IDC WHITE PAPER - IBM PureFlex System Ready for Cloud

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IDC WHITE PAPER - IBM PureFlex System Ready for Cloud

  1. 1.  Faster system deployment: Systems were deployed 33% faster.  Faster service delivery: Customer services were activated in minutes or hours rather than weeks.  Enhanced system performance: System availability was close to 100%.  Lower cost of operations: Cost of operations was lowered by 37%.  Benefits: Companies in the study realized over $640,000 in benefits related to improved infrastructure deployment, performance, and operational economics.  Business Value Highlights W H I T E P AP E R I B M P u r e F l e x S y s t e m R e a d y f o r C l o u d Sponsored by: IBM Randy Perry Mary Johnston Turner July 2013 E X E C U T I V E S U M M AR Y Cloud computing represents an opportunity for enterprise and service provider datacenters to become more agile and flexible by using self-service infrastructure provisioning; automated, dynamic resource pooling and scaling; and consumption- based metering to improve accelerate cloud infrastructure configuration, provisioning, and life-cycle management. IDC estimates that combined enterprise and service provider spending on IT infrastructure hardware and software for cloud datacenters will total more than $42 billion worldwide by 2017. Integrated systems, such as the IBM PureFlex System, pre-integrate and optimize software stacks with compute, storage, network, and management software resources to enable optimal performance of mission-critical applications and workloads. Many IT organizations are using integrated systems as core platforms to enable private clouds and public cloud service delivery environments. IDC interviews with several IBM customers and partners show that organizations using IBM PureFlex System, as well as Flex System infrastructure building blocks, as the infrastructure platform for cloud realized over $640,000 in benefits related to improved infrastructure deployment, performance, and operational economics. Specifically:  Faster system deployment: Pre-integrated systems optimized for either general-purpose or specialized workloads were able to improve system ordering, purchasing, and deployment by 33%.  Faster service delivery: Service providers that had already deployed integrated systems into their service delivery environments were able to activate new customer services in minutes or hours rather than having to wait six weeks or more to purchase, integrate, and deploy new service-enabling infrastructure. GlobalHeadquarters:5SpeenStreetFramingham,MA01701USAP.508.872.8200F.508.935.4015www.idc.com
  2. 2. 2 #242386 ©2013 IDC  Enhanced system performance: Customers in the study realized close to 100% system availability as a result of reduced unplanned downtime, fewer human errors, and faster resource provisioning and migration.  Lower cost of operations: Improved IT staff productivity, lower facilities costs, and reduced IT hardware spending the lowered cost of operations by 37%. S I T U AT I O N O V E R V I E W B e n e f i t s o f I n t e g r a t e d S y s t e m s f o r C l o u d I n f r a s t r u c t u r e Increasing numbers of enterprise IT and service provider datacenter managers are implementing dynamic self-service cloud architectures to improve IT infrastructure performance, increase resource utilization, and enhance IT operations staff productivity. IDC's research indicates that over 60% of datacenter server life-cycle costs are associated with the cost of IT administrative staff. Integrated systems help reduce the complexity of initial system ordering and sizing as well as simplify day-to-day operations, particularly with regard to system firmware and software upgrades and patching because updates can be applied as a single, pre-tested and pre-certified unit. Built-in self-service provisioning automation and infrastructure configuration and deployment patterns can further streamline day-to-day datacenter operations and allow IT generalists to take on greater levels of operational responsibility. For many enterprise IT organizations, integrated systems provide a rapid on-ramp to private clouds, while service providers see integrated systems as a way to quickly launch public cloud service delivery environments. A recent IDC survey found that 40% of organizations that are using or considering integrated systems expect to implement cloud self-service provisioning capabilities as part of the solution. I B M P u r e S y s t e m s IBM PureSystems family is a portfolio of expert integrated systems built from the ground up to deliver an optimized hardware and software platform. Integrated systems combine compute, storage, networking, and management into factory pre-configured and pre-integrated solutions. PureFlex provides an infrastructure system, and PureApplication and PureData are optimized for specific application and customer workload environments and provide platform systems. IBM PureSystems thus provide a broad range of infrastructure and platform systems with built-in expertise.  IBM PureFlex System — a member of the IBM PureSystems family — is a pre-configured, fully integrated infrastructure system with unified management of compute, storage, networking, and virtualization resources to support a range of general-purpose datacenter requirements.  IBM Flex System — the components that are used to build several of the PureSystems — can be bought separately as the destination capability for those seeking a blade infrastructure. Encompassing compute, storage, and networking, IBM Flex System provides substantial management and deployment advances due to leading management capabilities with Flex System Manager.
  3. 3. ©2013 IDC #242386 3 Integrated systems are specifically designed to provide more efficient and flexible IT resources and management environments than can be enabled by traditional datacenter architectures. This paper discusses how several IBM PureFlex and Flex System customers and partners are using expert integrated platforms to reduce the cost and improve the performance of cloud-enabled datacenters and services. U S E R C AS E S T U D I E S C a p g e m i n i E n a b l e s S A P C l o u d H o s t i n g S e r v i c e w i t h I B M P u r e F l e x S y s t e m Capgemini was the first SAP Certified Global Cloud Partner. The company implemented its first multi-tenant hosted SAP cloud service using the IBM PureFlex System Enterprise Edition to support a highly integrated, scalable, and automated infrastructure as a cloud service delivery environment. As a service provider, Capgemini is very focused on the speed of service delivery and the cost of IT infrastructure equipment and staff. In comparing traditional, non-integrated alternatives with the integrated IBM PureFlex System, configured for multi-tenant SAP support, Capgemini identified cost savings of as much as 30%. At the same time, the company identified a 10–15% improvement in performance and availability due to the customized Flex System system engineering and integrations. Part of that performance improvement is attributable to the fact that the company used the IBM PureFlex System purchase as an opportunity to upgrade to a new generation of processors that provided better performance at a lower price. Cost savings also resulted from the higher density of the IBM PureFlex System and related reductions in datacenter floor space and power and cooling requirements. Equally important, Capgemini found that the IBM PureFlex System could be deployed and provisioned more quickly than traditional server and storage solutions that required more extensive onsite integration and testing. The company was able to fully activate the system, complete data and workload migrations, and go live with customers in 8 weeks, rather than the 12 weeks it would have expected to need using traditional solutions (a 33% time savings). Beyond the physical hardware integrations, Capgemini benefited from creating SAP patterns and virtual appliance templates to standardize and speed application deployments using built-in automated provisioning tools. In terms of day-to-day operations and customer support, Capgemini estimates that faster application provisioning, improved compliance with configuration standards, and reduced need for scheduled downtime and patching have collectively reduced the IT staff time needed to support the SAP hosting environment by 15–30%. Capgemini's SAP cloud hosting service has also benefited from the ability of the IBM PureFlex System to monitor resource utilization and feed data to consumption- based chargeback systems. This in turn allows Capgemini to reach new sets of customers that want to pay for only the resources they actually use or that have highly variable requirements over the course of a year. Over time, Capgemini may
  4. 4. 4 #242386 ©2013 IDC incorporate IBM FlexSystem Manager self-service provisioning capabilities into services offered to end users to provide a new self-service option. For now, however, access to the self-service automation functionality is limited to Capgemini's staff. R e d c e n t r i c T r a n s f o r m s C l o u d B u s i n e s s E c o n o m i c s w i t h I B M F l e x S y s t e m Redcentric is a United Kingdom–based managed, hosted, and Internet service provider. Recently demerged from Redstone, Redcentric delivers ISP and cloud services to a wide range of U.K. organizations using multiple U.K. and international datacenters. Redcentric implemented IBM Flex System as the core platform to enable its infrastructure-as-a-service (IaaS) solution. Flex System helped reduce Redcentric's datacenter footprint by moving the company away from heavy dependence on dedicated physical servers. Savings came in many forms, including energy cost reductions of up to 40% and reduced software licensing costs of as much as 70% because fewer cores were required. By freeing up datacenter facilities space and creating an environment where workloads can be deployed more quickly and resources can be more easily shared, Redcentric now has the ability to more quickly expand its business and bring on new customers without having to build out new datacenters to support its cloud services. The IBM Flex System investment was seen as highly transformative for Redcentric. It allows the company to meet customer requests for hosting a wide variety of operating systems and applications on a shared common cloud platform, in addition to being able to offer an IaaS option to self-service customers. Using the IBM Flex System, Redcentric is able to rapidly spin up new resources as customers demand them. Rather than having to wait six weeks or more for availability of workloads on physical servers, Redcentric's cloud service customers can self-provision virtual resources on the IBM Flex System in minutes. The built-in IBM Flex System Manager capabilities have helped reduce administration costs by up to 50% and cut system setup costs by as much as 66%. Even more importantly, however, the flexibility of the system, along with built-in automation, has allowed Redcentric to expand its service portfolio and take on a broader range of business critical applications and services. Customers that might have been nervous about a shared service environment are more confident given the extent of validated integration, patterns of expertise, and hardware reliability that are provided by use of the IBM Flex System. A g i l i s y s I m p l e m e n t s C l o u d I n f r a s t r u c t u r e a s a S e r v i c e w i t h I B M P u r e F l e x S y s t e m Agilisys is a large United Kingdom–based IT, consulting, and business services provider with a diverse customer base spanning the private and public sectors. The company develops, hosts, and supports a variety of applications for its clients, including support for central and local governments that are using Agresso ERP systems. Agilisys offers several of its solutions as hosted services and currently relies on the IBM PureFlex System to support two of its most important new hosted financial service applications. Agilisys wanted a scalable, secure, and automated IaaS platform to support
  5. 5. ©2013 IDC #242386 5 these applications and selected IBM PureFlex System. The fact that IBM PureFlex System could be ordered and shipped as a single integrated unit was particularly important given the company's need to get these new capabilities to market quickly. When evaluating options for supporting these financial service applications, Agilisys considered using legacy equipment that was already available on the datacenter floor. The company opted instead to invest in the IBM PureFlex System in part because the older systems would have required time-consuming repurposing and might not have fully satisfied several important security requirements. Because the IBM PureFlex System was pre-validated and sized with compute, storage, firewall, and networking technology that met the company's performance and security specifications, Agilisys found the IBM PureFlex System to be very economical to implement and manage on a day-to-day basis. The company was able to avoid time-consuming and complex integration and testing activities and was able to rely on existing staff to implement the system. Agilisys continues to operate the IBM PureFlex System without needing to hire additional IT staff in part because the firmware and software upgrades for all components are integrated and tested by IBM before being applied. The IBM FlexSystem Manager and associated patterns of expertise allow Agilisys staff to eliminate human error when deploying new VMs, expanding the system, or adding new subscriber resources. Agilisys credits the IBM FlexSystem Manager with improving IT staff productivity and helping ensure consistent SLAs. F U T U R E O U T L O O K Based on analysis of several IBM PureFlex System and Flex System customers that are currently implementing cloud solutions, IDC expects that future customers can achieve the following benefits:  Faster system deployments and upgrades due to improved automation, use of pre-defined patterns of expertise, and access to self-service provision capabilities  Faster service delivery because service providers are able to activate new customer services more quickly  Higher levels of performance and increased availability due to reduced unplanned downtime, fewer human errors, and faster resource provisioning and migration  Lower cost of operations due to improved IT staff productivity, lower facilities costs, and reduced IT hardware spending F a s t e r S y s t e m D e p l o y m e n t Because integrated systems are configured and integrated prior to being shipped to customers, onsite IT staff members are not required to invest time and effort in completing onsite integration and testing. IBM PureFlex System customers reported savings on the order of 33% in terms of the time needed for initial system deployment. In one example, the time required shrank from 12 weeks to 8 weeks.
  6. 6. 6 #242386 ©2013 IDC F a s t e r S e r v i c e D e l i v e r y IBM PureFlex System or Flex System enabled service providers that have already deployed integrated systems into their service delivery environments to activate new customer services in minutes or hours rather than having to wait six weeks or more to purchase, integrate, and deploy new service-enabling infrastructure. I n c r e a s e d A v a i l a b i l i t y As organizations become more reliant on IT resources to run their business, the potential financial damage caused by unplanned outages and performance slowdowns becomes an unacceptable risk. Many companies profiled in this paper are service providers and as such had very low downtime — less than one hour per year — prior to implementing IBM PureFlex System or Flex System. With IBM PureFlex System or Flex System, they were able to eliminate that hour of downtime. L o w e r C o s t o f O p e r a t i o n s Organizations in the study reported that IBM PureFlex System and Flex System delivered a 30% higher price performance than the other solutions they evaluated. The organizations were able to reduce their cost of operations by 37% by leveraging IBM PureFlex System and Flex System to deliver higher levels of performance with the inherent resource utilization, management, space, and power cost advantages of an integrated solution (see Figure 1). F I G U R E 1 A v e r a g e A n n u a l C o s t o f O p e r a t i o n s B e f o r e a n d A f t e r t h e D e p l o y m e n t o f I B M P u r e F l e x a n d F l e x S y s t e m Source: IDC, 2013 145,000 108,750 719,605 435,150 864,605 543,900 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 Before After ($) Infrastructure Hardware and software Facilities and power
  7. 7. ©2013 IDC #242386 7 C H AL L E N G E S / O P P O R T U N I T I E S The ability to fully exploit the benefits of integrated systems for cloud infrastructure depends on the IT organization being willing and able to embrace a standardized services-centric view toward setting SLAs and providing resources. IT teams must be able to work with business stakeholders to agree on standard configurations and SLAs and then render those as templates or patterns that can be delivered on a consistent, repeatable self-service basis. IBM PureFlex System and Flex System provide customers with powerful management and automation tools, but not all organizations are fully ready to exploit their potential. If IBM can help its customers and partners realize the full value of their IBM PureFlex System and Flex System investments, the company will be able to help many organizations transform their datacenters and improve operational efficiency in cloud environments. C O N C L U S I O N Expert integrated systems are an important option for enterprises and service providers that want to quickly and cost effectively implement cloud infrastructure environments that make extensive use of automation, self-service provisioning, and consumption-based chargeback or metering. The experiences of IBM's customers and partners indicate the benefits can be significant if organizations recognize and embrace the transformational nature of the IBM PureFlex System and Flex System integrated, unified architectures. AP P E N D I X IDC utilized its standard ROI methodology for this project. This methodology is based on using in-depth interviews to gather data from 10 companies about their use of IBM PureSystems and then creating a financial model. The financial model quantifies the following elements of the companies' operations and measures the financial impact of technology on those elements:  IT infrastructure: Costs for hardware, software, facilities, power, and related services  IT staff productivity: The value of IT staff in support of the business (Increasing IT staff productivity means reducing the time spent by IT staff in manual support tasks or repair and replacement and freeing up staff time to contribute to business activities.)  End-user productivity: The value of end users of business applications (Increasing end-user productivity is measured in two ways — increasing end-user work output and reducing end-user time lost to unplanned downtime, help desk issues, or other performance issues related to technology.)  Business productivity: The value of business operations impacted by technology (Measurement includes increasing revenue and/or reducing cost of operations as a result of becoming faster to market or reducing unplanned downtime or other negative impacts on operations.)
  8. 8. 8 #242386 ©2013 IDC IDC uses a set of assumptions to calculate the benefits discussed previously:  Time values are multiplied by burdened salary (salary + 28% for benefits and overhead) to quantify efficiency and manager productivity savings.  Downtime values are a product of the number of hours of downtime multiplied by the number of users affected.  The impact of unplanned downtime is quantified in terms of impaired end-user productivity and lost revenue.  Lost productivity is a product of downtime multiplied by burdened salary.  Lost revenue is a product of downtime multiplied by the average revenue generated per hour. Because every hour of downtime does not equate to a lost hour of productivity or revenue generation, IDC attributes only a fraction of the result to savings. As part of our assessment, we asked each company what fraction of downtime hours to use in calculating productivity savings and the reduction in lost revenue. IDC then taxes the revenue at that rate. Further, because IT solutions require a deployment period, the full benefits of the solution are not available during deployment. To capture this reality, IDC prorates the benefits on a monthly basis and then subtracts the deployment time from the first- year savings. Note: All numbers in this document may not be exact due to rounding. C o p y r i g h t N o t i c e External Publication of IDC Information and Data — Any IDC information that is to be used in advertising, press releases, or promotional materials requires prior written approval from the appropriate IDC Vice President or Country Manager. A draft of the proposed document should accompany any such request. IDC reserves the right to deny approval of external usage for any reason. Copyright 2013 IDC. Reproduction without written permission is completely forbidden.

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