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2012.02.09 - IBM SmartCloud Introduction for Business Partners - Walter Falk - IBM

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Public version for Business Partners of the Cloud Introduction session delivered by Walter Falk from IBM Corporate HQ during the Cloud Top Gun Education session for Cloud Selles [IBM and Partners] - ...

Public version for Business Partners of the Cloud Introduction session delivered by Walter Falk from IBM Corporate HQ during the Cloud Top Gun Education session for Cloud Selles [IBM and Partners] - 7-9 February 2012. Contact Loic Simon if you need some of the Powerpoint Slides to include

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    2012.02.09 - IBM SmartCloud Introduction for Business Partners - Walter Falk - IBM 2012.02.09 - IBM SmartCloud Introduction for Business Partners - Walter Falk - IBM Presentation Transcript

    • Rethink IT. Reinvent Business. IBM SmartCloud Introduction - News from the Cloud Walter Falk IBM Corporate HQ wfalk@us.ibm.com walterfalk on Twitter02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Introduction & Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.IDC and other Analysts have all identified the Four Forcesdriving IT in the next decade…..02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Clouds are here to stay and is already powering most of themodern IT world…. ERP, CRM, Desktop Enterprise SCM Collab Analytics On Premise Internet Security and Integration Services Outsourced Analytic Social MobileBusiness USER DEVICEPROCESS DATA Services Services Services Services02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Cloud computing represents the “Industrialization of IT”Similar to when:Telcos automated trafficthrough switches to assureservice and lower cost.Manufacturers started usingrobotics to improve qualityand lower cost.Banks built the automatedteller machine network toimprove service and lowercost. 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.As we start, let’s make sure we all agree on what we aretalking about…Cloud computing is a consumptionand delivery model for IT services,inspired by consumer internet Usageservices. Tracking Web 3.05 key characteristics: 1. On-demand self-service 2. Ubiquitous network access End User Focused 3. Location independent resource pooling Service 4. Rapid elasticity Virtualization Automation 5. Flexible pricing models02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Cloud computing is a new model for IT delivery with newterminologyEnabled by virtualization and SOA, cloud computing allows services to be rapidlyavailable on a scalable infrastructure. Cloud computing is a model for enabling Essential Characteristics: 1. On-demand self-service ubiquitous, convenient, on-demand network 2. Broad network access access to a shared pool of computing 3. Resource pooling 4. Rapid elasticity resources (e.g., networks, servers, storage, 5. Measured Service applications, and services) that can be Service Models: rapidly provisioned and released with 1. Cloud Software as a Service (SaaS) minimal management effort or service 2. Cloud Platform as a Service (PaaS) provider interaction. This cloud model 3. Cloud Infrastructure as a Service (IaaS) promotes availability and is composed of Deployment Models: 1. Private Cloud five essential characteristics, three service 2. Community Cloud models, and four deployment models. 3. Public Cloud 4. Hybrid Cloud Source: The NIST Definition of Cloud Computing. NIST Special Publication 800-145 (Draft). January, 2011. http://csrc.nist.gov/publications/drafts/800-145/Draft-SP-800-145_cloud-definition.pdf7 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Multiple deployment models are possible Private Managed Hosted Shared Public Cloud Private Private Cloud Cloud Cloud Cloud Services ServicesEnterprise EnterpriseData Center Data Center Enterprise Enterprises Users IBM IBM hosted & operated operated 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Four major categories of cloud computing services exist Examples IBM / Industry Industry-Specific Processes Business Travel Employee Benefits Management Procurement Business Process-as-a-Service Financials CRM Industry Applications Collaboration ERP Software-as-a-Service HR Middleware Web 2.0 Runtime Service Mgmt & Security Databases Java Runtime Development Tooling Platform-as-a-Service Servers Shared, Virtualized Dynamic Data Center Fabric Storage Provisioning Networking Infrastructure-as-a-Service 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Cloud is a rapidly growing enterprise revenue opportunity By 2015, a $200 B market IDC Video (6:33) $199 IDC Predictions 2012: Competing for 2020 Enterprise Cloud Market Opportunity Business Solutions $111 Managed Services http://www.youtube.com/watch?v=Mfh3w-wbLTk Access the report at: Privatehttp://events.idc-cema.com/dwn/SF_52232_top_10_preditions_2012.pdf Cloud 2010 2012 201511 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Cloud computing is rapidly gaining traction with clientsMany applications of cloud computing are 2-5 years from mainstream adoption.12 11/7/2011 IBM Confidential 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Business and IT are attracted to cloud. Rethink IT • Rapidly deliver services • Integrate services across cloud environments • Increase efficiency 55% Transformation Efficiency 60% of business executives believe cloud enables business transformation and leaner, faster, more agile processes of CIOs plan to use cloud (up from 33% 2 years ago) • Initiate new revenue streams • Faster time to market for new services • Focus on differentiated processes • Meet changing customer expectations Reinvent Business IDC 2012 Predictions • Over 80% of new apps will be distributed/deployed via the cloud • Amazon Web Services will exceed $1 billion • Private cloud “Arms Dealer” opportunity will grow over 30% and systems management will grow over 60%14 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Enterprises Face Multiple Challenges in Cloud Adoption Challenge Description Examples Sedimentation of Enterprise applications of varying – Enterprise clients with Enterprise Apps vintages not all of which can be ported legacy mainframe and Web Portfolio to the cloud 2.0 apps Widely adopted standards do not exist – Resource mgmt protocols Lack of for common cloud-related activities – Packaging formats Standards – Security mechanisms Cloud computing entails multiple – Securitypolicy control Security / security risks that are unique to the – Labor resource access Business business and delivery model – Compliance with security Continuity Risks audits High network bandwidth requirements – High variation in performance System of Amazon’s S3 cloud storage and billing/metering engines impose Performance significant overheads services; swings up to 10x Shift from monitoring trends of – Managing multi-tenant IT Management individual nodes/components to environments Control availability of a business services and – Managing across physical, downtime impact on other dependent virtual and cloud workloads servicesSource: “Hype and Reality of Cloud Computing”, Everest, March, 2010 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. 2012 will bring continued growth in all types of public, private and hybrid clouds.Private IBM Video (3:45) Rethink IT. Reinvent Business “Demand for private clouds is expected to double as many organizations look for ways to gain greater flexibility from their computing resources while still maintaining control of their data. Forrester predicts the private cloud market to rise from $7.8B in 2011 to more than $15B in 2020.” – IBM (link)Public “The global public cloud services market will more than triple in size over the next five years to reach revenues of $66 billion in 2016” – Ovum (link) http://www.youtube.com/watch?v=_4g-UFRrVx8 “Public cloud services will grow five times faster than overall IT enterprise spending (19 percent annually through 2015).” – Gartner (link)Hybrid “Hybrid cloud computing which brings together external public cloud services and internal private cloud services, as well as the capabilities to secure, manage and govern the entire cloud spectrum will be a major focus for 2012.” – Gartner (link) Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/1216 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Cloud Computing has moved beyond the hype. It is a highly disruptive trend that brings new opportunities.Disruption IBM Video (3:18)“Cloud services are interconnected with and accelerated Future of Cloud Computingby other disruptive technologies, including mobiledevices, wireless networks, big data analytics, andsocial networking. As during the mainframe and PC eras,the new platform promises to radically expand the users anduses of information technology, leading to a wide andentirely new variety of intelligent industry solutions.” – IDC(link)Opportunity http://www.youtube.com/watch?v=bu3kIAZAKTs“What supply chain models did to manufacturing is whatcloud computing is doing to in-house data centers. It isallowing people to optimize around where they havedifferentiated capabilities.” – Gartner (link)Mobile Cloud Services “In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.” – Yankee Research (link) Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/1217 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. New applications will accelerate the transformation to Cloud Computing Top Five Application Areas in each Life Cycle Stage “What are your firm’s plans to perform custom development in these areas?” Stabilized Deployed, but still expanding New Plans Finance and Accounting 22% Industry Spec 37% Mobile 19% Order Management 14% BI/Analytics 26% BI/Analytics 12% Industry Spec 14% Mobile 22% Collaboration 11% ERP 13% CRM 20% CRM 10% CRM 13% Collaboration 16% Industry Spec 8% Traditional Application focus in finance and New investment focus shifting. operations is maturing and new investments slowing. Specialized industry specific applications remain active, though specific opportunity Cloud will further enable areas tend to be small. these application areasBase: 933 North American and European software decision-makersSource: “Foresights: The Software Market in Transformation 2011 and Beyond”, Forrester Research, May 2011 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. The Cloud vendor landscape is an indicator of cloud growth. Software-as-a-Service Platform-as-a-Service Infrastructure-as-a-Service19 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Insights from the FieldWhat are clients really doing?1. Enterprise clients are leveraging on premise / private cloud now. Many would like to “get out of the business of IT”.2. New business clients (General Business and “Startups”) are typically starting with public clouds. – They often move to private and hybrid as they mature. – GB may move to private while ‘startups’ will adopt public and shared private offerings.3. Many clients are looking to become “cloud service providers” internally and/or externally. – “White” and “Grey” labeling are common scenarios being considered. 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Insights from the FieldWhat are the challenges?1. The cloud delivery model has ripple effects into many other IT and business areas.2. The support model is unclear.3. Integration into an existing environment is becoming very challenging, due to many vendors and a lack of common ‘management’ platform.4. Security is still a concern, however there are compensating controls which can be leveraged.5. Application development processes and tools will need to be addressed to support ‘shared service creation.” 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Insights from the FieldWhat about workloads?1. When and “If” to migrate a workload to cloud is important – Enterprise workloads move into cloud delivery models with varying levels of transformation effort, return on investment, and productivity gains….2. Workload characteristics will drive the rate and degree of standardization of IT and business services. – For example, complex transaction and information management processes may present challenges and risks3. Like any transformation effort, cloud must be viewed as a phased transition. 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Many workloads are ready for cloud delivery Sensitive Analytics Data Information Intensive Ready Infrastructure Storage for Cloud Highly Customized Isolated Industry Workloads Applications Not yet Collaboration Virtualized Mature 3rd Party SW Workloads Workplace, Desktop May not yet & Devices be ready Business Complex Pre-Productionfor migration Processes Processes & Systems Transactions Development & Test Batch Regulation Infrastructure Processing Sensitive Compute 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. Identifying opportunities Finding Opportunities • Companies with data center transformation projects • Companies with application consolidation projects • Strategic outsourcing clients (both current and new) • Companies going through reorganizations • Companies implementing business process & business model transformations • Companies with complex supply chain operations • Companies who want to leverage analytics or big data • Start-ups with no legacy systems who want to invest in cloud vs. new data centers • Enterprises with mobile strategies Almost every IBM client wants to hear about cloud computing.26 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Insights from the FieldHow should you engage with clients?1. Engaging with the business is fundamental. – Learn how to define the business value and then map this to implementation.2. Concern and skepticism amongst IT departments is still strong. – They are still critical and the importance of their role should not be diminished3. Know the competitors well. – Understand how they compete (or don’t compete) with us.4. Recognize IBM’s differentiators and tell the client. – Tell them why it matters to address specific business challenges.5. Shared services, delivered by cloud or some other method, need to be linked to a business value driver.6. Assert A Position! IBM Point of View! 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Selling Cloud IBM Video (4:40)You have to be a littlecreative.Think “Architecturally” (nottechnically).Think solution, not justproducts. Selling CloudWhat is driving or inspiring Heath Newburnthe Cloud discussion? http://w3.tap.ibm.com/medialibrary/media_view?id=107935&back=search&bUnderstand how to ackTo=%2Fmedialibrary%2Fsearch%3FdisplayMediaSet%3D0%26qt%3D sei%2Bcloud%26narrow_filter%3Dallcombine.. be a CloudOrchestrator. 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.Agenda• Definitions• Opportunity• Market Insights• Insights from the Field• Engaging Selling with Clients• IBM’s Capabilities02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. IBM provides the right hardware, software and expertise to help enterprises fully leverage cloud. A next-generation combination of technology, expertise and reach of Fortune 100 companies are using IBM cloud capabilities. “IBM has one of the most comprehensive cloud portfolios.” IBM Cloud Labs – Jeff Vance, Datamation IBM SmartCloud Centers30 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. IBM cloud solutions provide high ROI opportunities. Business Metrics Traditional IT IBM’s Cloud Capabilities Revenue Revenue is lost when Increase revenue by >$1 outages occur or customer million in Year 1 has a bad experience Business Agility Months Weeks Time-to-Value for Business Changes Customer Loyalty 3 – 5 second response < 1 second response time = times + 7 customer loyalty points Spend more on IT business >70% on maintenance Lower by 20% to 40% innovation and less costs and growing (hardware, energy, software, on maintenance database and mainframe) costs while absorbing growth Increase asset Average of 15 – 25% Utilize >65% server utilization server utilization capabilities31 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business. IBM has a comprehensive cloud portfolio. Cross-brand products and services delivers customer value Foundation Services Solutions Private and Hybrid Clouds Infrastructure and platform as a Service Software and Business Process as a Service Platform as a Service Technologies Application Application Application Application Integration Lifecycle Resources Environments Management Infrastructure as a Service Technologies Infrastructure Management Availability and Security and Usage and Platform and Administration Performance Compliance Accounting IBM SmartCloud IBM SmartCloud New Industry and Foundation with new Application Services a Business solutions technologies to deploy a secure and scalable cloud to accelerate business cloud 35x faster with support platform for deploying impact and grow for image management and enterprise applications in revenues by up to rapid provisioning. minutes versus weeks 20% Easily build and rapidly scale Unprecedented choice, Software as a service private or hybrid cloud security and portability of coupled with deep environments with applications on IBM’s industry insights, unparalleled time-to-market, SmartCloud service delivery business process skills integration and management platform and analytics32 02/01/2012 © 2012 IBM Corporation
    • Rethink IT. Reinvent Business.33 © 2011 IBM Corporation 02/01/2012 © 2012 IBM Corporation