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Cloud Computing – a Disruptive New Paradigm 1990 2009 Software as a Service Utility Computing Grid Computing Cloud Computing
The hottest word in IT community
Match business requirement to IT
Service oriented infrastructure
Profit from new technologies: virtualization, automation…
“ By 2012, 80% of Fortune 1000 enterprises will use some Cloud Computing services” - Gartner “ Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies operate.”
Smart Work Green & Beyond New Intelligence How can we work smarter supported by flexible and dynamic processes modeled for the new way people buy, live & work? How can we take advantage of the wealth of information available in real time from a multitude of sources to make more intelligent choices? “ Data is exploding and it’s in silos” “ New business & process demands” “ Our resources are limited” I Need Insight I Need to Work Smart I Need Efficiency Dynamic Infrastructure How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business climate ? “ My infrastructure is inflexible and costly” I need to respond quickly How do we drive greater efficiencies, compete more effectively, and respond more quickly by taking action now on energy, the environment, and sustainability? Cloud computing – Foundation in “Smarter Planet”
Cloud computing is an emerging style of computing in which applications, data, and IT resources are provided as services to users over the web.
It is a infrastructure management methodology
Cloud computing is way of managing large numbers of highly virtualized resources such that from a management perspective, they resemble a single large resource. This can then be used to deliver services.
Service Consumers Service Catalog, Component Library Cloud Administrator Datacenter Infrastructure Monitor & Manage Services & Resources Component Vendors / Software Publishers Publish & Update Components, Service Templates Access Services IT Cloud
Service Integration Service Integration Traditional Enterprise IT Private Cloud Services Services Service Integration Public Clouds Services Hybrid Cloud Enterprise IT portfolio aspects migrating to cloud today:
On-ramps to Cloud Computing Services Software as a Service Platform as a Service Infrastructure as a Service Open Standards GBS/GTS Consulting Services
Industry specific services (Partners)
Cross industry services (SO)
SOA – componentized & flexible
Dynamic Infrastructure ………….
Green, virtualized & scalable
Optimized for security, transactions, data integrity
Business Needs $ YOUR INFRASTRUCTURE Business Capacity Required Capacity Every business has a fluctuating capacity requirement Over dimensioned under dimensioned Over dimensioned under dimensioned Loss of Value Loss of Revenue
IBM Technology Adoption Program Cloud, cloud delivered Current IT Spend Strategic Change Capacity Hardware, labor & power savings reduced annual cost of operation by 83.8% Hardware Costs ( - 88.7%) Labor Costs ( - 80.7%) 100% Without Cloud With Cloud Deployment (1-time) Note: 3-Year Depreciation Period with 10% Discount Rate Hardware Costs ( annualized ) Liberated funding for new development, transformation investment or direct saving New Development
Reduction of Total Cost of Ownership of Data Center Infrastructure
Reduced Capital Expenditure
- Improved utilization reduces requirement for new capital purchases
Reduced Operations Expenditure
- Lower facilities, maintenance, energy, IT service delivery and labor costs
- Reduced risk, less idle time, more efficient use of energy, acceleration of innovation projects, enhanced customer service
Business Case Results Annual savings: $3.3M (84%) from $3.9M to $0.6M Payback Period: 73 days Net Present Value (NPV): $7.5M Internal Rate of Return (IRR): 496% Return On Investment (ROI): 1039% ROI Analysis Labor Costs ( Operations and Maintenance ) Power Costs (88.8%) Power Costs Software Costs Software Costs
Market Experiences 55% Infrastructure as a Service (IaaS) 27% Software as a Service (SaaS) 18% Platform as a Service (PaaS)
Open development platform
Rapid services creation
Expand developers eco system
Accelerate time to market for new services
New business models & opportunities
Enable Service Innovation
Reduces IT resource allocation time by 3X
Speeds on-boarding by 2X
Increased hardware utilization by 4X
Simplifies IT management by 7X
An effective Cloud Computing deployment is built on a Dynamic Infrastructure and is highly optimized to achieve more with less…. = CLOUD COMPUTING … leveraging virtualization, standardization and automation to free up operational budget for new investment. VIRTUALIZATION + STANDARDIZATION AUTOMATION + Increased Flexibility Reduced Cost
Developing the Cloud strategy and implementation plan is the first step for the CIO.
Without a strategy, Cloud computing can be a threat to the CIO and the IT team
Reduced control of IT services delivered over the Internet
Perceived cost gap between a cloud service delivered by providers outside of the IT team and “traditional” services delivered by IT
With a strategy, Cloud computing is a huge opportunity for the CIO
Lower costs, more responsive IT, optimized delivery
Greater range of services and capabilities
Greater visibility in billing / chargeback to LOBs
Better control of the users’ systems, desktops, and services access
5 Steps to Cloud based Services IT Roadmap Architecture IT Portfolio and value assessment Enterprise & Public Cloud Mix Implementation Service Definition Tools Service Publishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics Service Planning Role Based Access End Users, Operators Service Catalog Operational Console Cloud Services Cloud Platform Systems Storage Network Computing Infrastructure Platform & Applications Email Bus Apps BPM Sys Mgmt Info Mgmt Web Svr E-Mail, Collaboration Software Development Test and Pre-Production Data Intensive Processing Database ERP Enterprise Private Public Hybrid Trad IT Capital Private Cloud Hybrid Cloud Time Trad IT Rent Financial Workload Custom Standard OSS BSS Infrastructure Platform Software
New consumption and delivery models drive new sourcing options and business flexibility. GOVERNANCE
Standardized services on the provider’s cloud
Access by subscription.
Client owned – managed by client or services provider.
Access defined by client.
Cloud Services Cloud Computing Model
Security, privacy, resiliency
Implement with the focus on the end user experience End Users Service Portal Service Request Catalog
Optional Service Modules
e.g. Metering/ Usage Billing, Monitoring, etc.
Virtualized Cloud Infrastructure
Easy to access, easy to use Service Request Catalog
Hides underlying complex infrastructure from user and shifts focus to services provided
Enables the ability to provide standardized and lower cost services
Facilitates a granular level of services metering and billing
IBM Cloud Computing Global Leadership Client Engagements IBM Cloud Computing Centers Academic Initiatives: Skills & Research IBM Services & Products Academic Initiative Blue Cloud offerings Hadoop Workshop South Africa Greater China Ireland Japan USA Raleigh Cloud Delivery Center iDataplex Systems for web 2.0 Develop new autonomic Cloud Computing technologies NEDC Leadership Centers Business Continuity & Resiliency Korea Vietnam Brazil India Cloud Services Initiative 2Q 4Q 2007 2009 Smart Business Platform Resilient Cloud Computing Certification Secure Cloud Consulting Services Cloud Expert Group IBM, NSF & Google IBM Haifa Lab
IBM Cloud Labs Accelerating Global Adoption Hanoi Vietnam Silicon Valley California Dublin Ireland São Paulo Brazil Johannesburg South Africa Bangalore India Tokyo Japan IBM Cloud Labs Seoul S. Korea Beijing China Other Cloud Centers
Common Use Cases for Cloud Blue Cloud asset + services Innovation Cloud Development& Testing cloud
Domain-based Solution Architecture: Flexible product combination to meet business requirement
On-Demand Delivery: Customized implementation
Dedication: Support by experienced local team
Hardware Software Enterprise cloud SaaS Cloud IDC HPC cloud Mainframe Power Blade System x 3rd party Software 3rd party Hardware