Lessons Learned: Business agility through open standards & cloud

1. Dr. Angel Luis Diaz (aldiaz@us.ibm.com)
Vice President of Software Standards and Cloud for IBM Software Group
Lessons Learned: Business agility
through open standards & cloud
© 2011 IBM Corporation

2. Businesses globally are facing an unparalleled
rate of change…
Differentiate their
products and services
80%
of CEOs anticipate turbulent
change & bold moves
React with
agility to
Enable business competitive
flexibility
landscape
Manage business Execute with
Achieve
desired
64%
of CIOs are expected to work
transformation reduced risk
& cost business with business executives to drive
outcomes innovation & manage change
React to rapid
market shifts
Proactively address changing
regulatory mandates
54%
IT budgets were spent on ongoing
operations and maintenance costs,
limiting investments in innovation
* Source: IBM CEO Study
2 © 2011 IBM Corporation

3. Cloud computing is changing the economics of IT and speeding
the delivery of innovative products & services
Improve the speed, Improve security and
agility and dexterity compliance control
of business postures
.
Deliver IT Deliver new
without business value
boundaries in real time
Standardization, normalization, and reduction of unnecessary complexity
3 © 2011 IBM Corporation 3

4. CIO: Significant growth in hybrid cloud is driving the
need for interoperability and openness
Technology Features Most Often Rated As Differentiators Worth Paying
Extra For
% Selecting
Ability to predict hardw are failures and migrate w orkloads before
37%
failure occurs
Availability of a single tool to manage a heterogeneous Cloud
34%
environment
60%
Fault tolerance and high availability 32%
Dynamic scaling that automatically allocates additional resources to
32%
existing virtual machines as w ork
An extensible architecture that is easy to integrate w ith existing
31% of CIOs plan to use
systems
cloud, up from 33%
Cloud management solution that provides high automation and
availability across data center environments
29% two years ago
Ability to manage a geographically distributed Private Cloud
29%
environment through a centralized management system …the majority being
Security for multi-tenancy environment 28%
hybrid environments
Netw orking resource allocation and management 27%
* Source: 2010 STG Private Cloud Study (Q3-Q5b) * Source: IBM CEO Study
4 © 2011 IBM Corporation

5. Non-IT Executives: Significant growth in hybrid cloud
is driving the need for interoperability and openness
60%
of CIOs plan to use
cloud, up from 33%
two years ago
…the majority being
hybrid environments
Oct 2010
* Source: IBM CEO Study
5 © 2011 IBM Corporation

6. … but not all cloud projects are successful … surprised?
Organizations begin Cloud projects
with high hopes, but
• Wrong approach / wrong project
• Lack of communication /
collaboration / coordination /
standardization
can lead to project failure
IBM can help you leverage best practices harvested from
years experience and 2,000+ client engagements to ensure
success with your projects
6 © 2011 IBM Corporation

7. Discussion agenda
1. A new approach to standards as an
ingredient to ensure cloud project
success.
2. Lessons learned: 9 Steps to
Successful Adoption of Cloud
Computing.
3. IBM Smart Cloud can help you get
started.
7 © 2011 IBM Corporation

8. Why open cloud computing? Standards allow enterprises to
manage change across market evolution cycles
Advent of
Social Cloud
SOA Business
Architecture
Business
Service Agility
Rise of the Orientation
Application
Dawn of Server
Worldwide
Web
Open Virtualization Format,
Open Social, Cloud Management,
HTML 5, Cloud Audit, Reference
CMIS, Architecture,
SOA Governance OpenAjax, Cloud Standards Customer
BPMN, Framework, OAuth, … Council…
Web Services, SBVR, SOA Reference
SCA, BPEL, RIF, … Architecture, …
SAML, XACML …
Java, Java EE,
XML, XML Schema,
HTTP, HTML, SOAP,
WSFL, XLANG, WSDL,
UML,
Cloud builds on and leverages the standards which
REST…
Web2.0, ... preceded this market cycle
8 © 2011 IBM Corporation

9. Open standards: Invention? or Reinvention?
reinventing standards OR using existing standards
vendor-driven standards OR customer-driven standards
proprietary clouds OR open, interoperable clouds
Or is it somewhere in between…?
9 © 2011 IBM Corporation

10. A smarter approach to standards development
Innovative Practical
Open standards for cloud: Business success is not
Invention? Reinvention? theoretical. Practical
Cloud computing is cloud computing is grass
changing the economics of roots plain and simple: it
IT and requires a involves leveraging real
rethinking of how we all world implementations of
engage in standards standards & open source
development
User-driven Architectural
The members of the Standards allow
Cloud Standards enterprises to manage
Customer Council create change across market
a cross-industry view into evolution cycles
market-leading Cloud extending the value of
use cases and best customers’ services
practices based architectures and
investments
10 © 2011 IBM Corporation

11. Engaging the customer via the Cloud
Standards Customer Council
IBM is a founding member of the Cloud
Standards Customer Council which: 230+
• Provides guidance to the multiple cloud companies are
standards-defining bodies participating
• Establishes the criteria for open-standards-based
cloud computing
• Delivers content in the form of best practices,
case studies, use cases, requirements, gap analysis
and recommendations for cloud standards
50%
operate outside
• 2011 Deliverables: the IT realm
Practical Guide to Cloud Computing,
Cloud Computing Use Cases,
Cloud Computing Business Patterns.
11 © 2011 IBM Corporation

12. On October, 2011 the CSCC produces its first deliverables!
Practical Guide to Cloud Computing Eight Cloud Computing Use Cases
• IaaS Use Cases
• Application On-Boarding
• Virtual Environment Management
• Hybrid Cloud Management
• Storage Capacity
• PaaS Use Cases
• Policy-driven Application
Management
• Development & Test – Problem
…a prescriptive nine step plan Determination
for success being leveraged by • Development & Test – Application
clients today. Promotion
• Database as a Service
World wide launch & public release webcast hosted
by Melvin Greer (Lockheed Martin – CSCC Steering
Group Chair) on Oct 5, 2011
[1] http://www.cloudstandardscustomercouncil.org/CSCC_PG2CC-10-04-11.pdf
[2] http://www.cloudstandardscustomercouncil.org/use-cases/CloudComputingUseCases.pdf
12 © 2011 IBM Corporation

13. CSCC use cases & adoption guide provide context to standards
Architecture Business Services Industry solutions
The Open Group (TOG) Cloud Architecture Social Business Standards: Apache Shindig, Retail Cloud Standards in ARTS
The Open Group SOCCI OpenSocial, HTML5, Activity Streams, CMIS, Education Sector: The IBM Cloud Academy,
TMForum Cloud Architecture WG OAuth, OpenID EDUCAUSE, NACUBO
Management Workload services
Topology Orchestration Services for PaaS APIs
Cloud Applications (TOSCA) DBaaS APIs
DMTF Open Virtualization Format
(OVF)
OpenStack
DMTF Cloud Software License
DMTF/TMF cloud SLAs and network
Integration
Linked Data & OSLC
Operations Support Security
DMTF Cloud Infrastructure Management DMTF Cloud Audit Working
Interface (CIMI) OASIS Cloud Identity Management Technical
SNIA CDMI Committee
Open source API Adapters Cloud Security Alliance
13 © 2011 IBM Corporation

14. Discussion agenda
1. A new approach to standards as an
ingredient to ensure cloud project
success.
2. Lessons learned: 9 Steps to
Successful Adoption of Cloud
Computing.
3. IBM Smart Cloud can help you get
started.
14 © 2011 IBM Corporation

15. A practical guide to cloud computing
Goal: Collaborative effort that brings together diverse
customer focused experiences and perspectives into a
single guide for IT and business leaders who are
considering cloud adoption.
Table of Contents:
Introduction
A Rationale for Cloud Computing
Cloud Computing Vision
Roadmap for Cloud Computing
Summary of Keys to Success
Timeline
April 7 – CSCC Launched
June 7 – Practical Guide Launched
Oct 10 – Practical Guide Published
15 © 2011 IBM Corporation

16. 9 Steps to successful adoption of cloud computing
1. Assemble your (cloud consumer) decision team
2. Develop business case and an enterprise cloud strategy
3. Select cloud deployment model(s)
4. Select cloud service model(s)
5. Determine who will develop, test and deploy the cloud services
6. Develop a proof-of-concept before moving to production
7. Integrate cloud solution(s) with existing enterprise services
8. Develop and manage Service Level Agreements (SLA)
9. Manage the cloud environment
16 © 2011 IBM Corporation

17. Grounding the advice on a real success story!
North Carolina State
University, circa 2004
"We reached a critical point – at a time when we were confronting serious
challenges to the campus’ student computing model, the NC Supercomputing
Center closed due to state funding cuts. Unfortunately, only 50% of the amount
needed to solve both problems was available, leaving us with the option of doing
both services poorly or inventing a novel solution without any reassuring evidence
that one existed. We chose latter course of action, daunting being preferable to
failure, and the rest is history.”
Mladen A. Vouk, Head of Computer Science, and Associate Vice-Provost for Information
Technology
Samuel F. Averitt, Vice Provost Information Technology
17 © 2011 IBM Corporation

18. 1. Assemble your (cloud consumer) decision team
Bringing IT and line of business together to leverage the cloud
Strategic • Vision Business leaders will
(CEO/Senior • Terms of reference leverage cloud to increase
Management) • Guidelines sales/revenues
Senior management
leadership is critical
– Make final decisions
– Accountable for
Tactical • Business Analysis success
(CIO/CTO) • Technical Analysis
Technical leaders drive
detailed business and
technical analysis
Legal / Admin integral to
team support
Operational • Procurement
(IT, Finance • Implementation Education is important at
• Operation all levels and varies by
etc.) recipient
18 © 2011 IBM Corporation

19. Cloud business model - “change or change not, there is
no try” - it’s a paradigm shift or not
How did NC State break down the silos and
disrupt the status quo?
• Technical – IT orthogonal to campus needs
• make relevant – sandboxes & fortresses
• Operational - server hugging, emotionally
satisfying but an economic train wreak
• circa 2004 inspection - ”campus is littered
with dead and dysfunctional clusters”
• Political - the “not invented here” phobia
• take wins - the willing and the desperate
• get out of middle – customer choice
• don’t be part of problem—gatekeeper
versus enabler
• let a winning solution speaks for itself
Focus on business outcomes - customers vote with their “feet”
19 © 2011 IBM Corporation

20. 2. Develop business case and an enterprise cloud strategy
Strategic plan reduces potential impacts and facilitates future decisions
Key Elements of Strategic Planning
Educate the team All team members (IT, business, operations, legal) must be educated
on what cloud computing is and what it is not
Consider the existing IT environment Develop a complementary cloud adoption strategy focusing on
integrating and leveraging existing technologies and standards
Understand required services and Determine business justification and potential ROI and/or potential
functionality new revenue opportunities
Establish a long term plan Reduce risk of vendor lock in and disconnected cloud services –
avoid increased integration and maintenance costs
Identify clear success goals and Define benchmarks for the existing service. Ensure objective of
metrics to measure progress implementing new cloud service has been achieved. Metrics need to
be agreed to by executives
Understand Legal/Regulatory Consumers must understand responsibilities associated with national
Requirements and supra-national obligations. Examples include:
• Physical location of the data
• Data Breach
• Personal Data Privacy
• Intellectual Property, Information Ownership
• Law Enforcement Access
Track results for an extended time Identify trends that may need to be addressed to improve existing
service
20 © 2011 IBM Corporation

21. TCO - it’s your business, what’s your use case
People – must move up the value chain
Make the case for how
people can better work
together in their value
chain to exceed market
demands.
pr
o
st
du
co
ct
ivi
yt
Time, Impact, Duplication Value, Use
Infrastructure Business
ize
op
im
professionals professionals
tim
in
ize
m
People
Operate, Maintain, Sustain Available, Usable, Relevant
21 © 2011 IBM Corporation

22. 3. Select cloud deployment model(s)
Establish criteria for selecting the right deployment model
Private (on-site) Private (outsourced) Public
Criticality of cloud Mission critical, security Mission critical, security Non mission critical
services sensitive services sensitive services services
Migration costs Managing cloud software Lower costs since cloud Similar to private
may incur significant costs hardware and software (outsourced) with
provisioned and managed additional security
by provider precautions to be taken
into account
Elasticity Limited resources are Extensive resources are Generally unrestricted in
available. Computing and available their size
storage capacity fixed.
Security threats Implement same level of Techniques need to be Limited visibility and control
security as non-cloud applied to subscriber's and over data regarding
resources provider's perimeter security
Multi-tenancy Clients would typically be Similar to those for Private Single machine may be
members of the subscriber (on-site) cloud shared by the workloads of
organization any combination of
subscribers
22 © 2011 IBM Corporation

23. 4. Select cloud service model(s)
Many organizations face the challenge of staging a gradual adoption of cloud
capabilities, incrementally advancing their IT environment
Large Organizations Small / Medium Business
IaaS - Primary consideration is Private (on-site) provides a good May not be feasible given
capital expense reduction and initial transition to IaaS with insufficient ROI associated with
access to IT capacity that would relatively low risk consolidating a relatively small
otherwise not be available Private (outsourced) and Public number of existing IT assets
can potentially deliver added
A direct move to SaaS may be
business value
advisable for many SMBs
SaaS - Benefit from the “pay-as- Consider SaaS initially for non- Evaluate and identify business
you go” concept, with highly critical business functions to processes that can be
scalable offering flexibility to deliver improved ROI enhanced by cloud-based
companies to provision and de- Adopt new disruptive SaaS applications to improve
provision based on business solutions to maintain or extend competitiveness with larger
needs competitiveness organizations
PaaS - Integrated development Analyze PaaS offerings in terms of Assess in-house development
and runtime platform optimized for TCO / ROI and risks such as resource to justify the expense
creating, deploying and managing vendor lock-in, interoperability, of a PaaS environment
cloud applications existing IT infrastructure A direct move to SaaS may be the
best alternative for many SMBs
23 © 2011 IBM Corporation

24. Decision points for the NC State Virtual Computing Lab
Service Architecture Ownership
Open
Private
Standards
HaaS AaaS
IaaS PaaS
Public Proprietary
The NC State cloud service model decision involves three key questions:
what’s the service type, the architecture, and the ownership model.
DMTF Open Virtualization Format (OVF) - http://www.dmtf.org/standards/ovf
The Open Group (TOG) Cloud Architecture - http://www.opengroup.org/cloudcomputing
24 © 2011 IBM Corporation

25. 5. Determine who will develop, test & deploy cloud services
Maximize resources to accelerate Cloud adoption
Options
– In-house development and deployment
– Cloud provider development and deployment
– Independent cloud service development provider
– Off the shelf cloud service offerings
Critical factors
– Cost
– Responsiveness
– Flexibility
Considerations
– Available skills
– Start up considerations
– Updates to existing services
– Testing / deployment
25 © 2011 IBM Corporation

26. 6. Develop a proof-of-concept before moving to production
POC is critical to validating that proposed cloud services deliver required
functionality and meet expected ROI
Steps for successful POC
– Assemble the team
– Develop the service
– Verify the cloud service delivers the requisite functionality
– Verify that all processes work (simulate transactions)
– Verify data recovery activities
– Ensure Help Desk can address questions / problems
– Develop a back out plan to manage migration to production problems
– Identify the migration team to manage transition to production
26 © 2011 IBM Corporation

27. 7. Integrate with existing enterprise services
Seamlessly integrating cloud services as an extension of the Enterprise
Cloud is not a complete replacement of the enterprise
– Cloud services will need to interface with existing and future
enterprise services
Integration strategy must accommodate future cloud services
– Plan must address ease of integration / interoperability of services
Risks of failing to develop an integration plan
– Increased development costs and time to market
– Increased maintenance costs
– Reduced flexibility to integrate new services
– Increase costs and time to migrate service to a new cloud provider
– Higher costs to establish a disaster recovery plan
27 © 2011 IBM Corporation

28. 8. Develop and manage Service Level Agreements (SLA)
Key Elements of SLA Management
Assign core SLA team • Must consist of members from IT, business, operations and legal
• Must also understand the expectations of the cloud service
Develop SLA for contracted • Identifies elements which are critical to protecting the ongoing
service operations of the enterprise
• SLA sets expectations for when issues must be resolved, and spells
out any penalties and an exit strategy should the cloud provider not be
able to meet the terms of the SLA
Define critical processes with the • Process to ensure issues which cause service to perform outside of
cloud provider the agreed to performance levels are resolved consistent with the SLA
• Escalation process to elevate the visibility of issues, depending on
impact, to the appropriate parties in both the cloud consumer and cloud
provider organizations
Schedule regular review meetings • Objective is to review SLA status on an on-going basis
with key stakeholders within the • Increasing important as more cloud services are being implemented
enterprise and/or the number of cloud providers increases
Schedule regular checkpoint • Establishes ongoing dialogue to ensure problems are addressed
meetings with cloud provider before they become major issues
• Establish a trail on the status of the elements of the SLA
Maintain a continuous level of • SLA does not absolve the cloud consumer of all responsibilities
responsibility • Ongoing vigilance required to ensure that enterprise users continue to
receive expected level of service
28 © 2011 IBM Corporation

29. Standardized customization - a business differentiator
The Case for Radically Dynamic Customization
Normalization of Extremes
TinkerPlot to supernova simulations
DEFCON 9 Addressing Equity
Biosurveillance: Crossing the digital
potential but divide
improbable cataclysm
29 DMTF Cloud Management Working Group © 2011 IBM Corporation

30. 9. Manage the cloud environment
Ensuring that the right people understand that the cloud services are meeting
expectations.
Both technical and customer support must be considered
Shared responsibility
– Enterprise (CIO and customer support)
– Cloud provider
SLA will establish process for:
– Identifying problems
– Establishing who is responsible
– Defines resources responsible to resolve the problem (from both
consumer and provider)
Metrics are important
– “People do what you inspect, not what you expect!”
– Understand trends with existing services
Identify changes to improve ROI, customer satisfaction
30
– Establish baseline for future services © 2011 IBM Corporation

31. Keys to success
Establish
executive
support
Define
Address
metrics and
organization
process for
change
measuring
mgmt.
impact
Address
legal & Keys to Adopt open
regulatory Success standards
requirement
Develop
Rationalize
Service
security and
Level
privacy
Agreement
Address
federated
governance
31 © 2011 IBM Corporation

32. The value of the cloud is in what it can do for NC State
LOW HIGH
Effective
think HIGH
Differentiate
Strategically
Creatively
act
Replicate
Efficient
LOW
Predictively
React Anticipate
Logistically
Incremental Change – evolution vs. revolution
32 © 2011 IBM Corporation

33. Pop quiz: What are your lessons learned?
33 © 2011 IBM Corporation

34. Discussion agenda
1. A new approach to standards as an
ingredient to ensure cloud project
success.
2. Lessons learned: 9 Steps to
Successful Adoption of Cloud
Computing.
3. IBM Smart Cloud can help you get
started.
34 © 2011 IBM Corporation

35. IBM Cloud Solutions
Foundation Services Solutions
Private & Hybrid Clouds Managed Cloud Services Cloud Business Solutions
Cloud Enablement Technologies Infrastructure and Platform as a Service Software & Business Process as a Service
Enables private/hybrid clouds Secure and scalable cloud Accelerate businesses
and the virtualization, platform for deploying impact and grow revenues by
automation and management applications in minutes leveraging Cloud business
of cloud services. versus weeks applications
Commitment to open standards and a broad ecosystem
35 © 2011 IBM Corporation

36. IBM SmartCloud Foundation
An integrated set of technologies for enabling private/hybrid clouds and
the virtualization, automation and management of service delivery.
• Resilient to the velocity of
changing business needs
• Choice and flexibility in hybrid
environments
• Enterprise-class, workload
aware infrastructures
• Built-in analytics for improved
insight, planning and decision
making and Virtualized Standardized Automated
36 © 2011 IBM Corporation

37. IBM SmartCloud Services
A managed service platform enabling the flexible, secure and immediate
leverage of core platform and infrastructures capabilities.
An IaaS with enterprise-class Services
governance, administration and
management control
Enterprise PaaS with unprecedented
choice in app development,
deployment and management
The most complete set of automated
and integrated services to support
enterprise applications
Real business-centric SLAs that align
IBM accountability to your business
Multiple delivery models allow clients
to optimize against economics,
integration, security and control
37 © 2011 IBM Corporation

38. IBM SmartCloud Solutions
Provides immediate access to software as a service enabling organizations
cost-effectively reinvent business by transforming business processes
Smarter Commerce on Cloud to
help companies accelerate their ability to Solutions
transform the entire customer experience
Smarter Cities on Cloud to help cities
of all sizes leverage information, anticipate
problems and coordinate resources to deliver
exceptional service to their citizens
Business Analytics on Cloud to
help companies accelerate their ability to turn
information into insights
Social Business on Cloud to
integrate the collective knowledge of people-
centric networks to accelerate decision-
38
making and increase innovation © 2011 IBM Corporation

39. IBM is building an ecosystem designed to enhance our
enterprise class capabilities as well as to scale into new markets
Cloud Infrastructure Providers Cloud Application Providers Cloud Services Providers Cloud Technology Providers
Leveraging the IBM Cloud to Delivering standardized SaaS Create customized client Extending the function
provide IaaS/PaaS capabilities solutions on IBM SmartCloud solutions running on the IBM and value of IBM SmartCloud
SmartCloud
Cloud Builders
Creating customized private
cloud solutions for client and
provider infrastructures
39 © 2011 IBM Corporation

40. Cloud in action: Citigroup
Benefits:
Accelerating development and delivery using the cloud
Increased server
The need: capacity 12x
Dramatically reduce time to market
Make the company’s 20,000 developers more productive
“Slashed server
Boost utilization rates and improving operational efficiencies.
provisioning times from
45 days to less
than 20 minutes”
The solution:
-Jonathan Moore Senior
Built a private cloud using IBM lifecycle services Vice President, Citigroup
management software solutions.
Enable self-service request, automated provisioning,
and internal chargeback capabilities
40 © 2011 IBM Corporation

41. Cloud in action: Newly Weds Foods
Benefits:
Global food company connects in cloud to improve customer
service
Speeds communication
The need: The solution: response rate from
• A tool to connect • IBM LotusLive Social Business cloud days to hours
geographically dispersed teams services to enable culinary team to share
without the capital expense and information and ideas quickly and Saves 4-5 days per
staff needed to run an in-house easily -- regardless of the time or location month in travel time and
solution 10% on travel cost
• Enables Chefs to find and connect with
• Security to protect proprietary other chefs around the world, to store Eliminates time zone
information and safeguard and share recipes and demos, and to barriers to productivity
client recipes host web meetings with clients
Unique no-cost "guest
account" model lets their
clients easily collaborate
on recipe ideas
"Being able to connect our culinary chefs in the cloud is invaluable when talking about
customer service. Someone who was once isolated now has access to information they might
otherwise not have so they can make better decisions, faster and can get client questions
answered more quickly."
- Bob Brindza, SOA Business Analyst, Newly Weds Foods
41 © 2011 IBM Corporation

42. IBM is providing a market leading combination of technology,
expertise and reach help our clients succeed with Cloud
deployments & business outcomes
of Fortune 100
companies are using
IBM cloud capabilities.
“IBM has one of the most comprehensive cloud portfolios.” IBM Cloud Labs
– Jeff Vance, Datamation IBM SmartCloud Centers
42 © 2011 IBM Corporation

43. Take action on your cloud journey
Contact your local IBM sales rep
Visit the IBM Cloud virtual briefing center for
more information on our capabilities
https://events.unisfair.com/rt/ibm~cloudlaunch
Use the Cloud Adoption Advisor to identify
cloud adoption opportunities
http://www.ibm.com/cloud/advisor
View demos of IBM Workload Deployer
http://tinyurl.com/iwdDemos
http://www.youtube.com/watch?v=c4YEvw6BqnM
Join the Cloud Standards Customer Council for practical
advice on architecting your open cloud
http://www.cloud-council.org/m-application-abb.htm
www.ibm.com/smartcloud
43 © 2011 IBM Corporation

44. 44 © 2011 IBM Corporation

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45 © 2011 IBM Corporation