Rethink IT. Rethink Business. Cloud Computing. October 18-19, Jim Sanders

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1 Rethink IT. Rethink Business Cloud Computing October 18-19, 2011 Jim Sanders

2 Pressures like workforce mobility and increasing productivity are placing greater demands on IT systems. Increased expectations Increased demands Increased competition of customers demand increased self-service capabilities. growth in digital data from 2007 to of the world s largest companies in 2000 remain on that list today. 54% of surveyed enterprise IT budgets in 2010 were spent on ongoing operations and maintenance costs.* *Source: Forrester Research, Inc. "2011 IT Budget Planning Guide," October 7, 2010 by Craig Symons 2011 IBM Corporation

3 As a result, cloud is an increasingly attractive means of creating and delivering IT services. Value delivered Change management Test provisioning Install database Install of operating system Provisioning environment Design and deploy business applications Months Weeks 1 day 1 day Months From traditional To cloud Days or hours 20 minutes 12 minutes minutes 51% cost savings 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

4 Efficiency Transformation IT and Business are attracted to cloud for different reasons. Rethink IT. Rapidly deliver services Integrate services across cloud environments Increase efficiency Reinvent business. Initiate new revenue streams Drive faster time to market for new services Meet changing customer expectations **Source: Gartner, Cloud Computing Services, Virtualization Top CIO 2011 Wish Lists Jan

5 Efficiency Transformation IT is drawn to cloud s cost, efficiency and control of CIOs plan to use cloud up from 33% two years ago. 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 IBM CIO Study, London School of Economics, December 2010

6 Businesses are choosing a variety of cloud models to meet their unique needs and priorities. Private cloud On or off premises cloud infrastructure operated solely for an organization and managed by the organization or a third party Hybrid IT Traditional IT and clouds (public and/or private) that remain separate but are bound together by technology that enables data and application portability Public cloud Available to the general public or a large industry group and owned by an organization selling cloud services. Traditional IT Appliances, pre-integrated systems and standard hardware, software and networking.

7 Client Manages Client Manages Client Manages Three different levels of Service in the Cloud Traditional On-Premises Infrastructure as a Service Platform as a Service Software as a Service Applications Applications Applications Applications Data Data Data Data Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware O/S O/S O/S O/S Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking Vendor Manages in Cloud Vendor Manages in Cloud Vendor Manages in Cloud Customization; higher costs; slower time to value Standardization; lower costs; faster time to value

8 IBM delivers prescriptive, repeatable cloud solutions for our clients most pressing priorities. Cloud Enabled Data Center Cloud Platform Services Cloud Service Provider Integrated service management, automation, provisioning, and self service Pre-built, pre-integrated IT infrastructures tuned to application-specific needs Advanced, reliable, highly secure and scalable platform for creating, managing, and monetizing cloud services Business Solutions on Cloud Capabilities provided to consumers for using a provider s applications running on a cloud infrastructure

9 Building a business case for Cloud Computing Software Development Life Cycle Deployment Operations How to improve this process Why you should improve this process

10 Build & Deploy Automation Service Activation Cloud Computing Landscape SOFTWARE DEVELOPMENT DEPLOYMENT OPERATIONAL LIFECYCLE TEST, PRODUCTION LIFECYCLE Governance Governance Requirements Definition & Project and Portfolio Asset Architecture Provision Optimized Workload Deployment Change Release Asset Incident & Problem License Lifecycle Defect Tracking Planning SCM Middleware Deployment Server Storage Network Security Activate Development Programming Debugging Infrastructure Deployment Orchestration Image Creation Composite Applications Image Library 10 Testing Unit Test Functional Test Performance Test Infrastructure Deployment Platform Optimized Deployment Monitoring Event BSM Systems Server, Storage, Network Image Monitoring & Assurance

11 Deployment Planning, Automation (DP&A) and Governance Request Service Service Requester Solution Architect Leverages standard environment configurations, templates and artifacts to specify deployment plans Rational Software Architect Application Artifacts and Templates Deployment Plan Retrieve Application Artifacts Rational Automation Framework Install & Configure Application Seamless Workflow IBM Workload Deployer Deployment Engineer Defines environment media, creates building block workflows, creates service definition and associated management plans Rational Asset Manager Tracing and Synchronization Tivoli Change and Config Mgmnt DB Register Config Items Provision Environment Deployment Planning Pre-deployment validation -improving accuracy Reusing standard configurations helping avoid costly mistakes Deployment Governance Linking development and operation assets for improved traceability and change management Physical Hosts Virtual Host Rational, Portal, DB2, and WAS Cloud Deployment Automation Accelerating repeatable infrastructure and software deployment through seamless workflow management DP&A brings together Rational Asset Manager, Rational Software Architect and Rational Automation Framework 11

12 Integration with the Public Cloud: The IBM Rational Desktop Connection Toolkit for IBM Cloud The IBM Rational Desktop Connection Toolkit for IBM Cloud Environments allows you to work with the IBM Cloud images through your workspace. Cloud Client for Eclipse Provides tools for interacting with IBM Cloud environment from within Rational Application Developer or Rational Software Architect, such as browsing the IBM Cloud's asset catalog, requesting instances, and managing running instances. Server Tools Extension for the Cloud Provides tools for deploying applications to virtualized WebSphere Application Server instances on the IBM Cloud. Portal Tools Extension for the Cloud Provides tools for creating and deploying applications to virtualized WebSphere Portal instances on the IBM Cloud. Deployment Modeling Extension for the Cloud Enables the Rational Software Architect Extension for Deployment Planning and Automation to interact with IBM Cloud environments, for purposes such as designing and cataloging virtual assets.

13 Why improve the deployment and management of application infrastructures? Customers are suffering from: Poor time-to-value: 4-6 week lead time to deliver an application infrastructure Manual & error-prone deployment process: 30% of bugs are introduced due to inconsistent configurations Poor hardware utilization: IT Ops avoids de-commissioning systems because of the traumatic & expensive provisioning 13

14 Lower operational costs & improve agility by standardizing & automating application infrastructure Virtualizing, standardizing, and automating the provisioning and management of middleware services helps: Lower operational costs: automation minimizes manual processes, allowing IT Ops to focus on higher-value work Improved time-to-value: provision new systems in minutes, not days, weeks, or months Better utilization of hardware resources: Rapidly create & destroy systems, allowing for better hardware sharing 14

15 Characteristics of the solution 1. Speed - build out environments quickly A new application infrastructure should take you minutes, not weeks 2. Repeatability - automation to avoid redundancy Your 2nd, 3rd, and Nth environment should be faster to build than your 1st environment 3. Consistency - limit the variables across deployments Your configurations should get seamlessly promoted from test -> preproduction -> production, across different platforms Application Description of the Application Topology Automation Magic Web Server Web Server WAS WAS Resource Definitions Resource Definitions Application DB Test Env Variables Production Env Variables

16 16 Why AUTOMATION? These processes are executed serially for each new app environment: Approvals Procurement HW Install OS Install MW Install App Install/Config 2-4 month lead time Factor out repetitive tasks to reduce lead time! Approvals Procurement HW Install Done once at cloud creation/expansion time OS Install MW Install App Install/Config Done once at image/pattern creation/customization time Click Deploy and wait Done for each environment request Hours or Minutes lead time!

17 TCO Why STANDARDIZATION? Transform application silos, eliminating redundancy, improving consistency, and therefore reducing costs across the enterprise Business Logic Business Logic Application Architecture Application Architecture Savings Middleware Architecture Middleware Architecture Deployment Process Middleware Install & Config Deployment Process Middleware Install & Config Enterprise Standardization Business Logic Application Architecture Business Logic Application Architecture Common Middleware Architecture Availability Validation Availability Validation Common Deployment Process Pattern-based Middleware Architecture System Life-cycle & Maintenance Logging, Archiving, etc System Life-cycle & Maintenance Logging, Archiving, etc Common Availability Validation Common System Life-cycle & Maintenance Procedures Common Logging, Archiving, Monitoring, etc Department A...Department Z Department A...Department Z

18 How does IBM address the problem? Tools to standardize and automate the provisioning and de-provisioning of middleware patterns Pre-configured product patterns that can be assembled into middleware topologies Governance tools to manage the life-cycle of middleware components and patterns Selects a pattern based on application requirements Automation Magic Creates & customizes patterns of middleware services Application Developers Instantiates & manages patterns of middleware services in the cloud Admin Access applications in the cloud middleware services on virtualized infrastructure WAS Database Application Clients

19 Data Center strategy Be the technology service provider of choice for all of ING Use state of the art technology to drive IT Transformation and in time innovate towards an IT service broker (change business model) Effective, efficient and innovative technology that will reduce operational risk and facilitate OIB s customer focus Deliver stable and secure service for ING/OIB customers Cloud Value Drivers and Effects Providing automated delivery of standardized stacks and solutions Providing development and test resources for a global financial institution Leveraging IBM System p5/6/7 systems Automating provisioning and deprovisioning of virtual servers for development teams Improving time to market, reducing costs and delivering higher quality Enabling innovation in a competitive market

20 VM Partition VM PArtition VM Partition VM Partition VM Partition VM Partition VM Partition Web 2.0 User Interface Number of DC s:16 Service Automation Layer being implemented Basic Uncoordinated Infrastructure Reactive Workloads being migrated Standardized Standard resources configurations Reduce complexity Hardware being deployed Rationalized Consolidate to fewer Economies of scale Target state and Roadmap Virtualized Infrastructure resources pooled Flexibility, reduce costs Service based Service holistically Service level delivery Web, Collaboration and Infrastructure Technology Highly Threaded Throughput-oriented Scale Out Capable Lower Quality of Service Analytics and High Performance Computing Technology Compute intensive High I/O Bandwidth High Memory Bandwidth Floating point Scale out Capable Transaction Processing and Database Technology Scale High Transaction Rates High Quality of Service Handle Peak Workloads Resiliency and Security Business Applications Technology Scale High Quality of Service Large Memory Footprint Responsive Infrastructure Accelerate the process Tivoli TSAM v7.2 Service Service TPM Monitoring Request Mgr Automation Provisioning Mgr Manager Tivoli Process Automation Engine Orchestration workflows Service Image Workflows Automation Library Templates TADDM VM Control Cisco UCS System p / SUN UCS HMC NIM HMC Manager TUAM Usage Reports Billing Reports System z NIM Hypervisor Hypervisor Hypervisor (vsphere) (VMware) (PowerVM) (zvm) Storage Network Storage Network Storage Network (Vmax) vblock People and organization Services and Process Technology The maturity model above depicts the maturity growth potential of the short term and the strategic initiatives

21 Sample scheduled savings through cloud delivery Schedule Current Process IT Operations Labor Savings Hardware Purchase Avoidance Service Automation Effort Average ~ 42 days, down to ~2 days elapsed Provisioning just a small % = 202% ROI Benefits Reduce Allocated IT Spending through Better Business Alignment (indirect) Current Process TCO Software Service Automation Average ~ 11 days, down to ~ 3 days effort Labor / Training Costs 0% 20% 40% 60% 80% 100% Infrastructure Design Boarding RFS Handling Basic OS Provision Middleware Install Service Activation Deactivation

22 Tips for Success & Why IBM

23 Several questions need to be considered as we deploy cloud Key questions to consider: What are the key capabilities needed to deploy cloud? Are infrastructure assets optimized for cloud? What are the key middleware assets needed to deploy cloud? How to we ensure that cloud services are managed and deployed with higher levels of automation? How can I scale cloud deployment? Is there an opportunity to deploy more seamlessly against common workload adoption patterns? How can I make cloud deployment easier and faster? How do we find the right balance between ease/speed and customization of cloud deployment? Deploy Deploy 2011 IBM Corporation

24 Several questions need to be considered as we consume cloud Key questions to consider: Can we consume business processes from the cloud? How do we ensure business process integration? Can we secure the cloud? How do we address privacy concerns within the cloud? Can we provide applications from the cloud? Which applications could / should be provided as a cloud service? Can we provide Infrastructure and platform services from the cloud? Can we customize the cloud service attributes to reflect my needs for a specific workloads? How do ease transition of key workloads, like ERP, to infrastructure consumed from a cloud? Consume Consume 2011 IBM Corporation

25 Tip 1 Clearly understand why you want to be in the cloud, what you want to achieve (and who will measure your success) Tip 2 Analyse where cloud best fits in your IT delivery mix Tip 3 Understand which of your workloads are right for the cloud (and which are ready to move) Tip 4 Know where and how you are going to realise the payback from your cloud investments Tip 5 Examine your entire service life cycle to best realise the full potential of cloud Tip 6 Standardisation is crucial Tip 7 Plan now to mitigate the risks of moving to the cloud (and make sure you really know your data well) Tip 8 Your cloud provider can change the delivery model, but you need to change the consumption model

26 Tip 9 Cloud computing requires new roles and new competencies Consultative analysis, design guidance, self-guided information & education Via F2F, self-service portal, web-based registration & ordering process Enabling customers for managed services, ensuring steady-state access to resources Desktop Cloud: Using virtual desktop resources Developer Cloud: Developing applications, using dev. tool instances Installing & configuring platform; Managing service templates, capacity, changes, events; Monitoring infrastructure Viewing usage & billing reports; Managing service contract; Admin. of user / groups Creating service templates Creating supporting simple or composite images Test Cloud: Testing applications Storage Cloud: Storing and retrieving information Initiating service instances; Making changes to service instances; Approving / rejecting service instance requests; Decommissioning service instances

27 Infrastructure Mgmt Interfaces Platform Mgmt Interfaces Software Mgmt Interfaces BP Mgmt Interfaces Tip 10 Establish your cloud architecture and integrate it with your service delivery strategy Cloud Service Consumer Cloud Service Provider Cloud Service Creator Consumer End user Cloud Service Integration Tools Cloud Services Existing & 3 rd party services, Partner Ecosystems API BPaaS Common Cloud Platform OSS Operational Support Services Service Delivery Catalog Service Manager BSS Business Support Services Customer Account Service Offering Catalog Business Manager Service Offering Service Component Developer Service Composer Service Integrator Consumer Business Manager Consumer Inhouse IT API API SaaS PaaS Service Consumer Portal & API Service Automation Service Request Provisioning Monitoring & Event Change & Configuration Incident & Problem IT Asset & License Image Lifecycle IT Service Level Capacity & Performance Contracts & Agreement Subscription Service Request Pricing Order Entitlement Metering Rating Billing Service Development Portal & API Offering Manager Service Creation Tools Service Development Tools Business Processes Applications Middleware Infrastructure Service API IaaS Platform & Virtualization Deployment Architect Transition Manager Operations Manager Clearing & Settlement Service Provider Portal & API Accounts Payable Security & Risk Manager Accounts Receivable Customer Care Service Runtime Development Tools Software Development Tools Consumer Administrator Infrastructure Image Creation Tools Security, Resiliency, Performance & Consumability Governance

28 IBM has proven solutions to efficiently deliver on every phase of Cloud Design Deploy Consume Establish a cloud strategy and implementation plan to get there. Build cloud services, in the enterprise and/or as a cloud services provider. Manage and optimize consumption of cloud services. Example capability Infrastructure strategy and design services Network integration services Cloud security strategy roadmap Preconfigured deployment patterns Appliance with pre-installed, pre-configured images SaaS offerings Integration Public cloud for application-specific workloads

29 Our own use of cloud extends across the entire IBM organization and has transformed the IBM business on multiple levels. 109,000 IBM employees use Blue Insight, the world s largest business analytics private cloud. 6,000 IBM marketers across 6 continents utilize IBM cloud-based Marketing Operations daily IBM users of Blueworks Live to improve internal business processes 200 million minutes of IBM web conferencing with LotusLive Meetings. Avoided $22M in expenses by leveraging a development and test cloud. 1,200 users in IBM China development labs, plus IBM Call Center teams in the United States and India, have migrated to a desktop cloud environment. 29

30 ibm.com/smartcloud 30

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