How To Manage Cloud Computing

© 2010 IBM Nederland B.V.

Cloud Computing

Why, what, how?

Ronald Zoutendijk, [email protected] Johan Arts, [email protected]

Agenda

Why Cloud Computing?

What is Cloud Computing? (What isn’t?) How should we go about it?

IBM Cloud Portfolio Closing

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In our definition cloud computing the IT cloud is the actual delivery

model and methodology. It has specific attributes

Cloud is a user experience and a business model

Cloud computing is an emergingstyle of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a flexible pricing model

Cloud is an infrastructure management and services delivery methodology

Cloud computing is a way of managing large numbers of highly virtualized resources such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling

Monitor & Manage Services & Resources

Cloud Administrator Datacenter Infrastructure Service Catalog, Component Library Service Consumers Component Vendors/ Software Publishers

Publish & Update Components, Service Templates

IT Cloud

Access Services

What is Cloud Computing

Cloud is a user experience and a business model

Cloud computing is an emerging style of IT delivery in which applications, data, and IT resources are rapidly provisioned and provided as standardized offerings to users over the web in a

flexible pricing model

Cloud is an infrastructure management and services delivery methodology Cloud computing is a way of managing large numbers of highly virtualized resources such that, from a management perspective, they resemble a single large resource. This can then be used to deliver services with elastic scaling

Common Attribute Details

Standardized offerings Uniform offerings readily available from a services catalogue on

a metered basis

Elastic scaling Resources scale up and down by large factors as the demand

changes

Rapid provisioning IT and network capacity and capabilities are – ideally

automatically – rapidly provisioned using Internet standards without transferring ownership of resources

Advanced virtualization IT resources from servers to storage, network and applications

are pooled and virtualized to provide an implementation independent, efficient infrastructure

Flexible pricing Utility pricing, variable payments, pay-by-consumption and

subscription models make pricing of IT services more flexible

Lets look at a simple example of cloud as a delivery model for

standard services

THE PIZZA CLOUDFlexible priced: PIZZA AS A SERVICE

You pay per pizza ordered Elastic scaling: You order 1, 2, 3 or more Rapid prov.: Pizza (service) in 3 minutes ready Standard off.: Only 4 flavour of pizza level: Only 1 level of service

Infrastructure-as-a-Service Platform-as-a-Service Application-as-a-Service

Servers Networking Storage

Middleware Collaboration Financials CRM/ERP/HR Industry Applications Data Center Fabric Shared virtualized, dynamic provisioning

Database Web 2.0 Application Runtime Java Runtime Development Tooling Examples Business Process-as-a-Service Employee Benefits Mgmt. Industry-specific Processes Procurement Business Travel

The service delivered from the delivery model are called cloud

services which are divided here in four layers.

Because of the four cloud services layers it is difficult to define where

certain IT parts fit as they seem to move from the service side into

the cloud delivery model

Cloud

Infrastructure

Monitor & Manage Services & Resources

Cloud Administrator Service Catalog, Component Library Servers Networking Storage Data Center Fabric Middleware Database Web 2.0 Application Runtime Java Runtime Development Tooling Collaboration Financials CRM/ERP/HR Industry Applications

Enterprise

Service Consumers

Service Integration Service Integration Traditional

Enterprise IT Private Cloud

Services Services Service Integration Public Clouds Service s

Over time, IT workloads will move to Cloud delivery models as applicable for the client.

●Mission Critical ●Packaged Apps ●High Compliancy ●Test Systems ●Developer Systems ●Storage Cloud ●Compute as a Service ●Storage as a Service ●Software as a Service Examples:

IBM sees different delivery models that will be used concurrently for

the coming years to support all IT services depending on workload

characteristics

 Single virtual appliance workloads

 Web application servers

 Test and Pre-production systems

 Mature packaged offerings, like e-mail and collaboration

 Software development environments

 Batch processing jobs with limited security requirements

 Isolated workloads where latency between components is not an issue

 Storage Solutions/Storage as a Service

 Backup Solutions/Backup & Restore as a Service

 Some data intensive workloads

Examples of workloads that we see moving to a cloud computing

delivery or consumption model

 Workloads which depend on sensitive data normally restricted to the Enterprise

 Employee Information - Most companies are not ready to move their LDAP server into a public cloud because of the sensitivity of the data

 Health Care Records - May not be ready to move until the security of the cloud provider is well established

 Workloads composed of multiple, co-dependent services

 High throughput online transaction processing

 Workloads requiring a high level of auditability, accountability

 Workloads subject to Sarbanes-Oxley, for example

 Workloads based on 3rd party software which does not have a virtualization or cloud aware licensing strategy

 Workloads requiring detailed chargeback or utilization measurement as required for capacity planning or departmental level billing

 Workloads requiring customization (e.g. customized SaaS)

Examples of workloads which may not be ready for cloud delivery

today?

Agenda

Why Cloud Computing?

What is Cloud Computing? (What isn’t?)

How should we go about it?

IBM Cloud Portfolio Closing

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When adopting cloud computing it is of great importance to use a

structured approach to ensure outcomes of reduced costs,

improved service and managed risks

Approach*:

1. Create strategic view and define the benefits, which type of cloud

services are most benefitial ?

2. Assess readiness of workloads to be migrated

3. Assess organisational, process, tooling and governance impact and start

an adoption plan

4. Select implementation projects based on strategy and implement the

selected workloads as IT services.

IBM has introduced 3 choices to deploy workloads based on

cloud computing

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. Integrated Service Delivery Platform

Analytics Collaboration Development and Test Desktop and Devices Infrastructure Storage Infrastructure Compute Business Services

New deployment choices aligned to different workloads

Smart Business on the IBM Cloud

Smart Business Cloud

Smart Business Systems

Standardized services on the IBM Cloud

Pre-integrated, workload optimized systems Private cloud services, behind your firewall, built and/or managed by IBM

IBM Lotus Liv e

IBM CloudBurst IBM Smart Business Test Cloud IBM Smart Business Desktop Cloud IBM Smart Business Storage Cloud

Analytics Collaboration Developm ent and Test

Desktop and

Devices Infrastructure_Storage

IBM Smart

Analy tics Sy stem IBM Smart Business f or

SMB (backed by the IBM cloud) Infrastructure Compute IBM Compute on Demand

IBM Inf ormation Protection Serv ices Business Services IBM BPM Blueworks (Design tools) IBM Smart Business End User Support-IBM

Serv ice Assist IBM Smart Business Desktop

on the IBM Cloud

IBM Smart Analy tics Cloud

IBM LotusLiv e

iNotes IBM Smart Business

Expense Reporting on the

IBM Cloud

IBM Inf ormation Archiv e IBM Smart

Business Dev & Test on the IBM Cloud (Beta)

Lotus Foundation

Transformation Roadmap – private cloud

●Allocate less than physical boundary ●Reduce hardware costs ●Simplify deployments Dynamic Automate ●Standardized Services ●Dramatically reduce deployment cycles ●Granular service metering and billing

●Massively scalable ●Autonomic ●Flexible delivery enables new processes and services ●Self-Service ●Elastic ●Automatic service metering and billing

●Industrialized service delivery

●Economies of scale

Cloud

A typical workload that is moving to private cloud delivery today is

test workloads because of the challenges faced today

 30% to 50% of all Servers within a typical IT environment are

dedicated to Test

 Most Test Servers run at less than 10% utilization, if they are running

at all

 IT staff report a top challenge is finding available resources to perform

tests in order to move new applications into production

 30% of all defects are caused by wrongly configured test

environments

 Testing backlog is often very long and single largest factor in the

delay new application deployments

 Test environments are seen as expensive and providing little real

business value.

How can cloud computing characteristics improve the test

environment?

Common attributes Characteristics Benefits

Advanced virtualization

Test resources are pooled and

virtualized. Providing efficient implementation-independent infrastructure.

Rapid provisioning Test resources are provisioned on demand.

Reducing test setup and execution time and eliminating errors

Service catalog ordering

Test environments are readily

available. Enabling visibility, control and automation.

Elastic scaling

Test environments scale down and up by large factors as the need changes.

Optimizing resources utilization.

Flexible pricing

Test resources are priced on supported topology and project phases.

Offering pricing schemes options for tests and user acceptance.

Metering and billing Test resources used and reserved are charge-backed to LOBs.

IBM Implementation Services for cloud computing –

design and implementation for test environments

Customer Benefits:

 Reduce IT labor cost by 50% + -

reduce labor for configuration,

operations, management and monitoring of the test environment

 75% + Capital utlization improvement;

Significant license cost reduction

 Reduce Test Provisioning cycle times from weeks to minutes

 Improve Quality- eliminate 30% + of all

defects that come from faulty configurations.

Features:

• Assessment of current test environment to project savings and ROI • Strategy, planning, design and implementation services of the solution • Create self-service portal with catalog of services

• Integrated platform combining service request management, provisioning / de-provisioning and change and configuration management

Test Environments In the Cloud

IBM CloudBurst: An Integrated Platform Built for Growth

Data Center Optimization Through Modularity

Modular, Self-contained, Scalable Workload Delivery Platform

WORKLOAD A

Modular, Self-contained, Scalable Workload Delivery Platform

WORKLOAD B

Legacy Environment :

NON – IBM Solutions Requiring workload connectivity WORKLOAD C Service Management Service Management Service Management

Architectural and process level integration that delivers business aligned Visibility, Control and Automation of all Data Center Elements

An example: IBM Technology Adoption Program uses cloud to help

reduce expenses and drive innovation.

Business challenge:

Reduce operational expenses and capital investment in order to fund innovation

Solution:

Develop an internal “Collaboration Innovation” cloud using IBM

technology

Benefits:

 Dramatic labor (-80.7 percent) and capital depreciation (-91.6 percent) savings

 One of IBM’s most successful

solutions with over 80,000 participants

Note: 5-year depreciation period with 5 percent discount rate

Annual cost of operation (- 79.0 percent) $3.4M annual expense Strategic change capacity Liberated funding for transformation investment or direct saving Depreciation (and amortization) New development Depreciation ( - 91.6 percent) Labor cost ( - 80.7 percent) Deployment (1-time) New development (for business-enabling capabilities) Software and other costs

Without cloud With cloud

$1.03M annual expense Software and other costs Labor costs (operations and maintenance)

Year 1 Saving by Category Sys. Admin. Cost 42% Provisioning Cost 22% Testing Productivity 25% Hardware 10% Software 1% 6.82 $302,958.33 $935,880.13 308.91% 102.97%

Payback Period (months)

Net Present Value (NPV)

Total Initial Investment for Test Cloud

Estimated ROI over 3 years Estimated avg. annual ROI

ROI analysis example- medium # of servers

= Service Management driven savings

Cumulative Cost Comparison -- With and without Cloud

$0.00 $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.00 $4,000,000.00 $4,500,000.00 $5,000,000.00 Transformation Point

Year-1 Year-2 Year-3

Cu mu lat ive Ex pe ns es

Current IT Model Accumulated Costs Test Cloud Model Accumulated Costs

Service Management- the key to unlocking cloud savings

A service management system provides the visibility,

control and automation needed for efficient cloud delivery in both public and private implementations:

● Simplify user interaction with IT

● User friendly self-service interface accelerates time to value

● Service catalog enables standards which drive consistent service delivery

● Provisioning enables policies to lower cost

● Automated provisioning and de-provisioning speeds service delivery

● Provisioning policies allow release and reuse of assets

● Increase system administrator productivity

● Move from management silos to a service

management system

On average, 81% * of Cloud payback is driven by labor savings

enabled by service management

*Average of the three studies referenced in this presentation which are based on IBM Research study 2009

Agenda

Why Cloud Computing?

What is Cloud Computing? (What isn’t?) How should we go about it?

IBM Cloud Portfolio

Closing

1

2

3

4

5

CLOUD ENABLING PRODUCTS & ASSETS Service Management Service Availability Service Security Virtual Resource Pools Systems Virtualization Management

IBM Cloud Portfolio Strategy

Service Automation Manager

Virtualized Servers and Storage

Service Assets Base IBM Products and Technologies Cloud Consulting Cloud Implementation

Enable our customers to leverage cloud computing through designing, building, and delivering

…bringing clarity and focus.

Security Management

Securing virtual and physical networks Encrypt data outside company firewall

Providing access across various security domains

Service Delivery & Management

Automated delivery of Cloud services Self-Service provisioning of virtual resources

Monitoring and managing virtual resources Optimizing usage of virtual resources

Cloud Component Offerings by IBM

Application Server Provisioning

Dispensing virtual images

Storage Management

Data recovery for Cloud storage Creating Cloud storage environment

Servers, Storage

Creating virtualized infrastructure

IBM Systems and Technology IBM System Storage

Collaborative Application Lifecycle Mgt Quality Management