Using Cloud to Deliver Innovation and Efficiency

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IBM Northeast Europe

Using Cloud to Deliver Innovation and Efficiency

Christian Klezl

Vice President & Cloud Leader IBM Northeast Europe

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IBM Northeast Europe

Cloud in the Industry – A Drumbeat and a Paradigm Shift ...

The newly published CCID report below prominently places IBM as the number one Cloud vendor and owning 19.1% of the PRC marketshare (USD$49.64M out of USD$259M); Pub sector being the leading industry adopter.

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The Total Cloud by IBM – Copenhagen, May 19th 2010

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-We are meeting our cost and performance goals by taking a role-based approach to Desktop Clouds

• 1200+ software developers in IBM China Development Labs • IBM Call Centers in US and India • Estimated 20% to 30% reduction

in client provisioning costs • Centrally managed & deployed

images improve systems management and security • Classroom education and training

in Montpellier and other facilities worldwide

Desktop clouds are not “one size fits all”, we segment our population and deploy based on end user personas, usage patterns and

business requirements

Cloud in IBM – An Agenda for Efficiency, Capability and Savings

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-LotusLive provides integrated, Cloud-based solutions that

enable us to work securely with anyone from anywhere

• 65% of IBM’s current meeting minutes are provided through LotusLive; over 200 million meeting minutes used with clients, business partners and IBMers in 2009 • LotusLive Engage for meetings and

collaboration: 6,000 registered users sharing files internally and with clients

• LotusLive iNotes email pilot underway with our early adopter community

Web Conferencing

Collaboration

eMail

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-CIO Cloud focus for 2010

Fit for purpose middleware platform Common Compute Platform

(Compute/ Network/ Storage)

Analytics Blue Insight Collaboration LotusLive Development & Test CIO Dev/Test Cloud Desktop Workplace Cloud Storage Storage Cloud Business Services Production Cloud

Base Enterprise Platform

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-Storage Clouds will give us higher utilization and storage

management automation

• 25% annual growth rates in our file and block storage spaces • File and object storage: we are

implementing IBM’s Virtual Storage Cloud

• Block storage: focus first on midrange and zLinux support using IBM XIV Enterprise Storage solution, and cloud automation

• 30-40% estimated savings in these spaces

Strategic Growth Sites Strategic Special Purpose Strategic Special Purpose – DR site

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Where it started … The world is getting smarter – more

instrumented, interconnected, intelligent.

Smart traffic systems Smart food systems Intelligent oil field technologies Smart water mgmt Smart energy grids Smart healthcare Smart retail Smart regions Smart weather Smart cities Smart countries Smart supply chains

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IBM Cloud Computing

55K PB/Mo

Digital data is projected to grow tenfold from 2007 to 2011

Global Internet traffic volume expected by 2013

Number of devices will be

connected to the Internet by 2011

Percentage of CIOs who expect to face substantial change over the next three years

10 1 83%

As the planet gets smarter the information explosion and rapid

change create new challenges

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Yet today’s IT infrastructure is under tremendous pressure and is

finding it difficult to keep up…

It will reach a breaking point

In distributed computing

environments, up to 85 percent of computing capacity sits idle

Percentage of executives who report a security breach and aren’t confident they can prevent future breaches

66 percent is spent on maintaining current IT

infrastructures versus adding new capabilities

Percentage of CIOs who want to improve the way they use and manage their data

66%

85% idle

78%

82%

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Fiscal pressures, demanding customers and device & data proliferation all drive a greater need for Company’s to leverage IT to address business challenges & exploit market opportunities.

Reducing risk

Ensure the right levels of security and resiliency across all business data and processes

Breakthrough agility

Increase ability to quickly deliver new services to capitalize on opportunities while containing costs and managing risk

Higher quality services

Improve quality of services and deliver new services that help the business grow and reduce costs

Doing more with less

Reduce capital expenditures and operational expenses

Opportunity for

Eminence & Growth

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There are three ways to acquire and provision IT capabilities

Cloud computing is a new delivery and

consumption model or methodology

spanning all 3 ways.

Software, hardware and services Pre-integrated systems and appliances Provided as services

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Cloud computing is an Evolution that helps deliver IT and business

benefits

Automated

Faster cycle times Lower operating expense Optimized utilization Improved compliance Optimized security End user experience

Standardized

Easier access Flexible pricing Reuse and share Easier to integrate

Virtualized

Higher utilization Economy of scale

benefits Lower capital expense

Higher quality services

Doing more with less

Breakthrough agility

and reducing risk

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Risk & Compliance

34,000-employee bank deploying a private cloud from IBM to centralize management of desktops via an enterprise class data center rather than at the user stations. Gets greater remote flexibility without sacrificing control. Employee Productivity Enable collaboration across global

employees as well as its network of customers, partners and suppliers. IBM LotusLive has 18 million users in 99 countries Analytics & Security Design and demonstration of a secure cloud infrastructure for defense and intelligence networks; insights about cyber attacks, network, system or application failures, while automatically preventing disruptions. Time to Value Creates an

ecosystem for PayPal 3rd Party developers Reduces developer effort to deploy a work environment with seamless PayPal Test Sandbox access

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IBM Cloud Computing

Integrate a cloud computing deployment as part of the existing IT

optimization strategy and roadmap

Consolidate

Virtualize

Standardize

and automate

Reduce infrastructure complexity Reduce staffing requirements

Manage fewer things better

Lower operational costs

Remove physical resource boundaries Increase hardware utilization Reduce hardware costs Simplify deployments Standardize services Reduce deployment cycles Enable scalability Flexible delivery

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Business and IT benefits from cloud computing are real

Test provisioning Weeks Minutes

Change management Months Days/hours

Release management Weeks Minutes

Service access Administered Self-service

Standardization Complex Reuse/share

Metering/billing Fixed cost Variable cost

Server/storage utilization 10–20% 70–90%

Payback period Years Months

Source: Based on IBM and client experience.

Increasing

speed and

flexibility

Results from IBM cloud computing engagements

Reducing

costs

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IBM Cloud Computing

Adoption of cloud computing will be workload driven

Web infrastructure applications

Collaborative infrastructure Development and test

High Performance Computing

 ...

Test for Standardization _{Examine for Risk}

Database

Transaction processing ERP workloads

Highly regulated workloads  ...

High volume, low cost analytics

Collaborative Business Networks

Industry scale “smart” applications

 ...

Explore New Workloads Workload characteristics determine standardization

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IBM Cloud Computing

There is a spectrum of deployment options for cloud computing

Private

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

Public

IT activities / functions are provided “as a service,” over the Internet

Hybrid

Internal and external service delivery _{methods are integrated}

Third-party operated Third-party hosted and operated Enterprise data center Enterprise data center

Private cloud Hosted private

cloud Managed private cloud Enterprise Shared cloud services A Enterprise B Public cloud services A Users B

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IBM provides a comprehensive set of capabilities to accelerate

the cloud journey

Consulting and enabling services

Experience and expertise to help clients plan,

build and deliver cloud services

Technologies

to plan, build, deliver and manage

cloud services

Cloud services

to optimize your business

Run

Design

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The 4 major categories of cloud computing services

IBM Examples

Smart Business Expense Reporting

on the IBM Cloud

IBM Development

& Test Cloud

Business Process-as-a-Service Employee Benefits Mgmt. Industry-specific Processes Procurement Business Travel Software/ Application-as-a-Service Collaboration Financials CRM/ERP/HR Industry Applications Platform-as-a-Service Middleware Database Web 2.0 Application Runtime Java Runtime Development Tooling Infrastructure-as-a-Service

Servers Networking Data Center Storage

Fabric Shared virtualized, dynamic provisioning

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Ready-to-consume cloud services from IBM

IBM Managed Security Services

IBM Tivoli Live IBM Smart Business Cloud

for production workloads

Infrastructure Compute

IBM Smart Business on the IBM Cloud

Business processes Smart business expense

reporting on the IBM Cloud

Collaboration IBM LotusLive

Desktop and devices IBM Smart Business Desktop on the IBM Cloud

IBM Smart Business End User Support

Development and test IBM Smart Business Cloud for development and test Infrastructure storage IBM Information Protection Services

Software as a Service IBM WebSphere Application

Server

IBM WebSphere sMash IBM WebSphere Portal

IBM DB2

IBM Informix Dynamic Server Lotus Domino

Lotus Web Content Mgmt

BPM BlueWorks Lombardi

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IBM Cloud Computing

Working together with an ecosystem of IBM Business Partners to

accelerate and optimize your cloud journey

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Security is among a top concern with cloud computing...

The IBM Security Framework provides a structure to address this concern

Data and information

Understand, deploy and properly test controls for access to and usage of sensitive data

People and identity

Mitigate the risks associated with user access to corporate resources

Application and process

Help keep applications secure, protected from malicious or fraudulent use, and hardened against failure

Network, server and end point Optimize service availability by

mitigating risks to network components

Physical infrastructure

Provide actionable intelligence on the desired state of physical infrastructure security and make improvements

Professional services

Managed services Hardware and

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IBM Cloud Computing

What differentiates IBM in making cloud computing real

IBM provides clear economic value and helps you work through the right mix of delivery models and choices (by workload) to reap the maximum benefit.

IBM supports

industry standards, has over 8 million developers, and provides a platform for open innovation.

IBM provides Cloud solutions that are completely robust and secure, based on the demanding needs of today’s businesses: rapid provisioning, clear visibility of assets, robust data governance, and seamless mix of delivery models. From sourcing to usage to maintenance, IBM Cloud solutions are designed to be simple, intuitive, and built based on how people

actually work.

IBM has partners, delivery centers, and a world-wide network of partners in 174 countries. And we have the experience of running a globally integrated enterprise, so we understand what it takes to make a global company run. Clear economic value Integrated and open Secure and ready for business Designing for simplicity Globally relevant New economics with new trade-offs Business flexibility results from IT flexibility Demanding greater speed, control, security and transparency New technology experiences with faster time to market

Need solutions that work and are supported consistently.

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Businesses that implement cloud computing are seeing

significant results

Reduced IT labor cost by 50 percent in configuration,

operations, management and monitoring

Improved capital utilization by 75 percent, significantly reducing license costs

Reduced provisioning cycle times from weeks to

minutes

Improved quality, eliminating 30 percent of software defects

Reduced end user IT support costs by up to 40 percent

Simplified security management

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IBM Cloud Computing

Taking new capabilities to the marketplace faster

Established company as leader in industry

Enabled customers and business partners to leverage new models more easily and increased company

revenue with new models

Improve new service development time, achieving faster time to market

Improved efficiencies of resources, delivering reduction in CapEx & OpEx

Solution

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Saving money to invest in education

Pike County Schools avoided the cost of replacing 1,400 workstations by deploying a virtual desktop solution on the IBM cloud Achieved cost savings of more than 60% Increased security

Reduced SW license and overall maintenance costs

Solution

IBM Smart Business Desktop on the IBM Cloud

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IBM Cloud Computing

In summary …

Cloud is a key way to address the challenges of a smarter planet and differentiate your capabilities from competition

Cloud is leaving the corporate back-office; distinct industry Clouds drive business transformation and new workloads

Security and privacy remain the number one concern and inhibitor Cloud is about partnership and

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Using Cloud to Deliver Innovation and Efficiency

IBM Northeast Europe