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Editor's Notes

• #3: As the world gets smarter… NOTE TO PRESENTER: You can customize this page by talking about the important business drivers in your industry: Better revenue streams; Updating customer insight; Driving out costs; Successes with instrumentation. What is the business agenda of your customer - and how will it impact the demands on IT. ------------------------------------ General Speaker Notes: IBM has been talking about our vision for a smarter planet for close to a year now- and working with thousands of clients - with great success and traction taking hold. There’s no doubt that in almost any industry today, digital and physical infrastructures are coming together more and more. To some extent – today - almost anything – any person, object, process or service -- can become digitally aware and connected. Every industry is experiencing the benefits, and feeling the challenges, being presented by a smarter planet that is more instrumented, interconnected and intelligent. (Use an industry example, if possible, to bring point to life. See below) Transition Line: What does this mean for you? As the world gets smarter, the types of demands on the infrastructure, both business and IT, will continue to grow. (Speaker note- consider picking one example from below – or one from your own industry). Take one example, one issue that many of us face each and everyday is dealing with traffic. As a major city government, clogged highways create massive headaches: managing traffic flow, impeding emergency services, and creating a large carbon footprint. The city of Stockholm came to IBM with a project to change that. They had a goal of reducing rush hour traffic by 20%, increasing use of public transportation, and basically reducing their carbon footprint. Working together, we made their highway system “smart”, monitoring traffic volumes, and as traffic increases the tolls for getting into the city go up. The heavier the traffic, the more it goes up, thereby driving a behavior change, but also making people aware of how many cars are on the road. The project was a huge success. They saw their traffic volumes drop by over 20% in 60 days, use of public transportation, trains and buses, increased significantly, and their toll revenue went up as well. They are now taking that money and putting it back into more and enhanced public transportation. IBM is now working with over 15 cities around the world on instituting a similar system. Statoil, a global oil company, has many offshore operations. Each of these offshore platforms are incredible production facilities: highly automated, computerized, and monitoring real-time the quality of what is being pumped from the ground of each wellhead of the platform. However, they needed productivity to improve. Globally, on average, only 37% of what is pumped out is actual useable crude oil. Statoil was achieving productivity higher than the global average, but still not where they needed to be. Partnering with IBM, we analyzed the volumes of data they had on what had been pumped from each wellhead and discovered that the oil fields deep underneath the surface of the earth ebb and flow, just like our oceans. By analyzing the data real-time from all the platforms covering a single field, we are now able to predict when a platform should be pumping, and when it should be shut down. By knowing in advance when a platform will be most productive, Statoil has been able to improve productivity by over 20% in 10 months. An added bonus is that their platform operating expenses have dropped by over 30%. Why? Because they can now predict the proper worker scheduling, without large amounts of downtime, or overtime. They also can now prepare for routine maintenance in a predictive manner. This was a project that drove down costs, and provided for breakthrough productivity improvements. IBM is now working with several other oil companies on similar implementations. Our healthcare is becoming smarter as well, and generating vast amounts of information. For example, today not only do they provide one dimensional x-rays, and MRI images, today we do both in 4 dimensional imaging – that is full 3-D with the factor of time added in. These ‘streaming” images are providing huge insights in improving overall healthcare, but they are also presenting huge challenges in medical record management, storage, and accessibility (i.e.., networking bandwidth). Did you know that on average around the world, only 27% of the electricity that is generated is actually used to power something? Now, using the power of electricity is using the “flow” of the electricity, similar to water power. So when our power plants are creating electricity they must disperse it across the system to keep the flow going. Traditionally, a power plant would build up to a certain volume, and then broadcast out across the entire system. So if one area really needed less electricity, but another area needed more, then the power plant would have to generate more across the entire network. About 5 years ago, partnering with IBM, utility companies began to make their energy networks “smart”. This meant instrumenting and interconnecting the grid with a main monitoring system that would track actual electric usage, and then route power across the grid according to need. This has driven huge productivity improvements, in some cases experiencing overall utilization in excess of 50%. For many companies around the world this has also eliminated the need to build new power plants. In fact some have told us that they believe they can wait as many as 5 years before looking to expand power production. Smarter retail and smarter supply chains mean leveraging RFIDs and digital information to make the shopping experience better for the consumer, and making sure that what the customer wants to buy, is on the shelf. Teaming with IBM, a major retail company in China has implemented an automated stock management system that has all of their suppliers monitoring product usage and store inventory needs real-time at each and every store. When an item reaches the trigger point, automatically the supplier is shipping replacement stock, with a guarantee that it will be in the store within 72 hours. Another example is leveraging security cameras to monitor shopper behavior, or the ability to then move stock that is in high demand to more convenient places for customers to see and buy. Or, targeting certain buyer categories based on their shopping habits. Much is being done to improve store sales, while simultaneously improving the shoppers experience and thereby customer loyalty. Smarter transportation includes the ability to get trucks for point A to point B more efficiently, using less fuel and getting there faster. Maptuit, based in Denver, Colorado is doing just that by leveraging the cell signal data between cell towers to monitor speeds, traffic congestion real time and guide drivers in the best way to arrive at their destination. A major global retailer is now signed up with them, as they were able to prove their technology in a pilot that would save the retailer over $1.5 million per year in just ONE city.
• #4: A smarter planet is placing new demands on IT. A smarter planet will generate vast amounts of data that will be disseminated at networking speeds. A new class of applications is emerging to take advantage of all this data. These workloads span all industries and include such applications as financial analytics, video surveillance, medical imaging, network security and threat management, 3D on-line infotainment and search. But it isn’t just about analytics- it is also about the fundamental change in what people have come to expect from everywhere they do business – and the demands it is placing on IT. Consider: YouTube streams a billion videos a day. In Sept 09 - Facebook announced that it had passed the 300 million mark in users worldwide - after hitting 250 million only two months earlier in July 2009. August – 09: LinkedIn celebrated their 45 millionth user and covers over 150 industries around the world, is the fastest-growing professional networking site. Nearly 60% of users have incomes of $93,000 or more. Foolish trends? Waste of time? Perhaps. But it is setting the trend that anything can be posted, shared, downloaded, etc. in peoples’ minds. Soon, they come to expect that from anything they access online – or any application that is used. Fed-X ships over 7 million packages a day – all needing to be tracked. E-ZPass IAG processes 1 billion toll transactions per year, amounting to 2/3 of all toll revenue in the US. Intra monitors ocean shipping containers – all containing RFID information - growing 1100% in the last 7 years. By 2011, the world will be 10 times more instrumented then it was in 2006. Overall, across all industries, 4 million RFID messages are emitted each day. . Internet connected devices will leap from 500M to 1 Trillion. These emerging class of applications will require real-time data analysis with improved performance, scaling and efficiency. The approaches that worked even 3-5 years ago just are not designed for this type of volume and structure of data. IBM’s announcements today support the need for a workload optimized approach in the data center. Notes: Encryption 1991 IFL Specialty Engines for Linux 2000 zAAP Specialty Engine for Java 2004 zAAP Specialty Engine for DB2 2006 Hyplon Gameframe was 2007 Roadrunner was 2008
• #5: Energy cost and use are the drivers for change Many of our clients still don’t understand why we’re so focused on energy and operational efficiency and why it’s become such a significant problem. This chart helps cast the reasons. Increasing IT demand. So as IDC estimates, in this decade, the average customer will have increased their server capacity by six times and their average storage capacity by 69 times. As a result, all of those devices are using more energy, and we’ve seen the energy use in data centers double over the last five years. And that projected increase is expected to continue. As a result, we’re seeing clients, in many cases, many, many cases around the world, running out of power and cooling capacity in their data centers and, as a result, they’re building more data centers. The statistics suggest to us that somewhere between 60% and 70% of our clients are planning to make major data center investments in the next 12 to 24 months to overcome these kinds of issues. In addition to that, it’s pretty clear that everybody’s facing cost pressures. In fact, in a recent CIO survey, cost moved from number five to number two on their priority list, and the survey was completed in November. So we know cost to management is becoming a more critical part of the business. In addition, the CIO is facing more and more pressure to implement things they never actually considered as high-priority elements in their budget. As a very simple example, many companies around the world have changed their travel policies and are reducing the amount of travel required or allowed by their employees. As a result, the needs for collaboration tools, the needs for teleconferencing have significantly gone up in the priority queue across the IT organization, and the IT executive is struggling where they’ll find the money to take on those new applications that are really required for the business to continue to operate in a no or reduced travel environment. So there is significant pressure being put on the budgets, and the energy side of the equation is putting more pressure on the budgets as energy costs continue to increase along with energy use. So it’s very obvious that the clients really do need to focus on cost. We’re also discovering that those clients may not actually understand all of their costs. When you actually look at building a data center for a client, especially in the much higher density environments that we’re building data centers for today, the clients do not understand what the lifecycle cost of that data center is, not the lifecycle cost of the technology that goes into it, but the lifecycle cost of the data center itself. When we actually do that analysis, we find that the data center, to run over the next 20 years, will typically be three to five times the capital cost to build that data center. So as an example, if a client’s going to spend $10 million to build the data center, over the next 20 years, they’ll typically spend $50 million to run it. And in most cases, those clients are not going to the board with a $60 million decision, which is really the impact to the corporation. They’re only going forward to the board of directors for a $10 million decision. So focusing on the total lifecycle cost of data centers and ensuring that we’re optimizing that lifecycle cost clearly has enormous benefit for the client. And the last point is, you know, the data center environments need to be flexible, need to change. I mean very few customers of ours around the world have accurately predicted their growth of IT over a long period of time, have accurately predicted where technology is going for a long period of time. And so, fundamentally, data centers need to become more flexible to respond to these changing needs for the client in a more significant on demand kind of way, and that’s exactly what we’re really trying to implement in this environment. I mean, if you think of it, at the beginning of this decade, the average client was implementing technology that was using somewhere between 300 and 500 watts per rack. So they required that amount of power and that amount of cooling per rack. In today’s environment, we’re typically seeing clients install blade servers at 20,000 to 30,000 watts a rack. We’re seeing clients installing new UNIX technologies that might go up to 70,000 watts per rack. So that level of very significant flexibility in data center design has never really been considered in the past. So let’s flip to page four.
• #9: It’s time to start thinking differently about infrastructure. It’s obvious that we’re going to have to work a lot smarter and more efficiently to build a more dynamic infrastructure to support the business needs.
• #10: Building a dynamic infrastructure: (Speaker note: If you are going to go into each section in more detail, consider just using this chart to tee up the middle section, vs going into each explanation. However, if you are going to use the short version- then these notes will help you articulate our value in each section. ) This is an evolutionary process building on what you have today– not a rip and replace approach. Let’s take a few minutes to just talk about each one of these areas in more detail. Service & Asset Management: A dynamic infrastructure helps provide service delivery across more instrumented and interconnected business and IT processes and assets – and IBM is unique in being able to provide a more integrated approach to service management, one that spans both business and IT – providing visibility, control and automation in a holistic, integrated way. Virtualization: Consolidating resources through virtualization can increase utilization far beyond the inefficient 10-15% utilization often seen in data centers today. Advances in virtualization technologies, like virtual system pools, offer more opportunities for consolidation than ever before and getting to a highly virtualized and shared infrastructure provides a foundation for improved automation, provisioning and rapid service delivery. Energy Efficiency: It isn’t enough anymore to just consolidate for energy efficiency, or to update to more efficient servers and storage. To meet the needs of the business, a holistic approach is required that encompasses virtualization, IT and data center facility services, and energy management across all facilities of the business. A Workload Optimized Approach: A dynamic infrastructure must support the growing need to make informed, real time decisions at the point of impact. This requires systems optimized for the unique workloads that are emerging – and IBM has the business and industry expertise to help clients match the right technology to the unique workload task. Information Infrastructure: Today, information has become the lifeline for business sustainability, and firms of all sizes are searching for practical ways to manage, protect and utilize their information. A dynamic infrastructure helps change the storage economics- not just to better retain and secure the data more efficiently….but to deliver the information in ways that allow for better, more insightful business decisions – in real time. IBM’s provides new cloud –enabled information solutions and innovative storage technologies that can help drive down costs and address the information challenge. Business Resiliency & Security: The vast interconnectivity of resources brings access and collaboration, but also opens additional risks. Maintaining continuous business operations while rapidly responding to new opportunities has heighted the need to for a highly resilient and recoverable business environment; as well as an integrated security strategy to minimize exposure to loss and theft. New Cloud delivery options – IBM Smart Business offerings: Finally, a dynamic infrastructure leverages flexible delivery choices - allowing you to quickly realize direct business benefits by providing you choice in how you acquire and manage IT resources, both onsite and cloud delivered. Cloud computing provides a new consumption model characterized by self-service, elastic scaling according to capacity requirements and rapid provisioning. We have found over the last several months, more and more clients are interested in using “cloud” as a method to deliver solutions and manage IT workloads.
• #12: In IBM’s view, there are seven interrelated initiatives to evaluate and consider on the journey to a dynamic infrastructure. IBM is uniquely qualified to help you take an integrated holistic approach to building out this strategy, since we are able to bring about years of experience in all of these areas to help you create the right design and approach
• #13: From an IBM perspective, we look at things a little differently. With our approach, we look at the infrastructure from the business point of view – helping clients figure out the best way to manage their workloads and meet the needs of their particular business. IBM is uniquely qualified to help you take an integrated holistic approach to building out this strategy, since we are able to bring about years of experience in all of these areas to help you create the right design and approach. Our approach focuses on three key areas: Optimizing the infrastructure to deliver workloads that drive better performance, scalability and efficiency. Workloads have unique characteristics that run more efficiently when matched with the right computing resources. These efficiencies are becoming critical to achieving the service quality and business outcomes required by the business. It’s also about service management – only IBM offers integrated service management across the business and IT architecture, development, and operations. The growing complexity of IT systems demands that sprawling processes become standardized services that are efficient, secure and easy to access. It’s important for businesses to have the visibility, control and automation needed to adapt quickly to changing business requirements and to accelerate the delivery of high quality services. We also know that to meet the changing needs of businesses, we need to offer our clients choice – the choice and flexibility found with our delivery options. So, for example, we can provide project-based services, managed services, strategic outsourcing and cloud computing. We look at options like cloud and workload optimized systems as new consumption and delivery models that helps optimize workloads for greater efficiency, productivity and control. A workload optimized approach: Optimizing the infrastructure around workloads for better performance, scalability and efficiency. Integrated Service management – that provides visibility, control and automation across all IT and business assets. Flexible delivery choices: – traditional ones like managed services, strategic outsourcing and new options like cloud and Smart Business offerings that are optimized around various workloads.
• #15: Today we will discuss IBM’s virtualization solutions and how they provide innovative methods of optimizing our clients infrastructures. Partners of our virtualization strategy are our Energy Efficiency Solutions that provide physical and programmatic methods of maximizing energy savings and our workload optimized systems that provide unique processing capabilities suited to specific workload characteristics. So let’s get started on virtualization.
• #16: A dynamic infrastructure - is highly optimized to achieve more with less Notes: In today’s economy, many businesses are faced with the challenge of “taking cost out” of their infrastructure while continuing to deliver new, innovative business services - basically they need to “do more with less” .There are several key initiatives that an organization can take to begin to optimize their infrastructure, addressing both operating expense and capital expense. For many businesses it’s not just a question of lowering costs its also important to strike the right balance between Op-ex and Cap-Ex – and increasing overall flexibility in the process. For many clients, consolidating and addressing the energy efficiency of their infrastructure through virtualization has allowed them to better utilize IT resources to help reduce capital expense of hardware, software and facilities. Reducing operating expense can be addressed thru greater standardization and automation of your business and IT infrastructure with common software stacks, operational policies, and improved service management. The farther you can drive standardization the more you reduce operating expense – like labor and downtime – which is far and away the fastest growing piece of the IT spend. The other way to address cost is to align the right technology systems to the right workloads, ensuring that you are getting the best performance out of each application – and the underlying technology that supports it. A Workload Optimized Approach defines how we align technology to business requirements in order to deliver infrastructure optimized for specific workloads, tasks, or services in ways that enable improved performance, scale and efficiency. Let’s look at each of these in a bit more detail.
• #17: Extend the life through consolidation and virtualization This is an overview of the kinds of savings clients see from server and storage virtualization, and we’ve also added the end user virtualization at the bottom of this chart. So those are the kinds of significant improvements in floor space, hardware costs, maintenance costs, and support costs that clients will see in the server, storage, and workstation environments.
• #20: When someone in the IT world hears the term “virtualization,” what are they likely to associate with it? Probably the use of virtualization to facilitate physical consolidation of IT resources – most often, servers and storage. That view is represented on the left third of this slide. And clearly, consolidating and virtualizing enables real benefits: reduce capital expenses, greater utilization, and major reductions in data center space. But, is consolidating and virtualizing physical resource the whole story? If you stop after completing a consolidation project, are you really getting all the benefits possible? The short answer is “no, you’re leaving significant potential benefits on the table.” So, how do you achieve those additional benefits? One way is through the management and automation of virtualized resources. By managing virtualized resources with a common toolset, and by automating key management processes associated with virtualized resources (such as provisioning), you can achieve operational cost reductions, increased adaptability through fast provisioning, and simpler infrastructure management by leveraging standardization. This is captured in the middle third of this slide. Additionally, if you then incorporate your virtualization management into an integrated, infrastructure-wide service management strategy and toolset, you stand to gain benefits of optimization. Imagine a virtualized infrastructure that, in concert with your service management toolset, enables automatic deployment of new services requests – freeing your staff from manual provisioning! Wouldn’t it be useful to have an infrastructure that can detect changes in demand and automatically respond, without tying up your staff or impacting your users or clients? Or, what about having an IT infrastructure that is aligned to – and in support of – your business’s needs and goals? And moreover, that those business needs are codified in policies which drive the operation and management of the infrastructure? IBM has the technologies, skills and experience today to partner with you to define a virtualization strategy that fits your needs, and then realize it in your data center, so that you can gain the maximum benefit possible from infrastructure wide virtualization with integrated service management. Now, let’s take a look at the client areas addressed by IBM virtualization solutions. Then, in following charts, we’ll talk more specifically about the capabilities IBM can leverage to make our virtualization solutions work for you.
• #21: The scale and flexibility enabled by virtual system pools can provide essential building blocks for a cloud computing architecture. In most data centers today there is a plethora of systems with varying degrees of standardization and best practices. In order to simplify the management and create a repeatable, predictable infrastructure, you need to create standard building blocks. you can also start this process by applying best practice patterns to the systems that you already have. These patterns define the best practice virtualization configurations depending on the systems and the way you want to use them. The next step is to capture and catalog the images (operating systems, middleware, and software) used in the datacenter and standardize on those building blocks as well thru virtual appliance definition. This will result in simplified deployments and image management. -- Good image management is key to a successful virtualization environment. Using VMControl Image Management, virtual machine images are stored in an image library and can be captured and cloned. Virtual runtime requirements can be customized for the images, and virtual appliances simply deployed. The third step involves pooling your standardized virtual configurations into ensembles where you can manage many systems as if they were one. Multiple physical and virtual systems managed as a single entity form a virtual system pool. The manager of the pool automates workload placement and aggregates monitoring and event management from the physical and virtual resources in the pool. This logically flows into workload management according to the service level agreements defined by the data center. Service Management offerings, such as Tivoli Service Automation Management (TSAM) will help you define and manage those services in tight integration with Systems Director and VMControl. Virtual system pools are ideal building blocks for a cloud computing architecture. Providing flexible and scalable resources in a service management deployment. Pools allow for unique levels of elastic scaling, especially when coupled with the capabilities of scale up servers, such as our IBM Power Systems.
• #22: Virtualization and service delivery have evolved over the years. As our customers started using virtualization to enhance their systems, technologies in each individual system enabled virtualization in that system. Mainframe and Power Systems partitioning capabilities are examples of this kind of virtualization. x86 systems leverage technologies such as VMware, Hyper-V and KVM. As we help our customers take the next step in the evolution, we are providing single system simplicity management for pools of system resources.
• #23: Key Points: As you think about progressing towards a dynamic virtual infrastructure, one with server and other types of consolidation, advanced virtual resource pools and Service Management, you will want to ensure that you have solutions that address your current infrastructure. Few organizations can afford to start over, or rip and replace to use the latest technologies. Instead the operative phrase is building on top of your existing infrastructure, gradually retiring aging assets and integrating new assets into your management framework. That is what IBM’s broad product line can do. So that means that you need virtualization to integrate seamlessly into your mainframe environment, your Unix environment, your Windows environment and your Linux environment. IBM can help you with virtualizing part, or all of your existing infrastructure and consolidating not only onto similar or “like” servers, but migrating the workload to the platform that makes the best solution. And we offer our virtualization solutions so that you can leverage the best of third-party technologies, like VMware, Microsoft Hyper-V or Xen virtualization. So for example, our management portfolio, both Platform Management with IBM Systems Director and our Tivoli Service Management suite can help you unify virtualization across hypervisor environments. So you can get a common view of virtual resources regardless of what server or OSes they are being used with. You can visualize, monitor, track and bill for ALL virtual resources from one integrated topology. This facilitates a broader and deeper virtualization implementation and helps you get more value from the technology that you would otherwise get. IBM can help you not only virtualize your servers, but we can facilitate your storage virtualization need with leading-edge products that have literally thousands of installations and working through third-party virtualization technologies such as VMware and Citrix, we can offer you a comprehensive desktop virtualization solution. This solution can consist of integrated and tested hardware and software products for experienced users with sufficient implementation staff, or we can deliver desktop virtualization through a service which can help plan, design, migrate, implement and support your deployment. Important to note that we can not only consolidate similar applications onto larger systems (for example, multiple instances of a database or web server) but also actually collapse whole layers of the physical infrastructure itself—virtualizing the network as well as the servers. This is enabled by the fact that the virtualization technologies in our systems is mature, stable and secure enough to allow you to confidently deploy mixed workloads onto a single system (batch plus transactional; development and production; web facing and core data). This is not something that you can do on Sun, HP We also have solutions for application virtualization as part of our WebSphere family. WebSphere Virtual Enterprise provides application infrastructure virtualization capabilities that lower operational and energy costs required to create, run, and manage your enterprise applications and SOA environment. It increases flexibility and agility to ensure business process integrity, improve service and application performance, and better manage application health. With the incredible breadth in our portfolio, I can see where some may think that IBM offers so many solutions to choose from that it can be intimidating with figuring out which one to use for which problem. For those of you that are golf enthusiasts, we would offer this analogy: IBM has a bag of golf clubs and we can work with each client to select the one for the particular shots they need to make. That is why we offer assessment services to assist with this determination. Other vendors take a different approach: They have a 9 iron and they declare that every shot matches it. Our philosophy is that the end game while the goals may be clear, the roadmap is unique to each client’s situation. One answer can not possible fit every situation. The best solution is the right solution and IBM not only gives you the ability to “right-size” your solution, but we offer help in finding the best match for each situation. We believe that this is a proposition that no-one company other than IBM can offer. For many you, virtualization is a new technology and you will want to ensure that you can implement it in an optimal way without having to add new staff and with minimal risk to your current application environment. Let’s see the best practices IBM have developed through 1000s of client engagement to assist you with your infrastructure.
• #25: Extend the life with improved data center energy efficiency We’ll start to deep dive into the data center itself. This is a description of a typical landscape of what the energy profile looks like across a data center. It shows that the blue bar, which represents the IT technology, the servers and storage, the networking gear, typically represents, in a typical data center, 30% to 40% of the total energy use in the data center. It also highlights that the green bars, the data center infrastructure, the cooling systems, the electrical systems, represent typically 60% to 70% of the total energy used in the data center. And this chart really highlights that there are three major things to optimize the data center environment that the client needs to look at. They need to look at optimizing their technology environments, using the most energy-efficient technology in the most efficient way. They need to look at their data center infrastructure, again, using some of the most energy-efficient technology to power and cool the data center, again, in the most efficient way. And then the third building block, in terms of optimizing the data center, is having some 7x24 information systems management tools to let you manage the efficiency of the technology and the efficiency of the data center on an ongoing basis. Let’s look at ways to save costs with each of these areas.
• #28: The key to building a dynamic infrastructure that can effectively deliver cloud computing is based on taking key steps: Define a cloud strategy & roadmap for your organization. Know and understand which IT Services you deliver today could be more effective and efficient with cloud computing Condition your infrastructure to be able to deliver cloud computing services - this involves virtualizing the environment – servers, storage, network, applications and the client environment, automate your service management, and build a service orientation or service focus on the delivery of the resources that can be delivered through an easy to use and access service catalog Start with a pilot, especially if you don’t have an experience with leveraging cloud computing. Once you’re comfortable with how cloud computing can help, extend and evolve the delivery model to include other services, and use trusted cloud partners like IBM to also help support the infrastructure, platforms and software. +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Plan & Prepare As customers take steps to plan for cloud, there are two paths that can be taken concurrently. One is conditioning their infrastructure, and the other is creating a strategy Conditioning the infrastructure Virtualization, standardization & automation are important elements to consider when preparing an infrastructure to become more dynamic and ready for cloud. Utilize the advanced virtualization capabilities of your server systems such as PowerVM Pool your storage with SAN Volume Controller Automate processes like provisioning with Tivoli Provisioning Manager Implement accounting solutions such as Tivoli Usage and Accounting Manager Define a cloud strategy & roadmap Without a strategy, Cloud computing can be a threat to the CIO and the IT team Reduced control of IT services delivered over the Internet Perceived cost gap between a cloud service delivered by providers outside of the IT team and “traditional” services delivered by IT With a strategy, Cloud computing is a huge opportunity for the CIO Lower costs, more responsive IT, optimized delivery Greater range of services and capabilities Greater visibility in billing / chargeback to LOBs Better control of the users’ systems, desktops, and services access Choose an initial project Test & Deploy an initial cloud project Start with a low risk workload such as test & development Prep & install infrastructure Standardize chosen systems and applications Create flexible systems with advanced IBM virtualization technology and service management Add self service, request-driven provisioning capability Extend & Evolve your infrastructure with cloud services to supplement your existing data center capabilities. Some examples are: Infrastructure as a Service (IaaS) -- IBM Computing on Demand offering Platform as a Service (PaaS) -- LotusLive for collaboration Software as a Service (SaaS) -- Rational AppScan Many analysts see the virtualization solutions we’ve discussed in this presentation as key enablers for cloud. We have been working with North Carolina State to help them build their virtual computing lab. With the virtual computing lab, NC State can provide technology to even the most impoverished school districts. The open source solution used by the school is now an Apache incubator project. RC2 is a research cloud in IBM that we’ve been using to provide 24x7 access to a self service portal for our researchers around the world. Using the web interface, a researcher can either request a virtual system real time, or reserve one for future use. The image needed for the test is automatically built when the system is provisioned, and when the researcher is finished, the resources used by the virtual system are released back into the pool. We can help take the mystery out of cloud computing. .
• #29: Optimizing business workloads with the delivery option that fits, including cloud computing. Having a dynamic infrastructure also means leveraging the most optimal resources to provide the services to the customer quickly and cost effectively. This means take a blended view when determining the most appropriate sourcing option for delivering the service. To provide the greatest degree of flexibility cloud computing may be the right option – get the service you need to the end user for the period of time their using it, and then get it, or give it back. This applies to both acquiring resources from a cloud, and delivering resources via a cloud model. From an organizational perspective, cloud computing delivers services for consumer and business needs in a simplified way, providing unbounded scale and differentiated quality of service to foster rapid innovation and decision making. This can help address the explosion of information and respond to business requirements while reducing capital and operational costs associated with delivery of services. IBM provides cloud solutions for many aspects of IT and brings them to you in the format that works best for you. Smart Business on the IBM Cloud – workload based services available from IBM’s cloud. Smart Business Cloud – private cloud services behind your firewall. Smart Business Systems – pre-integrated, purpose built, ready to use.
• #30: IBM Portfolio of Integrated Cloud offerings. The way this plays out in the portfolio shows the three types that I've just described in the rows labeled: 1) Smart Business on the IBM Cloud, 2) Smart Business Cloud and 3) Smart Business Systems. June 16 we announce(d): Previews of two upcoming Smart Business Services on the IBM Cloud (Development & Test as well as Desktop) A new Smart Business Cloud – Smart Business Desktop Cloud. IBM CloudBurst – an integrated service delivery platform, including pre-built hardware, software and services. IBM CloudBurst includes a self‑service portal and a services catalogue enabling our clients to rapidly establish a private cloud – in some instances the client can have a cloud up and running within hours of installation of IBM CloudBurst. We also enhanced our Smart Business Test Cloud service, originally announced in February (COACHING POINT: It was announced then as an implementation service – we have enhanced the capabilities based on learning from early customer engagements and are bringing the name into alignment with our Smart Business branding). The rest of the chart with yellow check marks includes things that we previously announced. We are not renaming everything in our cloud portfolio featured on this chart as we will transition the names as enhancements are made in future announcements. Smart business platform for SMB was announced a couple of weeks ago which is preintegrated hardware, software and services that also has both capabilities on the IBM Cloud, as well as private Cloud capabilities associated with it.
• #31: Secure Appliance Basis for security throughout virtual image lifecycle (physical security of box enforced by tamper switch) Turnkey system for WAS management Unmatched WAS virtualization management Dispensing/maintenance of WAS virtual images into a cloud computing environment Creation/maintenance of patterns/topologies based on single image Management of licenses in accordance w/ IBM policy Health management of dispensed images Application versioning inside dispensed images Management of the operating system and middleware together
• #33: Today, information has become the lifeline for business sustainability and competitive advantage. Firms of all size are searching for practical ways to create business value – to get their arms around information, correlate insights and to confidently predict outcomes and take action. For CIOs, the information era poses unique challenges: how to cost-effectively store, archive and retrieve a virtual explosion of new information, how to protect and secure that information, meet compliance requirements and make it accessible for business insight, where and when it’s needed. Without a smarter information infrastructure, organizations can find themselves facing higher operational costs and greater exposure to business risks. To help our clients, IBM is addressing these challenges with Information Infrastructure solutions for efficiently and effectively managing information growth, s mitigating business and costs by supporting compliance, and enabling continuous access to information in support business requirements. All this is done via a dynamic infrastructure that efficiently ecures, protects and optimizes access to information.
• #34: 9/29 How can I reduce IT costs and risks while improving information availability? IBM Information Infrastructure enhancements can help improve information availability and security, while controlling costs. This is a big claim, I know, but we’re backing it up with significant announcements. Three key technology announcements are: Storage Virtualization Solid-state Storage and Encryption Today’s announcements improve clients’ ability to manage data growth and new workloads on a tight budget, without putting information assets at risk. Infrastructure projects are the best investments during recessionary times because they can significantly reduce operating expenses. Financing, which is still available from IBM, can help clients use a portion of the expected downstream benefits to pay for infrastructure projects. Now, let’s take a look at some of the announcements.
• #35: In a down economy, IT Technical Managers have less buying discretion. Projects with tangible benefits and rapid ROI are selected, and others put on hold. IBM is a leader in the technologies that matter today, as organizations seek to recover and adjust to new business models. Storage Virtualization Data Deduplication Storage Management Continuous Data Protection Encryption and Security Management Next Generation Storage Solid-state Architecture Mainframe Storage Archiving Business Intelligence
• #37: Businesses are under increasing pressure to reduce cost, improve service, and manage risk. Business and IT assets are underutilized and difficult to manage; operational cost and complexity are reaching unsustainable and uncompetitive levels. To respond to these pressures effectively, businesses are looking to smarter and more dynamic technologies, such as virtualization, software-as-a-service, cloud, and service-oriented architecture to drive business innovation, efficiency, and responsiveness. However, with these new technologies also come requirements for systems and service management. What makes IBM unique in the data center is our ability to integrate our systems management, service management and energy management capabilities to truly transform the data center. This means that our hardware platforms and native management capabilities are integrated with our service management platform which allows for higher automation in the data center, as well as better energy management. IBM offers industry leading systems and storage, with advanced management of both physical and virtual environments. We’ve added self service capabilities, and request driven provisioning to enable greater automation, without the need for operator intervention. And our service management platform offers a common set of capabilities including visualization, navigation, security, data model and reporting, and process automation platform. When you put all this together, we are now able to highly automate the data center and provide new delivery models, such as public and private clouds, and appliances….virtually eliminating the need for manual intervention and improving productivity in the data center. Transition: Now lets take a look at service lifecycle management….
• #38: In summary, today, IBM announced new offerings for service management designed to address the challenges of automating service delivery within data center, integrating management and processes across IT boundaries and delivering industry specific services across converging business and IT infrastructures. These new and enhanced service management offerings are reflected here under the three key focus areas of Data Center, Service Lifecycle and Industry Solutions. Note the new Services offerings are also reflected here, and have been categorized within their related focus area – for example Remote Managed Infrastructure Services are reflected along side our other Data Center offerings, and IT service Strategy along side other Service Lifecycle Management offerings.
• #40: So in summary….in order to help the organization meet the new demands of a Smarter Planet, we must create a dynamic infrastructure that leverages a smarter IT. And in order to do this, we must look at it from the end user or businesses perspective. They don’t require technology… they require workload optimized solutions that leverage technology to deliver the solution efficiently and quickly, are easy to access, and meet the time and money constraints that always exist. IBM is your partner in working together to build a better place for all of us to live, work and play. And as we work together to build and leverage a Smarter Planet, IBM is positioned to help you, our customer, get the most out of your resources and ours in support of your business goals.
• #41: In IBM’s view, there are seven interrelated initiatives to evaluate and consider on the journey to a dynamic infrastructure: • Service Management: Siloed management capabilities inhibit the flow of information required to manage a dynamic infrastructure. Service management provides the visibility, control and automation that helps organizations manage across all business and IT assets to deliver higher value services. • Asset Management: Achieving the highest “return on assets” is a balancing act. Asset managers must optimize four major drivers: achieve highest reliability and lowest cost, within a compliance framework and with limited resource. For example, electric power utilities are moving to “smart meters” – devices that are part of an intelligent two-way communication network between customers on the grid and the central office. These new meters send readings every 15 minutes, allowing customers to control energy usage and enabling the power company to make smart business decisions with respect to newer power plant construction and the reduction of environmental impacts. • Virtualization: Consolidating resources through virtualization can increase utilization far beyond the inefficient 10-15% utilization often seen in data centers today. Advances in the technology, along with higher degrees of automation, offer more opportunities for consolidation than ever before. Getting to a highly virtualized and shared infrastructure provides a foundation for automated and rapid service delivery with the benefits of economies of scale. • Energy Efficiency: Optimizing the energy efficiency of the business and IT infrastructure can demonstrate the value in “green.” To meet the needs of the business, a holistic approach is required that encompasses energy management, virtualization, IT and data center facility services, and server and storage products that are designed to be green. • Business Resiliency: Maintaining continuous business operations while rapidly adapting and responding to risks and opportunities has elevated to the C-level suite the need to ensure a resilient and recoverable business environment. An infrastructure that has agility, is resilient to risks, allows the business to respond quickly to demands and meets compliance requirements, ensures not only that the business can continue operations, but helps the Business and IT infrastructure become more integrated and responsive to business needs. • Security: Globalization has required organizations to take an end-to-end, business-driven, approach to security, compliance and risk management in alignment with an IT governance framework. The vast interconnectivity of resources brings access and collaboration, but also opens additional risks and exposures to loss and theft. An integrated security strategy within a dynamic infrastructure can empower organizations to monitor and quantify security risks to better understand threats and vulnerabilities in terms of business impact, to better respond to security events with security controls that optimize business results, and to better quantify and prioritize their security investments. • Information Infrastructure: Today, information has become the lifeline for business sustainability, and firms of all size are searching for practical ways to manage and utilize their information. Without a cohesive information management strategy, organizations will find themselves facing higher IT operational costs and greater exposure to business risk. A dynamic infrastructure helps address the specific challenges of ensuring information availability, securing information, addressing compliance regulations, and efficiently retaining information throughout its lifecycle.
• #44: Customize the next steps page to align with your particular customer situation and actions needed.