Cloud Computing and the Changing

IT Model How it impacts project delivery

Ric Telford, VP Cloud Services, IBM

December 12th, 2013

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Cloud computing is an IT consumption

and delivery model for enabling

convenient, on-demand network

access to a shared pool of

configurable computing resources that

can be rapidly provisioned and

released with minimal management

effort or service provider interaction.

5 key characteristics:

1. On-demand self-service

2. Ubiquitous network access

3. Resource pooling

4. Rapid elasticity

5. Measured Service

Virtualization Automation

Usage

Tracking Elastic

So what is Cloud Computing?

Source: 2009 National Institute of Standards and Technology, Information Technology Laboratory

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Banks built the automated

teller machine network to

improve service and lower

cost.

Manufacturers started using

robotics to improve quality

and lower cost.

Telcos automated traffic

through switches to assure

service and lower cost.

Cloud computing represents the “Industrialization of IT,” similar to when:

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The need is clear…management costs of today's IT

infrastructure are out of control

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Think cloud is just an IT obsession? Business leaders

disagree

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Cloud is extremely important to overall business success LOB’s strategic interest in cloud will soon surpass IT’s and it spans virtually every

area of the business

(finance, operations, sales and marketing, product development).

“Cloud” was defined as encompassing application, platform or infrastructure as a service as well as private, public or hybrid delivery models.

Source: IBM Center for Applied Insights Under cloud cover: How leaders are accelerating competitive differentiation

For more info, visit: ibm.com/ibmcai/globalcloudstudy

IT 18% increase

Today In three

years

LOB 112% increase 58%

49%

72%

34%

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Moving more to Cloud increases time to value but

decreases control

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Demands of technology and widespread digitization is just

exacerbating the problem

Explosion of Mobile

Devices

Infrastructure Optimization

Growth of Social Media

Advanced Predictive Analytics

Real-time Sensor Data

Cyber Security Big Data

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Over 50 years of technology evolution, we have seen major shifts in computing architectures

Transaction Systems

1960- 1990- 2010-

Web, e-business and SOA

Cloud

Big Data

Social

Mobile

Pla

tfo

rms

Dedicated systems

Single database

Managed one solution

Multiple applications

Some shared data

Post processing in warehouses

Batch processing

Time to business action

Interconnected solutions

Action taken immediately at real time speeds

User device capability & variety growing exponentially

Infrastructure stressed with volume and velocity of data

Open innovation

Unpredictable workload patterns

Strategic and tactical differentiator

Time

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For the first time, CEOs identify technology as the most

important external force impacting their organizations

“Survival skill 101 for the

next five years will be

deriving insight ahead of

peers.”

CEO

Healthcare, Australia

2004 2006 2008 2010 2012 Technology Factors

People Skills

Market Factors

71%

69%

68%

Macro-economic factors

Regulatory Concerns

Globalization

“Simplification and

standardization are key

strategies that we have been

using to reduce existing and

future complexity.” CEO

Consumer Packaged Goods, USA

Technology has never been more important to business

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THE

by

of services will be

new application models THAT ARE

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“Born in the Enterprise”

Systems of Record

“Born on the Cloud”

Systems of Engagement

Scalable

Virtualized

Elastic

Multi-tenant

Standardized infrastructure Heterogeneous infrastructure

Primarily existing virtualized workloads,

back office, middleware-based

Primarily emerging platform workloads,

new development, web-facing, scale-out

on cloud, SaaS

Automated lifecycle Integrated lifecycle

Compatibility with existing systems Exploitation of new environments

Two Application Models will Co-exist in the Enterprise

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To see where Corporate apps will be tomorrow, look at where

Consumer apps are today

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IDC on the Consumerization of IT

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To make sure your applications can deliver what you need,

when you need it, optimize the application lifecycle.

Challenges with the traditional

application lifecycle:

• Providing a security-rich and consistent

environment across development, testing

and production

• Integrating applications across internal and

external environments

• Reducing risk and high costs of down time

from lack of skills, human error and

inconsistencies

• Keeping applications available, mitigating

disruptions to the application lifecycle

• Managing the complexity of installing,

configuring, integrating and maintaining

middleware and infrastructure components

Application lifecycle

Requirement

analysis

Integration

Deploy to

production

Shared

resource

activation

Applications

for internal

use or resale

Optimize

Project

initiation

Deploy to test

Build

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How quickly can your organization develop and deploy

innovative applications that enable business growth and keep

you competitive?

Impediments to delivering new applications effectively and efficiently include:

Desire for fast

and continuous

innovation

Customers

Requirements

Line

of business

Development

team

Operations

team

Traditional

operations

First

gap

• Up to 41 percent of organizations experience delays1:

– In integration, configuration and testing apps

– Due to troubleshooting and fine-tuning issues in production

• Up to 51 percent of applications are rolled back due to quality issues escaping

into production1

• Up to four-to-six weeks to deliver a simple change2

1 Forrester/IBM Study: A New View of IBM’s Opportunity for Integrated Optimized Systems Address, 2011 2 Forrester “Five Ways To Streamline Release Management,” 2011

Second

gap

First

gap

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“Born in the Cloud” Driving Improvements in

Development and Operations

“DevOps” is the term used to describe a more integrated and efficient

model for development and delivery of applications

• “Agile Development” paradigm

• Continuous integration and test

• Cloud delivery model for development, test and operations

Development Operations

Continuous Integration

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Addressed by... Addressed by...

Agile

Dev

Customers

Desire for fast and

continuous

innovation

Line of Business

Requirements

Dev & Test Teams

Code & Test

Operations Team

Business Services

1st Gap 2nd

Gap

Dev

Ops

Addressing Application Lifecycle Management gaps

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IDC on the impact of Cloud on Application Lifecycle

Management

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IT Project and Portfolio Management software moving to the

Cloud

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In Summary…

• Cloud Computing represents a permanent shift in the way IT services are developed and

delivered

• Cloud will be the basis for future enterprise application development, which will be in

“SMAC” style – Social, Mobile, Analytics and Cloud

• Consumer apps will drive Enterprise apps and thus user expectations will change

accordingly, in terms of speed to market, mobile support, availability, etc

• More and more enterprises will turn to SaaS applications vs In House development, adding

new dimensions to IT Governance

• IT Project and Portfolio management will need to adapt to this changing IT landscape

through better tools, quicker development cycles, better integration between development and

delivery

Questions?

rictelford@icloud.com

@rictelford on Twitter