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IT Security, Management and Infrastructure Extensions to Maximize SOA Value

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IT Security, Management and Infrastructure Extensions to Maximize SOA Value

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    1. IT Security, Management and Infrastructure Extensions to Maximize SOA Value Rich Lechner Vice President, IT Optimization

    2. 2 Agenda SOA impact on IT infrastructure Extending IT security for SOA Service management for SOA Flexible IT infrastructure for SOA Establishing an IT infrastructure roadmap for SOA Why IBM?

    3. 3 SOA impact on IT infrastructure

    4. 4 How SOA Affects the IT Lifecycle Main Point: SOA adds a significant level of complexity to the IT lifecycle, from model, build, deploy and manage. It brings an added element of abstraction to every facet. And in this world of composite applications, the issues of identity, quality, performance etc. all take on new facets. Main Point: SOA adds a significant level of complexity to the IT lifecycle, from model, build, deploy and manage. It brings an added element of abstraction to every facet. And in this world of composite applications, the issues of identity, quality, performance etc. all take on new facets.

    5. 5 Meeting the Infrastructure for SOA challenge

    6. 6 Identity Integration Challenges in SOA Let’s focus in a bit on one of the greatest security challenges related to SOA which is the issue of identity propagation. In an SOA environment, both users and applications are considered identities. Applications have identities which are then propagated across a service. Thus now users and applications are subject to the same security controls. A corporation typically has a number of systems and applications where their users need identities. The user needs to sign-on to his/her workstation, possibly again to their corporate intranet, and may need to sign-on again to the back-end systems. These sign-ins may need multiple identities, which needs to be managed as well as the user needs to remember all of them. But IT operations has limited visibility to (web) services, including accessibility. Tivoli Access Manager and Tivoli Federated Identity Manager can provide the identity propagation capabilities needed in an SOA environment.Let’s focus in a bit on one of the greatest security challenges related to SOA which is the issue of identity propagation. In an SOA environment, both users and applications are considered identities. Applications have identities which are then propagated across a service. Thus now users and applications are subject to the same security controls. A corporation typically has a number of systems and applications where their users need identities. The user needs to sign-on to his/her workstation, possibly again to their corporate intranet, and may need to sign-on again to the back-end systems. These sign-ins may need multiple identities, which needs to be managed as well as the user needs to remember all of them. But IT operations has limited visibility to (web) services, including accessibility. Tivoli Access Manager and Tivoli Federated Identity Manager can provide the identity propagation capabilities needed in an SOA environment.

    7. 7 Extending Security for SOA Identity, Assurance and Compliance Main point: An SOA environment increases the number of identities to manage, the number of enforcement points and the types of threats that can be encountered. Therefore extending security for SOA means focusing on Identity Management and Service Assurance. And since compliance with regulations and service level agreements remains a focus for today’s enterprise, company’s must find ways to ensure auditability despite the composable nature of the environment. Organizational/enterprise boundaries Perimeter is obscure Identities are managed across boundaries Trust relationships are established across boundaries Composite applications Ensuring proper security controls are enacted for each service and when used in combination Greater focus on data/information Protecting data at transit and at rest Apply consistent protection measures Access to data by applications and services Governance, Risk, and Compliance Auditing ie. entity identification to specific transactions Main point: An SOA environment increases the number of identities to manage, the number of enforcement points and the types of threats that can be encountered. Therefore extending security for SOA means focusing on Identity Management and Service Assurance. And since compliance with regulations and service level agreements remains a focus for today’s enterprise, company’s must find ways to ensure auditability despite the composable nature of the environment. Organizational/enterprise boundaries Perimeter is obscure Identities are managed across boundaries Trust relationships are established across boundaries Composite applications Ensuring proper security controls are enacted for each service and when used in combination Greater focus on data/information Protecting data at transit and at rest Apply consistent protection measures Access to data by applications and services Governance, Risk, and Compliance Auditing ie. entity identification to specific transactions

    8. 8 SOA Security Management Offerings from IBM IBM Tivoli® Federated Identity Manager Business Gateway is the ideal entry point for establishing federated Web SSO capabilities. Built especially for small-to-midsize organizations, this powerful collaboration software uses open standards to bring together customers, partners and suppliers—with a single, easy-to-deploy application that provides a smooth migration pathway to an enterprise-level application. IBM Tivoli Federated Identity Manager on z/OS allows you to connect your web services back to the mainframe by enabling identity propagation from end to end. The Consul InSight™ Suite is our newly acquired audit and compliance management software, providing an enterprise compliance dashboard and reporting. InSight provides continuous assurance and documentation that your data and systems are being managed in-line with company and regulatory policies. ITCAM System Edition for DataPower enables Unified and Centralized policy rollback, synchronization & policy propagation to device clusters giving organization simplified security and policy management across their SOA infrastructure along with robust multi-box management capabilities for DataPower SOA appliances. ISS Managed Services (newly acquired) which enables customers who want SOA environmetns, but do not have the bandwidth to monitor security 24x7, use an outsourced solution for monitoring and reporting. WebSphere DataPower XML Security Gateway XS40 enhancements: Integration with our WebSphere Service Registry and Repository enabling high-performant, dynamic and reliable policy and security enforcement across deployed services. And, when combined with ITCAM for SOA, this solution provides organization with unmatched, end-to-end SOA management, service level management and runtime governance from a single vendor. DataPower expanded its impressive standards capabilities with support for WS-Security 1.1 helping companies to better secure their services and increase interoperability across their business IBM Tivoli® Federated Identity Manager Business Gateway is the ideal entry point for establishing federated Web SSO capabilities. Built especially for small-to-midsize organizations, this powerful collaboration software uses open standards to bring together customers, partners and suppliers—with a single, easy-to-deploy application that provides a smooth migration pathway to an enterprise-level application. IBM Tivoli Federated Identity Manager on z/OS allows you to connect your web services back to the mainframe by enabling identity propagation from end to end. The Consul InSight™ Suite is our newly acquired audit and compliance management software, providing an enterprise compliance dashboard and reporting. InSight provides continuous assurance and documentation that your data and systems are being managed in-line with company and regulatory policies. ITCAM System Edition for DataPower enables Unified and Centralized policy rollback, synchronization & policy propagation to device clusters giving organization simplified security and policy management across their SOA infrastructure along with robust multi-box management capabilities for DataPower SOA appliances. ISS Managed Services (newly acquired) which enables customers who want SOA environmetns, but do not have the bandwidth to monitor security 24x7, use an outsourced solution for monitoring and reporting. WebSphere DataPower XML Security Gateway XS40 enhancements: Integration with our WebSphere Service Registry and Repository enabling high-performant, dynamic and reliable policy and security enforcement across deployed services. And, when combined with ITCAM for SOA, this solution provides organization with unmatched, end-to-end SOA management, service level management and runtime governance from a single vendor. DataPower expanded its impressive standards capabilities with support for WS-Security 1.1 helping companies to better secure their services and increase interoperability across their business

    9. 9 Service Management Challenges in SOA SOA helps enable innovation and rapid change, but … Maintain performance and availability through unpredictable demand Have visibility and control of services and their underlying components Control change and release of interconnected services Resolve problems within the multiple services layers Main point: Implementation of SOA services placed new service management challenges on IT How do you predict demand and maintain performance and availability with new dynamic usage patterns? How do you ensure and deliver Quality of Service that depends on more, different and dynamic resources? How do you manage complex relationship of services, resources & configurations; Quality of Service = Performance, Availability, Prioritization of resources to meet SLA, Optimization of resources How do you deploy new interdependent services, while ensuring the quality of service of other services and composite applications? How do you and track the on-going changes and keep track of all configurations and service dependencies? How do you inhibit the increasing costs of management this environment? How do you identify and deploy the components and ensure Integrity of SOA services with its existing relationships? How do you monitor, manage and prioritize performance, availability of interdependent services, applications and resources? How do you check the proliferation of duplicate or overlapping services? How do we coordinate problem resolution across all parts of the organization?” Main point: Implementation of SOA services placed new service management challenges on IT How do you predict demand and maintain performance and availability with new dynamic usage patterns? How do you ensure and deliver Quality of Service that depends on more, different and dynamic resources? How do you manage complex relationship of services, resources & configurations; Quality of Service = Performance, Availability, Prioritization of resources to meet SLA, Optimization of resources How do you deploy new interdependent services, while ensuring the quality of service of other services and composite applications? How do you and track the on-going changes and keep track of all configurations and service dependencies? How do you inhibit the increasing costs of management this environment? How do you identify and deploy the components and ensure Integrity of SOA services with its existing relationships? How do you monitor, manage and prioritize performance, availability of interdependent services, applications and resources? How do you check the proliferation of duplicate or overlapping services? How do we coordinate problem resolution across all parts of the organization?”

    10. 10 Service Management for SOA Insight, Visibility, and Control Main point: To address these potential management challenges and ensure the success of your SOA implementations, clients need to: Manage and automate processes Manage application service levels Predict and manage change that is inherent in SOA environments Manage and automate processes Service management of SOA requires automation of horizontal processes that can be executed consistently to deploy or release new services. Horizontal processes that span across organizational and skill set boundaries. Similarly for the ongoing management of the availability and performance of these services clients need automated process managers like Availability management process manager and performance management process managers. Manage Application Service Levels Clients need end-to-end visibility into SOA services and their interaction with shared resources. Visibility into message content, transaction workflows & flow patterns and the ability to identify and isolate performance bottlenecks across technology and platform boundaries are essential to monitoring and delivering the specified service levels for each SOA based service. Predict and Manage Change As SOA services are assembled from existing applications and services, they share the underlying applications and IT resources. Any change made to one service could impact other services in unforeseen and unexpected ways. To maintain complete control and create a map of these dependencies and relationships; Clients need a Configuration Management Database. The CMDB can serve as a single version of truth to facilitate the introduction of any change in the environment so as to ensure that the services continue to deliver to their SLAs. The CMDB can provide a consistent view of the SOA services deployed in the environment and its mapping to other services, applications and IT resources. It can help discover relationship and inter-dependencies of various SOA services and when any change is introduced into the environment it can help clients predict the IT and the business impact of that change.Main point: To address these potential management challenges and ensure the success of your SOA implementations, clients need to: Manage and automate processes Manage application service levels Predict and manage change that is inherent in SOA environments Manage and automate processes Service management of SOA requires automation of horizontal processes that can be executed consistently to deploy or release new services. Horizontal processes that span across organizational and skill set boundaries. Similarly for the ongoing management of the availability and performance of these services clients need automated process managers like Availability management process manager and performance management process managers. Manage Application Service Levels Clients need end-to-end visibility into SOA services and their interaction with shared resources. Visibility into message content, transaction workflows & flow patterns and the ability to identify and isolate performance bottlenecks across technology and platform boundaries are essential to monitoring and delivering the specified service levels for each SOA based service. Predict and Manage Change As SOA services are assembled from existing applications and services, they share the underlying applications and IT resources. Any change made to one service could impact other services in unforeseen and unexpected ways. To maintain complete control and create a map of these dependencies and relationships; Clients need a Configuration Management Database. The CMDB can serve as a single version of truth to facilitate the introduction of any change in the environment so as to ensure that the services continue to deliver to their SLAs. The CMDB can provide a consistent view of the SOA services deployed in the environment and its mapping to other services, applications and IT resources. It can help discover relationship and inter-dependencies of various SOA services and when any change is introduced into the environment it can help clients predict the IT and the business impact of that change.

    11. 11 SOA Service Management Offerings from IBM ITCAM for SOA v6.1 enhancements Support for monitoring service flows through WebSphere Message Broker to quickly identify problems; Launch in context from services view to OMEGAMON XE for Messaging for in depth analysis; Views by service requestor for chargeback and service level reporting - This provides customers the ability to view service requests aggregated by service/operation/requester. ITCAM for Web Resources (GA 6/15) Provides more affordable and less complex J2EE application monitoring solution directed to IT Operations and Application Administrators who want to quickly identify, isolate problems and route to the appropriate SME Resource monitoring because it will stop the internal finger pointing, eliminating the need for tiger teams. To centralize monitoring to reduce reliance on SMEs (so they can create code). Provides a summary view of applications to give operators and administrators, at a glance, the ability to see where the problem is located (client tier, application tier or backend tier). Drill down by tier to view at a glance whether the problem is related to memory leak, resource pool issue, etc. Integrates with Tivoli Enterprise Portal (same intuitive user interface used by ITCAM for SOA and ITCAM for Response Time) to quickly identify, isolate, and resolve application problems. ITCAM for Response Time (GA 6/15) Tivoli Enterprise Portal (TEP) based solution that provides IT Operations with both real time and robotic monitoring of the end user response time experience to help quickly identify SLA breaches and to help proactively prevent future violations. Coverage for both Web and Windows applications using both robotic and real-time analysis. Seamless Integration with the Tivoli Enterprise Portal (TEP), a portal-based customizable user interface that can bring together response time data from ITCAM for RT and IBM Tivoli Monitoring (ITM) resource data in an easy-to-use interface to quickly identify what resource bottlenecks are impacting the end user experience ITCAM for SOA v6.1 enhancements Support for monitoring service flows through WebSphere Message Broker to quickly identify problems; Launch in context from services view to OMEGAMON XE for Messaging for in depth analysis; Views by service requestor for chargeback and service level reporting - This provides customers the ability to view service requests aggregated by service/operation/requester. ITCAM for Web Resources (GA 6/15) Provides more affordable and less complex J2EE application monitoring solution directed to IT Operations and Application Administrators who want to quickly identify, isolate problems and route to the appropriate SME Resource monitoring because it will stop the internal finger pointing, eliminating the need for tiger teams. To centralize monitoring to reduce reliance on SMEs (so they can create code). Provides a summary view of applications to give operators and administrators, at a glance, the ability to see where the problem is located (client tier, application tier or backend tier). Drill down by tier to view at a glance whether the problem is related to memory leak, resource pool issue, etc. Integrates with Tivoli Enterprise Portal (same intuitive user interface used by ITCAM for SOA and ITCAM for Response Time) to quickly identify, isolate, and resolve application problems. ITCAM for Response Time (GA 6/15) Tivoli Enterprise Portal (TEP) based solution that provides IT Operations with both real time and robotic monitoring of the end user response time experience to help quickly identify SLA breaches and to help proactively prevent future violations. Coverage for both Web and Windows applications using both robotic and real-time analysis. Seamless Integration with the Tivoli Enterprise Portal (TEP), a portal-based customizable user interface that can bring together response time data from ITCAM for RT and IBM Tivoli Monitoring (ITM) resource data in an easy-to-use interface to quickly identify what resource bottlenecks are impacting the end user experience

    12. 12 Integrate the IT processes - drives integration across the It resources Process integration, decoupled processes and applications from a rigid infrastructureIntegrate the IT processes - drives integration across the It resources Process integration, decoupled processes and applications from a rigid infrastructure

    13. 13 Key Flexible Infrastructure Characteristics for SOA Why does hardware matter to SOA? I thought SOA was supposed to be hardware independent…..so why even have this discussion? To answer these questions, lets take a look at some of the characteristics required by an SOA Infrastructure. First, the infrastructure must have platform flexibility, while SOA adds flexibility, it also puts flexibility demands on the hardware infrastructure. The infrastructure must be able to adapt to changing business needs. And in today’s world that means taking advantage of the flexibility available from IBM systems. This flexibility comes in the form of virtualization for Servers, Storage and Workload. And the ability for IBM to provide the complete end to end infrastructure solution, whether it is scale up and scale out…..blades, rack or tower….Unix, Linux, Windows, I5/OS or z/OS. In addition, the infrastructure must be able to dynamically adjust…this could mean quickly and easily provisioning new servers and/or adding new processor capacity on demand and/or having an efficient workload manager. Again, you will find these features across the IBM Systems. Next the infrastructure for SOA must provide a Quality of Service that is second to none. Key items to consider when evaluating quality of service are performance, availability and security. With IBM Systems, performance is their middle name….no matter which system the client chooses, the server, Operating System and many applications have been tuned to provide optimum performance and price/performance. This is especially seen in the IBM developed and manufactured processors used in System z, p, i and storage. With SOA implementations, the availability of the infrastructure has reached a entirely new level, every service is important. Clients can no longer afford any of their systems to go down. In fact, Alinean reports that a minute of downtime costs $1000 for messaging and $10,000 for E-commerce. Only with IBM Systems (p and z) can you get five 9’s reliability, meaning 99.999% reliability……99.999% means that the server is down 5 minutes per year (and our servers make that 5 minutes invisible to the customer). Versus a competitor who is at 99.9% (which is considered much better than average) their server is down almost 9 hours a year....if you do the math that’s a difference of over $350K per year. Availability also means autonomic computing and having disaster recovery solutions that reduce the impact of unexpected outages. Security, means no wink links in the SOA security chain…. IBM systems provide integrated system wide security, including Crytographic technology (z and p), Encryption and Multi-level security. Finally, the infrastructure for SOA must be manageable and provide value to the client. By manageability, I mean proactive management and control for the infrastructure, which includes advanced predictive capabilities and highly manageable hardware as well as management tools, like the IBM Systems Director Family. Manageability also means being able to manage workloads in a heterogeneous environment, whether it is on new systems, old systems or even non-IBM systems. These tools must be cross-platform, consistent and easy to use. When considering value, IBM Systems have a lot to offer…..from virtualization that allows clients to consolidate workloads. Which means less power, less cooling, less floor space, fewer software license and even fewer servers – providing tremendous value to the client. In addition, with the advent of “Cool Blue”, IBM is able to provide better utilization of the available power and cooling. On the next slide we will take a look at some of the key differentiators that IBM Systems provide………Why does hardware matter to SOA? I thought SOA was supposed to be hardware independent…..so why even have this discussion? To answer these questions, lets take a look at some of the characteristics required by an SOA Infrastructure. First, the infrastructure must have platform flexibility, while SOA adds flexibility, it also puts flexibility demands on the hardware infrastructure. The infrastructure must be able to adapt to changing business needs. And in today’s world that means taking advantage of the flexibility available from IBM systems. This flexibility comes in the form of virtualization for Servers, Storage and Workload. And the ability for IBM to provide the complete end to end infrastructure solution, whether it is scale up and scale out…..blades, rack or tower….Unix, Linux, Windows, I5/OS or z/OS. In addition, the infrastructure must be able to dynamically adjust…this could mean quickly and easily provisioning new servers and/or adding new processor capacity on demand and/or having an efficient workload manager. Again, you will find these features across the IBM Systems. Next the infrastructure for SOA must provide a Quality of Service that is second to none. Key items to consider when evaluating quality of service are performance, availability and security. With IBM Systems, performance is their middle name….no matter which system the client chooses, the server, Operating System and many applications have been tuned to provide optimum performance and price/performance. This is especially seen in the IBM developed and manufactured processors used in System z, p, i and storage. With SOA implementations, the availability of the infrastructure has reached a entirely new level, every service is important. Clients can no longer afford any of their systems to go down. In fact, Alinean reports that a minute of downtime costs $1000 for messaging and $10,000 for E-commerce. Only with IBM Systems (p and z) can you get five 9’s reliability, meaning 99.999% reliability……99.999% means that the server is down 5 minutes per year (and our servers make that 5 minutes invisible to the customer). Versus a competitor who is at 99.9% (which is considered much better than average) their server is down almost 9 hours a year....if you do the math that’s a difference of over $350K per year. Availability also means autonomic computing and having disaster recovery solutions that reduce the impact of unexpected outages. Security, means no wink links in the SOA security chain…. IBM systems provide integrated system wide security, including Crytographic technology (z and p), Encryption and Multi-level security. Finally, the infrastructure for SOA must be manageable and provide value to the client. By manageability, I mean proactive management and control for the infrastructure, which includes advanced predictive capabilities and highly manageable hardware as well as management tools, like the IBM Systems Director Family. Manageability also means being able to manage workloads in a heterogeneous environment, whether it is on new systems, old systems or even non-IBM systems. These tools must be cross-platform, consistent and easy to use. When considering value, IBM Systems have a lot to offer…..from virtualization that allows clients to consolidate workloads. Which means less power, less cooling, less floor space, fewer software license and even fewer servers – providing tremendous value to the client. In addition, with the advent of “Cool Blue”, IBM is able to provide better utilization of the available power and cooling. On the next slide we will take a look at some of the key differentiators that IBM Systems provide………

    14. 14 End-to-end Virtualization Main point: Let's take a closer look at the virtualization technology in WebSphere XD and the benefits from using those capabilities in your IT infrastructure. We’ll start with the workload virtualization technology. Dynamic cluster is a set of virtual servers similar to a static cluster, but with a crucial difference in that the number and placement of cluster members may vary over time. WebSphere XD will share these resources across the application workload. The enhanced service workload management capabilities of WebSphere Extended Deployment ensure that user requests are classified, prioritized, queued and routed to servers based on application operational policies which are tied to business goals. Application performance is optimized according to these policies that reflect service level goals and relative importance to the organization. When new applications are added it doesn’t necessarily mean that new server hardware has to be deployed, if resources are available in the pool. Application Edition Manager enables interruption-free deployment and management of application versions. This capability lets you apply application updates to a production environment with no downtime. The Application Edition Manager also provides an application versioning model that supports multiple deployments of the same application in a WebSphere cell, each distinguished by a unique edition number. The benefits of Workload Virtualization include: Server resources can be used more effectively by establishing a shared pool of servers and allowing WebSphere XD to place work requests according to agreed upon service goals. Constant monitoring of application progress against service goals allows WebSphere XD to quickly adapt to workload changes. By managing the servers as a shared resource pool WebSphere XD can drive up utilization across the pool to achieve SLA’s under demanding workload situations. To improve manageability of virtualized and heterogeneous environments through real-time insight into utilization and health WebSphere Extended Deployment delivers visual operational and health monitoring capabilities for proactive detection and correction of application and server issues. This allows operators to see at a glance what is happening in the infrastructure and the relative health of the application resources. Actions necessary to keep applications on track can be automated or handled manually by operators. Now, let’s look at the information virtualization technology. ObjectGrid: this feature provides a customizable, pluggable object caching framework that allows applications to share object data using a variety of consistency models. Object data can be application data retrieved from a common data source such as a database or file system, or short living objects such as session data (for example, shopping cart information). Objects can be stored in the grid and then accessed from multiple applications, reducing the number of trips to the data source and avoiding the cost of repeatedly recreating objects. Additionally, if one server fails in the ObjectGrid, other servers in the grid will have the object cached and can supply the object with little or no loss of service. The ObjectGrid is available as a feature in WebSphere XD or as a standalone product capable of executing within any J2EE or J2SE JVM running on at least J2SE 1.4 JDK. The WebSphere XD partitioning facility allows you to design applications that divide logic and data into partitions which can be mapped to available servers. This allows you to cache information much more efficiently than if the request had gone to a random server. The partitions can be adjusted to provide better performance or to account for a server that becomes unavailable. Together with sophisticated algorithms to manage the workload, these techniques using WebSphere Extended Deployment may allow you to achieve near-linear scalability as the transaction load increases and very fast recovery time in the event that a server should go down. The benefits of information virtualization include: Reduced load on backend data store providing a way to offload work from the data tier. Improving transaction throughput and response time. As transactions execute in memory without the need to do time-costly I/O operations the ability to drive higher transaction volumes increases. Achieve near-linear scalability by combining Objectgrid caching with application partitioning via the partitioning facility. Constant tuning won’t be required to meet growing application volumes. Instead, WebSphere XD’s high performance OLTP features can enable you to meet growing workload demands. For IT executives who need a flexible, scalable, highly available foundation for their Web applications, the GTS offering, Web infrastructure optimization and virtualization, decreases the risk and improves the time to value for designing and implementing a business grid environment based on IBM WebSphere® Extended Deployment software. Main point: Let's take a closer look at the virtualization technology in WebSphere XD and the benefits from using those capabilities in your IT infrastructure. We’ll start with the workload virtualization technology. Dynamic cluster is a set of virtual servers similar to a static cluster, but with a crucial difference in that the number and placement of cluster members may vary over time. WebSphere XD will share these resources across the application workload. The enhanced service workload management capabilities of WebSphere Extended Deployment ensure that user requests are classified, prioritized, queued and routed to servers based on application operational policies which are tied to business goals. Application performance is optimized according to these policies that reflect service level goals and relative importance to the organization. When new applications are added it doesn’t necessarily mean that new server hardware has to be deployed, if resources are available in the pool. Application Edition Manager enables interruption-free deployment and management of application versions. This capability lets you apply application updates to a production environment with no downtime. The Application Edition Manager also provides an application versioning model that supports multiple deployments of the same application in a WebSphere cell, each distinguished by a unique edition number. The benefits of Workload Virtualization include: Server resources can be used more effectively by establishing a shared pool of servers and allowing WebSphere XD to place work requests according to agreed upon service goals. Constant monitoring of application progress against service goals allows WebSphere XD to quickly adapt to workload changes. By managing the servers as a shared resource pool WebSphere XD can drive up utilization across the pool to achieve SLA’s under demanding workload situations. To improve manageability of virtualized and heterogeneous environments through real-time insight into utilization and health WebSphere Extended Deployment delivers visual operational and health monitoring capabilities for proactive detection and correction of application and server issues. This allows operators to see at a glance what is happening in the infrastructure and the relative health of the application resources. Actions necessary to keep applications on track can be automated or handled manually by operators. Now, let’s look at the information virtualization technology. ObjectGrid: this feature provides a customizable, pluggable object caching framework that allows applications to share object data using a variety of consistency models. Object data can be application data retrieved from a common data source such as a database or file system, or short living objects such as session data (for example, shopping cart information). Objects can be stored in the grid and then accessed from multiple applications, reducing the number of trips to the data source and avoiding the cost of repeatedly recreating objects. Additionally, if one server fails in the ObjectGrid, other servers in the grid will have the object cached and can supply the object with little or no loss of service. The ObjectGrid is available as a feature in WebSphere XD or as a standalone product capable of executing within any J2EE or J2SE JVM running on at least J2SE 1.4 JDK. The WebSphere XD partitioning facility allows you to design applications that divide logic and data into partitions which can be mapped to available servers. This allows you to cache information much more efficiently than if the request had gone to a random server. The partitions can be adjusted to provide better performance or to account for a server that becomes unavailable. Together with sophisticated algorithms to manage the workload, these techniques using WebSphere Extended Deployment may allow you to achieve near-linear scalability as the transaction load increases and very fast recovery time in the event that a server should go down. The benefits of information virtualization include: Reduced load on backend data store providing a way to offload work from the data tier. Improving transaction throughput and response time. As transactions execute in memory without the need to do time-costly I/O operations the ability to drive higher transaction volumes increases. Achieve near-linear scalability by combining Objectgrid caching with application partitioning via the partitioning facility. Constant tuning won’t be required to meet growing application volumes. Instead, WebSphere XD’s high performance OLTP features can enable you to meet growing workload demands. For IT executives who need a flexible, scalable, highly available foundation for their Web applications, the GTS offering, Web infrastructure optimization and virtualization, decreases the risk and improves the time to value for designing and implementing a business grid environment based on IBM WebSphere® Extended Deployment software.

    15. 15 Flexible deployment options

    16. 16 Meeting the Infrastructure for SOA challenge

    17. 17 As SOA Evolves, so must the Infrastructure…….. One way to view this shift is in context of increasing levels of SOA maturity, the underlying infrastructure needs to change and adapt as well to ensure the flexibility from top to bottom. IBM's SOA integration Maturity Model or SIMM in short, is well established and used by our practitioners with our customers to help them understand the four stages of evolution and create that roadmap in how to implement and improve in stages. There are three dimensions in each stage which one needs to consider, Applications and Infrastructure and the architecture which brings it together. For e.g. customers who are just beginning to think about SOA, have dedicated infrastructure for each business application and a point to point hard coded connection between applications as well as applications and infrastructure. next stage then is when they have services implemented in applications but, still not dynamic or running independently but, still not implemented on a real SOA. Then one evolves to the composite stage where a few of the most advanced customers are today in having implemented a good SOA environment which allows for web services to be independently run and business processes to be created by manually assembling those services with some level of dynamic pairing. These would run on top of virtualized and hence flexible infrastructures. And the last stage here is what I would call nirvana, where the application processes are dynamically constructed on the fly per the needs defined in each services to yield real-time flexible business processes running on top of self-adjusted and orchestrated infrastructure. You have to also keep in mind that the maturity of the applications, architectures and infrastructures could be at varying stages for each customer. Most advanced customers today are somewhat in the composite stage, if you will in industries like Banking, Insurance and select Public sectors. Some examples are Harley Davidson, State of Texas, Cardis ,UPMC, GE Money, etc. Transition Line: So, lets now look at how IBM's asset and best practice based services help customers define their strategy and plan, design and architect and implement and test their SOA flexible infrastructures on the next few pages... One way to view this shift is in context of increasing levels of SOA maturity, the underlying infrastructure needs to change and adapt as well to ensure the flexibility from top to bottom. IBM's SOA integration Maturity Model or SIMM in short, is well established and used by our practitioners with our customers to help them understand the four stages of evolution and create that roadmap in how to implement and improve in stages. There are three dimensions in each stage which one needs to consider, Applications and Infrastructure and the architecture which brings it together. For e.g. customers who are just beginning to think about SOA, have dedicated infrastructure for each business application and a point to point hard coded connection between applications as well as applications and infrastructure. next stage then is when they have services implemented in applications but, still not dynamic or running independently but, still not implemented on a real SOA. Then one evolves to the composite stage where a few of the most advanced customers are today in having implemented a good SOA environment which allows for web services to be independently run and business processes to be created by manually assembling those services with some level of dynamic pairing. These would run on top of virtualized and hence flexible infrastructures. And the last stage here is what I would call nirvana, where the application processes are dynamically constructed on the fly per the needs defined in each services to yield real-time flexible business processes running on top of self-adjusted and orchestrated infrastructure. You have to also keep in mind that the maturity of the applications, architectures and infrastructures could be at varying stages for each customer. Most advanced customers today are somewhat in the composite stage, if you will in industries like Banking, Insurance and select Public sectors. Some examples are Harley Davidson, State of Texas, Cardis ,UPMC, GE Money, etc. Transition Line: So, lets now look at how IBM's asset and best practice based services help customers define their strategy and plan, design and architect and implement and test their SOA flexible infrastructures on the next few pages...

    18. 18 Evolving Client’s Infrastructure requires End-to-end Approach along with Implementation of Key Technologies Key Point: Core competence! We have been doing this for years. Best practices and IP to support! IBM specializes in helping customers define their strategy and plan, design and architect and implement and test their SOA flexible infrastructures. We do this based on having developed best practices based on decades of experience with IT processes, architectures, etc. for e.g. IBM was the key contributor to the first two books on ITIL (IT Infrastructure Library). Not only that but, we also have best practices based IT process models which not only use ITIL but, also adapt from other such models like CoBIT, Six-sigma, e-TOM, etc. This is a key point. (So, net-net- need to emphasize this because, HP will be talking about ITIL v3 soon and we need to pre-empt that). Transition line: In support of this approach, IBM provides a set of complementary services to help clients answer these questions. Additional Detail: Here are some example questions that a client should ask as he is looking to transition his infrastructure to support SOA. Strategy and Planning: How can your existing assets and systems be enhanced to fully maximize the benefits of SOA. What are opportunities where infrastructure innovation with new technologies like service virtualization can complement SOA and achieve maximum flexibility? Architecture and Design: How do you create an end-to-end systems architecture along with transition plan and operational model to evolve your infrastructure? Test and Implementation : How will I implement a scaleable and high performing middleware infrastructure and backbone to support my new SOA business services? Key Point: Core competence! We have been doing this for years. Best practices and IP to support! IBM specializes in helping customers define their strategy and plan, design and architect and implement and test their SOA flexible infrastructures. We do this based on having developed best practices based on decades of experience with IT processes, architectures, etc. for e.g. IBM was the key contributor to the first two books on ITIL (IT Infrastructure Library). Not only that but, we also have best practices based IT process models which not only use ITIL but, also adapt from other such models like CoBIT, Six-sigma, e-TOM, etc. This is a key point. (So, net-net- need to emphasize this because, HP will be talking about ITIL v3 soon and we need to pre-empt that). Transition line: In support of this approach, IBM provides a set of complementary services to help clients answer these questions. Additional Detail: Here are some example questions that a client should ask as he is looking to transition his infrastructure to support SOA. Strategy and Planning: How can your existing assets and systems be enhanced to fully maximize the benefits of SOA. What are opportunities where infrastructure innovation with new technologies like service virtualization can complement SOA and achieve maximum flexibility? Architecture and Design: How do you create an end-to-end systems architecture along with transition plan and operational model to evolve your infrastructure? Test and Implementation : How will I implement a scaleable and high performing middleware infrastructure and backbone to support my new SOA business services?

    19. 19 GTS provides new and enhanced services to help clients transition their IT Infrastructure in support of SOA So, this is what we are announcing today, services which help customers with each phase of their journey to implement flexible infrastructures. lets look at some more detail on each one on the following pages. Web Infrastructure Optimization and Virtualization services IBM Application Infrastructure Services for Web infrastructure optimization and virtualization can help clients decrease the time to value and lower the risk of designing, building and deploying a business grid environment based on IBM WebSphere® Extended Deployment software. It offers clients access to skilled IBM consultants who will help them increase the performance and reduce the complexity of their application-hosting infrastructure by optimizing their existing resources. The result is a more cost-effective and efficient infrastructure that can better support current and future business needs.Typical engagements pay for themselves in less than a year by reducing the overall cost of operating and maintaining the existing application-hosting infrastructure as well as reducing the need for additional infrastructure elements to handle the increased load. This is realized via the sophisticated and proven methodologies of IBM Global Services and IBM WebSphere Extended Deployment software.Client business needs As organizations race to keep up with changing customer and industry demands, they find themselves needing infrastructures that can support their fluctuating requirements. While adding new servers to their environments is one way to increase functionality and contain growth, it can also increase costs and complexity. Instead, organizations need more cost-effective options that allow them to increase the productivity of their existing resources and help ensure that they can scale as needed. Web infrastructure optimization and virtualization is ideal for organizations that want to: Reduce costs by balancing workload across underutilized servers Enable high availability and improved performance for mission-critical applications Allow users to maintain predictable quality of service consistent with business priorities Now two other services from GTS - Server and Storage Virtualization Services: Server Virtualization Services Services Benefits include: Higher success rate The more carefully a solution is tested before rollout, the greater the likelihood it will function as planned—and deliver the anticipated results Faster deployment Our experienced professionals and careful methodology can spot and correct potential problems early in the process, so you may be able to get your new technology working for your business more quickly than you expected Reduced infrastructure complexity All of the tools and practices used are aligned with ITIL, so you get the benefit of industry wide best practices and the potential to simplify management of your IT infrastructure through open systems and common methods Reduced errors and risk Careful testing and analysis throughout the implementation process can reduce new-technology risk and minimize production errors. Tested, validated business value Our carefully developed process includes measurable validation of your business objectives every step of the way—to help ensure that your implemented solution delivers on its promises What makes us stand out? Our process. Testing, testing and testing again Every solution you implement with IBM Emerging Server Technology Services – server virtualization solutions for implementation is checked, analyzed and rechecked at every stage of the implementation process to speed deployment, reduce risk and smooth the transition to production rollout Comprehensive and integrated IBM Emerging Server Technology Services – server virtualization solutions for implementation is part of a comprehensive, plan-to-deployment set of offerings from IBM Global Services. All designed to put in place the tools, processes and technology capabilities that enable a more flexible, responsive infrastructure Singular focus on business goals Our experts and methods measure implementation success not just by whether you achieve a successful rollout but also by whether you successfully realize your end business goals ----------------------------------------------------------------------------------------------------------------------------------------------------- Storage Virtualization Services What’s involved in a storage virtualization project? We typically work across four major activities, in going from solution framing through implementation. First, we work with clients to ensure there’s a complete understanding of the current environment and objectives for virtualization. This typically leads to a view of the future IT environment and what gaps need to be overcome in order to reach this state We then define the target architecture, or overall virtualization appraoch This typically involves clients wanting to achieve the following: Combine the capacity from multiple heterogeneous storage systems into a single reservoir of storage that can be managed from a central point Enable changes to the physical storage systems with minimal or no impact to the applications running on the hosts Reduce downtime for planned and unplanned outages, maintenance and backups Increase storage capacity utilization, uptime, administrator productivity and efficiency Once we’ve confirmed the approach which is appropriate for the client’s specific needs (this is typically tailored off best practice designs), we build a detailed architecture and deployment plan. These are important not only for clarity, to enable high quality deployment. The also help ensure that the solution decisions are grounded in a financial case, which makes business and IT sense. We try to help avoid surprises in pilots or overall implementation which affect budget, timing or the nature of the solution. In deployment, once the key components for virtualization are installed and tested (this is typically new storage hw and/or software), we usually are asked to help plan and then migrate data from source to target environment -- into the storage virtualization pools Finally we take care to ensure there is a well designed and clear, structured set of processes for system management - enable automated administration of the environment Client Benefits from Storage Virtualization 1. Reduction in storage management complexity. Since all heterogeneous arrays present volumes to the virtualization layer, ongoing management takes place in a single console 2. Increased capacity utilization. In a virtualized environment, volumes can span different physical systems and applications can access storage on multiple machines without performance problems. The result? It becomes much easier to use the entire disk, rather than leaving isolated portions unused. 3. Centralized data management and protection. Critical activities relating to backing up, replicating, and managing content become simpler, more consistent, and, ultimately, more effective 4. Enablement of non-disruptive changes. Virtualization allows for moving data, seamlessly, allowing activities like migrations for refreshes, volume expansions, and other environmental changes to happen more smoothly. 5. Extending the useful life of hardware. By taking some of the high performance management and replication features out of the array and enabling more nimble changes to storage, equipment that had previously been considered “end of life” can be used for longer. So, this is what we are announcing today, services which help customers with each phase of their journey to implement flexible infrastructures. lets look at some more detail on each one on the following pages. Web Infrastructure Optimization and Virtualization services IBM Application Infrastructure Services for Web infrastructure optimization and virtualization can help clients decrease the time to value and lower the risk of designing, building and deploying a business grid environment based on IBM WebSphere® Extended Deployment software. It offers clients access to skilled IBM consultants who will help them increase the performance and reduce the complexity of their application-hosting infrastructure by optimizing their existing resources. The result is a more cost-effective and efficient infrastructure that can better support current and future business needs.Typical engagements pay for themselves in less than a year by reducing the overall cost of operating and maintaining the existing application-hosting infrastructure as well as reducing the need for additional infrastructure elements to handle the increased load. This is realized via the sophisticated and proven methodologies of IBM Global Services and IBM WebSphere Extended Deployment software.Client business needsAs organizations race to keep up with changing customer and industry demands, they find themselves needing infrastructures that can support their fluctuating requirements. While adding new servers to their environments is one way to increase functionality and contain growth, it can also increase costs and complexity. Instead, organizations need more cost-effective options that allow them to increase the productivity of their existing resources and help ensure that they can scale as needed. Web infrastructure optimization and virtualization is ideal for organizations that want to: Reduce costs by balancing workload across underutilized servers Enable high availability and improved performance for mission-critical applications Allow users to maintain predictable quality of service consistent with business priorities Now two other services from GTS - Server and Storage Virtualization Services: Server Virtualization Services Services Benefits include: Higher success rate The more carefully a solution is tested before rollout, the greater the likelihood it will function as planned—and deliver the anticipated results Faster deployment Our experienced professionals and careful methodology can spot and correct potential problems early in the process, so you may be able to get your new technology working for your business more quickly than you expected Reduced infrastructure complexity All of the tools and practices used are aligned with ITIL, so you get the benefit of industry wide best practices and the potential to simplify management of your IT infrastructure through open systems and common methods Reduced errors and risk Careful testing and analysis throughout the implementation process can reduce new-technology risk and minimize production errors. Tested, validated business value Our carefully developed process includes measurable validation of your business objectives every step of the way—to help ensure that your implemented solution delivers on its promises What makes us stand out? Our process. Testing, testing and testing again Every solution you implement with IBM Emerging Server Technology Services – server virtualization solutions for implementation is checked, analyzed and rechecked at every stage of the implementation process to speed deployment, reduce risk and smooth the transition to production rollout Comprehensive and integrated IBM Emerging Server Technology Services – server virtualization solutions for implementation is part of a comprehensive, plan-to-deployment set of offerings from IBM Global Services. All designed to put in place the tools, processes and technology capabilities that enable a more flexible, responsive infrastructure Singular focus on business goals Our experts and methods measure implementation success not just by whether you achieve a successful rollout but also by whether you successfully realize your end business goals ----------------------------------------------------------------------------------------------------------------------------------------------------- Storage Virtualization Services What’s involved in a storage virtualization project? We typically work across four major activities, in going from solution framing through implementation. First, we work with clients to ensure there’s a complete understanding of the current environment and objectives for virtualization. This typically leads to a view of the future IT environment and what gaps need to be overcome in order to reach this state We then define the target architecture, or overall virtualization appraoch This typically involves clients wanting to achieve the following: Combine the capacity from multiple heterogeneous storage systems into a single reservoir of storage that can be managed from a central point Enable changes to the physical storage systems with minimal or no impact to the applications running on the hosts Reduce downtime for planned and unplanned outages, maintenance and backups Increase storage capacity utilization, uptime, administrator productivity and efficiency Once we’ve confirmed the approach which is appropriate for the client’s specific needs (this is typically tailored off best practice designs), we build a detailed architecture and deployment plan. These are important not only for clarity, to enable high quality deployment. The also help ensure that the solution decisions are grounded in a financial case, which makes business and IT sense. We try to help avoid surprises in pilots or overall implementation which affect budget, timing or the nature of the solution. In deployment, once the key components for virtualization are installed and tested (this is typically new storage hw and/or software), we usually are asked to help plan and then migrate data from source to target environment -- into the storage virtualization pools Finally we take care to ensure there is a well designed and clear, structured set of processes for system management - enable automated administration of the environment Client Benefits from Storage Virtualization 1. Reduction in storage management complexity. Since all heterogeneous arrays present volumes to the virtualization layer, ongoing management takes place in a single console 2. Increased capacity utilization. In a virtualized environment, volumes can span different physical systems and applications can access storage on multiple machines without performance problems. The result? It becomes much easier to use the entire disk, rather than leaving isolated portions unused. 3. Centralized data management and protection. Critical activities relating to backing up, replicating, and managing content become simpler, more consistent, and, ultimately, more effective 4. Enablement of non-disruptive changes. Virtualization allows for moving data, seamlessly, allowing activities like migrations for refreshes, volume expansions, and other environmental changes to happen more smoothly. 5. Extending the useful life of hardware. By taking some of the high performance management and replication features out of the array and enabling more nimble changes to storage, equipment that had previously been considered “end of life” can be used for longer.

    20. 20 Methodical, cross-IBM, global approach to capture, analyze, feedback SOA deployment experiences SOA Deployment Best Practices & Lessons Learned And to close let me share the results from one of these successful projects...And to close let me share the results from one of these successful projects...

    21. 21 Transforming Healthcare with SOA and Dynamic Infrastructure UPMC is the premier health system in western Pennsylvania and one of the most renowned academic medical centers in the United States. Its 40,000 employees and 4,000 doctors are spread across a network of 19 hospitals and 400 smaller sites throughout western Pennsylvania. Overview UPMC, a leading IT innovator, sought to become a truly integrated, self-regulating healthcare system, utilizing evidence-based medicine to produce superb clinical outcomes and lower costs. Business need UPMC knew it needed an innovative relationship combined with world class technology to achieve its goals. It saw IBM’s pioneering vision and technology as a way to simplify its IT systems, facilitate the sharing of data and improve its flexibility. Solution In a landmark strategic partnership valued at $402 million over 8 years, UPMC’s systems will be transformed into an On Demand Business environment using IBM products and services. On this foundation, IBM and UPMC will work together to bring new healthcare solutions to market. Benefits Expected IT cost savings of up to 20% - Major increase in efficiency through server consolidation and virtualization Customer Quote “We are combining IBM’s unparalleled infrastructure knowledge with our medical knowledge. At the end of our eight-year transformation project, we expect to see cost savings of 15 to 20 percent.” – Dan Drawbaugh, CIO, UPMC This is a story of how two important players in the healthcare space—one a leading integrated health system, the other a leading provider of IT solutions—discovered they had a shared vision of tomorrow’s healthcare delivery model, and how their common goals became the foundation of a new kind of relationship. It’s the story of how these players, IBM and the University of Pittsburgh Medical Center (UPMC), saw the opportunity to combine and complement each other’s strengths to forge a new generation of healthcare solutions. Perhaps most unique, it’s an example of how they went outside the boundaries of a customer-vendor relationship and selected each other as partners, an arrangement likely to serve as a template for the healthcare business in the coming years. Here’s how it happened. From its roots as a major academic medical center, UPMC (www.upmc.com) has evolved into Pennsylvania’s largest integrated health care delivery system—with revenues of $5.8 billion—and one of the nation’s most influential healthcare institutions. In addition to operating the nation’s largest transplant program and an array of highly specialized clinical services that draw patients from across the nation and around the world, UPMC acts as the major source of routine healthcare services for residents of western Pennsylvania. UPMC is also closely affiliated with the University of Pittsburgh, one of the top recipients of National Institutes of Health research funding. As the term “integrated delivery network” implies, UPMC’s mission is to provide outstanding patient care and to shape tomorrow's health system through clinical innovation, biomedical and health services research and education. With UPMC’s rapid growth and large investments in advanced IT initiatives, being integrated hasn’t always been easy. Each new hospital added to the network added to the complexity of the organization; each new system added to the complexity of its IT infrastructure. In combination, these factors made it that much harder for UPMC to integrate its resources for the benefit of its patients. In the big picture, this created a tremendous challenge—finding an effective way to leverage integrated information across its large and diverse system. UPMC’s early efforts to address this challenge led to its first contacts with IBM. On Demand Business Benefits Project up to a 20% reduction in overall IT costs Simplified infrastructure, facilitating integration of data from across the UPMC enterprise Increased cost predictability through IBM Open Infrastructure Offering financing model Increased flexibility to grow systems and add new technologies by virtue of open systems support Single point of access for all clinical applications, improving caregiver efficiency and quality of care Improved ability to develop, commercialize and profit from clinical innovations Every relationship has a starting point, and for UPMC and IBM it was a specific engagement focused on improving the performance of its Cerner Millennium electronic health record system. One of the many solutions that place UPMC among the healthcare industry’s leading innovators, the Cerner system performed adequately but fell short of UPMC’s high expectations due to response time and availability problems. IBM proposed that it could address it by consolidating and simplifying the infrastructure on which it ran. UPMC engaged IBM to redeploy the new Cerner system, which had been running on HP servers, on the IBM System p platform. The improvement was immediate and dramatic, with response time going from five seconds to “blink speed” and downtime falling precipitously. But more important, the engagement gave UPMC concrete proof of how IBM’s vision and expertise could be applied to its broader vision—the integration of all of its healthcare information resources. That’s where the real story begins. Building a foundation for the future Having established a new level of credibility with UPMC, IBM sought to provide it with a fuller picture of its own healthcare vision and the depth and breadth of resources it had to back it up. UPMC—interested in hearing more about IBM’s roadmap for integration, transformation and simplification—provided a willing audience. In extensive meetings involving a cross section of top UPMC decision-makers, an equally broad-based IBM team presented its vision of how On Demand Business supports the emerging requirements for world-class healthcare delivery. Hearing IBM articulate its strategy for On Demand Business, UPMC was struck by how closely it resonated with its own needs and vision— this realization marked the foundation of the partnership between IBM and UPMC. UPMC looked at the dynamism of the healthcare industry and saw a host of challenges and opportunities that mandated the need for a strategic partner. The challenge was to establish, support and pay for an infrastructure that is flexible, robust and secure enough to support its healthcare vision. The opportunity for UPMC was to bring a stream of innovative new solutions to the market without diluting its focus. UPMC saw IBM—with its common vision, unmatched strengths in research and development and solid track record in the Healthcare and Life Sciences—as being singularly well-equipped to meet them. IBM saw UPMC as the perfect center of evidence for IT solutions for healthcare. Both companies realized that the close-knit, long-term nature of the mission, and the shared vision and high reward stakes, called for a new kind of customer-vendor relationship that would serve as a model for healthcare in the 21st century. Key ComponentsSoftware IBM WebSphere® Application Server IBM WebSphere Business Integration IBM Tivoli® product suite Hardware IBM System x IBM System p IBM System z® IBM BladeCenter® IBM System Storage Lenovo PCs Solution IBM Component Infrastructure Roadmap Services IBM Global Services - Integrated Technology Services IBM Business Consulting Services IBM Healthcare and Life Sciences IBM Research IBM STG Services IBM SWG Services A new relationship model, a new era The result was an 8-year, $352 million agreement under which IBM Global Services – Integrated Technology Services and IBM Business Consulting Services—will work with UPMC to transform its IT infrastructure through consolidation and standardization across the entire enterprise. Under the deal, UPMC’s 931 servers will be reduced to 319 (IBM System x, System p, System z and BladeCenter servers), nine operating systems reduced to four, and 40 storage databases reduced to just two (running on IBM TotalStorage Enterprise Storage Servers). To manage the infrastructure centrally and efficiently, the solution will employ a common toolset based on IBM Tivoli products. Moreover, its reliance on standard technology enables a high degree of virtualization within the infrastructure, further driving efficiency and leading to overall IT cost savings of up to 20 percent. IBM’s integration efforts were guided by its Component Infrastructure Roadmap, a defined and agreed-upon blueprint for integrating the appropriate capabilities into a client’s IT environment. What makes the deal truly groundbreaking is its second major component: a $50 million strategic partnership—funded equally by UPMC and IBM—aimed at supporting the co-development and commercialization of new healthcare solutions. The partnership, whose value could potentially reach $200 million, enables UPMC to turn its full attention to its strong suit—clinical and research innovation—while leveraging IBM’s proven ability to bring open solutions to market. Moreover, the new revenue stream created by the venture provides UPMC with a solid return on its investment in innovations as well as a means of sustaining and expanding them. 5 Reasons Why UPMC Partnered with IBM On Demand Business for people, process and technology IBM’s “unmatched” R&D capability IBM’s strength in Healthcare and Life Sciences Availability of Open Infrastructure Offering pricing model Breadth, depth and cohesiveness of IBM team supporting the partnership In the final analysis, though, the relationship’s true value has to be measured by its support of UPMC’s efforts to transform the way it cares for the patient. Here are some fundamental examples of how it will. UPMC’s new infrastructure will enable the seamless and secure sharing of patient data across applications and multiple locations, thus providing caregivers with instant access to the information they need to deliver the best possible patient care. At the core, infrastructure simplification—characterized by the flexibility, adherence to standards and data model consistency of IBM’s service-oriented architecture approach—is what makes it possible. These same infrastructure properties will enable UPMC to add new capabilities rapidly and seamlessly. And as UPMC develops new solutions for the broader market, its open infrastructure, combined with IBM’s go-to-market expertise, will speed their fruition. While it’s easy to view technology as the driver of UPMC’s choice to partner with IBM, the deal in fact rests on several of IBM’s unique strengths, such as its ability to pull together resources from across the company into “one IBM” and present it to UPMC as a single offer. Indeed, UPMC’s access to the flexible funding of IBM’s Open Infrastructure Offering—a key aspect of IBM’s On Demand Business framework—enabled it to avoid large upfront expenditures, while guaranteeing access to all the IBM resources it needs to realize its vision. As IBM Executive Sponsor Dan Pelino sees it, IBM is eager to bring its mix of vision, expertise and technology to its partnership with UPMC to develop new and better ways to improve healthcare. “As partners, UPMC and IBM can make the difference in healthcare, nationally and globally. This is about two world class organizations coming together to deliver on a single vision—world class healthcare for each and every one of us.” UPMC is the premier health system in western Pennsylvania and one of the most renowned academic medical centers in the United States. Its 40,000 employees and 4,000 doctors are spread across a network of 19 hospitals and 400 smaller sites throughout western Pennsylvania. Overview UPMC, a leading IT innovator, sought to become a truly integrated, self-regulating healthcare system, utilizing evidence-based medicine to produce superb clinical outcomes and lower costs. Business need UPMC knew it needed an innovative relationship combined with world class technology to achieve its goals. It saw IBM’s pioneering vision and technology as a way to simplify its IT systems, facilitate the sharing of data and improve its flexibility. Solution In a landmark strategic partnership valued at $402 million over 8 years, UPMC’s systems will be transformed into an On Demand Business environment using IBM products and services. On this foundation, IBM and UPMC will work together to bring new healthcare solutions to market. Benefits Expected IT cost savings of up to 20% - Major increase in efficiency through server consolidation and virtualization Customer Quote “We are combining IBM’s unparalleled infrastructure knowledge with our medical knowledge. At the end of our eight-year transformation project, we expect to see cost savings of 15 to 20 percent.” – Dan Drawbaugh, CIO, UPMC This is a story of how two important players in the healthcare space—one a leading integrated health system, the other a leading provider of IT solutions—discovered they had a shared vision of tomorrow’s healthcare delivery model, and how their common goals became the foundation of a new kind of relationship. It’s the story of how these players, IBM and the University of Pittsburgh Medical Center (UPMC), saw the opportunity to combine and complement each other’s strengths to forge a new generation of healthcare solutions. Perhaps most unique, it’s an example of how they went outside the boundaries of a customer-vendor relationship and selected each other as partners, an arrangement likely to serve as a template for the healthcare business in the coming years. Here’s how it happened.

    22. Why IBM?

    23. 23 Demonstrated Leadership Main point: IBM is THE SOA leader in every measurement from our portfolio of products and professional services, to our unparalleled ecosystem of business partners and sellers, to our vast experience in every industry and geography to our leadership in advancement of open standards It's one thing when you see a technology and services vendor leading in one focused area. But when you see consistent and expansive leadership in so many areas, it gets pretty easy to draw the line to the true champion Additional Detail IBM applies the lessons we’ve learned over the past several decades to deliver faster, more innovative solutions. Our clients include more than 330 Fortune 500 companies. And we have successfully completed our own internal initiative to transform and optimize our IT environment in alignment with overall business objectives. These real-life lessons don’t get lost on us—every project is an opportunity to add value and expertise to our services. Plus, our services our backed by an extensive network of IBM professionals: We have the world's largest IT research organization: 3,000 scientists and engineers, eight labs in six countries, more U.S. patents than any other company (more than 13,000 in the past four years) IBM Global Business Services is the world’s largest consulting services provider with 190,000 professionals, 8,000 IT architects and 22,000 IT consultants 55,000 employees are trained as IT infrastructure experts to help clients understand their IT centers and implement improvements 329,000 employees help clients solve business problems 175,000 employees provide business and IT consulting and product support services 600 employees are subject matter thought leaders in IT strategy and architecture IBM employs one of the most educated workforces in the world, with more than 200,000 college graduates, 54,000 of which have post-graduate degrees as well. These credentials add up to an IT provider that can work with you to meet your needs. Our expertise and global resources can give you the assistance you need, when you need it. Main point: IBM is THE SOA leader in every measurement from our portfolio of products and professional services, to our unparalleled ecosystem of business partners and sellers, to our vast experience in every industry and geography to our leadership in advancement of open standards It's one thing when you see a technology and services vendor leading in one focused area. But when you see consistent and expansive leadership in so many areas, it gets pretty easy to draw the line to the true champion Additional Detail IBM applies the lessons we’ve learned over the past several decades to deliver faster, more innovative solutions. Our clients include more than 330 Fortune 500 companies. And we have successfully completed our own internal initiative to transform and optimize our IT environment in alignment with overall business objectives. These real-life lessons don’t get lost on us—every project is an opportunity to add value and expertise to our services. Plus, our services our backed by an extensive network of IBM professionals: We have the world's largest IT research organization: 3,000 scientists and engineers, eight labs in six countries, more U.S. patents than any other company (more than 13,000 in the past four years) IBM Global Business Services is the world’s largest consulting services provider with 190,000 professionals, 8,000 IT architects and 22,000 IT consultants 55,000 employees are trained as IT infrastructure experts to help clients understand their IT centers and implement improvements 329,000 employees help clients solve business problems 175,000 employees provide business and IT consulting and product support services 600 employees are subject matter thought leaders in IT strategy and architecture IBM employs one of the most educated workforces in the world, with more than 200,000 college graduates, 54,000 of which have post-graduate degrees as well. These credentials add up to an IT provider that can work with you to meet your needs. Our expertise and global resources can give you the assistance you need, when you need it.

    24. 24 We're Ready with Unmatched Capabilities For Scaling to Production Volumes, Reliability & Availability Aberdeen Group discovered Scaling to Production Volumes, Reliability and Availability to be the biggest technology challenges facing customers adopting SOA today. If you create an application that solves a business problem, you need to know that that application will perform and grow, and be available when needed, no matter what the time of day, or time zone you are operating in. IBM has unmatched experience working with customers in production environments, helping them scale rapidly and handle increasingly tough workloads and demands. These are just a few of the customers IBM has worked with, from Pear’s Gourmet - who we’ll see in a moment started small and grew very quickly – right up to running some of the most demanding websites in the World. These are customers who handle millions and billions of hits and transactions per day, and creating a scalable, resilient and responsive infrastructure can help them accommodate the unpredictable demands of global events. These customers are using WebSphere Application Server products in their production environment to help achieve the kind of results you see listed on the chart – for example, Wimbledon handled 1 million hits/minute at peak time; eBay handles over 1 billion page views/day and the Australian Open had over 4.2 million unique fans view its web pages during the tournament. What these customers do, is very visible; and it requires a highly responsive, resilient and adaptable infrastructure that’s prepared for anything and everything. IBM Application Infrastructure products can give you exactly that. WebSphere Application Server Network Deployment (ND) provides near linear growth on the most heterogeneous set of tested platforms in the industry. The WAS Network Deployment runtime is architected for High Availability Management; and performance optimization and utilization are qualities of service that are core to our z/OS platform (WAS for zOS). WebSphere Extended Deployment can bring similar qualities of service to distributed platforms, and extend WAS for zOS by combining transactional and long-running workloads for even more efficient use of application infrastructure resources, and optimizing data access for the ultimate in application performance and scalability. Now, don’t be misled into thinking that all this is only for the largest companies. Many Special Event clients could be considered small- to medium-sized businesses. But as their premier event approaches, their businesses grow exponentially. By providing infrastructures that can scale rapidly, IBM can enable these organizations to realize new opportunities cost-effectively.Aberdeen Group discovered Scaling to Production Volumes, Reliability and Availability to be the biggest technology challenges facing customers adopting SOA today. If you create an application that solves a business problem, you need to know that that application will perform and grow, and be available when needed, no matter what the time of day, or time zone you are operating in. IBM has unmatched experience working with customers in production environments, helping them scale rapidly and handle increasingly tough workloads and demands. These are just a few of the customers IBM has worked with, from Pear’s Gourmet - who we’ll see in a moment started small and grew very quickly – right up to running some of the most demanding websites in the World. These are customers who handle millions and billions of hits and transactions per day, and creating a scalable, resilient and responsive infrastructure can help them accommodate the unpredictable demands of global events. These customers are using WebSphere Application Server products in their production environment to help achieve the kind of results you see listed on the chart – for example, Wimbledon handled 1 million hits/minute at peak time; eBay handles over 1 billion page views/day and the Australian Open had over 4.2 million unique fans view its web pages during the tournament. What these customers do, is very visible; and it requires a highly responsive, resilient and adaptable infrastructure that’s prepared for anything and everything. IBM Application Infrastructure products can give you exactly that. WebSphere Application Server Network Deployment (ND) provides near linear growth on the most heterogeneous set of tested platforms in the industry. The WAS Network Deployment runtime is architected for High Availability Management; and performance optimization and utilization are qualities of service that are core to our z/OS platform (WAS for zOS). WebSphere Extended Deployment can bring similar qualities of service to distributed platforms, and extend WAS for zOS by combining transactional and long-running workloads for even more efficient use of application infrastructure resources, and optimizing data access for the ultimate in application performance and scalability. Now, don’t be misled into thinking that all this is only for the largest companies. Many Special Event clients could be considered small- to medium-sized businesses. But as their premier event approaches, their businesses grow exponentially. By providing infrastructures that can scale rapidly, IBM can enable these organizations to realize new opportunities cost-effectively.

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