The document provides an overview of cloud computing and its benefits for municipalities. It discusses how cloud computing can help cities work smarter by leveraging information, anticipating problems, and coordinating resources. The document outlines different cloud deployment options and common adoption patterns among cities. Case studies are presented showing how cloud computing has helped cities in Rio de Janeiro, China, and several towns in New York to improve services, reduce costs, and drive economic development.

1. Malcolm Smith
Business Development Executive –
April 11, 2012 Cloud Solutions
malcolms@ca.ibm.com
416.478.9908
Roadmap to a Municipal Community Cloud
in Canada
© 2012 IBM Corporation

2. A planet of smarter cities:
In 2007, for the first time in By 2050, city dwellers are expected
history, the majority of the to make up 70%of Earth’s total
world’s population—3.3 billion population, or 6.4 billion people.
people—lived in cities.
2
2 2 © 2012 IBM Corporation

3. Innovative leaders create opportunities from today’s harsh realities
Sustainability
Investment
Innovation Community
Declining Increasing
Budgets Threats
Aging Changing
Infrastructure Populations
3 © 2012 IBM Corporation

4. Cities cannot simply work harder…
They must work smarter
4 © 2012 IBM Corporation

5. Smarter cities are cities that drive sustainable economic growth by…
Leveraging information to make better decisions
Anticipating problems to resolve them proactively
Coordinating resources to operate effectively
5 © 2012 IBM Corporation

6. Agenda
Cloud & deployment options
Reasons to do it
Dependencies for Cloud
– Technologies & management disciplines
– Architecture
– Services
What Cities are doing with Cloud
The common roadmap
6 © 2012 IBM Corporation

7. IBM offers extensive real-world experience working with some of
the most innovative, forward-thinking IT organizations on the
planet. Our point of view is based on real world experience.
successful private public cloud users. managed virtual
cloud engagements machines.
in 2010.
“IBM has one of the most comprehensive cloud portfolios,
with the cloud integrated throughout its many lines of
business. Moreover, IBM’s consulting arm has put them in
touch with numerous early adopters and special use cases—
all of which helps the company stay ahead of competitors. ”
– Jeff Vance, Datamation
80%
of Fortune 500
companies are using
IBM cloud capabilities.
7 © 2012 IBM Corporation

8. Cloud computing is a new consumption and delivery model inspired
by consumer Internet services that exhibits the following key
characteristics:
1. On-demand self-service
2. Ubiquitous network access
3. Location independent resource pooling
4. Rapid elasticity
5. Pay per use
…that creates a configurable supply chain for IT
services
8 See NIST Definition of Cloud @ http://www.nist.gov/itl/cloud/upload/cloud-def-v15.pdf © 2012 IBM Corporation

9. Since “Cloud” is a computing style, there are many ways to deploy a Cloud. Some organizations
buy the parts and build their own private cloud. Others get help to implement and / or run their
cloud while others buy services from public clouds. Large enterprises are focused on building
private clouds. Small organizations are more likely to buy public cloud services.
Private cloud Shared or Hybrid Public cloud
Internally operated 3rd party 3rd party hosted or Community
cloud
operated and operated
Enterprise Enterprise Enterprise
Enterprise Enterprise Users
A B
data center data center A B
Private cloud Managed Hosted private Shared cloud Public cloud
private cloud cloud services services
Client DC Client DC 3rd party DC Mix of private and Shared resources
Client owned Client owned Shared ownership public services Elastic scaling
Client integrates 3rd Party operator 3rd Party operator Shared across Pay as you go
Client operated More Highly standardized enterprises Fully standardized
Highly standardization & Some Utility pricing Subscription or Little customization
customized less customization membership Public Internet
Some utility pricing pricing
Access over VPN
Trade-offs include costs, scalability, and customization
9 © 2012 IBM Corporation

10. Organizations achieve efficiencies through IT virtualization,
standardization and automation – key drivers of cloud computing
Virtualized
Higher utilization
Economy of scale benefits
Lower capital expense
Lower cost
Lower operating expense
Standardized
Easier access
Flexible pricing
Reuse and share Increased speed
Easier to integrate
Automated
Faster cycle times
Lower support costs
Optimized utilization
Improved compliance Improved flexibility
Optimized security
End-user experience
10 © 2012 IBM Corporation

11. Son Huynh
IBM Business Value Growth with Cloud Implementations: TCO Analysis
20 -25 %
Operations
25 -30%
Implementation
30 -35 %
Virtualization
Service
Mgmt and Application
Auto Pattern
Provisioning Prov. And
Mgmt
Development
Traditional Virtualized IaaS PaaS
Infrastructure
Potential Impact: Potential Impact: Potential Impact:
• 65% Reduction in • 30% improvements on
Provisioning time • 90% reduction in top of virtualization
• 200 - 500% process overhead • 80% reduction in
improved • 100 -200 % ROI workload deployment
Life-Cycle TCO
Pain Points resource utilization • 6-12 Months and management
• Ability to track • 60 -100 % ROI payback • 3-9 Months payback
Resources • 3-9 Months
• Manual Installation
and configuration
Payback
• Standard &
Automation
• ...
* Number and percentages are approximated.
11 © 2012 IBM Corporation

12. The move to Cloud for an outsourced client accelerated IT service delivery
by increasing resiliency, improving quality, and reducing operating costs
Solution Lever will… Delivering Significant Benefits
Increased agility / Speed to market
Users “serve themselves,”
Service improvement
On Demand requiring less support and
Self Service Improved Quality
improving productivity by
Reduced Costs
delivering services faster
Increase employee satisfaction
Service improvement
Leverage
Reduce effort, time and errors by
Labour
Automation of Improved Quality
Management automating repeatable tasks and
Increase resiliency
services
Reduced Cost
Service improvement
Reduce complexity: more tasks
Standardization of Improved Quality
can be eliminated or automated,
Workloads Increase resiliency
reducing software and labour
Reduced Cost
costs and errors
Capacity Flexibility
Standardization
Virtualization of Increase workload capacity &
Infrastructure
Reduced Cost
Hardware
Leverage
flexibility over traditional physical
Workload optimization and
environments
operating flexibility
Utilization of Increase utilization of Capacity flexibility
Infrastructure infrastructure and increases Effective utilization of Data Capacity
economies of scale Reduced Cost
12 © 2012 IBM Corporation

13. Cloud computing can reduce data centre costs by 20% to 30%.
Traditional IT Budget Competitive IT
Breakdown Budget
Invest in new Business
Capabilities (<25%)
Typical Spend on IT Maintenance = 75%
Software Costs Invest in new Business
Needs Operating
(> 35%) Savings %
Environment
Power Costs Production* 1%
Performance* 1%
Reduce Software Costs
Labor Costs (typically 20%) DR 13%
(Operations & Dev / Test 94%
Maintenance) Power Costs
(reduce 20%) * Includes 5x capacity buffer and
significant performance and
Labor Costs operational benefits.
(reduce 10%)
Hardware Costs
(annualized)
Hardware Costs
(reduce 20% to 30%)
13 © 2012 IBM Corporation

14. Cloud Computing Management Platform - Service Offering Management
14 © 2012 IBM Corporation

15. Four common cloud adoption patterns are emerging. Cities are
adopting all four to reduce data centre costs, increase agility, and
drive economic development
IaaS: Cut IT expense PaaS: Accelerate SaaS: Gain Innovate business
and complexity time immediate models by becoming
through a cloud to market with cloud access with business a cloud service
enabled data center platform services solutions on cloud provider
CIO – IT Ops SW developers (CIO / CXOs – marketing, CEO, CAO, COO, CMO
• Reduce costs for LOB finance, procurement, • Create new revenue
HW, SW, labour • Faster time to market. product development, streams
and DC Reduce errors ,… • Create new channel
• Improve testing • New services • Faster time to market
• Innovation • Reduce selling costs
• Integrate existing
services
15 © 2012 IBM Corporation

16. “We can predict problems and be proactive” - City of Rio de Janiero
Client Challenges
Six million citizens of this city live with the danger of landslides
and floods. When disaster strikes, the city must respond quickly.
Despite having multiple resources, public relief agencies and
medical personnel at its disposal, the city and its agencies
struggled to communicate with each other and coordinate rescue
efforts .
Without a single, integrated view of the crisis and the ability to
share critical information, the city could not warn the public in a
timely fashion and save lives. “This Center positioned Rio
among the WW Smarter
Solution Cities, and that was my dream
City officials gained the ability to alert the public sooner, when I became Mayor; now it
coordinate relief efforts more efficiently and respond to crises is a reality.“ -
faster with an emergency information portal solution. Eduardo Paes,
Mayor, City of Rio de Janeiro
The system integrates the city’s existing resources, such as traffic
cameras and rain meters, as well as near real-time data in a
single view.
This provides officials with a more comprehensive picture of a
disaster, helping them discuss and synchronize rescue efforts,
16 © 2012 IBM Corporation

17. The IOC provides a broad set of functions for city leaders
Event correlation
Event Mgt. Mouse over Pop-ups detection
Data drill down
Integrated System Monitoring
Click to Action
Intelligent Operations Center
Roles & Permissions Active Workflows:
Automated Emails & SMS
Data Exporting Progress Reporting
17 © 2012 IBM Corporation

18. Smarter Water
6x
Increase in global water usage since
1.1 billion
The number of people that do not have
45%
Up to 45% of water is lost due to leaks in
the 1900s; twice the rate of human access to safe water according to The an aging water infrastructure around the
population growth. World Bank. world.
Work Optimization
enables water utilities to optimize maintenance and repair
schedules based on type of work order, location, crew and
equipment needed
allows the utility to address “work on the way” and “work in
the neighbourhood” while responding to high priority work
Usage & Revenue Analysis
allows utilities to better understand and predict water usage
provides insight in predicting future patterns of asset failure
and identify targets for preventative maintenance
detects usage anomalies
ensures environmental integrity of city water system by
addressing flood, water quality, and erosion control.
Customer Problem addressed
Increasing maintenance costs, increasing work backlog,
inefficiencies in utilization of limited numbers of skilled work
crews, increasing transportation costs
Inability to support analysis for rate case development and
improved pricing models
18 © 2012 IBM Corporation

19. WUXI iPark Cloud Center
Major city in China - centre for industry and commerce
Goal was to balance economic development, environmental
protection, and the wellbeing of its 6M+ citizens
Wanted to create a flexible, shared computing resources for
local government projects and for software development
start-ups to lower barriers to market entry for new companies
by eliminating need to commit capital to in-house
infrastructure.
"The combination of the IBM
Built Wuxi Cloud Center; a shared infrastructure that Smart Business cloud
– enables high utilization of available resources portfolio and IBM Blue Cloud
– Delivers cost-efficient dynamic resources as required, and technology enabled us to
create a highly flexible
priced according to usage platform for delivering rich
services via the Internet."
- Paul Lu, CEO of Wuxi
Cloud Center
19 © 2012 IBM Corporation

20. IBM developed a Municipal Shared Services Cloud in a First-of-a-Kind
project with a number of NY cities and towns to validate the technology &
business model
Cloud SaaS services attractive for smaller businesses & governments
Shared Data Management uses model to link independent services and data
ISV Tax
Towns Info-Based ISV 1
Acc’t
Composition
Building
Pangoo Platform
Water ISV 2
Multi-tenant Security
Cities Tax
Subscribe Bill S4SE
Assess
Cloud Infrastructure Assess
Service
Villages Gov’t Maps
Providers
ISV3
Client Relation
Clients Owners Composer Ecosystem
20 © 2012 IBM Corporation

21. Some things to consider as you move to cloud
Governance of standards and shared virtual resources
ITIL processes and management disciplines change
The org structure of IT changes as well as the skill profiles and mixes
Procurement of cloud services and systems needs to change
Cloud is a style that is as applicable to business services as it is to IT – how is your City
adopting a cloud?
21 © 2012 IBM Corporation

22. Cloud is a new style of computing – start your journey today.
Check Cloud readiness – do relevant processes, procedures as well as
1
roles & skills exist to manage the expected hybrid cloud delivery models?
Analyze workloads and select delivery models – which workload is
2
Moving suitable for which cloud model; which service levels are needed
based on business requirements; what happens to “legacy“?
to
Define and develop Cloud Computing architecture; design
Cloud 3 blueprint for processes, technology, organization
4 Establish management procedures to manage the different
cloud models like a homogeneous environment
5 Define and publish a service catalogue for all relevant services
to enable simple access to all services and disguise complexity
of service delivery for customers / end users
Get onto IBM’s SmartCloud Enterprise and start experimenting
– See what your Cloud could look like / Use it to develop a business case for change
– www.ibm.com/cloud/ca
Assess your current state and readiness for Cloud or assess which of your workloads are
most suitable to move to a cloud
– www.ibm.com/cloud-computing/us/en/consulting-and-implementation.html
22 © 2012 IBM Corporation

23. Thank you.
23 © 2012 IBM Corporation