F ernando sousa ibm_from hype to realiity


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  • Strategic Planning Assumption: Through 2010, more than 80% of enterprise use of cloud computing will be devoted to very large data queries, short-term massively parallel workloads and IT use by startups with little or no IT infrastructure.
  • ON THE UPSIDE 1. Fast start-up "Cloud computing is really a no-brainer for any start-up because it allows you to test your business plan very quickly for little money. Every start-up, or even a division within a company that has an idea for something new, should be figuring out how to use cloud computing in its plan," says Brad Jefferson, CEO of Animoto , a New York company that creates full-motion videos out of customer-selected photos and music. "Cloud computing has changed the game for entrepreneurs -- the greatest part about it is that on launch day, you have the confidence that you scale to the world." 2. Scalability To figure out if you're a good cloud service prospect, first consider the variability of the resource utilization of your own IT structure, says Tom Nolle, CEO of CIMI, a high-tech consulting firm. "If you've got enormous peaks and valleys, you're forced to oversupply IT resources to address the peaks. It may be significantly less costly for you to outsource the peaks," he says. 3. Business agility. "Your mind really changes quickly when you can solve problems using IT resources but you don't need a long-term commitment and you don't have to wait a long time to get them," says Michael Crandell, CEO of RightScale, a cloud management and support company. "Cloud computing changes the whole pattern of agility at a much lower cost." 4. Faster product development Since moving some applications and data to Amazon's cloud last April, Eli Lilly & Co . has seen provisioning time drop from weeks to minutes, says Dave Powers, associate information consultant at the Indianapolis company. "If I can give scientists eight weeks back on their research, that's a huge value there," he adds. "This is really starting to impact how we do business. We're starting to reduce cycle times in research, which is critical for us. That's a trickle-down effect of technology that we can make available to the scientific community." 5. No capital expenditures Are you out of space in your data center ? Have your applications outgrown the infrastructure? Cloud computing services allow a company to shift from capital to operational expenses even in do-or-die cases, says Bernard Golden, CEO of HyperStratus, a consulting firm specializing in advanced IT technologies. ON THE DOWNSIDE 1. Bandwidth could bust your budget Such was the case at Sony Pictures Image Works , which considered then ruled out an external cloud service to address storage scalability challenges, says Nick Bali, senior systems engineer at the Culver City, Calif., company. Every day, Sony animators access and generate between 4 and 12 terabytes of data. "The network bandwidth we'd need to put that into someone's cloud and to read it back is tremendous, and the cost would be so large that we might as well buy the storage ourselves rather than paying someone else for it," he says. Now Sony is evaluating a private storage cloud, using ParaScale's cloud storage software. 2. App performance could suffer A private cloud might, but a public cloud definitely wouldn't lead to improved application performance -- not when taking network latency into account, says Tony Bishop, CEO of Adaptivity, a consulting firm specializing in next-generation IT infrastructure.  "I couldn't see an investment bank putting a latency-sensitive application on an external cloud," adds Steve Harriman, a vice president at NetQoS . 3. Data might not be cloud-worthy "On Day 1, we probably had eight to 10 applications that we would have loved to take into the cloud," says Eli Lilly’s Powers. "But, knowing the type of data we had and the classification [of who could see it], we decided going through internal governance and rigor around taking care of that data would be appropriate." And, definitely don't put an application that provides competitive advantage or contains customer-sensitive information in the public cloud, Bishop adds. 4. Too big to scale "The bigger you are, the bigger your IT resource pool. And the bigger your IT resource pool, the less likely it is that you'll see any enormous financial advantage in outsourcing to the cloud," CIMI's Nolle says. "Cloud computing promotes better resource utilization, … but the gains are greatest when moving from relatively small consumption of resources upwards. If you're a very large enterprise, you might find you can achieve better economy by doing your own cloud than going to an outsourced one." 5. Human capital may be lacking Exploring next-generation IT models requires an adventuresome spirit and technical astuteness, says HyperStratus' Golden. "If you don't have the human capital that's willing to stretch and learn new things, taking on cloud computing can be very frustrating."
  • The Cloud Computing
  • Thank you for your time today!
  • F ernando sousa ibm_from hype to realiity

    1. 1. Fernando Sousa IBM ITSM Cross Sectors Portugal Cloud Computing Descending from the Clouds: From Hype to Reality
    2. 2. Agenda IBM Smarter Planet Cloud Computing ?! From Hype to Reality Adopting Cloud Computing What is IBM doing
    3. 3. The World Is Changing <ul><li></li></ul><ul><li>Complexity </li></ul><ul><li>Security </li></ul><ul><li>Globalization </li></ul><ul><li>Scale </li></ul><ul><li>Information Explosion </li></ul><ul><li>Energy </li></ul>
    4. 4. The need for progress is clear 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. Consumer product and retail industries lose about $40 billion annually, or 3.5 percent of their sales, due to supply chain inefficiencies. 33% of consumers notified of a security breach will terminate their relationship with the company they perceive as responsible. 33% 40 billion Explosion of information driving 54% growth in storage shipments every year. 1.5x 70¢ per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities.
    5. 5. IBM Smarter Planet
    6. 6. As the world gets smarter, demands on IT will grow 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
    7. 7. Smarter Planet … <ul><li></li></ul><ul><li>By 2010, 30 billion RFID tags will be embedded into our world and across entire ecosystems </li></ul><ul><li>An estimated 2 billion people will be on the Web by 2011 …. and a trillion connected objects – cars, appliances, camera, roadways, pipelines – comprising the “Internet of Things” </li></ul><ul><li>Every day, 15 petabytes of new information are being generated. This is 8x more than the information in all U.S. libraries </li></ul>Our world is becoming INSTRUMENTED Our world is becoming INTERCONNECTED All things becoming INTELLIGENT
    8. 8. It’s time to start thinking differently about infrastructure Infrastructure that is instrumented, interconnected and intelligent. Infrastructure that brings together business and IT to create new possibilities. DYNAMIC INFRASTRUCTURE Facilities Infrastructure Production Infrastructure Mobility Infrastructure Technology Infrastructure Communications Infrastructure + + + + VISIBILITY CONTROL AUTOMATION
    9. 9. Dynamic Infrastructure: Addressing today’s challenges and tomorrow’s opportunities Not only ensuring high availability and quality of existing services, but also meeting customer expectations for real-time, dynamic access to innovative new services. Not just containing operational cost and complexity, but achieving breakthrough productivity gains through virtualization, optimization, energy stewardship, and flexible sourcing. REDUCE COST IMPROVE SERVICE MANAGE RISK Not only addressing today’s security, resiliency, and compliance challenges, but also preparing for the new risks posed by an even more connected and collaborative world. Dynamic Infrastructure
    10. 10. Cloud Computing – a disruptive new paradigm 2009 Software as a Service Utility Computing Grid Computing Cloud Computing <ul><li>A new paradigm for consumption and delivery of IT based services </li></ul><ul><li>For the consumer: Flexibility, ease of use, new economics </li></ul><ul><li>For the provider: Self-service, economies of scale, hybrid delivery </li></ul>1990 Solving large problems with parallel computing Network-based subscriptions to applications Offering computing resources as a metered service Anytime, anywhere access to virtualised IT resources delivered dynamically as a service “ Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies operate.”
    11. 11. Agenda IBM Smarter Planet Cloud Computing ?! From Hype to Reality Adopting Cloud Computing What is IBM doing
    12. 12. What Trends Are Driving The Cloud Computing Trend? Computing Cloud Network Cloud Application Technologies: Grid, MapReduce, Hadoop, SOA, Web 2.0 Mobility: Explosion of form factors, cell phones/connected devices, Proliferation of sensors Data Center Pressures: Growing costs of power and space, server sprawl New Business Models: Advertising, Services, Subscription Broadband: Growth in Internet bandwidth enabling ubiquitous connectivity. Increased reliability and functionality embedded in the network. Open IT : Open Technologies, APIs, protocols, data formats, software platforms / data (e.g. Creative Commons, Open Data License) Industrialization of IT: Standardization, and commoditization (e.g email). Falling costs of storage. Web Applications and Platforms: Mashable applications and services built on Web Oriented Architecture (e.g. REST, RSS/ATOM) Infrastructure Technologies: Virtualization, Automation, SLAs Source: Gartner, Thomas Weisel Partners, Merrill Lynch, IBM MI Business Agility: Enter new markets, Deploy new application services. Stay ahead of compeition. Utility Computing: Get as much computing power as you need when you need it, pay for only what you use. Computing & Network Appliances: Special servers designed to handle specific tasks are blurring the lines between Network and Data Center Data Intensive Applications: From massively parallel (e.g. Google) to large data files (e.g. You Tube)
    13. 13. Cloud Computing … Attributes VISIBILITY CONTROL AUTOMATION “ Cloud” is an emerging consumption and delivery model for many IT-based services, in which the user sees only the service, and has no need to know anything about the technology or implementation Metering & billing Rapid provisioning Flexible pricing Elastic scaling Advanced virtualisation Standardised, consumable web-delivered services Service catalog ordering Ease-of-use … New economics … Flexible sourcing
    14. 14. <ul><ul><li>....service sourcing and service value </li></ul></ul>ORGANIZATION CULTURE GOVERNANCE Flexible Delivery Model <ul><li>Public … </li></ul><ul><li>Service provider owned and managed. </li></ul><ul><li>Access by subscription. </li></ul><ul><li>Delivers select set of standardized business process, application and/or infrastructure services on a flexible price per use basis. </li></ul><ul><li>Private … </li></ul><ul><li>Client owned and managed. </li></ul><ul><li>Access limited to client and its partner network. </li></ul><ul><li>Drives efficiency, standardization and best practices while retaining greater customization and control </li></ul>Cloud Services Cloud Computing Model .… Customization, efficiency, availability, resiliency, security and privacy .…Standardization, capital preservation, flexibility and time to deploy Cloud computing Hybrid
    15. 15. Cost savings and faster time to value are the leading reasons why companies consider cloud <ul><li>Percent rating factors as a major inducement (4 or 5) </li></ul><ul><li>Respondents could rate multiple drivers items </li></ul>50% 72% 77% Improve reliability Faster time to value Reduce costs Improve system availability . Hardware savings Software licenses savings Lower labor and IT support costs Lower outside maintenance costs Relieve pressure on internal resources Simplify updating/upgrading . Speed deployment Scale IT resources to meet needs Improve system reliability <ul><li>To what degree would each of these factors induce you to acquire public cloud services? </li></ul><ul><li>Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 </li></ul>
    16. 16. The IBM definition of Cloud Computing <ul><li>Cloud Computing is a new consumption and delivery model inspired by consumer Internet services. Cloud Computing exhibits the following key characteristics: </li></ul><ul><ul><li>On-demand self-service, service catalogue </li></ul></ul><ul><ul><li>Ubiquitous network access </li></ul></ul><ul><ul><li>Location independent resource pooling </li></ul></ul><ul><ul><li>Rapid elasticity </li></ul></ul><ul><ul><li>Pay per use/ flexible pricing models , eg, pay per use </li></ul></ul>Monitor & Manage Services & Resources Cloud Administrator Datacenter Infrastructure Service Catalog, Component Library Service Consumers Component Vendors/ Software Publishers Publish & Update Components, Service Templates IT Cloud Access Services
    17. 17. Consolidate <ul><li>Consolidation, systems management, and monitoring </li></ul><ul><li>Reduce infrastructure complexity, staffing requirements, and costs </li></ul><ul><li>Improve business resilience and utilization </li></ul>Virtualise <ul><li>Remove physical resource boundaries </li></ul><ul><li>Allocate less than physical boundary </li></ul><ul><li>Improve scalability, increase utilization </li></ul><ul><li>Reduce hardware costs and simplify deployments </li></ul>Automate <ul><li>Service catalog, metering, and automated deployment of virtualized resources </li></ul><ul><li>Integrated virtualization management with IT processes </li></ul><ul><li>Reduce overhead, improve productivity </li></ul>Self Service <ul><li>Centralized, robust, self serve portal for 24X7 access to services </li></ul><ul><li>Improve user satisfaction & productivity </li></ul><ul><li>Control and manage delivery, support & administrative costs </li></ul>Simplified Shared Dynamic The key building blocks of clouds are familiar…
    18. 18. Cloud Model Applies at all Levels of the IT Stack The Cloud Curtain The Cloud Curtain Curtain
    19. 19. Agenda IBM Smarter Planet Cloud Computing ?! From Hype to Reality Adopting Cloud Computing What is IBM doing
    20. 20. Gartner’s Hype Cycle special report for 2009 Source: Gartner
    21. 21. Concerns about public cloud adoption <ul><li>Percent rating the factor as a significant barrier (4 or 5) </li></ul><ul><li>Respondents could select multiple items </li></ul><ul><li>69% </li></ul><ul><li>54% </li></ul><ul><li>53% </li></ul><ul><li>52% </li></ul><ul><li>47% </li></ul><ul><li>Security/privacy of company data </li></ul><ul><li>Service quality/performance </li></ul><ul><li>Doubts about true cost savings </li></ul><ul><li>Insufficient responsiveness over network </li></ul><ul><li>Difficulty integrating with in-house IT </li></ul><ul><li>What, if anything, do you perceive as actual or potential barriers to acquiring public cloud services? </li></ul><ul><li>Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090 </li></ul>
    22. 22. What's Holding Cloud Computing Back? Source: Gartner Costs Economies of scale only go so far, unless customer is willing to trade data or advertising views for services Culture Trust, chargeback, sharing Security & Privacy Weak or non-existent perimeter, Data provenance, Service/Data Location Scalability Parallel processing, no problem; sequential processing, different story Connection Only as good as the Internet, unless you pay to &quot;harden&quot; your connection Service Management Technologies & best practices immature High Availability For workloads that are stateless, no problem; for stateful workloads, same issue as enterprises
    23. 23. Barriers To Adoptions <ul><li>Security & Privacy Many companies and governments are uncomfortable with the idea of their information be located on systems that they do not control. Authentication and access right technologies will gain importance. </li></ul><ul><li>Compliance Issues Complying with SOX, PCI-DSS, HIPPA and other regulations may inhibit clouds for some applications. </li></ul><ul><li>Reliability High availability will be a key concern and IT departments will worry about a loss of control should outages occur. Mission critical applications for large enterprises will probably not be run in the cloud. </li></ul><ul><li>Cloud Management Service Monitoring / Reporting / Management Technologies immature </li></ul><ul><li>Costs Economies of Scale only go so far, unless customer is willing to trade data or advertising views for services </li></ul><ul><li>Customization May Be Difficult Large Enterprises are used to fully customizable environments. Clouds may not offer that capability. </li></ul><ul><li>It’s Something New As with anything new, conservative oriented companies will hesitate to adopt clouds. Issues of security, trust, chargeback, & sharing will limit adoption by these types of companies </li></ul><ul><li>Organization / Culture Clouds potentially reduce IT labor costs and IT organizations may be reluctant to adopt. </li></ul><ul><li>Budgeting and Contracting Clouds will impact in how companies budget for and spend money on Information Technology. </li></ul>Source: Gartner, Forrester, CHQ MI
    24. 24. Simple Example ? We Have Control It’s located at X. It’s stored in server’s Y, Z. We have backups in place. Our admins control access. Our uptime is sufficient. The auditors are happy. Our security team is engaged. Who Has Control? Where is it located? Where is it stored? Who backs it up? Who has access? How resilient is it? How do auditors observe? How does our security team engage? ? ? ? ? ? Today’s Data Center Tomorrow’s Public Cloud
    25. 25. Categories of Cloud Computing Security Risks Compliance Complying with SOX, HIPAA and other regulations may prohibit the use of clouds for some applications. Reliability High availability will be a key concern. IT departments will worry about a loss of service should outages occur. Control Many companies and governments are uncomfortable with the idea of their information located on systems they do not control. Security Management Even the simplest of tasks may be behind layers of abstraction or performed by someone else. Data Migrating workloads to a shared network and compute infrastructure increases the potential for unauthorized exposure. Providers must offer a high degree of security transparency to help put customers at ease. Authentication and access technologies become increasingly important. Mission critical applications may not run in the cloud without strong availability guarantees. Comprehensive auditing capabilities are essential. Providers must supply easy controls to manage security settings for application and runtime environments.
    26. 26. Interoperability, Federation and Standards <ul><li>Cloud Interoperability </li></ul><ul><li>+ </li></ul><ul><li>Workloads standards </li></ul><ul><li>+ </li></ul><ul><li>Cloud Federation </li></ul>Cloud Computing | IBM Confidential | 26 May 2010 <ul><li>Move Workloads between Clouds </li></ul><ul><li>Automate Cloud Provisioning </li></ul><ul><li>Freedom of Choice </li></ul>
    27. 27. 5 Thumbs UP 5 Thumbs DOWN Fast start-up Scalability Business agility Faster product development No capital expenditures Bandwidth could bust budgets App performance could suffer Data might not be cloud-worthy Too big to scale Human capital may be lacking
    28. 28. Agenda IBM Smarter Planet Cloud Computing ?! From Hype to Reality Adopting Cloud Computing What is IBM doing
    29. 29. Cloud Computing Will Require New Disciplines and Technologies Cloud Computing will provide the ability to optimally and dynamically provide a fungible set of data center resources to a service oriented application, providing a rich user experience with a high quality of service. Emerging from new requirements to support service oriented applications while delivering higher service quality at a lower cost, Cloud Computing is becoming the new standard for Data Center architectures. To deliver on this, Cloud Computing will require new disciplines and technologies to manage processes and services. <ul><li>Requires : </li></ul><ul><ul><li>Requires fully automated, service-centric operations and processes </li></ul></ul><ul><ul><li>New service management disciplines and processes </li></ul></ul><ul><ul><li>Highly virtualized, flexible infrastructure and application architectures </li></ul></ul><ul><li>Provides : </li></ul><ul><ul><li>An “ always on ” consistent, quality service experience </li></ul></ul><ul><ul><li>Massively scalable architecture , may span multiple data centers </li></ul></ul><ul><ul><li>Low cost “ on-demand” services </li></ul></ul><ul><ul><li>High resource utilization and optimization </li></ul></ul><ul><ul><li>Adaptable to changing business requirements – on-demand </li></ul></ul>Computing Cloud
    30. 30. 6 Steps to Getting Started with Cloud Computing IT Roadmap Workload Assessment Enterprise & Cloud Mix Implementation ROI Architecture Service Definition Tools Service Publishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics Service Planning Role Based Access End Users, Operators Service Catalog Operational Console Cloud Services Cloud Platform Systems Storage Network Computing Infrastructure Platform & Applications Email Bus Apps BPM Sys Mgmt Info Mgmt Web Svr E-Mail, Collaboration Software Development Test and Pre-Production Data Intensive Processing Database ERP Enterprise Private Public Hybrid Trad IT Capital Private Cloud Hybrid Cloud Time Trad IT Rent Financial Workload Custom Standard 1 OSS BSS Infrastructure Platform Software 2 3 4 5 6
    31. 31. Step 1: IT Transformation Roadmap Simplified Shared Dynamic Consolidate Virtualise Automate <ul><ul><li>Reduce infrastructure complexity </li></ul></ul><ul><ul><li>Reduce staffing requirements </li></ul></ul><ul><ul><li>Improve business resilience (manage fewer things better) </li></ul></ul><ul><ul><li>Improve operational costs/reduce TCO </li></ul></ul><ul><ul><li>Remove physical resource boundaries </li></ul></ul><ul><ul><li>Increased hardware utilisation </li></ul></ul><ul><ul><li>Allocate less than physical boundary </li></ul></ul><ul><ul><li>Reduce hardware costs </li></ul></ul><ul><ul><li>Simplify deployments </li></ul></ul><ul><ul><li>Standardised services </li></ul></ul><ul><ul><li>Dramatically reduce deployment cycles </li></ul></ul><ul><ul><li>Granular service metering and billing </li></ul></ul><ul><ul><li>Massively scalable </li></ul></ul><ul><ul><li>Autonomic </li></ul></ul><ul><ul><li>Flexible delivery enables new processes and services </li></ul></ul>Cloud
    32. 32. Step 2: Architecture - Lifecycle of a Cloud Service Definition Offering Subscription & Instantiation Production Termination Service Designer Subscriber <ul><li>Service Definition </li></ul><ul><li>Model and instantiate services </li></ul><ul><li>Integrate with development and operations </li></ul><ul><li>Service Offering </li></ul><ul><li>Easy to access, easy to use self Service Catalogue </li></ul>Service Catalog <ul><li>Service Instantiation </li></ul><ul><li>Automated process that provide governance and efficiency </li></ul><ul><li>Fulfillment process </li></ul><ul><li>Change and Configuration </li></ul>Service Instance Termination Cloud Service Service Transition Service Operations Service Design Administrator Subscriber IT Operator <ul><li>Service Operations </li></ul><ul><li>Service availability, performance, and use reports </li></ul><ul><li>Service support, security </li></ul>Process Platform Process Engine, Middleware, Virtualized and Physical Resources Virtual Servers  Virtual Networks  Virtual Storage  Virtual Applications  Ensembles Servers  Network  Storage  Facilities Infrastructure (Power, Cooling, etc.)
    33. 33. Orchestration of Technology, Processes, People & Data to fulfill end-user requests and operational tasks Step 2: Architecture - Service Management Technology End User Requests & Operators Service Definition Tools Service Publishing Tools Service Fulfillment & Configuration Tools UI, Fulfillment, Data, MetaData Service Monitoring Tools KPIs Service Planning Infrastructure & Virtualization Platform Management Services Security Services Energy Management Services <ul><li>Assets, Configuration Items </li></ul>Service Request & Operations IT Infrastructure & Application Provider Service Creation & Deployment Simple Deployment – Automated Provisioning <ul><li>Data Center Model </li></ul><ul><li>Reservations </li></ul><ul><li>Complex Service Requirements </li></ul>Provisioning Srvs, Usage & Acct Srvs Monitoring Services Non-Traditional IT Assets Deployment Integrated with Process (e.g. ITIL, procurement) Deployment Integrated with Security, Availability and Performance Management Request a Server Request an Application Request Server + Application Guided by Management Policy
    34. 34. Step 3: Workload Analysis High volume, low cost analytics Collaborative Business Networks Industry scale “smart” applications Web infrastructure applications Collaborative infrastructure Development and test High Performance Computing TEST FOR STANDARDIZATON EXPLORE NEW WORKLOADS EXAMINE FOR RISK Database Transaction processing ERP workloads Highly regulated
    35. 35. Step 3: Workloads Most Considered for Cloud Delivery Top private workloads Database, application and infrastructure workloads emerge as most appropriate <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>Top public workloads Infrastructure and collaboration workloads emerge as most appropriate <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 and 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>Source: IBM Market Insights, Cloud Computing Research , July 2009. n=1,090
    36. 36. Step 4: Deciding the Right Mix of Delivery Models Fixed Traditional IT Managed Operations Public Cloud Services Private Cloud Services Financial Models Delivery Models Off Premises Shared Variable Off Premises Dedicated On Premises Utility Mixed On Premises
    37. 37. Step 4: The future - Three co-existing delivery models Enterprise Service Consumers Service Integration Service Integration Traditional Enterprise IT Private Cloud Services Services Service Integration Public Clouds Services Over time, IT workloads will move to Cloud delivery models as applicable for the client. <ul><ul><li>Mission Critical </li></ul></ul><ul><ul><li>Packaged Apps </li></ul></ul><ul><ul><li>High Compliancy </li></ul></ul><ul><ul><li>Test Systems </li></ul></ul><ul><ul><li>Developer Systems </li></ul></ul><ul><ul><li>Storage Cloud </li></ul></ul><ul><ul><li>Compute as a Service </li></ul></ul><ul><ul><li>Storage as a Service </li></ul></ul><ul><ul><li>Software as a Service </li></ul></ul>Examples:
    38. 38. Step 5: ROI - Delivering Measurable Results VIRTUALIZATION AUTOMATION STANDARDIZATION Legacy environments Cloud-enabled enterprise Cloud accelerates business value across a wide variety of domains Cloud attributes From Server/storage virtualization 10–20% Utilization of infrastructure 10–20% Self-service None Automated provisioning Months Change and release management Months Service catalog ordering Months Metering/billing Fixed cost model Payback period for new services Years To 70–90% 70–90% Unlimited Days/hours Minutes Days/hours Granular Months
    39. 39. Step 6: Implementation End Users Service Portal Service Request Catalog <ul><li>Provisioning Engine </li></ul><ul><ul><li>Workflows </li></ul></ul><ul><ul><li>Expert Systems </li></ul></ul><ul><ul><li>Scripts </li></ul></ul><ul><li>Optional Service Modules </li></ul><ul><ul><li>Metering / Usage Billing, Monitoring, etc. </li></ul></ul>Virtualized Cloud Infrastructure <ul><ul><li>Easy to access, easy to use Service Request Catalog </li></ul></ul><ul><ul><li>Hides underlying complex infrastructure from user and shifts focus to services provided </li></ul></ul><ul><ul><li>Enables the ability to provide standardized and lower cost services </li></ul></ul><ul><ul><li>Facilitates a granular level of services metering and billing </li></ul></ul><ul><ul><li>Workload standardization eases complexity </li></ul></ul>
    40. 40. The journey to cloud… Business Value Consolidate Virtualise Centralise Automate Optimise > > > > Organization Culture Governance … .requires an integrated and orchestrated approach.
    41. 41. Agenda IBM Smarter Planet Cloud Computing ?! From Hype to Reality Adopting Cloud Computing What is IBM doing
    42. 42. IBM Cloud Computing Services Offerings Cloud Consulting A portfolio of leadership products and services for optimizing with cloud computing that continues to grow to support customers with cloud building and cloud delivered offerings Cloud Implementation Cloud Delivered <ul><li>Infrastructure Consulting Services for Cloud Computing </li></ul><ul><li>Business Cloud Consulting Services </li></ul><ul><li>Security and Resiliency Consulting Services for Cloud </li></ul><ul><li>Resiliency Certification for Cloud Computing </li></ul><ul><li>Service Management for Cloud Computing </li></ul><ul><li>Test and Developer Cloud Services </li></ul><ul><li>Managed Security Services for Cloud Computing </li></ul><ul><li>End User Cloud Services </li></ul><ul><li>Scale out File Services </li></ul><ul><li>LotusLive </li></ul><ul><li>Computing on Demand </li></ul><ul><li>Information Protection Services </li></ul><ul><li>Managed Data Protection for desktops and laptops </li></ul><ul><li>IBM products on Amazon EC2 </li></ul>
    43. 43. <ul><li>Category: Cloud Computing </li></ul><ul><li>Smart Business Development & Test on the IBM Cloud </li></ul><ul><li>Judges: John P. Foley & Charles Babcock </li></ul>
    44. 44. IBM’s Cloud Labs support clients world-wide Silicon Valley California Wuxi China Dublin Ireland Johannesburg South Africa Hanoi Vietnam Bangalore India São Paulo Brazil Seoul S. Korea Beijing China Tokyo Japan Raleigh North Carolina Doha Qatar Technology Incubation, Customer Engagements, In-Market Experimentation
    45. 45. IBM has invested to achieve insight, innovation and breakthrough solutions IBM Transformation <ul><li>155 data centers to seven. </li></ul><ul><li>16,000 applications to 4,500. </li></ul><ul><li>$1.5 Billion savings. </li></ul><ul><li>Technology Adoption Program “TAP cloud” for 110,000 employees. </li></ul>“ Project Blue Cloud” <ul><li>Hundreds of client engagements. </li></ul><ul><li>20 Cloud centers. </li></ul><ul><li>Proof-of-concepts. </li></ul><ul><li>IBM Research/ Client collaborations. </li></ul>Academic Alliance <ul><li>Global collaboration. </li></ul><ul><li>27 Universities. </li></ul><ul><li>800+ students. </li></ul><ul><li>NSF grants to 14 schools. </li></ul>Carnegie Mellon NedBank iTricity Wuxi HCMC Univ of Technology
    46. 46. IBM’s approach is based on our own transformation <ul><li>From 2002 through 2007, IBM's own IT investments delivered a cumulative benefit yield of approximately $4 billion. For every dollar invested, we saw a $4 cumulative benefit. </li></ul>IBM IT Transformation Cloud-enabled on demand IT delivery solution <ul><li>Self-service for 3,000 IBM researchers across 8 countries. </li></ul><ul><li>Real time integration of information and business services. </li></ul><ul><li>The virtualised environment will use 80% less energy and 85% less floor space. </li></ul><ul><li>2X existing capacity, no increase in consumption or impact by 2010. </li></ul>Project Big Green <ul><li>Consolidation and virtualisation - thousands of servers onto approximately 30 IBM System z™ mainframes. </li></ul><ul><li>Additional virtualisation leveraging System p, System x and storage across enterprise. </li></ul><ul><li>Substantial savings being achieved in multiple dimensions: energy, software and system management and support costs. </li></ul>Data Centre Efficiencies Achieved 1997 Today CIOs 128 1 Host data centres 155 7 Web hosting centres 80 5 Network 31 1 Applications 15,000 4,700
    47. 47. IBM Research Computing Cloud (RC2) A living lab to advance Research strategies India Zurich Provides self service “on demand” delivery solution for research computing resources <ul><li>Zero touch support for the full life cycle of service delivery </li></ul><ul><ul><li>Order creation </li></ul></ul><ul><ul><li>Approval process </li></ul></ul><ul><ul><li>E-mail notification </li></ul></ul><ul><ul><li>Automated provisioning </li></ul></ul><ul><ul><li>Monitoring </li></ul></ul>Research Compute Cloud (RC 2 ) Watson
    48. 48. IBM Technology Adoption Program (TAP) Innovation cloud for 100,000 subscribers <ul><li>The Technology Adoption Program (TAP) is IBM's new model for managing technology to drive innovation for our internal transformation & growth </li></ul><ul><li>By implementing a private cloud using virtualization and automated provisioning, the team was able to: </li></ul><ul><ul><li>Reduce from 488 servers to 55 </li></ul></ul><ul><ul><li>Reduce from 15 admins to 2 </li></ul></ul><ul><ul><li>Reduce power costs (fewer servers) </li></ul></ul><ul><ul><li>Accelerate innovation projects </li></ul></ul><ul><ul><li>Enhance customer service </li></ul></ul><ul><li>Creates a new request: </li></ul><ul><li>Identifies needed hardware </li></ul><ul><li>Specifies required software components </li></ul><ul><li>Validates requirements </li></ul><ul><li>Specifies project details </li></ul><ul><li>Places the order </li></ul><ul><li>Approves request: </li></ul><ul><li>Receives email requesting approval </li></ul><ul><li>Reviews request </li></ul><ul><li>Approves request </li></ul><ul><li>Request is approved: </li></ul><ul><li>Receives approval and setup completion emails </li></ul><ul><li>Checks the system </li></ul><ul><li>Infrastructure is ready for deployment </li></ul>TAP Innovator TAP Innovator TAP Administrator
    49. 49. New Development Software Costs Power Costs Labor Costs (Operations and Maintenance) Hardware Costs (annualized) Liberated funding for new development, trans-formation investment or direct saving Deployment (1-time) Software Costs Power Costs (88.8%) Labor Costs ( - 80.7%) Hardware Costs ( - 88.7%) Note: 3-Year Depreciation Period with 10% Discount Rate Without Cloud With Cloud 100% Current IT Spend Strategic Change Capacity Hardware, labor & power savings re-duced annual cost of operation by 83.8% <ul><li>The IBM TAP business case re-presents an ideal environment for a private cloud implementation. By implementing virtualization and automated provisioning, the team was able to: </li></ul><ul><ul><ul><li>Reduce from 488 servers to 55 </li></ul></ul></ul><ul><ul><ul><li>Reduce from 15 admins to 2 </li></ul></ul></ul><ul><ul><ul><li>Reduce Power costs (fewer servers) </li></ul></ul></ul>Business Case Results: Annual savings: $3.3M (84%) from $3.9M to $0.6M Payback Period: 73 days Net Present Value (NPV): $7.5M Internal Rate of Return (IRR): 496% Return On Investment (ROI): 1039% Business Case Results – IBM Technology Adoption Program
    50. 50. Wuxi – China Cloud Computing Centre Software Development and Test <ul><li>Highlights </li></ul><ul><ul><li>First commercial cloud computing centre in China </li></ul></ul><ul><ul><li>Built by IBM for municipal government of Wuxi, China </li></ul></ul><ul><ul><li>Eleven parks to be created across China for software development </li></ul></ul><ul><ul><li>Accelerates transformation to a service-led economy </li></ul></ul><ul><li>Features </li></ul><ul><ul><li>Public cloud: Access through internet or secure connection </li></ul></ul><ul><ul><li>Promotes software start-up company growth </li></ul></ul><ul><ul><li>Accelerates development and test cycles through quick resource on-boarding </li></ul></ul><ul><ul><li>Offers virtualized, secure, network isolated environments </li></ul></ul><ul><ul><li>Delivers backup/restore capabilities to protect customer assets </li></ul></ul>Virtualization Workloads Virtual Storage Virtual Networks Virtual Servers Physical Layer System x, BladeCenter IBM Storage Networking Virtual Apps & Middleware Virtual Clients Power Systems Request Driven Provisioning & Service Management Dynamic Scheduling Monitoring Capacity Planning SLA Service Catalog Request UI Operations UI Company A Company B Company C Company D
    51. 51. iTricity “IT as electricity” <ul><li>Highlights </li></ul><ul><li>Started in 2003 with cloud computing </li></ul><ul><li>Moved early 2008 to the IBM Blue Cloud </li></ul><ul><li>Supported from IBM Cloud Labs in Dublin and USA </li></ul><ul><li>First commercial cloud centre in Benelux region (Belgium, Netherlands, Luxemburg) </li></ul><ul><li>Focused on public, private, hybrid and compliant cloud computing </li></ul><ul><li>Delivering Infrastructure as a Service to enterprise customers </li></ul><ul><li>Offering services on Subscription and Usage based billing </li></ul><ul><li>Cloud Subscription </li></ul><ul><li>License (12-36 months) </li></ul><ul><li>security management </li></ul><ul><li>availability management </li></ul><ul><li>continuity management </li></ul><ul><li>accessibility </li></ul><ul><li>compliance </li></ul><ul><li>fixed monthly fee </li></ul>pay per cloud instance pay per Gb storage pay per Mbs <ul><li>Usage Based Billing </li></ul><ul><li>(hour, day, week, month, …) </li></ul><ul><li>capacity management </li></ul><ul><li>performance management </li></ul>storage BLADES network Cloud Design Cloud Usage Profile € €
    52. 52. LotusLive Software as a Service – Collaboration via the cloud Rise of social networking Consumer, Community, Business Collaboration 21 st Century
    53. 53. LotusLive Files My Network Meetings Events Chat Activities Survey Forms Charts eMail
    54. 54. Obrigado! Fernando Sousa IBM ITSM Cross Sectors Portugal [email_address]