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

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2010 IBM Corporation

Cloud Computing Widespread Awareness

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Source: Bringing Cloud Into the Enterpriseand the Enterprise Into the Cloud IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

2010 IBM Corporation

What is Cloud computing?

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

It also depends on who you ask

User 3
What is the cloud?

Applications & platform

Current pain points

CxO / LoB

A new way of using resources that reduces the number of systems in my portfolio and virtualizes my infrastructure

Need to drive business results and transformation in a rapidly changing environment.

CIO / IT Manager

Cloud computing helps me reduce my capital costs by not having to buy and maintain complex systems inhouse.

Need to reduce costs and improve service delivery

Developers

A way to quickly get the systems and configuration I want to test and build my applications

Limited funds and tough to get spending approval on development tools

End-User

Use what I need without having to deal with IT department

Need to achieving work objectives with limited resources due to cost-cutting

Cloud Services Provider/ISV

Changes my revenue model and helps me get new business

Difficult to make my customers switch from existing tools due to high transition costs

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2010 IBM Corporation

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
Server/Storage Utilization

From
10-20%

To
Cloud is a synergistic fusion which accelerates business value across a wide variety of domains.
70-90%

Self service

None

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 4 IM AR

Cloud enabled enterprise 2010 IBM Corporation

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

Servers

Networking

Data Center Fabric

Storage

Shared virtualized, dynamic provisioning

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

Middleware

High Volume Transactions

Database

Web 2.0 Application Runtime Development Tooling

Java Runtime

Platform as a Service

Servers

Networking

Data Center Fabric

Storage

Shared virtualized, dynamic provisioning

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

Collaboration Business Processes Industry Applications CRM/ERP/HR

Software as a Service

Middleware

High Volume Transactions

Database

Web 2.0 Application Runtime Development Tooling

Java Runtime

Platform as a Service

Servers

Networking

Data Center Fabric

Storage

Shared virtualized, dynamic provisioning

Infrastructure as a Service
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Cloud Deployment Models

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2010 IBM Corporation

A cloud computing primer your 60 second guide

A new model of IT delivery and Start consumption Key ingredients: elasticity PAYG on-demand self-service

inspired by internet services in the consumer space

Analogies - electricity generation and The Model-T Ford

Evolutionary, not revolutionary time sharing, hosting, ASP

A confluence of technologies virtualization, SOA, multi-tennancy

Variants public, private, hybrid, community, G-cloud add to confusion

Source: Market Insights 9 IM AR

Get to know the Cloud stack

Near-term adoption overstated, long-term impact underestimated Finish all bets are off !

2010 IBM Corporation

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 Top reasons for moving to a private cloud 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 Experience managing large outsourcing engagements gives IBM the tools to manage customers top cloud concerns Three distinctive end-user cloud buying patterns are emerging: exploratory, solutionfocused and transformational There are reports that public clouds are being adopted faster than originally forecast In terms of market opportunity, Financial Services, Manufacturing, High Tech, Government and Retail are the top five industries for cloud
2010 IBM Corporation

Cost Take-out is Key Driver

Security is Top Concern

Adoption Patterns are Emerging

Industries under the Greatest Pressure Lead Interest in Cloud

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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?

Reduce costs

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

77% 72%

Faster time to value

Take advantage of latest functionality Simplify updating/upgrading Speed deployment Scale IT resources to meet needs

Improve reliability

Improve system reliability Improve system availability

50%

Respondents could rate multiple drivers items

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

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

2010 IBM Corporation

Drivers vs. Barriers

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Source: Bringing Cloud Into the Enterpriseand the Enterprise Into the Cloud IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

2010 IBM Corporation

Cloud Adoption and Budgeting

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Source: Bringing Cloud Into the Enterpriseand the Enterprise Into the Cloud IDC Presentation, Cloud Leadership Forum, June 13-15, 2010

2010 IBM Corporation

We have identified the workloads that offer the most favorable entry points for each of the cloud delivery models
Top public workloads
Audio/video/Web conferencing Service help desk Infrastructure for training and demonstration WAN capacity VoIP infrastructure Desktop Test environment infrastructure Storage Data center network capacity Server

Top private workloads

Data mining, text mining, or other analytics Security Data warehouses or data marts Business continuity and disaster recovery Test environment infrastructure Long-term data archiving/preservation Transactional databases Industry-specific applications ERP applications

Infrastructure workloads emerge as most appropriate

Database- and application-oriented workloads emerge as most appropriate

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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

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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

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2010 IBM Corporation

IBMs Offering Approach

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2010 IBM Corporation

IBM Cloud Offerings

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The IBM Cloud Delivery Models

IBM Smart Business Services Private Cloud Services, behind your firewall
Delivery Model 1 Delivery Model 1
Enterprise Data Center

IBM Smart Business Services - Standardized Services on the IBM Cloud

Delivery Model 4 Delivery Model 4
Enterprise A Enterprise B Enterprise C

Delivery Model 2 Delivery Model 2

Enterprise Data Center
Managed Private Cloud

Delivery Model 3 Delivery Model 3

Enterprise

Delivery Model 5 Delivery Model 5

User User User A B C User User D E

Cloud scope

Private Cloud

Hosted Private Cloud IBM owned and IBM owned and operated operated

IBM operated

Shared Cloud Services

Public Cloud Services

Operator Ownership / Location Revenue model Access

Enterprise Enterprise Time & materials, fixed price, etc. Internal enterprise network Single enterprise Dedicated (single tenant)

IBM IBM

Time & materials, fixed price, pay-as-you-go

Pay-as-you-go Access through VPN, public internet Multiple enterprises Mixed1

Public internet Any enterprise/ user Multi-tenant2

Consumer

Asset use

(There are a set of assets that could be flexibly allocated on a dedicated basis to an multiple enterprise depending on demand)

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LotusLive um portfolio de servios

Web conferencing
IBM LotusLive Meetings
Integrao de Web, audio e video conferncia

Colaborao
IBM LotusLive Engage
prov servios de compartilhamento de arquivos, mensagens instantneas, redes sociais e gesto de atividades

E-Mail
IBM LotusLive Notes
prov servios de hospedagem de Notes e Domino

IBM LotusLive Events

Auxilia a criao, hospedagem e gerenciamento de reunies via OnLine

IBM LotusLive Connections

prov servios que permitem a integrao de suas redes de negocios com compartilhamento de arquivos, mensagens instantneas e redes sociais

IBM LotusLive iNotes

prov servios de E-Mail com segurana, funcionalidades e flexibilidade de acesso

www.LotusLive.com
2010 IBM Corporation

Process IBM CloudBurst delivers Features

Self-service Portal Service Catalog Automation Software Pre-packed Automation Templates Built-in Virtualization Single Delivery, Installation & Price Implementation Services Single Support

Benefits

Improve service

Reduce cost

Easy

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

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Why Private Test Cloud ?

Test Environments

Key Features
Strategy, planning, design, build and implementation of the solution Create self-service portal with catalog of services, calendaring, education and optional chargeback Integrated platform combining service request management, provisioning / deprovisioning and change and configuration management
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Benefits
Reduce IT labor cost by 50% + reduce labor for configuration, operations, management and monitoring of the test environment 75% + Capital utilization improvement; Significant license cost reduction Reduce Test Provisioning cycle times from weeks to minutes Improve Quality- eliminate 30% + of all defects that come from faulty configurations.
2010 IBM Corporation

Cloud computing is changing the application development landscape by giving the developers instant access to computing resources (hardware & software)
Existing Application Development
Budget approval Due to high set-up and infrastructure costs, approval from management is required in most cases

Future of Application Development

Since there are no capital expense, developers may not need approval from higher levels

Development team

CIO Capital investment to buy hardware and software

Development team Rent resources you will need from cloud

The development team will assess in-house resources to determine additional hardware and/or software to be purchased. Computing resources Development team uses resources to build application. These resources sit idle when not in use Develop application

The development team can provision computing resources from the cloud and change that as needed Provision instances required Development team only pays for the resources that is actually uses

Develop application Once application is developed, the computing resources are released and application is hosted on the cloud. Customer only pays for what they use

Support infrastructure and pay for maintenances and license

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Customer pays fixed amount

Application is hosted in house and development and maintenance, upgrades, and license costs are passed on customer regardless of usage

Host application on cloud or on premise

Customer pays for what they use

2010 IBM Corporation

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

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2010 IBM Corporation

We believe there are 6 key steps to a Cloud strategy

Create IT Roadmap
Standard

Assess Workload

Determine the Cloud Delivery Model

Enterprise

Workload

E-Mail, Collaboration

Software Development Data Intensive Processing

Hybrid Cloud Private Cloud

m e

Test and PreProduction

Ti

Trad IT Private Public

Custom

Trad IT
Capital

Database

ERP

Hybrid

Financial

Rent

Define Business Value

Establish Architecture
End Users, Operators
Role Based Access

Implement Cloud
Platform & Applications
Email Bus Apps Sys Mgmt Web Svr

Cloud Services Software Platform Infrastructure

Service Planning

Computing Infrastructure

Service Definition Tools Service Publishing Tools

Service Catalog

Cloud Platform BSS

Service Fulfillment & Config Tools Service Reporting & Analytics

BPM

Systems Storage

Operational Console

OSS

Info Mgmt

Network

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2010 IBM Corporation

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), appspecific benefits of migration, and the ease and cost of migration.

Low Cloud affinity

High Cloud affinity

Analysis of IBM Americas internal applications*

28 IM AR 2010 IBM Corporation

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

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2010 IBM Corporation

Business Case Results: IBM Technology Adopters Portal (IBM TAP)

Without Cloud
100%

With Cloud
Liberated funding for new development, trans-formation investment or direct saving

New Development Software Costs

IBM TAP is an ideal environment for private cloud implementation

Strategic Change Capacity

Power Costs
Current IT Spend

By implementing virtualization and automated provisioning, TAP was able to:

Reduce from 488 servers to 55 Reduce from 15 admins to 2 Reduce hardware, power, and labor costs 83.8%

Labor Costs (Operations and Maintenance)

Deployment (1x) Software Costs

Hardware Costs (annualized)

Power Costs ( - 88.8%) Labor Costs ( - 80.7%) Hardware Costs ( - 88.7%)

Hardware, labor & power savings reduced annual cost of operation by 83.8%

Clients who have already adopted virtualization and automated provisioning will see different results
2010 IBM Corporation

Note: 3-Year Depreciation Period with 10% Discount Rate

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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
Application Lifecycle Management Rational Jazz Eclipse Open Source

QA Zone
Multi-tier infrastructure

Production Zone
Multi-tier infrastructure Virtual Web / App / Database

Service Request & Operations Administrators Self-service UI

Networks

Virtual Servers, Storage, Network Security

Cloud Administration Service Management
Tivoli Service Automation Mgr Tivoli Monitoring: Netcool BSS Tivoli Provisioning Manager Tivoli Usage & Accounting Mgr OSS

WAN

Data Center #1
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Virtual Machine Migration

Data Center #2
2010 IBM Corporation

Concluindo

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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
Build and manage most IT in-house

Challenge to internal IT
The rise in outsourcing

Cloud Hype
Elements of alternative delivery (eg SaaS) in early phase

2012 + ?
IT asset lighter enterprise increasingly mainstream

Pre-mid 80s

Mid-90s Dot Com Boom

Application Service Provider (ASP) model illfated forerunner to cloud

2000 On Demand 1.0

e-business as a viable model

2010 Economic Pressures

A confluence of technologies (virtualization, multi-tenancy, etc.), together with the economic downturn stimulates even more interest in cloud computing

2015

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2010 IBM Corporation

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 Brought about by a confluence of technologies Plus, radically changing buying decisions borne out of economic necessity even more for even less consumerization of IT
Global Spend on IT Products & Services

Cloud computing will create massive disruptions and substitutions to the traditional IT paradigm The way hardware and software markets work today (the way they are bought, sold, packaged, marketed and the ecosystem that supports them), will all look very different a decade from today
Source: IBM Market Insights

But, critically, net spending will be materially lower than in the current IT paradigm Caused by a bundling and shared use of previously user owned / managed IT We are calling this the decomposition of previous IT value elements

Global IT spend peaked sometime between 2005 and 2008. IT spend will be on a downward trajectory over the next decade Network Era
ITs New Norm 2010 + PC / ClientServer Era Mainframe Era

1960s

1980s

2000s

2020

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2010 IBM Corporation

The realities of cloud versus hype

Reality Today Cloud Hype Future Reality So, no BIG BANG !

Trad. SO

Trad. SO

Internal IT plus 3rd party for some things

Source: Market Insights and Gartner

Everything in the cloud and all at once

Sourcing mixture retain legacy, plus private/hybrid, public

Which is why we dont see too many cracksyet

Nevertheless, the evolutionary process to cloud is beginning to reach a critical phase

2008 What is cloud? (education) 2009 How would our org benefit (pilots) 2010 Have budget 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 35 IM AR 2010 IBM Corporation

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 Hosted Infrastructure Via Private Networks Application as a service Compute as a service Storage as a service Desktop as a service Business process as a service Large scale, common, standard IT functions (e.g., email, storage)

Data Center Consolidation

IT resources consolidated into large data centers

Users build/configure their own applications, but rely on managed infrastructure service providers to deploy, run and maintain complex infrastructure

Traditional Data Center

Client/server on premise model

Timeline

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Cloud Enables Global Industry Transformations

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2010 IBM Corporation

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

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2010 IBM Corporation

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

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2010 IBM Corporation