Transcript
of a BriefingsDirect podcast on how a cloud services brokerage can help
small and medium-size businesses make best use of cloud computing.
Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Duncan, LLC.
Dana Gardner: Hi, this is
Dana Gardner, Principal Analyst at
Interarbor Solutions, and you're listening to
BriefingsDirect.
Our discussion today focuses on an essential aspect of helping businesses make the best use of
cloud computing.
We're examining the role and value of cloud services brokers with an emphasis on
small to medium-sized businesses (SMBs), regional businesses, and government, and looking for attaining the best results from a specialist
cloud service brokerage role within these different types of organizations.
Learn more about Todd D. Lyle's book,
Grounding the Cloud: Basics and Brokerages,
at groundingthecloud.org
No
two businesses have identical needs, and so specialized requirements
need to be factored into the use of often commodity-type cloud services.
An intermediary brokerage can help companies and government agencies
make the best use of commodity and targeted
IaaS clouds, and not fall prey to
replacing an on-premises integration problem with a cloud complexity
problem.
To learn more about the role and value of the
specialist cloud services brokerage, we're now joined by our panel,
Todd Lyle, President of
Duncan, LLC, a cloud services brokerage in Ohio. Welcome, Todd.
Todd D. Lyle: Well hello, Dana. It's a pleasure to be here.
Gardner: We're also here with
Kevin Jackson, the Founder and CEO of
GovCloud Network in Northern Virginia. Welcome, Kevin.
Kevin L. Jackson: Thank you very much. Looking forward to the discussion.
Gardner:
Let’s start with you, Todd. Tell me little bit about why there's a
difference between the good part of cloud, which is a commodity set of
services, a utility approach to computing -- and the gulf between that and a
company's culture of traditional IT acquisition? How do we get regular companies to effectively start using these new cloud
services?
Lyle: Through education. That’s our
first step. The technology is clearly here, the three of us will agree.
It's been here for quite some time now. The beauty of it is that we're
able to extract bits and pieces for bundles, much like you get from your
cell phone or your cable TV folks. You can pull those together through a
cloud services brokerage.
So brokerage firms will go out and deal with the cloud services providers like
Amazon,
Rackspace,
Dell,
and those types of organizations. They bring the strengths of each of
those organizations together and bundle them. Then, the consumer gets
that on a monthly basis. It's non-
CAPEX, meaning there is no capital expenditure.
You're
renting these services. So you can expand and contract as necessary. To
liken this to a utility environment, utility organizations that do
electric and do power, you flip the switch on or turn the faucet on and
off. It’s a metered service.
That's where you're going
to get the largest return on your collective investment when you switch
from a traditional IT environment on-premises, or even a
private cloud, to the
public cloud and the utility that this brings.
Government agencies
Gardner:
Kevin you're involved more with government agencies. They've been using
IT for an awfully long time. How is the adjustment to cloud models for them?
Is it easier, is it better, or is it just a different type of approach,
and therefore requires only adjustment?
Jackson: Thank you for bringing that up. Yes, I've been focused on providing advanced IT to the federal market and
Fortune 500
businesses for quite a while. The advent of cloud computing and cloud
services brokerages is a double-edged sword. At once, it provides a much
greater agility with respect to the ability to leverage information
technology.
But,
at the same time, it brings a much greater amount of responsibility,
because cloud service providers have a broad range of capabilities. That
broad range has to be matched against the range of requirements within
an enterprise, and that drives a change in the management style of IT
professionals.
You're going more from your implementation skills to a
management of IT skills. This is a great transition across IT, and is
something that cloud services brokerages can really aid. [See
Jackson's recent blog on brokerages.]
Gardner: Todd, it sounds as if we're moving this from an implementation and a technology skill set into more of a procurement,
governance, contracts, and creating the right
service-level agreements (SLAs).
These are, I think, new skills for many businesses. How is that
coaching aspect of a cloud service’s brokerage coming out in the market?
Is that something you are seeing a lot of demand for?
Lyle:
It’s customer service, plain and simple. We hear about it all the
time, but we also pass it off all the time. You have to be accessible.
If you're a 69-year-old business owner and embracing a technology from that demographic, it’s going to be different than if you are 23 years
old, different in the approach that you take with that person.
As we
all get more tenured, we'll see more adaptability to new technologies in
a workplace, but that’s a while out. That's the 35-and-younger crowd.
If you go to 35-and-above, it's what Kevin mentioned -- changing the
culture, changing the way things are procured within those cultures, and
also centralizing command. That’s where the brokerage or the exchange
comes into place for this. [See
Lyle's video on cloud brokerages.]
Change management is a key aspect of being able to have an organization take on change as a normal aspect of their business.
Gardner: One of the things that’s interesting to me is that a lot of
companies are now looking at this as not just as a way of switching from
one type of IT, say a server under a desk, to another type of IT, a
server in a cloud.
It’s forcing companies to
reevaluate how they do business and think of themselves as a
new process-management function, regardless of where the services reside.
This also requires more than just how to write a contract. It's really
how to do business transformation.
Does that play into the cloud services brokerage? Do you find yourselves coaching companies on business management?
Jackson:
Absolutely. One of the things cloud services is bringing to the
forefront is the rapidity of
change. We're going from an environment
where organizations expect a homogenous IT platform to where hybrid IT
is really the norm.
Change management is a key aspect of being able to
have an organization take on change as a normal aspect of their
business.
This is also driving business models. The
more effective business models today are taking advantage of the
parallel and global nature of cloud computing. This requires experience,
and cloud services brokerages have the experience of dealing with
different providers, different technologies, and different business
models. This is where they provide a tremendous amount of value.
Different types of services
Gardner:
Todd, this notion of being a change agent also raises the notion that
we're not just talking about one type of cloud service. We're talking
about
software as a service (SaaS), bringing communications applications like e-mail and calendar into a web or
mobile environment. We're talking about
platform as a service (PaaS),
if you're doing development and
DevOps. We're talking about even some analytics
nowadays, as people try to think about how to use
big data and
business intelligence (BI) in the cloud.
Tell
me a bit more about why being a change agent across these different
models -- and not just a cloud implementer or integrator -- raises the value
of this cloud service brokerage role?
Lyle: It’s
a holistic approach. I've been talking to my team lately about being
the
Dale Carnegie of the cloud, hence the specialist cloud services
brokerage, because it really does come down to personalities.
In a
book that I've recently written called
Grounding the Cloud, Basics and Brokerages,
I talk about the human element. That's the personalities, expectations,
and abilities of your workforce, not only your present workforce but
your future workforce, which we discussed just a moment ago, as far as
demographics were concerned.
It's
constant change.
Kevin said it, using a different term, but that's the world we live in.
Some schools are doing this, where they're adding this to their MBA
programs. It is a common set of skills that you must have, and it's
managing personalities more than you're managing technology, in my
opinion.
It's about the human element, our personalities, and how to make these changes so that the companies actually can speed up.
Gardner: Tell me a bit more about this book, Todd, it’s called
Grounding the Cloud. When is it available and how can people learn more about it?
Lyle: It’s available now
on Amazon, and they can find out more at
www.groundingthecloud.org.
This is a layman’s introduction to cloud computing, and so it helps
business men and women get a better understanding of the cloud -- and how
they could best maximize their time and their money, as it associates to
their IT needs.
Gardner: Does the book get into
this concept of the
specialist cloud services brokerage (SCSB), as opposed to
just a general brokerage, and getting at what's the difference?
Lyle:
That’s an excellent question, Dana. There are a lot of perceptions, you
have one as well, of what a cloud services brokerage is. But, at the
end of the day -- and we've been talking about this in the entire
discussion -- it's about the human element, our personalities, and how to
make these changes so that the companies actually can speed up.
We
discuss it here in the "flyover country," in Ohio. We meet in the book with
Cleveland State University. We meet with Allen Black Enterprises, and
then even with a small landscaping company to demonstrate how the cloud is
being applied from six and seven users, all the way up to 25,000 users. And
we're doing it here in the Midwest, where things tend to take a couple of years to
change.
User advocate
Gardner: How is a cloud services brokerage different from a
systems integrator?
It seems there's some commonality. But you
are not just a channel, or reseller, you are really as much an advocate for the
user.
Lyle: A specialist cloud services brokerage is going to be more like
Underwriters Laboratories (UL).
It’s going to go out, fielding all the different cloud flavors that are
available, pick what they feel is best, and bring it together in a
bundle. Then, the SCSB works with the entity to adapt to the culture and the
change that's going to have to occur and the education within their
particular businesses, as opposed to a very high-level vertical, where
some things are just pushed out at an enterprise level.
Jackson:
I see this cloud services brokerage and specialist cloud services
brokerage as the
new-age system integrator, because there are additional
capabilities that are offered.
For example, you need a
trusted third-party to monitor and report on adherence to SLAs. The
provider is not going to do that. That’s a role for your cloud services
brokerage. Also you need to maintain viable options for alternative
cloud-service providers. The cloud services brokerage will identify your
options and give you choices, should you need the change. A specialist
cloud services brokerage also helps to ensure portability of your
business process and data from one cloud service provider to another.
Management
of change is more than a single aspect within the organization. It’s
how to adapt with constant change and make sure that your enterprise has
options and doesn't get locked into a single vendor.
Lyle: It comes to the point, Kevin, of building for constant change. You're exactly right.
Learn more about Todd D. Lyle's book,
Grounding the Cloud: Basics and Brokerages,
at groundingthecloud.org
Gardner:
You raise an interesting point too, Kevin, that one shouldn’t get
lulled into thinking that they can just make a move to the cloud, and it
will all be done. This is going to be a constant set of moves, a
journey, and you're going to want to avail yourself of the cloud services marketplace
that’s emerging.
We're
seeing prices driven down.
We're seeing
competition among commodity-level cloud services. I expect
we'll see other kinds of market forces at work. You want to be agile and
be able to take advantage of that in your total cost of computing.
Jackson: There's a broad
range of providers in the marketplace, and that range expands daily.
Similarly, there's a large range of requirements within any enterprise
of any size. Brokers act as matchmakers, avoiding common mistakes, and
also help the organizations, the SMBs in particular, implement best
practices in their adoption of this new model.
Gardner:
Also, when you have a brokerage as your advocate, they're keeping
their eye on the cloud marketplace, so that you can keep your eye on
your business and your vertical, too. Therefore, you're going to have somebody to tip you off when things change and they will be on the vanguard for deals. Is that something that comes up in your
book,
Todd, of the public service brokerage being an educated expert in a
field where the business really wants to stick to its knitting?
Primary goal
Lyle:
Absolutely. That’s the primary goal, both at a strategic level, when
you're deciding what products to use -- the Rackspaces, the
Microsofts, the
RightSignatures,
etc. -- all the way down to the tactical one of the daily operation.
When I leave the company, how soon can we lock Todd out? How soon can we
lock him down or lock him out? It becomes a security issue at a very
granular level. Because it's metered, you turn it off, you turn Todd
off, you save his data, and put it someplace else.
That’s
a role that, requires command and control and oversight, and that's a
responsibility. You're part butler. You're looking out for the
day-to-day, the minute issues. Then you get up to a very high level.
You're like UL. You're keeping an eye on everything that’s occurring. UL
comes to mind because they do things that are tactile and those things
that you can't touch, and definitely the cloud is something you can’t
touch.
Jackson: Actually, I believe it
represents the embracing of a cooperative model of my consumers of this
information technology, but embracing with open eyes. This is
particularly of interest within the federal marketplace, because federal
procurement executives have to stop their adversarial attitude toward
industry. Cloud services brokerages and specialist cloud services
brokerages sit at the same the table with these consumers.
This is particularly of interest within the federal marketplace, because
federal procurement executives have to stop their adversarial attitude
towards industry.
Lyle: Kevin, your
point is very well taken. I'll go one step further. We were talking up
and down the scales, strategic down to the daily operations. One of the
challenges that we have to overcome is the signatories, the senior
executives, that make these decisions. They're in a different age group
and they're used to doing things a certain way.
That
being said, getting legislation to be changed at the federal level,
directives being pushed down, will make the difference, because they do
know how to take orders. I know I'm speaking frankly, but what's going
to have to occur for us to see some significant change within the next
five years is being told how the procurement process is going to happen.
You're
taking the feather; I'm taking the stick, but it’s going to take both
of those to accomplish that task at the federal level.
Gardner:
We know that Duncan, LLC is a specialized cloud services brokerage.
Kevin, tell us a little bit about the
GovCloud Network. What is your
organization, and how do you align with cloud brokerages?
Jackson:
GovCloud Network is a specialty consultancy that helps organizations
modify or change their mission and business processes in order to take
advantage of this new style of system integrator.
Earlier,
I said that the key to transition in a cloud is adopting and adapting
to the parallel nature and a global nature of cloud computing. This
requires a second look at your existing business processes and your
existing mission processes to do things in different ways. That's what
GovCloud Network allows. It helps you redesign your business and mission
processes for this constant change and this new model.
Notion of governance
Gardner:
I'd like to go back to this notion of governance. It seems to me, Todd,
that when you have different parts of your company procuring cloud
services, sometimes this is referred to as
shadow IT. They're not doing
it in concert, through a gatekeeper like a cloud broker. Not only is
there a potential redundancy of efforts in labor and work in process,
but there is this governance and security risk, because one hand doesn’t
know what the other hand is doing.
Let's address this
issue about better security from better governance by having a common
brokerage gatekeeper, rather than having different aspects of your
company out buying and using cloud services independently.
Lyle: We're your trusted adviser.
We’re also very much a trusted member of your team when you bring us
into the fold. We provide oversight. We're
big brother, if you want to
look at it that way, but big brother is important when you are dealing
with your business and your business resources. You don’t want to leave a
window open at night. You certainly don't want to leave your network
open.
There's a lot going on in today's world, a lot of transition, the
NSA
and
everything we worry about. It's important to have somebody
providing command and control. We don’t sit there and stare at a monitor
all day. We use systems that watch this, but we can tell when there's
an increase or decrease out of the norm of activities within your
organization.
We're big brother, if you want to look at it that way, but big brother
is important when you are dealing with your business and your business
resources.
It really doesn't matter how big
or how small, there are systems that allow us to monitor this and give a
heads up. If you're part of a leadership team, you’d be notified that
again Todd Lyle has left an open window. But if you don't know that Todd
even has the window, then that’s even a bigger concern. That comes down
to the leadership again -- how you want to manage your entity.
We
all want to feel free to make decisions, but there are too many
benefits available to us, transparent benefits, as Kevin put it, to
using the cloud and hiding in plain sight, maximizing e-mail at 100,000
plus users. Those are all good things but they require oversight.
It's
almost like an aviation model, where you have your ground control and
your flight crew. Everybody on that team is providing oversight to the
other. Ultimately, you have your control tower that's watching that, and
the control tower, both in the air and on the ground, is your cloud
services brokerage.
Jackson: It’s important to
understand that cloud computing is the
industrialization of information
technology. You're going from an age where the IT infrastructure is a
hand-designed and built work of art to where your IT infrastructure is a
highly automated assembly-line platform that requires real-time
monitoring and metering. Your specialist cloud services brokerage
actually helps you in that transition and operations within this highly
automated environment.
Lyle: Well said, Kevin.
Gardner:
We've talked about this a little bit in the abstract, and it's made a
tremendous amount of sense to me. A powerful way to cement understanding
is to show examples and understand what others have gone through.
Todd, you mentioned that you have some
examples in
your new book. I’d like to hear in more detail about when
someone has used a specialized cloud brokerage attuned to their
business, their industry, or their vertical. What do they get for it and
how has it worked out for them? Can you run us through a use case of
where this works well?
Three narratives
Lyle: Okay, in my book, we have three narratives, as I mentioned earlier. I talk about
Cleveland State University (CSU)
and education because this is what this whole program is about,
education. It's not offensive -- it's not business, it's not government,
it’s education.
With technology, there are so many
options out there today as we’re discussing. It's so exciting, but we
have to get "Iris" to change her way of thinking.
A
couple of things occurred at CSU, cementing my theory on demographics
and change in speaking computing as a first language. CSU switched to
Microsoft 365 from onsite
Lotus Notes,
and for anybody who's been on Lotus Notes, it's always been a challenge
to use. To get to 365, some education had to occur, and some heads-up
had to occur.
People need to be involved in the process
at some point, and others excluded for business reasons, and I don't
mean that a bad way. I mentioned Iris, because Iris was a lady who works
on the third floor of Rhodes Tower at Cleveland State and was very
unhappy about losing her desktop printer.
What we do as a specialist cloud services brokerage is making sure that
people are included in the process, being educated, giving access to
communication and then being available when the time comes.
They went from 2,100 printers down to 300 with the help of not only Bill Wilson and the IT team, but
Xerox.
Xerox was able to bring tremendous savings at the granular level, but
it took a great deal of education and patience, because Iris wasn't
happy about losing her printer. She wanted to know why Bill Wilson
wasn’t going to lose his.
It really discusses it at a
very personal level, because we can all relate to printers and ancillary
equipment and our way of doing business. It discusses again, on the
great Lake Erie, how change has occurred and how they were able to
address it from a human element perspective, again, Iris.
What
we do as a specialist cloud services brokerage is making sure that
people are included in the process, being educated, giving access to
communication and then being available when the time comes. Make sure
you answer that phone for the person who needs someone on the phone and
make sure that you have the Wiki available and up to date for the person
who is going to reach out to that Wiki.
Gardner:
Kevin, any examples from your vantage point on the role of the cloud
services brokerage and some concrete ways that it’s helped a specific
organization?
Jackson: Absolutely. About three years ago I responded to a requirement from the
National Geospatial-Intelligence Agency (NGA),
where they were having issues working with allies with respect to
exchange of geospatial information and data. Everyone had their maps and
everyone had their own system for distributing and sharing that, but
they didn't work together. The NGA wanted to have a more effective and
efficient means for exchanging geospatial information.
So they reached out to the
Network Centric Operations Industry Consortium (NCOIC) to see if this industry organization had any good ideas for addressing this
mission-critical
requirement. I was serving as the head of the cloud-computing working
group, and the team came up with an idea of using cloud as an
inner-space in order to translate different types and formats of
geospatial information and data amongst the participants.
Brokered platform
We
did this by use of a brokered cloud platform that came to be known as
the
Geospatial Community Cloud. The cloud services brokerage acted as an
intermediary to allow for a real-time change or identification of
capabilities for geospatial interoperability. It's a very successful
demonstration.
The
Recovery, Accountability, and Transparency Board
also leveraged a cloud services brokerage paradigm when they were
required to stand up very quickly to manage their hundreds of billions
of dollars during the financial crisis. The CIO there,
Shawn Kingsberry,
knew that he wouldn't be able to respond to the requirements of
monitoring, metering, and managing these large sums of money without an
IT infrastructure.
Instead of taking the traditional
acquisition process within the Federal Government, which would take
years, he instead became a cloud services brokerage for his own agency
and adopted multiple cloud services. This also was a very successful
implementation. So even the Federal Government can adopt cloud services
brokerage and respond in a very quick and efficient and effective
manner.
Gardner: Todd, we spoke earlier about
how we're moving from implementation to procurement. We've also talked
about governance being important, SLAs, and managing a contract across
variety of different organizations that are providing cloud type
services. It seems to me that we're talking about financial types of
relations.
So even the Federal Government can adopt cloud services brokerage and
respond in a very quick and efficient and effective manner.
How
does the cloud services brokerage help the financial people in a
company. Maybe it's an individual who wears many hats, but you could
think of them as akin to a chief financial officer, even though that
might not be their title?
What is it that we are doing
with the cloud services brokerage that is of a special interest and
value to the financial people? Is it unified billing or is it one throat
to choke? How does that work?
Lyle: Both, and
then some. Ultimately it's unified billing and unified management from
daily operations. It's helping people understand that we're moving from a
capitalized expense, the server, the software, things that are tactile
that we are used to touching. We're used to being able to count them and
we like to see our stuff.
So it's transitioning and
letting go, especially for the people who watch the money. We have a
fiduciary responsibility to the organizations that we work for. Part of
that is communicating, educating, and helping the CFO-type person
understand the transition not only from the CAPEX to the
OPEX, because they get that, but also how you're going to correlate it to productivity.
It's
letting them know to be patient. It's going to take a couple months for
your metering to level up. We have some statistics and we can read into
that. It's holding their hand, helping them out. That's a very big deal
as far as that's concerned.
Gardner: Let's
start to think about how to get started. Obviously, every company is
different. They're going to be at a different place in terms of
maturity, in their own IT, never mind the transition to cloud types of
activities. Would you recommend the
book
as a starting point? Do you have some other materials or references?
How do you help that education process get going. I'm thinking about
organizations that are really at the very beginning?
Gateway cloud
Lyle: We've created a gateway cloud in our
book,
not to confuse the cloud story. Ultimately, we have to take in
consideration our economy, the world economy today. We're still very
slow to move forward.
There are some activities
occurring that are forcing us to make change. Our contracts may be
running out. Software like XP is no longer supported. So we may be
forced into making a change. That's when it's time to engage a cloud
services brokerage or a specialist cloud services brokerage.
Go
out and buy the book.
It's available on Amazon. It gives you a
breakdown, and you can do an assessment of your organization as it
currently is and it will help you map your network. Then, it will help
you reach out to a cloud services brokerage, if you are so inclined,
through points of interest for request for proposal or request for
information.
The fun part is, it gives you a recipe using Rackspace,
Jungle Disk, and
gotomeeting.com, where
you get to build a baby cloud. Then, you can go out and play with
it.
This is written for the layperson. I've been told it’s entertaining,
which is the most important part, because you’re going to read it then.
You want to begin with three points:
file sharing,
remote access,
and email. You can be the lighthouse or you can be a dry-cleaners, but
every organization needs file sharing, remote access, and email. We
open-sourced this recipe or what we call the industrial bundle for small
businesses.
It's not daunting. We’ve got some time
yet, but I would encourage you to get a handle on where your
infrastructure is today, digest that information, go out and play with
the gateway cloud that we've created, and reach out to us if you are so
inclined.
We’d love for you to use one of our
organizations, but ultimately know that there are people out there to
help you. This book was written for us, not for the technical person. It
is not in geek speak. This is written for the layperson. I've been told
it’s entertaining, which is the most important part, because you’re
going to read it then.
Jackson: I would urge
SMBs to take the plunge. Cloud can be scary to some, but there is very
little risk and there is much to gain for any SMB. The using,
leveraging, taking advantage of the cloud gateway that Todd mentioned is
a very good, low risk, and high reward path towards the cloud.
Gardner:
I would agree with both of what you all said. The notion of a proof of
concept and dipping your toe in. You don't have to buy it all at once,
but find an area of your company where you’re going to be forced to make
a change anyway and then to your point, Kevin, do it now. Take the
plunge earlier rather than later.
Jackson: Before you're forced.
Large changes
Gardner:
Before you’re forced, but you want to look at a tactical benefit and
where to work toward strategic benefit, but there is going to be some
really large changes happening in what these cloud providers can do in a
fairly short amount of time.
We're moving from
discrete apps into
the entire desktop, so a full PC experience as a
service. That’s going to be very attractive to people. They're going to
need to make some changes to get there. But rather than thinking about
services discreetly, more and more of what they're looking for is going
to be coming as the entire IT services experience, and more analytics
capabilities mixed into that. So I am glad to hear you both explaining how
to do it, managed at a proof-of-concept level. But I would say do it
sooner rather than later.
I'm
afraid we have to leave it there. You've been listening to a sponsored
BriefingsDirect discussion on helping businesses make the best use of
cloud computing. We've seen how the role and value of a cloud
services brokerage brokerage -- with an emphasis across the different types
of businesses, whether it's small to medium, regional, government -- makes a
tremendous amount of sense.
This is going to help
companies and government agencies make the best use of the commodity and
targeted-cloud services, but not fall prey to replacing on-premises
integration problems with cloud complexity and management problems.
So
a huge thank you to our guests, Todd Lyle, President of Duncan, LLC, a cloud services brokerage in Ohio. Thank you,
Todd.
Lyle: You're welcome. Thanks for having me, Dana.
Learn more about Todd D. Lyle's book,
Grounding the Cloud: Basics and Brokerages,
at groundingthecloud.org
Gardner: And thanks also to Kevin Jackson, the Founder and CEO of GovCloud Network in Northern Virginia. Thanks, Kevin.
Jackson: It’s been my pleasure. Thank you.
Gardner:
And also a huge thank you to our audience for joining. This is Dana
Gardner, Principal Analyst at Interarbor Solutions. Thanks again for
being with us, and don't forget to come back next time.
Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Duncan, LLC.
Transcript
of a BriefingsDirect podcast on how a cloud services brokerage can help
small and medium-size businesses make best use of cloud computing.
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