(Dee fleming) Ccloud computing_la_press_final

Editor's Notes

• #2: Introduce yourself and the topic. The following presentation is going to provide to you 3 key things: How IBM defines cloud computing and it’s role in IT An approach to enabling enterprise ready cloud computing IBM’s portfolio in support of cloud computing We are also then going to provide some suggested next steps that will help you determine how best to leverage cloud computing within your organization.
• #4: Yet we still have significant challenges facing us with the IT infrastructure. Here are some interesting facts that may surprise you: Up to 85% of computing capacity sits idle in distributed computing environments. All of this instrumentation, intelligence, and interconnectedness of devices, people, and nature, is creating an information explosion and storage shipments are soaring. Studies have uncovered that on average, 70 cents out of every IT dollar spent goes to maintaining the current infrastructure versus adding new capabilities On the business side, IT limitations can result in billions of revenue lost due to supply chain inefficiencies, or loss of customers because of security breaches.
• #5: Because ultimately IT is the lifeblood of the organization. As processes become more interrelated and complex, IT will be called on to solve the problems in a more streamlined and cost effective manner. As customers need to innovate and respond to challenges faster, IT will be called upon to quickly enable the innovation. So IBM is helping our customers achieve key goals that will enable their IT to be an enabler of innovation and a catalyst for change rather than a roadblock and inhibitor as it may be today.
• #9: So what is really different about cloud computing? A tradition enterprise tends to pull together resources and deploy them in support of a business function workload on project at a time, or in silos. The resources are dedicated to the workload and are unable to support other workloads where they could be leveraged as added support. Cloud computing on the other hand leverages a pooled resources environment that uses virtualization in order for the physical assets to support multiple workloads. In order to drive efficiency of the delivery to enable the self-service, self-management of cloud computing requires standardization of the assets (hw, sw, delivery) as well as automation. This is what delivers a responsive end user experience. So from the end users point of view it is elastic in scalability, accessible from any device, anywhere, any time, and if charged pay only for what they use during the time they are using it. From a provider’s perspective its about an environment of highly virtualized resources that are location independent and have automated service management to handle provisioning, de-provisioning, change management, security and overall environment controls.
• #10: The economic factors driving cloud computing are not new technologies. Rather it is the combination of existing technologies with a focus on the end user and enabling the end user experience. Virtualization drives higher utilization which lowers capital expenses. Standardization also reduces capital and labor costs, while automation reduces management costs, drives an enhanced user experience and automates many manual tasks to reduce errors and reduce the costs associated with managing an environment. You can have cloud without these elements, but it will not be a cost effective cloud that delivers with stability and an enhanced end user experience of self-enablement and self-management.
• #12: When it comes to delivering a cloud deployment there is a spectrum of deployment options available for you to choose from. The most common and written about is the public cloud option like Amazon Elastic Compute Cloud (EC2), or Google Apps. These cloud deployments allow any user with a credit card to gain access to the resources. To a private cloud deployment where all the resources are owned, managed and controlled by the enterprise. To gradations in between from third party managed, to third party hosted, to a very common emerging model called “shared cloud services” or “member cloud services.” Here you must be a member to access the services, and they can be made available to you typically in a shared resources option or a dedicated resources option, depending on your needs and configurations. It is this last model where IBM has offerings call IBM Smart Business Services on the IBM Cloud. Finally you can merge the options between public and private and create what has been coined a “hybrid cloud”. When it comes to deciding which cloud delivery option you want to choose it needs to tailored to the business, the time and money requirements, and the availability of the resources. There is a spectrum of delivery options, and there is no single right way. Private Implemented on client premises Client runs/ manages Managed private cloud Third-party operated Enterprise owned Mission critical Packaged applications High compliancy Hosted private cloud Internal network Third-party owned and operated Standardization Centralization Security Internal network Mix of shared and dedicated resources Shared Cloud Services Shared facility and staff Virtual private network (VPN) access Subscription or membership based Shared resources Public Cloud Elastic scaling Pay as you go Public Internet A Hybrid cloud solution is some mix of private and public integrated with your traditional IT to deliver the cloud solution to the end user and can involve any of the public to private options.
• #13: In a survey IBM conducted in July 2009, 1,090 IT and LOB decision makers across the world were asked about their plans for cloud deployment, CIOs, IT Managers, and Business leaders were presented with a choice of over 100 different workloads and asked to rate their viability for a cloud delivery. We then asked them to identify whether they would prefer the workload be delivered internal with a private cloud, or would they be willing have it run in a fully shared environment on a public cloud. This chart gives us then the top workloads for each of those delivery types. We found that there is tremendous interest today among clients in private clouds – in both Large Enterprises and the Mid-market. In fact, 64% indicated a preference for private clouds vs. public, and when asked about specific workloads, they reported greater usage or consideration of private clouds for 22 of the 25 workloads surveyed. Clients want to start with something “safe” and under their control, so they are implementing clouds behind their firewalls. We also found there is great interest in public cloud services – especially with smaller clients, but within larger enterprises as well. As clients become more comfortable moving workloads to public clouds, and the portfolio of ISV applications available on the cloud grows, public cloud services will become more and more common. By the way, this will also result in a proliferation of hybrid clouds as clients integrate their private cloud environments with public cloud services. One final note: not all workloads will move to cloud – especially in the early going. Many business critical and custom applications will continue to be deployed through traditional IT infrastructures. Client’s are clearly interested in cloud, so let’s talk a little bit more about the business opportunity for you.
• #15: So how do you get started with cloud computing? At IBM we believe that to best leverage cloud computing as a viable delivery model, is to layout a clear path that is grounded in integrating cloud with your overall IT delivery strategy. You can build and deliver cloud services, or you can acquire and deliver cloud services, but both should appropriately start with your planning stage where you align the cloud-based services with your overall strategic direction, you’ve analyzed which workloads are appropriate for cloud delivery, and have at least a preliminary business case to support an implementation. The best way to start a cloud adoption is with a pilot, and IBM can help you identify which pilot and where.
• #17: Every business and organization today has a current plan of record for how they want IT to support their business. For many, it is about consolidating assets, virtualizing to increase asset utilizations and reduce costs, as well as standardizing and automating to improve service delivery and lower operational labor costs. These are key to achieving an optimal and effective cloud computing experience for the end user, and maximizing value to the business.
• #20: No matter whether it is private cloud, a managed or hosted cloud, or someone else’s third party delivered cloud, an organization must have an effective service management strategy to deploy an optimized cloud-delivered service. The service management implementation must be able to manage the workflow, provisioning, de-provisioning, monitoring and metering of the environment to ensure performance, stability, resiliency, reliability, security and end user satisfaction.
• #21: IBM also offers a wide range of server and storage options to complement your existing resources, or provide you with new resources quickly that can be delivering value to the business in a very rapid time.
• #23: Multiple surveys have shown that the top inhibitor to moving forward with cloud computing is security. There are 5 unique security focus areas in the IBM Security Framework that we speak about and that we have organized our solutions around, each with their own value proposition and financial payback, and each of these elements aligns directly with an element of Gartner’s view of what security elements are most critical in cloud computing. People and Identity Mitigate the risks associated with user access to corporate resources Data and Information Understand, deploy and properly test controls for access to and usage of sensitive business data Application and Process Keep applications secure, protected from malicious or fraudulent use, and hardened against failure Network, Server and End Point Optimize service availability by mitigating risks to network components Physical Infrastructure Provide actionable intelligence on the desired state of physical infrastructure security and make improvements
• #24: We have invested billions of dollars in R&D and acquisitions to build leadership in two key dimensions of this new IT model: service management software and optimized systems. We have also established a portfolio of cloud services that clients can access externally from IBM or offer internally to users on their own premises. More than 200 IBM researchers are working on breakthroughs in areas like cloud security and privacy. We’ve also established IBM Cloud Labs in 11 locations in the US, UK, China, India, Korea, Japan, Ireland, South Africa, Brazil, Hong Kong & Singapore infusing our deep expertise into the local regions. Each lab serves as a gateway for the local clients to tap into the knowledge of IBM’s software, services, and research labs around the world. The organization has deep skills, customer expertise, and the ability to rapidly collaborate as one virtual team. The team works on a cross-brand level, developing first of a kind solutions for our clients that leverage the entire IBM portfolio. In addition we have: 2 - Cloud data centers where we delivery on the IBM Smart Business cloud delivered services Raleigh and Ehningen, with more coming 27 - data center sites where we deliver LotusLive, both external and internal 7 - data center sites where we deliver IBM internal cloud computing deployments – Research compute cloud, Analytics, Tivoli Development cloud, and our server Power development cloud 9 - Global security operations centers delivering Managed Security Services from the IBM Cloud 55 - Global BCRS sites delivering Information Protection Services And IBM is eating its own cooking by implementing clouds across the company. The CIO’s office has undertaken a workload approach that is generating good efficiency results. (Double checking on the current statistics) Analytics We announced this capability externally as the world’s largest private cloud computing environment for business analytics, called Blue Insight – the basis for the Smart Business Analytics Cloud offering Blue Insight provides IBMers globally with insight to better meet the needs of clients worldwide as well as pursue internal growth and productivity opportunities. Blue Insight provides a single entry point to information from nearly 300 different information warehouses and data stores, providing analytics on more than a petabyte of data. More than 130,000 IBMers will have access to Blue Insight in 2010; currently with over 109K users, 35 ported applications and another 30 applications are the pipeline for deployment toward our full-year user deployment goal. We expect to realize tens of millions of dollars in savings over 5 years through deployment of Blue Insight. Collaboration/Lotus Live IBM adopted LotusLive Meetings last year as our primary web conferencing capability for meetings among IBMers, clients and business partners. In 2009 the total number of meeting minutes grew to over 200 million minutes. The adoption rate of LotusLive for meetings has been fast – with 75% of IBM’s current meeting minutes provided through LotusLive IBM is also piloting the use of LotusLive Engage with 6000 registered users sharing files, internally and with clients. IBM intends to adopt LotusLive iNotes for a targeted segment of the population. Strategically, we intend to expand our LotusLive footprint to support other collaborative requirements (e.g. file sharing, social networking, instant messaging, etc). Development/Test The IBM CIO Develop/Test cloud went into service last September, supporting the Power and x86 platforms, with over 500 provisioning transactions to date (new & decommissions). Implemented with the GTS Smart Business Test Cloud method, provisioning transaction times went from 5 day SLA, to just over an hour. Other automated/self-service functions: Automated approval within preset monthly spend limit Self-service purchase of optional support services for all image software components Self-service change of virtual server configuration and support Lower setup cost. Easy tear-down. Transparent usage-based billing Expected higher dev-test productivity (enablement of more agile methods) Web application middleware stacks supporting 50% of our test activity were enabled first (WAS/DB2/MQ/Apache his), with additional work underway this year to cover 80% of our develop/test activity. In addition to productivity & cost savings, this capability is a key enabler for our internal development transformation (GenO/Liquid), through services like Topcoder. Client results we're yielding from dev/test cloud implementations. Reduced IT labor cost by 50% in configuration, operations, management and monitoring. Improved capital utilization by 75%, significantly reducing license costs. Reduced provisioning cycle times from weeks to minutes. Improved quality, eliminating 30% of software defects. Reduced end user IT support costs by up to 40%. Desktop Over 1200 users in our China Development Labs have been moved into a private desktop cloud. Using the Smart Business Desktop Cloud, our IBM Call Center teams are moving roles to desktop clouds, with initial group migrations this year in the US and India. Estimated savings opportunity ranges from 20% to 30% of the current client provisioning costs (est $90-100M), with additional security benefits & improved systems management. Role-based segmentation work is underway to identify more internal groups that can benefit from the security and performance characteristics of desktop cloud architectures. Reference architectures for desktop clouds are not “one size fits all” and based on segmentation (end user personas, usage patterns and business requirements) we are learning to apply the best solution to meet the cost and performance goals. Storage IBM faces YTY growth rates of nearly 25% in our file and block storage spaces, similar to industry. We're working to drive higher utilization and storage management automation. For file storage IBM is working on ways to implement the Virtual Storage Cloud offering, which aims to provide file and object storage. For block storage IBM focusing first on the midrange & zLinux support technology, like XIV, and cloud automation. Estimated savings opportunities for these spaces currently range around 30-40%. Production IBM is assessing its production portfolio for applications that can take advantage of Cloud characteristics. So far, about 1000 applications have been identified from our portfolio that are suitable for a cloud environment, and plans are in place to move number of those into a cloud environment this year. Using methods developed by our services teams, starting with our non-mission critical applications, we'll refine the value proposition for use with our other production workloads. All of these measures will create millions of dollars in savings for the IBM Corporation.
• #30: IBM market intelligence estimates that over the next several years there will be a strong demand for cloud-related offerings and services, with a compound revenue growth rate of 26% through 2015. This market growth will be 8 times faster than the non-cloud IT growth… and will become 10% of total IT spend by 2015: doubling from 2010. IBM looks at the market opportunity in 3 major segments: components, infrastructure services, and business services. As this graph shows, a significant part of the growth here is in services, which accounts for over 65% of the opportunity and is growing faster than the hardware and software components that go into building clouds. You need to understand this shift in IT spending and be ready to take advantage of this opportunity.