Tapping Current IT Trends to Boost Company Performance
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1) Piotr Pietrzak from IBM presented at a cloud computing roadshow on tapping current IT trends to boost company performance. 2) He discussed four emerging technologies - cognitive computing, big/fast data and analytics, exascale computing, and nano systems - that IBM is leading and will change the world. 3) Pietrzak argued we are entering a new "smart systems era" of computing driven by continual innovation and emphasized assessing current needs around data, processes, infrastructure flexibility and efficiency to determine the right path forward.
Tapping Current IT Trends to Boost Company Performance
- 1. Tapping Current IT Trends to Boost Company Performance Piotr Pietrzak IDC Cloud Computing Roadshow 2012 Hotel Marriott, Warsaw, Poland, October 16, 2012 e: piotr.pietrzak@pl.ibm.com t: @piotrpietrzak
- 2. 2 © 2012 IBM Corporation
- 3. Evolu&on of „tech” in &me • Inter- Galactic • Physical / Communications Reach • 1902 • ~2015 • Galactic Electric Typewriter Voyager I will leave c al • › • Physi • ~1800 • 1927 Solar system • › • Solar First Typewriter Television • 1969 • 2151 • • 2063 Enterprise System • 1896 Man Reaches 1st Warp NX-01 • 405BC Radio the Moon • ~1960 Drive Heliograph • 1837 • • Planetary Morse’s Telephone • • 196BC • 2000 • 1792 Telegraph • Digital International Rosetta Stone • ~1041 Semaphores • Inter- Divide• Space Station Pi Sheng Continental Printing Press • ~1450 1989 The WEB • Digital • 3000BC • 2000BC Gutenberg Papyrus Alphabetic Writing Printing Press • 1969 • 1987Communities • Continental Internet MMORPG • 2400BC • 1991 • 2006 Courier System • 1943 3D MMORPG Second Life • Regional • 6000BC-4000BC Colossus • 1981 • Industrial IBM PC Symbolic • Industrialization • Information Age Revolution Writing • Local and • Egyptian Dynasties • Roman Empire • Middle Ages • Renaissance and Sub- Digital Communities Urbanization Urbanization • 3500BC • 2000BC • 1000BC • 0 • 500 • 1000 • 1500 • 1700 • 1800 • 1850 • 1900 • 1950 • 2000 • Engineered Roads • 770 • 1672 • 1804 • 1903 • 3500BC Iron Horseshoes Steam car Steam Airplane Wheeled Carts • 2000BC Locomotive & River Boats Horses Tamed • 1947 • 1783 • 1908 Supersonic Hot Air Automobile Flight Balloon Assembly Line • 1926 • 1967 Liquid Concorde • Exploration and Exploitation Fueled by Ocean Going Ships Rocket • W oparciu o : http://en.wikipedia.org/wiki/List_of_timelines 3 © 2012 IBM Corporation
- 4. Our Industry has been driven by Continual Improvement and Disruptive Innovation ! $1000 Buys: Computations per second 1E+12 Integrated Circuit 1E+9 Discrete Transistor 1E+6 Vacuum Tube Electro- 1E+3 Mechanical Mechanical 1E+0 1E-3 1E-5 1900 1920 1940 1960 1980 2000 2020 Source: Kurzweil 1999 – Moravec 1998 4 © 2012 IBM Corporation
- 5. 4 Technologies that Will Change the World – and IBM Will Lead ! Cognitive Computing Compute+ Learn § “Synapse” devices Natural Language+ Program Analytics Deep Q&A Computers BIG/Fast § Data + analytics 00 X à 1,000,0 (zettabytes + 1,000 lanet milli / microseconds Big Data Smarter P s + People) f Thing (Internet o Exascale (Datacenter-in-a-box) § Massive parallelism 1000X § Flexible system optimization Workload Optimized Systems Nano Systems (Systems-on-a-chip) § Photonics Nano 1B Transistors 1000X 1T Devices § DNA Transistor Devices Power7 chip 5 © 2012 IBM Corporation
- 6. Exascale Computing A billion calculations in a billionth of a second Overall Performance = 1000X Performance / watt = 135X 1 PetaFlop Performance / $ = 1000X 72 BG/P Racks Footprint = <2% Referenced to one-petaflop system CPU Silicon Phase Photonics Change Memory 3D Software The Next Ten Years 1 PetaFlop = 1/3 rack 2009 2019 6 © 2012 IBM Corporation
- 7. We Are Entering a New Era Smart Systems Era Computing Computer Intelligence Era Tabulating Era Time 7 © 2012 IBM Corporation
- 8. For us to make sense of this new world, we must consider four critical questions “Data is exploding “New business & “My infrastructure is “Our resources and it’s in silos” process demands inflexible and are limited” ” costly” • I Need Insight • I Need to • I need to • I Need Work Smart respond quickly Efficiency • How can we take • How can we • How do we drive advantage of the work smarter • How do we create greater efficiencies, wealth of supported by an infrastructure compete more information flexible and that drives down effectively, and available in real dynamic cost, is intelligent respond more time from a processes and secure, and is quickly by taking multitude of modeled for the just as dynamic as action now on sources to make new way people today’s business energy, the more intelligent buy, live & work? climate ? environment, and choices? sustainability? • New • Smart • Green & • Dynamic Intelligence • Work Infrastructure Beyond 8 © 2012 IBM Corporation
- 9. New technologies and delivery models will usher in a new era of computing Virtualization Converged Networking Cloud Management Virtual machine Converged network Cloud computing densities continue devices become the is a new consumption to rise. Virtualization dominate player. and delivery model management is Network optimization that leverages becoming the critical software needs to Virtualization, factor for virtualization keep pace with the Automation, and success. hardware advancements. Standardization. Smart Devices Analytics & Big Data Workload Optimized Smart devices will Explosion of Maintaining grow 4x from 2009 embedded devices, a price performance to 2014. Server mobile, and social curve requires hardware infrastructure will networking creates and software integration. be needed to new opportunities Optimizing workloads support resulting for Web and data is another form of edge/presentation, analytics. This need integration. application, and spans multiple industries database such as Finance, workloads. Healthcare, and Manufacturing. 9
- 10. Seven Basic Pillars to look into Provide visibility, control and automation • Service Management across all the business and IT assets to deliver higher value services. Maximizing the value of critical business • Asset Management and IT assets over their lifecycle with industry tailored asset management solutions. Leadership virtualization and consolidation • Virtualization solutions that reduce cost, improve asset utilization, and speed provisioning of new services. • Address energy, environment, and • Energy Efficiency sustainability challenges and opportunities across your business and IT infrastructure. Maintaining continuous business and IT • Business Resiliency operations while rapidly adapting and responding to risks and opportunities. End to end industry customized • Security governance, risk management and compliance solutions. Helping businesses achieve information • Information Infrastructure compliance, availability, retention, and security objectives. 10 © 2012 IBM Corporation
- 11. The impact of technology is extending to driving greater business value • An Evolu)on of Informa)on Technology § Changing the economics of IT • Internal IT • Efficiencies Focused § Automa)ng service delivery § Radically exploi)ng standardiza)on § Rapidly deploying new capabili)es • Business • An Enabler of Business Transforma)on and Process § Crea)ng new business models Focused • Transforma)on § Enabling speed and innova)on § Re-‐engineering business processes § Suppor)ng new levels of collabora)on 11 • 11 © 2012 IBM Corporation
- 12. Technology enables business imperatives and supports innovation … it can : § Improves asset utilization and lowers TCO § Increases responsiveness § Provides open, elastic IT environments § Optimizes IT investments & reduces fixed costs § Supports globalization and globally available resources § Enables real-time data streams and information sharing • 1212 • Cloud Computing © 2012 IBM Corporation • 10/16/12
- 13. Current Technology Delivers both IT and Business Benefits • Higher utilization • Virtualization • Economy of scale benefits • Lower Cost • Lower capital expenditures • Lower operating expense • Faster cycle times • Automation • Lower support costs • Increased Speed • Improved compliance • Optimized security • Easier access • Standardization • Flexible pricing • Improved Flexibility • Reuse & share • Easier to integrate 13 • 13 © 2012 IBM Corporation
- 14. … and creates new challenges for the CIO. § Ensuring scalability and responsiveness § Managing systems & security § Supporting audits & certifications § Managing the proliferation of systems & applications § Integrating “cloud” and enterprise services § Providing a range of services § Providing technical support 14 • 14 • 10/16/12 © 2012 IBM Corporation • Cloud Computing
- 15. Developing the technology strategy and implementation plan is the first step for the CIO. Without a strategy, new technologies like cloud 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, new tech 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 Usual 5 Steps IT Roadmap Workload Enterprise & Public Architecture Implementation Assessment Cloud Mix Standard End Cloud Service Users, Services Planning Platform & Computing Operators E-Mail, Software Enterprise Applications Infrastructure Software Collaboration Development Workload Service Hybrid Role Definition Bus Based Platform Tools Email Cloud Access Apps Service Data Private Infrastructure Publishing Test and Pre- Tools Intensive Cloud Production Processing Trad Sys BPM Systems Storage Custom Trad Service Cloud Platform Service Fulfillment & IT Private Public Mgmt IT Catalog Config Tools BSS Operational Console Service Reporting & Hybrid Info Web OSS Analytics Database ERP Mgmt Svr Network Capital Rent Financial 15 • 15 • 10/16/12 © 2012 IBM Corporation • Cloud Computing
- 16. Layers of abstraction that enable service delivery. Services & Applications SOA Characteristics § Applications reused in new dynamic ways Middleware § Services combined from multiple sources § Rapid deployment Virtualized Infrastructure § Services route to any available resource § Distributed access Physical Infrastructure • 1616 • Cloud Computing © 2012 IBM Corporation • 10/16/12
- 17. How to start • Business Initiatives Service Asset Virtualization Information Energy Security Business Management Management and Infrastructure Efficiency Resilience Consolidation Strategy Recognize Interdependencies • Define or Refine an IT Strategy aligned with Business Strategies and Initiatives by Tie to Business Strategy Architecture and Design • Examining Current & Desired Architectures, Standards and Governance Standards and Governance Implementatio n and Maintenance • Implementing and Maintaining Processes 17 © 2012 IBM Corporation • 17
- 18. • Company Business Strategy • • • Are your initiatives aligned with company business strategy ? ? ? • BUSINESS and IT INITIATIVES • • ? • Do your IT projects promote business initiatives ? ? • IT PROJECTS • • ? • Is your infrastructure able to sustain your IT Projects ? ? • IT INFRASTRUCTURE Service Assets Virtualisation Information Energy Security Business Management Management & consolidation Infrastructure Efficiency Resiliensy • БИЗНЕС СТРАТЕГИЯ • Prioritize projects, Develop Roadmaps and Recommendations, Define next steps 18 © 2012 IBM Corporation
- 19. IT Provider relationship model § How would you describe the relationship between the business units and IT? § How does the business request services from IT? § How important is the cost of a project vs the need to develop a solution that provides leading capability in your industry? • IT Initiatives Focus Area Matrix: by execution phase (Strategy, Design & Architecture, Implementation & maintenance) • Strategic Alignment Assessment: How does the business view IT? Do IT initiatives align with what the business needs from IT? § Summary Assessment : Current vs. desired future state assessment of IT capabilities. § Customized selected roadmaps: Based on client priority, showing projects by initiative and interdependencies. § Key observations and recommendations for IT strategic alignment and infrastructure § List of candidate project descriptions: For entries in the roadmap that will incrementally advance IT capabilities 19 towards the desired future state. © 2012 IBM Corporation
- 20. Demonstrating ROI shows the business value of technology/project and the value of the IT Department … 1. Identify Key Performance Indicators (KPIs) for the Organization 2. Capture Metrics for Baseline and Target Environments 3. Calculate Results 20 • 20 • 10/16/12 © 2012 IBM Corporation • Cloud Computing
- 21. .. and can show impact on the financial statement. Expenses - Income Statement Cost of Goods Sold Cost of Goods Sold : Materials Reduce material waste and increase production assets reuse through decreased error rates and workload optimization Production Total Cost of Goods Sold SG&A : Reduce maintenance overhead and labor requirements through automation Operating Expenses and standardization Selling, General and Administrative Depreciation : Research and Development Reduce depreciation through postponement of capital expenditure Depreciation and Amortization Utilities Utilities : Reduce energy consumption (power and cooling) through workload Other Overhead Costs optimization and consolidation Total Operating Expenses Interest Expense : Interest Expense Reduce interest expense through postponement of new loans Taxes NET INCOME 21 • 21 • 10/16/12 © 2012 IBM Corporation • Cloud Computing
- 22. The result: The CIO enables growth & innovation. • Rapid response to new business requirements Agile / • Improved risk management and Optimized business resiliency Business Managemen • More efficient pricing and capacity t utilization • Flexible, self-service delivery for users, based on requested qualities of service Flexible Service • Improved time to market and Delivery acceleration of innovation projects • Lower costs including capital and operational expenditures • Availability of skilled resources to Lower Cost focus on high value innovative of Running projects Business • Improved energy efficiency and reduce idle time--- 22 • 22 • 10/16/12 © 2012 IBM Corporation • Cloud Computing
- 23. The majority of respondents (55 percent) believe that cloud computing has a lower total cost Cost of Cloud of ownership (TCO). 2011 Future of Cloud Computing Survey: 417 Survey respondents: 46% vendors, 54% non-vendors North Bridge www.futurecloudcomputing.net June 22, 2011 Quote source: http://www.businesswire.com/news/home/20110622006602/en/Future-Cloud-Computing-Survey-Reveals-Drivers-Cloud 23 © 2012 IBM Corporation
- 24. On average, cloud users report saving 21 percent annually on those applications moved to the cloud. URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/ Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html among current cloud users... according to the AFCOM poll of 360 IT managers and other senior IT executives. 24 © 2012 IBM Corporation
- 25. Among current cloud users, 84 percent said they cut application costs by moving to the cloud. URL: http://www.pcworld.idg.com.au/article/385766/data_center_double_duty/ Study: Conducted in March by AFCOM - http://www.afcom.com/communique/communique_1.html http://www.afcom.com/Communique/communique_4.html “among current cloud users...” “according to the AFCOM poll of 360 IT managers and other senior IT executives.” 25 © 2012 IBM Corporation
- 26. Thank you! For more information, please visit: ibm.com/cloud or contact me at: piotr.pietrzak@pl.ibm.com http://twitter.com/piotrpietrzak 26 • 26 • 10/16/12 © 2012 IBM Corporation • Cloud Computing