Making Cloud Business Steve Heeney IBM Cloud Leader

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1 Making Cloud Business Steve Heeney IBM Cloud Leader 2011 IBM United Kingdom Lim

2 Agenda What Cloud is, and what it isn t Cloud facts and figures Who s buying and what are they buying What are the benefits? How to plan and engage

3 re you thinking about Cloud? An effective cloud computing deployment is built on a Dynamic Infrastructure and is highly optimized to achieve more with less! CLOUD Dynamic provisioning for workloads SHARED RESOURCES Common workload profiles Flexible delivery & Self Service STANDARDIZE Operational Efficiency AUTOMATE CONSOLIDATE Physical Infrastructure Traditional IT VIRTUALIZE Increase Utilization the two biggest hurdles solution provider face as they make the leap to the cloud are their own sales force and their customers "If they [customer] can't see it, they feel very uncomfortable about it," [Bova said of customers hesitance to move to the cloud. ] (Tiffany Bova, VP Gartner XChange 2010, March 8 th 2010)

4 There is a spectrum of Cloud Computing deployment models Private Cloud Services, behind a firewall Standardized Services Delivery Model 1 Delivery Model 2 Delivery Model 3 Delivery Model 4 Delivery Model 5 loud scope Enterprise Data Center Private Cloud Enterprise Data Center Managed Private Cloud Service Provider Operated Enterprise Hosted Private Cloud - Dedicated Service Provider Operated Ent A Ent B Ent C Hosted Private Cloud - Shared Service Provider Operated User A User D User B Cloud Public Services User C User E Operator Enterprise Service Provider wnership Enterprise Enterprise Service Provider Enterprise (Private) Service Provider ( Public ) Service Provider Location Enterprise Svc Provider Revenue model Time & materials, fixed price, etc. Agreed-to Mgmt Fee Time & materials, fixed price, pay-as-you-go Pay-as-you-go Access Internal enterprise network Access through VPN, public internet Public internet onsumer Single enterprise Multiple enterprises Any enterprise/ user sset use Dedicated (single tenant) Mixed Dedicated 2010 Multi-tenant IBM Corporation Multi-tenant Source: Market Insights Cloud Phase 2 opportunity assessment, Sept 11, 2010, in consultation with International Planning & Research

5 Agenda What Cloud is, and what it isn t Cloud facts and figures Who s buying and what are they buying What are the benefits? How to plan and engage

6 Major Markets dominate in early Cloud adoption but the Growth Markets have a CGR of 35% vs Major Markets with 24% Unit: $B (USD) rkets IMT (23) jor Market US IMT Canada IMT Alps IMT Germany IMT Nordic IMT UKI IMT Italy IMT France IMT SPGI IMT BeNeLux IMT Japan IMT jor Markets Total CAG owth Marke Korea GMR GCG GMR ANZ GMR ASEAN GMR ISA GMR Brazil GMR Mexico GMR SSA GMR RCIS GMR ECE GMR MENA GMR SubSA GMR owth Markets Total and Total Source: Market Insights Cloud Phase 2 opportunity assessment, Feb 7, 2011

7 IBM Cloud Centers Global Breadth and Depth Technical & Sales Training 338 technical architects in 22 countries to be trained by June BDE,PE, DPE in 22 countries to be trained by June SEI Private Cloud Integrated sales team members in 21 IMT/GMTs to be trained by 3/31 Dedicated Resources 123 Tiger sellers in 21 Tivoli and STG 38 SEI Private Cloud Integrated Teams in 21 IMT/GMTs 11 IBM Cloud Labs Global Sales Acceleration Center IMT/GMTs across GTS, Delivery Capabilities 7 data centers delivering IBM Cloud services 9 global security operations centers delivering Manage Security Services from the IBM Cloud 55 global BCRS sites delivering Information Protection Services

8 ver half of UK companies indicate high interest in dopting many workloads in either Public or Private clouds Comparison of Cloud Delivery Models for the United Kingdom (Current Use/Consideration) Workloads Business social networking tools Web-facing applications Team workspaces / workgroup CRM HR learning/training Back-up/recovery Data analysis/data mining/analytics SCM Telephony services Storage Archive Data warehousing/data mart Business transaction lifecycle processes Disaster recovery Server Development environments Expense reporting Systems management Desktop ERP OLTP Security Application Lifecycle Management Design automation/hpc Public Private Hosted Private 82% 64% 65% 78% 71% 67% 70% 82% 64% 65% 75% 65% 62% 68% 65% 61% 70% 56% 59% 69% 68% 58% 60% 52% 57% 67% 67% 57% 66% 61% 56% 68% 68% 55% 66% 68% 53% 72% 72% 52% 80% 74% 51% 62% 68% 48% 67% 61% 44% 77% 70% 44% 75% 66% 42% 56% 50% 41% 58% 48% 41% 67% 2010 IBM 68% Corporation 37% 66% 48% 28% 58% 47% * * * * * * Source: Market Assessment Panel, Uncovering Cloud Computing Opportunities, 2010 Base: depending on the workload, UK=30-82; *Sample sizes of less than 30 8 January 2011

9 Top Challenges in Moving to a Public or Private Cloud Barriers to Cloud Adoption Security concerns are the most important fear among IT decision-makers for both public and private cloud, especially public cloud. Other factors, such as - lack of technology maturity - lack of personnel skill sets - organizational challenges and - difficulty integrating with existing infrastructure will likely decrease over time as cloud success stories circulate. Percent of Respondents Source: Cloud Computing Attitudes, IDC, April, 2010

10 Security is among the top concerns with cloud computing... The IBM Security Framework is a key differe entiator t in the marketplace Application and process People and identity Help keep applications secure, Mitigate the risks protected from malicious or associated with user fraudulent use, and hardened access to corporate against failure resources Data and information Understand, deploy and properly test controls for access to and usage of sensitive data Network, server and end point Optimize service availability by mitigating risks to network components Physical infrastructure Provide actionable intelligence on the desired state of physical infrastructure security and make improvements IBM Security Framework Professional services Describes the business landscape of security IBM Cloud Security Guidance Managed services IBM Capabilities and Offerings to Help Hardware and software Describes the technology landscape Catalogs of products, services and solutions

11 Agenda What Cloud is, and what it isn t Cloud facts and figures Who s buying and what are they buying What are the benefits? How to plan and engage

12 Continued Cloud momentum with customers Government/ Education Private, Shared Clouds, Desktop Banking Private Clouds Retail Shared private clouds, Saas Manufacturing - Saas, shared private Hi-Tec - All

13 rivate Clouds What IBM can provide? Flexibility Time to Results Install Ba ase Workload Skillset Reference architectures on single BOM for channel Configured solutions XS, S, M, L, XL Fast Start services for configured solutions Cloud Cloud on-premise integration Education/ enablement/ strategy workshops and partner paths Financing options 13

14 M s Cloud solution portfolio covers virtually all needs Enterprise Data Center Private Cloud Enterprise Data Center Managed Private Cloud Service Provider Operated Enterprise Hosted Private Cloud - Dedicated Service Provider Operated Ent A Ent B Ent C Hosted Private Cloud - Shared Service Provider Operated User A User D User B Cloud Public Services User C User E Cloud Services (XaaS) - $139B* Arms Supply (Cloud Technologies) - $60B* ISDM Cloudburst Systems SW Cumulus Custom Cloud Info Mgt Ent erprise Priv vate ($36B) TivoliLive IPS Managed Security IBM Cloud Maintenance Services Mana aged Private ($19B B) IBM Cloud services Sell thru BP s Sell to BP s BP resale of IBM Cloud Services Hosting Provider Model IBM Cloud Hosting Provider Kit Host ted Private ($16B) SmartCloud - Enterprise GTS Cloud Services IBM Industry Cloud Services Attach IBM Cloud Services to Private Cloud Technology deals Sell with ISV s Lotus Live & Other SWG Cloud Services ISV SaaS Services Communi cations Service Provider Platform Pu ublic Servi ices ($104B) Cl oud Service es Provider ($24 B) * 2015 WW Cloud Market Size: Source IBM Market Insights Cloud Phase 2 opportunity assessment, Feb 7, 2011

15 Agenda What Cloud is, and what it isn t Cloud facts and figures Who s buying and what are they buying What are the benefits? How to plan and engage

16 Moving your IT to the cloud can drive significant benefits. Capabilities From To Server and storage utilization Self service percent None Cloud accelerates business value across a wide variety of domains percent Unlimited Test provisioning Weeks Minutes Change management Months Days or hours Release management Weeks Minutes Metering or billing Fixed cost model Granular Standardization Complex Self service Payback period for new services Years Months 1 Based on results from IBM s Technology Adoption Program. Client-specific results can only be ascertained after a return on investment analysis.

17 Select Create a new workshop and click the OK button

18 How is the BVA tool used? A proven process to support customers with a ROI analysis ROI Analysis Process Position Interview Generate Validate Present Understand strategic goals Identify ROI sponsor Discuss ROI approach and methodology Complete questionnaire Understand business drivers and dtechnical environment Input data into ROI tool Estimate project implementation costs, timescales and resources Conduct internal review Review analysis with sponsor Revise input and assumptions Rerun analysis Generate new report Present ROI to management board Review business benefits Discuss next steps and acceptance criterias REVISE INPUTS

19 Agenda What Cloud is, and what it isn t Cloud facts and figures Who s buying and what are they buying What are the benefits? How to plan and engage

20 entifying Client Pain Points Cloud computing = selling opportunities to address client needs Key Pain Points Lost business opportunity - IT lacks agility Long deployment timelines (weeks/months+) Change process complex (people, cost, time) & prone to error Upfront investment for new infrastructure too high Server sprawl with low utilization Costly Compliance, auditing, and security patching Don t know what compute resources are used or how much they cost Limited funding of new IT priorities because budget consumed maintaining existing IT infrastructure

21 Probing Questions to assess Client Cloud Needs Response time How quickly can you react to deliver new IT service? Steps to provide IT resources - How many steps are in the provisioning/ de-provisioning rocess? Support resources - What is the ratio of system admin staff to servers or users? Outages - Have you experienced outages due to human error? Scalable IT - How are systems sized and scaled quickly (peak usage, CUOD)? Allocation of IT resources - How many images per user? Is IT sized for min, mean, or peak? IT configurations - How many different configurations used? How do you manage backups? Measurement system - Level of metering & charging method used? How is software license ompliance managed? Allocation of budget - Does your budget allow for innovation supporting new business initiatives? Is your budget eaten up on capital IT expense?

22 Through your client discussion, identify the entry point that you think is the most likely tem Entry Point Description 1 Cloud Strategy and Design Help is needed to develop a Cloud business, technology and operating strategy and understand d how to capitalize on the potential ti business benefits (flexibility, cost savings, etc.). 2 Cloud-Enabled Help is needed to set up, migrate and/or optimize Data Center the technology infrastructure to enable a Cloud implementation and to maximize the value of Cloud. 3 Cloud Application Workload Services Help is needed to develop, set up, deploy and/or consume applications as workloads on the Cloud. Area of Focus? Y/N? Priority level? l? Comments? Y/N? Priority level? Comments? Y/N? Priority level? Comments?

23 Discuss Virtualization with the client and assess where they are on the path to virtualization ti he conversation could include these points: ou ask a lot of your IT systems. And the reality is, to make your business more agile you ask even more. If your IT staff spends all of their time worrying about security, uptime and capacity problems, they won t be working with you to drive innovation. You need your infrastructure to help pyou in the marketplace, to help you innovate, to help you be more competitive, to help you succeed. oday, success demands agility. You need to adjust to changes in your business, from your customers, and in the world. IBM offers virtualization solutions with Integrated Service Management designed to help your business be more agile. ith these solutions, you can: Consolidate resources with a choice of virtualization technologies to improve efficiency and reduce ongoing costs do more with less Manage workloads simply to make it easier for your IT staff to support the key business priorities Automate processes to reduce management costs and make execution of key tasks more consistent Optimize delivery of services so that applications can quickly respond 2010 IBM to Corporation the demands of the business.

24 Through your discussion, assesss the client s virtualization maturity level aturity Activity evel 1 Consolidate Resources 2 Manage Workloads 3 Automate Processes 4 Optimize Delivery Description With virtualization, you can reduce the number of servers, storage, desktop, and network devices to reduce complexity and make IT management sim mpler. You can also reduce electricity used to power and cool these systems and save on floor space in your data center. Consolidation with virtualization can reduce complexity by reducing the number of physi ical devices. But, virtualization creates a new set of management demands and more work for your IT staff. With a virtualized infrastructure, you have the ability to assign resources to your high hest priority business needs. With automated processes based on best practices and business rules, you can reduce manual errors as your IT systems automatically respond to changing business conditions. You need to let users self-provision IT resources and optimize delivery of IT services. This can help assure that resources are delivered in the most timely and efficient manner. Area of Focus? Y/N? Priority level? Comments? Y/N? Priority level? Comments? Y/N? Priority level? Comments? Y/N? Priority level? Comments?

25 By introducing the IBM Cloud Reference Architecture, you can discuss the client s architecture t readiness for cloud IBM Cloud Computing Reference Architecture Questions for the Client Have you adopted, or are you adopting, a Cloud Reference Architecture? Y/N? What does it look like? Please provide description (diagram, documentation, etc.) What are the current levels of development and deployment? Please describe

26 Prioritizing Workloads to Move to Cloud Computing ou can use simple spreadsheets to prioritize workloads. Be sure to have omeone who can fill in the spreadsheets as you discuss workloads. he discussion might look like this: 1. Describe the workloads 2. Identify the workloads to move to cloud and the priority of moving them Workload Categories Priority to Move to Cloud 3. Select the cloud deployment model(s) that best fit each workload Workload Analytics Collaboration Development / Test Desktop / Devices Compute Storage Move? Pi Priorityit Y 1 Y 2 Y 3 N 0 Y 2 Y 0 = None 1 = Low 2 = Med, 3 = High 1 Deployment Traditional Private Mgd Private Host Priv Shared Public Traditional Private Managed Private Hosted Private Shared Services Public Services

27 For each workload, identify the main drivers and challenges to moving the workload to cloud computing Drivers Decrease capital expenditures Decrease operational expenditures Lower Total Cost of Ownership Aids in disaster recovery Speed time to deployment Improved availability Improved security Improve utilization of IT resources Improve response to changes in workload demand (flexibility) Simplified management Challenges Cost prohibitive/price IT organization is not structured to change processes and policies Difficult to integrate with already installed technology Doubt the savings/projected ROI numbers Technology is immature at this time Ability to meet SLAs Lack of staff skill sets Issues with downtime/availability Security concerns Vendor lock-in Source: IDC, Cloud Computing Attitudes, April 2010

28 Thank You! ibm.com/cloud/partner 2011 IBM, the IBM logo, ibm.com, Smarter Planet, the Smarter Planet icon, Cognos and LotusLive are trademarks of IBM Corp. registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at "Copyright and trademark information at ibm.com/legal/copytrade.shtml 28

29 Cloud Service Consumers Cloud Service Providers 5 Cloud Service Creators Service Users Consumer End User Consumer Business Manager Consumer Administrator Interfaces Stan ndards Based Cloud Services SaaS Program Business Process as a Service (BPaaS) Aggregated g Applications and Process Software as a Service (SaaS) Applications, Business Logic Platform as a Service (PaaS) APIs, Pre-Built Containers Infrastructure as a Service (IaaS) Hardware, VMs, Storage Cloud Management Platform Operational Support System 1 Business Support System Workflow, Provisioning, Monitoring and Metering Financial, Customer & Contract Management 4 Standards Based Interfac ces Service Planning Planner Developer Publisher Private Virtualised Infrastructure Hybrid CLOUD SHARED 2010 RESOURCES IBM Corporation AUTOMATE STANDARDIZE VIRTUALIZE CONSOLIDATE Tr raditional IT Public 2 Security People & Identity, Data & Information, Application & Process, Network, server & endpoint, Physical Infrastructure

30 OSS - Workflow & Provisioning Tivoli Service Request Manager Tivoli Service Automation Manager Tivoli Provisioning Manager Tivoli Directory Server TSAM - one software product IBM Service Delivery Manager - virtualized TSAM, ITM, TUAM, TPA OSS Operational Support System Service Templates Service Request Management Service Ser rvice Delivery Catalog Automation Management Co nfiguration Mgmt Image Lifecycle Management Provisioning Monitoring & Event Management Help Desk Service Level Management Capacity & Performance Management Virt tualization Mgmt Security OSS - Monitoring & Metering Tivoli Monitoring (ITM) Tivoli Usage & Accounting Manager (TUAM) Tivoli Performance Analyzer (TPA) 30

31 Security is among the top concerns with cloud computing... The IBM Security Framework is a key differe entiator t in the marketplace Application and process People and identity Help keep applications secure, Mitigate the risks protected from malicious or associated with user fraudulent use, and hardened access to corporate against failure resources Data and information Understand, deploy and properly test controls for access to and usage of sensitive data Network, server and end point Optimize service availability by mitigating risks to network components Physical infrastructure Provide actionable intelligence on the desired state of physical infrastructure security and make improvements IBM Security Framework Professional services IBM Cloud Security Guidance Managed services IBM Capabilities and Offerings to Help Hardware and software Describes the business landscape of security Describes the technology landscape Catalogs of products, services and solutions

32 Platform as a Service Shared Services WebSphere Application Server - Drives business ag and reliable application foundations WebSphere Application Server Hypervisor Server Family for virtual environments Databases DB2 - database software capable of handling the most demanding work Informix Simple hassle-free data management, low cost continuo User Personalisation WebSphere Portal - enterprise portal capabilities that enable complete with search, personalization, and security capabilities WebSphere smash - Leverages less costly development skil situational apps gility and productivity through high performance Edition - offers all of the robust features of the WebSphere Application kloads ous availability easy, scalable administration. e you to quickly consolidate applications and content into role-based applications, lls by using Web 2.0 based dynamic scripting languages to quickly build simple Application & Characteristics Functional & Non-Functional Requirements Web Server Web Server LDAP WAS DB2 WAS DB2 WAS WXS WXS WXS Library of Services & Runtimes

33 4 Cast Iron Cloud Integration Platform P Integration Maximizes lue ofincloud Investments Cloud Integration Platform Val Offfered Multiple Form Factors Cast Iron Cloud2 Ph i l Appliances Physical A li Vi t l Appliances Virtual A li

34 Rational - On the Cloud - For the Cloud

35 IBM Smart Cloud Enterprise Enterprise-class features IBM SmartCloud Enterprise is an infrastructure as a service (IaaS) cloud solution that offers: Rapid access to configurable server environments to speed time to market [ more details ] Self-service Web portal for enterprise account management [ more details ] Pay-as-you-go pricing, with the choice of preferred pricing through reserved capacity packages [ more details ] Security-rich i environment designed d to protect t your systems and data [ more details ] Access to a rich catalogue of software images for improved flexibility and rapid provisioning[ more details ] Tools and standardised configurations for improved teaming and quality [ more details ] Help where and when you need it [ more details ] ddleware and operating systems: Our solution provides the following: Choice of seven virtual (Intel) server configurations Choice of pre-configured software images from which to build private image libraries Linux operating systems; Red Hat and Novell SUSE IBM Lotus, WebSphere, DB2 and Informix stacks IBM Rational Application Lifecycle Management Option to add persistent storage Network isolation option (Private Virtual LAN) Support options; Forums and 24*7 by phone Choice of seven sites: US, EU, AP Payment options: Pay-as-you-go option (per VM hour usage charge) Reserved capacity package options Network bandwidth charged for per GB transmitted. IP addresse per hour. Software Licensing options: Bring Your Own IBM License Pay as You Go Bring your own software and license Pre-release software Development Use Only

36 Cloud Service Users Consumer End User Consumer Business Manager Consumer Administrator ollaboration Services otuslive - a suite of hosted online technologies that combine social networking and online collaboration tools nalytics Services BM Smart Analytics System - The most complete analytics solution in the industry. Integrated, optimized, nd ready-to-use. Delivers business insight where and when needed. BM Cognos 8 Business Intelligence - Complete range of BI capabilities Reporting, Analysis, ashboards, and Scorecards -- on a single service-oriented architecture oremetrics Web Analytics - web analytics and integrated marketing optimization software rocess Services ivoli Service Automation Manager (TSAM) - Automating the processes used to deliver and manage a loud environment. Separate presentation layer for business users giving simplified access. ivoli Live - Monitoring Services - allow customers s to manage the health and performance of their data enter s resources including operating systems, virtualized servers, middleware and applications.

37 6 IBM Smart Business Desktop on IBM already provides desktop cloud consulting and implementation services. Now you can gain all the benefits of virtual desktops, but within a pre-priced, pre-packaged subscription service. Integrating hardware, software and services Customer Benefits in a best-of-breed solution Improve end-user Enables thin clients or any other network-connected devices to access platform-independent, hosted applications, and full client images anytime, anywhere. A subscription service for office workers, task workers, variable workforces, and alternative workspaces, such as virtual call centers. the IBM Cloud Pre-designed and pre-built, providing the highest levels of quality, reliability, and security for your virtual desktops Differentiation in service management and security, with separation of controls for end user access based on enterprise security policies. Flexible delivery models, including standard cloud-based offerings, dedicated infrastructure, and customer premise solutions. Assessment and Planning services, leveraging IBM s unique tools and experience with complex implementations, helping you choose the right service that is the right fit for your use cases. productivity Reduce end-user support costs Green, energy savings No capital or one-time expense Highly secure hosting model Fast provisioning i i

38 BM Information Protection Service es Branch Office Server nd PC Backup Automatic data protection for servers and PCs Security-enhanced, bandwidth-efficient, network-based daily backups from virtually anywhere on your existing network to a data vault at an IBM or customer data center Quickly accessible file recoveries Powerful de-duplication and compression with 128-bit Advanced Encryption Standard (AES) encryption Includes all hardware, software, expert staffing g, and 24x7 monitoring & management Web-based portal for configuration management and reporting Customer PCs and Servers Wide area network (WAN) Offsite data protection IBM Remote data protection service platforms IBM Information Protection Services

39 BM CloudBurst Building a Private n Integrated Service Delivery Platform Cloud Solution An integrated service management platform with network, servers, storage, quickstart services that enables the fastes Private Cloud Deployment Today Customer Benefits Improved time to value Quickly deliver a private cloud using a preloaded and integrated system Improved innovation Dramatically improve business value and IT s effect on time-to-market by delivering services faster Decrease capital expenses Maximize capital usage and reduce added capital expense. Reduce complexity and risk With automation and standardization the human error factor is minimized. Scales to the enterprise Able to scale and manage additional Platforms and Workloads Single product, single delivery, single installation, single invoice, single support structure

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