The document provides an overview of IBM's cloud computing initiatives, highlighting Ireland as a pivotal hub for IBM's global research and innovation in this field. It discusses the characteristics and benefits of cloud computing, including scalability, cost efficiency, and simplified user experience, while outlining various service models. The document also presents IBM's internal business case demonstrating significant cost savings and efficiency improvements achieved through cloud implementation.

1. IBM Cloud Computing An overview Pol Mac Aonghusa Dublin Cloud Lab April 2009 [email_address]

2. EMEA Cloud Lab - Driving Leadership in Cloud Computing Center Charter Worldwide Cloud delivery infrastructure Deep skills and resources Research Development  ’ "IBM's European hub for Cloud Computing highlights Ireland’s role as an important contributor to IBM's global research, development and innovation strategy.” – Micheál Martin TD, Minister for Enterprise, Trade and Employment “ This new facility and the cloud computing model, the wealth of talent at IBM's software lab in Ireland will be accessible to not only the rest of Europe, but Africa and the Middle East as well." – Steve Mills, Senior Vice President and Group Executive, IBM Software Group.

3. 06/09/09 What is Cloud Computing? “ The key characteristics of the cloud are the ability to scale and provision computing power dynamically in a cost efficient way and the ability of the consumer (end user, organization or IT staff) to make the most of that power without having to manage the underlying complexity of the technology . The cloud architecture itself can be private (hosted within an organization’s firewall) or public (hosted on the Internet).” Source: www.opencloudmanifesto.org 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

4. Cloud Computing ..... key common characteristics IT Analysts Financial Analysts IT Providers End Users Enhanced user experience Elastic scaling Automated provisioning Highly virtualized Standardized Workloads Source: IBM Corporate Strategy analysis of MI, PR, AR and VCG compilations Anywhere access to applications through a simplified user interface Rapid time to market for new services. Anywhere access to applications through a simplified user interface Ability to elastically scale resources and maintain high quality of service Ability to elastically scale resources at significantly lower incremental management cost

5. A Simple Cloud Infrastructure Architecture Platform as a Service Platform as a Service High Volume Transactions Software as a Service Servers Networking Storage Metering Monitoring Billing Multi-Tenancy Security Middleware Collaboration Business Services CRM/ERP/HR Subscription Services Data Center Fabric Shared virtualized, dynamic provisioning Services Management J2EE On-ramps Application Encapsulation Ajax Deployment On-ramps On-ramps Development Tooling Interoperability with other clouds Application as a Service Infrastructure as a Service Services Cloud Development Cloud Enterprise Cloud

6. Example: IBM Blue Cloud base offering Delivers a massively scalable and flexible compute platform IBM Monitoring DB2 Provisioning Management Stack Provisioning Manager WebSphere Application Server Monitoring Provisioning bare metal & virtual machines Processor, Network & Storage Linux with Xen Tivoli Monitoring Agent Virtualized Infrastructure Based on Linux & Xen Apache Based on open standards and open source software Includes IBM software, systems technology and services Processor, Network & Storage Provisioning Web 2.0 resource reservation system Cloud Computing Management Services Virtual Machine Virtual Machine Virtual Machine Virtual Machine

7. 06/09/09 Enterprise A Delivery 'Cloudscape' is emerging: 3 co-existing delivery models 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 the Cloud delivery models as applicable for the client. Examples: Mission Critical Packaged Apps High Compliance Test Systems Storage Cloud Developer Systems Variable Storage Software as a Service Web Hosting Enterprise portfolio will span public and private domains

8. IBM Is Already Working With Various Business Design Options to build, support or leverage clouds Provide public cloud-based services Lotus Live & Bluehouse: collaboration services Run public cloud Information Protection Services (BCRS) Internet Security Systems Computing on Demand Source: IBM Corporate Strategy Cloud infrastructure products Tivoli cloud suite Blue Cloud stack Ensembles & Ensemble software iDataPlex Cloud Platforms Lotus Web Delivery Platform MPBS Common Services Delivery Platform Automated Test Facility Build enterprise cloud RC2 adoption Cloud Lab pilots GTS Cloud Services

9. 06/09/09 Business Case Results: IBM internal example (Tech Adopter’s Portal) 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% 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: Reduce from 488 servers to 55 Reduce from 15 admins to 2 Reduce Power costs (fewer servers) Note: Clients who have already adopted virtualization and automated provisioning will see different results.

10. Implementing a Cloud Strategy requires decisions ... Costs Economies of scale only go so far, unless customer is willing to trade (data, 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 "harden" your connection Service Management Technologies & best practices immature High Availability For workloads that are stateless, no problem; for stateful workloads, same issue as enterprises

11. Getting started with Cloud Computing… Develop a strategy Virtualize Manage Consolidate Best practices … think holistically Assess and deploy … start now Gain and maintain control … modularity and standards are key Reduce from many to few … start with an inventory

12. Example: Developer Cloud for Dynamic Infrastructure Easily develop, deploy, and deliver services from the cloud Integrated, dynamically provisioned and scaled runtime environment Seamless transition to production environment Collaboration platform for knowledge sharing Open to internal IBM developers since February 26 th Developers Architects Testers Virtualized 3-Tier Test Topology Web Server Application Server Database Server

13. Deploy in the cloud One click application provisioning Deployment optimization Collaboration platform for knowledge sharing Developers, Early Users, Operations, Application Owners, Business Units Developer Cloud - Flexible Development from the Cloud Developers , Architects, Testers Develop in the cloud Integrated, dynamically provisioned and scaled runtime environment Repository for source and reusable assets Deliver services from the cloud Seamless transition to production environment Easily accessed from anywhere Web Server App Server DB Server

14. Example: Hybrid Cloud for Dynamic Infrastructure Rapid access to extra capacity in public clouds Secure inter-connections between the clouds Single systems management view across clouds Automated provisioning of virtualized servers, storage and network resources Installed at all 9 IBM Cloud Labs by June 30 th Management Console

15. MPLS / VPLS Secure Connection Hybrid Cloud - Managing multiple clouds IBM cloud computing Monitoring Provisioning of virtualized machines Servers, Storage, Network Private Cloud Public Cloud Provides a single systems management view of private and public cloud Unified provisioning of servers, storage and networks Secure virtual networks extend into the public cloud Further isolates network traffic between workloads Servers, Storage, Network

16. Prepared by IBM Dublin Cloud Lab 2000: IBM BCRS 2000: UDDI 1.0; “SaaS” coined 2001: Dot com bubble bursts 2005: IBM AoD 2006: Amazon EC2 2007: Google Health; force.com launch 2008: IBM ww Cloud Computing centers Cloud computing is an evolution – rather than a revolution – the culmination of a long series of approaches to simplified IT service delivery 1990: Berners-Lee invents the World-Wide Web 1994: CommerceNet 1998: RosettaNet 1999: i-Mode mobile internet 1961: John McCarthy proposes computing as a utility 1961: IBM Services Bureau 1975: First inter-industry EDI standards 2010 1980 1990 2000 1981: SMTP defines the standard electronic mail service 1985: United Nations sponsors EDIFACT IBM Service Bureau (1961) 1960- 1970

17. 06/09/09 IBM Cloud Computing Leadership Establishing cloud computing centres around the world Providing consulting and implementation services for Cloud computing Helping clients speed time to market and reduce costs For more information, please visit: ibm.com/cloud 1 2 3