Cloud forum platform - from sap to new applications final a

Cloud as a Platform for Business Innovation and Growth – from SAP to New Application Models

Presenters Scott Skellenger Senior Director Global Information Services Illumina Inc. Bo Bazylevsky - Co-founder and President Reza Rassool - CIO Music Mastermind Craig Heimark Chairperson-CEO CohesiveFT Jan Jackman Vice President of Cloud Services Global Technology Services Charles “Chuck” Kichler IBM SAP Practice CTO IBM Distinguished Engineer Chandar Pattabhiriam Vice President Cast Iron Customers & Partners IBM

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

The Shift to a Client-Defined Cloud Increased focus on Business Companies are leveraging cloud on a Smarter Planet Cloud provides means to drive greater business value, manage IT budgets and conceive new business models Cloud provides the flexibility to easily fit into IT and promises to re-shape IT Cloud helps enable business information anywhere – anytime Low cost and high speed: Operational Dexterity Flexibility and agility: New business value Simplicity and ease of use: IT without boundaries

The World is Becoming Smarter – More Instrumented, Interconnected, Intelligent…. Leveraging cloud computing to improve the #1 industry in town - fishing eMarketplace created and managed by University Thin clients on every boat In real time, determine market for fish, complete transaction including shipping while still at sea eCommerce and desktop cloud Establish Malaysia as a strong resource in film animation and media projects Provide resources quickly and easily to new and emerging companies Storage and desktop cloud Integration and coordination across the continuum of patient care Provide clinical insight without sacrificing privacy Compensation for coordination of care … driving new levels of complexity.

What is different about cloud computing? With cloud computing Without cloud computing Virtualized resources Automated service management Standardized services Location independent Rapid scalability Self-service Software Hardware Storage Networking Software Hardware Storage Networking Software Hardware Storage Networking Note: Elements of cloud computing taken from NIST, Gartner, Forrester and IDC cloud computing definitions

IBM’s next generation service delivery platform was built to meet these requirements Infrastructure Client portal Management, support and deployment Security and isolation Availability and performance Technology platform Payment and billing Business Services Platform Enterprise data center Enterprise data center Private cloud Hosted private cloud Managed private cloud Enterprise Shared cloud services A Enterprise B Public cloud services A Users B Secure, ubiquitous access

And help usher in next chapter for cloud computing To fulfill its potential as the next evolution of enterprise IT, cloud computing promises to become much more than an enabler of IT efficiencies. It promises to become a driver of business transformation, innovation and growth

The Shift to a Client-Defined Cloud Increased focus on Business Facilitate business process redesign through IBM Smart Cloud platform Seamless integration to support development and consumption of new services Maintain integrity and security Low cost and high speed: Operational Dexterity Flexibility and agility: New business value Simplicity and ease of use: IT without boundaries

IBM Smart Cloud - Foundation for Value-Add Services and Applications IBM Delivered Services ISVs ISVs Platform ISVs Application, ISV other partner ecosystems Common Cloud Management Platform Cloud Reference Architecture Ecosystem Enablers Other IBM / ISV Plats Anchor SaaS Industry Solutions

IBM provides operating system and tool licenses Fully managed The IBM enterprise-class service delivery platform will offer two tiers – optimizing delivery requirements and economics Rapid access, multi-tenant solution scaled and priced based on usage. Robust multi-tenant solution, including managed production services. Workloads Operating system Management level Availability Security Software usage Pricing Ideal for developing and deploying new application designs Ideal for migration of traditional and higher availability applications Linux, Windows Windows, Linux, AIX Self Service with advanced premium support 99.5% 99.9% Virtual and some physical isolation Multiple levels of isolation Bring your own / pay as you go / free developer use Hourly usage-based with reserved options Monthly usage-based and fixed contract

IBM Smart Cloud helps clients address key workloads Application development Storage Customer relationship management Desktop and devices Security Collaboration & Unified Communications Enterprise resource planning Self-service Support Finance and administration Mobile enhancement Supply chain Partners Customers Employees Partners Customers Employees

Transforming application development processes through cloud enabled platform services Project Initiation Requirement Analysis Design Deployment Production Development Test Defects loaded in Rational Quality Manager and tracked through application life cycle Code Analysis & Reporting Application Virtualization Performance Testing Services Mobile Device Testing Defect Analysis Maintain Community of Partners Workload Portability Application Virtualization Testing Solutions Testing on Devices

IBM Converged Communications Services Design and deployment for private Unified Communications cloud Leverage IBM expertise to implement a UC solution on private cloud or IBM Smart Cloud -Enterprise+ IBM Private UC Cloud Solution Telephony Management Unified Messaging Phone Presence Sametime Web Conferencing Domino & Notes Connections & Quickr Sametime IBM Servers IBM BladeCenter IBM Systems Director IBM Storage IBM Services Management and Provisioning Data Center Network Enterprise Telephony IBM Technology Partner’s Software Security-rich, flexible private cloud solution for mission critical UC applications Combines IBM hardware, software and services with technology partner’s software Helps reduce cost and complexity of managing collaboration tools Web- browser Lotus clients Softphone Mobile/ Smart phones Desk phones Conference phones CPE Equipment

The Shift to a Client-Defined Cloud Increased focus on Business Supports production-level mission critical applications Platform for migrating key applications and workloads Platform for integrating hybrid world of cloud and on-premises applications Low cost and high speed: Operational Dexterity Flexibility and agility: New business value Simplicity and ease of use: IT without boundaries

Cloud as a Platform for Business Innovation and Growth – from SAP to New Application Models Charles “Chuck” Kichler IBM SAP Practice CTO IBM Distinguished Engineer

Typical Challenges in SAP Environments Extensive install 3-5+ full days Re-provisioning/move requires SAP System-Copy 2-3+ full days for this operation Many non-production SAP systems Development & test, demo, training, etc. systems SAP landscape is layered/add on modules CRM, BI, etc. adds complexity to install/move Moving between Clouds or to „On Premise“ System copy, compress, file transfer Typical Challenges

As well as even the most complex existing application environments… IBM delivers SAP environments via the cloud, automating the most common, labor-intensive managements tasks. Value Delivered: Install DB2/Oracle Maintain database libraries Clone database Install operating system Provision SAP environment Add additional application server Refresh SAP systems 1 day ½ day 2-3 days 1 day 2-3 days 1 day 1-4 days 12 mins 8 mins 20-180 mins 30-60 mins ~ 40-200 mins 10 mins ½-3 mins From traditional To cloud

End-State Vision for SAP Management Consolidated View & Management Usage accounting Auditing and controls Provisioning Cloning Refreshing. VM Provisioning Image Management Service Management Information security mgmt. Access management ... delivering service management in private, public & third party environments Enterprise needs met... ... through a single window with full management capabilities... Self service portal Dashboards Reporting Services Catalog Provisioning Decommissioning Dedicated Private Cloud Hosted by IBM On Premise IBM Cloudburst IBM Tivoli Security Users Finance & Accounting Users SAP Users Business Users

Use Cases Available to Leverage SAP Services Installation Configuration & Customization Patching Start / Stop Backup / Restore Clone Reset Remove / Restart ... SAP Service Workflows SAP Refresh SAP Migration DB Cloning System Cloning Landscape Cloning SAP App Server provsioning SAP DB Server provisioning SAP Landscape provisioning ... Composition of Functions / Service Workflows to Use Cases

Team-IBM – Delivering Value for Clients Worldwide Cloud Assessment & Planning SAP on IBM Smart Cloud Life Cycle-as-a-Service

Cloud as a Platform for Business Innovation and Growth – from SAP to New Application Models Chandar Pattabhiriam Vice President Cast Iron

Companies are Adopting Cloud Services

Cloud Application (SaaS) Use is Exploding Notes on the Data Obvious trends away from on-premise solutions toward SaaS/Cloud solutions for new software through at least 2014. IT and business executives expect their firms to prefer buying SaaS/Cloud-based solutions rather than traditional on-premise solutions after 2014. Saugatuck Insight: Spending on new software solutions will shift to SaaS (Cloud-based). While timeframes will vary by region and industry, the general global tipping point will be in 2014. On-premise software will not vanish at this point, but will become the minority in new software spending. Source: Saugatuck Technology Inc., 2010 Cloud Business Solutions / SaaS Survey (March 2010), Global N=790

It’s Created a Hybrid World Private Clouds Public Clouds Home-grown Applications Packaged Applications Companies have both Cloud and On-Premise Applications

Public Clouds Private Clouds Which Demands Integration Home-grown Applications Packaged Applications Companies have both Cloud and On-Premise Applications

Why Connect the Cloud? Sales CRM Service Marketing Shipping Finance What are my hottest leads? ? Where are my orders? ? Has this customer paid? ? I need to do a credit check ? Where are my invoices? ?

Answer: Integration = Maximizing Productivity & Investment Hottest Leads Sales Invoices Orders CRM Service Marketing Shipping Finance

SaaS Buyers Feeling the Pain Source: Saugatuck Technology Inc., 2009 Global User Survey; n=1793

WebSphere Cast Iron Cloud Integration Connects Hybrid World of Cloud and On-Premise Applications In Days

WebSphere Cast Iron Integration Configuration, not coding Multi-tenant IBM Cast Iron Cloud Virtual appliances (VMware) Cloud Applications Cloud Applications On-premise Applications Flexible Comprehensive Physical appliances (IBM) Integrate Cloud and On-Premise Applications in Days Rapid UI Mashups Data Migration Process Integration

Proven Results - Integrate in Days Cloud Offering Customer Scenario Duration Sales Cloud – SQL DW 360* View of Customers 10 Days Custom Cloud - PeopleSoft Billing and Invoice Integration 8 Days Sales Cloud & Chatter – SAP Customer and Sales Order Integration 14 Days Netsuite, CRM Opportunity to order sync 20 Days Oracle CRM On Demand, EBS Real-time order and invoice visibility 10 Days Sales Cloud, Service Cloud, Force.com - Jeeves Order to Shipment 21 Days Custom Cloud

The Shift to a Client-Defined Cloud Increased focus on Business Low cost and high speed: Operational Dexterity Flexibility and agility: New business value Simplicity and ease of use: IT without boundaries

Illumina, Inc. Scott Skellenger Senior Director Global Information Services Illumina Inc.

Cloud The New Norm Scott Skellenger Sr. Director Global IS Illumina inc.

Illumina’s Mission Innovating for the Future of Genetic Analysis To be the leading provider of integrated solutions that advance the understanding of genetics and health To Targeted Validation and Beyond… From Genome Wide Discovery…

The Impact of Scale in Sequencing Gb / run Year 10 4 scale in throughput; 10 7 scale in parallelization in 5 years

Where have we been? What got us here won’t get us there…

The Promise of Cloud – A Smarter Approach From legacy architecture to modern business function Economies of scale Elasticity Performance Higher Service Levels Variable Cost A Cloud approach can deliver … … if we evolve to support it!

SOA as Business Function Loose coupling of business services requires a shift in IT emphasis IT Organizational and Skill Evolution to Support Cloud Contract and Vendor Management – Knowing what you need and want… Integration, Integration, Integration MDM – Maintaining control of your company’s data assets SLM – For real this time! Governance Risk and Compliance – You are not off the hook Business Function Hub MRM CRM HR

How do we get there from here? Staying out of the Transition Danger Zone Attack Risk!!! Understand the relationship between cloud based business functions Internalize the Business Process Overlay, Data Management Req. Minimize the number of contracts/partners where possible Keep the Transition Danger Zone manageable Divest legacy architecture and rigidity Transition Danger Zone High Complexity High Cost

Evolution of IT – A Sea Change Cloud as a business differentiating smart architecture Time Competitive Profile We Build IT! Governed, Workload and Event driven, Elastic, Scalable, Variable Cost Capability/Maturity TDZ

Music Mastermind Bo Bazylevsky - Co-founder and President Reza Rassool - CIO Music Mastermind

Revolutionizing the Way We Create, Share, and Enjoy Music - PRIVATE & CONFIDENTIAL -

World Class Team Matt Serletic CEO & Founder Reza Rassool CTO Bo Bazylevsky President & Founder Songwriter, Producer, and Musician Former Chairman/CEO of Virgin Records Multiple GRAMMY, ASCAP, RIAA, and CMA Award winner Serial startup veteran Pioneered digital AV editing, VOD Technical Oscar and Emmy Award-winning products Senior portfolio mgr/trader Former head of Emerging Markets Corporate Trading at Bear Stearns, JP Morgan PM—Moore/James Caird Asset Management TEAM TEAM TEAM Engineers (90+ yrs exp., advanced degrees music/computer science) Music theorists Music industry experts DSP, Cloud, Server Development AAA Game Developers (80+ yrs exp., 33 console game credits including 6 Guitar Hero titles) Outsourced software resources CFO: Former UMG & Geffen financial executive Raised Series A ~$5MM Raising Series B ~$10MM - PRIVATE & CONFIDENTIAL -

But what about being a musician ? Anyone can be… - PRIVATE & CONFIDENTIAL -

Making Music In The Cloud - PRIVATE & CONFIDENTIAL -

Make It Fun! Games replace work Mini-games Badges Upgrades and unlocks Rewards for sharing - PRIVATE & CONFIDENTIAL - GO VIRAL

A Personal Music Experience - PRIVATE & CONFIDENTIAL - Hello Samurai Rob Thomas, First Star Artist GENRE CHARACTERS STAR AVATARS

yesterday, we were quiet… - PRIVATE & CONFIDENTIAL -

CohesiveFT Craig Heimark Chairperson-CEO CohesiveFT

Cloud forum platform - from sap to new applications final a

Faster and Easier 24% - McKinsey 47% - Microsoft

Faster and Easier Better image quality??

“ Internal Cloud” “ External Cloud” “ Internal Hosting” “ External Hosting” Shared Infrastructure Dedicated Infrastructure On Premises Off Premises 85%

“ Internal Cloud” “ External Cloud” “ Internal Hosting” “ External Hosting” On Premises Off Premises 85% 11% <1% 4% Shared Infrastructure Dedicated Infrastructure

On Premises Off Premises <25% ~40% ~30% <5% Shared Infrastructure Dedicated Infrastructure “ Internal Cloud” “ External Cloud” “ Internal Hosting” “ External Hosting”

On Premises Off Premises *Typically 50% cost reduction from shared infra Externalize (flexibility Benefits) Standardize & Virtualize (cost benefits*) 1 2 Shared Infrastructure Dedicated Infrastructure “ Internal Cloud” “ External Cloud”

Private Cloud Agile Data Center Public Cloud 3 Public Cloud 2 Public Cloud 1 On Premises Off Premises Shared Infrastructure Dedicated Infrastructure “ Internal Cloud” “ External Cloud”

Coders Create Operations Maintains Developers Assemble

Elastic Server Platform Server assembly like hardware

Build from components just like your would from HP or Dell...

Allows choice at every level Open Source Components Commercial Source Components Proprietary Source Components Multiple Operating Systems Assemble

Upload your own proprietary or licensed ISV component Capture Operating Instructions Assemble Assemble

Save Bill of Material as a template allows “remanufacturing” for patch mgmt allows “ remanufacturing ” for migrations or heterogeneous deployment Manage Bill of Materials Rebuild button

Overlay Network Control your security perimeter your IP address space your protocols your topology … across multiple clouds… … and between your physical data center and your cloud deployment. VPN-Cubed provides a security perimeter for your IT infrastructure inside the cloud…

Cross-could overlay network in action Three clouds – one network EC2 Rackspace Terremark

I want to control my own network addresses

Can ’t I use my existing data center NOC?

IBM Smart Cloud Enabling the next generation service delivery platform Hanoi Vietnam Silicon Valley California Dublin Ireland São Paulo Brazil Johannesburg South Africa Bangalore India Tokyo Japan IBM Cloud Labs Seoul S. Korea IBM Smart Business Cloud Singapore Beijing China Raleigh NC Cloud Research Ehningen Germany Boulder CO Toronto, ON Canada IBM Managed Backup Cloud – IPS (not all listed) Aubervillers France Madrid Spain London England Capetown South Africa Hong Kong Sydney Australia Next Generation Combination of Technology, Expertise and Proven Experience to Help Your Company Navigate advance your Cloud Deployment ! Low cost and high speed: Operational Dexterity Flexibility and agility: New business value Simplicity and ease of use: IT without boundaries

While at the IBM Cloud Forum Stop by Demonstration Area IBM Smart Cloud SAP Managed Application Services … And Many More Connect with IBM Connect with Partners Connect with Community

IBM Smart Business Cloud-Enterprise Spring 2011 North America Promotion Exciting Offer for New Customers to experience IBM Smart Business Cloud-Enterprise Offer Terms From April 8 to June 10, 2011, provision select virtual machines at the Toronto, Canada data center—subject to availability—at no charge: 32-bit Copper and 32-bit Silver machines Virtual machines to run Linux ® (Red Hat or Novell SUSE) or Microsoft ® Windows ® Server 2003/2008 256 gigabytes of persistent storage Following promotional period, add on additional services and pay for those and virtual machines provisioned during promotional period under standard terms & conditions Featured on ibm.com /cloud/solutions/enterprise www.ibm.com /cloud/solutions/promo

Cloud Service Models have foundational components… Image Management Management and governance of virtual images across the software lifecycle Virtualized Workloads Delivery of integrated middleware workloads that leverage cloud capabilities Infrastructure Management Automated and instrumented infrastructure with virtualization Integration & Connectivity Secure and reliable connectivity and integration within and between cloud environments Elastic Resources Efficient scaling of software and hardware resources in a cloud environment Analytics Business analytics and insight delivered via the cloud Collaboration Collaborate and interact with people and processes in the cloud Implementation and Consulting Services Managed Services Business Services Platform Infrastructure

Let’s walk through a few key capabilities fundamental to cloud Business Services Infrastructure Business Application Services Industry Solutions Platform The capabilities we hightlight need to blow up. The capabilities we de-emphasize need to gray out. APaaS Collaboration Analytics Application Lifecycle Developer & Tester Collaboration Development Automation Life-cycle Traceability Integration Process Integration Identity Integration Management Integration Application & Data Integration Spillover/Failover Services Optimization Heterogeneous Platform Management Optimized Workload Placement Virtualized Compute, Network, Storage Workload Acceleration Power Management Security Service Management Identity Management Intrusion Detection Tenant Isolation Data Protection OSS Service Quality Management Service Operations Mgmt Service Asset Mgmt Service Automation Mgmt Image Management IPaaS Multi-tenant Applications Workload & Data Mobility Continuously Available Apps App Health Mgmt & Self-Healing Dynamic Workload Management Elastic application runtimes Fine-grained SLA Enforcement Workload & Topology Patterns Elastic Application Resources

Simplicity and ease of use: IT without boundaries Start with the fundamental benefits of the cloud…and activate them to transform your business. A global telecom’s virtualized application development environment enables more testing earlier in the cycle, improving defect discovery and delivering 100% ROI in 30 days. A major medical group taps a collaborative care cloud to apply advanced analytics and clinical support to improve patient outcomes A pharmaceutical services company achieves a projected USD$250,000 in annual savings and reallocates 80 percent of its data integration resources to strategic activities through the integration of Cloud into traditional IT systems Low cost and high speed: Operational Dexterity Flexibility and agility: New business value

And It’s Created a Hybrid World Private Clouds Public Clouds Home-grown Applications Packaged Applications Companies have both Cloud and On Premise Applications

Which Demands Integration Private Clouds Public Clouds Packaged Applications Integration is Critical in a Hybrid World Home-grown Applications

WebSphere Cast Iron Integration Configuration, not coding Multi-tenant IBM Cast Iron Cloud Virtual appliances (VMware) Cloud Applications Cloud Applications On-premise Applications Flexible Cost Effective Physical appliances (IBM) Integrate Cloud and On-Premise Applications in Days Rapid TCO Websphere Cast Iron Custom Code

Proven Results - Integrate in Days Cloud Offering Customer Scenario Duration Sales Cloud – SQL DW 360* View of Customers 10 Days Custom Cloud - PeopleSoft Billing and Invoice Integration 8 Days Sales Cloud & Chatter – SAP Customer and Sales Order Integration 14 Days Netsuite, CRM Opportunity to order sync 20 Days Oracle CRM On Demand, EBS Real-time order and invoice visibility 10 Days Sales Cloud, Service Cloud, Force.com - Jeeves Order to Shipment 21 Days Private Cloud

Covering the IT and Cloud Deployment Continuum Private Public Hybrid IT capabilities provided “as a service,” over an intranet, within the enterprise and behind the firewall Internal and external service delivery methods are integrated IT activities / functions are provided “as a service,” over the Internet Enterprise data center Enterprise data center Private cloud Hosted private cloud Managed private cloud Enterprise Shared cloud services A Enterprise B Public cloud services A Users B New business value

Transforming application development processes through cloud enabled platform services Value Delivered: From traditional To cloud Project Initiation Requirement Analysis Design Deployment Production Development Test We should use this graph as its simpler then Next page. We may want to change the bottom half for the messages in our chart Workload “portability” Workload “porting” Hybrid Platform Point and Click integration Custom Integration Integration as Service 30 min for developer environment Days to set up per developer Development Environment One operator for 100 applications One operator for 10 applications Application delivery management DB Administrator for 100 applications DB Administrator for 10 applications DB as a Service

IBM Brings Unique Strengths to Deliver Integrated Development and Test Environment “… Developers are typically underserved by existing processes, and offering them a self-service option helps productivity and, crucially, avoids many issues…” Cloud CIO: 3 Private Cloud Use Case Scenarios By Bernard Golden Wed, March 23, 2011 Community of Partners On Boarding Application Virtualization Testing Solutions Testing on Devices

Unprecedented Capability across our Cloud platforms.  Middleware  Process   Physical (Hardware)   Hypervisor  Operating System  Application Management, & Support  Integrated Back-Up and recovery  Dedicated Client Connection from Datacenter  Location Dexterity   Logical & physical Isolation (VM, Network (VLAN), & Storage)   Security Policies & Services Security & Isolation  SLA 99.9%  SLA 99.5%  High End Scalability   Rapid Provisioning Time Availability & Performance  Tier 1 & 4  Tier 2 Tiered Storage  KVM  eSX and Power VM  AIX   Windows   Linux  Power   x86 Technology Platform  Managed Service Options Month* Hour Pay as You Go Payment & Billing

IBM Smart Business Cloud - Enterprise Agile Infrastructure for Myriad of Workloads Choice of nine virtual (Intel) server configurations Choice of pre-configured IBM and third party software images from which to build private image libraries Linux® operating systems; Red Hat and Novell SUSE Windows Server® 2003 and 2008 IBM Lotus®, WebSphere®, DB2® and Informix® stacks IBM Rational® Application Lifecycle Management Tivoli® Monitoring software Virtual Private Network (VPN/VLAN) services with NEW Multiple VLANS for Single Virtual Machine Enterprise level Support Options. Choice of world-wide centers: Raleigh (US), Boulder(US) & Ehningen (Germany), Toronto (Canada), Makuhar (Japan), Singapore Payment options: Pay-as-you-go, Bring-Your-Own-License, Developer-Use-Only, Pre-Release Reserved Capacity Options More at: ibm.com /cloud/solutions/enterprise

Building application migration and integration patterns based on client engagements Build Assemble Integrate Deploy Upload application using standard software and data configurations Deploy a set of private images and instances for running application on the cloud platform “ Waves” of applications ported and packaged and deployed onto Customer’s IBM Cloud Resources . Assemble and build “cloud modules” through source code porting, permitting easy placement onto cloud VMs. Simple: Web Application Complex: SAP Tasks Inventory, profile, and prioritize applications for migration Build the VM environment in the cloud that provides an entry point Plan User access based on IT governance and policies Pattern Based

Management, support and deployment Security and isolation Availability and performance Technology platform Payment and billing Unified communications Archive Desktop Security Compute The IBM Smart Cloud will deliver standardized services from IBM, as well as an ecosystem of partners and clients SAP Enterprise data center Enterprise data center Private cloud Hosted private cloud Managed private cloud Enterprise Shared cloud services A Enterprise B Public cloud services A Users B Client Defined Services

Cloud Computing - NIST* Definition (*National Institute of Standards and Technology) Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. but ….. this is a technology centric definition

Cloud forum platform - from sap to new applications final a

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