Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. It allows users to access technology-based services from the network cloud without knowledge of, expertise with, or control over the technology infrastructure that supports them.

1. Cloud Computing
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Mikael Haglund, Chief Technologist, IBM Svenska AB
1 © 2010 IBM Corporation

2. 2 © 2010 IBM Corporation

3. What is Cloud Computing?
A user experience and a business model
Cloud computing is an emerging style of IT delivery in which applications, data, and IT
resources are rapidly provisioned and provided as standardized offerings to users
over the web in a flexible pricing model.
An infrastructure management and services delivery methodology
Cloud computing is a way of managing large numbers of highly virtualized resources
such that, from a management perspective, they resemble a single large resource.
This can then be used to deliver services with elastic scaling.
Service Consumers
Datacenter
Monitor & Manage Infrastructure Access
Services & Resources Services
IT Cloud
Component Vendors/
Service Catalog, Software Publishers
Component
Cloud
Library
Administrator Publish & Update
Components,
Service Templates
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4. Clients and Customers
INNOVATIVE BUSINESS MODELS
SERVICES SERVICES SERVICES
Connect
Connect
Service Integration Service Integration Service Integration
Enterprise IT Enterprise Public
Cloud Clouds
Enterprise
Source: IBM Corporate Strategy
© 2010 IBM Corporation

5. Private Cloud has near term appeal across IT activities and workloads
Private Cloud Public Cloud
(64% Appeal on Avg.) (30% Appeal on Avg.)
Key
Currently Using/Planning to Use
Would Consider In The Next 12 Months/12+Month
Source: IBM Cloud Workload Survey
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6. IBM Technical Adoption Program (TAP)—ROI Analysis
Reduced Capital Expenditure
New
New Reduced Operations Expenditure
100% Development
Development
Liberated
Liberated
Additional Benefits
funding for new
funding for new
Software Costs Strategic Reduced risk, less idle time, more efficient
development,
development,
Change use of energy, acceleration of innovation
transformation
transformation
investment or Capacity projects, enhanced customer service
investment or
direct saving
direct saving
Power Costs
Current Deployment (1-time)
Deployment (1-time)
IT Labor Costs
Spend (Operations and Business Case Results:
Maintenance) Software Costs Annual savings: $3.3M (84%)
from $3.9M to $0.6M
Power Costs Hardware,
(- 89%) labor &
power
Payback Period: 73 days
Hardware
Hardware Labor Costs
Labor Costs savings Net Present Value (NPV): $7.5M
Costs
Costs (( -- 81%)
81%) reduced Internal Rate of Return (IRR): 496%
((annualized)) annual cost
annualized Hardware Costs
Hardware Costs
Return On Investment (ROI): 1039%
of operation
(( -- 89%)
89%) by 84%
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