Enterprise Consumption Patterns on IBM Cloud Platform

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Enterprise Consumption Patterns on IBM Cloud Platform Moe Abdula Vice President, Solution Architecture and Engineering IBM Cloud @moeabdula

Industry leaders must deliver four imperatives Create a customer focused enterprise Optimize data and leverage analytics to adapt to new behaviors, cultivate trust, and drive profitable growth Increase flexibility and streamline operations Improve operating leverage with variable cost structures that increase flexibility and reduce risk Drive innovation while managing cost Deliver new services quickly that decrease cost per transaction and drive competitive differentiation Optimize enterprise risk management Maximize return on equity, combat fraud and mitigate operational risk while achieving compliance objectives 2

Cloud computing improves efficiency, expands innovation potential and drives revenue growth

The Integrated Digital Enterprise is Hybrid Public Cloud Systems of Engagement Local Cloud Dedicated Cloud Systems of Insight Mobile, PoS, ATMs APIs/Services APIs/Services Social & Internet Data Sources IoT Sensors Dev & Customer Communities Trading Partner Communities Big Data Digital Transformation 4

A path forward

What it takes to get there New project Evaluate a blend of cloud options that best suit the project requirements Cloud First New project Replace existing app/infra BPaaS IaaS PaaS SaaS Business case Enterprise Cloud Adoption Migrate existing workloads Select Prioritize Quantify Migrate Migration Plan Workload analysis Wave 1 Wave 2 Wave 3 6

Enterprise Application Today (Example) Strategy & Insight Strategy & Governance Business Strategy & Resource Planning Business & IT Architecture Acquisition & Alliance Planning Strategic Change Governance Public Relations Market Insight Market Research Segment Analysis Customer Insight Customer Analysis & Models Customer Profile Contact / Event History Relationship Oversight & Channel Operations Brand & Segment Application Processing Document Customer Fulfilment Complaint & Exception Handling Systems Development & Operations Distribution Planning Distribution Performance Marketing Campaign Proposition Development Front office and Channel Customer Information Routing & Tracking Sales & Servicing Sales Servicing Transaction Capture Services Brand & Product Campaign Execution Ops Mgmnt Product Development Processing / Back office Distribution Support Deal Structuring (Securitization / Syndication) Trading Product Factory Product Catalogue Channel Planning & Development Correspondent Banking Customer Probity Check Product Operations Planning & Development Common Transactions Specific Statements & Cheque Card Market Info Reconciliation Correspondence Processing Processing Product Collections & Cash Transaction Merchant Accounting recovery Inventory Execution Operations Underlying Asset Procurement & Transaction Treasury back Payments Authorization office Customer Maint Helpdesk Services Billing Support Services Human Resource Fraud / AML Detection Facilities Operation & Maintenance Cash Managmnt Custody & Other specific processing Trade Finance specific Processing Clearing & Settlement Procurement Risk & Financial Risk Risk Portfolio Lending Policy & Planning Asset / Liability Policy & Planning Finance Financial Control & Consolidation Performance & Reporting Finance Policies Fixed Asset Register Accounting / GL Treasury Compliance Audit/QA/Legal Business Policies & Procedures NOTE: The above is a representative example only 7

Prioritization A cloud readiness assessment shows 35% of existing workloads can be moved Strategy & Insight Strategy & Governance Business Strategy & Resource Planning Business & IT Architecture Acquisition & Alliance Planning Strategic Change Governance Public Relations Market Insight Market Research Segment Analysis Customer Insight Customer Analysis & Models Customer Profile Contact / Event History Relationship Oversight & Channel Operations Brand & Segment Application Processing Document Customer Fulfilment Complaint & Exception Handling Systems Development & Operations Distribution Planning Distribution Performance Marketing Campaign Proposition Development Front office and Channel Customer Information Routing & Tracking Sales & Servicing Sales Servicing Transaction Capture Services Brand & Product Campaign Execution Ops Mgmnt Product Development Processing / Back office Distribution Support Deal Structuring (Securitization / Syndication) Trading Product Factory Product Catalogue Channel Planning & Development Correspondent Banking Customer Probity Check Product Operations Planning & Development Common Transactions Specific Statements & Cheque Card Market Info Reconciliation Correspondence Processing Processing Product Collections & Cash Transaction Merchant Accounting recovery Inventory Execution Operations Underlying Asset Procurement & Transaction Treasury back Payments Authorization office Customer Maint Helpdesk Services Billing Support Services Human Resource Fraud / AML Detection Facilities Operation & Maintenance Cash Managmnt Custody & Other specific processing Trade Finance specific Processing Clearing & Settlement Procurement Risk & Financial Risk Risk Portfolio Lending Policy & Planning Asset / Liability Policy & Planning Finance Financial Control & Consolidation Performance & Reporting Finance Policies Fixed Asset Register Accounting / GL Treasury Compliance Audit/QA/Legal Business Policies & Procedures NOTE: The above is a representative example only 8 More ready for cloud May be ready for cloud Not ready for cloud

Evolution of a typical enterprise application INDUSTRIALIZED CORE Existing Applications Customer Information Inventory Database Re-host application or selected components Standardize & Automate Bare metal, VMs, Containers, Integration Extend, Refactor, Integrate Cloud Foundry, Containers, Secure Connectivity & Integration Rewrite Cloud Foundry, Containers, Microservices AGILE EDGE Evolution to Cloudbased Application Cloud native Loosely-Coupled 12-factor Horizontal Scaling Eventually consistent Microservices Auto-scaling DevOps & CI Self-recovering Business Process VMs Containers Cloud Foundry On-premises Off-premises 9

Key considerations for a Cloud Solution APPLICATION AND DELIVERY PLATFORMS Driving agility and productivity for the enterprise; tested strategies to improve life cycle performance INFRASTRUCTURE PLATFORMS Delivering consumable, secure and readily available resources to enable agile execution Culture Skills Transformation BUSINESS MODELS ENABLED BY CLOUD Promoting highly competitive initiatives at the enterprise and Industry level DATA PLATFORMS Instantiating well-integrated business intelligence to manage the enterprise 10

Evolving applications to take advantage of Cloud Refactor and Compose with Microservices Tackle List Multiple architectures Multiple runtimes within the app Multiple HA/Scale approaches Multiple tool-chains Governance approaches approaches Omnichannel & New Frameworks How do you manage to an SLA? 11 Integration & API Services (APIs, Connectors, Service Bus) Cloud Enable API Enable

Consumption Patterns

Case Study: Commerce Supply Chain Corp Evolving to a Hybrid and Microservices empowered enterprise system Phase 1 : Refactor Microservices app using Bluemix Docker containers Java (Liberty) / Spring Boot Netflix OSS Stack for discovery Date management with Compose HA/DR Design Phase 2 : Extend and Scale Backend system integration Ops End to End Service 13

Case Study: International Bank Digital Platform Solution accelerating client and market innovation Parallel Projects IBM Cloud Platform Capabilities Cloud Platforms (Containers, Cloud Foundry) & Services - PaaS Cloud Native DevOps Security & Networking Governance & Service 14 Cloud Infrastructure HPaaS/VMs Automated Dev, Deploy & Ops

Case Study: Major Retailer Global expansion through hybrid integrated systems Phased Solution Brokerage (Gravitant) Automation (Urbancode) Platform (Bluemix) Local/Dedicated 15

Enterprise Cloud Adoption Use Cases 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Develop Omni-channel applications (starting with Cloud native) Run existing workloads on private cloud (on/off premises) Run existing workloads on public cloud (lift and shift) Develop Hybrid Cloud Native / Traditional Applications Use Public Cloud SaaS Application bursting / brokering Perform advanced cloud based analytics Cloud integrated application/system stacks tom run on multiple clouds Develop Cloud native cognitive/social/blockchain/ applications Leverage Cloud for Dev/Test 16

Capturing consumption patterns through Architecture http://developer.ibm.com/architecture 17

Capturing consumption patterns through Architecture Step 1: Start with Application architecture including Security and HA/DR for Microservices Applications 18

Capturing consumption patterns through Architecture 19

Capturing consumption patterns through Architecture Identity & Access Security Reference Architecture Infrastructure Security Application Security Data Security Secure Dev-Ops Security Intelligence & Monitoring Governance, Risk & Compliance Physical Security 20

Capturing consumption patterns through Architecture Step 2: Network Isolation and Security Design and Best Practices 21

SO NOC CLIENT CLIENT detects Website unavailable Sev 1 ticket raised with NOC Severity verified Runbooks applied CSM ERM WAS aas NetOps Global DevOps Other Runbooks suggests that problem resides in BMX Issue Remains; SO NOC creates Ticket with BMX Severity verified Runbooks applied Ticket with BMX Step 3: Define and end to end service management and cloud operations model BMX Suppor t Ticket at CLIENT Capturing consumption patterns through Architecture Issue remains Potential CIE raised P CIE triage Triage CIE confirmed P CIE closed; CIE opened ERM assigned IBM informed about CIE 22

Capturing consumption patterns through Architecture Dedicated Step 4: Continuous improvement through performance monitoring and tuning Local Demonstrated platform performance and scalability for 800-900 tps with sub-second response time with end-to-end security 23

Meeting the Hybrid DevOps Challenge DevOps is a philosophy, a cultural shift that merges operations with development and demands a linked toolchain of technologies to facilitate collaborative change. DevOps toolchains can include dozens of noncollaborative tools, making the task of automation a technically complex and arduous one. (Gartner) Method Bluemix Garage Method & Consulting Services Integrated Toolchain Slipstream Critical Building Blocks Modern Hybrid Ready services (IBM & 3rd party) Runtimes Hybrid Containers Data Services Mobile Microservices 24

IBM Bluemix Garage Method Combines industry best practices for IBM Design Thinking, Lean Startup, Agile Development, DevOps, and Cloud to build and deliver innovative solutions. https://www.ibm.com/devops/method Practices Processes or actions you & your team perform to achieve an outcome. Tracks A selected set of practices, tools, and toolchains to create a cloud native or cloud enabled solution Toolchain Complementary & compatible tools that when used together create a flexible solution Experts & Experiences Listen to our Experts to learn how we transformed our business 25

Hybrid DevOps Practices Continuous Insights Agile Development Providing metrics, dashboards/reports, and analytics-driven actionable insights to improve the effectiveness of their products, and the speed and efficiency of their teams. The tools used by developers and other practitioners to design and build services/applications, and to manage the work and collaboration of their teams. Continuous Delivery Continuous Availability Standardized and flexible approach to code integration, continuous test, risk evaluation, and application/service deployment with speed, confidence, and compliance. Critical operational services required for any application/service to realize industry acceptable SLAs and reduction of mean time to resolution for incidents/problems. Continuous Security End-to-end integration of security code scanning, penetration testing, and runtime events/incidents to provide secure applications/services. 26

27

Open ToolChain Allow developers to use the tools they love from IBM, Open Source, or Third Party Optimizely Track & Plan Coremetrics Google Analytics TeaLeaf Rational Team Concert Jazz SCM GitHub Issues GitHub Web IDE Autoscaling Pingdom Globalization Pipeline Logging Metrics Mobile Quality Assurance Canary Advisor IBM Alert Notification Uptime Delivery Pipeline Monitoring and Analytics Hipchat UrbanCode Deploy 28 Jenkins Active Deploy

An integrated approach to aid in your digital transformation IBM Cloud Architecture Center IBM Bluemix Garage Methodology 29 IBM Bluemix Garage

Cloud is a Journey IBM Cloud Consumption Patterns Takeaways Breaking down adoption into milestones will accelerate value Take advantage of the hybrid advantage Capitalize on your existing investments It is more than just the application Building a hybrid solution requires attention across the lifecycle Amplify Business Value It is more than just tools Architecture, method, process, people and skill transformation Seek a helping hand Prescriptive guidance, skill and expertise

Thank You