Cloud Computing and the Changing IT Model How it impacts project delivery

1. Ric Telford, VP Cloud Services, IBM
December 12th, 2013
Cloud Computing and the Changing
IT Model
How it impacts project delivery

2. So what is Cloud Computing?
Cloud computing is an IT consumption
and delivery model for enabling
convenient, on-demand network
access to a shared pool of
configurable computing resources that
can be rapidly provisioned and
released with minimal management
effort or service provider interaction.
5 key characteristics:
1. On-demand self-service
2. Ubiquitous network access
3. Resource pooling
4. Rapid elasticity
5. Measured Service
Source: 2009 National Institute of Standards and Technology, Information Technology Laboratory
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Usage
Tracking
Virtualization
Elastic
Automation

3. Cloud computing represents the “Industrialization of IT,”
similar to when:
 Telcos automated traffic
through switches to assure
service and lower cost.
 Manufacturers started using
robotics to improve quality
and lower cost.
 Banks built the automated
teller machine network to
improve service and lower
cost.
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4. The need is clear…management costs of today's IT
infrastructure are out of control
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5. Think cloud is just an IT obsession? Business leaders
disagree
Cloud is extremely important to overall business success
LOB’s strategic interest in cloud will soon surpass IT’s and it spans virtually every
area of the business
(finance, operations, sales and marketing, product development).
Today
In three
years
72%
LOB
112% increase
58%
49%
IT
18% increase
34%
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“Cloud” was defined as encompassing application, platform or infrastructure as a service as well as private, public or hybrid delivery models.
Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation
For more info, visit: ibm.com/ibmcai/globalcloudstudy

6. Moving more to Cloud increases time to value but
decreases control
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7. Demands of technology and widespread digitization is just
exacerbating the problem
Advanced
Predictive
Analytics
Cyber
Security
Infrastructure
Optimization
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Explosion of
Mobile
Devices
Big Data
Real-time
Sensor Data
Growth of
Social Media

8. Over 50 years of technology evolution, we have seen major shifts in
computing architectures
Cloud
Big Data
Platforms
Social
Mobile
Web, e-business
and SOA
Transaction
Systems
Interconnected solutions
Action taken immediately at
real time speeds
User device capability &
variety growing exponentially
Multiple applications
Infrastructure stressed with
volume and velocity of data
Some shared data
Open innovation
Dedicated systems
Post processing
in warehouses
Unpredictable workload
patterns
Single database
Batch processing
Managed one solution
Time to business action
Strategic and
tactical differentiator
Time
19608
1990-
2010-

9. Technology has never been more important to business
For the first time, CEOs identify technology as the most
important external force impacting their organizations
2004
2006
2008
2010
2012
71% Technology Factors
69% People Skills
68% Market Factors
Macro-economic factors
Regulatory Concerns
Globalization
“Survival skill 101 for the
next five years will be
deriving insight ahead of
peers.”
CEO
Healthcare, Australia
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“Simplification and
standardization are key
strategies that we have been
using to reduce existing and
future complexity.”
CEO
Consumer Packaged Goods, USA

10. THE
of services will be
by
new application models
THAT ARE
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11. Two Application Models will Co-exist in the Enterprise
“Born in the Enterprise”
Systems of Record
“Born on the Cloud”
Systems of Engagement
Scalable
Elastic
Virtualized
Multi-tenant
Automated lifecycle
Integrated lifecycle
Heterogeneous infrastructure
Standardized infrastructure
Primarily existing virtualized workloads,
back office, middleware-based
Compatibility with existing systems
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Primarily emerging platform workloads,
new development, web-facing, scale-out
on cloud, SaaS
Exploitation of new environments

12. To see where Corporate apps will be tomorrow, look at where
Consumer apps are today
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13. IDC on the Consumerization of IT
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14. 14

15. To make sure your applications can deliver what you need,
when you need it, optimize the application lifecycle.
Challenges with the traditional
application lifecycle:
• Providing a security-rich and consistent
environment across development, testing
and production
• Integrating applications across internal and
external environments
• Reducing risk and high costs of down time
from lack of skills, human error and
inconsistencies
• Keeping applications available, mitigating
disruptions to the application lifecycle
• Managing the complexity of installing,
configuring, integrating and maintaining
middleware and infrastructure components
Project
initiation
Requirement
analysis
Optimize
Applications
for internal
use or resale
Build
Shared
resource
activation
Deploy to
production
Integration
Deploy to test
Application lifecycle
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16. How quickly can your organization develop and deploy
innovative applications that enable business growth and keep
you competitive?
Impediments to delivering new applications effectively and efficiently include:
• Up to 41 percent of organizations experience delays1:
– In integration, configuration and testing apps
– Due to troubleshooting and fine-tuning issues in production
• Up to 51 percent of applications are rolled back due to quality issues escaping
into production1
• Up to four-to-six weeks to deliver a simple change2
Customers
Desire for fast
and continuous
innovation
1
2
Line
of business
First
First
gap
gap
Development
team
Operations
team
Traditional
operations
Requirements
Forrester/IBM Study: A New View of IBM’s Opportunity for Integrated Optimized Systems Address, 2011
Forrester “Five Ways To Streamline Release Management,” 2011
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Second
gap

17. “Born in the Cloud” Driving Improvements in
Development and Operations
“DevOps” is the term used to describe a more integrated and efficient
model for development and delivery of applications
• “Agile Development” paradigm
• Continuous integration and test
• Cloud delivery model for development, test and operations
Continuous Integration
Development
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Operations

18. Addressing Application Lifecycle Management gaps
Customers
Dev & Test Teams
Line of Business
2nd
Gap
1st Gap
Desire for fast and
continuous
innovation
Requirements
Code & Test
Addressed by...
Agile
Dev
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Operations Team
Business Services
Addressed by...
Dev
Ops

19. IDC on the impact of Cloud on Application Lifecycle
Management
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20. 20

21. IT Project and Portfolio Management software moving to the
Cloud
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22. In Summary…
• Cloud Computing represents a permanent shift in the way IT services are developed and
delivered
• Cloud will be the basis for future enterprise application development, which will be in
“SMAC” style – Social, Mobile, Analytics and Cloud
• Consumer apps will drive Enterprise apps and thus user expectations will change
accordingly, in terms of speed to market, mobile support, availability, etc
• More and more enterprises will turn to SaaS applications vs In House development, adding
new dimensions to IT Governance
• IT Project and Portfolio management will need to adapt to this changing IT landscape
through better tools, quicker development cycles, better integration between development and
delivery
Questions?
rictelford@icloud.com
@rictelford on Twitter
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