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© 2010 IBM Corporation Erich Clementi IBM Vice President, Strategy & General Manager, Enterprise Initiatives Cloud Opportunity and Smarter IT Delivery IBM Student Workshop for Frontiers of Cloud Computing – September 9, 2010

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© 2010 IBM Corporation

Erich Clementi

IBM Vice President, Strategy & General Manager, Enterprise Initiatives

Cloud Opportunity and Smarter IT Delivery

IBM Student Workshop for Frontiers of Cloud Computing – September 9, 2010

© 2010 IBM Corporation2

Disruptive Technologies and the Internet Revolution

,

E-mail

World Wide Web

TCP-IP

E-business

Grid Computing

Internet

Centralized ComputingMainframe

Supercomputers

Distributed Client-ServerPersonal Computer

Unix-based Workstations

Web 2.0Cloud Computing

© 2010 IBM Corporation3

Cloud: Consumption & Delivery Models Optimized by Workload

“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 Services

Cloud Computing Model

© 2010 IBM Corporation4

Cloud computing is delivering value to both the business and IT

An Evolution of Information Technology

Changing the economics of IT Automating service delivery Radically exploiting standardization Rapidly deploying new capabilities

An Enabler of Business Transformation

Creating new business models Enabling speed and innovation Re-engineering business processes Supporting new levels of collaboration

Decrease costs

Increase innovation

InformationTechnology

Industries

© 2010 IBM Corporation5

Enterprises will connect to many cloudsPublic Cloud

Trusted Provider Cloud

• Federated Identity• Federated ESB• Event Infrastructure• Secure Data Pipe

Enterprise Data Center

On–premise Private Cloud

Dynamic InfrastructureService

Request & OperationsService Provider

ServiceCreation

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS) ”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services

Application/Business Process, Assembly and Information Services

End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Ba

sed

Inte

rfac

es

Cloud Services

Cloud Management Platform

Dynamic Infrastructure

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReportin g &

Ana lyt ics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS) ”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services

Application/Business Process, Assembly and Information Services

End Users,Operators

ServiceCata log

OperationalConsole

Stan

dard

s Ba

sed

Inte

rfac

es

Cloud Services

Cloud Management Platform

Open Standards enable Cloud Ecosystem

Community Cloud

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePubl ishing

To ols

ServiceReportin g &

Analytics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS) ”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services

Application/Business Process, Assembly and Information Services

End Users,Operators

Serv iceCatalog

Operation alConsole

Stan

dard

s Ba

sed

Inte

rfac

es

Cloud Services

Cloud Management Platform

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePubl ishing

To ols

ServiceReportin g &

Analytics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS) ”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services

Application/Business Process, Assembly and Information Services

End Users,Operators

Serv iceCatalog

Operation alConsole

Stan

dard

s Ba

sed

Inte

rfac

es

Cloud Services

Cloud Management Platform

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePubl ishing

To ols

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS) ”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services

Application/Business Process, Assembly and Information Services

End Users,Operators

Serv iceCatalog

Operation alConsole

Stan

dard

s Ba

sed

Inte

rfac

es

Cloud Services

Cloud Management Platform

© 2010 IBM Corporation6

Three cloud sub-markets expected to grow strongly$47B market in 2008 growing at 28% CAGR will reach $126B in 2012

Notes: Includes both direct providers of cloud services and components suppliers, Data represents a worldwide view across both LE and SMBSource: IBM (MI), IDC, CIO magazine, BCG analysis

Business processes and software as service delivered as horizontal and industry vertical solutions

Platform and Infrastructure as a service offerings that deliver flexibility & cost savings to clients

Sales of Cloud-enabling, hardware, software and services to enterprises and service providers

$47B

2008

$126B

2012

($B

)

27%

40%

23%

CAG R0

50

100

Cloud S pending by S ub-Market

Bus iness S ervices

Infras tructure S ervices

Components S upply

© 2010 IBM Corporation7

Requirement #1 – Security and Privacy

Today’s Datacenter Tomorrow’s Public Cloud

Data and information

People and identity Application and process

Network, server and end point

Physical infrastructure

© 2010 IBM Corporation8

On-premise business applications & information

Enterprise Infrastructure & Private Cloud

Application Integration,Monitoring Events,

Identity and Security,Workload Management

Public Cloud [SaaS, IBM Cloud, other Public Cloud]

Off-premise shared services

Off-premise business applications & information

GovernanceManagement

Integration

SecurityPrivate shared services

WorkflowManage the process for approval of usage

ProvisioningAutomate provisioning of resources

MonitoringProvide visibility of performance of virtual machines

Metering and ratingTrack usage of resources

Requirement #2 – Service Management is needed to connect, manage and secure hybrid clouds

© 2010 IBM Corporation9

Security Industry Verticals

SLM\SLA

Network Storage

APIManagement Virtualization

Standards address inhibitors to cloud adoption including security, vendor lock-in and portability.

Recognize that cloud standards are emerging throughout the market, within IT and other industries.

Standards should be open, have long term stewardship, have code to back them, and be widely adopted.

Standards TaxonomyTypes of Standards

SaaS PaaS IaaS

Enterprise

Across Vendorswithin a cloud

Cloud to Enterprise

Within an Enterprise

Cross - Cloud

Source: Cloud Computing Use Case Groupwww.cloudusecases.org

Requirement #3 – Open Standards

© 2010 IBM Corporation10

Reduced Costs and Increased Flexibility

App1 App2 App3Pattern 1 Pattern 2

Virtualized Traditional Standardized Images and Patterned Deployment

Shared Middleware Platform Services(increased reuse)

Shared Virtualized Hardware

Shared Virtualized Hardware

Shared Virtualized Hardware

DB2 8 MySQL DB2 9

DB2 8 WebLogicX DB2 9

WAS 5

WAS 5

WAS 6

WAS 6

Shared Database Service

Shared Application Service

App1 App2 App3

Leverage shared services

App1 App2 App3

Shared, virtualized hardware results in Capex savings; shared middleware services results in Opex savings

DB2 9

DB2 9

WAS 6

WAS 6

“Pattern” deployment

(but

independent stacks)…

Shared Messaging Service

DB2 9

DB2 9

WAS 6

WAS 6

DB2 9

WAS 6

Requirement #4 - Migration and Quality of Service

© 2010 IBM Corporation11

Bus

ines

s pl

anni

ng /

lifec

ycle

man

agem

ent s

ervi

ces

Shared middleware services

Infrastructure services

Industry-specific services

Inte

grat

ed s

ervi

ce m

anag

emen

t and

sec

urity

Processservices

Collaborationservices

Analyticsservices …

Software as a Service

IBM cloud strategy

Consulting and enabling servicesExperience and expertise to help clients plan, build and deliver cloud services

Technologies To plan, build, deliver and manage cloud services

Cloud services To optimize your business

© 2010 IBM Corporation12

Risk & Compliance

34,000-employee bank

deploying a private cloud to

centralize management of

desktops.

Greater remote flexibility without

sacrificing control.

Employee Productivity

Enable collaboration across global

employees as well as its network of

customers, partners and suppliers.

Analytics & Security

Design and demonstration of a secure cloud

infrastructure for defense and intelligence networks;

insights about cyber attacks,

network failures & automatically

preventing disruptions.

Time to Value

Increased efficiency,

productivity and ease-of-use of

its development and test

environment

Companies have different motivations for leveraging cloud

Large U.S. Retail Bank

© 2010 IBM Corporation13

Analytics Collaboration Development and Test

Desktop Storage Business Services

Fit for purpose middleware platform

Common Compute Platform(Compute/ Network/ Storage)

Base Enterprise Platform

Blue Insight109,000 users

growing to 200,000

LotusLive75% of all web conferencing

Dev/TestTime to build a

dev/ test environment

from 1 week to 1 hour

Workplace Cloud

Estimated savings up to

30%

Network Storage Cloud

Up to 40% savings in

storage costs

Production Cloud1,000

applications identified

HanoiHanoiVietnamVietnam

Silicon ValleySilicon ValleyCaliforniaCalifornia

DublinDublinIrelandIreland

São PauloSão PauloBrazilBrazil JohannesburgJohannesburg

South AfricaSouth Africa

BangaloreBangaloreIndiaIndia

TokyoTokyoJapanJapan

IBM Cloud LabsIBM Cloud Labs

SeoulSeoulS. KoreaS. Korea

BeijingChina

Other IBM Cloud CentersOther IBM Cloud Centers

SingaporeSingapore

IBM is investing in cloud computing to meet internal and client needs

IBM CIO Cloud Implementations:

© 2010 IBM Corporation14

Compute and Storage CloudsEnterprise-class Infrastructure Services

Additional Industry Cloud

Platforms

Industry Services

Industry Service

Retail and Consumer

Packaged Goods Industry Cloud

Platform

Industry Services

IndustryServices

Healthcare Industry Cloud Platform

Industry Service

IndustryServices

IndustryServices

Industry Service

Industry Vertical Business Services

Workload Optimized Industry

Cloud Platforms

On a platform of robust

Infrastructure Services

Cloud enables global industry transformations

IndustryServices

© 2010 IBM Corporation15

PHRPatient

ConsumerEMR/PMS Physician

PortalCare TeamPortal

Health Plan Portal

(future)

Health Analytics and Clinical Decision Support

Hospital SystemsEMR Pharmacy Systems

& PBM

Health PlanClaims Tx

ReferenceLabs

HIE Service ProviderBi DirectionalOrders and Results

Document and Image Sharing

Results DeliveryShared RegistrationFor EMR & Paper BasedPractices

Healthcare industry platform projects – Collaborative Care SolutionIntegrated solution that transforms the delivery of healthcare and provides, in a software-as-a-service model, Electronic Health Record, Health Info Exchange, Clinical Decision Support, and Healthcare Analytics

© 2010 IBM Corporation16

Industry

Solution

Boards

Industry

Solution

Boards

IndustryCloud

IncubationBoard

SVP CloudSteering Committee

Industry

----

Solution

Boards

Industry

Solution

Boards

Industry

Solution

Boards

Brand

----

Offering

Teams

Identification

Investment portfolio management

Incubation

Output• Understand

requirements for client value creation

• Define and demonstrate IBM value capture

• Meet IBM financial model requirements

• Put cross-IBM leadership team in place

Output• Prioritized Industry

solution strategies • Acquisition

candidates• Cloud solution

opportunities • Identified IBM

brand solution sponsors

Industry Cloud Solutions Management Approach

© 2010 IBM Corporation17

In summary…

Cloud will be a core component in industry and business model transformation.

Workloads will drive cloud adoption.

Cloud will have major implications for enterprise security, privacy, integration, service management and migration.

IBM is aggressively investing in and building out cloud capabilities.

© 2010 IBM Corporation18