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© 2012 IBM Corporation Cloud Computing CBS, March 11’th Henrik Hasselbalch Cloud Leder, IBM Danmark 4.500 successful cloud projects 4.5M daily client transactions through public cloud >1M managed virtual machines 80 % revenue Growth in 2012 7 B $ Committed revenue in 2015

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Page 1: CBS March 11

© 2012 IBM Corporation

Cloud Computing CBS, March 11’th

Henrik HasselbalchCloud Leder, IBM Danmark

4.500successful cloud projects

4.5Mdaily client transactions

through public cloud

>1Mmanaged virtual machines

80 %revenue Growth in 2012

7 B $Committed revenue in 2015

Page 2: CBS March 11

© 2012 IBM Corporation

13%

41%21%

28%38%

21%

Today 3 yrs

Cloud is widely recognized as an increasingly important technology; adoption is expected to accelerate rapidly in the coming years

Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organisation’s level of cloud technology adoption today and which do you expect will best describe it in three years? Sizing the cloud , Forrester Research, April 21, 2011; http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First

Piloting

Adopting

SubstantiallyImplemented

+215%

+33%

72%

91%

What is Your Organization’s Level of Cloud Adoption?

% of Respondents

The Global Cloud Computing Market is Forecast to Grow 22% per year through 2020

$0B

$50B

$100B

$150B

$200B

$250B

2011 2015 2020

$241B

$41B

$150B

Source: Sizing the cloud, Forrester Research, Inc., April 21, 2011

Page 3: CBS March 11

© 2012 IBM Corporation

Gartner Hype curve Q3 2012:

Page 4: CBS March 11

© 2012 IBM Corporation

IBM DK Cloud Survey Q2 2012

’Cloud is genious and ensures increased flexibility. However, it is also old wine on new bottles......’

Page 5: CBS March 11

© 2012 IBM Corporation

Mobility, social media, increasing digitization and new analytics capabilities are conspiring to drive broad business change

Mobile revolution Connectivity, access and participation are growing rapidly Smart devices are becoming the primary route to get connected Devices are getting smarter as they are increasingly enriched by mobile apps

Major Technology Trends driving Business Change

Social media explosion Social media is quickly becoming the primary communication and collaboration format GenY’s or “digital natives” use of technology and social media platforms is accelerating adoption Enterprises are adopting social media but are struggling to realize the value and manage risk

Hyper digitization Digital content is produced and accessed more quickly than ever before Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness An increasing number of connected devices and sensors is further driving growth

The power of analytics New capabilities for real time analysis, predictive analytics and micro-segmentation are emerging Top performing companies use analytics to drive action and business value Analytics are making information “consumable” and is transforming all parts of the organization, from

customer intimacy to supply chain management

Source: IBV Analysis

Page 6: CBS March 11

© 2012 IBM Corporation

IT is Being Challenged by Business

Business Opportunity

Time to Operations of IT

LOST BUSINESS

Page 7: CBS March 11

© 2012 IBM Corporation

The Current It Challenge - Sprawl

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© 2012 IBM Corporation

Is IT ready for the challenge?

* 2012 IBM Global Data Center Study

68% of IT operating costs in 2013 will be for

management and administration

Only 1 in 5

organizations allocate more than 50% of IT budget to new projects

2013

68%29%

1996

* IDC; Converged Systems: End-User Survey Results presentation; September 2012; Doc #236966

New server spendingPower & cooling costsServer mgmt & admin costs

Page 9: CBS March 11

© 2012 IBM Corporation

Danish CIOs 10 top priorities in 2013 1. Implementing new solutions: 27.3 procent

2. Support multiple platforms and operatingsystems: 26.8 procent

3. Modernise the infrastructure and/or applications: 26.4 procent

4. Improve and automate IT processes: 25.9 procent

5. Adjust IT-systems to changes business requirements: 23.6 procent

6. Reduce cost: 23.2 procent

7. Improve service: 19.5 procent

8. Secure a secure infrastructure: 17.3 procent

9. Optimise business processes by using IT: 16.8 procent

10. Keep old systems running: 10.9 procent

Kilde: IDC

Page 10: CBS March 11

© 2012 IBM Corporation

Cloud Computing Rocket science ???

Page 11: CBS March 11

© 2012 IBM Corporation

NIST definition of Cloud Computing

"cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction."

Page 12: CBS March 11

© 2012 IBM Corporation

Buy a car

Rent a car

Take a taxi

’Cloud is a service delivery type …e.g. a new way to deliver IT services...’

Page 13: CBS March 11

© 2012 IBM Corporation

Infrastructure-as-a-Service

Platform-as-a-Service

Software-as-a-Service

Servers Networking Storage

Middleware

Collaboration

Financials

CRM/ERP/HR

Industry Applications

Data Center Fabric

Shared virtualized, dynamic provisioning

Database

Web 2.0 ApplicationRuntime

JavaRuntime

Development

Tooling

The 4 delivery types of services :

Business Process-as-a-Service

Employee Benefits Mgmt.

Industry-specific

Processes

Procurement

Business Travel

Layer 1

Layer 2

Layer 3

Layer 4

Page 14: CBS March 11

© 2012 IBM Corporation

F&A

HR

SCM

CRM

Industry-specific

TAUNTON

SAINT JOHN

TORONTO

TULSA

RTP BEAVERTON

BOULDER

SAN JOSE

GREENVILLE BRAGA

DUBLIN

CAIRO HORTOLANDIA

BUENOS AIRES

MONTEVIDEO

MUMBAI

SOFIA

COVENTRY

KRAKOW

SHANGHAI

PUNE

KOLKATA

VIZAG

CHENNAI

MANILA

BRISBANE

TOKYO

SAPPORO

JEONJU

DALIAN

BALLARAT

TUCSON

DALLAS

DALEVILLE

ATLANTA

EDICOTT

SAO PAULO

BUDAPEST

CHANDIGARH

ISTANBUL

PARIS

GREENOCK

NEWCASTLE

BANGALORE

ANTANANARIVO

BRATISLAVA FREETOWN

KAMPALA

OKINAWA

FUKUOKA

QUEENSLAND

SYDNEY

MELBOURNE

DELHI

GURGAON

FOSHAN BERLIN

SWANSEA

KASAI

IBM Global Process Services takes a balanced-shore approach

Page 15: CBS March 11

© 2012 IBM Corporation

The need: Skype, initially a free, Internet-based communications service, built a portfolio of services offered at a fee. Because of Skype’s rapid growth, it did not have the infrastructure, processes, governance or corporate structure to deliver satisfactory levels of customer support. Skype recognized that efficient and effective customer service was critical to the growth of its fee-based services and sought a business process operations provider that could manage its email customer service operations.

The solution:IBM GPS analyzed the client’s needs and created a service and response plan whereby IBM global resources would provide email and live chat support for customer queries, service complaints and billing concerns. IBM divided its activities among 3 sites to support the company’s international customer base: Cairo; Boulder, Colorado; & Manila, Philippines. IBM provides email support in 7 languages and live chat support in English. In addition IBM provides web content support for Skype Customer Services from our delivery centre in Bratislava.

The benefits: Skype customers experienced a significant improvement in customer services levels: email responses that

once took up to 24 hours now take 2 hours or less.

At the beginning of the contract 85% of Skype customers corresponded through email. Today up to 50% prefer the quicker response time & resolution rates of chat services. The expansion of live chat greatly improved the speed of problem resolution.

When IBM secured the contract, its initial point of contact resolution performance was 70%. As of April 2012, the resolution rate has increased to more than 80%.

As a result of the improvements in customer support and cross-selling by IBM Skype has experienced a 50% increase in its fee-based service web pages.

And for We do AP, Payroll and TravelExp Mgt

Page 16: CBS March 11

© 2012 IBM Corporation

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© 2012 IBM Corporation

Unilever Europe: A global CPG company

The need:This global consumer products company needed to simplify its complex finance organization across 24 (100) countries and 18 ERP systems. It also needed to achieve cost efficiencies to generate revenue for greater focus on its brand.

The solution:IBM implemented standardized finance processes and innovative technology under an award-winning joint governance model. Leveraging asset-based process models and global delivery capabilities, this transformational solution helped integrate the company and create a more flexible operating and financial model.

Why IBM?“The successful partnership between IBM and Unilever Europe along with an ambitious transformation agenda will continue delivering significant and sustainable benefits for Unilever Europe.”

Solution components: Accounts payable

Travel & expense

Bill to cash

Record to report

The benefits: New, centralized “One-Unilever” finance organization for greater efficiency and

operational savings contributing to €700M annual savings for the company

End-to-end process ownership and standardized processes and technology for enhanced data quality, tighter controls and greater speed of information

Pan-European service management, including greater visibility and access to information for decision making and continuous improvement

Flexible, agile delivery model to meet Unilever’s evolving business environment and drive greater benefits from economies of scale

IBM provided managed business process services on a three-

tier delivery model from its facilities in

Krakow, Poland; Braga, Portugal; Bangalore, India; and

Manila, Philippines.

Page 18: CBS March 11

© 2012 IBM Corporation

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© 2012 IBM Corporation

Roadmap to cloud

Page 20: CBS March 11

© 2012 IBM Corporation

IBM SmartCloud represents the IBM vision for cloud computing

Common Open Standards Technology and Industry Ecosystem

DeployDesign

Business Process as a Service

Software as a Service

Platform as a Service

Infrastructure as a Service

Consume

Enables private/hybrid cloud service delivery and management

Cloud Enablement

TechnologiesSecure and scalable cloud managed

services platform

Managed Cloud

ServicesPre-built Cloud SaaS business

applications and solutions

Cloud Business

Solutions

Proven Strategy Consulting, Migration, & Management Expertise

Page 21: CBS March 11

© 2012 IBM Corporation

IBM provides operating system and tool licenses

Fully managed

An enterprise-grade IaaS is the foundation for our Cloud services incl PaaS and SaaS.

Rapid access, multi-tenant solution scaled and priced based on usage.

Robust multi-tenant solution, including managed production services.

Workloads

Operating system

Management level

Availability

Security

Software usage

Pricing

Ideal for developing and deploying new application designs

Ideal for migration of traditional and higher availability applications

Linux, Windows Windows, Linux, AIX

Self Service with advanced premium support

99.9% 99.9%

Virtual and some physical isolation Multiple levels of isolation

Bring your own / pay as you go / free developer use

Hourly usage-based with reserved options Monthly usage-based and fixed contract

Page 22: CBS March 11

© 2012 IBM Corporation

IBM Centers Deliver & Manage Cloud Services Around the World

Sao Paulo

Raleigh, NCSilicon Valley, CA

Boulder, CO

Johannesburg

TokyoSeoul

Hanoi

Singapore

Bangalore

Hong Kong

Beijing

Dublin

IBM Cloud Lab

IBM Cloud Data Center

Wroclaw, Poland

Ehningen, Germany

7 Cloud Data Centers11 Cloud Labs57 Global Delivery Centers54 Global Command Centers

IBM Worldwide Support Centers

Toronto

Page 23: CBS March 11

© 2012 IBM Corporation

Kundeeksempler

Page 24: CBS March 11

© 2012 IBM Corporation

‚Cloud Readiness‘ at Audi has started!

Increase Flexibility „Private SAP Cloud“

R/3Web-CenterERP BW

XIPortal

HR

Reduce total Costs for SAP

Consolidation Green-IT better utilization License-, service costs …

„Cloud Strategy“ OnDemand Capacity fully virtualized Service Standardization …

1. Harmonizing Interfaces and Operation.....

2. StandardizationSAP systems and Server configurationoperational Processes......

3. FlexibilityProvisioning & accounting......

4. Automation / Service CatalogSAP provisioning, operation, SAP services.....

Private Cloud Journey

Page 25: CBS March 11

© 2012 IBM Corporation

ING – Dutch Insurance company going from 16 to 2 new Cloud-Datacentre Business Need: Speed to market and cost reduction

Private Cloud DC

Page 26: CBS March 11

© 2012 IBM Corporation

CloudBroker : Rosetta-as-a-service

Dr. Lars Malmstrom, Institute of Molecular Systems Biology ( IMSB ) Rosetta application as a service enables researchers to process massive amounts of data as part of

their pioneering research ino the field of proteomics – large scale study of protein structures and functions . Using IBM’s SmartCloud Enterprise and an enhanced queuing and data management solution provided by our business partner, CloudBroker, the University researchers were able to identify nearly 250 potential virulence factors -- or molecules that are secreted by bacteria, viruses, fungi, or protozoa and then multiply within humans -- and create nearly 2.3 million three-dimensional models with nearly 30,000 background data packets to study the function of these harmful, disease causing pathogens.

Completed 250.000 compute hours on 1000 virtual CPUs

Public SaaS for Community

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© 2012 IBM Corporation

500.000 Hotel rooms.......

Kunde-eksempler

IaaS Usage

og nu også SaaS

Page 28: CBS March 11

© 2012 IBM Corporation

How to handle 4 yearly ”publications”

IaaS Usage

Page 29: CBS March 11

© 2012 IBM Corporation

Smart Cloud Solutions - SaaS

A health and science publisher in Philadelphia identifies and monitors key performance indicators, determines the web elements on which to focus optimization and testing efforts and gains a single source of accurate and consistent data for reporting when it implements IBM Unica NetInsight software through a Software as a Service model

......designed to meet online analysis and digital marketing

requirements with minimal complexity, little up-front cost and no

technical infrastructure investment !

SaaS IBM Solutions

Page 30: CBS March 11

© 2012 IBM Corporation

SaaS integration to Cloud based SmartCloud for Social Business for SUGARCRM.COM

SaaS - IBM Smart C

loud SaaS

Page 31: CBS March 11

© 2012 IBM Corporation

City-wideCloud

ComputingPlatform

Operational Cost Reduction

Stimulating Economic Growth

Supporting an eco-system of companies and agencies

Making the Smarter Cities vision real

“The Cloud is a cornerstone of our Economic Masterplan. The new cloud infrastructure will lay the foundation of an even smarter Sunderland..” Councillor Paul Watson, Leader of Sunderland City Council

Using Cloud to Transform

Business

IaaS for free

Page 32: CBS March 11

© 2012 IBM Corporation

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© 2012 IBM Corporation

Solution components:

IBM® DB2® (64bit)

IBM Express Runtime Solution

IBM HTTP Server

IBM Rational® Software Architect

IBM System Storage DS®

IBM System p®, IBM System x®

IBM Tivoli® Directory Server, IBM Tivoli Monitoring, IBM Tivoli Provisioning Manager

IBM WebSphere® Application Server

“Working with IBM, Wuxi iPark is able to leapfrog the latest technology model around cloud computing and SaaS and set a solid foundation to become a major source for software development outsourcing.”

— Zhou Qian, Secretary, Wuxi New District, Committee of the Community Party

of China

The Need:China is emerging as one of the world's major markets of software development and outsourcing services. However, to survive in this rapidly evolving environment, ISVs need to have agile software development processes to shorten the lifecycle from product development to market.

The Solution:IBM Research-China teamed with Wuxi iPark to enable ISVs located in Wuxi iPark to remotely access a vast computing environment for project incubation, development and testing at any time, paying for services based on usage. This utility-based service is delivered via the Web and integrates technologies and concepts from cloud computing, software-as-a-service (SaaS) and software engineering as a service (SEaaS) and includes operational and hosting services.

What Makes it Smarter: New business model allows ISVs to conserve energy and resources and reduce their IT investment, freeing up capital and resources for other business activities

Open standards-based architecture and innovative development methodology facilitates collaboration of staff in different cities to improve response times

Access to advanced software development platform enables ISVs to reach new markets with the ability to sell hosted software solutions to customers worldwide

Wuxi iParkA dynamic infrastructure frees up resources for new business

TIP14115-CNEN-01IaaS for fr

ee

Page 34: CBS March 11

© 2012 IBM Corporation

NATO ACT Mission Development CloudCloud-delivered Mission Experiment Platform

Private Cloud that enables NATO ACT Mission experiments (Command and Control, Intelligence, etc.)

Self-service, on-demand access to NATO mission assets

Integration point for NATO Enterprise SOA Services

Cloud Architecture is based on IBM Service Delivery Manager (ISDM) and fully automates NATO’s existing investments in hardware, storage and virtualization

Initially focused on NATO ACT HQs with possible expansion to NATO organizations worldwide

Includes IBM technologies and Strategic Planning services for Cloud Roadmap development

Page 35: CBS March 11

© 2012 IBM Corporation

Desk top

”What key is the right to get productive access to corporate applications?”

Bring Your Own Device

( BYOD )

1 billion devices are now

connected........

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© 2012 IBM Corporation

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© 2012 IBM Corporation

The key is ”DeskTop Cloud” a webaddress for a Virtual Desktop”and”Cloud based solution for Mobile Dev Mgt and Security” BUT........is this REALLY the future

IBM has just announced MobileFirst

Page 38: CBS March 11

© 2012 IBM Corporation

What to consider when writing ”Native Cloud Apps”

1. Good traceability between requirements, architecture, design, development and release 2. Making sure that those capabilities in the cloud reference architecture are being developed

as "services" and not specifically tied to just one tool 3. Exception handling is key. Many of the stability and security issues in Cloud environments

are from applications which do not have good error handling. 4. Migration and performance. Have a clear understanding of the performance impacts of

putting applications in the cloud.. especially when you are moving to a fully virtualized environment. Security is key as well.. since you are no longer 'physically zoned'

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© 2012 IBM Corporation

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© 2012 IBM Corporation

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© 2012 IBM Corporation

Thank you and

Feel free to contact me

[email protected]

”... IBM is emerging as the formidable competitor in cloud space” IDC, Oct. 2011