cloud computing why, what, how

IBM Nederland B.V.

© 2010 IBM Nederland B.V.

Cloud ComputingWhy, what, how?

Ronald Zoutendijk, [email protected] Arts, [email protected]

IBM Cloud Computing

© 2010 IBM Nederland B.V.19 februari 2010

Complexiteit1 Why Cloud Computing?Why Cloud Computing?

IBM Cloud Computing


Agenda

Why Cloud Computing?

What is Cloud Computing? (What isn’t?)

How should we go about it?

IBM Cloud Portfolio

Closing

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© 2010 IBM Nederland B.V.4 19 februari 2010

In our definition cloud computing the IT cloud is the actual delivery model and methodology. It has specific attributes

Cloud is a user experience and a business modelCloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model

Cloud is an infrastructure management and services delivery methodologyCloud computing is a way of managing large numbers of highly virtualized resources such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling

Monitor & ManageServices & Resources

CloudAdministrator

DatacenterInfrastructure

Service Catalog,ComponentLibrary

Service Consumers

Component Vendors/Software Publishers

Publish & UpdateComponents,Service Templates

IT Cloud

AccessServices

What is Cloud ComputingCloud is a user experience and a business modelCloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model

Cloud is an infrastructure management and services delivery methodologyCloud computing is a way of managing large numbers of highly virtualized resources such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling

2 What is Cloud Computing?What is Cloud Computing?

IBM Cloud Computing


Common Attribute DetailsStandardized offerings Uniform offerings readily available from a services catalogue on

a metered basis

Elastic scaling Resources scale up and down by large factors as the demand changes

Rapid provisioning IT and network capacity and capabilities are – ideally automatically – rapidly provisioned using Internet standards without transferring ownership of resources

Advanced virtualization IT resources from servers to storage, network and applications are pooled and virtualized to provide an implementation independent, efficient infrastructure

Flexible pricing Utility pricing, variable payments, pay-by-consumption and subscription models make pricing of IT services more flexible

These are the attributes explained in more detail 2 What is Cloud Computing?What is Cloud Computing?

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Lets look at a simple example of cloud as a delivery model for standard services

THE PIZZA CLOUD PIZZA AS A SERVICEFlexible priced:You pay per pizza

ordered

Elastic scaling:You order 1, 2, 3

or more

Rapid prov.:Pizza (service) in 3 minutes ready

Standard off.:Only 4 flavour of

pizza

level:Only 1 level of

service


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Infrastructure-as-a-Service

Platform-as-a-Service

Application-as-a-Service

Servers Networking Storage

Middleware

Collaboration

Financials

CRM/ERP/HR

Industry Applications

Data Center Fabric

Shared virtualized, dynamic provisioning

Database

Web 2.0 ApplicationRuntime

JavaRuntime

DevelopmentTooling

Examples

Business Process-as-a-Service

Employee Benefits Mgmt.

Industry-specific Processes

Procurement

Business Travel

The service delivered from the delivery model are called cloud services which are divided here in four layers.


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Because of the four cloud services layers it is difficult to define where certain IT parts fit as they seem to move from the service side into the cloud delivery model

Cloud Infrastructure

Monitor & ManageServices & Resources

CloudAdministrator

Service Catalog,ComponentLibrary

Servers

Networking

Storage

Data Center Fabric

Middleware

Database

Web 2.0 Application

Runtime

JavaRuntime

DevelopmentTooling

Collaboration

Financials

CRM/ERP/HR

Industry Applications

THE CLOUD ? CLOUD SERVICE ?


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Enterprise

Service Consumers

Service Integration Service Integration

Traditional Enterprise IT

Private Cloud

Services Services

Service Integration

PublicClouds

Services

Over time, IT workloads will move to Cloud delivery models as applicable for the client.

●Mission Critical●Packaged Apps●High Compliancy

●Test Systems●Developer Systems●Storage Cloud

●Compute as a Service●Storage as a Service●Software as a Service

Examples:

IBM sees different delivery models that will be used concurrently for the coming years to support all IT services depending on workload characteristics


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Single virtual appliance workloads Web application servers Test and Pre-production systems Mature packaged offerings, like e-mail and collaboration Software development environments Batch processing jobs with limited security requirements Isolated workloads where latency between components is not an issue Storage Solutions/Storage as a Service Backup Solutions/Backup & Restore as a Service Some data intensive workloads

Examples of workloads that we see moving to a cloud computing delivery or consumption model


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Workloads which depend on sensitive data normally restricted to the Enterprise Employee Information - Most companies are not ready to move their LDAP server into

a public cloud because of the sensitivity of the data Health Care Records - May not be ready to move until the security of the cloud provider

is well established Workloads composed of multiple, co-dependent services

High throughput online transaction processing Workloads requiring a high level of auditability, accountability

Workloads subject to Sarbanes-Oxley, for example Workloads based on 3rd party software which does not have a virtualization or

cloud aware licensing strategy Workloads requiring detailed chargeback or utilization measurement as required for

capacity planning or departmental level billing Workloads requiring customization (e.g. customized SaaS)

Examples of workloads which may not be ready for cloud delivery today?


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Overcoming inefficiencies

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Agenda




IBM Cloud Portfolio

Closing

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When adopting cloud computing it is of great importance to use a structured approach to ensure outcomes of reduced costs, improved service and managed risks

3 How should we go about it?How should we go about it?

Approach*:

1. Create strategic view and define the benefits, which type of cloud services are most benefitial ?

2. Assess readiness of workloads to be migrated

3. Assess organisational, process, tooling and governance impact and start an adoption plan

4. Select implementation projects based on strategy and implement the selected workloads as IT services.

*For the first three steps IBM has consulting services available

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IBM has introduced 3 choices to deploy workloads based on cloud computing

Smart Business Services – cloud services delivered.1. Standardized services on the IBM cloud.

2. Private cloud services, behind your firewall, built and/or run by IBM.

Smart Business Systems – purpose-built infrastructure.3. Integrated Service Delivery Platform

Analytics Collaboration Development and Test

Desktop and Devices

InfrastructureStorage

InfrastructureCompute

Business Services


IBM Cloud Computing


New deployment choices aligned to different workloads

Smart Business on the IBM Cloud

Smart Business Cloud

Smart Business Systems

Standardized services on the IBM Cloud

Pre-integrated, workload

optimized systems

Private cloud services, behind your firewall,

built and/or managed by IBM

IBM Lotus Liv e

IBM CloudBurst

IBM Smart Business Test

Cloud

IBM Smart Business Desktop

Cloud

IBM Smart Business

Storage Cloud

Analytics Collaboration Development and Test

Desktop and Devices

InfrastructureStorage

IBM Smart Analy tics Sy stem

IBM Smart Business f or

SMB (backed by the IBM cloud)

InfrastructureCompute

IBM Compute on

Demand

IBM Information Protection Serv ices

Business Services

IBM BPM Blueworks (Design

tools)

IBM Smart Business End

User Support-IBM Serv ice Assist

IBM Smart Business Desktop on the IBM Cloud

IBM Smart Analy tics Cloud

IBM LotusLive iNotes

IBM Smart Business Expense

Reporting on the IBM Cloud

IBM Information Archiv e

IBM Smart Business Dev & Test on the IBM

Cloud (Beta)

Lotus Foundation


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Transformation Roadmap – private cloud

Simplified

Consolidate

● Reduce infrastructure complexity

● Reduce staffing requirements

● Improve business resilience (manage fewer things better)

● Improve operational costs/reduce TCO

Shared

Virtualize

● Remove physical resource boundaries

● Increased hardware utilization

● Allocate less than physical boundary

● Reduce hardware costs

● Simplify deployments Dynamic

Automate

● Standardized Services

● Dramatically reduce deployment cycles

● Granular service metering and billing

● Massively scalable● Autonomic● Flexible delivery

enables new processes and services

● Self-Service● Elastic● Automatic service

metering and billing● Industrialized

service delivery● Economies of scale

Cloud

Optimize


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© 2010 IBM Nederland B.V.18

A typical workload that is moving to private cloud delivery today is test workloads because of the challenges faced today

30% to 50% of all Servers within a typical IT environment are dedicated to Test

Most Test Servers run at less than 10% utilization, if they are running at all

IT staff report a top challenge is finding available resources to perform tests in order to move new applications into production

30% of all defects are caused by wrongly configured test environments

Testing backlog is often very long and single largest factor in the delay new application deployments

Test environments are seen as expensive and providing little real business value.

* “Industry Developments and Models – Global Testing Services: Coming of Age,” IDC, 2008 and IBM Internal Reports


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How can cloud computing characteristics improve the test environment?

Common attributes Characteristics Benefits

Advanced virtualization

Test resources are pooled and virtualized.

Providing efficient implementation-independent infrastructure.

Rapid provisioningTest resources are provisioned on demand.

Reducing test setup and execution time and eliminating errors

Service catalog ordering

Test environments are readily available.

Enabling visibility, control and automation.

Elastic scalingTest environments scale down and up by large factors as the needchanges.

Optimizing resources utilization.

Flexible pricingTest resources are priced on supported topology and project phases.

Offering pricing schemes options for tests and user acceptance.

Metering and billingTest resources used and reserved are charge-backed to LOBs.

Prioritizing innovative projects.


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IBM Implementation Services for cloud computing – design and implementation for test environments

Customer Benefits:

Reduce IT labor cost by 50% + - reduce labor for configuration, operations, management and monitoring of the test environment

75% + Capital utlization improvement; Significant license cost reduction

Reduce Test Provisioning cycle times from weeks to minutes

Improve Quality- eliminate 30% + of all defects that come from faulty configurations.

Features:

• Assessment of current test environment to project savings and ROI

• Strategy, planning, design and implementation services of the solution

• Create self-service portal with catalog of services

• Integrated platform combining service request management, provisioning / de-provisioning and change and configuration management

Test Environments In the Cloud


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IBM CloudBurst: An Integrated Platform Built for GrowthData Center Optimization Through Modularity

Modular, Self-contained, Scalable Work load Delivery Platform

WORKLOAD A

Modular, Self-contained, Scalable Work load Delivery Platform

WORKLOAD B

Legacy Environment :NON – IBM SolutionsRequiring workload connectivity

WORKLOAD C

Service Management

Service Management

Service Management

Architectural and process level integration that delivers business aligned Visibility, Control and Automation of all Data Center Elements

End to End Service Management

IBM Cloud Computing


An example: IBM Technology Adoption Program uses cloud to help reduce expenses and drive innovation.

Business challenge:Reduce operational expenses and

capital investment in order to fund innovation

Solution:Develop an internal “Collaboration

Innovation” cloud using IBM technology

Benefits: Dramatic labor (-80.7 percent) and

capital depreciation (-91.6 percent) savings

One of IBM’s most successful solutions with over 80,000 participants

Note: 5-year depreciation period with 5 percent discount rate

Annual cost of operation(- 79.0 percent)

$3.4M annual expense

Strategicchange capacity

Liberated funding for

transformation investment or direct saving

Depreciation (and amortization)

New development

Depreciation( - 91.6 percent)

Labor cost ( - 80.7 percent)

Deployment (1-time)

New development (for business-

enabling capabilities)

Software and other costs

Without cloud With cloud$1.03M annual expense

Software and other costs

Labor costs (operations

and maintenance)


IBM Cloud Computing


Year 1 Saving by Category

Sys. Admin. Cost42%Provisioning

Cost22%

Testing Productivity

25%

Hardware 10%

Software 1%

6.82 $302,958.33$935,880.13

308.91%102.97%

Payback Period (months)

Net Present Value (NPV) Total Initial Investment for Test Cloud

Estimated ROI over 3 yearsEstimated avg. annual ROI

ROI analysis example- medium # of servers

= Service Management driven savings

Cumulative Cost Comparison -- With and without Cloud

$0.00$500,000.00

$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00$3,500,000.00$4,000,000.00$4,500,000.00$5,000,000.00

TransformationPoint

Year-1 Year-2 Year-3

Cumu

lative

Expe

nses

Current IT Model Accumulated Costs Test Cloud Model Accumulated Costs

ROI projections from IBM Research Study 2009


IBM Cloud Computing


Service Management- the key to unlocking cloud savings

A service management system provides the visibility, control and automation needed for efficient cloud delivery in both public and private implementations:

● Simplify user interaction with IT● User friendly self-service interface accelerates time to

value● Service catalog enables standards which drive

consistent service delivery

● Provisioning enables policies to lower cost● Automated provisioning and de-provisioning speeds

service delivery ● Provisioning policies allow release and reuse of assets

● Increase system administrator productivity● Move from management silos to a service

management system

On average, 81% * of Cloud payback is driven by labor savings enabled by service management

*Average of the three studies referenced in this presentation which are based on IBM Research study 2009


IBM Cloud Computing


Agenda




IBM Cloud Portfolio

Closing

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IBM Cloud Computing


CLOUD ENABLING PRODUCTS & ASSETSService Management

Service Availability

Service Security

Virtual Resource

Pools

SystemsVirtualization Management

IBM Cloud Portfolio Strategy

Service Automation Manager

Virtualized Servers and Storage

Service Assets

Base IBM Products and Technologies

CloudConsulting

CloudImplementation

Enable our customers to leverage cloud computing through designing, building, and delivering

…bringing clarity and focus.

Cloud Delivered

4 IBM Cloud PortfolioIBM Cloud Portfolio

IBM Cloud Computing


Security ManagementSecuring virtual and physical networksEncrypt data outside company firewall

Providing access across various security domains

Service Delivery & ManagementAutomated delivery of Cloud services

Self-Service provisioning of virtual resourcesMonitoring and managing virtual resources

Optimizing usage of virtual resources

Cloud Component Offerings by IBM

Application Server Provisioning Dispensing virtual images

Storage ManagementData recovery for Cloud storage

Creating Cloud storage environment

Servers, StorageCreating virtualized infrastructure

IBM Systems and TechnologyIBM System Storage

Collaborative Application Lifecycle MgtQuality Management

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