Reinvent e commerce with cloud

Editor's Notes

• #4: IBM provides the power of cloud to rethink IT and reinvent business so organizations can… Deliver IT without boundaries Enabling new IT and business processes that break down traditional silos, connect and empower people across the ecosystem, and simplify information access—to increase productivity and speed time to revenue and results Transform the economics of innovation Speed the delivery of new offerings and services by creating new models of self-service and deployment. Build enduring customer and citizen relationships Interacting with customers and citizens in valuable new ways, while ensuring security and privacy, to improve their experience and perception of the brand and build trust—driving loyalty that lasts.
• #5: Cloud is one of the delivery options that a CIO is faced with and ever so often the focus has been on optimisation of data centers. However the value of cloud goes beyond optimisation but can be seen as innovators as well as in its highest form a distruptor.
• #7: Based on our engagement with over 2000+ clients, we noticed that clients are adopting cloud based on one of the four patterns. (Speaker to explain each of the adoption patterns and the benefits to the client.) In fact in February and March 2012, IDC conducted its fourth annual Asia/Pacific excluding Japan (APeJ) Cloud Computing End-User Survey. This survey tracks the cloud adoption patterns of regional organizations as a way of analyzing the market for cloud services. From this survey, IDC made the following key observations: Cloud is now business as usual, and CIOs needs to start thinking about cloud if they have not already done so. It is essential for a CIO to know the best way and timing for cloud adoption. This knowledge can be learnt through first-hand experience, or by understanding proven cloud adoption patterns, and then matching those cloud services available in the cloud ecosystem to their business requirements. Understanding how to best use each cloud delivery model will be critical to the successful use of cloud services. CIOs must plan both tactically and strategically when implementing cloud, to satisfy IT infrastructure and business requirements. Any tactical decisions must be included within a longer term strategy for use of cloud services and technologies to ensure maximum benefits in the longer term. 2 #AP14978V ©2012 IDC CIOs must understand that a number of today’s cloud vendors will not survive the evolving market if they do not have a long-term, viable cloud strategy. So the choice of a strong IT vendor positioned within a comprehensive cloud ecosystem is key as cloud services are not being considered as a short-term, casual relationship, but as a marriage.
• #8: Overview: LEGO Company is one of the world’s leading manufacturers of play materials for children. With revenues of USD1.57 billion, the company employs an estimated 8,000 people around the world. Business need: Staying relevant in the retail toy market requires rapid development and deployment of new products and markets. To support this, LEGO needed a flexible IT infrastructure that could quickly scale. Solution: Working with IBM, LEGO has engaged in a phased, multi-year IT transformation that has used consolidation, virtualization and standardization technologies to create a dynamic infrastructure. Benefits: LEGO estimates business benefits worth USD150 million on technology investments of approximately USD45 million that have been made to simplify and streamline its applications and infrastructure. Solutions/Offerings Hardware: BladeCenter HS22, Power 570, Power Systems, Storage, Storage: DS4800, Storage: DS8700, Storage: Tape & Optical Storage Software: Tivoli Performance Analyzer, Tivoli Enterprise Console, Tivoli Netcool/OMNIbus, AIX, Tivoli Network Manager Entry Edition, PowerHA, System Storage SAN Volume Controller, Tivoli Netcool/Webtop, Tivoli Composite Application Manager for Applications, Tivoli Monitoring ----------------------------- Overview: Located in Jiangsu Province in south-eastern China, Wuxi is a major center for industry and commerce, ranked in the top fifteen cities in China. Among its other responsibilities, the municipal government must balance the need for economic development with the requirement to preserve its natural resources and safeguard the wellbeing of its population of more than four million people. Business need : Create flexible, shared computing resources for local government projects and for software development start-ups; provide complete virtual infrastructure precisely sized for each requirement; lower barriers to market entry for new companies by eliminating need to commit capital to in-house infrastructure. Solution: Worked with IBM to deploy the Wuxi Cloud Center, based on IBM Blue Cloud technology and featuring both x86 and IBM Power Architecture servers. The cloud hosts the full IBM Rational Suite of software development and testing tools, and will later provide other IBM software on a pay-as-you-use model. Benefits : Shared infrastructure enables high utilization of available resources, delivering excellent cost-efficiency; each company's virtual resources can be flexed up and down as required, and priced according to usage; cloud paradigm offers almost instant set-up and total flexibility, with zero requirement for customers to own or even understand the underlying infrastructure. Solutions/Offerings Hardware: BladeCenter HS22, Power Systems, Storage: DS3400, System x Software: Rational Suite, DB2 for AIX, WebSphere Application Server, Tivoli Provisioning Manager, Lotus Domino, IBM Systems Director Active Energy Manager --------------------------------------------- Overview: Founded in 2001, Quang Trung Software City (QTSC) is one of the key project in Ho Chi Minh City (HCMC) development plan. It has been growing quickly to become the biggest software park in Vietnam. QTSC has got a strong support link from both municipal and state government, and having benefit of many incentives to promote the IT industry from the government. Business Need: To be the largest software production center in Vietnam To be the reliable center for software human resource provision To create an ideal environment for development of software industry Action: Became a cloud service provider delivering: Physical Infrastructure Hosting (IaaS) Virtual Infrastructure Hosting Software Hosting (Email) Web Hosting (SaaS) Result: Consolidate all HCMC district/agency emails systems and websites from public ISP to QTSC Data Center Provide virtual infrastructure to districts/agencies (IaaS model) based on cloud computing approach Establishing Middleware standardization Solutions/Offerings Hardware: BladeCenter: BladeCenter H Chassis; BladeCenter HS22; BladeCenter running Linux - Red Hat; BladeCenter running VMware; BladeCenter running Windows System x: System x: System x3650 M2; System x: System x3850 M2; System x: System x running VMware; System x: System x running Windows; System x: System x running Linux; System x: System x running Linux - Red Hat Software: Linux: Linux - Red Hat Tivoli: Tivoli Monitoring for Applications; Tivoli Monitoring for Databases; Tivoli Monitoring for Network Performance; Tivoli Provisioning Manager for OS Deployment; Tivoli Monitoring; Tivoli on Linux Services: IBM Training: Training: Tivoli IBM Global Technology Services - Integrated Technology Services: GTS ITS IT Strategy & Design: Infra Strategy & Design Cloud; GTS ITS End User: Smart Business Desktop; GTS ITS Server: Server Optimization & Integration Services; GTS ITS Server: Server Product Services for Linux; GTS ITS Server: Server Product Services for Microsoft; GTS ITS Server: Server Product Services for System x; GTS Workplace Services; GTS Data Center Services --------------------------------------------- Overview: University of Pittsburg Medical Center (UPMC) is an integrated global health enterprise headquartered in Pittsburgh, PA, and one of the leading nonprofit healthcare systems in the United States. Business need : Sought to improve efficiency and reduce complexity of its IT infrastructure Enable continued investment in next generation clinical system Solution: IBM worked with the client to integrate their IT infrastructure by consolidating their workload across all the platforms (UNIX, x86 and mainframe). Integrating their IT infrastructure through virtualization of standard deployments of patient data from manual to electronic patient medical records Automating their IT infrastructure through tiered storage for optimal access and efficiency, centralized discovery with automated provisioning and event correlation to predict service problems Finally securing their IT infrastructure with enterprise data governance for delivery of trusted data and Enterprise security incident and event management. The Benefits: Consolidated IT infrastructure across 20 hospitals into a standardized & automated infrastructure, consistent across sites, which enables business agility Transformed IT for Improved economics by doubling their capacity whilst holding costs flat, thus eliminating the need for a new US$80m data center Implemented IT Architecture Board by reviewing new workload deployment requests Delivering Innovation by enabling investment in next generation clinical sustems. --------------------------------------------- Overview: ING is a global financial services company that was founded in Netherlands with headquarters in Amsterdam. ING offers clients banking, insurance and asset management services in over 50 countries to 85 million customers in Europe, North and Latin America, Asia and Australia. Business Needs: Under significant pressure to reduce their CAPEX and OPEX, ING had to reduce costs in order to remain competitive in the post credit crisis market. ING embarked upon a data center consolidation project merging 16 worldwide data centers into 2 local and highly efficient 'lights out' centers. Service automation and the creation of a cloud delivery platform was a significant part of ING's overall design and success Solution: Architectural principles (from customer project solution document) Reuse, before buy, before build: Out of the box IBM software will be used with as little adaptation to customer-specifics as necessary Only standard components will be used wherever possible Development, Test, Acceptance, Production environments will be required Setup new systems for the management and managed environment Did not try to make existing systems fit new environment where possible Integration with existing systems management tooling to be done where appropriate (did not blindly integrate with each and every system as this increases complexity dramatically) Drive project not only a pure technology deployment, but in close combination with understanding & restructuring customer’s delivery processes BPaaS: Self-Service Enablement SaaS: Lotus Live PaaS: Developer Cloud IaaS: Compute Cloud The Benefits: Faster time to value for infrastructure stack deployment from months/weeks to hours/minutes. Simplify the delivery of standard system stacks releasing core skills to work on harder problems. Visibility of system deployment status within overall process, identifying bottlenecks and driving process optimisation. Scheduled de-provisioning driving better utilization of assets & cost avoidance. Single management platform for multiple resource pools, fewer tools, fewer admins. Automated stack deployment driving fast deployment of standardized configurations. Self service consumption for standard configurations, delegating control / visibility to service consumers. Integrated reservation, automated scheduling, capacity management , and de-provisioning. End to end service management mixing manual and automated steps where necessary. High levels of automation , with extensibility to manage many devices at the compute, storage, network layers. Consistency in delivery of stacks driving economies of scale in configuration, support, security, auditing including compliance. Traceability on ownership, full audit trail of changes applied through management system. Usage and accounting to drive more effective use of resources, and change consumption behaviour. Open and extensible platform not locking ING into a single hypervisor, OS, software stack or vendor specific API. Integration with core ING systems for directory, change management, service management & systems management. Not rip and replace. --------------------------------------------- Overview: Based in Chicago, True Value Co. is one of the world’s largest retailer-owned hardware cooperatives, serving 54 countries with more than 5,000 stores and 12 regional distribution centers. The company sources merchandise from domestic and international suppliers. Logistically, True Value processes 64,000 domestic inbound loads and over 600 million pounds of freight annually. Internationally, True Value imports 3500 containers annually through 30 international ports and 10 domestic ports, using 5 ocean carriers. The company was founded in 1948 and employs more than 5,000 people. Business Needs: With the initiative to deliver the right product to the right place at the right time, True Value Co. needed electronic access to its critical data to make accurate, real-time decisions. Moving forward, True Value was looking for a solution that would provide a comprehensive real-time view of orders and shipments across its global supply chain network. Solution: To achieve its goals, True Value implemented IBM Sterling Supply Chain Visibility software, which improves the collection of order lifecycle information by tying data from internal procurement, warehouse and transportation systems together with external data from its freight forwarder, broker and carriers. The Sterling Supply Chain Visibility software acts the central repository of True Value, which provides a view of the entire order lifecycle. The software provides True Value with the ability to minimize supply chain delays through customized supply chain process models that track and alert on potential bottlenecks in its network. True Value has defined milestones, thresholds and alerts for three distinct process models, including Domestic Prepaid, Domestic Collect and International Direct. The solution enabled True Value to create milestones for each process model to monitor order and delivery progress. Alerts are then created based on the status of these milestones or shortages. The international process model tracks milestones based on ocean booking, sailing date, port arrival and customs clearance and more, all the way to the stocking of product in the distribution center. The domestic process models track milestones such as appointment made, cross docked, delivered, received and put away. The Benefits: By implementing IBM Sterling Supply Chain Visibility software, True Value gained visibility across its global trading partner networks, thereby minimizing supply chain exceptions and driving better decision-making. With the new solution, True Value significantly reduced lead time variability by alerting its procurement, transportation and warehouse personnel when predetermined lead times are in danger of, or have been missed. Now, procurement reduces its response time to late shipments. Transportation proactively manages delays and expedites deliveries. Warehouse operations prioritize receiving and restocking activities. True Value gained the ability to maintain extremely high order fill rate standard. The solution enabled the client to effectively manage the inbound flow of goods from supplier to distribution center to identify potential order delays or shortages even before the order is shipped. True Value serves the needs of a retail marketplace focused on immediate gratification. If the product isn’t available, chances are its consumers will go elsewhere to find it. The solution enabled True Value to reduce out of stocks and optimize inventory in its stores without increasing costs, hence keeping lost sales to a minimum. TrueValue transformed the management of its supply chain across 5,000 hardware stores in 54 countries, reduced lead time by 56% and reduced back orders by 85%. --------------------------------------------- Overview: SK Telecom is the leading provider of mobile telecommunications services in South Korea, with 50.5% of the market share in 2008. It was the 6th company in the world to surpass 10 million subscriber mark, and currently has a presence also in China, Japan, Vietnam, and the whole Asian continent. SK Telecom is a very innovative company. Since being established on March 29, 1984, the company evolved from a first generation analogue cellular system, to second generation CDMA, then to the world's first third generation synchronized IMT-2000 cellular system. SK Telecom also became the world’s first to commercialize HSDPA in May, 2006. It has a number of subsidiaries that have a worldwide presence. Business Needs: As a telecommunications operator, SK Telecom has a number of business partners that provide content and services that are offered to the end user (mobile phone user). SK Telecom provided systems on which the business partners developed these services, and then moved them into production. These systems were known as incubation systems, and in early 2009 it was decided to industrialize this system and provide a Cloud to host these systems. There were to be two server farms in the Cloud: a development server farm in which the business partners would develop and test their services, and a production server farm to host the services when they were ready to be offered to the end users. This was to be a relatively contained system in terms of the size of the managed environment, but it was to be a full production Cloud with functional requirements that exceeded the out-of-the-box capabilities of any existing commercial offerings. It was also to be a showcase for SK Telecom as an innovator, and key proof-point for larger and more ambitious Cloud projects within SK Telecom and for other companies in Asia Pacific. Solution: Create a project with a Red Hat Enterprise Linux or Windows 2008 virtual server. Create a project with a number of virtual servers. This could be a mix of Red Hat and Windows servers. Create a project with a virtual server, selecting additional software to install on top of the provisioned server. Create a project with a number of virtual servers, selecting additional software to install on top of the provisioned server. Create a project based on template which is composed of a predefined multi-server topology (e.g. a 3-tier J2EE architecture). Install additional software on existing virtual servers. Change the resource allocated to existing virtual servers (CPU, Memory and Storage). There were a number of other requirements, such as platform support, physical resource pool support, support for future reservations, and a number of new requirements emerged during the course of the project as both the customer and the project team became familiar with Cloud concepts and the capabilities of the technology. Finally, it was essential to build a Korean-language Service Portal to access the Cloud services, and to integrate them with other applications supporting the Business Partner applications. The development of the Portal was delegated to a local business partner, but API design and integration support were important design and implementation considerations Benefits: This project was a project aimed at launching a new means of providing services to partners, and not a pure transformation project to move from an existing solution to a new one. Additional capacity was added to be ready for an increase in services. Therefore, the benefits cannot be expressed in traditional terms like ROI, savings, optimization, etc., but it has opened up the possibility to onboard partners very quickly and to offer them services in a very cost-effective manner. As a result of the cloud engagement SK Telecoms managed to increase their agility and lowered operational costs through cloud-based automated delivery of business services to SMB clients. This project also demonstrated their technical leadership in the geography, and to confirm the reputation as being a leading-edge technology
• #9: Main point: Our cloud capabilities are organized into 3 simple areas. SmartCloud Foundation, the integrated set of cloud enablement technologies for private and hybrid Clouds. These are technologies that our customers can use to build their own private clouds. SmartCloud Services , the IBM cloud platform designed for enterprise-class service delivery with PaaS/IaaS managed services. IBM SmartCloud service delivery platform is built upon the very same SmartCloud Foundation technologies that are clients are using. And SmartCloud Solutions , our growing list of business and industry solutions on the Cloud offered as SaaS. Capabilities such as Collaboration, B2B Integration, Digital Marketing Optimization… all delivered via SaaS. <Note about PureSystems as part of the SCF family> IBM SmartCloud Foundation provides offerings that enable our clients to easily build, manage, and rapidly scale their private/hybrid cloud environments. PureSystems deliver important additions to the IBM SmartCloud Foundation that accelerate the building and scaling of private/hybrid cloud environments. By using PureSystems as building blocks, you can significantly reduce your effort and the time it takes to create private/hybrid cloud-based environments.
• #10: There are a number of key areas where we're actually defining entirely new markets. We're investing in our cloud portfolio in these key areas to take our clients to the next level. These includes the cloud enabled services that make up our Smarter Commerce and Social Business solutions, as well as emerging opportunities in analytics enabled by the cloud. Briefly define each space: Smarter Commerce: Is about improving the processes associated in commerce- buying, selling, marketing, services- by acting on insights generated through mobile and social commerce. It is about helping clients become more efficient and effective, improving margins, and creating new revenue streams. Social Business: The way people work is changing. Collaboration within and outside of your organization is no longer a nice-to-have, it's a necessity. Cloud technology makes it possible for users to collabrate within and across company firewalls, and simplifies and improves daily business interactions. According to an IDC Survey ("IDC North American Cloud Survey" - Robert Mahowald, January 2011), 'After email, with 58% saying they'd be using a cloud solution of some type in the next 24 months, overall collaboration was the second most important workload, with 48% saying they'd be looking to build out an internal cloud, or use a public solution.‘ BAO: Analytics is the key to making both of these- and many other spaces- work. BAO is the process that enables our clients to turn oceans of data into predictive models and actionable decisions. These cloud-enabled capabilities allow our clients to optimize the people and processes within their organizations, use insights to drive smarter decisions, and instrument and maximize their assets. We’re also defining new industry solutions cloud services, which enable industry-specific outcomes for our clients. A great example there is around Smarter Cities, which I’ll talk about shortly. Let's take a closer look at one of these spaces and the cloud-enabled services.
• #11: IBM Smarter Commerce on Cloud Helps companies accelerate their ability to transform how they buy, market, sell and service goods and services with customers and suppliers. IBM Smarter Commerce on Cloud offers the advantages of cloud economics and immediate access to Smarter Commerce solutions in order to accelerate your company’s ability to transform the entire customer experience Talking points: Many of the cloud solutions that you already know come together to enable Smarter Commerce on Cloud and we will take a look at those in a moment. Smarter Commerce on Cloud is about enabling our customer to ACCELERATE the transformation to Smarter Commerce through the use of cloud, specifically software as a service (SaaS) solutions that offer: The advantages of cloud economics: Low up front capital investment, pay-for-use models, instant and ongoing scalability To provide immediate access to Smarter Commerce solutions: faster time to deploy than with traditional on premise software In order to accelerate a company’s ability to transform the entire customer experience: Accelerate customer value for commerce solutions using the cloud to reduce your time to market and deliver innovation faster Accelerate customer, supplier and partner engagement by collaborating in the cloud, making it easier for everyone to access and share information Accelerate your response to changing market dynamics by using the cloud to analyze data from multiple sources in real-time to provide deeper insights into customer behavior
• #15: Application Management & Hosting Data Retention & Migration Disaster Recovery Network & Infrastructure Management Software Support Security & Compliance Certification Support Helpdesk
• #16: Talking points: This slides re-enforces the benefits that customers achieve from the use of cloud based solutions. We live in a time when volatility not only in terms of the competitive landscape, but also in terms of the political and economic landscape brings new threats and with it new opportunities. The ability to deploy cloud solutions faster accelerates the time to benefit and lets companies make the most of those opportunities. IBM SaaS solutions are enterprise class and the purchase of them simplifies the procurement process as IT need to be less concerned about things like the platform, infrastructure, operating systems etc the solution is running on as it is delivered on cloud. This ability to accelerate time to benefit means companies can use cloud to quickly take advantages of market opportunities. The ability to deploy cloud with minimal capital investment and have predictable use-based costs helps reduce risk and manage the threat that comes with a volatile economy. Cloud also reduces the burden on internal IT resources both in terms of designing and deploying the solution, but also in terms of supporting the solution
• #17: There are pro’s and cons of on premise and cloud solutions and the important difference IBM can bring is to understand the needs of our customers and recommend a solution that meets those needs regardless of deployment option - the majority of our customers will probably use a bit of both to create a hybrid solution