2012.02.09 - ibm smartcloud introduction for business partners - walter falk - ibm
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Public version for Business Partners of the Cloud Introduction session delivered by Walter Falk from IBM Corporate HQ during the Cloud Top Gun Education session for Cloud Selles [IBM and Partners] - 7-9 February 2012. Contact Loic Simon if you need some of the Powerpoint Slides to includeTRANSCRIPT
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
IBM SmartCloud Introduction -News from the Cloud
Walter FalkIBM Corporate [email protected] on Twitter
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Introduction & Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
IDC and other Analysts have all identified the Four Forces driving IT in the next decade…..
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
SocialUSER
Services
MobileDEVICEServices
AnalyticDATA
Services
Business PROCESSServices
On Premise
Outsourced
ERP, CRM,SCM
DesktopCollab
Internet Securityand Integration
Services
EnterpriseAnalytics
Clouds are here to stay and is already powering most of the modern IT world….
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
� Banks built the automated teller machine network to improve service and lower cost.
� Manufacturers started using robotics to improve quality and lower cost.
� Telcos automated traffic through switches to assure service and lower cost.
Cloud computing represents the “Industrialization of IT”
Similar to when:
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Cloud computing is a consumption and delivery model for IT services, inspired by consumer internet services.
5 key characteristics:
1. On-demand self-service
2. Ubiquitous network access
3. Location independent resource pooling
4. Rapid elasticity
5. Flexible pricing models
VirtualizationService
Automation
Usage
Tracking Web 3.0
End User Focused
As we start, let’s make sure we all agree on what we are talking about…
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Cloud computing is a new model for IT delivery with new terminology
Cloud computing is a model for enabling
ubiquitous, convenient, on-demand network
access to a shared pool of computing
resources (e.g., networks, servers, storage,
applications, and services) that can be
rapidly provisioned and released with
minimal management effort or service
provider interaction. This cloud model
promotes availability and is composed of
five essential characteristics, three service
models, and four deployment models.
Essential Characteristics: 1. On-demand self-service2. Broad network access3. Resource pooling4. Rapid elasticity5. Measured Service
Service Models: 1. Cloud Software as a Service (SaaS)2. Cloud Platform as a Service (PaaS)3. Cloud Infrastructure as a Service (IaaS)
Deployment Models: 1. Private Cloud2. Community Cloud3. Public Cloud4. Hybrid Cloud
Source: The NIST Definition of Cloud Computing. NIST Special Publication 800-145 (Draft). January, 2011.http://csrc.nist.gov/publications/drafts/800-145/Draft-SP-800-145_cloud-definition.pdf
Enabled by virtualization and SOA, cloud computing allows services to be rapidly available on a scalable infrastructure.
7
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Multiple deployment models are possible
EnterpriseData Center
Private Cloud
ManagedPrivate Cloud
HostedPrivate Cloud
SharedCloud
Services
PublicCloud
Services
EnterpriseData Center
IBMoperated
Enterprise
IBMhosted &operated
Enterprises Users
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Infrastructure-as-a-Service
Servers
Storage
Shared, Virtualized Dynamic Provisioning
Platform-as-a-Service
Middleware
Databases
Service Mgmt & Security
Development Tooling
Software-as-a-Service
Business Process-as-a-Service
Web 2.0 Runtime
Java Runtime
Data Center Fabric
Networking
ExamplesIBM / Industry
Financials
CollaborationIndustry Applications
CRM
ERP
HR
Industry-Specific Processes
Employee Benefits Management
Business Travel
Procurement
Four major categories of cloud computing services exist
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Cloud is a rapidly growing enterprise revenue opportunity
By 2015, a $200 B market
Enterprise Cloud Market Opportunity
$111
$199
PrivateCloud
ManagedServices
Business Solutions
2010 20152012
11
IDC Video (6:33)IDC Predictions 2012:
Competing for 2020
http://www.youtube.com/watch?v=Mfh3w-wbLTk
Access the report at:
http://events.idc-cema.com/dwn/SF_52232_top_10_preditions_2012.pdf
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Cloud computing is rapidly gaining traction with clients
Many applications of cloud computing are 2-5 years from mainstream adoption.
11/7/2011 IBM Confidential12
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Business and IT are attracted to cloud.
Rethink IT
Reinvent Business
•Rapidly deliver services
• Integrate services across cloud environments
• Increase efficiency
Tra
nsfo
rma
tion
• Initiate new revenue streams
•Faster time to market for new services
•Focus on differentiated processes
•Meet changing customer expectations
of CIOs plan to use cloud
(up from 33% 2 years ago)
of business executives believe cloud enables business transformation and leaner, faster, more agile processes
Eff
icie
ncy
55%
60%
IDC 2012 Predictions
• Over 80% of new apps will be distributed/deployed via the cloud
• Amazon Web Services will exceed $1 billion
• Private cloud “Arms Dealer” opportunity will grow over 30% and systems management will grow over 60%
14
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Source: “Hype and Reality of Cloud Computing”, Everest, March, 2010
Enterprises Face Multiple Challenges in Cloud Adoption
Sedimentation of Enterprise Apps Portfolio
Lack of Standards
Security / Business Continuity Risks
System Performance
IT Management Control
� Enterprise applications of varying vintages not all of which can be ported to the cloud
� Widely adopted standards do not existfor common cloud-related activities
� Cloud computing entails multiple security risks that are unique to the business and delivery model
� High network bandwidth requirements and billing/metering engines impose significant overheads
� Shift from monitoring trends of individual nodes/components toavailability of a business services and downtime impact on other dependent services
– Enterprise clients with legacy mainframe and Web 2.0 apps
– Resource mgmt protocols– Packaging formats– Security mechanisms
– Security policy control– Labor resource access– Compliance with security
audits
– High variation in performance of Amazon’s S3 cloud storage services; swings up to 10x
– Managing multi-tenant environments
– Managing across physical, virtual and cloud workloads
Challenge Description Examples
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
2012 will bring continued growth in all types of public, private and hybrid clouds.
16
Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/12
“Demand for private clouds is expected to double as many organizations look for ways to gain greater flexibility from their computing resources while still maintaining control of their data. Forrester predicts the private cloud market to rise from $7.8B in 2011 to more than $15B in 2020.” – IBM (link)
“Hybrid cloud computing which brings together external public cloud services and internal private cloud services, as well as the capabilities to secure, manage and govern the entire cloud spectrum will be amajor focus for 2012.” – Gartner (link)
“The global public cloud services market will more than triple in size over the next five years to reach revenues of $66 billion in 2016” – Ovum (link)
Private
Public
Hybrid
“Public cloud services will grow five times faster than overall IT enterprise spending (19 percent annually through 2015).” – Gartner (link)
IBM Video (3:45)Rethink IT. Reinvent Business
http://www.youtube.com/watch?v=_4g-UFRrVx8
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Cloud Computing has moved beyond the hype. It is a highly disruptive trend that brings new opportunities.
17
“Cloud services are interconnected with and accelerated by other disruptive technologies, including mobile devices, wireless networks, big data analytics, and social networking. As during the mainframe and PC eras, the new platform promises to radically expand the users and uses of information technology, leading to a wide and entirely new variety of intelligent industry solutions.” – IDC
(link)
Disruption
“In 2012, mobile workers and consumers will embrace tablets, mobile content, mobile video and personal cloud services at unprecedented levels. Nearly 1 in 5 professionals with three or more devices will adopt a personal cloud service for online storage, backup and synching.” – Yankee Research (link)
“What supply chain models did to manufacturing is what cloud computing is doing to in-house data centers. It is allowing people to optimize around where they have differentiated capabilities.” – Gartner (link)
Opportunity
Mobile Cloud Services
IBM Video (3:18)Future of Cloud Computing
Source: HorizonWatch: Top Technology Trends To Watch In 2012, 01/11/12
http://www.youtube.com/watch?v=bu3kIAZAKTs
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Source: “Foresights: The Software Market in Transformation 2011 and Beyond”, Forrester Research, May 2011
Stabilized Deployed, but still expanding New Plans
13%
13%
14%
14%
22%
16%
20%
22%
26%
37%
8%
10%
11%
12%
19%
Traditional Application focus in finance and operations is maturing and new investments
slowing.
New investment focus shifting.
Finance and Accounting
Order Management
Industry Spec
ERP
CRM
Industry Spec
BI/Analytics
Mobile
CRM
Collaboration
Mobile
BI/Analytics
Collaboration
CRM
Industry Spec
Top Five Application Areas in each Life Cycle Stage
Specialized industry specific applications remain active, though specific opportunity
areas tend to be small.
New applications will accelerate the transformation to Cloud Computing
“What are your firm’s plans to perform custom development in these areas?”
Base: 933 North American and European software decision-makers
Cloud will further enable
these application areas
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
The Cloud vendor landscape is an indicator of cloud growth.
19
Software-as-a-Service
Platform-as-a-Service
Infrastructure-as-a-Service
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Insights from the Field
What are clients really doing?
1. Enterprise clients are leveraging on premise / private cloud now. Many would like to “get out of the business of IT”.
2. New business clients (General Business and “Startups”) are typically starting with public clouds.
– They often move to private and hybrid as they mature.
– GB may move to private while ‘startups’will adopt public and shared private offerings.
3. Many clients are looking to become “cloudservice providers” internally and/or externally.
– “White” and “Grey” labeling are common scenarios being considered.
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Insights from the Field
What are the challenges?
1. The cloud delivery model has ripple effects into many other IT and business areas.
2. The support model is unclear.
3. Integration into an existing environment is becoming very challenging, due to many vendors and a lack of common ‘management’ platform.
4. Security is still a concern, however there are compensating controls which can be leveraged.
5. Application development processes and tools will need to be addressed to support ‘shared service creation.”
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Insights from the Field
What about workloads?
1. When and “If” to migrate a workload to cloud is important
– Enterprise workloads move into cloud delivery models with varying levels of transformation effort, return on investment, and productivity gains….
2. Workload characteristics will drive the rate and degree of standardization of IT and business services.
– For example, complex transaction and information management processes may present challenges and risks
3. Like any transformation effort, cloud must be viewed as a phased transition.
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Ready for Cloud
Many workloads are ready for cloud delivery
Sensitive Data
Complex Processes & Transactions
Regulation Sensitive
Not yet Virtualized
3rd Party SW
Highly Customized
Analytics
Collaboration
Development & Test
Workplace, Desktop & Devices
Infrastructure Storage
Infrastructure Compute
Business Processes
Industry Applications
Pre-Production Systems
Information Intensive
Isolated Workloads
Mature Workloads
Batch Processing
May not yet be ready
for migration
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Identifying opportunities
26
Finding Opportunities
• Companies with data center transformation projects
• Companies with application consolidation projects
• Strategic outsourcing clients (both current and new)
• Companies going through reorganizations
• Companies implementing business process & business model transformations
• Companies with complex supply chain operations
• Companies who want to leverage analytics or big data
• Start-ups with no legacy systems who want to invest in cloud vs. new data centers
• Enterprises with mobile strategies
Almost every IBM client wants to hear about cloud computing.
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Insights from the Field
How should you engage with clients?
1. Engaging with the business is fundamental. – Learn how to define the business value and
then map this to implementation.
2. Concern and skepticism amongst IT departments is still strong.
– They are still critical and the importance of their role should not be diminished
3. Know the competitors well. – Understand how they compete (or don’t
compete) with us.
4. Recognize IBM’s differentiators and tell the client. – Tell them why it matters to address specific
business challenges.
5. Shared services, delivered by cloud or some other method, need to be linked to a business value driver.
6. Assert A Position! IBM Point of View!
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Selling Cloud
http://w3.tap.ibm.com/medialibrary/media_view?id=107935&back=search&backTo=%2Fmedialibrary%2Fsearch%3FdisplayMediaSet%3D0%26qt%3D
sei%2Bcloud%26narrow_filter%3Dall
Selling CloudSelling CloudSelling CloudSelling Cloud
Heath Newburn
�You have to be a little creative.
�Think “Architecturally” (not technically).
�Think solution, not just products.
�What is driving or inspiring the Cloud discussion?
�Understand how to combine.. be a Cloud Orchestrator.
IBM Video (4:40)
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
Agenda
• Definitions
• Opportunity
• Market Insights
• Insights from the Field
• Engaging Selling with Clients
• IBM’s Capabilities
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
IBM provides the right hardware, software and expertiseto help enterprises fully leverage cloud.
A next-generation combination of technology, expertise and reach
of Fortune 100companies are usingIBM cloud capabilities.
IBM Cloud LabsIBM SmartCloud Centers
“IBM has one of the most comprehensive cloud portfolios.”
– Jeff Vance, Datamation
30
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
IBM cloud solutions provide high ROI opportunities.
Business Metrics Traditional IT IBM’s Cloud
Capabilities
Revenue Revenue is lost when outages occur or customer has a bad experience
Increase revenue by >$1 million in Year 1
Business Agility
Time-to-Value for Business Changes
Months Weeks
Customer Loyalty 3 – 5 second response times
< 1 second response time = + 7 customer loyalty points
Spend more on IT business innovation and less on maintenance
>70% on maintenance costs and growing
Lower by 20% to 40% (hardware, energy, software, database and mainframe) costs while absorbing growth
Increase asset utilization
Average of 15 – 25% server utilization
Utilize >65% server capabilities
31
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012
IBM has a comprehensive cloud portfolio.Cross-brand products and services delivers customer value
New Industry and Business solutions
to accelerate business impact and grow
revenues by up to 20%
Easily build and rapidly scale private or hybrid cloud
environments with unparalleled time-to-market, integration and management
Unprecedented choice, security and portability of
applications on IBM’s SmartCloud service delivery
platform
Software as a servicecoupled with deep industry insights,
business process skills and analytics
IBM SmartCloud Application Services a
secure and scalable cloud platform for deploying
enterprise applications in minutes versus weeks
IBM SmartCloud Foundation with new
technologies to deploy a cloud 35x faster with support for image management and
rapid provisioning.
Services SolutionsFoundationPrivate and Hybrid Clouds Infrastructure and platform as a Service Software and Business Process as a Service
Platform as a Service Technologies
Infrastructure as a Service Technologies
InfrastructurePlatform
Usage and Accounting
Availability and Performance
Managementand Administration
Security and Compliance
Application Lifecycle
Application Resources
Application Environments
Application Management
Integration
Platform as a Service Technologies
Infrastructure as a Service Technologies
InfrastructurePlatform
Usage and Accounting
Availability and Performance
Managementand Administration
Security and Compliance
Application Lifecycle
Application Resources
Application Environments
Application Management
Integration
32
© 2012 IBM Corporation
Rethink IT. Reinvent Business.
02/01/2012© 2011 IBM Corporation33