Accelerating Time to Market with Next Generation Cloud Platforms by Michael McCarthy, VP of IBM

Editor's Notes

• #3: We asked the respondents regarding their plans around the organization's level of cloud technology adoption today and the expected level in 3 years. 72% of the respondents were either piloting, or had adopted or substantially implemented cloud in their organization, and this number is expected to increase to more than 90% in 3 years with a rate of growth touching 215% for organizations which intend to substantially implement cloud. Further, forecasts around cloud predict the cloud market to reach up to $241bn by 2020.
• #4: Main Point: Businesses today are under tremendous pressure driven by shifts like an increasingly mobile workforce and the need for greater productivity. Yet, companies are being asked to accommodate these increased demands without an increase in resources. Three key market forces are causing a re-evaluation of business technology: Expectations: Escalating customer, employee and partner expectations around self-service, personalization, access to real time information, and service innovation 52% CAGR growth in self – service channels. TowerGroup estimates that the number of active users of mobile banking in the United States will grow from 10 million in 2009 to over 53 million in 2013 . http://www.digitaltransactions.net/news/story/2950 <<Additional Stats:>> 5B mobile phones (19% smart phones) 20M tablets (215M by 2015) 1T Connected devices Over half of the world's 6.5 billion people now use  mobile technology , and more than 60 percent of mobile phone users live in developing countries 2) Demands: An exponential increase in data, users, speed requirements, and the number and variety of connected devices There has been an over 10X growth in digital data from 2007 to 2011. 2B internet users - 28.7% global penetration (over half are 18-26) 3) Competition: The imperative to deliver higher value products and services more rapidly than ever before in order to remain competitive in a crowded, global market Source: IDC http://www.semantic-web.at/index.php?id=1&subid=57&action=resource&item=1741 Only 20% of companies that were on the year 2000’s list of largest companies are still on that list today. 60% of total workers are “mobile knowledge workers ” in Brazil, Germany, India and Japan . In the United States that number is 70% . 1.9B people born since Netscape went public 464M people have college degree (6.7% - Harvard and the Asian Development Bank; 6.92B total population) 1 trillion Economics of computing: One trillion devices connected to the Internet by 2013.
• #5: Main point: However, too often cloud’s vast potential is unmet because cloud is being used primarily to make IT easier, cheaper and faster. While these goals are hard to argue with, those results have become are a commodity. Cloud is not just about rethinking IT; it is also about reinventing the business. Consolidation, data center efficiency and lower costs are just the start. Leading companies are unlocking the deeper potential of cloud as a way to manage not just their IT but also their businesses. They’re discovering how cloud can help them create new marketplaces, smarter business services and profitable new revenue streams. Providing these services to innovators can profoundly change the way a company is experienced by customers, partners and society.
• #7: Main Point: While business and IT come to cloud for different reasons and with different goals, both roles are unified in their view of cloud’s overall value: the ability to deliver IT without boundaries, improve speed and dexterity, and create new business value. These are the kinds of value that bring participants together regardless of role. They speak to the marketplace drivers mentioned at the beginning of increasing expectations, demands, and competition. And they reflect the need to both rethink IT and reinvent the business.
• #9: Which we provide in a comprehensive smartcloud platform (foundation, managed services, solutions) all build on an client-led open standards (standard chart)
• #10: But IBM sees three significant challenges in the third-party cloud marketplace today. First, many technology companies position cloud computing as an answer to all IT woes. The client presents a problem in its server environment and the answer is "cloud." IBM disagrees with this assessment. While cloud technologies are playing an ever-more-important role in enterprise IT environments, not all workloads are suitable for cloud migration. Second, too many cloud providers offers "one size fits all" deployment models. Again, IBM disagrees with this approach. Many organizations will need a mix of public, private and hybrid clouds to meet their business needs—along with a host of hardware, software, and services offerings to support those clouds. Third, in survey after survey IT professionals cite loss of control as a barrier to using third-party partners for cloud architecture and management. IBM empathizes with this position. Too many cloud providers put IT professionals in the unenviable position of surrendering control if they wish to take advantage of cloud capabilities and cost benefits.
• #11: So this means that you are no longer confined to the four walls of your data center. There are numerous sourcing options available. So in the near future, you ’ll have some work in your data center; some completely outsourced in a traditional data center; some in a private cloud; and additional work will be in a public cloud. But all of your IT will be interconnected and feeding into one another in a hybrid environment. The key to being an effective IT manager is how you integrate and aggregate across these environments to achieve maximum business benefits. This will necessitate an evolution in the role of the IT organization. You will need to understand the architecture, levels of control and standards. Think of this as SOA for the composition of services. And really, the forward thinkers in this new era of IT – and probably the winners – will use this sourcing complexity to enable new business and industry models, not just cut capital expenses. [Switch Image]
• #12: IBM SmartCloud™ Services have been designed to meet client needs for tailored cloud architectures and management services replete with near-total reliability, security and client control. As you can see on this slide, the IBM SmartCloud Services delivery platform allows clients to choose among a number of key enterprise capabilities to consume both infrastructure as a service and platform as a services capabilities. IBM offers two sets of SmartCloud Services: SmartCloud Infrastructure Services and SmartCloud Application Services.
• #13: IBM PULSE 2012 File Name Here.ppt I think it means that the boundaries of IT have changed. We ’re entering a new paradigm where the infrastructure is being abstracted, making services available anytime, anywhere, and from any device. So really, the location of the infrastructure becomes irrelevant. And this is happening because there is an ‘industrialization’ or standardization of services taking place that enables scale and the application of best practices in a repeatable way. You might hear this called “Cloud computing”. Now, in order to keep up, we need to evolve IT service delivery as well. Organizations will have to source business and IT services from outside of their enterprise -- bringing a new meaning to the concept of a “business without limits”. This means that organizations will need to understand the special considerations of service delivery in this new environment  and make the right choices, based on tradeoffs of risk, reward, control, and so on. [Switch Image] 07/06/12 17:06 07/06/12
• #14: IBM PULSE 2012 File Name Here.ppt So, the next generation of services will be driven by new application models that are “born on the cloud” – such as massively scalable analytics tools which will free employees to be more productive, more expert, and more specialized. We ’ll also see enterprises transform traditional services such as ERP and HR into standardized and optimized services  supported by new, resilient cloud infrastructures. And the sourcing of services will be “smart” and based on analytics  meaning, the resources in your IT Supply Chain will reside where they make the most sense for that workload. Even maintenance services – the oldest form of IT services there is -- will morph from recovery to “smart” prediction and prevention. 07/06/12 17:06 07/06/12
• #16: Now, as we developed our cloud offerings and capabilities, we knew that we had to think through the issues that you and other clients will face. So we built a cloud platform that responds to the complex challenges associated with service management, security, governance, and other enterprise considerations. We built a platform that supports the unique requirements of our clients. Based on our proven Cloud Reference Architecture, the IBM SmartCloud provides a platform for running “everything as a service”… Whether it is providing you a base infrastructure or running your key business processes. The IBM SmartCloud is built to maximize service delivery and economics through choices relative to management, support and deployment, security and isolation, availability and performance, technology platform and payment and billings – you, the client, have unprecedented levels of definition to support the variety of workloads that you will design, migrate and deploy on the cloud. The initial offerings were centered on the Infrastructure as a Service layer. Enterprise – With rapid access via the internet – is ideal for developing and deploying new application designs. This environment provides instant access to standard server configurations, and a catalog of IBM and partner software. In addition it provides an hourly pay-per-use model and the most advanced administrative functions in the industry. Enterprise + - Is a true production cloud for our clients ’ most critical applications whether it is the migration of complex ERP applications or running higher availability, data intensive workloads. The Enterprise+ platform provides for a fully managed cloud deployment model ensuring enterprise class service delivery. It provides the SLA and levels of isolation needed from other cloud environments. Now, an interesting note is that we ’re using the Enterprise+ platform internally to expand our hosting services capabilities. We will begin transitioning our legacy eBusiness Hosting and Applications on Demand lines to Enterprise+ because we also believe that this platform will provide us with delivery benefits and enhanced features for our clients.
• #19: We ’re excited about this offering and this that it will have unique benefits for lots of different job roles. Our Application Services offering is going to enhance the business value end-to-end from development to deployment to delivery and even with integration with legacy or other cloud environments. For CIOs, I think you ’ll like the enterprise–grade security, open standards, cross-platform support with no vendor lock-in, and a comprehensive set of application infrastructure and managed services to enable development and deployment of applications to the cloud. In particular, CIOs will want to deploy these capabilities to transform some of their key enterprise applications, like SAP, by moving them to the cloud. This will provide the combination of attributes sought by enterprises: the economies and agility of cloud while still retaining the ability to customize key applications that helps drive differentiation for the organization. Application Developer Managers will like the flexible and scalable application development environment that allows clients to quickly begin programming in the cloud, leveraging a suite of hosted application-development tools, to develop, deploy, manage and integrate releases of application coding, all without any up-front investment. Application / Operations Managers will appreciate the reduction in application deployment costs, while also accelerating the time to value and increasing the quality and consistency of these applications. Finally, ISVs will leverage these platform services to move their applications to the cloud, delivered in a software as a service model. This shift will help ISVs change their business model, accessing new customers and markets while changing the economics of their go-to-market model.
• #21: So, to close on our service delivery platform, I want to highlight that our basis of differentiation in the cloud marketplace is rooted in our development and deployment of a single IBM-wide platform, which has been name IBM SmartCloud. And on top of the infrastructure and platform layers, we’ll be able to provide a variety of managed services from both IBM and our ecosystem of partners. The SmartCloud platform will host industry solutions that IBM Software Group is building out around Smarter Commerce and Social Business as well as additional Software as a Service capabilities from our acquisition companies. Finally, the beauty of the IBM SmartCloud platform is that it can either be delivered as a managed service or clients can take the architectural design and we can build a private cloud for them.
• #24: Now, we know that your legacy environments are not going away, so setting up a hybrid environment is fundamental. But you must manage, migrate and integrate workload and applications. And we have expert migration services to eliminate the risk of moving critical applications and workloads to the SmartCloud. We start by verifying clients’ workloads and profiling them by migration complexity. Many clients have tried migrating simple workloads such as email and web applications to cloud. But the question becomes “how can we successfully migrate not only easy workloads, but also a complex workload,” to a cloud? So we use an IBM Research-developed analytics tool to help produce a more detailed, quantitative analysis of both business applications and infrastructure components. And using this tool, we can provide clients with the detailed information needed to make educated decisions about the most suitable workloads to migrate to a cloud. We can help organizations reduce their analysis time by up to 66%. And ultimately, applying our methods and tools can set clients up for a faster implementation of cloud technology to reduce costs and improve service delivery. And we’re leveraging these same migration tools in our own business as we transition our hosting business to the SmartCloud platform. [Switch Image]