IDC Cloud Computing Roadshow 2012 Hotel Marriott, Warsaw, Poland, October 16, 2012

1. Tapping Current IT Trends to
Boost Company Performance
Piotr Pietrzak
IDC Cloud Computing Roadshow 2012
Hotel Marriott, Warsaw, Poland, October 16, 2012
e: piotr.pietrzak@pl.ibm.com
t: @piotrpietrzak

2. 2 © 2012 IBM Corporation

3. Evolu&on
of
„tech”
in
&me
• Inter-
Galactic
• Physical / Communications Reach
• 1902 • ~2015
• Galactic Electric Typewriter Voyager I
will leave
c al • ›
• Physi
• ~1800 • 1927 Solar system • ›
• Solar First Typewriter Television • 1969 • 2151
•  • 2063 Enterprise
System • 1896 Man Reaches
1st Warp NX-01
• 405BC Radio the Moon
• ~1960 Drive
Heliograph • 1837 • 
• Planetary Morse’s
Telephone • 
• 196BC • 2000
• 1792 Telegraph • Digital International
Rosetta Stone
• ~1041 Semaphores
• Inter- Divide• Space Station
Pi Sheng
Continental Printing Press
• ~1450 1989
The WEB
• Digital
• 3000BC • 2000BC Gutenberg
Papyrus Alphabetic Writing Printing Press • 1969 • 1987Communities
• Continental Internet MMORPG
• 2400BC
• 1991 • 2006
Courier System
• 1943 3D MMORPG Second Life
• Regional • 6000BC-4000BC Colossus • 1981
• Industrial IBM PC
Symbolic • Industrialization • Information Age
Revolution
Writing
• Local and
• Egyptian Dynasties • Roman Empire • Middle Ages • Renaissance and Sub- Digital Communities
Urbanization Urbanization
• 3500BC • 2000BC • 1000BC • 0 • 500 • 1000 • 1500 • 1700 • 1800 • 1850 • 1900 • 1950 • 2000
• Engineered Roads • 770 • 1672 • 1804 • 1903
• 3500BC
Iron Horseshoes Steam car Steam Airplane
Wheeled Carts • 2000BC
Locomotive
& River Boats Horses Tamed • 1947
• 1783 • 1908 Supersonic
Hot Air Automobile
Flight
Balloon Assembly Line
• 1926 • 1967
Liquid Concorde
• Exploration and Exploitation Fueled
by Ocean Going Ships Rocket
• W oparciu o : http://en.wikipedia.org/wiki/List_of_timelines
3 © 2012 IBM Corporation

4. Our Industry has been driven by Continual Improvement
and Disruptive Innovation !
$1000 Buys: Computations per second
1E+12
Integrated
Circuit
1E+9 Discrete
Transistor
1E+6 Vacuum
Tube
Electro-
1E+3 Mechanical
Mechanical
1E+0
1E-3
1E-5
1900 1920 1940 1960 1980 2000 2020
Source: Kurzweil 1999 – Moravec 1998
4 © 2012 IBM Corporation

5. 4 Technologies that Will Change the World –
and IBM Will Lead !
Cognitive Computing
Compute+
Learn § “Synapse” devices
Natural
Language+ Program
Analytics
Deep Q&A
Computers
BIG/Fast
§ Data + analytics
00 X
à 1,000,0
(zettabytes +
1,000 lanet
milli / microseconds
Big Data Smarter P s + People)
f Thing
(Internet o
Exascale
(Datacenter-in-a-box)
§ Massive parallelism
1000X § Flexible system
optimization
Workload
Optimized
Systems
Nano Systems
(Systems-on-a-chip)
§ Photonics
Nano
1B Transistors
1000X 1T Devices
§ DNA Transistor
Devices
Power7 chip
5 © 2012 IBM Corporation

6. Exascale Computing
A billion calculations in a billionth of a second
Overall Performance = 1000X
Performance / watt = 135X
1 PetaFlop Performance / $ = 1000X
72 BG/P Racks Footprint = <2%
Referenced to one-petaflop system
CPU Silicon
Phase Photonics
Change
Memory 3D
Software
The Next Ten Years
1 PetaFlop = 1/3 rack
2009 2019
6 © 2012 IBM Corporation

7. We Are Entering a New Era
Smart Systems Era
Computing
Computer Intelligence
Era
Tabulating
Era
Time
7 © 2012 IBM Corporation

8. For us to make sense of this new world, we must
consider four critical questions
“Data is exploding “New business & “My infrastructure is “Our resources
and it’s in silos” process demands inflexible and
are limited”
” costly”
• I Need Insight • I Need to • I need to • I Need
Work Smart respond quickly Efficiency
• How can we take • How can we
• How do we drive
advantage of the work smarter • How do we create greater efficiencies,
wealth of supported by an infrastructure compete more
information flexible and that drives down effectively, and
available in real dynamic cost, is intelligent respond more
time from a processes and secure, and is quickly by taking
multitude of modeled for the just as dynamic as action now on
sources to make new way people today’s business energy, the
more intelligent buy, live & work? climate ? environment, and
choices?
sustainability?
• New • Smart • Green &
• Dynamic
Intelligence • Work Infrastructure Beyond
8 © 2012 IBM Corporation

9. New technologies and delivery models will usher in
a new era of computing
Virtualization Converged Networking Cloud
Management
Virtual machine Converged network Cloud computing
densities continue devices become the is a new consumption
to rise. Virtualization dominate player. and delivery model
management is Network optimization that leverages
becoming the critical software needs to Virtualization,
factor for virtualization keep pace with the Automation, and
success. hardware advancements. Standardization.
Smart Devices Analytics & Big Data Workload Optimized
Smart devices will Explosion of Maintaining
grow 4x from 2009 embedded devices, a price performance
to 2014. Server mobile, and social curve requires hardware
infrastructure will networking creates and software integration.
be needed to new opportunities Optimizing workloads
support resulting for Web and data is another form of
edge/presentation, analytics. This need integration.
application, and spans multiple industries
database such as Finance,
workloads. Healthcare, and Manufacturing.
9

10. Seven Basic Pillars to look into
Provide visibility, control and automation
• Service Management across all the business and IT assets to
deliver higher value services.
Maximizing the value of critical business
• Asset Management and
IT assets over their lifecycle with industry
tailored asset management solutions.
Leadership virtualization and consolidation
• Virtualization solutions that reduce cost, improve asset
utilization, and speed provisioning of new
services.
• Address energy, environment, and
• Energy Efficiency sustainability challenges and opportunities
across your business and IT infrastructure.
Maintaining continuous business and IT
• Business Resiliency operations while rapidly adapting and
responding to risks and opportunities.
End to end industry customized
• Security governance, risk management and
compliance solutions.
Helping businesses achieve information
• Information Infrastructure compliance, availability, retention, and
security objectives.
10 © 2012 IBM Corporation

11. The impact of technology is extending to driving greater business
value
• An
Evolu)on
of
Informa)on
Technology
§ Changing
the
economics
of
IT
• Internal
IT
• Efficiencies
Focused
§ Automa)ng
service
delivery
§ Radically
exploi)ng
standardiza)on
§ Rapidly
deploying
new
capabili)es
• Business
•
An
Enabler
of
Business
Transforma)on
and
Process
§ Crea)ng
new
business
models
Focused
• Transforma)on
§ Enabling
speed
and
innova)on
§ Re-­‐engineering
business
processes
§ Suppor)ng
new
levels
of
collabora)on
11
• 11 © 2012 IBM Corporation

12. Technology enables business imperatives and supports
innovation … it can :
§ Improves asset utilization and lowers TCO
§ Increases responsiveness
§ Provides open, elastic IT environments
§ Optimizes IT investments & reduces fixed costs
§ Supports globalization and globally available resources
§ Enables real-time data streams and information sharing
• 1212 • Cloud Computing
© 2012 IBM Corporation
• 10/16/12

13. Current Technology Delivers both IT and Business Benefits
• Higher utilization
• Virtualization • Economy of scale benefits • Lower Cost
• Lower capital expenditures
• Lower operating expense
• Faster cycle times
• Automation • Lower support costs
• Increased Speed
• Improved compliance
• Optimized security
• Easier access
• Standardization • Flexible pricing • Improved Flexibility
• Reuse & share
• Easier to integrate
13
• 13 © 2012 IBM Corporation

14. … and creates new challenges for the CIO.
§ Ensuring scalability and responsiveness
§ Managing systems & security
§ Supporting audits & certifications
§ Managing the proliferation of systems &
applications
§ Integrating “cloud” and enterprise services
§ Providing a range of services
§ Providing technical support
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• Cloud Computing

15. Developing the technology strategy and
implementation plan is the first step for the CIO.
Without a strategy, new technologies like cloud can be a threat to the CIO and the IT team
• Reduced control of IT services delivered over the Internet
• Perceived cost gap between a cloud service delivered by providers outside of the
IT team and “traditional” services delivered by IT
With a strategy, new tech is a huge opportunity for the CIO
• Lower costs, more responsive IT, optimized delivery
• Greater range of services and capabilities
• Greater visibility in billing / chargeback to LOBs
• Better control of the users’ systems, desktops, and services access
Usual 5 Steps
IT Roadmap Workload Enterprise & Public
Architecture Implementation
Assessment Cloud Mix
Standard
End Cloud Service
Users, Services Planning Platform & Computing
Operators
E-Mail, Software Enterprise Applications Infrastructure
Software
Collaboration Development
Workload
Service
Hybrid Role Definition Bus
Based
Platform Tools Email
Cloud Access Apps
Service
Data
Private Infrastructure Publishing
Test and Pre-
Tools Intensive
Cloud Production
Processing Trad Sys
BPM Systems Storage
Custom
Trad Service Cloud Platform
Service
Fulfillment & IT Private Public Mgmt
IT Catalog Config Tools
BSS
Operational
Console
Service
Reporting & Hybrid Info Web
OSS Analytics Database ERP Mgmt Svr Network
Capital Rent
Financial
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• Cloud Computing

16. Layers of abstraction that enable service delivery.
Services & Applications
SOA Characteristics
§ Applications reused in
new dynamic ways Middleware
§ Services combined from
multiple sources
§ Rapid deployment Virtualized Infrastructure
§ Services route to any
available resource
§ Distributed access
Physical Infrastructure
• 1616 • Cloud Computing
© 2012 IBM Corporation
• 10/16/12

17. How to start
• Business Initiatives
Service Asset Virtualization Information Energy Security Business
Management Management and Infrastructure Efficiency Resilience
Consolidation
Strategy
Recognize
Interdependencies • Define or Refine an IT Strategy aligned with Business Strategies and
Initiatives by
Tie to Business
Strategy
Architecture
and Design • Examining Current & Desired Architectures, Standards and Governance
Standards and
Governance
Implementatio
n and
Maintenance • Implementing and Maintaining Processes
17 © 2012 IBM Corporation
• 17

18. • Company Business Strategy
• •
• Are your initiatives aligned with company business strategy ?
? ?
• BUSINESS and IT INITIATIVES
• •
? • Do your IT projects promote business initiatives ? ?
• IT PROJECTS
• •
? • Is your infrastructure able to sustain your IT Projects ?
?
• IT INFRASTRUCTURE
Service Assets Virtualisation Information Energy Security Business
Management Management & consolidation Infrastructure Efficiency Resiliensy
• БИЗНЕС СТРАТЕГИЯ
• Prioritize projects, Develop Roadmaps and Recommendations, Define next steps
18 © 2012 IBM Corporation

19. IT Provider relationship model
§ How would you describe the relationship between the business units and IT?
§ How does the business request services from IT?
§ How important is the cost of a project vs the need to develop a solution that
provides leading capability in your industry?
• IT Initiatives Focus Area Matrix: by
execution phase (Strategy, Design &
Architecture, Implementation &
maintenance)
• Strategic Alignment Assessment: How
does the business view IT? Do IT
initiatives align with what the business
needs from IT?
§ Summary Assessment : Current vs. desired
future state assessment of IT capabilities.
§ Customized selected roadmaps: Based on
client priority, showing projects by
initiative and interdependencies.
§ Key observations and recommendations
for IT strategic alignment and infrastructure
§ List of candidate project descriptions: For
entries in the roadmap that will
incrementally advance IT capabilities
19 towards the desired future state. © 2012 IBM Corporation

20. Demonstrating ROI shows the business value of technology/project
and the value of the IT Department …
1. Identify Key
Performance
Indicators (KPIs) for
the Organization
2. Capture Metrics for
Baseline and Target
Environments
3. Calculate Results
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• Cloud Computing

21. .. and can show impact on the financial statement.
Expenses - Income Statement
Cost of Goods Sold Cost of Goods Sold :
Materials Reduce material waste and increase production assets reuse through
decreased error rates and workload optimization
Production
Total Cost of Goods Sold
SG&A :
Reduce maintenance overhead and labor requirements through automation
Operating Expenses and standardization
Selling, General and Administrative
Depreciation :
Research and Development Reduce depreciation through postponement of capital expenditure
Depreciation and Amortization
Utilities Utilities :
Reduce energy consumption (power and cooling) through workload
Other Overhead Costs optimization and consolidation
Total Operating Expenses
Interest Expense :
Interest Expense Reduce interest expense through postponement of new loans
Taxes
NET INCOME
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• Cloud Computing

22. The result: The CIO enables growth & innovation.
• Rapid response to new business
requirements
Agile / • Improved risk management and
Optimized business resiliency
Business
Managemen • More efficient pricing and capacity
t utilization
• Flexible, self-service delivery for
users, based on requested qualities
of service
Flexible
Service • Improved time to market and
Delivery acceleration of innovation projects
• Lower costs including capital and
operational expenditures
• Availability of skilled resources to
Lower Cost focus on high value innovative
of Running projects
Business
• Improved energy efficiency and
reduce idle time---
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• Cloud Computing

23. The majority of respondents (55 percent) believe
that cloud computing has a lower total cost
Cost of Cloud of ownership (TCO).
2011 Future of Cloud Computing Survey: 417 Survey respondents: 46% vendors, 54% non-vendors
North Bridge www.futurecloudcomputing.net June 22, 2011
Quote source: http://www.businesswire.com/news/home/20110622006602/en/Future-Cloud-Computing-Survey-Reveals-Drivers-Cloud
23 © 2012 IBM Corporation

24. On average, cloud users report saving 21
percent annually on those applications
moved to the cloud.
URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/
Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html
among current cloud users...
according to the AFCOM poll of 360 IT managers and other senior IT executives.
24 © 2012 IBM Corporation

25. Among current cloud users, 84 percent
said they cut application costs by
moving to the cloud.
URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/
Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html
“among current cloud users...”
“according to the AFCOM poll of 360 IT managers and other senior IT executives.”
25 © 2012 IBM Corporation

26. Thank you!
For more information, please visit:
ibm.com/cloud
or contact me at:
piotr.pietrzak@pl.ibm.com
http://twitter.com/piotrpietrzak
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• Cloud Computing