Energizer says Microsoft's a great host
SAN FRANCISCO--One might think that as a CIO, it would be tough to have someone else running all of your desktops and many of your servers.
Not so, says Randy Benz, CIO of Energizer. For more than three years, Energizer has handed off much of those duties to Microsoft. And he'd be fine with Microsoft running just about everything, save perhaps for the company's iconic battery-powered bunny.
"If I never run another server in there for the rest of my life, I'm as happy as can be," Benz said over lunch last week following the launch of Microsoft Online, essentially the company's effort to turn the Energizer experiment into a business.
Energizer CIO Randy Benz said he's happy to have Microsoft running his servers. That gives his workers time to do other things, like offer specialized computer training for workers.
(Credit: Energizer)Initially, Microsoft is offering to host only a few of its server products--Exchange and SharePoint, although over time businesses will gain the option to run most of Microsoft server products as a service running from inside the software maker's data centers.
So, one might reasonably ask what Benz and his team are doing if they aren't running all the servers and managing desktops?
For one thing, his group now offers a much broader range of computer training for Energizer workers. Beyond just teaching how to use specific products, Benz said Energizer now has classes for different types of workers focused on their particular role. One recent creation is a specific program just for road warriors.
"It cuts across products," Benz said.
Of course, businesses that don't want to handle the more mundane IT tasks have had other options for a while, such as more conventional outsourcing in which a third-party company comes in and handles things like help desk and server management.
The problem, Benz said, is it typically doesn't save much money. Any efficiencies the outsourcer gets because of its expertise are offset by its profit margins.
By having Microsoft run its software from its own data centers, though, Benz figures that it will have enough scale to actually be more cost effective.
Not everything that Microsoft has been doing with Energizer is going to be offered broadly. But, Benz said, that has more to do with the fact that some of the things aren't good businesses for Microsoft, as opposed to the fact they didn't work out for Energizer.
"There's nothing we've done that I'm disappointed in," he said. Rather, he is looking to what he can hand over next. The two companies recently added a hosted business intelligence offering, something that isn't yet part of the services Microsoft is offering broadly.
Benz also knows the managed service route isn't for all customers. Even though it resembles outsourcing, he said it is actually more suited to customers that want to be on the cutting edge. Having Microsoft manage their software means that Energizer is always running the latest versions, for better or worse.
,p> "This has to be targeted at people that want to keep up," he said. "The reason we got into services arena is to avail (ourselves) of newer stuff."One of the areas the company is looking at keenly, Benz said, is Microsoft's plan to offer Web-based versions of Office applications, the company licenses the full version of Office for every PC, but limits the number of PCs it gives out accordingly. Having a lower cost Web-only option for workers that only need light editing abilities might mean more workers get access to technology
"It may be a breakeven for us but we are reaching more of our people more appropriately," he said. "We'll revisit it when the products are out."
Microsoft has said it will have technology preview versions of the Office apps will be available later this year, but hasn't said when the product will be formally released or when the business version might be available. For consumers, the Office Web apps will be part of Office Live, while businesses will be able to provide access as part of Microsoft's SharePoint server software.
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina. 
"The problem, Benz said, is it typically doesn't save much money. Any efficiencies the outsourcer gets because of its expertise are offset by its profit margins. "
I'm willing to bet if it wasn't for the periodic PR they put out (they do), MSFT would probably be charging them a mint.
Also, what are his plans for a crash a'la London Stock Exchange style (I notice MSFT doesn't brag on them as much anymore...) See also: http://www.dailymail.co.uk/news/worldnews/article-1053241/Inquiry-launched-Stock-Exchange-meltdown-furious-traders-resume-work.html
On a serious note, I'm not really saying that to be snarky. What kind of plans does Energizer have for that sort of thing, since they probably don't have quite the internal staff or resources to handle what happens? Do they just sit and grind their teeth or what?
/P
Funny you should mention the LSE crash:
1) LSE took development and operations back "in-house", using their own staff. The platform was running just fine when it was still outsourced to Accenture and Microsoft. So it's really the opposite of what you're saying. Maybe the LSE will now outsource portions back out instead of trying to do everything themselves.
2) In any case, the LSE has confirmed that the crash was caused by a network issue (likely within Cisco's SONA framework), despite Apple fanboys wanting so badly to blame Microsoft.
Penguinisto is just spreading baseless FUD as usual. He does this on EVERY CNet article which mentions Microsoft. Here are excerpts from an IT World article which discusses the LSE investigation:
http://qwix.com/33
"The LSE has said network software issues were to blame and on Wednesday, the Financial Times suggested that the problems could have occurred between the LSE's Extranex private network (which links the exchange and clients) and the trading gateway to TradElect.
Cisco SONA, or service oriented network architecture, is in use extensively at the exchange. Cisco had not returned calls at the time of writing.
The LSE absolved its core TradElect platform from blame. The system, designed and built by Accenture, runs on HP ProLiant Servers and Microsoft .Net and SQL Server 2000 systems."
I think this IS his job. Lurk around in posts and pounce anytime the word Microsoft is mentioned.
Cool job if you can get it....
Of COURSE you said all this to be snarky. If you hadn't meant to do that, then you wouldn't have posted it in the first place. Even in your own comments you are dishonest with yourself.
Geez... you seriously need to get a life- or rent one if you can't find one of your own. Or just stop posting- you're only embarassing yourself with these comments.
But hey - defend your idol as hard as you can, kids - even if it makes you look dumb. I don't mind.
http://www.arnnet.com.au/index.php/id;383785017;fp;4194304;fpid;1
quote:"She said the problem appeared to lie with Infolect's three interactive gateways, which send out about 10 million separate pieces of market information daily, including share prices, to about 100,000 terminals.
Infolect was launched two years ago in place of the exchange's London Market Information Link platform. It uses Microsoft .net technology and a SQL Server database, and runs on more than 100 Intel-based 32-bit Proliant servers. It its accessed by most of the exchange's member organizations via Extranex, its privately managed IP network. "
...two years ago (2006), Microsoft was bragging very hard on the LSE as their big customer.... now they don't brag so much about it.
--
Even funnier - lots of talk about contingency plans, none about what they involve. After all, if your infrastructure is all based outsourced and out of your control, and it goes down, the most you can hope for is an SLA... but it's still down until it gets fixed. I was just curious as to what Energizer plans to do about that.
Penguinbrain, what does a failing network have anything to do with MS or .NET? NOTHING.
You are just looking for MS issues where they don't exist.
Get your facts straight before trying to respond intelligently. A rare moment for you.
Beyond the above rant the irony is that MS itself probably has contracts with TATA and thus employs hundreds if not thousands of Indian programmers/engineers - so some portion of it might get sent offshore anyway.
Off-shoring typically ends up costing more, in addition to dismal quality and delays. Unless it is a complete call center or something that needs no client interaction or actual development/testing/support, off-shoring is a huge NO-NO.
The big item concerns outsourcing one's infrastructure in the first place.
- by AppleSuxLeo November 24, 2008 11:37 AM PST
- Apple can`t get the basics right...like removeable batteries and memory card slots on handhelds.
- Like this Reply to this comment
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