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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.
IBM Cloud Computing                 1    Why Cloud Computing?
Complexiteit




                               19 februari 2010         © 2010 IBM Nederland B.V.
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.
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.
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.
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.
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.
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.
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.
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.
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.
IBM Cloud Computing          2       What is Cloud Computing?


Overcoming inefficiencies




                            19 februari 2010       © 2010 IBM Nederland B.V.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.

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Cloud Computing Why, What, How

  • 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.