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2 Challenges we face everyday...

3 Is cloud computing really new? Yes, and no.Cloud computing is a new consumption and delivery model inspired by consumer Internet services. Cloud computing exhibits the following 5 key characteristics: On-demand self-service Ubiquitous network access Location independent resource pooling Rapid elasticity Pay per use While the technology is not new, the end user focus of self-service, self-management leveraging these technologies is new. Usage Tracking Web 2.0 Business Services IT Services End User Focused Service Automation & SOA Virtualization 3

4 Operational Definition for Cloud ComputingA user experience and a business model Cloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provided as standardized offerings to users over the web in a flexible pricing model. An infrastructure management and services delivery methodology Cloud computing is a way of managing large numbers of highly virtualized resources such that from a management perspective, they can be automatically aggregated to deliver services. This can then be used to deliver services with elastic scaling. Service Consumers Datacenter Infrastructure Access Services Monitor & Manage Services & Resources IT Cloud Arrivo quindi alla definizione IBM di cloud ... Non volevo imporla, ma sostanzialmente si rifa agli stessi concetti. Risorse IT fornite come offering stanrdadizzati, e quindi catalogo servizi ... Servizi che usano risorse virtualizzate, che devono essere erogate , monitorate, secondo processi standard e consistenti Component Vendors/ Software Publishers Service Catalog, Component Library Cloud Administrator Publish & Update Components, Service Templates 4 4

5 Cloud Computing – A Business ValueCloud computing is a model for enabling cost effective business outcomes through the use of shared application and computing services. The value …. if possible …. is better economics in the execution of business processes.

6 What is different about cloud computing?Without cloud computing With cloud computing Virtualized resources Automated service management Standardized services Location independent Rapid scalability Self-service Software Hardware Storage Networking Software Hardware Storage Networking So what is really different about cloud computing? A tradition enterprise tends to pull together resources and deploy them in support of a business function workload on project at a time, or in silos. The resources are dedicated to the workload and are unable to support other workloads where they could be leveraged as added support. Cloud computing on the other hand leverages a pooled resources environment that uses virtualization in order for the physical assets to support multiple workloads. In order to drive efficiency of the delivery to enable the self-service, self-management of cloud computing requires standardization of the assets (hw, sw, delivery) as well as automation. This is what delivers a responsive end user experience. So from the end users point of view it is elastic in scalability, accessible from any device, anywhere, any time, and if charged pay only for what they use during the time they are using it. From a provider’s perspective its about an environment of highly virtualized resources that are location independent and have automated service management to handle provisioning, de-provisioning, change management, security and overall environment controls. Software Hardware Storage Networking Note: Elements of cloud computing taken from NIST, Gartner, Forrester and IDC cloud computing definitions 6

7 Differences: Cloud Computing & Traditional ITKey Issue: What are the trends impacting the future of Infrastructure and Operations? Differences: Cloud Computing & Traditional IT Traditional IT Cloud Computing Delivery Model Buy assets & build delivery architecture Buy external service Interface Model Internal network or intranet Via Internet using standard Internet Protocols (IP, HTTP, HTML, etc.) Business Model Pay for fixed assets and administrative overhead Pay directly based on usage or indirectly (e.g., subsidized by advertizing) Technology Model Single Tenant Scalable, Elastic, Dynamic, & Multi-tenant 7

8 Benefits of Cloud ComputingCapability From To Server / Storage Utilization 10-20% Self service None Test Provisioning Weeks Change Management Months Release Management Metering/Billing Fixed cost model Standardization Complex Payback period for new services Years Cloud accelerates business value across a wide variety of domains. 70-90% Unlimited Minutes Days/Hours Granular Self-Service Months Cost Flexibility STANDARDIZATION VIRTUALIZATION AUTOMATION Legacy environments Cloud enabled enterprise

9 Delivering the IBM Cloud platform through a spectrum of delivery modelsPrivate Public IT capabilities are provided “as a service,” over an intranet, within the enterprise and behind the firewall IT activities / functions are provided “as a service,” over the Internet Enterprise Users Enterprise data center Enterprise data center Enterprise A B A B Managed private cloud Private cloud Hosted private cloud Shared cloud services Public cloud services Interoperability and portability are key… When it comes to delivering a cloud deployment there is a spectrum of deployment options available for you to choose from. The most common and written about is the public cloud option like Amazon Elastic Compute Cloud (EC2), or Google Apps. These cloud deployments allow any user with a credit card to gain access to the resources. To a private cloud deployment where all the resources are owned, managed and controlled by the enterprise. To gradations in between from third party managed, to third party hosted, to a very common emerging model called “shared cloud services” or “member cloud services.” Here you must be a member to access the services, and they can be made available to you typically in a shared resources option or a dedicated resources option, depending on your needs and configurations. It is this last model where IBM has offerings call IBM Smart Business Services on the IBM Cloud. Finally you can merge the options between public and private and create what has been coined a “hybrid cloud”. When it comes to deciding which cloud delivery option you want to choose it needs to tailored to the business, the time and money requirements, and the availability of the resources. There is a spectrum of delivery options, and there is no single right way. Private Implemented on client premises Client runs/ manages Managed private cloud Third-party operated Enterprise owned Mission critical Packaged applications High compliancy Hosted private cloud Internal network Third-party owned and operated Standardization Centralization Security Internal network Mix of shared and dedicated resources Shared Cloud Services Shared facility and staff Virtual private network (VPN) access Subscription or membership based Shared resources Public Cloud Elastic scaling Pay as you go Public Internet A Hybrid cloud solution is some mix of private and public integrated with your traditional IT to deliver the cloud solution to the end user and can involve any of the public to private options. Internal and external service delivery methods are integrated Hybrid 9

10 Adoption patterns are emerging for successfully beginning and progressing cloud initiatives.IaaS: Cut IT expense and complexity through a cloud enabled data center PaaS: Accelerate time to market with cloud platform services SaaS: Gain immediate access with business solutions on cloud Innovate business models by becoming a cloud service provider Main Point: As cloud computing becomes pervasive, clear and well-defined approaches that consistently deliver tangible results are emerging. These patterns of adoption meet the most pressing priorities of organizations today and can be grouped into the following four categories: Cut IT expense and complexity through data center optimization: addresses immediate needs for cutting IT expense and complexity while improving efficiency of service delivery. Typically these projects include significant elements of consolidation, virtualization, standardization and automation. Accelerate time to market by rapidly building, deploying, and managing new services - solve the need for accelerating time to market for new services and increasing profitability and competitive advantage. Typically these projects are characterized by standardized and automated provisioning of topologies for pre-defined workloads. Gain immediate access to enterprise-class software as a service is about gaining immediate access to enterprise class solutions while minimizing risk and capital expense. Some services include collaboration, business process management, analytics, application management, , integration, order-to-cash, B2B, dev/test, service desk, and marketing. Innovate business models by becoming a cloud service provider is for organizations that want to capitalize on new business models and revenue sources by offering cloud-based services to others. Examples range from core cloud service delivery to industry-specific integrated service management with storage, networking and security.

11 Four major types of Cloud Computing services are emergingIBM Examples LotusLive Virtual Cloud Storage Public Desktop Computing On Demand Test Security Svcs Rational AppScan MBPS Offerings IBM BPM Blue Works Employee Benefits Mgmt. Procurement Industry-specific Processes Business Travel Business Process-as-a-Service (BPaaS) Collaboration CRM/ERP/HR Financials Industry Applications Software-as-a-Service (SaaS) Middleware Web 2.0 Application Runtime Java Runtime Database Development Tooling Platform-as-a-Service (PaaS) Servers Networking Data Center Fabric Storage Shared virtualized, dynamic provisioning Infrastructure-as-a-Service (IaaS)

12 IBM delivers prescriptive, repeatable cloud solutions for our clients’ most pressing priorities.Cloud Enabled Data Center Cloud Platform Services Business Solutions on Cloud Cloud Service Provider Integrated service management, automation, provisioning, and self service Pre-built, pre-integrated IT infrastructures tuned to application-specific needs Software-as-a-Service delivering IT and process orchestration within and across organizations Advanced, reliable, highly secure and scalable platform for creating, managing, and monetizing cloud services Main Point: To meet these common patterns of cloud adoption needs, IBM delivers prescriptive, repeatable cloud solutions based on our thousands of customer engagements in all aspects of cloud. IBM offers: Integrated service management, automation, provisioning, and self service Integrated stack of middleware optimized for automated deployment and management of heterogenous workloads that dynamically adjusts Advanced, reliable, highly secure and scalable platform for creating, managing, and monetizing cloud services Capabilities provided to consumers for using a provider’s applications running on a cloud infrastructure

13 Cloud Service Consumer Cloud Service Provider Cloud Service DeveloperCloud Computing Reference Architecture Cloud Service Consumer Cloud Service Provider Cloud Service Developer User Interface API Software-as-a-Service e.g. Lotus Live Cloud Services … Service User Platform as-as-Service e.g. Desktop Cloud Managed Environment Infrastructure-as-a-Service e.g. Compute Cloud Virtualized Infrastructure – Server, Storage, Network Common Cloud Platform Service Delivery Portal API BSS Business Support Services Offering Mgmt Customer Mgmt Pricing / Rating Service Development Portal Consumer Business Manager Developer Order Mgmt Entitlements Subscriber Mgmt Service Provider Portal Accounting & Billing Invoicing Peering & Settlement Contract Mgmt SLA Reporting Service Offering Catalog Consumer Administrator Metering Reporting & Analytics OSS Operational Support Services Management Environment Operational Console Service Delivery Catalog Service Request Mgmt Service Def. & Developm.. Tools Service Automation Mgmt Service Definitions Partner Clouds Provisioning Configuration Mgmt Image Lifecycle Mgmt Why IBM (competitive kill points) No Competitor offers a comprehensive reference architecture VMware and BMC have limited BSS capabilities and no cloud services HP cloud offers poor “service” delivery capabilities and supports very limited user roles IBM has developed a common cloud platform, integrating all key elements of Service Management Leverages the same platform for private clouds as in our public cloud Monitoring & Event Mgmt Incident, Problem & Change Mgmt Service Level Mgmt Continuity Mgmt, Backup / Restore Asset Mgmt Capacity, Perform. Mgmt Virtualization Mgmt Customer In-house IT Image Creation Tools Service Business Manager Service Operations Manager Security & Resiliency 13 13 13

14 Cloud-Enabled Data Center ModelDev & Test Zone QA Zone Production Zone Application Lifecycle Management Development Tool Integration Multi-tier infrastructure Multi-tier infrastructure Web / App / Database Service Request & Operations Self-service UI Administrators Virtual Servers, Storage, Network Cloud Administration Service Management Service Automation Provisioning Monitoring Usage & Accounting BSS OSS

15 Building a cloud foundationOptimize Cloud Ready Automate and Manage App OS Image Image Library Consolidate and Virtualize App OS Image Integrated virtualization management with IT service delivery processes Elastic scaling Pay for use Self-service provisioning Simplified deployment with virtual appliances Automated provisioning / de-provisioning Pool standardized virtualized building blocks Capture and catalog virtual images used in the data center Management of the virtualized environment Virtualization must become strategic across all platforms – servers and storage Monitor the virtualized environment Discovery, dependency and change tracking Key points: There is a stepwise approach You can start with a private cloud IBM provides the tools and services to help you at every stage Speaker Notes In most data centers today there is a plethora of systems with varying degrees of standardization and best practices. In order to simplify the management and create a repeatable, predictable infrastructure, you need to create standard building blocks. The Rolling Thunder offering will guide you through the process to ensure success. IBM will be providing ready-made ensembles, but you can also start this process by applying best practice patterns to the systems that you already have. These patterns define the best practice virtualization configurations depending on the systems and the way you want to use them. The next step is to capture and catalog the images (operating systems, middleware, and software) used in the datacenter and standardize on those building blocks as well thru virtual appliance definition. This will result in simplified deployments and image management. The third step involves pooling your standardized virtual configurations into ensembles where you can manage many systems as if they were one. This logically flows into workload management according to the service level agreements defined by the data center. Service Management offerings, such as Tivoli Service Automation Management (TSAM) will help you define and manage those services in tight integration with Systems Director and Ensembles. STANDARDIZATION LIFE CYCLE MANAGEMENT 15

16 Functions of Cloud Computing1. Infrastructure as a service (IaaS) and platform as a service (PaaS) When it comes to IaaS, using an existing infrastructure on a pay-per-use scheme seems to be an obvious choice for companies saving on the cost of investing to acquire, manage and maintain an IT infrastructure. There are also instances where organizations turn to PaaS for the same reasons while also seeking to increase the speed of development on a ready-to-use platform to deploy applications. 2. Private cloud and hybrid cloud Among the many incentives for using cloud, there are two situations where organizations are looking into ways to assess some of the applications they intend to deploy into their environment through the use of a cloud (specifically a public cloud). While in the case of test and development it may be limited in time, adopting a hybrid cloud approach allows for testing application workloads, therefore providing the comfort of an environment without the initial investment that might have been rendered useless should the workload testing fail.

17 3. File storage Cloud can offer you the possibility of storing your files and accessing, storing and retrieving them from any web-enabled interface. The web services interfaces are usually simple. At any time and place you have high availability, speed, scalability and security for your environment. In this scenario, organizations are only paying for the amount of storage they are actually consuming, and do so without the worries of overseeing the daily maintenance of the storage infrastructure. There is also the possibility to store the data either on or off premises depending on the regulatory compliance requirements. Data is stored in virtualized pools of storage hosted by a third party based on the customer specification requirements. 4. Disaster recovery This is yet another benefit derived from using cloud based on the cost effectiveness of a disaster recovery (DR) solution that provides for a faster recovery from a mesh of different physical locations at a much lower cost that the traditional DR site with fixed assets, rigid procedures and a much higher cost.

18 5. Big data analytics One of the aspects offered by leveraging cloud computing is the ability to tap into vast quantities of both structured and unstructured data to harness the benefit of extracting business value. Retailers and suppliers are now extracting information derived from consumers’ buying patterns to target their advertising and marketing campaigns to a particular segment of the population. Social networking platforms are now providing the basis for analytics on behavioral patterns that organizations are using to derive meaningful information. 6. Backup This way of ensuring a backup is performed is not immune to problems such as running out of backup media , and there is also time to load the backup devices for a restore operation, which takes time and is prone to malfunctions and human errors.

19  7. Test and development Probably the best scenario for the use of a cloud is a test and development environment. This entails securing a budget, setting up your environment through physical assets, significant manpower and time. Then comes the installation and configuration of your platform. All this can often extend the time it takes for a project to be completed and stretch your milestones.

20 Advantages of Cloud Computing1. Flexibility Cloud-based services are ideal for businesses with growing or fluctuating bandwidth demands. If your needs increase it’s easy to scale up your cloud capacity, drawing on the service’s remote servers. Likewise, if you need to scale down again, the flexibility is baked into the service. This level of agility can give businesses using cloud computing a real advantage over competitors – it’s not surprising that CIOs and IT Directors rank ‘operational agility’ as a top driver for cloud adoption. 2. Disaster recovery Businesses of all sizes should be investing in robust disaster recovery, but for smaller businesses that lack the required cash and expertise, this is often more an ideal than the reality. Cloud is now helping more organisations buck that trend. According to Aberdeen Group, small businesses are twice as likely as larger companies to have implemented cloud-based backup and recovery solutions that save time, avoid large up-front investment and roll up third-party expertise as part of the deal.

21 3. Automatic software updatesThe beauty of cloud computing is that the servers are off-premise, out of sight and out of your hair. Suppliers take care of them for you and roll out regular software updates – including security updates – so you don’t have to worry about wasting time maintaining the system yourself. Leaving you free to focus on the things that matter, like growing your business. 4. Capital-expenditure Free Cloud computing cuts out the high cost of hardware. You simply pay as you go and enjoy a subscription-based model that’s kind to your cash flow. Add to that the ease of setup and management and suddenly your scary, hairy IT project looks at lot friendlier. It’s never been easier to take the first step to cloud adoption. 5. Increased collaboration When your teams can access, edit and share documents anytime, from anywhere, they’re able to do more together, and do it better. Cloud-based workflow and file sharing apps help them make updates in real time and gives them full visibility of their collaborations. 6. Work from anywhere With cloud computing, if you’ve got an internet connection you can be at work. And with most serious cloud services offering mobile apps, you’re not restricted by which device you’ve got to hand.

22 7. Document control The more employees and partners collaborate on documents, the greater the need for watertight document control. Before the cloud, workers had to send files back and forth as attachments to be worked on by one user at a time. Sooner or later – usually sooner – you end up with a mess of conflicting file content, formats and titles. 8. Security Lost laptops are a billion dollar business problem. And potentially greater than the loss of an expensive piece of kit is the loss of the sensitive data inside it. Cloud computing gives you greater security when this happens. Because your data is stored in the cloud, you can access it no matter what happens to your machine. And you can even remotely wipe data from lost laptops so it doesn’t get into the wrong hands. 9. Competitiveness Wish there was a simple step you could take to become more competitive? Moving to the cloud gives access to enterprise-class technology, for everyone. It also allows smaller businesses to act faster than big, established competitors.

23 10. Environmentally friendlyWhile the above points spell out the benefits of cloud computing for your business, moving to the cloud isn’t an entirely selfish act. The environment gets a little love too. When your cloud needs fluctuate, your server capacity scales up and down to fit.

24 Issues surrounding the cloud computing technology1. Security & Privacy Security is a great concern for CIOs when moving their data to the cloud. Although security in the cloud is generally reliable and proficient, CIOs need to know that the cloud provider they chose to work with has a fully secure cloud environment. CIOs are becoming more reluctant to hand over important data to a third party provider. With the growth in data breaches and the potential financial penalties and loss of reputation for companies who fall victim, moving your private data to an external provider is more daunting than ever. 2. Service Quality Service quality is often one of the most significant factors that businesses cite as a reason for not moving their business applications to the cloud. Often businesses feel as though the SLAs provided by the cloud providers today are not adequate to assure the requirements for running a production application on the cloud, especially those related to availability, performance and scalability.

25 3. Downtime & AccessibilityService quality doesn’t have to be compromised when your data is in the cloud. Accessing your data when you need it is a basic requirement from many organisations. The challenge with the cloud is that the data is accessed via an internet connection rather than a local connection. So when the network or internet connection is down, it also means that cloud services are also down; thus data cannot be accessed. 4. Access to data Cloud-based servers do not always have the most effective or appropriate customer service support systems. CIOs often express their concerns around data ownership and losing control of their data when moving to the cloud, but this shouldn’t be an issue. Selecting where and how your data is stored is an important element within the decision making process. Integration is a problem for many organisations. Ensuring that all of the applications are able to seamlessly integrate with one another is also a common challenge.

26 5. Transition to the cloudMany cloud adoption challenges are unknown due to the fact that cloud technology is still in its relative infancy. CIOs are challenged deciding on the best way to transition to the cloud and finding a cloud solution that meets the aims of the businesses, whilst improving efficiencies.

27 THE END