Agenda. Who are we? Agenda. Cloud Computing in Everyday Life. Who are we? What is Cloud Computing? Drivers and Adoption Enabling Technologies Q & A

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Cloud Computing in Everyday Life

Joe Wong – Senior Development Manager, ICS, IBM Kit Yeung – Advisory Software Engineer, ICS, IBM March 2013

Agenda

● Who are we?

● What is Cloud Computing? ● Drivers and Adoption ● Enabling Technologies ● Q & A

Who are we?

● IBM Hong Kong Cloud Computing Laboratory ● A global software development lab specialized in:

End-to-end development of a web-based messaging product and delivery of services through Cloud to our WW customers – Software as a Service

Development of Social Business and collaboration products

Delivery and operation of Business Solutions on Cloud

Business Solutions on Cloud

New ways to deliver business

SmartCloud for Social Business ● Email, Online meeting,

Collaboration

● Affordable and flexible

solution

IBM Connections Mail

● Access to Mail and Calendar in

Connections 4.0

● _{Mail in social network and no}

context switching

● Expertise in Architecture, Infrastructure, UX Design, Application Development, QA, Project Management, Operations

Agenda

● Who are we?

● What is Cloud Computing? ● Drivers and Adoption ● Enabling Technologies ● Q & A

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Many Different Definitions....

Use of computing resources (hardware and software) that are delivered as a service over the Internet.... Name comes from the use of a cloud-shaped symbol as an abstraction for the complex

infrastructure it contains...

- Wikipedia

Cloud computing has the following characteristics: (1) Illusion of infinite resources... (2)

Elimination of an up-front commitment by users... (3) Ability to pay for use as needed...

- UCBerkeley RAD Labs

The concept, quite simply, is that vast computing resources will reside somewhere out there in the ether (rather than in your computer room) and we'll connect to them and use them as needed."

Common Characteristics

● Pay as you use

● Rapid elasticity

● Everything as a service

● Resources are virtualized or abstracted ● Ubiquitous network access

Pay As You Use

● Minimum up-front investment, little commitment ● Just like utility

● Pay for servers 'by the hours' (on demand) ● Pay for storage 'per GB' per month ● Pay for data transfer 'per GB'

● Easy to turn resources on and off to adjust running costs

Rapid Elasticity

● Scale up and down quickly and easily ● Optimize resources on demand ● Can deal with unexpected usage peaks

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Ubiquitous Network Access – Mobile First

Ubiquitous Network Access

PC Users – 1.3B News, Media, Search, Advertisement, Social Network, e-Business, Payment, Online Entertainment...

Mobile Users – 4B Location Based Service, Mobile Ads, Mobile Payment, Digital Wallet, Mobile Business

Things Connected – 1T Internet of Things (IOT) Apps: RFID, Barcode, Transportation, Environment, Logistics, Electricity Grid, Natural Resources

Cloud Services

Different Types of Clouds

Public Cloud

● IT activities are provided as a service by a third party provider over the internet

● Customer rents the capability ● Free or pay-per-use

● Resources shared – Multi-tenancy ● Minimal up-front costs and investment

● Examples: IBM SmartCloud for Social Business, Gmail, Apple's iCloud

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Private Cloud

● IT capabilities are provided 'as a service' over an intranet, within the enterprise and behind the firewall

● Customer buys the capability to deliver cloud services within the enterprise

● Costs in initial setup and on-going management ● Gives benefits of cloud computing, with less

limitation on network bandwidth, fewer security exposures and legal requirements

● Examples: An in-house web-based inventory management system at a multi-national retail company

Hybrid Cloud

● Internal, on-premise and external service delivery methods are integrated

● Allows outsourcing of non-critical IT activities ● Example: ERP system in private cloud, e-mail

system in public cloud

Cloud Service Delivery Model

Infrastructure as a Service (IaaS)

Platform as a Service (PaaS)

● Service providers offer platform tools to enable

application developers to host their services

● Application servers, databases, middleware,

development tools as a service

● Examples: Google's AppEngine, salesforce.com

Platform as a Service (PaaS)

● Service providers offer platform tools to enable

application developers to host their services

● Application servers, databases, middleware,

development tools as a service

● Examples: Google's AppEngine, salesforce.com

Service as a Service (SaaS)

● Service providers offer software applications

● Most known and widely used

● Examples: SmartCloud iNotes, Flickr, Office 365

Service as a Service (SaaS)

● Service providers offer software applications ● Most known and widely used

● Examples: SmartCloud iNotes, Flickr, Office 365

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Cloud Service Delivery Model

Cloud Computing Market is Growing Rapidly

WW IT Spending

Source: Market Insights Cloud Assessment, IBM Market Survey Report

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Real World Example: Panasonic

Ushers in cloud computing to connect global workforce in the cloud Business challenge

● Vision is to become the top Green Innovation Company in Electronics Industry by

2018.

●_{Leverage IT innovation to enable business units globally to operate as “One}

Panasonic.” - Embarked on an IT initiative to improve competitive advantage and overall business results by helping its multiple business units work together more efficiently.

Solution

● Adopted Cloud-based collaboration services to enable its workforce to

communicate and collaborate more efficiently

● More efficient collaboration with its global network of customers, partners and

suppliers

Benefits

● Low cost and rapid deployment – Provides cost savings.

●_{Superior extranet capabilities allow Panasonic to provide a set of cloud}

collaboration tools for immediate access across all regions -- connecting global

project teams and best practices for product research, development and sales and giving Panasonic an edge over competitors.

Real World Example: Russell's Convenience

Retailer gets social in the cloud to transform business

Business challenge

● Russell's Convenience, a leader in convenience service retail with 24 stores located

across the western US and Hawaii, was struggling to keep track of day-to-day issues

●_{Many fell through the cracks}

● Needed an easy way to connect to solve problems more quickly

●_{Needed better system for working beyond the firewall with licensees, vendors and}

partners.

Solution

● Adopted cloud services to enable more seamless, transparent communications

between management and licensees.

● Instead of searching through emails or picking up the phone, all store issues are

compiled and stored in one central place in the cloud which is easily accessible to experts inside and outside the company.

Benefits

●_{Cut travel costs by 33% saving. Cut postage costs by 50%}

●_{By connecting managers in different stores to determine best selling products, the}

company was able to increase sales in multiple markets.

●_{Track issues online and use web meetings to hash out solutions – Solving problems}

and completing projects faster

●_{Provides access to Russell's suppliers – Allows their architectural firm to review and}

approve plans online, speeding remodeling projects.

Agenda

● Who are we?

● What is Cloud Computing? ● Drivers and Adoption ● Enabling Technologies ● Q & A

Running Online Business

● More and more businesses are heavily dependent on the Internet, e.g. Amazon, Taobao, eBay, Twitter, YouTube, Dropbox.

● In some cases, their entire business revenue comes from online channels.

● Establishing an Internet business is so easy that everyone can be a business owner and starts his or her own company/ website.

● Reputation of your online business may rely on WOMM (Word of Mouth Marketing) or social network instead of traditional marketing channels. ● Trustworthiness of your business now depends on user ratings or site

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Reducing Risks at Online Business

● There are many risks in running an online business

● For some companies, online or mobile apps are their only storefront, and they have to make sure that the online site is running smoothly 24x7

● The biggest risk is losing business and losing customer confidence

● Why your website is down or closed?

Hackers

Surge in traffic

Hardware or power failure

Lack of hardware and software maintenance

Slow response to warnings and errors

Drivers & Consideration for Cloud Adoption

Cloud Traditional

Pay on Demand, Instantaneous

Provisioning Costs & Scalability Procurement, Provisioning, Installation, Setup.. Cloud Platform provides the

latest software updates and

security fixes Software Security

Need to monitor the latest security bulletin, and need for dedicated staffs to perform upgrades Multi-tenant environment may

lead to concerns Data Security / Privacy Private data centre with strict security measures in access

Cloud platform provider lock-in Lock-in Hardware/ software vendor lock-in

Drivers & Consideration for Cloud Adoption

Cloud Traditional

Guaranteed on Contract Service Level _Agreement As good as your hardware / _{administrator can achieve} Mainly developers, minimal

effort from administrator Staff

Developer, Database administrator, Network administrator, OS specialist At Cloud Provider's data center Data Location At Company's own or rental _premises

Major Cloud platforms have data centers around the world and provide optimization for global access

Global Presence

Software/ hardware deployment in data centers all over the world and teams to maintain the data centers

Drivers - Service Demand Spikes

● Due to social network effects and global

presence, demand on an Internet service can be unpredictable

● Traditionally, for companies which plan for unpredictable service demands, they need to acquire redundant machines and higher spare system capacity.

● If the service demand and traffic does not meet the expectation, the cost of spare machines, bandwidth, software will be wasted

● Therefore, many companies employ cloud as their service capacity buffers

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Inhibitors in Cloud adoption

● Controls ● Security

● Data Ownership / Privacy ● Data Sovereignty ● Performance

● Cloud service provider

Inhibitors - Data Security / Privacy

● In personal Cloud services, your personal information means money - They can be used in advertising, data mining, reselling to third parties ● As a business owner, do you want another company to host your

confidential data? Emails? Documents? Online transaction details? ● Some countries are asking Cloud service providers to surrender their

data without warrant nor notifying the owners – Ex: US Patriot Act. ● Ways to store or keep your data may vary from one provider to another

Password encrypted?

Data encrypted?

Retention after deletion?

Agenda

● Who are we?

● What is Cloud Computing? ● Drivers and Adoption ● Enabling Technologies ● Q & A

Virtualization – Virtual Machines

● Companies started virtualization in 1980s - “Pseudo Machines”, pioneered by IBM's M44/44X system

● Most companies use Virtual Machines for server consolidations ● Virtual Machines are usually being run in isolation inside a powerful

host machine

● An Operating System running on a hosted computer is called Guest Operating System

● Resources can be flexibly allocated to each of the guest operating systems

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Virtualization – Virtual Storage

● Can be classified as IaaS and SaaS, and becomes very popular in mobile computing

● You never run out of storage, as the storage space becomes an abstract concept

● Multiple storage systems are bundled as a Cloud Storage ● Characteristics in Virtual Storage

Theoretically limitless storage space

Multiple copies of file are stored across multiple servers or even multiple physical locations for resilience

Some virtual storage services allow you to store multiple versions of the same files

Virtualization – Cloud Application Services

● New breed of Cloud Services, similar to PaaS/SaaS

● “You prepare the recipe (source code), and give it to the chef (Cloud application provider), they find the ingredient for you and cook, they never run out of ingredient, they even serve the customer for you.” ● As a business, you never worry about performance, system stability,

upgrade. Business can focus on their “product” ● Cloud provider charges by CPU times,

storage and bandwidth. They also maintain the platform, operating

system, storage and development tools. ● Example: Google App Engine

Agenda

● Who are we?

● What is Cloud Computing? ● Drivers and Adoption ● Enabling Technologies ● Q & A