Practical thoughts for cloud transformation
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The document discusses cloud transformation and provides the following key points: - Most enterprises now use multiple cloud environments and providers. - Only 20% of enterprise workloads have moved to the cloud to date. - There are three phases of cloud technology adoption: public cloud, hybrid cloud, and multi-cloud. - Cloud transformation requires multiple concurrent approaches to minimize risk while leveraging new and existing investments.
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Practical thoughts for cloud transformation
- 1. IBM Cloud / © 2019 IBM Corporation Practical thoughts for Cloud Transformation — Mark Osborn Europe Cloud Architect Executive March 12, 2019
- 2. 94% Share of enterprise clients that are using multiple cloud environments (public and/or private) 67% of enterprise customers are using more than one public cloud provider (expected to remain constant or increase by 2022) Source: IBM MD&I; BCG and McKinsey research Cloud is accelerating business transformation but today’s Hybrid, Multicloud reality presents challenges. Only 20% of enterprise workloads are on cloud. $640B in 2020 ‘18-’20 CAGR -9% $609B in 2020 ‘18-’20 CAGR 18% Traditional IT $438B in 2020 ‘18-’20 CAGR 15% Public Clouds & SaaS Private Clouds Dedicated Clouds 2IBM Cloud / © 2019 IBM Corporation
- 3. 3 CloudTechnology Phases Public Cloud IaaS & SaaS Lower cost IT Early Adopters IT Efficiency1 Value Time Tactical Strategic & Complex Hybrid Cloud PaaS, CaaS, & Data Engagement Apps Enterprise Application Modernization 2 3 Multi-Cloud Integrated Platforms Industry Solutions Experience & Service Innovation Cloud 1.0 • Cut down procurement and provisioning times • Start of Shadow IT • SaaS for full applications • Servers, VM‘s ‚remote‘ Cloud 2.0 • Faster innovation and code delivery • Full stack cloud • Containerization • DevOps • More Shadow IT • Multicloud by accident Cloud 3.0 • Cloud ownership to CIO • App delivery quality • Multicloud by design • Open Hybrid Cloud • Site Reliability Engineering Growth through leadership/ DOC ID / February, 2019 / © 2019 IBM Corporation
- 4. To date, fewer than 20% of workloads have moved 4 Migrate Modernize Innovate Manage Lift & shift applications and workloads Update using containers and microservices Build new cloud native applications Integrate and manage, multicloud Unforeseen challenge Lower Capex Building with new tech Increased TCO / lock-in from lift & shift Integration, security, governance challenges Driver Unforeseen challenge Driver emphasis to-date Cloud entry point Modernize Update using containers and microservices Migrate Lift & shift applications and workloads Innovate Build new cloud native applications Growth through leadership/ DOC ID / February, 2019 / © 2019 IBM Corporation
- 5. To date, fewer than 20% of workloads have moved 5 Migrate Modernize Innovate Manage Lift & shift applications and workloads Update using containers and microservices Build new cloud native applications Integrate and manage, multicloud Unforeseen challenge Lower Capex Building with new tech Increased TCO / lock-in from lift & shift Integration, security, governance challenges Driver Unforeseen challenge Driver emphasis to-date Cloud entry point #1 Priority for enterprise digital transformation Modernize existing applications Greater business agility Access to data for insights Outcomes Modernize Update using containers and microservices Migrate Lift & shift applications and workloads Innovate Build new cloud native applications Growth through leadership/ DOC ID / February, 2019 / © 2019 IBM Corporation
- 6. Transformation uses multiple concurrent approaches … to minimize risk & cost while leveraging new & existing investments to innovate & differentiate Application Portfolio Customer Information Payment Systems Business Process Evolution to Cloud- based Application • Base Virtualization with Standardization & Automation On-premises | Off-premises VMs | Containers | aPaaS | iPaaS Event Driven • Cloud native • Loosely-Coupled • 12-factor • Horizontal Scaling • Eventually consistent • Microservices • Auto-scaling • DevOps & CI • Self-recovering ➡ Lift-Standardize-Consolidate-Automate-Shift ➡ Contain-Expose-Extend ➡ Refactor/Create as Cloud-Native/Microservices New Applications ➡ Data Classification, Movement & Governance Bare metal, VMs, Containers, Automation - SDDC API Creation & Management, Connectivity & Integration Event-Driven, aPaas, Containers, Microservices Cognitive Data Classification, High-volume data transfer, Metadata Management Growth through leadership/ DOC ID / February, 2019 / © 2019 IBM Corporation
- 7. 7Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation IBM Application Modernization Field Guide https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 8. 8Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Modernization journey - ChooseTheApproachThat Best FitsYour Needs Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 9. 9Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Assess your app portfolio and prioritize Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/ Source: IBM Cloud Adoption Playbook ibm.com/cloud/garage/adoption
- 10. 10Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Containerize Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 11. 11Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Expose and integrate Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 12. 12Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Place selected apps onVMs Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 13. 13Think 2018 / DOC ID / Month XX, 2018 / © 2018 IBM Corporation Have a Strategic Roadmap Source https://www.ibm.com/cloud/garage/content/field-guide/app-modernization-field-guide/
- 14. 14IBM Cloud / © 2019 IBM Corporation
- 15. 15 IBM literally wrote the book on cloud adoption! Migrate & modernize on the best fit model Consistently develop & deploy on any cloud Securely integrate & manage hybrid, multicloud Access more data sources, analytics,AI/ML Unmatched industry expertise, methods & tools Emerging tech: IoT, blockchain, HPC -60 datacenters ibm.com/cloud/garage/adoption 15 IBM gives you unique advantage IBM Cloud / October 2018 /© 2018 IBM Corporation Cloud Innovate Method IBM Cloud Garage Cloud Transformation Advisor
- 16. IBM has helped thousands of clients realize the benefits of digital transformation. IBM Cloud / © 2019 IBM Corporation 16
- 17. IBM Cloud / © 2019 IBM Corporation 17
- 18. 18 Trusted as a faster, more secure journey to cloud and AI Built for all of your applications AI ready Secure to the core IBM Cloud / October 2018 /© 2018 IBM Corporation
Editor's Notes
- Welcome to Cloud Expo Europe We know that technology enabled change is on the boardroom agenda for all businesses. As this year’s theme is “supercharging your cloud”, I’m especially happy to be with you today and share with you a bit of IBM’s point of view around cloud and what we’re seeing with our clients’ journeys. Over the past decade, cloud has become integral to nearly every digital, and business transformation strategy, allowing enterprises access the latest technologies like IoT, high performance computing, and blockchain from virtually any vendor to reimagine business processes and ecosystems. Its allowed enterprises to tap into more sources of data, both their own as well as partner, social, weather, and other data sources, plus new ways to analyze it. New algorithms, machine learning and AI are driving new insights that enable more engaging, personalized client experiences, all while extending the value of existing investments. Yet even with this ability to source more innovation and data from more from more places, only 20% of enterprise workloads have moved to date. The question is why? Because cloud not only creates all these new opportunities, it also creates a new reality for IT leaders. A hybrid, multiloud world. In fact, 94% of enterprises today have multiple clouds – mixing public, private, dedicated and countless SaaS applications, and that trend will continue, with rapid growth in all three flavors of cloud through at least 2020. All while continuing to make significant investments in traditional IT. This presents some new challenges and concerns for IT leaders, that must operate and maintain business as usual, even with more complex, hybrid and multicloud environments. 82% are concerned about how they will connect all of these clouds, and traditional IT. 73% need better ways to move apps, workloads and data between these clouds more effectively. 67% worry about how they will manage this new mix of cloud and environments in a consistent way, across vendors, without introducing new security and compliance risks. Even for those looking to aggressively move more to the cloud today, it will be a journey.
- Until now, the emphases for cloud has been on the easy stuff: Migrating relatively simple apps and workloads to IaaS to lower costs. And using public cloud to innovate with new technologies and extend existing apps. And even that has not been without challenges. Lift and shift everything to cloud and sort it out later models (like AWS) have resulted is massive unexpected costs for complex workloads, sometime as much as 5 times projected (costs: preparing, moving data, integrating to back office, etc). Developing new apps and taping into SaaS from more vendors has created new tech silos, making it difficult to manage security, compliance, resiliency, and govern across vendors and clouds. Build 2: So what’s next? Modernization of existing applications is the next big wave. In fact, according to a recent forrester study, the number 1 priority for enterprises digital transformation is modernizing the up to 80% of existing mission critical apps. And those that successfully do, are seeing real benefits in the form of greater agility and readily accessible data needed to create new insights more quickly.
- Until now, the emphases for cloud has been on the easy stuff: Migrating relatively simple apps and workloads to IaaS to lower costs. And using public cloud to innovate with new technologies and extend existing apps. And even that has not been without challenges. Lift and shift everything to cloud and sort it out later models (like AWS) have resulted is massive unexpected costs for complex workloads, sometime as much as 5 times projected (costs: preparing, moving data, integrating to back office, etc). Developing new apps and taping into SaaS from more vendors has created new tech silos, making it difficult to manage security, compliance, resiliency, and govern across vendors and clouds. Build 2: So what’s next? Modernization of existing applications is the next big wave. In fact, according to a recent forrester study, the number 1 priority for enterprises digital transformation is modernizing the up to 80% of existing mission critical apps. And those that successfully do, are seeing real benefits in the form of greater agility and readily accessible data needed to create new insights more quickly.
- Increase your delivery velocity along the journey.
- Containerized middleware and applications are key to moving to modern development and operations approaches. An integrated, container-native operations and DevOps platform is a requirement.
- Create new capabilities by leveraging APIs. APIs allow incremental creation of value to extend current application ecosystems.
- VM based assets are part of an overall modernization solution.
- Establish a cloud strategy to adopt, transform, and deliver value—then turn it into a roadmap you can follow.
- IBM is the leader in hybrid, multicloud for the enterprise. In fact, we wrote the book on cloud adoption -- literally. Based on our extensive experience moving enterprise applications, and workloads to the cloud, the Cloud Adoption Playbook spells out the key criteria enterprise should consider to effectively profile, prioritize and move apps to the right cloud model. And only IBM gives you a long list of unique advantages to help you journey to cloud: Migrate & modernize on the best fit model Consistently develop & deploy on any cloud Securely integrate & manage hybrid, multicloud Access more data sources, analytics, AI/ML Unmatched industry expertise, methods & tools Emerging tech: IoT, blockchain, HPC -60 datacenters
- These are just a few European clients with whom we’ve worked to accelerate their digital transformation with the cloud Some clients like Ilmarinen Insurance moved to Cloud first by containerizing monolithic applications providing a path for modernizing and leveraging befits such as faster releases. https://www.ibm.com/case-studies/ilmarinen-icp Another client in the financial industry, Alior Bank, first moved to the cloud to better adhere to changing regulations – often times security and compliance are stronger in the cloud https://www.ibm.com/case-studies/alior-bank One commonality I see across many of these clients is that once they get to the cloud with a specific use case, their journey speeds up by leveraging innovation services available on the IBM Cloud For example: Kone Elevators integrating IoT capabilities on the cloud to remotely monitor and optimize management of more than 1.1 million elevators and escalators in buildings worldwide. https://www.ibm.com/case-studies/kone-corp There are many healthcare examples, one right here in the UK, using process management in the cloud to optimize organ donations. And other leveraging Watson and IoT to improve heart stress levels https://www.ibm.com/case-studies/uk-national-health-service https://www.ibm.com/case-studies/heartbit-cloud-fitness-wearable Other companies such as Assima, Osio University and Caixa Bank are implanting AI with chat bots and machine learning to create smarter employees and enhanced client / student experiences. https://www.ibm.com/case-studies/assima https://www.ibm.com/case-studies/Oslo-Metropolitan-University https://www.ibm.com/case-studies/cgd-france-cloud-systems-mobile OSRAM looked to digital transformation in the cloud as a way to take advantage of changing market conditions. They really needed cloud to enable their innovation and transformation agendas. First, they chose IBM Cloud because of it’s global footprint, security and complicance record. Next, for them they wanted a managed service to begin with to free up their resources – IBM SAP Cloud expertise. Moved all of their SAP workloads to IBM Cloud. As their Multicloud strategy evolved, they worked wit IBM to migrate all of their non-SAP workloads to IBM Cloud, leveraging our Vmware technology and expertise and bare metal servers. Some of their benefits include savings of7 figures annually – and ability to be more nimble in the marketplace and react to trends. Case study Link: https://www.ibm.com/case-studies/osram https://www.ibm.com/blogs/cloud-computing/2018/05/23/ibm-osram-multicloud-strategy/ OSRAM - A global high-tech company in Germany achieves seven-digit annual savings, boosts flexibility and increases competitiveness and responsiveness when it migrates its business to the IBM Cloud environment and IBM Cloud for SAP applications pursuing a multi-cloud strategy Company Background OSRAM, based in Munich, is a leading global high-tech company with a history dating back more than 110 years. Primarily focused on semiconductor-based technologies, its products are used in highly diverse applications ranging from virtual reality to autonomous driving and from smart phones to smart and connected lighting solutions in buildings and cities. OSRAM uses the endless possibilities of light to improve the quality of life for individuals and communities. OSRAM’s innovations enable people all over the world not only to see better, but also to communicate, travel, work and live better. OSRAM has approximately 26,400 employees worldwide and generated revenue of more than EUR 4.1 billion in 2017. Business challenge Lighting giant OSRAM is entering innovative, fast-evolving markets, where circumstances can change in the blink of an eye. How could this huge company remain nimble enough to stay ahead of the game? The benefit The cloud model helps OSRAM save 7-digit figures annually and free up its internal IT team to focus on the core business, driving the transition towards new markets and a fresh business model. Pull Quote “Our multi-cloud strategy gives us the agility to react fast to new demands as we continue our journey in becoming a high-tech company.” —Dr. Claus Ebner, Global Head of IT Infrastructure & Operations, OSRAM Solution components SAP® Business Warehouse powered by SAP HANA® SAP Data Services SAP ERP SAP Customer Relationship Management SAP Product Lifecycle Management SAP Supplier Relationship Management SAP Supply Chain Management SAP Process Orchestration SAP Solution Manager IBM Cloud Bare Metal Servers IBM Cloud for SAP Applications IBM Cloud for VMware solutions IBM Services
- IBM Cloud is the cloud for smarter business – a faster, more secure journey to cloud. A cloud built for all of your applications – so you can build new Cloud native apps, and modernized existing ones, on the right cloud model. AI ready –to accelerate innovation with all your data and apply more flavors of analytics and AI to creating new insights Secure to the core – built on a foundation of decades of security leadership and experience protecting hybrid environments Thank you for your time today. We look forward to accompanying you on your journey to Cloud. DETAILED SPEAKER NOTES IBM Cloud is the cloud for smarter business – a faster, more secure journey to cloud and AI trusted by thousands of enterprises across 20 industries. Built for all your applications – with the most flexible architecture built to handle the complex challenges facing IT leaders, and a prescriptive approach that can guide your cloud journey, allowing you build new cloud-native apps and modernize and extend existing applications so you can move more to the cloud today. AI Ready – with a cloud designed to accelerates innovation with your data –all of it –on or off premises, yours and licensed data, creating new insights with leading technologies, like machine learning, IoT, and AI. Secure to the core – built on a foundation that is more than secure compute, or storage. A highly secure and trusted enterprise cloud up and down the stack supported by IBM’s long held leadership in security technology, and methods, so you are not alone to get it right.