1. technology and computing

IBM Canada – Cloud Managed Services
Cloud Computing:
How to best leverage for success in your Business
© 2013 IBM Corporation
IBM’s Point of View
on Cloud Managed Services
Tom Wefers
Cloud Managed Services Executive
IBM Canada
[email protected]
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Key Messages
Cloud is both an enabling and disruptive technology
One size or model does not fit all, workloads matter
IBM offers choice and flexibility
Proof points to help you get started
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Mobile, Social, Big Data & Analytics, and growth in Industry
applications are putting huge pressure on the Data Center &
I/T.
Mobile
916M Shipped in 2011
To Double by 2016
Social
Collaboration
4
Big Data &
Analytics
Enterprise
DC & I/T
2.7 ZB in 2012
50% growth from 2011
Industry
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
JESSICA BLANK
Title: Chief Marketing Officer
2017, the CMO will
“ By
spend more on IT than
the CIO.
”
“
Analyst Laura McLellan,
Gartner Feb. 2012
Most CMOs are still focusing on
the transaction, and less so on the
data required to build lasting
relationships with the customer.
CMOs are using data primarily to
segment and sell, not to generate
awareness and stimulate interest.
”
IBM Global CMO Study, 2011
By 2017, the CMO
will spend more on
IT than the CIO.
Jessica’s responsibilities include defining and delivering the marketing strategy, marketing and revenue objectives. Her role
encompasses multiple functional areas such as: sales management, product development, distribution channel management,
public relations, marketing communications, pricing, market research, and customer service. Her goals are profitability, brand
awareness, preference and demand more effectively than competitors in creating, delivering and communicating superior,
personalized customer value.
Jessica holds a Bachelor's degree in communications and a Masters degree in marketing.
What keeps Jessica up at night?
Questions that Jessica often asks herself: What exactly influences the consumers today with the digital revolution and the
explosion of social media that constantly influences their purchasing decision journey? How well informed really is her team’s
marketing judgment? The great confidence Jessica had on the spending and messaging of traditional advertising channels like
TV playbook can’t be applied to entirely new channels. Jessica hears that the answer to improving her judgment in this rapidly
changing environment is data. But she can’t rely on analytics that measure the impact of marketing spending ,since it’s difficult
to integrate all of the information in a way that not only provides answers that she can trust, but also informs smart marketing
changes. She also struggles with managing financial risk in marketing plans. Successful communication requires hitting the
right audience with the right message at the right time: a small, moving target. There is little accumulated experience about
today’s new media about which messages work. The degree of ROI risk has increased. In addition to all this, Jessica deals
with the age-old question: what metrics should she track given her options? The absence of a single way of measuring ROI for
different channels exacerbates all of Jessica’s concerns.
SOURCE: Gartner 2011
Top LinkedIn Groups
Pain Points
Sales/ Marketing Executives 80k members, Private
What exactly influences our consumers
today?
Chief Marketing Officer (CMO) Network 33k members,
Public
Jessica understands the growing importance of
developing a one-to-one relationship with her
customers, she is aware that the current landscape of
tech has profoundly changed what influences
consumers in their buying cycle. How exactly are her
consumers influenced? Jessica knows she needs to
engage individual prospects earlier in the buying cycle
then nurture and progress, but doesn’t quite know
how.
One out of Five
SWG CMO Events 2012
Executives Acquiring
Cloud services will
do so without the
Most Recognized
Software Brands
knowledge
of I/T.
Chief Marketing Officer’s Exclusive; 1k members,
Public
Online Handel 2012 (Germany, January)
DMA 2012 (North America, October)
3rd party Fidelization seminar IPMark (Spain, June)
Twitter 2012
How well informed is our marketing
judgment?
Jessica is excited by the possibilities that big data and
advanced analytics create, but does not have the
expertise and thus judgment to determine how useful
they are to her.
Adobe, Microsoft, Oracle
IDC
Competitors Who Target This Role
Adobe, Oracle , Google, EMC, Microsoft
IBM Marketing Exec Buyer Behavior
IT Spend is shifting
outside of IT
department
Jessica is a Chief Marketing Officer where she is primarily responsible for various marketing in her organization. She facilitates
company communications internally and externally.
How are we managing financial risk in our
marketing plans?
Through years of trial and error, marketing mitigated
the risk of failure in traditional media. With today’s new
media, successful communication requires hitting the
right audience at the right time with the right message:
Jessica wonders how much risk is too much, or too
little-- when spending on new media channels.
What metrics should we track given our
options?
Nothing approaches a definitive metric for social
media and other communication channels, yet Jessica
must have a way to track progress and hold marketers
accountable.
McKinsey Quarterly, May 2012
Buying Behavior
•
The technology Jessica consumes is frequently
through tactical SAAS offerings that she pays for
herself (without involvement from the IT
department) to solve specific, narrow needs.
•
She is not particularly technologically sophisticated,
views tech with skepticism and resistance. She is a
part of the brand selection process, but Marketing
executives below her are more involved than she is
in selecting brands for Marketing-specific IT
investments.
IBM 2011 Marketing Exec Buyer Behavior
Interactions with Tech
•She has heard of advanced mobile capabilities and
big data in her industry, and would like to use them,
but do not know where to begin.
•She knows what Cloud technologies are but has
never connected them with addressing her business
needs.
•With the growing volume, velocity and variety of
data available, she hasn’t thought about managing
or using the data– she wouldn’t know where to
begin.
•She has invested in Social Media in past 12 months
and will continue to be one of the top initiatives going
forward.
•Like many CMOs, Jessica feels underprepared to
deal with the growth of device channels, and the
changing demographics that include new global
markets and the influx of younger generations.
Jessica finds comfort in that everyone is on the same
boat.
IBM Executive Marketing Report 2011
High
Medium
Low
Priority IBM Programs
Business Analytics, Information
Integration and Governance, BAO
Cross Program, Business Process
Management, Smarter Commerce Buy,
Smarter Commerce Cross Program
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Leveraging the transformation power of cloud computing for
your business
Speed products and
services to market
Address data center
constraints
.
#1 “It lessens versus adds to
#2 “It’s fast”
internal DC constraints”
Reduce business
and IT costs:
Improve agility and
flexibility
#3 “It’s flexible “
#4 “It’s affordable “
On Demand, pay-per-use
#5
“It’s low financial risk”
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
What’s different about cloud?
Results from cloud computing engagements
Increasing
speed and
flexibility
Reducing costs
Standardization
Complex
Reuse/share
Change management
Months
Days/hours
Release management
Weeks
Minutes
Test provisioning
Weeks
Minutes
Service access
Administered
Self-service
Metering/billing
Fixed cost
Variable cost
10-20%
70-90%
Years
Months
Server/storage utilization
Payback period
SOURCE: Based on IBM and client experience
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Does using cloud always result in lower cost?
Reduced
cost
Cloud savings are a function of multiple factors:
– The value derived from the cloud
– What it takes to move a workload into the cloud
– Other services or products an organization will need to provide if they move into the cloud
– The cost for all of the above
With most private clouds, the enterprise takes on the provider role.
Like traditional hosting, the enterprise owns the risk to balance supply and demand, and the
associated costs.
“ … cloud computing does not always save money. In fact, it can drive
cost up if it is used simply to replace on-premises work with an exact
duplicate of that work in the cloud. Knowing when to redesign or when
to use cost savings as a justification for cloud computing is critical.“
-- “The (Not So) Future Web”, Gartner Inc.
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
The other benefit of cloud
Increased
flexibility
“…All the emphasis (with cloud) is on cheaper and
efficient ways to deliver IT. In reality it’s also a way
of delivering new industrial value – that’s the more
exciting thing”.
Erich Clementi, IBM’s Hidden Cloud
on Forbes.com
•Increased flexibility and new way of delivering IT
•Quicker time to value
•Industry analysts: Speed will be bigger than cost saving in driving adoption
•Cloud is a foundation in the “as a service” transformation of IT delivery
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Workloads Matter: Cloud adoption driven by workloads
Ready
for cloud…
New workloads
made possible by
cloud …
Collaborative Care
Medical Imaging
Analytics
Infrastructure Storage
Information
intensive
Sensitive
Data
Industry Applications
Isolated
workloads
Highly
customized
Energy Management
Collaboration
Mature
workloads
Workplace, Desktop &
Devices
Business Processes
Not yet virtualized
3rd party SW
May not yet be ready
for migration…
Financial Risk
Preproduction
systems
Disaster Recovery
Complex
processes &
Batch
transactions
processing
Regulation
sensitive
Development & Test
Infrastructure
Compute
© 2013 IBM Corporation
Workload
selection
IBM Canada – Cloud Managed Services
Two distinct patterns of cloud adoption have emerged
Cloud Native
• Elastic
• Multi-tenant
• Integrated Lifecycle
• Standardized Infrastructure
• Lowest pay-per-use cost
Cloud Enabled
• Scalable
• Virtualized
• Managed
• Automated Lifecycle
• Heterogeneous Infrastructure
• High resiliency and performance
Highly scalable born on the
web applications with built-in
resiliency
Traditional, production-grade
applications that rely on high
SLA infrastructure
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Cloud computing continuum
Private cloud
Managed
private cloud
Enterprise
data center
Enterprise
data center
Third-party
operated
SmartCloud
Enterprise+
SmartCloud
Enterprise
Shared
cloud services
Public
cloud services
Enterprise
Enterprises
Users
Third-party
hosted and
operated
Third-party
hosted and
operated
Multi-Tenant
Open registration
Credit card
No restrictions
Hosted
private cloud
Private
Public
Data resides outside client firewalls
Higher
Control, customization, and cost
Lower
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Newest Acquisition: SoftLayer at a glance
Organization
Founded in 2005, SoftLayer is one of the largest privately held
computing infrastructure providers with a diverse customer
portfolio from Web startups to global enterprises
Headquartered in Dallas, TX
Data centers and network points of presence in the United States,
Asia and Europe
Capabilities
SoftLayer unified platform gives clients cloud computing without
compromise (virtual/bare metal, public/private), deployed on
demand, billed hour-to-hour or month-to-month, with a single pane of
glass for systems management.
Technology
SoftLayer delivers its services through a tightly integrated model
leveraging its IMS software stack, global network infrastructure and
13 standardized data centers.
Customers
13
Approximately 21,000 customers worldwide
Strong Cloud Native and Enabled capabilities across ebusiness, SaaS, mobile, social media and entertainment
#ibmcloud
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
SoftLayer supports and extends IBM’s cloud strategy.
Workload optimized, deployment choices, integrated services management
Bare-Metal Servers, Virtualized Public Cloud Instances, Private Cloud Deployments
Provides the best fit optimized for a range of cloud workloads
Integrated Platform Across Multiple Architectures
Highly flexible with support for public, private and hybrid deployments
Common Management System with APIs
Customer control and increased visibility with a unified management system
Common User Interface and APIs
Bare Metal Servers
Public Cloud Instances
Private Clouds
Proprietary Infrastructure Management System facilitates automation & orchestration
Private network allows seamless communication across distributed environments
x86 Pod Infrastructure
x86 Pod Infrastructure
x86 Pod Infrastructure
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
IBM SmartCloud Services: Enterprise class Platform as a Service and
Infrastructure as a Service delivered from the Cloud
Speed
Platform as a Service
Skills/Flexibility
Application Services
Lifecycle
Resources
Environments
Management
Integration
Infrastructure as a Service
Enterprise+
Public Cloud, Managed by IBM
Low Risk
Cost Reduction
Enterprise
Public Cloud, On demand with IBM support
Infrastructure
Management
Performance
Security
Usage
Secure, Certified Datacenter
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Cloud in Action: Drivewyze
Eliminates costly IT infrastructure with an IBM SmartCloud solution. The fully
managed IBM SmartCloud Enterprise+ solution reduces administration and reins
in IT costs
The Solution:
The Need:
Drivewyze needed a cost-effective,
managed infrastructure that could
scale to meet a rapid increase in
customer demand.
Speed
Skills
The IBM® SmartCloud®
Enterprise+ solution provides a
flexible, fully managed
environment that reduces
administrative workload and
enables IT resources to focus on
core applications.
Cost Reduction
Benefits:
• Increases customer satisfaction
with near real-time scaling to
swiftly meet growth in market
demand
• Reins in IT costs with a fully
managed model that eliminates
the need to acquire up to six IT
resources for support
• Capitalizes on a security rich,
highly available IBM
architecture that establishes
credibility with risk-averse
customers
“Choosing to partner with IBM was a fairly easy decision and the advantages of
leveraging IBM resources to help manage our infrastructure was a big deciding
factor.”
—Brian Mofford, Vice President, Drivewyze
Link to Case Study
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Canadian Retailer Mark’s goes to market fast with a
scalable and agile dot.com retail channel leveraging
IBM integrated infrastructure solutions
The Need:
The Solution:
• Require a development & production
environments for new Websphere
platform
•Provided unified solution that was price
competitive with short turnaround cycle
•Need environment to be set up
quickly to get application up and
running
•Took 3 weeks from time of contracting to
running a virtual servers for development
and over next 3 months setting up of
production servers
Speed
Skills/Flexibility
Benefits:
• Single point of contact
to deliver a robust end
to end turn key solutions
• Infrastructure that
provided flexibility and
agility to scale up
Cost Reduction
“The IBM team has taken real ownership of the project with a
focus on delivering a complete and working set of integrated
infrastructure environments”.
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
IBM SmartCloud® for SAP Applications: Fully managed
PaaS
Shared
cloud
End user help desk
Client retained
SAP application
Middleware Layer
SAP certified staff and operations
SAP basis
Data Baseadministration
Database
Administration(DBA)
(DBA)
IBM SmartCloud for
SAP Applications
IBM owned and
operated
(multi-tenant)
Enterprise A
Enterprise B
Enterprise C
Operating system
ITIL compliant tools and processes
Access Services
Change
Mgmt.
Asset
management
Config management
Monitoring
Security patching
Provisioning
Infrastructure
SmartCloud
IBM provides and manages the core
infrastructure through the operating
system, with business-centric
SLAs.
Public cloud services
delivered securely to
enterprises through
physical and virtual
separation of tenants.
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Automated SAP application services:
Increase delivery quality and reduce provisioning times
Customer key-user
Service
portal
Service catalogue
Service request
management
Service automation
management
Service provisioning
Value delivered:
SAP PaaS capabilities
• Catalog of SAP base images
• Automated cloud SAP system provisioning
• Automated SAP refreshes
• Cloud-based SAP cloning
• Automated post-clone processing
Client value
• Reduce the cost of SAP environments
• Reduce the cost of SAP basis and DBA support
• Reduce the complexity and chaos created by the
proliferation of SAP development environments
• Reduce cost and lead time while improving the quality
of SAP production management and other common
tasks
• Access to ERP skills
From traditional
To cloud
New SAP system
1-2 weeks
~1 day**
SAP database refresh
2-3 days
~0.5 days**
SAP system clone
1-2 weeks
~1.5 days**
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Leveraging cloud to rapidly deploy complex
business critical solutions like SAP
Rethink IT
• Began with a private cloud platform based on consolidation,
virtualization and standardization technologies to create a dynamic
infrastructure.
• Move to SCE+ and SC4SAP to leverage cost efficiencies of
converged management and shared infrastructure resources
Reinvent business
Ineos USA LLC
increased
flexibility with
a multi-year
projected
savings of over
20%
• Increased market velocity for development and deployment of
new services for the business and in support of partner ecosystem.
• Cloud helps enable a new business culture of innovation and
growth.
20
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Ogilvy and Mather enhance client solutions and reduce costs
with SmartCloud for SAP services
The need:
• Speed up innovation and
shorten SAP refresh
provisioning cycles
SAP
• Reduce IT costs while
maintaining continuous
availability
The solution:
• Migrate Ogilvy from its current
dedicated environment to the
SmartCloud Enterprise+ for SAP
services.
•This early deployment on the
SC4SAP service included a prebuilt, pre-configured production
solution.
Benefits:
• Lower total cost of
ownership (TCO)
• Minimized the Ogilvy
resources required to
maintain the entire SAP
landscape
• Reliable and continuously
available production
service
Speed
Cost Reduction
Skills
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Canadian automotive parts supplier relies on speed and reliability
of for business growth
The need:
• Current legacy system is
limited and not supportive of
continuing US expansion
Benefits:
The solution:
IBM SmartCloud™ for SAP
Applications
Managed Resource with
no need for in-house
skills
• Resource and capacity
constraints
• Need new ERP platform with
external management and skill
capacity to assist with SAP
ECCS and Enterprise
Warehouse Management
EWM
NA scalability for growth
–- rolling out new
warehouses
Greater reliability
Speed
Skills
• No tolerance for current
outages with current provider
needed greater reliability
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Mail and collaboration workload is the largest targeted cloud workload
Cloud budgets allocated over the next 12 months
Business
Intelligence/Analytics
applications
2%
Application
development/testing/d
eployment platform
IT/Information Security
4%
3%
Highperformance/technical
computing
applications
1%
Server capacity on
demand
3%
Enterprise Resource
Management
applications
4%
Collaboration
applications
30%
Human Resources or
Human Capital
Management
applications
5%
IT Management
6%
Web applications/Web
serving
13%
Customer Relationship
Management
applications
12%
Storage capacity on
demand
9%
Personal productivity
applications
9%
N=70
Source: IDC Canada’s Business and IT Advisory Panel, 2012
23
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Hosted Mail and Collaboration - a cloud suitable workload
Public MS exchange
cloud
IBM MS exchange cloud
•
•
•
•
•
•
•
Canadian data residency
Enhanced SLAs and security
Application integration
Flexible licensing model
Portal / self-serve capabilities
ZB1
MDM / BES capability
Enterprise help desk capabilities
with high first contact resolution
• Service category flexibility,
ability to select different plans
• Dual site, high availability solution
• Solution ownership when adding
other components like archiving
SLAs
Secur
it
Integr
y
ation
Public cloud
Lower
24
Minimal
capabilities
In-house
IBM cloud
Control / Customization / Cost
Higher
*
© 2013 IBM Corporation
Slide 24
ZB1
What do these abbreviations stand for?
ZBRINK, 4/4/2013
IBM Canada – Cloud Managed Services
Cloud-based Hosted Exchange E-Mail Solution allows
Financial Services Provider to save money while maintaining
control
The solution:
The need:
• Consolidate multiple e-mail
platforms from years of acquisitions
• A common, company-wide
messaging and collaboration
platform with anytime, anywhere
access to e-mail, calendars and
contacts for their 5000 users
• As a financial institution, required
security and data residency
Speed
•Implemented Hosted Exchange
over a 6 month period
consolidating all users and moving to
Exchange 2007
•Custom retention and security
features, such as Encrypted
Mailbox Data, allowed them
to meet their stringent security
requirements
Costs Reduction
Benefits:
• Maintain in-house
control while benefiting
from cost and resource
savings from
outsourcing
35% savings over 3 years
• Quick migration over 6
months allowing them to
focus to other strategic
initiatives
Skills
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Clients are moving to cloud to drive innovation and improve the
economics of IT.
Reinvent Business
Rethink IT
• React with Agility
• Reinvent client relationships
• Provide new profit opportunity
• Speed innovation
• Improve economics
Transformation & Innovation
Lower Costs & Efficiency
• Improve operating dexterity
The Economics of Computing are Changing
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Reposition IT as a business asset
Forward-thinking leaders forge strategic partnerships
2/3
of CIOs
plan to…
Partner extensively
as a source of new
skills and expertise
Change the mix
of capabilities,
knowledge and assets
within the organization*
2011 IBM Global CIO Study
69%
69%
55%
55%
69% of
outperforming
CEOs are partnering
for innovation and
competitive
advantage
2012 IBM Global CEO Study
2012
2008
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
IBM global experience and investment in cloud computing
4,000+
Successful client cloud
transformations
Daily cloud
transactions
1M
$3B
Investment in in new
cloud acquisitions:
WebDialogs, ThinkDyamics,
Outblaze, Cast Iron Systems,
Unica, Sterling Commerce,
ISS, Aresenal, Diligent, and more
4.5 million
Transactions exchanged
through B2B cloud daily
1M+
200M+
Enterprise users working
on the IBM cloud
Managed virtual
machines
70+
SaaS offerings
B2B cloud services expanding
into
34 countries
1,000’s
Of IBM researchers are
working on breakthroughs in
cloud services and security
13 billion+
Security events managed daily for
over 4,000 clients
© 2013 IBM Corporation
IBM Canada – Cloud Managed Services
Cloud Workload Insights and Resources
Key Websites
IBM SmartCloud Canada Website
SoftLayer Updates
Webcasts
July 17 11am EST Addressing Data Centre Capacity with Cloud: What Workloads Make Sense: Tom Wefers, Global
Technology Services Business Unit Executive, Data Centre Services
To Register: https://engage.vevent.com/rt/ibm~canadawebcastseries
White Papers
•
Choice and Control
Frost and Sullivan: Tips For Choosing A Cloud Service Provider
Frost & Sullivan Taming the SAP Maintenance Burden
Videos
Cloud Infrastructure Strategy and Design demo and workload analysis tool
Social Media
@IBMCloud on Twitter
IBM Cloud Computing Group on LinkedIn
IBM Cloud Computing on Google+
IBM Cloud on Facebook
Thoughts on Cloud blog
Top 100 bloggers on Cloud Computing
© 2013 IBM Corporation