© 2010 ibm corporation smarter planet: using cloud computing to deliver innovation and efficiency

© 2010 IBM Corporation

Smarter Planet: Using cloud computing to deliver innovation and efficiency

© 2010 IBM Corporation2

IBM Cloud Computing

The world is getting smarter – more instrumented, interconnected, intelligent.

Trafficsystems

Water

EnergygridsHealthcare

Foodsystems

Intelligentoil field

technologies

Smart regions

WeatherEconomicdevelopment

Supply chains

Smart cities

Retail


IBM Cloud Computing

55K PB/MoDigital data is projected to grow tenfold from 2007 to 2011

As the planet gets smarter the information explosion and rapid change create new challenges

Global Internet traffic volume expected by 2013

Number of devices will be connected to the Internet by 2011

Percentage of CIOs who expect to face substantial change over the next three years

10x

1 trillion 83%


IBM Cloud Computing

Yet today’s IT infrastructure is under tremendous pressure and is finding it difficult to keep up…It will reach a breaking point

In distributed computing environments, up to 85 percent of computing capacity sits idle

Percentage of executives who report a security breach and aren’t confident they can prevent future breaches

66 percent is spent on maintaining current IT infrastructures versus adding new capabilities

Percentage of CIOs who want to improve the way they use and manage their data

66%

85% idle

78%

82%


IBM Cloud Computing

There is a greater need for IT to help address business challenges

Reducing riskEnsure the right levels of security and resiliency across all business data and processes

Breakthrough agilityIncrease ability to quickly deliver new services to capitalize on opportunities while containing costs and managing risk

Higher quality servicesImprove quality of services and deliver new services that help the business grow and reduce costs

Doing more with lessReduce capital expenditures and operational expenses


IBM Cloud Computing

There are three ways to acquire IT capabilities

Cloud computing is a new delivery and consumption model or methodology spanning all 3 ways.

Software, hardware

and services

Pre-integrated systems and appliances

Provided as services


IBM Cloud Computing

What is different about cloud computing?

With cloud computingWithout cloud computing

Virtualized resources Automated service

management Standardized services

Location independent

Rapid scalability Self-service

Software Hardware

Storage Networking

Software

Hardware

Storage

Networking

Software

Hardware

Storage

Networking

Note: Elements of cloud computing taken from NIST, Gartner, Forrester and IDC cloud computing definitions


IBM Cloud Computing

Cloud computing delivers IT and business benefits

AutomatedFaster cycle times

Lower operating expensesOptimized utilization

Improved complianceOptimized security

End user experience

StandardizedEasier access

Flexible pricingReuse and share

Easier to integrate

VirtualizedHigher utilization

Economy of scale benefits

Lower capital expense

Higher quality services

Doing more with less

Breakthrough agility and reducing risk


IBM Cloud Computing

Risk & Compliance

34,000-employee bank deploying a private cloud from IBM to centralize management of desktops via an enterprise class data center rather than at the user stations.

Gets greater remote flexibility without sacrificing control.

Employee Productivity

Enable collaboration across global employees as well as its network of customers, partners and suppliers.

IBM LotusLive has 18 million users in 99 countries

Analytics & Security

Design and demonstration of a secure cloud infrastructure for defense and intelligence networks; insights about cyber attacks, network, system or application failures, while automatically preventing disruptions.

Time to ValueCreates an ecosystem for PayPal 3rd Party developers

Reduces developer effort to deploy a work environment with seamless PayPal Test Sandbox access

Organisations have different motivations for leveraging cloud


IBM Cloud Computing

IT benefits from cloud computing are real

Test provisioning Weeks Minutes

Change management Months Days/hours

Release management Weeks Minutes

Service access Administered Self-service

Standardization Complex Reuse/share

Metering/billing Fixed cost Variable cost

Server/storage utilization 10–20% 70–90%

Payback period Years Months

SOURCE: Based on IBM and client experience.

Increasing speed and

flexibility

Reducing costs

Results from IBM cloud computing engagements


IBM Cloud Computing

Integrate a cloud computing deployment as part of the existing IT optimization strategy and roadmap

Consolidate

Virtualize

Standardizeand automate

Reduce infrastructure complexity

Reduce staffing requirements

Manage fewer things better

Lower operational costs

Remove physical resource boundaries

Increase hardware utilization

Reduce hardware costs

Simplify deployments

Standardize services Reduce deployment

cycles Enable scalability Flexible delivery


IBM Cloud Computing

Adoption of cloud computing will be workload driven

Web infrastructure applications

Collaborative infrastructure

Development and test

High Performance Computing

...

Test for Standardization Examine for Risk Database

Transaction processing

ERP workloads

Highly regulated workloads

...

High volume, low cost analytics

Collaborative Business Networks

Industry scale “smart” applications

...

Explore New Workloads

Workload characteristics determine standardization


IBM Cloud Computing

Workloads may be at different levels of readiness for cloud


IBM Cloud Computing

There is a spectrum of deployment options for cloud computing

Private Public

Hybrid

IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall

Internal and external service delivery methods are integrated

IT activities / functions are provided “as a service,” over

the Internet

Third-partyoperated

Third-party hosted and operated

Enterprise data center

Enterprise data center

Private cloud Hosted private cloud

Managed private cloud

Enterprise

Shared cloud services

A

Enterprise

B

Public cloud services

A

Users

B


IBM Cloud Computing

Public and Private Clouds are preferred for different workloads

Database- and application-oriented workloads emerge as most appropriate

Data mining, text mining, or other analytics Security Data warehouses or data marts Business continuity and disaster recovery Test environment infrastructure Long-term data archiving/preservation Transactional databases Industry-specific applications ERP applications

Infrastructure workloads emerge as most appropriate

Audio/video/Web conferencing Service help desk Infrastructure for training and

demonstration WAN capacity, VOIP Infrastructure Desktop Test environment infrastructure Storage Data center network capacity Server

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Top public workloadsTop private workloads


IBM Cloud Computing

Clients interviewed significantly prefer private clouds over public or hybrid clouds

Overall, how appealing are the public, private and hybrid delivery models for your company?

64%

30%Public

Private

64%

38%Hybrid

Private

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Public vs. Private trade-off considerations

Benefits Increased Speed

Lower Cost

Security Insecure or incomplete data deletion

Isolation failure

Malicious Insiders

Management infrastructure compromise

Governance Resiliency

Level and source of support

Architectural & management control

Compliance

Customization / specialization


IBM Cloud Computing

Cloud service management capabilities are needed to enable visibility, control and automation of cloud services

WorkflowManage the process for approval of usage

ProvisioningAutomate provisioning of resources

MonitoringProvide visibility of performance of virtual machines

Metering and ratingTrack usage of resources


IBM Cloud Computing

Capitalizing on new efficiencies

Reduced labor and infrastructure need to develop and deploy new services

Decreased new application deployment time from 10 weeks to less than 1 week

Accelerated business transformation

Solution IBM CloudBurst service delivery platform


IBM Cloud Computing

Taking new capabilities to the marketplace faster

Established company as leader in industry Enabled customers and business partners to leverage

new models more easily and increased company revenue with new models

Improve new service development time, achieving faster time to market

Improved efficiencies of resources, delivering reduction in CapEx & OpEx

Solution Private cloud built by IBM


IBM Cloud Computing

Saving money to invest in education

Pike County Schools avoided the cost of replacing 1,400 workstations by deploying a virtual desktop solution on the IBM cloud

Achieved cost savings of more than 60%

Increased security

Reduced SW license and overall maintenance costs

Solution

IBM Smart Business Desktop on the IBM Cloud


IBM Cloud Computing

Virtual Computing Lab

NBC


IBM Cloud Computing

Department of the Interior National Business Center

Private cloud services on top of existing shared back office systems

DoI NBC


IBM Cloud Computing

Organisations that implement cloud computing are seeing significant results

Reduced IT labor cost by 50 percent in configuration, operations, management and monitoring

Improved capital utilization by 75 percent, significantly reducing license costs

Reduced provisioning cycle times from weeks to minutes

Improved quality, eliminating 30 percent of software defects

Reduced end user IT support costs by up to 40 percent

Simplified security management


IBM Cloud Computing

The key promises of cloud are not confusing… and it is the business models that cloud enables that are really important…

For the user, cloud provides a way of acquiring computing services without requiring understanding of the underlying technology.

For the government, cloud computing delivers services for employee, citizen and business needs in a simplified way, providing more or less unbounded scale and potential improvements in quality of service and environmental posture.

For IT operations, cloud is a new acquisition and delivery model for resources and, if properly used within an overall strategy, can help improve business performance and control the costs of delivering IT resources to the organization.

Collaboration for economic development

Shared services delivery

Educational services

New business models for multilaterals

Shared back office for (e.g.) ITS

Intellectual property analysis

Investigation analytics

Community engagement

Water management

Identity services for emerging nations

Healthcare analytics

Medical imaging

…

It promise


IBM Cloud Computing

ComplianceComplying with SOX,

HIPPA and other regulations may prohibit the use of clouds

for some applications. Comprehensive auditing capabilities are essential.

But ReliabilityHigh availability will be a key concern. IT departments will worry about a loss of service should outages occur. Mission critical applications may not run

in the cloud without strong availability guarantees.

Security Management

Providers must supply easy, visual controls to manage

firewall and security settings for applications and runtime environments in the cloud.

Data SecurityMigrating workloads to a shared

network and compute infrastructure increases the potential for unauthorized

exposure. Authentication and access technologies become

increasingly important.

ReadinessNowhere near all software is “cloud ready” and able, in the

short term, to take advantage of cloud models either public or

private.

Less ControlMany governments are

uncomfortable with or have policies which limit the idea of

their information located on systems they do not control.

Providers must offer a high degree of security transparency

to help put people at ease.

TrustCitizens place trust in

government in ways they do not for retail, auction, personal,

clouds. Allowing a cloud-b based service to answer a citizen’s

question might be appropriate – or it might not.

forrester

© 2010 ibm corporation smarter planet: using cloud computing to deliver innovation and efficiency

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