Kristin Donceel June IBM Corporation

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1 The Story of Cloud and IBM zenterprise - Accelerating Cloud with IBM zenterprise - A secure cloud for data enables enterprises to improve service to their customers Kristin Donceel June 2013

2 Topics IBM and Cloud Cloud Computing Reference Architecture IBM smartcloud Foundation Cloud and zenterprise

3 The time has come to rethink IT and reinvent business with IBM SmartCloud Fundamental questions: Is your organization achieving the levels of innovation required to compete in today s environment? Is your organization able to nimbly put lucrative ideas into action? Is your organization continually reinventing customer relationships? Are you adapting to market changes as fast as your competitors? 2013 IBM Corporation 2012 IBM Corporation

4 IBM SmartCloud Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Design Private & Hybrid Clouds Cloud Enablement Technologies Deploy Consume Managed Cloud Services Infrastructure & Platform as a Service Cloud Business Solutions Software & Business Process as a Service Commitment to open standards and a broad ecosystem

5 IBM provides the right hardware, software and expertise to help your organization fully leverage the cloud A next-generation combination of technology, expertise and reach helps you advance your cloud deployment. IBM has one of the most comprehensive cloud portfolios. Jeff Vance, Datamation IBM Cloud Labs IBM SmartCloud Centers

6 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. 1,800 IBM marketers across 6 continents utilize IBM cloud-based Marketing Operations daily. 6,000 IBM users of Blueworks Live to improve internal business processes 200 million minutes of IBM web conferencing with LotusLive Meetings. Avoiding over $20M in expenses over 5 years with our private analytics 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 Corporation 2013 IBM IBM Corporation

7 Topics IBM and Cloud Cloud Computing Reference Architecture IBM smartcloud Foundation Cloud and zenterprise

8 Cloud Computing Reference Architecture Scope and Overview Cloud Service Consumer Common Cloud Management Platform (CCMP) Cloud Services Existing & 3rd party services, Partner Ecosystems Cloud Service Integration Tools Cloud Service Creator Cloud Service Provider Business-Processas-a-Service Sof tware-as-a-service Operational Support Services (OSS) Business Support Services (BSS) Service Creation Tools Platform-as-a-Service Consumer In-house IT Infrastructure-as-a-Service Infrastructure Security, Resiliency, Performance & Consumability Governance 8

9 Cloud Computing Reference Architecture (CC RA) Cloud Service Provider Common Cloud Management Platform Cloud Services OSS Operational Support Services Existing & 3rd party services, Partner Ecosystems Business Manager BSS Business Support Services BPaaS Service Delivery Catalog Customer Account Management Service Offering Catalog Service Offering Management Service Development Portal & API SaaS Service Consumer Portal & API Cloud Service Integration Tools Service Manager Service Automation Management Provisioning Incident & Problem Managemen t IT Service Level Managemen t Service Creation Tools PaaS Consumer In-house IT Platform & Virtualization Management IaaS Service Provider Portal & API Deployment Architect Transition Manager Operations Manager Security & Risk Manager Customer Care Infrastructure Security, Resiliency, Performance & Consumability Governance IBM IBM Corporation Corporation

10 New product-focused cloud adoption pattern deliverables are introduced via the CCRA 3.0 IaaS: Cut IT expense and complexity through a cloud enabled data center PaaS: Accelerate time to market with cloud platform services Innovate business models by becoming a cloud service provider SaaS: Gain immediate access with business solutions on cloud

11 A simple organizational structure, towards creating prescriptive solution architectures per cloud adoption pattern New: Four main workstreams are part of the CCRA 3.0 Pre-3.0 content will continue to exist and be developed in the context of these 4 top-level workstreams CCRA 3.0 Cloud-enabled data center (building private IaaS, as a mgd service) Platform Services (building private PaaS, as a mgd service) Cloud Service Provider (CSP2, commercial XaaS) Building SaaS (using IBM-hosted services) Common Reference Architecture Foundation Architecture Overview Architectural Decisions Use cases Non-functional requirements Security Performance & Scalability Resiliency Standards

12 Topics IBM and Cloud Cloud Computing Reference Architecture IBM smartcloud Foundation Cloud and zenterprise

13 Foundation IaaS Infrastructure as a Service Technologies A policy-based, scalable environment for managing cloud computing resources and services on demand PaaS Platform as a Service Technologies Cloud middleware & tools to build, integrate and run cloud services

14 Addressing our clients most pressing challenges as they optimize their business infrastructures How do I optimize the utilization and cost of my IT infrastructure? How do I scale and accelerate the deployment of services on my infrastructure to support business needs? How do I reduce the cost and complexity of cloud app development? How do I manage software delivery while business require-ments become more demanding? How do I accelerate my organization s deployment of applications to improve market responsiveness? How do I deploy and manage my existing packaged and in-house apps on the cloud? How do I understand how my infra-structure is being used and if I m making the right investments in it? How do I ensure my cloud infrastructure does not leave me open to threats? How do I prevent revenue losses by minimizing downtime and speeding problem resolution? How do I integrate my private and public cloud based services?

15 IBM can simplify the implementation of cloud enabled data center for clients. Private Private and and Hybrid Hybrid Clouds Clouds Virtualize Server, storage & network devices to increase utilization Provision & Secure Automate provisioning of resources An integrated set of cloud enablement technologies Easily build and rapidly scale private cloud environments with unparalleled time-tomarket, integration and management Monitor & Manage Provide visibility of performance of virtual machines Orchestrate Workflow Manage the process for approval of usage Meter & Rate Track usage of resources 15

16 IBM System z Cloud Implementation Stages Virtualization Automate Entry Level Cloud Orchestrate Infrastructure, Virtualization, Consolidation & Management Standardization, Automation and Orchestration Cloud Optimization Integrate Advanced Cloud Less than 20% 21-25% Service Catalog 38-44% 40-50% Storage Virtualization Shared resources Standardized Infrastructure User Self-Service Automated Provisioning Chargeback s Dynamic Scalability Server Virtualization 16 Source: 2010 STG Private Cloud Study, December 2010, Base Size Total = 747 Percentages are number of clients who stated intention to execute this level of cloud implementation in the future.

17 Cloud Computing an evolutionary Approach SmartCloud Orchestration Functionalit y Orchestrate Services across multiple environments and domains SmartCloud Provisioning SmartCloud Provisioning Automate Optimized Workloads Automate Optimized Workloads SmartCloud Entry SmartCloud Entry Automate IT Delivery Automate IT Delivery Customer integrated HW PureFlex System Automate Optimized Workloads PureApplication System Integration

18 Topics IBM and Cloud Cloud Computing Reference Architecture IBM smartcloud Foundation Cloud and zenterprise

19 What is done in the System z environment? Capacity on demand Memory Plan ahead Security is designed into System z it is not an added-on feature Virtualize Server, storage & network devices to increase utilization z/vm, PR/SM, Multi-workloads in one partition MIF Up to 100% utilization is realistic Provision & Secure Automate provisioning of resources Monitor & Manage Provide visibility of performance of virtual machines Orchestrate Workflow Manage the process for approval of usage Implementing automation is common use in the z/os environment ( like Tivoli System Automation) to maximize efficiency and availability of critical systems and applications. Meter & Rate Track usage of resources Business Process Automation Provisioning Monitoring and managing of the different resources is widely implemented in System z environment Accounting and charge-back is implemented, but... End User Portal

20 CICS Transaction Server for z/os V5.1 Service Delivery Platform for Cloud Computing

21 Why Deploy Cloud and Linux on System z? Increased Productivity More Efficient Data Center TCA of less than $0.70 per day per virtual server1 79% less TCA vs. leading public cloud 2 More than 3,000 applications available on System z U.S. Insurance Company uses 80% less energy than existing distributed servers Less floor space Fewer physical servers to manage Higher Utilization Most clients run consistently at 90%+ utilization1 Shared everything architecture Manage up to 100,000 virtual servers1 Greater Reliability, Availability Most customers test backup of System z to 100% recovery annually Built-in hardware redundancy Capacity and Backup on Demand 1 IBM calculations of zenterprise limits across maximum z196 configuration. Results may vary. 5-Year Total IT Cost 2 The Edison Group: The Value of IBM zenterprise for Deploying Heterogeneous Private Clouds, savings start at 250 virtual servers

22 Develop a cloud infrastructure with System z Linux on System z Cloud Roadmap Orchestrate Automate Integrate Take out cost Consolidate and Virtualize Differentiation zenterprise System z/vm 6.2 Simplify Automate and Manage Better Seamless Service Lifecycle Management Service Management Modernize System z by moving to Private Cloud in a stepwise approach Tivoli Service Automation Manager Tivoli Provisioning Manager 7.2 System z Solution zenterprise Starter Edition for Edition for Cloud Cloud Computing Cloud Ready for Linux on z SmartCloud Provisioning 2.x Standardization SmartCloud Entry 2.3 Linux on System z 2013 Updated! SmartCloud Provisioning Updated! SmartCloud Entry New! Smart Cloud Orchestrator (includes TPM and TSAM)

23 IBM System z Client Examples Taking advantage of its System z and deploying an IFL engine running Linux, Honolulu was able to provide useful data to its citizens in real time. The city also leveraged this new platform to create a custom cloud environment for its employees and citizens. The cloud environment reduced database licensing costs by 68 percent and reduced time to deploy applications from one week to a few hours. 23 The creation of a private cloud built around the z196 servers supports our business transformation goals by enabling the rapid, seamless deployment of new computing resources to meet emerging requirements, ultimately, the ability to develop new offerings faster and at a lower cost means that we can bring valuable new services to market ahead of our competitors. Jim Tussing, Chief Technology Officer for Infrastructure and Operations, Nationwide Marist built a virtualized cloud environment to maximize data and service accessibility. They worked closely with IBM to deploy a hybrid, heterogeneous IT environment consisting of zenterprise 114, z/vm, and Linux operating environments. Leveraging the cloud, Marist delivers a wealth of services to its students, faculty, and administrators as well as to the local business community, vendors, and the open source community. Transzap boosts Software-as-a-Service uptime with IBM System z. We intend to deliver a 99.9% application uptime guarantee to our customer base, thanks to the availability characteristics of System z. Peter Flanagan, CEO, Transzap, Inc. Consolidating 20+ multiproduct, departmental BI deployments to Cognos 8 BI on System z. Deploying private cloud self service to support 200,000+ users across global workforce 56% cost savings per user (grows with volume ).

24 IBM System z However, Cloud failures cost $70M-plus since 2007* e outag k o o Faceb d service te disrup rs 3 hou oft Micros ffline o Azure urs o for 7 h! mail o o h a Y for 6 down hours * International Working Group on Cloud Computing Resiliency, June e to Unabl Google s acces r 1 hour fo Docs berry k c a l B t lasts u o k c bla 3 days down l a p y Pa ours for 5 h ervice s l i a Gm ilable a v a t no ours for 4 h

25 IBM System z Advantages of Deploying Clouds on System z Increased Productivity Advanced workload management that provisions resources on the fly for 90%+ utilization and maximizes ROI U.S. Bank reduced provisioning time from 45 days to 20 minutes Higher Utilization Up to 100% CPU utilization Shared everything architecture Manage up to 100,000 virtual servers More Efficient Data Center Up to 80% less energy than existing distributed servers Greater Reliability, Availability Built-in hardware redundancy Less floor space Decades of RAS innovation Fewer parts to manage Capacity and Backup on Demand Ultimate security 79% less TCA vs. leading public cloud 25

26 IBM System z What Workloads are Good targets for Cloud on zenterprise? Database applications Transaction-processing systems ERP workloads Highly regulated services Agile Operations (Such as multi-architecture cloud management) Help Desk Test/Development ( Java, WAS, Portal, Process Server, Web Hosting) Cross Architecture solutions ( Business Intelligence, Fraud, Analytics ) 26

27 IBM System z IBM s Strength is Our Choice Unlike the competition who has to lead with a single platform, IBM s strength in cloud infrastructure is our choice We have the ability to deliver cloud on all technologies and we design our solutions based around the clients needs and expertise IBM provides the right hardware, software and expertise and global reach to help clients fully leverage the cloud IBM has one of the most comprehensive cloud portfolios. Jeff Vance, Datamation 27

28 IBM System z Summary 28

29 IBM System z Thank You! 29

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