Cloud within the Sourcing Continuum

Cloud within the Sourcing Continuum GSE Regional Conference 2014 Ostend C03 Eric Michiels IBM Technical Advisor for the CSI Partners in IBM Liaison of the GSE Architecture Working Group 1

Topics 1) The drivers for Cloud Computing 2) Cloud Options 3) IaaS with IBM SoftLayer 4) A Guiding Cloud Architecture 5) Software Defined Environments or Cloud 2.0 2

1) The drivers for Cloud Computing Organizations want to transform IT from cost centers, running on-going operations, to strategic centers of business innovation Today s business infrastructures are becoming inhibitors to business change 3

1) The drivers for Cloud Computing What the business perceives What is really required Monitoring Lifecycle Management 4

1) The drivers for Cloud Computing What will be needed tomorrow Monitoring Lifecycle Management 5

Cloud Computing offers Benefits in many Areas Strategic 1) The drivers for Cloud Computing Enables business transformation Reduce time-to-market Focus on core competencies Sourcing options Economic Pay for Use Shift CAPEX to OPEX Economies-of scale Functional Self-service Rapid Provisioning Location independence Technical Elasticity Advanced technology 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 30 60 minutes 51% cost savings Days/Weeks 6

Efficiency Transformation 1) The drivers for Cloud Computing IT and Business are attracted to Cloud for different reasons Rethink IT Rapidly deliver services Integrate services across Cloud environments Increase efficiency Reduce costs and improve ROI of ICT investmens 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 Wish Lists 7

1) The drivers for Cloud Computing CIO Visionary Plans are evolving: Cloud Computing moved into the top four over the last 3 years Source: CIO Study : Which visionary plans do you have to increase competitiveness over the next 3 to 5 years? 8 Business Intelligence and Analytics Mobility Solutions 74% 68% Virtualization 68% 75% Cloud Computing 60% 33% Business Process Management Risk Management and Compliance Self-Service Portals Collaboration and Social Networking Most important visionary plan elements (Interviewed CIOs could select as many as they wanted) 60% 64% 58% 57% 55% 54% 66% 71% 83% 83% <2010 >2011

1) The drivers for Cloud Computing Outsourcing and Cloud Many CIOs do not see Cloud as an answer to everyhting they see it rather as an option Outsourcing of a legacy environment allows for higher customization Cloud allows for higher agility but requires more standardization Outsourcing business is far more mature multi-decade experience Of course... Cloud inevitably has resulted in a shakeout in the outsourcing industry itself resulting in providers offering alternative value propositions at variable pricing models... Analysts talk about a Sourcing Continuum : Cloud Technologies are part of the Sourcing Palette Most companies end often with a mix of Traditional On-Premise ICT Deployment, Outsourcing and Cloud Multi-Sourcing... Good news for ICT professionals There is plenty of work for people who understand complex systems and know how to deploy them even if Cloud automates some or the basic roles... Integration between different functions and processes Satisfy SLAs Security, service availability, data integrity, performance,... Business model design based on multiple ICT service provider offerings 9

1) The drivers for Cloud Computing Classes of Cloud or Outsourcing Companies The role of Outsourcing is changing and will continue to do so as companies rely increasingly on the Cloud for IT and Business services The following high level categories are applicable to both... Category 1 Utility Providers Focus: efficiency and cost Success factors: availability, security, performance, in short SLAs Category 2 Business Function Providers Focus: deep expertise in particular business disciplines, applying the latest generation of software solutions Success factors: scalability, secure configuration to meet business goals, continuous improvement across offerings, modularity, innovation Category 3 Integrators and Value-Adding Business Designers Focus: business design and integration of critical services, making organizations more agile and able to adapt their business design on the fly Success factors: manage complexity of hybrid computing environments, become a trusted broker, solve interoperability and security challenges, innovation 10

2) Cloud Options The Journey to the Cloud 11

Client manages Vendor manages on the cloud Vendor manages on the cloud Client manages Vendor manages on the cloud Client manages 2) Cloud Options Cloud offers a choice of Flavors and associated services to help businesses get what they want on a pay-as-you-go basis Traditional on-premises Infrastructure as a service Platform as a service Software as a service Application Application Application Application (Meta) Data (Meta) Data (Meta) Data (Meta) Data Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Operating system Operating system Operating system Operating system Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking Customization; higher costs; slower time to value Standardization; reduced costs; faster time to value Businesses are using Cloud to rethink IT and reinvent business. 12

2) Cloud Options The Cloud adoption initiatives can be delivered with multiple Deployment Models Cloud Enabled Data Center Cloud Platform Services Business Solution on Cloud Cloud Service Provider Create a cloud strategy, roadmap, and business model Think it. Traditional IT Private Cloud Managed Private Cloud Dedicated Private Cloud Shared Private Cloud Public Cloud Enterprise Data Center Enterprise Data Center Enterprise Data Center Enterprise Enterprises Users Build it. Hybrid Cloud Tap Into it. 13

2) Cloud Options IBM SmartCloud Framework Think it. 1. Move your business forward with a cloud strategy and road map Build it. 2. Build and Extend Your Enterprise Private/ Hybrid Cloud With IBM 3. Build Your Service Provider-Grade Cloud Infrastructure With IBM Offerings: GTS Infrastructure Strategy and Design GBS Strategy and Change IBM Systems & Storage, SmartCloud Orchestrator, SmartCloud Provisioning, Private Modular Cloud IBM Systems & Storage, SmartCloud Orchestrator, SmartCloud Provisioning, Private Modular Cloud Tap into it. 4. Tap into a Fully Managed Infrastructure 5. Leverage IaaS 6. Optimize Your Marketing in the Cloud SmartCloud Enterprise + SmartCloud for SAP SmartCloud for Oracle IBM SoftLayer IBM Enterprise Marketing Management 14 IBM Confidential

2) Cloud Options IBM SmartCloud Framework BPaaS Cloud Strategy Business Process as a Service Software as a Service SaaS Business Analytics and Optimization Social Business Smarter Commerce Smarter Cities PaaS IaaS PureApp on Softlayer Cloud Managed Services for SAP/Oracle Softlayer Cloud Managed Services 15 Cloud Components Design and Build Private Clouds or Service Provider Clouds Consulting & Implementation Services Design my cloud Cloud Services Consume over Internet

2) Cloud Options The Technology for managing Heterogeneity exists... SmartCloud Provisioning SmartCloud Orchestration Linux on System z Traditional HW System on On-Premise On-Premise Off-Premise Flexibility Speed and Simplicity 16

2) Cloud Options Patterns of Expertise on Premise or in the Cloud 17 Patterns of Expertise are proven best practices and expertise for complex tasks learned from decades of client and partner engagements that are captured, lab tested and optimized into a deployable form What is a Pattern? The pre-defined architecture of an application For each component of the application (i.e. database, web server, application package, etc) Pre-installation on an operating system Pre-integration across components Pre-configured & tuned Pre-configured Monitoring Pre-configured Security Lifecycle Management In a deployable form, resulting in repeatable deployment with full lifecycle management Delivering superior results: Agility: Faster time-to-value Efficiency: Reduced costs and resources Simplicity: Simpler skills requirements Control: Lower risk and errors Private Cloud Hybrid Cloud Monitoring Lifecycle Management Public Cloud

3) IaaS with IBM SoftLayer SoftLayer offers a complete IaaS Portfolio Combines bare-metal servers, public cloud instances and private cloud deployments into distributed hybrid architectures and manage from a single control pane and API Common command and control interface across a unified architecture All deployed on-demand and provisioned automatically in real-time Ideally suited to Big Data deployments, high I/O and latency-sensitive apps 18

3) IaaS with IBM SoftLayer Service Portfolio 19

3) IaaS with IBM SoftLayer Global Footprint Amsterdam London Frankfurt Paris Seattle Toronto Chicago Montreal China Tokyo San Jose Denver Dallas New York City Washington D.C. India Hong Kong Los Angeles Houston Atlanta Miami Mexico City Singapore BRAZIL 20 Melbourne DATA CENTER & NETWORK POINT OF PRESENCE NETWORK POINT OF PRESENCE Sydney $1.2B investment to grow 40 data centers worldwide 5 continents Over 40GB of connectivity per rack Own Global Internet backbone

3) IaaS with IBM SoftLayer Triple-Network Architecture High-performance public network with transit from 7 tier-1 carriers Inbound and Private Bandwidth are free of charge Outbound Bandwidth of 5 TB Secure OOB Management via VPN Private network for intra-application and inter-facility communications, access to shared services Native IPv6 support with port speed of up to 10 GBP/second Virtual racks for integrated management Complete suite of network services Content Delivery Network of 24 nodes put content geographically closer to the end users with digital transcoding into wide variety of formats 21

3) IaaS with IBM SoftLayer Power Through Automation 22 22

3) IaaS with IBM SoftLayer Robust, Full-Featured API Improves customer control, reduces error, increases visibility SoftLayer API provides 1,600 function calls to over 200 services Supports SOAP & XML-RPC interfaces Comprehensive documentation, libraries and support 23 Functions include: Automatic server deployment Service provisioning Reboots & reloads Ticketing Hardware configuration Software loads DNS Network Storage Security scans Monitoring

3) IaaS with IBM SoftLayer Complete Control Mobile and Web-based management portals Purchase, provision, deploy and manage infrastructure Access to services, tools, automation & tutorials Secure access via VPN to management network 24

3) IaaS with IBM SoftLayer Storage Options 25 QuantaStor Storage Servers 12 or 24 Drive mass storage servers, bringing you a private SAN or NAS appliance for more storage with higher security, control and scalability Ideal for applications including virtual servers and desktops, video production and web and application servers iscsi Storage, Replication and Snapshots iscsi Storage allows users to mount remote, enterprise-grade, SAN storage disks as though they were attached locally It is scalable, easily provisioned, and outperforms internal disks, providing a low-cost alternative to traditional fiber-channel storage solutions. FTP/NAS Storage File Transfer Protocol (FTP) and Network Attached Storage (NAS) provide fast, reliable and cost-effective storage for maximum data retention and storage. Object Storage Built on OpenStack Object Storage, includes features like metadata search, enabling you to easily store, search, manage and retrieve large amounts of static data. Ideal for managing large unstructured data sets including virtual machine images, photos, email, invoices, financial records and more 25

3) IaaS with IBM SoftLayer Security Services Physical firewall threat protection is offered with FortiGate devices(*) Devices offered in dedicated and shared/multi-tenant modes of operation Security Options Vulnerability scanning Host based intrusion protection(*) Anti-virus(*) and anti-spyware protection Firewall(*) and network based threat protection (IPS, DDOS) Virtual Private Networking - IPSEC(*), SSL, PPTP Two factor authentication to the SoftLayer Customer Portal SSL certificates that enable confidentiality of data-in-transit 26

3) IaaS with IBM SoftLayer Industry and Regulatory Compliance Service Organization Control (SOC) 2 Audits security, availability, process integrity, privacy and confidentiality SoftLayer has an unqualified SOC 2 Type II report for all data centers Report available to customers and their auditors via NDA Safe Harbor Certification demonstrates that SoftLayer provides adequate privacy Payment Card Industry (PCI) SoftLayer is a PCI Level 3 compliant merchant for its handling of PCI regulated data with protection as defined by the Directive This certification is not transferable to customer workloads 27

3) IaaS with IBM SoftLayer Dynamic, High-Growth Customer Base Software as a Service Mobile and Communications Bump Voxer What s App Instapaper Yelp Social Media Games and Entertainment Platform as a Service Marketing and Digital Media Hosting & Service Providers Enterprise 28

3) IaaS with IBM SoftLayer Top 100,000 most visited websites 29 Source: Hostcabi.net

4) A Guiding Cloud Architecture IBM Cloud Computing Reference Architecture (CCRA) 3.0 30 The IBM Cloud Computing Reference Architecture (CCRA) saves organizations time and money by providing detailed documentation on the steps and components required for constructing a cloud implementation across all deployment models Customers can benefit from IBM s experience in creating public, private and hybrid clouds with one common architecture with reusable assets or product recommendations The CCRA allows for a quicker start to creating an industrial strength Cloud with pre-defined use cases and documentation on the architectural requirements or decisions that must be made for security, service management, performance, scalability and virtualization Utilize sound architectural principles to speed development and reduce errors across the entire development process ensuring designs can scale for efficiencies and can fulfill important Cloud requirements such as elasticity, self-service and flexible sourcing Increased business flexibility with a common Cloud reference architecture across deployment models (private, public or hybrid cloud implementations)

4) A Guiding Cloud Architecture IBM CCRA Overview 31

Increasing Capability 4) A Guiding Cloud Architecture Example from CCRA IaaS Layers Process Integrated IaaS Problem & Incident Management IT Asset Management License Management Change & Configuration Management Service Desk Release Management 4 Advanced IaaS Storage Provisioning & Automation Management Network Provisioning & Automation Management Service Orchestration Hybrid Cloud Integration Advanced Security (Threat & vulnerability, identity & access, Security info and events mgmt) 3 Managed IaaS Virtualised Infrastructure Monitoring Capacity Management and Planning Events Management Backup & Restore Patch Management Endpoint Compliance & Management 2 Simple IaaS (VMs) 32 VM provisioning & On-boarding Cloud Management Tenants, Roles & Authentication Management VM Image Construction Image Management Usage metering, accounting & chargeback 1

5) Software Defined Environments or Cloud 2.0 Systems of Engagement are making Workloads more Volatile Systems of Engagement are making Workloads more Volatile Volatile Workload characteristics result from changing Business Requirements Traditional Current Future W1 W2 W3 W4 C C R1 R2 R3 V1 V2 V3 V4 V5 Vn V1 V2 V3 V4 V5 V5.... Vn Few, stable, and well known workloads Fixed system hardware, manual scaling Hardwired workload, minimal configuration 33 Diverse workload, limited patterns Homogeneous resource pooling Expert configuration and mapping of workload Rapidly changing workloads, dynamic patterns Dynamic automatic composition of heterogeneous system Autonomic and proactive management

5) Software Defined Environments or Cloud 2.0 The Need for Software Defined Environments Heterogeneity is a key factor in the evolution of the Cloud and requires a paradigm, known as Software Defined (Environments) First, many Cloud environments evolved on premise and are heterogeneous by nature Second, system infrastructures are becoming compose-able and programmable and thus heterogeneity can be exploited to achieve optimal outcome The exploding number and increased volatility of workloads and applications coupled with the heterogeneity leads to the situation where deploying and configuring applications can no further be done in a manual fashion A need to automate the deployment and to continuously and optimally manage these workloads is evident This includes both the software and infrastructure for dynamic construction of workload fit systems this is what SDE is about Capacity requirements can now be addressed through programming the network, the compute and the storage resources, rather than having to resort to manual rewiring this enables a more agile operation of the Cloud 34

Managed Services 5) Software Defined Environments or Cloud 2.0 Software Defined Environments ~ Conceptual Overview Top down approach to differentiate with deep understanding of application workloads C C Workload Abstraction Functional and Non-Functional requirements that may be discovered as well as specified 35 Allows rich resource abstractions to assemble purpose-fit systems optimized across heterogeneous resources Resource Abstraction Software Defined Compute Workload Abstraction SDE Unified Control Plane Software Defined Network Software Defined Storage Virtualized Network Control plane separated from the hardware to the software layer Heterogeneous Compute Virtual Storage Layer Resources Programmable infrastructures allow dynamic optimization to respond to business requirements Resource Abstraction Semantically rich abstractions of heterogeneous resource capabilities and system components Mapping Workload to Resource Map requirements to potential system architectures. Proactively. orchestrate infrastructure and workload Continuous Optimization Autonomously construct available system architecture to optimize workload outcome Consumability Agility Efficiency

5) Software Defined Environments or Cloud 2.0 Managed Services without SDE Today Cloud Managed Services are monolithic, static and tightly integrated with the IaaS layer They are neither agile, nor easily extensible in ways that would allow them to manage other IaaS stacks or multiple IaaS stacks in the same deployment For example, current managed services cannot manage a Hybrid Cloud environment that allows excess demand to be pushed from a Private Cloud onto a Public Cloud Managed Services include disciplines like: Asset management Metering and billing along several dimensions Monitoring and Event Management Patch Management Antivirus and Intrusion Detection Server Activation and Deactivation (ensuring security compliance) 36

5) Software Defined Environments or Cloud 2.0 Managed Services with SDE Tomorrow Managed Services in an SDE will be modular, agile, consumable and dynamically provisioned, independent from the underlying IaaS abstraction Managed Services will be enabled or disabled depending on the needs of the environment They will also be available across all layers of the stack, from the management perspective as well as the application perspective An application needing monitoring or billing services could request such services from the management layer This allows Managed Services to be offered on any IaaS Layer (e.g. Public Cloud, Private Cloud, OpenStack, etc.) Within SDE, Managed Services will provide much flexibility in Cloud offerings Services can then be selected, added, and dynamically bound to any workload component at runtime 37

5) Software Defined Environments or Cloud 2.0 Shifting Towards an Holistic Cloud Ecosystem Addressing key client use cases HYBRID CLOUD Self-Service Management Workload Optimization Continuous Innovation Web Performance Application Performance Mgmt Orchestration and Analytics SmartCloud Orchestrator SmartCloud Analytics Custom Infrastructure Patterns of Expertise Mobile BPM Application Lifecycle Management IBM UrbanCode 3 rd Party Capacity Security Integration Virtual Storage Center Endpoint Mgr Identify & Access IBM CastIron IBM API Mgr Open Ecosystem Expert Integrated Systems API Economy Industry Solutions Jazz Hub Cloud Operating Environment Next Generation Platform Software Defined Environment Public Cloud Service Engage API Marketplace Code Name : Exchange Code Name : BlueMix IBM Pure Systems 38

Thank you for your attention! Questions? 39