Integrating Private Cloud into Your Enterprise What is the Most IT Economical Way to Build your Private Cloud for your Enterprise?

Christopher T. von Koschembahr, Senior Management ConsultantIBM Eagle Team - IT Economics Practice

Melissa Maheux @solutionmelVice President, Sales TriDatum Solutions

Please Note:

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• IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion.

• Information regarding potential future products is intended to outline our general product direction and it should not be relied on in making a purchasing decision.

• The information mentioned regarding potential future products is not a commitment, promise, or legal obligation to deliver any material, code or functionality. Information about potential future products may not be incorporated into any contract.

• The development, release, and timing of any future features or functionality described for our products remains at our sole discretion.

• Performance is based on measurements and projections using standard IBM benchmarks in a controlled environment. The actual throughput or performance that any user will experience will vary depending upon many factors, including considerations such as the amount of multiprogramming in the user’s job stream, the I/O configuration, the storage configuration, and the workload processed. Therefore, no assurance can be given that an individual user will achieve results similar to those stated here.

• What is Cloud?

• 3 Step approach to cloud

• Implement the Best Hybrid Cloud

• Customer examples

• Partnering with IBM

Agenda

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• Elastic Scaling– Provision additional servers on demand

On/Off Capacity on Demand• Faster Time to Value

– Self Service purchase and provisioning of cloud resources in minutesSelf Service Implemented on Private Cloud via IBM Cloud Orchestrator

• Resiliency– Cloud providers monitor and manage cloud instances– Multiple availability zones enable easy DR

Built in RAS, Parallel Sysplex, CBU Capability, PowerHA, Geo Clustering• Lower TCO

– Low instance costs on Public CloudPrivate Cloud on IBM Enterprise Servers provide a lower TCO

What is Cloud?

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IBM Enterprise Servers have these features already built-in

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Cloud Types and Offerings

Cloud models defined by •SLA ownership*•On-Prem vs. Hosted•Tenancy**

*- Public cloud providers typically do not provide a strong SLA. There are no guarantees for uptime, provisioning, bandwidth etc. ** - Multi-tenant instances are prone to performance issues due to noisy neighbors

You may already have a Private Cloud!

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IBM Enterprise Servers vs. Public CloudSimilar Considerations as Offload to x86

Value Proposition Enterprise Servers Distributed (x86 based) servers /Off-Prem Private Cloud on SoftLayer

Public Cloud Servers

Software Costs Low (fewer cores)

High (more cores)

High (more cores)

Admin Cost per workload Low Medium/Low High (DevOps costs can add up)

DC Costs Low Medium/None N/A (built in)

Reliability Very High Medium Low in most cases

SLA Ownership High (controls delivery)

High (controls delivery)

Low (no control)

Network and Bandwidth costs

Low Medium/Low High

Capital Outlay Capex Capex/Opex Mainly Opex

Provides lowest cost or risk

Drives highest cost or riskIncurs incremental cost or risk

• Step 1 – Perform a Health Check

• Step 2 – Adopt new IBM Offerings to enhance your Private Cloud

• Step 3 – Speak the “Language of the Cloud”

3 Step Approach to the Best Private Cloud

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Embrace Hybrid Clouds using SoftLayer Off-Prem Private Cloud!

• Evaluate your best practices– Are your servers configured correctly?

• Evaluate your HA and DR confirmation• Take advantage of Parallel Sysplex, Power HA etc.• Ensure correct LPAR configuration• Fit for Purpose – choose the right platform for the right task

– Have you benchmarked your IT costs?• Current hardware and software can dramatically lower TCO

– Is your chargeback model aligned with your IT costs?• Evaluate your SLA

– Easily beat SLA’s (if any) on the public cloud– Ensure speedy problem resolution

Step 1 – Health Check

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• IBM Cloud Orchestrator– Integrate with existing environments – OpenStack, PowerVM, VMWare, zVM– Deliver self-service, provision and scale cloud resources– Standardize and automate provisioning with patterns

• IBM Wave– Intuitive graphical workspace with powerful drag-and-drop capability– Automatically detects all resources in the environment– Simplify and automate management

• IBM Offerings for Enterprise Power

– PowerVM Enterprise Edition for advanced virtualization and cloud capabilities

– PowerKVM - Open Virtualization for Power Linux Servers

– Open Power Cloud on SoftLayer

• Leverage IBM Hardware and Software bundles

– IBM LinuxONE Solutions for Cloud

– IBM Power Systems Solution Edition for Cloud

Step 2 – IBM Offerings For Your Private Cloud

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• Increase adoption of your Private Cloud with the right terminology

• Your IT team provides “IaaS”, “PaaS” and “SaaS”

– Using a “Self Service” model in most cases

– Reducing “Provisioning Time” from days to minutes

– Your “Chargeback Costs” are “Instance Costs”

– Your “Instance Costs” are lower than Public Cloud Instance costs

– “Instance Costs” include “Cloud Backup and Recovery”

– You have multiple “Availability Zones” implemented via DR sites

• You leverage a “Multi-Tenant” environment to keep costs low

– Your security is better than a public cloud!

Step 3: Speak the “Language of the Cloud”

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• A well run private cloud usually meets most workload demands• Hybrid (public+private) clouds can augment capacity in some cases

– Seasonal Workloads on Public Clouds without Capex

– Test and QA

• POC/New Workloads that require a large capacity

• Dynamic scaling up and down as development lifecycle evolves

– Commodity IT – Email, Portal etc.

– Temporary capacity for High Performance workloads

• “Cloud bursting” for certain compute intensive workloads (e.g. HPC)

– Growth mode companies – Save CAPEX during growth

Embrace Hybrid Clouds

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• Understand what’s included– Bandwidth

– Support costs

– Support for the right standards

– Firewalls, load balancers, IP address etc. are not always free

– Instances don’t always include durable storage

• Upfront commitment– Paying up for reserving instances is CAPEX!

• Instance flexibility– Can you buy or build an instance to suit your needs?

Selection Factors for Cloud Providers

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Hybrid Cloud with SoftLayer; The Best Response to Market & Client Demands

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• Market Demands: – New Customers = New Geographies – Seasonal Workloads = Dynamic Scalability – Capacity to Growt Quickly = Faster Time to Value

• Service Provider Vetting – Evaluate options, dependencies – Incumbents, New Entrants

• Engagement Summary– Overview Differentiators Architecture IT Economics Study

Video Conferencing Provider uses Hybrid Cloud with SoftLayer to expand global presence

Solution •Move additional workloads to SoftLayer •Hybrid strategy with On-Prem DB for authentication•Video conferencing infrastructure on SoftLayer•Easy scaling when needed•Lower bandwidth costs

ClientA North American based Video Conferencing Provider needed to increase global presence globally while maintaining costs. The client needed a cloud platform supporting the demanding needs of video conferencing.

BenefitSoftlayer hybrid solution provided lowest TCO, saving an estimated $0.2M over three years compared to AWS based solution.

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Solution •Stay with IBM strategic outsourcing organization•Continue building out on On-Prem cloud•Adjust internal charge back costs to reflect actual costs

State Government Agency chooses IBM managed cloud over AWS

ClientA U.S. state government agency running an On-Prem cloud solution managed by IBM was considering a move to AWS. Other state agencies cited an abundance of AWS standards and certification support as a potential reason to use AWS.

Benefit•Lower TCO demonstrated with existing On-Prem offering vs. AWS, ~ $20K savings monthly•IBM demonstrated support for standards that mattered to the client•IBM solution includes free bandwidth•Virtualized On-Prem bare metal servers offer higher value when compared to AWS instances

Service Managed On-Prem AWSHardware $ 299,857 $ 264,960 Storage $ 15,983 $ 6,284 BUR $ - $ 451 Security - NID $ - $ 68,976 DR Testing $ - $ 14,987 Software $ 28,598 $ - Bandwidth $ - $ 7,987 Total $ 344,438 $ 363,645

Monthly costs15

Solution •Move workloads to SoftLayer. The company’s On-Prem (Chicago, IL datacenter) costs for networking, electricity, floor space and on-site engineering resulted in a higher TCO.

•DR: On-Prem solution necessitated separate DR site. SoftLayer provided provision of servers in a different DC with suitable recovery time for non-production workloads.

•HA: A failed instance would be easily replaced at no-cost in SoftLayer solution.

•Workload usage: SoftLayer costs aligned linearly with scale-up and scale-down

Midwestern Insurance Company reduces cost of dev/test environment using SoftLayer

Client A large insurance company intended to deploy its dev/test workloads running on four x86 servers to a public cloud to reduce IT spend. Initial internal analysis indicated that a cloud solution would be more costly than deployment in its On-Premises environment.

Benefit Savings of $148K over five years resulting from use of SoftLayer to host dev/test workloads with non-production HA/DR requirements on x86 servers.

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Client A global services provider with growing geographical demands used an annual Capex planning model to serve thousands of clients world wide. Long lead time to deployment was costly and ineffective for changing demands.

Benefit •Savings of ~$17.7M over ten years for one set of workloads by moving to a cloud infrastructure. •Reduced FTE and Capital expense by aligning IT costs to time of business demand•SoftLayer functionality improved time to delivery

Solution Use Opex cloud model•Enables rapid growth into new markets •Quickly provisions workloads when needed•Avoids pre-provisioning costs

Significant savings resulted from:• decreased infrastructure usage• lower HW, OS, middleware costs• no technology upgrade costs• operational efficiencies “pay at time of expense”

Global Services Provider chooses SoftLayer to align IT costs and grow business in new markets

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Cloud Myth Busters

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• Myth 1: The Cloud is NOT Secure

• Myth 2: Cloud is Always About Money

• Myth 3: Our Company’s Business Does Not Lend Itself to Cloud Solutions

• Myth 4: We Need One Cloud Strategy / Vendor

IT Economics StudiesUse a business case to make a technically and financially based IT decision

Workload Placement AssessmentConsolidate, offload, and place new workloads on alternative platforms Exploit and compare platform attributes to optimize workload performance and costs

IT Best Practice BenchmarkingCompare actual IT environment with best practices in the IT industry Improve forecast and actual spend

Chargeback AnalysisAlign chargeback policies to actual IT costs Identify and overcome chargeback policies that drive adverse IT decisions

Cloud AssessmentPerform a Health Check to find the right private, public or hybrid cloud solution Examine workload size and activity, SLA and provisioning requirements, and instance costs

Analytics AssessmentDetermine the most cost-effective infrastructure for analytics solutions Exploit platform attributes and efficient storage solutions for Analytics and Big Data

Mobile AssessmentMitigate high-volume, low-value mobile transaction costs Evaluate the effects of throughput, response time and other KPIs in mobile topologies

Available at no-charge to IBM clients and Business Partners ITEcon@us.ibm.comwww.ibm.com/iteconomics

https://www.ibm.com/partnerworld/iteconomicsIBM Eagle Team – IT Economics Practice

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An IT Economics study is a business case for your enterprise• Built with your information and costs• Specifically tailored to your enterprise • Shows your return on investment• Allows you to make a financially based IT decision

Use an IT Economics study to build a business case for your cloud strategy

These are some common scenarios from which clients have benefited from an IT Economics study.

IT Economics Cloud Assessment

•Trying to determine which applications are cloud friendly?•Unsure if On-Prem, off-prem or hybrid infrastructure is more cost-effective?•Looking for an efficient way to manage cloud workloads?

Available at no-charge to IBM clients and Business Partners ITEcon@us.ibm.comwww.ibm.com/iteconomics

https://www.ibm.com/partnerworld/iteconomicsIBM Eagle Team – IT Economics Practice

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• IBM Enterprise Servers enable you to implement a Private Cloud

– You may already have a private cloud!

• Private Clouds provide similar (or better) benefits than Public Clouds

• Private Clouds usually provide a lower TCO than Public clouds

– Beware of hidden public cloud costs e.g. Bandwidth

• Speak the language of the Cloud to increase adoption

• Leverage the IBM Eagle team and an IBM Business Partner (Tridatum

Solutions) to help you evaluate

Summary

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Notices and Disclaimers

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Copyright © 2016 by International Business Machines Corporation (IBM). No part of this document may be reproduced or transmitted in any form without written permission from IBM.

U.S. Government Users Restricted Rights - Use, duplication or disclosure restricted by GSA ADP Schedule Contract with IBM.

Information in these presentations (including information relating to products that have not yet been announced by IBM) has been reviewed for accuracy as of the date of initial publication and could include unintentional technical or typographical errors. IBM shall have no responsibility to update this information. THIS DOCUMENT IS DISTRIBUTED "AS IS" WITHOUT ANY WARRANTY, EITHER EXPRESS OR IMPLIED. IN NO EVENT SHALL IBM BE LIABLE FOR ANY DAMAGE ARISING FROM THE USE OF THIS INFORMATION, INCLUDING BUT NOT LIMITED TO, LOSS OF DATA, BUSINESS INTERRUPTION, LOSS OF PROFIT OR LOSS OF OPPORTUNITY. IBM products and services are warranted according to the terms and conditions of the agreements under which they are provided.

Any statements regarding IBM's future direction, intent or product plans are subject to change or withdrawal without notice.

Performance data contained herein was generally obtained in a controlled, isolated environments. Customer examples are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual performance, cost, savings or other results in other operating environments may vary.

References in this document to IBM products, programs, or services does not imply that IBM intends to make such products, programs or services available in all countries in which IBM operates or does business.

Workshops, sessions and associated materials may have been prepared by independent session speakers, and do not necessarily reflect the views of IBM. All materials and discussions are provided for informational purposes only, and are neither intended to, nor shall constitute legal or other guidance or advice to any individual participant or their specific situation.

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Notices and Disclaimers Con’t.

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