Industry Verticals READY for Artificial Intelligence in 2018

Imagine what the world would be like if we could harness the multitude of data generated each day to catalyze positive change. What if we had the ability to predict and stop crimes before they happened, or could apply these same methodologies to save lives with better healthcare? Sound like the plots of many familiar movies? With recent advances in artificial intelligence, these outcomes are not only possible, but an exciting reality!

As we move swiftly into this new year, media, analysts and just about everyone is thinking about what will be ‘the next big thing’ in technology. Looking back at 2017, this was a hallmark year for AI enthusiasm and awareness. More industries and organizations embraced digital transformation and have come to value their data as a critical corporate asset. Now, building off of that momentum, 2018 will be the year that AI adoption reaches critical mass among organizations and professionals!

In speaking with customers over the past year, I’ve learned that many have already begun to experiment with machine and deep learning and artificial intelligence; some proactive customers have put AI-enabled capabilities into production, and nearly all are expected to make investments in the coming months. By the end of the year, we expect most enterprise customers will have one or more AI-enhanced services or products in production, and that the majority of smaller and mid-size companies will be executing AI technology evaluations and pilot programs (with some already in production as well).

When deployed strategically, AI technologies equip organizations to derive actionable data insights across virtually all industries, including energy, transportation, education, research, entertainment, hospitality, and so many more. In 2018, we predict the financial services, retail, healthcare and life sciences, and manufacturing industries will realize quick results with human-machine partnerships. Why is this the case?

Optimizing Financial Data

Financial services companies already possess vast data sets and conduct advanced analytics on business and customer trends. This expertise fosters an ideal culture for evaluating and adopting more powerful methods, as data becomes fuel for deep learning approaches. Artificial intelligence can be used to optimize all facets of financial data reporting, from risk assessments and growth projections to client satisfaction and fraud prevention. The ROI of attracting new customers is easily measured, and in 2018, these organizations can further improve performance by better understanding customer needs and reducing fraud and security breaches. As AI enables automated financial decisions at scale, it will converge with another disruptive technology, blockchain, to secure and validate automated transactions.

Maximizing Profit for Retailers

Retail has many potential uses for AI, such as understanding the target markets of products, improving advertising with personal information, and detecting fraudulent online purchases and theft in brick-and-mortar stores. Next year, these capabilities will increasingly become mainstream for small and mid-sized retailers. Dell EMC retail customers will continue to maximize profits by promoting offerings to the most likely buyers and predictively purchasing commodities by time and location. These AI-enabled successes set the foundation for future advances in retail operations, like implementing fully-automated customer support and autonomous product delivery operations.

Standardizing Efficiency in Healthcare

One of the reasons I love working in technology and for Dell EMC is the ability to help our customers leverage technology to advance human progress. In no field is that truer than in healthcare and life sciences, industries that are often the showcase examples for the power of artificial intelligence.

From the discussions we’re having with our healthcare customers, it is likely that in 2018, initial research projects will evolve into standard operating procedures. There is an abundance of image data for many medical ailments, like tumors, which is being used to train AI models to detect these conditions earlier and more accurately. Early results are so promising, that many healthcare providers will regularly use deep learning solutions to support the diagnosis of cancer and other severe conditions this year. I believe the impact of AI in healthcare will be both wide and deep; as healthcare records become progressively digitized and input into deep learning methods, they will help researchers understand health risks, improve detection and monitoring of conditions, and even predict health issues before they arise. That’s incredible progress! Moving forward, I believe that the era of personalized medicine will be furthered by pairing AI technologies with increasingly comprehensive and blockchain-secured data from IOT and other sources that complement lab results and caregiver observations.

Reducing Cost for Manufacturers

Cost reduction is of utmost importance to the manufacturing industry, whether the costs of components, failures, or maintenance. The ability to predict global supply chain costs and customer demand, and intercede before they occur, runs parallel to the advances in the financial services industry I wrote about above. Embedded within manufacturing facilities and complex equipment are sensors that measure item productivity and environmental conditions that impact reliability and maintenance, like power, temperature, and stressors. Our customers tell me that they are already benefitting from this data and leveraging it to develop AI-powered models to predict failures before they happen and improve customer satisfaction. For example, customers can be notified when firmware updates should be applied or support should be contacted, among many other use cases.  Deep learning technologies are so powerful that we use it to bolster the reliability and support of our own offerings.

To me it is clear – artificial intelligence and machine and deep learning will continue to grow as all types of organizations understand the incredible power offered by these technologies. That said, although revolutionary, the transformative results promised through artificial intelligence will not come without effort. To unlock the full capabilities of AI, organizations will have to do the heavy lifting of going “all in” on digital transformation, accelerating their computing methods, and embracing data sovereignty. It will be critical for data to be extensive collected, curated, and made available to all applicable uses cases.

It’s About Knowing Where to Start

Although artificial intelligence has been around for decades, it’s still difficult to understand and use effectively and requires the right expertise and technologies. Fortunately, Dell EMC is the premier vendor for data storage in the world, and we have decades of experience in managing data, enabling data analytics, and working with customers to design and deploy AI solutions for deeper insights. And, it’s about to get even better!

In 2018, building on extensive work with customers and partners, Dell EMC will make simple AI solutions available to customers in all verticals. As we recently announced, our Ready Bundles for Machine Learning and for Deep Learning bring AI capabilities to the masses, including global companies, research labs, governments, and educational institutions. Our carefully designed, optimized, reliable, and scalable solutions integrate advanced processors, storage and networking technologies, and powerful AI-optimized software. These solutions simplify selection, deployment, adoption, and usage for our customers, thus minimizing the cost, effort, and frustration associated with DIY and public cloud solutions.

AI is complex, but we’re focused on simplifying and accelerating the journey for customers and helping more organizations achieve its promise and potential in 2018. The revolution has begun, and we expect all businesses will use and benefit from AI-powered solutions as we close the decade. Dell EMC Ready Bundles for Machine Learning and Deep Learning will deliver these critical capabilities, empowering customers to innovate, compete, and change the world!

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Transforming Security Requires the Right Security Culture

4,000 ransomware attacks per day, almost five times as many attacks on the Internet of Things within only 12 months, and twice the number of DDoS attacks during the same time period: These figures are a testament to the insatiable criminal energy of the hacker community, and are certainly alarming. In the context of increasing data quantities and the growing dependence of the worldwide economy on flawless and secure data handling, the rapid rise in the number of attacks can easily cause IT departments – as well as management – to feel sheer desperation. That’s because each time data is successfully stolen or an IT infrastructure is compromised, the targeted company doesn’t just stand to lose its competitive edge: Its entire survival can be at stake. The company’s image can also take a beating: According to a Deloitte study, 80 percent of all consumers prefer products from companies who appear to protect personal data more successfully.

Bearing all of this in mind, you would think that IT security takes absolutely top priority for CIOs and garners their full attention – right? Unfortunately, the reality of the situation looks different. Everyday operations (which also include daily defense against cyber attacks) eat up the majority of every IT department’s time, and do not leave much room for strategic tasks. Further issues are chronically insufficient IT budgets and, occasionally, a rather reckless attitude: Since data theft can basically only be determined by perusing the depths of endless security logs, many IT departments have opted to stick their head into the sand and failed to modernize their IT security. However, they need to recognize that data theft is a merciless reality for every company, whether it goes noticed or unnoticed.

Furthermore, there are notorious security silos. It is a widely known fact that security is mostly organized in a decentralized fashion in companies, meaning it is divided up based on departments or applications. For instance, the CRM department takes care of CRM security, the ERP department takes care of ERP security, and so on – everyone addresses their own security issues, and hardly any cooperation takes place. As a result, gigantic, home-made security gaps arise over time, and can hardly be handled with the current systems.

Given the extent to which companies depend on smooth IT operations, such gaps are no longer acceptable these days. How can they be remedied? Naturally, the security infrastructure must be modernized. As a further step, though, the organization will need to adjust: The CIO should ideally place the responsibility for IT security in the hands of a Chief Information Security Officer (CISO). A CISO should be responsible for a wide range of tasks – including communicating with management to familiarize them with IT security and its importance. I actually hear over and over again that IT teams are under serious pressure and forced to reduce security measures so as not to impair their respective company’s productivity. It’s understandable why upper management might put them in that situation, but in doing so, they’re playing a game of Russian roulette. Instead, they should use modern technology to maintain productivity without sacrificing security. Of course, the communication between the CISO and the management must also include negotiations on increasing security budgets.

The action list should additionally include rolling out a company-wide set of regulations, securing operational measures, modernizing the system, and training employees. The CISO must take new technologies into consideration – ranging from the cloud to the IoT – while engaging with the topic of compliance, particularly with a view to the European General Data Protection Regulation.

However, removing security gaps created by factors including home-grown security silos will probably constitutes the CISO’s most important task. In order to achieve this, the CISO must ensure that all persons responsible for silos and all department heads sit down together to make mutual decisions and remove barriers to the greatest possible extent.

Integrated security is often suggested in this context. This represents a great general approach, but unfortunately, it does not really do justice to the task at hand. Instead, companies should consider security from the vantage point of the digital transformation and focus on ‘security transformation.’ This concept comprises technology, infrastructure and organization as well as necessary changes to the security culture within companies. This culture will affect all levels and departments, ranging from the boardroom to the IT department (naturally) and individual, standard-level employees, who need to be aware of the consequences of a careless click in an e-mail. This kind of active security culture is the prerequisite for mounting an effective cyber defense.

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The IoT Put to Practical Use: From Projects to Business Models

Although the Internet of Things (IoT) is making massive strides, development of the associated technology – which, in my opinion, numbers among the most exciting IT innovations over the past few decades – is still in its early stages. We still don’t know where the IoT will take us, but analysts have yet to revise their predictions for IoT development. Some of these are quite lofty: For example, certain sources predict that 26 billion IoT objects will be in circulation by 2020, while others have estimated this amount at a staggering 50 billion. Recently, I was surprised to read the following claim regarding IoT development: “In the future, we will be able to integrate nearly any desired physical object into the digital world.”

Enough is enough: I feel compelled to set the record straight. The purpose of the IoT can’t be to integrate ‘nearly any’ object; the underlying principle isn’t to exhaust the limits of technical possibility. There needs to be a practical business model in place behind any IoT application; without this, even the most impressive-seeming networking will not really amount to anything. As I see it, precisely therein lies the most important IoT-related gain that has been made over the past year: The IoT has outgrown the trial stage and become an established, integrated component of business models. The focus has shifted from trying to identify all the possibilities that the IoT has to offer towards using the IoT to make processes more efficient, as well as to enable entirely new processes. In concrete terms, this involves leveraging the IoT to generate revenue and/or save on costs. As such, the IoT is increasingly becoming a fixed component of many business models. Over the course of this development, several preferred areas of application have emerged. Below, I’ve put together a brief overview of the IoT projects we have implemented.

The smart home is often considered the IoT field of application par excellence, incorporating intelligent heating, sensor-controlled curtains, and, of course, the famous IoT refrigerator. While these applications elevate user comfort and security, they are not critical (except, perhaps, to the manufacturers behind them) in the sense that they haven’t become indispensable. For that reason, smart home innovations remain a niche market. Moving beyond the scope of user homes, I feel that the IoT is being put to excellent, practical use in commercial applications.

Industry and production: I don’t want to dredge up the well-worn example of elevators – that would be a disservice to the vast breadth of exciting applications currently used in the field of industry. For example, an Irish company is using an IoT solution to seamlessly monitor concrete production through all phases, from the manufacturing stages to provision at construction sites. This lets employees know precisely when concrete is dry, which allows them to further process it accordingly. Doing so no longer requires estimates or security buffers – which saves a great deal of time, and, therefore, costs.

Agriculture represents a frequently underestimated area of industrial production. The IoT has also taken root in this field – for example, a farm in India uses the IoT to control the health and milk production of its 6,000 head of cattle in real time. This immediately results in improved yields.

Retail: What works for concrete, also works for food: A large British supermarket chain with around 3,000 stores is using the IoT to ensure that the refrigeration chain for frozen products remains uninterrupted from the manufacturer’s facilities through to points of sale, and that the relevant cooling systems are used efficiently so energy isn’t wasted and food doesn’t spoil.

Energy: Many IoT applications are used in the generation of alternative energies. For instance, a Spanish manufacturer is using an IoT solution to monitor and control decentralized photovoltaic systems in a centralized way. This solution also includes weather sensors to enable quick responses to local conditions.

Meanwhile, in the field of healthcare, the frequently discussed fitness trackers are just the tip of the iceberg. In this industry, IoT systems are also used to monitor patients’ cardiac activity or blood sugar levels in their home environment so that the duration of hospital stays can be shortened; automatic alerting of emergency services can be life-saving in this context. Meanwhile, a retirement home in Thailand used an IoT system to reduce service response times by 50 percent, improve resident satisfaction, and reduce the number of nursing staff.

The IoT also plays a decisive role in the smart city. Municipalities use IoT applications to measure traffic flows in real time, which allows them to respond very quickly to congestion on particular routes. Other IoT applications enable intelligent control of street lighting, which sinks energy costs without sacrificing comfort or security for citizens.

All of the above examples illustrate that outside of corporate environments – or ‘out in the field,’ so to speak – IoT solutions often represent the sole means of receiving information about processes in a timely manner and, conversely, of immediately taking measures on-site that are necessary to optimize said processes. The IoT is already being put to practical use, but there is still a great deal of untapped potential as far as this is concerned. We can look forward to new and exciting application scenarios in the future.

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Decoding Customer DNA with Data Science

Digital transformation is a directive that organizations of all shapes and sizes are striving to achieve and for those of us in services, it’s no different. We’re constantly innovating, implementing and improving on capabilities that make it easier for customers to adopt and optimize technology that will transform their businesses and lives. In the recently released Dell Technologies 2018 Predictions, reference was made to how things such as artificial intelligence (AI), augmented reality (AR), machine learning and deep learning (ML, DL) – essentially data science – will work hand-in-hand with humans to enable deeper relationships with customers.

There’s a quote from MIT Media Lab founder, Nicholas Negroponte that says: “Computing is not about computers anymore. It is about living.” I couldn’t agree more. When it comes to services, it’s no longer just about technology, it’s about making support and deployment as smooth as possible and enhancing and augmenting the customer’s experience with the products they’ve purchased.

Today, through connected technologies, we can proactively resolve system issues faster than ever before. We can even predict and address impending problems before they occur. So imagine the future impact that innovations in data science will have on the transformation of the service experience.

The Power of Customer DNA and Data Transparency

I’m a numbers guy. Coming from a background that includes finance and accounting, it’s no surprise I gravitate to them when contemplating and making decisions. From the simple act of using a calculator to track family vacation spending to leveraging the power of big data intelligence to predict outcomes, there is strength and even comfort in being able to base your actions on numeric proof. As customers navigate their digital transformations, they need us to take numbers and data further.

There are many facets of what we refer to as a customer’s “DNA” that need to be understood. Customer DNA goes beyond their IT environment. We need to consider their business objectives, priorities, processes, preferences, and their own customers – all the things that make them successful. The customer journey starts with pre-sales and progresses through multiple stages. IT customers today are already leveraging data-driven, connected technologies for automated proactive and predictive support capabilities, and as they stay connected, IT service providers will be able to better serve them by gaining more information about their systems’ health. Pairing that with other information such as manufacturing, repair, call log and part supply data will result in a more holistic understanding of that customer’s needs.

Transparency is also an important aspect of being able to provide timely value to customers through services. By putting predictive models in front of the customer, having collaborative conversations about the data, and giving them the ability to interact with and explore it, they will be able to ask the questions that are important to them so they can make decisions that are key to their day-to-day operations and how they move forward with their digital transformations. For instance, a customer may have a problem they are struggling to clearly identify within their environment. The data can uncover the true root cause of that issue, validating or negating their perception and helping them get to a better understanding of what’s going on.

Deep Learning = an Even Deeper Understanding

Over the next few years the transition from machine learning to deep learning will facilitate continuous growth models that along with the use of data contextualization, will provide better and better understanding of customer DNA. We use machine learning today with connected technologies leveraging AI for predictive cases, and deep learning, along with the added benefits it brings, is close at its heels.

With deep learning, we move from looking at a handful of scenarios to looking at hundreds of attributes over billions of records and can identify patterns that will equate to a faster, more accurate model that can be extended to multiple parts and lines of business. What used to take days or hours will take minutes and if we understand the behavior of each system in a customer’s environment, insight can be provided back to product design and sales so what is offered to the customer next will be based on their individual, customized needs.

One important theme to remember is that connectivity is a key enabler of this ongoing evolution. In order to train models to predict different aspects of the customer’s experience, it has to be a two-way conversation. The more data received and the farther back it goes, the more accurate and personalized the predictions.

Offsite Doesn’t Have to Mean out of Sight

AR is another exciting piece that will change how customers experience the delivery of services in the coming years. Things are moving from overlays where the repair technician wears an AR headset to bring up 2D instructions (a technical manual is projected to the upper right side of their vision) to entryways, where regardless of the orientation of the tech’s headset, the repair process is oriented in 3D to the exact object itself.

Applying that to connected technology, AI predictions would not only direct the technician to the problem, but with the added benefit of AR, they could perform the fix, reducing the need for higher level techs to go onsite. In addition to preventing and resolving issues, think about what this will mean in terms of possibilities for transferring knowledge to IT staff or being able to provide hands-on training to channel partners.

Faster Time to Insights = Faster Time to Value

As IT service providers, we must continue to recognize the power of getting the right information to the customer at the right time. We must equip our experts with the tools to help solve complex issues and break things down into accessible pieces of data customers can easily consume and act on. The faster we provide actionable insights, the faster issues are resolved and avoided, and system health and performance is optimized.

The innovation of data science enabled by the power of connected technology and the guidance of experts will speed time to value for customers on their investments and move the service experience into new realms. We will see IT services becoming even more predictive, more effortless and much more personalized. The transformative possibilities are truly limitless.

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When the Going Gets Tough, the PowerEdge XR2 Gets Going

Presenting the Small but Mighty PowerEdge XR2

Picture a tiny, tough, mobile data center that packs a punch, fits into the tightest of spots, takes pretty much everything that might be thrown at it right on the chin, and still comes out fighting. You’ve got it – it’s the latest addition to the PowerEdge family – the brand new XR2.

Ideal for Tough Conditions and Tight Spaces

Part of our latest family of 14th generation servers, the XR2 offers the latest and greatest industry-first security features and enhanced systems management, but with the added benefit of being small, lightweight and rugged. This server is ideal for situations where you cannot use a standard-sized server, due to space limitations or tough conditions, but you still need a lot of compute power, close to the action, maybe for fog computing, virtualization, analytics or mass storage.

Light, Tough and Resistant

The XR2 measures just 52.5 cm (20.67 inches) rack depth and is lightweight at a maximum weight of 13kg (28lbs). It is resistant to shock and vibration plus capable of operating in temperatures of up to 45 degrees C° (113F°). In fact, it can tolerate 55 degrees C° for up to eight hours and is certified suitable for telecom and military use in situations, where failure is frankly not an option. The XR2 features an optional filtered bezel for improved dust protection. Compliant with DNV, IEC 60945, and MIL-STD-810G, this little beauty has optional, rugged sliding rails for installation in standard four-post racks or in transit cases.

Additional Security

In addition to all the usual PowerEdge security features that you have come to know and love, a common access card reader on the XR2 provides additional authentication. If, for whatever reason, you need to get out of dodge in a hurry, instead of taking a hammer to the server or being forced to pull out and carry the hard drives, all you need to do is simply remove the common access card reader and the server is rendered useless with all the data automatically encrypted.

When the Going Gets Tough, the Tough Get Going

In what situations would you need to use the XR2? Perhaps, you are an emergency responder, saving lives in the back of an ambulance? Maybe you work on a dusty factory floor or busy construction site? You could be sitting in the back of a Humvee in the desert on covert, military operations and need satellite communications to send critical information back to HQ. It is hot, dusty and sandy. If a mortar blows up a half a mile away, the server needs to remain operational. If so, the XR2 is right down your alley.

Alternatively, you could be running video surveillance operations on a large ship, down in the greasy engine room, dealing with vibrations caused by waves and high winds. Or you are perhaps doing mapping and spatial analytics on an oil rig in the Arctic in sub-zero temperatures. In all these situations, without a server, you have no way of filtering the data, making calculations on the fly, or conducting analytics at the edge. Everything must go back to the data center, resulting in delays and negative impact to cost, bandwidth, latency and storage. The good news is that in all these scenarios, the PowerEdge XR2 will shine.

Consistency From the Data Center to the Field

The XR2 reflects our 20 years plus experience in developing award-winning server technology. Other vendors tend to farm the technology out but we own the process end-to-end and are responsible for development, maintenance, sales and support. With this server, you get all the key tenets of the PowerEdge family – high performance, versatility, high storage availability, enterprise-grade, industry-leading components, flexible configuration options, global support, and the enhanced systems management of standard and OEM-ready servers.

IT Infrastructure Solutions for Every Environment

I’m guessing that when you hear the word “server”, you probably pictured racks in a secure, temperature-controlled data center environment with redundant connections to the Internet, power direct from one or more local utilities, diesel generators, vast banks of batteries and huge cooling systems. But, you can now add an image of the small, tough, lightweight PowerEdge XR2 on the move!

I believe that Dell EMC provides modern IT infrastructure solutions for every possible environment with the PowerEdge XR2 delivering Tier 1 quality and support to customers, who need rugged, small and powerful servers.

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Future-Proof Storage Loyalty Program Expands with More Products and Streamlined Maintenance Pricing

Dell EMC has improved the Future-Proof Storage Loyalty Program with the addition of high end, unstructured and data protection storage products and straightforward support pricing.

Since Dell EMC announced the midrange products in the Future-Proof Storage Loyalty Program less than 30 days ago, the response has been everything we could have hoped for. The feedback has been tremendous because the program offers buyers a sense of security and confidence when making a purchase decision.

Customers, partners, and even competitors all appreciate the business and technology value embodied by the program. Yet the one common question has been, “When do other products join the program?”  So in keeping with the customer-first value of our culture code, Dell EMC answered by adding new products to the Future-Proof Storage Loyalty Program in the form of high-end, unstructured, and data protection storage products. And we bring the Clear Price Maintenance Framework for Storage Appliances, which we communicated to our ‘family’ at Dell EMC World last May, into the Future-Proof program.

This announcement adds Dell EMC VMAX All-Flash, XtremIO X2, Isilon, ECS (Elastic Cloud Storage) appliance, Data Domain and Integrated Data Protection Appliance (IDPA) to the list of products along with the midrange Dell EMC Unity and SC Series products in the Future-Proof Storage Loyalty Program.

Future-Proof is a customer program designed to provide investment protection with a set of world-class technology capabilities and programs that enable Dell EMC storage products to provide value for the entire lifetime of applications. The Future-Proof program is different from other offers because there is no additional cost in terms of product price and only a standard maintenance contract is required.

Each of the benefits above are tailored to match the unique capabilities of each of the products and the specific requirements of the products’ respective users. And Clear Price delivers fair, cost-effective and predictable support costs for storage appliances.

New Future-Proof Storage Loyalty Program highlights include:

◈ Products in the program now all carry a 3-Year Satisfaction Guarantee.

◈ Hardware Investment Protection has been a hallmark of Dell EMC primary storage products and is carried to VMAX All Flash, XtremIO X2, Isilon, Data Domain and IDPA in addition to Dell EMC Unity and SC Series.

◈ The Clear Price Maintenance Framework for Storage Appliances (Clear Price) is available for all products except SC Series.

◈ All-Flash products carry the 4:1 All-Flash Storage Efficiency Guarantee.

◈ Never-Worry Data Migrations help users transition to new storage technologies, led by VMAX All Flash, Isilon, and ECS, in addition to Dell EMC Unity and SC Series.

◈ All-Inclusive Software is provided for VMAX All Flash – shipping with its FX Package, XtremIO X2 and ECS, along with Dell EMC Unity and SC All-Flash products, to enable customers to get up and running with the software and licenses that come in the box.

◈ Built-In Virtustream Storage Cloud benefit is available only with Dell EMC Unity.

As a user of Dell EMC storage, the Future-Proof Storage Loyalty Program delivers lower acquisition and support costs as products evolve and improve, simple technology transitions, and the peace of mind that customers get more than what they pay for – backed by written guarantees.

Simply put, Future-Proof is all about our customers and offering them what we believe is the best loyalty program in the industry.

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