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© 2015 IBM Corporation

Infrastructure-as-a-Service:Building Your Cloud Practice from the Ground Up

Seattle06.11.15

2© 2015 IBM Corporation

Cloud is the Equalizer

DataPut to work in the cloud as

the new basis of competitive advantage

MobileThe activation point to engage

customers in context using cloud-based services

1 TrillionThe average mobile phone user checks

their phone

150 Times Per Day Connected things on the planet

generating data by 2015

72%of business leaders say cloud will be extremely important to their

business success by 2016

CloudGives organizations of all

sizes the ability to innovate at speed

SocialRevolutionize customer touch points with cloud-based social

media

Social connections occur daily

2 Billion


Cloud Accelerator Workshop Agenda

Building Your Cloud Business on IaaSDavid Stephens, Ingram Micro

Cloud: The Partner Perspective Jeff Ballard, IBM SoftLayer


BUILDING YOUR CLOUD BUSINESS ON IAAS

David Stephens, Senior Cloud Solutions Executive


Separation of Responsibilities


Running A Business on IaaS

Active Directory & Exchange

File Servers

Database Servers

Application Servers

Web Servers

Private Clouds

Backup, DR and BC

Test & Development


Reselling vs. BYOL

• Windows Server 2003/2008/2012• CentOS, Cloud Linux, RHELOS

• VMware ESXi, Hyper-V, Citrix, and Parallels Hypervisors

• SQL, MySQL, Big Data (Hadoop, MongoDB, Riak)Databases

• Firewalls (HW/SW), Load Balancers, IPS/IDS, Backups, DNSAncillary Services


Reser ved

Compute (Cores & RAM)

Dedicated virtualized environment

Networking (Connectivity & Bandwidth

Storage (DAS, NAS, and Object Storage)

Any compute, network and storage combination is available across the platform

The Three components of any IaaS Configuration


IaaS Components & Costs

Compute

Number of Cores

RAM

GPU

Storage

Type (Tier 1, 2 3)

Number of GB

Software

OS

Databases

Security

Variable Costs

Bandwidth (Outbound)

Tech Support (Ticket, Chat,

Phone, Response time?)

IOPS


Your Cloud Practice


Cloud Professional Services

Assessment

Architecture / Design

Deployment

Migration

Integration

Monitor

Management


Choosing the Right IaaS Partner

Be skilled in several solutions

Look for:

– Transparency

– Flexibility

– Agility

– Efficiency

– Cost

Be considerate of the hypervisor


The SoftLayer Platform


SoftLayer is not your average cloud provider. How are we different?

One Cloud that combines:Public VirtualizedPrivate Virtualized

Dedicated Bare MetalGlobal high-performance network…and single-pane management

+

+

+

+

Performance

Flexibility

Control


SoftLayer: Global IaaS Leader

Platform Benefits

Deploy in one of SoftLayer’s 25 Datacenters

Open & Flexible Deployment (Microsoft, Linux, Citrix, VMware)

Carrier Grade Global Network & Partnerships

Unlimited Support 24x7


Global Footprint

IPv4/IPv6 dual stackGlobal DNS

Global DDOS MitigationGlobal Internet Exchanges & Peering

INDIA

Tokyo

Hong Kong

Singapore

Melbourne

Seattle

San Jose

Los Angeles

Mexico City

Denver

Chicago

Dallas

Houston

TorontoMontreal

BRAZIL

New York City

Washington D.C.

Miami

London Frankfurt

Amsterdam

Paris

Sydney

Atlanta

DATA CENTER & NETWORK POINT OF PRESENCE

NETWORK POINT OF PRESENCE


Next Gen enterprise appsBorn on the web

Moving to the cloud

SoftLayer services support born on the web customers and meets the cloud demands of businesses across the spectrum

SoftLayer Works for Organizations


Global Cloud Platform

• Only infrastructure solution with a common management interface and API across a unified architecture

• Customers mix and match bare metal servers, virtual server instances and turnkey private clouds and manage them from a single control pane or API

• All deployed on-demand and provisioned automatically in real-time

18

Unified architecture enabled by powerful software


How It All Fits Together

Data Center & Pods• Standardized, modular

hardware configs • Lower inventory

carrying costs• Maximize asset

utilization & profitability• Increase provisioning flexibility• Simplify capacity management

• Globally consistent service portfolio

Triple Network• Proprietary network

architecture• Pod design allows

customers grow to across multiple racks or rows in the same layer 2/3 domain as needed.

SoftLayer Infrastructure Management System• Bare metal & virtual server provisioning• Integrated BSS/OSS• Comprehensive

network management


Virtual, Bare Metal Servers or Hybrid

SoftLayer Deployment Flexibility


SoftLayer Server Options

When to Use What?


Custom Server Configurations from


To….


…And anywhere in between


Bare Metal Options


Bare Metal Monthly


…Or Hourly


SoftLayer Differentiators


78GB@$0.12/GB per month1

7% of contract2

Standard Medium2 EC2 Compute Units, 3.75GB RAM, 410GB storage CentOS 6 64bit

2 core – 4GB RAM 400GB storage

103

102

Effective pricexx

Storage and bandwidth are included in SoftLayer base price

Key takeaways:

• Competitors may appear to have lower prices, but in reality you can end up paying the same or more

• SL’s price includes many features that customers are otherwise forced to pay extra for

• Including substantial bandwidth in our price allows customers to predict billing totals

6988

102

SoftLayer’s price transparency makes it easy for customers to know what they are getting

List price Bandwidth Support

SOURCE: Amazon website; SoftLayer1 Based on observed average customer bandwidth consumption for comparable configurations2 Actual cost may range from 7-10% of total contract


Benefits of SoftLayer to Partners

1. Deploy any x86 Software or Hypervisor

2. Free Traffic between every DC. (Think Backup, DR and HA)

3. Predictable Costs

– Unlimited Chat, Ticket and Phone Support

– Bandwidth Allocation

4. Best Price for Performance

– Dedicated Compute

– All inclusive prices


CLOUD: THE PARTNER PERSPECTIVE

Jeff Ballard, IBM SoftLayer


The Trending Cloud

2015

• 27% of all software revenue subscription based

• 5.5+ x more total IT market spending growth than public cloud spending growth

• 50+% of buyer firms have adopted some form of cloud

• 90% of new apps will be developed specifically for the cloud

• 65+% of IT organizations will commit to hybrid cloud technologies

• 65% of cloud workload selection criteria shaped by data privacy legislation compliance

• 70% of CIOs adopt a cloud-first strategy

• 50+% of org’s building hybrid clouds purchase workload-aware cloud management

• 11% shift of IT budget away from in-house IT delivery, towards cloud

• 20% of enterprises strategically adopt community-driven open source standards/ frameworks

• 20% of IT budgets actively channeled through industry clouds to enable flexible collaboration, information sharing, and commerce

2017

2018

2016


Customer Cloud Journey

Organizations still need trusted partners to:

• Select appropriate services for their unique business needs

• Integrate disparate services and design comprehensive systems

• Simplify billing and provisioning across multiple providers

• Manage and monitor business-critical cloud systems and provide ongoing support for users and application

• Help develop and implement strategy in rapidly changing cloud environments

Research Evaluate Select Purchase Support

Seek Options

AnalyzeOptions

FinalizeProvider

Contractservice

Set up, migrate applications.

processes, etc

Implement

On-goingservice


Public

and Traditional IT

Private

Benefits:

• Fully customizable

• Robust management

• Scalable

Benefits:

• Rapid access

• Pay-per-use

• Highly elastic

Match workloads to best-fit infrastructure

Hit the right balance of risk to speed

Meet seasonal capacity without CapEx

Add new capabilities quickly

IBM Hybrid

Off PremiseOn Premise

Managed

Private

IBM is uniquely positioned to lead in hybrid cloud solutions

Clients Look to You to Help Match Workloads for Best Fit


1. Top Down Organizational Commitment

C-level exec on down– Exec only – not enough momentum in the ranks for the fledgling business to grow– Grass roots – cannot be sustained under the weight of traditional software, support and

maintenance models

Concerted, connected effort incorporating every level of the business– Champion– Executive sponsor

Organizational cloud focus:– Reduce the time and cost to sell cloud solutions

• Shift from field sales to telesales; marketing to digital; etc.– Adding resources to account management and support to ensure the customer always

renews • Think "customer success manager."

– Understand where else to make money if large resale deals and large implementation deals have significantly decreased.


2. Separate Cloud P&L / Business Unit

“…revenue and cash flow issues can be significant to a channel partner that is moving from a

traditional model of selling software licenses to a cloud model selling an offering on a recurring basis.

For a company that makes a black-and-white "all in" shift, the revenue and cash flow "trough" can be

debilitating.”

Different business model requires a different approach– Properly frames the effort for the organization– Allows business to stand on its own– Actions taken in response to the analysis must foster long term growth– Objective must promote the revenue recurring aspects of a cloud platform


3. Dedicated Sales Force

Sellers fall back on what they know best

Shift from product sales to service sales

High touch the relationship– One of the benefits of cloud – low or little

barrier to entry – can also be the un-doing as some deployment models are too easy to unhitch

Adjusted compensation model– To change the behavior of a sales team

you need to change the compensation– Needs to accommodate add-on services

and on-going subscription model

Traditional Cloud Model

Revenue One time Recurring

Revenue recognition Upfront Over time

Typical up-front deals size

Larger than 1st-year cloud agreements

Smaller than traditional model

Typical sales cycle

Longer than cloud agreements

Shorter than traditional model

Billing approach

One time license with annual maintenance

Subscription or usage based billing

Sales approach

Get the deal, move on to the next customer

Get the deal, expand usage, maintain

customer satisfaction

Traditional vs Cloud Model Sales Motions


4. Add-on Solutions & Services

New revenue streams across multiple cloud models – or building combinations

Become an essential component of the cloud ecosystem

Enhance partner ‘stickiness’ & recurring transactions

Extend monitoring services across on-premises and off-premise resources

SoftLayer and related service offerings, while profitable, are typically either one piece of a larger MSP business or the underlying platform for organizations delivering SaaS.

~Forrester

Hosted private cloudsChoose bare metal, virtualized infrastructure or both in a single-tenant model to meet enterprise needs.

High-performance computingAccess industry-leading HPC cluster technologies to run entry-level to the most demanding HPC apps.

Big data and analyticsStore, manage and analyze data with the robust storage and computer power.

Social businessHost social business apps for global enterprise customers.

Mobile applicationsBuild and host mobile apps on a global infrastructure at Internet scale.

Development and testDevelop and test business apps with APIs1 and a DevOps runtime services environment.

Web applications and e-CommerceDeploy any n-tier application with demanding requirements on an easily scalable, hybrid infrastructure.

ISVs2, production ERP andunmanaged productionCombine dedicated and shared cloud environments on a hosted infrastructure, backed by monitoring, backup and restore, and high availability.

The partner that integrates, manages, and sells entire platforms and smart bundles of cloud services adds real value for their clients


4. Add-on Solutions & Services

Forrester report -- Total Economic Impact of SoftLayer at this link

Forrester Study: SoftLayer Total Economic Impact

http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=SA&subtype=WH&htmlfid=SML12386USEN


Guidance Summary

IBM Confidential

Assessments

Education / Knowledge Transfer

POCs / Implementation

Subject Matter Expertise


Cloud Computing Resources

Analysts Associations Media Key Events

https://www.forrester.com/home/

http://talkincloud.com/

http://www.techtarget.com/

http://www.cmswire.com/

http://www.eweek.com/

http://www.infoworld.com/

http://www.cloudcomputingexpo.com/

http://www.cloudcomputingassn.org/

http://cloudcomputingwire.com/

http://www.cloudadvisorycouncil.com/

http://www.gartner.com/technology/home.jsp

http://www.idc.com/

https://cloudsecurityalliance.org/

http://www.nexgencloudcon.com/

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

http://www.interop.com/lasvegas/conference/cloud-connect.php

http://www.cloudfoundry.org/index.html

http://www.channelnomics.com/

http://mspmentor.net/

http://www.zdnet.com/

http://www.cio.com/

http://www.forbes.com/cloud-computing/

http://www.microscope.co.uk/

http://www.esg-global.com/


Connect with IBM

Thought Leadership Blog: Thoughts on Cloud

Twitter IBMCloud / Hashtag: #ibmcloud

Facebook Page: IBM Cloud

YouTube: IBM Cloud

Google+ page: IBM Cloud Computing

LinkedIn Group: IBM Cloud Computing

Developerworks: Connect and Collaborate on Cloud Topic

http://thoughtsoncloud.com/

http://twitter.com/ibmcloud

https://twitter.com/search?q=

http://www.facebook.com/IBMCloud

http://www.youtube.com/user/IBMCloud

https://plus.google.com/u/0/105308978410787250865/

http://www.linkedin.com/groups/IBM-Cloud-Computing-2002441

http://www.ibm.com/developerworks/cloud/connect.html


Playbooks

http://digital.leadmagz.com/publications/ingrammicro/IaaS-Playbook/index.html

http://digital.leadmagz.com/publications/ingrammicro/SoftLayer-Playbook/index.html


• Large public accounting customer needing a cloud-based solution to maintain historical data from a recent acquisition

• Migrate from on-premises IT infrastructure to the cloud

• Investigated Azure for client• lacked support for the required versions of Hyper-V and Windows

servers

• Selected SoftLayer solution • optimized combination of dedicated and shared infrastructure

• Dedicated hardware provisioned within hours of customer acceptance

• Common Knowledge guided customer through the process of drive selection and importing the data

Partner Case Study: Common Knowledge Technology

“We could combine dedicated hardware and shared infrastructure in ways not available on the other platforms enabling us to optimize what would on shared storage and leave what was not supported on dedicated hardware. “

Peter Horewitch

President

Common Knowledge Technology, Inc



GOAL:

Call to Action

Sign up as an IBM SoftLayer reseller through Ingram Microhttp://www.ingrammicrocloud.com/softlayer-programs/

Educate your sales and technical teams

Transfer your internal workloads to SoftLayer

One new transaction each quarter

http://www.ingrammicrocloud.com/softlayer-programs/



Thank You

Presenter: Jeff Ballard Title: Market development Executive

Presenter: David Stephens Title: Business Development Manager

ibm

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