Smarter Computing for Product Development Transformational IT to match Engineering Needs

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Smarter Computing for Product Development Transformational IT to match Engineering Needs David Coutts, IBM DE & STG Industrial Sector CTO October 30, 2012 1

Topics Industry Forces and product development needs Technology to enable change - Smarter Computing Engineering and IT Transformation Centralization vs. Cloud Implications and Next Steps 2

Dramatic forces across the Automotive industry create opportunities to enhance & transform product development Automotive Industry Forces: Sophisticated consumers driving demand for innovative and sustainable vehicles New technologies and capabilities making vehicles more intelligent Rapidly integrating enterprises driving increasingly dynamic operations Increased globalization driving more integration within automotive companies Consumer, regulatory & environmental requirements driving the creation of collaborative partner ecosystems to innovate Product Development Essentials: Data is king. It is the design IP and state of control. Design coherency must be maintained. Design content must be strategically placed and available. All available insight must be gained from data. Skills are critical & secure collaboration is essential. Designers can not be locked to a project or location. Collaborate securely across company borders Remotely access resources as needed. Improved innovation and time to insight are IT resource dependent. Private, siloed resources are unacceptable. Computing resources must be pooled and allocated based on availability and fit. Reprioritized or released when finished. Smarter Computing for Product Development is the technology response to these forces 3

CEOs believe technology will be at the forefront of driving change through 2015* 71% of CEOs identify technology change as the most important external force impacting their organizations * Is your infrastructure optimized for the greatest efficiency of all your applications and resources? Does your infrastructure enable you to provide rich, actionable insight? Are you leveraging new technologies mobile, social, cloud to deliver an excellent customer experience at every touchpoint? * IBM, Leading Through Connections: Insights from the Global Chief Executive Officer Study, May 2012. 4

The real question Will your infrastructure block or enable change? Only 1 in 5 clients have highly efficient IT infrastructures allocating 50% more of their IT budget to new projects 1 5 1 IBM, Data center operational efficiency best practices, April 2012.

The world is changing. Is your infrastructure ready? The time is now to 70% of IT budget is devoted to operations and maintenance 1 Connected devices will surge to 22 billion by 2020 2, with digital content rocketing to 8 zettabytes by 2015 (90% unstructured) 3 Leverage cloud to speed time to market and improve efficiency Unlock the power of big data to deliver more actionable insight The average IT infrastructure is attacked nearly 60,000 times every day 4 Secure critical information to protect and reduce risk 1 IDC, Game Changing Virtual Technology: Major Shifts and Innovations that will Forever Change your IT Business 2 Forrester, BT 2020: To Thrive In The Empowered Era, You ll Need Software, Software Everywhere, Phil Murphy, January 30, 2012. 3 IDC, IDC Predictions 2012: Competing for 2020, Doc #231720, December 2011, 4 IBM X-Force Research 6

Infrastructure blocks rather than enables change when... Data is siloed, outdated, redundant, unavailable, not secure Applications are difficult to use, not integrated, rigid Operations are expensive, ineffective Infrastructure is capital intensive, complex, outdated, inconsistent Skills are locked to location and not able to be applied as needed Smarter Computing for Product Development and can help companies transform their design chain to develop products better, faster and cheaper. 7

A Smarter Computing approach to product development results in focus areas for infrastructure change Remote user access - supporting anytime, anywhere, collaborative work Design Management & Process Control systems on consolidated, virtualized servers for reduced cost, greater agility, scalability, efficiency, and availability Application Systems Business & Engineering Desktops Technical Computing Systems Compute intensive applications, such as Design Analysis, Big Data Insights & 3D visualization, on Technical Computing clusters - for improved analytical and operational insight 8 Storage Systems Global file systems and scalable storage (block & file) for central control and worldwide access to valid data

This approach leads to a view of deploying & managing engineering solutions in the cloud Engineering Solutions for Cloud Storage Cloud Application Cloud Systems & SW Engineering Technical Computing Cloud TC Cloud Mgmt EDA, CFD, EM analysis, etc. Simulation Management Desktop Cloud ECAD Requirements MCAD 2D Rmt Collaboration Product Data Management Collaboration Hub Complex Control Simulation 3D Rmt Remote Client Security Browser PLM PDM Supplier1 PLM PDM Supplier2 IBM Applications ISV / Partner Apps ISV/Partner Interactive / Batch Jobs 9

As an example, IBM used HPC Cloud technology and Remote 2D visualization to enhance our own POWER7 development... Characteristics Remote user Access Designers in all locations access centralized resources via Thinkpad and a remote (2D) access client Shared, Centralized Development Rochester Austin POWER7 Poughkeepsie Yorktown Boeblingen La Gaude Haifa Bangalore Yamato, Kyoto Austin systems used for interactive and batch work at 90% utilization around the clock, seven days a week Note: site examples, not complete location list... realizing key business value propositions IBM IT cost per developer reduced by 50% or more Skills sharing: 2 programs staffed out of 1.75 teams Centralized servers achieved >90% utilization 24x7 Power 7 development cycle shortened by six months (18 months versus 24 months) 10

How did IBM STG get to this point? Our transformation involved both engineering and IT. Business efforts focused on standardizing processes, tools, governance across the company paid off Common Process Common Tools Integrated Governance Standardized process for product development, eventually expanded to include services & software Standardized, best-practice gate reviews Eliminate costly niche tools and duplicates Standardize tools across organizations Have tools drive users to standardized process Centralized governance at corporate level Standardized portfolio management process Shifted budget control to portfolio & projects Infrastructure efforts focused on data center consolidation and realization of shared, centralized resources supported by remote access also paid off... in Synergistic Ways! 11 11

Similar Characteristics are emerging for Mechanical Systems and Electronics Packaging Development requiring remote 3D visualization Characteristics Remote user Access Designers remotely access geo or globally centralized resources with 2D/3D remote clients and browsers Shared, Centralized Resources North Central Global Center Rmt Access to Tools & Content UK Germany Geo Center Design coherency and control is managed in one global operations center South Design content is strategically placed in a shared geo centric datacenter for remote access 12 1. Global PDM/SCM system for central management of design state/coherency 2. Geo-centric design content placement moving file content to a shared geocentric data center

Centralization and Cloud what do they each have to offer? Centralization Cloud Characteristics Consolidation of resources Servers, storage, NW at Geo or Global level Policy based scheduling Remote Access Browser, 2D/3D client Global file system Single view of all data Geo-centric file caching Place content where needed for performance Resource sharing and Multi-tenancy Isolating customer specific traffic, data and resources Engineering Value Access larger, more powerful amounts of compute & storage resources Designers can work on multiple projects, anywhere, anytime Expanded training and collaboration IT Value Realize more efficient Data Centers Achieve higher peak usage of servers and storage Reduced/minimized upgrade impact Reduce complexity and support costs Improve security Characteristics On-demand selfservice Users setup services with minimal help Ubiquitous network access Service access through standard internet enabled devices Location independent resource pooling processing and storage demands are balanced across a common infrastructure with no particular resource assigned to any individual user Rapid elasticity Consumer can increase or decrease capacity at will Measured service / Pay per-use Usage based consumption fees Engineering Value Dynamically request systems and services as needed Experience rapid service delivery response Improve startup productivity Pay based on service consumption Move CapEX to OpEX IT Value Improve operational efficiency, agility and resiliency Standardize and automate service delivery policies Reduce cost and risk 13

Cloud introduces new dynamics to help accelerate business value and enable new business opportunities. Capabilities From To* Server and storage utilization 10-20 percent 70-90 percent Self service Test provisioning Change management Deployment process Cost model Standardization None Weeks Months Labor intensive Nearly fixed Complex Shifting workloads to cloud-based capabilities can help enable new opportunities and drive significant cost savings. Unlimited Minutes Days or hours Automated By the hour Self service Payback period for new services Years Months Legacy server environments Cloud server environments *Based on results from IBM s Technology Adoption Program. Client-specific results can only be ascertained after a return on investment analysis. 14

Cloud technology for engineering solutions can reduce time to value, improve business flexibility, and reduce capital costs Standard Approach Process Design Application Design Infrastructure Design Configuration Procurement Easily moved to an outsourced Application Support Model saving even more Deployment IBM Engineering Cloud Approach Process Design Application Design Infra. Design Configuration Procurement Deployment Reduce time to value by almost 40% Application and Infrastructure elements predefined and validated Industry standard data model and process workflows Self provisioned compute and storage resources Rapid deployment Ongoing Support Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 15 Time to Value

A common Cloud Computing Reference Architecture guides all that we do across IBM... with respective offerings supporting solution needs Foundation IBM SmartCloud Entry IBM PureFlex System Infrastructure Solution IBM PureApplication System Platform Solution Services IBM SmartCloud Enterprise Pay-as-you-go, self-managed IBM SmartCloud Enterprise+ IBM hosted IaaS with committed SLAs Solutions Social Business on IBM SmartCloud Engineering Desktops on IBM SmartCloud 16

Smarter Computing for Product Development at a glance Focus Area Client challenges Capabilities required Client value User Access Traditional engineering workstations fix users and content to location; they re costly to buy, difficult to maintain, harder to secure Clients for 2D/3D Remote Engineering desktops, or Standard Browsers Support cost-effective anytime, anywhere, collaborative work Process Management and Control Systems Existing systems can t match resources to workload needs; large, static server farms are space, power hogs; hard to maintain and keep running Application Systems on consolidated, virtualized systems Greater agility, scalability, efficiency, and availability at reduced cost Design Analysis, 3D visualization, and Big Data Time needed to deploy and manage traditional HPC resources delays delivery of innovative products to market Technical computing clusters (some nodes w/ GPU adapters); Strong workload management Improved TTM via improved analytical and operational insight Global file systems and scalable storage (block & file) Dispersed teams working on islands of data, wastes storage resources and risks security exposures, lost productivity Shared, centralized, tiered storage; Active file management between strategic data center locations Efficient content management and world wide access to valid data sources 17

Engineering Solutions for Cloud Implications Expect continued realization of engineering solutions in the cloud Business model transformation Cloud environments will emerge for product development consortiums and strategic initiatives Major manufacturers and their partners/suppliers Resource access and skill building/development, etc. for: Community Colleges and Universities Small to medium businesses (some currently underserved) Shared investment for Exascale system capability of the future Software license models will continue to evolve From named user to token based and/or pay per use Common solution deployment patterns will emerge and grow in acceptance Common, best-practices engineering processes will be identified, captured, and leveraged for improved time to value. More aggressive adoption by new entrants in emerging geographies 18

Next Steps Understand how IBM and ANSYS are working together on IT solutions for ANSYS Meet with IBM and ANSYS team members during the event to discuss your areas of interest or opportunities to work together 19

Thank You! David H. Coutts IBM Distinguished Engineer & STG Industrial Sector CTO coutts1@us.ibm.com 845-435-6484 20