Learn about how cloud computing has accelerated IBM’s ability to innovate and do so in ways that improve how
Learn about how cloud computing has accelerated IBM’s ability to innovate and do so in ways that improve how
IBM delivers services and support. In short, it has become a catalyst
for business transformation at IBM.
1. IBM Office of the CIO March 2012Thought Leadership White PaperSuccess in the cloud:Why workload mattersObservations from IBM’s own cloud transformation
2. 2 Success in the cloud: Why workload mattersContents With the implementation of cloud computing internally, across six fundamental IT workloads—development and test, analytics, 2 Executive summary storage, collaboration, desktop and production application 3 Introduction workloads—we have witnessed striking improvements in efficiency while capturing some impressive savings in capital 3 IBM’s impetus for adopting cloud and operations. Consider that: 3 The importance of workload selection ●● IBM development teams have seen server provisioning and 5 Cloud’s biggest impact at IBM configuration drop from five days or longer to as little as one hour. IBM’s development and test cloud has virtually elimi- 9 IBM’s other successful workload migrations nated IBM’s testing backlog, speeding new development and11 Cloud’s role in reinventing IBM’s business enabling applications to reach the market sooner. ●● IBM’s analytics cloud put an end to siloed business intelligence11 Conclusion (BI) and the six-figure funding required for new BI projects.12 For more information Organizations across IBM are tapping into a centralized analytics cloud for tools and intelligence aggregated from hundreds of information warehouses. The associated savingsExecutive summary are expected to reach tens of millions over five years.Like other performance-driven companies, IBM is continuously ●● IBM’s block storage cloud cut the cost-per-byte of data storedchallenged by stakeholders to drive new revenue opportunities by nearly 50 percent at one of the first IBM facilities in whichand efficiencies while lowering costs. As such, cloud computing it was implemented. This has allowed the facility to accommo-with its widely-touted benefits made a convincing case for adop- date the explosive growth in storage demand—upwards oftion. And the technology model has lived up to expectations. By 25 percent annually—without increasing its total storageproviding a platform to standardize and automate key business budget, and it is expected to do so for four straight years.applications, cloud has enabled dramatic reductions in IBM’s ITsupport costs and major improvements in workplace efficiency Through these and other internal cloud implementations,and resource use. More than that, cloud computing has accelerat- IBM is seeing firsthand the impact that cloud can have on theed IBM’s ability to innovate and do so in ways that improve how business. There is little question about cloud computing’s poten-we deliver services and support. In short, it has become a catalyst tial to drive efficiency and lower costs. But the workloads a com-for business transformation at IBM. pany selects for migration to the cloud and their affinity for the attributes inherent in the cloud model have a lot to do with cloud’s success as a transformative tool for the business.
3. IBM Office of the CIO 3Introduction IBM’s impetus for adopting cloudIBM’s IT leaders viewed cloud computing as an opportunity to IBM’s intent in adopting cloud was not unlike any otherradically simplify aspects of an IT operation that had grown business. With its sizeable prospects for controlling IT costs,complex and less productive. Based on our own cloud research accelerating new capabilities and delivering as a service every-and years experimenting with similar technology models, we thing from infrastructure resources to business processes, cloudunderstood the potential. Cloud could help IBM’s development had the potential to radically change the economics of IT. Itand testing teams provision their own server and storage capac- could drive up the value that IT provides to the business whileity without week-long delays or involvement from system lowering capital and operational costs. Cloud also offered theadministrators. Cloud could help us move employees from a means to deliver on the increasing demands of IBM employees,resource-straining traditional desktop environment to a virtual business partners and customers who have come to expect a newdesktop environment, facilitating new deployments, upgrades standard of service.and end-user support. Cloud could facilitate online collaborationamong IBM’s global workforce, making it easier for employees More importantly, these cloud-enabled cost and operationalto interact, share ideas and innovate with clients, business efficiencies had the potential to transform IBM’s business, notpartners and each other. just in how IT resources and services were delivered, but in how IBM conducted business with clients and partners around theCloud has succeeded in doing all of these things, but much has globe. Cloud provided the innovative and collaborative platformbeen learned along the way. As with any new technology, cloud and the computing flexibility to reinvent business at IBM.is best deployed in the right circumstances and with the rightworkloads. One of the most significant determinants of success The importance of workload selectionin moving to the cloud is the careful selection of those work- Cloud computing has captured the attention of technology andloads. Some workloads are simply a better match for cloud business leaders alike, but the actual value it delivers to thecomputing, with more to gain from cloud’s intrinsic features. organization varies with the application. When applied to the right workloads, cloud can deliver game-changing value. WhenThis paper shares IBM’s observations and recommendations applied to the wrong workloads, cloud’s value over traditionalwith respect to workload affinity for cloud computing. It delivery models can be diminished or lost altogether.describes the quantitative and qualitative value that IBM hasachieved with six common IT workloads. And while each of In selecting workloads for cloud, it is important to consider thethese workloads has benefitted from the cloud, they have soft, intangible benefits as well as the more visible and easilybenefitted in different ways and to different degrees. Three quantifiable benefits. After all, intangibles like customer satisfac-workloads, development and test, analytics, and storage have tion and quality of service are often significant elements of cloudproduced the most stunning results to date. They have trans- value. For some workloads, they may represent the lion’s shareformed the way whole groups of IBM users do their jobs, of the value delivered.enabling them to speed new development and uncover newsources of revenue, among other things. The results achieved Clearly, some workloads have more to gain from a move to thewith the other workloads, though not as pronounced, have been cloud. This is often because they have a greater affinity for thevery promising so far. As of this writing, they are still evolving attributes inherent in the cloud model. They align with the stan-and will continue to do so as their respective implementations dardization, virtualization, automation and level of managementmature.
4. 4 Success in the cloud: Why workload mattersand hardware support that a cloud service provides. Theseworkloads can operate easily in a virtualized, automated cloudenvironment, where the infrastructure makes it possible to High Collaborationdynamically request services from a virtualized pool of hardwareand then automatically provision the required software stack and Development/ testresource capacity. Analytics Self-serve applicationWorkloads with the greatest affinity for cloud may be those development Storagethat are an excellent fit in terms of their potential gain and ease environmentof deployment. These workloads require little to no customiza-tion because they can work with and benefit from the cloud’s Gain Complex/critical Simple/non-critical production production WebMailstandard catalog services. Figure 1 illustrates how several (hosted)common IT workloads fare on these two measures, based onIBM’s research and experience with our own cloud implementa-tions. In general, the workloads that appear in the upper right Complex ERP Complex/criticalquadrant have proven to be the best fit for cloud computing. production (virtualized) LowWorkloads must be carefully analyzed to weigh potential gainsagainst how easily they can be deployed in the cloud, whetherpublic, private or hybrid. The fact is not every workload is the Deployment easesame in terms of its importance and cost to the organization, and Low Highthis can affect its outcome in the cloud. Some of the most criticalworkloads are so costly to the organization financially and opera- Figure 1. Workload affinity for cloud computing. Potential for gain andtionally that a move to the cloud has the potential to provide deployment ease are two key factors in the determination of a workload’s affinity for and prospective success in the cloud.considerable benefit. Other workloads may be so highly opti-mized already that there is little to be gained from such a move. Similarly, legacy and heterogeneous applications, and workloadsWorkloads that are unusually complex may offer big potential that involve a high amount of data transfer, may be difficult tofor improvement, but they may require a high degree of custom- deploy in the cloud, relative to their anticipated gain.ization or application redesign to conform to the cloud’s archi-tecture. These kinds of workloads can prove too difficult, By contrast, self-contained applications may be easy to deployrisky or costly to move to the cloud. Certainly, the risk/reward but only offer moderate gains. Other workloads may be viewedprofile of any workload should be clearly understood before it as a good fit for cloud deployment simply because they pose lit-is deployed in the cloud. Consider complex ERP (enterprise tle risk to the organization from a security or other standpoint.resource planning) applications. The mission-critical nature of This is the case with collaboration workloads, for which there isthese production workloads raises the risk associated with cloud little to lose and much to be gained from a move to the cloud.deployment, in some cases, far outweighing the potential gains.
5. IBM Office of the CIO 5In IBM’s own cloud experience, we have seen each of these risk/ Implementing the development and test cloud enabledreward scenarios play out. But with cloud computing technolo- the IT organization to overcome these issues. It providedgies and practices continuing to advance, the risk/reward profiles infrastructure-as-a-service (virtualized server, storage, operatingassociated with most cloud workloads are likely to improve. system and middleware) capability in support of the teams that develop most of IBM’s internal applications. It enabled IT toThe remainder of this paper looks at the six internal IT expand these resources on demand, making new server imagesworkloads that IBM migrated to private IBM clouds, starting available as provisioning requests were made.with the three that have had the greatest business impact todate — development and test, analytics and storage — followed With the cloud, development and test teams saw their serverby collaboration, desktop and production application workloads. provisioning and setup time drop from five days to as little asFor all six, the paper explains why IBM elected to move to the one hour. Instead of tapping systems administrators to manuallycloud and the benefits of doing so. provision needed resources, they could provision resources automatically and independently using a cloud service catalogCloud’s biggest impact at IBM containing standard operating system and middleware images.IBM’s greatest cloud computing gains to date have come from The catalog is regularly updated with new images to meet usermigrating workloads that impacted the efficiency of key groups demand, and it simplifies chargeback with automated usageof employees and ultimately IBM’s ability to innovate. These metering and billing.workloads really stood to benefit from the change operationally,but also economically. On the one hand, they provided the most The images provide the standard build for the test environment.opportunity for transformative improvement. On the other, they Since developers are no longer responsible for the builds, thewere tailor-made for the elastic resource allocation, provisioning risk of defects resulting from incorrectly configured test environ-speed, extreme transaction processing and self-service automa- ments (which stood at 30 percent prior to cloud) has lessenedtion that are synonymous with cloud. significantly. The cloud not only lifted the configuration burden from developers, it helped ensure the quality of their testDevelopment and test workloads environments.IBM’s IT organization knew that cloud offered a better wayfor internal development teams to build and manage their test IBM’s hosting support team also benefitted from the develop-environments. After all, 30 to 50 percent of all IBM servers were ment and test cloud. They were able to realize substantial costtypically dedicated to test, and most were running at less than savings resulting from the cloud’s self-service and automation10 percent utilization. When developers requested access to the features, which lowered users’ need for assistance. The cloudservers, they could expect to wait up to a week. So it was not gave them considerably more time to focus on activities thatsurprising that these teams would hold on to these resources would lead to growth, new clients and innovations in technologywhen they were finally able to secure them, rather than releasing and services.them for the gaps of time they weren’t in use. The testingbacklog created by this and other provisioning challenges had Following cloud deployment, the initial projection was for abecome the single biggest factor in the delay of IBM’s new 50/50 split between cloud-based self-provisioning and traditionalapplication deployments. manual provisioning requests. However, from the day the cloud- based option was introduced, it has been embraced by the IBM development community, with the large majority choosing
6. 6 Success in the cloud: Why workload mattersto go with the cloud. Today more than 95 percent of server company, each with over 100 users, and running across moreprovisioning and de-provisioning requests are made via the than 300 data sources. In addition, an estimated 50 to 75 percentcloud, where it is available. This is a testament to the speed, of new BI projects were not being co-located.ease of use and streamlined process made possible by the cloud. The lack of global data standards, systems and practices forFurthermore, de-provisioning requests are much higher with the IBM’s BI projects resulted in massive duplication of effort andcloud than they were with the manual provisioning process. costly maintenance and support. And with the majority of BIClearly this is a function of the cloud’s ability to respond to tools deployed on individual desktops, it became difficult toprovisioning requests in a matter of hours. Developers are now share BI content effectively. Conflicting content also raisedconfident that capacity and resources can be acquired as needed, questions about the integrity of metrics and data sources.so they are more inclined to release these resources when they IBM estimated that each independent BI team and infrastructureare not in use. Moreover, because resources become available required a minimum six-figure investment. This reduced thesooner, the cloud can support more users with fewer physical overall number of BI initiatives that could be funded.resources than would be needed in a traditional hostedenvironment—a direct cost savings. As many as 50 new and sizeable BI installations were on the drawing board when IBM’s internal business analytics cloud, Blue Insight, was deployed. Blue Insight offered a way to: IBM Development and Test Cloud benefits summary • Resource provisioning reduced to as little as 1 hour from ●● Standardize IBM’s BI tools, consolidating and centralizing 5 days or longer current analytics capabilities to achieve greater economies • More efficient resource utilization through higher virtualization of scale ●● Deliver analytics as a utility-like service at a cost that would • Increased availability of system resources as developers are more likely to de-provision images sooner make the capability universally accessible, while eliminating capital and maintenance costs for participating business units • Reduced labor spent building and supporting development and test ●● Democratize data and insights for the purpose of making the environments and deploying associated middleware intelligence available across the enterprise, while preserving • Standard builds, reducing defects and the costs of custom individual business units’ content ownership configurations ●● Provide the infrastructure elasticity to expand IBM’s BI applications and users as rapidly as the business dictates.Analytics workloads Blue Insight’s power comes from its ability to draw insightsKnowing the extent to which critical business insight improves from hundreds of information warehouses and data stores acrossdecision-making and provides significant competitive advantage, IBM and generate analytics on more than a petabyte (one mil-IBM was heavily invested in business intelligence (BI) projects lion gigabytes) of data. By turning raw data into intelligence forenterprisewide. However, these BI applications were being our sales, marketing and development communities, IBM is ablebuilt separately and autonomously by individual business units, to deliver more value, more quickly and cost-effectively in thecreating silos of business intelligence. More than 100 different solutions and services we offer to clients.instances with multiproduct BI tools were being used across the
7. IBM Office of the CIO 7 IBM Blue Insight benefits summary • Standardized business intelligence and analytics capabilities, Senior Fulﬁllment delivered as a service Executives HR Finance Product • Expected savings in the tens of millions over five years Sales and Development Marketing • Elimination of duplicate applications and infrastructures for different analytics requirements • Data and report ownership retained by participating business units • Powerful, highly elastic infrastructure, enabling more rapid deploy- ment of BI capabilities Blue Insight Boarded analytics applications • Ubiquitous user access to enterprise insights and intelligence Inquiries Intelligence • Usage-based subscription model, stretching BI budgets farther and covering more users Raw data • Greater flexibility of the BI skilled workforce • Simpler enforcement of corporate and regulatory standards Hundreds of information warehouses Today 200,000 IBM employees access the analytics-based software-as-a-service capability for more than 500 boardedFigure 2: Centralized business intelligence delivered as a service. Blue applications. The subscription-based pricing model enables par-Insight makes high-quality business intelligence easily consumable, splicing ticipating IBM departments to stretch their BI budgets farthertogether and analyzing critical data from hundreds of sources while enablingIBM user groups to retain ownership of their BI applications. and cover more users. Managers can focus on using analytics to solve the day’s business problems and do critical forecasting without worrying about affordability.IBM sales teams are using Blue Insight to gain a deeperunderstanding of each client’s needs, not just for their own For IBM as a whole, the financial benefit continues to beIBM product group or region, but for all IBM products and dramatic. Over five years, Blue Insight is expected to save tensservices worldwide. IBM’s product development teams are using of millions of dollars through its multitenant infrastructureBlue Insight to analyze sales information, industry trends and (including middleware and IBM Cognos® software); commoncustomer perceptions more efficiently and to adjust their operational support and management, service definitions andproduct planning and development specifications accordingly. boarding process; standard security; automated provisioning andFigure 2 illustrates how Blue Insight is used by these and other administration; reduction in custom BI applications and dis-IBM groups. placement of third-party analytics software licenses. While the immediate, tangible savings are important, the real value to IBM will continue to come from expense avoidance for new BI projects and from the business insights gained.
8. 8 Success in the cloud: Why workload matters to the cloud, we have been able to virtualize storage resources toBlue Insight transforms IBM Treasury Operations slow the demand for new storage and drive higher utilization rates. We have also lowered labor costs through the automationIBM Treasury Operations conducts business from multiple of storage management functions.locations around the world. Prior to Blue Insight, bank-relateddata was gathered and analyzed independently at each Today 75 percent of IBM’s internal file storage (about 1 pet-location. There was no way for Treasury employees to access abyte) is provided through a global storage architecture cloud,common global data, and their ability to perform ad hoc which acts as a general parallel file system, enabling employeesinquiries and reporting was limited. to share data, make backups and manage their storage needs with self-service capabilities. The global file storage cloud wasBlue Insight enabled the deployment of Treasury Workstation, really IBM’s first cloud, exuding the characteristics of clouda single gateway for all banking communications via a before the technology came to be defined. It provides elasticcommon data warehouse. With centralized global treasuryoperations and a uniform source for data, IBM’s financial capacity, advanced virtualization and data replication for cost-teams can create the standard and ad hoc reports needed effective business continuity and disaster recovery. It is currentlyfor global data analysis. They have the global visibility to accessed by more than 130,000 users and many of IBM’s internalunderstand counterparty limits and exposures and to perform applications.cash forecasting and treasury position analysis—tasks thatwere too complex and time-consuming to perform before. IBM’s block storage cloud builds on the success of our global file storage cloud, leveraging similar storage automation functions to address demand while containing costs. With block storage rep- resenting 9 petabytes of IBM’s internal storage inventory, it isStorage workloads our predominate class of operational storage. Understandably,Even with IBM’s 10 petabytes of operational storage, skyrocket- cost-effective scalability is critical.ing data volumes are necessitating increased storage capacity,better utilization of storage resources and automated tools to In 2010, we began work to transform IBM’s Managed Storagemanage it all. Like many of our clients, IBM is experiencing a Services, our on demand storage offering, into a block storage25 percent annual growth rate in internal storage. While it is not cloud with automated provisioning and storage tiering. Thepossible to stop the escalating demand for storage (due in large smarter information lifecycle management (SmarterILM)part to the rising use of mobile devices, social media and rich capabilities inherent in the block storage cloud automate themedia like voice and video), storage clouds make it possible to placement of data on drives in appropriate tiers—in many cases,lower the cost per unit, or byte, of storage appreciably. These lower cost tiers. Using an advanced block storage subsystem,clouds can significantly offset the increased cost associated with SmarterILM dynamically assigns each type of data to its optimalsoaring data volume. storage tier based on established cost/benefit profiles. It enables IBM to achieve the best balance of storage cost and performanceFor IBM, it became increasingly apparent that traditional stor- at any point in time and, in so doing, enables us to realize aage solutions lacked the crucial scalability needed to serve our much lower cost-per-byte of storage.large end-user communities. By moving internal storage capacity
9. IBM Office of the CIO 9That lower rate is already a key factor in IBM’s ability to handle IBM’s other successful workloadthe exploding growth in storage demand, as well as the total cost migrationsassociated with that demand. Current projections indicate that IBM’s IT organization is in various stages of migrating threeeven with 25 percent growth in storage volume each year, other common workloads to the cloud. Like the storage,IBM’s cost for block storage should remain flat through 2015, analytics, and development and test workloads, these workloadswherever SmarterILM-managed storage is used. Put another have a strong affinity for the cloud’s attributes. As a result, theyway, in 2015 IBM expects to pay the same amount that we paid are proving to be a good fit for cloud, with very positive resultsfor our storage inventory in 2011, but for approximately so far.2.5 times more storage volume than we had in 2011. Collaboration workloadsSo far, where IBM’s block storage cloud has been implemented, While IBM employees have used desktop-installed web confer-results have been striking in terms of savings, performance and encing capabilities for years, moving this function to the clouddeployment speed. By the end of 2011, 90 percent of the inter- simplified access, allowing our global workforce to collaboratenal virtualized storage at one of IBM’s major U.S. data centers securely regardless of device or location. Usage escalatedwas already leveraging the block storage cloud, exceeding expec- drastically. In one year, the number of meeting minutes nearlytations for deployment. What’s more, the cost-per-byte of stor- doubled (from 145 million in 2009 to 275 million in 2010).age dropped nearly 50 percent, enabling IBM to mitigate the Currently 85 percent of IBM’s web conferencing minutes—overincreasing costs of volume growth at that location. 300 million in 2011—are provided through IBM SmartCloud for Social Business, which has reduced costs and increased user productivity by providing cloud-based access to robust confer- IBM Storage Cloud benefits summary encing capabilities. • Overall savings of 30 to 40 percent for internal block storage • Nearly 50 percent reduction in the cost-per-byte of block storage, IBM has also moved online meeting and event support to the offsetting the rising cost of volume growth cloud. IBM SmartCloud Engage provides cloud-based access to • Inherent scalability to accommodate skyrocketing capacity a variety of business tools and services that facilitate online demands while controlling costs events, including meeting invitations, notifications, real-time meeting management and feedback surveys. The sharing feature • Automated storage tiering, dynamically moving data to alternate allows tens of thousands of registered users to share select docu- tiers to optimize cost and performance ments, applications and activities—or their entire desktop—with • Better storage performance via elastic capacity, advanced fellow employees or clients. virtualization and data replication for cost-effective business continuity and recovery Desktop workloads Desktop clouds centralize the administration and management of end user desktops, facilitating the virtualization of desktopOverall, IBM’s block storage cloud is projected to save applications and data using thin clients. IBM is in the early30 to 40 percent in storage infrastructure and management costs. stages of desktop cloud deployment, with thousands of
10. 10 Success in the cloud: Why workload mattersproduction users accessing a private desktop cloud in access and other vulnerabilities are of strong concern.IBM’s China Development Lab and a considerable number of Conversely, a desktop cloud may not be a good choice for usercall center users accessing a desktop cloud in the U.S. and India. segments that require lots of custom software and device drivers and whose thin clients are not highly standardized.While IBM’s desktop clouds have simplified desktop administra-tion and management and improved desktop security across the By understanding end users’ roles, usage patterns and businessenterprise, IBM has learned that the key to deriving value from requirements, it is possible to segment users and to deploydesktop cloud is choosing the right user population and pairing desktop cloud where it will achieve the most success.it with the right reference architecture. There is much to begained, for example, from a desktop cloud that supports call Production application workloadscenter personnel who provide very basic help desk services IBM’s production application cloud was implemented to reducebecause it allows a simple desktop cloud implementation and the cost of managing our internal application portfolio. Its initialavoids having to support and pay for desktop image persistence. implementation was designed to provide low-cost infrastructure-A desktop cloud also allows for increased security at a lower cost, as-a-service capacity for IBM’s non-critical applications, whichso it is a good choice for user segments where unauthorized have lesser service level requirements for availability and support, and as such, are deemed low-risk. Potential applications were identified for the initial productionBroadening cloud use across the IBM ecosystem cloud implementation, and the first of those have been migrated. Not unexpectedly, however, many of IBM’s legacy applicationsIBM’s Self Service Application Environment (SSAe) project is have been found to be unsuitable for cloud. In some cases, thesehelping cloud computing take a giant leap forward among the production workloads have already been sufficiently optimizedIBM user community. Cloud-based SSAe leveragesIBM’s extensive collection of application assets, standardizes for their current environments, reducing the need for optimiza-them and makes them available to employees across the tion in the cloud. Others are encumbered by manually adminis-enterprise at a predictable, affordable rate. In so doing, it tered controls and compliance checks that limit what the cloudencourages IBM’s lines of business to tap into the cloud to can do to improve current production speeds and outcomes.easily create, alter and retire applications. Unlike new applications which are being designed to run in theInstead of expending the time and resources to develop new cloud, older applications are often not flexible enough to deriveapplications, users can download desired applications from meaningful benefits from the cloud. They can take advantage ofthe cloud’s self-service catalog and get them up and running cloud’s rapid provisioning, for example, but cannot bypass cur-without IT involvement. Support is available if it is needed, but rent manually administered controls that slow production con-no application development skills are required. SSAe provides siderably. For that reason, many of IBM’s legacy applications arethe tools to simplify the building and dissemination of a varietyof applications. And because these applications are comple- being examined in the context of the cloud environment tomentary to IBM’s cloud-based information access frameworks determine what it will take to bring the two together cost-like Blue Insight, users can benefit from the analytics, innova- effectively. Similarly, IBM is looking at ways to automate thetive solutions and problem solving their fellow employees are manual processes that are inhibiting applications’ successfulworking on globally. move to the cloud.
11. IBM Office of the CIO 11In the near-term, IBM’s goal is to migrate as many non-critical This transformative experience has been seminal to the develop-applications as possible from their traditional hosting environ- ment of the IBM SmartCloud portfolio of next-generation cloudments to the production cloud, refining the platform as our technologies, services and solutions. The IBM SmartCloudmaturity increases in this area. More critical production portfolio leverages the same foundational technologies used inapplication workloads are expected to be migrated in the future, IBM’s own cloud implementations as well as client implementa-informed by our early experiences and the processes and tools tions, and it leverages what we’ve learned in those implementa-developed as part of those experiences. tions, namely the importance of workload affinity and service choice in the deployment of cloud computing. It combines theThe value of IBM’s production application cloud will be realized cost savings of a shared cloud environment with the serviceprimarily through virtualized hosting and lower support costs options more typical of a private environment: security,enabled by increased automation and workload standardization. applications, service levels, management, support services and the like. For the first time, companies are able to tailor theirCloud’s role in reinventing IBM’s business cloud environments to match the requirements of theirOver the last century, IBM has pursued a series of technological workloads.opportunities that have transformed our business and, in manycases, business at large. Cloud computing is proving to be Finally, it’s important to point out that IBM’s ongoing successanother of those opportunities. with cloud computing has a lot to do with our culture. Organizations need to be willing to modify or even jettison theirCloud computing is creating a sea change, not just in how IT existing processes if they are to take advantage of new technolo-resources and services are delivered, but in how the business gies like cloud. IBM has always thrived on technological change.does business. And cloud has proven its potential to marry Our IT organization is often the first testing ground — andsubstantial cost savings and efficiency to business reinvention: proving ground — for new technologies, and cloud is no different. Today cloud is continuing to make its way across the●● Helping IBM integrate information across the operation to IBM ecosystem. It has already had a profound impact on the improve problem response and make smarter business IBM enterprise, but in our view, the transformation has only just decisions begun.●● Enabling work teams to tap into enterprise know-how, resources and applications that were formerly unavailable Conclusion to them economically, technically or geographically Cloud computing has significantly altered the IT landscape at●● Putting powerful customer analytics in the hands of sellers IBM, winning over early adopters with improved productivity and marketers to maximize results from new promotions and and performance, and far exceeding initial expectations for changing market dynamics usage. Its magnetic appeal speaks to the speed, flexibility and●● Helping researchers accomplish in hours what used to take self-service capabilities of the cloud, especially for IBM users weeks: complex data calculations and comparisons, modeling engaged in development and testing, storage and analytics and simulations activities. These user groups can really appreciate cloud’s●● Helping the business bring new and innovative solutions to attributes in the context of their workloads’ unique demands. market faster by facilitating experimentation and collaboration.