Understanding the right approaches in the adoption of cloud computing

Mario Gaon

Banks use automated teller machines to improve

service and lower cost

Manufacturers use robotics to improve

quality and lower cost

Telcos automate traffic through switches to

assure service and lower cost

2

“Clouds will transform the information technology (IT) industry… profoundly change the way people work and companies operate.”

Cloud computing will transform the information technology (IT)Cloud computing will transform the information technology (IT)… …

“Cloud” is a new consumption and delivery model inspired by consumer Internet services.

Enabled by Virtualisation, (Service) Automation, Standardisation

Cloud enables: Self-service Economies-of-scale Flexible pricing models (eg. pay-per-use) Workload based IT resource provisioning

“Cloud” is: The Industrialisation of Delivery for IT

Services

Similar to banking ATMs and retail Point of Sale, cloud is driven by:

Economies of scale Technology advancement

Cloud Computing DefinedCloud Computing Defined

Banking

Retail

IT

3

Cost savings result from infrastructure and labour. Reengineering Cost savings result from infrastructure and labour. Reengineering IT delivery processes is key to obtaining labour savings.IT delivery processes is key to obtaining labour savings.

Virtualisation of Hardware

Standardisation of Workloads

Utilisation of Infrastructure

Automation of Management

Virtualised environments only get benefits of scale if they are

highly utilised

Drives lower capital requirements

Take repeatable tasks and automate services to lower labour costs, reduce

errors and deliver faster

Lab

ou

r L

ever

age

Infr

astr

uct

ure

L

ever

age

Self Service

Clients who can “serve themselves” require less support, improve

productivity and get services faster

Lower complexity = more automation possible = reduced IT labour costs

and faster delivery

4

EnterpriseData Centre

Private Cloud

ManagedPrivate Cloud

HostedPrivate Cloud

SharedCloud Services

PublicCloud Services

EnterpriseData Centre

3rd partyoperated

Enterprise

3rd party hosted & operated

Enterprises Users

Enterprise owned Mission critical High compliancy Internal network

3rd party owned and operated

Standardisation Centralisation Security Internal network

Mix of shared and dedicated resources

Shared facility and staff

VPN access

Shared resources

Elastic scaling Pay as you go Public internet

Source: IBM MI, Corporate Strategy, BCG analysis

What our clients are telling us: What our clients are telling us: Multiple deployment models are requiredMultiple deployment models are required

5

IT also needs to become smarter … about workloads.IT also needs to become smarter … about workloads.

Understanding workloads is critical to helping businesses optimise their infrastructure.

Companies run many different workloads with investments in multiple types of platforms, applications, tools and skills.

“One size fits all” doesn’t make sense for business models or the IT backbone that drives them.

Workload characteristics will drive the rate and degree of standardisation of IT and business services

IBM has identified a series of common workloads that are well suited for cloud

Desktop and Devices

Development and Test

InfrastructureCompute

BusinessServices

CollaborationAnalytics Infrastructurestorage

6

Adoption of cloud computing will be shaped by workload Adoption of cloud computing will be shaped by workload affinity, characteristics and riskaffinity, characteristics and risk

7

Low-risk Mid-risk High-risk

Mission-critical workloads, personal

information

Security/Privacy Risk

Del

iver

y M

od

els

Public Cloud

Conventional Enterprise IT

Training, testing with non-sensitive

data

Today’s clouds are primarily here:

● Lower risk workloads

● One-size-fits-all approach to data protection

● No significant assurance

● Price is key

Tomorrow’s high value / high risk workloads need:

● Quality of protection adapted to risk

● Direct visibility and control

● Significant level of assurance

Analysis & simulation with

public data

Private Cloud

Workload versus consumption model provides a useful Workload versus consumption model provides a useful framework for analysing cloud prioritiesframework for analysing cloud priorities

Key framework elementsKey framework elements Strategic frameworkStrategic framework

Co

ns

um

pti

on

mo

de

l

Workload

• Public cloud services

• Shared cloud services

• Private cloud services

• Components supply

• Transaction processing and database

• Analytics andhigh performance computing

• Businessapplications

• Web, collaborationand infrastructure

EnterpriseData Center

Private Cloud

EnterpriseData Center

Private Cloud

WorkloadsWorkloads Consumption modelConsumption modelxUser

AUser

BUser

CUser

DUser

E

Public Cloud Services

Enterprise

IBM owned and operated

IBM owned and operated

Hosted Private Cloud

IBM owned and operated

IBM owned and operated

Hosted Private Cloud

Enterprise A

Enterprise B

Enterprise C

Shared Cloud Services

1. Which workloads are highest priority for you?

2. Which delivery models are of most interest to you?

8

IBM offers a portfolio of workload optimised cloud solutions and IBM offers a portfolio of workload optimised cloud solutions and delivery modelsdelivery models

9

Consulting ServicesInfrastructure strategy and planning for cloud computing IBM Strategy and Change for Cloud AdoptionIBM Strategy and Change for cloud ProvidersIBM Testing Services for Cloud

Lotus Live

Smart Business Test Cloud

Smart Business Development & Test on the IBM

Cloud

Smart Business Desktop Cloud

IBM Smart Analytics System P

riva

te

Clo

ud

WebSphere CloudBurstAppliance

Smart Business Expense Reporting

Smart Business Expense Reporting

Tivoli Live

Pu

blic

Clo

ud

Smart Business Desktop Cloud

Future

Available in A/NZ

OFFERING AVAILABILITY KEY

Smart Business Storage Cloud

Information Protection Services

IBM CloudBurst

Analytics Collaboration Development and Test

Desktop and Devices

Infrastructure Compute

BusinessServices

Infrastructure Storage

Computing On Demand

Rational AppScan

In June & July of 2009, IBM interviewed 1,090 IT and LOB decision In June & July of 2009, IBM interviewed 1,090 IT and LOB decision makers around the world to understand current cloud adoptionmakers around the world to understand current cloud adoption

C-level Business Executives Business

Leaders

CIOs

IT Directors

Japan

China

IndiaUSA

Canada

FranceGermany

UK

CommunicationsDistribution

Industrial

Public

Financial Services

Other Services

Who we talked to:

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

Job role Country Sector

10

Cost savings and faster time to value are the leading reasons Cost savings and faster time to value are the leading reasons why companies consider cloudwhy companies consider cloud

Percent rating factors as a major inducement (4 or 5)

Respondents could rate multiple drivers items

50%

72%

77%

Improve reliability

Faster time to value

Reduce costs

Improve system availability

Hardware savingsSoftware licenses savings

Lower labor and IT support costs

Lower outside maintenance costs

Relieve pressure on internal resources

Simplify updating/upgrading Speed deployment

Scale IT resources to meet needs

•

•

•

Improve system reliability

•

•

•

To what degree would each of these factors induce you to acquire public cloud services?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

•

11

Percent rating the factor as a significant barrier (4 or 5)

Respondents could select multiple items

Concerns about data security and privacy are the primary Concerns about data security and privacy are the primary barriers to public cloud adoptionbarriers to public cloud adoption

69%

54%

53%

52%

47%

Security/privacy of company data

Service quality/performance

Doubts about true cost savings

Insufficient responsiveness over network

Difficulty integrating with in-house IT

What, if anything, do you perceive as actual or potential barriers to acquiring public cloud services?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=1,090

12

Audio/video web conferencing and CRM hold the greatest Audio/video web conferencing and CRM hold the greatest interest for deploying in a public cloudinterest for deploying in a public cloud

Public cloud

47%13% Data warehouse

47%9%Transactional

databases

40%29% CRM

50%21% E-mail

49%18%ERP

applications

49%19%Industry

applications

36%32%A/V/web

conferencing

43%17%Unified

communications

48%16%VoIP

infrastructure

Private cloud

46%11% Data mining

BusinessServices

Collaboration

Analytics

Percentage of respondents who have implemented or plan to implement a workload in a cloud environmentHave you, or are you planning to implement, public or private cloud delivery for these IT activities?

Percent who have implemented or plan to implement the workload in the next 12 monthsRespondents could select multiple items

53%15%Service/help

desk

Desktop

53%12% Desktop

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=362–1,029, depending on the workload.

13

Private cloud usage/implementation rates are relatively high Private cloud usage/implementation rates are relatively high across all workloads, with little variationacross all workloads, with little variation

51%13% Servers

43%14%Development environment

50%15% Storage

50%16% Application servers

42%18%Application streaming

41%18%Business

continuity/DR

43%14%Data center

network capacity

44%16% Training infrastructure

45%17% Data archiving

51%15% Security

47%14% Data backup

43%23% WAN capacity

Test environment12% 45%

Infrastructure

Development and Test

Public cloud Private cloud

Have you, or are you planning to implement, public or private cloud delivery for these IT activities?

Source: IBM Market Insights, Cloud Computing Research, July 2009. n=362–1,029, depending on the workload.

Percent who have implemented or plan to implement the workload

in the next 12 monthsRespondents could select

multiple items

14

Cloud computing is a new consumption and delivery model for IT-based services with two main motivations: Cost reduction and Business Optimization

Broadly speaking there are two cloud delivery models: private cloud and public cloud

But “one size fits all” doesn’t apply. Workload characteristics will drive cloud adoption strategy. Workload analysis approach is required.

Workload versus consumption model provides a useful framework for analysing cloud priorities

Cloud economics is driven by level of virtualisation, standardisation, automation and self-service. Understand your current and target maturity in these key areas.

Don’t “wait for Cloud to mature”:- Use “workload versus consumption model”

framework to identify areas of cloud adoption within your own organisation

- Perform ROI analysis and develop business case

- Start with an isolated cloud deployment

- Roll out cloud across the enterprise

Learning Points on Cloud AdoptionLearning Points on Cloud Adoption

www.ibm.com/au/ibm/cloud