© 2009 ibm corporation cloud computing for stg business partners annette miller [email protected]...

© 2009 IBM Corporation© 2009 IBM Corporation

Cloud Computing for STG Business Partners

Annette Miller

[email protected]

Dynamic Infrastructure Offerings, Cloud Computing Lead

© 2009 IBM Corporation2

Dynamic Infrastructure: Helping Build a Smarter Planet

Why do you care about selling cloud?

There is nearly universal interest in Cloud computing – 40% of customers use Cloud computing today and nearly all are interested in using it in the future (IBM Value

Proposition Quantitative Research Phase II Global Report - December 2008)

– 58% CIOs believe cloud computing will cause a radical shift in IT…47% already using or actively researching. – CIO Magazine

C-level executives are looking to reduce cost, drive innovation and competitive advantage and asking how cloud can help

Customers are planning now & going to vendors & analysts for advice“We’re going to do this with or without you”Comment from a data center manager – “We’ve been told to look at cloud. There are 1000 people in our IT

organization, and we have 1000 different opinions”

Our competition is talking to your customers – if you don’t, we lose

You need to establish IBM cloud leadership mindshare with your customers– Use this to identify pragmatic, short-term opportunities to sell and move the customer forward

•



New IntelligenceNew IntelligenceSmartWorkSmartWork

Dynamic Infrastructure Dynamic Infrastructure

Green & Beyond Green & Beyond

Infrastructure as a Service

*Information as a Service* Business Process

as a service

Cloud Services delivered from a Dynamic Infrastructure.

* Energy Mgmt as a Service

A dynamic infrastructure provides a foundation for efficient delivery of cloud based services.

Cloud has multiple possible deployment models (public, private, or hybrid)

Cloud also has multiple layers of service (application, platform or infrastructure provided as a service)

* Examples only – there are multiple possible types of cloud services aligned to smart work, new intelligence , green & beyond

Chart can be used with customers



Delivery characteristics drive the IBM definition of Cloud Computing

Cloud Computing is a new consumption and delivery model inspired by consumer Internet services. Cloud Computing exhibits the following key characteristics:

1. On-demand self-service 2. Ubiquitous network access3. Location independent resource pooling4. Rapid elasticity

5. Pay per use/ flexible pricing models, eg, pay per use

Monitor & ManageServices & Resources

CloudAdministrator

DatacenterInfrastructure

Service Catalog,ComponentLibrary

Service Consumers

Component Vendors/Software Publishers

Publish & UpdateComponents,Service Templates

IT Cloud

AccessServices




GOVERNANCE

Public …

Standardized services on the provider’s cloud.

Access by subscription.

Private …

Client owned – managed by client or services provider.

Access defined by client.

Cloud Services

Cloud Computing Model

Considerations …Speed & flexibility.Standardization.Security, privacy, resiliency.

New consumption and delivery models drive new sourcing options and business flexibility




Public Cloud Providers Are A New Challenge To Enterprise Data Centers

Line-of-business units can now go to public cloud providers for IT infrastructure services, eg:– Amazon Web Services (AWS) – Microsoft Azure

Low cost, pay-per-use model seen as more cost-effective– Amazon EC2: $0.10/hour (small Linux/UNIX instance)

Near-immediate provisioning enables users to respond at market speed– 64-node Linux cluster available in 5 minutes on AWS vs. 3 months

internally1

Threatens disintermediation of firm’s IT strategy and information assets

1 http://www.informationweek.com/cloud-computing/blog/archives/2009/01/whats_next_in_t.html



What Is The Solution?

Much of cloud computing revenue opportunity in the next three years will be driven by private cloud implementations

Cisco and HP are in our customer accounts trying to win the business– Much of what they call cloud is IT infrastructure plays which you know how

to sell

How to counter Cisco and HP – Use IBM Cloud Strategy to tell the story and advise clients– Make use of IBM’s Dynamic Infrastructure for Cloud to counter IT proposals

from Cisco and HP being presented as cloud– IBM can go head to head with Cisco UCS & HP Matrix

• Team up with IBM to offer IBM CloudBurst, and integrated hw, sw and services solution

IBM Dynamic Infrastructure for Cloud: Reinvent the data center to build a more flexible infrastructure – a critical part of a successful cloud deployment– Take Cost Out

• Virtualization and consolidation– Request-Driven Provisioning

• Automatic self service• Pay-as-you-go chargeback

Provide private cloud services to the enterprise



An effective Cloud Computing deployment is built on a Dynamic Infrastructure and is highly optimized to achieve more with less….

=

CLOUD COMPUTING

Reduced Cost

…leveraging virtualization, standardization andautomation to free up operational budget for new investment.

VIRTUALIZATION +STANDARDIZATION AUTOMATION+




Cloud Services DeliveryElastic Scaling

Rapidly provisionedFlexible pricing

Ease of useStandardized offerings

Required Infrastructure Characteristics for effective Cloud Delivery

Open standards-based, service-oriented Advanced virtualization and automated mgmt Common components and processes Advanced security and resiliency Easy to use service catalog

A dynamic infrastructure provides the foundation for effective cloud services delivery




Major factors driving cloud economics

Virtualization of Hardware

Standardization of Workloads

Utilization of Infrastructure

Automation of Management

Virtualized environments only get benefits of scale if

they are highly utilized

Drives lower capital requirements

More complexity = less automation possible =

people needed

Take repeatable tasks and automate

Lab

or

Lev

erag

eIn

fras

tru

ctu

re

Lev

erag

e




Simplification/ Consolidation

Consolidation, systems management, and monitoring

Reduce infrastructure complexity, staffing requirements, and costs

Improve business resilience and utilization

Advanced Virtual

Resource Pools

Remove physical resource boundaries

Allocate less than physical boundary

Improve scalability, increase utilization

Reduce hardware costs

AdvancedService

Management

Service catalog, metering, and automated deployment of virtualized resources

Integrated virtualization management with IT processes

Reduce overhead, improve productivity

The key building blocks of clouds are familiar…

User Self Service

Centralized, robust, self serve portal for 24X7 access to tools, information, IT and business services

Improve user satisfaction & productivity

Control and manage delivery, support & administrative costs

System pools with VMControl … Tivoli Service Automation Manager




IBM Transformation

155 data centers to five.

16,000 applications to 4,500.

$1.5 Billion savings.

Technology Adoption Program “TAP cloud” for 110,000 employees.

“Project Blue Cloud”

Hundreds of client engagements.

20 Cloud centers.

Proof-of-concepts.

IBM Research/Client collaborations.

Academic Alliance

Global collaboration.

27 Universities.

800+ students.

NSF grants to 14 schools.

IBM has invested to achieve insight, innovation and breakthrough solutions

Carnegie Mellon NedBank iTricity Wuxi HCMCUniv of Technology




Business Case Results – IBM Technology Adoption Program

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

StrategicChange Capacity

Hardware, labor & power savings re-duced annual cost of operation by 83.8%

The IBM TAP business case re-presents an ideal environment fora 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)

Business Case Results:Annual savings: $3.3M (84%)

from $3.9M to $0.6M

Payback Period: 73 days Net Present Value (NPV): $7.5M

Internal Rate of Return (IRR): 496%Return On Investment (ROI): 1039%




0

50000

100000

150000

200000

250000

300000 Facilities &Administration

Software

Hardware/ComputeInstance

$285K

$253K

$57.7K

Private CloudCost Advantage

PrivateCloud

Power/VM(p570)

Buy Standalone Servers

Public Cloud(AWS)

Private Cloud x86

hypervisor

Co

st

pe

r W

ork

loa

d/Im

age

$71.1K

Private Cloud Cost AdvantageCost Per Image for Linux Workloads (5 Yr TCO)

PrivateCloudz/VM

Add IFLs to z10 EC

$55.8K

SWG Competitive Project Office Study




Delivering Cloud Computing to our Clients

Workload Optimized – workload characteristics will drive the rate and degree of standardization of IT and business services.

Choice of Delivery Models – public, private and other consumption models reflect clients’ differing circumstances and needs

Integrated Service Management – increasing complexity of IT systems necessitates enhanced service management visibility, control and automation

EnterpriseData Center

Cloud

Hardware

Software

Services

Smart Business Servicescloud services delivered

Smart Business Systems

purpose-built infrastructure

Standardized services on the IBM cloudPrivate cloud services, behind your

firewall, built and/or run by IBMIntegrated Service Delivery Platform

IBM offers 3 delivery models by workload

Private Cloud




Cloud usage should be tailored to the workload

Workloads where risk and migration cost may be too high:

Database

Transaction processing

ERP workloads

Highly regulated workloads Workloads which can be standardized for cloud:

Web infrastructure applications

Collaboration infrastructure

Development and test

High Performance Computing New workloads made possible by cloud:

High volume, low cost analytics

Collaborative Business Networks

Industry scale “smart” applications




Delivering Cloud Computing to our ClientsSample of cloud computing offerings

EnterpriseData Center

Cloud

Hardware

Software

Services

Smart Business Servicescloud services delivered

Smart Business Systems

purpose-built infrastructure

Standardized services on the IBM cloudPrivate cloud services, behind your

firewall, built and/or run by IBMIntegrated Service Delivery Platform

IBM offers 3 delivery models by workload

Private Cloud


Collaboration:

IBM Lotus Live

IBM Lotus Live iNotes

Infrastructure Compute:

IBM Computing on Demand

…

Analytics:

IBM Smart Analytics Cloud **


IBM Smart Business Test

Cloud **


IBM CloudBurst **

** team with IBM for these solutions



IBM Dynamic Infrastructure Building Blocks for Cloud Computing

Virtualized servers and storage– System x, IBM BladeCenter, iDataplex, Power Systems, System z– SAN Volume Controller

IBM Systems Director VMControl– Standard Edition

•Image Management– Enterprise Edition -- New

•Virtual System Pools

IBM Solution Edition for Cloud Computing (System z) -- New– Standard IBM offering to create a cloud computing management and

infrastructure for hosting private clouds

Tivoli Service Automation Manager 7.2 – New release– Cornerstone for IBM's Service Management Center for cloud

computing. – Provides the ability to request, deploy, and helps manage clouds with

simple entry points

IBM WebSphere CloudBurst Appliance 1.1– Dispense & manage WebSphere images in a cloud

Chart can be used with customers after Oct 20th announcements

Virtualized Systems

Virtualized Systems

Virtualized Systems

VMControl

TS

AM

WebSphere CloudBurst



How do you get started with a customer:A practical approach… Dynamic Infrastructure for Cloud

Start with an isolated cloud deployment•Choose low-risk workload such as test and development – we have a pattern established

•Focus on defining services to be provided, what will be different

•Measure ROI

Define a cloud strategy & roadmap

•Choose an initial project and understand the workload characteristics

•Assess cloud deployment models, service options

•Plan cloud strategy and roadmap

Develop a broader plan with ongoing ROI •Services can provide thought leadership

•IBM can deliver capabilities however your customer wants to acquire

Test & Deploy

Extend & Evolve

Plan & Prepare

Condition the existing infrastructure for cloud

•Virtualize and automate existing systems

•Add service management (provisioning, service catalog, user

interface)**


**Note: Dynamic Infrastructure service mgmt includes Tivoli Service Automation Manager (TSAM)



How IBM Business Partners can help

Action Key Questions How IBM BPs can help

Define a cloud strategy & roadmap

1. Does client have a basic understanding of cloud computing?

2. Does client have a cloud strategy?3. Are client workloads good candidates for cloud

computing?4. Is client IT infrastructure cloud ready5. Would client like to assess its cloud readiness and

define a roadmap?

IBM Cloud Website

Schedule a IBM Cloud briefingAnalyze client work loads

Dynamic Infrastructure for CloudTeam with IBM for Infrastructure Strategy and Planning Services for Cloud

Condition client’s infrastructure for cloud

1. Has client consolidated the server/storage/application environment?

2. Is client fully optimizing the capabilities of a virtualized server/storage/application infrastructure?

3. Is client network infrastructure optimized to support cloud?

4. Is client implementing a service management platform and a service catalog?

Dynamic Infrastructure for Cloud consolidation & virtualizationDynamic Infrastructure for Cloud optimization solutionDynamic Infrastructure for Cloud network solutionsDynamic Infrastructure for Cloud service management solutions

Plan & Prepare




How IBM can help

Action Key Questions How IBM can help

Choose a pilot project 1. Which workloads are client considering for a pilot? Advise which workloads are lower risk for initial pilots

Standardize applications & systems for pilot

1. Has client standardized its operating system configurations?

2. Does client have a flexible IT environment, eg, dynamically provisioning & service catalog, standard application configuration?

Dynamic Infrastructure for Cloud Virtualization Dynamic Infrastructure for Cloud service management

Test & Deploy




How IBM can help Examples of cloud-delivered services

Action Key Questions How IBM can help

Review or develop cloud computing roadmap

1. Have you identified what aspects of your portfolio (workloads) could benefit from a cloud computing model?

2. Is this situation better suited for a public or private cloud?3. Have you prioritized based on business value return?

IBM Business Partners can work with you to condition your infrastructure.

Augment with public or private cloud services

1. Do you have the right skills?2. Do you have the right infrastructure elements?3. Can you control access the cloud with policies?4. Can you securely access and use the cloud?

IBM Business Partners can help you assess your skills or help with the implementation of the infrastructure.

Implement solution 1. Is this a private cloud services deployment?

2. Is this a public cloud services acquisition?

Examples of cloud services are:LotusLiveComputing on Demand

Extend & Evolve




Dynamic Infrastructure for CloudSelling the infrastructure for a private cloud

1) Present together Dynamic Infrastructure for Cloud and IBM Cloud vision: strategy, business impact, savings, technology

Cloud provides an additional Dynamic Infrastructure reason of call2) Show ROI examples of Dynamic Infrastructure for Cloud 3) Show IBM differentiation:

Many customers will start small, but strategically move into a cross-platform infrastructure Use TCO advantages of a Dynamic Infrastructure for private cloud

4) Leverage IBM Optionally offer a Cloud Computing Infrastructure Workshop (engage STG lab services) Use the SWG Competitive Project Office study – If you need help from the CPO, email Scott Bain, [email protected]

5) Contain the scope Focus on how to prepare for successful outcome, Dynamic Infrastructure for Cloud key If you don’t, discussions could go on forever Recommend that client starts with Dynamic Infrastructure for Cloud

6) If a client already has a dynamic infrastructure and wants to deploy cloud Team with IBM Focus on private cloud and start small Test/dev is a good low risk workload that can quickly offer ROI Plan & deploy initial pilot project



IBM Case Studies

Resource Description Link

Cloud computing saves time, money, and shortens production cycles

TAP’s role is to prototype and deploy new IBM technologies with 100,000 early adopters who will test-drive and provide feedback on new applications.

Based on their feedback, IBM decides which of the myriad new technology applications to move into production.

Link to case study

Cloud computing improves productivity in IBM Benchmark and Learning Centers

The technical support demands of the Benchmark and European Learning Center in Montpellier, France are high. Before the adoption of cloud computing, provisioning the IT infrastructure for a benchmark or course required more than a week of intensive labor.

Link to case study

IBM Research doubles its productivity with cloud computing

IBM researchers can testify first hand to the benefits of cloud computing. The labs are living workshops scattered around the globe where cutting-edge innovations for new technology, services, IT optimization, streaming workflow and disaster recovery are forged.

Link to case study

IBM Computing on Demand uses clouds to increase productivity

Computing on Demand (CoD), utilizes cloud computing technology to deliver the computing capacity customers want, when they want it and only for the time period they require it. It’s this on-demand feature that makes CoD so customer-friendly.

Link to case study




For more information …

Cloud Computing Sales Kit, seller & customer education, deliverables, white papers

System z seller education for cloud computing

Advantages of a Dynamic Infrastructure: A Closer Look at Private Cloud TCO– This paper examines the TCO for a dynamic infrastructure built around private cloud services and compares

it to public cloud alternatives as well as conventional one-application-per-distributed server models.

Pulse 2009 -- The ROI of Cloud Computing: Getting the Most Out of Your Investment– PPT presentation – Benefits of cloud computing and ROI through consolidation and virtualization of IT

resources and increasing management efficiency.

Gartner co-authored paper: Dynamic Infrastructure – Driving Success– This paper, which is co-authored by Gartner, outlines the need for a dynamic infrastructure, a strategy for

developing one, and some best practices and options to consider when getting started.

Cloud Computing: A Highly Resilient Solution for Service Delivery– Gartner defines cloud computing as a style of computing where scalable and elastic IT-enabled capabilities

are provided as a service to external customers using Internet technologies and further discusses cloud computing in detail.

CloudBurst Sales Kit for BPs

Computing on Demand Sales Kit for BPs

Cloud IBM TV Ads

Cloud Customer Site

Smart Analytics Education

Cloud Connect Community



Contacts

Anne Peck: AG Dynamic Infrastructure– [email protected]

Alice Moran: AG BP Cloud Sales Play– [email protected]

Gary Tomchuk: AG BPO Cloud Communications– [email protected]

Kathy Church: AG BP Cloud Enablement Execution– [email protected]

Annette Miller: WW Dynamic Infrastructure Offering Team, Cloud Computing Lead– [email protected]



Understand the strategy

Have a discussion with your customer

Propose next steps to progress your opportunity

Be conversant in Dynamic Infrastructure and Cloud Computing

Leverage Dynamic Infrastructure for Cloud - both Virtualization + Service Management are KEY

Team with IBM if a client wants to pilot cloud

Understand their approach to delivering services – use whiteboarding to discuss service management

Identify opportunities by probing for places we can help, especially with a test/development scenario

Sell Dynamic Infrastructure for Cloud Leverage our briefing centers so you can showcase our capabilities for your customer

Call to ActionCall to Action



SWG Competitive Project Office TCO Study



0

50000

100000

150000

200000

250000


Software


$285K

$253K

$57.7K


PrivateCloud

Power/VM(p570)

Buy Standalone Servers

Public Cloud(AWS)

Private Cloud x86

hypervisor

Co

st

pe

r W

ork

loa

d/Im

age

$71.1K

Cost Per Image for Linux Workloads (5 Yr TCO)

PrivateCloudz/VM

Add IFL’s to z10 EC

$55.8K



0

50000

100000

150000

200000

250000


Software


$285K

$253K

$57.7K


PrivateCloud

Power/VM(p570)

Buy Standalone

Servers

Public Cloud(AWS)

Private Cloud x86

hypervisor

Co

st

pe

r W

ork

loa

d/Im

age

$71.1K

Cost Per Image for Linux Workloads (5 Yr TCO)

PrivateCloudz/VM

Add IFL’s to z10 EC

$84.3K

PrivateCloudz/VM

Buy New z10 BC

$55.8K



Tivoli Services Automation Manager (TSAM) Delivers Fast Self-Service Provisioning

TSAM leverages two stable and mature Tivoli products to create a user friendly provisioning solution

Tivoli Service Request Manager (TSRM) provides the web-based interface with service desk and service catalog

Tivoli Provisioning Manager (TPM) provides the automation infrastructure required to deploy new servers



Example – Deploy New Virtual Server Based On Existing Image

Service

Hardware

Hypervisor

Request service

IBM Tivoli Service Automation Manager (TSAM)

1. User requests service via portal from the catalog

2. TSAM approves user request, reserves hostname

3. TSAM starts the deployment process via Tivoli Provisioning Manager workflow

4. TSAM notifies the user that service is ready on the new LPAR

IBM Tivoli Provisioning Manager

Deploy

Catalog

Self Service Portal

Auto Manage

IBM Tivoli Service Request Manager

Use service



Key Requirements for Metering and Billing

Tivoli Usage and Accounting Manager Capability

Who is consuming which IT resources?

What is the cost of those resources, including those that are shared?

How should IT allocate cost for chargeback, ROI, costing analysis, and reporting/billing?

Data collectors for IT infrastructure can review consumption across multiple dimensions

Costing engine assigns cost to resource usage

Costing and reporting engine associates and report usage costs to consumers of IT resources

Tivoli Usage and Accounting Manager (TUAM) Helps Facilitate Pay-As-You-Go Chargeback



SWG CPO TCO Study Summary

Escalating business requirements driving need for data center transformation– Take costs out– Consume less power– Provision service faster– Improve chargeback to pay-as-you-go

Emergence of public cloud providers of IT infrastructure threatens disintermediation of IT

Implementing a private cloud provides a lower cost alternative to meet business requirements

IBM offers new capabilities for self-service access and easy deployment into a private cloud

Return to mainline presentation



http://w3.ibm.com/software/cpo

© 2009 ibm corporation cloud computing for stg business partners annette miller [email protected]...

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