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© 2011 IBM Corporation Chesapeake Technology Council The New Economics of Cloud Computing… Scott Sadler Cloud Business Development Executive IBM Channels & Mid-Market, East IMT [email protected]

CRTC Cloud- Scott Sadler

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Presentation from Chesapeake Regional Tech Council\'s TechFocus Seminar on Cloud Security; Presented by Scott C Sadler, Business Development Executive - Cloud Computing, IBM US East Mid-Market & Channels on Thursday, October 27, 2011. http://www.chesapeaketech.org

Text of CRTC Cloud- Scott Sadler

  • 1. The New Economics of Cloud Computing Chesapeake Technology Council Scott Sadler Cloud Business Development Executive IBM Channels & Mid-Market, East IMT [email_address]

2. A Crisis of Complexity The Need for Progress is Clear 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. Explosion of information driving 54% growth in storage shipments every year.1.5x Soon 1 trillion connected devices 70 per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities . 3. Nothing Is Changing More than IT The way it s applied For insight The way it s accessed UbiquitouslyThe way it s architected Integrated and flexible 4. By 2011, the world will be 10 times more instrumented then it was in 2006. Internet connected devices will leap from 500M to 1 Trillion by 2013 10/28/11 Cloud Computing Strategic View 2005 2006 2007 2008 2009 2010 2011 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Exabytes RFID, Digital TV, MP3 players, Digital cameras, Camera phones, VoIP, Medical imaging, Laptops, smart meters, multi-player games, Satellite images, GPS, ATMs, Scanners, Sensors, Digital radio, DLP theaters,Telematics , Peer - to - peer, Email, Instant messaging, Videoconferencing, CAD/CAM, Toys, Industrial machines, Security systems, Appliances 10x growth in five years Approximately 70% of the digital universe is created by individuals, but enterprises are responsible for 85%of the security, privacy, reliability, and compliance. 5. Organizations are struggling to progress toward a more flexible infrastructure

  • How do I respond to the pressure to cut costs, reduce risk and complexity?
  • How do I react more quickly to take advantage of new opportunities?
  • How do I move my data center architecture into the future?
  • A lot of buzz on cloud, where is the best place to start and how?

Cloud Computing Strategic View 10/28/11 Source: 2009 IBM CEO Survey 6. We Are Entering the Next Era of Computing The Era of Insight for Discovery

  • Created by the integration of Big data in Optimized systems, managed as a Cloud
  • Applied to deliver new insights and drive innovation
  • Twice the capacity for service on a flat budget

Big Data Cloud Optimized Systems 7. Cloud computing is extending its impact Cloud Computing Strategic View 10/28/11 An Enabler ofBusiness Transformation

  • Changing the economics of IT
  • Automating service delivery
  • Radically exploiting standardization
  • Rapidly deploying new capabilities

An Evolution ofInformation Technology

  • Enabling new business models
  • Supporting speed and innovation
  • Re-engineering business processes
  • Providing new levels of collaboration

becoming a catalyst for transformation. 8. 10/28/11 Cloud Computing Strategic View 1990 2009 Software as a Service Utility Computing Grid Computing Cloud Computing

  • A new paradigm for consumption and delivery of IT based services
  • Enhanced User Experience (Self Service UI)
  • Flexible Pricing (Pay Per Usage)
  • Enables flexible Delivery - and Sourcing Models(Private, Public, & Hybrid Clouds)
  • Automated Provisioning and Elastic Scalingon a highly virtualized Infrastructure

High QualityUser Experience Significantly Improved Supply Economics Clouds will transform the information technology (IT) industryprofoundly change the way people work and companies operate. = ReducedCostVIRTUALIZATION + SERVICE MANAGEMENT + STANDARDIZATION AUTOMATION + SECURITY + Flexibility 9. What is different about cloud computing ? Cloud Computing Strategic View 10/28/11 With cloud computing

  • Virtualized resources
  • Automated service management
  • Standardized services
  • Location independent
  • Rapid scalability
  • Self-service
  • Software
  • Hardware
  • Storage
  • Networking

10. Beyond the hype . . .

  • Cloud is a new consumption and delivery model inspired by consumer Internet services...
  • With 5 key characteristics:
    • 1.On-demand self-service
    • 2.Ubiquitous network access
    • 3.Location independent resource pooling
    • 4.Rapid elasticity
    • 5.Pay per use

Cloud Computing Strategic View 10/28/11 11. There are three ways to acquire IT capabilities 10/28/11 Cloud Computing Strategic View Cloud computing is a new delivery and consumption model or methodology spanning all 3 ways. Software, hardwareand services Pre-integrated systems and appliances Provided asservices 12. Major factors influencing cloud computing economics Cloud Computing Strategic View 10/28/11 Infrastructure leverage Virtualization of hardware Virtualization driveslower capital requirements Utilization of infrastructure Virtualized environments onlyget benefits of scaleif they are highly utilized Labor leverage Standardization of workloads Lower complexity = more automationpossible = reduced IT labor costs Automation of management Automation takes repeatable tasks and automates services, reducing IT operation costs Self-service Clients that can serve themselves require less support and have easier access to services 13. Many IT- aaS models are being discussed, including four main Cloud categories 10/28/11 Cloud Computing Strategic View Market Examples IBM Examples Software-as-a-Service Collaboration FinancialsCRM/ERP/HR IndustryApplications Infrastructure-as-a-Service Servers Networking Storage Data CenterFabric Shared virtualized, dynamic provisioning Platform-as-a-Service Middleware Database Web 2.0 Application Runtime Java Runtime Development Tooling Business Process-as-a-Service EmployeeBenefits Mgmt. Industry-specific Processes Procurement Business Travel 14. A Spectrum of deployment options for cloud computing Cloud Computing Strategic View 10/28/11 Private Public Hybrid IT capabilities are provided as a service, over an intranet, within the enterprise and behind the firewall Internal and external service deliverymethods are integrated IT activities / functions are provided as a service, over the Internet Third-party operated Third-party hostedand operated Enterprisedata centerEnterprisedata centerPrivate cloud Hosted private cloud Managedprivate cloud EnterpriseShared cloud services A EnterpriseB Public cloud services A Users B 15. Cloud Computing Strategic View 10/28/11 Cloud will be adopted based on workloads Readyfor Cloud May not yet be ready for migration Sensitive Data Complex processes & transactions Regulation sensitive Not yet virtualized3 rdparty SW Highly customized Analytics Collaboration Development& Test Workplace, Desktop & Devices Infrastructure Storage Infrastructure Compute Business ProcessesIndustry Applications Pre- production systemsInformation intensive Isolated workloads Mature workloadsBatch processing New workloads made possible by clouds Medical Imaging Financial Risk Collaborative Care Energy Management Disaster Recovery 16.

  • Workload characteristics determine standardization

10/28/11 Cloud Computing Strategic View

  • Web infrastructure applications
  • Collaborative infrastructure
  • Development and test
  • High Performance Computing
  • ...

Test for Standardization Examine for Risk

  • Database
  • Transaction processing
  • ERP workloads
  • Highly regulated workloads
  • ...
  • High volume, low cost analytics
  • Collaborative Business Networks
  • Industry scale smart applications
  • ...

Explore New Workloads 17. Cloud Standards help drive consistency and interoperability

  • Cloud platforms are diverse; open standards are critical:
    • Visit: TheOpenGroup&CloudBestPractices.net
    • Cloud Reference Architecture -http://cloudbestpractices.net/2011/08/07/ibm-ccra/
  • The Open Cloud Manifesto outlines standards principles:
    • Existing standards should be reused
    • All standards efforts should be based on customer requirements
    • Standards development efforts should stay coordinated
    • Visit :http://www.opencloudmanifesto.org/

10/28/11 Cloud Computing Strategic View

  • Standards organizations to drive new standards
    • Virtualization
    • Security
    • Common interfaces (to ensure flexibility in moving applications and data)
    • Management

Standards Taxonomy Types ofStandards SaaS PaaS IaaS Enterprise Across Vendors within a cloud Cross - Cloud Within an Enterprise Cloud to Enterprise 18. Consider Joining theCloud Standards Customer Council

    • Drive user requirements into standards development process.
    • Establish the criteria for open standards based cloud computing.
    • Deliver content in the form of best practices, case studies, use cases, requirements, gap analysis and recommendations forcloud standards.

On April 7, 2011 industry leaders from across the world formed thefirst customer led consortiumdesigned to shape the face of open standards based cloud computing. Join your colleaguesincluding Citi Group, Lockheed Martin, State Street,Open Management Group,North Carolina State University - and over 220 other organizations !

    • Participation. Primarily C-Level executive, VP of Development, IT management,Enterprise architects, cloud strategy
    • Meetings Monthly virtual meetings.Quarterly face-to-face co-located at OMG events. Participation through forums and subgroups.
    • Oversight Managed by OMG with Corp sponsorship (similar to SOA Consortium)
    • Leadership Founding members form steering committee
    • Standards Development This group will not produce standards but will provide guidance to existing standards development organizations

Structure

    • Web Presence-Community, Webcasts, Case studies, blog, vendor showcase, whitepapers, case studies awards.
    • Candidate Deliverables ready to use content in the form of use cases, case studies, requirements, gap analysis and recommendations for cloud standards, and training.
    • Awareness Drumbeat of awareness utilizing events, press, books, analysts partnerships and media.

Deliverables http://www.cloudstandardscustomercouncil.org/ 19. Integrate a cloud computing deployment as part of the existing IT optimization strategy and roadmap 10/28/11 Cloud Computing Strategic View Consolidate Virtualize Standardize and Automate

    • Reduce infrastructure complexity
    • Reduce staffing requirements
    • Manage fewer things better
    • Lower operational costs
    • Remove physical resource boundaries
    • Increase hardware utilization
    • Reduce hardwarecosts
    • Simplify deployments
    • Standardize services
    • Reduce deployment cycles
    • Enable scalability
    • Flexible delivery

20. A systematic approach to cloud computing can ensure a successful implementation... 10/28/11 Cloud Computing Strategic View DeliverPlan Build

  • Integrate
  • 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
  • Pilot
  • Deploy
  • Consume
  • Manage
  • Optimize

21. Cloud Computing Strategic View 10/28/11 Considerations when adopting cloud computing

  • Client migration will be work load driven
    • Workload characteristics are critical
    • New workloads will emerge as cloud makes them affordable (eg Pervasive Analytics, Test & Dev, Storage, VDI, etc)
  • Public vs. Private trade-off considerations
  • Benefits
  • Increased Speed
  • Lower Cost
  • Security
  • Insecure or incomplete data deletion
  • Isolation failure
  • Malicious Insiders
  • Management infrastructure compromise
  • Governance
  • Resiliency
  • Level and source of support
  • Architectural& management control
  • Compliance
  • Customization / Specialization
  • Cloud economics look compelling for
  • some workloads
    • Small companies will adopt as reliable,
    • easy-to-use services are available
    • Scale economics are within reach of many
    • enterprises
  • Cloud value in some cases will come from
  • faster time to value
    • Cloud provides speed and flexibility in some
    • situations
    • New business opportunities can be enabled

22. Steps to success 10/28/11 Cloud Computing Strategic View Create IT Roadmap Capital PrivateCloud HybridCloud Time Trad IT Rent FinancialWorkload Custom Standard Capital PrivateCloud HybridCloud Time Trad IT Rent FinancialCustom Standard Capital PrivateCloud HybridCloud Time Trad IT Rent FinancialCustom Standard E - Mail,Collaboration Software Development Test and Pre - Production Data Intensive Processing Database ERP E - Mail,Collaboration Software Development Test and Pre - Production Data Intensive Processing Database ERP E - Mail,Collaboration Software Development Test and Pre - Production Data Intensive Processing Database ERP Assess WorkloadEnterprise Private Public Hybrid Trad IT Enterprise Private Public Hybrid Trad IT Enterprise Private Public Hybrid Trad IT Determine the CloudDelivery Model Define Business Value Establish Architecture ServiceDefinition Tools ServicePublishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics Service Planning Role Based Access OSS BSS Infrastructure PlatformSoftwareEndUsers, Operators Service Catalog Operational Console CloudServices Cloud Platform ServiceDefinition Tools ServicePublishing Tools Service Fulfillment & Config Tools Service Reporting & Analytics Service Planning Role Based Access OSS OSS BSS BSS Infrastructure Infrastructure PlatformPlatformSoftwareSoftwareEndUsers, Operators Service Catalog Operational Console CloudServices Cloud Platform Implement Cloud Systems Storage Network Computing Infrastructure Platform &Applications Email BusApps BPM SysMgmt InfoMgmt WebSvr Systems Storage Network Computing Infrastructure Platform &Applications Email BusApps BPM SysMgmt InfoMgmt WebSvr Systems Storage Network Computing Infrastructure Platform &Applications Email BusApps BPM SysMgmt InfoMgmt WebSvr Email BusApps BPM SysMgmt InfoMgmt WebSvr 23. 10/28/11 Cloud Computing Strategic View Thank you!