Steve Mills - Dispelling the Vapor Around Cloud Computing

© 2011 IBM Corporation

© 2011 IBM Corporation

Dispelling the Vapor Around Cloud Computing

Steve Mills

IBM Senior VP and Group Executive IBM Software and Systems

3 © 2011 IBM Corporation

Cloud Computing - NIST* Definition (*National Institute of Standards and Technology)

Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of

configurable 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.

but ….. this is atechnology centric definition


Cloud Computing – A Business Value

Cloud computing is a model for enabling cost effective business outcomes through the use of shared application and computing services. The

value …. if possible …. is better economics in the execution of business processes.


Cloud Computing – Service ModelsBusiness Process, Software, Platform and Infrastructure Services and Components to Build Public and Private Clouds

Services

Software

Hardware

Cloud Components

Business Processas a Service

(BPaaS)

Platform as a Service

(PaaS)

Software as a Service

(SaaS)

Infrastructure as a Service

(IasS)

Cloud Services

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Customers consume business outcomes (e.g. payroll processing, HR) by accessing business services via Web-centric interfaces on multi-tenant and shared infrastructures without the need to manage or control the underlying resources

Customers use applications (e.g. CRM, ERP, e-mail) from multiple client devices through a Web browser on multi-tenant and shared infrastructures without the need to manage or control the underlying resources

Customers use programming languages, tools and platforms to develop and deploy applications on multi-tenant and shared infrastructures with ability to control deployed applications and environments without the need to manage or control the underlying resources

Customers use processing, storage, networks, other computing resources with ability to rapidly and elastically provision and control resources to deploy and run software and services without the need to manage or control the underlying resources


Business Process and Software as a Service are Most Mature Segments of Market; Private Cloud Delivery Model Resonating Well

Cloud Services2010 Revenue, ’10-’15 CAGR

Business Processas a Service

(BPaaS)

$9.6B 30% CAGR

Platform as a Service

(PaaS)

$4.2B 34% CAGR

Software as a Service

(SaaS)

$16.5B 26% CAGR

Infrastructure as a Service

(IasS)

$14.0B 30% CAGR

Services

$10.8B26% CAGR

Software

$10.1B16% CAGR

Hardware

$8.6B22% CAGR

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Cloud Components2010 Revenue, ’10-’15 CAGR

Private Platform

Components$1.1B

18% CAGR

Source: IBM Market Intelligence, 02/11


Cloud Computing – Primary Characteristics

On-demand self-service

Ubiquitous network access

Location independent resource pooling

Request driven provisioning and scheduling

Measured service / Pay-per-use


The Cloud Value Proposition is Around Operational Efficiency and Business Transformation

INNOVATVE BUSINESS MODELS

IMPROVED OPERATIONS

Business leaders, in particular, believe that cloud-based delivery models will radically change service provision and drive spending on cloud investments

55% believe cloud enables them to focus on transforming their business and make their processes leaner, faster and more agile

Source: "Cloud will Transform Business as We Know It: The Secret’s in the Source”, Hfs Research, and the London School of Economics, December, 2010

65% believe cloud will drive down the cost of running business applications

Infrastructure, testing, and SaaS are expected to cost much less than traditional outsourced services by at least 30% to 60%

60% of business executives also expect cloud service delivery cycles to speed up application implementation

Cloud Market Trends 2011 : “To What Extent Do the Following Aspects of the Cloud Value Proposition Appeal”?


Cloud Value Proposition

Public cloud workload attractiveness for companies with 1,000+ employees

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

64%

30%Public +113%

Private"Very appealing" or

"appealing"

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

64%

38%Hybrid

Private

+68%

"Very appealing" or

"appealing"

Source: IBM MAP Cloud Workload Adoption Survey, June/July 2009 , n: 731 , 9 countries: US, Canada ,UK, Germany, France, Italy, Japan, China & India,

Audio / Video / Web Conferencing

CRM / Sales Force Automation

WAN Capacity

e-mail

Development Environment

Data Mining / Analytics

Test Environment Infrastructure

Transactional Databases

Currently Using Plan < 12 Months

6%

6%

7%

8%

14%

16%

18%

22%

6%

6%

11%

9%

5%

3%

4%

5%

...


Cloud Delivery Models

A private cloud is one in which both the consumer of cloud services and the provider of those services exist within the same enterprise. The ownership of the cloud assets resides within the same enterprise providing and consuming cloud services.

A public cloud is one in which the consumer of cloud services and the provider of cloud services exist in separate enterprises. The ownership of the assets used to deliver cloud services remains with the provider.

A hybrid cloud combines multiple elements of public and private cloud, including any combination of providers and consumers, and may also contain multiple service layers.

PRIVATE CLOUD PUBLIC CLOUD

CLOUD DELIVERY MODELS

Isolates workload;

initial foray into cloud

computing

IT organization

and cloud users exist

across internal

boundaries

One-to-one relationship

between service

provider and the consumer organization

IT organization

and cloud users exist within one

management domain

One-to-many relationship

between service

provider and consumers

Consumer and provider of cloud services exist within

the same enterprise

DepartmentCloud

Consumer and provider of cloud services exist in separate enterprises

ExploratoryCloud

EnterpriseCloud

OpenCloud

ExclusiveCloud

Few participants,all Internal

Many participants,Internal and ExternalOrganizational Scope


Spectrum of Deployment Options for Cloud Computing

EnterpriseData Center

Private Cloud

ManagedPrivate Cloud

HostedPrivate Cloud

SharedCloud Services

PublicCloud Services

EnterpriseData Center

Third-party operated

Enterprise

Third-partyhosted andoperated

Enterprises Users

Free Register Credit Card Click to contract

HybridInternal and external service delivery methods are integrated

Private PublicIT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall

IT activities / functions are provided “as a service,” over

the Internet


IBM Cloud Offerings

IBM uniquely positioned with end-to-end capabilities: Consulting and Implementation Services Leading Hardware, Software and Research Managed Services across workloads Leading industry and process expertise


IBM Consulting Services for Cloud Strategy and Design

Application Strategy and Design

IBM Strategy & Change Services for Cloud Providers

IBM Strategy and Change Services for Cloud Adoption

Infrastructure Design

IBM Infrastructure Strategy and Design Services for Cloud Computing

IBM Data Center and Facilities Strategy Services

IBM Professional Security Services

IBM Deployment and Planning Automation (Rational)

IBM Networking Strategy and Optimization Services for cloud computing

IBM Converged Communications Services – Strategy & Assessment for Cloud


Cloud Enabled Data Center Portfolio

Service Management and Security Cloud Service Provider Platform IBM CloudBurst (BladeCenter & Power Systems) IBM Service Delivery Manager Tivoli Service Automation Manager IBM Solution Edition for Cloud Computing

(System z) IBM Proventia Virtualized Server Security for

VMWareSystems and Storage

IBM iDataplex IBM System x with ex5 technology IBM Power Systems with POWER7 IBM System z Scale out NAS Storage Systems (SoNAS)

Consulting Services

IBM Network Integration Services for Cloud Computing

Virtualization Security Solutions

Resiliency Validation for Cloud Computing

Enterprise Cloud Services (Managed Services) Smart Business Cloud Enterprise + IBM Federal Community Cloud Smart Business Development & Test Cloud Smart Business Desktop Cloud Smart Business End User Support Cloud IBM Tivoli Live – monitoring services IBM Tivoli Live – service manager Rational AppScan IBM Managed Security Services IBM Managed Backup Cloud IBM Rational Load Testing SO Cloud Managed Services

Enterprise Cloud Services (Private Cloud Services) Smart Business Cloud Enterprise

Smart Business Development & Test Cloud

Smart Business Information Archive

Smart Business Storage Cloud

Smart Business Desktop Cloud


Cloud Application Services Portfolio

Enterprise Cloud Services (Managed Services)

Smart Business Expense Reporting

Smart Business Learning Content Services

IBM Blueworks Live

IBM LotusLive Collaboration Suite

CastIron Cloud2 (integration services)

SO SAP Cloud Managed Services

Enterprise Cloud Services (Private Cloud Services) IBM SAP Cloud Services

Consulting Services

IBM Application Security Services for Cloud

IBM Application Development Services for Cloud

IBM Testing Services for Cloud

Analytics IBM Cognos Business Intelligence

Development Tooling Rational Software Delivery Services

Workload Optimized Systems IBM WebSphere Cloudburst Appliance IBM WebSphere DataPower Secure Cloud

Connector IBM Cast Iron DataPower Cloud Appliance XH35

Application Servers, Integration & Databases WebSphere Hypervisor Edition Portfolio WebSphere Virtual Enterprise DB2 Hypervisor Edition Informix Enterprise Server Cast Iron Virtual Appliance


IBM Centers Deliver & Manage Cloud Services Around the World

Sao Paulo

Raleigh, NCSilicon Valley, CA

Boulder, CO

Johannesburg

TokyoSeoul

Hanoi

Singapore

Bangalore

Hong Kong

Beijing

Dublin

IBM Cloud Lab

IBM Cloud Data Center

Wroclaw, Poland

Ehningen, Germany

7 Cloud Data Centers11 Cloud Labs57 Global Delivery Centers54 Global Command Centers

IBM Worldwide Support Centers

Toronto


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Steve Mills - Dispelling the Vapor Around Cloud Computing