, you are giving that team additional functionality to be able to look back and see exactly how the exploits would have worked. Then they can understand better how things would have happened within their environment. Because you are doing that outside of the guest, you have a lot of visibility and a lot of information you otherwise wouldn’t have had.

One big expanded use-case here is to get the capability for HVI between Citrix and Bitdefender in the hands of your security teams, in the hands of your forensics teams, and in the hands of your auditors — so that they can see exactly what this tool brings to the table.

See the IDC White Paper, Hypervisor Introspection: A Transformative Approach to Advanced Attack Detection.

Something else you want to look at is the use-case that allows users to expand what they are doing and makes their lives easier — and that’s secured browsing.

Today, when people go out and browse the Internet or hit a popular application like Facebook or Outlook Web Access — or if you have an administrator who is hitting an administrative console for your Domain Name System (DNS) environment, your routers, your Cisco, Microsoft environments, et cetera, oftentimes they are doing that via a web browser.

One big expanded use-case here is to get the capability for HVI between Citrix and Bitdefender in the hands of your security teams.

Well, if that’s the same web browser that they use to do everything else on their PC, it’s over-configured, it presents excessive risk, and you now have the opportunity with this solution to publish browsers that are very specific to each use.

For example, you publish one browser specifically for administrative access, and you know that you have advanced malware detection. Even if somebody is trying to target your administrators, you are able to thwart their ability to get in and take over the environments that the administrators are accessing.

As more things move to the browser — and more very sensitive and critical applications move to the cloud — it’s extremely important to set up secured browsing. We strongly recommend doing this with XenServer and HVI along with Bitdefender providing security.

Agastya: The problem in the market with respect to the human who is sitting in front of the browser being the weakest link in the chain is a very important one. Many, many different technology approaches have been taken to address this problem — and most of them have struggled to make it work.

The value of XenApp coming in with its secured browser model is this: You can stream your browser and you are just presenting, rendering an interface on the client device, but the browser is actually running in the backend, in the data center, running on XenServer, protected by Bitdefender HVI. This model not only allows you to shift the threat away from the client device, but also kill it completely, because that exploit which previously would have run on the client device is not on the client device anymore. It’s not even on the server anymore because HVI has gotten to it and stopped it.

Roemer: I bring up the browser benefit as an example because when you think of the lonely browser today, it is the interface to some of your most critical applications. A browser, at the same time, is also connected to your file system, your network, your Windows registry, your certificate chain and keys — it’s basically connected to everything you do and everything you have access to in most OSes.

What we are talking about here is publishing a browser that is very specific to purpose and configured for an individual application. Just put an icon out there, users click on it and everything works for them silently in the background. By being able to redirect hyperlinks over to the new joint XenServer-Bitdefender solution, you are not only protecting against known applications and things that you would utilize — but you can also redirect arbitrary links.

Even if you tell people, “don’t click on any links”, you know every once in a while it’s going to happen. When that one person clicks on the link and takes down the entire network, it’s awful. Ransomware attacks happen like that all the time. With this solution, that arbitrary link would be redirected over to a one-time use browser. Bitdefender would come up and say, “Hey, yup, there’s definitely a problem here, we are going to shut this down,” and the attack never would have had a chance to get anywhere.

What we are talking about here is publishing a browser that is very specific to purpose and configured for an individual application.

The organization is notified and can take additional remediatative actions. It’s a great opportunity to really change how people are working and take this arbitrary link problem and the ransomware problem and neutralize it.

Gardner: It sounds revolutionary rather than evolutionary when it comes to security. It’s quite impressive. I have learned a lot in just the last week or two in looking into this. Harish, you mentioned earlier that before the general availability being announced in May for Bitdefender HVI on XenServer that you have had this in beta. Do you have any results from that? Can you offer any metrics of what’s happened in the real world when people deploy this? Are the results as revolutionary as it sounds?

Real-world rollout

Agastya: The product was first in beta and then released in controlled availability mode, so the product is actually in production deployment at several companies in both North America and Europe. We have a few financial services companies, and we have some hospitals. We have put the product to use in production deployments for virtual desktop infrastructure (VDI) deployments where the customers are running XenApp and XenDesktop on top of XenServer with Bitdefender HVI.

We have server workloads running straight on XenServer, too. These are typically application workloads that the financial services companies or the hospitals need to run. We have had some great feedback from them. Some of them have become references as well, and we will be talking more about it at Citrix Synergy 2017, so stay tuned. We are very excited about the fact that the product is able to provide value in the real world.

Roemer: We have a very detailed white paper on how to set up the secured browsing solution, the joint solution between Citrix and Bitdefender. Even if you are running other hypervisors in your environment, I would recommend that you set up this solution and try redirecting some arbitrary hyperlinks over to it, to see what value you are going to get in your organization. It’s really straightforward to set up and provides a considerable amount of additional security visibility.

See the IDC White Paper, Hypervisor Introspection: A Transformative Approach to Advanced Attack Detection.

Bitdefender also has some really amazing videos that show exactly how the solution can block some of the more popular exploits from this year. They are really impressive to watch.

Gardner: Kurt, we are about out of time, but I was curious, what’s the low-lying fruit? Harish mentioned government, VDI, healthcare. Is it the usual suspects with compliance issues hanging over their heads that are the low-lying fruit, or are there other organizations that would be ripe to enjoy the benefits?

Roemer: I would say compliance environments and anybody with regulatory requirements would very much be low-lying fruit for this, but anybody who has sensitive applications or very sensitive use-cases, too. Oftentimes, we hear things like outsourcing as being one of the more sensitive use-cases because you have external third parties who are getting in and either developing code for you, administering part of the operating environment, or something else.

We have also seen a pretty big uptick in terms of people being interested in this for administering the cloud. As you move up to cloud environments and you are defining new operating environments in the cloud while putting new applications up in the cloud, you need to make sure that your administrative model is protected.

Oftentimes, you use a browser directly to provide all of the security interfaces for the cloud, and by publishing that browser and putting this solution in front of it, you can make sure that malware is not interrupting your ability to securely administer the cloud environment.

Gardner: Last question to you, Harish. What should organizations do to get ready for this? I hope we have enticed them to learn more about it. For those organizations that actually might want to deploy, what do they need to think about in order to be in the best position to do that?

A new way of life

Agastya: Organizations need to think aboutsecure virtualization as a way of life within organizational behavior. As a result, I think we will start to see more people with titles like Security DevOps (SecDevOps).

As far as specifically using HVI, organizations should be worried about how advanced attacks could enter their data center and potentially result in a very, very dangerous breach and the loss of confidential intellectual property.

If you are worried about that, you are worried about ransomware because an end-user sitting in front of a client browser is potentially putting out your address. You will want to think about a technology like HVI. The first step for that is to talk to us and there is a lot of information on the Bitdefender website as well as on Citrix’s website.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Bitdefender.

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Posted in application transformation, big data, Bitdefender, Citrix, Cloud computing, Cyber security, data analysis, data center, DevOps, Enterprise architect, enterprise architecture, Enterprise transformation, Government, Identity, risk assessment, Security, Virtualization | Tagged , , , , , , , , , , , , | Leave a comment

SAP Ariba and MercadoLibre to consumerize business commerce in Latin America

The next BriefingsDirect global digital business panel discussion explores how the expansion of automated tactical buying for business commerce is impacting global markets, and what’s in store next for Latin America.

We’ll specifically examine how “spot buy” approaches enable companies to make time-sensitive and often mission-critical purchases, even in complex and dynamic settings, like Latin America.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

To learn more about the rising tide of such tactical business buying improvements, please join our guests, Karen Bruck, Corporate Sales Director at MercadoLibre.com in Buenos Aires, Argentina; Diego Cabrera Canay, Director of Financial Planning at MercadoLibre, and Tony Alvarez, General Manager of SAP Ariba‘s Spot Buy Business. The panel was recorded at the recent 2017 SAP Ariba LIVE conference in Las Vegas, and is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: SAP Ariba Spot Buy has been in the market a few years. Tell us about where it has rolled out so far, why certain markets are being approached, and then about Latin America specifically.

Alvarez: The concept is a few years old, but we’ve been delivering SAP Ariba Spot Buy for about a year. We began in the US, and over the past 12 months the concept of Spot Buy has progressed because of our customer base. Our customer base has pushed us in a direction that is, quite frankly, even beyond Spot Buy — and it’s getting into trusted, vetted content.

Tony Alvarez

Alvarez

We are approaching the market with a two-pronged strategy of, yes, we have the breadth of content so that when somebody goes into an SAP Ariba application they can find what they are looking for, but we also now have parameters and controls that allow them to vet that content and to put a filter on it.

Over the last 12 months, we’ve come a long way. We are live in the US, and with early access in the UK and Germany. We just went live in Australia, and now we are very much looking forward to going live and moving fast into Latin America with MercadoLibre.

Gardner: Spot buying, or tactical buying, is different from strategic or more organized long-term buying. Tell us about this subset of procurement.

Alvarez: SAP Ariba is a 20 year-old company, and its roots are in that rigorous, sourced approach. We do hundreds of billions of dollars through contract catalog on the Ariba Network, but there’s a segment — and we believe it’s upward of 15% of spend — that is spot buy spend. The procurement professional often has no idea what’s being bought. And I think there are two approaches to that — either ignorance is bliss and they are glad that it’s out of their purview, or it also keeps them up at night.

SAP Ariba Spot Buy allows them to have visibility into that spend. By partnering with providers like MercadoLibre, they have content from trusted and vetted sellers to bring to the table – so it’s a really nice match for procurement.

Liberating limits

Gardner: The trick is to allow for flexibility and being dynamic, but also putting in enough rules and policies so that things don’t go off-track.

Alvarez: Exactly. For example, it’s like putting a filter on your kids’ smartphone. You want them to be able to be liberated so they can go and do as they please with phone calls — but not to go off the guardrails.

Gardner: Karen, tell us about MercadoLibre and why Latin America might be a really interesting market for this type of Spot Buy service.

Bruck: MercadoLibre is a leading e-commerce platform in Latin America, where we provide the largest marketplaces in 16 different countries. Our main markets are Brazil, Mexico, and Argentina, and that’s where we are going the start this partnership with SAP Ariba.

Karen Bruck

Bruck

We have upward of 60 million items listed on our platform, and this breadth of supplies will make purchasing very exciting. Latin America is a complicated market — and we like this complexity. We do very well.

It’s complicated because there are different rates of inflation in different countries, and so contracts can be hard to complete. What we bring to the table is an assortment of great payment and shipping solutions that make it easy for companies to purchase items. As Tony was saying, these are not under long-term contracts, but we still get to make use of this vast supply.

Gardner: Tony mentioned that maybe 15% of spend is in this category. Diego, do you think that that number might be higher in some of the markets that you serve?

Cabrera Canay: That’s probably the number — but that is a big number in terms of the spend within companies. So we have to get there and see what happens.

Progressive partnership

Gardner: Tony, tell us about the partnership. What is MercadoLibre.com bringing to the table? What is Ariba bringing to the table? How does this fit together for a whole that is greater than the sum of its parts?

Alvarez: It really is a well-matched partnership. SAP Ariba is the leading cloud procurement platform, period. When you look in Latin America, our penetration with SAP Enterprise Resource Planning (ERP) is even greater. We have a very strong installed base with SAP ERP.

Our plan is to take the SAP Ariba Spot Buy content and make it available to the SAP installed base. So this goes way beyond just SAP Ariba. And when you think about what Karen mentioned — difficulties in Latin America with high inflation — the catalog approach is not used as much in Latin America because everything is so dynamic.

For example, you might sign a contract but in just in a couple of weeks that contract may be obsolete, or unfavorable because of a change in pricing. But once we build controls and parameters in SAP Ariba Spot Buy, you can layer that on top of MercadoLibre content, which is super-broad. If you’re looking for it you’re going to find it, and that content is constantly updated. You gain real-time access to the latest information, and then the procurement person gets the benefit of control.

So I’m very optimistic. As Diego mentioned, I think 15% is really on the low-end in Latin America for this type of spend. I think this will be a really nice way to put digital catalog buying in the hands of large enterprise buyers.

Gardner: Speaking of large enterprise buyers, if I’m a purchasing official in one of your new markets, what should I be thinking about how this is going to benefit me?

Transparent, trusted transactions

It saves a lot of time, it makes the comparison very transparent, and you are able to control the different options. Overall, it’s a win-win … a partnership, a match made in heaven.

Bruck: Let me talk about this from experience. As a country manager at MercadoLibre, I had to do a lot of the procurement, together with our procurement officers. It was really frustrating at times because all of these purchases had to be one-off engagements, with a different vendor every time. That takes a lot of time. You also have to bring in price comparisons, and that’s not always a simple process.

So what this platform gives you is the ability to be very transparent about prices and among different supplies. That makes it very easy to be able to buy every time without having to call and get the vendor to be in your own buying platform.

It saves a lot of time, it makes the comparison very transparent, and you are able to control the different options. Overall, it’s a win-win. So I do believe this is a partnership, a match made in heaven.

We were also very interested in business-to-business (B2B) industries. When Tony and SAP Ariba came to our offices to offer this partnership, we thought this would be a great way to leverage their needs with our supply and make it work.

Gardner: For sellers, this enables them to do repeated business more easily, more automated and so at scale. For buyers, with transparency they have more insight into getting the best prices, the best terms of delivery. Let’s expand on that win-win. Diego, tell us about the business benefits for all parties.

Big and small, meet at the mall 

Cabrera Canay: In the past few years, we have been working to make MercadoLibre the biggest “mall” in e-commerce. We have the most important brands and the most important retailers selling through MercadoLibre.

Diego Cabrera Canay

Cabrera Canay

What differentiates us is that we are confident we have the best prices — and also other great services such as free shipping, easy payments, and financing. We are sure that we can offer the buyers better purchasing.

Obviously, from the side of sellers, this all provides higher demand, it raises the bar in terms of having qualified buyers, and then giving the best services. That’s very exciting for us.

Gardner: Tony, we mentioned large enterprises, but this cuts across a great deal more of the economy, such as small- to medium sized (SMB) businesses. Tell us about how this works across diverse economies where there are large players but lots of small ones, too?

Alvarez: On the sales side, this gives really small businesses opportunity to reach large enterprise buyers that probably weren’t there before.

Diego was being modest, but MercadoLibre’s payment structure, MercadoPago, is incredibly robust, and it’s incredibly valuable to that end-seller, and also to the buyer.

Just having that platform and then connecting — you are basically taking two populations, the large and small sellers, and the large and small buyers, and allowing them to commingle more than they ever had in the past.

Gardner: Karen, as you mentioned from your own experience, when you’re dealing with paper, and you are dealing with one-offs, it’s hard to just keep track of the process, never mind to analyze it. But when we go digital, when we have a platform, when we have business networks at work, then we can start to analyze things for companies — and more broadly into markets.

How do you see this partnership accelerating the ability to leverage analytics, leverage some of the back-end platform technologies with SAP HANA and SAP Ariba, and making more strides toward productivity for your customers?

Data discoveries

Bruck: Right. When everything is tracked, as this will be, because every single purchase will be inside their SAP Ariba platform, it is all part of your “big data.” So then you can actually drop it, control it, analyze it, and say, “Hey, maybe these particular purchases mean that we should have long-term contracts, or that our long-term contracts were not priced correctly,” and maybe that’s an opportunity to save money and lower costs.

So once you can track data, you can do a lot of things, and discover new opportunities for either being more efficient or reducing costs – and that’s ultimately what we all want in all the departments of our companies.

Gardner: And for those listeners and readers who are interested in taking advantage of these services, and ultimately that great ability to analyze, what should they be doing now to get ready? Are there some things they could do culturally, organizationally, in order to become that more digital business when these services are available to them?

Paper is terrible for companies; you have to rethink your purchase processing in a digital way.

Cabrera Canay: I can talk about in our own case, where we are rebuilding our purchase processes. Paper is terrible for companies; you have to rethink your purchase processing in a digital way. Once you do it, SAP Ariba is a great solution, and with SAP Ariba Spot Buy we will have the best conditions for the buyers.

Bruck: It’s a natural process. People are going digital and embracing these new trends and technologies. It will make them more efficient. If they get up to speed quickly, it will become less about controlling stuff that they don’t need to control. They will really understand the benefits, so it will be a natural adoption.

Gardner: Tony, coming back full circle, as you have rolled SAP Ariba Spot Buy out from North America to Europe to Asia-Pacific, and now to Latin America — what have you learned in the way people use it?

Alvarez: First, at a macro level, people have found this to be a useful tool to replace some of the contracts that were less important, and so they can rely on marketplaces.

Second, we’ve really found as we’ve deployed in the US that a lot of times multinational companies are like, “Hey, that’s great, I love this, but I really want to use this in Latin America.” So they want to go and get visibility elsewhere.

Turn-key technique

Third, they want a tool that doesn’t require any training. If I’m a procurement professional, I want my users to already be expert at using the tool. We’ve designed this in the process context, and in concert with the content partners. You can just walk up and start using it. You don’t have to be an expert, and it keeps you within the guardrails without even thinking about it.

Gardner: And being a cloud-based, software-as-a-service (SaaS) solution you’re always analyzing how it’s being used — going after that ultimate optimized user experience — and then building those improvements back in on a constant basis?

Alvarez: Exactly. Always.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: SAP Ariba.

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Posted in Business intelligence, Business networks, Cloud computing, data analysis, Enterprise transformation, ERP, machine learning, procurement, SAP, SAP Ariba, Spot buying, User experience | Tagged , , , , , , , , , , , , | Leave a comment

Awesome Procurement —Survey shows how business networks fuel innovation and business transformation

The next BriefingsDirect digital business insights interview explores the successful habits, practices, and culture that define highly effective procurement organizations.

We’ll uncover unique new research that identifies and measures how innovative companies have optimized their practices to overcome the many challenges facing business-to-business (B2B) commerce.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

To learn more about the traits and best practices of the most successful procurement organizations, please join Kay Ree Lee, Director of Business Analytics and Insights at SAP Ariba. The interview was recorded at the recent 2017 SAP Ariba LIVE conference in Las Vegas, and is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Procurement is more complex than ever, supply chains stretch around the globe, regulation is on the rise, and risk is heightened across many fronts. Despite these, innovative companies have figured out how to overcome their challenges, and you have uncovered some of their secrets through your Annual Benchmarking Survey. Tell us about your research and your findings.

Lee: Every year we conduct a large benchmark program benefiting our customers that combines a traditional survey with data from the procurement applications, as well as business network.

Kay Ree Lee

Lee

This past year, more than 200 customers participated, covering more than $400 billion in spend. We analyzed the quantitative and qualitative responses of the survey and identified the intersection between those responses for top performers compared to average performers. This has allowed us to draw correlations between what top performers did well and the practices that drove those achievements.

Gardner: What’s changed from the past, what are you seeing as long-term trends?

Lee: There are three things that are quite different from when we last talked about this a year ago.

The number one trend that we see is that digital procurement is gaining momentum quickly. A lot of organizations are now offering self-service tools to their internal stakeholders. These self-service tools enable the user to evaluate and compare item specifications and purchase items in an electronic marketplace, which allows them to operate 24×7, around-the-clock. They are also utilizing digital networks to reach and collaborate with others on a larger scale.

The second trend that we see is that while risk management is generally acknowledged as important and critical, for the average company, a large proportion of their spend is not managed. Our benchmark data indicates that an average company manages 68% of their spend. This leaves 32% of spend that is unmanaged. If this spend is not managed, the average company is also probably not managing their risk. So, what happens when something unexpected occurs to that non-managed spend?

The third trend that we see is related to compliance management. We see compliance management as a way for organizations to deliver savings to the bottom line. Capturing savings through sourcing and negotiation is a good start,  but at the end of the day, eliminating loopholes through a focus on implementation and compliance management is how organizations deliver and realize negotiated savings.

Gardner: You have uncovered some essential secrets — or the secret sauce — behind procurement success in a digital economy. Please describe those.

Five elements driving procurement processes

Lee: From the data, we identified five key takeaways. First, we see that procurement organizations continue to expand their sphere of influence to greater depth and quality within their organizations. This is important because it shows that the procurement organization and the work that procurement professionals are involved in matters and is appreciated within the organization.

The second takeaway is that – while cost reduction savings is near and dear to the heart of most procurement professionals — leading organizations are focused on capturing value beyond basic cost reduction. They are focused on capturing value in other areas and tracking that value better.

The third takeaway is that digital procurement is firing on all cylinders and is front and center in people’s minds. This was reflected in the transactional data that we extracted.

The fourth takeaway is related to risk management. This is a key focus area that we see instead of just news tracking related to your suppliers.

The fifth takeaway is — compliance management and closing the purchasing loopholes is what will help procurement deliver bottom-line savings.

Gardner: What next are some of the best practices that are driving procurement organizations to have a strategic impact at their companies, culturally?

Lee: To have a strategic impact in the business, procurement needs to be proactive in engaging the business. They should have a mentality of helping the business solve business problems as opposed to asking stakeholders to follow a prescribed procurement process. Playing a strategic role is a key practice that drives impact.

Another practice that drives strategic impact is the ability to utilize and adopt technology to your advantage through the use of digital networks.

They should also focus on broadening the value proposition of procurement. We see leading organizations placing emphasis on contributing to revenue growth, or increasing their involvement in product development, or co-innovation that contributes to a more efficient and effective process.

Another practice that drives strategic impact is the ability to utilize and adopt technology to your advantage through the use of digital networks, system controls to direct compliance, automation through workflow, et cetera.

These are examples of practices and focus areas that are becoming more important to organizations.

Using technology to track technology usage

Gardner: In many cases, we see the use of technology having a virtuous adoption cycle in procurement. So the more technology used, the better they become at it, and the more technology can be exploited, and so on. Where are we seeing that? How are leading organizations becoming highly technical to gain an advantage?

Lee: Companies that adopt new technology capabilities are able to elevate their performance and differentiate themselves through their capabilities. This is also just a start. Procurement organizations are pivoting towards advanced and futuristic concepts, and leaving behind the single-minded focus on cost reduction and cost efficiency.

Digital procurement utilizing electronic marketplaces, virtual catalogs, gaining visibility into the lifecycle of purchase transactions, predictive risk management, and utilizing large volumes of data to improve decision-making – these are key capabilities that benefit the bold and the future-minded. This enables the transformation of procurement, and forms new roles and requirements for the future procurement organization.

Gardner: We are also seeing more analytics become available as we have more data-driven and digital processes. Is there any indication from your research that procurement people are adopting data-scientist-ways of thinking? How are they using analysis more now that the data and analysis are available through the technology?

If you extract all of that data, cleanse it, mine it, and make sense out of it, you can then make informed business decisions and create valuable insights.

Lee: You are right. The users of procurement data want insights. We are working with a couple of organizations on co-innovation projects. These organizations   actively research, analyze, and use their data to answer questions such as:

  • How does an organization validate that the prices they are paying are competitive in the marketplace?
  • After an organization conducts a sourcing event and implements the categories, how do they actually validate that the price paid is what was negotiated?
  • How do we categorize spend accurately, particularly if a majority of spend is services spend where the descriptions are non-standard?
  • Are we using the right contracts with the right pricing?

As you can imagine, when people enter transactions in a system, not all of it is contract-based or catalog-based. There is still a lot of free-form text. But if you extract all of that data, cleanse it, mine it, and make sense out of it, you can then make informed business decisions and create valuable insights. This goes back to the managing compliance practice we talked about earlier.

They are also looking to answer questions like, how do we scale supplier risk management to manage all of our suppliers systematically, as opposed to just managing the top-tier suppliers?

These two organizations are taking data analysis further in terms of creating advantages that begin to imbue excellence into modern procurement and across all of their operations.

Gardner: Kay Ree, now that you have been tracking this Benchmark Survey for a few years, and looking at this year’s results, what would you recommend that people do based on your findings?

Future focus: Cost-reduction savings and beyond

Lee: There are several recommendations that we have. One is that procurement should continue to expand their span of influence across the organization. There are different ways to do this but it starts with an understanding of the stakeholder requirements.

The second is about capturing value beyond cost-reduction savings. From a savings perspective, the recommendation we have is to continue to track sourcing savings — because cost-reduction savings are important. But there are other measures of value to track beyond cost savings. That includes things like contribution to revenue, involvement in product development, et cetera.

The third recommendation relates to adopting digital procurement by embracing technology. For example, SAP Ariba has recently introduced some innovations. I think the user really has an advantage in terms of going out there, evaluating what is out there, trying it out, and then seeing what works for them and their organization.

As organizations expand their footprint globally, the fourth recommendation focuses on transaction efficiency. The way procurement can support organizations operating globally is by offering self-service technology so that they can do more with less. With self-service technology, no one in procurement needs to be there to help a user buy. The user goes on the procurement system and creates transactions while their counterparts in other parts of the world may be offline.

The fifth recommendation is related to risk management. A lot of organizations when they say, “risk management,” they are really only tracking news related to their suppliers. But risk management includes things like predictive analytics, predictive risk measures beyond your strategic suppliers, looking deeper into supply chains, and across all your vendors. If you can measure risk for your suppliers, why not make it systematic? We now have the ability to manage a larger volume of suppliers, to in fact manage all of them. The ones that bubble to the top, the ones that are the most risky, those are the ones that you create contingency plans for. That helps organizations really prepare to respond to disruptions in their business.

The last recommendation is around compliance management, which includes internal and external compliance. So, internal adherence to procurement policies and procedures, and then also external following of governmental regulations. This helps the organization close all the loopholes and ensure that sourcing savings get to the bottom line.

Be a leader, not a laggard

Gardner: When we examine and benchmark companies through this data, we identify leaders, and perhaps laggards — and there is a delta between them. In trying to encourage laggards to transform — to be more digital, to take upon themselves these recommendations that you have — how can we entice them? What do you get when you are a leader? What defines the business value that you can deliver when you are taking advantage of these technologies, following these best practices?

Lee: Leading organizations see higher cost reduction savings, process efficiency savings and better collaboration internally and externally. These benefits should speak for themselves and entice both the average and the laggards to strive for improvements and transformation.

From a numbers perspective, top performers achieve 9.7% savings as a percent of sourced spend. This translates to approximately $20M higher savings per $B in spend compared to the average organization.

We talked about compliance management earlier. A 5% increase in compliance increases realized savings of $4.4M per $1B in spend. These are real hard dollar savings that top performers are able to achieve.

In addition, top performers are able to attract a talent pool that will help the procurement organization perform even better. If you look at some of the procurement research, industry analysts and leaders are predicting that there may be a talent shortage in procurement. But, as a top performer, if you go out and recruit, it is easier to entice talent to the organization. People want to do cool things and they want to use new technology in their roles.

Gardner: Wrapping up, we are seeing some new and compellingtechnologies here at Ariba LIVE 2017 — more use of artificial intelligence(AI), increased use of bringing predictive tools into a context so that they can be of value to procurement during the life-cycle of a process.

As we think about the future, and more of these technologies become available, what is it that companies should be doing now to put themselves in the best position to take advantage of all of that?

Curious org

Lee: It’s important to be curious about the technology available in the market and perhaps structure the organization in such a way that there is a team of people on the procurement team who are continuously evaluating the different procurement technologies from different vendors out there. Then they can make decisions on what best fits their organization.

Having people who can look ahead, evaluate, and then talk about the requirements, then understand the architecture, and evaluate what’s out there and what would make sense for them in the future. This is a complex role. He or she has to understand the current architecture of the business, the requirements from the stakeholders, and then evaluate what technology is available. They must then determine if it will assist the organization in the future, and if adopting these solutions provides a return on investment and ongoing payback.

So I think being curious, understanding the business really well, and then wearing a technology hat to understand what’s out there are key. You can then be helpful to the organization and envision how adopting these newer technologies will play out.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: SAP Ariba.

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Posted in Ariba, artificial intelligence, big data, Business intelligence, Business networks, Cloud computing, CRM, data analysis, Enterprise transformation, ERP, Information management, machine learning, Networked economy, procurement, SAP, SAP Ariba, Security, Spot buying | Tagged , , , , , , , , , , , | Leave a comment

Experts define new ways to manage supply chain risk in a digital economy

The next BriefingsDirect digital business thought leadership panel discussion explores new ways that companies can gain improved visibility, analytics, and predictive responses to better manage supply chain risk in the digital economy.

The panel examines how companies such as Nielsen are using cognitive computing search engines, and even machine learning and artificial intelligence (AI), to reduce risk in their overall buying and acquisitions.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

To learn more about the exploding sophistication around gaining insights into advanced business commerce, we welcome James Edward Johnson, Director of Supply Chain Risk Management and Analysis at Nielsen; Dan Adamson, Founder and CEO of OutsideIQ in Toronto, and Padmini Ranganathan, Vice President of Products and Innovation at SAP Ariba.

The panel was assembled and recorded at the recent 2017 SAP Ariba LIVE conference in Las Vegas. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Padmini, we heard at SAP Ariba LIVE that risk is opportunity. That stuck with me. Are the technologies really now sufficient that we can fully examine risks to such a degree that we can turn that into a significant business competitive advantage? That is to say, those who take on risk seriously, can they really have a big jump over their competitors?

Padmini Ranganathan (1)

Ranganathan

Ranganathan: I come from Silicon Valley, so we have to take risks for startups to grow into big businesses, and we have seen a lot of successful entrepreneurs do that. Clearly, taking risks drives bigger opportunity.

But in this world of supplier and supply chain risk management, it’s even more important and imperative that the buyer and supplier relationships are risk-aware and risk-free. The more transparent that relationship becomes, the more opportunity for driving more business between those relationships.

That context of growing business — as well as growing the trust and the transparent relationships — in a supply chain is better managed by understanding the supplier base. Understanding the risks in the supplier base, and then converting them into opportunities, allows mitigating and solving problems jointly. By collaborating together, they form partnerships.

Gardner: Dan, it seems that what was once acceptable risk can now be significantly reduced. How do people in procurement and supply chain management know what acceptable risk is — or maybe they shouldn’t accept any risk?

Adamson: My roots are also from Silicon Valley, and I think you are absolutely right that at times you should be taking risks — but not unnecessarily. What the procurement side has struggled with — and this is from me jumping into financial institutions where they treat risk very differently through to procurement – is risk versus the price-point to avoid that risk. That’s traditionally been the big problem.

Dan Adamson

Adamson

For every vendor that you on-board, you have to pay $1,000 for a due diligence report and it’s really not price-effective. But, being able to maintain and monitor that vendor on a regular basis at acceptable cost – then there’s a real risk-versus-reward benefit in there.

What we are helping to drive are a new set of technology solutions that enable a deeper level of due diligence through technology, through cognitive computing, that wasn’t previously possible at the price point that makes it cost-effective. Now it is possible to clamp down and avoid risk where necessary.

Gardner: James, as a consumer of some of these technologies, do you really feel that there has been a significant change in that value equation, that for less money output you are getting a lot less risk?

Knowing what you’re up against

Johnson: To some degree that value was always there; it was just difficult to help people see that value. Obviously tools like this will help us see that value more readily.

It used to be that in order to show the value, you actually had to do a lot of work, and it was challenging. What we are talking about here is that we can begin to boil the ocean. You can test these products, and you can do a lot of work just looking at test results.

And, it’s a lot easier to see the value because you will unearth things that you couldn’t have seen in the past.

James Edward Johnson

Johnson

Whereas it used to take a full-blown implementation to begin to grasp those risks, you can now just test your data and see what you find. Most people, once they have their eyes wide open, will be at least a little more fearful.  But, at the same time — and this goes back to the opportunity question you asked — they will see the opportunity to actually tackle these risks. It’s not like those risks didn’t exist in the past, but now they know they are there — and they can decide to do something about it, or not.

Gardner: So rather than avoid the entire process, now you can go at the process but with more granular tools to assess your risks and then manage them properly?

Johnson: That’s right. I wouldn’t say that we should have a risk-free environment; that would cost more money than we’re willing to pay. That said, we should be more conscious of what we’re not yet willing to pay for.

Rather than just leaving the risk out there and avoiding business where you can’t access information about what you don’t know — now you’ll know something. It’s your choice to decide whether or not you want to go down the route of eliminating that risk, of living with that risk, or maybe something in between. That’s where the sweet spot is. There are probably a lot of intermediate actions that people would be taking now that are very cheap, but they haven’t even thought to do so, because they haven’t assessed where the risk is.

Gardner: Padmini, because we’re looking at a complex landscape — a supply chain, a global supply chain, with many tiers — when we have a risk solution, it seems that it’s a team sport. It requires an ecosystem approach. What has SAP Ariba done, and what is the news at SAP Ariba LIVE? Why is it important to be a team player when it comes to a fuller risk reduction opportunity?

Teamwork

Ranganathan: You said it right. The risk domain world is large, and it is specialized. The language that the compliance people use in the risk world is somewhat similar to the language that the lawyers use, but very different from the language that the information technology (IT) security and information security risk teams use.

The reason you can’t see many of the risks is partly because the data, the information, and the fragmentation have been too broad, too wide. It’s also because the type of risks, and the people who deal with these risks, are also scattered across the organization.

So a platform that supports bringing all of this together is number one. Second, the platform must support the end-to-end process of managing those supply chain relationships, and managing the full supply chain and gain the transparency across it. That’s where SAP Ariba has headed with Direct Materials Sourcing and with getting more into supply chain collaboration. That’s what you heard at SAP Ariba LIVE.

We all understand that supply chain much better when we are in SAP Ariba, and then you have this ecosystem of partners and providers. You have the technology with SAP and HANA to gain the ability to mash up big data and set it in context, and to understand the patterns. We also have the open ecosystem and the open source platform to allow us to take that even wider. And last but not the least, there is the business network.

So it’s not just between one company and another company, it’s a network of companies operating together. The momentum of that collaboration allows users to say, “Okay, I am going to push for finding ethical companies to do business with,” — and then that’s really where the power of the network multiplies.

Gardner: Dan, when a company nowadays buys something in a global supply chain, they are not just buying a product — they are buying everything that’s gone on with that product, such as the legacy of that product, from cradle to PO. What is it that OutsideIQ brings to the table that helps them get a better handle on what that legacy really is?

Dig deep, reduce risk, save time

Adamson: Yes, and they are not just buying from that seller, they are buying from the seller that sold it to that seller, and so they are buying a lot of history there — and there is a lot of potential risk behind the scenes.

That’s why this previously has been a manual process, because there has been a lot of contextual work in pulling out those needles from the haystack. It required a human level of digging into context to get to those needles.

The exciting thing that we bring is a cognitive computing platform that’s trainable — and it’s been trained by FinCrime’s experts and corporate compliance experts. Increasingly, supply management experts help us know what to look for. The platform has the capability to learn about its subject, so it can go deeper. It can actually pivot on where it’s searching. If it finds a presence in Afghanistan, for example, well then that’s a potential risk in itself, but it can then go dig deeper on that.

And that level of deeper digging is something that a human really had to do before. This is the exciting revolution that’s occurring. Now we can bring back that data, it can be unstructured, it can be structured, yet we can piece it together and provide some structure that is then returned to SAP Ariba.

The great thing about the supply management risk platform or toolkit that’s being launched at SAP Ariba LIVE is that there’s another level of context on top of that. Ariba understands the relationship between the supplier and the buyer, and that’s an important context to apply as well.

How you determine risk scores on top of all of that is very critical. You need to weed out all of the noise, otherwise it would be a huge data science exercise and everyone would be spinning his or her wheels.

This is now a huge opportunity for clients like James to truly get some low-hanging fruit value, where previously it would have been literally a witch-hunt or a huge mining expedition. We are now able to achieve this higher level of value.

Gardner: James, Dan just described what others are calling investigative cognitive computing brought to bear on this supply chain risk problem. As someone who is in the business of trying to get the best tools for their organization, where do you come down on this? How important is this to you?

Johnson: It’s very important. I have done the kinds of investigations that he is talking about. For example, if I am looking at a vendor in a high-risk country, particularly a small vendor that doesn’t have an international presence  that is problematic for most supplier investigations. What do I do? I will go and do some of the investigation that Dan is talking about.

Now I’m usually sitting at my desk in Chicago. I’m not going out in the world. So there is a heightened level of due-diligence that I suspect neither of us are really talking about here. With that limitation, you want to look up not only the people, you want to look up all their connections. You might have had a due-diligence form completed, but that’s an interested party giving you information, what do you do with it?

Well, I can run the risk search on more than just the entity that I’m transacting with.  I am going to run it on everyone that Dan mentioned. Then I am going to look up all their LinkedIn profiles, see who they are connected to. Do any of those people show any red flags? I’d look at the bank that they use. Are there any red flags with their bank?

I can do all that work, and I can spend several hours doing all that work. As a lawyer I might dig a little deeper than someone else, but in the end, it’s human labor going into the effort.

Gardner: And that really doesn’t scale very well.

Johnson: That does not scale at all. I am not going to hire a team of lawyers for every supplier. The reality here is that now I can do some level of that time-consuming work with every supplier by using the kind of technology that Dan is talking about.

The promise of OutsideIQ technology is incredible. It is an early and quickly expanding, opportunity. It’s because of relationships like the one between SAP Ariba and OutsideIQ that I see a huge opportunity between Nielsen and SAP Ariba. We are both on the same roadmap.

Nielsen has a lot of work to do, SAP Ariba has a lot of work to do, and that work will never end, and that’s okay. We just need to be comfortable with it, and work together to build a better world.

Gardner: Tell us about Nielsen. Then secondarily, what part of your procurement, your supply chain, do you think this will impact best first?

Automatic, systematic risk management

Johnson: Nielsen is a market research company. We answer two questions: what do people watch? And what do people buy? It sounds very simple, but when you cover 90% of the world’s population, which we do – more than six billion people — you can imagine that it gets a little bit more complicated.

We house about 54 petabytes of database data. So the scale there is huge. We have 43,000 employees. It’s not a small company. You might know Nielsen for the set-top boxes in the US that tell what the ratings were overnight for the Super Bowl, for example, but it’s a lot more than that. And you can imagine, especially when you’re trying to answer what do people buy in  developing countries with emerging economies? You are touching some riskier things.

In terms of what this SAP Ariba collaboration can solve for us, the first quick hit is that we will no longer have to leverage multiple separate sources of information. I can now leverage all the sources of information at one time through one interface. It is already being used to deliver information to people who are involved in the procurement chain. That’s the huge quick win.

The secondary win is from the efficiency that we get in doing that first layer of risk management. Now we can start to address that middle tier that I mentioned. We can respond to certain kinds of risk that, today, we are doing ad-hoc, but not systematically. There is that systematic change that will allow us to not only target the 100 to 200 vendors that we might prioritize — but the thousands of vendors that are somewhere in our system, too.

That’s going to revolutionize things, especially once you fold in the environmental, social and governance (ESG) work that, today, is very focused for us. If I can spread that out to the whole supply chain, that’s revolutionary. There are a lot of low-cost things that you can do if you just have the information.

So it’s not always a question of, “am I going to do good in the world and how much is it going to cost me?” It’s really a question of, “What is the good in the world that’s freely available to me, that I’m not even touching?” That’s amazing! And, that’s the kind of thing that you can go to work for, and be happy about your work, and not just do what you need to do to get a paycheck.

Gardner: It’s not just avoiding the bad things; it’s the false positives that you want to remove so that you can get the full benefit of a diverse, rich supplier network to choose from.

Johnson: Right, and today we are essentially wasting a lot of time on suspected positives that turn out to be false. We waste time on them because we go deeper with a human than we need to. Let’s let the machines go as deep as they can, and then let the humans come in to take over where we make a difference.

Gardner: Padmini, it’s interesting to me that he is now talking about making this methodological approach standardized, part of due-diligence that’s not ad-hoc, it’s not exception management. As companies make this a standard part of their supply chain evaluations, how can we make this even richer and easier to use?

Ranganathan: The first step was the data. It’s the plumbing; we have to get that right. It’s about the way you look at your master data, which is suppliers; the way you look at what you are buying, which is categories of spend; and where you are buying from, which is all the regions. So you already have the metrics segmentation of that master data, and everything else that you can do with SAP Ariba.

The next step is then the process, because it’s really not a one-size-fits-all. It cannot be a one-size-fits-all, where every supplier that you on-board you are going to ask them the same set of questions, check the box and move on.

I am going to use the print service vendor example again, which is my favorite. For marketing materials printing, you have a certain level of risk, and that’s all you need to look at. But you still want, of course, to look at them for any adverse media incidents, or whether they suddenly got on a watch-list for something, you do want to know that.

But when one of your business units begins to use them for customer-confidential data and statement printing — the level of risk shoots up. So the intensity of risk assessments and the risk audits and things that you would do with that vendor for that level of risk then has to be engineered and geared to that type of risk.

So it cannot be a one-size-fits-all; it has to go past the standard. So the standardization is not in the process; the standardization is in the way you look at risk so that you can determine how much of the process do I need to apply and I can stay in tune.

Gardner: Dan, clearly SAP Ariba and Nielsen, they want the “dials,” they want to be able to tune this in. What’s coming next, what should we expect in terms of what you can bring to the table, and other partners like yourselves, in bringing the rich, customizable inference and understanding benefits that these other organizations want?

Constructing cognitive computing by layer

Adamson: We are definitely in early days on the one hand. But on the other hand, we have seen historically many AI failures, where we fail to commercialize AI technologies. This time it’s a little different, because of the big data movement, because of the well-known use cases in machine learning that have been very successful, the pattern matching and recommending and classifying. We are using that as a backbone to build layers of cognitive computing on top of that.

And I think as Padmini said, we are providing a first layer, where it’s getting stronger and stronger. We can weed out up to 95% of the false-positives to start from, and really let the humans look at the thorny or potentially thorny issues that are left over. That’s a huge return on investment (ROI) and a timesaver by itself.

But on top of that, you can add in another layer of cognitive computing, and that might be at the workflow layer that recognizes that data and says, “Jeez, just a second here, there’s a confidentiality potential issue here, let’s treat this vendor differently and let’s go as far as plugging in a special clause into the contract.” This is, I think, where SAP Ariba is going with that. It’s building a layer of cognitive computing on top of another layer of cognitive computing.

Actually, human processes work like that, too. There is a lot of fundamental pattern recognition at the basis of our cognitive thought, and on top of that we layer on top logic. So it’s a fun time to be in this field, executing one layer at a time, and it’s an exciting approach.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: SAP Ariba.

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Posted in Ariba, big data, Cloud computing, Cyber security, ERP, Identity, Internet of Things, machine learning, Networked economy, procurement, risk assessment, SAP, SAP Ariba, Security, Spot buying | Tagged , , , , , , , , , , , , , | Leave a comment

How SAP Ariba became a first-mover as Blockchain comes to B2B procurement

The next BriefingsDirect digital business thought leadership panel discussion examines the major opportunity from bringing Blockchain technology to business-to-business (B2B) procurement and supply chain management.

We will now explore how Blockchain’s unique capabilities can provide comprehensive visibility across global supply chains and drive simpler verification of authenticity, security, and ultimately control.

Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy.

To learn more about how Blockchain is poised to impact and improve supply chain risk and management, we’re joined by Joe Fox, Senior Vice President for Business Development and Strategy at SAP Ariba, and Leanne Kemp, Founder and CEO of Everledger, based in London.

The panel was assembled and recorded at the recent 2017 SAP Ariba LIVE conference in Las Vegas. The discussion is moderated by Dana Gardner, principal analyst at Interarbor Solutions.

Here are some excerpts:

Gardner: Joe, Blockchain has emerged as a network methodology, running crypto currency Bitcoin, as most people are aware of it. It’s a digitally shared record of transactions maintained by a network of computers, not necessarily with centralized authority. What could this be used for powerfully when it comes to gaining supply chain integrity?

Fox: Blockchain did start in the Bitcoin area, as peer-to-peer consumer functionality. But a lot of the capabilities of Blockchain have been recognized as important for new areas of innovation in the enterprise software space.

Joe Fox

Fox

Those areas of innovation are around “trusted commerce.” Trusted commerce allows buyers and sellers, and third parties, to gain more visibility into asset-tracking. Not just asset tracking in the context of the buyer receiving and the seller shipping — but in the context of where is the good in transit? What do I need to do to protect that good? What is the transfer of funds associated with that important asset? There are even areas of other applications, such as an insurance aspect or some kind of ownership-proof.

Gardner: It sounds to me like we are adding lot of metadata to a business process. What’s different when you apply that through Blockchain than if you were doing it through a platform?

Inherit the trust

Fox: That’s a great question. Blockchain is like the cloud from the perspective of it’s an innovation at the platform layer. But the chain is only as valuable as the external trust that it inherits. That external trust that it inherits is the proof of what you have put on the chain digitally. And that includes that proof of who has taken it off and in what way they have control.

As we associate a chain transaction, or a posting to the ledger with its original transactions within the SAP Ariba Network, we are actually adding a lot of prominence to that single Blockchain record. That’s the real key, marrying the transactional world and the B2B world with this new trusted commerce capability that comes with Blockchain.

Gardner: Leanne, we have you here as a prime example of where Blockchain is being used outside of its original adoption. Tell us first about Everledger, and then what it was you saw in Blockchain that made you think it was applicable to a much wider businesscapability.

Kemp: Everledger is a fast-moving startup using the best of emerging technology to assist in the reduction of risk and fraud. We began in April of 2015, so it’s actually our birthday this week. We started in the world of diamonds where we apply blockchain technology to bring transparency to a once opaque market.

Leanne Kemp

Kemp

And what did I see in the technology? At the very core of cryptocurrency, they were solving the problem of double-spend. They were solving the problem of transfer of value, and we could translate those very two powerful concepts into the diamond industry.

At the heart of the diamond industry, beyond the physical object itself, is certification, and certificates in the diamond industry are the currency of trade. Diamonds are cited on web sites around the world, and they are mostly sold off the merit of the certification. We were able to see the potential of the cryptocurrency, but we could decouple the currency from the ledger and we were able to then use the synthesis of the currency as a way to transfer value, or transfer ownership or custody. And, of course, diamonds are a girl’s best friend, so we might as well start there.

Dealing with diamonds

Gardner: What was the problem in the diamond industry that you were solving? What was not possible that now is?

Kemp: The diamond industry boasts some pretty impressive numbers. First, it’s been around for 130 years. Most of the relationships among buyers and sellers have survived generation upon generation based on a gentleman’s handshake and trust.

The industry itself has been bound tightly with those relationships. As time has passed and generations have passed, what we are starting to see is a glacial melt. Some of the major players have sold off entities into other regions, and now that gentleman’s handshake needs to be transposed into an electronic form.

Some of the major players in the market, of course, still reside today. But most of the data under their control sits in a siloed environment. Even the machines that are on the pipeline that help provide identity to the physical object are also black-boxed in terms of data.

We are able to bring a business network to an existing market. It’s global. Some 81 countries around the world trade in rough diamonds. And, of course, the value of the diamonds increases as they pass through their evolutionary chain. We are able to bring an aggregated set of data. Not only that, we transpose the human element of trust — the gentleman’s handshake, the chit of paper and the promise to pay that’s largely existed and has built has built 130 years of trade.

We are now able to transpose that into a set of electronic-form technologies — Blockchain, smart contracts, cryptography, machine vision — and we are able to take forward a technology platform that will see transactional trust being embedded well beyond my lifetime — for generations to come.

Gardner: Joe, we have just heard how this is a problem-solution value in the diamond industry. But SAP Ariba has its eyes on many industries. What is it about the way things are done now in general business that isn’t good enough but that Blockchain can help improve?

Fox: As we have spent years at Ariba solving procurement problems, we identified some of the toughest. When I saw Everledger, it occurred to me that they may have cracked the nut on one of the toughest areas of B2B trade — and that is true understanding, visibility, and control of asset movement.

It dawned on me, too, that if you can track and trace diamonds, you can track and trace anything. I really felt like we could team up with this young company and leverage the unique way they figured out how to track and trace diamonds and apply that across a huge procurement problem. And that is, how do a supplier and a buyer manage the movement of any asset after they have purchased it? How do we actually associate that movement of the asset back to its original transactions that approved the commit-to-pay? How do you associate a digital purchase order (PO) with a digital movement of the asset, and then to the actual physical asset? That’s what we really are teaming up to do.

That receipt of the asset has been a dark space in the B2B world for a long time. Sure, you can get a shipping notice, but most businesses don’t do goods receipts. And as the asset flows through the supply chain — especially the more expensive the item is — that lack of visibility and control causes significant problems. Maybe the most important one is: overpaying for inventory to cover actual lost supply chain items in transit.

I talked to a really large UK-based telecom company and they told me that what we are going to do with Everledger, with just their fiber optics, they could cut their buying in half. Why? Because they overbuy their fiber optics to make sure they are never short on fiber optic inventory.

That precision of buying and delivery applies across the board to all merchants and all supply chains, even middle of the supply chain manufacturers. Whenever you have disruption to your inbound supply, that’s going to disrupt your profitability.

Gardner: It sounds as if what we are really doing here is getting a highly capable means — that’s highly extensible — to remove the margin of error from the tracking of goods, from cradle to grave.

Chain transactions

Fox: That’s exactly right. And the Internet is the enabler, because Blockchain is everywhere. Now, as the asset moves, you have the really cool stuff that Everledger has done, and other things we are going to do together – and that’s going to allow anybody from anywhere to post to the chain the asset receipt and asset movement.

For example, with a large container coming from overseas, you will have the chain record of every place that container has been. If it doesn’t show up at a dock, you now have visibility as the buyer that there is a supply chain disruption. That chain being out on the Internet, at a layer that’s accessible by everyone, is one of the keys to this technology.

We are going to be focusing on connecting the fabric of the chain together with Hyperledger. Everledger builds on the Hyperledger platform. The fabric that we are going to tie into is going to directly connect those block posts back to the original transactions, like the purchase order, the invoice, the ship notice. Then the companies can see not only where their asset is, but also view it in context of the transactions that resulted in the shipment.

Gardner: So the old adage — trust but verify — we can now put that to work and truly verify. There’s newstaking place here at SAP Ariba LIVE between Everledger and SAP Ariba. Tell us about that, and how the two companies — one quite small, one very large — are going to work together.

Fox: Ariba is all-in on transforming the procurement industry, the procurement space, the processes of procurement for our customers, buyers and sellers, and we are going to partner heavily with key players like Everledger.

Part of the announcement is this partnership with Everledger around track and trace, but it is not limited to track and trace. We will leverage what they have learned across our platform of $1 trillion a year in spend, with 2.5 million companies trading assets with each other. We are going to apply this partnership to many other capabilities within that.

Kemp: I am very excited. It’s a moment in time that I think I will remember for years to come. In March we also made an importantannouncement with IBM on some of the work that we have done beyond identifying objects. And that is to take the next step around ensuring that we have an ethical trade platform, meaning one that is grounded in cognitive compliance.

We will be able to identify the asset, but also know, for example in the diamond industry, that a diamond has passed through the right channels, paid the dutiful taxes that are due as a part of an international trade platform, and ensure all compliance is hardened within the chain.

I am hugely excited about the opportunity that sits before me. I am sincerely grateful that such a young company has been afforded the opportunity to really show how we are going to shine.

If you think about it, Blockchain is an evolution of the Internet.

Gardner: When it comes to open trade, removing friction from commerce, these have been goals for hundreds of years. But we really seem to be onto something that can make this highly scalable, very rich — almost an unlimited amount of data applied to any asset, connected to a ledger that’s a fluid, movable, yet tangible resource.

Fox: That’s right.

Gardner: So where do we go next, Joe? If the sky is the limit, describe the sky for me? How big is this, and where can you take it beyond individual industries? It sounds like there is more potential here.

Reduced friction costs

Fox: There is a lot of potential. If you think about it, Blockchain is an evolution of the Internet; we are going to be able to take advantage of that.

The new evolution is that it’s a structured capability across the Internet itself. It’s going to be open, and it’s going to be able to allow companies to ledger their interactions with each other. They are going to be able, in an immutable way, to track who owns which asset, where the assets are, and be able to then use that as an audit capability.

That’s all very important to businesses, and until now the Internet itself has not really had a structure for business. It’s been open, the Wild West. This structure for business is going to help with what I call trusted commerce because in the end businesses establish relationships because they want to do business with each other, not based on what technology they have.

Another key fact about Blockchain is that it’s going to reduce friction in global B2B. I always like to say if you just accelerated B2B payments by a few days globally, you would open up Gross Domestic Product (GDP), and economies would start growing dramatically. This friction around assets has a direct tie to how slowly money moves around the globe, and the overall cost and friction from that.

So how big could it go? Well, I think that we are going to innovate together with Everledger and other partners using the Hyperledger framework. We are going to add every buyer and seller on the Ariba Network onto the chain. They are just going to get it as part of our platform.

Then we are going to begin ledgering all the transactions that they think make sense between themselves. We are going to release a couple of key functions, such as smart contracts, so their contract business rules can be applicable in the flow of commerce — at the time commerce is happening, not locked up in some contract, or in some drawer or Portable Document Format (PDF) file. We are going to start with those things.

I don’t know what applications we are going to build beyond that, but that’s the excitement of it. I think the fact that we don’t know is the big play.

Gardner: From a business person’s perspective, they don’t probably care too much that it’s Blockchain that’s enabling this, just like a lot of people didn’t care 20 years ago that it was the Internet that was allowing them to shop online or send emails to anybody anywhere. What is it that we would tease out of this, rather than what the technology is, what’s the business benefit that people should be thinking about?

Fox: Everybody wants digital trust, right? Leanne, why don’t you share some of the things you guys have been exploring?

Making the opaque transparent

Kemp: In the diamond industry, there is fraud related to document tampering. Typically paper certificates exist across the backbone, so it’s very easy to be able to transpose those into a PDF and make appropriate changes for self-gain.

Double-financing of the pipeline is a very real problem; invoicing, of course accounts receivable, they have the ability to have banks finance those invoices two, three, four times.

We have issues with round-tripping of diamonds through countries, where transfer pricing isn’t declared correctly, along with the avoidance of tax and duties.

All of these issues are the dark side of the market. But, now we have the ability to bring transparency around any object, particularly in diamonds — the one commodity that’s yet to have true financial products wrapped around it. Now, what do I mean by that? It doesn’t have a futures market yet. It doesn’t have exchange traded funds (ETFs), but the performance of diamonds has outperformed gold, platinum and palladium.

Now, what does this mean? It means we can bring transparency to the once opaque, have the ability to know if an object has gone through an ethical chain, and then realize the true value of that asset. This process allows us to start and think about how new financial products can be formed around these assets.

We are hugely interested in rising asset classes beyond just the commodity section of the market. This platform shift is like going from the World Wide Web to the World Wide Ledger. Joe was absolutely correct when he mentioned that the Internet hasn’t been woven for transactional trust — but we have the ability to do this now.

So from a business perspective, you can begin to really innovate on top of this exponential set of technology stacks. A lot of companies quote Everledger as a Blockchain company. I have to correct them and I say that we are an emerging technology company. We use the very best of Blockchain and smart contracts, machine vision, sensorial data points, for us to be able to form the identity of objects.

Now, why is that important? Most financial services companies have really been focused on Know Your Customer (KYC), but we believe that it’s Know Your Object (KYO) that really creates an entirely new context around it.

Now, that transformation and the relationship of the object have already started to move. When you think about Internet of Things (IoT), mobile phones, and autonomous cars — these are largely devices to the fabric of the web. But are they connected to the fabric of the transactions and the identity around those objects?

Insurance companies have begun to understand this. My work in the last 10 years has been deeply involved in insurance. As you begin to build and understand the chain of trust and the chain of risk, then tectonic plate shifts in financial services begin to unfold.

Apps and assets, on and off the chain

Fox: It’s not just about the chain, it’s about the apps we build on top, and it’s really about what is the value to the buyer and the seller as we build those apps on top.

To Leanne’s point, it’s first going to be about the object. The funny thing is we have struggled to be able to, in a digital way, provide visibility and control of an object and this is going to fix that. In the end, B2B, which is where SAP Ariba is, is about somebody getting something and paying for it. And that physical asset that they are getting is being paid for with another asset. They are just two different forms. By digitizing both and keeping that in a ledger that really cannot be altered — it will be the truth, but it’s open to everyone, buyers and sellers.

Businesses will have to invent ways to control how frictionless this is going to be. I will give you a perfect example. In the past if I told you I could do an international payment of $1 million to somebody in two minutes, you would have told me I was crazy. With Blockchain, one corporation can pay another corporation $1 million in two minutes, internationally.

And on the chain companies like Everledger can build capabilities that do the currency translation on the fly, as it’s passing through, and that doesn’t dis-remediate the banks because how did the $1 million get onto the chain in the first place? Someone put it on the chain through a bank. The bank is backing that digital version. How does it get off the chain so you can actually do something with it? It goes through another bank. It’s actually going to make the banks more important. Again, Blockchain is only as good as the external trust that it inherits.

I really think we have to focus on getting the chain out there and really building these applications on top.

Listen to the podcast. Find it on iTunes. Get the mobile appRead a full transcript or download a copy. Sponsor: SAP Ariba.

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Posted in Ariba, artificial intelligence, Business networks, Cloud computing, Cyber security, enterprise architecture, Enterprise transformation, ERP, Identity, Internet of Things, machine learning, Networked economy, procurement, SAP, SAP Ariba, Security, Spot buying | Tagged , , , , , , , , , , , | Leave a comment

Inside story of building a global security operations center for cyber defense

The next BriefingsDirect inside story examination of security best practices focuses on the building of a global security operations center (SOC) for cyber defense.

Learn here how Zayo Group in Boulder, Colorado built a state-of-the-art SOC as it expanded its international managed security service provider practice.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript.

Hear directly from Mike Vamvakaris, Vice President of Managed Cyber Security at Zayo Group, on the build-out, best practices, and end-results from this impressive project. The moderator is Serge Bertini, Vice President of Sales and General Manager of the Canada Security Division at Hewlett Packard Enterprise (HPE).

Serge Bertini: Mike, you and I have talked many times about the importance of managed security service providers (MSSPs), global SOCs, but for our readers, I want to take them back on the journey that you and I went through to get into the SOC business, and what it took from you to build this up.

So if you could, please describe Zayo’s business and what made you decide to jump into the MSSP field.

Mike Vamvakaris: Thanks for the opportunity. Zayo Group is a global communications and infrastructure provider. We serve more than 365 markets. We have 61 international data centers on-net, off-net, and more than 3,000 employees.

Mike Vamvakaris copy

Vamvakaris

Zayo Canada required a SOC to serve a large government client that required really strict compliance, encryption, and correlational analysis.

Upon further expansion, the SOC we built in Canada became a global SOC, and now it can serve international customers as well. Inside the SOC, you will find things such as US Federal Information Processing Standard (FIPS) 140-2 security standards compliance. We do threat hunting, threat intelligence. We are also doing machine learning, all in a protected facility via five-zone SOC.

This facility was not easy to build; it was a journey, as we have talked about many times in person, Serge.

Holistic Security

Bertini: What you guys have built is a state-of-the-art facility. I am seeing how it helps you attract more customers, because not only do you have critical infrastructure in your MSSP, but also you can attract customers whose stringent security and privacy concerns can be met.

Vamvakaris: Zayo is in a unique position now. We have grown the brand aggressively through organic and inorganic activities, and we are able to offer holistic and end-to-end security services to our customers, both via connectivity and non-connectivity.

For example, within our facility, we will have multiple firewalling and distributed denial-of-service (DDoS) technologies — now all being protected and correlated by our state-of-the-art SOC, as you described. So this is a really exciting and new opportunity that began more than two years ago with what you at HPE have done for us. Now we have the opportunity to turn and pivot what we built here and take that out globally.

Bertini: What made you decide on HPE ArcSight, and what did you see in ArcSight that was able to meet your long-term vision and requirements?

Turnkey Solutions

Vamvakaris: That’s a good question. It wasn’t an easy decision. We have talked about this openly and candidly. We did a lot of benchmarking exercises, and obviously selected HPE ArcSight in the end. We looked at everyone, without going into detail. Your listeners will know who they are.

But we needed something that supported multi-tenancy, so the single pane of window view. We are serving multiple customers all over the world, and ArcSight allowed us to scale without applying tremendous amount of capital expenditure (CAPEX) investment and ongoing operational expenditure (OPEX) to support infrastructure and the resources inside the SOC. It was key for me on the business side that the business-case was well supported.

We had a very strict industry regulation in working with a large government customer, to be FIPS-compliant. So out of the box, a lot of the vendors that we were looking at didn’t even meet those requirements.

Another thing I really liked about ArcSight, when we did our benchmarking, is the event log filtration. There really wasn’t anyone else that could actually do the filtration at the throughput and the capacity we needed. So that really lent itself very well. Just making sure that you are getting the salient events and kind of filtering out the noncritical alerts that we still need to be looking at was key for us.

Something that you and I have talked about is the strategic information and operations center (SIOC) service. As a company that knew we needed to build around SOC, to protect our own backbone, and offer those services to our extended connectivity customers, we enlisted SIOC services very early to help us with everything from instant response management, building up the Wiki, even hiring and helping us retain critical skill sets in the SOC.

From an end-to-end perspective, this is why we went with ArcSight and HPE. They offered us a turnkey solution, to really get us something that was running.

The Trifecta: People, Process, Technology

Bertini: In this market, what a lot of our customers see is that their biggest challenge is people. There are a lot of people when it comes to setting up MSSPs. The investment that you made is the big differentiator, because it’s not just the technology, it’s the people and process. When I look at the market and the need in this market, there is a lack of talented people.

Serge Bertini (1)

Bertini

How did you build your process and the people? What did you have to do yourself to build the strength of your bench? Later on we can talk a little bit more about Zayo and how HPE can help put all of this together.

Vamvakaris: We were the single tenant, if you will. Ultimately we needed to go international very quickly. So we went from humble beginnings to an international capability. It’s a great story.

For us, you nailed it on the head. SOC, the technology obviously is pertinent, you have to understand your use cases, your policies that you are trying to use and protect your customers with those. We needed something very modular and ArcSight worked for that.

But within the SOC, our customers require things like customized reporting and even customized instant-response plans that are tailored to meet their unique audits or industry regulations. It’s people, process and tools or technology, as they say. I mean, that is the lifeline of your SOC.

One of the things we realized early on, you have to focus on everything from your triage, to instant response, to your kill-chain processes. This is something we have invested significantly in, and this is where we believe we actually add a lot of value to our customers.

Bertini: So it’s not just a logging capability, you guys went way beyond providing just the eyes on the glass to the red team and the tiger team and everything else in between.

Vamvakaris: Let me give you an example. Within the SOC, we have SOC Level 1, all the way to Level 3, and then we have threat hunting. So inside we do threat intelligence. We are now using machine-learning technologies. We have threat hunting, predictive analytics, and we are moving into user behavior analysis.

Remember the way I talked about SOC Level 1, Level 2, Level 3, this is a 24×7, 365-day facility. This is a five-zone SOC for enhanced access control, mantraps inside to factor biometric access control. It’s a facility that we are very proud of and that we love showcasing.

Bertini: You are a very modest person, but in the span of two years you have done a lot. You started with probably one of the largest mammoth customers, but one thing that you didn’t really talk about is, you are also drinking your own champagne.

Tell us a little bit more about, Zayo. It’s a large corporation, diverse and global. Tell us about the integration of Zayo into your own SOC, too.

Drinking your own Champagne

Vamvakaris: Customers always ask us about this. We have all kinds of fiber or Ethernet, large super highway customers I call them, massive data connectivity, and Zayo is well-known in the industry for that; obviously one of the leaders.

The interesting part is that we are able to turn and pivot, not only to our customers, but we are also now securing our own assets — not just the enterprise, but on the backbone.

So you are right, we sip our own champagne. We protect our customers from threats and unauthorized data exfiltration, and we also do that for ourselves. So we are talking about a global multinational backbone environment.

Bertini: That’s pretty neat. What sort of threats are you starting to see in the market and how are you preventing those attacks, or at least how can you be aware in advance of what is coming down the pipe?

Vamvakaris: It’s a perpetual problem. We are invested in what’s called an ethical hacking team, which is the whole white hat/black hat piece.

In practice, we’re trying to — I won’t say break into networks, but certainly testing the policies, the cyber frameworks that companies think they have, and we go out of our way to make sure that that is actually the case, and we will go back and do an analysis for them.

If you don’t know who is knocking at the door, how are you going to protect yourself, right?

So where do I see the market going? Well, we see a lot of ransomware; we see a lot of targeted spear phishing. Things are just getting worse, and I always talk about how this is no longer an IT issue, but it’s a business problem.

People now are using very crafty organizational and behavior-style tactics of acquiring identities and mapping them back to individuals in a company. They can have targeted data exfiltration by fooling or tricking users into giving up passwords or access and sign all types of waivers. You hear about this everyday somewhere that someone accidentally clicked on something, and the next thing you know they have wired money across the world to someone.

So we actually see things like that. Obviously we’re very private in terms of where we see them and how we see them, but we protect against those types of scenarios.

Gone are the days where companies are just worried about their customer provided equipment or even cloud firewalls. The analogy I say, Serge, is if you don’t know who is knocking at the door, how are you going to protect yourself, right?

You need to be able to understand who is out there, what they are trying to do, to be able to mitigate that. That’s why I talk about threat hunting and threat intelligence.

Partners in Avoiding Crime

Bertini: I couldn’t agree more with you. To me, what I see is the partnership that we built between Zayo and HPE and that’s a testament of how the business needs to evolve. What we have done is pretty unique in this market, and we truly act as a partner, it’s not a vendor-relationship type of situation.

Can you describe how our SIOC was able to help you get to the next level, because it’s about time-to-market, at the end of the day. Talk about best practices that you have learned, and what you have implemented.

Vamvakaris: We grew out to be an international SOC, and that practice began with one large request for proposal (RFP) customer. So we had a time-to-market issue compressed. We needed to be up and running, and that’s fully turnkey, everything.

When we began this journey, we knew we couldn’t do it ourselves. We selected the technology, we benchmarked that, and we went for the Gartner Magic Quadrant. We were always impressed at HPE ArcSight, over the years, if not a decade, that it’s been in that magic quadrant. That was very impressive for us.

But what really stood out is the HPE SIOC.

We enlisted the SIOC services, essentially the consulting arm of HPE, to help us build out our world-class multizone SOC. That really did help us get to market. In this case, we would have been paying penalties if we weren’t up and running. That did not happen.

The SIOC came in and assessed everything that we talked about earlier, they stress-tested our triage model and instant response plan. They helped us on the kill chain; they helped us with the Wiki. What was really nice and refreshing was that they helped us find talent where our SOC is located. That for me was critical. Frankly, that was a differentiator. No one else was offering those types of services.

Bertini: How is all of this benefitting you at the end of the day? And where do you see the growth in your business coming for the next few years?

Ahead in the Cloud

Vamvakaris: We could not have done this on our own. We are fortunate enough that we have learned so much now in-house.

But we are living in an interconnected world. Like it or not, we are about to automate that world with the Internet of things (IoT), and always-on mobile technologies, and everyone talks about pushing things to the cloud.

The opportunity for us is exciting. I believe in a complete, free, open digital world, which means we are going to need — for a long time — to protect the companies as they move their assets to the cloud, and as they continue to do mobile workforce strategies — and we are excited about that. We get to be a partner in this ecosystem of a new digital era. I think we are just getting started.

The timing then is perfect, it’s exciting, and I think that we are going to see a lot of explosive growth. We have already started to see that, and now I think it’s just going to get even more-and-more exciting as we go on.

It’s not just about having the human capabilities, but it’s also augmenting them with the right technologies and tools so they can respond faster, they can get to the issues.

Bertini: You have talked about automation, artificial intelligence (AI), and machine learning. How are those helping you to optimize your operations and then ultimately benefitting you financially?

Vamvakaris: As anyone out there who has built a SOC knows, you’re only as good as your people, processes, and tools. So we have our tools, we have our processes — but the people, that cyber security talent is not cheap. The SOC analysts have a tough job. So the more we can automate, and the more we can give them help, the better. A big push now is for AI, which really is machine learning, and automating and creating a baseline of things from which you can create a pattern, if you will, of repeatable incidents, and then understanding that all ahead of time.

We are working with that technology. Obviously HPE ArcSight is the engine to the SOC, for correlational analysis, experience-sampling methods specifically, but outside there are peripherals that tie into that.

It’s not just about having the human capabilities, but it’s also augmenting them with the right technologies and tools so they can respond faster, they can get to the issues; they can do a kill chain process quickly. From an OPEX perspective, we can free up the Level 1 and Level 2 talent and move them into the forensic space. That’s really the vision of Zayo.

We are working with technologies including HPE ArcSight to plug into that engine that actually helps us free up the incident-response and move that into forensics. The proactive threat hunting and threat intelligence — that’s where I see the future for us, and that’s where we’re going.

Bertini: Amazing. Mike, with what you have learned over the last few years, if you had to do this all over again, what would you do differently?

Practice makes perfect

Vamvakaris: I would beg for more time, but I can’t do that. It was tough, it was tough. There were days when we didn’t think we were going to make it. We are very proud and we love showcasing what we built — it’s an amazing, world-class facility.

But what would I do differently? We probably spent too much time second-guessing ourselves, trying to get everything perfect. Yet it’s never going to be perfect. A SOC is a living, breathing thing — it’s all about the people inside and the processes they use. The technologies work, and getting the right technology, and understanding your use cases and what you are trying to achieve, is key. Not trying to make it perfect and just getting it out there and then being more flexible in making corrections, [that would have been better].

In our case, because it was a large government customer, the regulations that we had to meet, we built that capability the first time, we built this from the ground up properly — as painful as that was, we can now learn from that.

In hindsight, did we have to have everything perfect? Probably not. Looking back at the compressed schedule, being audited every quarter, that capability has nonetheless put us in a better place for the future.

Bertini: Mike, kudos to you and your team. I have worked with your team for the last two to three years, and what you have done has showed us a miracle. What you built is a top-class MSSP, with some of the most stringent requirements from the government, and it shows.

Now, when you guys talk, when you present to a customer, and when we do joint-calls with the customers — we are an extension of each other. We at HPE are just feeding you the technology, but how you have implemented it and built it together with your people, process, and technology — it’s fantastic.

So with that, I really thank you. I’m looking forward to the next few years together, to being successful, and bringing all our customers under your roof.

Vamvakaris: This is the partnership that we talked about. I think that’s probably the most important thing. If you do endeavor to do this, you really do need to bring a partner to the table. HPE helped us scale globally, with cost savings and an accelerated launch. That actually can happen with a world-class partnership. So I also look forward to working with you, and serving both of our customer bases, and bringing this great capability out into the market.

Listen to the podcast. Find it on iTunes. Get the mobile app. Download the transcript. Sponsor: Hewlett Packard Enterprise.

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Posted in big data, Cloud computing, Cyber security, data analysis, data center, Enterprise architect, Hewlett Packard Enterprise, managed services, risk assessment, Security | Tagged , , , , , , , , , | Leave a comment