Cloud Opportunity and Smarter IT Delivery

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1 IBM Student Workshop for Frontiers of Cloud Computing September 9, 2010 Erich Clementi IBM Vice President, Strategy & General Manager, Enterprise Initiatives Cloud Opportunity and Smarter IT Delivery

2 Disruptive Technologies and the Internet Revolution Web 2.0 Grid Computing E-business World Wide Web TCP-IP Internet Unix-based Workstations Cloud Computing Personal Computer Distributed Client-Server, Mainframe Supercomputers Centralized Computing 2

3 Cloud: Consumption & Delivery Models Optimized by Workload Cloud is a new consumption and delivery model inspired by consumer Internet services. Cloud enables: Self-service Sourcing options Economies-of-scale Cloud s Cloud Computing Model Cloud represents: The Industrialization of Delivery for IT supported s Multiple Types of Clouds will co-exist: Private, Public and Hybrid Workload and / or Programming Model Specific 3

4 Cloud computing is delivering value to both the business and IT An Enabler of Business Transformation Creating new business models Industries Enabling speed and innovation Re-engineering business processes Increase innovation Supporting new levels of collaboration An Evolution of Information Technology Changing the economics of IT Information Technology Automating service delivery Radically exploiting standardization Decrease costs Rapidly deploying new capabilities 4

5 Enterprises will connect to many clouds Public Cloud Community Cloud Cloud s Standards Based Interfaces Software Platform s Software Platform s Planning R ole-based Access Definition Tools Serv ice Catalog Infrastructure s Operation al Console Cloud Management Platform Business Support Systems (BSS) Delivery Platform Operational Support Systems (OSS) On premise Private Cloud Definition Tools Infrastructure s Cloud Management Platform Business Support Systems (BSS) Delivery Platform Operational Support Systems (OSS) Ser vice Publ ishing To ols Reportin g & Analytics Publishing Tools Request & Operations Provider End Users, Operators Cloud s Planning Application/Business Process, Assembly and Information s Reportin g & Ana lyt ics Software Platform s Role-based Acc ess Federated Identity Federated ESB Event Infrastructure Secure Data Pipe Serv ice Catalog Standards Based Interfaces Cloud s Planning Application/Business Process, Assembly and Information s Application/Business Process, Assembly and Information s Operational Console Provider End Users, Operators Standards Based Interfaces End Users, Operators Cata log Request & Operations Provider Request & Operations R ole-based Access Enterprise Data Center Definition Tools Infrastructure s Cloud Management Platform Business Support Systems (BSS) Delivery Platform Operational Support Systems (OSS) Operation al Console Ser vice Publ ishing To ols Reporting & Analytics Dynamic Infrastructure Provider End Users, Operators Cloud s Serv ice Catalog Operation al Console 5 Standards Based Interfaces Software Platform s Software Platform s Ro le-based Access Definition Tools Cloud Management Platform Delivery Platform Operational Support Systems (OSS) Planning Application/Business Process, Assembly and Information s Infrastructure s Business Support Systems (BSS) Creation Cloud s Planning Application/Business Process, Assembly and Information s Role-based Access Provider End Users, Operators Ser vice Publ ishing To ols Reportin g & Analytics Trusted Provider Cloud Catalog Operational Console Standards Based Interfaces Request & Operations Request & Operations Definition Tools Infrastructure s Cloud Management Platform Business Support Systems (BSS) Delivery Platform Operational Support Systems (OSS) Dyn amic In frastru ctu re Open Standards enable Cloud Ecosystem Publishing Tools Reporting & Analytics

6 Three cloud sub-markets expected to grow strongly $47B market in 2008 growing at 28% CAGR will reach $126B in 2012 C loud S pending by S ub-market ($B ) $126B B us ines s S ervices 100 Business processes and softw are as service delivered as horizontaland industry verticalsolutions 27% 50 $47B 40% 23% Infras tructure S ervices C omponents S upply Platform and Infrastructure as a service offerings thatdeliverflexibility & cost savings to clients Sales ofc loud-enabling,hardw are, softw are and services to enterprises and service providers C AG R Notes: Includes both direct providers of cloud services and components suppliers, Data represents a worldwide view across both LE and SMB Source: IBM (MI), IDC, CIO magazine, BCG analysis 6

7 Requirement #1 Security and Privacy Today s Datacenter Tomorrow s Public Cloud People and identity Application and process Physical infrastructure Data and information Network, server and end point 7

8 Requirement #2 Management is needed to connect, manage and secure hybrid clouds Enterprise Infrastructure & Private Cloud Private shared services Security Governance Management Integration Off-premise business applications & information Application Integration, Monitoring Events, Identity and Security, Workload Management On-premise business applications & information 8 Public Cloud [SaaS, IBM Cloud, other Public Cloud] Off-premise shared services Workflow Manage the process for approval of usage Provisioning Automate provisioning of resources Monitoring Provide visibility of performance of virtual machines Metering and rating Track usage of resources

9 Requirement #3 Open Standards Standards Taxonomy Types of Standards Cross - Cloud SaaS PaaS IaaS Across Vendors within a cloud Cloud to Enterprise Enterprise Within an Enterprise Source: Cloud Computing Use Case Group Management Network 9 Virtualization Storage Standards address inhibitors to cloud adoption including security, vendor lock-in and portability. Recognize that cloud standards are emerging throughout the market, within IT and other industries. Standards should be open, have long term stewardship, have code to back them, and be widely adopted. API Security SLM\SLA Verticals

10 Requirement #4 - Migration and Quality of Virtualized Traditional Standardized Images and Patterned Deployment App1 App2 App1 App3 App2 Pattern 1 WAS 6 WAS 6 WAS 5 WAS 6 WAS 6 WAS 6 DB2 8 WebLogic DB2 9 X DB2 9 DB2 9 WAS 6 (but DB2 9 independent stacks) DB2 9 DB2 9 MySQL DB2 9 Shared Virtualized Hardware App2 App3 Pattern 2 WAS 6 DB2 8 App1 App3 WAS 5 Pattern deployment Shared Middleware Platform s (increased reuse) Shared Application Shared Virtualized Hardware Shared Messaging Leverage shared services Shared Database Shared Virtualized Hardware Reduced Costs and Increased Flexibility Shared, virtualized hardware results in Capex savings; shared middleware services results in Opex savings 10

11 IBM cloud strategy Technologies To plan, build, deliver and manage cloud services Consulting and enabling services Experience and expertise to help clients plan, build and deliver cloud services Cloud services To optimize your business Process services -specific services Software as a Collaboration services Shared middleware services Infrastructure services Analytics services Integrated service management and security Business planning / lifecycle management services 11

12 Companies have different motivations for leveraging cloud Large U.S. Retail Bank Risk & Compliance Employee Productivity Time to Value Analytics & Security 12 34,000- employee bank deploying a private cloud to centralize management of desktops. Greater remote flexibility without sacrificing control. Enable collaboration across global employees as well as its network of customers, partners and suppliers. Increased efficiency, productivity and ease-of-use of its development and test environment Design and demonstration of a secure cloud infrastructure for defense and intelligence networks; insights about cyber attacks, network failures & automatically preventing disruptions.

13 IBM is investing in cloud computing to meet internal and client needs Dublin Ireland Silicon Valley California Beijing China Bangalore India São Paulo Brazil IBM Cloud Labs Other IBM Cloud Centers Seoul S. Korea Tokyo Japan Hanoi Vietnam Singapore Johannesburg South Africa IBM CIO Cloud Implementations: Analytics Blue Insight 109,000 users growing to 200,000 Collaboration LotusLive 75% of all web conferencing Development and Test Dev/Test Time to build a dev/ test environment from 1 week to 1 hour Desktop Workplace Cloud Estimated savings up to 30% Storage Network Storage Cloud Up to 40% savings in storage costs Business s Production Cloud 1,000 applications identified Fit for purpose middleware platform Common Compute Platform (Compute/ Network/ Storage) 13 Base Enterprise Platform

14 Cloud enables global industry transformations s s s s s s Vertical Business s Workload Optimized Cloud Platforms On a platform of robust Infrastructure s 14 Healthcare Cloud Platform Retail and Consumer Packaged Goods Cloud Platform Additional Cloud Platforms Compute and Storage Clouds Enterprise-class Infrastructure s

15 Healthcare industry platform projects Collaborative Care Solution Integrated solution that transforms the delivery of healthcare and provides, in a software-asa-service model, Electronic Health Record, Health Info Exchange, Clinical Decision Support, and Healthcare Analytics EMR/PMS PHR Patient Consumer Physician Portal Care Team Portal Health Plan Portal (future) Health Analytics and Clinical Decision Support Bi Directional Orders and Results Shared Registration For EMR & Paper Based Practices Reference Labs Hospital Systems EMR 15 HIE Provider Document and Image Sharing Results Delivery Health Plan Claims Tx Pharmacy Systems & PBM

16 Cloud Solutions Management Approach SVP Cloud Steering Committee Output Prioritized solution strategies Acquisition candidates Cloud solution opportunities Identified IBM brand solution sponsors ---- Solution Boards Boards Identification Cloud Incubation Board Investment portfolio management Brand ---- Solution Offering Boards Teams Incubation Output Understand requirements for client value creation Define and demonstrate IBM value capture Meet IBM financial model requirements Put cross-ibm leadership team in place 16

17 In summary Cloud will be a core component in industry and business model transformation. Workloads will drive cloud adoption. Cloud will have major implications for enterprise security, privacy, integration, service management and migration. IBM is aggressively investing in and building out cloud capabilities. 17

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