The document discusses the industrialization of information through cloud computing. It notes that many lessons from manufacturing are being applied to cloud data centers, which can be viewed as "information factories." The cloud allows organizations to drive revenue growth and efficiencies. Hybrid cloud computing should be examined as part of any technology strategy. Knowledge is cited as the biggest barrier to cloud adoption.

1. A New Way Forward
Industrialization of Information
May 2015
Ben Amaba, Ph.D., P. Engr, CPIM®, LEED® AP BD+C
Think it.
Organizations use cloud
to drive revenue growth
and efficiencies
Build it.
Build and run your
private or hybrid cloud
Use it.
Utilize cloud services
available now

2. ©IBM Corporation 2
• It is no longer just about cost, it is about risk
mitigation by keeping up or staying ahead.
• If you take nothing else away from today, its
that hybrid cloud computing should be
examined carefully as part of your strategy
• Knowledge is the biggest barrier
Author and technology prognosticator George Gilder has called today’s cloud data
centers ’information factories.” Since the cloud can be viewed in part as
representing the industrialization of IT and the end of the era of artisanal
boutiques. Many of the lessons learned in the evolution of manufacturing are
being applied – consciously or not – via the cloud.
"Make This Your Year to Grow." If you want to grow, you must embrace the mobile
cloud-based world. Even if you merely want to survive, you must be mobile —both to
help customers find you and to run your business…. Rhonda Abrams, Special for USA
TODAY 2:03 p.m. EDT May 8, 2015

3. ©IBM Corporation 3
3

4. ©IBM Corporation 4
Are you part of the change overall or are you inertia?
http://www.theatlantic.com/technology/archive/2012/04/the-100-year-march-of-technology-in-1-graph/255573/
Innovation # of years to get to 90% penetration
Auto ~80 years
Radio ~30 years
Color TV ~20 years
Innovation # of years to get to ~60% penetration
Smartphone 2 years !
“The rate of Android and iOS device adoption among
international users has out-paced the 1980s PC
revolution, the 1990s Internet boom, and the social
networking craze “

5. ©IBM Corporation 5
What is happening…

6. ©IBM Corporation 6
What is driving change…
6

7. 86% of companies use more than one type of cloud service and
most use 4. There is a high probability you used the Cloud today.
500
625
700
810
1000
1300
300
600
900
1200
1500
2012 2013 2014 2015 2016 2017
Cloud Storage Subscriber Numbers
Million
Forecast
Source: Institute of Engineering and Technology, IHS ©

8. Cloud Computing characteristics that are
easy to remember
CLOUD (Joe Weinman – Cloudonomics)
• Common infrastructure
• Location Independence
• Online accessibility
• Utility Pricing
• On Demand resources

9. ©IBM Corporation 9
Cloud Computing Layers
9
Market Disruptions for Innovations, Services, and Products

10. Traditional Infrastructure Model has a challenge
to keep up with the speed of the Innovation.
Acceptable Surplus is the past
Forecasted
Infrastructure
Demand
Surplus
Time
Capital

11. Variable demand is the reality and forecasts are
not precise. Unnecessary surplus is a cost that
should be avoided.
Actual
Infrastructure
Demand
Time
Capital
Workload spikes more frequent and significant with increases every day.
Death of Michael Jackson: INCREASE of 22% of tweets, 20% of Wikipedia traffic, Google
thought they are under attack
Obama inauguration day: 5x increase in tweets

12. Unacceptable Deficit is worse. The size of the penalty is linearly
proportional to the size of the delay.
Deficit
Time
Capital
it’s worth noting that major e-commerce providers have conducted experiments and
determined that a few hundred milliseconds’ delay in serving web pages (i.e., few
tenths of second) can cause revenues to decline by 20%.
Joe Weinman

13. Utility Infrastructure Model is responding
to disruptions with a choice.
Actual
Infrastructure
Demand
Time
Capital
Focus on customer intimacy, product differentiation, operational excellence, or the innovation
cycles that drive them.
Joe Weinman
The risk for trying new tech initiatives is greatly reduced while the REWARD remains high

14. *15% utilization based on two reports from Gartner Group, Cost of Traditional Data Centers (2009), and
Data Center Efficiency (2010).
If you are just looking at cost, that is easy: Computers typically
require 70% of their total power requirements to run at just 15%
utilization
POWER: Computers typically require 70% of their
total power requirements to run at just 15%
utilization.
Focus on customer intimacy, product differentiation, operational excellence, or the innovation
cycles that drive them.
Joe Weinman

15. ©IBM Corporation 15
Lack of knowledge is the greatest barrier to cloud
adoption
30% of respondents said they didn’t know
enough to know what the barriers are
Question 12: What are
the barriers that
prevent your
organization from using
cloud computing or
using cloud computing
more? (N=9,051)
15
TechSoup.org

16. Think Carefully about Security
• Enhanced Security
– Bank versus Shoebox
• Security is the number one concern preventing
folks from going to the cloud – flawed belief
• Environmental Protection
2013 VSAE Annual Conference
Data are important assets. So is money. Money and other valuables
such as jewelry can be kept under your mattress – a premises
solution – or in a bank – a cloud solution. Which has the better
security? The bank can afford stronger security in terms of vaults
with foot think hardened steel walls, and can have a security team
made up of security professionals and one or more people on
payroll who stay abreast of new burglary strategies and determine
and implement counterstrategies

17. ©IBMCorporation 17
Frontline
decision making
New mobile apps are consolidating
decision making at the fingertips of
people who need to act
If you don’t think your competitors or the industry is changing to use the Cloud &
Mobile technologies, you may want to check again.
Disruptors are reinventing business processes and leading their industries with
digital transformations and data analysis
Real time insight
driven processes
Insight from nontraditional
data sources is being infused in business
processes to create new business moments
Digital
Innovation
New innovations are composed
leveraging digital services from a broad
ecosystem

18. ©IBM Corporation 18
The new hybrid cloud transforms roles
across and outside the organization, recall
from our earlier slide: “Why is data
important?”
– Business leaders innovate
– Developers are empowered
– IT leaders advance change
– Data Analysis
Massachusetts Institute of Technology professor Erik
Brynjolfsson have found that a “one-standard-deviation
increase toward data and analytics was correlated with
about a 5 to 6 percent improvement in productivity and
a slightly larger increase in profitability.”

19. ©IBM Corporation 19
IBM’s most recent partners exemplify
transformations that will effect all of us
IBM and The Weather Company Partner to Bring Advanced
Weather Insights to Business
IBM Delivers First Cloud Data Services with Twitter Built-In for
Business Professionals and Developers
Apple and IBM Forge Global Partnership to
Transform Enterprise Mobility
IBM and SAP Partner to Accelerate Enterprise Cloud Adoption

20. ©IBM Corporation 20
Business Process
as a Service
Enabling business transformation
Business Process
Solutions Application Application Application Application Application
Software
as a Service
Marketplace of high value consumable business applications
Platform
as a Service
Composable and integrated application development platform
Infrastructure
as a Service
Enterprise class, optimized infrastructure
External
Ecosystem
Industry Collaboration Human
Resources
Big Data &
Analytics
Commerce Marketing
Development Big Data &
Analytics
Security Integration Mobile Social Traditional
Workloads
Built using open standards
Compute Storage Networking
Built using open standards
o ERP Systems
o Smarter Analytics
o UrbanCode
o CRM
o Watson solutions
o Software solutions
o Cloudant
o Softlayer
o Cloud Managed Services
Public. Private. Dynamic Hybrid.
o Aspera
Consider a hybrid strategic approach
o IBM Cloud for System z
o Bluemix
o Mobile First

21. ©IBM Corporation 21
The industrialization of IT where demand met supply - The Critical
Measure of DevOps Success. The Hidden Factory Opportunity -
Manufacturability matches DevOps
Overhead
Productive
80%
20%
50%
50%
Hidden Factory= additional value you could create if you eliminated waste and redirected those resources at innovation
DevOps
Transformation

22. What if there were a DevOps integrated into a hybrid
cloud?
Git Hosting
With autodeploy
Continuous
Delivery
Pipeline
(CI/CD/single and multi-stage
deploy)
Monitoring
& Analytics
Mobile
Quality
Planning
&
Tracking
Web IDE
Idea for a New App
Free
Freemium, Pay as you Go, and
Subscription options
Problem in Production
Dev Ops
22

23. z
Management
Back-end
What if Mobile Apps
were transparent?
Front-end
30%
of the value
and effort is
visible
(mobile UI)
70%
of the value
and effort
lies under
the surface
Short time to market
Web? Hybrid?
Native?
Teamwork
Industrialize app
dev
Integrate with SDLC
Ensuring continued
support in a quick-
changing
landscape
Track problems that
affect UX
Manage and
enforce app
versions
Security
Data
protection
Push
upgrades
App
Authenticity
User
authentication
Integration
Connect to back-end
Efficient and flexible
push notifications
Offline availability
B2E app
distribution
Track and leverage
location

24. What if you could customize the mobile platform for
your business?
Software or As-a-ServiceOn
premises
Cloud
Cloud
Services
Contextualize
& Personalize
SecureContinuously
Improve
Rich Data
APIs
New or Existing App
Native Hybrid HTML5 3rd Party Tools
IBM MobileFirst Platform Modular Services
Systems
of Insight
Systems
of Record

25. Compose
applications
from a rich library of IBM, 3rd
party and open source
runtimes, services and APIs.
Code with
confidence
knowing IBM’s cloud
platform is built on a
foundation of open
standards.
Deploy and scale
new applications and
services with infrastructure
services from IBM
SoftLayer.
• DevOps
• Big Data
• Mobile
• Cloud Integration
• Security
• Internet of Things
• Watson
• Data Management
• Web and Application
• Business Analytics
.
Services on bluemix.net include:
Sign up at ibm.biz/HackBluem
IBM Bluemix
25
https://www.youtube.com/watch?v=OD1NP-Yk2BI
https://www.youtube.com/watch?v=ZR_jDitw0Sc
Platform as a Service (PaaS) for Composing Applications
that you could reuse

26. What if you could speed up the data transfer
FASP™ – network performance breakthrough
26
TCP transfer times limited by packet loss, delay (network distance) NOT BANDWIDTH
Aspera transfer times shorten linearly with bandwidth
Independent of packet loss, delay (network distance)
Cross US – Add 1% to 5% Intercontinental – Add 1% to 10% Satellite – Add 1% to 10%

27. ©IBMCorporation 27
Digital
transformations
require a mix
of deployment
models
(Intermodal) and
enterprise grade
world class
infrastructure
World Class
Cloud
Infrastructure
40 global cloud centers
Secure integration to on-premises systems
 Global cloud footprint:
‒ 40 cloud centers to handle data residency,
compliance and flexibility
 Expansive open standard support:
‒ OpenStack
‒ Cloud Foundry
‒ Containers
 Flexibility: Systems and networking
‒ x86: Linux or Windows
‒ IBM Power Systems: AIX or Linux
‒ High speed connectivity
‒ Multi-cloud storage gateway
‒ Dial-in level of management desired
IBM Cloud
Infrastructure Services

28. ©IBM Corporation 28
Real World Workload Tests Show SoftLayer Has Significant Price-Performance
Advantages vs. Compared Competitors
Vs. Competitor 1Use case
Hosted private
cloud
(Consolidation)
1.9X
Higher VM density lowers cost
Low crossover point
Extend existing admin skills to
hosted private cloud
Observations/Insights
Messaging
(Network intensive) 2.4X Bare Metal servers on SoftLayer
handle heavy network demand
Analytics
(Storage intensive) 2.3X
Provisioning for high IOPS on
Competitor 1 is too expensive.
Competitor 2 I/O performance
is too slow; Complex to
configure
Web application -
virtualized
(CPU Intensive)
1.7X
Use virtualization when it best
fits workload characteristics
Web application -
non-virtualized
(CPU Intensive)
4.1X
Outstanding performance
and control using bare metal
1.9X
11X
1.7X
1.8X
4.2X
Vs. Competitor 2
Figures and claims on this slide intended as a summary of material documented on accompanying slides within the “Competitive Perspective on Cloud”
presentation and may not be used without the accompanying slides. Pricing based on published US list prices available for data center location specified as of
2/16/2015 and calculated by projecting costs measured over a fixed testing period to a 3 year TCA, including all hardware, software and data transfer monthly
costs. Option for bare metal servers not available in Competitor Cloud environments.

29. ©IBM Corporation 29
What if you could
think, build and use it
the way you see fit?
“IBM is ranked as the #1
hybrid cloud provider for
the enterprise.”
Synergy Research Group,
Wall Street Journal
Only IBM Cloud provides:
– Full hybrid cloud transparency
– Fast hybrid app development
and full orchestration of
business processes
– The right access and relevant
insight across
all hybrid cloud data
IBM Cloud supports 47 of the
top 50 Fortune 500
companies.

30. ©IBM Corporation 30
Key Takeaways
–Time to adapt to the new world
–Cloud computing should be
closely examined as part of
your overall enterprise IT
strategy
–Hybrid cloud accelerates digital
transformation
– Knowledge: IBM Cloud delivers
a broad set of open by design
hybrid capabilities and
expertise to help you win

31. ©IBM Corporation 31
© Copyright IBM Corporation 2013. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied.
IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties
or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products,
programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole
discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the
Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be
trademarks or service marks of others.
Learn more at: ibm.biz/HackBluemix

32. ©IBM Corporation 323232
CONTACTS:
Dr. Ben Amaba, PE, CPIM®, LEED® AP BD+C
baamaba@us.ibm.com
Industrial, Systems and Software Engineering