© 2011 IBM Corporation Lessons Learned: Business agility through open standards & cloud Dr. Angel Luis Diaz ([email protected]) Vice President of Software Standards and Cloud for IBM Software Group
Oct 19, 2014
© 2011 IBM Corporation
Lessons Learned: Business agility through open standards & cloud
Dr. Angel Luis Diaz ([email protected])
Vice President of Software Standards and Cloud for IBM Software Group
© 2011 IBM Corporation2
React with agility to
competitive landscape
Execute with reduced risk
& cost
Achieve desired
business outcomes
* Source:
IBM CEO Study
of CEOs anticipate turbulent change & bold moves
80%
Manage business transformation
Differentiate their products and services
React to rapid
market shifts
Enable business flexibility
Proactively address changing regulatory mandates
of CIOs are expected to work with business executives to drive
innovation & manage change
64%
IT budgets were spent on ongoing operations and maintenance costs, limiting investments in innovation
54%
Businesses globally are facing an unparalleled rate of change…
© 2011 IBM Corporation3
Cloud computing is changing the economics of IT and speeding the delivery of innovative products & services
3
Deliver IT without
boundaries
Improve the speed, agility and dexterity
of business
Deliver new
business value in real time
Improve security and compliance control
postures.
Standardization, normalization, and reduction of unnecessary complexity
© 2011 IBM Corporation4
CIO: Significant growth in hybrid cloud is driving the need for interoperability and openness
of CIOs plan to use cloud, up from 33%
two years ago
…the majority being hybrid environments
60%
* Source:
IBM CEO Study* Source:
2010 STG Private Cloud Study (Q3-Q5b)
37%
34%
32%
32%
31%
29%
29%
28%
27%
Ability to predict hardw are failures and migrate w orkloads beforefailure occurs
Availability of a single tool to manage a heterogeneous Cloudenvironment
Fault tolerance and high availability
Dynamic scaling that automatically allocates additional resources toexisting virtual machines as w ork
An extensible architecture that is easy to integrate w ith existingsystems
Cloud management solution that provides high automation andavailability across data center environments
Ability to manage a geographically distributed Private Cloudenvironment through a centralized management system
Security for multi-tenancy environment
Netw orking resource allocation and management
Technology Features Most Often Rated As Differentiators Worth Paying Extra For% Selecting
© 2011 IBM Corporation5
of CIOs plan to use cloud, up from 33%
two years ago
…the majority being hybrid environments
60%
* Source:
IBM CEO StudyOct 2010
Non-IT Executives: Significant growth in hybrid cloud is driving the need for interoperability and openness
© 2011 IBM Corporation6
Organizations begin Cloud projects with high hopes, but
•
Wrong approach / wrong project
•
Lack of communication / collaboration / coordination / standardization
can lead to project failure
IBM can help you leverage best practices harvested from years experience and 2,000+ client engagements to ensure
success with your projects
… but not all cloud projects are successful …
surprised?
© 2011 IBM Corporation7
Discussion agenda
1.
A new approach to standards as an ingredient to ensure cloud project success.
2.
Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.
3.
IBM Smart Cloud can help you get started.
© 2011 IBM Corporation8
Why open cloud computing? Standards allow enterprises to manage change across market evolution cycles
HTTP, HTML, WSFL, XLANG, REST…
SOA Governance Framework, SOA Reference Architecture, …
Java, Java EE, XML, XML Schema, SOAP, WSDL, UML, Web2.0, ...
Web Services, SCA, BPEL, SAML, XACML …
BPMN, SBVR,RIF, …
Open Virtualization Format,Cloud Management, Cloud Audit, Reference Architecture, Cloud Standards Customer Council…
Open Social, HTML 5, CMIS, OpenAjax, OAuth, …
Dawn of Worldwide
Web
Rise of the Application
Server
Business Agility
Advent ofCloud
ServiceOrientation
SOAArchitecture
Social Business
Cloud builds on and leverages the standards which preceded this market cycle
© 2011 IBM Corporation9
Or is it somewhere in between…?
reinventing standards using existing standards
vendor-driven standards customer-driven standards
proprietary clouds open, interoperable clouds
OR
OR
OR
Open standards: Invention? or Reinvention?
© 2011 IBM Corporation10
A smarter approach to standards development
InnovativeOpen standards for cloud:
Invention? Reinvention?Cloud computing is
changing the economics of IT and requires a
rethinking of how we all engage in standards
development
PracticalBusiness success is not theoretical. Practical cloud computing is grass roots plain and simple: it involves leveraging real world implementations of standards & open source
User-drivenThe members of the
Cloud Standards Customer Council create a cross-industry view into
market-leading Cloud use cases and best
practices
ArchitecturalStandards allow enterprises to manage change across market evolution cycles extending the value of customers’
services based architectures and investments
© 2011 IBM Corporation11
IBM is a founding member of the CloudStandards Customer Council which:
•
Provides guidance to the multiple cloud standards-defining bodies
•
Establishes the criteria for open-standards-based cloud computing
•
Delivers content in the form of best practices, case studies, use cases, requirements, gap analysis
and recommendations for cloud standards
•
2011 Deliverables: Practical Guide to Cloud Computing, Cloud Computing Use Cases, Cloud Computing Business Patterns.
Engaging the customer via the Cloud Standards Customer Council
companies are
participating
230+
operate outside
the IT realm
50%
© 2011 IBM Corporation12
World wide launch & public release webcast hosted by Melvin Greer (Lockheed Martin –
CSCC Steering Group Chair) on Oct 5, 2011
…a prescriptive nine step plan for success being leveraged by
clients today.
[1] http://www.cloudstandardscustomercouncil.org/CSCC_PG2CC-10-04-11.pdf [2] http://www.cloudstandardscustomercouncil.org/use-cases/CloudComputingUseCases.pdf
On October, 2011 the CSCC produces its first deliverables!
•
IaaS Use Cases
•
Application On-Boarding
•
Virtual Environment Management
•
Hybrid Cloud Management
•
Storage Capacity
•
PaaS Use Cases
•
Policy-driven Application Management
•
Development & Test –
Problem Determination
•
Development & Test –
Application Promotion
•
Database as a Service
Practical Guide to Cloud Computing Eight Cloud Computing Use Cases
© 2011 IBM Corporation13
CSCC
use
cases
&
adoption
guide
provide
context
to
standardsArchitecture
The Open Group (TOG) Cloud Architecture
The Open Group SOCCITMForum
Cloud Architecture WG
Business ServicesSocial Business Standards: Apache Shindig, OpenSocial, HTML5, Activity Streams, CMIS, OAuth, OpenID
Industry solutionsRetail Cloud Standards in ARTSEducation Sector: The IBM Cloud Academy, EDUCAUSE, NACUBO
ManagementTopology Orchestration Services for Cloud Applications (TOSCA)
DMTF Open Virtualization Format (OVF)
OpenStack
DMTF Cloud Software License
DMTF/TMF cloud SLAs
and network
Workload servicesPaaS APIs
DBaaS
APIs
Operations Support DMTF Cloud Infrastructure Management Interface (CIMI)
SNIA CDMI
Open source API Adapters
SecurityDMTF Cloud Audit WorkingOASIS Cloud Identity Management Technical CommitteeCloud Security Alliance
IntegrationLinked Data & OSLC
© 2011 IBM Corporation14
Discussion agenda
1.
A new approach to standards as an ingredient to ensure cloud project success.
2.
Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.
3.
IBM Smart Cloud can help you get started.
© 2011 IBM Corporation15
Goal: Collaborative effort that brings together diverse customer focused experiences and perspectives into a single guide for IT and business leaders who are considering cloud adoption.
Table of Contents: IntroductionA Rationale for Cloud ComputingCloud Computing VisionRoadmap for Cloud ComputingSummary of Keys to Success
TimelineApril 7 –
CSCC LaunchedJune 7 –
Practical Guide LaunchedOct 10 –
Practical Guide Published
A practical guide to cloud computing
© 2011 IBM Corporation16
9
Steps to successful adoption of cloud computing
1.
Assemble your (cloud consumer) decision team
2.
Develop business case and an enterprise cloud strategy
3.
Select cloud deployment model(s)
4.
Select cloud service model(s)
5.
Determine who will develop, test and deploy the cloud services
6.
Develop a proof-of-concept before moving to production
7.
Integrate cloud solution(s) with existing enterprise services
8.
Develop and manage Service Level Agreements (SLA)
9.
Manage the cloud environment
© 2011 IBM Corporation17
Grounding the advice on a real success story!
"We reached a critical point –
at a time when we were confronting serious challenges to the campus’
student computing model, the NC Supercomputing Center closed due to state funding cuts. Unfortunately, only 50%
of the amount needed to solve both problems was available, leaving us with the
option of doing both services poorly or inventing a novel solution without any reassuring evidence that one existed. We chose latter course of action, daunting being preferable to failure, and the rest is history.”
Mladen
A. Vouk, Head of Computer Science, and Associate Vice-Provost for Information Technology Samuel F. Averitt, Vice Provost
Information Technology
North Carolina State University, circa 2004
© 2011 IBM Corporation18
1.
Assemble your (cloud consumer) decision team
Business leaders will leverage cloud to increase sales/revenues
Senior management leadership is critical
–
Make final decisions–
Accountable for success
Technical leaders drive detailed business and technical analysis
Legal / Admin integral to team support
Education is important at all levels and varies by recipient
Strategic
(CEO/Senior
Management)
Tactical
(CIO/CTO)
Operational
(IT, Finance
etc.)
•
Vision•
Terms of reference•
Guidelines
•
Business Analysis•
Technical Analysis
•
Procurement•
Implementation•
Operation
Bringing IT and line of business together to leverage the cloud
© 2011 IBM Corporation19
Cloud business model -
“change or change not, there is no try”
-
it’s a paradigm shift or not
Focus on business outcomes -
customers vote with their “feet”
How did NC State break down the
silos and disrupt the status quo?
•
Technical
–
IT orthogonal to campus needs•
make relevant –
sandboxes & fortresses•
Operational -
server hugging, emotionally satisfying but an economic train wreak
•
circa 2004 inspection -
”campus is littered with dead and dysfunctional clusters”
•
Political
-
the “not invented here”
phobia•
take wins -
the willing and the desperate•
get out of middle –
customer choice•
don’t be part of problem—gatekeeper versus enabler
•
let a winning solution speaks for itself
© 2011 IBM Corporation20
2.
Develop business case and an enterprise cloud strategyStrategic plan
reduces potential impacts and facilitates future decisions
Key Elements of Strategic PlanningEducate the team All team members (IT, business, operations, legal) must be educated
on what cloud computing is and what it is not
Consider the existing IT environment Develop a complementary cloud adoption strategy focusing on integrating and leveraging existing technologies and standards
Understand required services and functionality
Determine business justification and potential ROI and/or potential new revenue opportunities
Establish a long term plan Reduce risk of vendor lock in and disconnected cloud services –
avoid increased integration and maintenance costs
Identify clear success goals and metrics to measure progress
Define benchmarks for the existing service. Ensure objective of implementing new cloud service has been achieved. Metrics need to be agreed to by executives
Understand Legal/Regulatory Requirements
Consumers must understand responsibilities associated with national and supra-national obligations. Examples include:• Physical location of the data• Data Breach• Personal Data Privacy• Intellectual Property, Information Ownership• Law Enforcement Access
Track results for an extended time Identify trends that may need to be addressed to improve existing service
© 2011 IBM Corporation21
TCO -
it’s your business, what’s your use case
Make the case for how people can better work together in their value chain to exceed market demands.
min
imize
Operate, Maintain, Sustain
Time, Impact, Duplication
People
cost
Value, Use
optimize
productivity
Available, Usable, Relevant
Infrastructure
professionals
Business
professionals
People –
must move up the value chain
© 2011 IBM Corporation22
3.
Select cloud deployment model(s)Establish criteria for selecting the right deployment model
Private (on-site) Private (outsourced) PublicCriticality of cloud services
Mission critical, security sensitive services
Mission critical, security sensitive services
Non mission critical services
Migration costs Managing cloud software may incur significant costs
Lower costs since cloud hardware and software provisioned and managed by provider
Similar to private (outsourced) with additional security precautions to be taken into account
Elasticity Limited resources are available. Computing and storage capacity fixed.
Extensive resources are available
Generally unrestricted in their size
Security threats Implement same level of security as non-cloud resources
Techniques need to be applied to subscriber's and provider's perimeter
Limited visibility and control over data regarding security
Multi-tenancy Clients would typically be members of the subscriber organization
Similar to those for Private (on-site) cloud
Single machine may be shared by the workloads of any combination of subscribers
© 2011 IBM Corporation23
4.
Select cloud service model(s)
Large Organizations Small / Medium Business
IaaS
-
Primary consideration is capital expense reduction and access to IT capacity that would otherwise not be available
Private (on-site) provides a good initial transition to IaaS with relatively low risk
Private (outsourced) and Public can potentially deliver added business value
May not be feasible given insufficient ROI associated with consolidating a relatively small number of existing IT assets
A direct move to SaaS may be advisable for many SMBs
SaaS
-
Benefit
from the “pay-as-
you go”
concept, with highly scalable offering flexibility to companies to provision and de-
provision based on business needs
Consider SaaS initially for non-
critical business functions to deliver improved ROI
Adopt new disruptive SaaS solutions to maintain or extend competitiveness
Evaluate and identify business processes that can be enhanced by cloud-based applications to improve competitiveness with larger organizations
PaaS
-
Integrated development and runtime platform optimized for creating, deploying and managing cloud applications
Analyze PaaS offerings in terms of TCO / ROI and risks such as vendor lock-in, interoperability, existing IT infrastructure
Assess in-house development resource to justify the expense of a PaaS environment
A direct move to SaaS may be the best alternative for many SMBs
Many organizations face the challenge of staging a gradual adoption of cloud capabilities, incrementally advancing their IT environment
© 2011 IBM Corporation24
Decision points for the NC State Virtual Computing Lab
Service Architecture Ownership
The NC State cloud service model decision involves three key questions: what’s the service type, the architecture, and the ownership model.
Private Open Standards
Proprietary
DMTF Open Virtualization Format (OVF) -
http://www.dmtf.org/standards/ovf
The Open Group (TOG) Cloud Architecture -
http://www.opengroup.org/cloudcomputing
PublicPaaS
AaaS
IaaS
HaaS
© 2011 IBM Corporation25
5.
Determine who will develop, test & deploy cloud servicesMaximize resources to accelerate Cloud adoption
Options–
In-house development and deployment–
Cloud provider development and deployment–
Independent cloud service development provider–
Off the shelf cloud service offerings
Critical factors–
Cost–
Responsiveness –
Flexibility
Considerations–
Available skills–
Start up considerations–
Updates to existing services–
Testing / deployment
© 2011 IBM Corporation26
6.
Develop a proof-of-concept before moving to production
Steps for successful POC–
Assemble the team
–
Develop the service
–
Verify the cloud service delivers the requisite functionality
–
Verify that all processes work (simulate transactions)
–
Verify data recovery activities
–
Ensure Help Desk can address questions / problems
–
Develop a back out plan to manage migration to production problems
–
Identify the migration team to manage transition to production
POC is critical to validating that proposed cloud services deliver required functionality and meet expected ROI
© 2011 IBM Corporation27
7.
Integrate with existing enterprise servicesSeamlessly integrating cloud services as an extension of the Enterprise
Cloud is not a complete replacement of the enterprise–
Cloud services will need to interface with existing and future enterprise services
Integration strategy must accommodate future cloud services–
Plan must address ease of integration / interoperability of services
Risks of failing to develop an integration plan–
Increased development costs and time to market
–
Increased maintenance costs
–
Reduced flexibility to integrate new services
–
Increase costs and time to migrate service to a new cloud provider
–
Higher costs to establish a disaster recovery plan
© 2011 IBM Corporation28
8.
Develop and manage Service Level Agreements (SLA)
Key Elements of SLA ManagementAssign core SLA team • Must consist of members from IT, business, operations and legal
• Must also understand the expectations of the cloud service
Develop SLA for contracted service
• Identifies elements which are critical to protecting the ongoing operations of the enterprise• SLA sets expectations for when issues must be resolved, and spells out any penalties and an exit strategy should the cloud provider
not be able to meet the terms of the SLA
Define critical processes with the cloud provider
• Process to ensure issues which cause service to perform outside
of the agreed to performance levels are resolved consistent with the SLA• Escalation process to elevate the visibility of issues, depending on impact, to the appropriate parties in both the cloud consumer and cloud provider organizations
Schedule regular review meetings with key stakeholders within the enterprise
• Objective is to review SLA status on an on-going basis• Increasing important as more cloud services are being implemented and/or the number of cloud providers increases
Schedule regular checkpoint meetings with cloud provider
• Establishes ongoing dialogue to ensure problems are addressed before they become major issues• Establish a trail on the status of the elements of the SLA
Maintain a continuous level of responsibility
• SLA does not absolve the cloud consumer of all responsibilities• Ongoing vigilance required to ensure that enterprise users continue to receive expected level of service
© 2011 IBM Corporation29
Standardized customization -
a business differentiator
DEFCON 9 Biosurveillance:
potential but
improbable cataclysm
Addressing EquityCrossing the digital divide
Normalization of Extremes
TinkerPlot to supernova simulations
DMTF Cloud Management Working Group
The Case for Radically Dynamic Customization
© 2011 IBM Corporation30
9.
Manage the cloud environmentEnsuring that the right people understand that the cloud services are meeting expectations.
Both technical and customer support must be considered
Shared responsibility–
Enterprise (CIO and customer support)–
Cloud provider
SLA will establish process for:–
Identifying problems–
Establishing who is responsible –
Defines resources responsible to resolve the problem (from both consumer and provider)
Metrics are important–
“People do what you inspect, not what you expect!”–
Understand trends with existing servicesIdentify changes to improve ROI, customer satisfaction
–
Establish baseline for future services
© 2011 IBM Corporation31
Keys to success
Keys to Success
Establish executive support
Address organization
change mgmt.
Adopt open standards
Develop Service Level
AgreementAddress federated
governance
Rationalize security and
privacy
Address legal &
regulatory requirement
Define metrics and process for measuring
impact
© 2011 IBM Corporation32
The value of the cloud is in what it can do for NC State
LOW HIGH
Efficient
Effective
Replicate
React Anticipate
thinkCreatively
Differentiate
actPredictively
Incremental Change –
evolution vs. revolution
Logistically
Strategically
LOW
HIGH
© 2011 IBM Corporation33
Pop quiz: What are your lessons learned?
© 2011 IBM Corporation34
Discussion agenda
1.
A new approach to standards as an ingredient to ensure cloud project success.
2.
Lessons learned: 9 Steps to Successful Adoption of Cloud Computing.
3.
IBM Smart Cloud can help you get started.
© 2011 IBM Corporation35
IBM Cloud Solutions
Services SolutionsFoundation
Commitment to open standards and a broad ecosystem
Enables private/hybrid clouds and the virtualization,
automation and management of cloud services.
Secure and scalable cloud platform for deploying applications in minutes
versus weeks
Accelerate businesses impact and grow revenues by
leveraging Cloud business applications
Private & Hybrid CloudsCloud Enablement Technologies
Managed Cloud ServicesInfrastructure and Platform as a Service
Cloud Business SolutionsSoftware & Business Process as a Service
© 2011 IBM Corporation36
An integrated set of technologies for enabling private/hybrid clouds and the virtualization, automation and management of service delivery.
Virtualized
Standardized
Automated
•
Resilient
to the velocity of changing business needs
•
Choice
and flexibility in hybrid environments
•
Enterprise-class, workload aware infrastructures
•
Built-in analytics
for improved insight, planning and decision making and
IBM SmartCloud
Foundation
© 2011 IBM Corporation37
IBM SmartCloud
ServicesA managed service platform enabling the flexible, secure and immediate leverage of core platform and infrastructures capabilities.
An IaaS with enterprise-class governance, administration and management control
Enterprise PaaS with unprecedented choice in app development, deployment and management
The most complete set of automated and integrated services to support enterprise applications
Real business-centric SLAs that align IBM accountability to your business
Multiple delivery models allow clients to optimize against economics, integration, security and control
Services
© 2011 IBM Corporation38
IBM SmartCloud
Solutions
Smarter Commerce on Cloud to help companies accelerate their ability to transform the entire customer experience
Smarter Cities on Cloud to help cities of all sizes leverage information, anticipate problems and coordinate resources to deliver exceptional service to their citizens
Business Analytics on Cloud to help companies accelerate their ability to turn information into insights
Social Business on Cloud to integrate the collective knowledge of people-
centric networks to accelerate decision-
making and increase innovation
Solutions
Provides immediate access to software as a service enabling organizations cost-effectively reinvent business by transforming business processes
© 2011 IBM Corporation39
Creating customized private cloud solutions for client and provider infrastructures
Cloud Builders
Cloud Infrastructure ProvidersLeveraging the IBM Cloud to provide IaaS/PaaS capabilities
Cloud Services Providers
Create customized client solutions running on the IBM SmartCloud
Cloud Technology Providers Extending the function
and value of IBM SmartCloud
Cloud Application Providers
Delivering standardized SaaS solutions on IBM SmartCloud
IBM
is
building
an
ecosystem
designed
to
enhance
our enterprise
class
capabilities
as
well
as
to
scale
into
new
markets
© 2011 IBM Corporation40
Cloud in action: Citigroup
Dramatically reduce time to market
Make the company’s 20,000 developers more productive
Boost utilization rates and improving operational efficiencies. “Slashed server provisioning times from
45 days to less than 20 minutes”
-Jonathan Moore Senior Vice President, Citigroup Built a private cloud using IBM lifecycle services
management software solutions.
Enable self-service request, automated provisioning, and internal chargeback capabilities
The solution:
The need:Increased server
capacity 12x
Benefits:Accelerating development and delivery using the cloud
© 2011 IBM Corporation41
"Being able to connect our culinary chefs in the cloud is invaluable when talking about customer service. Someone who was once isolated now has access to information they might otherwise not have so they can make better decisions, faster and
can get client questions answered more quickly."
-
Bob Brindza, SOA Business Analyst, Newly Weds Foods
Speeds communication response rate from
days to hours
Saves 4-5 days per month in travel time and
10% on travel cost
Eliminates time zone barriers to productivity
Unique no-cost "guest account" model lets their clients easily collaborate
on recipe ideas
Benefits:
•
A tool to connect geographically dispersed teams without the capital expense and staff needed to run an in-house solution
•
Security to protect proprietary information and safeguard client recipes
•
IBM LotusLive
Social Business cloud services to enable culinary team to share information and ideas quickly and easily --
regardless of the time or location
•
Enables Chefs to find and connect with other chefs around the world, to store and share recipes and demos, and to host web meetings with clients
The solution:The need:
Cloud in action: Newly Weds FoodsGlobal food company connects in cloud to improve customer service
© 2011 IBM Corporation42
IBM is providing a market leading combination of technology, expertise and reach help our clients succeed with Cloud deployments & business outcomes
of Fortune 100
companies are using
IBM cloud capabilities.
IBM Cloud LabsIBM SmartCloud
Centers
“IBM has one of the most comprehensive cloud portfolios.”–
Jeff Vance, Datamation
© 2011 IBM Corporation43
Take action on your cloud journey
www.ibm.com/smartcloud
Contact your local IBM sales rep
Visit the IBM Cloud virtual briefing center for more information on our capabilitieshttps://events.unisfair.com/rt/ibm~cloudlaunch
Use the Cloud Adoption Advisor to identifycloud adoption opportunities http://www.ibm.com/cloud/advisor
View demos of IBM Workload Deployerhttp://tinyurl.com/iwdDemoshttp://www.youtube.com/watch?v=c4YEvw6BqnM
Join the Cloud Standards Customer Council for practical advice on architecting your open cloudhttp://www.cloud-council.org/m-application-abb.htm
© 2011 IBM Corporation44
© 2011 IBM Corporation45
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