Annette Miller annmil@us.ibm.com Dynamic Infrastructure Offerings, Cloud Computing Lead Cloud Computing for STG Business Partners © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Why do you care about selling cloud? There is nearly universal interest in Cloud computing – 40% of customers use Cloud computing today and nearly all are interested in using it in the future (IBM Value Proposition Quantitative Research Phase II Global Report - December 2008) – 58% CIOs believe cloud computing will cause a radical shift in IT…47% already using or actively researching. – CIO Magazine C-level executives are looking to reduce cost, drive innovation and competitive advantage and asking how cloud can help Customers are planning now & going to vendors & analysts for advice “We’re going to do this with or without you” Comment from a data center manager – “We’ve been told to look at cloud. There are 1000 people in our IT organization, and we have 1000 different opinions” Our competition is talking to your customers – if you don’t, we lose You need to establish IBM cloud leadership mindshare with your customers – Use this to identify pragmatic, short-term opportunities to sell and move the customer forward 1 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Cloud Services delivered from a Dynamic Infrastructure. A dynamic infrastructure provides a foundation for efficient delivery of cloud based services. Smart Work New Intelligence * Business Process as a service Green & Beyond *Information as a Service * Energy Mgmt as a Service Infrastructure as a Service Dynamic Infrastructure Cloud has multiple possible deployment models (public, private, or hybrid) Cloud also has multiple layers of service (application, platform or infrastructure provided as a service) * Examples only – there are multiple possible types of cloud services aligned to smart work, new intelligence , green & beyond 2 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Delivery characteristics drive the IBM definition of Cloud Computing Cloud Computing is a new consumption and delivery model inspired by consumer Internet services. Cloud Computing exhibits the following key characteristics: 1. 2. 3. 4. 5. On-demand self-service Ubiquitous network access Location independent resource pooling Rapid elasticity Pay per use/ flexible pricing models, eg, pay per use Service Consumers Monitor & Manage Services & Resources Datacenter Infrastructure Access Services IT Cloud Cloud Administrator 3 Service Catalog, Component Library Component Vendors/ Software Publishers Publish & Update Components, Service Templates © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet New consumption and delivery models drive new sourcing options and business flexibility Private … Client owned – managed by client or services provider. Public … Cloud Services Cloud Computing Model Access defined by client. Standardized services on the provider’s cloud. Access by subscription. Considerations … Speed & flexibility. Standardization. Security, privacy, resiliency. GOVERNANCE 4 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Public Cloud Providers Are A New Challenge To Enterprise Data Centers Line-of-business units can now go to public cloud providers for IT infrastructure services, eg: – Amazon Web Services (AWS) – Microsoft Azure Low cost, pay-per-use model seen as more cost-effective – Amazon EC2: $0.10/hour (small Linux/UNIX instance) Near-immediate provisioning enables users to respond at market speed – 64-node Linux cluster available in 5 minutes on AWS vs. 3 months internally1 Threatens disintermediation of firm’s IT strategy and information assets 1 5 http://www.informationweek.com/cloud-computing/blog/archives/2009/01/whats_next_in_t.html © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet What Is The Solution? Much of cloud computing revenue opportunity in the next three years will be driven by private cloud implementations Cisco and HP are in our customer accounts trying to win the business – Much of what they call cloud is IT infrastructure plays which you know how to sell How to counter Cisco and HP – Use IBM Cloud Strategy to tell the story and advise clients – Make use of IBM’s Dynamic Infrastructure for Cloud to counter IT proposals from Cisco and HP being presented as cloud – IBM can go head to head with Cisco UCS & HP Matrix • Team up with IBM to offer IBM CloudBurst, and integrated hw, sw and services solution IBM Dynamic Infrastructure for Cloud: Reinvent the data center to build a more flexible infrastructure – a critical part of a successful cloud deployment – Take Cost Out • Virtualization and consolidation – Request-Driven Provisioning • Automatic self service • Pay-as-you-go chargeback Provide private cloud services to the enterprise 6 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet An effective Cloud Computing deployment is built on a Dynamic Infrastructure and is highly optimized to achieve more with less…. CLOUD COMPUTING VIRTUALIZATION + STANDARDIZATION + AUTOMATION = Reduced Cost …leveraging virtualization, standardization and automation to free up operational budget for new investment. 7 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet A dynamic infrastructure provides the foundation for effective cloud services delivery Cloud Services Delivery Elastic Scaling Rapidly provisioned Flexible pricing Ease of use Standardized offerings Required Infrastructure Characteristics for effective Cloud Delivery 8 Open standards-based, service-oriented Advanced virtualization and automated mgmt Common components and processes Advanced security and resiliency Easy to use service catalog © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Labor Leverage Infrastructure Leverage Major factors driving cloud economics 9 Virtualization of Hardware Drives lower capital requirements Utilization of Infrastructure Virtualized environments only get benefits of scale if they are highly utilized Automation of Management Take repeatable tasks and automate Standardization of Workloads More complexity = less automation possible = people needed © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet The key building blocks of clouds are familiar… 10 Simplification/ Consolidation Advanced Virtual Resource Pools Consolidation, systems management, and monitoring Reduce infrastructure complexity, staffing requirements, and costs Improve business resilience and utilization Remove physical resource boundaries Allocate less than physical boundary Improve scalability, increase utilization Reduce hardware costs Advanced Service Management Service catalog, metering, and automated deployment of virtualized resources Integrated virtualization management with IT processes Reduce overhead, improve productivity User Self Service Centralized, robust, self serve portal for 24X7 access to tools, information, IT and business services Improve user satisfaction & productivity Control and manage delivery, support & administrative costs System pools with VMControl … Tivoli Service Automation Manager © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet IBM has invested to achieve insight, innovation and breakthrough solutions IBM Transformation Academic Alliance Hundreds of client engagements. Global collaboration. 20 Cloud centers. 800+ students. $1.5 Billion savings. Proof-of-concepts. Technology Adoption Program “TAP cloud” for 110,000 employees. IBM Research/ Client collaborations. NSF grants to 14 schools. 155 data centers to five. 16,000 applications to 4,500. Carnegie Mellon 11 “Project Blue Cloud” NedBank iTricity 27 Universities. Wuxi HCMC Univ of Technology © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Business Case Results – IBM Technology Adoption Program Without Cloud New Development 100% Software Costs With Cloud Liberated funding for new development, trans-formation investment or direct saving Strategic Change Capacity The IBM TAP business case represents an ideal environment for a private cloud implementation. By implementing virtualization and automated provisioning, the team was able to: Power Costs Reduce from 488 servers to 55 Reduce from 15 admins to 2 Reduce Power costs (fewer servers) Current IT Spend Labor Costs (Operations and Maintenance) Deployment (1-time) Software Costs Business Case Results: Annual savings: $3.3M (84%) from $3.9M to $0.6M Power Costs (88.8%) Hardware Costs (annualized) Labor Costs ( - 80.7%) Hardware Costs ( - 88.7%) Hardware, labor & power savings re-duced annual cost of operation by 83.8% Payback Period: 73 days Net Present Value (NPV): $7.5M Internal Rate of Return (IRR): 496% Return On Investment (ROI): 1039% Note: 3-Year Depreciation Period with 10% Discount Rate 12 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Private Cloud Cost Advantage Cost Per Image for Linux Workloads (5 Yr TCO) Cost per Workload/Image 300000 $285K Facilities & Administration Software $253K 250000 Hardware/Compute Instance 200000 Private Cloud Cost Advantage 150000 100000 $71.1K $55.8K $57.7K 50000 0 Buy Standalone Servers 13 Public Cloud (AWS) SWG Competitive Project Office Study Private Cloud x86 hypervisor Private Cloud z/VM Add IFLs to z10 EC Private Cloud Power/VM (p570) © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Delivering Cloud Computing to our Clients Workload Optimized – workload characteristics will drive the rate and degree of standardization of IT and business services. Integrated Service Management – increasing complexity of IT systems necessitates enhanced service management visibility, control and automation Choice of Delivery Models – public, private and other consumption models reflect clients’ differing circumstances and needs IBM offers 3 delivery models by workload Smart Business Services cloud services delivered Smart Business Systems purpose-built infrastructure Enterprise Data Center Cloud Private Cloud Hardware Software Services Standardized services on the IBM cloud 14 Private cloud services, behind your firewall, built and/or run by IBM Integrated Service Delivery Platform © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Cloud usage should be tailored to the workload Workloads where risk and migration cost may be too high: Database Transaction processing ERP workloads Highly regulated workloads Workloads which can be standardized for cloud: Web infrastructure applications Collaboration infrastructure Development and test High Performance Computing New workloads made possible by cloud: High volume, low cost analytics Collaborative Business Networks Industry scale “smart” applications 15 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet Delivering Cloud Computing to our Clients Sample of cloud computing offerings IBM offers 3 delivery models by workload Smart Business Services cloud services delivered Smart Business Systems purpose-built infrastructure Enterprise Data Center Cloud Private Cloud Hardware Software Services Standardized services on the IBM cloud Collaboration: Analytics: IBM Lotus Live IBM Smart Analytics Cloud ** IBM Lotus Live iNotes Infrastructure Compute: IBM Computing on Demand … 16 Private cloud services, behind your firewall, built and/or run by IBM Integrated Service Delivery Platform Infrastructure Compute: IBM CloudBurst ** Infrastructure Compute: IBM Smart Business Test Cloud ** ** team with IBM for these solutions © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Chart can be used with customers after Oct 20th announcements IBM Dynamic Infrastructure Building Blocks for Cloud Computing Virtualized servers and storage – System x, IBM BladeCenter, iDataplex, Power Systems, System z – SAN Volume Controller IBM Systems Director VMControl – Standard Edition •Image Management – Enterprise Edition -- New •Virtual System Pools IBM Solution Edition for Cloud Computing (System z) -- New – Standard IBM offering to create a cloud computing management and infrastructure for hosting private clouds IBM WebSphere CloudBurst Appliance 1.1 – Dispense & manage WebSphere images in a cloud VMControl TSAM Tivoli Service Automation Manager 7.2 – New release – Cornerstone for IBM's Service Management Center for cloud computing. – Provides the ability to request, deploy, and helps manage clouds with simple entry points WebSphere CloudBurst Virtualized Virtualized Virtualized Systems Systems Systems 17 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet How do you get started with a customer: A practical approach… Dynamic Infrastructure for Cloud Plan & Prepare Condition the existing infrastructure for cloud Define a cloud strategy & roadmap •Virtualize and automate existing systems •Add service management (provisioning, service catalog, user interface)** •Choose an initial project and understand the workload characteristics •Assess cloud deployment models, service options •Plan cloud strategy and roadmap Start with an isolated cloud deployment Test & Deploy •Choose low-risk workload such as test and development – we have a pattern established •Focus on defining services to be provided, what will be different •Measure ROI Develop a broader plan with ongoing ROI •Services can provide thought leadership •IBM can deliver capabilities however your customer wants to acquire Extend & Evolve 18 **Note: Dynamic Infrastructure service mgmt includes Tivoli Service Automation Manager (TSAM) © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet How IBM Business Partners can help Action Define a cloud strategy & roadmap Condition client’s infrastructure for cloud 19 Key Questions Plan & Prepare How IBM BPs can help 1. Does client have a basic understanding of cloud computing? 2. Does client have a cloud strategy? 3. Are client workloads good candidates for cloud computing? 4. Is client IT infrastructure cloud ready 5. Would client like to assess its cloud readiness and define a roadmap? IBM Cloud Website 1. Has client consolidated the server/storage/application environment? 2. Is client fully optimizing the capabilities of a virtualized server/storage/application infrastructure? 3. Is client network infrastructure optimized to support cloud? 4. Is client implementing a service management platform and a service catalog? Dynamic Infrastructure for Cloud consolidation & virtualization Dynamic Infrastructure for Cloud optimization solution Dynamic Infrastructure for Cloud network solutions Dynamic Infrastructure for Cloud service management solutions Schedule a IBM Cloud briefing Analyze client work loads Dynamic Infrastructure for Cloud Team with IBM for Infrastructure Strategy and Planning Services for Cloud © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet How IBM can help Test & Deploy Action 20 Key Questions How IBM can help Choose a pilot project 1. Which workloads are client considering for a pilot? Advise which workloads are lower risk for initial pilots Standardize applications & systems for pilot 1. Has client standardized its operating system configurations? 2. Does client have a flexible IT environment, eg, dynamically provisioning & service catalog, standard application configuration? Dynamic Infrastructure for Cloud Virtualization Dynamic Infrastructure for Cloud service management © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet How IBM can help Examples of cloud-delivered services Action Key Questions How IBM can help Review or develop cloud computing roadmap 1. Have you identified what aspects of your portfolio (workloads) could benefit from a cloud computing model? 2. Is this situation better suited for a public or private cloud? 3. Have you prioritized based on business value return? IBM Business Partners can work with you to condition your infrastructure. Augment with public or private cloud services 1. 2. 3. 4. IBM Business Partners can help you assess your skills or help with the implementation of the infrastructure. Implement solution 1. Is this a private cloud services deployment? Do you have the right skills? Do you have the right infrastructure elements? Can you control access the cloud with policies? Can you securely access and use the cloud? 2. Is this a public cloud services acquisition? 21 Extend & Evolve Examples of cloud services are: LotusLive Computing on Demand © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Dynamic Infrastructure for Cloud Selling the infrastructure for a private cloud 1) Present together Dynamic Infrastructure for Cloud and IBM Cloud vision: strategy, business impact, savings, technology Cloud provides an additional Dynamic Infrastructure reason of call 2) Show ROI examples of Dynamic Infrastructure for Cloud 3) Show IBM differentiation: Many customers will start small, but strategically move into a cross-platform infrastructure Use TCO advantages of a Dynamic Infrastructure for private cloud 4) Leverage IBM Optionally offer a Cloud Computing Infrastructure Workshop (engage STG lab services) Use the SWG Competitive Project Office study – If you need help from the CPO, email Scott Bain, sbain@us.ibm.com 5) Contain the scope Focus on how to prepare for successful outcome, Dynamic Infrastructure for Cloud key If you don’t, discussions could go on forever Recommend that client starts with Dynamic Infrastructure for Cloud 6) If a client already has a dynamic infrastructure and wants to deploy cloud Team with IBM Focus on private cloud and start small Test/dev is a good low risk workload that can quickly offer ROI Plan & deploy initial pilot project 22 © 2009 IBM Corporation Chart can be used with customers Dynamic Infrastructure: Helping Build a Smarter Planet IBM Case Studies 23 Resource Description Link Cloud computing saves time, money, and shortens production cycles TAP’s role is to prototype and deploy new IBM technologies with 100,000 early adopters who will test-drive and provide feedback on new applications. Link to case study Cloud computing improves productivity in IBM Benchmark and Learning Centers The technical support demands of the Benchmark and European Learning Center in Montpellier, France are high. Before the adoption of cloud computing, provisioning the IT infrastructure for a benchmark or course required more than a week of intensive labor. Link to case study IBM Research doubles its productivity with cloud computing IBM researchers can testify first hand to the benefits of cloud computing. The labs are living workshops scattered around the globe where cuttingedge innovations for new technology, services, IT optimization, streaming workflow and disaster recovery are forged. Link to case study IBM Computing on Demand uses clouds to increase productivity Computing on Demand (CoD), utilizes cloud computing technology to deliver the computing capacity customers want, when they want it and only for the time period they require it. It’s this on-demand feature that makes CoD so customer-friendly. Link to case study Based on their feedback, IBM decides which of the myriad new technology applications to move into production. © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet For more information … Cloud Computing Sales Kit, seller & customer education, deliverables, white papers System z seller education for cloud computing Advantages of a Dynamic Infrastructure: A Closer Look at Private Cloud TCO – This paper examines the TCO for a dynamic infrastructure built around private cloud services and compares it to public cloud alternatives as well as conventional one-application-per-distributed server models. Pulse 2009 -- The ROI of Cloud Computing: Getting the Most Out of Your Investment – PPT presentation – Benefits of cloud computing and ROI through consolidation and virtualization of IT resources and increasing management efficiency. Gartner co-authored paper: Dynamic Infrastructure – Driving Success – This paper, which is co-authored by Gartner, outlines the need for a dynamic infrastructure, a strategy for developing one, and some best practices and options to consider when getting started. Cloud Computing: A Highly Resilient Solution for Service Delivery – Gartner defines cloud computing as a style of computing where scalable and elastic IT-enabled capabilities are provided as a service to external customers using Internet technologies and further discusses cloud computing in detail. CloudBurst Sales Kit for BPs Computing on Demand Sales Kit for BPs Cloud IBM TV Ads Cloud Customer Site Smart Analytics Education Cloud Connect Community 24 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Contacts Anne Peck: AG Dynamic Infrastructure – apeck@us.ibm.com Alice Moran: AG BP Cloud Sales Play – amoran@us.ibm.com Gary Tomchuk: AG BPO Cloud Communications – gthomchu@us.ibm.com Kathy Church: AG BP Cloud Enablement Execution – kchurch@us.ibm.com Annette Miller: WW Dynamic Infrastructure Offering Team, Cloud Computing Lead – annmil@us.ibm.com 25 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Call to Action Understand the strategy Be conversant in Dynamic Infrastructure and Cloud Computing Leverage Dynamic Infrastructure for Cloud - both Virtualization + Service Management are KEY Team with IBM if a client wants to pilot cloud Have a discussion with your customer Understand their approach to delivering services – use whiteboarding to discuss service management Identify opportunities by probing for places we can help, especially with a test/development scenario Propose next steps to progress your opportunity Sell Dynamic Infrastructure for Cloud 26 Leverage our briefing centers so you can showcase our capabilities for your customer © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet 27 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet SWG Competitive Project Office TCO Study 28 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Cost Per Image for Linux Workloads (5 Yr TCO) Cost per Workload/Image 300000 $285K Facilities & Administration Software $253K 250000 Hardware/Compute Instance 200000 Private Cloud Cost Advantage 150000 100000 $71.1K $55.8K $57.7K 50000 0 Buy Standalone Servers 29 Public Cloud (AWS) Private Cloud x86 hypervisor Private Cloud z/VM Add IFL’s to z10 EC Private Cloud Power/VM (p570) © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Cost Per Image for Linux Workloads (5 Yr TCO) Cost per Workload/Image 300000 Facilities & Administration Software $253K 250000 Hardware/Compute Instance 200000 Private Cloud Cost Advantage 150000 100000 $71.1K $84.3K $57.7K $55.8K 50000 0 30 $285K Buy Standalone Servers Public Cloud (AWS) Private Cloud x86 hypervisor Private Cloud z/VM Add IFL’s to z10 EC Private Cloud z/VM Buy New z10 BC Private Cloud Power/VM (p570) © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Tivoli Services Automation Manager (TSAM) Delivers Fast Self-Service Provisioning 31 TSAM leverages two stable and mature Tivoli products to create a user friendly provisioning solution Tivoli Service Request Manager (TSRM) provides the web-based interface with service desk and service catalog Tivoli Provisioning Manager (TPM) provides the automation infrastructure required to deploy new servers © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Example – Deploy New Virtual Server Based On Existing Image 1. User requests service via portal from the catalog 2. TSAM approves user request, reserves hostname 3. TSAM starts the deployment process via Tivoli Provisioning Manager workflow Use service Request service IBM Tivoli Service Automation Manager (TSAM) IBM Tivoli Service Request Manager Self Service Portal Catalog Auto Manage IBM Tivoli Provisioning Manager 4. TSAM notifies the user that service is ready on the new LPAR Deploy Service Hypervisor Hardware 32 © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet Tivoli Usage and Accounting Manager (TUAM) Helps Facilitate Pay-AsYou-Go Chargeback Key Requirements for Metering and Billing 33 Tivoli Usage and Accounting Manager Capability Who is consuming which IT resources? Data collectors for IT infrastructure can review consumption across multiple dimensions What is the cost of those resources, including those that are shared? Costing engine assigns cost to resource usage How should IT allocate cost for chargeback, ROI, costing analysis, and reporting/billing? Costing and reporting engine associates and report usage costs to consumers of IT resources © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet SWG CPO TCO Study Summary 34 Escalating business requirements driving need for data center transformation – – – – Take costs out Consume less power Provision service faster Improve chargeback to pay-as-you-go Emergence of public cloud providers of IT infrastructure threatens disintermediation of IT Implementing a private cloud provides a lower cost alternative to meet business requirements IBM offers new capabilities for self-service access and easy deployment into a private cloud Return to mainline presentation © 2009 IBM Corporation Dynamic Infrastructure: Helping Build a Smarter Planet http://w3.ibm.com/software/cpo 35 © 2009 IBM Corporation