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System Z Cloud Atlanta
- 1. Andrea Greggo Cloud Computing Leader System z Market Strategy April 1, 2010
- 4. A cloud computing deployment is optimized = CLOUD COMPUTING … leveraging virtualization, standardization and automation to free up operational budget for new investment . VIRTUALIZATION + STANDARDIZATION AUTOMATION + Increased Flexibility Reduced Cost
- 5. Enterprises want the value of cloud without undue risk Cloud computing implementation challenges can be significant. Source: IDC Enterprise Panel, 3Q09, n = 263, September 2009 (Scale: 1 = Not at all concerned 5 = Very concerned) 76.0% 76.8% 79.8% 80.2% 81.0% 82.9% 83.3% 87.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Not enough ability to customize Hard to integrate with in-house IT Bringing back in-house may be difficult Lack of interoperability standards On-demand paym’t model may cost more Performance Availability Security
- 7. Cloud computing doesn’t change system capabilities Operational spending is growing significantly, has greater variability, & is introducing more risk Capital costs are flat Source: The Economist, 10/23/2008 $0 $50 $100 $150 $200 $250 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 5 10 15 20 25 30 35 40 45 50 Power and Cooling Costs Server Mgt and Admin Costs New Server Spending Server Installed Base (Millions) Spending US$(B) 0 5 10 15 20 25 30 35 40 45 50 0 5 10 15 25 30 35 40 45 50 Physical WW IT Spend on Servers, Power, Cooling and Management / Administration
- 9. Power and floor space are key to operational efficiency … a Big Green showcase that resulted in 60-75% gross cost savings (5 yr TCO) IBM’s Project Big Green … promises energy savings of approximately 42% for average data center Enterprise Compute Model … a five step approach to energy efficiency in the data center … … consolidation & virtualization of 3900 mid-range servers to < 30 mainframes … Learn more: http://www.ibm.com/press/us/en/presskit/21944.wss 55% 7,000 15,700 Physical Network Connections 96% 700 19,500 Cables 97% 960 31,300 Ports 93% % Reduction 1,800 System z Linux 26,700 Distributed Software Licenses Unit
- 14. Smart Analytics Cloud for large enterprises This offering transforms the delivery of business intelligence into a service that is readily available and affordable to corporate users across and beyond the enterprise. Report Authors Cloud Administrators BI Administrators Smart Analytics Cloud WAS z/VM for Dev/Test Cognos Linux DB2 WAS z/VM for production Cognos Linux DB2 Cloud boarding application Marketing Line of Business ‘A’ R&D Data Mart/ Warehouse HR Data Mart/ Warehouse Data Mart/ Warehouse Finance Operations Data Mart/ Warehouse Line of Business ‘B’ Marketing R&D Data Mart/ Warehouse Senior Executives Large enterprise organization z/VM for cloud management Ops Mgr for z/VM VM Perf Toolkit Tivoli Automation Tivoli Monitoring z/VM Tivoli usage metering Linux
- 22. Thank you! Contact me! Andrea Greggo [email_address]
Editor's Notes
- Built on radically scalable, manageable, virtualized IT resources Service layers separated by clean APIs, enabling composition
- Slide 20: A dynamic infrastructure is highly optimized to achieve more with less, and cloud computing leverages these same focus areas: virtualization, standardization , and automation, to reduce cost and improve overall flexibility. Notes: In today’s economy, many businesses are faced with the challenge of “taking cost out” of their infrastructure while continuing to deliver new, innovative business services - basically they need to “do more with less” There are several key initiatives that an organization can take to begin to optimize their infrastructure, addressing both operating expense and capital expense. For many businesses it’s not just a question of lowering costs its also important to strike the right balance between Op-ex and Cap-Ex. For many clients, consolidating and addressing the energy efficiency of their infrastructure through virtualization has allowed them to better utilize IT resources to help reduce capital expense of hardware, software and facilities. Reducing operating expense can be addressed thru greater standardization and automation of your business and IT infrastructure with common software stacks, operational policies, and improved service management. The farther you can drive standardization the more you reduce operating expense – like labor and downtime – which is far and away the fastest growing piece of the IT spend. The more standardization and automation you are able to achieve within your infrastructure, the greater the economies of your operating expenses become. Similarly, the more you leverage virtualization and energy efficient technologies/facilities within your IT infrastructure, the greater the economies of your capital expenditures will be. The need to achieving cost optimization has also provided fertile ground for Cloud Computing. The cloud paradigm is an attempt to improve service delivery by applying engineering discipline and economies of scale in an Internet inspired architecture. Cloud computing can be an important new option in helping businesses optimize the IT expense equation while maintaining fast, high quality service delivery. NOTE: If asked to discuss public vs. private clouds: A private cloud drives efficiency, while retaining control and greater customization. Public clouds today are for processes deemed more easily standardized and a lower security risk. There some functions that already exhibit a high degree of standardization, that are more easily moved to a public cloud – things like search, e-commerce, and discreet business processes like sales force management.
- Cloud computing is a delivery model that can be used with many of the core workloads that derive value from System z. Clouds have hefty requirements, such as the enablement of massive virtualization, operational efficiency, unlimited scalability, productive up-time and secure operations. As the workloads that move to cloud delivery become more critical to the enterprise, the requirements upon the cloud infrastructure becomes more prohibitive. System z can help. Let’s talk about a real customer using System z for cloud computing. Transzap was founded in 1999 by a team of innovative software leaders and oil and gas accounting professionals looking to develop software as a service (SaaS) solutions that would help oil and gas companies improve their accounting and operations processes. Ten years later, Transzap has emerged as the market leader, with over one-hundred billion dollars in transaction detail flowing through the company's systems each year and tens of thousands of satisfied energy industry customers. Transzap is a proven innovator of SaaS solutions with their Oildex portfolio of services including electronic invoices, spend analysis and the efficient processing of revenue, invoices, and joint interest bills. Transzap selected Linux on System z as the foundation on which to run Oildex. Peter Flanagan, CEO of Transzap, says he selected System z for the Oildex portfolio of services because &quot;We have to be able to look our customer in the eye and assure him or her that our quality of service will be as good or better than the quality of service that can be provided to the organization from their own IT infrastructure. The quality of service we provide to our customers has to exceed that of a Fortune 500 company.&quot; Peter goes on to add that while Transzap is “… still a small company - we’re growing rapidly and we need the capability to scale as our business grows.&quot; System z was foundational for Transzap’s successes in 2009. Oildex services processed a record 58 Million transactions worth over $136B, while growing the user base to 200,000 business users in 8200 companies and expanding its supplier network by more than 70%. Key value drivers for Transzap: Virtualization of Oracle and other applications running under z/VM® on System z with Linux as the operating system foundation have provided Transzap with significant cost advantages and a 40% reduction in SW licenses in a growing environment Efficiency gains were seen in typical areas such as the consolidation of physical assets, but atypical advantages were soon discovered. System z is designed to most effectively use manpower. About two months after going live on System z, a Transzap IT staff member was alerted by IBM at 2:30 one morning to the fact that a disk drive had gone offline. The data was protected by two layers of redundancy, so rather than call in an emergency crew, Transzap waited until the next morning to have IBM replace the drive with no business impact. Scalability is a must with SaaS vendors. Transzap make it their business to consolidate the computing load from hundreds of corporations into one location. As a result, Transzap manages a computing load comparable to that of a Fortune 500 company, despite the relatively small size of the organization itself. With System z Transzap can add capacity on demand or take it offline to meet customers bursts in activity and other unpredicatable changes. Availability is not a characteristic most SaaS vendors will guarantee. Says Flanagan, &quot;We intend to deliver a 99.9% application uptime guarantee to our customer base, thanks to the availability characteristics of System z.&quot; Security is not an optional characteristic for Oildex services. One security breach could cost a company like Transzap their entire business. System z processes over $136B in transaction detail through the Oildex online transaction processing (OLTP) database. Those details are kept locked away and secure on System z which is designed for isolation and secure multi-tenant operations. URLs for more resources: https://www-01.ibm.com/software/success/cssdb.nsf/CS/ARBN-7V8R8N?OpenDocument&Site= default&cty = en_us http://www.ibmsystemsmagmainframedigital.com/nxtbooks/ibmsystemsmag/mainframe_20090910/#/24 http://www.oildex.com
- $1 billion investment to dramatically increase the efficiency of IBM products. New IBM products and services, announced as part of Project Big Green, include a five step approach to energy efficiency in the data center that, if followed, will sharply reduce data center energy consumption and transform clients' technology infrastructure into “green” data centers, with energy savings of approximately 42 percent for an average data center.
- 04/01/10 16:25
- Offering Name & Overview: The IBM Smart Analytics Cloud is an IBM offering to enable delivery of business intelligence and analytics at the customer location in a private cloud deployment. This offering leverages IBM HW, SW and services to offer customers a complete solution enabled at their site. This first offering of the Smart Analytics Cloud is geared towards large customers who want to make business intelligence a competitive advantage for the enterprise and are focused on supporting a large multi-tenant (or cross lines of business) install base of users. In order to meet the needs of the large enterprise customer, we focused on creating scalable clouds with support for enterprise SLAs. In order to best meet the need of large enterprise customers, the first Smart Analytics Cloud offering is based on a System z foundation, where customers benefit from the massive scale, unchallenged virtualization leadership, and trusted qualities for reliability, availability and security that System z is uniquely qualified to deliver. The business intelligence and analytic services are provided by Cognos 8 BI, which offers a broad range of intelligence services and capabilities designed to enable knowledge dissemination across a diverse user install base within and across lines of business. IBM services completes the offering by bringing a skilled enablement and implementation team to create and deploy the solution, as well as ensure a corporate wide understanding and support for private cloud BI deployments beyond the scope of the engagement.
- Target Market and Audience/Roles: This offering is targeted to the large enterprise to enable greater efficiency for delivery of BI across the corporation. The decision makers within the enterprise for this kind of a solution are chief officers and senior level IT executives, as this offering involves raising decision making for BI within the enterprise from departmental levels to a corporate level. Client Needs Addressed by this offering: ( Describe key consumer-facing capabilities) The proliferation of business intelligence and performance management tools and deployments around the enterprise often resulting in multiple tools and tens (if not more) overall deployments Ability to support and comply with corporate and regulatory standards when no two BI deployments look exactly alike Rising costs for delivering BI/analytics/performance management within the enterprise, as each instance requires ongoing operations costs plus initial start-up costs which include hardware, set-up costs, software, etc. The need for a cohesive BI/analytics/performance management strategy for the corporation. Utilization of skilled workers is ineffective when there are many deployments requiring ongoing operations and support Value Proposition for this offering: A corporate wide BI strategy created on cloud computing that is supported at the highest levels in the executive ranks. Centralization enables a core concentrated BI service that is standardized across the lines of business and user install base without removing the LOB control to own and manage their own end to end BI solution A concentrated service strategy for BI supports simpler enforcement of corporate and regulatory standards, including security and boarding processes A subscription model, based on user chargebacks enables departmental budgets to stretch farther and cover more users Reduced costs overall with greater operational efficiency and a centralized service strategy based on economies of scale More efficient utilization of the BI skilled workforce with a centralized service strategy
- The IBM Corporation is the first consumer of the Smart Analytics Cloud for System z. Blue Insight is the world’s largest private cloud solution and resulted in a $23M savings projection over the next 5 years, representing +56% savings of Business Intelligence (BI) costs from previous departmental BI solutions. The business problems IBM was able to overcome with Blue Insight: Movement from a proliferation of BI products and BI installations around the enterprise to a single, centralized deployment The organic growth of BI with departmental BI deployments was reversing the direction of the Enterprise Computing strategy (Project Big Green Mainframe Consolidation) We were able to arrest the rising costs of BI/Performance Management delivery within the enterprise by focusing on a single standardized service based delivery of BI Tackled the lack of common BI/PM skills (Hyperion, Actuate, ArcPlan, Brio, etc.) by focusing on utilizing the best and brightest to make service delivery of BI enterprise wide Overcome the lack of BI/PM strategy within the enterprise by deploying a strategic business intelligence competency as part of our Blue Insight cloud service that is shareable enterprise wide Difficulty meeting the growing volumes of IBM users who require BI to do their job was assuaged by building a dynamic service on System z where we can add resources on the fly to scale up and back down as required Cloud computing held a lot of promise for IBM, but up to this point most of the cloud computing projects in IBM were based around more traditional Amazon style computing. To ensure a successful deployment of the Smart Analytics Cloud for System z in IBM we needed to deliver the value of cloud computing in a private setting without negatively impacting the behavior or results for the enterprise. Here are the considerations for success in IBM: Executive sponsorship of the CIO office Extensive socialization of the notion of centralized services as being self service and necessary for enterprise efficiency without sacrificing business agility Governance of licensing and infrastructure delivery of BI solutions Know where BI investments are being made throughout the enterprise – “Follow the money” Control points in procurement and infrastructure delivery for new BI solutions Inventory and review planned investments in BI enterprise wide Behavioral change – Not all services for a particular business segment need to be controlled by the organization Cloud approach provides the tenant with central tools NOT central solutions Perception by adopters needs to be a ‘self service’ model, with extended services Positive business case Centralized service needs to produce real savings via Centralized infrastructure and support, process simplification and talent reuse The private cloud deployment model represents a significant return on investment for the IBM corporation and is a delivery model that will be considered beyond business intelligence and performance management.
- Offering Name & Overview:
- WebSphere CloudBurst Appliance allows you to create and dispense multi-server patterns of virtualized IBM middleware products. Today, WebSphere CloudBurst supports WebSphere Application Server and DB2, but that list will grow to include WebSphere Process Server and WebSphere Portal Server later this year. Also coming later this year, in a release planned for 1Q10, the WebSphere CloudBurst Appliance will be able to dispense its multi-server patterns into z/VM virtualized environments to bring this compelling value into the System z space. Unmatched IBM middleware virtualization management We are not dispensing black boxes; we understand what we’re dispensing. We can apply fixpacks, iFixes, and can configure multi-server configurations of our own products. Other products can dispense multiple images, but do not know how to federate them into a cell, create clusters, and install applications. Because we know our software, we can remove more of the expensive, repetitive, error-prone manual tasks Secure Appliance Basis for security throughout virtual image lifecycle. Security is manifested in a set of public/private keys. Public keys are stored on the hard disks, which are externally accessible and removable (for replacement in event of failure). Private keys reside on a flash disk inside the case. If you open the case, the flash disk is destroyed, which renders the contents of the hard disk unreadable and useless. Hence, physical access to the box does not allow a malicious person to compromise the security of the entire cloud.
- eyeOS is a RIA Framework + Web Desktop available from anywhere, using any device and Operating System: