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Accelerating Time to Market with Next Generation Cloud Platforms by Michael McCarthy, VP of IBM


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Accelerating Time to Market with Next Generation Cloud Platforms by Michael McCarthy, VP of IBM Cloud Slam 2012 Keynote

Accelerating Time to Market with Next Generation Cloud Platforms by Michael McCarthy, VP of IBM Cloud Slam 2012 Keynote

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  • We asked the respondents regarding their plans around the organization's level of cloud technology adoption today and the expected level in 3 years. 72% of the respondents were either piloting, or had adopted or substantially implemented cloud in their organization, and this number is expected to increase to more than 90% in 3 years with a rate of growth touching 215% for organizations which intend to substantially implement cloud. Further, forecasts around cloud predict the cloud market to reach up to $241bn by 2020.
  • Main Point: Businesses today are under tremendous pressure driven by shifts like an increasingly mobile workforce and the need for greater productivity. Yet, companies are being asked to accommodate these increased demands without an increase in resources. Three key market forces are causing a re-evaluation of business technology: Expectations: Escalating customer, employee and partner expectations around self-service, personalization, access to real time information, and service innovation 52% CAGR growth in self – service channels. TowerGroup estimates that the number of active users of mobile banking in the United States will grow from 10 million in 2009 to over 53 million in 2013 . <<Additional Stats:>> 5B mobile phones (19% smart phones) 20M tablets (215M by 2015) 1T Connected devices Over half of the world's 6.5 billion people now use  mobile technology , and more than 60 percent of mobile phone users live in developing countries 2) Demands: An exponential increase in data, users, speed requirements, and the number and variety of connected devices There has been an over 10X growth in digital data from 2007 to 2011. 2B internet users - 28.7% global penetration (over half are 18-26) 3) Competition: The imperative to deliver higher value products and services more rapidly than ever before in order to remain competitive in a crowded, global market Source: IDC Only 20% of companies that were on the year 2000’s list of largest companies are still on that list today. 60% of total workers are “mobile knowledge workers ” in Brazil, Germany, India and Japan . In the United States that number is 70% . 1.9B people born since Netscape went public 464M people have college degree (6.7% - Harvard and the Asian Development Bank; 6.92B total population) 1 trillion Economics of computing: One trillion devices connected to the Internet by 2013.
  • Main point: However, too often cloud’s vast potential is unmet because cloud is being used primarily to make IT easier, cheaper and faster. While these goals are hard to argue with, those results have become are a commodity. Cloud is not just about rethinking IT; it is also about reinventing the business. Consolidation, data center efficiency and lower costs are just the start. Leading companies are unlocking the deeper potential of cloud as a way to manage not just their IT but also their businesses. They’re discovering how cloud can help them create new marketplaces, smarter business services and profitable new revenue streams. Providing these services to innovators can profoundly change the way a company is experienced by customers, partners and society.
  • Main Point: While business and IT come to cloud for different reasons and with different goals, both roles are unified in their view of cloud’s overall value: the ability to deliver IT without boundaries, improve speed and dexterity, and create new business value. These are the kinds of value that bring participants together regardless of role. They speak to the marketplace drivers mentioned at the beginning of increasing expectations, demands, and competition. And they reflect the need to both rethink IT and reinvent the business.
  • Which we provide in a comprehensive smartcloud platform (foundation, managed services, solutions) all build on an client-led open standards (standard chart)
  • But IBM sees three significant challenges in the third-party cloud marketplace today. First, many technology companies position cloud computing as an answer to all IT woes. The client presents a problem in its server environment and the answer is "cloud." IBM disagrees with this assessment. While cloud technologies are playing an ever-more-important role in enterprise IT environments, not all workloads are suitable for cloud migration. Second, too many cloud providers offers "one size fits all" deployment models. Again, IBM disagrees with this approach. Many organizations will need a mix of public, private and hybrid clouds to meet their business needs—along with a host of hardware, software, and services offerings to support those clouds. Third, in survey after survey IT professionals cite loss of control as a barrier to using third-party partners for cloud architecture and management. IBM empathizes with this position. Too many cloud providers put IT professionals in the unenviable position of surrendering control if they wish to take advantage of cloud capabilities and cost benefits.
  • So this means that you are no longer confined to the four walls of your data center. There are numerous sourcing options available. So in the near future, you ’ll have some work in your data center; some completely outsourced in a traditional data center; some in a private cloud; and additional work will be in a public cloud. But all of your IT will be interconnected and feeding into one another in a hybrid environment. The key to being an effective IT manager is how you integrate and aggregate across these environments to achieve maximum business benefits. This will necessitate an evolution in the role of the IT organization. You will need to understand the architecture, levels of control and standards. Think of this as SOA for the composition of services. And really, the forward thinkers in this new era of IT – and probably the winners – will use this sourcing complexity to enable new business and industry models, not just cut capital expenses. [Switch Image]
  • IBM SmartCloud™ Services have been designed to meet client needs for tailored cloud architectures and management services replete with near-total reliability, security and client control. As you can see on this slide, the IBM SmartCloud Services delivery platform allows clients to choose among a number of key enterprise capabilities to consume both infrastructure as a service and platform as a services capabilities. IBM offers two sets of SmartCloud Services: SmartCloud Infrastructure Services and SmartCloud Application Services.
  • IBM PULSE 2012 File Name Here.ppt I think it means that the boundaries of IT have changed. We ’re entering a new paradigm where the infrastructure is being abstracted, making services available anytime, anywhere, and from any device. So really, the location of the infrastructure becomes irrelevant. And this is happening because there is an ‘industrialization’ or standardization of services taking place that enables scale and the application of best practices in a repeatable way. You might hear this called “Cloud computing”. Now, in order to keep up, we need to evolve IT service delivery as well. Organizations will have to source business and IT services from outside of their enterprise -- bringing a new meaning to the concept of a “business without limits”. This means that organizations will need to understand the special considerations of service delivery in this new environment  and make the right choices, based on tradeoffs of risk, reward, control, and so on. [Switch Image] 07/06/12 17:06 07/06/12
  • IBM PULSE 2012 File Name Here.ppt So, the next generation of services will be driven by new application models that are “born on the cloud” – such as massively scalable analytics tools which will free employees to be more productive, more expert, and more specialized. We ’ll also see enterprises transform traditional services such as ERP and HR into standardized and optimized services  supported by new, resilient cloud infrastructures. And the sourcing of services will be “smart” and based on analytics  meaning, the resources in your IT Supply Chain will reside where they make the most sense for that workload. Even maintenance services – the oldest form of IT services there is -- will morph from recovery to “smart” prediction and prevention. 07/06/12 17:06 07/06/12
  • Now, as we developed our cloud offerings and capabilities, we knew that we had to think through the issues that you and other clients will face. So we built a cloud platform that responds to the complex challenges associated with service management, security, governance, and other enterprise considerations. We built a platform that supports the unique requirements of our clients. Based on our proven Cloud Reference Architecture, the IBM SmartCloud provides a platform for running “everything as a service”… Whether it is providing you a base infrastructure or running your key business processes. The IBM SmartCloud is built to maximize service delivery and economics through choices relative to management, support and deployment, security and isolation, availability and performance, technology platform and payment and billings – you, the client, have unprecedented levels of definition to support the variety of workloads that you will design, migrate and deploy on the cloud. The initial offerings were centered on the Infrastructure as a Service layer. Enterprise – With rapid access via the internet – is ideal for developing and deploying new application designs. This environment provides instant access to standard server configurations, and a catalog of IBM and partner software. In addition it provides an hourly pay-per-use model and the most advanced administrative functions in the industry. Enterprise + - Is a true production cloud for our clients ’ most critical applications whether it is the migration of complex ERP applications or running higher availability, data intensive workloads. The Enterprise+ platform provides for a fully managed cloud deployment model ensuring enterprise class service delivery. It provides the SLA and levels of isolation needed from other cloud environments. Now, an interesting note is that we ’re using the Enterprise+ platform internally to expand our hosting services capabilities. We will begin transitioning our legacy eBusiness Hosting and Applications on Demand lines to Enterprise+ because we also believe that this platform will provide us with delivery benefits and enhanced features for our clients.
  • We ’re excited about this offering and this that it will have unique benefits for lots of different job roles. Our Application Services offering is going to enhance the business value end-to-end from development to deployment to delivery and even with integration with legacy or other cloud environments. For CIOs, I think you ’ll like the enterprise–grade security, open standards, cross-platform support with no vendor lock-in, and a comprehensive set of application infrastructure and managed services to enable development and deployment of applications to the cloud. In particular, CIOs will want to deploy these capabilities to transform some of their key enterprise applications, like SAP, by moving them to the cloud. This will provide the combination of attributes sought by enterprises: the economies and agility of cloud while still retaining the ability to customize key applications that helps drive differentiation for the organization. Application Developer Managers will like the flexible and scalable application development environment that allows clients to quickly begin programming in the cloud, leveraging a suite of hosted application-development tools, to develop, deploy, manage and integrate releases of application coding, all without any up-front investment. Application / Operations Managers will appreciate the reduction in application deployment costs, while also accelerating the time to value and increasing the quality and consistency of these applications. Finally, ISVs will leverage these platform services to move their applications to the cloud, delivered in a software as a service model. This shift will help ISVs change their business model, accessing new customers and markets while changing the economics of their go-to-market model.
  • So, to close on our service delivery platform, I want to highlight that our basis of differentiation in the cloud marketplace is rooted in our development and deployment of a single IBM-wide platform, which has been name IBM SmartCloud. And on top of the infrastructure and platform layers, we’ll be able to provide a variety of managed services from both IBM and our ecosystem of partners. The SmartCloud platform will host industry solutions that IBM Software Group is building out around Smarter Commerce and Social Business as well as additional Software as a Service capabilities from our acquisition companies. Finally, the beauty of the IBM SmartCloud platform is that it can either be delivered as a managed service or clients can take the architectural design and we can build a private cloud for them.
  • Now, we know that your legacy environments are not going away, so setting up a hybrid environment is fundamental. But you must manage, migrate and integrate workload and applications. And we have expert migration services to eliminate the risk of moving critical applications and workloads to the SmartCloud. We start by verifying clients’ workloads and profiling them by migration complexity. Many clients have tried migrating simple workloads such as email and web applications to cloud. But the question becomes “how can we successfully migrate not only easy workloads, but also a complex workload,” to a cloud? So we use an IBM Research-developed analytics tool to help produce a more detailed, quantitative analysis of both business applications and infrastructure components. And using this tool, we can provide clients with the detailed information needed to make educated decisions about the most suitable workloads to migrate to a cloud. We can help organizations reduce their analysis time by up to 66%. And ultimately, applying our methods and tools can set clients up for a faster implementation of cloud technology to reduce costs and improve service delivery. And we’re leveraging these same migration tools in our own business as we transition our hosting business to the SmartCloud platform. [Switch Image]
  • Transcript

    • 1. Mike McCarthy – Vice President, Cloud Computing Global Technology ServicesMay 31, 2012 Accelerate Time to Market with Next Generation Cloud Platforms © 2009 IBM Corporation
    • 2. Cloud is widely recognized as an increasingly important technology;adoption is expected to accelerate rapidly in the coming years What is Your Organization’s Level of The Global Cloud Computing Market is Cloud Adoption? Forecast to Grow 22% per year through 2020 % of Respondents 91% $250B $241B Piloting 21% 72% $200B $150B Adopting $150B 38% 28% +33% $100B Substantially 21% Implemented $50B 41% +215% $41B 13% $0B Today 3 yrs 2011 2015 2020 Source: Sizing the cloud, Forrester Research, Inc., April 21, 2011 Nearly half (48%) of CIOs surveyed evaluate cloud options first, over traditional IT approaches, before making any new IT investments Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organisation’s level of cloud technology adoption today and which do you expect will best describe it in three years? Sizing the cloud , Forrester Research, April 21, 2011; July 6, 2012 IBM Confidential © 2009 IBM Corporation
    • 3. Customer expectations, competitive forces, andthe changing economics of computing are placinggreater pressure on businesses and IT Accelerated delivery of products and services 9B connected devices in the world today* Customer-driven innovation 50% 56% of customers demand increased self-service capabilities for direct and instant access of surveyed enterprise IT budgets in 2011 were spent on Globalization of value chains ongoing operations and maintenance 16 Trillion US dollars of global exports in 2010 costs.** Increasing data demands **Source: Forrester Research, Inc. "201210x growth in digital data from 2007 to 2011. IT Budget Planning Guide For CIOs," October 27, 2011 by Craig Symons © 2012 IBM Corporation © 2009 IBM Corporation * Source: GSMA
    • 4. Cloud is a solution that appeals to both IT and Business Rethink IT. • Rapidly deliver services • Integrate services across cloud environments • Increase efficiency TransformationEfficiency Reinvent business. • Initiate new revenue streams • Drive faster time to market for new services • Meet changing customer expectations Source: Gartner, Cloud Computing Services, Virtualization Top CIO 2011 Wish Lists Jan 24 2011 © 2009 IBM Corporation
    • 5. In addition to enhancing internal efficiencies, organizations clearlyintend for cloud to improve their business capabilities How Important are the Following Objectives for Adopting Cloud? % of Respondents Increased collaboration with external partners 62% Competitive/cost advantages thru vertical integration 57% New delivery channels/markets 56% New/enhanced revenue streams 54% Competitive differentiation thru specialization 51% Rebalanced mix of products/services 46% Flexible pricing models 43% Source: 2011 IBM/EIU Cloud Survey Results, Q5: How Important are the Following Objectives for Adopting Cloud?, n= 5725 © 2009 IBM Corporation
    • 6. Cloud helps business and IT create and deliver value infundamentally new waysBuild enduring customer Deliver IT without boundariesrelationships Unlock the value of new IT andGain customer insight and use it to business processes that break downimprove products and services, traditional silos, simplify access tofostering trust and loyalty among information and connect peopleconstituents. across your ecosystem.Improved speed and dexterity Transform the economics of ITOptimize and accelerate the delivery Speed delivery of new offerings and services with new models of self-of IT computing resources and service and and serve them with new,flexible business models. © 2009 IBM Corporation
    • 7. Adoption patterns are emerging for successfully beginning andprogressing cloud initiatives Cut IT expense Accelerate time Gain immediate Innovate & complexity to market with access with business through a cloud cloud platform business solutions models by enabled data services on cloud becoming a center cloud service provider7 © 2009 IBM Corporation
    • 8. We categorize cloud capabilities across client deployment models Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design Deploy Consume Cloud Foundation Cloud Services Cloud Solutions Private & Hybrid Clouds Managed Cloud Services Cloud Business Solutions Cloud Enablement Technologies Infrastructure and Platform as a Service Software and Business Process as a Service Expert Integrated Systems8 © 2009 IBM Corporation
    • 9. Organizations often want help managing their cloud environments, butthere are three significant problems in today’s third-party cloud marketplace Cloud is positioned as the answer to all IT Determine right applications to right platform woes – and its not One-size-fits-all Public/private/hybrid cloud mix often needed deployment models Loss of control Management controls and governance critical9 © 2009 IBM Corporation
    • 10. Most clients will require a range of cloud consumption models Private Hybrid Public Cloud Traditional IT10 © 2009 IBM Corporation
    • 11. Cloud services should be designed to meet enterprise needs fortailored cloud architectures, management services and control Application Services Application Application Application Application Integration Lifecycle Resources Environments Management Infrastructure Services Infrastructure Management Availability and Security Payment platform and support performance and billing Enterprise Enterprise Enterprise data center Managed private cloud Hosted private cloud Shared cloud services11 © 2009 IBM Corporation
    • 12. THE of HAVE CHANGED. We’re abstracting making services available from any device.12 © 2009 IBM Corporation
    • 13. THE of services will be by new application models THAT ARE13 © 2009 IBM Corporation
    • 14. Two major application deployment models emerge in cloud adoption + Cloud Enabled Cloud Centric • Scalable • Elastic • Virtualized • Multi-tenant • Automated Lifecycle • Integrated Lifecycle • Heterogeneous Infrastructure • Standardized Infrastructure Existing Emerging Middleware Platform Workloads Workloads Compatibility with existing systems Exploitation of new environments14 © 2009 IBM Corporation
    • 15. A cloud infrastructure platform should allow clients to leverage thecloud with certainty Infrastructure Services An IaaS with enterprise- class governance, administration and Infrastructure Management Availability Security Payment platform and support and and billing management control performance Enterprise Enterprise Enterprise Multiple security and data center A Bisolation options built into the virtual infrastructure Managed private cloud Hosted private cloud Shared cloud services and network Real business-centric Multiple delivery models that allow clients SLAs that align provider to optimize against economics, integration, accountability to your security and control business15 © 2009 IBM Corporation
    • 16. Cloud platforms should enable organizations to leverage the cloud with certainty Infrastructure Services Options Infrastructure Technology dexterity to handle broad spectrum platform of workloads and characteristics Management and Enterprise-class governance, administration and support management control Availability and Broad spectrum of options, with Business-Level performance Service Level Agreements and Terms Multiple security and isolation options built into Security the virtual infrastructure and network Payment and Flexible payment terms aligned to usage, billing platform and services16 © 2009 IBM Corporation
    • 17. Extending the value beyond the infrastructure Traditional Infrastructure Platform Software On-Premises as a Service as a Service as a Service Applications Applications Applications Applications Data Data Data Data Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware O/S O/S O/S O/S Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking Client Manages Vendor Manages in Cloud17 Standardization; OPEX savings; faster time to valueCorporation © 2009 IBM
    • 18. Cloud platforms should extend application development capabilities Application Services Application Application Application Application Integration Lifecycle Resources Environments Management Develop Deploy Deliver Integrate Support for the Enabled by Readily available Ease of full application patterns and best application integration with lifecycle. practices resources. traditional IT & private clouds. CIO, CTO, Application Development Manager, IT Operations Manager, Developer, ISV © 2009 IBM Corporation
    • 19. Rapid access to application services to achieve cloud-based economiesand speed while maintaining differentiation through applicationcustomization Accelerate and optimize the deployment and management of your applications with pre-defined environments based on common application patterns Support effective deployment and Leverage shared services to management of third party reduce the cost and simplify the applications with optimized development, delivery and ongoing deployment and management administration of cloud capabilities tuned to the specific applications application Application Application Application Application Integration Lifecycle Resources Environments Management Application Services Provide development Integrate your cloud-delivered organizations with access to applications with other rapidly activated and team-based applications or resources on- development environments and premises or in the cloud capabilities © 2009 IBM Corporation
    • 20. Next generation cloud platforms should enable business innovationand growth A set of infrastructure services and solutions A set of business solutions that leverage industry coupled with architecture, integration and and process skills including migration of existing implementation skills hosted business applications The choice Client Defined Provider Partner An ecosystem Services Services Servicesand control to of ISVsenable clients leveraging the Application Services to develop, provider cloud deploy and platform for manage Application Application Application Application Integration running their custom Lifecycle Resources Environments Management business services Infrastructure Services Infrastructure Managemen Availability and Security Payment platform t performance and billing and support Enterprise Enterprise Enterprise data center A B Managed private cloud Hosted private cloud Shared cloud services20 © 2009 IBM Corporation
    • 21. A strong cloud ecosystem will enhance overall value to clients… Cloud Application Providers Cloud Services Solution Providers Client Industry Workplace Resilience Partner defined services Data and Security Enterprise services services Analytics Apps Application Services Cloud Technology providers Enterprise Enterprise + Cloud Infrastructure Providers Enterprise Enterprise Enterprise data center A B Managed private cloud Hosted private cloud Shared cloud services Cloud Builders21 © 2009 IBM Corporation
    • 22. Cloud platform providers should be committed to cloud standards and open source initiatives • Provide customer-lead guidance to the multiple cloud standards- defining bodies • Establishing the criteria for open- standards-based cloud computing • 330+ Companies Participating “CSCC Forms New Security Working Group” - Feb. 2012 Co-chaired by The Kroger Co. and Boeing “CSCC Forms New SLA Group” - Feb. 2012 Co-chaired by Boeing & IBM22 © 2009 IBM Corporation
    • 23. Migration of traditional applications to cloud takes a thoughtfuland experienced approach Step 1 Step 2 Step 3 Step 4 Inventory Transformation Transformation Implementation Verification Planning Design / Test Wave Strategy Rapid Migration i Client’s Infrastructure Re-platform Cloud i i Reinstallation Factory Lines Tools + Innovation23 © 2009 IBM Corporation
    • 24. In summary...• Organizations are increasingly adopting cloud as an enabler for business innovation.• Two major application deployment models emerge in cloud adoption – cloud enabled & cloud centric.• Next generation cloud platforms are: • Providing new levels of access, performance, visibility, integration, and security. • Helping organizations accelerate the speed and deployment of new applications. • Enabling business innovation and growth.24 © 2009 IBM Corporation
    • 25. Thank You! of Fortune 500 companies are using IBM cloud capabilities.25 © 2009 IBM Corporation