© 2011 IBM Corporation
Dispelling the Vapor Around Cloud Computing
Steve Mills
IBM Senior VP and Group Executive IBM Software and Systems
© 2011 IBM Corporation
Cloud Computing - NIST* Definition(*National Institute of Standards and Technology)
Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of
configurable computing resources (e.g., networks,
servers, storage, applications, and services) that can be
rapidly provisioned and released with minimal management effort or service provider interaction.
but ….. this is a
technology centric definition
© 2011 IBM Corporation
Cloud Computing – A Business Value
Cloud computing is a model for enabling cost
effective business outcomes through the use of
shared application and computing services. The
value …. if possible …. is better economics in the
execution of business processes.
© 2011 IBM Corporation
Cloud Computing – Service ModelsBusiness Process, Software, Platform and Infrastructure Services and
Components to Build Public and Private Clouds
Services
Software
Hardware
Cloud Components
Business Processas a Service
(BPaaS)
Platform as a Service
(PaaS)
Software as a Service
(SaaS)
Infrastructure as a Service
(IasS)
Cloud Services
Co
mp
on
en
ts
Customers consume business outcomes (e.g. payroll processing, HR) by accessing business services via Web-centric interfaces on multi-tenant and sharedinfrastructures without the need to manage or control the underlying resources
Customers use applications (e.g. CRM, ERP, e-mail) from multiple client devices through a Web browser on multi-tenant and shared infrastructures without the need to manage or control the underlying resources
Customers use programming languages, tools and platforms to develop and deploy applications on multi-tenant and shared infrastructures with ability to control deployed applications and environments without the need to manage or control the underlying resources
Customers use processing, storage, networks, other computing resources with ability to rapidly and elastically provision and control resources to deploy and run software and services without the need to manage or control the underlying resources
© 2011 IBM Corporation
Business Process and Software as a Service are Most Mature
Segments of Market; Private Cloud Delivery Model Resonating Well
Cloud Services2010 Revenue, ’10-’15 CAGR
Business Processas a Service
(BPaaS)
$9.6B 30% CAGR
Platform as a Service
(PaaS)
$4.2B 34% CAGR
Software as a Service
(SaaS)
$16.5B 26% CAGR
Infrastructure as a Service
(IasS)
$14.0B 30% CAGR
Services
$10.8B26% CAGR
Software
$10.1B16% CAGR
Hardware
$8.6B22% CAGR
Co
mp
on
en
ts
Cloud Components2010 Revenue, ’10-’15 CAGR
Private Platform
Components$1.1B
18% CAGR
Source: IBM Market Intelligence, 02/11
© 2011 IBM Corporation
Cloud Computing – Primary Characteristics
�On-demand self-service
�Ubiquitous network access
� Location independent resource pooling
�Request driven provisioning and scheduling
�Measured service / Pay-per-use
© 2011 IBM Corporation
The Cloud Value Proposition is Around Operational Efficiency and Business Transformation
INNOVATVE BUSINESS MODELS
IMPROVED OPERATIONS
� Business leaders, in particular, believe that
cloud-based delivery models will radically
change service provision and drive
spending on cloud investments
� 55% believe cloud enables them to focus
on transforming their business and make
their processes leaner, faster and more
agile
Source: “Cloud will Transform Business as We Know It: The Secret’s in the Source”, Hfs Research, and the London School of Economics, December, 2010
� 65% believe cloud will drive down the cost
of running business applications
� Infrastructure, testing, and SaaS are
expected to cost much less than traditional
outsourced services by at least 30% to
60%
� 60% of business executives also expect
cloud service delivery cycles to speed up
application implementation
Cloud Market Trends 2011 : “To What Extent Do the Following Aspects of the Cloud Value Proposition Appeal”?
© 2011 IBM Corporation
Cloud Value Proposition
Public cloud workload attractiveness for companies with 1,000+ employees
Overall, how appealing are the public, private, and hybrid delivery models for your company?
64%
30%Public +113%
Private"Very appealing" or
"appealing"
Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090
64%
38%Hybrid
Private
+68%
"Very appealing" or
"appealing"
Source: IBM MAP Cloud Workload Adoption Survey, June/July 2009, n: 731, 9 countries: US, Canada, UK, Germany, France, Italy, Japan, China & India,
Audio / Video / Web Conferencing
CRM / Sales Force Automation
WAN Capacity
Development Environment
Data Mining / Analytics
Test Environment Infrastructure
Transactional Databases
Currently Using Plan < 12 Months
6%
6%
7%
8%
14%
16%
18%
22%
6%
6%
11%
9%
5%
3%
4%
5%
...
© 2011 IBM Corporation
Cloud Delivery Models
A private cloud is one in which both the consumer of cloud services and the provider of those services exist within the same enterprise. The ownership of the cloud assets resides within the same enterprise providing and consuming cloud services.
A public cloud is one in which the consumer of cloud services and the provider of cloud services exist in separate enterprises. The ownership of the assets used to deliver cloud services remains with the provider.
A hybrid cloud combines multiple elements of public and private cloud, including any combination of providers and consumers, and may also contain multiple service layers.
PRIVATE CLOUD PUBLIC CLOUD
CLOUD DELIVERY MODELS
Isolates workload; initial foray into cloud computing
IT organization and cloud users exist
across internal
boundaries
One-to-one relationship
between service
provider and the consumer organization
IT organization and cloud users exist within one
management domain
One-to-many relationship
between service
provider and consumers
Consumer and provider of cloud services exist within
the same enterprise
DepartmentCloud
Consumer and provider of cloud services exist in separate enterprises
ExploratoryCloud
EnterpriseCloud
OpenCloud
ExclusiveCloud
Few participants,all Internal
Many participants,Internal and ExternalOrganizational Scope
© 2011 IBM Corporation
Spectrum of Deployment Options for Cloud Computing
EnterpriseData Center
Private Cloud
ManagedPrivate Cloud
HostedPrivate Cloud
SharedCloud Services
PublicCloud Services
EnterpriseData Center
Third-party operated
Enterprise
Third-partyhosted andoperated
Enterprises Users
� Free� Register� Credit Card� Click to contract
HybridInternal and external service delivery methods are integrated
Private PublicIT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall
IT activities / functions are provided “as a service,” over
the Internet
© 2011 IBM Corporation
IBM Cloud Offerings
IBM uniquely positioned with end-to-end capabilities:�Consulting and Implementation Services
� Leading Hardware, Software and Research
�Managed Services across workloads
� Leading industry and process expertise
© 2011 IBM Corporation
IBM Consulting Services for Cloud Strategy and Design
Application Strategy and Design
� IBM Strategy & Change Services for Cloud Providers
� IBM Strategy and Change Services for Cloud Adoption
Infrastructure Design
� IBM Infrastructure Strategy and Design Services for Cloud Computing
� IBM Data Center and Facilities Strategy Services
� IBM Professional Security Services
� IBM Deployment and Planning Automation (Rational)
� IBM Networking Strategy and Optimization Services for cloud computing
� IBM Converged Communications Services – Strategy & Assessment for Cloud
© 2011 IBM Corporation
Cloud Enabled Data Center Portfolio
Service Management and Security� Cloud Service Provider Platform
� IBM CloudBurst (BladeCenter & Power Systems)
� IBM Service Delivery Manager
� Tivoli Service Automation Manager
� IBM Solution Edition for Cloud Computing (System z)
� IBM Proventia Virtualized Server Security for VMWare
Systems and Storage� IBM iDataplex
� IBM System x with ex5 technology
� IBM Power Systems with POWER7
� IBM System z
� Scale out NAS Storage Systems (SoNAS)
Consulting Services
� IBM Network Integration Services for Cloud Computing
� Virtualization Security Solutions
� Resiliency Validation for Cloud Computing
Enterprise Cloud Services (Managed Services)� Smart Business Cloud Enterprise +
� IBM Federal Community Cloud
� Smart Business Development & Test Cloud
� Smart Business Desktop Cloud
� Smart Business End User Support Cloud
� IBM Tivoli Live – monitoring services
� IBM Tivoli Live – service manager
� Rational AppScan
� IBM Managed Security Services
� IBM Managed Backup Cloud
� IBM Rational Load Testing
� SO Cloud Managed Services
Enterprise Cloud Services (Private Cloud Services)
� Smart Business Cloud Enterprise
� Smart Business Development & Test Cloud
� Smart Business Information Archive
� Smart Business Storage Cloud
� Smart Business Desktop Cloud
© 2011 IBM Corporation
Cloud Application Services Portfolio
Enterprise Cloud Services (Managed Services)
� Smart Business Expense Reporting
� Smart Business Learning Content Services
� IBM Blueworks Live
� IBM LotusLive Collaboration Suite
� CastIron Cloud2 (integration services)
� SO SAP Cloud Managed Services
Enterprise Cloud Services (Private Cloud Services)
� IBM SAP Cloud Services
Consulting Services
� IBM Application Security Services for Cloud
� IBM Application Development Services for Cloud
� IBM Testing Services for Cloud
Analytics� IBM Cognos Business Intelligence
Development Tooling� Rational Software Delivery Services
Workload Optimized Systems� IBM WebSphere Cloudburst Appliance
� IBM WebSphere DataPower Secure Cloud Connector
� IBM Cast Iron DataPower Cloud Appliance XH35
Application Servers, Integration & Databases� WebSphere Hypervisor Edition Portfolio
� WebSphere Virtual Enterprise
� DB2 Hypervisor Edition
� Informix Enterprise Server
� Cast Iron Virtual Appliance
© 2011 IBM Corporation
IBM Centers Deliver & Manage Cloud Services Around the World
Sao Paulo
Raleigh, NCSilicon Valley, CA
Boulder, CO
Johannesburg
TokyoSeoul
Hanoi
Singapore
Bangalore
Hong Kong
Beijing
Dublin
IBM Cloud Lab
IBM Cloud Data Center
Wroclaw, Poland
Ehningen, Germany
7 Cloud Data Centers
11 Cloud Labs
57 Global Delivery Centers
54 Global Command Centers
IBM Worldwide Support Centers
Toronto