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Steven Sams
VP, GTS Site and Facilities Services
December 5, 2011




Watson vs. Your Data Center
Improving IT performance with analytics-based services




                                                         © 2011 IBM Corporation
Watson vs. Your Data Center

Watson answered a grand challenge …
       Can we design a computing system that rivals a human’s ability
 to retrieve, analyze and interpret vast amounts of information in real time,
arriving at the highest probability correct answer in less than three seconds?




2                                                                   © 2011 IBM Corporation
Watson vs. Your Data Center

CEOs are using Watson-like analytics to make more informed
choices with confidence to anticipate and shape business outcomes




    Which customers are       Which transactions   Which new product
    thinking of moving to      are fraudulent?      has the greatest
       my competitor?                              opportunity to drive
                                                      more profit?




3                                                              © 2011 IBM Corporation
Watson vs. Your Data Center

We are building Watson-like analytical capabilities to help CIOs




    How can I better link     Where can I improve      Which actions will
    my IT and business        the efficiencies in my   help me manage
        strategies?             IT infrastructure?     my IT operations
                                                       and better protect
                                                          my users?


            Cloud?              Virtualization?            Security?


4                                                                 © 2011 IBM Corporation
Watson vs. Your Data Center




    2 out of 3 CIOs re-engineering their companies will …


     … partner for new skills & expertise
       versus doing 100% in-house

     … and change the mix of capabilities,
       knowledge and assets




5                                                 © 2011 IBM Corporation
Watson vs. Your Data Center

Analytics are used to transform IT and is not just for large companies




       Link IT                             Improve IT                         Manage Operations
    and Business                           Efficiencies                       and Protect Users

      Develop a plan        Redirect          Manage         Grow data         Improve      Protect users
       How do we get       resources          storage           center          service     with a disaster
    from here to where        From 5          growth          capacity        to provide    recovery plan
      we want to go?          to 90%        saving hours    2x increase in   predictable     for the entire
                          virtualization   by automating     data center     process in 4      business
                            adoption        provisioning   power / cooling    key areas


6                        Watch the NFL video: http://www.youtube.com/user/IBMITServices      © 2011 IBM Corporation
Watson vs. Your Data Center                                                Link IT & Business (print version)

    Identify cloud opportunities 90% faster to improve time to value

            IBM Cloud Workload Analysis                                                            Pain versus Gain
                                                                                                                                                            10
                              WORKLOADS
                                                                                                                                           Workloads
 • Web serving                    • ERP, SCM               •   Collaboration                 App
                                                                                             AB
                                                                                                                Intranet
                                                                                                                Apps                       most
                                                                                                                           Office
 • Web application                • Analytics              •   File & Print                                                Task
                                                                                                                           Users
                                                                                                                                           attractive to
                                                                                         Field Users                                       move to
 • BI Data Warehouse              • Numerical, Batch       •   Desktop                       App XC
                                                                                                                                    Dev
                                                                                                                                    Test
                                                                                                                ABC Data                   cloud for
                                                           •   Development                                      Warehouse
                                                                                                                                           your
                                                                                                            Exchange
                                                               & Test                              App                  App
                                                                                                                                           business




                                                                                                                                                                   Value / Gain
                                                                                                   JK                   NM
                                                                                                   Call Center Users
                                                                                                                ClientXYZ.com
                                                                                                                                                               5
                                                                                         BW
                                                    YOUR
  WORKLOAD                                        WORKLOAD                             SAP

CHARACTERISTICS                                   MATURITY
•       Virtualization maturity              Virtualization example
•       IT automation maturity             (Derived for each characteristic)
•       Standardization                    • High: > Two thirds virtual servers
•       Process improvement                                                                                                                                    0
                                           • Medium: In-process                   10                                   5                                   0
•       Utilization improvement
                                           • Low: < One third virtual servers                                    Effort / Pain
•       Data constraints

    Map IT workload characteristics and current                                   Opportunities are identified 90% faster by
     capabilities to prioritize cloud deployment                                   removing impediments to reduce costs
    7                                                                                                                                      © 2011 IBM Corporation
Watson vs. Your Data Center
                                            Improve IT efficiencies

Make complex Wintel workloads simple and fast to virtualize


        Achieve 60-70%
        virtualization for
    cost-effective operations
       ROI of 6-18 months for
        complex workloads
             50% reduced             Profile into 6 workload scenarios
         transformation costs
            40-80% faster
         implementation time
     Reduce resource required
       to manage instances
          per FTE by 2-3x              Use migration factory resources
                                          for rapid implementation
8                                                                © 2011 IBM Corporation
Watson vs. Your Data Center
                                                                 Improve IT efficiencies

Create a self-service environment to handle growth in storage




                                 OFTEN
                                                  User input requested




                                  USE
        Flexibly manage                                Enter data type and quantity
      storage growth with
                                                 Define standard data types (15-20)
    policy-based automation                    • Database    • Email        • Shared        •   Voice     • App
                                                 Space         Space/         File Space    •   Video       Binaries
           Reduce 50% of                       • Transaction   Store        • Static File   •   Backup    • App
                                                 Logs        • Email          Space                         Logs
                                                                                            •   Exports
           architect’s time                    • Archive       Logs         • Active File                 • OS
                                                 Logs        • Email          Space

                                 DEFINE ONCE
                                               • Database      Archive      • User Home
       Provision in minutes                      Binaries                     Directories
           versus days                           Define key performance indicators
                                               • Size
                                                 Size           • Operational
                                                                  Operational     • Data
                                                                                    Data             • Migration
                                                                                                       Migration
       Use less of the most                    • Availability
                                                 Availability     Recovery
                                                                  Recovery          Security
                                                                                    Security         • Archive
                                                                                                       Archive
    expensive storage – reduce                 • Performance
                                                 Performance    • Disaster
                                                                  Disaster
                                                                  Recovery
                                                                  Recovery
                                                                                  • Compliance
                                                                                    Compliance       • Disposal
                                                                                                       Disposal

          10-20% Tier 1
                                                       Architect to infrastructure
                                               • Storage
                                                 Storage        • Network
                                                                  Network         • Disaster
                                                                                    Disaster         • Business
                                                                                                       Business
                                               • Backup/
                                                 Backup/        • Archive
                                                                  Archive           Recovery
                                                                                    Recovery           Continuity
                                                                                                       Continuity
                                                 Recovery
                                                 Recovery                         • System
                                                                                    System           • Services
                                                                                                       Services

9                                                 Storage provisioned automaticallyCorporation
                                                                             © 2011 IBM
Watson vs. Your Data Center
                                                                                                Improve IT efficiencies

       Improve investment governance by providing vendor and
       technology tradeoffs

                          Capital Cost Analysis                                             Operating Cost Analysis
             Show 5x difference in technology alternatives                            Show 2.5x difference for vendor alternatives

             $2                                                                       $3            Technology 1, Vendor A
                                                                                                    Technology 1, Vendor C
                                                                                      2.5
             1.5                                                                                    Technology 3, Vendor G
                                                                                       2




                                                                         $ Millions
$ Millions




              1                                                                       1.5

                                                                                        1
              .5
                                                                                       .5

              0                                                                        0
                                                                                            1   2   3    4   5      6   7     8       9     10
                   Technology #1           Technology #2 Technology #3
                                                                                                                 Year


                            Reduce data center total costs 15-30% over its useful life

        10         Source: IBM Estimates                                                                                     © 2011 IBM Corporation
Watson vs. Your Data Center
                                                    Manage operations

Identify and solve critical security threats quickly

                                              13 Billion security alerts per day
              Real-time analytics                                    Web
               and correlation                            Firewall         E-mail
                                             Anti-virus                             Intrusion
                                                                                    protection
         Over 4,000 clients have
       lowered their risk and costs
           by entrusting their
            protection to IBM
       90% reduction in emergency
      response and patching activity
        Average 55% cost reduction
           vs. doing it in-house
         Protect against new threat
        remediation 30+ days before
          market fixes are available
                                                              Only 5-30
11                                      events require proactive risk mitigationIBM Corporation
                                                                            © 2011 decisions
Watson vs. Your Data Center

Leverage IBM’s experience to get started
                                                                       Manage operations

                                                                  3      & proactively
                                                                         protect users


            Link IT &              2      Improve IT
                                          efficiencies


      1     business
            strategies
                                                                     Managed Security
                                                                     Smart Video Surveillance Suite
                                                                     Smart Business End User

                               Server Optimization and Integration   Strategic Outsourcing
     Infrastructure Strategy   Information Lifecycle Management      Data Center Operations
     and Planning                                                    and Management
                               Network Infrastructure
                               Optimization                          Tivoli Live
     Cloud Infrastructure
     Strategy and Design       Middleware Strategy and Design

     Data Center Strategy      Data Center Design
                               Data Center Consolidation
                               and Relocation



12                                                                                      © 2011 IBM Corporation
Watson vs. Your Data Center

Explore IT analytics and talk to IBM technology and services experts

           Monday                                Tuesday                          Wednesday
        2:45 – 3:45 pm                        4:15 – 5:15 pm                    9:00 – 10:00 am
       University of                       CIOs and Storage –                 Cloud Computing –
     Rochester Medical                       Strategies and                       What is real
     Center Cracks the                         Solutions                         versus virtual
       Code on Data

                                                                                12:00 – 12:30 pm

                                                                           Foundations for Cloud –
                                                                             A Simple Approach




                              For more information: ibm.com/services/smarterdatacenter
13                                                                                          © 2011 IBM Corporation

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IBM Watson vs. Your Data Center

  • 1. Steven Sams VP, GTS Site and Facilities Services December 5, 2011 Watson vs. Your Data Center Improving IT performance with analytics-based services © 2011 IBM Corporation
  • 2. Watson vs. Your Data Center Watson answered a grand challenge … Can we design a computing system that rivals a human’s ability to retrieve, analyze and interpret vast amounts of information in real time, arriving at the highest probability correct answer in less than three seconds? 2 © 2011 IBM Corporation
  • 3. Watson vs. Your Data Center CEOs are using Watson-like analytics to make more informed choices with confidence to anticipate and shape business outcomes Which customers are Which transactions Which new product thinking of moving to are fraudulent? has the greatest my competitor? opportunity to drive more profit? 3 © 2011 IBM Corporation
  • 4. Watson vs. Your Data Center We are building Watson-like analytical capabilities to help CIOs How can I better link Where can I improve Which actions will my IT and business the efficiencies in my help me manage strategies? IT infrastructure? my IT operations and better protect my users? Cloud? Virtualization? Security? 4 © 2011 IBM Corporation
  • 5. Watson vs. Your Data Center 2 out of 3 CIOs re-engineering their companies will … … partner for new skills & expertise versus doing 100% in-house … and change the mix of capabilities, knowledge and assets 5 © 2011 IBM Corporation
  • 6. Watson vs. Your Data Center Analytics are used to transform IT and is not just for large companies Link IT Improve IT Manage Operations and Business Efficiencies and Protect Users Develop a plan Redirect Manage Grow data Improve Protect users How do we get resources storage center service with a disaster from here to where From 5 growth capacity to provide recovery plan we want to go? to 90% saving hours 2x increase in predictable for the entire virtualization by automating data center process in 4 business adoption provisioning power / cooling key areas 6 Watch the NFL video: http://www.youtube.com/user/IBMITServices © 2011 IBM Corporation
  • 7. Watson vs. Your Data Center Link IT & Business (print version) Identify cloud opportunities 90% faster to improve time to value IBM Cloud Workload Analysis Pain versus Gain 10 WORKLOADS Workloads • Web serving • ERP, SCM • Collaboration App AB Intranet Apps most Office • Web application • Analytics • File & Print Task Users attractive to Field Users move to • BI Data Warehouse • Numerical, Batch • Desktop App XC Dev Test ABC Data cloud for • Development Warehouse your Exchange & Test App App business Value / Gain JK NM Call Center Users ClientXYZ.com 5 BW YOUR WORKLOAD WORKLOAD SAP CHARACTERISTICS MATURITY • Virtualization maturity Virtualization example • IT automation maturity (Derived for each characteristic) • Standardization • High: > Two thirds virtual servers • Process improvement 0 • Medium: In-process 10 5 0 • Utilization improvement • Low: < One third virtual servers Effort / Pain • Data constraints Map IT workload characteristics and current Opportunities are identified 90% faster by capabilities to prioritize cloud deployment removing impediments to reduce costs 7 © 2011 IBM Corporation
  • 8. Watson vs. Your Data Center Improve IT efficiencies Make complex Wintel workloads simple and fast to virtualize Achieve 60-70% virtualization for cost-effective operations ROI of 6-18 months for complex workloads 50% reduced Profile into 6 workload scenarios transformation costs 40-80% faster implementation time Reduce resource required to manage instances per FTE by 2-3x Use migration factory resources for rapid implementation 8 © 2011 IBM Corporation
  • 9. Watson vs. Your Data Center Improve IT efficiencies Create a self-service environment to handle growth in storage OFTEN User input requested USE Flexibly manage Enter data type and quantity storage growth with Define standard data types (15-20) policy-based automation • Database • Email • Shared • Voice • App Space Space/ File Space • Video Binaries Reduce 50% of • Transaction Store • Static File • Backup • App Logs • Email Space Logs • Exports architect’s time • Archive Logs • Active File • OS Logs • Email Space DEFINE ONCE • Database Archive • User Home Provision in minutes Binaries Directories versus days Define key performance indicators • Size Size • Operational Operational • Data Data • Migration Migration Use less of the most • Availability Availability Recovery Recovery Security Security • Archive Archive expensive storage – reduce • Performance Performance • Disaster Disaster Recovery Recovery • Compliance Compliance • Disposal Disposal 10-20% Tier 1 Architect to infrastructure • Storage Storage • Network Network • Disaster Disaster • Business Business • Backup/ Backup/ • Archive Archive Recovery Recovery Continuity Continuity Recovery Recovery • System System • Services Services 9 Storage provisioned automaticallyCorporation © 2011 IBM
  • 10. Watson vs. Your Data Center Improve IT efficiencies Improve investment governance by providing vendor and technology tradeoffs Capital Cost Analysis Operating Cost Analysis Show 5x difference in technology alternatives Show 2.5x difference for vendor alternatives $2 $3 Technology 1, Vendor A Technology 1, Vendor C 2.5 1.5 Technology 3, Vendor G 2 $ Millions $ Millions 1 1.5 1 .5 .5 0 0 1 2 3 4 5 6 7 8 9 10 Technology #1 Technology #2 Technology #3 Year Reduce data center total costs 15-30% over its useful life 10 Source: IBM Estimates © 2011 IBM Corporation
  • 11. Watson vs. Your Data Center Manage operations Identify and solve critical security threats quickly 13 Billion security alerts per day Real-time analytics Web and correlation Firewall E-mail Anti-virus Intrusion protection Over 4,000 clients have lowered their risk and costs by entrusting their protection to IBM 90% reduction in emergency response and patching activity Average 55% cost reduction vs. doing it in-house Protect against new threat remediation 30+ days before market fixes are available Only 5-30 11 events require proactive risk mitigationIBM Corporation © 2011 decisions
  • 12. Watson vs. Your Data Center Leverage IBM’s experience to get started Manage operations 3 & proactively protect users Link IT & 2 Improve IT efficiencies 1 business strategies Managed Security Smart Video Surveillance Suite Smart Business End User Server Optimization and Integration Strategic Outsourcing Infrastructure Strategy Information Lifecycle Management Data Center Operations and Planning and Management Network Infrastructure Optimization Tivoli Live Cloud Infrastructure Strategy and Design Middleware Strategy and Design Data Center Strategy Data Center Design Data Center Consolidation and Relocation 12 © 2011 IBM Corporation
  • 13. Watson vs. Your Data Center Explore IT analytics and talk to IBM technology and services experts Monday Tuesday Wednesday 2:45 – 3:45 pm 4:15 – 5:15 pm 9:00 – 10:00 am University of CIOs and Storage – Cloud Computing – Rochester Medical Strategies and What is real Center Cracks the Solutions versus virtual Code on Data 12:00 – 12:30 pm Foundations for Cloud – A Simple Approach For more information: ibm.com/services/smarterdatacenter 13 © 2011 IBM Corporation