IBM and Softlayer

© 2013 IBM Corporation

IBM and Softlayer: Cloud Point of View for Telecommunications

July 2013 - Version 0.2

© 2013 IBM Corporation2 IBM Internal Use Only

Global Leader, World-Class Technology


Global footprint

• 13 data centers

• 17 network PoPs

• Global private network

100,000SERVERS

21,000CUSTOMERS

22,000,000DOMAINS


Two major application deployment models have emerged in cloud

adoption

Scalable

Virtualized

Automated Lifecycle

Heterogeneous Infrastructure

Cloud Enabled

Elastic

Multi-tenant

Integrated Lifecycle

Standardized Infrastructure

Cloud Native

+Existing

Middleware

Workloads

Emerging

Platform

Workloads

Compatibility with existing systems

“Systems of Record”

Exploitation of new environments

“System of Engagement”

Softlayer

SCE+


IBM SmartCloud Enterprise+

Several requirements can be used to determine the solution that

is best able to meet your clients needs on day 1

IaaS Capabilities Managed Services

Requirements

Other

Requirements

• Cloud Enabled

• pSeries

• X Series (Win /

Linux)

• Tier 1 storage

• Managed

Applications

• ITIL

• Data hosting

location sensitive

IaaS Capabilities Managed

Services

Requirements

Other

Requirements

• Cloud Native

• Intel (Win / Linux)

• Object Storage

• Unmanaged

• Customer

managed through

APIs

• Hosted in US,

Netherlands,

Singapore

© 2013 IBM Corporation6 IBM Internal Use OnlySource: IBM Institute for Business Value (IBV) Analysis

Opportunities in Telecommunications

• …and the constant change of the communications industry today represents

tremendous growth potential.

Mobility

50 billion mobile deviceswill be connected to

the internet by 2020

Customer advocacy

55 percent

of CSP customers

worldwide who are considered

“antagonists” and can be

converted to “advocates”

Data services

18 timesincreaseincrease in data services

by 2015

New markets

$126 billionCloud market

potential for cloud-based

services by 2015

• Dramatic forces across the industry require new approaches to succeed in a

dynamic market.

Disruptive competitors drive down

profit margins

Advances in technologies like cloud

and next-gen networks challenge legacy

systems’ ability to keep pace

Mobility and data services growth

cause an unprecedented network traffic

and data explosion

Empowered customers

expect a superior communications

experience anywhere, anytime,

on any device

Active government involvement means

increasing regulations


Industry Challenges

Industry Imperatives

Key Cloud Use Cases

Suggested Cloud Entry Points

• Disruptive competitors drive down profit margins

• Advances in technologies like cloud and next-generation networks challenge legacy systems’ ability to keep pace

• Mobility and data services growth cause an unprecedented network traffic and data explosion

• Empowered customers expect a superior communications experience anywhere, anytime on any device

• Active government involvement means increasing regulations

• Build smarter networks

Integrate analytics and intelligence across the network

domain

• Create & Deliver smarter services

Deliver smarter services that generate new sources of

revenue

• Personalize Customer Engagements

Deliver a differentiated customer experience across the

commerce lifecycle

• Transform operations

Drive Smarter Operations to achieve business and service

excellence

Accelerate time to market with Cloud Platform Services• Develop and Deploy cloud applications• Develop and Deploy cloud applications (SAP)

Cut IT expense and complexity through a Cloud Enabled Data Center• Implement an Advanced Cloud Infrastructure• Access Compute and Storage as a Service

Gain immediate access with Business Solutions on Cloud• Reducing the TCO of B2B integration• Digital Marketing Optimization• Reducing the TCO of implementing Operation Centers

Innovate business models by becoming a Cloud Service Provider• Build the Cloud Infrastructure• Enable Applications in the Cloud• Extend Applications in the Cloud

Telecommunications Cloud Summary

Cloud Service Provider

SaaS & Integration

Automated Deployment

Prototyping, Experiment

Low High


Build Smarter Networks

Create & Deliver Smarter Services

Personalize Customer Engagements

Transform Operations

Cloud Value* per Imperative

*From low to high: the potential value client may realize from cloud solutions

• Leverage already available SaaS packages, such as ticket management services.

• Benefit from the cloud flexibility & elasticity by deploying Big Data analytic environment based on

Hadoop or real-time stream based systems to analyze events coming from the network.

• Use the cloud to accelerate the deployment & configuration of rule based and case management engines,

such as Cognos or ILOG.

• Deliver M2M enabled solutions leveraging some of our SaaS offerings such as IOC and associated verticals

for water management & transportation.

• Accelerate business value and enable new business opportunities by delivering cloud services to their

subscribers, using offerings such as CSP2, CSP2 essentials, SCE White Labelling, SoftLayer, or partners like

Parallels.

• Speed up transformation and minimize the risks and investments by using marketing, analytical and

collaborative solutions available As a Service.

• Multi channel experience require web technologies which have great advantage to be deployed on a

cloud for operational gains and for resolving potential scalability needs.

• Leverage available Sterling SaaS offerings to support order management.

• Use the Cloud for Development & Test, that provide high potential for gain and deployment ease.

• Use cloud automated deployment capabilities for web based applications, such as portals using pattern

based offerings such as IBM PureSystems, Workload Deployer or SmartCloud Application Services offerings.


Four key use cases emerge as predominant from this study and should be the starting point for any cloud

strategy: Automated Deployment, SaaS, Prototyping, Experiment and Cloud Service Provider.

1. Automated Deployment:

Provide the ability to deploy and manage complex environments like Asset Management, Web based

solutions such as portals or commerce..

2. SaaS:

Multiple solutions required for the telecommunications imperatives are specialized software which

bring limited value to be run and operated in house. Business Intelligence, predictive analytics,

marketing operations are a few examples of already available SaaS solutions.

3. Prototyping, Experiment

Speed the adoption and personalization of specific components.

4. Cloud Service Provider

Other identified use cases include:• HPC & Big Data for the Big Data (Hadoop, BigInsights, Streams) analytical needs

• Dev &Test for the integrated multi-channel experience solution

• Archive, Backup, Disaster Recovery to provide flexible and cost effective solution to store, manage, and protect CSP

information using SmartCloud Storage Backup, SmartCloud Storage Access offerings

* The list might not be exhaustive.

Include offerings that should leverage

cloud.

** The size of the bar reflects the

relative importance of the use case for

the entire set of solutions.

Potential for Cloud Based Transformation

Cloud Use Case Importance**Benefits Speed up the deployment of solutions and lower the operational costs during their life cycle

Associated Offerings* WebSphere Commerce, Cognos Enterprise, Intelligent Operation Center, SmartCloud Service Delivery for Electronics,

SmartCloud for SAP, BPM, Opennet, IBM MDM

Benefits Accelerate the company transformation and keep the TCO at an acceptable level.

Associated Offerings* SmartCloud Control Desk, Intelligent Operations Center, Water & Transportation Management, Asset Management, Tririga,

Cast Iron, SmartCloud Service Delivery for Electronics, Coremetrics, SPSS, Unica, Sterling, SmartCloud for Social Business.

Benefits Leverages the resource availability, fast deployment capability, low risk nature of cloud deployments.

Associated Offerings* ILOG, Cognos, Worklight or Streams

Benefits Generate additional revenue.

Associated Offerings* CSP2, CSP2 essentials, SCE White Labeling, SoftLayer, Parallels (BP)

1

2

3

4


1-SaaS & Integration 2- Automated

Deployment3-Prototyping,

Experiment, …

IBM SmartCloud Control Desk

IBM SmartCloud for Social Business

IBM CastIron

IBM Emptoris

IBM Service Delivery for Electronics

IBM Intelligent Operations Center

IBM WebSphere Commerce

IBM Coremetics

IBM SPSS

IBM Unica

IBM Sterling B2B Integration

IBM Sterling Supply Chain Visibility

Platform as a Service Technologies

Workload Deployment & Automation

Infrastructure as a service Technologies

Provisioning & Lifecycle Management

Monitoring & Performance

Usage & Accounting

IBM SmartCloud ServicesPlatform Services

Managed Hosted Cloud

Infrastructure as a Service Technologies

Provisioning & Livecycle Management

IBM SmartCloud ServicesInfrastructure ServicesPublic Cloud


Based on the above use cases, the choice of Cloud infrastructures for Telecommunications is dictated by the ability

to automate / deploy complex applications, provide cloud services to subscribers, integrate with network, and the

need to support the flexibility to rapidly launch, test, configure or experiment new applications.

Following SmartCloud offerings are suggested:

• CSP2 (Cloud for Service Providers) and CSP2 Essentials are carrier grade cloud offerings that contains

enhancements to provide a multi-tenancy environment that allows both internal and external users to exist on the

same cloud and management platforms.

• For deployment on existing hardware: SCP (SmartCloud Provisioning) or SCO (SmartCloud Orchestrator),

and for a bundled optimized solution: PureApplication Systems are potential candidates for private clouds.

• SCE (SmartCloud Enterprise) and Softlayer are public cloud or hosted private cloud options for infrastructure

services. White labelling and reselling are further options to be considered to become cloud service provider.

• SmartCloud Storage Access to provide cloud storage infrastructure

• SCE+ (SmartCloud Enterprise+) to extend managed services from traditional hosting to cloud

Business Analytics and Optimization

Social Business

Smarter Cities

Business Processes as a Service

Use Cases*

Cloud

Components

Cloud

Offerings

* These are the most

important Use Cases for

Telecommunications (see

previous slide)

Cloud Deployment Options for Key Use Cases

Managed

Services

4- Cloud Service

Provider

Platform as a Service Technologies

Workload Deployment & AutomationApplication Integration & Brokering

Infrastructure as a service Technologies

Provisioning & Lifecycle ManagementStorage ManagementNetwork ManagementEnd User Support Monitoring & Performance

Usage & Accounting

IBM SmartCloud ServicesInfrastructure ServicesPublic Cloud



WIN Reference: China Unicom (Do not reference client name outside of IBM)

Web link

The Beijing branch of China Unicom struggled to estimate its actual operating conditions, because business operations expanded while the allocation of resources remained the same. The company underused or was unable to reuse or share many pre-deployed resources, for example, and it dealt with insufficient computing power for its existing infrastructure. Meanwhile the company was adding new lines of business and consequently, merging many physical devices into its operating environment, resulting in increasing operating costs.

HeBei engaged IBM to implement IBM CSP2 solution, which will be integrated closely with the customer’s SaaS platform to form an end-to-end cloud service provider platform. IBM provided consulting services and recommendations from a strategic and technical point of view.

The solution includes service provisioning, resource sharing and adjusting among the resource pool to increase system utilization. It also includes a built-in automation engine.

Benefits:

With the CSP2 solution, HeBei experienced the following benefits:

• Automation: advanced automation built into the industry’s most scalable,

carrier-grade cloud offering

• Visibility: unmatched visibility into cloud services, customer experience,

and service utilization

• Control: optimized resources to support business needs by establishing

control over the infrastructure

Primary Contact: Cynthia Lawton

Industry Example of Cloud Usage by Imperative

Imperative: Create & Deliver smarter services

Cloud Use Case: Cloud Service Provider

Cloud Entry Point: Provide Infrastructure and Platform Services to customers


WIN Reference: NTT

To cut costs and respond to fierce

competition in the wireless-

communications industry - including

competition between its own

companies - Nippon Telegraph and

Telephone Corp. (NTT) needed to

establish a much simpler, more

efficient IT infrastructure. The

company planned to integrate

hundreds of servers and

approximately 200 NTT East and NTT

West data centers. It sought a partner

that could provide the technology,

expertise and implementation

services for a smooth transformation.

NTT transitioned to a consolidated, private-cloud IT infrastructure. As a first step to the

solution, a total-cost-of-ownership (TCO) analysis of hundreds of NTT servers was

performed, with a focus on workload optimization. The team then proposed using the

advanced virtualization functionality of the IBM System z platform to build a private-cloud

environment, using Tivoli software components to centralize systems management, and

manage and maintain the availability of the server cluster.

Benefits:

By implementing a private-cloud infrastructure NTT gained a simpler, more efficient IT

infrastructure. As a result, the client expects to:

- Consolidate its data centers by approximately 97.5 percent - from 200 data centers into

five sites - over the next three years

- Reduce its JPY50 million annual licensing fee for Oracle software by 70 percent

- Reduce TCO by 30 percent

Web link

Primary Contact: Takayuki Saito


Imperative: Transform operations

Cloud Use Case: Automated Deployment

Cloud Entry Point: Cut IT expense and complexity through a Cloud Enabled Data Center


Wireless Service Provider in Thailand

Web link

A wireless-service provider in Thailand

reduces campaign-design time by 50

percent, increases its campaign

volume by 25 percent and reduces

high-value customer churn by 50

percent when it implements a suite of

IBM Unica software to improve the

consistency of customer

communications

The wireless-service provider implemented IBM Unica Campaign software as a

multichannel campaign-management solution. The client uses the software to design

and execute all marketing programs and ensure the consistency of customer

communications. The client also implemented IBM Unica eMessage software to

deliver offers over email and access response data in near-real time. Finally, the client

installed IBM Unica Distributed Marketing software for sophisticated cross-campaign

optimization. The client uses the solution to coordinate all customer preferences and

communications across departments and channels.

Benefits:

By implementing a suite of IBM Unica software, the provider reduced high-value

customer churn by 50 percent while significantly increasing marketing productivity.

The client also significantly reduced campaign-design and -testing time by 50 percent,

enabling marketers to integrate customer data for more targeted communications,

generating response-rate increases of 10 percent. The provider improved

productivity and can now execute marketing campaigns automatically, enabling it to

increase its campaign volume by 25 percent using the same resources. The client also

improved its time to market and enabled users to analyze customer data before and

after executing campaigns. The solution also helped the client improve the

consistency of customer communications.

Primary Contact: Priscilla E. Wiederhold


Imperative: Personalize Customer Engagements

Cloud Use Case: SaaS (Unica)

Cloud Entry Point: Gain immediate access with Business Solutions on Cloud


Vietnam Technology and

Telecommunication (VNTT)

wanted to create a shared central

infrastructure that could deliver

flexible services to small and mid-

sized businesses, enabling the

businesses to access high-quality

IT services with a pay-as-you-use

pricing model. The aim for VNTT

was to foster innovation and

growth in the Vietnamese

economy.

VNTT built a private cloud solution based on IBM hardware and software. The IBM

cloud computing solution offered both a virtual infrastructure and software-as-a-

service (SaaS) capabilities. VNTT also implemented IBM Service Delivery Manager

software which provides the necessary software components to implement cloud

computing. The software provides preinstalled capabilities that includes: a self-

service portal interface for reservation of computer, storage and networking

resources; automated provisioning and de-provisioning of resources; pre-packaged

automation templates and workflows; service management for cloud computing; real

time monitoring for elasticity; and backup and recovery.

Benefits

By implementing IBM BladeCenter hardware, IBM Linux and IBM Tivoli software to

create a cloud environment, VNTT has accelerated the creation of new virtual

infrastructures and SaaS solutions

Web link

Primary Contact: Tran Viet Huan


WIN Reference: Vietnam Technology and Telecommunication

Imperative: Create & Deliver smarter services

Cloud Use Case: Cloud Service Provider

Cloud Entry Point: Innovate business models by becoming a Cloud Service Provider


Cut IT expense and complexity

through a

Cloud Enabled Data Center

Accelerate time to market

with

Cloud Platform Services

Gain immediate access with

Business Solutions on Cloud

Innovate business models

by becoming a Cloud

Service Provider

Develop and Deploy cloud

applications

To automate complex

deployments with HA and auto

scaling. Facilitates application life

cycle operations

Develop and Deploy cloud

applications (SAP)

Deployment of SAP solutions on

SCE+ or private cloud

Reducing the TCO of B2B integration

To reduce the total cost of ownership of B2B

integration, accelerate B2B collaboration and

facilitate growth

Digital Marketing Optimization

To provide a highly personalized and

compelling customer experience across all

marketing channels

Reducing the TCO of implementing

Operation Centers

To provide timely and efficient services to

governments and agencies

To acquire new capabilities more quickly

Implement an Advanced Cloud

Infrastructure

To provide fully integrated &

scalable cloud-based infrastructure

and services.

To enhance scalability, resiliency

while allowing higher revenue

For Dev & Test activities, and to

deploy applications on premises

Access Compute and Storage as a

Service

To provide rapid access to security-

rich, enterprise-class virtual server

environments and a flexible and

cost effective solution to store,

manage and protect data.

Providing Infrastructure

and Platform Services to

customers

Eliminate customers’ need

to own and operate

infrastructure and

software licenses.

IBM Internal Use Only

Recommended Cloud Entry Points and Projects*

* These are the recommended

Cloud Entry Points and Projects according to the Use Cases identified previously


Next Steps Considerations

Develop cloud strategy and Roadmap

� Assess cloud deployment models, service options and workloads

� ROI Analysis

� Choose initial project

Start with recommended Cloud Entry Points and Projects

� Gain immediate Access with Business Solutions on Cloud

� Providing Infrastructure and Platform Services to customers

� Implement an advanced cloud infrastructure

� Access compute and storage as a Service

� Develop and Deploy Cloud Applications

� Develop and Deploy Cloud Applications (SAP)

Roll out cloud across the enterprise

� Enable additional workloads on private cloud

� Add new users

� Use trusted public cloud services to supplement business and IT workloads

Pilot and

Deploy

Extend and

Evolve

Plan and

Prepare �

�

�


Cloud Use Cases definitions

Every solution brings its industry specific business values as highlighted by the imperative. Leveraging cloud services will bring a mix of

additional values (around TCO, flexibility, speed, agility…) to the solution which depend on the Cloud Use Case. For example, Dev& Test is

a well known use case for cloud, as the rapid self service provisioning of infrastructure enables to speed up the development process and

to adjust the capacity to the current activity. SaaS is another use case as it enables businesses to acquire rapidly new solutions at a lower

TCO and let them focus on their core business.

We have defined following reference cloud use cases to better classify solutions and the associated cloud added values.

Cloud Use Case Definition

Cloud Service Provider Deliver cloud services to their subscribers, such as cloud infrastructure, cloud aggregation platform, managed solutions,

software as a service solutions

BPaaS BPaaS refers to the outsourcing of entire business processes. This service is provided by a mix of software and

dedicated or shared staff

SaaS & Integration This includes Software provided as a Service and the ability to integrate SaaS with on premises systems

Dev & Test This use case includes different aspects like continuous integration, on demand disposal of development and test

environment, load testing, etc… which all enable to speed up the processes and to increase the final quality.

HPC, Big Data This includes the type of job oriented workloads which require typically a large set of machines. These workloads often

exhibit variable load (either periodic or unpredictable) and may require transient increase of capacity.

Virtualized Desktop This pattern is about providing virtualized desktops from the cloud, thus lowering administrative costs.

Prototyping,

Experiment

This outlines the value of cloud to provide on demand capacity to prototype or evaluate new packages or to test and

experiment analytical queries

Automated

Deployment

This usage includes the ability of cloud to automate the deployment of complex middleware or environment (multi-tier

applications). This speeds the application deployment and lowers the cost of operations

Scalable Applications This is about the ability to automatically scale or spill over large applications (Commerce, Web apps) in order to manage

and deploy infrastructure capacity during peak and of-peak periods

Archive, Backup,

Disaster Recovery

These are IT services advantageously enabled by the cloud. Benefits are cost savings and operational efficiencies


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