Stream 3 - Cloud Computing

Understanding the right approaches in the adoption of cloud computing

Mario Gaon

Manufacturers use robotics to improve

Telcos automate traffic through switches to

assure service and lower cost

Cloud computing will transform the information technology Cloud computing will transform the information technology (IT)… (IT)…

Banks use automated teller machines to improve

service and lower cost

robotics to improve quality and lower cost

2

“Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies operate.”

“Cloud” is a new consumption and

delivery model inspired by consumer Internet services.

Enabled by Virtualisation, (Service) Automation, Standardisation

Cloud enables: � Self-service

� Economies-of-scale

Cloud Computing DefinedCloud Computing Defined

Banking � Economies-of-scale

� Flexible pricing models (eg. pay-per-use)

� Workload based IT resource provisioning

“Cloud” is: � The Industrialisation of Delivery for IT

Services

Similar to banking ATMs and retail Point of Sale, cloud is driven by:

� Economies of scale

� Technology advancement

Banking

Retail

IT

3

Cost savings result from infrastructure and labour. Reengineering Cost savings result from infrastructure and labour. Reengineering IT delivery processes is key to obtaining labour savings.IT delivery processes is key to obtaining labour savings.

Automation of Management

Take repeatable tasks and automate

services to lower labour costs, reduce

errors and deliver faster

La

bo

ur

Le

ve

rag

e

Self Service

Clients who can “serve themselves”

require less support, improve

productivity and get services faster

Virtualisation of Hardware

Standardisation of Workloads

Utilisation of Infrastructure

Virtualised environments only

get benefits of scale if they are

highly utilised

Drives lower capital

requirements

Le

ve

rag

eIn

fra

str

uc

ture

L

eve

rag

e

Lower complexity = more automation

possible = reduced IT labour costs

and faster delivery

4

EnterpriseData Centre

Private Cloud

ManagedPrivate Cloud

HostedPrivate Cloud

SharedCloud Services

PublicCloud Services

EnterpriseData Centre Enterprise Enterprises Users

What our clients are telling us: What our clients are telling us: Multiple deployment models are requiredMultiple deployment models are required

3rd partyoperated

3rd party hosted & operated

�Enterprise owned�Mission critical�High compliancy� Internal network

� 3rd party owned and operated

�Standardisation�Centralisation�Security� Internal network

�Mix of shared and dedicated resources

�Shared facility and staff

�VPN access

�Shared resources

�Elastic scaling�Pay as you go�Public internet

Source: IBM MI, Corporate Strategy, BCG analysis

5

IT also needs to become smarter … about workloads.IT also needs to become smarter … about workloads.

� Understanding workloads is critical to helping businesses optimise their

infrastructure.

� Companies run many different workloads with investments in multiple types of

platforms, applications, tools and skills.

� “One size fits all” doesn’t make sense for business models or the IT backbone that

drives them.

� Workload characteristics will drive the rate and degree of standardisation of IT and � Workload characteristics will drive the rate and degree of standardisation of IT and

business services

� IBM has identified a series of common workloads that are well suited for cloud

Desktop and Devices

Development and Test

InfrastructureCompute

BusinessServices

CollaborationAnalytics Infrastructurestorage

6

Adoption of cloud computing will be shaped by workload Adoption of cloud computing will be shaped by workload affinity, characteristics and riskaffinity, characteristics and risk

Mission-critical workloads, personal

information

De

live

ry M

od

els

Conventional Enterprise IT

Tomorrow’s high value / high risk workloads need:

● Quality of protection adapted to risk

● Direct visibility and control

Analysis & Private

7

Low-risk Mid-risk High-risk

Security/Privacy Risk

De

live

ry M

od

els

Public Cloud

Training, testing with non-sensitive

data

Today’s clouds are primarily here:

● Lower risk workloads

● One-size-fits-all approach to data protection

● No significant assurance

● Price is key

● Significant level of assurance

Analysis & simulation with

public data

Private Cloud

Workload versus consumption model provides a useful Workload versus consumption model provides a useful framework for analysing cloud prioritiesframework for analysing cloud priorities

Key framework elementsKey framework elements Strategic frameworkStrategic framework

Co

ns

um

pti

on

mo

de

l

• Public cloud

services

• Shared cloud

services

• Transaction

processing and

database

• Analytics and

high performance

computing

WorkloadsWorkloads Consumption modelConsumption modelx

User

AUser

B

User

C

User

D

User

E

Public Cloud Services

Enterprise A

Enterprise B

Enterprise C

Shared Cloud Services

Co

ns

um

pti

on

mo

de

l

Workload

• Private cloud

services

• Components

supply

computing

• Business

applications

• Web, collaboration

and infrastructure

EnterpriseData Center

Private Cloud

EnterpriseData Center

Private Cloud

Enterprise

IBM owned and operated


Hosted Private

Cloud



Hosted Private

Cloud

1. Which workloads are highest priority for you?

2. Which delivery models are of most interest to you?

8

IBM offers a portfolio of workload optimised cloud solutions and IBM offers a portfolio of workload optimised cloud solutions and delivery modelsdelivery models

Lotus Live Smart Business Development & Test on the IBM

Cloud

Smart Business Expense

Reporting

Tivoli Live

Pu

bli

c

Clo

ud

Smart Business Desktop Cloud

Information Protection

Services

Analytics Collaboration Development and Test

Desktop and

Devices

Infrastructure

Compute

BusinessServices

Infrastructure

Storage

Computing On Demand

Rational AppScan

9

Consulting Services

Infrastructure strategy and planning for cloud computing

IBM Strategy and Change for Cloud Adoption

IBM Strategy and Change for cloud Providers

IBM Testing Services for Cloud

Smart Business Test Cloud

Cloud

Smart Business Desktop Cloud

IBM Smart Analytics System

Pri

va

te

Clo

ud

WebSphere CloudBurstAppliance

Smart Business Expense Reporting

� Future

� Available in A/NZ

�OFFERING AVAILABILITY KEY

Smart Business Storage Cloud

IBM CloudBurst

In June & July of 2009, IBM interviewed 1,090 IT and LOB decision In June & July of 2009, IBM interviewed 1,090 IT and LOB decision makers around the world to understand current cloud adoptionmakers around the world to understand current cloud adoption

22%

2%

C-level Business Executives

Business Leaders

15%

IndiaUSA

4%17%

CommunicationsDistribution

Other Services

Who we talked to:

Job role Country Sector

22%

14%

62%

CIOs

IT Directors

30%

5%

10%10%

9%

11%

10%

15%

Japan

China

Canada

France

Germany

UK

22%

12%

27%

18%

17%

Industrial

Public

Financial Services

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

10

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

77%Reduce costs

Hardware savingsSoftware licenses savings

Lower labor and IT support costs

Lower outside maintenance costs

•

•

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

•

Percent rating factors as a major inducement (4 or 5)

Respondents could rate multiple drivers items

50%

72%

Improve reliability

Faster time to value

Improve system availability

Relieve pressure on internal resources

Simplify updating/upgrading Speed deployment

Scale IT resources to meet needs

•

Improve system reliability

•

•

•


11

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

69%

54%

Security/privacy of

company data

Service

quality/performance

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

Percent rating the factor as a significant barrier (4 or 5)

Respondents could select multiple items

53%

52%

47%

Doubts about true cost

savings

Insufficient responsiveness

over network

Difficulty integrating with

in-house IT


12

Audio/video web conferencing and CRM hold the greatest Audio/video web conferencing and CRM hold the greatest interest for deploying in a public cloudinterest for deploying in a public cloud

Public cloud

47%13% Data warehouse

47%9%Transactional

databases

40%29% CRM

50%21% E-mail

Private cloud

46%11% Data mining

Analytics

Percentage of respondents who have implemented or plan to implement a workload in a cloud environmentHave you, or are you planning to implement, public or private cloud delivery for these IT activities?

50%21% E-mail

49%18%ERP

applications

49%19%Industry

applications

36%32%A/V/web

conferencing

43%17%Unified

communications

48%16%VoIP

infrastructure

BusinessServices

Collaboration

Percent who have implemented or plan to implement the workload in the next 12 months

Respondents could select multiple items

53%15%Service/help

desk

Desktop

53%12% Desktop

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=362–1,029, depending on the workload.

13

Private cloud usage/implementation rates are relatively high Private cloud usage/implementation rates are relatively high across all workloads, with little variationacross all workloads, with little variation

43%14%Development environment

50%16% Application servers

42%18%Application streaming

41%18%Business

continuity/DR

Test environment12% 45%Development and Test

Public cloud Private cloud

Have you, or are you planning to implement, public or private cloud delivery for these IT activities?

51%13% Servers

50%15% Storage

41%18% continuity/DR

43%14%Data center

network capacity

44%16% Training infrastructure

45%17% Data archiving

51%15% Security

47%14% Data backup

43%23% WAN capacity

Infrastructure

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=362–1,029, depending on the workload.

Percent who have

implemented or plan to

implement the workload

in the next 12 months

Respondents could select

multiple items

14

� Cloud computing is a new consumption and delivery model for IT-based services with two main motivations: Cost reduction andBusiness Optimization

� Broadly speaking there are two cloud delivery models: private cloud and public cloud

� Cloud economics is driven by level of virtualisation, standardisation, automation and self-service. Understand your current and target maturity in these key areas.

� Don’t “wait for Cloud to mature”:

- Use “workload versus consumption model” framework to identify areas of cloud adoption

Learning Points on Cloud AdoptionLearning Points on Cloud Adoption

� But “one size fits all” doesn’t apply. Workload characteristics will drive cloud adoption strategy. Workload analysis approach is required.

� Workload versus consumption modelprovides a useful framework for analysing cloud priorities

framework to identify areas of cloud adoption within your own organisation

- Perform ROI analysis and develop business case

- Start with an isolated cloud deployment

- Roll out cloud across the enterprise

www.ibm.com/au/ibm/cloud