ScienceLogic: Mike, what’s your background working with network and management system tools?

Mike Lawson: Before joining Apptis, I worked for the Air Force, mainly in satellite communications for almost nine years. I’m probably most familiar with HP OpenView and BMC Remedy. I managed a team that used them but wasn’t involved in tool selection; like many other federal IT workers, we didn’t have a choice of tools because there were existing enterprise licenses and maintenance contracts.

I also saw a large systems integrator do a full Remedy/Crystal Systems/OpenView installation. It took 6 weeks to stand up and customize to meet just the basic monitoring requirements, and it cost something like half a million dollars. At the time, I thought that wasn’t bad and was a pretty typical experience.

ScienceLogic: Coming from where you did, what’s your take on EM7?

Mike Lawson: Honestly, I didn’t believe that EM7 could really do all that it claimed. In many ways, it was the complete opposite of what I had seen first-hand with other monitoring solutions. Could it really cover that much functionality? At relatively much lower cost to the customer and without the licensing nightmare?

That quickly changed when I needed to understand the system enough to run it at a customer’s site. I went back over the training docs I received during my initial training class and jumped in; now, 6 months later, I’m the EM7 expert and can tell you that it delivers on all those promises. (But I still need to show people to get them to believe it too)

I preach the “EM7 gospel” and when anyone wants to talk monitoring, I ask about the universal pain points: cost, maintenance contracts and licensing, and then I explain EM7. The cost difference is real; the solution is based on capacity, so there’s no licensing and it’s easy to use. They are shocked to learn that they can buy multiple EM7 appliances and years of maintenance for what they paid for most other tools.

ScienceLogic: Apptis won the contract for monitoring aboard the USNS Mercy. We love that you’re using EM7 for one of the Navy’s hospital ships. Can you tell us more?

Mike Lawson: The USNS Mercy is a Military Sealift Command hospital ship. Some stats:

• 849 feet long (nearly the size of a football field)
• 12 fully-equipped operating rooms, a 1,000 bed hospital facility, digital radiological services, a diagnostic and clinical laboratory, a pharmacy, an optometry lab, a CAT scan and two oxygen producing plants
• Crew: 61 civilian mariners, 956 Naval medical staff, and 259 Naval support staff

The USNS recently departed on a five-month humanitarian mission in the Western Pacific and Southeast Asia in support of Pacific Partnership 2008. The partnership provides international medical, dental and engineering teams this summer to provide humanitarian support and conduct joint, combined, and cooperative Civil-Military Operations in order to improve regional stability and build partner capacity to respond to natural disasters and pandemic.

For the most part, the ship’s network is self-contained, but can also use a landline when docked. The network covers 400 devices, including Windows/Exchange servers and VMware for server virtualization. Prior to using EM7, none of the monitoring was integrated; each system was independently monitored through individual vendor-specific consoles.

Out of the box, EM7 provided integrated systems, application and network management for all network gear, applications and virtual machines in one solution. We didn’t have to do a lot of customization – EM7 includes best-practice based thresholds, event and monitoring templates and this covered what USNS Mercy needed to monitor.

ScienceLogic: You’re a systems integrator with a very useful “customer point of view” when it comes to looking at tools. From that perspective, can you share what you think are the biggest benefits that EM7 provides?

Mike Lawson: First of all, EM7 stands up right away. We’re talking days, not weeks. In contrast to the lengthy installation of OpenView and Remedy I witnessed during my military career, I was able to configure, customize, and implement the EM7 solution for the USNS Mercy in three days.

Second, it’s easy to train people on and the support is outstanding. This judgment is from first-hand experience. Right before the USNS Mercy departed on its latest voyage, the system administrator I had trained on EM7 left, so I had all of a day to train some new EM7 admins. I prepared a seven-page “cheat sheet” and over a 3-hour conference call, we walked through the entire EM7 solution; I haven’t gotten a support call since.

And when a problem did crop up with a device being discovered incorrectly, ScienceLogic was very responsive. We contacted ScienceLogic support on a Saturday and they created and emailed us a video to help troubleshoot the same day. Within 30 seconds of watching the video, the problem was resolved.

Finally, EM7 helps us be good stewards of the government’s money. This is very important to me personally and to Apptis as a company. Because EM7 is cheaper and deploys so quickly and easily, you might think that it’s just the opposite of what a system integrator would want to use. But that’s short-term thinking. We believe in deliver the most value for customers every time. It’s what creates trust and long-term relationships with our customers. Instead of that half million spent on standing up the solution and basic setup, I’d much rather (and I know the customer would rather) spend that on fine-tuning or extending the solution to do much, much more.

As a former government employee, I know what it’s like to use a tool that doesn’t fit my needs. EM7 proves that the best solution can totally break the old model of costly, lengthy installations. EM7 has the right model: the right solution and the right price delivered as an appliance that is easy to deploy, train on and use.

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We’re calling this part II - and it’s being advertised as:

“How to conduct a risk analysis and produce a high impact deliverable to senior management.”

With topics:

• The life-cycle of a quantitative risk analysis
• Key control opportunities against targeted attacks
• Getting senior management to understand the risk posed to the business

I got to do the Q&A backchannel on the last presentation, and there were great questions asked.  I think this presentation will be even more exciting, as it’ll cover both analyst and management considerations.

If you’re a regular reader of the blog, I don’t think you’ll have to have attended the last one for this one to be worth your while.

REPEAT PERFORMANCES OF THE FIRST WEBEX ARE AVAILABLE

And if you missed it the first time, the playback of the first preso is here, and the slides are here.

New York City considers plan to bring fiber to public housing residents: Wireless networks are definitely out in the recommendations of a private consultant to the city's Broadband Advisory Committee, ComputerWorld reports. They may opt to use $4m in a fund from Verizon and a potential $8m from the two incumbent cable operators.

• Implement a framework for risk assessment and mapping.
• Establish the responsibilities of risk managers with their areas of responsibility.
• Identify and define the risks to which the business is exposed and what constitutes a risk event or "near miss" so that incidents can be mapped to specific risks.
• Determine the threat level, and focus on those risks with the highest impact on performance.
• Establish levels of controls for processes commensurate with the perceived threat.
• Record and retain risk incident and near-miss information.
• Conduct periodic risk assessments to determine changes in the operations risk profile and assess control performance.

Granting the presence of perverse incentives, what are the operating mechanics that cause widespread bad loans (where the higher interest rates do not adequately cover increased risk of loss) under our present system? After all, the bad lending, while it has a surface plausibility to bankers under cost pressure, is, by definition, not rational, at least for the lending banks and the wider civilization. How then does bad lending occur so often? 

It occurs (partly) because there are predictable irrationalities among people as social animals. It is now pretty clear (in experimental social psychology) that people on the horns of a dilemma, which is where our system has placed our bankers, are extra likely to react unwisely to the example of other peoples' conduct, now widely called "social proof". So, once some banker has apparently (but not really) solved his cost-pressure problem by unwise lending, a considerable amount of imitative "crowd folly", relying on the "social proof", is the natural consequence. Additional massive irrational lending is caused by "reinforcement" of foolish behavior, caused by unwise accounting convention in a manner discussed later in this letter. It is hard to be wise when the messages which drive you are wrong messages provided by a mal-designed system. 

In chemistry, if you mix items that explode in combination, you always get in trouble until you learn not to allow the mixture. So also, in the American banking system.

So Munger identified this volatile combination about 17 years ago at least. In the same letter Warren Buffett added:

A few small sections of Mr. Munger's letter have been excluded: When Berkshire's report exceeds 72 pages, we have problems in binding it. Because of this limitation, either Charlie's letter or mine had to be cut and I decided a coin flip was appropriate. In fact - as things turned out - I finally decided nine flips were appropriate. -- W.E.B.

Only thing I would (and did) add to iang's post is that historically speaking when things are looking bad is when deals are found. Jason Zweig (channeling Ben Graham)

"Could things possibly get worse? I don't know, but I am an optimist -- so I certainly hope things do get worse. Nothing else should satisfy an intelligent investor."

I am not sure what it is with Richard Stiennon.  Maybe his mom beat him with a NAC stick when he was young.  Hence his Jack Nicholson looks (more like the Joker in Batman, than Col Jessep in A Few Good Men) and his total disdain for NAC.  In any event Richard never seems to miss a chance to take a pot shot at NAC.  I have fired back and debated him many times on this.  In fact I am convinced that Richard's problem with NAC is that like Uncle Joe, he is just moving a little slow.  Richard still thinks of NAC as Cisco???s network admission control, circa Dec ???03.  He has not gotten up to speed on anything happening with NAC since.  Richard is going to debate NAC with Joel Snyder according to this article by Tim Greene today. My prediction is Snyder by a knockout in 3 rounds or less.

Richard???s latest NAC knock comes on a comment to an excellent article by the Hoff.  Chris takes a bold stand for someone working for a vendor and calls BS on the whole analyst thing (I will write more about that later in this article). Richard being an ex-analyst himself (lets face it, with Richard you can take the man out of the analyst job, but you can???t take the analyst out of the man), takes exception to Hoff???s ???whining??? (Richards words, not mine) and tries to tell Hoff that giving up is not the answer and the way to show up analysts, is to prove them wrong.  Great Richard you try to prove them wrong, when because of what they report you don???t have a market, can???t get any capital and have no visibility.  I guess that is when it is time to move on to the next gig, right? Then Richard has a bad NAC deja vu and feels it necessary to write this:

???Look how easy it is to one up the analyst firms, who as near as I can tell support Network Admission Control universally. Everyone except the folks at Updata Ventures know how seriously flawed NAC is with only one viable market, edu.???

I assume Richard is referring to Updata recently leading the Bradford Networks VC round. But more importantly Richard it is time to call a code red on you and give you the cold hard truth.  Richard the fact is that the edu market is not the only viable market for NAC.  In fact, one of the biggest customers of NAC is the DoD.  That is right Richard at least 3 of the 4 armed forces use NAC in helping to secure their networks. To paraphrase my friend Col Jessep - Richard, you want the truth, you can???t handle the truth!  You sleep securely under the blanket of protection that NAC provides.  If it is good enough to help ???clean the sand??? out of laptops coming home from SWA (that is SouthWest Asia, like in Iraq and Afghanistan, in case you don???t know Richard), it should be good enough for you. Think about that next time you are about to bad mouth NAC.

Let me give you some other truths you may not like Richard.  Why do you think every switch vendor (of which we partner with many of them) is lining up and bringing out NAC solutions?  Why has Microsoft put such a big push on NAP?  Why despite the Luddites like you does NAC still draw crowds at conferences like Interop (ask Joel about that).  Richard we are still signing new major OEM partners.  I am afraid you are the one sadly out of touch on this one Richard.  Just as you are out of touch in missing Hoff???s point in his article.

As to Hoff???s article, as I said I give Chris credit for speaking his mind. I spend an ungodly amount of my time speaking with analysts and trying to ???learn??? from them while at the same time trying to educate them.  I am constantly amazed that so many analysts (and press for that matter) just take a vendors word as gospel. I have seen research reports from analysts big and small, that I am sure did not have any more research done than calling a handful of vendors and listening to their spiel. Too many of these vendors if they do speak to customers, base their findings on such a small sample that it is impossible to have an accurate picture.

Personally, like Hoff says, who watches the watchers is the truth. I would like to see a code of conduct among analysts. I would start by dictating that vendors cannot pay analysts.  Take the payola out of the equation the way they did to the DJ/Radio business in the late 50s. Next analyst reports have to come with metrics to back up the findings. I want to know how many customers they spoke to, how big they were, how they were found, etc.  A vendor giving an analyst a real live???pet??? customer is not real research. I want to know if the customer pays the analyst. It is a dirty business.

Hey let me be clear, I play the game as well as the next guy.  But I agree with Hoff we need to clean up the rules to make the whole analyst thing more fair, viable and valuable.