Cloud Computing: Practice Makes Perfect

Contents What’s different about Cloud? Offerings – Spectrum of our Delivery Capability – IBM Smart Cloud Enterprise – IBM Smart Cloud Resilience – How to? • Add an Instance • Cloud Estimator Q&A2 © 2011 IBM Corporation

(The definition of) Cloud is (often) in the eye of the Vendor More than 100 vendors claiming to be selling cloud computing In answer to the question, explain what cloud computing is? “Its hard to explain, you can talk to Sponsors of Enterprise 2.0 Conference and Web 2.0 Conference anyone here and they will give you a different version.“ Shane Robison, CTO, Hewlett-Packard "The interesting thing about cloud computing is that weve redefined cloud computing to include everything that we already do....Well make cloud computing announcements. Im not going to fight this thing. But I dont understand what we would do differently in the light of cloud." Larry Ellison, CEO, Oracle "Every time theres a big new trend, a big new opportunity, we write a new operating system," Ballmer told delegates at the conference. "Were now in the process of writing a new operating system. For lack of a better term, before we announce it in four weeks, Ill call it Windows Cloud." Steve Ballmer, CEO, Microsoft Cloud computing is the use of networked infrastructure software and capacity to provide resources to users in an on-demand environment. … clouds provide a set of typically virtualized computers which can provide users with the ability to start and stop servers or use compute cycles only when needed, often paying only upon usage. -http://www.vmware.com/technology/virtual-datacenter-os/cloud-vservices/faqs.html3 © 2011 IBM Corporation

What the Market is Telling UsThere is universal interest in cloud computing across all industries and geographies “21% [#2 rank] “43% want more Speed & need Cloud to efficiency in cloud Ease align to the delivery, 25% Delivery velocity of the developing new business” Cloud apps” IBM institute for Business Value Optimize “54% were unsure “Nearly 70% “48% lack visibility “55% of Quality of of how many of active cloud into cloud enterprises cloud services users report little operations inhibits are connecting Service were being used, confidence analysis of mobile devices effecting optimal monitoring their compliance, to back-end business cloud services” Perform. & ROI” cloud services” operations.” Cloud: Need to speed storage agility Control “40% lose “80% focused of control & on Cloud Complexity governance is processes and a top concern” management processes [#1] IBM institute for Business Value4 © 2011 IBM Corporation

Organizations are now moving beyond virtualization to higher value stages of Cloud Computing Cloud focuses on eased service consumption & management Consumption based metering and dynamic capacity optimization Virtualization underpins Cloud End-to-end real time monitoring and optimization Business service catalogs & self service Service delivery automation Virtualization management5 © 2011 IBM Corporation

Ease the transition from virtualization to cloud service delivery SPEED: accelerate & scale the delivery of new services while enabling 81% Are moving to Cloud, continuous lifecycle updates with 62% of CIO’s citing it as the top priority AGILE: easily deliver, manage, and secure mobile applications & devices in 70% Are concerned about the Cloud environments ability to see and understand their Cloud environments COST: reduce IT expense and risk by 43% controlling the velocity of change with greater responsiveness Are focusing on improving Cloud efficiency, speed and control6 © 2011 IBM Corporation

Our view … Cloud Computing: a way to consume and deliver IT services, inspired by consumer internet services and optimised by workload Cloud enables: Cloud computing has 5 key  Self-service characteristics:  Sourcing options 1.On-demand self-service  Economies of scale 2.Anywhere, Anytime, Any network  Business flexibility & agility access 3.Location independent resource Cloud represents: pooling  The industrialisation of delivery for IT supported services 4.Rapid elasticity 5.Measured service7 © 2011 IBM Corporation

Cloud computing adoption patterns are emerging Business Solutions Cloud Enabled Cloud Platform Cloud Service Data Center (IaaS) Services (PaaS) Provider on Cloud (SaaS) Cut IT expense, Accelerate time-to- Gain immediate Deliver innovative risk & complexity market with new access to business services workloads applications8 © 2011 IBM Corporation

Integrated IBM has been innovating the underpinnings Automated of cloud for over 45 years Standardized Virtualized Systems Strategies, Inc IBM acquires Cast Iron for hybrid IBM cloud integration standardizes topologies and IBM delivers patterns to MQSeries providing speed application standardized, deployment to IBM delivers more reliable messaging cloud and virtual than 1,300 System/ across environments1960s IBM Cambridge 370 computers heterogeneous (IBM with IBM Scientific Center worldwide and and non-IBM) to WebSphere begins development announces 100s of SO clients. Cloudburst of CP-40, first OS VM virtualization WebSphere MQ is a that implemented key entry point for complete SOA virtualization 9 © 2011 IBM Corporation

IBM Centers Deliver & Manage Cloud Services Around the World IBM Worldwide Support Centers 8 Cloud Data Centers 11 Cloud Labs 57 Global Delivery Centers 54 Global Command Centers Toronto Wroclaw, Poland Dublin Boulder, CO Ehningen, Germany Beijing TokyoSilicon Valley, CA Raleigh, NC Seoul Hong Kong Hanoi Bangalor e Singapore Sao Paulo Johannesburg IBM Cloud Lab IBM Cloud Data Center10 © 2011 IBM Corporation

IBM’s Leadership in Cloud- Client Engagements  2,000 successful cloud engagements in 2010  50% of Fortune 10 and Fortune 50 working with IBM on private clouds  80% of Fortune 100/500 companies using IBM cloud capabilities  Over 200 client references Reduced IT labor cost by 50 percent in configuration, operations, management and monitoring Improved capital utilization by 75 percent, significantly reducing license costs Reduced provisioning cycle times from weeks to minutes Improved quality, eliminating 30 percent of software defects Reduced end user IT support costs by up to 40 percent Simplified security management11 © 2011 IBM Corporation

Contents What’s different about Cloud? Offerings – Spectrum of our Delivery Capability – IBM Smart Cloud Enterprise – IBM Smart Cloud Resilience – How to? • Add an Instance • Cloud Estimator Q&A12 © 2011 IBM Corporation

IBM SmartCloud capabilities meet Client needs Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design Deploy Consume Private & Hybrid Clouds Managed Cloud Services Cloud Business Solutions Cloud Enablement Technologies Infrastructure and Software and Business Platform as a Service Process as a Service Commitment to open standards and a broad ecosystem13 © 2011 IBM Corporation

Delivering cloud offerings mapped to the strategy Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design Deploy Consume IBM SmartCloud Enterprise Smarter Commerce on IBM IBM SmartCloud Entry IBM Smart Cloud Application SmartCloud IBM SmartCloud Provisioning Services* Social Business on IBM IBM SmartCloud Monitoring IBM SmartCloud Resilience SmartCloud IBM SmartCloud Desktop Smarter Cities on IBM SmartCloud Business Analytics and Optimization on IBM SmartCloud *Offering in Beta testing14 © 2011 IBM Corporation

IBM SmartCloud FoundationBuilding and rapidly scaling private cloud environments with unparalleled time-to-market, integration and management SmartCloud Entry Virtualized, resilient hardware with systems management and pooling Platform as a Service Technologies SmartCloud Provisioning Rapid, high scale heterogeneous provisioning and performance visibility Application SmartCloud Monitoring Application Application Application Lifecycle Resources Environments Management Integration Integrated cloud and image management Infrastructure as a Service Technologies WebSphere Cast Iron (Hybrid) Cloud to on-premise application integration through multiple form factors Infrastructure Management & Availability & Security & Usage and IBM Workload Deployer Platform Administration Performance Compliance Accounting Self-service capabilities on a workload aware, optimized platform15 © 2011 IBM Corporation

What is IBM SmartCloud Enterprise? Our solution is:  An infrastructure-as-a-service product that provides enterprise-class IT development and test environments offering control, reliability, Your servers and PCs data security and massive scalability in Your firewall performance and capacity  IBM owned and managed multi-tenant, highly virtualized, shared infrastructure with Internet deployment through multiple delivery centers  Secured access through the Internet (IPS/IDS, IBM firewall SSH/HTTPS, VPN/VLAN, Web identity) to a IBM unique security and management infrastructure and content authentication model delivered in compliance with IBM security standards  Virtualized IT development and test resources delivered on a usage-based billing model IBM delivery centers16 © 2011 IBM Corporation

IBM SmartCloud Enterprise at a glance … Features and functions:  Choice of nine virtual (Intel) server configurations  Choice of pre-configured software images from which to build private image libraries – Linux® operating systems; Red Hat and Novell SUSE – Microsoft Windows operating systems, 2008 & 2003 – Extensive IBM, third party, and ISV image catalog* – IBM Lotus®, WebSphere®, DB2® and Informix® stacks – IBM Rational® Application Lifecycle Management – Tivoli® Monitoring software – Aviarc, CohesiveFT, Kaavo and Servoy software images  Option to add blocks of persistent storage  Image creation: cloning & instance backups  Virtual Private Network (VPN/VLAN) services  Multiple virtual IPs  Premium support options; 24*7 by phone with optional add-on Linux and Microsoft OS support  Capacity: ~30K virtual machines ~5PB storage Payment options:  Pay-as-you-go – VMs, selected software images & static IP addresses per hour – Persistent storage per block per month – Internet data transfer per GB transferred  Reserved capacity package options – Reserve a pool of virtual machine resources in units of 64 CPUs for 6 Offering website: or 12 months for a monthly fee and get preferred (discounted) VM http://www.ibm.com/cloud/solutions/development usage rates IBM Cloud portal: http://www.ibm.com/cloud/enterprise *Please see current list of IBM software images published on the Cloud portal17 © 2011 IBM Corporation

Which workloads are best to try on IBM SmartCloud Enterprise?Application development Testing and quality assurance New projects or quick deployments  Different testing scenarios Transient applications • Regression • Demo • Build and verification Cloud accelerates • Training • Endurance business value • Proof of Concept  Cloud deployment of IBM Rational across a wide • Migration of technology quality manager variety of domains. Multi-site, outsourced development and test • Test management • Access from multi-sites, remote locations, • Test cases etc. • Test execution and results • Walled off external and contractor resources Cloud deployment of Rational Team ConcertTM • Collaborative development Operations and infrastructure • Process facilitation  Spillover or burst infrastructure • Source control • Defect management  What if … swapping out components… IBM Rational® Requirements Composer V2.0 - Requirements gathering  Move development and test environments out of data center toCross organization free up resources for production Access tools and software images from use IBM and IBM Business Partners  Rational Build Forge® V7.1 – build A site for collaboration with partners and automation vendors, outside everyone’s firewall  Rational Asset Manager V7.2 – Asset storage and governance18 © 2011 IBM Corporation

SmartCloud EnterpriseWhether you are designing a new application for the web (or something else) Management, Support and Hardware Hypervisor Operating Middleware Application Process Deployment System Security and Isolation Security Logical Integrated Dedicated Client Location Policies and Physical Backup Connection Dexterity and Services Isolation and Recovery from Data Center Availability and Performance SLA Rapid High-End SLA Provisioning Scalability 99.5% 99.9% Time Technology Platform x86 Tiered Power Linux Windows AIX VMWare KVM Storage Payment and Billing Pay as Pay as Managed You Go: You Go: Service Hourly Monthly Options19 © 2011 IBM Corporation

Clients can create instances within minutes, and monitor, manage andcontrol through the Web Portal Control tab  Instance  Images  Storage Account tab  Managing Users  Usage overview  Access keys  IP addresses Support tab  Forums  Video & Document libraries http://www.youtube.com/watch?v=O53kTuc4JW420 © 2011 IBM Corporation

With IBM SmartCloud Enterprise, you can choose from severalsoftware licensing options Customer Scenario Software Infrastructure Charge Charge You “bring your own IBM license” Per You own an IBM software license and can use the Prepaid virtual machine (VM) pre-built IBM images in the portal catalogue per hour (hr) You “pay-as-you-go” By usage Per VM You choose the desired software, accept the license terms per hr online, and receive a monthly usage bill You “bring your own software and license” Prepaid as Per VM You bring you own software or software for which you hold agreed valid licenses and install them on the servers you with vendors per hr provision You are an eligible ISV/SI developer You can use selected IBM development software for No charge or Per VM development, test, proof of concept and sales demos on by usage per hr the IBM Cloud21 © 2011 IBM Corporation

IBM SmartCloud Resilience focuses on three key CloudservicesIBM SmartCloud Resilience can help your business leverage cloud servicestechnologies to quickly and cost-effectively recover in the event of a disruption ordisaster. Our solutions, which include recovery and data protection and backupservices, can help you efficiently manage risk, reduce costs and meet regulatorycompliance mandates. • SmartCloud Managed Backup • SmartCloud Archive • Virtual Server Recovery IBM SmartCloud Resilience IBM SmartCloud Managed IBM SmartCloud Backup Archive This suite of cloud services is designed to efficiently support your end-to-end resilience needs.23 © 2011 IBM Corporation

SmartCloud ResilienceBoth backup and archive retain data for the purpose of mitigating risk, but how the data isultimately used differs greatly. Backup & Recovery Archive*  For recovery  For retrieval  Copies information  Moves information  Improves availability  Adds operational efficiencies  Short-term in nature  Long-term in nature  Data typically overwritten based on retention  Data typically maintained and not overwritten  Multi-step search/retrieval  Optimized for search/retrieval Archive*: A collection of data that is maintained as a long-term record of a business, application, or information state. Archives are typically kept for auditing, regulatory, analysis or reference purposes rather than for application or data recovery. http://www.snia.org/education/dictionary/a/24 © 2011 IBM Corporation

SmartCloud Managed Backup address the BIG Data issue Hardware and Software drive the major areas for annual backup TCO and also account for the majority of causes of backup failures. Annual TCO of Backup Solutions SmartCloud Managed Backup can near-eliminate the ‘Causes’ and reduce the Costs25 © 2011 IBM Corporation

SmartCloud Managed Backup Comprehensive company-wide protection Private or hybrid cloud solutionIBM Data Center Client Data Center • Web-based Customer Portal • Reporting • 24 x7 Monitoring Client Branch Offices & Management Client PCs and Desktops 26 © 2011 IBM Corporation

SmartCloud Archive address the Explosion of Information issue Companies that cite defensible Average cost to collect, cull and Amount of IT budget spent on disposal as key result of governance review information per legal case storage programs 98% $3M 17% Projected future information growth Portion of information 44x 22% unnecessarily retained 70% Companies that can defensibly 2020 2009 35 ZB* dispose today 0.8 ZB* * Zettabyte = 1 trillion gigabytes Sources: Source: CGOC Benchmark Report on Information Governance, 1 Litigation Cost Survey of Major Companies, 2010 (from Conference on Civil Ligitation, Duke Law School, May 2010) Sources: October 2010 2 Industry estimates 3. Information Week Survey, December 2009 4. IDC Digital Universe Study, May 201027 © 2011 IBM Corporation

IBM SmartCloud ArchiveOptimizing the archiving process and infrastructure Uncontrolled Organized / Retained Optimized eDiscovery  Data and Content  Unified Collection and  Integrated Compliance  Poor Meta Data Classification  Records Management  Flexible and Secure Infrastructure  Data and Content Analytics Assess and  Unified Retention and Protection Discover28 © 2011 IBM Corporation 28

Virtual Server RecoveryFully managed cloud service that enables clients to recover their virtualized or non-virtualized servers on a virtualized cloud infrastructure IBM Physical and virtualized servers Physical and virtualized intranet servers NAS AIX AIX® Windows® Windows Linux Linux® Web portal Internet No replication Authenticate Failover Client environment failback Replication Dashboard reports BCRS recovery center BCRS LAN SAN Recovery servers Cloud recovery Replication management servers system BCRS SAN © 2011 IBM Corporation

SmartCloud Desktop Architecture Options Power Users VDI Citrix/Terminal FSC SBDIC Services Shared Services Streaming Svcs Public Desktop Workstation Blade Virtual Client Workstation Blade (Private W/S) (Private Cloud) (Private Cloud) (Private Cloud) Cloud Service keyboard, mouse, keyboard, mouse, keyboard, mouse, keyboard, mouse, keyboard, mouse, display, network display, network display, network display, network display, network Thin Client Thin Client Thin Client Thin Client / Repurposed PC Thin Client User User User User Users User User User User Dedicated Blades or Blades or Blades Blade Rack- Virtual Rack- X3550, Rack based Shared based x3650 Streaming Based Servers Client servers Services Servers Servers Service Virtual Client Physical 1:1 Virtual Machines Published Desktop Streaming Virtual Machines  1:1 dedicated blade  Up to 100:1 (quad-  Up to 250:1 (quad-  One to many  Options for VM  Highest $/user Cost core) core) broadcast sizing  App. compatibility  Full desktop  One OS and Apps.  One OS w/Apps  Shared experience  Least fault isolation  High fault isolation Management  For power users Infrastructure  Choice of OS  More difficult to  Highly replicable  Datacenter security  VM only no image  Good security/TCO deploy & manage  Locked down  Leverage existing highly managed skills30 © 2011 IBM Corporation

Why the IBM Cloud? We can deliver: Make sure you can see what you buy/use:  Flexible enterprise-oriented delivery models, on the IBM Cloud,  Team-based development and testing environment  Reliable and scalable environment  Usage based pricing – pay-as-you go with reserved capacity pool options  Supports existing enterprise procurement processes  Expertise and best practices on security  Proven IBM architecture, management tools and assets.31 © 2011 IBM Corporation

Cloud Computing: Practice Makes Perfect

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