What is Cloud Computing?

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Oct 31, 2013 (3 years and 10 months ago)

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© 2009 IBM Corporation

What is Cloud Computing?

Bowman Hall

Program Director, Cloud Computing Client Engagements

IBM Software Group


© 2009 IBM Corporation

2

IT infrastructure is reaching a breaking point.

85% idle

In distributed computing
environments, up to
85% of computing
capacity sits idle.


Consumer product and retail
industries lose about $40
billion annually, or 3.5 percent
of their sales, due to supply
chain inefficiencies.

33% of consumers notified
of a security breach will
terminate their relationship
with the company they
perceive as responsible.

33%

$40 billion

Explosion of information
driving 54% growth in
storage shipments
every year.

1.5x

70¢ per $1

70% on average is spent
on maintaining current IT
infrastructures versus
adding new capabilities.

© 2009 IBM Corporation

3

As the world gets smarter, demands on IT will grow

Smart traffic
systems

Smart water
management

Smart energy
grids

Smart
healthcare

Smart food
systems

Intelligent
oil field
technologies

Smart
regions

Smart

weather

Smart
countries

Smart supply
chains

Smart cities

Smart retail

© 2009 IBM Corporation

4

Globally, systems and infrastructure
are reaching a breaking point.


Explosion of data, transactions, and digitally
-
aware
devices strains IT infrastructure and operations.


Exponential growth in communications subscribers

and services exposes bandwidth limitations.


Supply inefficiencies and demand spikes tax

energy and utility systems.


Clogged and congested roadways impact
productivity.


Networks, supply chains, and borders face a
proliferation of new risks and threats.

Meanwhile, customer expectations and
competitive pressures are increasing.

4

© 2009 IBM Corporation

5

What is Cloud Computing?

A user experience and a business model


Cloud computing is an emerging style of IT delivery in which applications, data, and IT
resources are
rapidly provisioned

and provided as
standardized offerings

to users
over the web in a
flexible pricing model.

An infrastructure management and services delivery methodology


Cloud computing is a way of
managing

large numbers of highly
virtualized resources

such that, from a management perspective, they resemble a single large resource.

This can then be used to deliver services with
elastic scaling
.

Monitor & Manage

Services & Resources

Cloud

Administrator

Datacenter

Infrastructure

Service Catalog,

Component

Library

Service Consumers

Component Vendors/

Software Publishers

Publish & Update

Components,

Service Templates

IT Cloud

Access

Services

© 2009 IBM Corporation

6

=

CLOUD COMPUTING


Cost


…leveraging
virtualization, standardization and automation


to free up operational budget for new investment.

VIRTUALIZATION

+

STANDARDIZATION

AUTOMATION

+

Flexibility

An Effective Cloud Deployment is Built on a

Dynamic Infrastructure ….

© 2009 IBM Corporation

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Infrastructure as a Service

Platform as a Service

High Volume

Transactions

Software as a Service

Servers

Networking

Storage

Middleware

Collaboration

Business

Processes

CRM/ERP/HR

Industry

Applications

Data Center

Fabric

Shared virtualized, dynamic provisioning

Database

Web 2.0 Application

Runtime

Java

Runtime

Development

Tooling

Cloud Computing Delivery Models

© 2009 IBM Corporation

8

...service sourcing and service value


Cloud Computing Deployment 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

© 2009 IBM Corporation

9

Cloud spending to grow six times faster than traditional IT spending


IDC forecasts the
cloud computing services market to grow at a CAGR of 27 percent

from USD 16.2 billion in 2008
to USD 42 billion in 2012. On the other hand, Gartner expects the worldwide cloud services revenue to cross USD 56.3
billion in 2009 to USD 150 billion by 2013.


IDC estimates the traditional IT spending to grow at a CAGR of 7 percent to USD 494 billion in 2012 from USD 383
billion in 2008. Thus, the forecasted growth rate of cloud spending is six times that of traditional IT spending.

Size and Growth

© 2009 IBM Corporation

10

A stepwise approach to Cloud Computing

1.
Create an IT Transformation
Roadmap


2.
Define an Architectural Model for
Cloud Computing


3.
Complete a Workload Analysis


4.
Decide the Right Mix of Delivery
Models


5.
Implement a Cloud Solution

© 2009 IBM Corporation

11

Step 1: IT Transformation Roadmap


Rapid deployment of
infrastructure and
applications


Request
-
driven service
management


Service Catalog


Virtualization


Better hardware
utilization


Improved IT agility


Server Consolidation


Streamline Operations


manage
physical and virtual systems


Lower power consumption


Integrated service lifecycle
mgmt


Expose resources “as
-
a
-
Service”


Integrated Security
infrastructure


Rapid provisioning of IT
resources, massive scaling


Dynamic service mgmt


Energy saving via auto
workload distribution

© 2009 IBM Corporation

12

Step 2: Architectural Model for Cloud Computing

Cloud Service

Developer

Cloud Service

Consumer

Cloud Service Provider

Service Delivery Portal

BSS

Business

Support

Services


Offering Mgmt

Order Mgmt

Accounting & Billing

Customer Mgmt

Entitlements

Contract Mgmt

SLA

Reporting

Pricing / Rating

Peering & Settlement

Subscriber Mgmt

Service Offering

Catalog

Invoicing

OSS

Operational

Support

Services


Service Automation Mgmt


Virtualization Mgmt


Reporting & Analytics

Metering

Service Development Portal

Common Cloud Platform

Security & Resiliency

Consumer
Administrator

Consumer
Business
Manager

Partner Clouds

Customer

In
-
house IT

Service Def. &

Developm
.. Tools

Image Creation
Tools

Developer

Serv ice Def initions

Software
-
as
-
a
-
Service
-

e.g. Lotus Live

Cloud

Services

Platform as
-
as
-
Service
-

e.g. Desktop Cloud

User
Interface

Service
User

Infrastructure
-
as
-
a
-
Service
-

e.g. Compute Cloud

Virtualized Infrastructure


Server, Storage, Network

Managed Environment

Management Environment



Operational Console

Provisioning

Monitoring & Event Mgmt

Service Delivery Catalog

Configuration Mgmt

Continuity Mgmt,

Backup / Restore

Asset Mgmt

Service Request Mgmt

Service Level Mgmt

Image Lifecycle Mgmt

Capacity, Perform. Mgmt

Incident, Problem

& Change Mgmt

Service Provider Portal

Service Business Manager

Service Operations Manager

API

API

© 2009 IBM Corporation

13

January 12, 2009

File & Print

Data Warehousing


Data Mining

Systems Mgmt.

SME


ERP/SCM/CRM

Step 3: Workload Analysis

Lower Gain From External Cloud

Higher Gain From External 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

“Storage
-

Analytics” Architecture

“Virtualized Traditional” Architecture

Virtual Desktop

Start Here

LE
-

Transaction

Processing

LE
-

ERP/SCM/CRM

© 2009 IBM Corporation

14

Fixed

Traditional IT

Managed

Operations

Public

Cloud

Services

Private Cloud
Services

Financial Models

Delivery Models

Off Premises
Shared

Variable

Off Premises
Dedicated

On Premises
Utility

Mixed


On Premises

Step 4: Deciding the Right Mix of Delivery Models

© 2009 IBM Corporation

15

End

Users

Service Portal

Service Request

Catalog

Provisioning Engine


Workflows


Expert Systems


Scripts

Optional Service
Modules


e.g. Metering/
Usage Billing,
Monitoring, etc.

Virtualized Cloud
Infrastructure

Benefits
:



Lower cost



Ease
-
of
-
use and access



Process transformation

Step 5: Self
-
service drives Process Standardization

© 2009 IBM Corporation

16

Future

Available

IBM Cloud Computing Products & Services

Smart Business

on the IBM Cloud

Smart Business Cloud

Smart Business Systems

Standardized services on the
IBM Cloud

Pre
-
integrated, workload

optimized systems

Private cloud services, behind
your firewall, built and/or
managed by IBM

Lotus Live

IBM CloudBurst

w/Quickstart
Svcs

Smart Business
Test Cloud

Smart Business
Development &
Test on the IBM
Cloud

Smart Business
Desktop Cloud

Smart Business
Desktop on the
IBM Cloud

Information
Protection Services;
Computing on
Demand

Smart Business
for

SMB (backed by
the IBM cloud)

IBM CloudBurst

w/Quickstart
Svces

Scale out

File Services

Analytics

Collaboration

Development

and Test

Desktop and
Devices

Infrastructure
(compute /
storage)

Business

Services

Smart Analytics
System

Powered by Infosphere

© 2009 IBM Corporation

17

Hardware Costs

(
-

89%)

Labor Costs

(
-

81%)

Deployment (1
-
time)

Liberated
funding for new
development,
transformation
investment or
direct saving

Hardware
Costs
(
annualized
)

New
Development

IBM Technical Adoption Program (TAP)

ROI Analysis

Current
IT
Spend

Strategic

Change

Capacity

Hardware,
labor &
power
savings
reduced
annual cost
of operation
by 84%

100%

Labor Costs
(
Operations and
Maintenance
)

Power Costs

(
-

89%)

Power Costs

Software Costs

Software Costs




Reduced Capital Expenditure



Reduced Operations Expenditure


Additional Benefits

Reduced risk, less idle time, more efficient
use of energy, acceleration of innovation
projects, enhanced customer service

Business Case Results:

Annual savings: $3.3M (84%)

from $3.9M to $0.6M


Payback Period: 73 days

Net Present Value (NPV): $7.5M

Internal Rate of Return (IRR): 496%

Return On Investment (ROI): 1039%

© 2009 IBM Corporation

18


Enterprise cloud opportunity is early, but real



Economics of private clouds look compelling



Adoption of cloud computing will be driven by workload affinity



IBM offers deployment choices for workloads that matter to you


In Summary…