How to get started with private cloud!

1. Integrating Private Cloud into Your
Enterprise
What is the Most IT Economical Way to Build your
Private Cloud for your Enterprise?
Christopher T. von Koschembahr, Senior Management Consultant
IBM Eagle Team - IT Economics Practice
Melissa Maheux @solutionmel
Vice President, Sales TriDatum Solutions

2. Please Note:
2
• IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole
discretion.
• Information regarding potential future products is intended to outline our general product direction and it should not be relied on in
making a purchasing decision.
• The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any
material, code or functionality. Information about potential future products may not be incorporated into any contract.
• The development, release, and timing of any future features or functionality described for our products remains at our sole
discretion.
• Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual
throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the
amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed.
Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

3. • What is Cloud?
• 3 Step approach to cloud
• Implement the Best Hybrid Cloud
• Customer examples
• Partnering with IBM
Agenda
3

4. • Elastic Scaling
– Provision additional servers on demand
On/Off Capacity on Demand
• Faster Time to Value
– Self Service purchase and provisioning of cloud resources in minutes
Self Service Implemented on Private Cloud via IBM Cloud Orchestrator
• Resiliency
– Cloud providers monitor and manage cloud instances
– Multiple availability zones enable easy DR
Built in RAS, Parallel Sysplex, CBU Capability, PowerHA, Geo Clustering
• Lower TCO
– Low instance costs on Public Cloud
Private Cloud on IBM Enterprise Servers provide a lower TCO
What is Cloud?
4
IBM Enterprise Servers have these features already built-in

5. 5
Cloud Types and Offerings
M anaged
Private Cloud
Your Equipment
Someone Else's
resources
H osted
Private Cloud
Trusted 3rd Parties
Equipment and Resources
Dedicated Hardware
Shared
Cloud Services
Trusted 3rd Party
Shared Services,
Software
Private Cloud
YourEquipment
Your Resources
Public
Cloud Services
Trusted 3rd Party
Shared Infrastructure
H ybrid Cloud
Cloud models defined by
•SLA ownership*
•On-Prem vs. Hosted
•Tenancy**
*- Public cloud providers typically
do not provide a strong SLA.
There are no guarantees for
uptime, provisioning, bandwidth
etc.
** - Multi-tenant instances are
prone to performance issues
due to noisy neighbors
You may already have a Private Cloud!

6. 6
IBM Enterprise Servers vs. Public Cloud
Similar Considerations as Offload to x86
Value Proposition Enterprise Servers Distributed (x86 based)
servers /
Off-Prem Private Cloud on
SoftLayer
Public Cloud Servers
Software Costs Low
(fewer cores)
High
(more cores)
High
(more cores)
Admin Cost per workload Low Medium/Low High
(DevOps costs can add up)
DC Costs Low Medium/None N/A
(built in)
Reliability Very High Medium Low in most cases
SLA Ownership High
(controls delivery)
High
(controls delivery)
Low
(no control)
Network and Bandwidth
costs
Low Medium/Low High
Capital Outlay Capex Capex/Opex Mainly Opex
Provides lowest cost or risk
Drives highest cost or risk
Incurs incremental cost or risk

7. • Step 1 – Perform a Health Check
• Step 2 – Adopt new IBM Offerings to enhance your Private Cloud
• Step 3 – Speak the “Language of the Cloud”
3 Step Approach to the Best Private Cloud
7
Embrace Hybrid Clouds using SoftLayer Off-Prem Private Cloud!

8. • Evaluate your best practices
– Are your servers configured correctly?
• Evaluate your HA and DR confirmation
• Take advantage of Parallel Sysplex, Power HA etc.
• Ensure correct LPAR configuration
• Fit for Purpose – choose the right platform for the right task
– Have you benchmarked your IT costs?
• Current hardware and software can dramatically lower TCO
– Is your chargeback model aligned with your IT costs?
• Evaluate your SLA
– Easily beat SLA’s (if any) on the public cloud
– Ensure speedy problem resolution
Step 1 – Health Check
8

9. • IBM Cloud Orchestrator
– Integrate with existing environments – OpenStack, PowerVM, VMWare, zVM
– Deliver self-service, provision and scale cloud resources
– Standardize and automate provisioning with patterns
• IBM Wave
– Intuitive graphical workspace with powerful drag-and-drop capability
– Automatically detects all resources in the environment
– Simplify and automate management
• IBM Offerings for Enterprise Power
– PowerVM Enterprise Edition for advanced virtualization and cloud capabilities
– PowerKVM - Open Virtualization for Power Linux Servers
– Open Power Cloud on SoftLayer
• Leverage IBM Hardware and Software bundles
– IBM LinuxONE Solutions for Cloud
– IBM Power Systems Solution Edition for Cloud
Step 2 – IBM Offerings For Your Private Cloud
9

10. • Increase adoption of your Private Cloud with the right terminology
• Your IT team provides “IaaS”, “PaaS” and “SaaS”
– Using a “Self Service” model in most cases
– Reducing “Provisioning Time” from days to minutes
– Your “Chargeback Costs” are “Instance Costs”
– Your “Instance Costs” are lower than Public Cloud Instance costs
– “Instance Costs” include “Cloud Backup and Recovery”
– You have multiple “Availability Zones” implemented via DR sites
• You leverage a “Multi-Tenant” environment to keep costs low
– Your security is better than a public cloud!
Step 3: Speak the “Language of the Cloud”
10

11. • A well run private cloud usually meets most workload demands
• Hybrid (public+private) clouds can augment capacity in some cases
– Seasonal Workloads on Public Clouds without Capex
– Test and QA
• POC/New Workloads that require a large capacity
• Dynamic scaling up and down as development lifecycle evolves
– Commodity IT – Email, Portal etc.
– Temporary capacity for High Performance workloads
• “Cloud bursting” for certain compute intensive workloads (e.g. HPC)
– Growth mode companies – Save CAPEX during growth
Embrace Hybrid Clouds
11

12. • Understand what’s included
– Bandwidth
– Support costs
– Support for the right standards
– Firewalls, load balancers, IP address etc. are not always free
– Instances don’t always include durable storage
• Upfront commitment
– Paying up for reserving instances is CAPEX!
• Instance flexibility
– Can you buy or build an instance to suit your needs?
Selection Factors for Cloud Providers
12

13. Hybrid Cloud with SoftLayer;
The Best Response to Market & Client Demands
13
• Market Demands:
– New Customers = New Geographies
– Seasonal Workloads = Dynamic Scalability
– Capacity to Growt Quickly = Faster Time to Value
• Service Provider Vetting
– Evaluate options, dependencies
– Incumbents, New Entrants
• Engagement Summary
– Overview  Differentiators  Architecture  IT Economics Study

14. Video Conferencing Provider uses Hybrid Cloud with SoftLayer to
expand global presence
Solution
•Move additional workloads to SoftLayer
•Hybrid strategy with On-Prem DB for authentication
•Video conferencing infrastructure on SoftLayer
•Easy scaling when needed
•Lower bandwidth costs
Client
A North American based Video Conferencing Provider
needed to increase global presence globally while
maintaining costs. The client needed a cloud platform
supporting the demanding needs of video conferencing.
Benefit
Softlayer hybrid solution provided lowest TCO, saving an
estimated $0.2M over three years compared to AWS
based solution.
14

15. Solution
•Stay with IBM strategic outsourcing organization
•Continue building out on On-Prem cloud
•Adjust internal charge back costs to reflect actual costs
State Government Agency chooses IBM managed cloud over AWS
Client
A U.S. state government agency running an On-Prem cloud
solution managed by IBM was considering a move to AWS.
Other state agencies cited an abundance of AWS standards
and certification support as a potential reason to use AWS.
Benefit
•Lower TCO demonstrated with existing On-Prem offering vs.
AWS, ~ $20K savings monthly
•IBM demonstrated support for standards that mattered to the
client
•IBM solution includes free bandwidth
•Virtualized On-Prem bare metal servers offer higher value
when compared to AWS instances
Service Managed On-Prem AWS
Hardware $ 299,857 $ 264,960
Storage $ 15,983 $ 6,284
BUR $ - $ 451
Security - NID $ - $ 68,976
DR Testing $ - $ 14,987
Software $ 28,598 $ -
Bandwidth $ - $ 7,987
Total $ 344,438 $ 363,645
Monthly costs
15

16. Solution
•Move workloads to SoftLayer. The company’s On-Prem
(Chicago, IL datacenter) costs for networking, electricity, floor
space and on-site engineering resulted in a higher TCO.
•DR: On-Prem solution necessitated separate DR site.
SoftLayer provided provision of servers in a different DC with
suitable recovery time for non-production workloads.
•HA: A failed instance would be easily replaced at no-cost in
SoftLayer solution.
•Workload usage: SoftLayer costs aligned linearly with scale-up
and scale-down
Midwestern Insurance Company reduces cost of dev/test environment
using SoftLayer
Client
A large insurance company intended to deploy its
dev/test workloads running on four x86 servers to a
public cloud to reduce IT spend. Initial internal analysis
indicated that a cloud solution would be more costly
than deployment in its On-Premises environment.
Benefit
Savings of $148K over five years resulting from use of
SoftLayer to host dev/test workloads with non-production
HA/DR requirements on x86 servers.
16

17. Client
A global services provider with growing geographical demands
used an annual Capex planning model to serve thousands of
clients world wide. Long lead time to deployment was costly and
ineffective for changing demands.
Benefit
•Savings of ~$17.7M over ten years for one set of workloads
by moving to a cloud infrastructure.
•Reduced FTE and Capital expense by aligning IT costs to
time of business demand
•SoftLayer functionality improved time to delivery
Solution
Use Opex cloud model
•Enables rapid growth into new markets
•Quickly provisions workloads when needed
•Avoids pre-provisioning costs
Significant savings resulted from:
• decreased infrastructure usage
• lower HW, OS, middleware costs
• no technology upgrade costs
• operational efficiencies “pay at time of expense”
Global Services Provider chooses SoftLayer to align IT costs
and grow business in new markets
17

18. Cloud Myth Busters
18
• Myth 1: The Cloud is NOT Secure
• Myth 2: Cloud is Always About Money
• Myth 3: Our Company’s Business Does Not Lend Itself to Cloud
Solutions
• Myth 4: We Need One Cloud Strategy / Vendor

19. IT Economics Studies
Use a business case to make a technically and financially based IT decision
Workload Placement Assessment
Consolidate, offload, and place new workloads on alternative platforms
Exploit and compare platform attributes to optimize workload performance and costs
IT Best Practice Benchmarking
Compare actual IT environment with best practices in the IT industry
Improve forecast and actual spend
Chargeback Analysis
Align chargeback policies to actual IT costs
Identify and overcome chargeback policies that drive adverse IT decisions
Cloud Assessment
Perform a Health Check to find the right private, public or hybrid cloud solution
Examine workload size and activity, SLA and provisioning requirements, and instance costs
Analytics Assessment
Determine the most cost-effective infrastructure for analytics solutions
Exploit platform attributes and efficient storage solutions for Analytics and Big Data
Mobile Assessment
Mitigate high-volume, low-value mobile transaction costs
Evaluate the effects of throughput, response time and other KPIs in mobile topologies
Available at no-charge to IBM clients and Business Partners
ITEcon@us.ibm.com
www.ibm.com/iteconomics
https://www.ibm.com/partnerworld/iteconomics
IBM Eagle Team – IT Economics Practice
19

20. An IT Economics study is a business case for your enterprise
• Built with your information and costs
• Specifically tailored to your enterprise
• Shows your return on investment
• Allows you to make a financially based IT decision
Use an IT Economics study to build a business case for your cloud strategy
These are some common scenarios from which clients have benefited from an IT Economics
study.
IT Economics Cloud Assessment
•Trying to determine which applications are cloud friendly?
•Unsure if On-Prem, off-prem or hybrid infrastructure is more cost-effective?
•Looking for an efficient way to manage cloud workloads?
Available at no-charge to IBM clients and Business Partners
ITEcon@us.ibm.com
www.ibm.com/iteconomics
https://www.ibm.com/partnerworld/iteconomics
IBM Eagle Team – IT Economics Practice
20

21. • IBM Enterprise Servers enable you to implement a Private Cloud
– You may already have a private cloud!
• Private Clouds provide similar (or better) benefits than Public Clouds
• Private Clouds usually provide a lower TCO than Public clouds
– Beware of hidden public cloud costs e.g. Bandwidth
• Speak the language of the Cloud to increase adoption
• Leverage the IBM Eagle team and an IBM Business Partner (Tridatum
Solutions) to help you evaluate
Summary
21

22. Notices and Disclaimers
22
Copyright © 2016 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission
from IBM.
U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM.
Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of
initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. THIS DOCUMENT IS
DISTRIBUTED "AS IS" WITHOUT ANY WARRANTY, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGE ARISING FROM THE
USE OF THIS INFORMATION, INCLUDING BUT NOT LIMITED TO, LOSS OF DATA, BUSINESS INTERRUPTION, LOSS OF PROFIT OR LOSS OF OPPORTUNITY. IBM
products and services are warranted according to the terms and conditions of the agreements under which they are provided.
Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice.
Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those
customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary.
References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries
in which IBM operates or does business.
Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials
and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant
or their specific situation.
It is the customer’s responsibility to insure its own compliance with legal requirements and to obtain advice of competent legal counsel as to the identification and
interpretation of any relevant laws and regulatory requirements that may affect the customer’s business and any actions the customer may need to take to comply with such
laws. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the customer is in compliance with any law

23. Notices and Disclaimers Con’t.
23
Information concerning non-IBM products was obtained from the suppliers of those products, their published announcements or other publicly available sources. IBM has not
tested those products in connection with this publication and cannot confirm the accuracy of performance, compatibility or any other claims related to non-IBM products.
Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products. IBM does not warrant the quality of any third-party products, or the
ability of any such third-party products to interoperate with IBM’s products. IBM EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT
NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
The provision of the information contained h erein is not intended to, and does not, grant any right or license under any IBM patents, copyrights, trademarks or other
intellectual property right.
IBM, the IBM logo, ibm.com, Aspera®, Bluemix, Blueworks Live, CICS, Clearcase, Cognos®, DOORS®, Emptoris®, Enterprise Document Management System™, FASP®,
FileNet®, Global Business Services ®, Global Technology Services ®, IBM ExperienceOne™, IBM SmartCloud®, IBM Social Business®, Information on Demand, ILOG,
Maximo®, MQIntegrator®, MQSeries®, Netcool®, OMEGAMON, OpenPower, PureAnalytics™, PureApplication®, pureCluster™, PureCoverage®, PureData®,
PureExperience®, PureFlex®, pureQuery®, pureScale®, PureSystems®, QRadar®, Rational®, Rhapsody®, Smarter Commerce®, SoDA, SPSS, Sterling Commerce®,
StoredIQ, Tealeaf®, Tivoli®, Trusteer®, Unica®, urban{code}®, Watson, WebSphere®, Worklight®, X-Force® and System z® Z/OS, are trademarks of International Business
Machines Corporation, registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM
trademarks is available on the Web at "Copyright and trademark information" at: www.ibm.com/legal/copytrade.shtml.

24. Thank You
Your Feedback is Important!
Access the InterConnect 2016 Conference Attendee
Portal to complete your session surveys from your
smartphone,
laptop or conference kiosk.