IBM SmartCloud Strategy How cloud computing can support your business Christoph Schwaiger Cloud Offering manager, CEE October 18th, 2011

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1 IBM SmartCloud Strategy How cloud computing can support your business Christoph Schwaiger Cloud Offering manager, CEE October 18th, 2011

2 Expectations and demands on data centers are increasing exponentially The world s information is doubling every two years. In 2011 the world will create a staggering 1.8 zettabytes More than 70% of all server workloads will be virtualized by 2014 Data will grow 800 percent over the next five years, and 80 percent of that data will be "unstructured," requiring significant effort to understand and analyze There are nearly 33 million servers worldwide 15% of which run 24/7 without active daily use. 70% of companies in the global 1,000 will have to modify their data centers to meet increased power and cooling requirements

3 As a result, cloud is an increasingly attractive means of creating and delivering IT services. Value delivered From traditional To cloud Change management Months Days or hours Test provisioning Weeks 20 minutes Install database 1 day 12 minutes Install of operating system 1 day minutes Provisioning environment 51% cost savings Design and deploy business applications Months Days/Weeks Our commitment to informed decision making led us to consider private cloud delivery of Cognos via System z, which is the enabling foundation that makes possible +$20M savings over 5 years. IBM Office of the CIO

4 4 Cloud computing allows companies to rethink IT and reinvent the way they do business Smarter Healthcare Smarter Education Smarter Finance Smarter traffic Reinvent Business Efficiency ati o Rethink IT nt hro u gh ind us tr y Transformatio n Faster time to market for new services Increased focus on differentiated Bu processes sin es Meet changing customer st ran expectations, direct access to sfo technology rm Rapidly deliver services Integrate services across cloud environments Increase efficiency Economics of computing are changing

5 We are now entering the first half of the majority adoption period 10/ Mostly Shift, Limited Lift -- Traditional Traditional Outsourcing Outsourcing expands expands but but with with lower lower prices prices ++ Cloud Cloud service service provider provider build-out build-out of of HW/SW HW/SW ++ Cloud Cloud service service provider provider Appl Appl Enabling Enabling Svc Svc engagements engagements ++ Client Client use use of of Consulting Consulting on on how how to to do do Cloud Cloud Mostly Shift, Increasing Lift -- Managed/Hosted Managed/Hosted services services adoption adoption expands expands ++ Cloud Cloud adoption adoption adds adds more more clients/providers, clients/providers, more more build build out out ++ Cloud Cloud adoption adoption adds adds more more applications, applications, PaaS PaaS emerges emerges Continuing Shift, More Lift ++ Cloud Cloud adoption adoption adds adds many many more more clients clients (SMB, (SMB, emerging emerging mkts) mkts) ++ Cloud Cloud adoption adoption adds adds many many more more applications applications ++ BPaaS BPaaS expands expands significantly significantly in in Industry Industry Verticals Verticals Source: Market Analysis/Market Insights

6 Enterprises desire the benefits of cloud but are not willing to compromise on their requirements Availability and performance tuned to workloads Technology platform choices built on standards Varying degrees of Security and Isolation Flexible payment and billing options From self service to fully managed environments 44% 50% 56% are concerned with the lack of or limited ability for customization of public clouds concerned about the loss of control over IT activities/ business processes believe that service level agreements are not detailed enough

7 The Shift to a Client-Defined Cloud Increased focus on Business Flexibility and agility: Low cost and high speed: Simplicity and ease of use: New business value Operational Efficiency IT without boundaries Companies are leveraging cloud on a Smarter Planet Cloud provides means to drive greater business value, manage IT budgets and conceive new business models Cloud provides the flexibility to easily fit into IT and promises to re-shape IT Build out environment to facilitate business process redesign through IBM Smart Cloud platform Seamless integration to support development and consumption of new services Supports Tier 1 4 applications Platform for migrating certain key applications and workloads Platform for integrating hybrid world of cloud and on-premises applications Maintain integrity and security Cloud helps enable business information anywhere anytime

8 From over 2,000 engagements, we see four major Client Cloud Adoption Patterns emerging Cut IT expense and complexity through a Accelerate time to market with cloud cloud enabled data center platform services Integrated service management, automation, provisioning, and self service Integrated stack of middleware optimized for automated deployment and management of heterogeneous workloads that dynamically adjusts Gain immediate access with business solutions on cloud Capabilities provided to consumers for using a provider s applications running on a cloud infrastructure Innovate business models by becoming a cloud service provider Advanced, reliable, highly secure and scalable platform for creating, managing, and monetizing cloud services

9 Within each client buying pattern we have defined so called cloud projects to get clients started Cloud Enabled Data Center Cloud Platform Services Create a Cloud Strategy and Roadmap Applications on Private Cloud Consolidate and Virtualize your Infrastructure Image and Virtual Environment Management Implement an Entry Cloud Infrastructure Develop and Deploy Cloud Applications Delivering Dev and Test Environments Business Solutions on Cloud Social Business Reducing total cost of ownership of B2B Integration Enable Global Supply Chain and Inventory Digital Marketing Optimization Implement an Advanced Cloud Infrastructure Business Process Redesign Access Compute and Storage as a Service Monitoring as a Service Cloud Service Provider Build the Cloud Infrastructure Enable Applications in the Cloud Extend Applications in the Cloud Desktop Cloud Cloud Service Management and Integration Cloud Service Security Cloud Assurance Integrate and Manage a Hybrid Cloud

10 IBM SmartCloud is our next generation service delivery platform that is enabling Enterprise IT and Business Process transformation Business Process as a Service Platform as a Service Infrastructure as a Service Management, support and deployment Security and isolation Availability and performance Technology platform Payment and billing Client portal IBM Cloud Reference Architecture

11 IBM SmartCloud addresses the unique requirements of enterprise Cloud An IaaS designed to provide the client defined cloud critical to meeting the needs of enterprise class service delivery Enterprise class governance, administration and management control Multiple security and isolation options built into the virtual infrastructure and network Shared or dedicated managed environments Workload portability across different delivery environments Management support above the operating system including disaster recover and integrated help desk Management, support and deployment Security and isolation Availability and performance Enterprise data center Enterprise Managed private cloud Hosted private cloud Technology platform Payment and billing Enterprise A B Shared cloud services Multiple delivery models allow clients to optimize against economics, integration, security and control.

12 Extending the capability of our next generation service delivery platform to higher value - and Making the market for Enterprise PaaS A PaaS designed to provide the client defined cloud required to develop, deploy, manage and integrate enterprise applications Application Services Application Resources Management, support and deployment Application lifecycle Workload services Security and isolation Reduce cost and shift to opex model for targeted application development activities on the Cloud Availability and performance Enterprise data center Enterprise Managed private cloud Hosted private cloud Integration Speed application development requirements through on demand access to an integrated and automated application development environment Technology platform Payment and billing Enterprise A Manage enterprise applications and integrate activities more efficiently and effectively through standardization and automation of key tasks B Shared cloud services

13 Unprecedented choice and control translate into capabilities customized to your needs and priorities. Management, Support and Deployment Security and Isolation Availability and Performance Technology Platform Payment and Billing Hardware Hypervisor Operating System Security Policies and Services Logical and Physical Isolation Integrated Dedicated Client Backup Connection and Recovery from Data Center Rapid Provisioning Time High-End Scalability SLA 99.5% SLA 99.9% x86 Tiered Storage Power Linux Pay as You Go: Hourly Pay as You Go: Monthly Managed Service Options Middleware Application Process Location Dexterity Windows AIX VMWare KVM

14 Whether you are designing a new application for the web Management, Support and Deployment Security and Isolation Availability and Performance Technology Platform Payment and Billing Hardware Hypervisor Operating System Security Policies and Services Logical and Physical Isolation Integrated Dedicated Client Backup Connection and Recovery from Data Center Rapid Provisioning Time High-End Scalability SLA 99.5% SLA 99.9% x86 Tiered Storage Power Linux Pay as You Go: Hourly Pay as You Go: Monthly Managed Service Options Middleware Application Process Location Dexterity Windows AIX VMWare KVM

15 Or automating key tasks across existing complex applications such as ERP Management, Support and Deployment Security and Isolation Availability and Performance Technology Platform Payment and Billing Hardware Hypervisor Operating System Security Policies and Services Logical and Physical Isolation Integrated Dedicated Client Backup Connection and Recovery from Data Center Rapid Provisioning Time High-End Scalability SLA 99.5% SLA 99.9% Power Linux x86 Pay as You Go: Hourly Tiered Storage Pay as You Go: Monthly Middleware Application Process Location Dexterity Windows AIX VMWare KVM Managed Service Options

16 The IBM SmartCloud delivers a robust set of services from IBM and an ecosystem of partners to deploy along side your own services Client Defined Services Cloud Design and Implementation Services SAP Backup Security Unified communications Management, support and deployment Desktop Security and isolation Availability and performance Enterprise data center Enterprise data center Enterprise Private cloud Managed private cloud Hosted private cloud Compute & Storage Partner Services Payment and billing Technology platform Enterprise A B Shared cloud services

17 The IBM enterprise-class service delivery platform will offer two tiers optimizing delivery requirements and economics Rapid access, multi-tenant solution scaled and priced based on usage. Robust multi-tenant solution, including managed production services. Workloads Ideal for developing and deploying new application designs Ideal for migration of traditional and higher availability applications Operating system Linux, Windows Windows, Linux, AIX Management level Self Service with advanced premium support Fully managed Availability 99.5% 99.9% Security Virtual and some physical isolation Multiple levels of isolation Software usage Bring your own / pay as you go / free developer use IBM provides operating system and tool licenses Pricing Hourly usage-based with reserved options Monthly usage-based and fixed contract

18 Also coming soon: IBM SmartCloud for SAP Applications Delivering SAP production and non-production environments via IBM s Cloud platforms and automating the most common labor intensive tasks associated with managing SAP environments What s New (or New Enhancement) - Standardized offering, bringing proven experience and expertise with hundreds of customers on our 1st Generation Cloud SAP Cloud. - Delivers enhanced automatic provisioning and automation in this next-generation platform. Features/Business Value - Catalog of SAP base images - Automated Cloud SAP system provisioning - Automated SAP refreshes - Cloud based SAP cloning - Automated post clone processing Client Benefits - Reduce cost of SAP Environments - Reduce cost of SAP Basis and DBA Support - Reduce complexity / chaos created by proliferation of SAP development environments - Reduce cost, lead time and improve quality of SAP production management and other common tasks Learn more

19 Cloud in action: University of Bari Students at Italy s University of Bari use IBM cloud to create innovative solutions to help the local economy. Business challenge Give students a platform to create innovative solutions for local communities and businesses in southern Italy. Rethinking IT Elastic, cloud-based services from sensors, market systems and GPS data, connecting university, private sector and government agencies. Reinventing business Cut shipping times for local deliveries in half. More efficient supply chain with fishermen completing transactions with merchants while still at sea. Winemakers increase quality with constant soilcondition monitoring. 19

20 IBM SmartCloud Enterprise used for developing and demonstrating cloud software GMC is a leader vendor for CCM (Component Content Management) Headquartered in Switzerland (> 300 employees) Founded in 1994 Consistently growing and profitable 2 R&D Centers in the Czech Republic (130 employees using the solution) Cloud is strategic: GMC growth strategy with focus on BFSI (Banking, Financial Services and Insurance) Enterprise class CCM Strong believe in cloud both public/private 20 Why IBM: Driven by an opportunity Partnership as ISV & Banking Industry Solution Framework IBM s standing as enabler Agreement: Signed up for Dev/Test Cloud Application testing

21 CloudBroker uses the IBM cloud to crunch numbers CloudBroker IBM delivers a scalable and secure cloud infrastructure service with a variety of system configurations, states Wibke Sudholt, Co-founder and CEO of CloudBroker. The solution is flexible and available with an attractive pay-asyou-go pricing model. CloudBroker chose IBM's Smart Business Development, Test and Compute Cloud services as flexible, secure and scalable infrastructure environment for their highperformance computing (HPC) services. The offering provides businesses with fast, scalable and reliable computing environments. It is particularly useful for innovative small-to-medium businesses, as the test and development Cloud services are available without initial investments on a pay-per-use basis.

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23 The time has come to rethink IT and reinvent business with cloud and IBM Ask the fundamental questions: Is your organization achieving the levels of innovation required to complete in today s environment? Is your organization able to nimbly put lucrative ideas into action? Does your organization incorporate the best ideas even if they come from outside? Are you developing internal capabilities that would be better handled by others? Go to ibm.com/cloud for more information. 23

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