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Cezar Taurion
                                    Technical Evangelist




Cloudnomics:The Power of Cloud
Driving Business Model Innovation




 IM AR                                                     © 2012 IBM Corporation
2   IM AR   © 2012 IBM Corporation
História da Computação e da IBM se fundem…




3                          IM AR                 © 2012 IBM Corporation
Inovação na IBM: inserido no DNA corporativo
    The US Patent and Trademark Office awarded IBM an
    average 22.6 patents per working day in 2010, for a total
    5,896.
    6,180 U.S. patents in 2011           IBM e Governo Federal anunciam
                                         centro de pesquisas no Brasil
    The top-10 receivers of patents in 2010,
    according to IFI Claims Patent Services: de 2010 – 19h22
                                        08 de junho


                                               Primeiro da América do Sul.
    1. IBM (5896); United States         Tecnologias para tornar o Planeta Mais Inteligente.
    2. Samsung (4551); South Korea       Sistemas humanos inteligentes para grandes eventos,
    3. Microsoft (3094); United States   como Copa 2014 e Olimpíadas 2016.
    4. Canon (2552); Japan               Sistemas inteligentes para automação de serviços.
    5. Panasonic (2482); Japan           Sistemas inteligentes para descobertas de recursos
    6. Toshiba (2246); Japan             naturais (petróleo e gás) e logística.
    7. Sony (2150); Japan
    8. Intel (1653); United States
    9. LG Electronics (1490); South Korea
    10. HP (1480); United States

4                                      IM AR                                      © 2012 IBM Corporation
Talking about trends....




5           IM AR              © 2012 IBM Corporation
What are general trends in the IT industry?


                                                                                                                  IBM Horizon
             Gartner                        Forrester                            IDC               Ovum           Watch 2012
           Cloud Computing                 Smart Computing                    Cloud              IT Security       Cloud
           Mobile                          Empowerment                        Computing in the   Data              Computing
           Applications &                  Cloud Computing                    Datacenter         Management        Virtualization
           Media Tablets                   IT as Business                     Public Cloud       Business          Social Business
           Next-Generation                 Technology                         Services           Analytics         Mobile
           Analytics                       Mobile Enterprise                  Platform-as-a-     Mobility          Computing
           Social Analytics                Apps                               Service            Datacenter        Big Data
           Social                          Disruption-as-a-                   Enterprise         Transformation    Analytics
           Communications                  Service                            Mobility           Cloud             IBM Watson
           & Collaboration                 HW-SW-                             Free SW, Open      Computing         Human /
           Video                           Appliances                         Source             Collaboration     Computer
           Context-Aware                   Next-Gen                           BPM Platforms      IT and            Interaction
           Computing                       Analytics                          BI and Analytics   Sustainability    Security
           Ubiquitous                      IT and                             Enterprise Data    Drive IT as       Sustainability &
           Computing                       Sustainability                     Social Media       Business          Green IT
           Storage Class                   Social Media                       Smart Devices      Context-Aware     Consumerization
           Memory                                                                                Computing         of IT
           Fabric-Based
           Infrastructure and
           Computers




      Source: Gartner, cio.de, IBM MD Germany, IBM MI, HorizonWatch

6                                                                     IM AR                                                   © 2012 IBM Corporation
7   IM AR   © 2012 IBM Corporation
Cloud is a new Consumption & Delivery Model that relies on the
     industrialization of delivery for IT supported Services

              “Cloud” is:                           “Cloud” enables:

    a new consumption and                          Self-service
    delivery model inspired by                     Sourcing options
    consumer Internet                              Economies-of-scale
    services.




     “Cloud” represents:                             “Cloud” can be:


    The Industrialization of                      Private, Public and Hybrid
    delivery for IT supported                     Workload and/or
    Services                                      Programming Model Specific


8      Cloud Computing - Strategic View   IM AR                         © 2012 IBM Corporation
Cloud computing is more than the sum of the parts…

                                                        Cloud Computing


        Virtualization           +      Standardization          +          Automation            +          Self Service




With                                 With                            With                             With
    Enables flexibility                Simplification                  Low human involvement            User in control
    Increase utilization               Few configurations              Rapid deployment & mgt           Cost and usage choices
    Energy efficient                   Enables automation              Repeatable configuration         Increased visibility
    Soft configuration                 Easier support                  Improves compliance              IT/Business alignment
    Infrastructure abstraction
Without                              Without                         Without                          Without
    Physically constrained             Physically constrained          Manually intensive               Dependency of availability
                                                                                                        of data centre staff
    Capital intensive                  Many configurations             Skill dependent
                                                                                                        Lack of awareness
    Hard configuration                                                 Error prone
    Linked to PO process                                               Costly




9                                                        IM AR                                                     © 2012 IBM Corporation
Standardization, Automation and Self Service have
changed many other industries become more efficient.



       Telcos automate traffic
     through switches to assure
       service and lower cost.


     Manufacturers use robotics
       to improve quality and
             lower cost.


        Banks use automated
     teller machines to improve
       service and lower cost.



10                                IM AR                © 2012 IBM Corporation
Cloud Service Models




                         Financials                             CRM/ERP/HR

     Industry Specific
                                             Collaboration
       Applications

          Software/ Application-as-a-Service

                                    Web 2.0 Applications           Development
         Middleware                                                   Tools
                                         Runtime

                     Database                         Desktop

                         Platform-as-a-Service

                                                    Data Center
           Servers              Networking                             Storage
                                                      Fabric
                 Consolidated, standardised, virtualised,
               shared, dynamically provisioned, automated

                  Infrastructure-as-a-Service

11                              IM AR                                            © 2012 IBM Corporation
A range of deployment options

     Private                                                  Hybrid                                             Public

     IT capabilities are provided                             Internal and external                              IT activities /
     “as a service,” over an                                  service delivery                                   functions are
     intranet, within the enterprise                          methods are                                        provided “as a
     and behind the firewall                                  integrated                                         service,” over the
                                                                                                                 Internet




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



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


12                                                   IM AR                                                              © 2012 IBM Corporation
Cloud Computing Reference Architecture (The Open Group)
      Cloud Service                                                                                                                 Cloud Service Provider                                                                                                                Cloud Service
       Consumer                                                                                                                                                                                                                                                              Creator

                                               Cloud Services                                       Common Cloud                                                                          Service              Business
                                                                                                                                                                                                                                                                              Service
                                                                                                    Management Platform                                                                   Manager              Manager
                                                                                                                                                                                                                                                                             Component
                                                                                                                                                                                                                                                                             Developer
            Consumer End                                                                                                             OSS – Operational Support                           BSS – Business Support
            user                                Existing &
                                                                                                                                     Services                                            Services




                                                                                   BP Mgmt
                                                 3rd party




                                                                                   Interfaces
                                                                    API
                                                services,                 BPaaS                                                                                                                                                                                               Service
                                                 Partner                                                                                      Service Delivery Catalog
                                                                                                                                                                                         Customer       Service       Service                                                Composer
        Cloud Service                                                                                                                                                                     Account       Offering      Offering
         Integration                           Ecosystems                                                                                                                               Management      Catalog     Management
            Tools




                                                                                                                                                                                                                                       Service Development Portal & API
                                                                                                    Service Consumer Portal & API
                                                                                                                                         Service Automation Management
                                                                                                                                                                                        Contracts &      Service                                                              Offering
                                                                                                                                                                                                                      Order
                                                                                  Software Mgmt
                                                                                                                                                                                         Agreement      Request                                                               Manager
             Service                                                                                                                                                                                                Management
                                                                                     Interfaces
                                                                                                                                                                                        Management     Management
                                                            API




             Integrator                                               SaaS                                                            Service       Change &         Image
                                                                                                                                     Request       Configuration    Lifecycle
                                                                                                                                    Management     Management      Management
                                                                                                                                                                                        Subscription                 Entitlement                                          Service Creation
             Consumer                                                                                                                                                                                    Pricing
             Business                                                                                                                               Incident &      IT Service
                                                                                                                                                                                        Management                  Management                                                 Tools
             Manager                                                                                                                Provisioning     Problem           Level
                                                                                                                                                   Management      Management                                                                                                 Service
                                                                                  Platform Mgmt




                                                                                                                                                                                                                                                                            Management
                                                                                     Interfaces
                                                      API




       Consumer In-                                                PaaS                                                             Monitoring &    IT Asset &      Capacity &            Metering       Rating         Billing                                             Development
                                                                                                                                      Event           License      Performance                                                                                                 Tools
         house IT                                                                                                                   Management     Management      Management

        Business
       Processes
                                                                                                                                                                                                                                                                          Service Runtime
                          Service Management




                                                                                                                                                                                         Clearing &     Accounts      Accounts
                                                                                                                                       Platform & Virtualization Management              Settlement     Payable       Receivable                                           Development
                                                                                                                                                                                                                                                                               Tools
                                                                                  Mgmt Interfaces




       Applications
                                                                                   Infrastructure
                                                API




                                                                  IaaS                                                                                                                                                                                                        Software
       Middleware                                                                                                                                                      Service Provider Portal & API
                                                                                                                                                                                                                                                                            Development
                                                                                                                                                                                                                                                                               Tools
      Infrastructure                                                                                                                Deployment            Transition             Operations            Security &                 Customer
                                                                                                                                    Architect             Manager                Manager               Risk Manager               Care
                                                                                                                                                                                                                                                                           Image Creation
                                                                                                                                                                                                                                                                               Tools
             Consumer
             Administrator                                                                                                                         Infrastructure



                                                                             Security, Resiliency, Performance & Consumability
                                                                                                                                        IM AR
 13                                                                                                                                                Governance                                                                                                              © 2012 IBM Corporation
                                                                                                                                                                                                                                                                             2011
Cloud is widely recognized as an increasingly important technology;
adoption is expected to accelerate rapidly in the coming years
          What is Your Organization’s Level of                                                 The Global Cloud Computing Market is
                   Cloud Adoption?                                                           Forecast to Grow 22% per year through 2020
                              % of Respondents
                                                        91%                                   $250B                                                                       $241B

                                                                      Piloting
                                                        21%
                    72%                                                                       $200B

                                                                                                                                    $150B
                                                                      Adopting               $150B
                   38%                                  28%


                                    +33%                                                      $100B

                                                                      Substantially
                   21%                                                Implemented              $50B
                                                        41%
                                     +215%                                                          $41B
                   13%
                                                                                                 $0B
                  Today                                 3 yrs
                                                                                                     2011                            2015                                  2020
                                                                                                     Source: Sizing the cloud, Forrester Research, Inc., April 21, 2011
                                                           Nearly half (48%) of CIOs surveyed evaluate cloud options first, over
                                                           traditional IT approaches, before making any new IT investments
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organisation’s level of
cloud technology adoption today and which do you expect will best describe it in three years?
Sizing the cloud , Forrester Research, April 21, 2011; http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First
14                                                                             IM AR                                                                             © 2012 IBM Corporation
Today, at least two thirds of companies of all sizes are actively
either experimenting with or implementing cloud

                                    What is Your Organization’s Level of Cloud Adoption?
                                                                      % of Respondents; Today
                                                                                                             82%
                                                                                  76%

                                                67%

                                                                                                             43%     Piloting
                                                                                  44%
                                               32%




                                               21%                                                                   Adopting
                                                                                  22%                        34%


                                               14%                                10%
                                                                                                                     Substantially
                                                                                                              5%     Implemented

                                               <$1B                         $1B - $20B                       >$20B
                                                              Company Annual Revenues

Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders, Q4, n=363

15                                                                        IM AR                                                      © 2012 IBM Corporation
16   IM AR   © 2012 IBM Corporation
IT and Business are attracted to cloud for different reasons.

     IT is drawn to cloud’s cost, efficiency and control…



                  of CIOs plan to use cloud—
                  up from 33% two years ago.




                                                                                                                     Transformation
     Efficiency




                                                       of business executives believe cloud
                                                       enables business transformation and
                                                       leaner, faster, more agile processes.


       …while business users are drawn to cloud’s simplified,
       self-service experience and new service capabilities.
                                                          2011 IBM CIO Study, London School of Economics, December 2010


17                                             IM AR                                                      © 2012 IBM Corporation
Major factors driving cloud


                       Virtualization of
     Infrastructure



                                                        Drives lower capital
       Leverage


                          Hardware                         requirements


                         Utilization of               Virtualized environments
                                                     only get benefits of scale if
                        Infrastructure
                                                       they are highly utilized


                                                   Reduced complexity, increased
                      Standardization of            automation possible; reduced
                         Workloads                         admin burden
     Leverage
      Labor




                        Automation of                Take repeatable tasks and
                        Management                           automate


                                                       Clients who can “serve
                         Self Service                 themselves” require less
                                                      support and get services
18                                         IM AR                                © 2012 IBM Corporation
IT benefits from Cloud Computing are real



     Value delivered                                 From traditional           To cloud
     Change management                         Months                     Days or hours

     Test provisioning                         Weeks                      20 minutes

     Install database                          1 day                      12 minutes
     Install of operating system               1 day                      30–60 minutes

     Provisioning environment                  ▄                          51% cost savings
     Design and deploy business applications   Months                     Days/Weeks


     “Our commitment to informed decision making led us to consider private cloud
     delivery of Cognos via System z, which is the enabling foundation that makes
     possible +$20M savings over 5 years.”
     – IBM Office of the CIO




19                                                 IM AR                                     © 2012 IBM Corporation
Bechtel’s New Benchmarks

     COMPANY   TECHNOLOGY                   BENCHMARK                           WHAT BECHTEL LEARNED

                                       COMPANY                BECHTEL


                                                                              Data Centers located where there is
               Wide-Area Network $10-$15 per megabit       $500 per megabit
                                                                              already a lot of bandwidth lowers
                                                                              cost and bring data to the network


                                        1 System             1 System
                                                                            Built whatever, whenever, wherever
                    Servers         Administrator per     Administrator per business wanted. Google
                                     20,000 servers         100 servers
                                                                            standardized server infrastructure


                                     Storage costs 15     Storage costs $3.75 Storage was 'cheap' because storage
                 Virtualization     cents per gigabyte     per gigabyte per     was virtualized and more highly
                                        per month               month                        utilized


                                                          230 Applications up
                                    1 Application for 1                         Converting 50 most heavily used
                                                           to 5 versions each;
                                      million users.                            applications into single instance
                  Applications                                Upgrades and
                                    Upgraded 4 times                           software as a service apps run from
                                                              training were
                                        per year                                      a Google like portal
                                                                 constant


                                  Source: CIO Computing, November 2008

20                                       IM AR                                                    © 2012 IBM Corporation
Mobility, social media, increasing digitization and new analytics
capabilities are conspiring to drive broad business change
                            Major Technology Trends driving Business Change

                       Mobile revolution
                         Connectivity, access and participation are growing rapidly
                         Smart devices are becoming the primary route to get connected
                         Devices are getting smarter as they are increasingly enriched by mobile apps

                       Social media explosion
                         Social media is quickly becoming the primary communication and collaboration format
                         GenY’s or “digital natives” use of technology and social media platforms is accelerating adoption
                         Enterprises are adopting social media but are struggling to realize the value and manage risk

                       Hyper digitization
                         Digital content is produced and accessed more quickly than ever before
                         Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness
                         An increasing number of connected devices and sensors is further driving growth

                       The power of analytics
                         New capabilities for real time analysis, predictive analytics and micro-segmentation are emerging
                         Top performing companies use analytics to drive action and business value
                         Analytics are making information “consumable” and is transforming all parts of the organization, from
                         customer intimacy to supply chain management

Source: IBV Analysis

21                                                    IM AR                                                       © 2012 IBM Corporation
Vivemos uma rápida evolução da internet




22                         IM AR               © 2012 IBM Corporation
23   IM AR   © 2012 IBM Corporation
O que acontece na Internet em apenas 1 minuto!




24                     IM AR                          © 2012 IBM Corporation
Mobile explosion



     “By 2013, mobile phones will overtake PCs as the
     most common Web access device worldwide”
                        Source: Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond:
                        http://www.gartner.com/it/page.jsp?id=1278413




                        Researchers reported that time spent on apps began to outpace
                        time spent on the desktop or mobile Web


                        BY 2015 mobile application development projects targeting
                        smartphones/tablets will outnumber native PC projects by a ratio
                        of 4-1




25                            IM AR                                                                © 2012 IBM Corporation
Trigger for transformation
            The 3rd phase of the internet “colliding” with the
                 3rd generation of computing platform



              Phases of the      Inter
                                         net
              Internet                                  Web
                                                           2.0
                                                                                          Web
                                                                                         Mobi
                                                                                                  3 . 0 (C
                                                                                                         lo
                                                                                             le,   Socia ud,
                                                                                                        l)
     1964             1981    1994             2003          2008                 2012
                                                                                                                        2020...
                                                                                                                          ,
                                                                                                                     hones
                                                                                                             (Smartp
                                                                                          evices
     Generations of                                                              M obile Dc)
                                                                                        , et
                                                                                 Tablets
     Computing Platforms
                                       Ser        ver /PC
                                Client

             ame
       Mainfr



                                                                 Source: HorizonWatch: Top Technology Trends To Watch In 2012, Bill Chamberlin
26                                        IM AR                                                                     © 2012 IBM Corporation
IT Strategy for the next decade:
                   an evolution of today‘s focus topics


             IT Service Provider                       “IT as a function of the business“


                 Data                           ...
              Management
                               SOA
                Service                       Appliances       Big Data
              Management
on demand                   Virtualization            Cloud            Analytics
           Consolidation                                              Mobility
                                                      Collaboration
                             Automation
         Cost Pressure                                 Operational Excellence
                                    Service Quality
     Open Source                                      Cyber Crime     Social Media
                           Data Center
                           Optimization                Prevention
          IT Security                                           Smart Devices
                                              ...

27                                    IM AR                                        © 2012 IBM Corporation
Cloud harnesses the capabilities borne out of these trends to
empower six potentially “game changing” business enablers
                                                     Cloud’s Business Enablers

                                                                        Business
                                                                   2    Scalability
                                Cost                         Provides limitless, cost-                 Market
                            1   Flexibility                  effective computing capacity         3    Adaptability
                                                             to support growth
                     Shifts fixed to variable cost                                           Faster time to market
                     Pay as and when needed                                                  Supports experimentation




                        Ecosystem                                                                     Masked
                 6      Connectivity                                                             4    Complexity
          New value nets                                                                    Expands product sophistication
          Potential new businesses                                Context-driven            Simpler for customers/users
                                                           5      Variability
                                                       User defined experiences
                                                       Increases relevance

     Source: IBV Analysis
28                                                        IM AR                                              © 2012 IBM Corporation
Cloud enables businesses to reduce fixed IT costs and shift to a
more variable, “pay-as-you-go” cost structure
                                                                                            Example: Etsy – the world’s handmade marketplace
      1       Cost Flexibility

      Characteristics
       Shifts CapEx to OpEx, when and as
       needed                                                                                     Etsy is an online marketplace to buy and sell
       Shifts cost from fixed to variable                                                         handmade goods. In addition to bringing buyers
       Generates faster payback and higher                                                        and sellers together, Etsy offers product
       ROI                                                                                        recommendations based on analysis of buyer
                                                                                                  preferences
      Finding                                                                                     Etsy uses cloud based analytics capabilities for
        31% of executives see cloud’s ability                                                     its targeted marketing approach by renting
        to provide pay-as-you go, cost
                                                                                                  hundreds of computers every night to analyze
        flexibility as a top benefit1                                                             data from a billion views of its website.
                                                                                                  Cost flexibility of the cloud allows Etsy access to
                                                                                                  tools and compute power that only large
                                                                                                  retailers like Gap or Ikea could previously afford.


                                                                                                       The cloud frees up capital by significantly
                                                                                                       reducing the need for IT investment
 Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a3-Q6b3(1): Expected benefits of cloud – Greater cost flexibility (today and next
 three years), N=572
29                                                                          IM AR                                                                                 © 2012 IBM Corporation
Cloud enables businesses to grow efficiently, expanding the range
of business options
                                                                                                                           Example: Netflix
       2      Business Scalability

       Characteristics
        Rapid / elastic provisioning of resources
        No scale limitations
        Benefit from scale economics without                                                            Netflix streams movies on-demand with large
        achieving large volumes on your own                                                             surges of capacity required at peak times.
                                                                                                        Use of cloud allowed Netflix to rapidly scale
       Finding                                                                                          up its business without having to buy, support
         32% of executives see business                                                                 and operate infrastructure and resources to
         scalability as a top cloud benefit1                                                            meet its growth requirements




                                                                                    Cloud’s ubiquitous and nearly unlimited computing
                                                                                    power drives scale economics and enables self-
                                                                                    provisioning and peak/non-peak responsiveness
     Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders,; Q6a2-Q6b2(1): Expected benefits of cloud – More scalable and flexible services
     (today and next three years), N=572; Source: (2) http://radar.oreilly.com/2011/05/netflix-cloud.html

30                                                                          IM AR                                                                                 © 2012 IBM Corporation
Cloud enables businesses to attract a broader range of consumers
with elegantly simple solutions

      4      Masked Complexity                                                                          Example: Xerox Mobile Print

      Characteristics
       Expands feasible range of
       sophistication in products and
       services
                                                                                           The Xerox Mobile Print platform uses tools via a
       Minimizes requirements of user to
                                                                                           cloud to convert and process print requests from
       understand how product works or
                                                                                           any mobile device (e.g. tablet, smartphone) to a
       how to maintain it
                                                                                           Xerox printer
      Finding                                                                              Removes complexity for users – no need to
        Cloud’s ability to mask complexity                                                 understand / install / maintain printer device
        is one of the lesser known                                                         drivers for either their mobile device or targeted
        business enablers with less than                                                   printer
        20% of executives seeing it as a
        top benefit1

                           17%                      22%

                                                                                Cloud-enabled services leave the complexity to the
                                                                                experts, delivering only outcomes to the end-user
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a5-Q6b5(1): Expected benefits of cloud – Reduced complexity for
customers (today and next three years), N=572
31                                                                    IM AR                                                                            © 2012 IBM Corporation
Cloud business enablers are already driving innovation across
company/industry value chains and customer value propositions

       What is my role in the value chain?
        What to do and when to rely on
        others?




                                                    Value Chain
        Where to specialize and how
        to set up interdependent networks?                          Cloud Enablement
                                                                       Framework
       How will I do what I do?
        What kind of delivery structures?
        Which operating model?
        What is the cost structure?
                                                                  Customer Value Proposition




What is my customer value          Which customers am I serving?                How do I generate revenue?
 proposition?                       Which customer segments?                     Which pricing models?
 What mix of products and           What type of relationships to                How and where to capture
 services?                          maintain?                                    value?
 Which customer needs are
                                    Which channels?
 being satisfied?
32                                          IM AR                                              © 2012 IBM Corporation
Enterprises are leveraging cloud to enhance, extend and invent new
customer value propositions



                                          Cloud Enablement
                                             Framework




                                     Customer Value Proposition

                                    Enhance           Extend   Invent


Enhance                              Extend                             Invent
  Improve current value                Extend value proposition to        Construct radically different value
  proposition to retain/attract        attract customers to different     proposition to create a new
  customers for existing products      products and services              “need” and own the market
  and services                         Attract existing or adjacent       Form new customer segments
  Appeal to existing customer          customer segments                  Generate entirely new revenue
  segments                             Generate significant new           streams
  Garner incremental revenue           revenues
33                                            IM AR                                           © 2012 IBM Corporation
Invent: Some organizations are using cloud to invent entirely new
customer experiences by creating new offerings
         How is Cloud Substantially Changing Your Customer                                                                           Example: Apple’s iOS
                        Value Proposition?
                                            % of Respondents

                                                                                               61%
          Changing
     product/service mix                                                                               68%            Situation
                                                                                                                        Apple’s iOS platform enables
                                                                                                                        anyone to create an application –
                                                                                        54%                             around gaming, productivity or
      Finding additional
     sources of revenue
                                                                                                                        entertainment – for use on an Apple
                                                                                                 63%
                                                                                                                        mobile device. The best apps are
                                                                                                                        sold through the AppStore.
                                                                                                                      Value Created
                                                                     36%                                                A completely new ecosystem of
      Developing flexible
       pricing models                                                            48%                                    professional and amateur developers
                                                                                                                        A radically different value proposition
                                                                                                                        that dominates the market
                                Today                             In 3 years


                                                     Invention of new customer value propositions comprise ways in which
                                                     cloud is used to create new customer needs and form new markets
       Source: 2011 IBM/EIU Cloud Survey Results, Q9ac/bc : How do you intend to change your value proposition ? n (today) = 28; n (in 3 years) = 136. The question has a reduced
       sample size, since only those respondents were asked this who affirmatively answered Q9a1/b1 (Impact of cloud on value proposition ) with Substantially changing the value
       proposition in order to generate additional revenues
34                                                                           IM AR                                                                                  © 2012 IBM Corporation
Cloud is also being leveraged to improve, transform and create new
organization and industry value chains


     Create




                                                           Create
       Build a new industry value chain or
       disintermediate an existing one
       Radically change industry economics




                                                                       Value Chain
                                                           Transform
                                                                                     Cloud Enablement
     Transform
                                                                                        Framework
       Change organizational role within the industry or
       enter a different industry value chain
       Develop new operating capabilities




                                                           Improve
       Enter adjacent industries


     Improve
       Increase efficiency and effectiveness of the
       organization
       Increase partnering, sourcing, and collaboration



35                                             IM AR                                               © 2012 IBM Corporation
Create: Organizations expecting to use cloud to redesign their business
model or industry, will quadruple over the next 3 years
              What is the Primary Focus of Your                                                                Example: Salesforce.com
           Organization’s Cloud Adoption Strategy?
                                % of Respondents

Improve existing capabilities in single area of                                           47%
               our value chain                               10%
                                                                                                      Situation
Improve existing capabilities across multiple                                    37%                      Salesforce.com radically altered the
         areas of our value chain                                                         48%             traditional software industry by offering a
                                                                                                          cloud-based, managed solution that
                                                            8%                                            automated the critical function of marketing,
  Change our role within industry ecosystem
                                                                   16%
                                                                                                          sales and customer relationship management
                                                      3%
                                                                                                      Value Created
            Redesign our industry ecosystem
                                                                   17%                                    Rules for delivery, usage, support and
                                                                                                          licensing of critical business software were
                          Enter a new industry
                                                      3%                                                  radically rewritten
                                                       4%
                                                                                                          Balance of power in the industry is now shifting
                                                                                                          from the traditional software licensing model to
                                                     2%
 Create a new business model/new industry              5%
                                                                                                          a software-as-a-service model

                            Today                          In 3 years

                                                             Creation of new enterprise or industry value chains or
                                                             ecosystems can drive value through industry model innovation
Source: 2011 IBM/EIU Cloud Survey Results, Q8: What is the primary focus of your organisation’s cloud technology adoption strategy ? n (today) = 572; n (in 3
years) = 572
36                                                                   IM AR                                                                        © 2012 IBM Corporation
We classify organizations according to the extent to which their use
of cloud impacts value chains and value propositions
                                Cloud Enablement Framework

                                                                             Disruptors create radically different value
                                                         Disruptors
                   Create




                                                                             propositions, generate new customer needs
                                                                             and segments. They disintermediate existing
                                                                             industries or even create new ecosystems

                                                                             Innovators significantly extend customer
     Value Chain
                   Transform




                                            Innovators                       value propositions resulting in new revenue
                                                                             streams and transform their role within their
                                                                             industry or enter a different industry
                                                                             ecosystem

                               Optimizers
                   Improve




                                                                             Optimizers use the cloud to incrementally
                                                                             enhance their customer value propositions
                                                                             while improving their organization’s efficiency

                               Enhance        Extend            Invent

                                   Customer Value Proposition

                                                                Organizations should determine how and to what degree
                                                                cloud can be used to enable their business model
37                                                               IM AR                                           © 2012 IBM Corporation
Optimizers, innovators and disruptors each face strategic
opportunities and significant risks
     Organizational
                              Major Opportunities                        Major Risks
     Classification
                      Deepen customer relationships by           Realization of limited revenue
                      expanding value                            or market share gains
                      Increase partnering by applying cloud      Increased dependency on
     Optimizers       Reduce costs by leveraging cost            partners
                      flexibility
                                                                 Potential industry disruption
                      Increase overall efficiency                from less risk averse player
                      Expand ability to move into adjacent       Rapid replication of innovation
                      market or industry spaces                  by competitors
                      Combine previously unrelated elements      Value capture may not be
     Innovators       of the value chain and value proposition   sustainable
                      to increase total value
                      Gain competitive advantage

                      Capture unique competitive edge            Untested business models may
                      through creation of new or disruption of   not succeed
                      existing industry
                                                                 Fast followers are often more
     Disruptors       Invent new customer needs or define        successful than first movers
                      entirely new markets
                      Take advantage of and sustain first
                      mover advantage



38                                   IM AR                                         © 2012 IBM Corporation
Organizations generally fall into one of the three categories:
optimizers, innovators or disruptors

                                                                          Positioning of an organization’s cloud-
                                                                          enabled initiative within the CeBM framework
                   Create




                                                             Disruptors   involves understanding the impact of the
                                                                          business model, not merely the intent.

                                                                                            Organization
     Value Chain




                                                                             North Carolina State University
                   Transform




                                                  Innovators
                                                                             Virtual Computing Lab
                                                                             Xerox
                                                                             Mobile Print
                                                                             3M
                               Optimizers                                    Visual Attention Service
                   Improve




                                                                             Animoto
                                                                             Custom Presentations
                                                                             Force.com
                                                                             Application Platform
                               Enhance          Extend          Invent
                                                                             Apple
                                         Customer Value Proposition
                                                                             Application Platform


39                                                             IM AR                                       © 2012 IBM Corporation
3M Visual Attention Service




40                        IM AR   © 2012 IBM Corporation
Organizations generally fall into one of the three categories:
optimizers, innovators or disruptors

                                                                          Positioning of an organization’s cloud-
                                                                          enabled initiative within the CeBM framework
                   Create




                                                             Disruptors   involves understanding the impact of the
                                                                          business model, not merely the intent.

                                                                                            Organization
     Value Chain




                                                                             North Carolina State University
                   Transform




                                                  Innovators
                                                                             Virtual Computing Lab
                                                                             Xerox
                                                                             Mobile Print
                                                                             3M
                               Optimizers                                    Visual Attention Service
                   Improve




                                                                             Animoto
                                                                             Custom Presentations
                                                                             Force.com
                                                                             Application Platform
                               Enhance          Extend          Invent
                                                                             Apple
                                         Customer Value Proposition
                                                                             Application Platform


41                                                             IM AR                                       © 2012 IBM Corporation
Cloud’s business enablers are fuelling innovation and empowering
organizations to optimize, innovate and disrupt business models
                                                               …that are fuelling innovations                                        …empowering organizations to
    Cloud offers six “game changing”                           across enterprise value chains and                                    optimize, innovate or disrupt
    business enablers …                                        customer value propositions…                                          business models




                                                                                                                                                                     Disruptors
       Cloud’s Business Enablers




                                                                                                                         Create
                       Business
                   2
                       Scalability
     Cost                                                       Value Chain
1




                                                                                                           Value Chain
     Flexibility                                Market




                                                                                                                         Transform
                                            3
                                                Adaptability                    Cloud Enablement                                                     Innovators
                                                                                   Framework

6
     Ecosystem
                                            Masked




                                                                                                                         Improve
     Connectivity                       4                                                                                            Optimizers
                                            Complexity

                           Context-driven                                     Customer Value Proposition
                       5
                           Variability
                                                                                                                                       Enhance          Extend           Invent

                                                                                                                                                 Customer Value Proposition




                                     Organizations need to assess themselves using the Cloud Enablement Framework
                                     and examine the potential to innovate by leveraging the cloud’s business enablers
42                                                                            IM AR                                                                          © 2012 IBM Corporation
There are three initiatives you can start today to capture value from
cloud-enabled business models



     1. Establish shared responsibility for cloud strategy and governance
        across the Business and IT


     2. Look beyond your organization’s borders to maximize value derived
        from your cloud adoption


     3. Strategize whether your organization will be an Optimizer, Innovator
        or Disruptor through the use of cloud-enabled business models




43                               IM AR                                  © 2012 IBM Corporation
Envisioning the full potential of cloud requires organizations to
challenge existing approaches in their business and industry
      Reflecting on your business, question yourself – “What you would do if…

                                                                              … you could reach hitherto
                                       … you had access to
                                                                              unaddressed customers or
                                        unlimited computing
                                                                          markets and target them based on
                                      resources to scale your
                                                                           their individualized preferences
                                             business?
                                                                             through analytical insights?


     …you could redefine your
     role in your industry and
     change your competitive
            positioning?
                                                                                   …you could give any of your
                                                                                   customers access to any of
                                                                                   your products and services
                                                                                   anytime, anywhere, on any
                                                                                            device?



                        … you could easily and
                        seamlessly connect and
                                                                           … you could inexpensively
                       collaborate with business
                                                                            and rapidly develop and
                       partners and customers?
                                                                         launch new product & service
                                                                                  offerings?



                                   Organizations that maximize the potential of cloud’s business enablers can
                                   position themselves to capture significant value and sustainable advantage
44                                                    IM AR                                             © 2012 IBM Corporation
Cloud Computing deployment became part of the
      existing IT optimization strategy and roadmap

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




                                      IM AR
                                                                       =          Flexibility


45                                                                           © 2012 IBM Corporation
Some workloads are ready for cloud delivery

                Sensitive                        Analytics
                  Data       Information
                              Intensive                                    Ready
                                                  Infrastructure
                                                     Storage             for Cloud
                    Highly
                  Customized              Isolated          Industry
                                         Workloads        Applications

                         Not yet                             Collaboration
                       Virtualized            Mature
                                             Workloads              Development
                      3rd Party SW
                                                                       & Test
 May not yet
  be ready                                                   Workplace, Desktop
                    Complex              Pre-Production          & Devices
for migration     Processes &               Systems
                  Transactions                             Business
                                                           Processes
                                 Batch
                Regulation                         Infrastructure
                               Processing
                 Sensitive                            Compute
46                               IM AR                                       © 2012 IBM Corporation
The realities of cloud versus hype


           Reality Today                        Cloud Hype                     Future Reality
                                                                                                                  So, no “BIG BANG” !




                                                                                                                  ≠
                                   Trad. SO                                                            Trad. SO




                                                Everything in the
          Internal IT plus 3rd party          cloud and all at once            Sourcing mixture -
              for some things                                                  retain legacy, plus
                                                                              private/hybrid, public
     Source: Market Insights and Gartner




                          People tend to overestimate what will happen two years from now and
                                          underestimate what will happen in 10.




47                                                                    IM AR                                                   © 2012 IBM Corporation
Cloud Computing has moved beyond the hype. It is a highly
disruptive trend that brings with it new opportunities
Disruption
“Cloud services are interconnected with and accelerated by other disruptive technologies, including
mobile devices, wireless networks, big data analytics, and social networking. As during the
mainframe and PC eras, the new platform promises to radically expand the users and uses of
information technology, leading to a wide and entirely new variety of intelligent industry solutions.” –
IDC




Opportunity
“What supply chain models did to manufacturing is what cloud computing is doing to in-house data
centers. It is allowing people to optimize around where they have differentiated capabilities.” – Gartner




Mobile Cloud Services
 “In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal
 cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a
 personal cloud service for online storage, backup and synching.” – Yankee Research



48                                            IM AR                                                © 2012 IBM Corporation
What is coming?




                  In 2021, cloud computing is simply computing,
                  corporate office parks are senior housing facilities and
                  the IT organization of the future has been absorbed by
                  the business.
                    Internal IT becomes an internal cloud.
                    IT becomes a services broker.
                    IT will become a function of the business.
                                                                 Gartner, 2011




49                                IM AR                                          © 2012 IBM Corporation
Acessem agora!




Saiba mais sobre Cloud na Comunidade Cloud Computing Brasil:
                          http://ibm.co/cloudcomputingbr


           *Conheçam o IBM SmartCloud Provisioning – Download gratuito!
                                 (Universidade)
     http://www.ibm.com/developerworks/br/downloads/tiv/smartcloud/index.html




           dW Brasil: www.ibm.com/developerworks/br/
            @soudW                            IBMdeveloperWorksBrasil
50                              IM AR                                 © 2012 IBM Corporation
Obrigado!




                  ctaurion@br.ibm.com
     www.ibm.com/developerworks/blogs/page/ctaurion
         www.computingonclouds.wordpress.com
                       @ctaurion
             Facebook, Linkedin, BranchOut
51                   IM AR                            © 2012 IBM Corporation

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Cloud Computing: da curiosidade para casos reais

  • 1. Cezar Taurion Technical Evangelist Cloudnomics:The Power of Cloud Driving Business Model Innovation IM AR © 2012 IBM Corporation
  • 2. 2 IM AR © 2012 IBM Corporation
  • 3. História da Computação e da IBM se fundem… 3 IM AR © 2012 IBM Corporation
  • 4. Inovação na IBM: inserido no DNA corporativo The US Patent and Trademark Office awarded IBM an average 22.6 patents per working day in 2010, for a total 5,896. 6,180 U.S. patents in 2011 IBM e Governo Federal anunciam centro de pesquisas no Brasil The top-10 receivers of patents in 2010, according to IFI Claims Patent Services: de 2010 – 19h22 08 de junho Primeiro da América do Sul. 1. IBM (5896); United States Tecnologias para tornar o Planeta Mais Inteligente. 2. Samsung (4551); South Korea Sistemas humanos inteligentes para grandes eventos, 3. Microsoft (3094); United States como Copa 2014 e Olimpíadas 2016. 4. Canon (2552); Japan Sistemas inteligentes para automação de serviços. 5. Panasonic (2482); Japan Sistemas inteligentes para descobertas de recursos 6. Toshiba (2246); Japan naturais (petróleo e gás) e logística. 7. Sony (2150); Japan 8. Intel (1653); United States 9. LG Electronics (1490); South Korea 10. HP (1480); United States 4 IM AR © 2012 IBM Corporation
  • 5. Talking about trends.... 5 IM AR © 2012 IBM Corporation
  • 6. What are general trends in the IT industry? IBM Horizon Gartner Forrester IDC Ovum Watch 2012 Cloud Computing Smart Computing Cloud IT Security Cloud Mobile Empowerment Computing in the Data Computing Applications & Cloud Computing Datacenter Management Virtualization Media Tablets IT as Business Public Cloud Business Social Business Next-Generation Technology Services Analytics Mobile Analytics Mobile Enterprise Platform-as-a- Mobility Computing Social Analytics Apps Service Datacenter Big Data Social Disruption-as-a- Enterprise Transformation Analytics Communications Service Mobility Cloud IBM Watson & Collaboration HW-SW- Free SW, Open Computing Human / Video Appliances Source Collaboration Computer Context-Aware Next-Gen BPM Platforms IT and Interaction Computing Analytics BI and Analytics Sustainability Security Ubiquitous IT and Enterprise Data Drive IT as Sustainability & Computing Sustainability Social Media Business Green IT Storage Class Social Media Smart Devices Context-Aware Consumerization Memory Computing of IT Fabric-Based Infrastructure and Computers Source: Gartner, cio.de, IBM MD Germany, IBM MI, HorizonWatch 6 IM AR © 2012 IBM Corporation
  • 7. 7 IM AR © 2012 IBM Corporation
  • 8. Cloud is a new Consumption & Delivery Model that relies on the industrialization of delivery for IT supported Services “Cloud” is: “Cloud” enables: a new consumption and Self-service delivery model inspired by Sourcing options consumer Internet Economies-of-scale services. “Cloud” represents: “Cloud” can be: The Industrialization of Private, Public and Hybrid delivery for IT supported Workload and/or Services Programming Model Specific 8 Cloud Computing - Strategic View IM AR © 2012 IBM Corporation
  • 9. Cloud computing is more than the sum of the parts… Cloud Computing Virtualization + Standardization + Automation + Self Service With With With With Enables flexibility Simplification Low human involvement User in control Increase utilization Few configurations Rapid deployment & mgt Cost and usage choices Energy efficient Enables automation Repeatable configuration Increased visibility Soft configuration Easier support Improves compliance IT/Business alignment Infrastructure abstraction Without Without Without Without Physically constrained Physically constrained Manually intensive Dependency of availability of data centre staff Capital intensive Many configurations Skill dependent Lack of awareness Hard configuration Error prone Linked to PO process Costly 9 IM AR © 2012 IBM Corporation
  • 10. Standardization, Automation and Self Service have changed many other industries become more efficient. Telcos automate traffic through switches to assure service and lower cost. Manufacturers use robotics to improve quality and lower cost. Banks use automated teller machines to improve service and lower cost. 10 IM AR © 2012 IBM Corporation
  • 11. Cloud Service Models Financials CRM/ERP/HR Industry Specific Collaboration Applications Software/ Application-as-a-Service Web 2.0 Applications Development Middleware Tools Runtime Database Desktop Platform-as-a-Service Data Center Servers Networking Storage Fabric Consolidated, standardised, virtualised, shared, dynamically provisioned, automated Infrastructure-as-a-Service 11 IM AR © 2012 IBM Corporation
  • 12. A range of deployment options Private Hybrid Public IT capabilities are provided Internal and external IT activities / “as a service,” over an service delivery functions are intranet, within the enterprise methods are provided “as a and behind the firewall integrated service,” over the Internet Enterprise Users Enterprise Enterprise Enterprise data center data center A B A B Private cloud Managed Hosted private Member cloud Public cloud private cloud cloud services services Private Third-party operated Third-party owned and Mix of shared and dedicated Shared resources On client premises Client owned operated resources Elastic scaling Client runs/ manages Mission critical Standardization Shared facility and staff Pay as you go Packaged applications Centralization Virtual private network (VPN) Public Internet Security access High compliancy Internal network Subscription or membership Internal network based 12 IM AR © 2012 IBM Corporation
  • 13. Cloud Computing Reference Architecture (The Open Group) Cloud Service Cloud Service Provider Cloud Service Consumer Creator Cloud Services Common Cloud Service Business Service Management Platform Manager Manager Component Developer Consumer End OSS – Operational Support BSS – Business Support user Existing & Services Services BP Mgmt 3rd party Interfaces API services, BPaaS Service Partner Service Delivery Catalog Customer Service Service Composer Cloud Service Account Offering Offering Integration Ecosystems Management Catalog Management Tools Service Development Portal & API Service Consumer Portal & API Service Automation Management Contracts & Service Offering Order Software Mgmt Agreement Request Manager Service Management Interfaces Management Management API Integrator SaaS Service Change & Image Request Configuration Lifecycle Management Management Management Subscription Entitlement Service Creation Consumer Pricing Business Incident & IT Service Management Management Tools Manager Provisioning Problem Level Management Management Service Platform Mgmt Management Interfaces API Consumer In- PaaS Monitoring & IT Asset & Capacity & Metering Rating Billing Development Event License Performance Tools house IT Management Management Management Business Processes Service Runtime Service Management Clearing & Accounts Accounts Platform & Virtualization Management Settlement Payable Receivable Development Tools Mgmt Interfaces Applications Infrastructure API IaaS Software Middleware Service Provider Portal & API Development Tools Infrastructure Deployment Transition Operations Security & Customer Architect Manager Manager Risk Manager Care Image Creation Tools Consumer Administrator Infrastructure Security, Resiliency, Performance & Consumability IM AR 13 Governance © 2012 IBM Corporation 2011
  • 14. Cloud is widely recognized as an increasingly important technology; adoption is expected to accelerate rapidly in the coming years What is Your Organization’s Level of The Global Cloud Computing Market is Cloud Adoption? Forecast to Grow 22% per year through 2020 % of Respondents 91% $250B $241B Piloting 21% 72% $200B $150B Adopting $150B 38% 28% +33% $100B Substantially 21% Implemented $50B 41% +215% $41B 13% $0B Today 3 yrs 2011 2015 2020 Source: Sizing the cloud, Forrester Research, Inc., April 21, 2011 Nearly half (48%) of CIOs surveyed evaluate cloud options first, over traditional IT approaches, before making any new IT investments Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organisation’s level of cloud technology adoption today and which do you expect will best describe it in three years? Sizing the cloud , Forrester Research, April 21, 2011; http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First 14 IM AR © 2012 IBM Corporation
  • 15. Today, at least two thirds of companies of all sizes are actively either experimenting with or implementing cloud What is Your Organization’s Level of Cloud Adoption? % of Respondents; Today 82% 76% 67% 43% Piloting 44% 32% 21% Adopting 22% 34% 14% 10% Substantially 5% Implemented <$1B $1B - $20B >$20B Company Annual Revenues Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders, Q4, n=363 15 IM AR © 2012 IBM Corporation
  • 16. 16 IM AR © 2012 IBM Corporation
  • 17. IT and Business are attracted to cloud for different reasons. IT is drawn to cloud’s cost, efficiency and control… of CIOs plan to use cloud— up from 33% two years ago. Transformation Efficiency of business executives believe cloud enables business transformation and leaner, faster, more agile processes. …while business users are drawn to cloud’s simplified, self-service experience and new service capabilities. 2011 IBM CIO Study, London School of Economics, December 2010 17 IM AR © 2012 IBM Corporation
  • 18. Major factors driving cloud Virtualization of Infrastructure Drives lower capital Leverage Hardware requirements Utilization of Virtualized environments only get benefits of scale if Infrastructure they are highly utilized Reduced complexity, increased Standardization of automation possible; reduced Workloads admin burden Leverage Labor Automation of Take repeatable tasks and Management automate Clients who can “serve Self Service themselves” require less support and get services 18 IM AR © 2012 IBM Corporation
  • 19. IT benefits from Cloud Computing are real Value delivered From traditional To cloud Change management Months Days or hours Test provisioning Weeks 20 minutes Install database 1 day 12 minutes Install of operating system 1 day 30–60 minutes Provisioning environment ▄ 51% cost savings Design and deploy business applications Months Days/Weeks “Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation that makes possible +$20M savings over 5 years.” – IBM Office of the CIO 19 IM AR © 2012 IBM Corporation
  • 20. Bechtel’s New Benchmarks COMPANY TECHNOLOGY BENCHMARK WHAT BECHTEL LEARNED COMPANY BECHTEL Data Centers located where there is Wide-Area Network $10-$15 per megabit $500 per megabit already a lot of bandwidth lowers cost and bring data to the network 1 System 1 System Built whatever, whenever, wherever Servers Administrator per Administrator per business wanted. Google 20,000 servers 100 servers standardized server infrastructure Storage costs 15 Storage costs $3.75 Storage was 'cheap' because storage Virtualization cents per gigabyte per gigabyte per was virtualized and more highly per month month utilized 230 Applications up 1 Application for 1 Converting 50 most heavily used to 5 versions each; million users. applications into single instance Applications Upgrades and Upgraded 4 times software as a service apps run from training were per year a Google like portal constant Source: CIO Computing, November 2008 20 IM AR © 2012 IBM Corporation
  • 21. Mobility, social media, increasing digitization and new analytics capabilities are conspiring to drive broad business change Major Technology Trends driving Business Change Mobile revolution Connectivity, access and participation are growing rapidly Smart devices are becoming the primary route to get connected Devices are getting smarter as they are increasingly enriched by mobile apps Social media explosion Social media is quickly becoming the primary communication and collaboration format GenY’s or “digital natives” use of technology and social media platforms is accelerating adoption Enterprises are adopting social media but are struggling to realize the value and manage risk Hyper digitization Digital content is produced and accessed more quickly than ever before Internet traffic is growing globally driven by consumer use of video, mobile data, interconnectedness An increasing number of connected devices and sensors is further driving growth The power of analytics New capabilities for real time analysis, predictive analytics and micro-segmentation are emerging Top performing companies use analytics to drive action and business value Analytics are making information “consumable” and is transforming all parts of the organization, from customer intimacy to supply chain management Source: IBV Analysis 21 IM AR © 2012 IBM Corporation
  • 22. Vivemos uma rápida evolução da internet 22 IM AR © 2012 IBM Corporation
  • 23. 23 IM AR © 2012 IBM Corporation
  • 24. O que acontece na Internet em apenas 1 minuto! 24 IM AR © 2012 IBM Corporation
  • 25. Mobile explosion “By 2013, mobile phones will overtake PCs as the most common Web access device worldwide” Source: Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond: http://www.gartner.com/it/page.jsp?id=1278413 Researchers reported that time spent on apps began to outpace time spent on the desktop or mobile Web BY 2015 mobile application development projects targeting smartphones/tablets will outnumber native PC projects by a ratio of 4-1 25 IM AR © 2012 IBM Corporation
  • 26. Trigger for transformation The 3rd phase of the internet “colliding” with the 3rd generation of computing platform Phases of the Inter net Internet Web 2.0 Web Mobi 3 . 0 (C lo le, Socia ud, l) 1964 1981 1994 2003 2008 2012 2020... , hones (Smartp evices Generations of M obile Dc) , et Tablets Computing Platforms Ser ver /PC Client ame Mainfr Source: HorizonWatch: Top Technology Trends To Watch In 2012, Bill Chamberlin 26 IM AR © 2012 IBM Corporation
  • 27. IT Strategy for the next decade: an evolution of today‘s focus topics IT Service Provider “IT as a function of the business“ Data ... Management SOA Service Appliances Big Data Management on demand Virtualization Cloud Analytics Consolidation Mobility Collaboration Automation Cost Pressure Operational Excellence Service Quality Open Source Cyber Crime Social Media Data Center Optimization Prevention IT Security Smart Devices ... 27 IM AR © 2012 IBM Corporation
  • 28. Cloud harnesses the capabilities borne out of these trends to empower six potentially “game changing” business enablers Cloud’s Business Enablers Business 2 Scalability Cost Provides limitless, cost- Market 1 Flexibility effective computing capacity 3 Adaptability to support growth Shifts fixed to variable cost Faster time to market Pay as and when needed Supports experimentation Ecosystem Masked 6 Connectivity 4 Complexity New value nets Expands product sophistication Potential new businesses Context-driven Simpler for customers/users 5 Variability User defined experiences Increases relevance Source: IBV Analysis 28 IM AR © 2012 IBM Corporation
  • 29. Cloud enables businesses to reduce fixed IT costs and shift to a more variable, “pay-as-you-go” cost structure Example: Etsy – the world’s handmade marketplace 1 Cost Flexibility Characteristics Shifts CapEx to OpEx, when and as needed Etsy is an online marketplace to buy and sell Shifts cost from fixed to variable handmade goods. In addition to bringing buyers Generates faster payback and higher and sellers together, Etsy offers product ROI recommendations based on analysis of buyer preferences Finding Etsy uses cloud based analytics capabilities for 31% of executives see cloud’s ability its targeted marketing approach by renting to provide pay-as-you go, cost hundreds of computers every night to analyze flexibility as a top benefit1 data from a billion views of its website. Cost flexibility of the cloud allows Etsy access to tools and compute power that only large retailers like Gap or Ikea could previously afford. The cloud frees up capital by significantly reducing the need for IT investment Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a3-Q6b3(1): Expected benefits of cloud – Greater cost flexibility (today and next three years), N=572 29 IM AR © 2012 IBM Corporation
  • 30. Cloud enables businesses to grow efficiently, expanding the range of business options Example: Netflix 2 Business Scalability Characteristics Rapid / elastic provisioning of resources No scale limitations Benefit from scale economics without Netflix streams movies on-demand with large achieving large volumes on your own surges of capacity required at peak times. Use of cloud allowed Netflix to rapidly scale Finding up its business without having to buy, support 32% of executives see business and operate infrastructure and resources to scalability as a top cloud benefit1 meet its growth requirements Cloud’s ubiquitous and nearly unlimited computing power drives scale economics and enables self- provisioning and peak/non-peak responsiveness Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders,; Q6a2-Q6b2(1): Expected benefits of cloud – More scalable and flexible services (today and next three years), N=572; Source: (2) http://radar.oreilly.com/2011/05/netflix-cloud.html 30 IM AR © 2012 IBM Corporation
  • 31. Cloud enables businesses to attract a broader range of consumers with elegantly simple solutions 4 Masked Complexity Example: Xerox Mobile Print Characteristics Expands feasible range of sophistication in products and services The Xerox Mobile Print platform uses tools via a Minimizes requirements of user to cloud to convert and process print requests from understand how product works or any mobile device (e.g. tablet, smartphone) to a how to maintain it Xerox printer Finding Removes complexity for users – no need to Cloud’s ability to mask complexity understand / install / maintain printer device is one of the lesser known drivers for either their mobile device or targeted business enablers with less than printer 20% of executives seeing it as a top benefit1 17% 22% Cloud-enabled services leave the complexity to the experts, delivering only outcomes to the end-user Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q6a5-Q6b5(1): Expected benefits of cloud – Reduced complexity for customers (today and next three years), N=572 31 IM AR © 2012 IBM Corporation
  • 32. Cloud business enablers are already driving innovation across company/industry value chains and customer value propositions What is my role in the value chain? What to do and when to rely on others? Value Chain Where to specialize and how to set up interdependent networks? Cloud Enablement Framework How will I do what I do? What kind of delivery structures? Which operating model? What is the cost structure? Customer Value Proposition What is my customer value Which customers am I serving? How do I generate revenue? proposition? Which customer segments? Which pricing models? What mix of products and What type of relationships to How and where to capture services? maintain? value? Which customer needs are Which channels? being satisfied? 32 IM AR © 2012 IBM Corporation
  • 33. Enterprises are leveraging cloud to enhance, extend and invent new customer value propositions Cloud Enablement Framework Customer Value Proposition Enhance Extend Invent Enhance Extend Invent Improve current value Extend value proposition to Construct radically different value proposition to retain/attract attract customers to different proposition to create a new customers for existing products products and services “need” and own the market and services Attract existing or adjacent Form new customer segments Appeal to existing customer customer segments Generate entirely new revenue segments Generate significant new streams Garner incremental revenue revenues 33 IM AR © 2012 IBM Corporation
  • 34. Invent: Some organizations are using cloud to invent entirely new customer experiences by creating new offerings How is Cloud Substantially Changing Your Customer Example: Apple’s iOS Value Proposition? % of Respondents 61% Changing product/service mix 68% Situation Apple’s iOS platform enables anyone to create an application – 54% around gaming, productivity or Finding additional sources of revenue entertainment – for use on an Apple 63% mobile device. The best apps are sold through the AppStore. Value Created 36% A completely new ecosystem of Developing flexible pricing models 48% professional and amateur developers A radically different value proposition that dominates the market Today In 3 years Invention of new customer value propositions comprise ways in which cloud is used to create new customer needs and form new markets Source: 2011 IBM/EIU Cloud Survey Results, Q9ac/bc : How do you intend to change your value proposition ? n (today) = 28; n (in 3 years) = 136. The question has a reduced sample size, since only those respondents were asked this who affirmatively answered Q9a1/b1 (Impact of cloud on value proposition ) with Substantially changing the value proposition in order to generate additional revenues 34 IM AR © 2012 IBM Corporation
  • 35. Cloud is also being leveraged to improve, transform and create new organization and industry value chains Create Create Build a new industry value chain or disintermediate an existing one Radically change industry economics Value Chain Transform Cloud Enablement Transform Framework Change organizational role within the industry or enter a different industry value chain Develop new operating capabilities Improve Enter adjacent industries Improve Increase efficiency and effectiveness of the organization Increase partnering, sourcing, and collaboration 35 IM AR © 2012 IBM Corporation
  • 36. Create: Organizations expecting to use cloud to redesign their business model or industry, will quadruple over the next 3 years What is the Primary Focus of Your Example: Salesforce.com Organization’s Cloud Adoption Strategy? % of Respondents Improve existing capabilities in single area of 47% our value chain 10% Situation Improve existing capabilities across multiple 37% Salesforce.com radically altered the areas of our value chain 48% traditional software industry by offering a cloud-based, managed solution that 8% automated the critical function of marketing, Change our role within industry ecosystem 16% sales and customer relationship management 3% Value Created Redesign our industry ecosystem 17% Rules for delivery, usage, support and licensing of critical business software were Enter a new industry 3% radically rewritten 4% Balance of power in the industry is now shifting from the traditional software licensing model to 2% Create a new business model/new industry 5% a software-as-a-service model Today In 3 years Creation of new enterprise or industry value chains or ecosystems can drive value through industry model innovation Source: 2011 IBM/EIU Cloud Survey Results, Q8: What is the primary focus of your organisation’s cloud technology adoption strategy ? n (today) = 572; n (in 3 years) = 572 36 IM AR © 2012 IBM Corporation
  • 37. We classify organizations according to the extent to which their use of cloud impacts value chains and value propositions Cloud Enablement Framework Disruptors create radically different value Disruptors Create propositions, generate new customer needs and segments. They disintermediate existing industries or even create new ecosystems Innovators significantly extend customer Value Chain Transform Innovators value propositions resulting in new revenue streams and transform their role within their industry or enter a different industry ecosystem Optimizers Improve Optimizers use the cloud to incrementally enhance their customer value propositions while improving their organization’s efficiency Enhance Extend Invent Customer Value Proposition Organizations should determine how and to what degree cloud can be used to enable their business model 37 IM AR © 2012 IBM Corporation
  • 38. Optimizers, innovators and disruptors each face strategic opportunities and significant risks Organizational Major Opportunities Major Risks Classification Deepen customer relationships by Realization of limited revenue expanding value or market share gains Increase partnering by applying cloud Increased dependency on Optimizers Reduce costs by leveraging cost partners flexibility Potential industry disruption Increase overall efficiency from less risk averse player Expand ability to move into adjacent Rapid replication of innovation market or industry spaces by competitors Combine previously unrelated elements Value capture may not be Innovators of the value chain and value proposition sustainable to increase total value Gain competitive advantage Capture unique competitive edge Untested business models may through creation of new or disruption of not succeed existing industry Fast followers are often more Disruptors Invent new customer needs or define successful than first movers entirely new markets Take advantage of and sustain first mover advantage 38 IM AR © 2012 IBM Corporation
  • 39. Organizations generally fall into one of the three categories: optimizers, innovators or disruptors Positioning of an organization’s cloud- enabled initiative within the CeBM framework Create Disruptors involves understanding the impact of the business model, not merely the intent. Organization Value Chain North Carolina State University Transform Innovators Virtual Computing Lab Xerox Mobile Print 3M Optimizers Visual Attention Service Improve Animoto Custom Presentations Force.com Application Platform Enhance Extend Invent Apple Customer Value Proposition Application Platform 39 IM AR © 2012 IBM Corporation
  • 40. 3M Visual Attention Service 40 IM AR © 2012 IBM Corporation
  • 41. Organizations generally fall into one of the three categories: optimizers, innovators or disruptors Positioning of an organization’s cloud- enabled initiative within the CeBM framework Create Disruptors involves understanding the impact of the business model, not merely the intent. Organization Value Chain North Carolina State University Transform Innovators Virtual Computing Lab Xerox Mobile Print 3M Optimizers Visual Attention Service Improve Animoto Custom Presentations Force.com Application Platform Enhance Extend Invent Apple Customer Value Proposition Application Platform 41 IM AR © 2012 IBM Corporation
  • 42. Cloud’s business enablers are fuelling innovation and empowering organizations to optimize, innovate and disrupt business models …that are fuelling innovations …empowering organizations to Cloud offers six “game changing” across enterprise value chains and optimize, innovate or disrupt business enablers … customer value propositions… business models Disruptors Cloud’s Business Enablers Create Business 2 Scalability Cost Value Chain 1 Value Chain Flexibility Market Transform 3 Adaptability Cloud Enablement Innovators Framework 6 Ecosystem Masked Improve Connectivity 4 Optimizers Complexity Context-driven Customer Value Proposition 5 Variability Enhance Extend Invent Customer Value Proposition Organizations need to assess themselves using the Cloud Enablement Framework and examine the potential to innovate by leveraging the cloud’s business enablers 42 IM AR © 2012 IBM Corporation
  • 43. There are three initiatives you can start today to capture value from cloud-enabled business models 1. Establish shared responsibility for cloud strategy and governance across the Business and IT 2. Look beyond your organization’s borders to maximize value derived from your cloud adoption 3. Strategize whether your organization will be an Optimizer, Innovator or Disruptor through the use of cloud-enabled business models 43 IM AR © 2012 IBM Corporation
  • 44. Envisioning the full potential of cloud requires organizations to challenge existing approaches in their business and industry Reflecting on your business, question yourself – “What you would do if… … you could reach hitherto … you had access to unaddressed customers or unlimited computing markets and target them based on resources to scale your their individualized preferences business? through analytical insights? …you could redefine your role in your industry and change your competitive positioning? …you could give any of your customers access to any of your products and services anytime, anywhere, on any device? … you could easily and seamlessly connect and … you could inexpensively collaborate with business and rapidly develop and partners and customers? launch new product & service offerings? Organizations that maximize the potential of cloud’s business enablers can position themselves to capture significant value and sustainable advantage 44 IM AR © 2012 IBM Corporation
  • 45. Cloud Computing deployment became part of the existing IT optimization strategy and roadmap Dynamic Standardize and automate Standardize services Virtualize Reduce deployment cycles Remove physical Enable scalability Consolidate resource boundaries Flexible delivery Increase hardware Reduce infrastructure utilization complexity Reduce hardware Reduce staffing costs requirements Simplify deployments Manage fewer things better Lower operational costs Cost IM AR = Flexibility 45 © 2012 IBM Corporation
  • 46. Some workloads are ready for cloud delivery Sensitive Analytics Data Information Intensive Ready Infrastructure Storage for Cloud Highly Customized Isolated Industry Workloads Applications Not yet Collaboration Virtualized Mature Workloads Development 3rd Party SW & Test May not yet be ready Workplace, Desktop Complex Pre-Production & Devices for migration Processes & Systems Transactions Business Processes Batch Regulation Infrastructure Processing Sensitive Compute 46 IM AR © 2012 IBM Corporation
  • 47. The realities of cloud versus hype Reality Today Cloud Hype Future Reality So, no “BIG BANG” ! ≠ Trad. SO Trad. SO Everything in the Internal IT plus 3rd party cloud and all at once Sourcing mixture - for some things retain legacy, plus private/hybrid, public Source: Market Insights and Gartner People tend to overestimate what will happen two years from now and underestimate what will happen in 10. 47 IM AR © 2012 IBM Corporation
  • 48. Cloud Computing has moved beyond the hype. It is a highly disruptive trend that brings with it new opportunities Disruption “Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking. As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions.” – IDC Opportunity “What supply chain models did to manufacturing is what cloud computing is doing to in-house data centers. It is allowing people to optimize around where they have differentiated capabilities.” – Gartner Mobile Cloud Services “In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.” – Yankee Research 48 IM AR © 2012 IBM Corporation
  • 49. What is coming? In 2021, cloud computing is simply computing, corporate office parks are senior housing facilities and the IT organization of the future has been absorbed by the business. Internal IT becomes an internal cloud. IT becomes a services broker. IT will become a function of the business. Gartner, 2011 49 IM AR © 2012 IBM Corporation
  • 50. Acessem agora! Saiba mais sobre Cloud na Comunidade Cloud Computing Brasil: http://ibm.co/cloudcomputingbr *Conheçam o IBM SmartCloud Provisioning – Download gratuito! (Universidade) http://www.ibm.com/developerworks/br/downloads/tiv/smartcloud/index.html dW Brasil: www.ibm.com/developerworks/br/ @soudW IBMdeveloperWorksBrasil 50 IM AR © 2012 IBM Corporation
  • 51. Obrigado! ctaurion@br.ibm.com www.ibm.com/developerworks/blogs/page/ctaurion www.computingonclouds.wordpress.com @ctaurion Facebook, Linkedin, BranchOut 51 IM AR © 2012 IBM Corporation