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                                Cloud Computing
                                Redefining IT Delivery

                                 Ric Telford
                                 Vice President, IBM Cloud Services
                                 Dec 2, 2009

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                                What is Cloud Computing?

                                                           Cloud Services
  A user experience and a business model
   Standardized offerings
                                                     Cloud Computing
   Rapidly provisioned
   Flexibly priced

  An infrastructure management and services
    delivery method
   Virtualized resources
   Managed as a single large resource
   Delivering services with elastic scaling
   Similar to Banking ATMs and Retail Point of
   Sale, Cloud is Driven by:
     Self-Service                                                          IT
     Economies of Scale
     Technology Advancement
Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                                    2
                         The Future of Cloud Computing: the co-
                          existence of three IT delivery models

            Multiple Types of Clouds will co-exist:
            • Private, Public and Hybrid
            • Workload and / or Programming Model Specific


              Services                        Services                     Services
         Service Integration            Service Integration          Service Integration

            Traditional                                                    Public
                                            Private Cloud
           Enterprise IT                                                   Clouds

                                                            Hybrid Cloud

        Mission Critical              Test Systems                 Variable Storage
        Packaged Apps                 Pre-production               Software as a Service
        High Compliancy               Developer Platform           Web Hosting
Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                                                 3
                                            So what’s different about Cloud?

            Capability                    From                                                                To

       Server/Storage Utilization         10-20%                                                             70-90%

              Self service                 None          Cloud is a synergistic fusion which                Unlimited
                                                         accelerates business value across a
                                                         wide variety of domains.                            Minutes
           Test Provisioning              Weeks

         Change Management                Months

        Release Management                Weeks

            Metering/Billing          Fixed cost model

    Payback period for new services        Years

                                                         Legacy                            Cloud enabled
                                                         environments                          enterprise

Cloud Computing: Pay-per-Use
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                         IBM Research Computing Cloud (RC2)

       Provides self service “on demand”
   1   delivery solution for research computing   Research Compute Cloud (RC2)
       Zero touch support for the full life
   2   cycle of service delivery                            Zurich
          Order creation                               Watson
          Approval process
          E-mail notification
          Automated provisioning
          Monitoring

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                        An architectural model that includes standards
                                  based interfaces is key …

          Service                              Service                      Service
    Request & Operations                       Provider              Creation & Deployment

        End Users,                                                           Service
        Operators                        Cloud Services                     Planning

                                        Application, Process and              Service
                                         Information Services                Definition
                                        Standards Based Interfaces             Tools

                                       Software Platform Services

                                        Standards Based Interfaces            Service
         Role-based                      Infrastructure Services               Tools

                                         Cloud Platform                     Fulfillment &

                                       Business Support Systems
           Catalog                               (BSS)
                                        Standards Based Interfaces

                                          Operational Support
          Operational                                                          Service
                                            Systems (OSS)                    Reporting &

Cloud Computing: Pay-per-Use                                                              6
    for On-Demand Scalability
                  …as is identifying workloads with affinity for Cloud.

   Risk and migration cost may be too high
        Database
        Transaction processing
        ERP workloads
        Highly regulated workloads

   Can be standardized for cloud
        Web infrastructure applications
        Collaboration infrastructure
        Development and test
        High Performance Computing

   Made possible by cloud
        High volume, low cost analytics
        Collaborative Business Networks
        Industry scale “smart” applications

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    for On-Demand Scalability                                             7
                        What Workloads are We Seeing Move to
                                  Cloud Delivery?

    May be ready

     1    Pre-production systems
          Software development

     2    Storage Solutions/Storage as a Service
          Backup/Restore Solutions
          Information archival
          Some data intensive workloads

     3    Mature packaged offerings
     4    Batch processing

     5    Isolated workloads

Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                  8
                        What Workloads are We Seeing Move to
                                  Cloud Delivery?

    May not be ready

     1    Sensitive data
          • Employee Information
          • Health Care Records

     2    Multiple co-dependent services
          • High throughput OLTP

          High auditability & accountability
     3    • Subject to Sarbanes-Oxley

          3rd party software which:
     4    • Does not have a virtualization
            or Cloud aware licensing strategy

     5    Chargeback or utilization not enabled

     6    Requires customization

Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                  9
                                     Cloud Scale Economics

     Enterprise private clouds offer significant operational efficiencies through
     virtualization and image management

     Cloud service providers with highly standardized workloads can drive even
     further cost optimization for mega-Data Centers
              SMB                                                                          architecture
                                     Enterprise                     Cloud Service        Cloud Service
                                                                       Provider          Provider Prices

                              Enterprise Private                                            Cloud
                                Cloud Costs                             Cloud Service       architecture
                                                                        Provider Costs
                    2000+ Servers                  10000+ Servers              Scale
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    for On-Demand Scalability                                                                              10
                            Example Cost Comparisons Possible via
                                      Cloud Computing



                                                                                               Small Image
      $2,000                                                                                   Med Image
                                                                                               Large Image

                  Infrastructure      Network              Facilities       Labor
                                  Environment                           Totals
                       Industry data for non-virtualized                $8298       Per Server Year

                        Small image, virtualized Cloud                   $187       Per Virtual Image Year
                        Medium image, virtualized Cloud                  $612
                       Large image, virtualized Cloud                   $1224

Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                                                                11
                  IBM has Tools to Help Scope, Plan and Measure ROI

         ROI Tools
              Cloud Qualification Tool                 Infrastructure savings estimation

              Infrastructure Planner for Cloud         Cloudburst Infrastructure sizing

              Cumulus                                  Cloud workload migration prioritization

              Test Cloud ROI Tool                      Test Cloud usage cost savings estimation

    Cloud Consulting
       and Planning
              Infrastructure Strategy & Planning for   Guides client to high level strategy & plan for cloud
              Cloud Computing                          computing

              IBM Testing Services for Cloud           Projected TCO and ROI for moving functional testing to a
                                                       cloud-based environment

              Strategy & Change Services for Cloud     Determine relevant business models, operating strategies, and
                                                       implementation roadmaps

    Cloud Jumpstart
              Sign up for a complementary Jumpstart Workshop

Cloud Computing: Pay-per-Use
    for On-Demand Scalability                                                                                          12
                   IBM delivers 3 ways to deploy workloads that matter
                   to you for greater efficiency, productivity and control.

  Smart Business Services – cloud services delivered.
      1.   Standardized services on the IBM cloud.

      2.   Private cloud services, behind your firewall, built and/or run by IBM.

  Smart Business Systems – purpose-built infrastructure.
      3.   Pre-integrated, workload optimized systems.

   Analytics          Collaboration      Development          Desktop and           Infrastructure   Business
                                         and Test             Devices                                Services

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                               IBM Continues to Invest for Better Cloud Economics
                           IBM Cloud Services Portfolio - Enabling New Delivery Models

                               Analytics   Collaboration      Development    Desktop and      Infrastructure   Infrastructure       Business
                                                                and test       devices           compute           storage          services

         Smart business                    IBM Lotus          Smart          IBM Smart         IBM             IBM              BPM
        on the IBM cloud
                                           Live               Business       Business          Computing       Information      BlueWorks
    Standardized services                  NEW - IBM          Development    Desktop Cloud     on Demand       Protection       (design tools)
         on the IBM cloud
                                           Lotus®             and Test on    Smart Business                    Services         Smart business
                                           iNotes®            the IBM        End User                                           expense
                                                              Cloud (beta)   Support                                            reporting on the
                                                                                                                                IBM cloud
    IBM Smart Business         IBM Smart                      IBM Smart      IBM Smart                         IBM
                               Analytics                      Business       Business                          Smart
   Private cloud services,
                               Cloud                          Test Cloud     Desktop                           Business
 behind your firewall, built
  and/or managed by IBM                                                      Cloud                             Storage

    IBM Smart Business         IBM Smart                      IBM                                              IBM              Smart Business
               Systems         Analytics                      CloudBurst                                       Information      for Small or
                               System                         ™ family                                         Archive          Midsize
  Preintegrated, workload-
        optimized systems                                                                                                       Business
                                                                                                                                (backed by the
                                                                                                                                IBM Cloud)

                               Existing      New in October                   Global Technology Services

Cloud Computing: Pay-per-Use                                                                                                             14
    for On-Demand Scalability
                                       IBM CloudBurst

   A Breakthrough in Service Delivery for Data Center Workloads with a
   fully configured pre-integrated system

  • For IT executives seeking a breakthrough in:
       • Delivery of service
       • Reduction in cost
       • Transformation of the data center into a
         Dynamic Infrastructure
                                                           Service                   Service
  • A complete system that integrates the service          Design                  Subscription

    management software system with servers,
    storage, and Quickstart services, and                             Operations
    financing to quickly enable a private cloud            Service
                                                           Delivery                 Activation

  • “Fit for purpose” based on the architectures
    required by specific workloads

                                                    Hardware + Software + Services
                                                          Starts at ~ $200k
Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                          IBM Smart Business Test Cloud Services

    Strategy, planning, design and implementation services
                                                                                Reduce IT labor cost by 50%+:
    Assessment of current test environment to project savings and ROI
                                                                                 reduce labor for configuration,
    Set-up catalog for standardized configurations                              operations, management and
    Implement automated provisioning via a self-service portal                  monitoring of the test environment

    Integrate solution into overall management environment                     75%+ capital utilization
                                                                                 improvement: significant license
    Provide elastic scaling with advanced virtualization – leverages            cost reduction
     existing assets
                                                                                Reduce test provisioning cycle
    Support for IBM CloudBurst for rapid set up of cloud platform
                                                                                 times from weeks to minutes
                                                                                Reduce risk and improve
                              Private Test Cloud                                 quality: eliminate 30%+ of all
                                                                                 defects that come from faulty
         IBM Smart Business Test Cloud :                                         configurations
            customization and integration for a
        comprehensive, on-premise test environment

                                            IBM CloudBurst:
                                    hardware, software and services for base
                                                cloud platform

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                     Smart Business Development & Test on the IBM Cloud
                     An online collaborative environment for the development
                     and testing of applications

   • Instant self-service provisioning of
   development and test environments

   • Dynamic/ elastic computing for tests and
   builds with virtualized environments

   • Flexible deployment pricing options
        • Private hosted – fixed price, time and
        materials, or pay as you go
        • Multi-tenant shared and shared – utility/
        metered billing based consumption             Client Benefits:
                                                      •Reduced high cost and deployment time of
   Environment:                                       software development and test environment
   • System x – Linux and Windows with local          • Limit capital investment and significant software
   storage and SAN option, p and z to follow          license savings
   • Eclipse and Rational Tools                       • Reduce development and test provisioning cycle
   • IBM Middleware images                            times from weeks to minutes
                                                      • Improve quality with reduced defects due to
         Open beta program accessible to              faulty configurations
         customers worldwide in October               • Improve governance and reduce risk of large
                                                      software deployments

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                        Deploy a Service with a few mouse clicks

Rational Team Concert running in 5 minutes on the IBM Cloud

 Step 1 Click and Choose the
           Service you need
                                 Step 2 Choose the hardware and Step 3
                                          usage configuration
                                                                         Application provisioned and
                                                                           ready to run

Cloud Computing: Pay-per-Use
    for On-Demand Scalability
                         IBM announces client-premise Storage Cloud

    Smart Business Storage Cloud                          Smart Business Storage on the IBM Cloud
                                                                                   (coming soon)
   •Privately owned and
    managed.                                                            Service provider owned and
   •Access limited to client and                                                           managed.
    its partner network.                     IBM Cloud                      •Access by subscription.
   •Drives efficiency,                                                        •Delivers select set of
    standardization and best                                                  standardized business
    practices while retaining                                            process, application and/or
    greater customization and          Customer Cloud                    infrastructure services on a
    control                                                                      pay-per-usage basis.

                                       Hybrid …
                                     •The combination of
               .…Security, privacy    public and private
                                                                    .…Standardization, capital
           customization & control    models for the greatest       preservation, flexibility and
                                      efficiencies and broadest     time to deploy
                                      workload support.

      Smart Business Storage Cloud can be implemented behind client firewall
      in managed or un-managed configurations and as an IBM hosted offering.

Cloud Computing: Pay-per-Use
      for On-Demand Scalability
         3/5/2010 Cloud Computing
                                            Kantana chooses IBM

       “IBM’s solution                       Business challenge:
       allows Kantana to                     Kantana Animation Studios found that its character rendering and modeling
                                             processes were putting increasingly heavy demands on its data storage
       enhance its creative                  infrastructure. Needing to store and retrieve extremely large files at high
                                             speed, the studio looked for a cost-effective solution that could handle
       capabilities for more                 exceptional growth.
       quality works…”
        — Auchara Kijkanjanas, Managing
           Director of Kantana Animation     Kantana implemented the IBM Smart Business Storage Cloud, an all-in-
                         Studios Co., Ltd    one data storage solution with IBM System x™ and IBM System Storage™
                                             technologies and management services from IBM Global Technology
                                             Services. The solution allows Kantana to store large files in a single logical
                                             location, accessible by all animators. Storage capacity may be increased
       Solution components:                  precisely as the business requirements dictate.
        IBM Scale-out File Services
        IBM General Parallel File
         System                              Benefits:
        IBM Global Technology
         Services                               Increased productivity with centralized
                                                 file storage for all animators
        IBM System x3650
        IBM System Storage DS4800              Enhanced, cost-effective scalability
                                                 meets growing business requirements
        IBM System Storage TS3310
         Tape Library                           Reduced administrative workload and
                                                 costs with IBM Smart Business Storage

Cloud Computing: Pay-per-Use
      for On-Demand Scalability

                                                       Thank you!

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Cloud Computing: Pay-per-Use
    for On-Demand Scalability

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