© 2009 IBM Corporation June 18, 2010 Cloud Computing and Smarter IT Delivery Carlos Passi Assistant...

© 2009 IBM Corporation

June 18, 2010

Cloud Computing and Smarter IT Delivery

Carlos Passi

Assistant Controller, Business Transformation

© 2010 IBM Corporation2

Industry Buzz: Moving to the Cloud…

“While definitions, taxonomies and architectures are interesting, it is important to understand the value proposition for cloud computing.”

- Open Cloud Manifesto

“We view cloud computing as really “server virtualization with a purpose”, … We believe that most large enterprises are intrigued with cloud computing but will choose to deploy “internal clouds” rather than tap into the “public cloud.”

- Barclays Capital (May 18, 2010)

“CIOs are warming up to the Cloud, according to the following trends from our recent survey of 50 CIOs. … Virtualization is moving into production environments as CIOs become more comfortable with the stability and reliability of shared resources. …”

- Morgan Stanley (May 20, 2010)

“Cloud Computing has the potential to change all aspects of the retail value change, resulting in advancements that could create a dramatic shift in the cost model of the modern retail community.”

- Association for Retail Technology Standards (Dec. 12, 2009)


CIOs are warming up to the Cloud… The 2010 CIO Survey (of 50 CIOs) conducted by Morgan Stanley indicates that: CIOs plan to virtualize 55% of their production server environment next year, up from 42%

today. By next year, half of the CIOs surveyed plan to virtualize >10% of their PC environment,

which could translate to a doubling of the number of virtualized PCs. 56% of CIOs plan to increase storage spend next year based on their virtualization plans,

while only 16% plan to reduce spend.


,

E-mail

World Wide Web

TCP-IP

E-business

Grid Computing

Internet

Centralized ComputingMainframe

Supercomputers

Distributed Client-Server

Personal Computer

Unix-based Workstations

Web 2.0

Cloud Computing

Disruptive Technologies and the Internet Revolution


Cloud Computing: Evolution:

SprawlPhysical

Consolidation Virtualization Cloud

• Standardization• Automation

• Virtualization

• Standardization• Automation

• Virtualization


Steady CAPEX spendSteady CAPEX spend

Source: IBM Corporate Strategy analysis of IDC data

Unceasing management and energy costsUnceasing management and energy costs

To make progress, delivery organizations must address the server, storage and network operating cost problem, not just CAPEX

Global Annual Server Spending (IDC)

$0B

50

100

150

200

250

300

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

New system spend Management and admin costsPower and cooling costs

A Crisis of Complexity. The Need for Progress is Clear.


What is Cloud Computing? It’s often defined from the consumer’s value viewpoint

Convenient, on-demand access to standardized

offerings

… Rapidly provisioned … Flexibly priced … Elastically scaled

And often …

• “It’s cheaper”• Rent vs. buy• You manage the data center for me


Factors That Drive Cloud Economics

Virtualization of Hardware

Standardization of Workloads

Utilization of Infrastructure

Automation of Management

Virtualized environments only get benefits of scale if they are

highly utilized

Drives lower capital requirements

Less complexity allows increased automation

Take repeatable tasks and automate

Lab

or

Lev

erag

eIn

fras

tru

ctu

re

Lev

erag

e

Self ServiceClients who can “serve themselves” require less support and get services


Enterprise Benefits of Cloud Computing

Server/Storage Utilization 10-20%

Self service None

Test Provisioning Weeks

Change Management Months

Release Management Weeks

Metering/Billing Fixed cost model

Standardization Complex

Payback period for new services Years

70-90%

Unlimited

Minutes

Days/Hours

Minutes

Granular

Self-Service

Months

Legacy environments Cloud enabled enterprise

Cloud accelerates business value across a wide variety of domains.

Capability From To


Cloud Computing Delivery Models

ORGANIZATION CULTURE GOVERNANCE

Flexible Delivery Models

Public …• Service provider owned

and managed.• Access by subscription• Delivers select set of

standardized business process, application and/or infrastructure services on a flexible price per use basis.

Private …• Privately owned and

managed.• Access limited to

client and its partner network.

• Drives efficiency, standardization and best practices while retaining greater customization and control

Cloud Services

Cloud Computing

Model

.… Customization, efficiency, availability,

resiliency, security and privacy

.…Standardization, capital preservation,

flexibility and time to deploy

Hybrid …• Access to client,

partner network, and third party resources


A market assessment panel indicates Private Cloud has more near term appeal than Public Cloud across IT activities and workloads

12 August 2009 I IBM ConfidentialMAP Cloud Computing Report

Currently Using/Planning to Use Would Consider In The Next 12 Months/12+Month

Key

Public Cloud (30% Appeal on Avg.)

Source: MAP Cloud Computing Study

Private Cloud (64% Appeal on Avg.)

Ordered based on current/planned usage

Web ConferencingCRM/Sales Force

Business continuity/DRApplication streaming

Data center network capacityUnified communications

WAN capacityDev't environment tools

Infra capacity/provisioning Data archiving/preservation

Test environment infra.Data mining/analytics

Data warehouses/martsData backup and recovery

Transactional databasesVoIP infrastructure

Industry-specific applicationsERP

e-mailServersStorage

Application serversSecurity

Service/help deskDesktop

37%40%41%42%42%43%43%44%44%45%45%46%46%47%47%48%49%49%50%50%51%51%51%53%53%

30%31%

34%39%

32%35%

26%37%35%32%35%37%

32%28%30%27%

30%27%25%25%27%29%

24%27%

23%

32%29%

18%18%

14%17%

23%15%16%17%

12%12%13%15%

9%16%18%18%22%

13%14%17%

14%15%

12%

39%32%

43%40%

35%40%32%

38%42%43%

35%32%31%

36%28%

33%30%28%

32%27%

34%33%

30%34%

22%


EnterpriseEnterpriseData Center

Private Cloud

EnterpriseData Center

Provider Operated

Managed Private Cloud

Hosting Center

Hosting Center

Hosted Private Cloud

Enterprise A

Shared Private Cloud

Cloud

Enterprise owned and operated

Enterprise owned and operated

Enterprise owned; Provider operated Enterprise owned; Provider operated

1 Customer/Provider owned and operated

(single tenant)

1 Customer/Provider owned and operated

(single tenant)

Provider owned and operated

(multi-tenant)


(multi-tenant)

Enterprise BEnterprise

C

1 2 3 4

Public Cloud

Cloud


(multi-tenant)


(multi-tenant)5

User A

User B

User C

User D

User …

Private Cloud Shared Private Cloud Public Cloud

Cloud Services delivered publicly toend users / secure, enterprise-class

Cloud Servicesdelivered privately toEnterprises / virtualseparation of tenants

Customer owns and pays for infrastructureand has unlimited exclusive access

Service provider owns infrastructure and customer has shared access and pays by usage

Cloud Delivery Models


Delivery Models & Economic Model Implications

Provider Managed Cloud – On

Customer Premise

Provider Managed Cloud -, but

“Private” Customer Environment

Provider Managed Cloud – Fully Shared Model

Hardware Optimization

Virtualization

Over-Commitment

Improved Utilization

Datacenter Optimization

Labor Optimization

Standardization

Automation

Clo

ud

Eco

no

mic

Dri

vers


Public Cloud

Trusted Provider Cloud

• Federated Identity• Federated ESB• Event Infrastructure• Secure Data Pipe

Enterprise Data Center

On–premise Private Cloud

Dynamic InfrastructureService

Request & OperationsService Provider

ServiceCreation

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess

Service Delivery Platform “Operational Support Systems (OSS)”

Business Support Systems (BSS)

Infrastructure ServicesInfrastructure ServicesInfrastructure Services

Software Platform ServicesSoftware Platform ServicesSoftware Platform Services

Application/Business Process, Assembly and Information Services


End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Bas

ed In

terf

aces

Cloud Services

Cloud Management Platform

Dynamic Infrastructure

Service Request & Operations

Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess







End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Bas

ed In

terf

aces

Cloud Services


Open Standards enable Cloud Ecosystem

Community Cloud


Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess







End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Bas

ed In

terf

aces

Cloud Services



Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess







End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Bas

ed In

terf

aces

Cloud Services



Service Provider

ServiceDefinition

Tools

ServicePublishing

Tools

ServiceReporting &

Analytics

ServicePlanning

Role-basedAccess







End Users,Operators

ServiceCatalog

OperationalConsole

Stan

dard

s Bas

ed In

terf

aces

Cloud Services


Enterprises will connect to many clouds


Virtualized Traditional - Extensions of Java Application Servers, Support for ‘Traditional’ Transactional Workloads

– Moving existing workloads to the cloud– Requires best practices, patterns, tooling

Database Centric - data driven + small computation on small data– With multi-tenancy attractive for enterprise and service providers

Content Centric - computation needs to be close to data + large computation on large data

– Data Mining, Analytics, Data Warehouse,

Loosely Coupled - computation and data are separate– Can be addressed by existing middleware, but ‘relaxed consistency’ models emerging

Storage Analytics - Data and Storage Integration

Workloads have different technical affinity to the cloud model


File & Print

Data Warehousing

Data Mining

Systems Mgmt.

SME ERP/SCM/CRM

Some workloads are better suited for cloud than others

Lower Gain From Cloud

Higher Gain From Cloud

Lower Pain To Cloud Delivery

Higher Pain To Cloud Delivery

Web Serving

Numerical

[Low Data/Compute]

Numerical

[High Data Transfer]

Collaboration

Application Dev’t. & Test

“Database Centric” Architecture

“Content Centric” Architecture

“Loosely Coupled” Architecture

“Virtualized Traditional” Architecture

“Analytics” Architecture

Virtual Desktop

LE - TransactionProcessing

LE - ERP/SCM/CRM

Start Here


Cloud is at the pinnacle of Gartner’s Hype Cycle expectations for Emerging Technologies …

The Hype Cycle provides a cross-industry

perspective on the technologies and trends

IT managers should consider in developing emerging-technology

portfolios

The Hype Cycle provides a cross-industry

perspective on the technologies and trends

IT managers should consider in developing emerging-technology

portfolios

State of the Art


Technology has changed the computing landscape – cloud next evolution

Cloud offers the promise of a new delivery model for IT, one that is scalable and on demand

The industry still in its infancy – concerns about security

Benefits are workload dependent

Competition for cloud computing will be fierce given the growing market opportunity

In summary…

© 2009 IBM Corporation June 18, 2010 Cloud Computing and Smarter IT Delivery Carlos Passi Assistant...

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Transcript of © 2009 IBM Corporation June 18, 2010 Cloud Computing and Smarter IT Delivery Carlos Passi Assistant...