Robert AlexanderCloud computing overview

By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion

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Exabytes

RFID,

Digital TV,

MP3 players,

Digital cameras,

Camera phones, VoIP,

Medical imaging, Laptops,

smart meters, multi-player games,

Satellite images, GPS, ATMs, Scanners,

Sensors, Digital radio, DLP theaters, Telematics ,

Peer - to -peer, Email, Instant messaging, Videoconferencing,

CAD/CAM, Toys, Industrial machines, Security systems, Appliances

10xgrowth infive years

Approximately 70% of the digital universe is created by individuals,but enterprises are responsible for 85% of the security, privacy, reliability, and compliance.

Operations & capital costs drive increasing IT spendA crisis of complexity … the need for progress is clear

Steady CAPEX spendSteady CAPEX spend

Global Annual Server Spending (IDC)

Source: IBM Corporate Strategy analysis of IDC data

Uncontrolled management and energy costsUncontrolled management and energy costs

$0B

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New system spend

Management and admin costs

Power and cooling costs

Delivery organizations must address the server, storage and network operating cost problem, not just capital expense

IT Infrastructure Evolution to Cloud ComputingAbstractionand Pooling

Multi-System Virtualization

Virtual Servers, Storage, Networks

Storage

Servers

Networks

V

V

V

Scale-OutSprawl

Windows Servers

Linux Servers

Unix Servers

ManagementServers

Switches

Storage

Firewalls,Routers

PhysicalConsolidation

WindowsServer

Linux Server

Mainframe orUnix Server

Networks

Storage

V

VV

V

V

IT Simplification

Service Orientation, CloudServices, Ensembles, …

Ensemble

Ensemble

Ensemble

Key Technologies (unordered)• Service oriented architecture• End-to-end service mgmt• Comprehensive virtualization• Ensembles & scalable servers• Converged networks• Cloud computing services

• Software as a service• Information as a service• IT appliances• Real-time data streams• Mobile client services• Virtual worlds

Operational Definition for Cloud ComputingA user experience and a business model� Cloud computing is an emerging style of IT delivery in which applications, data, and IT

resources are rapidly provided as standardized offerings to users over the web in a flexible pricing model.

An infrastructure management and services delivery methodology� Cloud computing is a way of managing large numbers of highly virtualized resources

such that from a management perspective, they can be automatically aggregated to deliver services . 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

5

Enterprise

Traditional enterprise IT

Private cloud

IT activities and functions are provided “as a service,”over an intranet, within the enterprise and behind the firewall

Hybrid cloud

Internal and external service delivery methods are integrated

Public cloud

IT activities/functions are provided “as a service,” over the Internet

• Cloud computing is built on, and leverages existing technologies

� Consolidation and virtualization

� Service-oriented architectures

� Service management automation

� Usage tracking and billing

� Web 2.0

What’s new?

� Focus on self-service and self-management using these services

� Using these technologies holistically, working together, to create a cloud environment

• Today there are three primary delivery models for cloud

Cloud Computing is an emerging service delivery & consumption model in which applications, data, collaboration, business processes and IT resources are provided as

services to users over the network

• Enterprise owned

• Either enterprise operation or 3rd party

• Fixed price or time and materials services

• Internal network

• Dedicated assets

• IBM owned and operated

• Centralized, secure delivery center

• Fixed price, time and materials, or pay as you go

• Internal network

• Dedicated assets

• Mix of shared and dedicated resources

• Shared facility and staff

• Pay as you go

• VPN access or public internet

• Shared resources

• Elastic scaling

• Pay as you go

• Public internet

EnterpriseEnterpriseData Center

EnterpriseData Center

IBM operated IBM owned and operated

IBM owned and operated

User A

User B

User C

User D

User E

Enterprise A

Enterprise B

Enterprise C

Private Cloud Services

Public Cloud ServicesShared Cloud ServicesIBM Managed IBM HostedCompany-Owned

Public Cloud Services

Cloud Cloud

Private Cloud

Private Cloud

Private Cloud

IBM offers a range of Cloud Computing delivery models

Cloud Computing business models perspective

Services & Applications

Physical Infrastructure

Virtualized Infrastructure

Middleware

Un modello di business ed unaesperienza utente

� Standardizzato, offerte “self Service”� Servizi forniti rapidamente

� Flessibilità nei prezzi

Il Cloud Computing è uno stile di modo di erogazione e fruizione delle risorsee dei servizi IT

Un metodo di gestione delle infrastrutturee di erogazione dei servizi

� Pool di risorse virtualizzate� Automazione

� Servizi erogati in modo scalabile

La prospettiva del Business La prospettiva dell’IT

An effective Cloud Computing deployment is built on a Smart Business Infrastructure and is highly optimized to achieve more with less….

=

CLOUD COMPUTING

Reduced Cost

…leveraging virtualization, standardization andautomation to free up operational budget for new investment.

VIRTUALIZATION +STANDARDIZATION AUTOMATION+ Increased Flexibility

Building a Smart Business Infrastructure.

Service Management

Virtualization

Energy Efficiency

Business Resiliency

Security

Information Infrastructure

Provide visibility, control and automation across all the business and IT assets to deliver higher value services.

Maximizing the value of critical business and IT assets over their lifecycle with industry tailored asset management solutions.

Leadership virtualization and consolidation solutions that reduce cost, improve asset utilization, and speed provisioning of new services.

Address energy, environment, and sustainability challenges and opportunities across your business and IT infrastructure.

Maintaining continuous business and IT operations while rapidly adapting and responding to risks and opportunities.

End to end industry customized governance, risk management and compliance solutions.

Helping businesses achieve information compliance, availability, retention, and security objectives.

Asset Management

Cloud computing needs:

Attributes Benefits

Advanced virtualizationMore efficient utilization of IT resources.

Reducing cost through economy of scale

Automated provisioning Reducing IT cycle time and management cost

Elastic scalingOptimizing IT resources utilization

Increasing flexibility (up & down)

Service catalog ordering Faster to deploy thru self-service

Metering and billingImproving cost transparency (“use-based”)

Flexible pricing schemes

Internet Access Access anywhere, anytime

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TIO

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IBM asked respondents to the interview to evaluate "push factors" forand "barriers" against cloud adoption for workload and delivery type

Push factors

Public

� Highly standardized workloads

� Modular, independent workloads

Private

� Data privacy or regulatory and compliance issues

� High level of internal control required

Both

� Fluctuating demand

� High costs

Public

� Highly standardized workloads

� Modular, independent workloads

Private

� Data privacy or regulatory and compliance issues

� High level of internal control required

Both

� Fluctuating demand

� High costs

Higher propensity

Lower propensity

Barriers

Public

� Data privacy or regulatory and compliance issues

� High level of internal control required

Private

� Highly standardized workloads

� Modular, independent workloads

Public

� Data privacy or regulatory and compliance issues

� High level of internal control required

Private

� Highly standardized workloads

� Modular, independent workloads

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

File & Print

Data Warehousing

Data Mining

Systems Mgmt.

SMEERP/SCM/CRM

Workloads can be classified according to cloud affinity

Lower Gain From External Cloud

Higher Gain From External Cloud

Lower Pain To Cloud Delivery

Higher Pain To Cloud Delivery

Large EnterpriseERP/SCM/CRM& Transaction

Processing

Web Serving

Numerical

[Low Data/Compute]

Numerical

[High Data Transfer]

Collaboration

Application Dev’t. & Test

“Database Centric” Architecture

“Content Centric” Architecture

“Loosely Coupled” Architecture

“Storage - Analytics” Architecture

“Virtualized Traditional” Architecture

Virtual DesktopStart Here

Business Case Results – IBM Technology Adoption Program

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 (1-time)

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 savings re-ducedannual cost of operation by 83.8%

� The IBM TAP business case re-presents an ideal environment fora private cloud implementation. By implementing virtualization and automated provisioning, the team was able to:

� Reduce from 488 servers to 55� Redeploy 13 admins� Reduce Power costs (fewer servers)

Business Case Results:Annual savings: $3.3M (84%)

from $3.9M to $0.6M

Payback Period: 73 days Net Present Value (NPV): $7.5M

Internal Rate of Return (IRR): 496%Return On Investment (ROI): 1039%

Smart Business on the IBM Cloud

Smart Business Cloud

Smart Business Systems

Standardized services on the IBM Cloud

Pre-integrated, workload optimized systems

IBM offers 3 choices to deploy workloads that matter for greaterefficiency, productivity and control

Private cloud services, behind your firewall, built and/or managed by IBM

Hardware

Software

Services

Cloud

EnterpriseData

Center

Private Cloud