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Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance Crosby — CEO, SoftLayer, an IBM Company October 8, 2013

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Page 1: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

Cloud without compromise: continuous innovation for growthJim Comfort — General Manager, IBM Cloud ServicesLance Crosby — CEO, SoftLayer, an IBM CompanyOctober 8, 2013

Page 2: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

What is driving IT demand in today’s organizations?

Explosion of mobile devices

Infrastructure optimization, i.e. cloud computing

Growth of social media

Advanced predictive analytics

Real-time sensor data

Cyber security

Business Optimization

andBig Data

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Page 3: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Transforming business outcomes requires a new type of system.

Innovatehow individuals engage, make decisions and work

OptimizeIT infrastructure, data and processes

Systems of EngagementKnowledge SharingEngagement ModelsAnywhere, Anytime

Systems of RecordSecure Data

Dynamic InfrastructureOn-demand Self-service Drives Investment

Drives Need

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Page 4: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

IBM has an unique and comprehensive set of cloud capabilities

Think It.Strategize how to use cloud to drive

savings and revenue growth.

Build It.Build and run your private or hybrid

cloud.

Tap into It.Utilize cloud

services delivered from IBM’s SmartCloud

IBM CloudIBM’s end-to-end cloud portfolio

Restless reinventionAnalytics everywhere

A dynamic hybrid cloud strategy

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Page 5: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Business Processas a Service

Enabling business transformation

Business ProcessSolutions Application Application Application Application Application

Softwareas a Service

Marketplace of high value consumable business applications

ExternalEcosystem Industry Collaboration Human

ResourcesBig Data & Analytics Commerce Marketing

Platformas a Service

Composable and integrated application development platform

Development Big Data & Analytics Security Integration Mobile Social Traditional

Workloads

Built using open standards

Smarter Commerce

Smarter Analytics

Smarter Cities

Smarter Workforce

Watson solutions

Software solutions

Middlewaresolutions

Public. Private. Dynamic Hybrid.

Think it. Build it. Tap into it.

Infrastructureas a Service

Enterprise class, optimized infrastructure

Compute Storage Networking

Built using open standardsSOFTLAYERIBM SmartCloud®

Enterprise +

Infrastructure solutions

IBM cloud.

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Page 6: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Web Mobile

Triple Network Architectureseamless communication across distributed environments

APICommon user interface and application programming interface

Infrastructure Management Systemprovides orchestration and automation

Bare MetalServers

Virtual ServerInstances

PrivateClouds

SoftLayer provides access to unique capabilities and new markets.

Gaming and entertainment

Marketing and digital media

Enterprise

Performance

Flexibility

Automation

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Infrastructureas a Service

Enterprise class, optimized infrastructure

Compute Storage Networking

Built using open standards

Page 7: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

IBM Cloud Managed Services delivers the flexible, scalable and resilient infrastructure services essential to enterprises of all sizes.

Essential managed services — choose as many or as few as you need

SAP Applications Oracle Applications SAP HANA

Resilient, managed infrastructure to support production-grademanaged applications.

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Infrastructureas a Service

Enterprise class, optimized infrastructure

Compute Storage Networking

Built using open standardsSOFTLAYERIBM SmartCloudEnterprise +

Infrastructure solutions

Page 8: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Composition environment for new systems of engagement cloud apps

API management for public and private services

Open service ecosystem and marketplace

Connects to systems of record

Platform-as-a-Service

Integration

Business Logic

Data

SDKs

Analytics

Security

API Management

API Marketplace

PaaS enables rapid service composition of new cloud applications that deliver unique business value.

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© 2013 IBM Corporation

IBM PaaS: accelerate developer productivity for specialized domains via an assembly-with-clicks paradigm and minimal coding.

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New things customers can do on SoftLayer Application Patterns - Easily deploy application

patterns, while streamlining DevOps for agile development

JazzHub - Collaboratively develop and manage the lifecycle of mobile and cloud applications natively

UrbanCode - Rapidly deliver software – development, test and production (DevOps)

Platformas a Service

Composable and integrated application development platform

Development Big Data & Analytics Security Integration Mobile Social Traditional

Workloads

Built using open standards

Learn more at www.ibm.com/bluemix

Page 10: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Business Processas a Service

Enabling business transformation

Business ProcessSolutions Application Application Application Application Application

Softwareas a Service

Marketplace of high value consumable business applications

ExternalEcosystem Industry Collaboration Human

ResourcesBig Data & Analytics Commerce Marketing

Platformas a Service

Composable and integrated application development platform

Development Big Data & Analytics Security Integration Mobile Social Traditional

Workloads

Built using open standards

Smarter Commerce

Smarter Analytics

Smarter Cities

Smarter Workforce

Watson solutions

Software solutions

Middlewaresolutions

Think it. Build it. Tap into it.

Infrastructureas a Service

Enterprise class, optimized infrastructure

Compute Storage Networking

Built using open standardsSOFTLAYERIBM SmartCloud®

Enterprise +

Infrastructure solutions

IBM cloud.

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Public. Private. Dynamic Hybrid.

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© 2013 IBM Corporation

SaaS and BPaaS directly serve the needs of the business leader and functional departments.

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General Counsel needs to streamline contract

management processes, and strengthen IP

Chief Marketing Officersmust analyze, understand and engage each customer as an individual across channels

Chief Procurement Officersneed to strategically manage spend, contracts and supplier ecosystems

Chief Financial Officersneed to make more analytical, risk-

aware decisions supporting revenue, expenses, and other KPIs

Chief Human Resource Officers need to find, analyze, source, acquire and retain the best talent worldwide

VPs of Sales must drive omni-channel B2C sales that integrate across mobile, social, and on-site locations

Heads of Customer Care need to build unique service and retention techniques via personalized engagements

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© 2013 IBM Corporation

High value applications: delivered at scale and helping our clients transform their businesses today.

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120 million candidate records on the Kenexa talent management platform…

180 Million transportation management transactions annually

300,000 global trading entities connected for

IBM clients

5.5 million daily transactions exchanged

via IBM B2B cloud

60,000 users of IBM digital marketing tools send 130

million monthly emailse

x

…accessed daily by 80,000 candidates and more than one million hiring managers

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© 2013 IBM Corporation

Workload definition, optimization and orchestration

Software-defined compute Software-defined storage Software-defined networking

Resource abstraction and optimization

data store mobile devopsmiddleware services

Traditional workloads

Services and composition patterns API and integration services

security

External ecosystem

MarketplaceAPI

services

API

analytics

API

commerce

API

collaboration

API

location

API

data

APIAPI

SolutionsApp

As more organizations adopt an open cloud architecture, the architecture becomes more defined and robust.

Infrastructureas a ServiceSoftware defined

Platformas a ServiceCloud operating environment

Softwareas a ServiceAPI economy

Plus hardware

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© 2013 IBM Corporation

Economics

Defined by softwareDesigned for big data

IBM SmartCloud:

Clients are acting now:

Speed Empowerment

Business transformation takes place when cloud is used as the foundation for enhanced mobile, social and analytics capabilities.

Think it Build it Tap into it

IBM is responding:

IBM experts strategize how to use cloud to drive not just savings, but revenue and growth

IBM Cloud technologies and services are designed to build and run private or hybrid cloud and new cloud apps that foster deeper insights and analytics

IBM SmartCloud quickly taps into analytics and SaaS business applications — and runs business in the cloud

Open and collaborative

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© 2013 IBM Corporation

SoftLayer

Page 16: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

Global Cloud Leader

Formed by ten industry veterans in 2005Model predicated on software-driven infrastructureUnencumbered by early-industry legacy restrictions

Founding principlesInnovation, Empowerment, Automation, Integration

Acquired by IBM in July 201315

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A working definition

Cloud (n) On-demand compute with consumptive billing

• On-demandRapidly provisioned services

• ComputeServers, network, storage, firewalls, ancillary services

• Consumptive billingTurns traditional fixed IT costs into variable – monthly or hourly

• Initial model – virtualized multi-tenancy computing – does not meet requirements for 100% of applications and use cases

• For broadest applicability, user-selectable levels of performance, security and isolation are required

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Cloud helps match business needs & IT resources

Page 19: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

Global Cloud Platform

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• Only infrastructure solution with a common management interface and API across a unified architecture

• Customers mix and match bare metal servers, virtual server instances and turnkey private clouds and manage them from a single control pane or API

• All deployed on-demand and provisioned automatically in real-time

Unified architecture enabled by powerful software

Page 20: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

Global footprint

• 13 data centers• 17 network PoPs• 100,000 devices• 22,000,000 domains• 21,000 customers

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Unparalleled Flexibility & Power

• Highly flexible architecture• One integrated platform for public

cloud servers, private clouds, bare metal servers

• Unified systems management & API• Technology-neutral platform• Support for broad range of operating

systems, virtualization platforms• Build hybrid, distributed, high-

performance architectures and manage from a single pane of glass

• Pay by the hour or the month for a truly variable IT operations model 20

One platform, myriad solutions to serve a broad range of customer requirements for performance, isolation

Server

Bare Metal

Private Clouds

Virtual Servers

Public Clouds

Hybrid Clouds

?

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• High-performance public network with transit from multiple tier-1 carriers• Secure OOB management via VPN• Private network for intra-application and inter-facility communications,

access to shared services• Native IPv6 support• Virtual racks for integrated management• Complete suite of network services

Triple-network architecture

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Page 23: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

How It All Fits Together

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Data Center & Pods• Standardized, modular hardware configs

• Lower inventory carrying costs• Maximize asset utilization & profitability• Increase provisioning flexibility• Simplify capacity management

• Globally consistent service portfolio

Triple Network• Proprietary network architecture• Pod design allows customers grow to across multiple

racks or rows in the same layer 2/3 domain as needed.

SoftLayer Infrastructure Management System• Bare metal & virtual server provisioning• Integrated BSS/OSS• Comprehensive network management

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Robust, full-featured API• Improves customer control, reduces error, increases flexibility

• SoftLayer API provides 1,600 function calls to over 200 services

• Supports REST, SOAP & XML-RPC interfaces

• Enables full auto-scaling implementations

• Comprehensive documentation, libraries and support

Functions include:• Automatic server deployment• Service provisioning• Reboots & reloads• Ticketing• Hardware configuration• Software load• DNS• Network• Storage• Security scans • Monitoring

Page 25: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

Service portfolio

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Page 26: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

21,000 leading-edge customers

Social

Software as a Service Mobile & Communications

Marketing and Digital Media

EnterpriseHosting & Service Providers

Games and Entertainment

Platform as a Service

Bump Voxer Instapaper Yelp

2525

Page 27: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Business Processas a Service

Enabling business transformation

Business ProcessSolutions Application Application Application Application Application

Softwareas a Service

Marketplace of high value consumable business applications

ExternalEcosystem Industry Collaboration Human

ResourcesBig Data & Analytics Commerce Marketing

Platformas a Service

Composable and integrated application development platform

Development Big Data & Analytics Security Integration Mobile Social Traditional

Workloads

Built using open standards

Smarter Commerce

Smarter Analytics

Smarter Cities

Smarter Workforce

Watson solutions

Software solutions

Middlewaresolutions

Public. Private. Dynamic Hybrid.

Think it. Build it. Tap into it.

Infrastructureas a Service

Enterprise class, optimized infrastructure

Compute Storage Networking

Built using open standardsSOFTLAYERIBM SmartCloud®

Enterprise +

Infrastructure solutions

IBM cloud.

26

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© 2013 IBM Corporation

A comprehensive view

Page 29: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

How to move strategically.

Restless reinvention:Keep in mind it is not about the technology alone; it is about a company culture ready to innovate with cloud

1.Analytics everywhere:Ensure your cloud strategy is also the ultimate analytics strategy

2.A dynamic hybrid cloud strategy:Strategically mix clouds to deliver the business outcome

3.

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© 2013 IBM Corporation29

Page 31: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Legal disclaimer

© IBM Corporation 2013. All rights reserved. IBM, the IBM logo, ibm.com and IBM SmartCloud are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. SoftLayer is a

trademark of SoftLayer Technologies, Inc., an IBM company. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.

Other company, product, or service names may be trademarks or service marks of others. The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the

information contained in this publication, it is provided AS IS without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.

References in this presentation to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in this presentation may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. Nothing contained in these materials is intended to, nor shall have the effect of, stating or implying that any activities undertaken by you will result in any specific sales, revenue growth or other results.

Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user's job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer.

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© 2013 IBM Corporation

Driving business transformation

Page 33: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Cloud in action: DrivewyzeEliminates costly IT infrastructure with an IBM SmartCloud solution

The need: Drivewyze needed a cost-effective, managed infrastructure that could scale to meet a rapid increase in customer demand.

The solution:The IBM SmartCloud Enterprise+ solution provides a flexible, fully managed environment that reduces administrative workload and enables IT resources to focus on core applications.

Benefits: Increases customer satisfaction

with near-real-time scaling tomore swiftly meet growth-in-market demand Reins in IT costs with a fully managed model that

eliminates the need to acquire up to six IT resources for support Capitalizes on a security-rich,

highly available IBM architecture that establishes credibility with risk-averse customers

“Choosing to partner with IBM was a fairly easy decision and the advantages of leveraging IBM resources to help manage our infrastructure was a big deciding factor.”

Brian Mofford, vice president, Drivewyze

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© 2013 IBM Corporation

Cloud in action: TP VisionReducing costs by 40 percent with an IBM SmartCloud solution

The need:As TP Vision grew, it was challenged to scale its traditional hardware infrastructure to meet customer demands efficiently and cost effectively.

The solution:TP Vision moved its Smart TV solution’s development, testing and hosting operations from a traditional hardware architecture to an IBM SmartCloud Enterprise+ environment.

Benefits: Reduces operating costs with

a usage-based pricing model, translating into around a 40% decrease in cost per TV

Increases customer satisfaction with near real time scaling to meet demand as well as cyclical and unplanned spikes in usage

Eliminates the need to acquire and set up hardware, reducing provisioning time from up to two months to minutes

“TP Vision was looking for a solution that would allow us to support growing customer demand, and IBM was the partner to do that with. The IBM SmartCloud infrastructure fits perfectly with our vision.”

Remco Meeuwesen, director operations, Smart TV

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© 2013 IBM Corporation

Back up

Page 36: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

more companies will use the cloud for significant innovations by 2015.1

1 IBM, The power of cloud: Driving business model innovation, February 2012.2 IBM Center for Applied Insights, Global Cloud Enterprise Study, 2013.

2X

Higher gross profit for enterprises that are more aggressively adopting cloud computing for competitive advantage.22.4X

Cloud is inspiring leaders to change the way they approach their organizations — and to transform and innovate the way business works.

As cloud becomes the go-to delivery method for organizations, it has also become a growth engine for business.

*35

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© 2013 IBM Corporation

IBM cloud is your growth engine for a Smarter Enterprise.

Think It.• 37,000 experts with

deep industry knowledge

• $6+ billion in cloud-related acquisitions since 2007

• 80% of Fortune 100 companies use IBM cloud capabilities

Build It.• #1 in EMA Radar for

private cloud platforms

• #1 in annual world-wide server revenue

• OpenStack founder

• 50% reduction in IBM’s IT labor cost with Dev/ Test Cloud

Tap into It.• More than 21,000

SoftLayer clients in 140 countries

• SoftLayer is up to 10X faster than other cloud providers

• More than 100 cloud SaaS solutions

IBM CloudIBM’s end-to-end cloud portfolio

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© 2013 IBM Corporation

IBM PaaS: accelerate developer productivity for specialized domains via an assembly-with-clicks paradigm and minimal coding.

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Increased business agility and speed

Reduced cost of application development

Based on open standards

Integrated DevOps

IBM PaaS Platform

Page 39: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

Bringing together IBM’s capabilities with Business Partners, ISVs and open source provides a rich ecosystem for application development.

IBM capabilities

Open source

Built on OPEN Cloud Foundry standards

Business Partners

ISVs

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© 2013 IBM Corporation

Delivering the most flexible cloud solutions for building, integrating and securing cloud applications.

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On premise Mobile Cloud

New things customers can do on SoftLayer Application Patterns - Easily deploy application patterns, while

streamlining DevOps for agile development JazzHub - Collaboratively develop and manage the lifecycle of

mobile and cloud applications natively

UrbanCode - Rapidly deliver software – development, test and production (DevOps)

New rapid, on-premise PaaS deployments PureApp System Power- Low-cost entry point for ready-to-go

private cloud for GMU and departmental deployments

Power Systems Solution Edition for Service Providers - Rapid GTM, pre-configured cloud solution with OpenStack support

Platformas a Service

Composable and integrated application development platform

Development Big Data & Analytics Security Integration Mobile Social Traditional

Workloads

Built using open standards

Page 41: Cloud without compromise: continuous innovation for growth · Cloud without compromise: continuous innovation for growth Jim Comfort — General Manager, IBM Cloud Services Lance

© 2013 IBM Corporation

New cloud services that empower the individual with analytics and mobility.

Social Learning platformKenexa Mobile Feedback AppKenexa Survey AnalyticsXtify – Mobile Customer EngagementWatson Engagement AdvisorSocial Media AnalyticsCognos TM1 (SaaS version on SoftLayer)SmartCloud for Social Business

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Softwareas a Service

Marketplace of high value consumable business applications

ExternalEcosystem Industry Collaboration Human

ResourcesBig Data & Analytics Commerce Marketing