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Cloud Computing - What's all the hype?
 

Cloud Computing - What's all the hype?

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  • Slide 2: As the world gets smarter… NOTE TO PRESENTER: You can customize this page by talking about the important business drivers in your industry: Better revenue streams; Updating customer insight; Driving out costs; Successes with instrumentation. What is the business agenda of your customer - and how will it impact the demands on IT. ------------------------------------ General Speaker Notes: IBM has been talking about our vision for a smarter planet for close to a year now- and working with thousands of clients - with great success and traction taking hold. There’s no doubt that in almost any industry today, digital and physical infrastructures are coming together more and more. To some extent – today - almost anything – any person, object, process or service -- can become digitally aware and connected. Every industry is experiencing the benefits, and feeling the challenges, being presented by a smarter planet that is more instrumented, interconnected and intelligent. (Use an industry example, if possible, to bring point to life. See below) Transition Line: What does this mean for you? As the world gets smarter, the types of demands on the infrastructure, both business and IT, will continue to grow. (Speaker note- consider picking one example from below – or one from your own industry). Take one example, one issue that many of us face each and everyday is dealing with traffic. As a major city government, clogged highways create massive headaches: managing traffic flow, impeding emergency services, and creating a large carbon footprint. The city of Stockholm came to IBM with a project to change that. They had a goal of reducing rush hour traffic by 20%, increasing use of public transportation, and basically reducing their carbon footprint. Working together, we made their highway system “smart”, monitoring traffic volumes, and as traffic increases the tolls for getting into the city go up. The heavier the traffic, the more it goes up, thereby driving a behavior change, but also making people aware of how many cars are on the road. The project was a huge success. They saw their traffic volumes drop by over 20% in 60 days, use of public transportation, trains and buses, increased significantly, and their toll revenue went up as well. They are now taking that money and putting it back into more and enhanced public transportation. IBM is now working with over 15 cities around the world on instituting a similar system. Statoil, a global oil company, has many offshore operations. Each of these offshore platforms are incredible production facilities: highly automated, computerized, and monitoring real-time the quality of what is being pumped from the ground of each wellhead of the platform. However, they needed productivity to improve. Globally, on average, only 37% of what is pumped out is actual useable crude oil. Statoil was achieving productivity higher than the global average, but still not where they needed to be. Partnering with IBM, we analyzed the volumes of data they had on what had been pumped from each wellhead and discovered that the oil fields deep underneath the surface of the earth ebb and flow, just like our oceans. By analyzing the data real-time from all the platforms covering a single field, we are now able to predict when a platform should be pumping, and when it should be shut down. By knowing in advance when a platform will be most productive, Statoil has been able to improve productivity by over 20% in 10 months. An added bonus is that their platform operating expenses have dropped by over 30%. Why? Because they can now predict the proper worker scheduling, without large amounts of downtime, or overtime. They also can now prepare for routine maintenance in a predictive manner. This was a project that drove down costs, and provided for breakthrough productivity improvements. IBM is now working with several other oil companies on similar implementations. Our healthcare is becoming smarter as well, and generating vast amounts of information. For example, today not only do they provide one dimensional x-rays, and MRI images, today we do both in 4 dimensional imaging – that is full 3-D with the factor of time added in. These ‘streaming” images are providing huge insights in improving overall healthcare, but they are also presenting huge challenges in medical record management, storage, and accessibility (i.e.., networking bandwidth). Did you know that on average around the world, only 27% of the electricity that is generated is actually used to power something? Now, using the power of electricity is using the “flow” of the electricity, similar to water power. So when our power plants are creating electricity they must disperse it across the system to keep the flow going. Traditionally, a power plant would build up to a certain volume, and then broadcast out across the entire system. So if one area really needed less electricity, but another area needed more, then the power plant would have to generate more across the entire network. About 5 years ago, partnering with IBM, utility companies began to make their energy networks “smart”. This meant instrumenting and interconnecting the grid with a main monitoring system that would track actual electric usage, and then route power across the grid according to need. This has driven huge productivity improvements, in some cases experiencing overall utilization in excess of 50%. For many companies around the world this has also eliminated the need to build new power plants. In fact some have told us that they believe they can wait as many as 5 years before looking to expand power production. Smarter retail and smarter supply chains mean leveraging RFIDs and digital information to make the shopping experience better for the consumer, and making sure that what the customer wants to buy, is on the shelf. Teaming with IBM, a major retail company in China has implemented an automated stock management system that has all of their suppliers monitoring product usage and store inventory needs real-time at each and every store. When an item reaches the trigger point, automatically the supplier is shipping replacement stock, with a guarantee that it will be in the store within 72 hours. Another example is leveraging security cameras to monitor shopper behavior, or the ability to then move stock that is in high demand to more convenient places for customers to see and buy. Or, targeting certain buyer categories based on their shopping habits. Much is being done to improve store sales, while simultaneously improving the shoppers experience and thereby customer loyalty. Smarter transportation includes the ability to get trucks for point A to point B more efficiently, using less fuel and getting there faster. Maptuit, based in Denver, Colorado is doing just that by leveraging the cell signal data between cell towers to monitor speeds, traffic congestion real time and guide drivers in the best way to arrive at their destination. A major global retailer is now signed up with them, as they were able to prove their technology in a pilot that would save the retailer over $1.5 million per year in just ONE city.
  • The proliferation of sensors, digital communications and other forms of digital data collection, along with advances in the storage and management of such data has led to a projected tenfold growth in digital data between 2007 and 2011. All of this data has the potential to provide enterprise with valuable insights for running their businesses more effectively and efficiently. Now, businesses analysts need to adapt from an environment in which the challenge was in gaining insights from limited data to one in which the challenge is in managing and extracting useful information from massive data sets. As one can imagine, finding the relevant data, and quickly, amid the 'mountain' of available data can be like finding a needle in a haystack. Moreover, of the growth in digital data, approximately 80% of it is expected to comprise semi-structured and unstructured data (i.e., email, blogs, medical images, videos, audio files, pictures). With unstructured data, considerable effort is required to 'understand' the data, even before any further analysis can be performed to intelligently influence decision making. Semantics The number of semantically tagged documents and data sets is growing, as a result of five developments: “ Linked Data” guidelines, published in 2006, make it easier to share data on the web. The graph in the upper left represents the output of the Linking Open Data community project, which has the goal of making large numbers of open data sets more available by complying with the Linked Data guidelines. RDF (Resource Description Framework) triples are a key component of the Linked Data guidelines. Technologies to convert many legacy sources, especially of relational data, into RDF triples, became available as open source in 2006 (and IBM Research has improved versions of these) Technologies are appearing that can automatically find associations between subjects and objects from one “data graph” with subjects and objects in other “data graphs” Several important reference information suppliers, most notably Thomson Reuters, entered into this space (through their OpenCalais effort). Several efforts have developed technology to mine the essential information about people, places, materials, governments, businesses, works of literature and so on from Wikipedia, into a semantically tagged form (notably DBPedia and Freebase), so that as Wikipedia extends to cover more of the worlds knowledge, more of that becomes part of the Web of semantic data. Net: Both the number of facts, and the rich interconnecting of different classes of facts, have been growing at an accelerating rate. Example Use: In BlueJ! grand challenge, linked data (DBpedia, IMDb, Freebase etc) is used as important structured information source to improve the accuracy of question answering in additional to unstructured information. Acronyms: RDF – Resource Description Framework (W3C Standard) FOAF – Friend of a Friend – the RDF application for describing people and other people they know DBLP – Digital Bibliography and Library Project – bibliographic information on more than 1 million computer science research publications SIOC – Semantically Interlinked Online Communities DOAP – Description of a Project; DOAPSpace – a repository of open source projects RIESE - R DFizing and I nterlinking the E uro S tat Data Set E ffort OpenGuides – Information about leading cities of the world, the kind of information that would appear in a guidebook, produced by the community through a public Wiki. Jamendo – an online music community, including a large quantity of music licensed under various Creative Commons license terms. www.garlik.com – an online identity monitoring service Sindice.com – web service providing a directory/index of all Linked Open Data and Microformat data on the Web
  • To start, I don’t think anyone at this point misses the fact that we are at in inflection point with regard to enterprise IT. This crisis of IT complexity and inefficiency is clear, but the issue has become even more pointed in the context of a global economic crisis. This has caused clients to take a hard look at challenges growing within their IT infrastructure. This chart depicts server infrastructure and related operating costs. You can see that OPEX – including management and energy costs – is 70% of the cost of these environments and growing. But this is only one dimension of the issue. When you look at network complexity, or that we have 50% compounded data growth per year – or rapid growth in applications -- this model is not just un-economic but unsustainable In distributed computing environments, up to 85% of computing capacity sits idle. Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. Explosion of information: 54% growth in storage shipments every year. 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible.
  • Slide Transition CIOs told us of a broad array of initiatives they are pursuing, and those they have on their radar screen. These initiatives are not related only to IT, but are business oriented plans to enhance their organization’s competitiveness and performance Slide Speech CIOs told us of a broad array of initiatives they are pursuing, and those they have on their radar screen. These initiatives are not related only to IT, but are business oriented plans to enhance their organization’s competitiveness and performance. Notes related to charts When we asked CIOs to identify their visionary plans for enhancing their enterprise’s competitiveness, business intelligence and analytics was the top answer, selected by 82 percent of our sample. Many CIOs agreed that they seek information-led innovation based on treating information as an asset. CIOs’ next most popular answer about visionary plans was virtualization, cited by 76 percent of CIOs. Rounding out the top three is risk management and compliance. CIOs reiterated the importance of mitigating risk, and many described their organizations as risk-averse Highlights for France The French CIOs considerate that Customer and Partner Collaboration is the most important priority (rank 2) to enhance competitiveness, whereas for the worldwide panel this point isn’t in the 3 top priorities. French High-growth CIOs put also in their top priorities (rank 7) : Enterprise-Wide Human Capital Development. This last theme isn’t in the top 10 priorities of the worldwide panel.
  • From an economic standpoint, we’re seeing innovation as the common thread woven into the fabric of more and more nations, as they tackle the challenges of an ever-changing world. And with good reason. Economies everywhere have concluded that Innovation is the single greatest driver of competitive advantage today. And markets being what they are, innovations that occur in the marketplace generate further innovations. In the process, they give rise to new industries, they spur productivity and economic growth, fuel wealth-creation, create higher-paying jobs, and raise the standard of living for everyone.
  • The banking industry is a good example of how the business model has changed, to address both the operational overhead in the back office that was putting pressure on profit – to really being driven by the consumer – with the potential to deliver banking services to end users in whatever form or fashion they so choose, without the need for a computer. Branch banking – teller transactions for cash and deposits, limited hours 10am to 3pm ATMs – machines for cash and deposits, 24 x 7 availability e-business – all financial services accessible from home computer “ Cloud” – allows financial services computing without the need for a computer. Intelligence doesn’t need to be in the device. The intelligence resides in the infrastructure and the user becomes un-tethered from the device. Banking through the Cloud allows a more flexible, robust, consistent level of service. For example, autonomic provisioning directs more resources to services needed to prevent Cloud financial transactions from slowing down. Speaker Note : Other industry examples that can be used to talk about the rising tide of information and emerging business models: The field of medical imaging is driving breakthroughs in diagnosis and treatment in medicine – and that will only accelerate. As a result, there is exponential growth in the number and size of digital medical images . Medical images that used to be two-dimensional and 1MB in size a few years ago are now typically four-dimensional and 1TB in size. By 2010, it’s estimated that 30% of the world’s storage will be taken up by these medical images.¹ In financial services, advances in technology are enabling firms to get a better grasp of events effecting world markets. In these financial markets, speed determines winners and losers. This has led to a substantial increase in the amount of information that is shared across the various systems, as well as increasing demands for real time analytics. The volume of market data messages will soar from 5 billion market data messages per day in 2006 to nearly 130 billion messages per day by 2010.² And no where is innovation more visible to consumers than in the mobile phones market. The number of mobile phone subscribers worldwide is expected to grow to over 4 billion by 2010 – up from approximately 1 billion subscribers in 2002.4 Transition Line: Across these and many other industries - we see an explosion of innovation grounded in IT… servers, storage, networking equipment, and the software that enables them to create value. All this is great news for business, but is putting even greater pressure on the operational backbone of IT.
  • As The Economist reported recently: “Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies operate.” IT is worried about disruptive change to operations. Already line-of-business unites are going to public cloud providers. Some IT concern is due to a misunderstanding of cloud computing. Some say it is client/server all over again. Some say its grids or utility computing or software as a service. In reality, cloud computing encompasses: Grid computing: Solving large problems with parallel computing Utility computing: Offering computing resources as a metered service Software as a Service: Network-based subscriptions to applications Cloud computing is anytime, anywhere access to IT resources delivered dynamically as a service. CIOs understand that cloud computing will transform the way people work and companies do business. IBM Global CIO Study 2009 surveyed 2,598 CIOs in 78 countries and 19 industries More than one-third cited cloud as the most important visionary initiative With an IT strategy that embraces Cloud, CIOs can better satisfy their customers with more responsive, simpler and cheater IT. The evolution to cloud requires an overall strategic vision guiding pragmatic action.
  • Why is everyone so excited about Cloud Source: Market Assessment Panel, Cloud Computing Study Question 6: To what degree would each of the following factors induce you to acquire services through this External delivery method ? Please rate each item below on a scale from 1 to 5 where "1" means "Not An Inducement To Acquiring" and "5" means “A Major Inducement To Acquiring." When answering, please use the entire scale. Base: 1,090. Percent Rating As A Major Inducement (4 or 5) Note: Respondents could rate multiple items as inducements
  • Cloud computing is a new way of deploying IT over a network. Clients see only the service and not the implementation or infrastructure required for delivery. Technology services include storage, data protection, applications, business process and even business and consumer services such as email and office applications. No matter the IBM instantiation - All of our cloud-delivered services have common attributes – 5 in total: Clients will need to embrace standards to take advantage of Cloud Services IT and network capacity and capabilities are – ideally automatically – rapidly provisioned using Internet standards without transferring ownership of resources Utility pricing, variable payments, pay-by-consumption and subscription models make pricing of IT services more flexible and will evolve Resources scale up and down by large factors as the demand changes providing ability to leverage labor and not just IT IT resources from servers to storage, network and applications are pooled and virtualized to provide an implementation independent, efficient infrastructure – a dynamic one.
  • This architecture was established by the Cloud AB, has served us well to guide investment. Upper half: Cloud Application Container. Lower Half: Cloud Management System, OSS and BSS. Remark: Workload Optimized Systems cut across the cloud service platform and the CCP.
  • Clients interviewed showed a much stronger preference for private clouds than either public or hybrid delivery models. Nonetheless, we believe that the preference for public cloud services will grow over the next few years. The companies that did show of preference for public cloud in our study display certain common characteristics. They are: More likely to be using a provider for traditional outsourcing of infrastructure and/or business processes Less likely to view loss of control over IT resources as an obstacle to acquiring Public Cloud More likely to view application/database, availability, and incident/problem management as critical processes for their business and More likely to be US businesses
  • The chart depicts the ROI and common attributes of cloud computing. These include: Advanced virtualization. IT resources from servers to storage, network and applications are pooled and virtualized to help provide an implementation-independent, efficient infrastructure. Automated provisioning. Test resources are provisioned on demand, helping to reduce test cycle time. Service catalog ordering. Uniform offerings are readily available from a services catalog on a metered basis. Metering and billing. Test resources used and reserved are charged back to lines of business, improving cost transparency.
  • Consolidate - Consolidate servers, storage (etc.) to get down to a set of primary physical infrastructure resources that can be virtualized. May or may not start with an initial consolidation assessment depending on the customer’s current environment. Virtualize - Eliminate physical infrastructure boundaries (develop virtual infrastructure images) required to enable the provisioning of infrastructure and application services over the network in a cloud-based architecture.
  • Source: Market Assessment Panel, Cloud Computing Study Question 8: What, if anything, do you perceive as being actual or potential barriers to acquiring services through this External delivery method ? Please rate each item below on a scale from 1 to 5 where "1" means "Not a Significant Barrier" and "5" means “A Very Significant Barrier." When answering, please use the entire scale. Base: 1,090.
  • Key point: Based on feedback, security is the #1 concern for customers – as it usually is for any new IT solution. “ External” aspects of the cloud exacerbate this concern, which is why large enterprises resonate with the idea of a private cloud and the degree of control it offers. Security is usually the #1 concern for any new IT solution, but the additional “external” aspects of the cloud exacerbate this concern Customers were mostly concerned about the data security and the reliability of cloud computing in practice Large enterprises resonated with the concept of Enterprise Cloud which was considered to be more secure than any external solutions
  • http://www.redbooks.ibm.com/abstracts/redp4614.html?Open
  • We have real clients all over the world that are using cloud services to reduce complexity, lower costs and achieve real business value. They are: Reducing and avoiding up-front infrastructure costs. Quickly provisioning development and test environments for considerably faster time to market. Creating new business models for IT consumption Reducing storage costs Communicating and collaborating more effectively. All this and more.
  • For questions on using this reference, contact the Market Segment Manager - Kathy Hansan/Thornwood Solution: IBM Smart Business Test Cloud - a secure, private cloud environment clients can use for testing applications. Deep cost reductions are possible through automation, improved test cycle times and advanced virtualization. Service integrates with CloudBurst or existing systems. Sales Kit: http://spimweb1.boulder.ibm.com/services/sosf/dyno.wss?oid=50043#2 Client Background Government of Canada Crown corporation in Regina, Canada Lending institution only, though charter & legislation permits evolution to full services bank Business is booming due to high commodity and farm produce prices, as well as additional customer business due to credit squeeze elsewhere Long time IBM SO customer
  • Pike County Schools was looking at replacing 1,400 aging workstations across its district. Instead, it deployed a virtual desktop solution on an IBM cloud, standardizing the applications and processes for all the schools and enabling it to use existing hardware to access cloud services. The district achieved cost savings of 60 percent by avoiding a full equipment refresh and increased levels of security and reliability in the IT infrastructure.
  • Problems Customer Faced: Soaring storage demand due to increased information retention requirements, and new digital data formats Inadequate data protection as locally held data was being stored on unreliable media and not being backed up Unable to adequately forecast future storage requirements ‘ Inability to share data from researchers across or even within departments Result Increased capacity-10x on disk / 50x on tape Simplified management and greater visibility to storage resources and needs Back-up times cut by over 80% Shared resource pool for users to improve overall access to information Background: (Key thoughts in bold) More than 28 million specimens in its zoology collection; roughly the same number of insects and other entomology specimens; 9 million in the palaeontology department; and over 5 million in the botany collection. And you can add to that almost 800,000 books and 20,000 photographic prints. The electronic data held on those items has historically been relatively small but as researchers have adopted digital devices as essential tools – ultra-high-resolution cameras, electronic microscopes, scanners and video and sound recorders – demand for storage at the museum has soared dramatically . Until recently, that was putting a huge strain on the museum’s storage systems and associated processes. Although it had a basic storage area network (SAN) fabric based on an IBM FAStT500 disk array and an IBM TotalStorage 3583 Tape Library, the available capacity was proving completely inadequate: a maximum of 4.2 terabytes (TB) of disk storage and 6TB of tape “ The SAN was absolutely maxed out,” says Gavin Malarky, senior infrastructure analyst at the museum. Not only was the ICT unit acutely aware of this, the users were too. They were being told that, if they wanted more space, they had to delete existing files. Unwilling to do so, for two or three years researchers simply went out and bought low-cost external hard drives and CD writers. The obvious dangers here were that locally held data was being stored on unreliable media and not being backed up. “Digital data needs to be treated as an asset every bit as valuable as specimens and books,” says Paul Richards, head of ICT at the museum. “ Because of digital acquisition, we didn’t know what the actual requirement was – it was hidden once people stopped coming to us.” Towards a petabyte To be cost effective, any replacement system also needed to offer different – and easily managed – tiers of storage . Much of the data the museum holds is accessed infrequently after an initial period of interest following initial publication. So, although there was a requirement for high-cost online disk capacity, there was an equally important need for near-line and offline storage. The solution, implemented with the help of storage systems integration partner Tectrade, came in the form of three IBM disk subsystems – a DS4300 based on high-quality, fast disks and two DS4100 models that use lower-spec and lower-cost SATA disks. That has enabled the museum to scale its data under management on disk to more than 50 terabytes. It has also upgraded its tape library to an IBM TS3584 system capable of holding 350TBs on high-speed LTO3 tapes. Currently, the system holds over 50TB on tape but it was chosen for its ease of expandability. “We can see the tape scale to a petabyte,” says Malarky. As important as these subsystems were, a critical overlay tool has added even greater value: IBM’s storage virtualisation appliance, the SAN Volume Controller (SVC). Scalability was key , says Malarky, and the SVC virtualises the storage environment, treating all devices as a single pool of storage . The museum simply plugs more disk systems into the SAN when required. “The benefit is that, if we want to add another 10TBs, we can get an IBM another DS4100 or buy disks elsewhere, sit them behind the SVC and, at the front end, it is all the same – simply a storage resource to the server,” he says. That frees skilled staff from repetitive storage management tasks . “The ease of management that virtualisation gives us made our lives a lot easier – flexibility and expandability within a single management console,” says Malarky. Updating to faster LTO3 tape drives has cut the back-up window dramatically. “We don’t talk about archiving data any more, we just move it from online to near-line,” explains Malarky. Back-up times have been cut by over 80%. The demand curve for storage will only get steeper, says Richards, as the museum starts holding more researchers’ videos and perhaps high-definition television used within exhibitions. “To meet those demands, we needed systems that would fit with what we might want to do further down the line.”
  • Problems Customer Faced: Soaring storage demand due to increased information retention requirements, and new digital data formats Inadequate data protection as locally held data was being stored on unreliable media and not being backed up Unable to adequately forecast future storage requirements ‘ Inability to share data from researchers across or even within departments Result Increased capacity-10x on disk / 50x on tape Simplified management and greater visibility to storage resources and needs Back-up times cut by over 80% Shared resource pool for users to improve overall access to information Background: (Key thoughts in bold) More than 28 million specimens in its zoology collection; roughly the same number of insects and other entomology specimens; 9 million in the palaeontology department; and over 5 million in the botany collection. And you can add to that almost 800,000 books and 20,000 photographic prints. The electronic data held on those items has historically been relatively small but as researchers have adopted digital devices as essential tools – ultra-high-resolution cameras, electronic microscopes, scanners and video and sound recorders – demand for storage at the museum has soared dramatically . Until recently, that was putting a huge strain on the museum’s storage systems and associated processes. Although it had a basic storage area network (SAN) fabric based on an IBM FAStT500 disk array and an IBM TotalStorage 3583 Tape Library, the available capacity was proving completely inadequate: a maximum of 4.2 terabytes (TB) of disk storage and 6TB of tape “ The SAN was absolutely maxed out,” says Gavin Malarky, senior infrastructure analyst at the museum. Not only was the ICT unit acutely aware of this, the users were too. They were being told that, if they wanted more space, they had to delete existing files. Unwilling to do so, for two or three years researchers simply went out and bought low-cost external hard drives and CD writers. The obvious dangers here were that locally held data was being stored on unreliable media and not being backed up. “Digital data needs to be treated as an asset every bit as valuable as specimens and books,” says Paul Richards, head of ICT at the museum. “ Because of digital acquisition, we didn’t know what the actual requirement was – it was hidden once people stopped coming to us.” Towards a petabyte To be cost effective, any replacement system also needed to offer different – and easily managed – tiers of storage . Much of the data the museum holds is accessed infrequently after an initial period of interest following initial publication. So, although there was a requirement for high-cost online disk capacity, there was an equally important need for near-line and offline storage. The solution, implemented with the help of storage systems integration partner Tectrade, came in the form of three IBM disk subsystems – a DS4300 based on high-quality, fast disks and two DS4100 models that use lower-spec and lower-cost SATA disks. That has enabled the museum to scale its data under management on disk to more than 50 terabytes. It has also upgraded its tape library to an IBM TS3584 system capable of holding 350TBs on high-speed LTO3 tapes. Currently, the system holds over 50TB on tape but it was chosen for its ease of expandability. “We can see the tape scale to a petabyte,” says Malarky. As important as these subsystems were, a critical overlay tool has added even greater value: IBM’s storage virtualisation appliance, the SAN Volume Controller (SVC). Scalability was key , says Malarky, and the SVC virtualises the storage environment, treating all devices as a single pool of storage . The museum simply plugs more disk systems into the SAN when required. “The benefit is that, if we want to add another 10TBs, we can get an IBM another DS4100 or buy disks elsewhere, sit them behind the SVC and, at the front end, it is all the same – simply a storage resource to the server,” he says. That frees skilled staff from repetitive storage management tasks . “The ease of management that virtualisation gives us made our lives a lot easier – flexibility and expandability within a single management console,” says Malarky. Updating to faster LTO3 tape drives has cut the back-up window dramatically. “We don’t talk about archiving data any more, we just move it from online to near-line,” explains Malarky. Back-up times have been cut by over 80%. The demand curve for storage will only get steeper, says Richards, as the museum starts holding more researchers’ videos and perhaps high-definition television used within exhibitions. “To meet those demands, we needed systems that would fit with what we might want to do further down the line.”
  • IBM is also using Cloud Computing in many of our own data centers and facilities – to support our own work as well as improving how we provide services to your customers. IBM's IT transformation continues: our own IT investments over the past 5 years have delivered a cumulative benefit yield of $4.1B Technology Incubation: IBM’s technology Adoption Program (TAP) supports innovators in IBM to make collaborative innovation faster, easier and more cost-effectively. With more than 92,000 early adopters in just the last 12 months- there are now more than 70 active ‘incubations’ and 10 new formalized technology projected developed. The IBM Research Compute Cloud (RC 2 ) is a self service, on demand IT delivery solution established in 2H07 in the U.S. and currently being deployed across the Research team worldwide. It was created to improve resource utilization and speed time-to-test of new technologies. It serves as a virtualized service environment, integrating existing assets and products based on SOA. RC 2 supports the full life cycle of a service delivery from offering creation through order placement, contract fulfillment, monitoring, reporting and billing, allowing a “zero touch” option requiring no involvement from administrators to execute selected business processes. The Deep Computing Capacity on Demand facility is leveraging a cloud design to provide an enterprise class utility computing solution for clients – who can tap into the IBM DCCoD centers at any time- by the hour, week, or multi-year. This center was able to improve access and reduce setup time from two weeks to two hours Cloud computing solution for STG platform testing for Enterprise Clients, SMBs, & ISVs increased benchmark testing capacity 50%,with no staffing increase. And the Cloud computing solution for IBM Learning Centers in Europe improved infrastructure utilization by 80%, and reduced staff by 30%. Transition Line: Clearly, innovation is in our DNA – and Cloud Computing is just one more example of how we are harvesting new technologies to change the way we do business – and to help you change the way you can do yours. We have a strong track record of bringing about structure to what some might consider ‘disruptive technologies’ – but they often bring about a whole new view for IT Delivery.
  • The TAP deployment team took an ideal internal environment for a cloud implementation. Reductions Hardware, labor and power savings reduced the annual cost of operation by 86.7% ($7.6M) - Hardware costs were reduced by 88.7% (In pre-cloud environment, 488 new servers were required to support 120 projects. In post-cloud environment, 55 new servers were required to support 120 projects) - Labor costs were reduced by 80.7% (In pre-cloud environment, 15 admins were required. In post-cloud environment, 2 admins were required) - Power costs were reduced by 88.8% due to the reduction in number of required servers Other costs - Software costs remained relatively flat in the pre-cloud and post-cloud environments (This was a simple virtualization scenario. No application virtualization was involved in the deployment) - 1-time Deployment costs consisted of software (TPM, ITM, RedHat) and services. (~$657,000) The reduction in operations costs freed capital to invest in new development, make acquisitions, reduce debt, or pay dividends. Evaluation Metrics: Payback period: The initial investment ($657,000 deployment cost) will be recouped in 72 days NPV: The NPV of $7.5M shows that the discounted inflows over the life of the investment exceed the required investment IRR: The IRR shows that the rate of return over a 3-year period is 499% ROI: The ROI shows that this deployment yielded more than an adequate return on invested assets The numbers here may seem unbelievably good but external research has shown a 1:7 compression ratio with cloud technology. A 1:7 compression means the technology can compress your existing cost down to a 7 th , roughly 15% of the pre-cloud cost, consistent with the 80-90% reduction that we see in this case study. Definitions of a few metrics used in quick investment appraisals: Savings per year Payback = cost / cash flow = the time that it takes for the gain to repay the sum of the original investment (generally 2-3 years) NPV = the magnitude of return on the investment, increase in wealth (greater than 0 is good) IRR = proxy for the rate of growth or the expected return (greater than the yield of an alternative investment, generally the cost of capital) ROI = (gain – cost) / cost Notes: Negative NPV can be good if it’s less negative than alternatives (e.g. cost center) IRR undervalues cash flows that occur late in a project's life (e.g. revenue generated by renting spare capacity) ROI can be easily manipulated, depending on what you include in gain and cost Transition line : Now that we have the big picture, let’s take a deep dive into their financial statement and see how they did it.
  • FDA: Each year hospital costs due to preventable in-hospital and outpatient adverse drug reactions range from $4.0 billion to $4.8 billion. (source: http://www.fda.gov/ope/econanal.htm) Adverse Drug Events (ADE) caused by Vioxx: “ A study led by Graham (Dr. David Graham, the associate director for science and medicine at the FDA’s own Office of Drug Safety ) that was concluded in the summer of 2004 found that Vioxx was responsible for an estimated 38,000 excess heart attacks and sudden cardiac deaths. In his testimony, Graham stated that this was a conservative estimate. He said that “a more realistic and likely range of estimates for the number of excess cases in the US” was between 88,000 and 139,000. “Of these,” he added, “30-40 percent probably died. For the survivors, their lives were changed forever.” Reasons for ADR: Incomplete Testing Inadequate Reporting Inadequate Warnings Investigator Fraud Quality Control, Safety, Manufacturing (source: http://www.pharmaconsultantinc.com/downloads/liability_chapter.pdf) List of drugs with ADR, which are recalled: * Accutane * Advair * Androstenedione * Avandia * Bextra * CellCept * Chantix * Cipro * Crestor * Digitek * Duragesic Patch * Floxin * Fluoroquinolone * Fosamax * Heparin * Levaquin * Lipitor * MRI Dye * Neurontin * Noroxin * Ortho Evra * Paxil - Target: anitdepressant, ADR: suicide * Permax * Plavix * Procrit * Risperdal * Serevent * Seroquel * Serzone * Trasylol * Viagra * Vioxx - Target: arthritis & migraine, ADR: casuses heart attack and stroke * Xolair * Zelnorm * Zicam * Zyprexa
  • (PAUSE…engage the client with a question to start a conversation before moving forward) What smart things are happening in your industry today? Where are the greatest opportunities for progress?

Cloud Computing - What's all the hype? Cloud Computing - What's all the hype? Presentation Transcript

  • Cloud Computing - What's all the hype? Bruce E. Otte IBM Cloud Computing Marketing
  • The world is getting smarter – more instrumented, interconnected, intelligent. Smart traffic systems Smart water management Smart energy grids Smart healthcare Smart food systems Intelligent oil field technologies Smart regions Smart weather Smart countries Smart supply chains Smart cities Smart retail
  • By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion . 2005 2006 2007 2008 2009 2010 2011 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Exabytes RFID, Digital TV, MP3 players, Digital cameras, Camera phones, VoIP, Medical imaging, Laptops, smart meters, multi-player games, Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters, Telematics , Peer - to - peer, Email, Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances 10x growth in five years Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.
  • A crisis of complexity. The need for progress is clear. Steady CAPEX spend Global Annual Server Spending (IDC) Source: IBM Corporate Strategy analysis of IDC data Uncontrolled management and energy costs To make progress, delivery organizations must address the server, storage and network operating cost problem, not just CAPEX $0B 50 100 150 200 250 300 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 New system spend Management and admin costs Power and cooling costs
  • CEOs want to make their businesses smarter 48% say people skills have the greatest impact to their organization Technology has greatest impact on the business (35%) after market forces and people skills 71% plan to focus on collaboration and partnerships 69% are making extensive changes to business models and processes 75% say they can strengthen their competitive advantage by better managing and using information Source: 2009 IBM CEO Survey Turn Information into Insights Drive Effectiveness and Efficiency Increase Agility Connect & Empower People
  • CIOs’ visions of enhancing competitiveness include business oriented elements Six Most Important Visionary Plan Elements Source: IBM Global CIO Study 2009; n = 2345 High growth markets Low growth markets Interviewed CIOs could select as many as they wanted 63% 64% 66% 70% 76% 80% 71% 73% 71% 73% 77% 86% Self-Service Portals Customer and Partner Collaboration Mobility Solutions Risk Management and Compliance Virtualization Business Intelligence and Analytics
  • Yet, implementation challenges impede implementing a more flexible infrastructure: How do I address the immediate pressure to cut costs, reduce risk and complexity? A lot of buzz on cloud, where is the best place to start and how? My workloads are becoming more complex, how do I make the right choice relative to the deployment environment? How do I innovate to take advantage of new opportunities?
  • The Emergence of a New Model of Computing
    • Centralized Computing: 1960s -
      • Optimized for sharing, industrial strength, systems management, . . .
      • Managed by central IT organization
      • Back office applications involving transactions, shared data bases, . . .
      • Mainframes, supercomputers, minicomputers, . . .
    • Client-Server: 1980s -
      • Optimized for low costs, simplicity, flexibility, . . . .
      • Distributed management across multiple departments and organizations
      • Large numbers of PC based applications
      • PC-based clients and servers, Unix, Linux, . . . .
    • Cloud: 2000s -
      • Optimized for massive scalability, distribution of services, . . . .
      • Managed by central IT organization, hybrid acquisition models
      • Supports huge numbers of mobile devices and sensors
      • Internet-based architecture
  • An example of the 3 waves in action – C onvergence of available technologies and a demanding marketplace Branch Banking Back-office automation and secure data processing ATM Secure online transaction processing with distributed computing e-business Connect existing IT infrastructure with the Web Cloud An open, standards-based, dynamic infrastructure 1960s 1970s 1990s 2010
  • Cloud Computing is a Significant Opportunity Many CIOs understand that cloud will transform the way companies operate
      • An IBM global CIO study in 2009 surveyed 2,598 CIOs in 78 countries and 19 industries
      • More than one-third cited cloud as the most important visionary initiative
    With an IT strategy that embraces cloud, CIOs can better satisfy their customers
      • Improves visibility of IT within the enterprise
      • IT is more responsive to the business areas with simpler and cheaper computing model
      • Increases range of services, applications and capabilities available to clients
    Source: IBM Global CIO Study 2009; n = 2598
    • “ Cloud” is a new consumption and delivery model inspired by consumer Internet services.
    • Cloud enables :
      • Self-service
      • Sourcing options
      • Economies-of-scale
    • “ Cloud” represents:
      • The Industrialization of Delivery for IT supported Services
    • Multiple Types of Clouds will co-exist:
      • Private, Public and Hybrid
      • Workload and / or Programming Model Specific
    Cloud: Consumption & Delivery Models Optimized by Workload Cloud Services Cloud Computing Model
  • Enterprise Today there are three primary delivery models that companies are implementing for cloud
    • Public Cloud
    • IT activities/functions are provided “as a service,” over the Internet
    • Key features:
      • Scalability
      • Automatic/rapid provisioning
      • Standardized offerings
      • Consumption-based pricing.
      • Multi-tenancy
    Traditional Enterprise IT
    • Private Cloud
    • IT activities/functions are provided “as a service,” over an intranet, within the enterprise and behind the firewall
    • Key features include:
      • Scalability
      • Automatic/rapid provisioning
      • Chargeback ability
      • Widespread virtualization
    Hybrid Cloud Internal and external service delivery methods are integrated, with activities/functions allocated to based on security requirements, criticality, architecture and other established policies. Private Cloud Public Clouds Hybrid Cloud Source: IBM Market Insights, Cloud Computing Research , July 2009.
  • Is cloud computing really new? Yes, and no.
    • Cloud computing is a new consumption and delivery model inspired by consumer Internet services. Cloud computing exhibits the following 5 key characteristics:
      • On-demand self-service
      • Ubiquitous network access
      • Location independent resource pooling
      • Rapid elasticity
      • Pay per use
    • While the technology is not new, the end user focus of self-service, self-management leveraging these technologies is new..
    Business Services IT Services Virtualization Service Automation & SOA Usage Tracking Web 2.0 End User Focused
  • Cost savings and faster time to value are the leading reasons why companies consider cloud Respondents could rate multiple drivers items 50% 72% 77% Improve reliability Faster time to value Reduce costs Improve system availability Pay only for what we use Hardware savings Software licenses savings Lower labor and IT support costs Lower outside maintenance costs Take advantage of latest functionality Simplify updating/upgrading Speed deployment Scale IT resources to meet needs • • • • Improve system reliability • • • To what degree would each of these factors induce you to acquire public cloud services? Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090
  • Infrastructure, Labor, and Re-Engineering IT Business and Delivery Processes Drive Cloud Economics Virtualized environments only get benefits of scale if they are highly utilized Drives lower capital requirements More complexity = less automation possible = people needed Take repeatable tasks and automate Labor Leverage Infrastructure Leverage Clients who can “serve themselves” require less support and get services Self Service Automation of Management Standardization of Workloads Virtualization of Hardware Utilization of Infrastructure
  • Six Steps to Getting Started with Cloud Computing IT Roadmap Workload Assessment Enterprise & Cloud Mix Implementation ROI Architecture Systems Storage Network Computing Infrastructure Platform & Applications Email Bus Apps BPM Sys Mgmt Info Mgmt Web Svr E-Mail, Collaboration Software Development Test and Pre-Production Data Intensive Processing Database ERP Enterprise Private Public Hybrid Trad IT Capital Private Cloud Hybrid Cloud Time Trad IT Rent Financial Workload Custom Standard 1 Service Definition Tools Service Publishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics Service Planning Role Based Access OSS BSS Infrastructure Platform Software End Users, Operators Service Catalog Operational Console Cloud Services Cloud Platform 2 3 4 5 6
  • Create a Roadmap for Cloud as Part of the Existing IT Optimization Strategy Simplified Shared Dynamic Consolidate Virtualize Automate
      • Reduce infrastructure complexity
      • Reduce staffing requirements
      • Improve business resilience (manage fewer things better)
      • Improve operational costs/reduce total cost of ownership
      • Remove physical resource boundaries
      • Increase hardware utilization
      • Allocate less than physical boundary
      • Reduce hardware costs
      • Simplify deployments
      • Standardize services
      • Dramatically reduce deployment cycles
      • Gain granular service metering and billing
      • Obtain massive scalability
      • Autonomic
      • Acquire flexible delivery, enabling new processes and services
    IT Roadmap 1
  • An Architectural Model that includes standards-based Interfaces is key Service Creation & Deployment Service Request & Operations Service Provider Service Definition Tools Service Publishing Tools Service Fulfillment & Configuration Tools Service Reporting & Analytics Service Planning Role-based Access End Users, Operators Service Catalog Operational Console Cloud Services Cloud Platform Architecture Operational Support Systems (OSS) Business Support Systems (BSS) Infrastructure Services Software Platform Services Application, Process and Information Services Standards Based Interfaces Standards Based Interfaces Standards Based Interfaces 2
  • The Common Cloud Platform Common Cloud Management Platform Security & Resiliency Cloud Service Offerings Service Business Manager Service Operations Manager “ Common Cloud Service Platform - PaaS” Unified service management driving delivery economics
    • Emerging and existing programming models
    • Hybrid Environments
    Architecture Service Delivery Portal BSS – Business Support Services OSS – Operational Support Services Reporting & Analytics Metering Service Development Portal Service Provider Portal API User Interface API Virtualized Infrastructure – Server, Storage, Network Loosely Coupled Workloads Analytics Workloads Storage/Data Integration Workloads Transactional Workloads PaaS Tooling – Integrated Developer and Administrator Tools, BSS plugin - PaaS specifc user roles OSS plugin - Service Templates, Management Plans 2
  • Operational and Business Support Services Architecture 2
  • Cloud Standards
    • Cloud platforms are diverse; open standards are critical
    • The Open Cloud Manifesto outlines standards principles:
      • Existing standards should be reused
      • All standards efforts should be based on customer requirements
      • Standards development efforts should stay coordinated
    • IBM has initiated a community-based effort to collect customer requirements
      • First draft completed 8/2009
      • Broad industry participation/interest (over 800 participants with 30+ contributors)
    • IBM is working with standards organizations to drive new standards
      • Virtualization
      • Security
      • Common interfaces (to ensure flexibility in moving applications and data)
      • Management
    Architecture Standards Taxonomy Types of standards SaaS PaaS IaaS Enterprise Across Vendors within a cloud Cross - Cloud Within an Enterprise Cloud to Enterprise 2
  • Client Migration will be Workload Driven
    • Workload characteristics determine standardization
      • For example, transaction and information management processes may present challenges and risks
      • Other workloads, such as collaboration and development and test, will move faster and can provide rapid return-on-investment and productivity gains.
    • For most enterprises, the best opportunities will be clear
    • Web infrastructure applications
    • Collaborative infrastructure
    • Development and test
    • High Performance Computing
    Test for Standardization Examine for Risk
    • Database
    • Transaction processing
    • ERP workloads
    • Highly regulated workloads
    • High volume, low cost analytics
    • Collaborative Business Networks
    • Industry scale “smart” applications
    Explore New Workloads Workload 3
  • Workload Characteristics for Cloud Delivery Push factors Fluctuating demand Highly standardized applications Modular, independent applications Unacceptably high costs Higher propensity for cloud Lower propensity for cloud Barriers Data privacy or regulatory and compliance issues High level of Internal control required Accessibility and reliability are a concern Cost is not a concern Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 Workload 3
  • Clients told us their implementation strategies — public or private Cloud, present or future — for 25 specific workloads
    • Analytics
    • Data mining, text mining, or other analytics
    • Data warehouses or data marts
    • Transactional databases
    • Business Services
    • CRM or Sales Force Automation
    • e-mail
    • ERP applications
    • Industry-specific applications
    • Collaboration
    • Audio/video/web conferencing
    • Unified communications
    • VoIP infrastructure
    • Desktop and devices
    • Desktop
    • Service/help desk
    • Development and test
    • Development environment
    • Test environment
    • Infrastructure
    • Application servers
    • Application streaming
    • Business continuity/disaster recovery
    • Data archiving
    • Data backup
    • Data center network capacity
    • Security
    • Servers
    • Storage
    • Training infrastructure
    • WAN capacity
    Source: IBM Market Insights, Cloud Computing Research , July 2009. Business Services Collaboration Analytics Desktop and Devices Infrastructure Development and Test
  • Public and Private Clouds Decide the Right Mix for the Enterprise Cloud Computing Cloud Computing 05/21/10 Fixed Traditional IT Managed Operations Public Cloud Services Private Cloud Services Financial Models Delivery Models Off Premises Shared Variable Off Premises Dedicated On Premises Utility Mixed On Premises Proprietary Software Images Standard Mixed Shared Services Examples 4 Enterprise / Cloud Mix
  • Public and Private Clouds are Preferred for Different Workloads Top private workloads Database- and application-oriented workloads emerge as most appropriate
    • Data mining, text mining, or other analytics
    • Security
    • Data warehouses or data marts
    • Business continuity and disaster recovery
    • Test environment infrastructure
    • Long-term data archiving/preservation
    • Transactional databases
    • Industry-specific applications
    • ERP applications
    Top public workloads Infrastructure workloads emerge as most appropriate
    • Audio/video/Web conferencing
    • Service help desk
    • Infrastructure for training and demonstration
    • WAN capacity, VOIP Infrastructure
    • Desktop
    • Test environment infrastructure
    • Storage
    • Data center network capacity
    • Server
    Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 4 Enterprise / Cloud Mix
  • Clients interviewed significantly prefer private clouds over public or hybrid clouds Overall, how appealing are the public, private and hybrid delivery models for your company? 64% 30% Public +113% 64% 38% Hybrid Private +68% Private "Very appealing" or "appealing" "Very appealing" or "appealing" Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 However, adoption of Public Clouds is expected to grow by 26% CAGR between now and 2013* *IDC eXchange, IDC’s New IT Cloud Services Forecast: 2009-2013, p=543, Oct 5, 2009 4 Enterprise / Cloud Mix
  • Cloud Computing can Provide Dramatic, Measurable Business Value VIRTUALIZATION AUTOMATION STANDARDIZATION Legacy environments Cloud-enabled enterprise Cloud accelerates business value across a wide variety of domains ROI Cloud attributes From Server/storage virtualization 10–20% Utilization of infrastructure 10–20% Self-service None Automated provisioning Months Change and release management Months Service catalog ordering Months Metering/billing Fixed cost model Payback period for new services Years To 70–90% 70–90% Unlimited Days/hours Minutes Days/hours Granular Months 5
  • What to Measure and Why is Key… Reduce Costs Increase Speed Accelerate Growth Analytics Collaboration Development & Test Desktop & Devices Infrastructure Storage Infrastructure Compute Business Services Serve new customers faster Better understand customer needs Optimize business processes Improve business performance Address new customers and markets Improve workforce productivity Improve customer satisfaction Foster innovation Response to change faster Reduce operating expenses Reduce infrastructure costs Grow revenue Improve Reliability ROI 5
  • Roadmap to a Private Cloud Implementation Automate
    • Reduce infrastructure complexity
    • Reduce staffing requirements
    • Improve business resilience (manage fewer things better)
    • Improve operational costs/reduce TCO
    • Easy to access, easy to use Service Catalog
    • Dramatically reduce deployment cycles
    • Granular service metering and billing
    • Drive standardization
    • Remove physical resource boundaries
    • Increased hardware utilization
    • Allocate less than physical boundary
    • Reduce hardware costs
    • Simplify deployments
    • Server consolidation
    • Storage consolidation
    • Consolidation efficiency study
    • VMware server virtualization
    • Microsoft server virtualization
    • storage virtualization
    • PowerVM implementation
    Consolidate Simplify Virtualize Cloud Platform Stack Infrastructure as a Service Information Management Services Internet Data Center
    • Service Oriented
    • Massively Scalable
    • Dynamic Service Management
    • Multi-tenancy
    • Secure
    • Self-healing
    • Flexible
    Assess Current Services Current Services Implementation Service Provisioning 6
  • Concerns about data security and privacy are the primary barriers to public cloud adoption Respondents could select multiple items 69% 54% 53% 52% 47% Security/privacy of company data Service quality/performance Doubts about true cost savings Insufficient responsiveness over network Difficulty integrating with in-house IT What, if anything, do you perceive as actual or potential barriers to acquiring public cloud services? Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090
  • When deciding the right mix, Security is a key element, and remains the top concern for cloud adoption Of enterprises consider security the #1 inhibitor to cloud adoptions 80% Of enterprises are concerned about the reliability of clouds 48% Of respondents are concerned with cloud interfering with their ability to comply with regulations 33% Source: Driving Profitable Growth Through Cloud Computing, IBM Study (conducted by Oliver Wyman)  “ I prefer internal cloud to IaaS. When the service is kept internally , I am more comfortable with the security that it offers.” “ Security is the biggest concern . I don’t worry much about the other “-ities” – reliability, availability, etc.” “ How can we be assured that our data will not be leaked and that the vendors have the technology and the governance to control its employees from stealing data?”
  • IBM Cloud Security Guidance
    • Best practice guidance for implementing cloud security
    • Implement and maintain a security program
    • Build and maintain a secure cloud infrastructure
    • Confidential data protection
    • Implement strong access and identity control
    • Application and environment provisioning
    • Implement a governance and audit program
    • Implement a vulnerability management program
    • Environment testing and validation
    IBM RedPaper REDP-4614, Oct 2009 http://www.redbooks.ibm.com/abstracts/redp4614.html?Open
  • IBM has real clients, using real cloud services, that are achieving reduced complexity, lower costs and real business value
    • IBM clients around the world are using cloud to:
      • Quickly provision development and test environments
      • Reduce, and in some cases avoid, up-front infrastructure costs
      • Create new business models for IT consumption
      • Reduce the costs of storage
      • Enhance communication and collaboration
      • And more
    • Fixed base monthly price with no Capex, plus variable cost based on consumption
    • Solution provides more flexibility, better service, at lower overall cost
    • Increases standardization of test environments within FCC providing higher quality and beter service
    • Solution eliminates currency fluctuations and unknown cost of off-shoring
    The requirement placed on IT was to increase business flexilibility and ability make environment adaptations more quickly to allow business lines to implement new solutions faster to remain competitive. Simultaneously, the overall IT budget was being reduced, the biggest hits to capital invesment.
    • Canada's largest agricultural term lender. This organization's purpose is to enhance rural Canada by providing specialized and personalized financial services to farming operations, including family farms.
    Cloud computing helps Canada’s largest agricultural lender Smart Business Test Cloud Case Study
  • Cloud is helping Pike County Schools control IT costs
    • The district achieved cost savings of more than 60 percent over a full equipment refresh while providing extremely high levels of security and reliability
    “ We no longer worry about what hardware is in the school as much. We also no longer worry about the applications or processes that the schools are using because they are the same for everyone.” — Maritta Horne, chief information officer and director of technology, Pike County Schools
    • Pike County Schools, a school district serving more than 10,000 students, avoided the cost of replacing 1,400 workstations by deploying a virtual desktop solution on an IBM cloud
  • Cloud is helping Marist College provide key learning services quickly to regional primary schools and other universities
    • Open source services on Linux on System z
    • Supports a flexible billing model
    • Leverages seamless multi-tenancy with massive virtualization
    • Enables security and total isolation with EAL 5 certified LPAR
    • Tivoli automation makes services available in minutes where previously it took days or weeks
    “ The advantage of using a mainframe [for our desktop cloud] is tremendous.” -Bill Thirsk, CIO Marist College Marist College provides learning management services to regional primary schools and other universities in addition to its own campuses. The desktop cloud solution deployed offers an extra layer of security since college data is not stored on local machines or laptops that are easily compromised. The solution runs 630 virtual servers on a single System z maximizing Marist’s limited 2000 sq ft of data center space
  • Cloud is saving the a UK Natural History museum significant money and improving overall access and sharing of information
    • “ The ease of management that virtualisation gives us made our lives a lot easier . . .”
    • — Gavin Malarky, Senior Infrastructure Analyst
    • Increased capacity-10x on disk / 50x on tape
    • Simplified management and greater visibility to storage resources and needs
    • Back-up times cut by over 80%
    • Shared resource pool for users to improve overall access to information
    • 28 million specimens in zoology
    • 28 million insects and entomology
    • 9 million in palaeontology
    • 5 million in botany
    • 800,000 books and 20,000 photographic prints
    • Ultra-high resolution cameras, electronic microscopes, scanners, video, audio….the demand for digital storage has soared dramatically
  • New levels of collaboration are achieved faster, and at significantly lower cost
    • Using LotusLive Files to create a central place to store and share information with external audiences (e.g., Statement of Work, project plan, presentations) for quick sharing, version control, and online meetings to cut travel and speed up collaboration.
    -Saved 5-10 working days on a typical 8-week project, increasing productivity by 25% -Saved an estimated 20% on total project costs (including travel) -Reduced unnecessary e-mail communication -Completed multiple projects with external audiences (worked across firewalls)
    • A social networking consultancy operating throughout the UK with strategic relationships with organizations in mainland Europe and USA
    • Need to reduce travel costs, eliminate time spent on searching email for files, version control problems, and all withno budget or IT resources to implement new collaboration infrastructure
  • IT transformation includes Cloud Computing within IBM. Yielding a cumulative benefit to IBM in excess of $4B Self-service, on demand IT delivery solution for 3,000 IBM researchers across 8 countries IBM Technology Adoption Program (TAP) Saving IBM over $2.5M per year Enterprise class utility computing solution for clients Systems platform testing for Enterprise Clients, SMBs, & ISVs Cloud computing solution for IBM Learning Centers in Europe Benchmark Centers IBM Computing on Demand Common Location Project
  • The IBM Research Computing Cloud (RC2) is a living lab to advance Research strategies. India Zurich
    • Provides self service “on demand” delivery solution for research computing resources
      • Zero touch support for the full life cycle of service delivery
        • IT order creation
        • Approval process
        • E-mail notification
        • Automated provisioning and de-provisioning
        • Monitoring and automated change management
    Research Compute Cloud (RC2) Watson 1 2
  • Business Case Results : IBM TAP Greenfield Cloud Deployment.
    • Business Case Results
    • Annual savings: $3.3M (84%)
    • $3.9M to $0.6M
    • Payback Period: 73 days
    • Net Present Value (NPV): $7.5M
    • Internal Rate of Return (IRR): 496%
    • Return On Investment (ROI): 1039%
    Current IT Spend Strategic Change Capacity Hardware, labor & power savings reduced annual cost of operation by 83.8% Hardware Costs ( - 88.7%) Labor Costs ( - 80.7%) 100% Without Cloud With Cloud Deployment (1-time) Note: 3-Year Depreciation Period with 10% Discount Rate Hardware Costs ( annualized ) New Development Liberated funding for new development, transformation investment or direct saving Labor Costs ( Operations and Maintenance ) Power Costs (88.8%) Power Costs Software Costs Software Costs
  • What does the future of cloud computing look like…. Platform/Application/Service: A Mobile Cloud for BoP Applications
    • Kiosk-operator gathers local information
    • from various sources:
    • Makes phone calls to get train schedule
    • Gets movie list for today
    • Gets blackout timings from electricity office
    • Gets weather information through internet
    • Gets visitor list (doctors, etc.) by officials from panchayat
    Kiosk-operator uploads information through a phone Govt. Voice sites organized in a distributed nation-wide cloud Villagers call the VoiceSite to get local as well as district, state and national level information. Service delivery to villagers through (mobile) phones by a voice interface Government officials enters district, state and national level information Spoken Web
  • Application/Service Cloud: B2B Collaboration for an Asian Department Store
    • Business benefits:
    • Enables suppliers to operate business independently w/ lower cost w/o IT operations
    • Provides dept store with common order and inventory mgmt across suppliers
    • Allows ISVs to join w/ core knowledge in the app w/o worrying about scalability and security
    • Solution:
    • A retail B2B solution on a low cost, scalable & secure platform ( >2000 suppliers so far)
    • Cloud platform with scalability, security, process monitoring dashboard, data transmission
    • ISV’s Retail B2B app for biz info exchange, order & inv. mgmt, sales data analysis
    • Challenge:
    • Thousands of suppliers need efficient operation & effective collaboration with a department store
    Client Clients 2000 of Retail Group’s suppliers Ind Service Vendor E-Future Client Rel’n Owner Large Int’l Retail Group Operator/Composer IBM Cloud Platform Client Client Managed Remotely
  • Extending Cloud Services with IBM Research: Clinical Trials Cloud Improving the efficiency, outcomes, analysis and sharing of clinical trials CRO (Clinical Research Org) Pharma FDA Data Clinical Institutions Accept Approval Submit results Approve trial Request patient Clinical Institution/ Patients Pharma analyses CRO.. Regulators ( FDA,..) Clinical trials cloud Access results Current Process of Phase 3 and 4 Trials A Clinical Trial Cloud
    • Hard to recruit a cohort of patients with sufficient statistical power
    • Data is not pooled between trials resulting in contradictory Phase 3 trials, and withdrawals after Phase 4 Surveillance
    • “ Loss” of great amount of data, and delay in the search for life-saving cures
    • Shorter, less expensive and more effective clinical trials
    • Sold to the CROs, licensed from Clinical institutions (for whom trials highly profitable), possible royalties from Pharmas
    • All constituents can innovate and share while competing
    • Easy monitoring of the processes
    • Reuse of patient, data and results for new studies
    • Easy to monitor ADE and compare drugs
    • Allow for comparative study of drugs
    • Easier collaboration with CRO and Pharma
    • Inefficient, slow, expensive
    • “ 38,000 heart attacks and deaths from Vioxx”
    • Missed opportunity to collaborate between constituents
    data Ingestion
  • In Summary … there is opportunity in the shift to a smarter planet.
    • Growth of instrumentation, interconnection and intelligence in the world will drive the emergence of IT and business services ... and the requirement for service management systems.
    • New IT consumption and delivery models are very compelling for some workloads today – and will position your enterprise for the future.
    • .
  • What smart things are happening in your industry and company today? Where are the greatest opportunities for progress?