Business and IT leaders are seeing significant shifts in the landscape. Globalization continues drive the reality of world markets. Meeting customer needs necessitates new thinking around integration and innovation, and finally, technology is evolving to help meet new business requirements and offer new IT delivery models choices.
Yet we still have significant challenges facing us with the IT infrastructure. Here are some interesting facts that may surprise you: Up to 85% of computing capacity sits idle in distributed computing environments. All of this instrumentation, intelligence, and interconnectedness of devices, people, and nature, is creating an information explosion and storage shipments are soaring. Studies have uncovered that on average, 70 cents out of every IT dollar spent goes to maintaining the current infrastructure versus adding new capabilities On the business side, IT limitations can result in billions of revenue lost due to supply chain inefficiencies, or loss of customers because of security breaches.
As processes become more interrelated and complex, IT will be called on to solve business problems in a more streamlined and cost effective manner. Vucci, with IBM, is helping its customers achieve key goals that will enable their IT to be an enabler of innovation and a catalyst for change rather than a roadblock and inhibitor as it may be today. Doing more with less by reducing capital expenditures and operational expense Reducing risk by ensuring the right levels of security and resiliency Improving the quality of services and lower cost and delivering new services to fuel business growth And enabling new levels of agility to deliver these new services quickly and sieze new opportunities quickly Today we will talk about a model of computing that helps addresses these challenges – cloud computing.
Cloud computing is a new way to deliver IT services, and a new way to consume IT services. It evolved from internet consumer services and is about creating a delivery model that is all about the end user experience, end user control, and end user self-management. In practical business terms, it’s about increasing employee productivity by providing flexible and scalable desktop management or collaboration services from the cloud. Or speeding R&D through a cloud-delivered development and test environment that provides a level of agility and efficiency not possible with traditional IT environments. Companies can build out their own cloud environment, they can purchase a pre-integrated system designed specifically to provide a cloud delivered workload, or they can acquire a cloud delivered workload as a service from a third party. Clients are already seeing significant benefits from this new delivery model. The opportunity for you to provide value in helping clients implement this new model, is what we are going to talk about in this presentation.
I cloud computing really new? Well – Yes and no. It is an evolution of what we have done in the past – a derivative, if you will, of familiar computing models and implementing them in a new consumer-oriented way, delivered via the internet. It is enabled by an a convergence of technologies such as virtualization, dynamic infrastructure, and software-as-a-service. One could say that cloud computing represents the industrialization of IT. Analogies could include: Telcos automate traffic through switches to assure service and lower cost Manufacturers use robotics to improve quality and lower cost Banks use automated teller machines to improve service and lower cost
So what is really different about cloud computing? A traditional enterprise tends to pull together resources and deploy them in support of a business function workload in silos. The resources are dedicated to the workload and are unable to support other workloads when they may be needed. Cloud computing on the other hand utilizes a pooled resources environment that leverages virtualization in order for the physical assets to support multiple workloads. In order to drive efficiency of delivery and to enable self-service, self-management of cloud computing requires standardization of the assets (hw, sw, delivery), standardization of process, as well as automation. This is what delivers a responsive end user experience. Think about how ATMs have changed banking. Before ATM’s, customers would have to go to their own branch (when it was open, mind you), meet with a teller or other banking representative, and conduct various “customized” transactions. To implement ATM’s, banks had to standardize their processes of cash withdrawal, account balance inquiries, transfers, and deposits. Now banks have a much more consumer-oriented way to provide services to their customers that is literally available anywhere, any time. So from the end users point of view cloud computing is elastic in scalability, accessible from any device, anywhere, any time, and, if charged, pay only for what they use during the time they are using it. From a provider’s perspective its about an environment of highly virtualized resources that are location independent and have automated service management to handle provisioning, de-provisioning, change management, security and overall environment controls.
The economics driving cloud computing is realized through a convergence of technologies, combined with a focus on the end user. Virtualization drives higher utilization which lowers capital and operating expenses. Standardization also reduces capital and labor costs, while automation drives enhance user experience and automates many manual tasks to reduce errors and reduce the costs associated with managing an environment. Together these technologies help business do more with less, deliver higher quality services, and enable breakthrough ability while reducing risk. You could implement a cloud without all these elements, but it will not be a cost effective cloud that delivers with stability and enhanced end user self-enablement and self-management.
When it comes to delivering a cloud deployment there is a spectrum of deployment options available for you to choose from. The most common and written about is the public cloud option like Amazon Elastic Compute Cloud (EC2), or Google Apps. These cloud deployments allow any user with a credit card to gain access to the resources. On the other end of the spectrum is a private cloud deployment where all the resources are owned, managed and controlled by the enterprise. And there are gradations in between from third party managed, to third party hosted, to a very common emerging model called “shared cloud services” or “member cloud services.” Here you must be a member to access the services, and they can be made available to you typically in a shared resources option or a dedicated resources option, depending on your needs and configurations. Finally you can merge the options between public and private and create what has been coined a “hybrid cloud”. We believe that there will be strong demand to help companies integrate public cloud services with their existing applications When it comes to deciding which cloud delivery option you want to choose it needs to tailored to the business, the time and money requirements, and the availability of the resources. There is a spectrum of delivery options, and there is no single right way.
In a survey IBM conducted in July 2009, 1,090 IT and LOB decision makers across the world were asked about their plans for cloud deployment, CIOs, IT Managers, and Business leaders were presented with a choice of over 100 different workloads and asked to rate their viability for a cloud delivery. We then asked them to identify whether they would prefer the workload be delivered internal with a private cloud, or would they be willing have it run in a fully shared environment on a public cloud. This chart gives us then the top workloads for each of those delivery types. We found that there is tremendous interest today among clients in private clouds – in both Large Enterprises and the Mid-market. In fact, 64% indicated a preference for private clouds vs. public, and when asked about specific workloads, they reported greater usage or consideration of private clouds for 22 of the 25 workloads surveyed. Clients want to start with something “safe” and under their control, so they are implementing clouds behind their firewalls. We also found there is great interest in public cloud services – especially with smaller clients, but within larger enterprises as well. As clients become more comfortable moving workloads to public clouds, and the portfolio of ISV applications available on the cloud grows, public cloud services will become more and more common. By the way, this will also result in a proliferation of hybrid clouds as clients integrate their private cloud environments with public cloud services. One final note: not all workloads will move to cloud – especially in the early going. Many business critical and custom applications will continue to be deployed through traditional IT infrastructures. Client’s are clearly interested in cloud, so let’s talk a little bit more about the business opportunity for you.
IBM market intelligence estimates that over the next several years there will be a strong demand for cloud-related offerings and services, with a compound revenue growth rate of 26% through 2015. This market growth will be 8 times faster than the non-cloud IT growth… and will become 10% of total IT spend by 2015: doubling from 2010. We look at the market opportunity in 3 major segments: components, infrastructure services, and business services. As this graph shows, a significant part of the growth here is in services, which accounts for over 65% of the opportunity and is growing faster than the hardware and software components that go into building clouds. You need to understand this shift in IT spending and be ready to take advantage of this opportunity.
Plan Phase offers pre-sales services opportunities Build: Resell of components Deliver: Post-sales support and managed services
Progression toward transformation starts with optimizing existing assets/processes and leverages best in class technology at each transition Each step balances improvements in efficiency and effectiveness and can be measured by business returns. An organization can move to cloud systematically taking one step at a time, or they can move right to a public OR private cloud deployment if it aligns best with their strategic vision for the business. As your clients’ IT partner, you are in a unique position to help them understand their options and lay out a roadmap to cloud. Readying the infrastructure requires the implementation of a Dynamic Infrastructure: consolidate your servers and storage, implement virtualization technologies to increase utilization, standardizing processes for operational efficiency, automating procedures for a more flexible delivery and enabling clients for self-service. Then you identify common workloads and set up shared resources, and finally, to achieve a true cloud-enabled environment, clients must be able to provision the workloads in a dynamic fashion.
IBM Innovation Centers: State-of-the-art facilities dedicated to providing Business Partners advanced training & support: Architectural design and implementation consulting Porting, migration and testing services Support for application integration, proof of concepts, validations, scalability testing Cross platform test environments Expertise in the latest technologies SaaS and cloud computing education: https://www-304.ibm.com/jct01005c/isv/spc/events/index.jsp SaaS Enablement Blueprints demonstrate how to solve common technical challenges using IBM technology including: Create Multi-Tenant Apps Enforce Security Implement Compliance, Metering and Billing Provide Tenant Provisioning Ensure Quality of Service ibm.com/isv/marketing/saas/demo_series.html
1) Cloud promises a new approach to IT economics—but also new tradeoffs. -IBM provides clear economic value, based benchmarks and use cases from our base of leading-edge clients. -We help you work through the right mix of delivery models and choices (by workload) to reap the maximum benefit. 2) Business flexibility results from IT flexibility—easy connectivity across a wide infrastructure and ecosystem of partners. -IBM supports industry standards, has over 8 million developers, and provides a platform for open innovation. 3) As businesses look to become more agile, dynamic, and globally integrated, they demand greater speed, control, security and transparency in the way their business is run. -IBM provides Cloud solutions that are completely secure and robust, based on the demanding needs of today’s businesses: rapid provisioning, clear visibility of assets, robust data governance, and seamless mix of delivery models. 4) Enterprise employees are coming to expect a new standard from technology experiences (fueled by their consumer experiences with Google, Amazon, and Apple.) And business leaders are looking to speed up time to market. -From sourcing to usage to maintenance, IBM Cloud solutions are designed to be simple, intuitive, and built based on how people actually work. 5) Our partners & clients do business all over the world, and need solutions that work and are supported in every country and city they touch. -IBM has skills, delivery centers, and a world-wide network of partners in 174 countries. And we have the experience of running a globally integrated enterprise, so we understand what it takes to make a global company run.
Vucci IBM Smart Cloud Presentation
An Introduction to Cloud Computing and IBM’s Cloud Offerings
Agenda <ul><li>Context for Cloud Computing </li></ul><ul><li>What is Cloud Computing? </li></ul><ul><li>Why Cloud Computing? </li></ul><ul><li>Why IBM? </li></ul>
The world is getting smarter – more instrumented, interconnected, intelligent Smart traffic systems Smart water management Smart energy grids Smart healthcare Smart food systems Intelligent oil field technologies Smart regions Smart weather Smart countries Smart supply chains Smart cities Smart retail
We understand that business and IT leaders are facing shifts in the landscape. World markets The rising tide of globalization Customer needs Integration and innovation Technology New requirements and delivery models
But they’re facing limitations in IT infrastructure… 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. 1.5x Explosion of information driving 54% growth in storage shipments every year. 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. 40 billion Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 33% 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible. … that can only be solved with unprecedented levels of integration between systems and software.
IT needs to address these business challenges Reducing risk Ensure the right levels of security and resiliency across all business data and processes Breakthrough agility Increase ability to quickly deliver new services to capitalize on opportunities while containing costs and managing risk Higher quality services Improve quality of services and deliver new services that help the business grow and reduce costs Doing more with less Reduce capital expenditures and operational expenses Cloud computing is one choice of models to address these challenges.
Cloud Computing A new IT consumption and delivery model for businesses Streamlining tasks to improve time and save money Development and Test Business Services Desktop Collaboration Analytics Storage & Archive Infrastructure Speeding research and development Enabling employees Meeting compute demands quickly Managing Information
Is Cloud computing new? Yes and No. Cloud computing is the Industrialization of IT Centralized Computing Client-Server Virtualization Internet Cloud is a derivative of what we have done in the past, and is enabled by a convergence of maturing technologies Cloud Computing
What is different about cloud computing? With cloud computing Without cloud computing <ul><li>Virtualized resources </li></ul><ul><li>Automated deployment of IT resources </li></ul><ul><li>Standardized services </li></ul><ul><li>Location independent </li></ul><ul><li>Rapid scalability </li></ul><ul><li>Self-service </li></ul><ul><li>Software </li></ul><ul><li>Hardware </li></ul><ul><li>Storage </li></ul><ul><li>Networking </li></ul><ul><li>Software </li></ul><ul><li>Hardware </li></ul><ul><li>Storage </li></ul><ul><li>Networking </li></ul><ul><li>Software </li></ul><ul><li>Hardware </li></ul><ul><li>Storage </li></ul><ul><li>Networking </li></ul>
Cloud computing delivers IT & business benefits Automated Faster cycle times Lower support costs Optimized utilization Improved compliance Optimized security End user experience Standardized Easier access Flexible pricing Reuse and share Easier to integrate Virtualized Higher utilization Economy of scale benefits Lower capital expense Lower operating expense Higher quality services Doing more with less Breakthrough agility Reducing risk
There is a spectrum of deployment options for cloud computing Third-party operated Third-party hosted and operated Client data center Client data center Private cloud Hosted private cloud Managed private cloud Client Shared cloud services Client A Client B Public cloud services A Users B Internal/Private Public Hybrid IT capabilities are provided “as a service,” over an intranet, within the client and behind the firewall Internal and external service delivery methods are integrated IT activities / functions are provided “as a service,” over the Internet
Workloads and types of Clouds in-demand today <ul><li>Data mining, text mining, or other analytics </li></ul><ul><li>Security </li></ul><ul><li>Data warehouses or data marts </li></ul><ul><li>Business continuity and disaster recovery </li></ul><ul><li>Test environment infrastructure </li></ul><ul><li>Long-term data archiving/preservation </li></ul><ul><li>Transactional databases </li></ul><ul><li>Industry-specific applications </li></ul><ul><li>ERP applications </li></ul><ul><li>Audio/video/Web conferencing </li></ul><ul><li>Service help desk </li></ul><ul><li>Infrastructure for training and demonstration </li></ul><ul><li>WAN capacity, VOIP Infrastructure </li></ul><ul><li>Desktop </li></ul><ul><li>Test environment infrastructure </li></ul><ul><li>Storage </li></ul><ul><li>Data center network capacity </li></ul><ul><li>Server </li></ul>64% 30% Public Private Note: Not all workloads will move to cloud! Cloud workload preference Top public workloads Top private workloads
<ul><li>Cost - With a cloud-based approach, the amount you spend decreases tremendously as you move from a Purchasing HW/licensing model to a “pay-as-you-go” model </li></ul><ul><li>Efficiency - Moving to a cloud platform will allow you as an organization to become more efficient. Launch new production deployments in 75% less time. Reduce server provisioning time from weeks to minutes </li></ul><ul><li>Elasticity - Clouds are elastic. You can add and remove space to meet the needs of your business. The ability to scale up and down depending on demand is what makes cloud computing so powerful. </li></ul><ul><li>Security - Clouds are secure. Security is one of the biggest barriers of adoption when moving to the cloud. Our Partners use World Class Data Centers, Redundant enterprise class fully managed dedicated firewalls with VPN, SAS70 II compliant, etc. </li></ul><ul><li>It’ s the future - Cloud computing is the future. According to Gartner, cloud services revenue is projected to reach 148.8 billion through 2014. If you move too slowly, your competition could out maneuver you </li></ul>Why do business move to the cloud?
Risk & Compliance 34,000-employee bank deploying a private cloud from IBM to centralize management of desktops via an enterprise class data center rather than at the user stations. Gets greater remote flexibility without sacrificing control. Employee Productivity Enable collaboration across global employees as well as its network of customers, partners and suppliers. IBM LotusLive has 18 million users in 99 countries Analytics & Security Design secure cloud infrastructure capable of supporting active military personnel around the world. Analytics used to detect possible network threats. Time to Value Creates an ecosystem for PayPal 3rd Party developers Reduces developer effort to deploy a work environment with seamless PayPal Test Sandbox access Companies have different motivations for leveraging cloud
Do you have a cloud strategy? Deliver Plan Build <ul><li>Design and construct </li></ul><ul><li>Quality assurance (test) </li></ul><ul><li>Security and compliance </li></ul><ul><li>Lifecycle management </li></ul><ul><li>Understand strategic direction </li></ul><ul><li>Analyze workloads </li></ul><ul><li>Determine delivery model </li></ul><ul><li>Define architecture </li></ul><ul><li>Build the business case </li></ul><ul><li>Deploy </li></ul><ul><li>Consume </li></ul><ul><li>Manage </li></ul><ul><li>Optimize </li></ul>
Vucci with IBM provides a comprehensive set of services to accelerate your cloud journey Consulting and enabling services Experience and expertise to help clients plan, build and deliver cloud services Technologies to plan, build, deliver and manage cloud services Cloud services to optimize your business
Movement from traditional environments to Cloud One Step or an Evolution We’ll help prepare you for the cloud CONSOLIDATE Physical Infrastructure CLOUD Dynamic provisioning for workloads VIRTUALIZE Increase Utilization STANDARDIZE Operational Efficiency AUTOMATE Flexible delivery & Self Service SHARED RESOURCES Common workload profiles Ready the Infrastructure Integrate with existing infrastructure Traditional IT
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What differentiates IBM in making cloud computing real Clear economic value Integrated and open Secure and ready for business Designed for simplicity Globally relevant New economics with new trade-offs Business flexibility results from IT flexibility Demanding greater speed, control, security and transparency New technology experiences with faster time to market Need solutions that work and are supported consistently.
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