2012.02.09 - IBM SmartCloud Introduction for Business Partners - Walter Falk - IBM

© 2012 IBM Corporation

Rethink IT. Reinvent Business.

02/01/2012

IBM SmartCloud Introduction -News from the Cloud

Walter FalkIBM Corporate [email protected] on Twitter



02/01/2012

Agenda

• Introduction & Definitions

• Opportunity

• Market Insights

• Insights from the Field

• Engaging Selling with Clients

• IBM’s Capabilities



02/01/2012

IDC and other Analysts have all identified the Four Forces driving IT in the next decade…..



02/01/2012

SocialUSER

Services

MobileDEVICEServices

AnalyticDATA

Services

Business PROCESSServices

On Premise

Outsourced

ERP, CRM,SCM

DesktopCollab

Internet Securityand Integration

Services

EnterpriseAnalytics

Clouds are here to stay and is already powering most of the modern IT world….



02/01/2012

� Banks built the automated teller machine network to improve service and lower cost.

� Manufacturers started using robotics to improve quality and lower cost.

� Telcos automated traffic through switches to assure service and lower cost.

Cloud computing represents the “Industrialization of IT”

Similar to when:



02/01/2012

Cloud computing is a consumption and delivery model for IT services, inspired by consumer internet services.

5 key characteristics:

1. On-demand self-service

2. Ubiquitous network access

3. Location independent resource pooling

4. Rapid elasticity

5. Flexible pricing models

VirtualizationService

Automation

Usage

Tracking Web 3.0

End User Focused

As we start, let’s make sure we all agree on what we are talking about…



02/01/2012

Cloud computing is a new model for IT delivery with new terminology

Cloud computing is a model for enabling

ubiquitous, convenient, on-demand network

access to a shared pool of computing

resources (e.g., networks, servers, storage,

applications, and services) that can be

rapidly provisioned and released with

minimal management effort or service

provider interaction. This cloud model

promotes availability and is composed of

five essential characteristics, three service

models, and four deployment models.

Essential Characteristics: 1. On-demand self-service2. Broad network access3. Resource pooling4. Rapid elasticity5. Measured Service

Service Models: 1. Cloud Software as a Service (SaaS)2. Cloud Platform as a Service (PaaS)3. Cloud Infrastructure as a Service (IaaS)

Deployment Models: 1. Private Cloud2. Community Cloud3. Public Cloud4. Hybrid Cloud

Source: The NIST Definition of Cloud Computing. NIST Special Publication 800-145 (Draft). January, 2011.http://csrc.nist.gov/publications/drafts/800-145/Draft-SP-800-145_cloud-definition.pdf

Enabled by virtualization and SOA, cloud computing allows services to be rapidly available on a scalable infrastructure.

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02/01/2012

Multiple deployment models are possible

EnterpriseData Center

Private Cloud

ManagedPrivate Cloud

HostedPrivate Cloud

SharedCloud

Services

PublicCloud

Services

EnterpriseData Center

IBMoperated

Enterprise

IBMhosted &operated

Enterprises Users



02/01/2012

Infrastructure-as-a-Service

Servers

Storage

Shared, Virtualized Dynamic Provisioning

Platform-as-a-Service

Middleware

Databases

Service Mgmt & Security

Development Tooling

Software-as-a-Service

Business Process-as-a-Service

Web 2.0 Runtime

Java Runtime

Data Center Fabric

Networking

ExamplesIBM / Industry

Financials

CollaborationIndustry Applications

CRM

ERP

HR

Industry-Specific Processes

Employee Benefits Management

Business Travel

Procurement

Four major categories of cloud computing services exist



02/01/2012

Agenda

• Definitions

• Opportunity

• Market Insights






02/01/2012

Cloud is a rapidly growing enterprise revenue opportunity

By 2015, a $200 B market

Enterprise Cloud Market Opportunity

$111

$199

PrivateCloud

ManagedServices

Business Solutions

2010 20152012

11

IDC Video (6:33)IDC Predictions 2012:

Competing for 2020

http://www.youtube.com/watch?v=Mfh3w-wbLTk

Access the report at:

http://events.idc-cema.com/dwn/SF_52232_top_10_preditions_2012.pdf



02/01/2012

Cloud computing is rapidly gaining traction with clients

Many applications of cloud computing are 2-5 years from mainstream adoption.

11/7/2011 IBM Confidential12



02/01/2012

Agenda

• Definitions

• Opportunity

• Market Insights






02/01/2012

Business and IT are attracted to cloud.

Rethink IT

Reinvent Business

•Rapidly deliver services

• Integrate services across cloud environments

• Increase efficiency

Tra

nsfo

rma

tion

• Initiate new revenue streams

•Faster time to market for new services

•Focus on differentiated processes

•Meet changing customer expectations

of CIOs plan to use cloud

(up from 33% 2 years ago)

of business executives believe cloud enables business transformation and leaner, faster, more agile processes

Eff

icie

ncy

55%

60%

IDC 2012 Predictions

• Over 80% of new apps will be distributed/deployed via the cloud

• Amazon Web Services will exceed $1 billion

• Private cloud “Arms Dealer” opportunity will grow over 30% and systems management will grow over 60%

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02/01/2012

Source: “Hype and Reality of Cloud Computing”, Everest, March, 2010

Enterprises Face Multiple Challenges in Cloud Adoption

Sedimentation of Enterprise Apps Portfolio

Lack of Standards

Security / Business Continuity Risks

System Performance

IT Management Control

� Enterprise applications of varying vintages not all of which can be ported to the cloud

� Widely adopted standards do not existfor common cloud-related activities

� Cloud computing entails multiple security risks that are unique to the business and delivery model

� High network bandwidth requirements and billing/metering engines impose significant overheads

� Shift from monitoring trends of individual nodes/components toavailability of a business services and downtime impact on other dependent services

– Enterprise clients with legacy mainframe and Web 2.0 apps

– Resource mgmt protocols– Packaging formats– Security mechanisms

– Security policy control– Labor resource access– Compliance with security

audits

– High variation in performance of Amazon’s S3 cloud storage services; swings up to 10x

– Managing multi-tenant environments

– Managing across physical, virtual and cloud workloads

Challenge Description Examples



02/01/2012

2012 will bring continued growth in all types of public, private and hybrid clouds.

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Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/12

“Demand for private clouds is expected to double as many organizations look for ways to gain greater flexibility from their computing resources while still maintaining control of their data. Forrester predicts the private cloud market to rise from $7.8B in 2011 to more than $15B in 2020.” – IBM (link)

“Hybrid cloud computing which brings together external public cloud services and internal private cloud services, as well as the capabilities to secure, manage and govern the entire cloud spectrum will be amajor focus for 2012.” – Gartner (link)

“The global public cloud services market will more than triple in size over the next five years to reach revenues of $66 billion in 2016” – Ovum (link)

Private

Public

Hybrid

“Public cloud services will grow five times faster than overall IT enterprise spending (19 percent annually through 2015).” – Gartner (link)

IBM Video (3:45)Rethink IT. Reinvent Business

http://www.youtube.com/watch?v=_4g-UFRrVx8



02/01/2012

Cloud Computing has moved beyond the hype. It is a highly disruptive trend that brings new opportunities.

17

“Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking. As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions.” – IDC

(link)

Disruption

“In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.” – Yankee Research (link)

“What supply chain models did to manufacturing is what cloud computing is doing to in-house data centers. It is allowing people to optimize around where they have differentiated capabilities.” – Gartner (link)

Opportunity

Mobile Cloud Services

IBM Video (3:18)Future of Cloud Computing

Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/12

http://www.youtube.com/watch?v=bu3kIAZAKTs



02/01/2012

Source: “Foresights: The Software Market in Transformation 2011 and Beyond”, Forrester Research, May 2011

Stabilized Deployed, but still expanding New Plans

13%

13%

14%

14%

22%

16%

20%

22%

26%

37%

8%

10%

11%

12%

19%

Traditional Application focus in finance and operations is maturing and new investments

slowing.

New investment focus shifting.

Finance and Accounting

Order Management

Industry Spec

ERP

CRM

Industry Spec

BI/Analytics

Mobile

CRM

Collaboration

Mobile

BI/Analytics

Collaboration

CRM

Industry Spec

Top Five Application Areas in each Life Cycle Stage

Specialized industry specific applications remain active, though specific opportunity

areas tend to be small.

New applications will accelerate the transformation to Cloud Computing

“What are your firm’s plans to perform custom development in these areas?”

Base: 933 North American and European software decision-makers

Cloud will further enable

these application areas



02/01/2012

The Cloud vendor landscape is an indicator of cloud growth.

19

Software-as-a-Service

Platform-as-a-Service

Infrastructure-as-a-Service



02/01/2012

Agenda

• Definitions

• Opportunity

• Market Insights






02/01/2012

Insights from the Field

What are clients really doing?

1. Enterprise clients are leveraging on premise / private cloud now. Many would like to “get out of the business of IT”.

2. New business clients (General Business and “Startups”) are typically starting with public clouds.

– They often move to private and hybrid as they mature.

– GB may move to private while ‘startups’will adopt public and shared private offerings.

3. Many clients are looking to become “cloudservice providers” internally and/or externally.

– “White” and “Grey” labeling are common scenarios being considered.



02/01/2012


What are the challenges?

1. The cloud delivery model has ripple effects into many other IT and business areas.

2. The support model is unclear.

3. Integration into an existing environment is becoming very challenging, due to many vendors and a lack of common ‘management’ platform.

4. Security is still a concern, however there are compensating controls which can be leveraged.

5. Application development processes and tools will need to be addressed to support ‘shared service creation.”



02/01/2012


What about workloads?

1. When and “If” to migrate a workload to cloud is important

– Enterprise workloads move into cloud delivery models with varying levels of transformation effort, return on investment, and productivity gains….

2. Workload characteristics will drive the rate and degree of standardization of IT and business services.

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

3. Like any transformation effort, cloud must be viewed as a phased transition.



02/01/2012

Ready for Cloud

Many workloads are ready for cloud delivery

Sensitive Data

Complex Processes & Transactions

Regulation Sensitive

Not yet Virtualized

3rd Party SW

Highly Customized

Analytics

Collaboration

Development & Test

Workplace, Desktop & Devices

Infrastructure Storage

Infrastructure Compute

Business Processes

Industry Applications

Pre-Production Systems

Information Intensive

Isolated Workloads

Mature Workloads

Batch Processing

May not yet be ready

for migration



02/01/2012

Agenda

• Definitions

• Opportunity

• Market Insights






02/01/2012

Identifying opportunities

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Finding Opportunities

• Companies with data center transformation projects

• Companies with application consolidation projects

• Strategic outsourcing clients (both current and new)

• Companies going through reorganizations

• Companies implementing business process & business model transformations

• Companies with complex supply chain operations

• Companies who want to leverage analytics or big data

• Start-ups with no legacy systems who want to invest in cloud vs. new data centers

• Enterprises with mobile strategies

Almost every IBM client wants to hear about cloud computing.



02/01/2012


How should you engage with clients?

1. Engaging with the business is fundamental. – Learn how to define the business value and

then map this to implementation.

2. Concern and skepticism amongst IT departments is still strong.

– They are still critical and the importance of their role should not be diminished

3. Know the competitors well. – Understand how they compete (or don’t

compete) with us.

4. Recognize IBM’s differentiators and tell the client. – Tell them why it matters to address specific

business challenges.

5. Shared services, delivered by cloud or some other method, need to be linked to a business value driver.

6. Assert A Position! IBM Point of View!



02/01/2012

Selling Cloud

http://w3.tap.ibm.com/medialibrary/media_view?id=107935&back=search&backTo=%2Fmedialibrary%2Fsearch%3FdisplayMediaSet%3D0%26qt%3D

sei%2Bcloud%26narrow_filter%3Dall

Selling CloudSelling CloudSelling CloudSelling Cloud

Heath Newburn

�You have to be a little creative.

�Think “Architecturally” (not technically).

�Think solution, not just products.

�What is driving or inspiring the Cloud discussion?

�Understand how to combine.. be a Cloud Orchestrator.

IBM Video (4:40)



02/01/2012

Agenda

• Definitions

• Opportunity

• Market Insights






02/01/2012

IBM provides the right hardware, software and expertiseto help enterprises fully leverage cloud.

A next-generation combination of technology, expertise and reach

of Fortune 100companies are usingIBM cloud capabilities.

IBM Cloud LabsIBM SmartCloud Centers

“IBM has one of the most comprehensive cloud portfolios.”

– Jeff Vance, Datamation

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02/01/2012

IBM cloud solutions provide high ROI opportunities.

Business Metrics Traditional IT IBM’s Cloud

Capabilities

Revenue Revenue is lost when outages occur or customer has a bad experience

Increase revenue by >$1 million in Year 1

Business Agility

Time-to-Value for Business Changes

Months Weeks

Customer Loyalty 3 – 5 second response times

< 1 second response time = + 7 customer loyalty points

Spend more on IT business innovation and less on maintenance

>70% on maintenance costs and growing

Lower by 20% to 40% (hardware, energy, software, database and mainframe) costs while absorbing growth

Increase asset utilization

Average of 15 – 25% server utilization

Utilize >65% server capabilities

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02/01/2012

IBM has a comprehensive cloud portfolio.Cross-brand products and services delivers customer value

New Industry and Business solutions

to accelerate business impact and grow

revenues by up to 20%

Easily build and rapidly scale private or hybrid cloud

environments with unparalleled time-to-market, integration and management

Unprecedented choice, security and portability of

applications on IBM’s SmartCloud service delivery

platform

Software as a servicecoupled with deep industry insights,

business process skills and analytics

IBM SmartCloud Application Services a

secure and scalable cloud platform for deploying

enterprise applications in minutes versus weeks

IBM SmartCloud Foundation with new

technologies to deploy a cloud 35x faster with support for image management and

rapid provisioning.

Services SolutionsFoundationPrivate and Hybrid Clouds Infrastructure and platform as a Service Software and Business Process as a Service

Platform as a Service Technologies

Infrastructure as a Service Technologies

InfrastructurePlatform

Usage and Accounting

Availability and Performance

Managementand Administration

Security and Compliance

Application Lifecycle

Application Resources

Application Environments

Application Management

Integration

Platform as a Service Technologies

Infrastructure as a Service Technologies

InfrastructurePlatform

Usage and Accounting

Availability and Performance

Managementand Administration

Security and Compliance

Application Lifecycle

Application Resources

Application Environments

Application Management

Integration

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02/01/2012© 2011 IBM Corporation33