Ibm Smart Business Overview Jimmy Mills

© 2010 IBM Corporation

IBM cloud computing


Smarter Planet: Using cloud computing to deliver innovation and efficiency

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Jimmy Mills

Global Cloud Sales Engagement [email protected]


IBM cloud computing

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The world is getting smarter – more instrumented, interconnected, intelligent.

Smart traffic systems

Smart water mgmt

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


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Digital data is projected to grow tenfold from 2007 to 2011

As the planet gets smarter the information explosion and rapid change create new challenges

Global Internet traffic volume expected by 2013

Number of devices will be connected to the Internet by 2011

Percentage of CIOs who expect to face substantial change over the next three years

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Yet today’s IT infrastructure is under tremendous pressure and is finding it difficult to keep up…

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It will reach a breaking point

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

Percentage of executives who report a security breach and aren’t confident they can prevent future breaches

70 percent is spent on maintaining current IT infrastructures versus adding new capabilities

Percentage of CIOs who want to improve the way they use and manage their data


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There is a greater need for IT to help address business challenges

Reducing riskEnsure the right levels of security and resiliency across all business data and processes

Breakthrough agilityIncrease ability to quickly deliver new services to capitalize on opportunities while containing costs and managing risk

Higher quality servicesImprove quality of services and deliver new services that help the business grow and reduce costs

Doing more with lessReduce capital expenditures and operational expenses


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There are three ways to deliver IT capabilities

…including cloud computing, a new model for delivering and consuming IT capabilities

Software, hardware

and services

Pre-integrated systems and appliances

Provided as services…


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What is different about cloud computing?

With cloud computingWithout cloud computing

Virtualized resources Automated service

management Standardized services

Location independent

Rapid scalability Self-service

• Software• Hardware

• Storage• Networking

• Software• Hardware• Storage• Networking

• Software• Hardware• Storage• Networking


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Cloud computing delivers IT and business benefits

AutomatedFaster cycle times

Lower support costsOptimized utilization

Improved complianceOptimized security

End user experience

StandardizedEasier access

Flexible pricingReuse and share

Easier to integrate

VirtualizedHigher utilization

Economy of scale benefits

Lower capital expenseLower operating expense

Higher quality services

Doing more with less

Breakthrough agility and reducing risk


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IT benefits from cloud computing are real

Test provisioning Weeks Minutes

Change management Months Days/hours

Release management Weeks Minutes

Service access Administered Self-service

Standardization Complex Reuse/share

Metering/billing Fixed cost Variable cost

Server/storage utilization 10–20% 70–90%

Payback period Years Months

SOURCE: Based on IBM and client experience.

Increasing speed and

flexibility

Reducing costs

Results from IBM cloud computing engagements


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Companies have different motivations for leveraging cloud

Risk & Compliance

34,000-employee bank deploying a private cloud from IBM to centralize management of desktops via an enterprise class data center rather than at the user stations, Gets greater remote flexibility without sacrificing control to improve efficiency.

Employee Productivity

Enable collaboration across 300K global employees as well as its network of customers, partners and suppliers. Saving 30 minutes per day or 120hr per year per person.

IBM LotusLive has 18 million users in 99 countries

Analytics & Security

Operations support 9 major commands, nearly 100 bases, & 700,000 active military personnel around the world. Design secure cloud infrastructure for defense & intelligence networks; insights about cyber attacks, network, system or application failures, while automatically preventing disruptions.

Time to Value

Creates an ecosystem for PayPal 3rd Party developers

Reduces developer effort to deploy a work environment with seamless PayPal Test Sandbox access


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How can clients think about their cloud journey?

Deliver

Plan

Build Design and construct Quality assurance (test) Security and compliance Lifecycle management

Understand strategic direction Analyze workloads Determine delivery model Define architecture Build the business case

Deploy Consume Manage Optimize


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IBM provides a comprehensive set of capabilities to accelerate your cloud journey

Consulting and enabling servicesExperience and expertise to help clients plan, build and deliver cloud services

Technologies to plan, build, deliver and manage cloud services

Cloud services to optimize your business


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Create a roadmap for cloud as part of the existing IT optimization strategy

Consolidate

Virtualize

Standardizeand automate

Reduce infrastructure complexity

Reduce staffing requirements

Manage fewer things better

Lower operational costs

Remove physical resource boundaries

Increase hardware utilization

Reduce hardware costs

Simplify deployments

Standardize services Reduce deployment

cycles Enable scalability Flexible delivery


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Adoption of cloud computing will be workload driven

Workload characteristics determine standardization

Web infrastructure applications

Collaborative infrastructureDevelopment and testHigh Performance

Computing

...

Test for Standardization Examine for Risk

DatabaseTransaction processingERP workloadsHighly regulated workloads

...

High volume, low cost analytics

Collaborative Business Networks

Industry scale “smart” applications

...

Explore New Workloads


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Workloads ready for cloud computing

AnalyticsData mining, text mining or

other analyticsData warehouses or data

martsTransactional databases

Business servicesCustomer relationship

management (CRM) or sales force automation

E-mailEnterprise resource planning

(ERP) applications Industry-specific applications

CollaborationAudio/video/Web

conferencingUnified communicationsVoIP infrastructure

Desktop and devicesDesktopService/help desk

Development and testDevelopment environmentTest environment

InfrastructureApplication serversApplication streamingBusiness continuity/

disaster recoveryData archivingData backupData center network capacitySecurityServersStorageTraining infrastructureWide area network (WAN)

capacity

Source: IBM Market Insights, Cloud Computing Research, July 2009.


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Public and Private Clouds are preferred for different workloads

Database- and application-oriented workloads emerge as most appropriate

Data mining, text mining, or other analytics Security Data warehouses or data marts Business continuity and disaster recovery Test environment infrastructure Long-term data archiving/preservation Transactional databases Industry-specific applications ERP applications

Infrastructure workloads emerge as most appropriate

Audio/video/Web conferencing Service help desk Infrastructure for training and

demonstration WAN capacity, VOIP Infrastructure Desktop Test environment infrastructure Storage Data center network capacity Server

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Top public workloadsTop private workloads


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There is a spectrum of deployment options for cloud computing

Private PublicHybridIT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall

Internal and external service delivery methods are integrated

IT activities / functions are

provided “as a service,” over the

Internet

Third-partyoperated

Third-party hosted and operated

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


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There is a spectrum of deployment options for cloud computing

Private Implemented

on client premises

Client runs/ manages

Third-party operated

Enterprise owned

Mission critical Packaged

applications High

compliancy Internal network

Third-party owned and operated

Standardization Centralization Security Internal

network

Mix of shared and dedicated resources

Shared facility and staff

Virtual private network (VPN) access

Subscription or membership based

Shared resources

Elastic scaling Pay as you go Public Internet

Third-partyoperated

Third-party hosted and operated



Private cloud Hosted private cloud

Managed private cloud

Enterprise

Shared cloud services

Enterprise A

Enterprise B

Public cloud services

A

Users

B


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A framework for cloud computing

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Shared middleware services

Infrastructure services

Industry-specific services

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Cloud-based business solutions for industry-specific processes

Virtualized and optimized systems storage and

networking

IT services that are integrated with cloud services

Application infrastructure for delivering cloud services

Business services delivered via the cloud Integrated capabilities

for visibility, control, automation and security of cloud services

Capabilities to define an enterprise architecture for

business planning/alignment and tools for managing the lifecycle of cloud services

Processservices

Collaborationservices

Analyticsservices

Existing services and third-party services

…


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Security is among a top concern with cloud computing...The IBM Security Framework provides a structure to address this concern

Data and informationUnderstand, deploy and properly test controls for access to and usage of sensitive data

People and identityMitigate the risks associated with user access to corporate resources

Application and processHelp keep applications secure, protected from malicious or fraudulent use, and hardened against failure

Network, server and end pointOptimize service availability by mitigating risks to network components

Physical infrastructureProvide actionable intelligence on the desired state of physical infrastructure security and make improvements

Professional services

Managed services Hardware and software


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Processservices


Analyticsservices

IBM SW technologies for cloud computing

Shared Services IBM WebSphere® Application

Server Hypervisor Edition IBM WebSphere Cloudburst

ApplianceDatabases IBM DB2®

IBM Informix®

Service Management IBM Service Delivery Manager Rational Quality ManagerSecurity IBM Rational AppScan®

IBM Proventia Virtualized Server Security

Business Planning and Alignment IBM Rational System Architect IBM Rational Requirements Composer IBM Rational Project ConductorLifecycle Management IBM Rational® Software Delivery Services -Rational Asset Manager

IBM Cognos® 8 Business Intelligence


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Workload optimized systems for cloud computing

IBM Information Archive IBM CloudBurst IBM Smart Business for SMB

A single approach to systems can’t satisfy the specific workload demands of cloud computing

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IBM Smart Analytics System


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Processservices


Analyticsservices …


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IBM Smart Business Cloud Services to help you build and/or manage a cloud computing deployment

IBM Smart Business Development and Test Cloud

Lotus Foundation

IBM Smart Business Storage Cloud IBM Smart Business Desktop Cloud

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IBM Smart Analytics Cloud


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Processservices


Analyticsservices …


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Cloud computing should align the technology that fits best for the workload and the business including….

…IBM server and storage systems which can securely scale up or scale out to meet the needs and priorities for a wide range of workloads

System x with new ex5 technology for higher levels of utilization and resource sharing and iDataplex optimized for flexibility and scale out computing

Power Systems with POWER7 for higher performance and scalability

System z for higher availability, security and lower TCO

Scale out NAS Storage Systems with a highly scalable file system for unstructured data


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Movement from Traditional Environments to Cloud Can be in One Step or an EvolutionClients will make workload-driven trade offs among functions such as security, degree of customization, control and economics


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Cloud service management capabilities are needed to enable visibility, control and automation of cloud services

WorkflowManage the process for approval of usage

ProvisioningAutomate provisioning of resources

MonitoringProvide visibility of performance of virtual machines

Metering and ratingTrack usage of resources


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Ready-to-consume cloud services from IBM

IBM Smart Business on the IBM Cloud

Business processes BPM BlueWorks Smart business expense reporting on the IBM Cloud

Collaboration IBM LotusLive

Desktop and devices IBM Smart Business Desktop on the IBM Cloud IBM Smart Business End User Support

Development and test IBM Smart Business Development and Test on the IBM Cloud

Infrastructure Compute Computing on Demand

Infrastructure storage IBM Information Protection Services

Software as a Service IBM Tivoli Live IBM WebSphere Application

Server IBM WebSphere sMash

IBM WebSphere Portal IBM DB2 IBM Informix Dynamic Server Lotus Domino Lotus Web Content Mgmt


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IBM provides services in support of cloud computing

Resiliency Validation for Cloud Computing

Virtualization Security Solutions from IBM Internet Security Systems

IBM Software Support Services – Enhanced Technical Support

IBM Managed Support Services – managed technical support

IBM Software Support Services

IBM Hardware Maintenance Services

IBM Information Protection Services

IBM Strategy and Change Services for Cloud Adoption

IBM Strategy and Change Services for Cloud Providers

IBM Infrastructure Strategy and Planning for Cloud Computing

IBM Resiliency Consulting Services

IBM Data Center and Facilities Strategy Services – data center strategy and plan

IBM Data Center Family™ solutions – data center design services

IBM Networking Strategy and Optimization

IBM Implementation Services for Cloud Computing

IBM Testing Services for Cloud

Security Consulting Services in support of Cloud Computing

Express managed e-mail security and Express managed Web security from IBM

Deliver Plan Build


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Businesses that implement cloud computing are seeing significant results

Reduced IT labor cost by 50 percent in configuration, operations, management and monitoring

Improved capital utilization by 75 percent, significantly reducing license costs

Reduced provisioning cycle times from weeks to minutes

Improved quality, eliminating 30 percent of software defects

Reduced end user IT support costs by up to 40 percent

Simplified security management

Patty Love

NOTE TO IBM: Please contact the sales rep for each of these clients to obtain permission to use their logos.


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Improving collaboration in a large global team

Achieved new levels of collaboration among worldwide employees, vendors and partners

Dramatic savings per year on employee productivity

Global, multi-language implementation

Solution IBM LotusLive


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Empowering a 34,000-person workforce

Empowered workers with anytime, anywhere access

Improved security with better data leakage control

Lowered cost of support and upgrade

Solution IBM Smart Business Desktop Cloud


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Capitalizing on new efficiencies

Reduced labor and infrastructure need to develop and deploy new services

Decreased new application deployment time from 10 weeks to less than 1 week

Accelerated business transformation

Solution IBM CloudBurst service delivery platform


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Taking new capabilities to the marketplace faster

Established company as leader in industry Enabled customers and business partners to

leverage new models more easily and increased company revenue with new models

Improve new service development time, achieving faster time to market

Improved efficiencies of resources, delivering reduction in CapEx & OpEx

Solution Private cloud built by IBM


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Working together with an ecosystem of IBM Business Partners to accelerate and optimize your cloud journey

Patty Love

NOTE TO IBM: Please make sure you have permission to use all these Business Partner logos.


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Why take advantage of cloud now?

We asked IBM clients “To what degree would each of these factors induce you to acquire cloud services?”

Reduce costs

77%or higher

•Hardware savings

•Software license savings

•Lower labor and IT support costs

•Lower outside maintenance costs

Faster time to value

72% or higher

•Relieve pressure on internal resources

•Simplify updating/upgrading

•Speed deployment

•Scale IT resources to meet needs

Respondents could rate multiple factors; listed is factors where that percentage or higher of respondents selected that factor

SOURCE: IBM, Dispelling the vapor around cloud computing: New findings from IBM Market Insights, 2009.

Consider cloud now:

To lower the costs of delivering IT services

To deliver flexible IT

Because your competitors are already thinking about cloud—some are already implementing it

Because cloud changes the economics of IT and offers competitive advantage


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What differentiates IBM in making cloud computing real

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IBM provides clear economic value and helps you work through the right mix of delivery models and choices (by workload) to reap the maximum benefit.

IBM supports industry standards, has over 8 million developers, and provides a platform for open innovation.

IBM provides Cloud solutions that are completely robust and secure, based on the demanding needs of today’s businesses: rapid provisioning, clear visibility of assets, robust data governance, and seamless mix of delivery models.

From sourcing to usage to maintenance, IBM Cloud solutions are designed to be simple, intuitive, and built based on how people actually work.

IBM has partners, delivery centers, and a world-wide network of partners in 174 countries. And we have the experience of running a globally integrated enterprise, so we understand what it takes to make a global company run.

Clear economic

value

Integrated and open

Secure and ready for business

Designed for

simplicity

Globally relevant

New economics with new trade-offs

Business flexibility results from IT flexibility

Demanding greater speed, control, security and transparency

New technology experiences with faster time to market

Need solutions that work and are supported consistently.


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Cloud is an opportunity—will you be able to take advantage?

Technology is enabling a smarter planet

We must face head-on the challenges to building an effective IT

Cloud computing is one key way to address the challenges of a smarter planet


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Thank you!For more information, please visit:http://www.ibm.com/cloud


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Trademarks and notes

IBM Corporation 2010

IBM, the IBM logo, and ibm.com, are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml.

References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.

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Ibm Smart Business Overview Jimmy Mills