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  • 1. SmarterComputingThe Next Era of IT
  • 2. Three years ago IBM started describing theemergence of a Smarter Planet that is fuelinginnovation across industries.Every aspect of life is benefiting from the instrumentation,interconnection and the infusion of intelligence into the THIS SHIFT IS DRIVING DRAMATIC CHANGE IN INFORMATION TECHNOLOGY.world’s systems. Cities are getting smarter by transformingevery possible form of municipal infrastructure—traffic The way it’s accessed The way it’s applied The way it’s architectedsystems, water systems, public safety. Business processes Moving from attached work- Moving from core business Moving from heterogeneousare being transformed across every industry, from stations to individuals using applications focused on silos to integrated, flexible ubiquitous, mobile devices, productivity to the creation of infrastructures composed ofbanking to manufacturing to transportation. It’s changing creating massive volumes of real-time insight about and for workload-optimized systems.the way people live—delivering benefits from reduced information every day. individual users.congestion and pollution to new ways of communicatingand collaborating. The number of intercon- 15 petabytes of new Networking fiber band- nected devices has grown information is being width has increased from from 700 million in 2004 generated every day—80% 60 gigabytes per second to 5 billion in 2010. of which is unstructured. in 2005 to 300 gigabytes per second in 2011. The number of RFID tags 1 in 3 business leaders has grown from 1.3 billion frequently make decisions Computing power is in 2005 to 30 billion in 2010. based on information they projected to increase from don’t trust or don’t have. 10 million computations 300 million smart meters per second per $1,000 are projected to be deployed 1 in 2 business leaders say in 2005 to 10 trillion by 2015. they don’t have access computations per second to the information they need per $1,000 by 2015. to do their jobs.SMARTER COMPUTING: THE NEXT ERA OF IT 2
  • 3. On a Smarter Planet, successful companiesare taking a new approach to designing theirIT infrastructures to create new opportunities. Univerista di Bari reduced time to market for Create new markets in a fraction of the time fishermen and farmers with a cloud-based solution for real-time trading. Citigroup reduced provisioning times from 45 days Deliver new services more quickly to 20 minutes, improving their ability to deploy new banking services to clients. Acxiom improved capacity five-fold with no new Identify new trends before the competition floor space with a cloud-based model that improved customer retention and captured new business. The City of Norfolk, Virginia, improved storage performance by 40% and cut power consumption in Utilize IT resources more efficiently half, enabling it to deploy automated parking systems and police in-car video surveillance.SMARTER COMPUTING: THE NEXT ERA OF IT 3
  • 4. CloudBy thinking differently about computing, these leaders Optimized Virtuoushave addressed the IT conundrum—meeting exploding Cycle Systemsdemand for service on a flat budget.This conundrum traps IT organizations in a vicious cycle in whicha rigid infrastructure and lack of trusted data lead to reactivedecision-making. Meanwhile, attempts to overcome these challenges Big Datathrough additional IT investments result in a more sprawling and Reactivecostly infrastructure. Inflexibility of infrastructure limits integration across silosAlways Guessing and responsiveness to In exible IT customer demands.Decisions are made onincomplete data, big ideasare seen as risky and small Incomplete, Viciousdecisions aren’t optimized. Untrusted Data More Cost Cycle Every IT investment leads to more sprawl, which drives up infrastructure and management costs. Sprawling ITSMARTER COMPUTING: THE NEXT ERA OF IT 4
  • 5. Any enterprise can reverse the IT conundrum bydesigning, tuning and managing their IT infrastructurein this new era we call Smarter Computing.This new era is realized by designing IT as a system that incorporatesBig Data for better decision making, Optimized Systems for superioreconomics and Cloud to reinvent business processes and driveinnovation. Any enterprise can enter this new era by architectingan IT infrastructure that is designed for data, tuned to the task and Managedmanaged in the cloud. in the cloud Remove barriers to rapid delivery of new services and realize IT without boundariesTuned to the task Cloud to reinvent business processes and drive innovation.Remove financial barriers bydriving greater efficiency andperformance for each workload. Optimized Virtuous Cycle Systems Designed for data Remove barriers to harnessing all available information and unlock insights to make informed choices. Big DataSMARTER COMPUTING: THE NEXT ERA OF IT 5
  • 6. Smarter Computing is an IT infrastructure that is designedfor data, tuned to the task, and managed in the cloud.Designed for data: Big DataBig Data and information integration capabilities make it possible to including the Internet—without overwhelming enterprise data Better understand customer behaviorgenerate insight from vast quantities of data—fundamentally warehouses. One financial services company was able to improve and needschanging the way organizations use information. It means filtering fraud detection by comparing tens of millions of individual Optimize decisions in real timepetabytes of data per second from almost any connected device, transactions against 7 years worth of customer data in real time, Foster collaborative decision makinganalyzing the data while still in motion, deciding what, if any, data rather than 30 days—without overwhelming the data warehouse ormust be stored, and even using analytics tools to virtually integrate incurring prohibitive expense. IT departments integrating Big Data Continually assess enterprise riskthe data with data stored in traditional warehouses. Organizations with already-stored data can enable new forms of analysis such ascan integrate and analyze unstructured data wherever it lives— forecasting and predictive modeling.Tuned to the task: Optimized SystemsGenerating insights from the exploding volume, velocity and variety sophisticated workloads generated by a smarter planet require Reduce deployment times fromof data requires Optimized Systems specifically architected for that systems built with domain knowledge and understanding of months to daystask. To maximize performance and efficiency, these systems must workload characteristics, hardware with multi-core architectures Improve performance with utilizationbe optimized at every layer of the technology stack to exploit unique and advanced threading, and software tuned from the operating rates up to 90%processor, memory and storage characteristics. The increasingly- system through the middleware stack. Reduce floor space, power consumption, labor and total cost per workload by 55%Managed in the cloud: CloudOrganizations in every industry, regardless of size or geography, are of higher-value products and services is now mandatory to address Capture new value by creating newembracing Cloud computing as a way to reduce the complexity and formidable competition and escalating customer and shareholder offerings and servicescosts associated with traditional IT approaches. This reality is driven expectations. In the era of Smarter Computing, any enterprise can Deliver IT without boundaries byby three related shifts. Customer, employee and partner apply the transformative power of cloud computing to reinvent the breaking down silos and simplifyingexpectations are changing as self-service consumption of way they do business and improve economics. For instance, access to informationtechnology and services becomes the norm. The economics of cloud-based, real-time analytics can save over 50% in businesscomputing are changing as organizations access world-class insight-related costs, and collaborative business process services Improve speed and dexterity with newcomputing power, now available anytime, anywhere. Faster delivery can increase employee productivity by 25%. models of self service and deploymentSMARTER COMPUTING: THE NEXT ERA OF IT 6
  • 7. IBM can help any enterprise proceed with a strategic,staged approach. Each step leads to an IT infrastructurethat is integrated, automated and secured. IBM hasidentified projects that any client can initiate to start ajourney to realize Smarter Computing.To create advantage To create advantage To create advantage To gain real businessby serving customers by transforming the by reinventing your advantage, do allin new ways, start economics of your IT, business processes three things togetherwith Big Data and start with workload and improving the and design your IT asinformation Optimized Systems. speed of your service a holistic system.integration. delivery, start with Cloud.EXAMPLE PROJECTS EXAMPLE PROJECTS EXAMPLE PROJECTS EXAMPLE PROJECTS Data Compression and Workload Consolidation Systems Virtualization Enterprise IT and Data Governance De-duplication Storage Tiering and Consolidation Provisioning Automation Business Service Management Master Data ManagementSMARTER COMPUTING: THE NEXT ERA OF IT 7
  • 8. Smarter Computing addresses a criticalchallenge faced by IT organizations:increasing efficiency. 0%REDUCE: Application Total cost Server Database costs Power New Floor development per workload acquisition by 68% consumption application space 20 time by up by 55% cost by up by 80% deployment by up to 40% to 56% time by up to 90% to 85% 40 60 80 100SMARTER COMPUTING: THE NEXT ERA OF IT 8
  • 9. Enterprises across all industries are already undertakingthis transformation to drive breakthrough innovation.Smarter Computing capabilities can help you meet thechallenges and take advantage of the opportunities.FINANCIAL SERVICES CUSTOMS BROKERAGE SERVICES HEALTHCARE MEDIA & ENTERTAINMENT FINANCIAL SERVICESThe Central GHY International Call & Call Virginia Mac Guff reduced Visa enhancedDepository reduced server Holdings Commonwealth energy costs by information serviceCompany of management by consolidated 1,200 University reduced 66% and delivery whilePakistan saw a 90%, enabling computers to one cost per terabyte delivered a cloud- reducing total cost of98% improvement an IT infrastructure operating system by 50% while based solution for ownership, enablingin service level capable of track- image, realizing enabling anywhere, large animation- real-time fraudagreements with a ing cross-border 50% operational anytime access rendering projects detection on credit50% reduction in shipments in savings while to clinical for feature films. card transactions.time required to real time. meeting increased applications andsupport new lines customer demand. patient information.of business.SMARTER COMPUTING: THE NEXT ERA OF IT 9
  • 10. Smarter Computing transforms the University ofPittsburgh Medical Center’s IT system to overcomecost challenges and deliver better patient care. CASE STUDY An $8 billion global healthcare enterprise Project-Based Transformation Delivered innovation by with more than 50,000 employees Optimized workloads by consolidating across enabling investment in next- was challenged to lower the cost of its Power, x86 and System z environments— generation clinical systems IT infrastructure. reducing server volumes by up to 80% Over the last 5 years, UPMC has doubled its Implemented standard deployments and computing capacity while holding IT costs flat by virtualization across all environments embracing the Smarter Computing approach. Data center space has been converted to hospital space Implemented master data management to and the construction of a new $80 million data integrate patient data for electronic patient center was avoided. Because of its architected medical records approach to integrating, automating and securing Automated storage tiering, service provisioning Transformed IT for its IT infrastructure, UPMC can now invest in and centralized discovery to reduce management improved economics next-generation clinical systems. The Smart Room Implemented event correlation to predict and automatically provides the clinician with relevant, real-time patient information pulled from electronic eliminate service problems 2x Doubled its computing capacity medical records, including allergies, vital signs, test Adopted enterprise data governance processes results and medications that are due. These to ensure availability of trusted data $0 No increase in IT costs innovations are helping to improve the quality of Implemented an IT Architecture Board to the care that UPMC delivers to ensure better review new workload deployment requests Eliminated the patient outcomes. need for $80 million data centerSMARTER COMPUTING: THE NEXT ERA OF IT 10
  • 11. Why IBM for Smarter Computing? We’ve been a proven innovator for 100 years. operating systems, software programming tools, We’re extending our portfolio to address the biggest middleware, business intelligence applications and challenges in computer science. industry-specific software frameworks. More importantly, IBM can help any organization build on their existing Our approach is flexible and inclusive—there’s no capabilities and apply these principles—no forced need to rip and replace. rip-and-replace required. We have the experts and expertise required for Our clients benefit from these capabilities every day— transformation. and so does IBM. Take IBM’s newest data center inFor 100 years, IBM has been at or near the center of North Carolina’s Research Triangle Park, where moreevery major turning point in computer science—but than 40,000 sensors monitor equipment to improvewe haven’t remained in the forefront by clinging to the energy efficiency and utilization, reducing capital andpast, and over the last decade we’ve reinvented our operating costs by as much as 50%.portfolio through industry-leading R&D investments and For organizations seeking to transform their IT we offertargeted acquisitions. the services, technologies and capabilities that can beToday, IBM designs and builds products for nearly every applied to their unique strategy and needs. IBM can helpelement of an organization’s computing portfolio, from any organization realize Smarter Computing—the nextmicroprocessors, servers, and storage devices to era of IT.Welcome to Smarter Computing.Clients benefit from Smarter Computing—doublecapacity for IT services, hold IT costs flat and implementbreakthrough new services.IBM knows how to get you there. Let’s build a smarter planet.SMARTER COMPUTING: THE NEXT ERA OF IT 11
  • 12. “As our planet     becomes   instrumented,   interconnected   and intelligent,   the computing   model is evolving   to support it.”  Sam Palmisano Chairman, President and CEO IBM Corporation © Copyright IBM Corporation 2011 International Business Machines Corp. New Orchard Road Armonk, New York 10504 Produced in the United States of America April 2011 All Rights Reserved