IBM Nederland B.V.
© 2010 IBM Nederland B.V.
Cloud ComputingWhy, what, how?
Ronald Zoutendijk, [email protected] Arts, [email protected]
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Complexiteit1 Why Cloud Computing?Why Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Agenda
Why Cloud Computing?
What is Cloud Computing? (What isn’t?)
How should we go about it?
IBM Cloud Portfolio
Closing
1
2
3
4
5
IBM Cloud Computing
© 2010 IBM Nederland B.V.4 19 februari 2010
In our definition cloud computing the IT cloud is the actual delivery model and methodology. It has specific attributes
Cloud is a user experience and a business modelCloud 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
Cloud is an infrastructure management and services delivery methodologyCloud 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 & ManageServices & Resources
CloudAdministrator
DatacenterInfrastructure
Service Catalog,ComponentLibrary
Service Consumers
Component Vendors/Software Publishers
Publish & UpdateComponents,Service Templates
IT Cloud
AccessServices
What is Cloud ComputingCloud is a user experience and a business modelCloud 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
Cloud is an infrastructure management and services delivery methodologyCloud 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
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.5 19 februari 2010
Common Attribute DetailsStandardized offerings Uniform offerings readily available from a services catalogue on
a metered basis
Elastic scaling Resources scale up and down by large factors as the demand changes
Rapid provisioning IT and network capacity and capabilities are – ideally automatically – rapidly provisioned using Internet standards without transferring ownership of resources
Advanced virtualization IT resources from servers to storage, network and applications are pooled and virtualized to provide an implementation independent, efficient infrastructure
Flexible pricing Utility pricing, variable payments, pay-by-consumption and subscription models make pricing of IT services more flexible
These are the attributes explained in more detail 2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.6 19 februari 2010
Lets look at a simple example of cloud as a delivery model for standard services
THE PIZZA CLOUD PIZZA AS A SERVICEFlexible priced:You pay per pizza
ordered
Elastic scaling:You order 1, 2, 3
or more
Rapid prov.:Pizza (service) in 3 minutes ready
Standard off.:Only 4 flavour of
pizza
level:Only 1 level of
service
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.7 19 februari 2010
Infrastructure-as-a-Service
Platform-as-a-Service
Application-as-a-Service
Servers Networking Storage
Middleware
Collaboration
Financials
CRM/ERP/HR
Industry Applications
Data Center Fabric
Shared virtualized, dynamic provisioning
Database
Web 2.0 ApplicationRuntime
JavaRuntime
DevelopmentTooling
Examples
Business Process-as-a-Service
Employee Benefits Mgmt.
Industry-specific Processes
Procurement
Business Travel
The service delivered from the delivery model are called cloud services which are divided here in four layers.
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.8 19 februari 2010
Because of the four cloud services layers it is difficult to define where certain IT parts fit as they seem to move from the service side into the cloud delivery model
Cloud Infrastructure
Monitor & ManageServices & Resources
CloudAdministrator
Service Catalog,ComponentLibrary
Servers
Networking
Storage
Data Center Fabric
Middleware
Database
Web 2.0 Application
Runtime
JavaRuntime
DevelopmentTooling
Collaboration
Financials
CRM/ERP/HR
Industry Applications
THE CLOUD ? CLOUD SERVICE ?
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.9 19 februari 2010
Enterprise
Service Consumers
Service Integration Service Integration
Traditional Enterprise IT
Private Cloud
Services Services
Service Integration
PublicClouds
Services
Over time, IT workloads will move to Cloud delivery models as applicable for the client.
●Mission Critical●Packaged Apps●High Compliancy
●Test Systems●Developer Systems●Storage Cloud
●Compute as a Service●Storage as a Service●Software as a Service
Examples:
IBM sees different delivery models that will be used concurrently for the coming years to support all IT services depending on workload characteristics
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Single virtual appliance workloads Web application servers Test and Pre-production systems Mature packaged offerings, like e-mail and collaboration Software development environments Batch processing jobs with limited security requirements Isolated workloads where latency between components is not an issue Storage Solutions/Storage as a Service Backup Solutions/Backup & Restore as a Service Some data intensive workloads
Examples of workloads that we see moving to a cloud computing delivery or consumption model
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Workloads which depend on sensitive data normally restricted to the Enterprise Employee Information - Most companies are not ready to move their LDAP server into
a public cloud because of the sensitivity of the data Health Care Records - May not be ready to move until the security of the cloud provider
is well established Workloads composed of multiple, co-dependent services
High throughput online transaction processing Workloads requiring a high level of auditability, accountability
Workloads subject to Sarbanes-Oxley, for example Workloads based on 3rd party software which does not have a virtualization or
cloud aware licensing strategy Workloads requiring detailed chargeback or utilization measurement as required for
capacity planning or departmental level billing Workloads requiring customization (e.g. customized SaaS)
Examples of workloads which may not be ready for cloud delivery today?
2 What is Cloud Computing?What is Cloud Computing?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
2 What is Cloud Computing?What is Cloud Computing?
Overcoming inefficiencies
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Agenda
Why Cloud Computing?
What is Cloud Computing? (What isn’t?)
How should we go about it?
IBM Cloud Portfolio
Closing
1
2
3
4
5
IBM Cloud Computing
© 2010 IBM Nederland B.V.
When adopting cloud computing it is of great importance to use a structured approach to ensure outcomes of reduced costs, improved service and managed risks
3 How should we go about it?How should we go about it?
Approach*:
1. Create strategic view and define the benefits, which type of cloud services are most benefitial ?
2. Assess readiness of workloads to be migrated
3. Assess organisational, process, tooling and governance impact and start an adoption plan
4. Select implementation projects based on strategy and implement the selected workloads as IT services.
*For the first three steps IBM has consulting services available
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
IBM has introduced 3 choices to deploy workloads based on cloud computing
Smart Business Services – cloud services delivered.1. Standardized services on the IBM cloud.
2. Private cloud services, behind your firewall, built and/or run by IBM.
Smart Business Systems – purpose-built infrastructure.3. Integrated Service Delivery Platform
Analytics Collaboration Development and Test
Desktop and Devices
InfrastructureStorage
InfrastructureCompute
Business Services
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.
New deployment choices aligned to different workloads
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
IBM Lotus Liv e
IBM CloudBurst
IBM Smart Business Test
Cloud
IBM Smart Business Desktop
Cloud
IBM Smart Business
Storage Cloud
Analytics Collaboration Development and Test
Desktop and Devices
InfrastructureStorage
IBM Smart Analy tics Sy stem
IBM Smart Business f or
SMB (backed by the IBM cloud)
InfrastructureCompute
IBM Compute on
Demand
IBM Information Protection Serv ices
Business Services
IBM BPM Blueworks (Design
tools)
IBM Smart Business End
User Support-IBM Serv ice Assist
IBM Smart Business Desktop on the IBM Cloud
IBM Smart Analy tics Cloud
IBM LotusLive iNotes
IBM Smart Business Expense
Reporting on the IBM Cloud
IBM Information Archiv e
IBM Smart Business Dev & Test on the IBM
Cloud (Beta)
Lotus Foundation
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.
Transformation Roadmap – private cloud
Simplified
Consolidate
● Reduce infrastructure complexity
● Reduce staffing requirements
● Improve business resilience (manage fewer things better)
● Improve operational costs/reduce TCO
Shared
Virtualize
● Remove physical resource boundaries
● Increased hardware utilization
● Allocate less than physical boundary
● Reduce hardware costs
● Simplify deployments Dynamic
Automate
● Standardized Services
● Dramatically reduce deployment cycles
● Granular service metering and billing
● Massively scalable● Autonomic● Flexible delivery
enables new processes and services
● Self-Service● Elastic● Automatic service
metering and billing● Industrialized
service delivery● Economies of scale
Cloud
Optimize
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.18
A typical workload that is moving to private cloud delivery today is test workloads because of the challenges faced today
30% to 50% of all Servers within a typical IT environment are dedicated to Test
Most Test Servers run at less than 10% utilization, if they are running at all
IT staff report a top challenge is finding available resources to perform tests in order to move new applications into production
30% of all defects are caused by wrongly configured test environments
Testing backlog is often very long and single largest factor in the delay new application deployments
Test environments are seen as expensive and providing little real business value.
* “Industry Developments and Models – Global Testing Services: Coming of Age,” IDC, 2008 and IBM Internal Reports
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19
How can cloud computing characteristics improve the test environment?
Common attributes Characteristics Benefits
Advanced virtualization
Test resources are pooled and virtualized.
Providing efficient implementation-independent infrastructure.
Rapid provisioningTest resources are provisioned on demand.
Reducing test setup and execution time and eliminating errors
Service catalog ordering
Test environments are readily available.
Enabling visibility, control and automation.
Elastic scalingTest environments scale down and up by large factors as the needchanges.
Optimizing resources utilization.
Flexible pricingTest resources are priced on supported topology and project phases.
Offering pricing schemes options for tests and user acceptance.
Metering and billingTest resources used and reserved are charge-backed to LOBs.
Prioritizing innovative projects.
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.20
IBM Implementation Services for cloud computing – design and implementation for test environments
Customer Benefits:
Reduce IT labor cost by 50% + - reduce labor for configuration, operations, management and monitoring of the test environment
75% + Capital utlization improvement; Significant license cost reduction
Reduce Test Provisioning cycle times from weeks to minutes
Improve Quality- eliminate 30% + of all defects that come from faulty configurations.
Features:
• Assessment of current test environment to project savings and ROI
• Strategy, planning, design and implementation services of the solution
• Create self-service portal with catalog of services
• Integrated platform combining service request management, provisioning / de-provisioning and change and configuration management
Test Environments In the Cloud
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.
IBM CloudBurst: An Integrated Platform Built for GrowthData Center Optimization Through Modularity
Modular, Self-contained, Scalable Work load Delivery Platform
WORKLOAD A
Modular, Self-contained, Scalable Work load Delivery Platform
WORKLOAD B
Legacy Environment :NON – IBM SolutionsRequiring workload connectivity
WORKLOAD C
Service Management
Service Management
Service Management
Architectural and process level integration that delivers business aligned Visibility, Control and Automation of all Data Center Elements
End to End Service Management
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
An example: IBM Technology Adoption Program uses cloud to help reduce expenses and drive innovation.
Business challenge:Reduce operational expenses and
capital investment in order to fund innovation
Solution:Develop an internal “Collaboration
Innovation” cloud using IBM technology
Benefits: Dramatic labor (-80.7 percent) and
capital depreciation (-91.6 percent) savings
One of IBM’s most successful solutions with over 80,000 participants
Note: 5-year depreciation period with 5 percent discount rate
Annual cost of operation(- 79.0 percent)
$3.4M annual expense
Strategicchange capacity
Liberated funding for
transformation investment or direct saving
Depreciation (and amortization)
New development
Depreciation( - 91.6 percent)
Labor cost ( - 80.7 percent)
Deployment (1-time)
New development (for business-
enabling capabilities)
Software and other costs
Without cloud With cloud$1.03M annual expense
Software and other costs
Labor costs (operations
and maintenance)
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Year 1 Saving by Category
Sys. Admin. Cost42%Provisioning
Cost22%
Testing Productivity
25%
Hardware 10%
Software 1%
6.82 $302,958.33$935,880.13
308.91%102.97%
Payback Period (months)
Net Present Value (NPV) Total Initial Investment for Test Cloud
Estimated ROI over 3 yearsEstimated avg. annual ROI
ROI analysis example- medium # of servers
= Service Management driven savings
Cumulative Cost Comparison -- With and without Cloud
$0.00$500,000.00
$1,000,000.00$1,500,000.00$2,000,000.00$2,500,000.00$3,000,000.00$3,500,000.00$4,000,000.00$4,500,000.00$5,000,000.00
TransformationPoint
Year-1 Year-2 Year-3
Cumu
lative
Expe
nses
Current IT Model Accumulated Costs Test Cloud Model Accumulated Costs
ROI projections from IBM Research Study 2009
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.24
Service Management- the key to unlocking cloud savings
A service management system provides the visibility, control and automation needed for efficient cloud delivery in both public and private implementations:
● Simplify user interaction with IT● User friendly self-service interface accelerates time to
value● Service catalog enables standards which drive
consistent service delivery
● Provisioning enables policies to lower cost● Automated provisioning and de-provisioning speeds
service delivery ● Provisioning policies allow release and reuse of assets
● Increase system administrator productivity● Move from management silos to a service
management system
On average, 81% * of Cloud payback is driven by labor savings enabled by service management
*Average of the three studies referenced in this presentation which are based on IBM Research study 2009
3 How should we go about it?How should we go about it?
IBM Cloud Computing
© 2010 IBM Nederland B.V.19 februari 2010
Agenda
Why Cloud Computing?
What is Cloud Computing? (What isn’t?)
How should we go about it?
IBM Cloud Portfolio
Closing
1
2
3
4
5
IBM Cloud Computing
© 2010 IBM Nederland B.V.26
CLOUD ENABLING PRODUCTS & ASSETSService Management
Service Availability
Service Security
Virtual Resource
Pools
SystemsVirtualization Management
IBM Cloud Portfolio Strategy
Service Automation Manager
Virtualized Servers and Storage
Service Assets
Base IBM Products and Technologies
CloudConsulting
CloudImplementation
Enable our customers to leverage cloud computing through designing, building, and delivering
…bringing clarity and focus.
Cloud Delivered
4 IBM Cloud PortfolioIBM Cloud Portfolio
IBM Cloud Computing
© 2010 IBM Nederland B.V.27
Security ManagementSecuring virtual and physical networksEncrypt data outside company firewall
Providing access across various security domains
Service Delivery & ManagementAutomated delivery of Cloud services
Self-Service provisioning of virtual resourcesMonitoring and managing virtual resources
Optimizing usage of virtual resources
Cloud Component Offerings by IBM
Application Server Provisioning Dispensing virtual images
Storage ManagementData recovery for Cloud storage
Creating Cloud storage environment
Servers, StorageCreating virtualized infrastructure
IBM Systems and TechnologyIBM System Storage
Collaborative Application Lifecycle MgtQuality Management