© 2010 IBM Corporation
Cloud
© 2010 BM Corporation2
Agenda
What is Cloud?1
What is the Benefit to Business?2
How Can it be Used?3
How Can IBM Help?4
Next Steps? 5
© 2010 BM Corporation3
There is 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
© 2010 BM Corporation4 Cloud Computing - Strategic View IBM Confidential4
A user experience & business model• Standardized, self service offerings• Rapidly provisioned services• Flexibly priced
Cloud computing is the provision of dynamically scalable and often virtualised resources as a service over the internet (public cloud) or
intranet (private cloud).
Cloud computing is the provision of dynamically scalable and often virtualised resources as a service over the internet (public cloud) or
intranet (private cloud).
An infrastructure management and services delivery method
• Virtualized resources• Managed as a single large resource• Delivered services with elastic scaling
Business PerspectiveBusiness Perspective IT PerspectiveIT Perspective
© 2010 BM Corporation5
Cloud is driving business innovation with convergence of available technologies Convergence of available technologies, a demanding marketplace and a shift in societal expectations
An Example from the Banking Industry…
© 2010 BM Corporation6
Agenda
What is Cloud?1
What is the Benefit to Business?2
How Can it be Used?3
How Can IBM Help?4
Next Steps? 5
© 2010 BM Corporation7
Cloud Computing provides benefits across the enterprise
IT Analysts
Financial Analysts
IT Customers
End Users
Common Attributes of CloudsEnhanced user experience
Elastic scaling Automated provisioning
Highly virtualized
Source: IBM Corporate Strategy analysis of MI, PR, AR and VCG compilations
Anywhere access to applications through a simplified user interface
Rapid time to market for new services.
Anywhere access to applications through a simplified user interface
Ability to elastically scale resources and maintain
high quality of service
Ability to elastically scale resources at significantly lower
incremental management cost
© 2010 BM Corporation8
Why the C-Suite is interested in Cloud Computing
Cloud Computing is a key catalyst
for these changes
• Flexible, adaptable, extendable systems
• Reliability
• User adoption & empowerment
CIO
• Improved growth & profitability
• Governance, risk & compliance
• Transparency, visibility & control
CFO
• Faster, broader, more uncertain change
• Innovation for competitive advantage
• Strategic alignment
CEOCEO
The ability to adapt a business model to meet new expectations and capture new short lived revenue streams, requires highly flexible core processes and IT infrastructure that can turn on a dime –
© 2010 BM Corporation9
Accelerate innovation projects that can lead to new revenue Make IT an enabler of, not a barrier to rapid innovation
Provide an effective and creative service delivery modelDeliver services in a less costly and higher quality business model, while providing service access ubiquity
Create a sustainable competitive differentiationRapidly deploy applications over the internet and leverage new technologies to deliver services when, where and how your clients want them-before your competitors do.
Lower IT barriers to launch new business servicesBuild and integrate modular services –in record time- by leveraging “rentable” IT services capabilities, pay only for what you use.
Resulting in Business and IT aligned benefits
© 2010 BM Corporation10
Cloud computing drives exponential improvements across IT and the Business
10
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Cloud attributes From
Server/storage virtualization
10–20%
Utilization of infrastructure
10–20%
Self-service None
Automated provisioning Months
Change and release management
Months
Service catalog ordering Months
Metering/billingFixed cost model
Payback period for new services
Years
Legacy environments Cloud-enabled enterprise
Cloud accelerates business value across a wide variety of domains
To
70–90%
70–90%
Unlimited
Days/hours
Minutes
Days/hours
Granular
Months
© 2010 BM Corporation11 11
Private Test Cloud ROI AnalysisExample International Financial Institution
Saving by Category1st Year After Cloud Transformation
Hardware Cost12%
Software Cost 3%
Sys. Admin. Cost30%
ProvisioningCost 38%
Testing Process
Overhead17%
Cost StructureWith and Without Cloud Transformation
Without
With
Current Year 1 Year 2 Year 3
Co
st
$M
illi
on
$0
$9
© 2010 BM Corporation12
Agenda
What is Cloud?1
What is the Benefit to Business?2
How Can it be Used?3
How Can IBM Help?4
Next Steps? 5
© 2010 BM Corporation13
Some workloads are currently ready to be delivered in a cloud model
Desktops
Test and development
Complex transaction processing
Proprietary applications
Backup and restore
Collaboration and e-mail
Highly sensitive data
Currently Moving To Cloud Model Not Yet Moving To Cloud Model
© 2010 BM Corporation14
Enterprise
Today there are three primary delivery models that companies are implementing for cloud
Public Cloud
IT activities/functions are provided “as a service,” over the Internet Key features:
– Scalability– Automatic/rapid provisioning– Standardized offerings– Consumption-based pricing.– Multi-tenancy– Capital Preservation
Traditional Enterprise
IT
Private Cloud
IT activities/functions are provided “as a service,” over an intranet, within the enterprise and behind the firewall Key features include:
– Scalability– Automatic/rapid provisioning– Chargeback ability– Widespread virtualization
Hybrid Cloud
Internal and external service delivery
methods are integrated, with activities/functions allocated to based on security requirements, criticality, architecture and other established
policies.
Private CloudPublic Clouds
Hybrid Cloud
Source: IBM Market Insights, Cloud Computing Research, July 2009.
© 2010 BM Corporation15
Which workloads offer the most favorable entry points for each of the cloud delivery models?
Top private workloads Data mining, text mining, analytics
Security
Data warehouses or data marts
Business continuity, disaster recovery
Test environment infrastructure
Long-term data archiving/preservation
Transactional databases
Industry-specific applications
ERP applications
Top public workloads
Audio/video/Web conferencing
Service help desk
Infrastructure for training and demos
WAN capacity and VoIP
Desktop
Test environment infrastructure
Storage
Data center network capacity
Server
Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090
Workloads will need to be determined based on value and feasibility
Analytics Collaboration Development and Test
Desktop and Devices
InfrastructureCompute
InfrastructureStorage
© 2010 BM Corporation16
Agenda
What is Cloud?1
What is the Benefit to Business?2
How Can it be Used?3
How Can IBM Help?4
Next steps 5
© 2010 BM Corporation17
Delivering Cloud Computing to our Clients
EnterpriseData Center
Cloud
Hardware
Software
Services
Smart Business Servicescloud services delivered
Smart Business Systems
purpose-built infrastructure
Standardised services on the IBM cloud
Private cloud services behind your firewall,
built and/or run by IBM
Pre-integrated hardware, software
and service offerings
IBM has 3 choices to deploy the workloads that matter to our clients for greater efficiency, productivity, and control
Private Cloud
© 2010 BM Corporation18
IBM Cloud Offerings
Smart Business on the IBM cloud
IBM Smart Business Services
IBM Smart Business Systems
Standardized services on the IBM cloud
Pre-integrated, workload-optimized
systems
Private cloud services, behind your firewall,
built and/or managed by IBM
IBM Lotus Live
IBM Lotus® iNotes®
IBM CloudBurst™
family
IBM Smart Business Development and Test Cloud
IBM Smart Business Desktop Cloud
IBM Smart Business Storage Cloud
Analytics Collaboration Development and test
Desktop and devices
Infrastructurestorage
IBM Smart Analytics System
Smart business for small or midsize business (backed by the IBM cloud)
Infrastructurecompute
IBM Computing on Demand
IBM Information Protection Services
Business services
BPM BlueWorks (design tools)
IBM Smart Analytics Cloud
Smart business expense reporting on the IBM cloud
IBM Information Archive
IBM Smart Business Development and Test on the IBM Cloud
IBM CloudBurst™ family
IBM Smart Business Development and Test Cloud
IBM Smart business end user support – self enablement portal
Smart Business Desktop on the IBM Cloud
© 2010 BM Corporation19
Develop cloud strategy and roadmap
Assess cloud deployment models, service options and workloads
ROI Analysis
Choose initial project
How we help our Clients get started with cloud computing
Start with an isolated pilot cloud deployment
Architect and implement low-risk workloads such as test and development for cloud
Standardize applications and systems
Deploy self-service portal
Roll out cloud across the enterprise
Enable additional workloads on private cloud
Add new users
Use trusted public cloud services to supplement business and IT workloads
Pilot and Deploy
Extend and Evolve
Plan and Prepare
Condition existing infrastructure for cloud
• Virtualize and automate existing systems
• Add service management, service catalog
© 2010 BM Corporation20
Business Value
The journey to cloud needs Flexible, Efficient, Automated Infrastructure
ConsolidateConsolidate ConsolidateConsolidate VirtualizeVirtualize VirtualizeVirtualizeCentralizeCentralizeCentralizeCentralize AutomateAutomateAutomateAutomate OptimizeOptimizeOptimizeOptimize
> > > =Organization Culture Governance
….requires an integrated and orchestrated approach.
© 2010 BM Corporation21
IBM can help enable your journey to Cloud Computing
Integrated service lifecycle mgmt.
Expose resources “as-a-Service”.
Integrated Security infrastructure.
Rapid provisioning of IT resources, massive scaling.
Dynamic service mgmt. Energy saving via auto
workload distribution.
Rapid deployment of infrastructure and applications.
Request-driven service management.
Service Catalog.
Virtualization. Better hardware
utilization. Improved IT agility.
Server Consolidation. Streamline Operations – manage
physical and virtual systems. Lower power consumption.
© 2010 BM Corporation22
Agenda
What is Cloud?1
What is the Benefit for Business?2
How Can it be Used?3
How Can IBM help?4
Next Steps5
© 2010 BM Corporation23
Moving forward
Where does Cloud Computing fit in your organization?
What are the key projects you have underway or are planning to launch?
What are your plans to evaluate/implement clouds?
How can IBM help you to proceed?
© 2010 BM Corporation24
Thank you!
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