[Cloud Summit 2010] Cezar Taurion - IBM

Cezar Taurion, Gerente de Novas Tecnologias, IBM Brasil Agosto, 2010 Cloud Computing 2.0 Da curiosidade para o mundo real Cezar Taurion Gerente de Novas Tecnologias Grupo de Estudos e Pesquisas em Cloud Computing 1 IM AR © 2010 IBM Corporation

Cloud Computing – Widespread Awareness Source: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud” 2 IM AR © 2010 IBM Corporation IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

What is Cloud computing? A new computing model where User 1 IT infrastructure, tools and capabilities are delivered as a Internet Database & Storage technologies Scalability scalable service to customers using internet technologies. User 2 It also depends on who you ask… Applications & platform User 3 What is the cloud? Current pain points A new way of using resources that reduces the number of systems in my Need to drive business results and transformation in a CxO / LoB portfolio and virtualizes my infrastructure rapidly changing environment. CIO / Cloud computing helps me reduce my capital costs by not having to buy and Need to reduce costs and improve service delivery IT Manager maintain complex systems inhouse. A way to quickly get the systems and configuration I want to test and build my Limited funds and tough to get spending approval on Developers applications development tools Need to achieving work objectives with limited resources End-User Use what I need without having to deal with IT department due to cost-cutting Difficult to make my customers switch from existing tools Cloud Services Provider/ISV Changes my revenue model and helps me get new business due to high transition costs 3 IM AR © 2010 IBM Corporation

Cloud computing holds the promise of reducing IT operating costs… which means, clients can do more with less VIRTUALIZATION + STANDARDIZATION + AUTOMATION = Reduced Cost ….leverages virtualization, standardization and automation to free up operational budget for new investment Capability From To Server/Storage Utilization 10-20% Cloud is a synergistic fusion which 70-90% accelerates business value across a Self service None wide variety of domains. Unlimited Test Provisioning Weeks Minutes Change Management Months Days/Hours Release Management Weeks Minutes Metering/Billing Fixed cost model Granular Payback period for new services Years Months Legacy environments Cloud enabled enterprise 4 IM AR © 2010 IBM Corporation

Beyond infra-as-a-service: The layers of IT-as-a -Service Data Center Servers Networking Storage Fabric Shared virtualized, dynamic provisioning Infrastructure as a Service 5 IM AR © 2010 IBM Corporation

Beyond infra-as-a-service: The layers of IT-as-a -Service Middleware Web 2.0 Application Java High Volume Runtime Runtime Transactions Development Database Tooling Platform as a Service Data Center Servers Networking Storage Fabric Shared virtualized, dynamic provisioning Infrastructure as a Service 6 IM AR © 2010 IBM Corporation

Beyond infra-as-a-service: The layers of IT-as-a -Service Collaboration CRM/ERP/HR Business Industry Processes Applications Software as a Service Middleware Web 2.0 Application Java High Volume Runtime Runtime Transactions Development Database Tooling Platform as a Service Data Center Servers Networking Storage Fabric Shared virtualized, dynamic provisioning Infrastructure as a Service 7 IM AR © 2010 IBM Corporation

A cloud computing primer – your 60 second guide A new model of IT Key ingredients: delivery and •elasticity Start consumption… …inspired by internet •PAYG services in the •on-demand self-service consumer space Analogies - electricity Evolutionary, not A “confluence of generation revolutionary – time technologies” – and The sharing, hosting, ASP virtualization, SOA, Model-T Ford multi-tennancy Variants – public, Get to Near-term adoption private, hybrid, know overstated, long-term community, ? the impact underestimated – Finish G-cloud add to Cloud all bets are off ! confusion stack Source: Market Insights 9 IM AR © 2010 IBM Corporation

What the Market is Telling Us There is universal interest in cloud computing across all industries and geographies • #1 reason to move to a public cloud is lower total cost of ownership Cost Take-out is • Top reasons for moving to a private cloud Key Driver include cost/resource efficiencies, as well as enhancing speed and flexibility • Security concerns are the top barrier to adoption of both public and private clouds Security is • Experience managing large outsourcing Top Concern engagements gives IBM the tools to manage customers’ top cloud concerns • Three distinctive end-user cloud buying patterns are emerging: exploratory, solution- Adoption Patterns are focused and transformational Emerging • There are reports that public clouds are being adopted faster than originally forecast Industries under the • In terms of market opportunity, Financial Services, Manufacturing, High Tech, Greatest Pressure Government and Retail are the top five Lead Interest in Cloud industries for cloud 10 IM AR © 2010 IBM Corporation

Cost savings and faster time to value are the leading reasons why companies consider cloud To what degree would each of these factors induce you to acquire public cloud services? Pay only for what we use • Hardware savings Reduce costs Software licenses savings • Lower labor and IT 77% support costs • Lower outside maintenance costs Take advantage of latest functionality • Faster time to value Simplify updating/upgrading • Speed deployment 72% • Scale IT resources to meet needs Improve Improve system reliability • reliability Improve system availability 50% Respondents could rate multiple drivers items Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090 11 IM AR © 2010 IBM Corporation

Top Challenges in Moving to a Public or Private Cloud Security concerns are the most important fear among IT decision-makers for both public and private cloud, especially public cloud. Other factors, such as - lack of technology maturity - lack of personnel skill sets - organizational challenges and - difficulty integrating with existing infrastructure will likely decrease over time as cloud success stories circulate. Percent of Respondents 12 IM AR © 2010 IBM Corporation Source: “Cloud Computing Attitudes”, IDC, April, 2010

We have identified the workloads that offer the most favorable entry points for each of the cloud delivery models Top public workloads Top private workloads Audio/video/Web conferencing Data mining, text mining, or other analytics Service help desk Security Infrastructure for training and demonstration Data warehouses or data marts WAN capacity Business continuity and disaster recovery VoIP infrastructure Test environment infrastructure Desktop Long-term data archiving/preservation Test environment infrastructure Transactional databases Storage Industry-specific applications Data center network capacity ERP applications Server Infrastructure workloads Database- and application-oriented emerge as most appropriate workloads emerge as most appropriate 15 IM AR Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090 © 2010 IBM Corporation

Software-as-a-Service (SaaS) is predicted to reach mainstream adoption in 2010, with Infrastructure-as-a-Service (IaaS) following after 2012 • However, IT leaders predict that IaaS will not account for the majority of infrastructure until at least 2015 17 IM AR © 2010 IBM Corporation

The IBM Cloud Delivery Models IBM Smart Business Services IBM Smart Business Services – Private Cloud - Standardized Services on Services, behind your firewall the IBM Cloud Delivery Model 1 Delivery Model 1 Delivery Model 2 Delivery Model 2 Delivery Model 3 Delivery Model 3 Delivery Model 4 Delivery Model 4 Delivery Model 5 Delivery Model 5 Enterprise Enterprise Enterprise Enterprise A User User User Data Center Data Center Enterprise B A B C Enterprise C User User Cloud scope Private Managed D E Private Cloud Hosted Private Cloud Cloud Shared Cloud Public Cloud IBM operated IBM owned and IBM owned and Services Services operated operated Operator Enterprise IBM Ownership / Enterprise IBM Location Revenue Time & materials, fixed price, etc. Time & materials, fixed model price, pay-as-you-go Pay-as-you-go Access Internal enterprise Access through network VPN, public internet Public internet Any enterprise/ Consumer Single enterprise Multiple enterprises user Dedicated (single Mixed1 Multi-tenant2 Asset use tenant) (There are a set of assets that could be flexibly allocated on a dedicated basis to an multiple enterprise depending on demand) 20 IM AR © 2010 IBM Corporation

LotusLive é um portfolio de serviços Web conferencing Colaboração E-Mail IBM LotusLive Meetings IBM LotusLive Engage IBM LotusLive Notes Integração de Web, audio e video provê serviços de compartilhamento de provê serviços de hospedagem de conferência arquivos, mensagens instantäneas, Notes e Domino redes sociais e gestão de atividades IBM LotusLive iNotes® IBM LotusLive Events IBM LotusLive Connections provê serviços de E-Mail com Auxilia a criação, hospedagem e provê serviços que permitem a integração de segurança, funcionalidades e gerenciamento de reuniões via OnLine suas redes de negocios com flexibilidade de acesso compartilhamento de arquivos, mensagens instantäneas e redes sociais www.LotusLive.com © 2010 IBM Corporation

Process IBM CloudBurst delivers … Features Benefits Self-service Portal Improve service Service Catalog Automation Software Pre-packed Automation Templates Reduce cost Built-in Virtualization Single Delivery, Installation & Price Implementation Services Easy Single Support © 2010 IBM Corporation

Self-Service Portal Users can request the services they need, when they need them, for the time they need them Eliminates manual processes for requesting resources …Improves customer satisfaction by accelerating service delivery 23 IM AR © 2010 IBM Corporation

Why Private Test Cloud ? Test Environments Key Features Benefits Reduce IT labor cost by 50% + - “Strategy”, planning, design, build and reduce labor for configuration, operations, implementation of the solution management and monitoring of the test environment Create self-service portal with catalog of 75% + Capital utilization improvement; services, calendaring, education and Significant license cost reduction optional chargeback Reduce Test Provisioning cycle times Integrated platform combining service from weeks to minutes request management, provisioning / de- Improve Quality- eliminate 30% + of all provisioning and change and configuration defects that come from faulty management configurations. 24 IM AR © 2010 IBM Corporation

Cloud computing is changing the application development landscape by giving the developers instant access to computing resources (hardware & software) Existing Application Development Future of Application Development Budget Due to high set-up and Since there are no approval infrastructure costs, capital expense, approval from developers may not management is required need approval from in most cases Development higher levels Development CIO team team Rent resources you Capital investment to buy will need from cloud hardware and software The development team The development team will assess in-house can provision computing resources to determine resources from the additional hardware cloud and change that and/or software to be as needed purchased. Provision instances required Computing resources Development team uses Development team only resources to build pays for the resources application. These that is actually uses resources sit idle when not in use Develop application Develop application Once application is developed, the Application is hosted in computing resources house and development are released and and maintenance, application is hosted on upgrades, and license the cloud. Customer costs are passed on Customer pays only pays for what they Support infrastructure and Customer pays customer regardless of Host application use pay for maintenances and on cloud or on for what they use fixed amount usage license premise 25 IM AR © 2010 IBM Corporation

Cloud Computing: Threat or opportunity for the CIO? CIOs are worried that Cloud will bring about disruptive change to IT Operations Line-of-business units going to “public cloud providers” for IT instead Disintermediation of the traditional IT team As some have said, it is “Client / Server all over again” CIOs need to embrace the change, not resist it Understand the benefits of cloud, as well as its drawbacks Understand the public cloud providers capabilities and include these services in IT offerings as it makes sense With an IT strategy that embraces Cloud, CIOs can better satisfy their customers Improves visibility of IT use, more responsive, simpler, cheaper Requires an overall strategic vision with pragmatic, evolutionary approach Increases range of services, applications, and capabilities available to clients 26 IM AR © 2010 IBM Corporation

We believe there are 6 key steps to a Cloud strategy Create IT Roadmap Assess Workload Determine the Cloud Delivery Model Standard E-Mail, Software Enterprise Collaboration Development Workload Hybrid Cloud Data Private Test and Pre- Cloud Intensive Production Processing Trad e Custom m Trad IT Private Public Ti IT Hybrid Database ERP Capital Rent Financial Define Business Value Establish Architecture Implement Cloud End Cloud Service Users, Services Planning Operators Platform & Computing Software Applications Infrastructure Service Role Definition Based Platform Bus Access Tools Email Service Apps Infrastructure Publishing Tools Sys Service BPM Systems Storage Service Cloud Platform Fulfillment & Mgmt Catalog Config Tools BSS Operational Service Console OSS Reporting & Info Web Analytics Mgmt Svr Network 27 IM AR © 2010 IBM Corporation

Which aspects of your IT portfolio have an affinity for Cloud? The Cloud-Affinity of existing applications depends on multiple factors: Compliance and cross-border issues, site-dependency (for performance or data size), app- specific benefits of migration, and the ease and cost of migration. Low Cloud affinity High Cloud affinity Analysis of IBM Americas’ internal applications* 28 IM AR © 2010 IBM Corporation

Which aspects of your IT portfolio have an affinity for Cloud? Cloud as a supplement where risk and migration cost may be too high – Database – Transaction processing – ERP workloads – Highly regulated workloads Can be standardized for cloud – Web infrastructure applications – Collaboration infrastructure – Development and test – High Performance Computing Made possible by cloud – High volume, low cost analytics – Collaborative Business Networks – Industry scale “smart” applications 29 29 IM AR © 2010 IBM Corporation

Business Case Results: IBM Technology Adopter’s Portal (IBM TAP) Without Cloud With Cloud IBM TAP is an ideal 100% New Liberated funding environment for private cloud Development for new development, implementation Software Costs trans-formation Strategic investment or Change By implementing virtualization direct saving Capacity and automated provisioning, Power Costs TAP was able to: Current Reduce from 488 servers to 55 IT Labor Costs Deployment (1x) Spend (Operations and Reduce from 15 admins to 2 Software Costs Maintenance) Reduce hardware, power, and Hardware, labor costs 83.8% Power Costs ( - 88.8%) labor & power Hardware Costs savings Clients who have already (annualized) Labor Costs ( - 80.7%) reduced annual adopted virtualization and cost of Hardware Costs operation automated provisioning will ( - 88.7%) by 83.8% see different results Note: 3-Year Depreciation Period with 10% Discount Rate 30 IM AR © 2010 IBM Corporation

A Cloud Enabled Data Center Providing a simplified, dynamic, automated data center solution enabling enterprises to deliver services faster and in a cost effective manner Dev & Test Zone QA Zone Production Zone • Application Lifecycle • Multi-tier • Multi-tier infrastructure Management infrastructure Virtual Web / App / Database • • Rational Jazz Service Request • Eclipse Open Source Networks & Operations Administrators Self-service UI Virtual Servers, Storage, Network Security Cloud Administration Service Management Tivoli Service Tivoli Provisioning Automation Mgr Manager Tivoli Monitoring: Tivoli Usage & Netcool Accounting Mgr WAN BSS OSS Virtual Machine Migration Data Center #1 Data Center #2 31 IM AR © 2010 IBM Corporation

Towards “cloud utopia”: Will an IT “asset lighter” model become increasingly common within the enterprise over the next few years? Cloud as a disrupter Cloud computing could potentially be the most seismic market disruption ever seen in the industry and might be the start of the move towards “everything-as-a-service”, culminating in the “IT asset-lite” enterprise as the de facto model Mostly internal IT Challenge to Cloud Hype 2012 + ? Build and manage most internal IT Elements of alternative IT “asset lighter” enterprise IT in-house The rise in outsourcing delivery (eg SaaS) in increasingly mainstream early phase Pre-mid 80’s Mid-90s 2000 2010 2015 Dot Com Boom “On Demand 1.0” Economic Pressures Application Service e-business as a A confluence of technologies Provider (ASP) model ill- viable model (virtualization, multi-tenancy, etc.), fated forerunner to cloud together with the economic downturn stimulates even more interest in cloud computing 33 IM AR © 2010 IBM Corporation

Cloud computing and the “Perfect IT Storm”: Prepare for a very bumpy ride in the new market norm Cloud is the 4th major era of computing Cloud computing will create massive disruptions and Brought about by a confluence of technologies substitutions to the traditional IT paradigm The way hardware and software markets work today (the Plus, radically changing buying decisions borne way they are bought, sold, packaged, marketed and the out of economic necessity ecosystem that supports them), will all look very different a decade from today – “even more for even less” – consumerization of IT Source: IBM Market Insights But, critically, net spending will be materially lower Global Spend on IT Products & Services Global IT spend peaked sometime between 2005 and 2008. IT spend will than in the current IT paradigm be on a downward trajectory over the next decade Network Era Caused by a bundling and shared use of previously user owned / managed IT IT’s New Norm 2010 + We are calling this the decomposition of previous PC / Client- Server Era IT value elements Mainframe Era 1960s 1980s 2000s 2020 34 IM AR © 2010 IBM Corporation

The realities of cloud versus hype Reality Today Cloud Hype Future Reality So, no “BIG BANG” ! Trad. SO Trad. SO Which is why we Everything in the cloud and all at once don’t see too many Internal IT plus 3rd party Sourcing mixture - for some things retain legacy, plus cracks…yet private/hybrid, public Source: Market Insights and Gartner Nevertheless, the evolutionary process to cloud is beginning to reach a critical phase 2008 – What is 2009 – How would our 2010 – Have budget – cloud? (education) org benefit (pilots) best investment areas ? Adoption and migration to end goals differ – Enterprise with lots of legacy / significant investment will be more cautious – Commonly accepted wisdom is LEs will adopt via a private cloud (DC 2.0) build-out first. Risk is they take a trial / incremental basis straight to public clouds. MI is calling this the private cloud bypass scenario. Intuitively, SMB, start-ups unlikely to pursue private cloud route Scope / role of internal IT changes – fewer staff, procure / orchestrate cloud SPs Source: Market Insights 35 IM AR © 2010 IBM Corporation

We are in the midst of a pronounced shift from client-server to cloud computing; as a result next generation data centers are likely to become services-oriented in the medium-term (3 to 5 years) Virtualization & Automation IT as a Service Via Public Clouds Via Private Networks Hosted Infrastructure Application as a service Users build/configure their own applications, Compute as a service Data Center but rely on managed infrastructure service Storage as a service Consolidation providers to deploy, run IT resources and maintain complex Desktop as a service Large scale, common, consolidated into infrastructure standard IT functions large data centers Business process as a (e.g., email, storage) Traditional service Data Center Client/server on premise model Timeline 36 IM AR © 2010 IBM Corporation

In summary… Cloud computing is a disruptive change to the way IT services are delivered Without a strategy, Cloud computing can be a threat to the CIO and IT team – IT services delivered over the Internet – Perceived cost gap between a cloud service and traditional IT – “The next client/server” With a strategy, Cloud computing is a huge opportunity for the CIO – Lower cost of delivery for some workloads – More responsive IT – Ability to optimize delivery using traditional, private cloud, and public cloud – Greater visibility in billing / chargeback to LOBs – Greater range of available services, applications, and capabilities 38 IM AR © 2010 IBM Corporation

IBM developerWorks: Your entry point Logon to IBM developerWorks to access IBM Development & Test Cloud and all IBM and Business Partner offerings to help you develop and enable cloud services. ibm.com/developerworks/spaces/cloud 39 IM AR © 2010 IBM Corporation

[Cloud Summit 2010] Cezar Taurion - IBM

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[Cloud Summit 2010] Cezar Taurion - IBM — Presentation Transcript