This document discusses cloud computing and its benefits. It defines cloud computing as the provision of virtualized resources over the internet or intranet. The key benefits are: (1) reducing costs through on-demand access and pay-per-use models, (2) improving quality of services and enabling new services, and (3) reducing risks through security and resiliency. IBM can help clients develop cloud strategies, condition existing infrastructure for cloud adoption, and pilot initial projects to realize these benefits through virtualization, automation, and optimized resource utilization.

1. Cloud
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2. Agenda
1 What is Cloud?
2 What is the Benefit to Business?
3 How Can it be Used?
4 How Can IBM Help?
5 Next Steps?
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3. There is greater need for IT to help address business challenges
Doing More with Less
Reduce capital expenditures and
operational expenses
Higher Quality Services
Improve quality of services and deliver new services
that help the business grow and reduce costs
Reducing Risk
Ensure the right levels of security and resiliency
across all business data and processes
Breakthrough Agility
Increase ability to quickly deliver new services to
capitalize on opportunities while containing costs
and managing risk
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4. Cloud computing is the provision of dynamically scalable and often
virtualised resources as a service over the internet (public cloud) or
intranet (private cloud).
Business Perspective IT Perspective
A user experience & business model An infrastructure management and
• Standardized, self service offerings services delivery method
• Virtualized resources
• Rapidly provisioned services
• Managed as a single large resource
• Flexibly priced
• Delivered services with elastic scaling
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4 Cloud Computing - Strategic View IBM Confidential © 2010 BM Corporation

5. Cloud is driving business innovation with convergence of available
technologies
Convergence of available technologies, a demanding marketplace and a shift in societal
expectations
An Example from the Banking Industry…
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6. Agenda
1 What is Cloud?
2 What is the Benefit to Business?
3 How Can it be Used?
4 How Can IBM Help?
5 Next Steps?
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7. Cloud Computing provides benefits across the enterprise
IT Customers IT Analysts
Ability to elastically Ability to elastically scale resources
scale resources and maintain at significantly lower
high quality of service incremental management cost
Common Attributes of Clouds
Enhanced user experience
Elastic scaling
Automated provisioning
Highly virtualized
End Users Financial Analysts
Rapid time to market
Anywhere access to applications for new services.
through a simplified user interface Anywhere access to applications
through a simplified user interface
Source: IBM Corporate Strategy analysis of MI, PR, AR and VCG compilations
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8. Why the C-Suite is interested in Cloud Computing
• Faster, broader, more uncertain change
• Innovation for competitive advantage
• Strategic alignment
CEO
• Improved growth & Cloud • Flexible, adaptable,
profitability Computing is
extendable systems
• Governance, risk & CFO a key catalyst CIO • Reliability
compliance for these
changes • User adoption &
• Transparency,
empowerment
visibility & control
The ability to adapt a business model to meet new expectations and capture new short lived revenue
streams, requires highly flexible core processes and IT infrastructure that can turn on a dime –
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9. Resulting in Business and IT aligned benefits
 Accelerate innovation projects that can lead
to new revenue
Make IT an enabler of, not a barrier to rapid innovation
 Provide an effective and creative service delivery model
Deliver services in a less costly and higher quality business model,
while providing service access ubiquity
 Create a sustainable competitive differentiation
Rapidly deploy applications over the internet and leverage new
technologies to deliver services when, where and how your clients
want them-before your competitors do.
 Lower IT barriers to launch new business services
Build and integrate modular services –in record time- by leveraging
“rentable” IT services capabilities, pay only for what you use.
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10. Cloud computing drives exponential improvements across IT and
the Business
Cloud attributes From To
Server/storage Cloud accelerates business value
VIRTUALIZATION
10–20% 70–90%
virtualization across a wide variety of domains
Utilization of 70–90%
10–20%
infrastructure
Self-service None Unlimited
AUTOMATION
Automated provisioning Months Days/hours
Change and release
Months Minutes
management
STANDARDIZATION
Service catalog ordering Months Days/hours
Fixed cost
Metering/billing Granular
model
Payback period for new
Years Months
services
Legacy environments Cloud-enabled enterprise
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11. Private Test Cloud ROI Analysis
Example International Financial Institution
Saving by Category
1st Year After Cloud Transformation
Software
Testing Hardware Cost
Process Cost 3%
Overhead 12%
17%
Cost Structure
With and Without Cloud Transformation
Provisioning Sys. Admin.
Cost Cost
38% 30% $9 Without
Cost $Million With
$0
Current Year 1 Year 2 Year 3
11 11
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12. Agenda
1 What is Cloud?
2 What is the Benefit to Business?
3 How Can it be Used?
4 How Can IBM Help?
5 Next Steps?
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13. Some workloads are currently ready to be delivered in a cloud model
Currently Moving To Cloud Model Not Yet Moving To
Cloud Model
Test and Collaboration and Proprietary
development e-mail applications
Complex
Desktops Backup and restore transaction
processing
Highly sensitive
data
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14. Today there are three primary delivery models that companies
are implementing for cloud
Enterprise
Traditional Public Clouds
Enterprise Private Cloud
IT
Hybrid Cloud
Private Cloud Hybrid Cloud Public Cloud
IT activities/functions are provided “as Internal and external IT activities/functions are provided
a service,” over an intranet, within the service delivery “as a service,” over the Internet
enterprise and behind the firewall methods are integrated,  Key features:
 Key features include: with activities/functions – Scalability
– Scalability allocated to based on – Automatic/rapid provisioning
– Automatic/rapid provisioning security requirements, – Standardized offerings
– Chargeback ability criticality, architecture – Consumption-based pricing.
– Widespread virtualization
and other established – Multi-tenancy
policies. – Capital Preservation
Source: IBM Market Insights, Cloud Computing Research, July 2009.
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15. Workloads will need to be determined based on value and
feasibility
Which workloads offer the most favorable entry points for each of the cloud delivery models?
Analytics Collaboration Development Desktop and Infrastructure Infrastructure
and Test Devices Compute Storage
Top public workloads Top private workloads
 Audio/video/Web conferencing  Data mining, text mining, analytics
 Service help desk  Security
 Infrastructure for training and demos  Data warehouses or data marts
 WAN capacity and VoIP  Business continuity, disaster recovery
 Desktop  Test environment infrastructure
 Test environment infrastructure  Long-term data archiving/preservation
 Storage  Transactional databases
 Data center network capacity  Industry-specific applications
 Server  ERP applications
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Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

16. Agenda
1 What is Cloud?
2 What is the Benefit to Business?
3 How Can it be Used?
4 How Can IBM Help?
5 Next steps
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17. Delivering Cloud Computing to our Clients
IBM has 3 choices to deploy the workloads that matter to our
clients for greater efficiency, productivity, and control
Smart Business Services Smart Business
cloud services delivered Systems
purpose-built
infrastructure
Enterprise Hardware
Data Center
Software
Private
Cloud
Cloud Services
Standardised services on Private cloud services Pre-integrated
the IBM cloud behind your firewall, hardware, software
built and/or run by IBM and service
offerings
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18. IBM Cloud Offerings
Analytics Collaboration Development Desktop and Infrastructure Infrastructure Business
and test devices compute storage services
Smart Business IBM Lotus Live Development and Test on the IBM CloudIBM Information ProtectionBlueWorks
IBM Smart Business Smart Business Desktop Computing on Demand
IBM on the IBM Cloud BPM Services
on the IBM cloud (design tools)
Standardized services
on the IBM cloud IBM Lotus® iNotes® Smart business
IBM Smart business end user support – self enablement portal
expense reporting
on the IBM cloud
IBM Smart IBM Smart Analytics Cloud IBM Smart Business IBM Smart Business IBM Smart BusinessIBM Smart Business Storage Cloud
Development and Test Cloud Cloud
Desktop Development and Test Cloud
Business Services
Private cloud services,
behind your firewall,
built and/or managed
by IBM
IBM Smart IBM Smart Analytics System IBM CloudBurst™ IBM CloudBurst IBM Information Archive
Smart business for
family ™ family
small or midsize
Business Systems business (backed by
Pre-integrated, the IBM cloud)
workload-optimized
systems
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19. How we help our Clients get started with cloud computing
Develop cloud strategy and Condition existing infrastructure
roadmap for cloud
 Assess cloud deployment models, • Virtualize and automate existing
service options and workloads systems

Plan and  ROI Analysis • Add service management, service
Prepare  Choose initial project catalog
Start with an isolated pilot cloud deployment
 Architect and implement low-risk workloads such as test and development for
cloud
Pilot and
Deploy
  Standardize applications and systems
 Deploy self-service portal
Roll out cloud across the enterprise
 Enable additional workloads on private cloud
 Add new users
Extend and
Evolve
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  Use trusted public cloud services to supplement business and IT
workloads
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20. The journey to cloud needs Flexible, Efficient, Automated
Infrastructure
Business Value
Centralize Consolidate Virtualize Automate Optimize
> > > =
Organization Culture Governance
….requires an integrated and orchestrated approach.
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21. IBM can help enable your journey to Cloud Computing
 Rapid deployment of
infrastructure and
applications.
 Request-driven service
management.
 Service Catalog.
 Integrated service
 Virtualization. lifecycle mgmt.
 Better hardware  Expose resources “as-
utilization. a-Service”.
 Improved IT agility.  Integrated Security
infrastructure.
 Rapid provisioning of IT
resources, massive
scaling.
 Dynamic service mgmt.
 Energy saving via auto
 Server Consolidation.
workload distribution.
 Streamline Operations – manage
physical and virtual systems.
 Lower power consumption.
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22. Agenda
1 What is Cloud?
2 What is the Benefit for Business?
3 How Can it be Used?
4 How Can IBM help?
5 Next Steps
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23. Moving forward
 Where does Cloud Computing fit in your organization?
 What are the key projects you have underway or are planning to launch?
 What are your plans to evaluate/implement clouds?
 How can IBM help you to proceed?
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24. Thank you!
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