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[Cloud Summit 2010] Cezar Taurion - IBM
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© 2010 IBM Corporation1 IM AR
Cezar Taurion, Gerente de Novas Tecnologias, IBM Brasil
Agosto, 2010
Cloud Computing 2.0Da curiosidade para o mundo real
Cezar TaurionGerente de Novas Tecnologias Grupo de Estudos e Pesquisas em Cloud Computing
© 2010 IBM Corporation2 IM ARSource: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”
IDC Presentation, Cloud Leadership Forum, June 13-15, 2010
Cloud Computing – Widespread Awareness
© 2010 IBM Corporation3 IM AR
What is Cloud computing?
Changes my revenue model and helps me get new business
Use what I need without having to deal with IT department
A way to quickly get the systems and configuration I want to test and build my
applications
Cloud computing helps me reduce my capital costs by not having to buy and maintain complex systems inhouse.
A new way of using resources that reduces the number of systems in my portfolio and virtualizes my infrastructure
What is the cloud? Current pain points
CxO / LoBNeed to drive business results and transformation in a
rapidly changing environment.
CIO / IT Manager
Need to reduce costs and improve service delivery
DevelopersLimited funds and tough to get spending approval on
development tools
End-UserNeed to achieving work objectives with limited resources
due to cost-cutting
Cloud Services Provider/ISVDifficult to make my customers switch from existing tools
due to high transition costs
A new computing model where IT infrastructure, tools and capabilities are delivered as a scalable service to customers using internet technologies.
It also depends on who you ask…
Database & Storage
Applications & platform
Scalability
User 1
User 2
User 3
Internettechnologies
© 2010 IBM Corporation4 IM AR
Cloud computing holds the promise of reducing IT operating costs… which means, clients can do more with less
Reduced Cost
….leverages virtualization, standardization and automation to free up operational budget for new investment
VIRTUALIZATION +STANDARDIZATION AUTOMATION+
NoneSelf service
Fixed cost modelMetering/Billing
WeeksTest Provisioning
Payback period for new services
Release Management
Change Management
Server/Storage Utilization
Years
Weeks
Months
10-20%
Unlimited
Granular
Minutes
Months
Minutes
Days/Hours
70-90%
Legacy environments Cloud enabled enterprise
Cloud is a synergistic fusion which accelerates business value across a
wide variety of domains.
Capability From To
=
© 2010 IBM Corporation5 IM AR
Infrastructure as a Service
Servers Networking StorageData Center
Fabric
Shared virtualized, dynamic provisioning
Beyond infra-as-a-service: The layers of IT-as-a -Service
© 2010 IBM Corporation6 IM AR
Infrastructure as a Service
Platform as a Service
High Volume
Transactions
Servers Networking Storage
Middleware
Data Center Fabric
Shared virtualized, dynamic provisioning
Database
Web 2.0 ApplicationRuntime
JavaRuntime
DevelopmentTooling
Beyond infra-as-a-service: The layers of IT-as-a -Service
© 2010 IBM Corporation7 IM AR
Infrastructure as a Service
Platform as a Service
High Volume
Transactions
Software as a Service
Servers Networking Storage
Middleware
Collaboration
Business Processes
CRM/ERP/HR
Industry Applications
Data Center Fabric
Shared virtualized, dynamic provisioning
Database
Web 2.0 ApplicationRuntime
JavaRuntime
DevelopmentTooling
Beyond infra-as-a-service: The layers of IT-as-a -Service
© 2010 IBM Corporation8 IM AR
Cloud Deployment Models
© 2010 IBM Corporation9 IM AR
A cloud computing primer – your 60 second guide
Start
Finish
A new model of IT delivery and consumption… …inspired by internet
services in the consumer space
Key ingredients:
•elasticity
•PAYG
•on-demand self-service
Analogies - electricity generation
and The
Model-T Ford
Evolutionary, not revolutionary – time sharing, hosting, ASP
Variants – public, private, hybrid, community,
G-cloud add to confusion
Get toknowtheCloudstack
Near-term adoption overstated, long-term impact underestimated –all bets are off !
Source: Market Insights
A “confluence of technologies” –virtualization, SOA, multi-tennancy
?
© 2010 IBM Corporation10 IM AR
• #1 reason to move to a public cloud is lower total cost of ownership
• Top reasons for moving to a private cloud include cost/resource efficiencies, as well as enhancing speed and flexibility
• Security concerns are the top barrier to adoption of both public and private clouds
• Experience managing large outsourcing engagements gives IBM the tools to manage customers’ top cloud concerns
• Three distinctive end-user cloud buying patterns are emerging: exploratory, solution-focused and transformational
• There are reports that public clouds are being adopted faster than originally forecast
• In terms of market opportunity, Financial Services, Manufacturing, High Tech, Government and Retail are the top five industries for cloud
Cost Take-out is Key Driver
Security isTop Concern
Adoption Patterns are Emerging
Industries under the Greatest Pressure
Lead Interest in Cloud
What the Market is Telling Us � There is universal interest in cloud computing across all industries and geographies
© 2010 IBM Corporation11 IM AR
Cost savings and faster time to value are the leading reasons why companies consider cloud
Respondents could rate multiple drivers items
50%
72%
77%
Improve reliability
Faster time to value
Reduce costs
Improve system availability
Pay only for what we use Hardware savings
Software licenses savings Lower labor and IT
support costs Lower outside maintenance costs
Take advantage of latest functionality
Simplify updating/upgrading Speed deployment
Scale IT resources to meet needs
•
•
•
•
Improve system reliability
•
•
•
To what degree would each of these factors induce you to acquire public cloud services?
Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090
© 2010 IBM Corporation12 IM AR
Top Challenges in Moving to a Public or Private Cloud
Source: “Cloud Computing Attitudes”, IDC, April, 2010
Security concerns are the
most important fear among
IT decision-makers for both
public and private cloud,
especially public cloud.
Other factors, such as
- lack of technology
maturity
- lack of personnel skill
sets
- organizational
challenges and
- difficulty integrating with
existing infrastructure
will likely decrease over
time as cloud success
stories circulate.
Percent of Respondents
© 2010 IBM Corporation13 IM ARSource: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”
IDC Presentation, Cloud Leadership Forum, June 13-15, 2010
Drivers vs. Barriers
© 2010 IBM Corporation14 IM AR
Cloud Adoption and Budgeting
Source: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”IDC Presentation, Cloud Leadership Forum, June 13-15, 2010
© 2010 IBM Corporation15 IM AR
We have identified the workloads that offer the most favorable entry points for each of the cloud delivery models
Top private workloads
Database- and application-oriented
workloads emerge as most appropriate
� Data mining, text mining, or other analytics
� Security
� Data warehouses or data marts
� Business continuity and disaster recovery
� Test environment infrastructure
� Long-term data archiving/preservation
� Transactional databases
� Industry-specific applications
� ERP applications
Top public workloads
Infrastructure workloads
emerge as most appropriate
� Audio/video/Web conferencing
� Service help desk
� Infrastructure for training and demonstration
� WAN capacity
� VoIP infrastructure
� Desktop
� Test environment infrastructure
� Storage
� Data center network capacity
� Server
Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090
© 2010 IBM Corporation16 IM AR
Email is set to see a 3x increase in cloud environments next year
Source: “CIO Survey – Moving to Cloud”, Morgan Stanley, May, 2010
Cloud Workload Attractiveness
© 2010 IBM Corporation17 IM AR
Software-as-a-Service (SaaS) is predicted to reach mainstream adoption in 2010, with Infrastructure-as-a-Service (IaaS) following after 2012
• However, IT leaders predict that IaaS will not account for the majority of infrastructure until at least 2015
© 2010 IBM Corporation18 IM AR
IBM’s Offering Approach
© 2010 IBM Corporation19 IM AR
IBM Cloud Offerings
© 2010 IBM Corporation20 IM AR
EnterpriseEnterpriseData Center
Private Cloud
EnterpriseData Center
IBM operated
Managed Private Cloud
IBM owned and operated
IBM owned and operated
Hosted Private Cloud
Delivery Model 1Delivery Model 1 Delivery Model 2Delivery Model 2 Delivery Model 3Delivery Model 3
Ownership /Location
Operator Enterprise
Enterprise
Time & materials, fixed price, etc.
Internal enterprise network
Single enterprise
Dedicated (single tenant)
IBM
IBM
Time & materials, fixed price, pay-as-you-go
(There are a set of assets that could be flexibly allocated on a dedicated basis to an multiple enterprise depending on demand)
Public internet
Any enterprise/ user
Multi-tenant2Asset use
Access
Consumer
Revenue model Pay-as-you-go
Access through VPN, public internet
Multiple enterprises
Mixed1
User A
User B
User C
User D
User E
Public Cloud
Services
Enterprise A
Enterprise B
Enterprise C
Shared Cloud
Services
Cloud scope
IBM Smart Business Services - Standardized Services on
the IBM Cloud
IBM Smart Business Services – Private Cloud Services, behind your firewall
Delivery Model 4Delivery Model 4 Delivery Model 5Delivery Model 5
The IBM Cloud Delivery Models
© 2010 IBM Corporation
E-MailColaboração
LotusLive é um portfolio de serviços
IBM LotusLive MeetingsIntegração de Web, audio e video conferência
IBM LotusLive EventsAuxilia a criação, hospedagem e gerenciamento de reuniões via OnLine
IBM LotusLive Connectionsprovê serviços que permitem a integração de suas redes de negocios com compartilhamento de arquivos, mensagens instantäneas e redes sociais
IBM LotusLive Notes provê serviços de hospedagem de Notes e Domino
IBM LotusLive Engage provê serviços de compartilhamento de arquivos, mensagens instantäneas, redes sociais e gestão de atividades
Web conferencing
www.LotusLive.com
IBM LotusLive iNotes®
provê serviços de E-Mail com segurança, funcionalidades e flexibilidade de acesso
© 2010 IBM Corporation
Features Benefits
IBM CloudBurst delivers …
Self-service
Portal
Self-service
Portal Improve serviceService CatalogService Catalog
Automation SoftwareAutomation Software
Pre-packed Automation
Templates
Pre-packed Automation
Templates
Built-in VirtualizationBuilt-in Virtualization
Single Delivery,
Installation & Price
Single Delivery,
Installation & Price
Implementation
Services
Implementation
Services
Single SupportSingle Support
Reduce cost
Easy
Process
© 2010 IBM Corporation23 IM AR
� Users can request the services they need, when they need them, for the time they need them
� Eliminates manual processes for requesting resources
Self-Service Portal
…Improves customer satisfaction by accelerating service delivery
© 2010 IBM Corporation24 IM AR
Why Private Test Cloud ?
“Strategy”, planning, design, build and implementation of the solution
�Create self-service portal with catalog of services, calendaring, education and optional chargeback
� Integrated platform combining service request management, provisioning / de-provisioning and change and configuration management
Test Environments
BenefitsKey Features
�Reduce IT labor cost by 50% + -reduce labor for configuration, operations, management and monitoring of the test environment
�75% + Capital utilization improvement; Significant license cost reduction
�Reduce Test Provisioning cycle times from weeks to minutes
� Improve Quality- eliminate 30% + of all defects that come from faulty configurations.
© 2010 IBM Corporation25 IM AR
Cloud computing is changing the application development landscape by giving the developers instant access to computing resources (hardware & software)
Budgetapproval
Developmentteam
CIO
Capital investment to buy hardware and software
Computing resources
Develop application
Support infrastructure and pay for maintenances and license
Customer paysfixed amount
Developmentteam
Rent resources you will need from cloud
Provision instances required
Develop application
Host application on cloud or on premise
Customer paysfor what they use
Existing Application Development Future of Application Development
Due to high set-up and infrastructure costs, approval from management is required in most cases
The development team will assess in-house resources to determine additional hardware and/or software to be purchased.
Development team uses resources to build application. These resources sit idle when not in use
Application is hosted in house and development and maintenance, upgrades, and license costs are passed on customer regardless of usage
Since there are no capital expense, developers may not need approval from higher levels
The development team can provision computing resources from the cloud and change that as needed
Development team only pays for the resources that is actually uses
Once application is developed, the computing resources are released and application is hosted on the cloud. Customer only pays for what they use
© 2010 IBM Corporation26 IM AR
Cloud Computing: Threat or opportunity for the CIO?
CIOs are worried that Cloud will bring about disruptive change to IT Operations
� Line-of-business units going to “public cloud providers” for IT instead
� Disintermediation of the traditional IT team
� As some have said, it is “Client / Server all over again”
CIOs need to embrace the change, not resist it
� Understand the benefits of cloud, as well as its drawbacks
� Understand the public cloud providers capabilities and include these services in IT
offerings as it makes sense
With an IT strategy that embraces Cloud, CIOs can better satisfy their customers
� Improves visibility of IT use, more responsive, simpler, cheaper
� Requires an overall strategic vision with pragmatic, evolutionary approach
� Increases range of services, applications, and capabilities available to clients
© 2010 IBM Corporation27 IM AR
We believe there are 6 key steps to a Cloud strategy
Implement Cloud
Systems Storage
Network
Computing
Infrastructure
Platform &
Applications
EmailBus
Apps
BPMSys
Mgmt
Info Mgmt
Web Svr
Assess Workload
E-Mail,
Collaboration
Software
Development
Test and Pre-Production
Data
Intensive
Processing
Database ERP
Determine the Cloud Delivery Model
Enterprise
Private Public
Hybrid
Trad
IT
Create IT Roadmap
Capital
Private Cloud
Hybrid Cloud
Time
TradIT
RentFinancial
Wo
rklo
ad
Cu
sto
mS
tan
da
rd
Establish Architecture
Service Definition
Tools
Service Publishing
Tools
ServiceFulfillment &Config Tools
ServiceReporting &
Analytics
ServicePlanning
RoleBasedAccess
OSS
BSS
Infrastructure
Platform
Software
End Users,
Operators
ServiceCatalog
OperationalConsole
Cloud Services
Cloud Platform
Define Business Value
© 2010 IBM Corporation28 IM AR
Analysis of IBM Americas’ internal applications*
The Cloud-Affinity of existing applications depends on multiple factors: Compliance and cross-border issues, site-dependency (for performance or data size), app-specific benefits of migration, and the ease and cost of migration.
Low Cloud affinity
High Cloud affinity
Which aspects of your IT portfolio have an affinity for Cloud?
© 2010 IBM Corporation29 IM AR
Which aspects of your IT portfolio have an affinity for Cloud?
� Cloud as a supplement where risk and migration cost may be too high
– Database– Transaction processing – ERP workloads– Highly regulated workloads
� Can be standardized for cloud – Web infrastructure applications– Collaboration infrastructure– Development and test– High Performance Computing
� Made possible by cloud– High volume, low cost analytics– Collaborative Business Networks– Industry scale “smart” applications
29
© 2010 IBM Corporation30 IM AR
Business Case Results: IBM Technology Adopter’s Portal (IBM TAP)
New Development
Software Costs
Power Costs
Labor Costs (Operations and Maintenance)
Hardware Costs (annualized)
Liberated funding for new development, trans-formation investment or direct saving
Deployment (1x)
Software Costs
Power Costs( - 88.8%)
Labor Costs ( - 80.7%)
Hardware Costs( - 88.7%)
Note: 3-Year Depreciation Period with 10% Discount Rate
Without Cloud With Cloud
100%
Current IT
Spend
StrategicChange Capacity
Hardware, labor & power savingsreduced annual cost of operation by 83.8%
� IBM TAP is an ideal environment for private cloud
implementation
� By implementing virtualization
and automated provisioning,
TAP was able to:
�Reduce from 488 servers to 55
�Reduce from 15 admins to 2
�Reduce hardware, power, and
labor costs 83.8%
� Clients who have already
adopted virtualization and automated provisioning will
see different results
© 2010 IBM Corporation31 IM AR
A Cloud Enabled Data Center
Service Request & Operations
Self-service UIAdministrators
Virtual Servers, Storage, Network
Tivoli Service
Automation MgrTivoli Service
Automation Mgr
Tivoli Provisioning
ManagerTivoli Provisioning
Manager
Tivoli Monitoring:
NetcoolTivoli Monitoring:
Netcool
Tivoli Usage &
Accounting MgrTivoli Usage &
Accounting Mgr
BSSBSS OSSOSS
Cloud Administration
Service Management
Dev & Test Zone QA Zone Production Zone• Application Lifecycle
Management• Rational Jazz• Eclipse Open Source
• Multi-tier infrastructure
• Multi-tier infrastructure• Web / App / Database
Providing a simplified, dynamic, automated data center solution enabling enterprises to deliver services faster and in a cost effective manner
Data Center #1 Data Center #2
WAN
Virtual
Networks
Virtual Machine
Migration
Security
© 2010 IBM Corporation32 IM AR
Concluindo…
© 2010 IBM Corporation33 IM AR
Towards “cloud utopia”: Will an IT “asset lighter” model become increasingly common within the enterprise over the next few years?
Dot Com Boom� Application Service
Provider (ASP) model ill-
fated forerunner to cloud
“On Demand 1.0”� e-business as a
viable model
Pre-mid 80’s Mid-90s 2000 2010
Mostly internal IT� Build and manage most
IT in-house
Challenge to internal IT
� The rise in outsourcing
2012 + ?� IT “asset lighter” enterprise
increasingly mainstream
2015
Cloud as a disrupter Cloud computing could potentially be the most seismic market disruption ever seen in the industry and might be the start
of the move towards “everything-as-a-service”, culminating in the “IT asset-lite” enterprise as the de facto model
Cloud Hype� Elements of alternative
delivery (eg SaaS) in
early phase
Economic Pressures
� A confluence of technologies
(virtualization, multi-tenancy, etc.),
together with the economic
downturn stimulates even more
interest in cloud computing
© 2010 IBM Corporation34 IM AR
Cloud computing and the “Perfect IT Storm”: Prepare for a very bumpy ride in the new market norm
� Cloud is the 4th major era of computing
� Brought about by a confluence of technologies
� Plus, radically changing buying decisions borne out of economic necessity
– “even more for even less”– consumerization of IT
� But, critically, net spending will be materially lowerthan in the current IT paradigm
� Caused by a bundling and shared use of previously user owned / managed IT
� We are calling this the decomposition of previous IT value elements
1960s
Glo
ba
l S
pe
nd
on
IT
Pro
du
cts
& S
erv
ice
sMainframe Era
1980s 2000s 2020
PC / Client-Server Era
Network Era
IT’s New Norm2010 +
Global IT spend peaked sometime between 2005 and 2008. IT spend will be on a downward trajectory over the next decade
Cloud computing will create massive disruptions and substitutions to the traditional IT paradigm
The way hardware and software markets work today (the way they are bought, sold, packaged, marketed and the
ecosystem that supports them), will all look very different a decade from today
Source: IBM Market Insights
© 2010 IBM Corporation35 IM AR
The realities of cloud versus hype
� Adoption and migration to end goals differ– Enterprise with lots of legacy / significant investment will be more cautious– Commonly accepted wisdom is LEs will adopt via a private cloud (DC 2.0) build-out first. Risk is they take a trial / incremental basis straight to
public clouds. MI is calling this the private cloud bypass scenario. Intuitively, SMB, start-ups unlikely to pursue private cloud route
� Scope / role of internal IT changes – fewer staff, procure / orchestrate cloud SPs
Source: Market Insights
Source: Market Insights and Gartner
Reality Today
Internal IT plus 3rd party for some things
Everything in the cloud and all at once
Cloud Hype
Sourcing mixture -retain legacy, plus
private/hybrid, public
Future Reality
Trad. SO Trad. SO
So, no “BIG BANG” !
Which is why we don’t see too many
cracks…yet
2009 – How would our
org benefit (pilots)2010 – Have budget –best investment areas ?
2008 – What is
cloud? (education)
�Nevertheless, the evolutionary process to cloud is beginning to reach a critical phase
© 2010 IBM Corporation36 IM AR
We are in the midst of a pronounced shift from client-server to cloud computing; as a result next generation data centers are likely to become services-oriented in the medium-term (3 to 5 years)
Timeline
Virtualization & Automation
Via Public Clouds
Traditional Data Center
IT as a Service
Via Private Networks
Large scale, common, standard IT functions (e.g., email, storage)
� Application as a service
� Compute as a service
� Storage as a service
� Desktop as a service
� Business process as a service
Hosted Infrastructure
Users build/configure their own applications, but rely on managed infrastructure service providers to deploy, run and maintain complex infrastructure
Client/server on premise model
Data Center Consolidation
IT resources consolidated into large data centers
© 2010 IBM Corporation37 IM AR
Cloud Enables Global Industry Transformations
© 2010 IBM Corporation38 IM AR
In summary…
� Cloud computing is a disruptive change to the way IT services are delivered
� Without a strategy, Cloud computing can be a threat to the CIO and IT team
– IT services delivered over the Internet – Perceived cost gap between a cloud service and
traditional IT– “The next client/server”
� With a strategy, Cloud computing is a huge opportunity for the CIO
– Lower cost of delivery for some workloads– More responsive IT– Ability to optimize delivery using traditional, private
cloud, and public cloud– Greater visibility in billing / chargeback to LOBs– Greater range of available services, applications, and
capabilities
© 2010 IBM Corporation39 IM AR39
IBM developerWorks: Your entry point
� Logon to IBM developerWorks to access IBM Development & Test Cloud and all IBM and Business Partner offerings to help you develop and enable cloud services.
ibm.com/developerworks/spaces/cloud
© 2010 IBM Corporation40 IM AR
© 2010 IBM Corporation41 IM AR
Obrigado!
� Cezar Taurion
� www.ibm.com/developerworks/blogs/page/ctaurion
� www.computingonclouds.wordpress.com