IBM

DEVELOP, NETWORK, PROMOTE & GROW

Cloud Transformation: What are the risks, pitfalls and challenges to be addressed?

Steve Strutt, CTO Cloud Computing, IBM UK & Ireland

IBM

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IBM

Major change in our relationship with IT technology

The starting point The present

IBM

Cloud computing offers a number of “game changing” enablers

Source: IBV Analysis

External Forces

Mobility

Social Media

Big Data

Hyper-Connectivity

Cloud’s Business Enablers

CostFlexibility

BusinessScalability

MarketAdaptability

MaskedComplexity

Context-Driven

Variability

EcosystemConnectivity

Shifts fixed to variable cost

Pay as and when needed

Provides limitless, cost-effective computing capacity to support growth

Faster time to market Supports

experimentation

User defined experiences

Increases relevance

New value nets Potential new

businesses

Expands product sophistication

Simpler for customers/users

Supply Chain Collaboration

Customer life-time

value analysis

Federated Cloud

Services

Social Media Responsiveness

Adopt Streaming

Media

Dynamic Service

Provisioning

IBM

Cloud computing is an IT service delivery approach that often brings a challenging set of decisions which require a structure and framework to address

Service Delivery Framework providing structure to complexity

Strategic Decisions

Considerations

Business Design Service Level Deployment

Characteristics

Outcomes

Economics

Accountability Performance

Security Shared

Location

FlexibilityAvailability

Cloud Computing is an evolving delivery approach

ou

tcom

es

economicsaccountability

availability

security

perfor

man

ce

flexibility

location

Deci

sions

Share

d Multi-tenant

Deployment models

Hybrid

Governance

Migration

Management

Roadmap

Ownership

Planning

Computing

Considerations

Business Design

Service LevelDeployment Characteristics

Cloud

IBM

There are three areas of strategic decisions that need to be considered during transformation

• Aligning business strategy to expected service delivery outcomes while optimizing the economics and risks / rewards of delivery

• What type of availability is required and what are the associated security assurances that are essential while maximizing performance

• Balancing the choices relative to the flexibility of deployment models, shared environments as well as the location of infrastructure and application assets

IBM has developed a Service Delivery Framework aggregating these considerations

Strategic Decisions

Business Design

Service Level

Deployment Characteristics

IBM

Strategic Decisions

Considerations

Business Design Service Levels Deployment

Characteristics

Outcomes

Economics

Accountability Performance

Security Shared

Location

FlexibilityAvailability

During transformation the IBM Service Delivery Framework extends the strategic decisions by further defining the requirements, preferences and optimization.

IBM

Innovation drives Business Design, which in turn, aligns to expected service delivery outcomes, economics and accountability.

Economics

OpEx

CapEx

FixedCost

VariableCost

Balancing the tradeoffs of OpEx with CapEx against the benefits of fixed/predictable contracts to more variable/pay as you go approaches

Accountability

Infrastructure

Middleware

Application

Process

Who M

anages

Managed Services

Aligning levels of support and associated risks and rewards from the management of infrastructure environments to entire processes.

Business Outcomes

Aligning the Business and IT strategy and associated outcomes from optimization to industry disruption

Imp

rove

Tran

sfo

rmC

reat

e

Enhance Extend Invent

Val

ue

Ch

ain

Customer Value Proposition

Optimizers

Disruptors

Innovators

Cloud Enablement Framework

Business Design

IBM

Workloads drive the Service Levels aligning the type of availability required and the associated security assurances that are essential while maximizing performance.

Availability

PackageAvailabilit

y

98.5%

99.9%

99.7%

99.9%

$

$$$

Resilience

Selecting the right availability support for target applications is critical to maximizing the economics of service delivery

Performance

Weeks Hours Minutes

Traditional

Hosted

Cloud

Responsiveness

Dynamic

Static

Balancing the need for rapid provisioning of new applications such as mobile, with the need for more stable, static environments related to traditional applications

Security

Considerations related to security stem from a clear governance process that manages risk associated with data, users and underlying architectures

Secure by Design

Service Enabled

Innovation Powered

Workload Driven

Security Framework

Service Levels

IBM

You need to balance choices relative to the flexibility of Deployment Models, shared environments including location of infrastructure and application assets.

Location

Client Site

Vendor Site

Location of assets are key to aligning requirements to the purchase / control of infrastructure versus leveraging a third party infrastructure with less control but greater scalability

Shared

Dedicated

Enterprise

Shared

Enterprise

More control

Different service delivery models can leverage dedicated environments versus shared environments – trading off control, cost, performance and scalability

Less control

$$$ $

Flexibility

Elasticity

Public Private

Service delivery models can be designed to support highly elastic applications, while allowing for portability across delivery models to maximize utilization and economics

Portability

DeploymentCharacteristics

IBM

Summary

Aligning with business strategy

Workloads drive service levels

Balancing choices

Business Design

Service Level

Deployment Characteristics

Three areas of strategic decisions that need to be considered during transformation