Ibm Smart Business Overview Jimmy Mills

IBM cloud computing

Smarter Planet: Using cloud computing
to deliver innovation and efficiency

Jimmy Mills
Global Cloud Sales Engagement Executive
860.436.4646
jimmills@us.ibm.com

Document number

© 2010 IBM Corporation

IBM cloud computing

The world is getting smarter – more instrumented,
interconnected, intelligent.

Smart Intelligent Smart food Smart Smart energy Smart retail
traffic oil field systems healthcare grids
systems technologies

Smart water Smart supply Smart Smart Smart Smart cities
mgmt chains countries weather regions

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IBM cloud computing

As the planet gets smarter the information explosion and rapid
change create new challenges

Digital data is projected to grow Global Internet traffic volume
tenfold from 2007 to 2011 expected by 2013

Number of devices will be Percentage of CIOs who expect
connected to the Internet by 2011 to face substantial change over
the next three years

3 © 2010 IBM Corporation
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IBM cloud computing

Yet today’s IT infrastructure is under tremendous pressure
and is finding it difficult to keep up…
It will reach a breaking point

In distributed computing Percentage of executives who report
environments, up to 85 percent a security breach and aren’t confident
of computing capacity sits idle they can prevent future breaches

70 percent is spent on Percentage of CIOs who want
maintaining current IT to improve the way they use
infrastructures versus adding and manage their data
new capabilities

4 © 2010 IBM Corporation
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IBM cloud computing

There is a greater need for IT to help address business
challenges

Doing more with less
Reduce capital expenditures and operational expenses

Reducing risk
Ensure the right levels of security and resiliency
across all business data and processes

Higher quality services
Improve quality of services and deliver new services
that help the business grow and reduce costs

Breakthrough agility
Increase ability to quickly deliver new services to capitalize
on opportunities while containing costs and managing risk

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IBM cloud computing

There are three ways to deliver IT capabilities

Software, hardware Pre-integrated systems Provided as
and services and appliances services…

…including cloud computing, a new model
for delivering and consuming IT capabilities

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IBM cloud computing

What is different about cloud computing?

Without cloud computing With cloud computing

• Software
• Software • Storage
• Hardware
• Software • Hardware • Networking
• Storage
• Hardware • Networking
• Storage
• Networking
 Virtualized resources  Location
 Automated service independent
management  Rapid scalability
 Standardized services  Self-service
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IBM cloud computing

Cloud computing delivers IT and business benefits

Virtualized
Higher utilization
Economy of scale
benefits Doing more with less
Lower capital expense
Lower operating expense
Standardized
Easier access
Flexible pricing
Reuse and share Higher quality services
Easier to integrate
Automated
Faster cycle times
Lower support costs
Optimized utilization Breakthrough agility and
Improved compliance reducing risk
Optimized security
End user experience
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IBM cloud computing

IT benefits from cloud computing are real

Results from IBM cloud computing engagements

Increasing Test provisioning Weeks Minutes
speed and
Change management Months Days/hours
flexibility
Release management Weeks Minutes

Service access Administered Self-service
Standardization Complex Reuse/share

Metering/billing Fixed cost Variable cost

Reducing Server/storage utilization 10–20% 70–90%
costs Payback period Years Months

SOURCE: Based on IBM and client experience. © 2010 IBM Corporation
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IBM cloud computing

Companies have different motivations for leveraging cloud

Analytics & Time to Value Employee Risk &
Security Productivity Compliance
Operations support 9
major commands, Creates an Enable collaboration 34,000-employee
nearly 100 bases, & ecosystem for PayPal across 300K global bank deploying a
700,000 active military 3rd Party developers employees as well as its private cloud from
personnel around the network of customers, IBM to centralize
world. Design secure Reduces developer partners and suppliers. management of
cloud infrastructure for effort to deploy a work Saving 30 minutes per desktops via an
defense & intelligence environment with day or 120hr per year enterprise class data
networks; insights seamless PayPal Test per person. center rather than at
about cyber attacks, Sandbox access
the user stations,
network, system or IBM LotusLive has 18 Gets greater remote
application failures, million users in 99 flexibility without
while automatically countries sacrificing control to
preventing disruptions. improve efficiency.

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IBM cloud computing

How can clients think about their cloud journey?

Build
 Design and construct
 Quality assurance (test)
 Security and compliance
 Lifecycle management
Plan
 Understand strategic direction
 Analyze workloads
 Determine delivery model
 Define architecture
 Build the business case Deliver
 Deploy
 Consume
 Manage
 Optimize

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IBM cloud computing

IBM provides a comprehensive set of capabilities
to accelerate your cloud journey

Technologies
to plan, build, deliver and manage
cloud services
Cloud services
to optimize your business

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

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IBM cloud computing

Create a roadmap for cloud as part of the existing IT
optimization strategy

Standardize
and automate
 Standardize services
Virtualize  Reduce deployment
cycles
 Remove physical  Enable scalability
resource boundaries  Flexible delivery
Consolidate  Increase hardware
 Reduce infrastructure utilization
complexity  Reduce hardware
 Reduce staffing costs
requirements  Simplify deployments
 Manage fewer things
better
 Lower operational costs

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IBM cloud computing

Adoption of cloud computing will be workload driven
 Workload characteristics determine standardization

Test for Standardization Examine for Risk Explore New Workloads
 Web infrastructure  Database  High volume, low cost
applications  Transaction processing analytics
 Collaborative infrastructure  ERP workloads  Collaborative Business
 Development and test Networks
 Highly regulated workloads
 High Performance  Industry scale ―smart‖
Computing ... applications
... ...

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IBM cloud computing

Workloads ready for cloud computing
Analytics Desktop and devices
 Data mining, text mining or  Desktop
other analytics  Service/help desk
 Data warehouses or data
marts
Development and test
 Transactional databases  Development environment
 Test environment
Business services
 Customer relationship
Infrastructure
management  Application servers
(CRM) or sales force  Application streaming
automation  Business continuity/
 E-mail disaster recovery
 Enterprise resource planning  Data archiving
(ERP) applications  Data backup
 Industry-specific applications  Data center network capacity
 Security
Collaboration  Servers
 Audio/video/Web  Storage
conferencing  Training infrastructure
 Unified communications  Wide area network (WAN)
 VoIP infrastructure capacity

Source: IBM Market Insights, Cloud Computing Research, July 2009. © 2010 IBM Corporation
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IBM cloud computing

Public and Private Clouds are preferred for different workloads

Top private workloads Top public workloads

 Data mining, text mining, or other analytics  Audio/video/Web conferencing
 Security  Service help desk
 Data warehouses or data marts  Infrastructure for training and demonstration
 Business continuity and disaster recovery  WAN capacity, VOIP Infrastructure
 Test environment infrastructure  Desktop
 Long-term data archiving/preservation  Test environment infrastructure
 Transactional databases  Storage
 Industry-specific applications  Data center network capacity
 ERP applications  Server

Database- and application-oriented Infrastructure workloads
workloads emerge as most appropriate emerge as most appropriate

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

There is a spectrum of deployment options for cloud computing

Third-party Third-party hosted
operated and operated

Enterprise Enterprise Enterprise
Enterprise Enterprise Users
A B
data center data center A B

Private cloud Managed Hosted private Shared cloud Public cloud
private cloud cloud services services

Private Hybrid Public
IT capabilities are Internal and IT activities /
provided ―as a service,‖ external service functions are
over an intranet, within delivery provided ―as a
the enterprise and methods are service,‖ over the
behind the firewall integrated Internet

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IBM cloud computing

There is a spectrum of deployment options for cloud computing

Third-party Third-party hosted
operated and operated

Enterprise Enterprise Enterprise
Enterprise Enterprise Users
A B
data center data center A B

Private cloud Managed Hosted private Shared cloud Public cloud
private cloud cloud services services

 Private  Third-party  Third-party  Mix of shared  Shared
 Implemented operated owned and and dedicated resources
on client  Enterprise operated resources  Elastic scaling
premises owned  Standardization  Shared facility  Pay as you go
 Client runs/  Mission critical  Centralization and staff
 Public Internet
manages  Packaged  Security  Virtual private
applications  Internal network (VPN)
access
 High network
compliancy  Subscription or
 Internal network membership
based

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IBM cloud computing

A framework for cloud computing
Application infrastructure for Business services
delivering cloud services delivered via the cloud Integrated capabilities for
visibility, control,
IT services that are integrated Cloud-based business automation and security
with cloud services solutions for industry- of cloud services
specific processes

Existing services and

Business planning / lifecycle
Industry-specific services

management and security
third-party services

management services
Integrated service
Process Collaboration Analytics
services services services …

Shared middleware services

Infrastructure services

Capabilities to define an
Virtualized and optimized enterprise architecture for
systems storage and business planning/alignment
networking and tools for managing the
lifecycle of cloud services

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IBM cloud computing

Security is among a top concern with cloud computing...
The IBM Security Framework provides a structure to address this concern

Application and process
People and identity Help keep applications secure,
Mitigate the risks protected from malicious or
associated with user fraudulent use, and hardened
access to corporate against failure
resources
Network, server and end point
Data and information Optimize service availability by
Understand, deploy and mitigating risks to network components
properly test controls for
access to and usage of Physical infrastructure
sensitive data Provide actionable intelligence on the
desired state of physical infrastructure
security and make improvements

Professional Managed services Hardware and
services software

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IBM cloud computing

IBM SW technologies for cloud computing
Service Management
 IBM Service Delivery Manager
 Rational Quality Manager
 IBM Cognos® 8 Security
Business Intelligence  IBM Rational AppScan®
 IBM Proventia Virtualized Server Security


Business planning and lifecycle


management services
Integrated service



Shared Services Business Planning and Alignment
 IBM WebSphere® Application  IBM Rational System Architect
Server Hypervisor Edition  IBM Rational Requirements Composer
 IBM WebSphere Cloudburst  IBM Rational Project Conductor
Appliance Lifecycle Management
Databases  IBM Rational® Software Delivery Services
 IBM DB2® -Rational Asset Manager
 IBM Informix®

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IBM cloud computing

Workload optimized systems for cloud computing
A single approach to systems can’t satisfy the specific workload
demands of cloud computing
 IBM Smart Analytics System




management services
Integrated service



 IBM Information Archive
 IBM CloudBurst
 IBM Smart Business for SMB

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IBM cloud computing

IBM Smart Business Cloud Services to help you build and/or
manage a cloud computing deployment
 IBM Smart Analytics Cloud
 IBM Smart Business Development and  Lotus Foundation
Test Cloud




management services
Integrated service



 IBM Smart Business Storage Cloud
 IBM Smart Business Desktop Cloud

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IBM cloud computing

Cloud computing should align the technology that fits best for
the workload and the business including….

…IBM server and storage systems which can securely scale
up or scale out to meet the needs and priorities for a wide
range of workloads

 System x with new ex5 technology for higher
levels of utilization and resource sharing and
iDataplex optimized for flexibility and scale out
computing
 Power Systems with POWER7 for higher
performance and scalability
 System z for higher availability, security and
lower TCO
 Scale out NAS Storage Systems with a highly
scalable file system for unstructured data

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IBM cloud computing

Movement from Traditional Environments to Cloud Can be in
One Step or an Evolution
Clients will make workload-driven
trade offs among functions such as
security, degree of customization,
control and economics

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IBM cloud computing

Cloud service management capabilities are needed to enable
visibility, control and automation of cloud services

Workflow Provisioning
Manage the process Automate provisioning
for approval of usage of resources

Monitoring Metering and rating
Provide visibility Track usage
of performance of of resources
virtual machines

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IBM cloud computing

Ready-to-consume cloud services from IBM

IBM Smart Business on the IBM Cloud

Business processes  BPM BlueWorks  Smart business expense
reporting on the IBM Cloud

Collaboration  IBM LotusLive
Desktop and devices  IBM Smart Business Desktop on the IBM Cloud
 IBM Smart Business End User Support

Development and test  IBM Smart Business Development and Test on the IBM Cloud

Infrastructure Compute  Computing on Demand
Infrastructure storage  IBM Information Protection Services
Software as a Service  IBM Tivoli Live  IBM WebSphere Portal
 IBM WebSphere Application  IBM DB2
Server  IBM Informix Dynamic Server
 IBM WebSphere sMash  Lotus Domino
 Lotus Web Content Mgmt

27

IBM cloud computing

IBM provides services in support of cloud computing

Plan Build Deliver
 IBM Strategy and Change  IBM Implementation Services  Resiliency Validation for
Services for Cloud Adoption for Cloud Computing Cloud Computing
 IBM Strategy and Change  IBM Testing Services for  Virtualization Security
Services for Cloud Providers Cloud Solutions from IBM Internet
Security Systems
 IBM Infrastructure Strategy and  Security Consulting Services
Planning for Cloud Computing in support of Cloud Computing  IBM Software Support
Services – Enhanced
 IBM Resiliency Consulting  Express managed e-mail Technical Support
Services security and Express
managed Web security from  IBM Managed Support
 IBM Data Center and Facilities Services – managed technical
Strategy Services – data center IBM
support
strategy and plan
 IBM Software Support
 IBM Data Center Family™ Services
solutions – data center design
services  IBM Hardware Maintenance
Services
 IBM Networking Strategy and
Optimization  IBM Information Protection
Services
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IBM cloud computing

Businesses that implement cloud computing are seeing
significant results

Reduced IT labor cost by 50
percent in configuration,
operations, management and
monitoring
Improved capital utilization
by 75 percent, significantly
reducing license costs
Reduced provisioning cycle
times from weeks to
minutes
Improved quality, eliminating
30 percent of software defects
Reduced end user IT support
costs by up to 40 percent
Simplified security
management

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IBM cloud computing

Improving collaboration in a large global team

 Achieved new levels of collaboration among
worldwide employees, vendors and partners
 Dramatic savings per year on employee
productivity
 Global, multi-language implementation
Solution
 IBM LotusLive

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IBM cloud computing

Empowering a 34,000-person workforce

 Empowered workers with anytime,
anywhere access
 Improved security with better data
leakage control
 Lowered cost of support and upgrade
Solution
 IBM Smart Business Desktop Cloud

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IBM cloud computing

Capitalizing on new efficiencies

 Reduced labor and infrastructure need to
develop and deploy new services
 Decreased new application deployment time
from 10 weeks to less than 1 week
 Accelerated business transformation
Solution
 IBM CloudBurst service delivery platform

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IBM cloud computing

Taking new capabilities to the marketplace faster

 Established company as leader in industry
 Enabled customers and business partners to
leverage new models more easily and increased
company revenue with new models
 Improve new service development time,
achieving faster time to market
 Improved efficiencies of resources, delivering
reduction in CapEx & OpEx
Solution
 Private cloud built by IBM
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IBM cloud computing

Working together with an ecosystem of IBM Business Partners
to accelerate and optimize your cloud journey

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IBM cloud computing

Why take advantage of cloud now?

We asked IBM clients ―To what degree would each of these
factors induce you to acquire cloud services?‖

Reduce costs
Consider cloud now:
•Hardware savings
77%
or higher •Software license savings  To lower the costs of delivering IT
•Lower labor and IT support costs services
•Lower outside maintenance costs  To deliver flexible IT

Faster time to value  Because your competitors are
already thinking about cloud—
•Relieve pressure on internal resources
72% some are already implementing it
or higher •Simplify updating/upgrading
 Because cloud changes the
•Speed deployment
economics of IT and offers
•Scale IT resources to meet needs competitive advantage

Respondents could rate multiple factors; listed is factors where that percentage or higher of respondents selected that factor
SOURCE: IBM, Dispelling the vapor around cloud computing: New findings from IBM Market Insights, 2009.
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IBM cloud computing

What differentiates IBM in making cloud computing real
New economics Business Demanding New technology Need solutions
with new trade- flexibility results greater speed, experiences with that work and are
offs from IT flexibility control, security faster time to supported
and transparency market consistently.

Clear Secure and Designed
Integrated Globally
economic ready for for
and open relevant
value business simplicity

IBM provides IBM supports IBM provides Cloud From sourcing to IBM has partners,
clear economic industry standards, solutions that are usage to delivery centers,
value and helps has over 8 million completely robust maintenance, IBM and a world-wide
you work through developers, and and secure, based Cloud solutions are network of partners
the right mix of provides a platform on the demanding designed to be in 174 countries.
delivery models for open innovation. needs of today’s simple, intuitive, And we have the
and choices (by businesses: rapid and built based on experience of
workload) to reap provisioning, clear how people running a globally
the maximum visibility of assets, actually work. integrated
benefit. robust data enterprise, so we
governance, and understand what it
seamless mix of takes to make a
delivery models. global company
run. 36

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IBM cloud computing

Cloud is an opportunity—will you be able to take advantage?

 Technology is enabling a smarter planet

 We must face head-on the challenges to
building an effective IT

 Cloud computing is one key way to
address the challenges of a smarter planet

37

IBM cloud computing

Thank you!
For more information, please visit:
http://www.ibm.com/cloud

38

IBM cloud computing

Trademarks and notes

IBM Corporation 2010

 IBM, the IBM logo, and ibm.com, are trademarks of International Business Machines Corp.,
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.
 References in this publication to IBM products or services do not imply that IBM intends to
make them available in all countries in which IBM operates.

39

Ibm Smart Business Overview Jimmy Mills

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