And of course, we’re applying cloud to our own infrastructure as well. We have invested billions of dollars in R&D and acquisitions to build leadership in two key dimensions of this new IT model: service management software and optimized systems. We have also established a portfolio of cloud services that clients can access externally from IBM or offer internally to users on their own premises. More than 200 IBM researchers are working on breakthroughs in areas like cloud security and privacy. We’ve also established IBM Cloud Labs in 11 locations in the US, UK, China, India, Korea, Japan, Ireland, South Africa, Brazil, Hong Kong & Singapore infusing our deep expertise into the local regions. Each lab serves as a gateway for the local clients to tap into the knowledge of IBM’s software, services, and research labs around the world. The organization has deep skills, customer expertise, and the ability to rapidly collaborate as one virtual team. The team works on a cross-brand level, developing first of a kind solutions for our clients that leverage the entire IBM portfolio. We’ve also established two IBM Cloud delivery locations in Raleigh, North Carolina and Ehningen, Germany, with others rolling out around the globe in 2011. And IBM is eating its own cooking by implementing clouds across the company. The CIO’s office has undertaken a workload approach that is generating good efficiency results. Analytics We announced this capability externally as the world’s largest private cloud computing environment for business analytics, called Blue Insight – the basis for the Smart Business Analytics Cloud offering Blue Insight provides IBMers globally with insight to better meet the needs of clients worldwide as well as pursue internal growth and productivity opportunities. Blue Insight provides a single entry point to information from nearly 300 different information warehouses and data stores, providing analytics on more than a petabyte of data. More than 150,000 IBMers will have access to Blue Insight in 2010; currently with over 140K users, 50 ported applications and another 150 applications are the pipeline for deployment toward our user deployment goals. We expect to realize tens of millions of dollars in savings over 5 years through deployment of Blue Insight. Collaboration/Lotus Live IBM adopted LotusLive Meetings last year as our primary web conferencing capability for meetings among IBMers, clients and business partners. In 2009 the total number of meeting minutes grew to over 145 million minutes. We are on track for doubling this in 2010. The adoption rate of LotusLive for meetings has been fast – with 85% of IBM’s current meeting minutes provided through LotusLive IBM is also piloting the use of LotusLive Engage with 23,000 registered users sharing files, internally and with clients. IBM is exploring the use of LotusLive iNotes for a targeted segment of the population (Since it does not have funding in 2011, you may want to drop this item) Strategically, we will continue to complement our on-premises collaboration offerings with those from LotusLive, especially in the near term with private community and file sharing capabilities. Development/Test The IBM CIO Develop/Test cloud went into service in September 2009, supporting the Power and x86 platforms in support of the teams that development most of IBM’s internal applications. A second generation of that cloud went into production in late April 2010. Notable metrics: The average server provisioning transaction times have gone from 5 days to an hour when using this cloud vs. traditional server build processes. Approximately 500 new server images have been provisioned in this cloud since then, and we are projecting to have processed over 800 by year end – over 100 per month. De-provisioning activity is running at about 50% of the number of requests for new images. Nearly 100% of the requests for server provisioning/de-provisioning are coming through this cloud as opposed to the previous manual build rquest process. The initial projection had been for a 50/50 split. Speaks to the power of speed, flexibility and self-service in an application of cloud that really appreciates those attributes. This cloud was implemented as a private cloud by leveraging the IBM Smart Business Development and Test Cloud service product . The SBDTC provides the assets necessary to easily build a private cloud environment for this purpose for installation behind a corporate firewall. Some of the automated/self-service functions provided by this cloud: Automated approval within preset monthly spend limit Self-service purchase of optional support services for all image software components Self-service change of virtual server configuration and support Lower setup cost. Easy tear-down. Transparent usage-based billing Expected higher dev-test productivity (enablement of more agile methods) Web application middleware stacks supporting 50% of our test activity were enabled first (WAS/DB2/MQ/IBM HTTP Server (Apache)), with additional work underway this year to cover 80% of our develop/test activity. In addition to productivity & cost savings, this capability is a key enabler for our internal development transformation (GenO/Liquid) allowing us to leverage competitive software development community services like Topcoder . Client results we're yielding from dev/test cloud implementations. Reduced IT labor cost by 50% in configuration, operations, management and monitoring. Improved capital utilization by 75%. Reduced provisioning cycle times from weeks to minutes. Improved quality, eliminating 30% of software defects. Reduced end user IT support costs by up to 40%. Desktop 2,000 production users in our China Development Labs running on a private desktop cloud Pilot using IBM Smart Business Desktop on the IBM Cloud set to begin at the end of September. Pilot to involve 200 users in internal End Users Services (EUS) desktop support group in Boulder, CO. Based on the success of the pilot, we anticipate production deployment of this solution in 2011 for 2,000 total users in Boulder and Bangalore. Also leveraging the Workplace of the Future user segmentation analysis to identify other user segments that would benefit from this deployment model. A financial model has been developed leveraging the role-based segmentation work done under the Workplace of the Future initiative. The financial model can be used to measure potential cost savings and has been applied to the China Development Lab. No cost savings were identified as compared to IBM's Standard Client Offering (SCO). This same model will be applied to the EUS pilot. While no cost savings are anticipated, there are a number of soft benefits that make desktop cloud an attractive option for appropriate user segments. Key to getting value from desktop cloud is pairing the desktop with other goals/requirements, and the right use cases. For example, using desktop cloud to support personnel doing very basic help desk support allows an implementation which avoids having to support – and pay for – desktop image persistence – and allows for increased security at lower cost. Reference architectures for desktop clouds are not “one size fits all” and based on segmentation -- end user personas, usage patterns and business requirements -- we are learning to apply the best solution to meet the cost and performance goals. Build out of our desktop cloud lab in Southbury, CT has begun with the assistance of the CIO innovation and transform teams , and Citrix. The purpose of the lab is to test new technologies for potential CIO pilots in 2011. Particular use cases/areas of focus include &quot;bring your own PC&quot;, offline/disconnected access, application virtualization and Smartphone/tablet access. Storage IBM’s current internal use of operational storage stands at about 10 PB – about 1 PB of file storage and 9 PB of block storage. We also have about 15 PB of backup storage. IBM faces YTY growth rates of nearly 25% in our file and block storage spaces -- similar to industry. We're working to drive higher utilization and storage management automation. A large portion of IBM’s internal file storage is provided through the Global Storage Architecture (GSA) File offering -- IBM’s “first” cloud. GSA provided cloud storage before it was called that. It has automated self-service provisioning, flexible pricing, elastic capacity and employs advanced virtualization. GSA is used by over 130K users and internal applications, including Lotus Connections, Cattail, and our AHE standard hosting environment. IBM’s Smart Business Storage Cloud was inspired by and based on IBM’s own internal GSA File storage offering. For block storage IBM focusing first on the midrange & zLinux support technology, like XIV, and cloud automation. Work is underway to transform IBM’s Managed Storage Services (MSS) offering into a block storage cloud. It will employ automated provisioning and introduce tiered storage, deploying lower cost storage tiers using IBM XIV and DS5000 storage systems and tooling to move data to appropriate tier automatically. Pilot projected to complete 4Q; production 1H2011. Estimated savings opportunities for these spaces currently range around 30-40%. Production Compute IBM is implementing its first cloud targeted to support internal production applications. Initial implementation will provide a lower cost infrastructure-as-a-service (IaaS) execution environment for low-tier, non-critical applications. Expansion to support other production workloads is planned, informed by our early experience. This offering will leverage both a private cloud instance and an instance of the IBM Cloud (public cloud offering) enhanced with appropriate enterprise-level security mechanisms. Planning has begun to employ IBM’s Smart Private Production Cloud (SPPC) offering as the future base for related private cloud instances. Applications will be targeted to one or the other instance according to application characteristics and requirements. All cloud instances built using standard IBM cloud products and services, and with adherence to IBM’s Common Cloud Management Platform reference architecture. IBM is examining its production application portfolio for applications that can best take advantage of the elements of cloud value: Convenient, on-demand access to standardized offerings that are rapidly provisioned, flexibly priced and elastically scaled. About 1000 applications have been identified from our portfolio as early potential candidates for this initial cloud implementation and intensive work is underway to validate that potential. Plans are in place to move a number of those deemed viable into this cloud environment in 2010 and 2011. We will be leveraging the learnings, process and tools used by our massive Enterprise Computing Model (ECM) virtualization project to execute the migrations of applicable applications from their traditional hosting environments and into this cloud. The value of this cloud will be realized through improvements in infrastructure -- primarily through the use of virtualized hosting -- and lower labor costs for support enabled by increased automation and workload standardization relative to traditional hosting. In aggregate, the activities the CIO has in play will create millions of dollars in savings for the IBM Corporation and allow it to take advantage of the flexibility and new opportunities cloud enables.
Cloud computing is a shift in economics and focus. From an economic standpoint cloud addresses: Self-service Cost reduction Scale Utilization IT agility, flexibility and delivery of value. Cloud focuses on choice: Workload optimization Service delivery The end-user experience
So how are real clients realizing benefits from the cloud? We’ve compiled here a list of the ways that clients are telling us they’ve been able to see real, tangible results from their cloud delivered implementations. Why can a cloud environment have this kind of effect? The key is that the cloud is based on three essential fundamentals: it’s standardized, it’s virtualized and it’s automated. That’s how you can provide scalable services. That’s the way you’re going to see efficiency. And that’s the way you’re going to drive down costs and improve service. That’s really a pretty simple equation, and we are seeing clients that are doing this achieve very real, measurable business results. For example: Virtualization of IT resources—servers, storage, networks and applications—are pooled and virtualized to help provide an implementation-independent, efficient infrastructure with elastic scaling, meaning the environments can scale up and down by large factors as demand changes. Automation through a self-service portal and automated provisioning Standardization of pricing, processes and services The results shown here are indicative of typical results of IBM cloud clients, based on our client experiences and our own internal results.
To address the demands of a planet that is growing smarter with each passing day, IBM believes organizations must build a dynamic infrastructure where IT becomes the central nervous system across the business. And one of the best ways to make the data center and IT smarter is a workload-optimized approach with integrated service management and flexible delivery choices. In support of this approach, IBM has introduced and continues to grow a new smart business portfolio that brings together these three differentiators into solutions that your company can leverage today. Our portfolio offers three types of cloud offerings: smart business on the IBM cloud, IBM Smart Business Services and IBM Smart Business Systems. Lining up our solutions by workload, we’re adding capabilities in areas where we already help clients adopt cloud computing with success today. For example: IBM Smart Business Desktop Cloud enables a virtualized desktop environment on the IBM cloud. IBM already provides desktop cloud consulting and implementation services. Now clients can have nearly all the benefits of virtual desktops but within a prepriced, prepackaged subscription service. IBM Smart Business Storage Cloud allows an enterprise to cost-effectively implement a private storage cloud to handle information that includes, but is not limited to, electronic documents, e-mail and e-mail attachments, presentations, CAD/CAM designs, and source code and Web content from check images to videos, historical documents, medical images, and photographs. Announced on June 16, 2009, the IBM CloudBurst™ solution is a self-contained cloud management and resource platform that provides the computing, storage, network and software required for clients to establish a private cloud. The first offering in a family of planned business-ready offerings, the IBM CloudBurst platform includes a self-service portal and a services catalog, helping clients realize rapid time to value. In fact, some clients have had a cloud up and running within hours of installation of the IBM CloudBurst platform. IBM Global Technology Services provides quick-start services to help you assist your clients in gaining the full benefit of the solution.
By definition clouds are workload specific and need to be highly optimized to the work. For example, different workloads have very different architectural characteristics – think about how Google is optimized for search or massive reading, Amazon for web displaying, and Salesforce for a heavy multi-tenant environment. Those areas that have a high degree of affinity with the cloud model – technically and from a risk/reward perspective – include Infrastructure as a Service and Software as a Service solutions. Workloads that clients are adopting now include test and development, desktop, collaboration, storage, compute and analytics. All of these are highly standardized….the more standard the environments the better the economics are going to be. There are other workloads that will never move to the cloud due to regulations, criticality, or security concerns. And new workloads are being made possible due to the benefits of clouds - massive scalability and self-service, economies of scale – such as medical images, fraud detection, or energy management. IBM takes workloads into account when building our cloud solutions…
IBM Cloud Computing Solutions ICT Doha, May 25 th , 2011 Hesham Rasmy : Middle East & Africa Cloud Consultant Email: [email_address] Mobile: 002 - 0106789099 IBM Middle East & Africa
Hanoi Silicon Valley Dublin São Paulo Johannesburg Bangalore Tokyo Seoul Singapore Beijing Ehningen Raleigh Wroclaw Analytics Collaboration Development and Test Desktop Storage Business Services Fit for purpose middleware platform Common Compute Platform (Compute/ Network/ Storage) Base Enterprise Platform Blue Insight 140,000 users growing to 200,000 LotusLive 85% of all web conferencing Dev/Test Time to build a dev/ test environment from 1 week to 1 hour Workplace Cloud Estimated savings up to 30% Network Storage Cloud Up to 40% savings in storage costs Production Cloud 1,000 potential applications identified IBM Cloud Labs Other IBM Cloud Centers IBM is investing in cloud computing to meet internal and client needs CIO Cloud Implementations:
A new consumption and delivery model inspired by consumer internet services and optimized by workload
IT agility, flexibility and delivery of value
The industrialization of delivery for IT supported services
Deployment models: public, private, hybrid
Delivery models: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS) and Business Process as a Service
Cloud is a shift in the consumption and delivery of IT with the goal of simplifying to manage complexity more effectively.
Economic benefits of a Cloud Deployment Case Study Results Annual savings: $3.3M (84%) $3.9M to $0.6M New Development Software Costs Power Costs Labour Costs Hardware Costs (annualized) Liberated funding for new development, trans-formation investment or direct saving Deployment (1-time) Software Costs Power Costs Labour Costs Hardware Costs Note: 3-Year Depreciation Period with 10% Discount Rate Without Cloud With Cloud 100% Current IT Spend Strategic Change Capacity Operational costs ICT Cloud Computing Roadshow - MEA 08/06/11
Cloud Services Portfolio Enabling New Delivery Models Smart business on the IBM cloud IBM Smart Business Services IBM Smart Business Systems Standardized services on the IBM cloud Preintegrated, workload-optimized systems Private c loud services , behind your firewall, built and/or managed by IBM IBM LotusLive IBM CloudBurst ™ family IBM Smart Cloud Enterprise Test Dev Cloud IBM Smart Business Desktop Cloud IBM Smart Business Storage Cloud Analytics Collaboration Development and test Desktop and devices Infrastructure storage IBM Smart Analytics System Smart Business for Small or Midsize Business (backed by the IBM Cloud) Infrastructure compute IBM Tivoli Live IBM IPS – Managed Backup Cloud Business services BlueWorks Live IBM Smart Business Desktop Cloud IBM Smart Analytics Cloud Smart business expense reporting on the IBM cloud IBM Information Archive IBM Smart Cloud Enterprise Development and Test on the IBM Cloud Smart Business End User Support Lotus Foundation IBM CloudBurst ™ family IBM Managed Security Svcs IBM Cloud Service Provider Platform Smart Business Select Learning IBM Federal Community Cloud
Cloud will be adopted based on workload “fit” IDC Cloud Computing Roadshow - MBal 08/06/11 Ready for Cloud… May not yet be ready for migration… Sensitive Data Complex processes & transactions Regulation sensitive Not yet virtualized 3 rd party SW Highly customized Analytics Collaboration Development & Test Workplace, Desktop & Devices Infrastructure Storage Infrastructure Compute Business Processes Industry Applications Pre- production systems Information intensive Isolated workloads Mature workloads Batch processing New workloads made possible by clouds… Medical Imaging Financial Risk Collaborative Care Energy Management Disaster Recovery
Spectrum of Deployment Options for Cloud Computing Enterprise Data Center Private Cloud Managed Private Cloud Hosted Private Cloud Shared Cloud Services Public Cloud Services Enterprise Data Center Third-party operated Enterprise Third-party hosted and operated Enterprises Users
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Hybrid Internal and external service delivery methods are integrated Private Public IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall IT activities / functions are provided “as a service,” over the Internet
Thank you! For more information, please visit: ibm.com/cloud
Hesham Rasmy Middle East & Africa Cloud Consultant