[cloud summit 2010] cezar taurion - ibm

© 2010 IBM Corporation1 IM AR

Cezar Taurion, Gerente de Novas Tecnologias, IBM Brasil

Agosto, 2010

Cloud Computing 2.0Da curiosidade para o mundo real

Cezar TaurionGerente de Novas Tecnologias Grupo de Estudos e Pesquisas em Cloud Computing

© 2010 IBM Corporation2 IM ARSource: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”

IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

Cloud Computing – Widespread Awareness


What is Cloud computing?

Changes my revenue model and helps me get new business

Use what I need without having to deal with IT department

A way to quickly get the systems and configuration I want to test and build my

applications

Cloud computing helps me reduce my capital costs by not having to buy and maintain complex systems inhouse.

A new way of using resources that reduces the number of systems in my portfolio and virtualizes my infrastructure

What is the cloud? Current pain points

CxO / LoBNeed to drive business results and transformation in a

rapidly changing environment.

CIO / IT Manager

Need to reduce costs and improve service delivery

DevelopersLimited funds and tough to get spending approval on

development tools

End-UserNeed to achieving work objectives with limited resources

due to cost-cutting

Cloud Services Provider/ISVDifficult to make my customers switch from existing tools

due to high transition costs

A new computing model where IT infrastructure, tools and capabilities are delivered as a scalable service to customers using internet technologies.

It also depends on who you ask…

Database & Storage

Applications & platform

Scalability

User 1

User 2

User 3

Internettechnologies


Cloud computing holds the promise of reducing IT operating costs… which means, clients can do more with less

Reduced Cost

….leverages virtualization, standardization and automation to free up operational budget for new investment

VIRTUALIZATION +STANDARDIZATION AUTOMATION+

NoneSelf service

Fixed cost modelMetering/Billing

WeeksTest Provisioning

Payback period for new services

Release Management

Change Management

Server/Storage Utilization

Years

Weeks

Months

10-20%

Unlimited

Granular

Minutes

Months

Minutes

Days/Hours

70-90%

Legacy environments Cloud enabled enterprise

Cloud is a synergistic fusion which accelerates business value across a

wide variety of domains.

Capability From To

=


Infrastructure as a Service

Servers Networking StorageData Center

Fabric

Shared virtualized, dynamic provisioning

Beyond infra-as-a-service: The layers of IT-as-a -Service



Platform as a Service

High Volume

Transactions

Servers Networking Storage

Middleware

Data Center Fabric


Database

Web 2.0 ApplicationRuntime

JavaRuntime

DevelopmentTooling




Platform as a Service

High Volume

Transactions

Software as a Service

Servers Networking Storage

Middleware

Collaboration

Business Processes

CRM/ERP/HR

Industry Applications

Data Center Fabric


Database

Web 2.0 ApplicationRuntime

JavaRuntime

DevelopmentTooling



Cloud Deployment Models


A cloud computing primer – your 60 second guide

Start

Finish

A new model of IT delivery and consumption… …inspired by internet

services in the consumer space

Key ingredients:

•elasticity

•PAYG

•on-demand self-service

Analogies - electricity generation

and The

Model-T Ford

Evolutionary, not revolutionary – time sharing, hosting, ASP

Variants – public, private, hybrid, community,

G-cloud add to confusion

Get toknowtheCloudstack

Near-term adoption overstated, long-term impact underestimated –all bets are off !

Source: Market Insights

A “confluence of technologies” –virtualization, SOA, multi-tennancy

?


• #1 reason to move to a public cloud is lower total cost of ownership

• Top reasons for moving to a private cloud include cost/resource efficiencies, as well as enhancing speed and flexibility

• Security concerns are the top barrier to adoption of both public and private clouds

• Experience managing large outsourcing engagements gives IBM the tools to manage customers’ top cloud concerns

• Three distinctive end-user cloud buying patterns are emerging: exploratory, solution-focused and transformational

• There are reports that public clouds are being adopted faster than originally forecast

• In terms of market opportunity, Financial Services, Manufacturing, High Tech, Government and Retail are the top five industries for cloud

Cost Take-out is Key Driver

Security isTop Concern

Adoption Patterns are Emerging

Industries under the Greatest Pressure

Lead Interest in Cloud

What the Market is Telling Us � There is universal interest in cloud computing across all industries and geographies


Cost savings and faster time to value are the leading reasons why companies consider cloud

Respondents could rate multiple drivers items

50%

72%

77%

Improve reliability

Faster time to value

Reduce costs

Improve system availability

Pay only for what we use Hardware savings

Software licenses savings Lower labor and IT

support costs Lower outside maintenance costs

Take advantage of latest functionality

Simplify updating/upgrading Speed deployment

Scale IT resources to meet needs

•

•

•

•

Improve system reliability

•

•

•

To what degree would each of these factors induce you to acquire public cloud services?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090


Top Challenges in Moving to a Public or Private Cloud

Source: “Cloud Computing Attitudes”, IDC, April, 2010

Security concerns are the

most important fear among

IT decision-makers for both

public and private cloud,

especially public cloud.

Other factors, such as

- lack of technology

maturity

- lack of personnel skill

sets

- organizational

challenges and

- difficulty integrating with

existing infrastructure

will likely decrease over

time as cloud success

stories circulate.

Percent of Respondents

© 2010 IBM Corporation13 IM ARSource: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”

IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

Drivers vs. Barriers


Cloud Adoption and Budgeting

Source: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”IDC Presentation, Cloud Leadership Forum, June 13-15, 2010


We have identified the workloads that offer the most favorable entry points for each of the cloud delivery models

Top private workloads

Database- and application-oriented

workloads emerge as most appropriate

� Data mining, text mining, or other analytics

� Security

� Data warehouses or data marts

� Business continuity and disaster recovery

� Test environment infrastructure

� Long-term data archiving/preservation

� Transactional databases

� Industry-specific applications

� ERP applications

Top public workloads

Infrastructure workloads

emerge as most appropriate

� Audio/video/Web conferencing

� Service help desk

� Infrastructure for training and demonstration

� WAN capacity

� VoIP infrastructure

� Desktop

� Test environment infrastructure

� Storage

� Data center network capacity

� Server

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090


Email is set to see a 3x increase in cloud environments next year

Source: “CIO Survey – Moving to Cloud”, Morgan Stanley, May, 2010

Cloud Workload Attractiveness


Software-as-a-Service (SaaS) is predicted to reach mainstream adoption in 2010, with Infrastructure-as-a-Service (IaaS) following after 2012

• However, IT leaders predict that IaaS will not account for the majority of infrastructure until at least 2015


IBM’s Offering Approach


IBM Cloud Offerings


EnterpriseEnterpriseData Center

Private Cloud

EnterpriseData Center

IBM operated

Managed Private Cloud

IBM owned and operated

IBM owned and operated

Hosted Private Cloud

Delivery Model 1Delivery Model 1 Delivery Model 2Delivery Model 2 Delivery Model 3Delivery Model 3

Ownership /Location

Operator Enterprise

Enterprise

Time & materials, fixed price, etc.

Internal enterprise network

Single enterprise

Dedicated (single tenant)

IBM

IBM

Time & materials, fixed price, pay-as-you-go

(There are a set of assets that could be flexibly allocated on a dedicated basis to an multiple enterprise depending on demand)

Public internet

Any enterprise/ user

Multi-tenant2Asset use

Access

Consumer

Revenue model Pay-as-you-go

Access through VPN, public internet

Multiple enterprises

Mixed1

User A

User B

User C

User D

User E

Public Cloud

Services

Enterprise A

Enterprise B

Enterprise C

Shared Cloud

Services

Cloud scope

IBM Smart Business Services - Standardized Services on

the IBM Cloud

IBM Smart Business Services – Private Cloud Services, behind your firewall

Delivery Model 4Delivery Model 4 Delivery Model 5Delivery Model 5

The IBM Cloud Delivery Models

© 2010 IBM Corporation

E-MailColaboração

LotusLive é um portfolio de serviços

IBM LotusLive MeetingsIntegração de Web, audio e video conferência

IBM LotusLive EventsAuxilia a criação, hospedagem e gerenciamento de reuniões via OnLine

IBM LotusLive Connectionsprovê serviços que permitem a integração de suas redes de negocios com compartilhamento de arquivos, mensagens instantäneas e redes sociais

IBM LotusLive Notes provê serviços de hospedagem de Notes e Domino

IBM LotusLive Engage provê serviços de compartilhamento de arquivos, mensagens instantäneas, redes sociais e gestão de atividades

Web conferencing

www.LotusLive.com

IBM LotusLive iNotes®

provê serviços de E-Mail com segurança, funcionalidades e flexibilidade de acesso

© 2010 IBM Corporation

Features Benefits

IBM CloudBurst delivers …

Self-service

Portal

Self-service

Portal Improve serviceService CatalogService Catalog

Automation SoftwareAutomation Software

Pre-packed Automation

Templates

Pre-packed Automation

Templates

Built-in VirtualizationBuilt-in Virtualization

Single Delivery,

Installation & Price

Single Delivery,

Installation & Price

Implementation

Services

Implementation

Services

Single SupportSingle Support

Reduce cost

Easy

Process


� Users can request the services they need, when they need them, for the time they need them

� Eliminates manual processes for requesting resources

Self-Service Portal

…Improves customer satisfaction by accelerating service delivery


Why Private Test Cloud ?

“Strategy”, planning, design, build and implementation of the solution

�Create self-service portal with catalog of services, calendaring, education and optional chargeback

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

Test Environments

BenefitsKey Features

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

�75% + Capital utilization 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.


Cloud computing is changing the application development landscape by giving the developers instant access to computing resources (hardware & software)

Budgetapproval

Developmentteam

CIO

Capital investment to buy hardware and software

Computing resources

Develop application

Support infrastructure and pay for maintenances and license

Customer paysfixed amount

Developmentteam

Rent resources you will need from cloud

Provision instances required

Develop application

Host application on cloud or on premise

Customer paysfor what they use

Existing Application Development Future of Application Development

Due to high set-up and infrastructure costs, approval from management is required in most cases

The development team will assess in-house resources to determine additional hardware and/or software to be purchased.

Development team uses resources to build application. These resources sit idle when not in use

Application is hosted in house and development and maintenance, upgrades, and license costs are passed on customer regardless of usage

Since there are no capital expense, developers may not need approval from higher levels

The development team can provision computing resources from the cloud and change that as needed

Development team only pays for the resources that is actually uses

Once application is developed, the computing resources are released and application is hosted on the cloud. Customer only pays for what they use


Cloud Computing: Threat or opportunity for the CIO?

CIOs are worried that Cloud will bring about disruptive change to IT Operations

� Line-of-business units going to “public cloud providers” for IT instead

� Disintermediation of the traditional IT team

� As some have said, it is “Client / Server all over again”

CIOs need to embrace the change, not resist it

� Understand the benefits of cloud, as well as its drawbacks

� Understand the public cloud providers capabilities and include these services in IT

offerings as it makes sense

With an IT strategy that embraces Cloud, CIOs can better satisfy their customers

� Improves visibility of IT use, more responsive, simpler, cheaper

� Requires an overall strategic vision with pragmatic, evolutionary approach

� Increases range of services, applications, and capabilities available to clients


We believe there are 6 key steps to a Cloud strategy

Implement Cloud

Systems Storage

Network

Computing

Infrastructure

Platform &

Applications

EmailBus

Apps

BPMSys

Mgmt

Info Mgmt

Web Svr

Assess Workload

E-Mail,

Collaboration

Software

Development

Test and Pre-Production

Data

Intensive

Processing

Database ERP

Determine the Cloud Delivery Model

Enterprise

Private Public

Hybrid

Trad

IT

Create IT Roadmap

Capital

Private Cloud

Hybrid Cloud

Time

TradIT

RentFinancial

Wo

rklo

ad

Cu

sto

mS

tan

da

rd

Establish Architecture

Service Definition

Tools

Service Publishing

Tools

ServiceFulfillment &Config Tools

ServiceReporting &

Analytics

ServicePlanning

RoleBasedAccess

OSS

BSS

Infrastructure

Platform

Software

End Users,

Operators

ServiceCatalog

OperationalConsole

Cloud Services

Cloud Platform

Define Business Value


Analysis of IBM Americas’ internal applications*

The Cloud-Affinity of existing applications depends on multiple factors: Compliance and cross-border issues, site-dependency (for performance or data size), app-specific benefits of migration, and the ease and cost of migration.

Low Cloud affinity

High Cloud affinity

Which aspects of your IT portfolio have an affinity for Cloud?


Which aspects of your IT portfolio have an affinity for Cloud?

� Cloud as a supplement where risk and migration cost may be too high

– Database– Transaction processing – ERP workloads– Highly regulated workloads

� Can be standardized for cloud – Web infrastructure applications– Collaboration infrastructure– Development and test– High Performance Computing

� Made possible by cloud– High volume, low cost analytics– Collaborative Business Networks– Industry scale “smart” applications

29


Business Case Results: IBM Technology Adopter’s Portal (IBM TAP)

New Development

Software Costs

Power Costs

Labor Costs (Operations and Maintenance)

Hardware Costs (annualized)

Liberated funding for new development, trans-formation investment or direct saving

Deployment (1x)

Software Costs

Power Costs( - 88.8%)

Labor Costs ( - 80.7%)

Hardware Costs( - 88.7%)

Note: 3-Year Depreciation Period with 10% Discount Rate

Without Cloud With Cloud

100%

Current IT

Spend

StrategicChange Capacity

Hardware, labor & power savingsreduced annual cost of operation by 83.8%

� IBM TAP is an ideal environment for private cloud

implementation

� By implementing virtualization

and automated provisioning,

TAP was able to:

�Reduce from 488 servers to 55

�Reduce from 15 admins to 2

�Reduce hardware, power, and

labor costs 83.8%

� Clients who have already

adopted virtualization and automated provisioning will

see different results


A Cloud Enabled Data Center

Service Request & Operations

Self-service UIAdministrators

Virtual Servers, Storage, Network

Tivoli Service

Automation MgrTivoli Service

Automation Mgr

Tivoli Provisioning

ManagerTivoli Provisioning

Manager

Tivoli Monitoring:

NetcoolTivoli Monitoring:

Netcool

Tivoli Usage &

Accounting MgrTivoli Usage &

Accounting Mgr

BSSBSS OSSOSS

Cloud Administration

Service Management

Dev & Test Zone QA Zone Production Zone• Application Lifecycle

Management• Rational Jazz• Eclipse Open Source

• Multi-tier infrastructure

• Multi-tier infrastructure• Web / App / Database

Providing a simplified, dynamic, automated data center solution enabling enterprises to deliver services faster and in a cost effective manner

Data Center #1 Data Center #2

WAN

Virtual

Networks

Virtual Machine

Migration

Security


Concluindo…


Towards “cloud utopia”: Will an IT “asset lighter” model become increasingly common within the enterprise over the next few years?

Dot Com Boom� Application Service

Provider (ASP) model ill-

fated forerunner to cloud

“On Demand 1.0”� e-business as a

viable model

Pre-mid 80’s Mid-90s 2000 2010

Mostly internal IT� Build and manage most

IT in-house

Challenge to internal IT

� The rise in outsourcing

2012 + ?� IT “asset lighter” enterprise

increasingly mainstream

2015

Cloud as a disrupter Cloud computing could potentially be the most seismic market disruption ever seen in the industry and might be the start

of the move towards “everything-as-a-service”, culminating in the “IT asset-lite” enterprise as the de facto model

Cloud Hype� Elements of alternative

delivery (eg SaaS) in

early phase

Economic Pressures

� A confluence of technologies

(virtualization, multi-tenancy, etc.),

together with the economic

downturn stimulates even more

interest in cloud computing


Cloud computing and the “Perfect IT Storm”: Prepare for a very bumpy ride in the new market norm

� Cloud is the 4th major era of computing

� Brought about by a confluence of technologies

� Plus, radically changing buying decisions borne out of economic necessity

– “even more for even less”– consumerization of IT

� But, critically, net spending will be materially lowerthan in the current IT paradigm

� Caused by a bundling and shared use of previously user owned / managed IT

� We are calling this the decomposition of previous IT value elements

1960s

Glo

ba

l S

pe

nd

on

IT

Pro

du

cts

& S

erv

ice

sMainframe Era

1980s 2000s 2020

PC / Client-Server Era

Network Era

IT’s New Norm2010 +

Global IT spend peaked sometime between 2005 and 2008. IT spend will be on a downward trajectory over the next decade

Cloud computing will create massive disruptions and substitutions to the traditional IT paradigm

The way hardware and software markets work today (the way they are bought, sold, packaged, marketed and the

ecosystem that supports them), will all look very different a decade from today

Source: IBM Market Insights


The realities of cloud versus hype

� Adoption and migration to end goals differ– Enterprise with lots of legacy / significant investment will be more cautious– Commonly accepted wisdom is LEs will adopt via a private cloud (DC 2.0) build-out first. Risk is they take a trial / incremental basis straight to

public clouds. MI is calling this the private cloud bypass scenario. Intuitively, SMB, start-ups unlikely to pursue private cloud route

� Scope / role of internal IT changes – fewer staff, procure / orchestrate cloud SPs

Source: Market Insights

Source: Market Insights and Gartner

Reality Today

Internal IT plus 3rd party for some things

Everything in the cloud and all at once

Cloud Hype

Sourcing mixture -retain legacy, plus

private/hybrid, public

Future Reality

Trad. SO Trad. SO

So, no “BIG BANG” !

Which is why we don’t see too many

cracks…yet

2009 – How would our

org benefit (pilots)2010 – Have budget –best investment areas ?

2008 – What is

cloud? (education)

�Nevertheless, the evolutionary process to cloud is beginning to reach a critical phase


We are in the midst of a pronounced shift from client-server to cloud computing; as a result next generation data centers are likely to become services-oriented in the medium-term (3 to 5 years)

Timeline

Virtualization & Automation

Via Public Clouds

Traditional Data Center

IT as a Service

Via Private Networks

Large scale, common, standard IT functions (e.g., email, storage)

� Application as a service

� Compute as a service

� Storage as a service

� Desktop as a service

� Business process as a service

Hosted Infrastructure

Users build/configure their own applications, but rely on managed infrastructure service providers to deploy, run and maintain complex infrastructure

Client/server on premise model

Data Center Consolidation

IT resources consolidated into large data centers


Cloud Enables Global Industry Transformations


In summary…

� Cloud computing is a disruptive change to the way IT services are delivered

� Without a strategy, Cloud computing can be a threat to the CIO and IT team

– IT services delivered over the Internet – Perceived cost gap between a cloud service and

traditional IT– “The next client/server”

� With a strategy, Cloud computing is a huge opportunity for the CIO

– Lower cost of delivery for some workloads– More responsive IT– Ability to optimize delivery using traditional, private

cloud, and public cloud– Greater visibility in billing / chargeback to LOBs– Greater range of available services, applications, and

capabilities

© 2010 IBM Corporation39 IM AR39

IBM developerWorks: Your entry point

� Logon to IBM developerWorks to access IBM Development & Test Cloud and all IBM and Business Partner offerings to help you develop and enable cloud services.

ibm.com/developerworks/spaces/cloud


Obrigado!

� Cezar Taurion

� [email protected]

� www.ibm.com/developerworks/blogs/page/ctaurion

� www.computingonclouds.wordpress.com