Using cloud computing to deliver innovation and efficiency

1. Using cloud computing to deliver innovation and efficiency

2. Why Cloud Computing – Why Now !Today’s IT infrastructure is under tremendous pressure and is finding it difficult to keep up… Spending (US$B) Installed Base (M Units) $300 50 Power and cooling costs x8 IT Management and admin costs x4 New server spending 45 $250 40 35 $200 30 $150 25 20 $100 15 10 $50 5 $0 0 2007 2000 2008 2001 1998 2009 2010 1996 1997 2004 2005 2003 2006 1999 2002 Source: IDC, Virtualization 2.0: The Next Phase in Customer Adoption, Doc #204904, Dec 2006 70% 85% idle 70 percent is spent on maintaining current IT infrastructures versus adding new capabilities In distributed computing environments, up to 85 percent of computing capacity sits idle

3. “Cloud Computing” is an IT Services Delivery Model where IT resources are provisioned in highly virtualized environment and delivered to end userover a network IT Perspective Business Perspective An infrastructure management and services delivery method • Virtualized resources • Managed as a single large resource • Delivered services with elastic scaling A user experience & business model • Standardized, self service offerings • Pay only for what you use - Flexibly priced • Improved Performance 3 Cloud Computing - Strategic View IBM Confidential

4. Cloud computing .. Evolution Cloud Standardizeand automate • Standardize services • Automated Provisioning • Elastic scalability • Always Available • Pay per Use • Simplified user interface Virtualization • Remove physical resource boundaries • Increase hardware utilization • Reduce hardware costs • Simplify deployments Consolidation • Reduce infrastructure complexity • Reduce staffing requirements • Manage fewer things better • Lower operational costs

5. What is different about cloud computing? Without cloud computing With cloud computing • Virtualized resources • Automated service management • Standardized services • Location independent • Rapid scalability • Self-service • Software • Hardware • Storage • Networking • Software • Hardware • Storage • Networking • Software • Hardware • Storage • Networking Note: Elements of cloud computing taken from NIST, Gartner, Forrester and IDC cloud computing definitions

6. Companies have different motivations for leveraging cloud 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 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 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.

7. Reduced IT labor cost by 50 percentin configuration, operations, management and monitoring Improved capital utilization by 75 percent,significantly reducing resources costs Reduced provisioning cycle times from weeks to minutes Improved quality,eliminating 30 percent of software defects Reduced end userIT support costs by up to 40 percent Reduction in Energy Consumption Businesses that implement cloud computing are seeing significant results

8. IT benefits from cloud computing are real Results from IBM cloud computing engagements Increasing speed and flexibility Reducing costs SOURCE: Based on IBM and client experience.

9. Cross Industry • Telecoms • Insurance • Utilities Cost Reduction CAPEX Pressures Deployment Flexibility Changing Business Conditions • Media • Manufacturing • Retail • Utilities Speed to Implement Driving Operational Efficiency • CSI • Government • Healthcare Best Practices Compliance & Security Organizational Development & Stability • Banking • Government • Retail Cloud Adoption – Industry Drivers * Content from Gartner

10. Cloud Adoption – Inhibitors • Security • Privacy of Data and ICAP • Perceived Loss of control over Physical & Informational assets • Unproven ROI • Quantifiable Investment Returns • Doubts about true cost savings • Stability & Reliability • Off Premises Infrastructure • Performance / stability over network • Integration Issues • Integration can be complex & expensive • Scared to touch production / mission critical applications

11. Reliability High availability will be a key concern. IT departments will worry about a loss of service should outages occur. Mission critical applications may not run in the cloud without strong availability guarantees. Less Control Many companies and governments are uncomfortable with the idea of their information located on systems they do not control. Providers must offer a high degree of security transparency to help put customers at ease. Data Security Migrating workloads to a shared network and compute infrastructure increases the potential for unauthorized exposure. Authentication and access technologies become increasingly important. Compliance Complying with SOX, HIPAA and other regulations may prohibit the use of clouds for some applications. Comprehensive auditing capabilities are essential. Security Management Providers must supply easy controls to manage firewall and security settings for applications and runtime environments in the cloud. Cloud Computing – Risks

12. Service Planning 1 Approve Dev,Test Submit Review Req for resources for development 협의 완료 2 4 3 5 6 4 Weather Service Development Implement Service Submit Approve Req for Resource in production 10 9 8 7 Weather Service Cloud Computing in Action Service Portal DataEng Legacy System Open G/W Cloud Platform Admin UAPS Operation Team Resource Request Open API Library Cloud mgmt System Provisioning Business LBSP Workflow Approval Process Monitoring DevSV WAP WAP DB Open API Install/Develop Open API Install/Dev. Submit Service Test CP/BP Dev. Farm Weather Fcsting Prod. Farm K-Weather Mobile user

13. IBM’s Energy and Utility Solution Portfolio addresses a utility’s business and technology needs across the full energy value chain Customer Operations Transformation (COT) Customer Care Customer Management Customer Systems Power Generation Optimization (PGO) Plant Operations Fleet Optimization Supply Expansion • Transmission & Distribution Operations • Mobile Workforce Mgmt • Asset Lifecycle Mgmt • Supply Chain Mgmt CorporateSupportServices Human Resources Accounting Payroll Delivery Options Intelligent Utility Network (IUN) Smart Metering & Beyond Grid Operations Electric Vehicles IUN Communications Networks IUN Security Distributed Energy Resources Physical and Cyber Security Solution Architecture for Energy& Utilities Framework (SAFE) Infrastructure Servers, storage, communications networks and equipment and associated services

14. Cloud fitment in Energy Transmission & Distribution Smarter ways of managing power transmission and distribution have evolved (Intelligent Networks / Smarter GRIDs) • Automated Meter • Management • Network • Analytics • Advance / Smart • Meters Meter Data Mgmt Remote Asset Monitoring Workforce Management Data Collection Engine • Need for highly efficient, reliable and scalable IT infrastructure • Focus on managing application and data flow not the infrastructure • Monitoring and Event Co-relation is the Key – systems should be able to communicate anywhere to anywhere and MUST not fail • Cloud infrastructure will help drive the new initiatives effectively taking complexity out of management • Creation of Shared Private Cloud will help reduce on IT investments dramatically while building enough flexibility in system

15. How Cloud computing will help conserve Energy • Infinite scalability, guaranteed performance and nearly “always-on” is the requirement of day from IT perspective • Data center houses large number of heterogeneous components for computing with an infrastructure to distribute power and provide cooling - Energy Cost as dominant factor in TCO • Cloud computing bring many opportunities to reduce energy / power consumption : • Cloud computing enables efficient application and data management – reduction in overall hardware requirements • Increase in efficiency of servers – continuous monitoring and reconfiguration of virtual servers ensure reduction in idle time of hardware – least energy wasted

16. Cloud Adoption – ?? Confusion Continues ?? • How do I get started with cloud computing? • How can I develop a Cloud Strategy for my organization? • Which business areas should I consider for cloud? • How can I standardize business processes using cloud applications and services? • How do I innovate faster and can cloud help? • What business value will I achieve by moving to cloud? • Which services will be relevant for my organization? • Which services can be migrated to cloud? • How ready is my existing application architecture to move to cloud environment? • How much I can save by moving to cloud? • What should be my transformation roadmap? Cloud is Real with right Strategy

17. IBM recommends a practical approach to cloud computing • Define cloud strategy and roadmap • Assess cloud deployment models, service options and workloads • Plan cloud strategy and roadmap • Choose initial project • Condition the existing infrastructure for cloud • Virtualize and automate existing systems • Add service management, service catalog  Plan and Prepare • Start with an isolated private cloud deployment • Choose low-risk workload such as test and development • Standardize applications and systems • Deploy self-service portal  Pilot and Deploy • Roll out cloud across the enterprise • Enable additional workloads on private cloud • Add new users • Use trusted public cloud services to supplement data center capabilities  Extend and Evolve

18. Smart Business Storage Cloud Smart Business Desktop Cloud Smart Business Test Cloud Compute on Demand Cloud Information Protection Services CloudBurst IBM have Offerings to match • Define cloud strategy and roadmap • Assess cloud deployment models, service options and workloads • Plan cloud strategy and roadmap • Choose initial project • Condition the existing infrastructure for cloud • Virtualize and automate existing systems • Add service management, service catalog Cloud Consulting – Workload Analyzer  Plan and Prepare • Start with an isolated private cloud deployment • Choose low-risk workload such as test and development • Standardize applications and systems • Deploy self-service portal  Pilot and Deploy • Roll out cloud across the enterprise • Enable additional workloads on private cloud • Add new users • Use trusted public cloud services to supplement data center capabilities  Extend and Evolve

19. Dhiraj Garg Cloud Computing dhirajgarg@in.ibm.com 98100 46791 Thank you! 19 Cloud Computing 9/23/2014