Manage the Velocity of Change with Cloud Computing

1 • © Aberdeen Group 2013 – Not For Distribution© 2013 AberdeenGroup
™
Managing the Velocity of Change
with Cloud Computing
Janine M. Sneed
Program Director, IBM SmartCloud
Foundation Product Management

2 • © Aberdeen Group 2013 – Not For Distribution
@JanineSneed

Yankees + Cloud + Mobile
How can you enjoy the sights and sounds of the NY Yankees
without actually going to the Yankee Game?
This is not an endorsement of SoundCloud!!
SoundCloud is an online audio and distribution
Platform that allows collaboration, promotion,
and distribution of audio recordings by users
- 20M users with 1.5M new users / month
- API to allow other apps or smartphones to
upload / download files

Giants + Cloud + Mobile + Social + Data
How is MetLife Stadium delivering you the “ultimate fan
experience”?
Breaking Team News
Replay video in MetLife Stadium
Real time stats for every drive
Video on demand
Fantasy updates
Post game blogs
Pre-game reviews
Concessions – Interactive map

Giants + Cloud + Mobile + Social + Data
How is MetLife Stadium delivering you the “ultimate fan
experience”?
Breaking Team News
Replay video in MetLife Stadium
Real time stats for every drive
Video on demand
Fantasy updates
Post game blogs
Pre-game reviews
Concessions – Interactive map
This is NOT an endorsement for
The NY Giants or the NY Jets

Real Housewives of NYC + Social + Mobile
How do I let my besties in CT know that I will be watching the
Housewives of NYC this season?
I tweet, share, and like!!

Sex and the City + Cloud + Social + Security
How do you prevent Guccifer from hacking into your online
email and twitter account and website and posting the first
37,000 words of your unpublished manuscript?
After creating 50 screen grabs of the text and
uploading them to a Google Drive page, the
hacker then sent a tweet through Bushnell's
account to her 9100 followers announcing the
leak: "Here you can read my last book, 'killing
monica' first 50 pages; enjoy as long as you can!”
- eonline.com
Security at every layer
- Access and Identity
- Data
- Infrastructure

Five CIOs on Cloud
http://www.youtube.com/watch?v=CD_elWBD1Zk

Technology is critical to the business
For the first time, CEOs identify technology as the most
important external force impacting their organizations

Nearly half (48%) of CIOs
surveyed evaluate cloud options
first, over traditional IT
approaches, before making any
new IT investments
Source: (1) 2011 joint IBV/EIU Cloud-enabled Business Model Survey of 572 business & IT leaders; Q4. Which of the following most accurately describes your organization's level of
cloud technology adoption today and which do you expect will best describe it in three years?
Sizing the Cloud , Forrester Research, April 21, 2011; ; CIO.com, June 14, 2011, http://www.cio.com/article/684338/Survey_CIOs_Are_Putting_the_Cloud_First
Piloting
Adopting
Substantially
Implemented
+215%
+33%
72%
91%
What is Your Organization’s Level of
Cloud Adoption?
% of Respondents
The Global Cloud Computing Market is
Forecast to Grow 22% per year through
2020
$0B
$50B
$100B
$150B
$200B
$250B
2011 2015 2020
$241B
$41B
$150B
CIO’s top focus:
1.Big Data 83%
2.Mobility 74%
3.Cloud Computing 68%
4.BPM 60%
5.Security 58%
CIOs are adopting Cloud …

… while managing the intersection of emerging technologies
200 Billion
62%
of workloads will be
Cloud-based
physical assets with IT
intelligence
1 Billion
consumers will have
SmartPhones
60,000
Cyber Attacks per day on
Large Enterprise and
Government Networks

 Business managers do not rate IT as highly as IT rates
itself
 25% difference in how business rated IT’s
ability to deliver projects on time and on budget
 Sr management is frustrated with IT’s ability to
deliver
At best, 39% of respondents said IT does this
consistently
 R&D and marketing do not see IT driving innovation
Leaves IT being bypassed for service providers
and consultants up can effectively speed
innovation
 Business is taking direct responsibility for IT
Doubling of firms reporting that IT is done
within their business unit – reflects frustration
with central IT and use of aaS and mobile to
bypass IT
 More business leaders are taking a more active role
in technology
Main motivation is that IT is too important to the
business and IT does not understand the
business well enough
Forrsights: Business Execs Increase Direct IT Spend to Support Systems of Engagement , May 2012
Business and IT don’t see eye to eye on IT’s ability to deliver

Enabling Innovation with SoMoClo
Systems of EngagementSystems of Record
Data & Transaction
Integrity
Smarter Devices &
Assets
• Core Data and Transactions
• Applications Infrastructure
• Dedicated Resources
• Social, Mobile, User
Interface
• Parallel Application Model
• Shared Infrastructure
Intelligent,
Adaptive
Workloads
“Empower customers,
employees and partners with
context-rich apps and smart
products to help them decide
and act immediately in their
moments of need.” - Forrester
Systems of Engagement will
reshape software priorities

IBM SmartCloud
Enables private/hybrid cloud
service delivery and
management
Secure and scalable cloud
managed services platform
Pre-built Cloud SaaS business
applications and solutions
Cloud Enablement
Technologies
Managed Cloud Services Cloud Business Solutions
DeployDesign
Business Process as a Service
Software as a Service
Platform as a Service
Infrastructure as a Service
Consume
Common Open Standards Technology and Industry Ecosystem

IBM SmartCloud Foundation: The Building Blocks
• A comprehensive set of offerings for
enabling Cloud infrastructures
• Optimized for progressive patterns of
adoption adapting existing
infrastructures into the Cloud
• Supports heterogeneous server,
networking, storage & middleware
• Capabilities designed to interoperate
based on a common open standards
Cloud reference model
Platform as a Service Technologies
Infrastructure as a Service Technologies
Infrastructure UsagePerformanceManagement Security
Lifecycle Resources Environments Management Integration
Deploy
Cloud
platforms
into your
existing
infrastructure

OpenStack Foundation: Exponential Ecosystem Growth
OpenStack is a global collaboration of developers & cloud computing
technologists working to produce an ubiquitous Infrastructure as a Service
(IaaS) open source cloud computing platform for public & private clouds.
Platinum Sponsors Gold SponsorsAPR
2012
APR
2013150
Contributors
2600 Individuals
859
Contributors
8900+ Individuals
Exponential growth in 1 YR

OpenStack is not enough: Value Add from IBM
Orchestration Services
Platform Level Services
Infrastructure Level Services
Orchestration Services
Platform Level Services
(Image Lifecycle Mgmt) (Pattern Services)
(Provisioning, configuration, resource
allocation, security, metering, etc.)
Cloud Resources
Storage Compute Network
 Orchestration Services:
• Graphical designer eases coordination of
complex tasks and workflows, leveraging
existing skills
• Reuse existing processes, scripts and
automation in workflows
 Platform Services:
• Simplifies deployment and lifecycle
management of middleware and application
patterns
• Automated application deployment and
lifecycle management including compute,
storage, network∫
 Infrastructure Services:
• Highly flexible, scalable infrastructure on
heterogeneous resources
• Built on OpenStack but enhanced with
enterprise hardening, simplified install and use
 Extensibility:
• Plug and play operational service
management integration
• Rational development tooling integration for
devops scenarios
• Pre-built images, patterns, process /
configuration automation
OperationalExtensions(APIs)
DevelopmentExtensions(Tooling)
Common Cloud Management Services
IBMAddedValue

IBM SmartCloud Offerings are built on OpenStack
Related Standards &
Organizations
SmartCloud Orchestration
Orchestration, Platform and Infrastructure Services across multiple environments and domains
CIMI &
OVF
TOSCA
CCRA OSLC
 Simple 3-tier structure, increasing client value at each tier and
extending across hybrid cloud environments
 Using open, common, standards-based architecture providing
choice, flexibility, interoperability and portability
 Clean upgrade paths with progression to fully integrated and
factory optimized PureApplication System
 Significant benefits including ease of installation, enterprise
hardening and additional capabilities above base OpenStack
SmartCloud
Provisioning
Platform and Infrastructure
Services
SmartCloud Entry
Infrastructure Services
SmartCloud
Provisioning
Platform and Infrastructure
Services
SmartCloud Entry
Infrastructure Services
Customer
integrated
hardware
PureFlex System
PureApplication
System
Infrastructure and
Platform Services
Key
Software
Offerings
Factory
Integrated
Bundle
Option

The Workload Optimized Cloud
Four differentiating capabilities to build a business
ready cloud:
1. Manage images and prevent image sprawl with out-
of-box advanced image lifecycle management
40% - 80% labor cost reduction by increasing
image/admin ratio efficiency
2. Accelerate application deployment with
standardized pattern-based deployment and
workload aware management
Reduced standardized topology deployment from
over 2 hours to 18 minutes
3. Avoid vendor lock-in with choice of Hypervisor and
Hardware
Increased server utilization up to 90%; leveraged
existing hardware and software assets
4. Improve agility with robust, automated, high-scale
provisioning
Deploy 100s of new VMs in less than 5 minutes
IBM SmartCloud Provisioning combines infrastructure and platform capabilities to deliver robust
automated workload deployment, image lifecycle management and high-scale application provisioning

Provisioning is not enough ...
Real customer example
VM Provisioning
Customers want end to end automation to accelerate delivery of
IT services while reducing costs

Managing workloads in a cloud enabled data
center requires orchestration
Orchestration
Engine
Compute
Domain
Monitoring
IT Asset
Management
Service
Desk
Storage
Domain
Change
Management
Provision Pattern
Network
Domain
DBAppWeb
Open Service
Lifecycle
Collaboration
Workload Orchestration
Workload aware placement,
optimization and operation
Resource Orchestration
Onboard, provision, manage
CPU, Storage and Network
Service Orchestration
Manage the lifecycle of
business applications

Orchestration: Business and IT Process Workflow
Palette of library assets
enable easy workflow
composition through
drag and drop
Access to rich libraries
(toolkits) of reusable
automation assets that
enable to speed automation
creation
Rich set of actions types,
flow control, data handling
primitives that simplify
creation of complex
automations
Easy workflow action editing
for managing: data mapping,
error recovery options,
implementation details , etc.
Graphical editor
for composing and
connecting
workflows
Rich tooling functions
to edit, version,
debug, optimize
workflows
Advantages –
Graphical vs. Scripting
Compose Automations Required at Deployment Time vs. Hard Coded
Allows for both Human and Automated Interaction
Orchestrate business and IT processes from a single tool

Large European Bank BVA
Background:
A global financial services provider offering retail banking, credit cards, corporate
and investment banking and wealth management with extensive international
presence in Europe, Americas, Africa and Asia.
Challenges:
• Vast, complex estate – 1200 Servers with seven versions of WAS and 45
patch versions deployed.
• Inability to impose standards across the estate.
• Inefficient processes that are driving up cost, headcount and IT delivery times.
• Year-on-year increase in costs including extended software license support
costs
Benefits:
3-year benefit (includes only IT benefits):
• Total benefit: £ 3.368 M which include:
• App. migration costs, systems monitoring/admin., provisioning, … reduced ~£ 2.5 M
• ROI: 83% - Break-Even: Less than 1 Year

Case Study: Cloud drives 85% ROI and less than 12 months of
break even
Application
Pattern
Provisioning &
Management
PureSystems
Virtualization
Service
Mgmt &
Auto Provisioning
Challenges in the
Traditional IT Model:
• Ability to track resources
• Manual Install & config
• Standard & automation
• …..
Benefits:
• Provisioning Service
Requirements & Fulfillment
• Aligned with Bus. Process
• Track Resources & Usages
• Virtual Image Creation
• VM & Resources Mgt
Potential Impact:
• 65% Reduction in
Provisioning time
• 200 - 500% improved
resource utilization
• 60 -100 % ROI
• 3-9 Months Payback
Benefits:
• Self Service Model
• Optimized Process
• Automated Res. Tracking
• Image Usage profiling
• Reusable Image Library
• E-2-E automation
Potential Impact:
• 90% reduction in process
overhead
• 100 -200 % ROI
• 6-12 Months payback
Benefits:
• Automated Provisioning &
Applying of app stack
• Integration Topology &
App. Workload patterns
• Automated Mgmt of
application pattern
Potential Impact:
• 30% improvements on top
of virtualization
• 80% reduction in workload
deployment and
management
• 3-9 Months payback
20 -25
%
25 -30%
30 -35 %
Life-CycleTCO
VirtualizedTraditional IaaS PaaS
* Number and percentages are approximated.
**Real Client. Illustration purposes only. Results will vary.

“IBM’s view on cloud is the most
complete within the marketplace.”
“The strong SLA and policy focus of the
entire IBM cloud portfolio offers the
scalability and functionality required to
build out a business critical production
cloud.”
“IBM’s application deployment patterns
are second to none.”
IBM namedValue Leader in EMA Radar for Private
Cloud Platforms: Q1 2013

IBM is committed to Cloud
 200+ Million daily Cloud transactions
 1 Million application users working in IBM
Cloud
 13 Billion+ security events managed per day
 Over 60 SaaS solutions for immediate access
 9,000+ Cloud client engagements
 1,000s participating in the Open community
 Strong partner ecosystem
IBM
SmartCloud
IBM
PureSystems

27 • © Aberdeen Group 2013 – Not For Distribution© 2013 AberdeenGroup
Janine M. Sneed
jsneed@us.ibm.com
@JanineSneed
THANK YOU!

Manage the Velocity of Change with Cloud Computing

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