Cloud Computing Expanding IT flexibility and agility

Transcription

1 Cloud Computing Expanding IT flexibility and agility

2 What is Cloud Computing? A user experience and a business model Standardized offerings Rapidly provisioned Flexibly priced Ease of access An infrastructure management and services delivery method Virtualized resources Managed as a single large resource Delivering services with elastic scaling Similar to Banking ATMs and Retail Point of Sale, Cloud is Driven by: Self-Service Economies of Scale Technology Advancement Banking Retail IT 2 Cloud Computing IBM Confidential

3 An effective Cloud Computing deployment is built on a Dynamic Infrastructure and is highly optimized to achieve more with less. CLOUD COMPUTING + + VIRTUALIZATION STANDARDIZATION Increased AUTOMATION = Reduced Cost Flexibility leveraging virtualization, standardization and automation to free up operational budget for new investment. 3 Cloud Computing 06/08/09

4 A dynamic infrastructure provides the foundation for effective cloud services delivery Cloud Services Delivery Elastic Scaling Rapidly provisioned Flexible pricing Ease of use Standardized offerings Required Infrastructure Characteristics for effective Cloud Delivery Open standards-based, service-oriented Advanced virtualization and automated mgmt Common components and processes Advanced security and resiliency Easy to use service catalog 4 Cloud Computing 06/08/09

5 The future: Three co-existing delivery models Enterprise Services Service Integration Traditional Enterprise IT Services Service Integration Private Cloud Services Service Integration Public Clouds Hybrid Cloud IT portfolio aspects migrating to cloud today: Mission Critical Packaged Apps High Compliancy Test Systems Pre-production Developer Platform Variable Storage Software as a Service Web Hosting 5 Cloud Computing 06/08/09

6 Cloud computing enables business imperatives and supports innovation Helps drive business innovation Improves asset utilization and lowers TCO Increases responsiveness Provides open, elastic IT environments Optimizes IT investments & reduces fixed costs Supports globalization and globally available resources Enables real-time data streams and information sharing 6 Cloud Computing 06/08/09

7 and creates new challenges for the CIO. Ensuring scalability and responsiveness Managing systems, availability & security Supporting audits & certifications Managing the proliferation of systems & applications Integrating cloud and enterprise services Avoiding cloud sprawl Providing a range of services Providing technical support 7 Cloud Computing 06/08/09

8 How can IT manage these challenges? Develop the Cloud architecture and plan Implement Security, Audit, and Systems Management Technologies Use a Service Oriented Architecture Demonstrate ROI 8 Cloud Computing 06/08/09

9 Developing the Cloud strategy and implementation plan is the first step for the CIO. Without a strategy, Cloud computing can be a threat to the CIO and the IT team Reduced control of IT services delivered over the Internet Perceived cost gap between a cloud service delivered by providers outside of the IT team and traditional services delivered by IT With a strategy, Cloud computing is a huge opportunity for the CIO Lower costs, more responsive IT, optimized delivery Greater range of services and capabilities Greater visibility in billing / chargeback to LOBs Better control of the users systems, desktops, and services access 5 Steps to Cloud based Services Workload Custom Standard Trad IT Capital IT Roadmap Private Cloud Hybrid Cloud Time Financial Rent End Users, Operators Role Based Access Service Catalog Operational Console Architecture Cloud Services Software Platform Infrastructure Cloud Platform BSS OSS Service Planning Service Definition Tools Service Publishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics IT Portfolio and value assessment , Collaboration Test and Pre- Production Database Software Development Data Intensive Processing ERP Enterprise & Public Cloud Mix Enterprise Trad IT Private Hybrid Public Implementation Platform & Applications BPM Info Mgmt Bus Apps Sys Mgmt Web Svr Computing Infrastructure Systems Storage Network 9 Cloud Computing 06/08/09

10 The IT Transformation Roadmap Reduce infrastructure complexity Reduce staffing requirements Improve business resilience (manage fewer things better) Improve operational costs/reduce TCO Remove physical resource boundaries Increased hardware utilization Allocate less than physical boundary Reduce hardware costs Simplify deployments Shared Standardized Services Dramatically reduce deployment cycles Granular service metering and billing Massively scalable Autonomic Flexible delivery enables new processes and services Virtualize Dynamic Automate Simplified Consolidate 10 Cloud Computing 06/08/09

11 An architectural model that includes standards based interfaces is key Service Request & Operations Service Provider Service Creation & Deployment End Users, Operators Role-based Access Cloud Services Application, Process and Information Services Standards Based Interfaces Software Platform Services Standards Based Interfaces Infrastructure Services Service Planning Service Definition Tools Service Publishing Tools Service Catalog Operational Console Cloud Platform Business Support Systems (BSS) Standards Based Interfaces Operational Support Systems (OSS) Service Fulfillment & Configuration Tools Service Reporting & Analytics 11 Cloud Computing 06/08/09

12 as well as identifying which aspects of your IT portfolio have an affinity for Cloud. Cloud as a supplement where risk and migration cost may be too high Database Transaction processing ERP workloads Highly regulated workloads Can be standardized for cloud Web infrastructure applications Collaboration infrastructure Development and test High Performance Computing Made possible by cloud High volume, low cost analytics Collaborative Business Networks Industry scale smart applications Cloud Computing

13 The layers of IT Services in cloud computing Business Processes Collaboration Industry Applications Software as a Service CRM/ERP/HR Middleware High Volume Transactions Database Web 2.0 Application Runtime Development Tooling Java Runtime Platform as a Service Data Center Servers Networking Storage Fabric Shared virtualized, dynamic provisioning Infrastructure as a Service 13 Cloud Computing 06/08/09

14 Current IT Services that are adopting cloud models , Collaboration Software Development Test and Pre- Production Data Intensive Processing Information Infrastructure IT Services Service Catalog Request UI Operations UI Dynamic Scheduling Monitoring Capacity Planning SLA Service Management Virtualization Virtual Servers Virtual Storage Virtual Networks Virtual Applications & Middleware Virtual Clients Physical Layer Non-IBM Servers IBM System z Power Systems System x, BladeCenter IBM & Other Storage Networking 14 Cloud Computing 06/08/09

15 What IT Services workloads are we seeing move to cloud delivery? Single virtual appliance workloads Test and Pre-production systems Mature packaged offerings, like and collaboration (see Software development environments Batch processing jobs with limited security requirements Isolated workloads where latency between components is not an issue Storage Solutions/Storage as a Service Backup Solutions/Backup & Restore as a Service Some data intensive workloads if the provider has a cloud storage offering tied to the cloud compute offering 15 Cloud Computing 06/08/09

16 What IT Services workloads may not be ready for cloud delivery today? Workloads which depend on sensitive data normally restricted to the Enterprise Employee Information - Most companies are not ready to move their LDAP server into a public cloud because of the sensitivity of the data Health Care Records - May not be ready to move until the security of the cloud provider is well established Workloads composed of multiple, co-dependent services High throughput online transaction processing Workloads requiring a high level of auditability, accountability Workloads subject to Sarbanes-Oxley, for example Workloads based on 3 rd party software which does not have a virtualization or cloud aware licensing strategy Workloads requiring detailed chargeback or utilization measurement as required for capacity planning or departmental level billing Workloads requiring customization (e.g. customized SaaS) 16 Cloud Computing 06/08/09

17 Demonstrating ROI shows the business value of cloud computing and the value of the IT Department 1. Identify Key Performance Indicators (KPIs) for the Organization 2. Capture Metrics for Baseline and Target Environments 3. Calculate Results 17 Cloud Computing 06/08/09

18 ... and can show the impact on the financial statement. Expenses - Income Statement Cost of Goods Sold Materials Production Total Cost of Goods Sold Operating Expenses Selling, General and Administrative Research and Development Depreciation and Amortization Utilities Other Overhead Costs Total Operating Expenses Cost of Goods Sold : Reduce material waste and increase production assets reuse through decreased error rates and workload optimization SG&A : Reduce maintenance overhead and labor requirements through automation and standardization Depreciation : Reduce depreciation through postponement of capital expenditure Utilities : Reduce energy consumption (power and cooling) through workload optimization and consolidation Interest Expense Taxes NET INCOME Interest Expense : Reduce interest expense through postponement of new loans Assume 3-Year Depreciation and 10% Discount Rate 18 Cloud Computing 06/08/09

19 Develop a roadmap that leverages both public and private cloud computing to support your overall strategy. Delivery Models Off Premises Shared Off Premises Dedicated On Premises Utility Managed Operations Public Cloud Services On Premises Traditional IT Private Cloud Services Fixed Mixed Financial Models Variable 19 Cloud Computing 06/08/09

20 Implement with the focus on the end user experience End Users Service Portal Service Request Catalog Provisioning Engine Workflows Expert Systems Scripts Optional Service Modules e.g. Metering/ Usage Billing, Monitoring, etc. Easy to access, easy to use Service Request Catalog Hides underlying complex infrastructure from user and shifts focus to services provided Enables the ability to provide standardized and lower cost services Facilitates a granular level of services metering and billing Workload standardization eases complexity Virtualized Cloud Infrastructure 20 Cloud Computing 06/08/09

21 Managing security, audit & compliance, and systems requires technologies for cloud.?????? Today Tomorrow We Have Control! It s located at X. It s stored in server s Y, Z. We have backups in place. Our admins control access. Our uptime is sufficient. The auditors are happy. Our security team is engaged. Who Has Control? Where is it located? Where is it stored? Who backs it up? Who has access? How resilient is it? How do auditors observe? How does our security team engage? 21 Cloud Computing 06/08/09

22 The right systems management software and tools can address these challenges. People and Identity Information and Data Process & Application Network Server and Endpoint Physical infrastructure Centralized Identity and Access Control policies Well-defined input/output interfaces Consistent enrollment, proofing, validation and management of trusted users Computing services running in isolated domains as defined in service catalogs Default encryption of data in motion & at rest Virtualized storage for better inventory, control, and tracking of master data Autonomous security policies and procedures Personnel and tools with specialized knowledge of the cloud ecosystem SLA-backed availability and confidentiality Automated provisioning and reclamation of hardened runtime images Dynamic allocation of pooled resources to mission-oriented resources Simplified, built-in security controls Closer systems coupling for management of physical & logical identity/access Strong platform of compute resources with workload-balancing and resiliency Highly-fortified physical data centers 22 Cloud Computing 06/08/09

23 A Service Oriented Architecture complements Cloud Both require similar capabilities: Architectural and organizational models Optimization, Innovation and Value Delivery Flexibility and Agility Secure, reuse and sharing of services Separation of Concerns (Requestors, Providers, Creators, Brokers, etc.) Improved Administration Virtualization at all layers of the architecture SOA provides flexibility, reuse, separation of concerns, etc. Exploit a dynamic and elastic environment to enable innovation and to get optimum use from resources 23 Cloud Computing 06/08/09

24 and provides layers of abstraction that enable Cloud delivery. SOA Characteristics Services & Applications Applications reused in new dynamic ways Middleware Services combined from multiple sources Rapid deployment Virtualized Infrastructure Services route to any available resource Distributed access Physical Infrastructure 24 Cloud Computing 06/08/09

25 IBM Technology Adoption Program Cloud, cloud delivered 100% Current IT Spend New Development Software Costs Power Costs Labor Costs (Operations and Maintenance) Hardware Costs (annualized) ROI Analysis Liberated funding for new development, transformation investment or direct saving Deployment (1-time) Software Costs Power Costs (88.8%) Labor Costs ( %) Hardware Costs ( %) Note: 3-Year Depreciation Period with 10% Discount Rate Strategic Change Capacity Hardware, labor & power savings reduced annual cost of operation by 83.8% Impact: Reduction of Total Cost of Ownership of Data Center Infrastructure Reduced Capital Expenditure - Improved utilization reduces requirement for new capital purchases Reduced Operations Expenditure - Lower facilities, maintenance, energy, IT service delivery and labor costs Additional Benefits - Reduced risk, less idle time, more efficient use of energy, acceleration of innovation projects, enhanced customer service Business Case Results Annual savings: $3.3M (84%) from $3.9M to $0.6M Payback Period: 73 days Net Present Value (NPV): $7.5M Internal Rate of Return (IRR): 496% Return On Investment (ROI): 1039% 25 Cloud Computing 06/08/09

26 IBM Research Computing Cloud (RC2) A living lab to advance Research strategies 1 2 Provides self service on demand delivery solution for research computing resources Zero touch support for the full life cycle of service delivery Order creation Approval process notification Automated provisioning Monitoring Research Compute Cloud (RC2) India Zurich Watson 26 Cloud Computing 06/08/09

27 Building a dynamic infrastructure to support cloud Auto Teile Unger Germany s largest provider of retail auto parts and auto services, engaged IBM Global Technology Services to design, implement and support a new private cloud infrastructure to support its expansion plan of 50 branches per year in Europe. One America Financial Partners, Inc. A nationwide network of financial companies, recently engaged IBM Internet Security Systems for security event and log management services and X-Force Threat Analysis services delivered through the cloud. Transzap Leading SaaS cloud provider of epayable, digital data, and spend analysis solutions for 900 oil industry companies, needed to meet 100% YTY growth requirement with an easy to scale and secure solution. The IBM z9 provides the stability and scalability needed to accommodate Transzap s triple digit volume growth in a SaaS environment. " 27 Cloud Computing 06/08/09

28 The result: The CIO enables growth & innovation. Rapid response to new business requirements Agile / Optimized Business Management Improved risk management and business resiliency More efficient pricing and capacity utilization Flexible Service Delivery Flexible, self-service delivery for users, based on requested qualities of service Improved time to market and acceleration of innovation projects Lower Cost of Running Business Lower costs including capital and operational expenditures Availability of skilled resources to focus on high value innovative projects Improved energy efficiency and reduce idle time Cloud Computing 06/08/09

29 IBM is Focused on Customer-Led Priorities Cloud Consulting Cloud Implementation Cloud Delivered How can cloud: - Improve responsiveness? - Save me money? - Still be secure and resilient? How do I: - Get started? - Where? - Measure results? What software? collaboration, business process, applications What platform? middleware, database, systems management, tools? What Infrastructure? processing, storage, security Cloud Enabling Products & Assets What do I use to build my own cloud? Hardware, Middleware, Management & Billing, Tools, Services 29 Cloud Computing 06/08/09

30 IBM Cloud offerings Growing the portfolio to deliver industry leading cloud computing capabilities Cloud Consulting Cloud Implementation Cloud Delivered Infrastructure Consulting Services for Cloud Computing Business Cloud Consulting Services Security and Resiliency Consulting Services for Cloud Resiliency Certification for Cloud Computing Service Management for Cloud Computing Managed Security Services for Cloud Computing Scale out File Services End User Cloud Services LotusLive Computing on Demand Information Protection Services Managed Data Protection for desktops and laptops DeveloperWorks on Amazon EC2 Test and developer cloud services Cloud Enabling Products & Assets Tivoli Service Automation Manager, AppScan, Rational Quality Manager, Lotus Live Virtualization & Imaging technologies, Service Catalog, User Access Control Service Management and Automation software 30 Cloud Computing 06/08/09

31 In summary CIOs are worried that Cloud will bring about disruptive change to IT Operations Line-of-business units going to public cloud providers for IT instead Disintermediation of the traditional IT team As some have said, it is Client / Server all over again CIOs need to embrace the change, not resist it Understand the benefits of cloud, as well as its drawbacks Understand the public cloud providers capabilities and include these services in IT offerings as it makes sense CIOS can use architecture, systems management, and SOA to deliver a Cloud plan that satisfies their customers and demonstrates ROI delivered by IT Improves visibility of IT use, more responsive, simpler, cheaper Requires an overall strategic vision with pragmatic, evolutionary approach Increases range of services, applications, and capabilities available to clients 31 Cloud Computing 06/08/09

32 IBM Cloud Computing Leadership Establishing cloud reference architectures Delivering cloud enabling technologies and products Managing cloud computing centers around the world Providing consulting and implementation services for Cloud computing Helping clients speed time to market and reduce costs 32 Cloud Computing 06/08/09

33 Thank you! For more information, please visit: ibm.com/cloud Or contact me at: 33 Cloud Computing 06/08/09

34 Legal Disclaimer Notice: This document contains information on products in the design phase of development. The information here is subject to change without notice. Do not finalize a design with this information. Contact your local Intel sales office or your distributor to obtain the latest specification before placing your product order. INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL PRODUCTS. EXCEPT AS PROVIDED IN INTEL'S TERMS AND CONDITIONS OF SALE FOR SUCH PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER, AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY RELATING TO SALE AND/OR USE OF INTEL PRODUCTS, INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT, OR OTHER INTELLECTUAL PROPERTY RIGHT. Intel products are not intended for use in medical, life saving, or life sustaining applications. Intel may make changes to specifications, product descriptions, and plans at any time, without notice. The panel discussion is of the opinions of each respective individual, and not of the company they represent. All products, dates, and figures are preliminary for planning purposes and are subject to change without notice. Designers must not rely on the absence or characteristics of any features or instructions marked "reserved" or "undefined." Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or incompatibilities arising from future changes to them. The Intel products discussed herein may contain design defects or errors known as errata which may cause the product to deviate from published specifications. Current characterized errata are available on request. Copies of documents which have an order number and are referenced in this document, or other Intel literature, may be obtained by calling , or by visiting Intel's website at Intel Itanium, Xeon, Pentium, Intel SpeedStep and Intel NetBurst are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Copyright 2007, Intel Corporation. All rights reserved. *Other names and brands may be claimed as the property of others. 34 Cloud Computing 06/08/09