MISA Cloud Workshop_ Roadmap to a municipal community cloud in canada

A planet of smarter cities:In 2007, for the first time in By 2050, city dwellers are expectedhistory, the majority of the to make up 70%of Earth’s totalworld’s population—3.3 billion population, or 6.4 billion people.people—lived in cities.22 2 © 2012 IBM Corporation

Innovative leaders create opportunities from today’s harsh realities Sustainability Investment Innovation Community Declining Increasing Budgets Threats Aging Changing Infrastructure Populations3 © 2012 IBM Corporation

Smarter cities are cities that drive sustainable economic growth by… Leveraging information to make better decisions Anticipating problems to resolve them proactively Coordinating resources to operate effectively5 © 2012 IBM Corporation

Agenda Cloud & deployment options Reasons to do it Dependencies for Cloud – Technologies & management disciplines – Architecture – Services What Cities are doing with Cloud The common roadmap6 © 2012 IBM Corporation

IBM offers extensive real-world experience working with some ofthe most innovative, forward-thinking IT organizations on theplanet. Our point of view is based on real world experience. successful private public cloud users. managed virtual cloud engagements machines. in 2010. “IBM has one of the most comprehensive cloud portfolios, with the cloud integrated throughout its many lines of business. Moreover, IBM’s consulting arm has put them in touch with numerous early adopters and special use cases— all of which helps the company stay ahead of competitors. ” – Jeff Vance, Datamation 80% of Fortune 500 companies are using IBM cloud capabilities.7 © 2012 IBM Corporation

Cloud computing is a new consumption and delivery model inspiredby consumer Internet services that exhibits the following keycharacteristics:1. On-demand self-service2. Ubiquitous network access3. Location independent resource pooling4. Rapid elasticity5. Pay per use …that creates a configurable supply chain for IT services8 See NIST Definition of Cloud @ http://www.nist.gov/itl/cloud/upload/cloud-def-v15.pdf © 2012 IBM Corporation

Since “Cloud” is a computing style, there are many ways to deploy a Cloud. Some organizationsbuy the parts and build their own private cloud. Others get help to implement and / or run theircloud while others buy services from public clouds. Large enterprises are focused on buildingprivate clouds. Small organizations are more likely to buy public cloud services. Private cloud Shared or Hybrid Public cloudInternally operated 3rd party 3rd party hosted or Community cloud operated and operated Enterprise Enterprise Enterprise Enterprise Enterprise Users A B data center data center A B Private cloud Managed Hosted private Shared cloud Public cloud private cloud cloud services services Client DC Client DC 3rd party DC Mix of private and Shared resources Client owned Client owned Shared ownership public services Elastic scaling Client integrates 3rd Party operator 3rd Party operator Shared across Pay as you go Client operated More Highly standardized enterprises Fully standardized Highly standardization & Some Utility pricing Subscription or Little customization customized less customization membership Public Internet Some utility pricing pricing Access over VPN Trade-offs include costs, scalability, and customization9 © 2012 IBM Corporation

Organizations achieve efficiencies through IT virtualization,standardization and automation – key drivers of cloud computing Virtualized Higher utilization Economy of scale benefits Lower capital expense Lower cost Lower operating expense Standardized Easier access Flexible pricing Reuse and share Increased speed Easier to integrate Automated Faster cycle times Lower support costs Optimized utilization Improved compliance Improved flexibility Optimized security End-user experience10 © 2012 IBM Corporation

Son Huynh IBM Business Value Growth with Cloud Implementations: TCO Analysis 20 -25 % Operations 25 -30% Implementation 30 -35 % Virtualization Service Mgmt and Application Auto Pattern Provisioning Prov. And Mgmt Development Traditional Virtualized IaaS PaaS Infrastructure Potential Impact: Potential Impact: Potential Impact: • 65% Reduction in • 30% improvements on Provisioning time • 90% reduction in top of virtualization • 200 - 500% process overhead • 80% reduction in improved • 100 -200 % ROI workload deployment Life-Cycle TCO Pain Points resource utilization • 6-12 Months and management • Ability to track • 60 -100 % ROI payback • 3-9 Months payback Resources • 3-9 Months • Manual Installation and configuration Payback • Standard & Automation • ... * Number and percentages are approximated.11 © 2012 IBM Corporation

The move to Cloud for an outsourced client accelerated IT service deliveryby increasing resiliency, improving quality, and reducing operating costs Solution Lever will… Delivering Significant Benefits Increased agility / Speed to market Users “serve themselves,” Service improvement On Demand requiring less support and Self Service Improved Quality improving productivity by Reduced Costs delivering services faster Increase employee satisfaction Service improvement Leverage Reduce effort, time and errors by Labour Automation of Improved Quality Management automating repeatable tasks and Increase resiliency services Reduced Cost Service improvement Reduce complexity: more tasks Standardization of Improved Quality can be eliminated or automated, Workloads Increase resiliency reducing software and labour Reduced Cost costs and errors Capacity Flexibility Standardization Virtualization of Increase workload capacity & Infrastructure Reduced Cost Hardware Leverage flexibility over traditional physical Workload optimization and environments operating flexibility Utilization of Increase utilization of Capacity flexibility Infrastructure infrastructure and increases Effective utilization of Data Capacity economies of scale Reduced Cost12 © 2012 IBM Corporation

Cloud computing can reduce data centre costs by 20% to 30%. Traditional IT Budget Competitive IT Breakdown Budget Invest in new Business Capabilities (<25%)Typical Spend on IT Maintenance = 75% Software Costs Invest in new Business Needs Operating (> 35%) Savings % Environment Power Costs Production* 1% Performance* 1% Reduce Software Costs Labor Costs (typically 20%) DR 13% (Operations & Dev / Test 94% Maintenance) Power Costs (reduce 20%) * Includes 5x capacity buffer and significant performance and Labor Costs operational benefits. (reduce 10%) Hardware Costs (annualized) Hardware Costs (reduce 20% to 30%)13 © 2012 IBM Corporation

Four common cloud adoption patterns are emerging. Cities areadopting all four to reduce data centre costs, increase agility, anddrive economic development IaaS: Cut IT expense PaaS: Accelerate SaaS: Gain Innovate business and complexity time immediate models by becoming through a cloud to market with cloud access with business a cloud service enabled data center platform services solutions on cloud provider CIO – IT Ops SW developers (CIO / CXOs – marketing, CEO, CAO, COO, CMO • Reduce costs for LOB finance, procurement, • Create new revenue HW, SW, labour • Faster time to market. product development, streams and DC Reduce errors ,… • Create new channel • Improve testing • New services • Faster time to market • Innovation • Reduce selling costs • Integrate existing services15 © 2012 IBM Corporation

“We can predict problems and be proactive” - City of Rio de JanieroClient Challenges Six million citizens of this city live with the danger of landslides and floods. When disaster strikes, the city must respond quickly. Despite having multiple resources, public relief agencies and medical personnel at its disposal, the city and its agencies struggled to communicate with each other and coordinate rescue efforts . Without a single, integrated view of the crisis and the ability to share critical information, the city could not warn the public in a timely fashion and save lives. “This Center positioned Rio among the WW SmarterSolution Cities, and that was my dream City officials gained the ability to alert the public sooner, when I became Mayor; now it coordinate relief efforts more efficiently and respond to crises is a reality.“ - faster with an emergency information portal solution. Eduardo Paes, Mayor, City of Rio de Janeiro The system integrates the city’s existing resources, such as traffic cameras and rain meters, as well as near real-time data in a single view. This provides officials with a more comprehensive picture of a disaster, helping them discuss and synchronize rescue efforts,16 © 2012 IBM Corporation

The IOC provides a broad set of functions for city leaders Event correlation Event Mgt. Mouse over Pop-ups detection Data drill downIntegrated System Monitoring Click to Action Intelligent Operations Center Roles & Permissions Active Workflows: Automated Emails & SMS Data Exporting Progress Reporting 17 © 2012 IBM Corporation

Smarter Water6xIncrease in global water usage since 1.1 billion The number of people that do not have 45% Up to 45% of water is lost due to leaks inthe 1900s; twice the rate of human access to safe water according to The an aging water infrastructure around thepopulation growth. World Bank. world.Work Optimization enables water utilities to optimize maintenance and repair schedules based on type of work order, location, crew and equipment needed allows the utility to address “work on the way” and “work in the neighbourhood” while responding to high priority workUsage & Revenue Analysis allows utilities to better understand and predict water usage provides insight in predicting future patterns of asset failure and identify targets for preventative maintenance detects usage anomalies ensures environmental integrity of city water system by addressing flood, water quality, and erosion control.Customer Problem addressed Increasing maintenance costs, increasing work backlog, inefficiencies in utilization of limited numbers of skilled work crews, increasing transportation costs Inability to support analysis for rate case development and improved pricing models 18 © 2012 IBM Corporation

WUXI iPark Cloud Center Major city in China - centre for industry and commerce Goal was to balance economic development, environmental protection, and the wellbeing of its 6M+ citizens Wanted to create a flexible, shared computing resources for local government projects and for software development start-ups to lower barriers to market entry for new companies by eliminating need to commit capital to in-house infrastructure. "The combination of the IBM Built Wuxi Cloud Center; a shared infrastructure that Smart Business cloud – enables high utilization of available resources portfolio and IBM Blue Cloud – Delivers cost-efficient dynamic resources as required, and technology enabled us to create a highly flexible priced according to usage platform for delivering rich services via the Internet." - Paul Lu, CEO of Wuxi Cloud Center19 © 2012 IBM Corporation

IBM developed a Municipal Shared Services Cloud in a First-of-a-Kindproject with a number of NY cities and towns to validate the technology &business model Cloud SaaS services attractive for smaller businesses & governments Shared Data Management uses model to link independent services and data ISV TaxTowns Info-Based ISV 1 Acc’t Composition Building Pangoo Platform Water ISV 2 Multi-tenant Security Cities Tax Subscribe Bill S4SE Assess Cloud Infrastructure Assess ServiceVillages Gov’t Maps Providers ISV3 Client Relation Clients Owners Composer Ecosystem20 © 2012 IBM Corporation

Some things to consider as you move to cloud Governance of standards and shared virtual resources ITIL processes and management disciplines change The org structure of IT changes as well as the skill profiles and mixes Procurement of cloud services and systems needs to change Cloud is a style that is as applicable to business services as it is to IT – how is your City adopting a cloud?21 © 2012 IBM Corporation

Cloud is a new style of computing – start your journey today. Check Cloud readiness – do relevant processes, procedures as well as 1 roles & skills exist to manage the expected hybrid cloud delivery models? Analyze workloads and select delivery models – which workload is 2 Moving suitable for which cloud model; which service levels are needed based on business requirements; what happens to “legacy“? to Define and develop Cloud Computing architecture; design Cloud 3 blueprint for processes, technology, organization 4 Establish management procedures to manage the different cloud models like a homogeneous environment 5 Define and publish a service catalogue for all relevant services to enable simple access to all services and disguise complexity of service delivery for customers / end users Get onto IBM’s SmartCloud Enterprise and start experimenting – See what your Cloud could look like / Use it to develop a business case for change – www.ibm.com/cloud/ca Assess your current state and readiness for Cloud or assess which of your workloads are most suitable to move to a cloud – www.ibm.com/cloud-computing/us/en/consulting-and-implementation.html22 © 2012 IBM Corporation

MISA Cloud Workshop_ Roadmap to a municipal community cloud in canada

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