Cloud adoption success and challenges - July 2014
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To adopt cloud computing in Enterprise, there are many things to consider and manage. This material is IBM POV on challenges in bringing cloud computing to organization
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Cloud adoption success and challenges - July 2014
- 2. Cloud Adoption Success and Challenges Tan Yew Luan Director, Cloud and Managed Services
- 3. Results from IBM’s internal cloud deployment Analytics Collaboration Develop/Test Desktop Storage Product Support Blue Insight Social Develop/ Test Cloud Workplace Cloud Storage Cloud Production Cloud 300,000 users, 500 ported applications Predictive modelling (SPSS) and data mgmt 85% of web conference minutes > 275M meeting minutes in just six months. . . Server setup from 5 days to 1 hour > 90% of new server reqs via this cloud Expanded deployments & user base 2,000 users China Develop Lab 200 user pilot SBDC on the IBM Cloud File storage cloud used by > 130K users & applications Block storage cloud w/ automated tiering w/ 50% reduction $/GB Private instance up & running First applications migrated and operating Refining platform, expanding use SaaS SaaS IaaS IaaS IaaS IaaS
- 4. “Hype” vs. realities: Common “hype” about Cloud Computing Cost Savings Easy Cloud: •Rent vs. own computing •Drives growth while saving money Unlimited Computing Power Fast results Turnkey . . . . . . Can be true – IF you set it up that way
- 5. Cloud realities: Cloud is already solving many of today’s typical Enterprise challenges 10 weeks: The mean time to deliver a new (or expanded) IT Service from the time of request. Nearly 40% take more than 90 days 70% of IT budgets are Maintenance (vs. new) 2/3’s of companies miss their original . project/solution deployments Infrastructure is Important Latin America Financial Services Client It offers Corporate Customers access to 60,000 merchants servicing 3 million Prepaid “digital cash” cards. Problem: grow revenue, slash costs while servicing 200,000+ daily transactions. Cloud Solution: Slashed operational costs - 30% while supporting double-digit revenue growth with IBM PureSystems x240 running hypervisor - KVM
- 6. Cloud Risks and “Hidden Costs”: One size doesn’t fit all 6 M anaged Pr ivate Cloud Your Equipment Someone Else's resources Hosted Pr ivate Cloud Trusted 3rd Parties Equipment and Resources Dedicated Hardware Shared Cloud Services Trusted 3rd Party Shared Services, Software Pr ivate Cloud Your Equipment Your Resources Public Cloud Services Trusted 3rd Party Shared Infrastructure Hybr id Cloud Key Takeaway: Cloud Service Level Agreements (SLA’s) are very important. SLA’s record a common understanding about services, availability, security, privacy, governance, data protection, disaster recovery, workloads, audit, priorities, responsibilities, exit strategies, etc.
- 7. Cloud Risks and “Hidden Costs”: Projects can fail for many reasons Unrealistic Expectations Performance Issues Underdeveloped Transformation Strategy Business Case Poor Due Diligence Security, Data Protection, Migration, Governance. . . . . . . . . How do I mitigate Cloud risks?
- 8. One of the most significant determinations of success in moving to the cloud is the careful selection of workloads. Workloads suggested by workshop exercises and industry best practices Workload suggested based on industry best practices Source: IBM analytics using input and discussion with workshop participants
- 9. 10 Dynamic Hybrid Cloud is the future. Private Cloud & IT Benefits: • Fully customizable • Robust management • Secure by design Best of both worlds. Better outcomes. Maximize return on existing IT investments Match workloads to best-fit infrastructure Hit the right balance of risk to speed Meet seasonal capacity without CapEx Add new capabilities quickly Benefits: • Low entry cost • Pay-per-use • Highly elastic Dynamic Hybrid Public Cloud + Hybrid Cloud Private Modular Cloud SoftLayer
- 10. Managing across hybrid environments will be another determination of success of cloud adoption
- 11. Another success factor is the establishment of principles and policies for cloud deployment Corporate Governance Cloud Governance IT Governance IT Storage Resources IT Network Resources Service Support Service Delivery Financial Management Security & Compliance Management IT Governance & Management Controls Infrastructure Services Common IT Services Application Services 06. Service Execution Infrastructure Service Automation
- 12. Thinking beyond governance, there is a need to look at new Cloud Roles in the organization Automation demands new skill sets to sustain desired behavior and results Provisioning Self-Service Virtualization Cloud Bottom line: Cloud services demand different roles with different skill sets.
- 13. What Should You Do? 1. Think big, start small, pilot fast. Start by developing your business case and remember that Cloud is more than just cost savings. It is truly capable of driving business model transformation. 2. Identify a pilot project to better understand “how” transforming applications delivery can truly drive line of business (LOB) improvements. 3. Remember that not all workloads are suited for Cloud. 4. Successful cloud ecosystem strategies will include both business and IT stakeholder team to accelerate results.
- 14. IBM has invested Billions in Cloud Computing to ensure our clients can grow and prosper … Strategize how to use cloud to drive revenue growth and efficiencies Build and run your private or hybrid cloud Utilize cloud services delivered from IBM Cloud Data Center Expansion SoftLayer Acquisition Acquisition Investment SaaS Offerings Experts
- 15. IBM has a full breadth of cloud offerings to help you achieve powerful business outcomes, no matter where your entry point is. Strategize how to use cloud to drive savings and revenue growth. Build and run your private or hybrid cloud. Utilize cloud services delivered from IBM SmartCloud. Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Expert Integrated Systems Cloud Platform Technologies Cloud Infrastructure Technologies Hybrid Cloud Technologies Cloud Strategy and Design Cloud Implementation Cloud Migration Services Cloud Security Services
- 16. We can tailor cloud delivery models to meet your unique needs— from private, public to hybrid cloud. Private clouds Hybrid cloud Public cloud On customer premise On customer premise Hosted by IBM Hosted by IBM Hosted by IBM Enterprise Enterprise IBM hosted and operated IBM hosted and operated Private cloud Managed Enterprise data center Customer operated private cloud Dedicated private cloud IBM hosted and operated Shared (community) private cloud Public cloud services Enterprise data center IBM operated High — Customization — Low Users
- 17. Cloud delivery models to meet client needs Private clouds Hybrid cloud Public cloud On customer premise On customer premise Hosted by IBM Hosted by IBM Hosted by IBM Enterprise Enterprise IBM hosted and operated IBM hosted and operated Private cloud Managed Enterprise data center Customer operated private cloud Dedicated private cloud IBM hosted and operated Shared (community) private cloud Public cloud services Enterprise data center IBM operated High — Customization — Low Users PMC SCE+ SoftLayer PMC +
- 19. Private Modular Cloud Concept Cloud Management 100 VMs Cloud Resource Pool Storage 100 VMs Cloud Resource Pool Storage New Resource Cloud Resource Pool Storage Existing Resource Cloud Resource Pool Storage Cloud User Portal Cloud User IBM SCO Software Image
- 20. SoftLayer Cloud Scenario - DMZ 5 VMs On Premise Resource Storage Firewall End User Internet 5 VMs On Premise Resource Storage Internal DMZ
- 21. SoftLayer Cloud Scenario - DMZ End User 5 VMs Cloud Resource Pool Storage 5 VMs On Premise Resource Storage Firewall Internal
Editor's Notes
- IBM has migrated several fundamental IT workloads to cloud, and we have witnessed major efficiency improvements while capturing some impressive savings in capital and operations: Analytics – Blue Insight Situation: Business intelligence applications were being built separately by individual business units, creating silos of information and massive duplication. How Cloud Transformed: By delivering analytics as a service, making the capability accessible to 300K+ users globally. Business units across IBM tap into our centralized analytics cloud, Blue Insight, for tools and business intelligence aggregated from hundreds of information warehouses. The business value of these analytic insights is estimated to be more than US$300 million for the top 20 projects alone, out of approximately 300 active projects. In addition, Blue Insight exploits latest technologies to process queries up to 100X faster. Collaboration at IBM-scale Situation: Portfolio of siloed social and collaborative applications constrained collaboration. IBM needed the ability to integrate more than 425,000 employees spread across 170 countries, 40% of whom work remotely. How Cloud Transformed: Our IBM Connections social networking platform in the cloud has dramatically increased workplace collaboration, productivity and innovation, helping employees identify and build networks of experts. Cloud has enabled 2.1M connections among employees, 127K communities, and currently supports over 50 million web conferencing minutes per month. Develop and Test Cloud Situation: Testing backlog caused by provisioning challenges had become the single biggest factor delaying IBM’s new application deployments. How Cloud Transformed: Our development and test cloud has virtually eliminated IBM’s testing backlog, speeding new development and enabling applications to launch much sooner. Development teams have seen server provisioning and configuration drop from 5 days or longer to as little as 1 hour. Storage Cloud Our storage cloud cut the cost-per-byte of data stored by nearly 50 percent at each of the IBM facilities in which it was implemented. This has allowed these facilities to accommodate the explosive growth in storage demand—25 percent or more annually—without increasing their total storage budget, and they are expected to be able to do so for four straight years.
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- IBM believes that for most organizations, particularly those that have substantial investments in IT, the right approach is not private cloud or public cloud. In some cases [give private cloud example] the combination of private cloud and traditional IT is the right answer for organizations. Others [give public cloud example] benefit greatly from the quick execution and ROI from a public cloud. The future will be dynamic hybrid because it leverages the best of both worlds and allows for better outcomes. For companies with large IT investments, Hybrid allows you to Maximize return on existing IT investments by transforming IT into self-service private clouds Hybrid allows you to keep some workloads on best fit infrastructure, and move others to public cloud for better economics Hybrid lets you keep critical, sensitive data in house, while innovating on public so you have the right balance of risk to speed e.g. connect ERP to public CRM to enhance client experience. Hybrid will lets you extend your current IT and private clouds with public capabilities to meet seasonal capacity requirements (e.g. holiday shopping), without the need for additional CapEx Hybrid allows you to set up development environments quickly for innovation and add new capabilities like analytics or mobile software as a service on public quickly, to compose more competitive business services and processes.
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- One out of five organizations has discovered a secret source of competitive differentiation. It allows them to serve customers in new ways and reimagine their business models. It can help surface valuable insights from their data and transform how they make decisions. It enables them to tap expertise from across their entire ecosystem. What’s their secret? It’s cloud computing – their engine for growth. The study also shows that cloud is far from being just an IT obsession -- business leaders are becoming increasingly focused on the business value cloud provides, and their strategic interest in cloud is poised to surpass that of IT. What can we learn from the Pacesetters at the forefront of this movement – the organizations that told us they’re gaining competitive advantage through cloud? We studied what they’re actually doing with cloud -- and we found that Pacesetters are building competitive advantage in three primary ways – through strategic reinvention, better decisions and deeper collaboration. And, in each of these area, they’re deriving business results from their use of cloud. Let’s look at these key data points. Pacesetters are 136% more likely to use cloud to reinvent customer relationships. They’re 170% more likely to use analytics extensively via the cloud to derive insights for their organizations, 117% are more likely to use cloud to enable data-driven decisions, and They’re 79% more likely to use the cloud to find experts anywhere in their ecosystem - inside or outside their organization - and leverage their expertise, and last but not least, 74% are more likely to use cloud to improve integration between IT development and operations.
- Page 27: Now, just like our clients, IBM is placing big bets on cloud – both in our own use of cloud technology and in building up our capabilities for clients. IBM has acquired 16 cloud companies since 2007 and has invested $7 billion in building a high value cloud portfolio. We have thousands of cloud experts with deep industry knowledge, and we boast over 1,500 cloud patents. And in January, IBM announced a $1.2 billion investment to significantly expand our global cloud footprint by the end of 2014 – for a total of 40 cloud data centers. So when it comes to our portfolio of capabilities, we have the consultants and experts to help you think through your cloud strategy… we have the software, hardware and services to help you build your own cloud… and we have the “as-a-service” offerings to allow you to tap into our cloud services. And we’re continuing to place big bets on cloud to expand our capabilities. What you will see and hear from us over the next three days are some of the bold moves we’re making in cloud, and some of the bold moves you’ll be able to make, in collaboration with us. Today, we are focusing on new announcements that allow you to tap into our services. Tomorrow, we will also focus on new announcements to help you build clouds.
- With the convergence of mobile, social and analytics, organizations are discovering entirely new ways to engage with their customers, employees and partners. And with cloud, they’re doing it quickly, iteratively and with very little risk. To accelerate the value of cloud you need all its layers (BPaaS, SaaS, PaaS, IaaS), a standards-based approach and a unique mix of skills. Only IBM can help you... • Think it: The IBM experts you need to strategize how to use cloud to drive not just savings, but revenue and growth. And the expertise to define the optimal way to integrate cloud into your business. • Build it: The IBM Cloud technologies and services you want to build and run your private or hybrid cloud, new apps that foster deeper insights and analytics in the cloud. • Tap into it: IBM SmartCloud: the instant way to tap into analytics, SaaS business applications and run your business in the cloud. as-a-service offerings ready for use in infrastructures that are managed for clients, which enables them to instantly tap into analytics, SaaS business applications and hosting in cloud environments.