IT has become increasingly complex and difficult to manage and scale. Costs are growing at unprecedented rates, as enterprises continue to add technologies in response to an explosion in the quantity and new types of data. This explosion in data and the patchwork of methods used to store, retrieve and provide usable views has resulted in inefficiencies in data center architecture, duplication of data base licenses, increased costs for data storage and management, and inefficient use of data center technicians. Database replication alone has precipitated new challenges and resulted in the lack of consolidation of numerous software middleware licenses, further increasing costs.

1. WinterGreen Research, Inc.
Private Cloud Adoption:
Patterns for the
Enterprise
Executive Summary
IT has become increasingly complex and difficult to manage
and scale. Costs are growing at unprecedented rates, as
enterprises continue to add technologies in response to an
explosion in the quantity and new types of data. This explosion
in data and the patchwork of methods used to store, retrieve
and provide usable views has resulted in inefficiencies in data
center architecture, duplication of data base licenses, increased
costs for data storage and management, and inefficient use of
data center technicians. Database replication alone has precipi-
tated new challenges and resulted in the lack of consolidation
of numerous software middleware licenses, further increasing
costs. All this has challenged the affordability of IT and has
driven vendors to evolve new solutions. Enter cloud computing,
representing a response to these challenges.
The positive effect of addressing these inefficiencies is that
enterprises are integrating capabilities into scalable IT solutions
by design vs. adding-on technologies, making it possible to build
large IT systems that are self-service and simplified, reducing
the reliance on availability of constrained resources. Large self-
service IT systems that have evolved with cloud solutions bring
new capabilities directly to the end user, providing easier access
to and easier analysis of large amounts of data. These ecosystems
do not just solve the issues described above; they bring new

2. capabilities to data systems. Solutions address data Private cloud computing capitalizes on systems that
center issues in part by enabling scalability and utilize automation within the data center to let users
consistent systems management and once these treat IT like a service. On demand application imple-
capabilities are in place, the consolidated IT systems mentations can be used in a globally integrated enter-
have greater flexibility and are capable of providing prise, while self service capabilities within the private
self-service consumption of IT. Self service provisioning cloud permit users to turn on workloads and turn off
capability becomes possible through increased workloads within the data center without intervention
horizontal scalability and improved manageability of IT administrators. Users have direct control of their
via flexible systems that are able to implement data workloads. Applications run anywhere, from anywhere.
and systems automation in a manner that reduces Platforms are chosen as the best fit for a workload and
costs and supports change in response to changing are invisible to the user.
market conditions.
Cloud solutions from IBM are the most comprehensive
Value of Cloud Computing in the industry. IBM has developed advanced capabilities
Cloud computing is emerging as a transformative that: allow faster application development and deploy-
technology, allowing IT to make self- service a part ment; provide visibility into operations, business
of an overall systems approach. Common cloud processes and applications; enable conditional event
adoption patterns leverage a combination of processing based on transactional and data driven
virtualization, consolidation, modernization, security, conditions; allow for rapid change in response to
reliability, and SOA. Use of these capabilities means changing needs; and manage complexity by hiding it
cloud systems provide the ability to implement flexible from the user. This holistic approach to IT is architected
response to changing market conditions. and delivered by IBM through common cloud adoption
patterns. Because the solutions are holistic, they thrive
This paper is positioned to help C level executives on support from leadership within the enterprise. IBM
understand the value of cloud-based IT service has been a pioneer in articulating and implementing
methods and delivery models. Cloud computing this IT leadership.
addresses IT issues by capitalizing on integration
made possible by the adoption of common middleware Adoption of cloud technologies come in a number of
standards. Data previously confined to silos within forms. A cloud enabled datacenter project provides
the line of business can be enabled for sharing across value by improving automated process, hiding
the broad reach of the enterprise. Data from partners complexity, reducing the cost of management, and
can be accessed as if part of the private cloud. supporting collaborative team based projects. Cloud
enabled systems are used to accelerate time to market
and sustain competitive market positions.
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3. A cloud enabled data center provides integrated service Evidenced by the multiple ways clients are adopting
management, automation, provisioning, and self-service. cloud, a world of hybrid computing has evolved. There
are no one-size-fits-all answers. Cloud computing is
Cloud platform services are built to support innovative evolving into a significant component of a flexible and
business models. An integrated stack of middleware agile Information Technology.
optimized for automated deployment and management
of heterogeneous workloads is able to dynamically adjust Let’s explore a few key projects that companies are
to changing business needs and to manage innovation. considering as they adopt cloud computing into their
Through these capabilities, cloud-based IT capabilities enterprise.
are now available to the line of business as application
based functionality. Applications running on a cloud Cloud Digital Marketing Optimization
infrastructure leverage an integrated middleware stack Customers are central to marketing. Customers need
to achieve competitive advantage. to be understood, reached, and tracked. Understanding
the variations and opportunities presented by an
existing customer base and looking for ways to extend
the customer base are driven by the use of analytics.
For instance, marketing departments need to provide
a highly personalized and compelling customer
message. Development of the message depends on
figuring out what messages might work and who
they might work with. Once the message has been
developed, marketing departments need to develop
communication capability.
Business solutions on cloud are a response by With companies positioning products and services
enterprises to gain access to enterprise-ready business worldwide, communicating a marketing message
and IT solutions on the cloud. With broad application becomes complex. As companies move to address
across industries, these SaaS solutions allow enterprises regional markets with global products, the complexity
to transform business processes and engage with is inherent to the business processes. Collecting and
constituents inside and outside of the organization. analyzing data from disparate systems across the
globally integrated enterprise is a process intensive job.
Cloud service providers employ IaaS and PaaS Marketing technology needs to be flexible and able
capabilities to position themselves as a provider of to be customized to manage languages and cultural
a variety of applications that permit users to gain differences that are local. Marketing departments need
immediate access with business and IT as a service. automated processes for gathering an understanding
Advanced, reliable, highly secure and scalable cloud about the varying needs of local customers.
platforms are used for creating, managing, and
monetizing cloud services.
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4. Implementation of the globally integrated enterprise Partner Support on the Cloud
depends in large part on the ability to create digital IBM‘s ecosystem of partners are helping to build
marketing systems that widely dispersed teams can use additional cloud-based digital marketing capabili-
collaboratively. The ability to create and use brand ties. One such instance is Lionbridge and IBM, who
messaging appropriate for a global presence is a chal- are collaborating to bring cloud-delivered real-time
lenge. There is a need for digital marketing flexibility multilingual translation to marketing touch points
and optimization. There is a need for capabilities that around the globe. Lionbridge’s translation market-
work across a range of marketing channels. Digital ing software known as GeoFluent, is based on IBM’s
marketing needs to leverage various touch points world class machine translation engine. The technol-
worldwide in ways that are localized, yet able to protect ogy is being used internally by 400,000 IBMers to
and provide consistent messaging for a global brand. translate words in chat, email, web pages, eSupport,
blogs, knowledge portals, and document translation.
Digital Marketing Optimization The digital marketing dictionary is of substantial
Suite from IBM size, reaching 100 million words in 2011. Through
Access to enterprise-class marketing capabilities as these partnerships, IBM is able to leverage Lion-
software as a service provides the scale that is essential bridge product GeoFluent to help clients manage
to making various global marketing initiatives afford- multilingual content across their enterprise without
able. In addition, marketers need powerful analytics having to deploy expensive translation management
to leverage the explosion of technology, transparency, systems or software.
channels, and social interactions across customers.
With IBM’s cloud-based suite of marketing optimiza- Delivering Development and Test
tion capabilities, marketers can capture social media Environments on the Cloud
marketing opportunities faster than their competitors, With industry-leading development tools from IBM
turning site visitors into repeat customers. Analytics Rational, delivering development and test tools
can be used to develop themes and functionality that conforming to enterprise processes. With the fast
let loyal advocates be rewarded, while orchestrating changing needs of software projects, and high-cost
a compelling experience throughout each customer’s of acquisition, installation, customization, delivery
digital lifecycle. and maintenance, customers are looking at ways
to exploit cloud for fulfilling the various needs of
software projects. Setting up a development and test
environment on a cloud is a very efficient way to
enable globally distributed teams.
Delivering development and test tools as a service,
and setting up of test labs in the cloud can be done
rapidly and efficiently, all while achieving high
utilization of cloud resources.
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5. As much as 85 percent of computing capacity sits
Key Capabilities for Delivering Development
idle in distributed computing environments. Seventy
and Test Environments on the Cloud:
percent of IT budgets are typically spent on maintaining
current IT infrastructure, and only 30 percent are
Platform Services:
typically spent on new capabilities. IBM cloud comput-
• Easy deployment and management of cloud-ready
Dev/test tools-As-A-Service ing represents a way to reverse these patterns, to spend
30 percent of the IT budget on maintaining of existing
• Image management for efficient delivery of
standardized “solutions” and “stacks” systems and 70 percent on innovation.
• Automated deployment of solutions based on
topologies The agile, on-demand enterprise, as enabled by IBM
• Multi-tenant applications Cloud solutions is able to effectively and proactively
• Flexible software licensing model for improved reuse respond to competitive threats, market opportunities,
of application development tools and middleware and macroeconomic and technology discontinuities
• Virtualized developer/tester desktops abundant in today’s markets.
• Heterogeneous platform support These are Benefits that Customers are
Receiving Today by Implementing IBM
Integration Services:
Cloud Technologies
• Integration with existing enterprise processes,
identity, data and business processes • Power consumption decreases by 80%
• Spillover and failover services • New application deployment time cut by up to 85%
• Agile development processes integrated with • Database costs decrease by 68%
software delivery lifecycle • Serve acquisition costs decrease by up to 56%
• Total cost per workload decreased by 55%
End-User Services: • Application development time improves by up to 40%
• Self-service provisioning of tools and stacks • Floor space efficiency increases by up to 90%
Some examples of IBM Customers who are reaping
the benefits of cloud include:
Cloud-Based Infrastructure Adoption
Cloud-based infrastructure adoption is one of the Citigroup reduced provisioning times from 45 days
most basic, but most significant IT cloud initiatives. to 20 minutes, improving their ability to deploy new
IT infrastructure needs to be dynamic to free up banking services to clients. According to IBM Italy,
budget for new investments and accelerate deployment. the Univerista di Bari reduced time to market for
Superior IT capabilities are being demanded by the fishermen and farmers with a cloud -based solution
business, asking for systems development capabilities for real-time trading. USA-based Acxiom improved
that are available to the line of business developers, capacity five-fold without adding new floor space, with
not buried in IT. a cloud-based model that improved customer retention
and captured new business. The City of Norfolk,
Virginia, USA improved storage performance by
40% and cut power consumption in half, enabling it
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6. to deploy automated parking systems and police in-car Users can adopt cloud computing in a variety of ways,
video surveillance. These are real stories that illustrate for a variety of reasons, and gain a variety of benefits.
significant ROI for cloud computing initiatives. IBM is unique in the cloud computing market because
it has a broad, more comprehensive offering by a
Should any reader want more information on quantum amount.
these reference accounts, please contact:
info@wintergreenresearch.com where these
and other ROI scenarios can be explored.
Conclusion
Cloud computing provides a way to virtualize work-
loads, to simplify computing environments, and to
consolidate infrastructure. Through standardization,
process can be managed more efficiently. Key to the
cloud are consolidated pools of resource, and consoli-
dated information that lets users monitor events,
monitor usage, and pull together workflow using The examples cited in this paper only scratch the
automated process to a greater extent than has been surface of different types of cloud implementations.
possible hitherto. The promise of cloud is one of advanced computing
made simple. The ability to create integrated systems
that have access to a range of applications within the
enterprise and inside partner organizations opens
Examples of Projects Described in This Paper the promise of more advanced, affordable business
management.
Digital Marketing Optimization
Digital Infrastructure
Development Systems
Examples of Other Cloud Projects
• Image Management
• Desktop Consolidation
• Hybrid Computing
• Virtual Environments
• Storage Management Optimization
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www.wintergreenresearch.com
tel: 781-863-5078
email: info@wintergreenresearch.com
Lexington, Massachusetts