This document discusses how new trends in technology are changing business needs and placing new demands on IT infrastructure. Mobile, social, cloud, big data and analytics are driving more dynamic workloads and the need for more agile and efficient IT environments. This is requiring infrastructure that is scalable, flexible, reliable, secure and manageable. The document argues that composable infrastructure solutions enabled by cloud help meet these new demands, allowing infrastructure to be more real-time, agile, efficient and open. It provides examples of how IBM solutions for storage, servers, software defined infrastructure and cognitive systems address these infrastructure challenges.
As much as the wrong infrastructure can hold you back, the right infrastructure – one built to deliver to the highest service levels – can help drive IT value and enable business innovation.
For 10 years, IBM has conducted an annual study with input from over 4,000 leaders in 70 countries. Our focus has mainly been senior executives representing more than 20 industries. Again, this year, CEOs have ranked technology as the most important external factor concerning their organizations and strategies. And leaders across the C-Suite ranked technology in the top 3. This is a profound statement about how enterprise leaders view the world, their priorities, and how they are preparing for the future. They know that by investing in technology, they can obtain a more competitive position and achieve a better outcome. For them, technology is not just part of the infrastructure needed to execute a business strategy. It’s what makes entirely new strategies possible.
The emergence of social, mobile, cloud, big data and analytics are fundamentally changing how we live, work and interact.
Mobile devices are ubiquitous. Changing consumer behaviors, supplanting PCs, generating massive amounts of data and putting new demands on the enterprise to not only support these devices but to adjust the way they do business.
Social technologies are changing the way we interact, communicate and share information – equally generating vast amounts of data and impacting business as they try to unlock the full potential social has to offer.
Cloud technologies bring new scale and efficiency to service delivery and enable more agile ways of doing business and drive business model innovation. For companies, It also brings information and applications to people at the right time and place.
All of these trends are fueling an explosion of data. Not only do enterprises need to store, manage and secure this data, they also need to derive meaningful insight from these vast amounts of data. Data is the basis of significant opportunity and a source of competitive advantage for all organizations. Data is a new economic asset, the next natural resource.
These trends are spawning new workloads, business processes and technology deployments that are putting unprecedented demands on our IT environments.
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Let’s first examine mobile. IDC estimates that 5B “intelligent devices” will be shipped by 2016 and over 10B by 20201. These mobile devices are dramatically impacting the number of connected devices. Consumers are changing their behaviors. Sixty three percent of people expect to be doing more shopping on their mobile devices over the next couple of years3. This all means that enterprises need to support an ever increasing number of computing devices and types of interactions – as mobile devices have supplanted the PC and consumer electronics2.
Social technologies are quickly becoming a key vehicle for interpersonal communication and sharing of information. Approximately, 40 percent of people socialize more on line then they do face-to-face5. With more than 1.5B people worldwide use social networking sites6. This is a staggering shift in how we live and interact. It’s impacting business. In 2012, 72 percent of companies use social technologies in some form, but most have not yet unlocked their full potential7. Interpersonal business communications is just one example. Gartner predicts that by 2014, 20 percent of business users will replace email as the primary source of communication with social networking services8.
Next, the power of cloud. By next year, 41 percent of enterprises are projected to have substantially implemented cloud technology into their practices – up from 13 percent in 2011 – that’s a 2x increase9. Why cloud? Cloud technologies bring new scale and efficiency to service delivery and enable more agile ways of doing business and drive business model innovation. 57 percent of companies say they use cloud to drive competitive and cost advantages. (This was a 2012 study conducted by the IBM Institute for Business Value, 572 business and technology executives were surveyed – 57% of survey respondents looking to cloud to drive competitive and cost advantages through vertical integration.) For companies, It also brings information and applications to people at the right time and place.
These trends are fueling an explosion of data. IDC projects that there will be a 300x growth of digital content between 2005 to 2020 – resulting in 40ZB of data in 2020. If 40ZB of data were grains of sand, it would translate into 57 times the amount of all of the grains of sand on all the beaches on earth.11 Of this data, 80 percent is unstructured and unstructured data is growing 15 times the rate of structured data13 That’s a lot of volume and variety of data. As far as velocity – there are over 1 billion tweets sent every 3 days12; 5 million trade events are clocked every day14; and 350 billion annual meter readings.14 Just to highlight a few. As new sources of data continue to grow in volume, variety and velocity, so too does their potential to revolutionize the decision-making processes in every industry—if organizations can analyze it all, extract insight and secure it. Data has become a new economic asset that is the basis of significant opportunity and a source of competitive advantage for all organizations. Sixty-seven percent of organizations see Big Data as an opportunity16.
These trends do not only change how we live, work and interact, but they are also changing what organizations and consumers expect – actually demand - from enterprises, including:
Instant access to information, products and services;
To be engaged as individuals, on their own terms – anytime and anywhere;
Transparency from the companies they interact with;
Trusted, mutually beneficial relationships that go beyond one-time transactions; and
Seamless experiences that match product and service quality
As customer expectations change, it is imperative that businesses accommodate customer preferences.
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Source:
1- IDC Directions Conference 2013.
2- Forrester, BT 2020: To Thrive In The Empowered Era, You’ll Need Software, Software Everywhere, Phil Murphy, January 30, 2012.
3 - http://files.latd.com/Latitude-Next-Gen-Retail-Study.pdf4- The Guardian (via http://www.ibm.com/smarterplanet/global/share/19jan2012/mobile_africa/)
5 - http://viewsfrom590.torstardigital.com/40-socialize-more-online-than-face-to-face/
6 – http://business.financialpost.com/2012/12/05/social-medias-productivity-boost/
7 – McKinsey Global Institute, The social economy: Unlocking value and productivity through social technologies, July 2012. http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_social_economy
8 – Gartner Reveals Five Social Software Predictions for 2010 and Beyond, February 2, 2010. http://www.gartner.com/newsroom/id/1293114
9 – IBM Institute for Business Value, The power of cloud: Driving business model innovation, 2012. https://w3-03.sso.ibm.com/sales/support/skp/g/b/e/n/gbe03470gben/GBE03470GBEN.PDF
10 - IDC, Industry Developments and Models, IDC Maturity Model, Cloud. March 2013.
11 – EMC-sponsored study by IDC. The Digital Universe in 2020: Big Data, Bigger Digital Shadows, Biggest Growth in the Far East, 2012. http://www.emc.com/leadership/digital-universe/index.htm
12 – CNN, “Is Twitter slowing down?”, May 31, 2012. http://www.cnn.com/2012/05/31/tech/web/twitter-pew-report
13 – Fidelty, 21st Century Investment Themes – Episode 5: Big Data – an ‘industrial revolution in data’. https://www.fidelityworldwideinvestment.com/middle-east/news-insight/21-century-themes/episode5.page
14 - http://www-01.ibm.com/software/data/bigdata/
15 - Gartner (via http://www.networkworld.com/news/2012/062512-gartner-cloud-260450.html)
16 - IBM MDI, 2H12 Information Management, Marketplace Assessment. September 2012. IBM MD&I, Google Analytics, Gartner, Informatica Big Data Survey, synthesis of primary and secondary research.
IT is experiencing a significant shift due to the massive amounts of data, new ways to deliver computing and the rise of social and mobile platforms. To support these new trends and workloads IT environments need to be more agile, efficient, responsive, flexible and secure - placing additional demands on the systems and processors we are running our IT on – the right infrastructure matters.
The IT environment is moving from monolithic applications to dynamic services; from structured data at rest to unstructured data in motion; from standard devices to unprecedented numbers and kinds of devices; from stable well-defined to unpredictable workloads; from static infrastructure to cloud services; from proprietary standards to open innovation; and from programmed systems to learning systems.
Most enterprises are challenged as their IT environments are not yet optimized to support this new era of computing. The old IT infrastructure is not good enough any more. What are the new requirements for our IT infrastructures?
These new workloads are placing additional demands on the systems and processors we are running our IT on – the right infrastructure matters, and the right infrastructure needs to be scalable, flexible, reliable, secure and manageable.
Social, Mobile, Cloud and Big Data all need the ability to run lots of processes in parallel, move data efficiently between storage and memory, and securely protect applications and users from one another.
The scalability of the system increasingly matters in order to support new workloads. As we reach the limits of Moore’s law, processors with multiple threads such as Power are able to help us increasing performance when the software has been optimized to make best use of them. Scaling horizontally by clustering large numbers of low-cost x86 servers works well for workloads with large numbers of parallel tasks, such as searching the Internet or high performance computing. but scaling vertically by symmetrical multiprocessing has much less latency between processors and works much better where there are lots of updates to data – such as with System z. Different workloads perform best on different processors
This need for flexibility then carries on to other areas. Business needs change fast, and the demands placed on IT will need to adapt quickly to these changing needs. There will be heterogeneity of storage – from traditional disks to newer Flash storage – balancing speed of access with cost. There will be heterogeneity of networks, from traditional routers to software-defined networking. There will be heterogeneity of compute nodes, from ARM chips in mobile devices, to Intel and AMD processors in front-end servers, to Power and System z processors in many systems of record. And these systems need to be highly configurable and optimized, such as our PureSystems integrated systems.
In our 24x7 society, applications need to be always available. When systems go wrong, how quickly can they recover, or how easily can another system take over their task. Part of this is down to how reliable the hardware is, and part is down to software management of high availability and redundancy so systems are resilient.
Sharing computers between users, for example in multi-tenant clouds, makes sense economically, but can the systems be trusted to provide rock-solid walls between different users and applications.
Finally, as systems become more complex, automation and orchestration becomes critical – it’s no longer good enough to have to manually allocate workloads to computing resource, since the demands on infrastructure are changing so fast. More on this later….
As the IT environment continues to evolve, clients are expecting more value from their IT.
Innovation and IT value must be derived from the exploitation of data.
IT must be simple, adaptable, optimized for these new workloads.
Open collaboration should enable integration and accelerate innovation.
To succeed in today’s cloud era of IT, organizations need the right infrastructure – which we view as designed for big data, defined by software for the cloud, and open and collaborative.
Designed for Big Data. A differentiated infrastructure must be able to handle all available data. Organizations require real-time insights by ingesting information from an exponential volume of all data types (streaming, at-rest structured data, video and images, etc.)
An infrastructure that’s designed for big data enables fast, advanced analytics and new insights while applying governance and security throughout. Cognitive systems learn dynamically and discover further insights. Predictive solutions harness the power of big data to deliver insights that competitors do not see.
Defined by Software for the Cloud. Regardless of whether you are deploying a Public, Private, or Dynamic Hybrid Cloud (a mix of both that leverages also your traditional IT environments) – the infrastructure that you build your cloud on matters. Cloud doesn’t float on air, it needs a solid infrastructure. It needs to be an infrastructure that delivers scalability – the ability to scale up and down when needed; and, security built up through the stack from the hardware components to the hypervisors and operating system.
Organizations are increasingly looking for flexibility, agility, responsiveness - and that's what software defined IT can do, as it improves automation of the infrastructure across server compute, storage and networking resources. In short, in a Software Defined Environment, IT becomes more simplified through standards, responsive to shifting requirements and adaptive through policy-based automations.
Open and collaborative. Open source, open standards and open systems offer speed of innovation, integration, flexibility and choice. As you can see here, we have a long-standing commitment to the open movement. We're backing many open standards, especially around software-defined environments and Cloud.
We have announced that all of IBM’s cloud services and software will be based on open cloud architecture – leveraging OpenStack.
OpenDaylight - This community-led and industry-supported open source framework will accelerate adoption, foster new innovation and create a more open and transparent approach to software defined networking.
And, most recently we announced the OpenPOWER Foundation, an open development alliance based on IBM's POWER microprocessor architecture. More on that in a little bit.
Guide to the Open & Collaborative timeline -
Feather = Apache Foundation, various open source projects from webservers to Hadoop for Big Data
Penguin = Linux operating system –supported across IBM servers (System x, Power, System z), IBM software and IBM services
Eclipse = community started by IBM, various open source projects including integrated development environment and rich client platform
KVM = open virtualization hypervisor based on Linux, currently on x86, being moved to Power
Open Virtualization Alliance - marketing alliance to promote KVM and open virtualization, now a Linux Foundation collaborative project
OpenStack = open cloud software to virtualize and manage compute, storage and networking, being used as the base of IBM's cloud software
Open Daylight = open source project for software-defined networking
OpenPOWER Foundation = open hardware and software around POWER architecture
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This slides highlights the 3 key messaging themes for the Power Brand – Designed for Data, Open Innovation Platform and Superior Cloud Economics
And also shows the value propositions for partners
The new and enhanced offerings are shown on the lower part of the slide
IBM has opened up design of POWER. Companies such as Google and NVIDIA are helping to design the next generation of systems built for Big Data and Analytics
Sources:
Improve write latency 93% and accelerate storage provisioning by 94% with IBM XIV Storage solutions. Client: Anadolubank in Turkey (Source: http://www-01.ibm.com/software/success/cssdb.nsf/CS/STRD-9A5D79?OpenDocument&Site=default&cty=en_us)
“In the past, our write latency was around 30 ms, so there was a risk of incomplete back-up cycles,” says Bayrak. “Before XIV, our daily back-up processes would still be running when we came to the office at nine in the morning. Because XIV is massively parallelized, its write latency is only 2 ms—a 93 percent improvement over our old system. For example, copying a single 30 GB file would take 20 minutes on our old system, but only two minutes on XIV. All back-up processes are now completed by 3 a.m. at the latest—ensuring back-ups are always done before production services resume.”
4X utilization increase and up to 90% more agility with dynamic provisioning and scaling with Platform Computing (Source: These are based on client case studies of typical achievements, going from 20% to 80% utilization and being able to schedule jobs much faster.)
CME Group (Chicago) - operator of the world’s leading and most diverse derivatives marketplace, trading 12 million contracts daily and managing nearly $100 billion in collateral – deployed the high-performance grid management software IBM® Platform™ Symphony — enabling the firm to complete analytics calculations for 700 times more portfolios in minutes, not hours.(Source: http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=AB&htmlfid=DCC03030USEN&attachment=DCC03030USEN.PDF&appname=STGE_DC_DC_USEN_CS)
A*STAR Computational Resource Center - the largest government funded research organization in South East Asia – implemented Platform LSF – which enabled A*CRC’s systems to maximize compute resources and reach 100 percent utilization. (Source: http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=AB&htmlfid=DCC03021USEN&attachment=DCC03021USEN.PDF&appname=STGE_DC_DC_USEN_CS)
The Wellcome Trust Sanger Institute (UK), a genome research centre set up in 1992 by the Wellcome Trust and the Medical Research Council in order to further the knowledge of genomes – deployed Platform LSF - which has helped the Institute to run up to half a million sequence matching jobs a day. (Source: http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=AB&htmlfid=DCC03025USEN&attachment=DCC03025USEN.PDF&appname=STGE_DC_DC_USEN_CS)
70% faster Cloud implementation and time to value with PureSystems (Source: http://www-01.ibm.com/software/tivoli/governance/action/04192012.html )
Open Virtualization with KVM and IBM servers delivers up to 30% better performance and 2x the maximum VM density (Source: ftp://public.dhe.ibm.com/linux/pdfs/KVM_Virtualized_IO_Performance_Paper_v2.pdf)
GPFS manages petabytes of data and billions of files to handle Smarter Enterprise workloads (Source: http://www-03.ibm.com/systems/software/gpfs/)
Storwize self-service automation reduces provisioning time up to 95% (Source: Based on internal IBM calculations)
zEnterprise EC12 has received the highest level of Security certification (EAL5) (Source: http://www-03.ibm.com/systems/z/advantages/security/solutions.html)
Provision virtual images up to 90% faster with SmartCloud Entry (Source: Based on outcomes from multiple clients)
Reduce server costs by 40% with IBM SmartCloud Entry solution for Power Systems. This Government agency in Prague also expects to achieve 10 times as much business with an IBM SmartCloud Entry solution for Power Systems. (Source: http://w3-01.ibm.com/sales/ssi/cgi-bin/ssialias?infotype=CR&subtype=NA&htmlfid=0CRDD-9EBDXC&appname=crmd)
Having been ranked number one by IDC in market share, demonstrates IBM’s software defined storage is making a difference, enabling and delivering best of breed Big Data and Analytics solutions.
Software defined storage delivers a new generation of efficiency and analytics to deliver;
faster business processes
Greater efficiency and productivity of resources, addressing the cost reduction often needed first, to unlock transformational spend.
And greater security and governance of data assets.
So what does this mean in business terms?
At a high level, it can reduce the resource effort required to manage an environment, by approximately half.
It can help a business understand how well its using its assets, and help UNLOCK those assets currently delivering zero value, improving bottom line costs.
And it can help the business understand what data they have. A study by InsideCounsel, showed that 40 to 70% of companies data is eligible for deletion. This can help not only with saving cost, but also reduce audit exposure.
Importantly, we can help clients realise the potential of their assets. Be that data, people and/or infrastructure.
So when it comes to improving operational efficiency.
A study by Edison Group, showed IBM’s infrastructure can take approximately half the amount of resource to manage, when compared to competitive solutions.
This affords the opportunity to half the number of staff required.
OR this can free up resource, from existing staff members, to be repurposed to perhaps implementing those new projects, applications, required to improve the business vs maintaining the status quo.
Cognitive process automation minimizes the resources required to manage infrastructure, whilst also driving greater asset efficiency, and service delivery.
Earlier, we spoke of how infrastructure is being utilized at just 50%. Indeed, many studies we do, we see clients with asset utilization as low as 30%. But even if we assume the client is at the upper end of the scale, 50% utilization is still not acceptable.
If you had bought and paid for a warehouse, would you find it acceptable to only be able to use half of it?
Is it acceptable, that for every dollar spent, you are only getting half a dollar of value in return?
Of course this is not acceptable.
50% Utilisation is not Acceptable in Business, it is not Acceptable in Data asset use
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1st, Its Time To Unlock those infrastructure Assets that have already been paid for.
Ensure maximum value can be realized from that asset investment.
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Next, we can help clients improve the return for every dollar spent.
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We can reduce the size of things being stored, to potentially double how much they can store in a given asset.
By storing twice as much, we can help potentially double the value of every dollar spent.
Through a combination of these steps, we can increase return on investment by up to 4 times.
And the good news for clients, is that the future is available today.
IBM Software defined storage environments can deliver this order of magnitude improvement TODAY.
When it comes to data, you pay for speed.
So understanding what data needs fast access, and when, is critical to both maximizing asset utilization, as well as making business processes run faster to deliver an improved service level.
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Leveraging analytics, infrastructure can become adaptive to changes in business demands. As changes in market dynamics drive changes in what data needs to be accessed, the solution adapts to ensure highest service levels are achievable. An example of this, a UK Bank drove significant savings by no longer having 80% of their data in the top tier, only what needed to be there, when it needed to be there.
Now with some business processes, we can identify when they need to be run, and for how long they need to be processed at optimal speed.
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With this example here, month end processing needs to be completed at the beginning of each month. From the study example discussed earlier, through leveraging best of breed infrastructure, the process is completed in 7 days. At which point, this process no longer requires high speed, and so can have its data moved to slower, lower cost infrastructure.
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Another business process, such as analysing staff productivity, can now be sped up, to ensure it can be processed as quickly as possible, to ensure staff resources are always utilised to their maximum, perhaps being redeployed to different tasks.
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At the end of the month, the payroll process needs to be completed, and can be accelerated, driving process efficiency.
Importantly, through analytics based automation, business process data can be accelerated, by being in the right place, at the right time. Improving efficiency of resources and assets, contributing to driving greater profit to the bottom line
So we have covered the value and how to change the economics.
Software defined storage helps enable a big data and analytics project, through delivering greater efficiency, unlocking assets already paid for, and optimizing infrastructure. This efficiency translates to budget efficiency, liberating budget to fund a Big Data and Analytics project.
So now onto the Infrastructure that Matters that enables and delivers the economics for Dig Data and Analytics.
The 1st part of the solution is IBM FlashSystem.
IBM is delivering best of breed Flash Storage, and according to a new research report from Gartner, IBM is the worldwide market leader in Flash Storage.
Flash is about Economics. It reduces costs and particularly for Big Data and Analytics implementations, can help enable new business growth opportunities by being able to understand market patterns faster.
Flash accelerates business process, which is key to analytics applications, as what use is an insight, if its out of date by the time you see it?
As we discussed earlier, speed of business process is about money
Extracting the value from data faster, enables decisions to be made faster, assets to be utilized better, and improves a client’s chances of outperforming their competitors.
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The next part to the solution for big data and analytics, is IBM’s Virtual Storage Center, which provides the Software Defined Storage layer to optimize data from traditional applications, such as databases and analytics based on them. Using analytics and infrastructure automation to reduce cost and unlock under utilized assets. Putting data in the right place at the right time, and through leveraging Flash, delivering business processes, FASTER.
We can see here from these customer examples, the order of magnitude savings IBM’s software defined storage drives. Helping customers to liberate funds for their big data and analytics project, whilst creating a data efficiency foundation, to enable control over data and cost growth in the future.
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And finally, we have the option for IBM Elastic Storage, another element to IBM’s Software Defined Storage offerings, enabling new workloads and building on the data foundation provided by Virtual Storage Center.
Elastic storage delivers scale for those clients doing analytics on vast amounts of data, like the client examples shown here.
Elastic also provides the ideal platform on which to build a global data analytics strategy, that can extend analytics scope to gaining real-time market insights, be they financial, social media or anything else relevant to a clients industry.
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NCAR – National Center for Atmospheric Research
The National Center for Atmospheric Research (NCAR) is a federally funded research and development center devoted to service, research and education in the atmospheric and related sciences. NCAR’s mission is to understand the behavior of the atmosphere and related physical, biological and social systems
IBM Supercomputer with 11 Petabytes on line and 14 Petabytes archive on tape
Infiniti Red Bull racing
Real time audio, video, GPS and telemetry feeds from the track to factory Ops Room to support race strategy decisions
Winner of Formula 1 both driver and constructor championships 4 years in a row: 2010, 2011, 2012 and 2013
Vestas
Analyzing over 20 Petabytes of data to pinpoint the optimal location for wind turbines to maximize power generation and reduce energy costs.
Reduced response time for wind forecasting information by approximately 97 percent — from weeks to hours — help cut development time
Reduced IT footprint and costs, and decreased energy consumption by 40 percent —all while increasing computational power
Speicher M1 (Germany)
Speicher M1 filled a gap in the market by developing a cloud-based platform for storing, managing and distributing digital media, built on IBM server and storage hardware, which provides integrated, cost-effective asset management. Enables global collaboration for film production with large video files.
And with IBM’s Software defined storage platforms being available on varying hardware platforms, IBM can supply solutions for clients from small to large. Being efficient, and addressing the economics, does not have to be the reserve of large enterprise customers.