[Cloud Summit 2010] Cezar Taurion - IBM

Cezar Taurion, Gerente de Novas Tecnologias, IBM Brasil
Agosto, 2010

Cloud Computing 2.0
Da curiosidade para o mundo real

Cezar Taurion
Gerente de Novas Tecnologias
Grupo de Estudos e Pesquisas em Cloud Computing

1 IM AR © 2010 IBM Corporation

Cloud Computing – Widespread Awareness

Source: “Bringing Cloud Into the Enterprise…and the Enterprise Into the Cloud”
IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

What is Cloud computing?

A new computing model where User 1
IT infrastructure, tools and
capabilities are delivered as a Internet Database & Storage
technologies Scalability
scalable service to customers
using internet technologies. User 2

It also depends on who you ask… Applications & platform
User 3

What is the cloud? Current pain points

A new way of using resources that reduces the number of systems in my Need to drive business results and transformation in a
CxO / LoB
portfolio and virtualizes my infrastructure rapidly changing environment.

CIO / Cloud computing helps me reduce my capital costs by not having to buy and
Need to reduce costs and improve service delivery
IT Manager maintain complex systems inhouse.

A way to quickly get the systems and configuration I want to test and build my Limited funds and tough to get spending approval on
Developers
applications development tools

Need to achieving work objectives with limited resources
End-User Use what I need without having to deal with IT department
due to cost-cutting

Difficult to make my customers switch from existing tools
Cloud Services Provider/ISV Changes my revenue model and helps me get new business
due to high transition costs


Cloud computing holds the promise of reducing IT operating costs… which
means, clients can do more with less

VIRTUALIZATION
+ STANDARDIZATION
+ AUTOMATION
= Reduced
Cost

….leverages virtualization, standardization and automation to free up operational budget for new investment

Capability From To
Server/Storage Utilization 10-20% Cloud is a synergistic fusion which 70-90%
accelerates business value across a
Self service None
wide variety of domains.
Unlimited

Test Provisioning Weeks Minutes

Change Management Months Days/Hours

Release Management Weeks Minutes

Metering/Billing Fixed cost model Granular

Payback period for new services Years Months

Legacy environments Cloud enabled enterprise


Beyond infra-as-a-service: The layers of IT-as-a -Service

Data Center
Servers Networking Storage
Fabric
Shared virtualized, dynamic provisioning

Infrastructure as a Service



Middleware Web 2.0 Application Java
High Volume Runtime Runtime
Transactions
Development
Database Tooling

Platform as a Service

Data Center
Fabric




Collaboration CRM/ERP/HR
Business Industry
Processes Applications
Software as a Service

Middleware Web 2.0 Application Java
High Volume Runtime Runtime
Transactions
Development
Database Tooling

Platform as a Service

Data Center
Fabric



Cloud Deployment Models


A cloud computing primer – your 60 second guide

A new model of IT Key ingredients:
delivery and •elasticity
Start consumption… …inspired by internet •PAYG
services in the •on-demand self-service
consumer space

Analogies - electricity Evolutionary, not A “confluence of
generation revolutionary – time technologies” –
and The sharing, hosting, ASP virtualization, SOA,
Model-T Ford multi-tennancy

Variants – public, Get to Near-term adoption
private, hybrid, know overstated, long-term
community, ? the impact underestimated – Finish
G-cloud add to Cloud all bets are off !
confusion stack
Source: Market Insights


What the Market is Telling Us
There is universal interest in cloud computing across all industries and geographies

• #1 reason to move to a public cloud is lower
total cost of ownership
Cost Take-out is
• Top reasons for moving to a private cloud
Key Driver include cost/resource efficiencies, as well as
enhancing speed and flexibility
• Security concerns are the top barrier to
adoption of both public and private clouds
Security is
• Experience managing large outsourcing
Top Concern engagements gives IBM the tools to manage
customers’ top cloud concerns
• Three distinctive end-user cloud buying
patterns are emerging: exploratory, solution-
Adoption Patterns are focused and transformational
Emerging • There are reports that public clouds are
being adopted faster than originally forecast

Industries under the • In terms of market opportunity, Financial
Services, Manufacturing, High Tech,
Greatest Pressure Government and Retail are the top five
Lead Interest in Cloud industries for cloud


Cost savings and faster time to value are the leading reasons why
companies consider cloud
To what degree would each of these factors induce you to acquire public cloud services?

Pay only for what we use • Hardware savings
Reduce
costs
Software licenses savings • Lower labor and IT 77%
support costs • Lower outside maintenance costs

Take advantage of latest functionality •
Faster time to
value
Simplify updating/upgrading • Speed deployment 72%
• Scale IT resources to meet needs

Improve Improve system reliability •
reliability Improve system availability 50%
Respondents could rate multiple drivers items

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090


Top Challenges in Moving to a Public or Private Cloud

Security concerns are the
most important fear among
IT decision-makers for both
public and private cloud,
especially public cloud.

Other factors, such as
- lack of technology
maturity
- lack of personnel skill
sets
- organizational
challenges and
- difficulty integrating with
existing infrastructure
will likely decrease over
time as cloud success
stories circulate.

Percent of Respondents
Source: “Cloud Computing Attitudes”, IDC, April, 2010

Drivers vs. Barriers


Cloud Adoption and Budgeting


We have identified the workloads that offer the most favorable entry
points for each of the cloud delivery models

Top public workloads Top private workloads
Audio/video/Web conferencing Data mining, text mining, or other analytics
Service help desk Security
Infrastructure for training and demonstration Data warehouses or data marts
WAN capacity Business continuity and disaster recovery
VoIP infrastructure Test environment infrastructure
Desktop Long-term data archiving/preservation
Test environment infrastructure Transactional databases
Storage Industry-specific applications
Data center network capacity ERP applications
Server

Infrastructure workloads Database- and application-oriented
emerge as most appropriate workloads emerge as most appropriate

15 IM AR Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090 © 2010 IBM Corporation

Cloud Workload Attractiveness

Email is set to see a 3x increase in cloud environments next year

16 IM AR Source: “CIO Survey – Moving to Cloud”, Morgan Stanley, May, 2010 © 2010 IBM Corporation

Software-as-a-Service (SaaS) is predicted to reach mainstream adoption in
2010, with Infrastructure-as-a-Service (IaaS) following after 2012
• However, IT leaders predict that IaaS will not account for the majority of infrastructure until
at least 2015


IBM’s Offering Approach


IBM Cloud Offerings


The IBM Cloud Delivery Models

IBM Smart Business Services
IBM Smart Business Services – Private Cloud
- Standardized Services on
Services, behind your firewall
the IBM Cloud
Delivery Model 1
Delivery Model 1 Delivery Model 2
Delivery Model 5
Enterprise Enterprise Enterprise Enterprise A
User User User
Data Center Data Center Enterprise B A B C
Enterprise C User User
Cloud scope Private Managed
D E
Private Cloud Hosted Private
Cloud
Cloud
Shared Cloud Public Cloud
IBM operated IBM owned and
IBM owned and Services Services
operated
operated

Operator Enterprise IBM

Ownership / Enterprise IBM
Location

Revenue Time & materials,
fixed price, etc. Time & materials, fixed
model price, pay-as-you-go Pay-as-you-go

Access Internal enterprise Access through
network VPN, public internet Public internet

Any enterprise/
Consumer Single enterprise Multiple enterprises user

Dedicated (single Mixed1 Multi-tenant2
Asset use tenant) (There are a set of assets that could
be flexibly allocated on a dedicated
basis to an multiple enterprise
depending on demand)

LotusLive é um portfolio de serviços

Web conferencing Colaboração E-Mail

IBM LotusLive Meetings IBM LotusLive Engage IBM LotusLive Notes
Integração de Web, audio e video provê serviços de compartilhamento de provê serviços de hospedagem de
conferência arquivos, mensagens instantäneas, Notes e Domino
redes sociais e gestão de atividades

IBM LotusLive iNotes®
IBM LotusLive Events IBM LotusLive Connections provê serviços de E-Mail com
Auxilia a criação, hospedagem e provê serviços que permitem a integração de segurança, funcionalidades e
gerenciamento de reuniões via OnLine suas redes de negocios com flexibilidade de acesso
compartilhamento de arquivos, mensagens
instantäneas e redes sociais

www.LotusLive.com

© 2010 IBM Corporation

Process
IBM CloudBurst delivers …

Features Benefits
Self-service
Portal
Improve service
Service Catalog

Automation Software

Pre-packed Automation
Templates Reduce cost
Built-in Virtualization

Single Delivery,
Installation & Price
Implementation
Services Easy
Single Support

© 2010 IBM Corporation

Self-Service Portal

Users can request the services they
need, when they need them, for the
time they need them
Eliminates manual processes for
requesting resources

…Improves customer satisfaction
by accelerating service delivery

Why Private Test Cloud ?

Test Environments

Key Features Benefits
Reduce IT labor cost by 50% + -
“Strategy”, planning, design, build and reduce labor for configuration, operations,
implementation of the solution management and monitoring of the test
environment
Create self-service portal with catalog of 75% + Capital utilization improvement;
services, calendaring, education and Significant license cost reduction
optional chargeback Reduce Test Provisioning cycle times
Integrated platform combining service from weeks to minutes
request management, provisioning / de- Improve Quality- eliminate 30% + of all
provisioning and change and configuration defects that come from faulty
management configurations.


Cloud computing is changing the application development landscape by giving the developers
instant access to computing resources (hardware & software)
Existing Application Development Future of Application Development
Budget Due to high set-up and Since there are no
approval infrastructure costs, capital expense,
approval from developers may not
management is required need approval from
in most cases Development higher levels
Development CIO team
team
Rent resources you
Capital investment to buy will need from cloud
hardware and software
The development team The development team
will assess in-house can provision computing
resources to determine resources from the
additional hardware cloud and change that
and/or software to be as needed
purchased. Provision instances required
Computing resources

Development team uses Development team only
resources to build pays for the resources
application. These that is actually uses
resources sit idle when
not in use
Develop application
Develop application

Once application is
developed, the
Application is hosted in computing resources
house and development are released and
and maintenance, application is hosted on
upgrades, and license the cloud. Customer
costs are passed on Customer pays only pays for what they
Support infrastructure and Customer pays customer regardless of Host application use
pay for maintenances and on cloud or on for what they use
fixed amount usage
license premise

Cloud Computing: Threat or opportunity for the CIO?

CIOs are worried that Cloud will bring about disruptive change to IT Operations

Line-of-business units going to “public cloud providers” for IT instead
Disintermediation of the traditional IT team
As some have said, it is “Client / Server all over again”

CIOs need to embrace the change, not resist it

Understand the benefits of cloud, as well as its drawbacks
Understand the public cloud providers capabilities and include these services in IT
offerings as it makes sense

With an IT strategy that embraces Cloud, CIOs can better satisfy their customers

Improves visibility of IT use, more responsive, simpler, cheaper
Requires an overall strategic vision with pragmatic, evolutionary approach
Increases range of services, applications, and capabilities available to clients


We believe there are 6 key steps to a Cloud strategy

Create IT Roadmap Assess Workload Determine the Cloud
Delivery Model
Standard

E-Mail, Software Enterprise
Collaboration Development
Workload

Hybrid
Cloud
Data
Private Test and Pre-
Cloud Intensive
Production
Processing
Trad
e
Custom

m

Trad IT Private Public
Ti

IT
Hybrid
Database ERP
Capital Rent
Financial

Define Business Value
Establish Architecture Implement Cloud
End Cloud Service
Users, Services Planning
Operators
Platform & Computing
Software Applications Infrastructure
Service
Role Definition
Based Platform Bus
Access
Tools
Email
Service Apps
Infrastructure Publishing
Tools

Sys
Service BPM Systems Storage
Service Cloud Platform Fulfillment & Mgmt
Catalog Config Tools
BSS
Operational Service
Console OSS
Reporting & Info Web
Analytics
Mgmt Svr Network


Which aspects of your IT portfolio have an affinity for Cloud?

The Cloud-Affinity of existing applications depends on multiple factors:
Compliance and cross-border issues, site-dependency (for performance or data size), app-
specific benefits of migration, and the ease and cost of migration.

Low Cloud affinity

High Cloud affinity

Analysis of IBM Americas’ internal applications*


Which aspects of your IT portfolio have an affinity for Cloud?

Cloud as a supplement where risk and migration
cost may be too high
– Database
– Transaction processing
– ERP workloads
– Highly regulated workloads

Can be standardized for cloud
– Web infrastructure applications
– Collaboration infrastructure
– Development and test
– High Performance Computing

Made possible by cloud
– High volume, low cost analytics
– Collaborative Business Networks
– Industry scale “smart” applications

29

Business Case Results:
IBM Technology Adopter’s Portal (IBM TAP)

Without Cloud With Cloud IBM TAP is an ideal
100% New Liberated funding environment for private cloud
Development for new
development,
implementation
Software Costs trans-formation Strategic
investment or Change By implementing virtualization
direct saving Capacity
and automated provisioning,
Power Costs
TAP was able to:
Current Reduce from 488 servers to 55
IT
Labor Costs Deployment (1x)
Spend
(Operations and Reduce from 15 admins to 2
Software Costs
Maintenance)
Reduce hardware, power, and
Hardware,
labor costs 83.8%
Power Costs
( - 88.8%) labor & power
Hardware Costs
savings Clients who have already
(annualized) Labor Costs
( - 80.7%)
reduced annual adopted virtualization and
cost of
Hardware Costs operation automated provisioning will
( - 88.7%) by 83.8% see different results
Note: 3-Year Depreciation Period with 10% Discount Rate


A Cloud Enabled Data Center
Providing a simplified, dynamic, automated data center solution enabling
enterprises to deliver services faster and in a cost effective manner

Dev & Test Zone QA Zone Production Zone
• Application Lifecycle • Multi-tier • Multi-tier infrastructure
Management infrastructure Virtual Web / App / Database
•
• Rational Jazz
Service Request • Eclipse Open Source Networks
& Operations
Administrators
Self-service UI

Virtual Servers, Storage, Network
Security

Cloud Administration
Service Management
Tivoli Service Tivoli Provisioning
Automation Mgr Manager

Tivoli Monitoring: Tivoli Usage &
Netcool Accounting Mgr

WAN
BSS OSS
Virtual Machine
Migration
Data Center #1 Data Center #2

Concluindo…


Towards “cloud utopia”: Will an IT “asset lighter” model become
increasingly common within the enterprise over the next few years?

Cloud as a disrupter
Cloud computing could potentially be the most seismic market disruption ever seen in the industry and might be the start
of the move towards “everything-as-a-service”, culminating in the “IT asset-lite” enterprise as the de facto model

Mostly internal IT Challenge to Cloud Hype 2012 + ?
Build and manage most internal IT Elements of alternative IT “asset lighter” enterprise
IT in-house The rise in outsourcing delivery (eg SaaS) in increasingly mainstream
early phase

Pre-mid 80’s Mid-90s 2000 2010 2015

Dot Com Boom “On Demand 1.0” Economic Pressures
Application Service e-business as a A confluence of technologies
Provider (ASP) model ill- viable model (virtualization, multi-tenancy, etc.),
fated forerunner to cloud together with the economic
downturn stimulates even more
interest in cloud computing


Cloud computing and the “Perfect IT Storm”: Prepare for a very bumpy
ride in the new market norm

Cloud is the 4th major era of computing
Cloud computing will create massive disruptions and
Brought about by a confluence of technologies substitutions to the traditional IT paradigm
The way hardware and software markets work today (the
Plus, radically changing buying decisions borne way they are bought, sold, packaged, marketed and the
out of economic necessity ecosystem that supports them), will all look very different
a decade from today
– “even more for even less”
– consumerization of IT Source: IBM Market Insights

But, critically, net spending will be materially lower

Global Spend on IT Products & Services
Global IT spend peaked sometime
between 2005 and 2008. IT spend will
than in the current IT paradigm be on a downward trajectory over the
next decade Network Era
Caused by a bundling and shared use of previously
user owned / managed IT IT’s New Norm
2010 +

We are calling this the decomposition of previous PC / Client-
Server Era
IT value elements
Mainframe Era

1960s 1980s 2000s 2020


The realities of cloud versus hype
Reality Today Cloud Hype Future Reality
So, no “BIG BANG” !

Trad. SO Trad. SO

Which is why we
Everything in the
cloud and all at once
don’t see too many
Internal IT plus 3rd party Sourcing mixture -
for some things retain legacy, plus cracks…yet
private/hybrid, public
Source: Market Insights and Gartner

Nevertheless, the evolutionary process to cloud is beginning to reach a critical phase
2008 – What is 2009 – How would our 2010 – Have budget –
cloud? (education) org benefit (pilots) best investment areas ?
Adoption and migration to end goals differ
– Enterprise with lots of legacy / significant investment will be more cautious
– Commonly accepted wisdom is LEs will adopt via a private cloud (DC 2.0) build-out first. Risk is they take a trial / incremental basis straight to
public clouds. MI is calling this the private cloud bypass scenario. Intuitively, SMB, start-ups unlikely to pursue private cloud route
Scope / role of internal IT changes – fewer staff, procure / orchestrate cloud SPs

Source: Market Insights


We are in the midst of a pronounced shift from client-server to cloud
computing; as a result next generation data centers are likely to
become services-oriented in the medium-term (3 to 5 years)

Virtualization &
Automation IT as a Service

Via Public Clouds

Via Private Networks
Hosted
Infrastructure Application as a service
Users build/configure
their own applications, Compute as a service
Data Center but rely on managed
infrastructure service Storage as a service
Consolidation providers to deploy, run
IT resources and maintain complex Desktop as a service Large scale, common,
consolidated into infrastructure
standard IT functions
large data centers Business process as a
(e.g., email, storage)
Traditional service
Data Center
Client/server
on premise
model

Timeline


Cloud Enables Global Industry Transformations


In summary…

Cloud computing is a disruptive change to the way IT
services are delivered

Without a strategy, Cloud computing can be a threat to the
CIO and IT team
– IT services delivered over the Internet
– Perceived cost gap between a cloud service and
traditional IT
– “The next client/server”

With a strategy, Cloud computing is a huge opportunity for
the CIO
– Lower cost of delivery for some workloads
– More responsive IT
– Ability to optimize delivery using traditional, private
cloud, and public cloud
– Greater visibility in billing / chargeback to LOBs
– Greater range of available services, applications, and
capabilities


IBM developerWorks: Your entry point
Logon to IBM developerWorks to access IBM Development & Test Cloud and all IBM and Business Partner offerings to help you develop and enable cloud services.

ibm.com/developerworks/spaces/cloud

Obrigado!
Cezar Taurion
ctaurion@br.ibm.com
www.ibm.com/developerworks/blogs/page/ctaurion
www.computingonclouds.wordpress.com


[Cloud Summit 2010] Cezar Taurion - IBM

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[Cloud Summit 2010] Cezar Taurion - IBM