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Cloud Computing - What's all the hype? Bruce E. Otte IBM Cloud Computing Marketing
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Cloud Computing - What's all the hype?

Nov 01, 2014

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Page 1: Cloud Computing - What's all the hype?

Cloud Computing - What's all the hype?

Bruce E. OtteIBM Cloud Computing Marketing

Page 2: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 2

The world is getting smarter – more instrumented, interconnected, intelligent.

Smart traffic systems

Smart water management

Smart energy grids

Smart healthcare

Smart food systems

Intelligent oil field technologies

Smart regions

Smart weather

Smart countries

Smart supply chains

Smart cities

Smart retail

Page 3: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 3

2005 2006 2007 2008 2009 2010 20110

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Exa

byt

es RFID,Digital TV,

MP3 players,Digital cameras,

Camera phones, VoIP,Medical imaging, Laptops,

smart meters, multi-player games,Satellite images, GPS, ATMs, Scanners,

Sensors, Digital radio, DLP theaters, Telematics,Peer-to-peer, Email, Instant messaging, Videoconferencing,

CAD/CAM, Toys, Industrial machines, Security systems, Appliances

10xgrowth infive years

Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion.

Page 4: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 4

Steady CAPEX spend

Global Annual Server Spending (IDC)

Source: IBM Corporate Strategy analysis of IDC data

Uncontrolled management and energy costs

To make progress, delivery organizations must address the server, storage and network operating cost problem, not just CAPEX

$0B

50

100

150

200

250

300

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

New system spend Management and admin costsPower and cooling costs

A crisis of complexity. The need for progress is clear.

Page 5: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 5

CEOs want to make their businesses smarter

48% say people skills have the greatest impact to their organization

Technology has greatest impact on the business (35%) after market forces and people skills

71% plan to focus on collaboration and partnerships69% are making extensive

changes to business models and processes

75% say they can strengthen their competitive advantage by better managing and using information

Source: 2009 IBM CEO Survey

Turn Information into Insights Drive Effectiveness

and Efficiency

Increase Agility

Connect & Empower People

Page 6: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 6

CIOs’ visions of enhancing competitiveness include business oriented elements

Six Most Important Visionary Plan Elements

Source: IBM Global CIO Study 2009; n = 2345

High growth

markets

Low growthmarkets

Interviewed CIOs could select as many as they wanted

63%

64%

66%

70%

76%

80%

71%

73%

71%

73%

77%

86%

Self-Service Portals

Customer and Partner Collaboration

Mobility Solutions

Risk Management and Compliance

Virtualization

Business Intelligence and Analytics

Page 7: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 7

Yet, implementation challenges impede implementing a more flexible infrastructure:

How do I address the immediate pressure to cut costs, reduce risk and complexity?

A lot of buzz on cloud, where is the best place to start and how?

My workloads are becoming more complex, how do I make the right choice relative to the

deployment environment? How do I innovate to take advantage of new opportunities?

Page 8: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 8

Centralized Computing: 1960s - Optimized for sharing, industrial strength, systems management, . . . Managed by central IT organization Back office applications involving transactions, shared data bases, . . .Mainframes, supercomputers, minicomputers, . . .

Client-Server: 1980s - Optimized for low costs, simplicity, flexibility, . . . .Distributed management across multiple departments and organizationsLarge numbers of PC based applicationsPC-based clients and servers, Unix, Linux, . . . .

Cloud: 2000s - Optimized for massive scalability, distribution of services, . . . .Managed by central IT organization, hybrid acquisition models Supports huge numbers of mobile devices and sensorsInternet-based architecture

The Emergence of a New Model of Computing

Page 9: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 9

An example of the 3 waves in action – Convergence of available technologies and a demanding marketplace

Branch BankingBack-office automation and secure data processing

ATM

Secure online transaction processing with distributed computing

e-business

Connect existing IT infrastructure with the Web

Cloud

An open, standards-based, dynamic infrastructure

1960s 1970s 1990s 2010

Page 10: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 10

Cloud Computing is a Significant Opportunity

Many CIOs understand that cloud will transform the way companies operate

An IBM global CIO study in 2009 surveyed 2,598 CIOs in 78 countries and 19 industries

More than one-third cited cloud as the most important visionary initiative

With an IT strategy that embraces cloud, CIOs can better satisfy their customers

Improves visibility of IT within the enterprise IT is more responsive to the business areas with simpler and cheaper

computing model Increases range of services, applications and capabilities available to clients

Source: IBM Global CIO Study 2009; n = 2598

Page 11: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 11

“Cloud” is a new consumption and delivery model inspired by consumer Internet services.

Cloud enables: Self-service Sourcing options Economies-of-scale

“Cloud” represents: The Industrialization of Delivery for IT

supported Services

Multiple Types of Clouds will co-exist: Private, Public and Hybrid Workload and / or Programming Model

Specific

Cloud: Consumption & Delivery Models Optimized by Workload

Cloud Services

Cloud Computing Model

Page 12: Cloud Computing - What's all the hype?

© 2009 IBM Corporation 12

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

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.

Page 13: Cloud Computing - What's all the hype?

© 2009 IBM Corporation13

Is cloud computing really new? Yes, and no.

Cloud computing is a new consumption and delivery model inspired by consumer Internet services. Cloud computing exhibits the following 5 key characteristics:

•On-demand self-service •Ubiquitous network access•Location independent resource pooling•Rapid elasticity•Pay per use

While the technology is not new, the end user focus of self-service, self-management leveraging these technologies is new..

Virtualization ServiceAutomation & SOA

UsageTracking Web 2.0

End User Focused

Page 14: Cloud Computing - What's all the hype?

© 2009 IBM Corporation14

Cost savings and faster time to value are the leading reasons why companies consider cloud

Respondents could rate multiple drivers items

50%

72%

77%

Improve reliability

Faster time to value

Reduce costs

Improve system availability

Pay only for what we use Hardware savings

Software licenses savings Lower labor and IT

support costs Lower outside maintenance costs

Take advantage of latest functionality

Simplify updating/upgrading Speed deployment

Scale IT resources to meet needs

Improve system reliability

To what degree would each of these factors induce you to acquire public cloud services?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Page 15: Cloud Computing - What's all the hype?

© 2009 IBM Corporation15

Virtualized environments only get benefits of scale if they

are highly utilized

Drives lower capital requirements

More complexity = less automation possible =

people needed

Take repeatable tasks and automateL

abo

r L

ever

age

Infr

astr

uct

ure

L

ever

age

Clients who can “serve themselves” require less support and get services

Infrastructure, Labor, and Re-Engineering IT Business and Delivery Processes Drive Cloud Economics

Self Service

Automation of Management

Standardization of Workloads

Virtualization of Hardware

Utilization of Infrastructure

Page 16: Cloud Computing - What's all the hype?

© 2009 IBM Corporation16

Six Steps to Getting Started with Cloud Computing

IT Roadmap Workload Assessment

Enterprise & Cloud Mix Implementation

Systems Storage

Network

ComputingInfrastructure

Platform & Applications

EmailBus

Apps

BPMSys

Mgmt

Info Mgmt

Web Svr

E-Mail, Collaboration

SoftwareDevelopment

Test and Pre-Production

DataIntensive

Processing

Database ERP

Enterprise

Private Public

Hybrid

Trad

IT

Capital

Private Cloud

Hybrid Cloud

Tim

e

TradIT

RentFinancial

Wo

rklo

adC

ust

om

Sta

nd

ard

ROI

1Architecture

Service Definition

Tools

Service Publishing

Tools

ServiceFulfillment &Config Tools

ServiceReporting &

Analytics

ServicePlanning

RoleBasedAccess

OSS

BSS

Infrastructure

Platform

Software

End Users,

Operators

ServiceCatalog

OperationalConsole

Cloud Services

Cloud Platform

2 3

4 5 6

Page 17: Cloud Computing - What's all the hype?

© 2009 IBM Corporation17

Create a Roadmap for Cloud as Part of the Existing IT Optimization Strategy

Simplified

Shared

Dynamic

Consolidate

Virtualize

Automate

Reduce infrastructure complexity

Reduce staffing requirements

Improve business resilience (manage fewer things better)

Improve operational costs/reduce total cost of ownership

Remove physical resource boundaries

Increase hardware utilization

Allocate less than physical boundary

Reduce hardware costs

Simplify deployments

Standardize services Dramatically reduce

deployment cycles Gain granular service

metering and billing Obtain massive

scalability Autonomic Acquire flexible

delivery, enabling new processes and services

1 IT Roadmap

Page 18: Cloud Computing - What's all the hype?

© 2009 IBM Corporation18

An Architectural Model that includes standards-based Interfaces is key

ServiceCreation & Deployment

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceFulfillment &Configuration

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess

Operational Support Systems (OSS)

Business Support Systems (BSS)

Infrastructure Services

Software Platform Services

Application, Process and Information Services

End Users,Operators

ServiceCatalog

OperationalConsole

Standards Based Interfaces

Standards Based Interfaces

Standards Based Interfaces

Cloud Services

Cloud Platform

2 Architecture

Page 19: Cloud Computing - What's all the hype?

© 2009 IBM Corporation19

Ser

vice

D

eliv

ery

P

orta

l

BSS – Business Support Services

OSS – Operational Support Services

Reporting & AnalyticsMetering

Ser

vice

D

eve

lop

me

nt

Po

rta

l

Common Cloud Management Platform

Security & Resiliency

Cloud Service

Offerings

Service Provider Portal

Service Business Manager Service Operations Manager

AP

I

Use

r In

terf

ace

AP

I

The Common Cloud Platform

Virtualized Infrastructure – Server, Storage, Network

“Common Cloud Service Platform - PaaS”

Unified service management driving delivery economics

•Emerging and existing programming models•Hybrid Environments

Loosely Coupled Workloads

Analytics Workloads

Storage/Data Integration Workloads

Transactional Workloads

PaaS Tooling – Integrated Developer and Administrator Tools,

BSS plugin - PaaS specifc user roles OSS plugin - Service Templates, Management Plans

2 Architecture

Page 20: Cloud Computing - What's all the hype?

© 2009 IBM Corporation

Operational and Business Support Services 2 Architecture

Page 21: Cloud Computing - What's all the hype?

© 2009 IBM Corporation21

Cloud Standards

Cloud platforms are diverse; open standards are critical

The Open Cloud Manifesto outlines standards principles:

– Existing standards should be reused– All standards efforts should be based on

customer requirements– Standards development efforts should stay

coordinated

21

IBM has initiated a community-based effort to collect customer requirements

– First draft completed 8/2009– Broad industry participation/interest (over 800 participants with 30+ contributors)

IBM is working with standards organizations to drive new standards – Virtualization – Security– Common interfaces (to ensure flexibility in moving applications and data)– Management

Standards TaxonomyTypes of standards

SaaS PaaS IaaS

Enterprise

Across Vendors within a cloud

Cross - Cloud

Within an Enterprise

Cloud to Enterprise

2 Architecture

Page 22: Cloud Computing - What's all the hype?

© 2009 IBM Corporation22

Client Migration will be Workload Driven

Workload characteristics determine standardization

– For example, transaction and information management processes may present challenges and risks

– Other workloads, such as collaboration and development and test, will move faster and can provide rapid return-on-investment and productivity gains.

For most enterprises, the best opportunities will be clear

Web infrastructure applications Collaborative infrastructure Development and test High Performance Computing

Test for Standardization Examine for Risk Database Transaction processing ERP workloads Highly regulated workloads

High volume, low cost analytics Collaborative Business Networks Industry scale “smart” applications

Explore New Workloads

3 Workload

Page 23: Cloud Computing - What's all the hype?

© 2009 IBM Corporation23

Push factors

Fluctuating demand

Highly standardized applications

Modular, independent applications

Unacceptably high costs

Higher propensity for cloud

Lower propensity for cloud

Barriers

Data privacy or regulatory and

compliance issues

High level of Internal control required

Accessibility and reliability are a concern

Cost is not a concern

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Workload Characteristics for Cloud Delivery 3 Workload

Page 24: Cloud Computing - What's all the hype?

© 2009 IBM Corporation24

Clients told us their implementation strategies — public or private Cloud, present or future — for 25 specific workloads

Analytics Data mining, text mining, or other

analytics Data warehouses or data marts Transactional databases

Business Services CRM or Sales Force Automation e-mail ERP applications Industry-specific applications

Collaboration Audio/video/web conferencing Unified communications VoIP infrastructure

Desktop and devices Desktop Service/help desk

Development and test Development environment Test environment

Infrastructure Application servers Application streaming Business continuity/disaster recovery Data archiving Data backup Data center network capacity Security Servers Storage Training infrastructure WAN capacity

BusinessServices

Collaboration

Analytics

Desktop and Devices

Infrastructure

Development and Test

Source: IBM Market Insights, Cloud Computing Research, July 2009.

Page 25: Cloud Computing - What's all the hype?

© 2009 IBM Corporation2525 Cloud Computing25 Cloud Computing 04/08/23

Fixed

Traditional IT

Managed Operations

PublicCloudServices

Private Cloud Services

Financial Models

Del

ive

ry M

od

els

Off Premises

Shared

Variable

Off Premises Dedicated

On Premises Utility

Mixed

On Premises

Public and Private CloudsDecide the Right Mix for the Enterprise

Proprietary

Software ImagesStandardMixed

Shared Services

4 Enterprise / Cloud Mix

Examples

Page 26: Cloud Computing - What's all the hype?

© 2009 IBM Corporation26

Public and Private Clouds are Preferred for Different Workloads

Top private workloads

Database- and application-oriented workloads emerge as most appropriate

Data mining, text mining, or other analytics

Security Data warehouses or data marts Business continuity and disaster

recovery Test environment infrastructure Long-term data archiving/preservation Transactional databases Industry-specific applications ERP applications

Top public workloads

Infrastructure workloads emerge as most appropriate

Audio/video/Web conferencing Service help desk Infrastructure for training and demonstration WAN capacity, VOIP Infrastructure Desktop Test environment infrastructure Storage Data center network capacity Server

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

4 Enterprise / Cloud Mix

Page 27: Cloud Computing - What's all the hype?

© 2009 IBM Corporation27

Clients interviewed significantly prefer private clouds over public or hybrid clouds

Overall, how appealing are the public, private and hybrid delivery models for your company?

64%

30%Public+113%

64%

38%Hybrid

Private

+68%

Private"Very appealing" or

"appealing"

"Very appealing" or "appealing"

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

However, adoption of Public Clouds is expected to grow by 26% CAGR between now and 2013*

*IDC eXchange, IDC’s New IT Cloud Services Forecast: 2009-2013, p=543, Oct 5, 2009

4 Enterprise / Cloud Mix

Page 28: Cloud Computing - What's all the hype?

© 2009 IBM Corporation28

Cloud Computing can Provide Dramatic, Measurable Business Value

VIR

TU

AL

IZA

TIO

N

AU

TO

MA

TIO

N

ST

AN

DA

RD

IZA

TIO

N

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

5 ROI

Page 29: Cloud Computing - What's all the hype?

© 2009 IBM Corporation29

What to Measure and Why is Key…

Reduce

CostsIncrease

SpeedAccelerate

Growth

Analytics Collaboration

Development & Test

Desktop & Devices

InfrastructureStorageInfrastructure

Compute

Business Services

Serve new customers faster

Better understand customer needs

Optimize business processes Improve

business performance

Address new customers and markets

Improve workforce productivity

Improve customer satisfaction

Foster innovation

Response to change faster

Reduce operating expenses

Reduce infrastructure costs

Grow revenue

Improve

Reliability

5 ROI

Page 30: Cloud Computing - What's all the hype?

© 2009 IBM Corporation30

Automate

Reduce infrastructure complexity

Reduce staffing requirements

Improve business resilience (manage fewer things better)

Improve operational costs/reduce TCO

Easy to access, easy to use Service Catalog

Dramatically reduce deployment cycles

Granular service metering and billing

Drive standardization

Remove physical resource boundaries

Increased hardware utilization

Allocate less than physical boundary

Reduce hardware costs

Simplify deployments

Server consolidation Storage consolidation Consolidation efficiency study

VMware server virtualization Microsoft server virtualization storage virtualization PowerVM implementation

Roadmap to a Private Cloud Implementation

ConsolidateSimplify

Virtualize Cloud Platform Stack

Infrastructure as a Service

Information Management Services

Internet Data CenterService Provisioning

Service Oriented

Massively Scalable

Dynamic Service Management

Multi-tenancy

Secure

Self-healing

Flexible

AssessCurrent Services

Current Services

6 Implementation

Page 31: Cloud Computing - What's all the hype?

© 2009 IBM Corporation31

Respondents could select multiple items

Concerns about data security and privacy are the primary barriers to public cloud adoption

69%

54%

53%

52%

47%

Security/privacy of company data

Service quality/performance

Doubts about true cost savings

Insufficient responsiveness over network

Difficulty integrating with in-house IT

What, if anything, do you perceive as actual or potential barriers to acquiring public cloud services?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Page 32: Cloud Computing - What's all the hype?

© 2009 IBM Corporation32

When deciding the right mix, Security is a key element, and remains the top concern for cloud adoption

Of enterprises consider security the #1 inhibitor to cloud adoptions

80%

Of enterprises are concerned about the reliability of clouds

48%

Of respondents are concerned with cloud interfering with their ability to comply with regulations

33%

Source: Driving Profitable Growth Through Cloud Computing, IBM Study (conducted by Oliver Wyman) 

“I prefer internal cloud to IaaS. When the service is kept internally, I am more

comfortable with the security that it offers.”

“Security is the biggest concern. I don’t worry much about the other “-ities” –

reliability, availability, etc.”

“How can we be assured that our data will not be leaked and that the vendors have the

technology and the governance to control its employees from stealing data?”

Page 33: Cloud Computing - What's all the hype?

© 2009 IBM Corporation33

IBM RedPaper REDP-4614, Oct 2009http://www.redbooks.ibm.com/abstracts/redp4614.html?Open

IBM Cloud Security Guidance

Best practice guidance for implementing cloud security

Implement and maintain a security program Build and maintain a secure cloud

infrastructure Confidential data protection Implement strong access and identity control Application and environment provisioning Implement a governance and audit program Implement a vulnerability management

program Environment testing and validation

Page 34: Cloud Computing - What's all the hype?

© 2009 IBM Corporation34

IBM has real clients, using real cloud services, that are achieving reduced complexity, lower costs and real business value

IBM clients around the world are using cloud to:– Quickly provision development and test environments– Reduce, and in some cases avoid, up-front

infrastructure costs– Create new business models for IT consumption– Reduce the costs of storage– Enhance communication and collaboration– And more

34

Page 35: Cloud Computing - What's all the hype?

© 2009 IBM Corporation3535

• Fixed base monthly price with no Capex, plus variable cost based on consumption

• Solution provides more flexibility, better service, at lower overall cost

• Increases standardization of test environments within FCC providing higher quality and beter service

• Solution eliminates currency fluctuations and unknown cost of off-shoring

The requirement placed on IT was to increase business flexilibility and ability make environment adaptations more quickly to allow business lines to implement new solutions faster to remain competitive. Simultaneously, the overall IT budget was being reduced, the biggest hits to capital invesment.

Canada's largest agricultural term lender. This organization's purpose is to enhance rural Canada by providing specialized and personalized financial services to farming operations, including family farms.

Cloud computing helps Canada’s largest agricultural lender Smart Business Test Cloud Case Study

Page 36: Cloud Computing - What's all the hype?

© 2009 IBM Corporation36

Cloud is helping Pike County Schools control IT costs

36

The district achieved cost savings of more than 60 percent over a full equipment refresh while providing extremely high levels of security and reliability

“We no longer worry about what hardware is in the school as much. We also no longer worry about the applications or processes that the schools are using because they are the same for everyone.”

— Maritta Horne, chief information officer and director of technology, Pike County Schools

Pike County Schools, a school district serving more than 10,000 students, avoided the cost of replacing 1,400 workstations by deploying a virtual desktop solution on an IBM cloud

Page 37: Cloud Computing - What's all the hype?

© 2009 IBM Corporation37

Cloud is helping Marist College provide key learning services quickly to regional primary schools and other universities

37

Open source services on Linux on System z

Supports a flexible billing model Leverages seamless multi-tenancy

with massive virtualization Enables security and total isolation

with EAL 5 certified LPAR Tivoli automation makes services

available in minutes where previously it took days or weeks

“The advantage of using a mainframe [for our desktop cloud] is tremendous.”

-Bill Thirsk, CIO Marist College

Marist College provides learning management services to regional primary schools and other universities in addition to its own campuses. The desktop cloud solution deployed offers an extra layer of security since college data is not stored on local machines or laptops that are easily compromised. The solution runs 630 virtual servers on a single System z maximizing Marist’s limited 2000 sq ft of data center space

Page 38: Cloud Computing - What's all the hype?

© 2009 IBM Corporation38

Cloud is saving the a UK Natural History museum significant money and improving overall access and sharing of information

“The ease of management that virtualisation

gives us made our lives a lot easier . . .”

— Gavin Malarky, Senior Infrastructure Analyst

38

• Increased capacity-10x on disk / 50x on tape

• Simplified management and greater visibility to storage resources and needs

• Back-up times cut by over 80%• Shared resource pool for users to

improve overall access to information

• 28 million specimens in zoology• 28 million insects and entomology• 9 million in palaeontology• 5 million in botany• 800,000 books and 20,000 photographic prints

Ultra-high resolution cameras, electronic microscopes, scanners, video, audio….the demand for digital storage has soared dramatically

Page 39: Cloud Computing - What's all the hype?

© 2009 IBM Corporation39

New levels of collaboration are achieved faster, and at significantly lower cost

Using LotusLive Files to create a central place to store and share information with external audiences (e.g., Statement of Work, project plan, presentations) for quick sharing, version control, and online meetings to cut travel and speed up collaboration.

39

-Saved 5-10 working days on a typical 8-week project, increasing productivity by 25%

-Saved an estimated 20% on total project costs (including travel)

-Reduced unnecessary e-mail communication

-Completed multiple projects with external audiences (worked across firewalls)

A social networking consultancy operating throughout the UK with strategic relationships with organizations in mainland Europe and USA

Need to reduce travel costs, eliminate time spent on searching email for files, version control problems, and all withno budget or IT resources to implement new collaboration infrastructure

Page 40: Cloud Computing - What's all the hype?

© 2009 IBM Corporation40

IT transformation includes Cloud Computing within IBM. Yielding a cumulative benefit to IBM in excess of $4B

Self-service, on demand IT delivery solutionfor 3,000 IBM researchers across 8 countries

IBM Technology Adoption Program (TAP) Saving IBM over $2.5M per year

Enterprise class utility computing solution for clients

Systems platform testing for Enterprise Clients, SMBs, & ISVs

Cloud computing solution for IBM Learning Centers in Europe

IBM Computing on Demand

Benchmark Centers

Common Location Project

Page 41: Cloud Computing - What's all the hype?

© 2009 IBM Corporation41

The IBM Research Computing Cloud (RC2) is a living lab to advance Research strategies.

India

Zurich

Provides self service “on demand” delivery solution for research computing resources1

• Zero touch support for the full life cycle of service delivery

IT order creationApproval processE-mail notificationAutomated provisioning and de-

provisioningMonitoring and automated change

management

2

Research Compute Cloud (RC2)

Watson

Page 42: Cloud Computing - What's all the hype?

© 2009 IBM Corporation42

Business Case ResultsAnnual savings: $3.3M (84%)

$3.9M to $0.6M

Payback Period: 73 days

Net Present Value (NPV): $7.5M

Internal Rate of Return (IRR): 496%

Return On Investment (ROI): 1039%

Business Case Results : IBM TAP Greenfield Cloud Deployment.

Current IT

Spend

StrategicChange Capacity

Hardware, labor & power savings reduced annual cost of operation by 83.8%Hardware Costs

( - 88.7%)

Labor Costs ( - 80.7%)

100%

Deployment (1-time)

Note: 3-Year Depreciation Period with 10% Discount Rate

Hardware Costs

(annualized)

New Development

Liberated funding for new development,

transformation investment or direct saving

Labor Costs (Operations and

Maintenance)

Power Costs(88.8%)

Power Costs

Software Costs

Software Costs

Page 43: Cloud Computing - What's all the hype?

© 2009 IBM Corporation43

What does the future of cloud computing look like….Platform/Application/Service: A Mobile Cloud for BoP Applications

Kiosk-operator gathers local information from various sources:1. Makes phone calls to get train schedule2. Gets movie list for today3. Gets blackout timings from electricity office4. Gets weather information through internet5. Gets visitor list (doctors, etc.) by officials from panchayat

Kiosk-operator uploads information through a phone

Govt. Voice sites organized in a distributed

nation-wide cloud

Villagers call the VoiceSite to get local as wellas district, state and national level information.

Service delivery to villagers through (mobile) phones by a voice interface

Government officials enters district, state

and national level information

Spoken Web

Page 44: Cloud Computing - What's all the hype?

© 2009 IBM Corporation44

Business benefits:• Enables suppliers to operate business independently w/ lower cost w/o IT operations• Provides dept store with common order and inventory mgmt across suppliers • Allows ISVs to join w/ core knowledge in the app w/o worrying about scalability and security

Solution: • A retail B2B solution on a low cost, scalable & secure platform ( >2000 suppliers so far) • Cloud platform with scalability, security, process monitoring dashboard, data transmission • ISV’s Retail B2B app for biz info exchange, order & inv. mgmt, sales data analysis

Challenge:

Thousands of suppliers need efficient operation & effective collaboration with a department store

Application/Service Cloud: B2B Collaboration for an Asian Department Store

ClientClient

Client

Clients 2000 of Retail Group’s

suppliers

Ind Service VendorE-Future

Client Rel’n OwnerLarge Int’l

Retail Group

Operator/Composer IBM

Cloud Platform

Managed Remotely

Page 45: Cloud Computing - What's all the hype?

© 2009 IBM Corporation45

Extending Cloud Services with IBM Research: Clinical Trials CloudImproving the efficiency, outcomes, analysis and sharing of clinical trials

CRO(Clinical

Research Org)

PharmaFDA

DataClinical Institutions

Accept

Approval

Submit results

Approve trial

Request patient

ClinicalInstitution/Patients

Pharma

dataanalyses

CRO.. Regulators( FDA,..)

Clinical trials cloud

Ingestion Access

results

Current Process of Phase 3 and 4 Trials A Clinical Trial Cloud Hard to recruit a cohort of patients with

sufficient statistical power

Data is not pooled between trials resulting in contradictory Phase 3 trials, and withdrawals after Phase 4 Surveillance

“Loss” of great amount of data, and delay in the search for life-saving cures

Shorter, less expensive and more effective clinical trials

Sold to the CROs, licensed from Clinical institutions (for whom trials highly profitable), possible royalties from Pharmas

All constituents can innovate and share while competing

Easy monitoring of the processes

Reuse of patient, data and results for new studies

Easy to monitor ADE and compare drugs

Allow for comparative study of drugs

Easier collaboration with CRO and Pharma

Inefficient, slow, expensive

“38,000 heart attacks and deaths from Vioxx”

Missed opportunity to collaborate between constituents

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Growth of instrumentation, interconnection and intelligence in the world will drive the emergence of IT and business services ... and the requirement for service management systems.

New IT consumption and delivery models are very compelling for some workloads today – and will position your enterprise for the future.

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In Summary … there is opportunity in the shift to a smarter planet.

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What smart things are happeningin your industry and company today?

Where are the greatestopportunities for progress?