cloud computing in practice

© IBM Corporation 1

Presented by:

It’s all about CloudCloud Computing in Practice

Andrzej OsmakCloud Delivery Architect, IBM

© IBM Corporation 2© IBM Corporation 2

Frontline decision making

New mobile apps are consolidating decision making at the fingertips of people who need to act

Disruptors are reinventing business processes and leading their industries with digital transformations

Real time insight driven processes

Insight from nontraditionaldata sources is being infused in business processes to create new business moments

Digital Innovation

New innovations are composed leveraging digital services from a broad ecosystem


Will you disrupt or be disrupted by your industry?

Bringing insight directly to their maintenance engineers via

mobile

Using weather data to predict real time inventory needs

Sourcing new innovation from mobile developer

communities

© IBM Corporation 44© IBM Corporation

Digital transformations require hybrid cloud

Everything you will need won’t be in one place in the digital world. Data and services from multiple sources and

environments Mobile and other models of engagement driven through

clouds Innovation fueled by communities of developers and

experts


Hybrid cloud has some fundamental elements

Hybrid cloud:connection of one or more clouds to traditional systems and/or connection of one or more clouds to other cloudsCloud Business Apps

Quickly address front and back office needs with access to a broad set of software-as-a-service offerings

Digital Innovation PlatformOpen standards-based cloud platform for building, running, and managing cloud and mobile apps

World Class Cloud InfrastructureMaximize and extend existing IT to cloud andconnect to enterprise grade cloud infrastructure worldwide


The new hybrid cloud transforms roles across the organization

IT leaders advance change

Developers are empowered

Business leaders innovate


IT needs a mix of deployment models and enterprise grade world class infrastructure

World Class Cloud Infrastructure

40 global cloud centersSecure integration to on-premises systems

Open, secure, and scalable Global cloud footprint Secure, high-speed network Expert services and tools


Developers need a digital innovation platform to rapidly bring new products and services to market

Digital Innovation Platform

Extend existing IT investments into cloud business and delivery models

Enable seamless delivery with full DevOps and app lifecycle management

Use any combination of public, dedicated and local development and deployment

Bluemix provides expertise and services across market leading categories:

SecurityDatabaseCloud Integration

Business AnalyticsWeb and applicationInternet of Things

DevOpsPortabilityMobile


Leaders need access to cloud business apps in their hybrid cloud to drive competitive advantage

Software-as-a-Service (SaaS)

Accelerate business innovation Engage and collaborate Connect business processes fueled by powerful

analytics

100+ IBM SaaS offerings aligned to business and IT

Watson Analytics

IBM Verse Kenexa Talent Suite


But moving to a hybrid cloud introduces challenges

Business processes and transactions span multiple environments creating new risk for security, visibility and control at each touch point

Maximizing flexibility for the future to use any data, apps, services, and mobile devices as needs change going forward

Fast, secure access to only the datayour app needs identifying, integrating, and analyzing the right data from the vast types and volumes available


Hybrid Cloud Roadmap

Prepare for implementation

Develop cloud business case

Determine cloud Deploymentoptions

Identify and prioritize workloads

Create cloud strategy, architecture and plans

1 2 3 4 5

Goals: accelerated migration, quick wins and mitigated risks


Cloud strategy comprises four elements

BUSINESS MODELS ENABLED BY CLOUD

APPLICATION AND DELIVERY PLATFORMS

DATA PLATFORMSINFRASTRUCTURE

PLATFORMS

Enterprise Cloud

Strategy

1 2 3 4 5

Strategy


Cloud Adoption Patterns

Ent

erpr

ise

Clo

ud A

dopt

ion

Workload Migration

Cloud First

MigrateQuantifyPrioritizeSelect

Workload analysis Wave 1 Wave 2 Wave 3

Migration Plan

Business case

New project

Replace existing app / infra

New project

Evaluate a blend of cloud options that best suit the project

requirements

BPaaS SaaS

PaaS IaaS

1 2 3 4 5

Prioritization


Example: Typical Banking System Components

Strategy & Insight

Strategy & Governance

Business Strategy & Resource Planning

Business & IT Architecture

Acquisition & Alliance Planning

Strategic Change

Governance

Public Relations

Market InsightMarket

Research

Segment Analysis

Customer Insight

Customer Analysis &

Models

Customer Profile

Contact / Event History

Risk & Financial

Management

RiskRisk Portfolio Management

Lending Policy & Planning

Asset / Liability Policy & Planning

Compliance

Audit/QA/Legal

Business Policies &

Procedures

Finance

Financial Control &

Consolidation

Performance Management &

Reporting

Finance Policies

Fixed Asset Register

Accounting / GL

Treasury

Front office and Channel ManagementManagement

Relationship Oversight & Management

Channel Operations

Distribution Planning

Distribution Performance Management

Sales & Servicing

Customer Information

Management

Routing & Tracking

Sales

Servicing

Transaction Capture Services

Distribution Support

Deal Structuring (Securitization /

Syndication)

Trading

Correspondent Banking

Customer Probity Check

Brand & Product Management

Marketing

Brand & Segment

Management Proposition Development

Campaign Management

Campaign Execution

Product Factory

Product Development

Channel Planning & Development

Product Catalogue

Product Operations Planning &

Development

Processing / Back office

CommonApplication Processing

Statements & Correspondence

Market Info

Document Management

ProductAccounting

Ops Mgmnt

Customer Fulf ilment

Underlying Asset Procurement & Management

Complaint & Exception Handling

Customer Maint

Collections & recovery

Transactions

Transaction Execution

Reconciliation

Transaction Authorization

Cheque Processing

Payments

Cash Inventory

Billing Fraud / AML Detection

SpecificCard

ProcessingCustody &

Other specif ic processingMerchant

Operations Trade Finance specif ic

ProcessingTreasury

back off ice

Clearing & Settlement

Cash Managmnt

Support Services

SystemsDevelopment &

Operations

Helpdesk Services

Human Resource

Management

Facilities Operation & Maintenance

Procurement

... cloud readiness assessment shows 35% of existing workloads can be moved to cloud

Campaign Management

Cloudable = yes, 100%

Cost savings 30% to 80%

1 2 3 4 5

Prioritization


Public vs Private vs Hybrid

1 2 3 4 5

Value drivers:• Customization• Efficiency• Availability• Resiliency• Security and Privacy

Value drivers:• Standardization• Capital preservation• Flexibility• Time to deploy

Value drivers:• Best of Both Worlds• Data security• Governance• Compliance and

budgetary challenges

Deployment options

Private Cloud Hybrid Cloud Off-premises Cloud


Example: IT Cost reduction for Global Trade Provider

1 2 3 4 5

Business Case

Source: Case Study on Cloud Implementation for a Global Trade Provider, http://www.slideshare.net/msitpro/tradefacilitate-cs-unlocked

Upfront Capital Expenses No Longer Incurred

$5341 per

server (CAPX)

$107 per month

(OPEX)

Traditional Funding

Cloud Funding

High capital expense replaced by modest operational expense, which is easier to budget for and manage

Rapid Scalability at less cost

97%Reduction in the deployment time

Growing customer

base

• Purchasing and managing additional servers replaced by addition of web roles

• Saved One-third of the cost of adding an additional server every 3 years

Reduced IT spending on basic infrastructure leaves more time & budget to focus on strategic initiatives & growing customer needs


Example: Private Cloud for Banking Client

Current status

Year 1 Year 2 Year 3 Year 4 Year 50%

25%

50%

75%

100%

0%

25%

50%

75%

100%

0%30%

80% 80% 80% 80%

OSI Opex profile

Capex

Opex

Opex im-provementC

ap

ex

/ O

pe

x%

A. Impact on spend

B. Impact on Opex profile

Based on agreed workload transition plan

Source: The above is based on actual business case developed for an IBM banking client and is used here as a representative example. Actual results for other banks will vary

Year 1 Year 2 Year 3 Year 4 Year 5 -

5

10

15

20

0%

25%

50%

75%

100%

13%47% 49% 48% 47%

Cost comparison chart (including 10% YoY increase in OSI images)

Traditional computing

Private cloud costs

% reductionCo

st

in U

SD

mn

~50% savings from year 2 can be used for strategic initiatives

Mission crit-ical; 1%

Business important;

16%

De-vel-op-

ment &

Test; 21%

Utility; 61%

Bank’s total Operating System Image (OSI) requirements

1 2 3 4 5

Business Case


Example: Cloud-based Analytics

1 2 3 4 5

Business Case

Effectiveness – 20% increase in conversion rates for marketing campaigns expected

Customer satisfaction – Improves satisfaction by providing customers with a more personalized and relevant experience

Efficiency – Increases efficiency of marketing operations by significantly shortening the marketing campaign cycle

CHALLENGEWhen this bank saw deeper customer engagement as essential to its growth and profitability, it knew that having solid, data-driven insights on customer behavior and preferences was the foundation. The real key, it recognized, was to infuse these insights into customer touch points such as outbound campaigns and inbound calls.

This bank in Japan operates nearly 200 branches in Japan and other areas in Asia

SOLUTIONThe bank is using cloud-based behavioral modeling to find service propensity patterns across its customer segments. And it’s incorporating those insights directly into its campaign management and inbound customer interactions to deliver a more personalized experience across all channels.


Example: Cloud-based Storage

1 2 3 4 5

What if you could put your cable subscribers’ DVR storage in the cloud?

DVR in the cloud is going to change the face of media, entertainment and advertising. Not only is it more convenient for subscribers, it delivers a better service. The cable company is going to know so much more about its subscribers, it will be able to virtually tailor the individual experience for each subscriber.

Real Business Results Reduced the costs of deploying and maintaining

set-top boxes by 50 percent, saving more than USD 6 million annually

Generated more than USD 8 million in new revenue from enhanced DVR services

Increased advertising reach by 12 percent

A cloud-based DVR service transforms how a cable company operates, gives unprecedented insights into viewing habits, and offers consumers greater control over their television experience.

A cable television company in North America

Cloud business case


Security, Privacy and Compliance

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As companies start planning to adopt cloud, key questions come up about their data & applications:

Where is our data stored? What about data sovereignty?

How do we protect our customers’ privacy?

How does cloud affect our regulatory compliance?

Is a business continuity plan available for cloud?

Risk Management

Plan

Cloud SLA

Cloud requirements

Monitoring & Auditing

Risk & Security Management

processes

Physical & Logical controls implementation

Audits & reports

Critical elements to address security, privacy and compliance concerns

SE

RV

ICE

C

ON

SU

ME

RC

LO

UD

SE

RV

ICE

P

RO

VID

ER

Implementation

IT Strategy


New Operating Model

An Operating Model is a framework for formulating an operations strategy

Market shifts necessitate most industries to adopt CAMSS

To succeed organizations have to assess the impact and determine actions

ROADMAP FOR CHANGE

Target Operating Model

BUSINESS GOALS AND STRATEGY

TOM

CustomerExperience

PerformanceMetrics

Technology

Skills & Capabilities

Sourcing & Alliances

Assets &Locations

Organization &Governance

Processes

1 2 3 4 5

Implementation

CULTURE

Additional Resources:

Cloud Maturity Tool

http://benchmark.cloudcurve.eiu.com/

Read the research for more insights

http://www.ibm.com/cloud-computing/us/en/cloudmaturity.html








Summary Understand Digital Transformations

Be Disruptor rather than be Disrupted

Prepare and Execute Hybrid Cloud Roadmap


Thank You

Contact:

Andrzej OsmakIBM Cloud Delivery [email protected]/in/andrzejosmakTwitter: @aosmak

mailto:[email protected]

http://pl.linkedin.com/in/andrzejosmak/

http://pl.linkedin.com/in/andrzejosmak/

https://twitter.com/aosmak

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