Cloud Computing Why, What, How

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  • 1. IBM Nederland B.V. Cloud Computing Why, what, how? Ronald Zoutendijk, zoutendi@nl.ibm.com Johan Arts, johan.arts@nl.ibm.com © 2010 IBM Nederland B.V.
  • 2. IBM Cloud Computing 1 Why Cloud Computing? Complexiteit 19 februari 2010 © 2010 IBM Nederland B.V.
  • 3. IBM Cloud Computing Agenda 1 Why Cloud Computing? 2 What is Cloud Computing? (What isn’t?) 3 How should we go about it? 4 IBM Cloud Portfolio 5 Closing 19 februari 2010 © 2010 IBM Nederland B.V.
  • 4. IBM Cloud Computing 2 What is Cloud Computing? In our definition cloud computing the IT cloud is the actual delivery model and methodology. It has specific attributes W hat is Cloud Computing Cloud is a user experience and a business model Cloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model Cloud is an infrastructure management and services delivery methodology Cloud computing is a 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 with elastic scaling Service Consumers Datacenter Monitor & Manage Infrastructure Access Services & Resources Services IT Cloud Component Vendors/ Service Catalog, Software Publishers Component Cloud Library Administrator Publish & Update Components, Service Templates 4 19 februari 2010 © 2010 IBM Nederland B.V.
  • 5. IBM Cloud Computing 2 What is Cloud Computing? These are the attributes explained in more detail Common Attribute Details Standardized offerings Uniform offerings readily available from a services catalogue on a metered basis Elastic scaling Resources scale up and down by large factors as the demand changes Rapid provisioning IT and network capacity and capabilities are – ideally automatically – rapidly provisioned using Internet standards without transferring ownership of resources Advanced virtualization IT resources from servers to storage, network and applications are pooled and virtualized to provide an implementation independent, efficient infrastructure Flexible pricing Utility pricing, variable payments, pay-by-consumption and subscription models make pricing of IT services more flexible 5 19 februari 2010 © 2010 IBM Nederland B.V.
  • 6. IBM Cloud Computing 2 What is Cloud Computing? Lets look at a simple example of cloud as a delivery model for standard services Flexible priced: THE PIZZA CLOUD PIZZA AS A SERVICE You pay per pizza ordered Elastic scaling: You order 1, 2, 3 or more Rapid prov.: Pizza (service) in 3 minutes ready level: Only 1 level of Standard off.: service Only 4 flavour of pizza 6 19 februari 2010 © 2010 IBM Nederland B.V.
  • 7. IBM Cloud Computing 2 What is Cloud Computing? The service delivered from the delivery model are called cloud services which are divided here in four layers. Examples Employee Procurement Benefits Mgmt. Industry-specific Business Travel Processes Business Process-as-a-Service Collaboration CRM/ERP/HR Industry Financials Applications Application-as-a-Service Web 2.0 Application Java Middleware Runtime Runtime Development Database Tooling Platform-as-a-Service Data Center Servers Networking Storage Fabric Shared virtualized, dynamic provisioning Infrastructure-as-a-Service 7 19 februari 2010 © 2010 IBM Nederland B.V.
  • 8. IBM Cloud Computing 2 What is Cloud Computing? Because of the four cloud services layers it is difficult to define where certain IT parts fit as they seem to move from the service side into the cloud delivery model THE CLOUD ? CLOUD SERVICE ? Cloud Middleware Infrastructure Servers Collaboration Database Service Catalog, Networking CRM/ERP/HR Component Java Monitor & Manage Library Runtime Services & Resources Data Center Fabric Industry Development Applications Tooling Storage Web 2.0 Cloud Application Financials Administrator Runtime 8 19 februari 2010 © 2010 IBM Nederland B.V.
  • 9. IBM Cloud Computing 2 What is Cloud Computing? IBM sees different delivery models that will be used concurrently for the coming years to support all IT services depending on workload characteristics Over time, IT workloads will move to Cloud delivery models as applicable for the client. Examples: Service Consumers Service Services Services s Service Integration Service Integration Service Integration Traditional Public Private Cloud Enterprise IT Clouds Enterprise ● Mission Critical ● Test Systems ● Compute as a Service ● Packaged Apps ● Developer Systems ● Storage as a Service ● High Compliancy ● Storage Cloud ● Software as a Service 9 19 februari 2010 © 2010 IBM Nederland B.V.
  • 10. IBM Cloud Computing 2 What is Cloud Computing? Examples of workloads that we see moving to a cloud computing delivery or consumption model  Single virtual appliance workloads  Web application servers  Test and Pre-production systems  Mature packaged offerings, like e-mail and collaboration  Software development environments  Batch processing jobs with limited security requirements  Isolated workloads where latency between components is not an issue  Storage Solutions/Storage as a Service  Backup Solutions/Backup & Restore as a Service  Some data intensive workloads 19 februari 2010 © 2010 IBM Nederland B.V.
  • 11. IBM Cloud Computing 2 What is Cloud Computing? Examples of workloads which may not be ready for cloud delivery today?  Workloads which depend on sensitive data normally restricted to the Enterprise  Employee Information - Most companies are not ready to move their LDAP server into a public cloud because of the sensitivity of the data  Health Care Records - May not be ready to move until the security of the cloud provider is well established  Workloads composed of multiple, co-dependent services  High throughput online transaction processing  Workloads requiring a high level of auditability, accountability  Workloads subject to Sarbanes-Oxley, for example  Workloads based on 3rd party software which does not have a virtualization or cloud aware licensing strategy  Workloads requiring detailed chargeback or utilization measurement as required for capacity planning or departmental level billing  Workloads requiring customization (e.g. customized SaaS) 19 februari 2010 © 2010 IBM Nederland B.V.
  • 12. IBM Cloud Computing 2 What is Cloud Computing? Overcoming inefficiencies 19 februari 2010 © 2010 IBM Nederland B.V.
  • 13. IBM Cloud Computing Agenda 1 Why Cloud Computing? 2 What is Cloud Computing? (What isn’t?) 3 How should we go about it? 4 IBM Cloud Portfolio 5 Closing 19 februari 2010 © 2010 IBM Nederland B.V.
  • 14. IBM Cloud Computing 3 How should we go about it? When adopting cloud computing it is of great importance to use a structured approach to ensure outcomes of reduced costs, improved service and managed risks Approach*: 1. Create strategic view and define the benefits, which type of cloud services are most benefitial ? 2. Assess readiness of workloads to be migrated 3. Assess organisational, process, tooling and governance impact and start an adoption plan 4. Select implementation projects based on strategy and implement the selected workloads as IT services. *For the first three steps IBM has consulting services available © 2010 IBM Nederland B.V.
  • 15. IBM Cloud Computing 3 How should we go about it? IBM has introduced 3 choices to deploy workloads based on cloud computing Smart Business Services – cloud services delivered. 1. Standardized services on the IBM cloud. 2. Private cloud services, behind your firewall, built and/or run by IBM. Smart Business Systems – purpose-built infrastructure. 3. Integrated Service Delivery Platform Analytics Collaboration Development Desktop and Infrastructure Infrastructure Business and Test Devices Compute Storage Services 19 februari 2010 © 2010 IBM Nederland B.V.
  • 16. IBM Cloud Computing 3 How should we go about it? New deployment choices aligned to different workloads Analytics Collaboration Developm ent Desktop and Infrastructure Infrastructure Business and Test Devices Com pute Storage Services IBM Smart Business Desktop on the IBM Cloud Smart Business on the IBM Cloud Standardized services IBM LotusLiv e IBM Smart IBM Smart IBM Compute IBM Inf ormation IBM BPM IBM Smart on the IBM Cloud iNotes Business Dev & Test on the IBM Business End User Support-IBM on Protection Serv ices Blueworks (Design tools) Business Expense Demand IBM Lotus Liv e Cloud (Beta) Serv ice Assist Reporting on the IBM Cloud Smart Business Cloud Private cloud services, behind your firewall, IBM Smart Lotus IBM Smart IBM Smart IBM Smart built and/or managed by Analy tics Cloud Foundation Business Test Cloud Business Desktop Cloud Business Storage Cloud IBM Smart Business Systems Pre-integrated, IBM Smart IBM CloudBurst IBM Inf ormation IBM Smart Business workload Analy tics Sy stem Archiv e f or SMB (backed by the optimized systems IBM cloud) © 2010 IBM Nederland B.V.
  • 17. IBM Cloud Computing 3 How should we go about it? Transformation Roadmap – private cloud ● Self-Service ● Standardized ● Elastic Services ● Automatic service ● Dramatically reduce metering and billing ● Remove physical deployment cycles ● Industrialized resource ● Granular service service delivery ● Reduce boundaries infrastructure metering and billing ● Economies of scale ● Increased complexity ● Massively scalable hardware ● Reduce staffing ● Autonomic utilization requirements ● Allocate less than ● Flexible delivery ● Improve physical boundary enables new business ● Reduce hardware processes and services Optimize resilience costs (manage ● Simplify fewer things Dynamic better) deployments Cloud ● Improve operational Shared Automate costs/reduce TCO Virtualize Simplified Consolidate © 2010 IBM Nederland B.V.
  • 18. IBM Cloud Computing 3 How should we go about it? A typical workload that is moving to private cloud delivery today is test workloads because of the challenges faced today  30% to 50% of all Servers within a typical IT environment are dedicated to Test  Most Test Servers run at less than 10% utilization, if they are running at all  IT staff report a top challenge is finding available resources to perform tests in order to move new applications into production  30% of all defects are caused by wrongly configured test environments  Testing backlog is often very long and single largest factor in the delay new application deployments  Test environments are seen as expensive and providing little real business value. * “Industry Developments and Models – Global Testing Services: Coming of Age,” IDC, 2008 and IBM Internal Reports 18 © 2010 IBM Nederland B.V.
  • 19. IBM Cloud Computing 3 How should we go about it? How can cloud computing characteristics improve the test environment? Common attributes Characteristics Benefits Test resources are pooled and Providing efficient implementation- Advanced virtualized. independent infrastructure. virtualization Test resources are provisioned on Reducing test setup and execution Rapid provisioning demand. time and eliminating errors Service catalog Test environments are readily Enabling visibility, control and ordering available. automation. Test environments scale down and Optimizing resources utilization. Elastic scaling up by large factors as the need changes. Test resources are priced on Offering pricing schemes options for Flexible pricing supported topology and project tests and user acceptance. phases. Test resources used and reserved Prioritizing innovative projects. Metering and billing are charge-backed to LOBs. 19 © 2010 IBM Nederland B.V.
  • 20. IBM Cloud Computing 3 How should we go about it? IBM Implementation Services for cloud computing – design and implementation for test environments Features: • Assessment of current test environment to project savings and ROI • Strategy, planning, design and implementation services of the solution • Create self-service portal with catalog of services Customer Benefits: • Integrated platform combining service request management,  Reduce IT labor cost by 50% + - provisioning / de-provisioning and change and configuration reduce labor for configuration, management operations, management and monitoring of the test environment  75% + Capital utlization improvement; Significant license cost reduction  Reduce Test Provisioning cycle times from weeks to minutes  Improve Quality- eliminate 30% + of all defects that come from faulty Test Environments configurations. In the Cloud 20 © 2010 IBM Nederland B.V.
  • 21. IBM Cloud Computing IBM CloudBurst: An Integrated Platform Built for Growth Data Center Optimization Through Modularity End to End Service Management Architectural and process level integration that delivers business aligned Visibility, Control and Automation of all Data Center Elements Modular, Self-contained, Modular, Self-contained, Legacy Environment : Scalable Work load Delivery NON – IBM Solutions Scalable Work load Delivery Requiring workload Platform Platform connectivity Service Service Service Management Management Management WORKLOAD A WORKLOAD B WORKLOAD C © 2010 IBM Nederland B.V.
  • 22. IBM Cloud Computing 3 How should we go about it? An example: IBM Technology Adoption Program uses cloud to help reduce expenses and drive innovation. Without cloud With cloud Business challenge: $3.4M annual expense $1.03M annual expense  Reduce operational expenses and New development Liberated capital investment in order to fund funding for innovation transformation investment or Software and direct saving Solution: other costs  Develop an internal “Collaboration Innovation” cloud using IBM New Strategic technology development change Labor costs (for business- (operations capacity and enabling Benefits: maintenance ) capabilities)  Dramatic labor (-80.7 percent) and Deployment (1-time) capital depreciation (-91.6 percent) Software and Annual savings other costs cost of  One of IBM’s most successful Depreciation (and Labor cost operation solutions with over 80,000 amortization) ( - 80.7 percent) (- 79.0 percent) participants Depreciation ( - 91.6 percent) Note: 5-year depreciation period with 5 percent discount rate 19 februari 2010 © 2010 IBM Nederland B.V.
  • 23. IBM Cloud Computing 3 How should we go about it? ROI analysis example- medium # of servers Payback Period (months) 6.82 Total Initial Investment for Test Cloud $302,958.33 Cumulative Cost Comparison -- With and without Cloud Net Present Value (NPV) $935,880.13 $5,000,000.00 Estimated ROI over 3 years 308.91% $4,500,000.00 Estimated avg. annual ROI 102.97% $4,000,000.00 $3,500,000.00 $3,000,000.00 Cumulative Expenses Year 1 Saving by Category $2,500,000.00 $2,000,000.00 Hardware $1,500,000.00 Testing 10% Productivity Software $1,000,000.00 25% 1% $500,000.00 $0.00 Transformation Year-1 Year-2 Year-3 Point Current IT Model Accumulated Costs Test Cloud Model Accumulated Costs Sys. Admin. Cost Provisioning Cost 42% = Service Management 22% driven savings ROI projections from IBM Research Study 2009 19 februari 2010 © 2010 IBM Nederland B.V.
  • 24. IBM Cloud Computing 3 How should we go about it? Service Management- the key to unlocking cloud savings On average, 81%* of Cloud payback is driven by labor savings enabled by service management A service management system provides the visibility, control and automation needed for efficient cloud delivery in both public and private implementations: ● Simplify user interaction with IT ● User friendly self-service interface accelerates time to value ● Service catalog enables standards which drive consistent service delivery ● Provisioning enables policies to lower cost ● Automated provisioning and de-provisioning speeds service delivery ● Provisioning policies allow release and reuse of assets ● Increase system administrator productivity ● Move from management silos to a service management system *Average of the three studies referenced in this presentation which are based on IBM Research study 2009 24 © 2010 IBM Nederland B.V.
  • 25. IBM Cloud Computing Agenda 1 Why Cloud Computing? 2 What is Cloud Computing? (What isn’t?) 3 How should we go about it? 4 IBM Cloud Portfolio 5 Closing 19 februari 2010 © 2010 IBM Nederland B.V.
  • 26. IBM Cloud Computing 4 IBM Cloud Portfolio IBM Cloud Portfolio Strategy Enable our customers to leverage cloud computing through designing, building, and delivering Cloud Cloud Service Assets Consulting Implementation Cloud Delivered CLOUD ENABLING PRODUCTS & ASSETS Service Management Systems Base IBM Service Automation Manager Virtualization Virtual Products and Management Resource Technologies Pools Service Service Availability Security Virtualized Servers and Storage …bringing clarity and focus. 26 © 2010 IBM Nederland B.V.
  • 27. IBM Cloud Computing Cloud Component Offerings by IBM Service Delivery & Management Automated delivery of Cloud services Self-Service provisioning of virtual resources Monitoring and managing virtual resources Optimizing usage of virtual resources Security Management Securing virtual and physical networks Encrypt data outside company firewall Providing access across various security domains Storage Management Data recovery for Cloud storage Creating Cloud storage environment Collaborative Application Lifecycle Mgt Quality Management Application Server Provisioning Dispensing virtual images Servers, Storage IBM Systems and Technology Creating virtualized infrastructure IBM System Storage 27 © 2010 IBM Nederland B.V.