tapping current it trends to boost company performance

Tapping Current IT Trends to Boost Company Performance

Piotr Pietrzak IDC Cloud Computing Roadshow 2012

Hotel Marriott, Warsaw, Poland, October 16, 2012

e: [email protected] t: @piotrpietrzak


Evolu&on of „tech” in &me • Inter-

Galactic

• Galactic

• Solar System

• Planetary

• Continental

• Regional

• Inter- Continental

• Local

• 3500BC Wheeled Carts & River Boats

• 2000BC Horses Tamed

• 770 Iron Horseshoes

• Engineered Roads

• 1783 Hot Air Balloon

• 1804 Steam

Locomotive

• 1903 Airplane

• 1926 Liquid Fueled Rocket

• 1908 Automobile

Assembly Line

• 1947 Supersonic

Flight

• 1969 Man Reaches

the Moon

• 

• Exploration and Exploitation by Ocean Going Ships

• W oparciu o : http://en.wikipedia.org/wiki/List_of_timelines

• 3500BC • 2000BC • 1000BC • 0 • 500 • 1500 • 1800 • 1900 • 1950 • 1672

Steam car

• 1700 • 2000 • 1850 • 1000

• Egyptian Dynasties • Roman Empire • Middle Ages • Renaissance

• Industrial Revolution and Urbanization

• Industrialization and Sub-Urbanization

• Information Age Digital Communities

• ~2015 Voyager I will leave

Solar system

• 

• 

• 2000 International

Space Station

• �

• 2063 1st Warp

Drive

• �

• 2151 Enterprise

NX-01

• 1967 Concorde

• 6000BC-4000BC Symbolic Writing

• 2000BC Alphabetic Writing

• ~1450 Gutenberg

Printing Press

• ~1800 First Typewriter

• 1902 Electric Typewriter

• 1837 Morse’s

Telegraph

• 1927 Television

• 1943 Colossus • 1981

IBM PC

• 1969 Internet

•  1989 The WEB

• 1792 Semaphores

• ~1960 Telephone

• 196BC Rosetta Stone

• ~1041 Pi Sheng

Printing Press • 3000BC Papyrus

• 2400BC Courier System

• 405BC Heliograph

• 1896 Radio

•  Phy

sica

l / C

omm

unic

atio

ns R

each

• 1991 3D MMORPG

• 1987 MMORPG

• 2006 Second Life

• Digital Divide

• Physical

• Digital Communities


Our Industry has been driven by Continual Improvement and Disruptive Innovation !

Source: Kurzweil 1999 – Moravec 1998

1900 1920 1940 1960 1E-5

1E-3

1E+0

1E+3

1E+6

1E+9

1E+12

$100

0 B

uys:

Com

puta

tions

per

sec

ond

Integrated Circuit

Discrete Transistor

Vacuum Tube

Electro- Mechanical

Mechanical

2020 2000 1980


Exascale (Datacenter-in-a-box)

§ Massive parallelism § Flexible system

optimization

Nano Devices

1B Transistors

Power7 chip

1T Devices

Nano Systems (Systems-on-a-chip)

Workload Optimized

Systems

Big Data

Compute+

Natural Language+

Analytics

Cognitive Computing § “Synapse” devices

§ Photonics § DNA Transistor

BIG/Fast § Data + analytics

(zettabytes + milli / microseconds 1,000 à 1,000,000 X

1000X

1000X

Program Learn

Deep Q&A Computers

Smarter Planet

(Internet of Things + People)

4 Technologies that Will Change the World – and IBM Will Lead !


1 PetaFlop = 1/3 rack

Software

Phase Change Memory

CPU Silicon Photonics

3D

1 PetaFlop 72 BG/P Racks

Overall Performance = 1000X

Performance / watt = 135X

Performance / $ = 1000X

Footprint = <2%

Referenced to one-petaflop system

The Next Ten Years

2009

Exascale Computing A billion calculations in a billionth of a second

2019


Com

pute

r Int

ellig

ence

Time

Tabulating Era

Computing Era

Smart Systems Era

We Are Entering a New Era


• Smart • Work

• Green & Beyond

• New Intelligence

• How can we work smarter supported by flexible and

dynamic processes

modeled for the new way people

buy, live & work?

• How can we take advantage of the

wealth of information

available in real time from a multitude of

sources to make more intelligent

choices?

“Data is exploding and it’s in silos”

“New business & process demands

”

“Our resources

are limited”

• I Need Insight • I Need to Work Smart

• I Need Efficiency

• Dynamic Infrastructure

• How do we create an infrastructure that drives down cost, is intelligent and secure, and is just as dynamic as today’s business

climate ?

“My infrastructure is inflexible and

costly” • I need to

respond quickly

• How do we drive greater efficiencies,

compete more effectively, and respond more

quickly by taking action now on

energy, the environment, and

sustainability?

For us to make sense of this new world, we must consider four critical questions

Smart Devices

Virtualization Management

Converged Networking Cloud

Workload Optimized Analytics & Big Data

Smart devices will grow 4x from 2009 to 2014. Server infrastructure will be needed to support resulting edge/presentation, application, and database workloads.

Cloud computing is a new consumption and delivery model that leverages Virtualization, Automation, and Standardization.

Maintaining a price performance curve requires hardware and software integration. Optimizing workloads is another form of integration.

Virtual machine densities continue to rise. Virtualization management is becoming the critical factor for virtualization success.

Converged network devices become the dominate player. Network optimization software needs to keep pace with the hardware advancements.

Explosion of embedded devices, mobile, and social networking creates new opportunities for Web and data analytics. This need spans multiple industries such as Finance, Healthcare, and Manufacturing.

New technologies and delivery models will usher in a new era of computing

9


Seven Basic Pillars to look into • Service Management

• Asset 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.


The impact of technology is extending to driving greater business value

• 11

• An Evolu)on of Informa)on Technology

§  Changing the economics of IT

§  Automa)ng service delivery

§  Radically exploi)ng standardiza)on

§  Rapidly deploying new capabili)es

•  An Enabler of Business Transforma)on

§  Crea)ng new business models

§  Enabling speed and innova)on

§  Re-‐engineering business processes

§  Suppor)ng new levels of collabora)on

• Efficiencies

• Transforma)on

• Internal IT Focused

• Business and Process Focused


Technology enables business imperatives and supports innovation … it can :

• Cloud Computing • 12 • 10/16/12

§  Improves asset utilization and lowers TCO

§  Increases responsiveness

§ Provides open, elastic IT environments

§ Optimizes IT investments & reduces fixed costs

§ Supports globalization and globally available resources

§ Enables real-time data streams and information sharing


Current Technology Delivers both IT and Business Benefits

• 13

• Automation

• Faster cycle times

• Lower support costs

• Improved compliance

• Optimized security

• Increased Speed

• Lower Cost

• Improved Flexibility • Standardization • Easier access

• Flexible pricing

• Reuse & share

• Easier to integrate

• Virtualization • Higher utilization

• Economy of scale benefits

• Lower capital expenditures

• Lower operating expense


… and creates new challenges for the CIO.

• 14 • Cloud Computing • 10/16/12

§ Ensuring scalability and responsiveness

§ Managing systems & security

§ Supporting audits & certifications

§ Managing the proliferation of systems & applications

§  Integrating “cloud” and enterprise services

§ Providing a range of services

§ Providing technical support


Developing the technology strategy and implementation plan is the first step for the CIO. Without a strategy, new technologies like cloud can be a threat to the CIO and the IT team

•  Reduced control of IT services delivered over the Internet •  Perceived cost gap between a cloud service delivered by providers outside of the

IT team and “traditional” services delivered by IT With a strategy, new tech is a huge opportunity for the CIO

•  Lower costs, more responsive IT, optimized delivery •  Greater range of services and capabilities •  Greater visibility in billing / chargeback to LOBs •  Better control of the users’ systems, desktops, and services access


Usual 5 Steps

IT Roadmap Architecture Workload Assessment

Enterprise & Public Cloud Mix Implementation

Systems Storage

Network

Computing Infrastructure

Platform & Applications

Email Bus Apps

BPM Sys Mgmt

Info Mgmt

Web Svr

E-Mail, Collaboration

Software Development

Test and Pre-Production

Data Intensive

Processing

Database ERP

Enterprise

Private Public

Hybrid

Trad IT

Capital

Private Cloud

Hybrid Cloud

Trad IT

Rent Financial

Wor

kloa

d C

usto

m St

anda

rd

Service Definition

Tools

Service Publishing

Tools

Service Fulfillment & Config Tools

Service Reporting & Analytics

Service Planning

Role Based Access

OSS

BSS

Infrastructure

Platform

Software

End Users,

Operators

Service Catalog

Operational Console

Cloud Services

Cloud Platform


Layers of abstraction that enable service delivery.

• Cloud Computing • 16 • 10/16/12

Services & Applications

Physical Infrastructure

Virtualized Infrastructure

Middleware § Applications reused in

new dynamic ways

§ Services combined from multiple sources

§ Rapid deployment

§ Services route to any available resource

§ Distributed access

SOA Characteristics

© 2012 IBM Corporation 17 • 17

Service Management

Asset Management

Virtualization and Consolidation

Information Infrastructure

Energy Efficiency

Security Business Resilience

Strategy Recognize Interdependencies

Tie to Business Strategy

Architecture and Design Standards and Governance

Implementation and Maintenance

• Define or Refine an IT Strategy aligned with Business Strategies and Initiatives by

• Examining Current & Desired Architectures, Standards and Governance

• Implementing and Maintaining Processes

• Business Initiatives How to start


• БИЗНЕС СТРАТЕГИЯ

• BUSINESS and IT INITIATIVES

• IT PROJECTS

• IT INFRASTRUCTURE

• ?

• ?

Business Resiliensy

Security Energy Efficiency

Information Infrastructure

Virtualisation & consolidation

Assets Management

Service Management

• Company Business Strategy

• ?

• Is your infrastructure able to sustain your IT Projects ?

• Do your IT projects promote business initiatives ?

• Are your initiatives aligned with company business strategy ?

• ?

• ?

• ?

• Prioritize projects, Develop Roadmaps and Recommendations, Define next steps


IT Provider relationship model

•  IT Initiatives Focus Area Matrix: by execution phase (Strategy, Design & Architecture, Implementation & maintenance)

•  Strategic Alignment Assessment: How does the business view IT? Do IT initiatives align with what the business needs from IT?

§  Summary Assessment : Current vs. desired future state assessment of IT capabilities.

§  Customized selected roadmaps: Based on client priority, showing projects by initiative and interdependencies.

§  Key observations and recommendations for IT strategic alignment and infrastructure

§  List of candidate project descriptions: For entries in the roadmap that will incrementally advance IT capabilities towards the desired future state.

§  How would you describe the relationship between the business units and IT?

§  How does the business request services from IT?

§  How important is the cost of a project vs the need to develop a solution that provides leading capability in your industry?


Demonstrating ROI shows the business value of technology/project and the value of the IT Department …


1. Identify Key Performance Indicators (KPIs) for the Organization

2. Capture Metrics for Baseline and Target Environments

3. Calculate Results


.. and can show impact on the financial statement. Expenses - Income Statement

Cost of Goods Sold Materials Production

Total Cost of Goods Sold

Operating Expenses

Selling, General and Administrative

Research and Development Depreciation and Amortization

Utilities Other Overhead Costs

Total Operating Expenses

Interest Expense

Taxes

NET INCOME


SG&A : Reduce maintenance overhead and labor requirements through automation and standardization

Cost of Goods Sold : Reduce material waste and increase production assets reuse through decreased error rates and workload optimization

Interest Expense : Reduce interest expense through postponement of new loans

Depreciation : Reduce depreciation through postponement of capital expenditure

Utilities : Reduce energy consumption (power and cooling) through workload optimization and consolidation


The result: The CIO enables growth & innovation.


• Lower costs including capital and operational expenditures

• Availability of skilled resources to focus on high value innovative projects

•  Improved energy efficiency and reduce idle time---

• Flexible, self-service delivery for users, based on requested qualities of service

• Improved time to market and acceleration of innovation projects

• Rapid response to new business requirements

• Improved risk management and business resiliency

• More efficient pricing and capacity utilization

Flexible Service Delivery

Lower Cost of Running Business

Agile / Optimized Business

Management


The majority of respondents (55 percent) believe

that cloud computing has a lower total cost

Cost of Cloud of ownership (TCO).

2011 Future of Cloud Computing Survey: 417 Survey respondents: 46% vendors, 54% non-vendors

North Bridge www.futurecloudcomputing.net June 22, 2011

Quote source: http://www.businesswire.com/news/home/20110622006602/en/Future-Cloud-Computing-Survey-Reveals-Drivers-Cloud


On average, cloud users report saving 21 percent annually on those applications moved to the cloud.

URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/

Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html

among current cloud users...

according to the AFCOM poll of 360 IT managers and other senior IT executives.


Among current cloud users, 84 percent said they cut application costs by

moving to the cloud.

URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/

Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html

“among current cloud users...”

“according to the AFCOM poll of 360 IT managers and other senior IT executives.”

© 2012 IBM Corporation 26 • 26 • Cloud Computing • 10/16/12

Thank you!

For more information, please visit: ibm.com/cloud or contact me at: [email protected] http://twitter.com/piotrpietrzak

tapping current it trends to boost company performance

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