MISA Cloud Workshop_ Roadmap to a municipal community cloud in canada

© 2012 IBM Corporation

Roadmap to a Municipal Community Cloud in Canada

April 11, 2012

Malcolm Smith

Business Development Executive –

Cloud Solutions

[email protected]

416.478.9908

© 2012 IBM Corporation2 22

A planet of smarter cities:In 2007, for the first time in history, the majority of the world’s population—3.3 billion people—lived in cities.

By 2050, city dwellers are expected to make up 70%of Earth’s total population, or 6.4 billion people.

© 2012 IBM Corporation3

AgingInfrastructure

Declining Budgets

Increasing Threats

Changing Populations

Innovative leaders create opportunities from today’s harsh realities

Innovation

Investment

Community

Sustainability


Cities cannot simply work harder…

They must work smarter


Smarter cities are cities that drive sustainable economic growth by…

Leveraging information to make better decisions

Anticipating problems to resolve them proactively

Coordinating resources to operate effectively


Agenda

� Cloud & deployment options

� Reasons to do it

� Dependencies for Cloud– Technologies & management disciplines – Architecture– Services

� What Cities are doing with Cloud

� The common roadmap


IBM offers extensive real-world experience working with some of the most innovative, forward-thinking IT organizations on the planet. Our point of view is based on real world experience.

successful privatecloud engagementsin 2010.

“IBM has one of the most comprehensive cloud portfolios,

with the cloud integrated throughout its many lines of

business. Moreover, IBM’s consulting arm has put them in

touch with numerous early adopters and special use cases—

all of which helps the company stay ahead of competitors. ”

– Jeff Vance, Datamation

public cloud users. managed virtualmachines.

of Fortune 500

companies are using

IBM cloud capabilities.

80%

© 2012 IBM Corporation8 See NIST Definition of Cloud @ http://www.nist.gov/itl/cloud/upload/cloud-def-v15.pdf

…that creates a configurable supply chain for IT services

Cloud computing is a new consumption and delivery model inspired by consumer Internet services that exhibits the following key characteristics:

1. On-demand self-service

2. Ubiquitous network access

3. Location independent resource pooling

4. Rapid elasticity

5. Pay per use


Since “Cloud” is a computing style, there are many ways to deploy a Cloud. Some organizations buy the parts and build their own private cloud. Others get help to implement and / or run their cloud while others buy services from public clouds. Large enterprises are focused on building private clouds. Small organizations are more likely to buy public cloud services.

3rd party

operated3rd party hosted

and operated

Enterprise data center

Enterprise data center

Private cloud Hosted private cloud

Managed private cloud

Enterprise

Shared cloud services

Enterprise A

Enterprise B

Public cloud services

A

Users

B

� Client DC

� Client owned

� Client integrates

� Client operated

� Highly

customized

� Client DC

� Client owned

� 3rd Party operator

� More

standardization &

less customization

� Some utility pricing

� 3rd party DC

� Shared ownership

� 3rd Party operator

� Highly standardized

� Some Utility pricing

� Mix of private and

public services

� Shared across

enterprises

� Subscription or

membership

pricing

� Access over VPN

� Shared resources

� Elastic scaling

� Pay as you go

� Fully standardized

� Little customization

� Public Internet

Public cloudShared or Hybridor Community

cloud

Private cloud

Internally operated

Trade-offs include costs, scalability, and customization


Organizations achieve efficiencies through IT virtualization, standardization and automation – key drivers of cloud computing

Virtualized

Lower cost

Standardized

Automated

Increased speed

Improved flexibility

Higher utilization

Economy of scale benefits

Lower capital expense

Lower operating expense

Easier access

Flexible pricing

Reuse and share

Easier to integrate

Faster cycle times

Lower support costs

Optimized utilization

Improved compliance

Optimized security

End-user experience


Son Huynh

IBM Business Value Growth with Cloud Implementations: TCO Analysis

Application

Pattern

Prov. And

Mgmt

VirtualizationService

Mgmt and

Auto

Provisioning

* Number and percentages are approximated.

Pain Points

• Ability to track Resources

• Manual Installation and configuration

• Standard & Automation

• ...

Potential Impact:

• 65% Reduction in

Provisioning time

• 200 - 500%

improved

resource utilization

• 60 -100 % ROI

• 3-9 Months

Payback

Potential Impact:

• 90% reduction in

process overhead

• 100 -200 % ROI

• 6-12 Months

payback

Potential Impact:

• 30% improvements on

top of virtualization

• 80% reduction in

workload deployment

and management

• 3-9 Months payback

20 -25 %

25 -30%

30 -35 %

Infrastructure

Development

Implementation

Operations

Life-Cycle TCO

VirtualizedTraditional IaaS PaaS


The move to Cloud for an outsourced client accelerated IT service delivery by increasing resiliency, improving quality, and reducing operating costs

Infr

astr

uctu

re

Levera

ge

Virtualization of

Hardware

Utilization of Infrastructure

Labour

Levera

ge

On Demand Self Service

Automation of Management

Standardization of Workloads

Solution Lever will… Delivering Significant Benefits

Users “serve themselves,” requiring less support and

improving productivity by delivering services faster

� Increased agility / Speed to market

� Service improvement

� Improved Quality� Reduced Costs

� Increase employee satisfaction

Reduce effort, time and errors by automating repeatable tasks and services

� Service improvement� Improved Quality� Increase resiliency

� Reduced Cost

Reduce complexity: more tasks

can be eliminated or automated, reducing software and labour costs and errors

� Service improvement� Improved Quality

� Increase resiliency� Reduced Cost

� Capacity Flexibility

Increase workload capacity &

flexibility over traditional physical environments

� Standardization� Reduced Cost

� Workload optimization and operating flexibility

Increase utilization of

infrastructure and increases

economies of scale

� Capacity flexibility

� Effective utilization of Data Capacity

� Reduced Cost


Cloud computing can reduce data centre costs by 20% to 30%.

Traditional IT Budget

Breakdown

Competitive IT

Budget

Labor Costs

(reduce 10%)

Hardware Costs

(reduce 20% to 30%)

Invest in new Business

Needs

(> 35%)

Reduce Software Costs

(typically 20%)

Power Costs

(reduce 20%)

Typical Spend on IT Maintenance = 75%

Labor Costs

(Operations &

Maintenance)

Hardware Costs

(annualized)

Invest in new Business

Capabilities (<25%)

Software Costs

Power Costs

Operating

EnvironmentSavings %

Production* 1%

Performance* 1%

DR 13%

Dev / Test 94%

* Includes 5x capacity buffer and

significant performance and

operational benefits.


Cloud Computing Management Platform - Service Offering Management


IaaS: Cut IT expense and complexitythrough a cloud enabled data center

PaaS: Accelerate time to market with cloud platform services

SaaS: Gain immediate access with business solutions on cloud

Innovate business models by becoming a cloud service provider

CIO – IT Ops• Reduce costs for

HW, SW, labour and DC

SW developers (CIO / LOB

• Faster time to market. Reduce errors

• Improve testing

CXOs – marketing, finance, procurement,

product development, ,…• New services

• Innovation

CEO, CAO, COO, CMO• Create new revenue

streams• Create new channel• Faster time to market

• Reduce selling costs• Integrate existing

services

Four common cloud adoption patterns are emerging. Cities are adopting all four to reduce data centre costs, increase agility, and drive economic development


“This Center positioned Rio

among the WW Smarter

Cities, and that was my dream

when I became Mayor; now it

is a reality.“ -

Eduardo Paes,

Mayor, City of Rio de Janeiro

“We can predict problems and be proactive” - City of Rio de Janiero

Client Challenges

� Six million citizens of this city live with the danger of landslides

and floods. When disaster strikes, the city must respond quickly.

� Despite having multiple resources, public relief agencies and

medical personnel at its disposal, the city and its agencies

struggled to communicate with each other and coordinate rescue

efforts .

� Without a single, integrated view of the crisis and the ability to

share critical information, the city could not warn the public in a

timely fashion and save lives.

Solution

� City officials gained the ability to alert the public sooner,

coordinate relief efforts more efficiently and respond to crises

faster with an emergency information portal solution.

� The system integrates the city’s existing resources, such as traffic

cameras and rain meters, as well as near real-time data in a

single view.

� This provides officials with a more comprehensive picture of a

disaster, helping them discuss and synchronize rescue efforts,


The IOC provides a broad set of functions for city leaders

Active Workflows:

Intelligent Operations Center

Automated Emails & SMS

Integrated System Monitoring

Roles & Permissions

Data drill down

Data Exporting

Event correlation detection

Click to Action

Mouse over Pop-upsEvent Mgt.

Progress Reporting


Smarter Water

Work Optimization

� enables water utilities to optimize maintenance and repair schedules based on type of work order, location, crew and equipment needed

� allows the utility to address “work on the way” and “work in the neighbourhood” while responding to high priority work

Usage & Revenue Analysis

� allows utilities to better understand and predict water usage

� provides insight in predicting future patterns of asset failure and identify targets for preventative maintenance

� detects usage anomalies

� ensures environmental integrity of city water system by addressing flood, water quality, and erosion control.

Customer Problem addressed

� Increasing maintenance costs, increasing work backlog, inefficiencies in utilization of limited numbers of skilled work crews, increasing transportation costs

� Inability to support analysis for rate case development and improved pricing models

Up to 45% of water is lost due to leaks in an aging water infrastructure around the world.

45%Increase in global water usage since the 1900s; twice the rate of human population growth.

6xThe number of people that do not have access to safe water according to The World Bank.

1.1 billion


WUXI iPark Cloud Center

� Major city in China - centre for industry and commerce

� Goal was to balance economic development, environmental protection, and the wellbeing of its 6M+ citizens

� Wanted to create a flexible, shared computing resources for local government projects and for software development start-ups to lower barriers to market entry for new companies by eliminating need to commit capital to in-house infrastructure.

� Built Wuxi Cloud Center; a shared infrastructure that – enables high utilization of available resources– Delivers cost-efficient dynamic resources as required, and

priced according to usage

"The combination of the IBM

Smart Business cloud

portfolio and IBM Blue Cloud

technology enabled us to

create a highly flexible

platform for delivering rich

services via the Internet." - Paul Lu, CEO of Wuxi

Cloud Center


EcosystemClients

Cities

Villages

Towns

Water

Tax

Assess

ISV

Cloud Infrastructure

Pangoo Platform

Tax

Acc’t

Building

ISV 1

2

Assess

MapsISV3

Multi-tenant Security

Bill Subscribe S4SE

Info-BasedComposition

ComposerClient Relation

Owners

ISV

Gov’tService

Providers

IBM developed a Municipal Shared Services Cloud in a First-of-a-Kind project with a number of NY cities and towns to validate the technology & business model

� Cloud SaaS services attractive for smaller businesses & governments

� Shared Data Management uses model to link independent services and data


Some things to consider as you move to cloud

� Governance of standards and shared virtual resources

� ITIL processes and management disciplines change

� The org structure of IT changes as well as the skill profiles and mixes

� Procurement of cloud services and systems needs to change

� Cloud is a style that is as applicable to business services as it is to IT – how is your City adopting a cloud?


Check Cloud readiness – do relevant processes, procedures as well as

roles & skills exist to manage the expected hybrid cloud delivery models?

Analyze workloads and select delivery models – which workload is

suitable for which cloud model; which service levels are needed

based on business requirements; what happens to “legacy“?

Define and develop Cloud Computing architecture; design

blueprint for processes, technology, organization

Establish management procedures to manage the different

cloud models like a homogeneous environment

Define and publish a service catalogue for all relevant services

to enable simple access to all services and disguise complexity

of service delivery for customers / end users

Moving

to

Cloud

Cloud is a new style of computing – start your journey today.

1

2

3

4

5

� Get onto IBM’s SmartCloud Enterprise and start experimenting– See what your Cloud could look like / Use it to develop a business case for change– www.ibm.com/cloud/ca

� Assess your current state and readiness for Cloud or assess which of your workloads are most suitable to move to a cloud

– www.ibm.com/cloud-computing/us/en/consulting-and-implementation.html


Thank you.

MISA Cloud Workshop_ Roadmap to a municipal community cloud in canada

Technology

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