In today’s presentation we will talk about… Why Smarter Computing and Cloud? What is the value to the business and IT? What are the key considerations? And, how IBM SmartCloud can help?
To set the stage… Three years ago IBM started describing the emergence of a Smarter Planet that is fueling innovation across industries. Every aspect of life is benefiting from the instrumentation, interconnection and the infusion of intelligence into the world’s systems. Business processes are being transformed across every industry, from healthcare to manufacturing to transportation. If we look at a specific example of traffic control… On a smarter planet, cities are able to predict traffic patters and control the flow of traffic thus reducing congestion and enhancing public safety. Looking at another example around Law Enforcement… police officers are now able to check identities, visa status, and records using handheld devices enabling officers to enforce laws more effectively. Looking at healthcare, doctors are now able to share information about patients so that all providers and doctors interacting with the patient understand the full history of the patient’s health. This type of collaborative care through cloud computing enables healthcare provides to better service the patient. The examples are endless…Smarter Planet is changing the way people live—delivering clear benefits back to our businesses and communities.
Sources: IBM Market Intelligence (STG) – developed for Mill’s presentation at Pulse/Innovate This change does not go without addressing some of the most critical IT infrastructure challenges of this era… Customer expectations have been transformed through ubiquitous access and a new generation of services that add richness and relevance to interactions Just think of the use of mobile phones and how that is changing customer expectations on access to new services… And this will continue to grow as over half of the world’s people now use mobile technology and more than 60% of mobile phone users live in developing countries. 2) There are increased demands on our infrastructures as data growth has exploded over the last several years. There 1.2 zetabytes of data in the digital universe. In fact, 15 petabytes of data is generated everyday - 8x more than all U.S. libraries combined. Just think of the complexity that adds to our infrastructures. 3) With all this comes increased complexity. 85% of computing capacity sits idle. IT infrastructures are becoming complex as organizations add more servers and storage without a clear infrastructure optimization strategy. So, while the possibilities for innovation on a Smarter Planet are widely varied… every IT organization faces the stark reality that the demand IT infrastructure is nearly insatiable while their IT budgets are growing less than 1%.... How can you address these challenges?
IBM is introducing a new way to address these challenges through Smarter Computing. On a Smarter Planet, a new approach is required to designing IT infrastructures to help create new opportunities for organizations. For those of you who attended the IBM solution provider session this morning, with Guru Rao, you heard all about this new era of computing. To give you the highlights… Smarter Computing is realized by designing IT as a system that incorporates Big Data for better decision making, Optimized Systems for superior economics, and Cloud to reinvent business processes and drive innovation. Any enterprise can enter this new era by architecting an IT infrastructure that is designed for data, tuned to the task, and managed as a Cloud. Designed for data -- Remove barriers to harnessing all available information and unlock insights to make informed choices. Tuned to the task -- Remove financial barriers by driving greater efficiency and performance for each workload. Managed through a cloud -- Remove barriers to rapid delivery of new services and realize IT without boundaries to reinvent business processes and drive innovation. In this session, we’re going to take a closer look at cloud
Source: Gartner, Cloud Computing Services, Virtualization Top CIO 2011 Wish Lists Jan 24 2011 Cloud is a critical part of Smarter Computing as it helps transform the economics of IT and delivers value back to the business. It’s clear that Cloud has made IT more efficient by enabling organizations to rapidly deliver services and do more with less – but it’s important to really look at how that translates into business value and enabling organizations to re-invent business. If you look at the business-side, cloud enables organizations to transform business processes, deliver faster time to market, and meet increasing customer expectations – which directly speaks to some of the challenges we spoke about earlier Let’s take a closer look at the business benefits…
Source: IBM CIO Study 2011 Business executives are drawn to cloud’s ability to enable business transformation and deliver more agility… Looking at our research - IBM recently released the 2011 Global CIO Study where we conducted over 3,000 face-to-face interviews--several hundred more CIO interviews than our 2009 study. CIOs in 71 countries representing 18 industries relayed their experiences, accomplishments and future plans, all in terms of the kinds of IT support their own organizations need most. We learned that the CIO role holds even more importance today. Senior management values technology as totally critical to the success of the business. This clear mandate empowers CIOs to help the business get the most out of technology to fuel growth in the business. Cloud is a mechanism to help them get there. In fact, 60% of CIO’s plan to use cloud (up from just 33% last year), while at the same time 55% of business executives believe cloud enables business transformation and leaner, faster, more agile processes. In light of these trends, it will be important for IT executives to translate the cost, efficiency, and control benefits into how cloud brings benefit to the business… Let’s take a look at a client example to bring this to life…
The economy in Bari and its territory (the southern Italian region of Puglia) is based on small and medium-size businesses, primarily in agriculture and food products. To help sustain development, the University of Bari wanted to build a system that would enable fishermen, wine growers and others to contract for services through a portal that would enable them to decrease time-to-market, reduce transportation costs, reduce the amount of products wasted and improve product quality. The University worked with IBM to build a cloud environment that would help them deliver these services. One service specifically enables fishermen to use a touch screen installed on the boat to describe the kinds of fish being caught. If that type of fish is required by the market, the solution starts an electronic auction. If the price is under a specific level (calculated by a sophisticated algorithm), the fish are redirected to a nonprofit company like a soup kitchen. If the price is above the level, the system automatically defines how the quantity should be distributed among boxes in order to give the fishermen the opportunity to arrive at the pier with boxes ready to be shipped. This solution is available on the zCloud, giving different fish markets (distributed around the territory) the ability to use the application. This new way of thinking about IT has enabled the community to reinvent business. Now, fishermen are able to better meet the demands of the local market and provide better service to clients. BACKGROUND DETAIL: http://www.smartplanet.com/business/blog/business-brains/cloud-technology-helps-italian-fisherman-find-buyers-for-catch-of-the-day/8367/?tag=content;col1 http://www-03.ibm.com/press/us/en/pressrelease/32051.wss http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0GLOS-79YGDZ&appname=crmd
Successful implementation demands disciplined execution, maintaining focus on three key considerations… It has become clear that the benefits of cloud are not just about IT, it’s about re-inventing the business, so the first consideration is around Business Process Redesign – Organizations need to consider how cloud can transform business processes… not just incrementally, but in a transformational way. Think of the example we just discussed – the University in Bari was able to change business process by transforming the way fishermen sell their catch of the day. Looking at Seamless Integration – It is important that organizations provide seamless integration across heterogeneous environment – from traditional environments, private cloud, and public cloud. This is where service management becomes critical to ensure that there is seamless integration and integrated management across the entire business infrastructure. Finally, Integrity and security – Looking at research, security is always clients’ top concern when it comes to cloud, so it is important to consider that you and your provider have a holistic approach to the resiliency and security of your cloud to match your risk tolerance level.
IBM’s approach to cloud can help you with these considerations… Built 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 will enable that for you. More importantly, the IBM SmartCloud is built to provide you with the options and control you need 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 platform is built based on IBM’s cloud reference architecture and is designed for IBM to deliver public, private, hybrid – Iaas, Pass, Baas (collaboration – SaaS) services. And we have a common service management platform with consistent portal and catalog. Now, let’s talk about how to get started with your cloud approach…
IBM helps clients successfully implement cloud using a strategic and systematic approach. Starting with Design – We help clients establish their overall cloud strategy and roadmap. We can help you quickly evaluate which workloads will bring the most benefit by deploying them to cloud and what is the cost/benefit of your cloud plan. We can do this by using deep analytic tools developed by IBM Research – the analysis can be done 90% faster than doing it on your own, thus getting you to market much quicker. Then with Deploy – We can then help you deploy your cloud environment with pre-integrated systems and appliances, enabling you to quickly deploy a cloud on a solid foundation Finally with Consume – We can help you manage and optimized the consumption of cloud services through the various “as a service” solutions in our portfolio.
Source: IBM data IBM is a leader in this market… We continue to deliver a broad set of capabilities to help you fully leverage cloud – from strategy to implementation to migration – we can help to ensure that the IBM SmartCloud is aligned to your requirements and integrated with your existing IT We are also focused on continuing to build out our global reach to deliver services across the globe and to help our clients to leverage our delivery centers to reach entirely new markets. We have 6 dedicated SmartCloud Centers covering 53 countries. These are the data centers that enable IBM to deliver cloud offerings to clients. We also have cloud labs, which are innovation centers where we bring clients and partners to experiment and build new cloud capabilities. Let’s also look at some of our deep experience and credibility in the market… 80% of Fortune 500 companies are using IBM cloud capabilities, we manage over 1M virtual machines worldwide, we manage 13B security events per day for 4000 clients, and we had 2,000 successful cloud engagements in 2010. This experience and credibility can give you the peace of mind and confidence that we can deliver the right cloud solution based on your unique business needs Let’s discuss a few additional client examples to bring this to life…
Organizations across industries are leveraging cloud as a new approach to meeting demands… Bank of Tokyo Mitsubishi has transitioned from reliance on traditional fat clients PC’s to thin client PCs provisioned via the cloud. This move was predicated by the bank’s desire to support a variety of employee work styles and to break its expensive three-and-a-half year PC refresh cycle for tens of thousands of fat-client PCs. The benefits include improved productivity, job satisfaction, and a more flexible PC environment that is easier for the bank to maintain. http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0GLOS-7YB8YL&appname=crmd The United States Golf Association (USGA) had devoted resources to performing traditional backup and restore on its critical systems for years. After experiencing explosive growth in data and rich media, the USGA’s reliance on timely access to mission-critical data had evolved beyond traditional backup storage procedures. USGA has partnered with IBM to protect data using Managed Backup Cloud – giving the organization peace of mind that data is available and protected when needed. http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0GLOS-7PJTLY&appname=crmd Signature Mortgage is one of Ohio's and Florida's fastest growing mortgage companies. To meet customer expectations and compete with large national lenders, Signature Mortgage recognized that it needed to eliminate manual, paper-based processing of new customer applications because it is time-consuming and costly, and fraught with risks and errors. The organization is now leveraging cloud where all of the loan documents and disclosures are presented electronically to customers for their review and e-signing. e-SignLive for LotusLive enables Signature Mortgage to eliminate the need for paper when processing mortgage applications – thus reducing loan processing time and enabling the organization to better serve clients - http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0GNCS-85ZND8&appname=crmd
Now is the time to take a new at your IT infrastructure with Smarter Computing and Cloud Ask yourself the tough questions… Is your organization achieving the levels of innovation required to compete in today’s environment? Is your infrastructure able to meet the demands of your business? Are you developing internal capabilities that would be better handled by others? To learn more about Smarter Computing, visit ibm.com/smartercomputing
IBM is currently working with the Bank of Tokyo-Mitsubishi to transition their infrastructure from reliance on traditional fat clients to thin PCs provisioned via the cloud. This move was predicated by the bank’s desire to break its expensive three-and-a-half year PC refresh cycle for tens of thousands of fat-client PCs. The solution — thin clients provisioned via the cloud — was chosen because of its ability to deliver: Savings in the areas of hardware, software, maintenance, and energy consumption Continued access to the bank’s existing applications And heighted security for data and identity. The anticipated benefits include: A new ability to support a wide variety of work styles (a key new-workplace trend) Improved productivity Increased job satisfaction And optimized security for sensitive data.
A quickly growing mortgage company in Ohio sharpens its competitive edge and accelerates its mortgage processing and closing processes when it taps IBM Business Partner Silanis Technologies Inc. to implement a powerful new solution based on IBM Lotus software
To show you a few examples of how some of our clients have leveraged IBM Business Continuity and Resiliency Services: A golf association used IBM Resiliency Consulting Services, IBM Managed Resiliency Services and IBM Infrastructure Recovery Services. A chain of convenience stores improved the security and reliability of its IT infrastructure with proactive alert monitoring, allocated service management and robust disaster recovery solution to improve system availability.
Smarter Computing: Transform your business with Cloud
Smarter Computing: Transform your business with Cloud Paul Loftus - General Manager, IBM Global Technology Services June 14, 2011
Agenda <ul><li>1. Why Smarter Computing and Cloud? </li></ul><ul><li>2. What is the value to the business and IT? </li></ul><ul><li>3. What are the key considerations? </li></ul><ul><li>4. How can IBM SmartCloud help? </li></ul>Smarter Computing: Transform your business with Cloud
<ul><li>Three years ago we started describing the Smarter Planet we saw emerging , fueling innovation across industries. </li></ul>Manufacturing Resource Management Telecom Neonatal Care Trading Traffic Control Fraud Prevention Law Enforcement
Increased expectations Increased demands Increased complexity This change does not go without addressing some of the most critical IT infrastructure challenges Growth per year in internet connected devices Zetabytes of data (1.2 trillion gigabytes) exist in the “digital universe” Idle computing capacity … while IT budgets are growing less than 1% per year. 1.2 42% 85%
These challenges can be addressed through Smarter Computing… Tuned to the task Remove financial barriers by driving greater performance and efficiency for each workload. Smarter Computing Let’s take a closer look at Cloud … Managed in the Cloud Remove barriers to rapid delivery of new services and reinvent business processes to drive innovation. Designed for data Remove barriers to harnessing all available information and unlock insights to make informed choices.
Cloud is a critical part of Smarter Computing as it delivers unique value to both IT and the Business Rethink IT Reinvent Business <ul><li>Rapidly deliver services </li></ul><ul><li>Integrate services across cloud environments </li></ul><ul><li>Increase efficiency </li></ul><ul><li>Faster time to market for new services </li></ul><ul><li>Focus on differentiated processes </li></ul><ul><li>Meet changing customer expectations, realtime access to technology </li></ul>Efficiency Transformation
Business users are drawn to cloud’s simplified, self-service experience and new service capabilities… of CIOs plan to use cloud (up from 33% 2 years ago) of business executives believe cloud enables business transformation and leaner, faster, more agile processes … while IT is drawn to cloud for cost, efficiency, and control
Cloud in action: University of Bari <ul><li>Italy’s University of Bari uses IBM cloud to help local fishermen auction their day’s catch while still at sea </li></ul>
Successful implementation demands disciplined execution, maintaining focus on three key considerations Seamless integration Integrity and security Business process redesign Moving beyond incremental adjustments with enhanced business services and industry solutions Seamless end-user experience across heterogeneous environment Holistic approach to interoperability, resiliency, and management that match requirements of the workload
IBM SmartCloud provides a robust platform for the full IBM cloud portfolio, all built on the IBM cloud reference model Software as a Service Platform as a Service Infrastructure as a Service Business Process as a Service Management, support and deployment Security and isolation Availability and performance Technology platform Payment and billing IBM SmartCloud IBM Cloud Reference Model
IBM helps clients successfully implement cloud using a strategic and systematic approach Deploy Consume Design Establish a cloud strategy and implementation plan to get there Build cloud services, in the enterprise and/or as a cloud services provider Manage and optimize consumption of cloud services <ul><li>Strategy & Design Services to help you build your cloud roadmap </li></ul><ul><li>Workload analytics to select the right workloads for cloud </li></ul><ul><li>Preconfigured deployment patterns </li></ul><ul><li>Appliance with pre-installed, pre-configured images </li></ul><ul><li>Optimized systems for a solid foundation </li></ul><ul><li>SaaS offerings </li></ul><ul><li>Integration across deployment models </li></ul><ul><li>Public cloud for application-specific workloads </li></ul>Example capability
IBM provides the right hardware, software and expertise to help your organization fully leverage the cloud <ul><li>Next generation combination of technology, expertise and reach to help you advance your cloud deployment </li></ul>80% of Fortune 500 companies using IBM cloud capabilities Managing >1M virtual machines worldwide 13B security events managed per day for 4,000 clients 2,000 successful cloud engagements in 2010 IBM Cloud Labs IBM SmartCloud Centers
Bank of Tokyo Mitsubishi Enabling a new workplace Meeting customer demands Organizations across industries are leveraging cloud as a new approach to meeting demands Protecting critical business data United States Golf Association Signature Mortgage <ul><li>New ability to support wide variety of work styles </li></ul><ul><li>Improved productivity </li></ul><ul><li>Increased job satisfaction </li></ul><ul><li>More flexible PC environment </li></ul><ul><li>Protecting 590GB of critical data on a daily basis </li></ul><ul><li>Ensured availability and resiliency of core business function </li></ul><ul><li>Peace of mind that the brand image is protected </li></ul><ul><li>Faster and easier application process for customers </li></ul><ul><li>Improved competitive advantage </li></ul><ul><li>Reduced loan-processing time – 7 days to 24 hours </li></ul>
The time to take a new look at IT infrastructure with Smarter Computing and Cloud <ul><li>Ask yourself the tough questions: </li></ul><ul><li>Is your organization achieving the levels of innovation required to compete in today’s environment? </li></ul><ul><li>Is your infrastructure able to meet the changing needs of the business? </li></ul><ul><li>Are you developing internal capabilities that would be better handled by others? </li></ul>ibm.com/smartercomputing
Workplace snapshot: Bank of Tokyo-Mitsubishi UFJ leverages the cloud to break the traditional PC refresh cycle. <ul><li>The challenge Break the 3.5-year PC lease renewal cycle for tens of thousands of PCs </li></ul><ul><li>The solution </li></ul><ul><li>Replace fat-client PCs with thin clients — accessing virtual desktops via the cloud — to achieve: </li></ul><ul><ul><li>Savings in the areas of hardware, software, maintenance and energy consumption </li></ul></ul><ul><ul><li>Continued access to the bank’s existing applications </li></ul></ul><ul><ul><li>Heightened security for data and identity </li></ul></ul><ul><li>The anticipated benefits </li></ul><ul><ul><li>New ability to support wide variety of work styles </li></ul></ul><ul><ul><li>Improved productivity </li></ul></ul><ul><ul><li>Increased job satisfaction </li></ul></ul><ul><ul><li>Optimized security for sensitive data </li></ul></ul>
Signature Mortgage Reducing loan processing time with IBM LotusLive Engage Business challenge: Signature Mortgage needed to replace its manual, paper-based application process that required customers to either go to a retail branch to sign documents or wait for documents to be couriered to their homes. In order to remain competitive, the company needed to improve service by providing a faster and more convenient application process. Solution: The company worked with IBM Business Partner Silanis Technology Inc. to implement a solution based on Silanis e-SignLive integrated services and IBM LotusLive Engage collaboration services. The solution enables customers to complete, review, initial and sign mortgage applications electronically through services delivered via the cloud. <ul><li>Benefits: </li></ul><ul><li>Signature Mortgage expects to cut costs and reduce loan-processing time from an average of seven days to 24 hours </li></ul><ul><li>Solution reduces loan closing process to 10-15 days compared to 30-45 days typically experienced at local, regional and national banks </li></ul><ul><li>Cloud-based solution eliminates the need to dedicate IT resources to develop and maintain a web site to provide similar services </li></ul><ul><li>Solution components: </li></ul><ul><li>IBM® LotusLive™ Engage </li></ul><ul><li>Silanis e-SignLive </li></ul>LOP14218-USEN-00 “ The e-SignLive and LotusLive services give us a real competitive edge…our customers can now complete mortgage applications with the speed and convenience of the web knowing that the technology is secure, reliable and proven.” — Bob Catlin, President, Signature Mortgage
United States Golf Association (USGA) Protecting critical business data A golf association protected over 500 gigabytes of mission-critical data every day via cloud computing using our business continuity and resilience services; this included over four million membership records and more than 150,000 daily e-mails. See Video on YouTube: http://www.youtube.com/watch?v=qtM-gX2tkSs